Investment Process

INTRODUCTION

Topical interest of the theme . Investments are a present spending for a future gain either profit or other benefits (ecological, social, technical, skils etc.) as were mentioned before. As a conclusion we relate the investments with the future in all that it concerns. Therefore, we’ll use a new approach different from the classic one in which only the economic profit prevails as a basic indicator. The new approach is to relate investments with the sustainable eco-development concept and the new economy based on information society concept.

Sustainable Development is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs (Brundtland,1987).

For future investments purposes, to arrive at a sustainable eco-product, mostly the product has to be redesigned as this phase depicts the material usage and environmental load during the entire life cycle. The technology is known as a sustainable production requires a continuos improvement of efficiency and effectiveness.

Technology alone will not give sustainable development:

Conditions for technology development will have to be changed.

Cultural & structural changes will be necessary to support sustainable technology.

Environmental efficiency of technology will have to increase factor.

Illustrative processes to illustrate potentialities of technology.

Introduction in investment’s theory and practice for sustainable development

Practical assignments

1. What means investments?

2. What means efficient investments?

3. Could you exemplify an efficient investment ?

4. What is the sense of the sustainable development concept ?

5. Which is the relationship between investments, development, sustainability, production and services.

Review the literature

The literature in the field of sustainability, sustainable development, sustainable industrial production deals with various aspects concerning the triangle man-technology-environment, starting with philosophical assumptions and finishing with economic, social, technical, political, environmental previews, analyses and study cases. These appeared and developed as a political and scientific world reaction to now-a-days problems related to technology and human society development and the capacity of the earth to face this in the context of pollution degree rising and raw materials and energy scarcing.

Many books, research paper works and scientific articles give brief conceptual definitions of sustainability, sustainable development and sustainable industrial production, try to find or impose models (mathematical, phisical, economical, social, etc.) in order to give a solution to the up-mentioned problems.

Jeroen C.J.M. van den Bergh (1991) presented a "study that deals with long term, dynamic models that offer insight into global and regional dimensions of Sustainable Economic Development (SD). The book consists of three parts. First, the conceptual background of the study is outlined, thereby emphasizing economic and regional development, ecological processes, and ethical concern for environment and future generations. In the second part these elements are integrated in dynamic models of development. A general material balance, multisectorial model is designed for linking development with natural environment. It is based on a description of two-way economic-environmental interactions. Subsequently, this model is extended to represent an open system by taking crossboundary flows and external influences into account. In the third part, an attempt is made to operationalize SD models in two case studies (for the Netherlands and Greece)".

The Dutch Committeee for Long Term Environmental Policy (1991), by the book "Towards a sustainable future" exemplifies the search for a new social order, an order in which the economic development and environmental protection are considered interdependent. The four main elements of this search are: (1) signs of hope, towards a sustainable future, (2) transformations which are needed to reach this future, (3) philosophical and methodological reflections; and (4) the necessary changes in the basic institutions of society. The central conclusion is that is important to establish a green strategy aimed at sustainability. As the committee states, " There is no certainty and no statistical probability for a sustainable future, but at least there is a chance".