A policy framework for sustainability in developing countries: applying value chain theory to a society's hierarchy of needs

This paper serves to refine a framework for prioritizing policy related to sustainable development that combines elements of A.H. Maslow’s hierarchy of needs theory with M.E. Porter’s value chain theory. The research community has provided a variety of methodologies related to the determination of measurement indicators associated with sustainable development. The use of aggregate indices as indicators of sustainable development has been supported by researchers in the latest literature on sustainable development. Indices-based research however appears to have had little influence on policy development because sustainability indicators in themselves provide no direction for how the information can be used to become more sustainable. Using recent index measures, an appropriate balance of social, economic and environmental sustainability is examined so that policy makers may be provided some direction in regards to appropriate and socially-just resource priorities. The model that forms the basis for this framework is tested through hierarchal regression analysis using data from 45 developing countries and compared to previous testing using earlier data. These latest results confirm the values chain framework whereby the satisfaction of society’s physiological needs through the prioritization of policies related to social and environmental sustainability is the principle motivator for moving on to the attainment of higher order needs such as increased levels of sustainable development.