About two weeks ago, just ahead of the G-20 summit, the UK’s Sustainable Development Commission released a report titled, Prosperity without Growth? The current financial crisis may seem like a messy place to begin considering the significance and role of projects in sustainability, but the UK’s SDC implicates that this would be the best way to improve the resilience and robustness of our economy.
The report discusses underlying reasons for how we arrived at the global financial crisis, what kind of economy we should work towards, and offers detailed policies and resources for taking the steps to create a more sustainable economy. The authors contend that a “growth imperative” was the underlying cause for the economic collapse, as it was the drive for growth that caused the financial sector to actively seek deregulating policies, and to continue trading unstable financial derivatives. They suggest that we redefine our economic goals in terms of prosperity rather than fiscal, economic growth. All components of prosperity must be considered, including basic human needs such as food, water, shelter, along with components less easy to quantify, such as an individual’s ability to participate and contribute meaningfully to society.
When thinking about ways to devalue growth and enhance prosperity, the SDC warns us not to avoid considering difficult paths, or we will be vulnerable to another economic collapse. For example, they are open to the idea that sustainability may necessitate some amount of growth. And, while this may be difficult – to at once limit excessive economic growth and encourage a small amount of it, that is no reason to disregard any component of the problem when drafting sustainable economic policies.
Some of their suggestions:
- invest in jobs, infrastructure, and green, renewable energy
- reform regulations on the financial sector by increasing public control of the money, outlawing irresponsible market practices, and encouraging public investment in secure national bonds
- develop better work-life balance by reducing hours or enhancing flexibility, measure prosperity by surveying educational participation, sense of community, and social wellbeing
- respect ecological limits by capping emissions and shifting the burden of taxation from income tax onto resources and emissions
Links:
- Recession must make us question relentless pursuit of growth, Sustainable Development Commission
- Transition to a Sustainable Economy, Share the World’s Resources
- Download the full Prosperity without Growth? report here
- The Center for Sustainable Economy
Wow, this is a great report and exactly the kind of thinking I’m interested in.
[...] I first blogged about this report here. [...]