Economy and happiness, The Easterlin Paradox

Get Complete Project Material File(s) Now! »

PREVIOUS RESEARCH AND THEORETICAL FRAMEWORK

Previous research

Development is currently mainly valued through the economic growth of a nation, or of the world. Some researchers like Porta , Diener, Zidansˇek and Graham suggests that much of people´s wellbeing arises from other factors rather than economic progress. One must consider whether a rising economy is what we mean when we talk about development, or if a positive development can include other factors.

Economy and happiness, The Easterlin Paradox

It has been demonstrated that happiness increases with wealth significantly for nations with a GDP per capita below 5000 USD, the level of extreme poverty (Zidansˇek, 2007, pp. 5, referring Frey BS, Stutzer A.2002), as money is a mean to improve health, educational level and to give a longer life span. Countries with income levels below 15 000 USD per head, experiences an increased happiness when their income rises, while nations above that level does not. (Porta, 2005, p. 149) . This is linked to the finding of Richard Easterlin: as countries grew materially wealthier and healthier over time, the average happiness did not increase. This is called the Easterlin paradox (Graham, 2009, pp. 25-26). For countries above median income level of the world, growth even has a negative effect on happiness. (Graham, 2009, pp. 18-19; referring Laura and Chaparro; Steven and Wolfers, 2008; Graham and Pettinato, 2002a; Knight and Gunatilaka, 2007; Whyte and Hun, 2006)
People tend to strive for excessive levels of income and comfort, even though we are aware that such behavior makes our ecological footprint grow and is unsustainable. Porta suggests that it can be explained by two factors, the first is that people are rivalry, and the second is that people easily makes their way of living into a habit. By comparing incomes and material assets, people has shown to have a desire to exceed, or at least not fall under, the social norm, and when income rises, their increased living standard turns into a habit that is difficult to change. (Porta, 2005, pp. 147,151).

Wellbeing

Well-being is a term for the different valuations people make regarding their lives, the events happening to them, their bodies and minds, and the circumstances in which they live, and experiencing one’s life to be fulfilling and meaningful. Diener suggests that that well-being is a desirable goal for nations, because it produces beneficial societal outcomes, whereas depression and prolonged negative states tend to produce negative societal results. It has been suggested that to measure well-being and ill-being should be a part of the democratic process, to give citizens and their leaders’ information about what political decisions to take (Diener, 2005, pp. 1-3).

Post-materialistic values

Post materialistic values refer to materialism as a value-system with the desire to fulfill basic, material necessities such as security, sustenance and shelter, instead of material affluence. A transition from materialistic to post materialistic values has been demonstrated to significantly influence happiness, and is generally accepted to also be beneficial to sustainability. The importance of money has also shown to decrease with growing happiness (Zidansek, 2007 ss 1-2, referring Diener & Oishi, 2000). There is a correlation between happiness and sustainability, thus happiness and sustainability can go hand in hand (Zidansˇek, 2007, p. 5).

Wellbeing in South Africa

A survey concerning the perceptions of well-being in South Africa, conducted by David A. Clark, showed that the most important factors to have a good life were to have a job, housing and education. Education and jobs were important to be able to acquire basic housing, to get healthy food and clothing, supporting family and friends, and to achieve happiness, self-confidence, self-respect and peace of mind (Clark, 2003). Money was generally seen as a way to a better life, and as a mean of security and survival, even if some people also expressed a desire to spend money on luxuries. Clark observed on his research that: ”respondents were aware of many of the better things in life, but chose to emphasize the most urgent needs.” (Clark, 2003, p. 15).
The main reason for valuing money was to be able to support family and friends. A good family and reliable friends were in turn considered a valuable source of emotional security, moral support and comfort, company and to avoid loneliness. People in this study indicated that good inter-personal relationships facilitate happiness. The focus on being able to support family and friends was explained to derive from the value system of African Humanism, called “Ubuntu”, in which sharing, trust and treating people with respect, is an effort to promote the common good. (Clark, 2003, pp. 10 -11,13).

Theortical framework

Ecological Footprint

Ecological footprint is a way of quantifying resource consumption. It is an expression of environmental impact in terms of how much biological productive area and water are required to provide the resources a person or a population consumes, and to dispose or recycle the waste and carbon dioxide produced (Jay Withgott, 2011, p. 5).
Living Planet Report 2010 indicates that world’s biological diversity shows a steep, negative trend. Renewable resources are used faster than they can be renewed, more carbon dioxide is emitted than ecosystems can absorb, and human beings over-consume natural resources very fast. In 2010 the joint human ecological footprint was one and a half globe, and keeps growing. It means that the joint human footprint is bigger than what is sustainable in long-term, something that may result in economic loss, negative health impacts and social disruption. It is also undermining the possibilities to meet human needs in the future (Jay Withgott, 2011, pp. 3-5,8,15-16). Generally, countries with a high gross national product (GNP), has a big ecological footprint (WWF, Living Planet Report 2010, 2010, pp. 6,10,12).
The concept of sustainable development is expressed as “development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs” (UN, 1987). To live sustainably, means managing to live from the natures interest, so that the natural capital is not declining. In that way resource base is kept stable and in good shape for future generations. (Jay Withgott, 2011, p. 15).

