Growth and sustainability
But the rise of social inequality shows the limits of the previously reliable economic growth in raising living standards across the board. The benefit of growth is heavily weighted towards a minority. Traditional policies that have promoted economic growth have done so at the expense of those at the bottom of the economic food chain. Moreover, mass produced products from overseas which fuel growth in markets in the global north are too often often based on the exploitation of labour in developing countries, sometimes in dire conditions and without living wages. Prioritization of economic growth may fuel and further entrench this model, while causing environmental damage, through pollution and large-scale use of natural resources. The degrowth movement is a method of thinking through redistribution of resources and societal priorities that may provide a viable solution to the global climate crisis by reducing the footprint of developed countries while also accessing the benefits of economic growth at a larger scale. In the Principles of Political Economy , John Stuart Mill (1806-73) envisaged an end point of capitalist development, a ‘stationary state’, where consumption and profit stall as the population stops growing and needs are met. For him, welfare can still improve, especially in non-material ways, thanks to increasing productivity. Today, a radical group of economists, including Serge Latouche, are developing a degrowth model, based on a concept of the Austrian philosopher Andre Gortz. The Degrowth movement argues that given that economic growth is unsustainable and that there is compelling evidence of its impact on climate change, we need to move away from the idea that it is good (World Economic Forum). It suggests that human well-being is not contingent on perpetual economic growth but can instead be achieved through a reorganization of society towards achieving ‘enough’ for each individual, prioritizing shared wellbeing and sustainability rather than the pursuit of perpetual growth. ‘It is important to clarify that degrowth is not about reducing GDP,’ says Jason Hickel, a University of London academic, ‘but rather about reducing [energy and resource] throughput.’ Critics point to the negative impacts of a shrinking economy on poverty, with the risk of the burden falling more heavily on poorer countries. Further, this approach would require international collaboration and agreeing on what is ‘enough’. While the vision of degrowth seems utopian, it provides a useful challenge to the crude and broken compass of GDP growth as primary economic goal, which could mitigate the impact of shift in economic focus for the average person. Politicians cannot act much beyond what is culturally acceptable, or they risk being ousted. However, a deeper and more informed political debate around shifting of priorities from profit maximization and overconsumption to environmental sustainability with social equity could help redefine the social contract through a more long-term perspective. The prioritization of environmental sustainability could bring a more creative economic growth as a way forward.
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