READ  USABILITY ANALYSIS OF PRODUCTION SYSTEM DEVELOPMENT FRAMEWORK

Problems that consumerism pose on human wellbeing

Over consumption has shown negative influence on human wellbeing. An endless increase in material wealth will lead to feelings of worthlessness and dissatisfaction instead of experiencing a better life and undermines other, non-material values like family, connectedness and nature. When people have too many things, their life will be dominated by maintaining, thinking and caring for things. To afford such lifestyle, people work harder and harder and faster and faster and this results in stress and exhaustion (John De Graaf, 2005, ss.5, 45). It has shown to cause increased loneliness, isolation and alcohol abuse, high rates of depression, drug use for psychic pain and anti-depressants. Also the health and connectedness of the society has shown to decrease when GDP rises (John De Graaf, 2005, pp. 70-72,79).

Immaterial factors for wellbeing

What people crave is not solely money and materialistic values, but they also crave a meaningful life. Meaningfulness can be found in things like service to others, relations with family and friends, connection with nature and work with moral value. A person’s talent, creativity, interest and inspiration must be able to flower, and one must feel that what we are doing is important for others. People need respect, to feel attractive, to feel excitement, identity, experience challenges and love. Real wealth is built on good relations to other people, skills, time to relax, wilderness and love (John De Graaf, 2005, p. 80.117).

Traditional Afrikan Lifestyle

The traditional African lifestyle holds many sustainability-bearing values. Nobel Prize winner Wangari Maathai describes the African lifestyle in the following way: “Much of the African Culture before colonialism was, to a big extent, a sustainable type of culture. Human beings lived in harmony with other species and the natural environment, and they protected that world. People took what they needed for their life, not more, not less. They did this so that future generations would be able to survive and thrive. Their ways of measuring happiness, material and spiritual well-being is completely different ways than we do today. Domestic animals were kept and used carefully for survival and treated humanely. A variety of crops were cultivated. Because most of their basic needs were met, they didn´t consider themselves poor. At the same time, their community was full of rituals, ceremonies and expressions of their connection to the land and to their culture. As a result, they didn´t feel alienated or adrift in meaninglessness”. (Maathai, 2009, p. 162). Traditional African lifestyle has a natural way of shaping a sense of meaning and connectedness, and of quality of life without over consuming.
The traditional African values are holistic. It includes the connectedness between present human generation, ancestors, pre born, animals and environment. All are part of the same system and all are interdependent (Breidlid, 2009). In this way people have an interest in taking care of nature and ecological systems and keep them stable for their own wellbeing and for the use of future generations. This lifestyle seeks harmony and balance between people and nature, and refers to the principle of complementarity (Ntuli, 2002, p. 55). The holistic nature is foundational in the Xhosa lifestyle (Breidlid, 2009, p.14; referring Crossman and Devisch, 2002) which is the dominating tribal system in the Easter Cape province.
“Ubuntu” is part of the traditional African value system, and is based on social interconnectedness. It is “a humanistic way of life that involves sharing, trust and treating people with respect in an effort to promote the common good” (Clark, 2003, p. 11). It is expressed as “I am we. I am because we are. We are, because I am” (Claire Wagner, 2012, p. 58). Ubuntu can be described to be non-manipulative, non-dominating, social and people-centered and relational.This lifestyle advocates attentive and perceptive listening to others (Okumu, 2002). Nelson Mandela, among other high leaders, was raised in this lifestyle, and the knowledge and values he adopted here from, is explained to be the reason to his successful, tolerant, leadership with a struggle to include instead of exclude, to reach consensus, and uniting people from different groups. (Rylander, 2012, pp. 39-42). Social acceptance is not based on wealth, but on the basis of relationships to others. In this way, individuals together support their extended family, avoiding the extremes of dependency and poverty (Okumu, 2002). It works as a kind of social insurance and peace making mechanism. When your own wellbeing is connected to the wellbeing of others, there is no need for protectionism and egoism, because by satisfying others is a way to satisfy yourself. By social inclusion, hospitality, and generous sharing, social sustainability can be promoted
The holistic nature in this lifestyle is suggested to have major contributions to make to the critical debate on ecology, the preservation of natural resources, and to the sustainability of global development (Breidlid, 2009, pp. 141,143), as well as the well-being and happiness of individuals (Maathai, 2009). Some people even suggest that the neglect and erosion of such knowledge, not the least in the school systems in the South, is a major threat to sustainable development (Hoppers, 2002) (Breidlid, 2009, p. 142) .

Table of contents :

1 INTRODUCTION
Introduction
Background
Aim of the study
Hypothesis and research questions
1.4.1 Hypothesis
1.4.2 Research Questions
Methods and limitations
1.5.1 Sampling techniques
1.5.2 Analyses
1.5.3 Limitations
Outline of the study
2 PREVIOUS RESEARCH AND THEORETICAL FRAMEWORK
Previous research
2.1.1 Economy and happiness, The Easterlin Paradox
2.1.2 Wellbeing
2.1.3 Post-materialistic values
2.1.4 Wellbeing in South Africa
Theortical framework
2.2.1 Ecological Footprint
2.2.2 Problems that consumerism pose on human wellbeing
2.2.3 Immaterial factors for wellbeing
2.2.4 Traditional African lifestyle
3 RESULTS
Money
3.1.1 Equity
Work
Social relations
3.3.1 Sports and games
3.3.2 Observations from the rural area
Education
Environment
Religion
African traditions
3.7.1 General observation in the urban group
Future issues
Other wellbeing shaping factors
Experienced wellbeing
4 DISCUSSION
5 CONCLUSION
6 REFERENCES
7 APPENDIX
Questionary pilotstudy
Interviewguide

GET THE COMPLETE PROJECT

Related Posts