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Sustainability and Economic De-Growth

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Sustainability and Economic De-Growth Brief for GSDR 2015 Sustainability and economic de-growth Maria Rita Guercio - University of São Paulo* A major problem that permeates human degradation of the environment happens development today are the limits that the only to meet the needs of the wealthier Earth's ecosystem imposes on efforts to half of the world population, while the persist in an increasing economic growth. poorest are suffering from environmental With the end of t the Cold War the degradation and are still priced out of environmental issue gained relevance but material blessings. The poorest countries the economic interests still speak louder. suffer from drought, soil desertification, The pattern of development based on the floods, dumping of toxic products and model of the Industrial Revolution still other environmental disasters. remains and is structured as unsustainable. Sustainability means, of course, social But this unbridled growth resulted in inclusion and rational use of natural speculative bubbles and crises which resources. further harm the ecosystem and do not cooperate in a sustainable and more Michael Renner says the Green Economy is equitable society. Michael Renner of World the tendency to ally development Watch Institute says: "In general, respecting the natural limits of the environmental governance was relegated ecosystem, creating social welfare reducing to the sidelines in search of economic environmental risks. Emerging countries globalization driven by corporate interests are somewhat resistant when carbon - a process that has been marked by emission containment measures are deregulation and privatization and the required, and may represent a limitation to relative weakening of political institutions their development. However, it is the task of the emerging countries, which have not national "(Renner, 2012). yet reached a high level of development The mistake is to believe that the but have a position to increase, promoting resumption of indiscriminate economic the conditions to leverage a model of growth and increased consumption is the increasingly sustainable economy, serving solution to this situation. The new as a model for other countries. Ana Flavia paradigm that is established is the need for Barros, a Brazilian professor of economic-growth which in turn would International Relations, says that emerging cause a decrease in consumption. Only countries are being required both with this retraction is possible to leverage a proposals as the responsibilities regarding stronger economy and without stress to the current environmental issue because: the already aggravated ecosystem. The "(...) if liability has always been the rich United Nations University (UNU - Wider) countries, now new responsibility is also states that in 2000, 1% of the richest adults emerging, robust economies, with in the world own 40% of the world's wealth internationally articulated leaders, big while the disadvantaged half of humanity polluters and emitters of greenhouse gases has only 1% of global wealth. That is, the (GHG), and large consumer markets, given 1 *The views expressed in this brief are the author’s and not those of the United Nations. Online publication or dissemination does not imply endorsement by the United Nations.E-mail: [email protected] that China, India, South Africa and Brazil calculated steps and less daring in their represent 1 / 3 of the world population consumption and investment decisions" "(Barros, 2011). (Barros, 2012). This effort to promote a sustainable Thus, the traditional economy is headed, economy is aligned with the paradigm of up involuntarily, for this decrease. We economic degrowth that does not mean must seize this opportunity and propose a stagnation, but a more rational and new paradigm of retraction of growth, balanced growth with respect to natural consumption restraint, seeking a simpler resources. Reduction of working hours and standard of living, with less trinkets consumption is the keynote from now on. (electronics, books and toys), living in Erik Assadourian, a researcher at the simple homes, using less car and more Worldwatch Institute states that: "(...) the public transport, as housing, transport and rapid warming of the Earth and other food cause a major ecological impact. The damage to ecosystem services reduction of consumption should focus on demonstrate that economic degrowth is goods and services, as people are induced vital and must be covered as soon as to purchase them, and there is not a real possible so as to achieve the stabilization need to get them, generating in turn harms of earth's climate, the prevention of the health and ecological stress. Studies irreparable damage to the planet and in show that consumerism is funded by long the process, to civilization "(Assadourian, working hours and debt but do not 2012). promote full satisfaction of human needs, such as leisure, family and community life. In addition to the ecological limits, the 2008 crisis shows that the world economy The economic and environmental crises has entered a new phase. Octavio de show the need for greater market Barros, Brazilian economist, says that until regulation and implementation of public then the growth rates were high, there was policies that promote new patterns of credit expansion and lack of concern with behavior, less degrading to the financing. Following the precepts of the environment and based on sustainable economist Mohamed El-Erian, the world models. Such policies will be fully effective economy was entering a "new normal". if they take into account social inclusion During the period 2000 to 2007 the world within countries and between nations on a economy has seen a rapid growth of China, global scale. New models of housing, with deregulation of the financial system transportation, food, less consumption and and growth based on consumption. For El- structuring of new paradigms of Erian this development model would have coexistence must be implemented with the been exhausted. The "new normal" mean basic support public policies to foster China growing, but at lower levels and them. The energy sector, strategic field of emerging countries would be based its human activity, needs not only of fossil productivity growth rather than fuels, blamed for global warming and consumption, greater financial regulation various political disturbances. Research and lower supply of credit. According to indicates that the use of renewable energy Barros, "It is as if there had been an sources like wind and biofuels, are less apprenticeship with the crisis that makes harmful to the environment and are businesses and families deem more responsible for an increase in the number 2 of jobs. We need to promote public References transport, create sustainable housing, promote recycling. In developing countries Assadourian, Erik. The path to the decrease such as Brazil, recycling has an essential in countries with excessive development. role in the informal economy, although the How to make the green economy work. collection of recyclable materials is an State of the World 2012: towards alternative to avoid poverty than the result sustainable prosperity / Worldwatch of an ecological conscience. Institute. Salvador, A Ed., 2012. We must deploy a new standard of social Barros, Ana Flavia Granja and. The Brazil in behavior, based on perennial and the governance of major contemporary sustainable values. The planet cannot offer environmental issues. Brasília, DF: ECLAC. renewable resources in a sustainable and Brazil office / IPEA, 2011. (Texts for continuously and also cannot processing Discussion ECLAC-IPEA, 40) more of waste. The Earth has limited Barros, Octavio. The "normal new" resources and increasing demand. We Brazilian and its implications for growth. need public policies that value goods and Private in Focus, n. 48, October / 2012. services that are more sustainable, deploying new patterns of behavior. James B. Davies et. al. The World Taxation of non-sustainable goods and Distribution of household wealth, services becomes an incentive to change. Discussion Paper No. 2008/03 (Helsinki: Society and government need to be aware UNU - WIDER, 2008), pp. 7-8. Apud: and to propose this new standard, which Renner, Michael. How to make the green celebrates life in its fullness, not allowing economy work. State of the World 2012: economic interests speak louder than towards sustainable prosperity / human and nature values. Worldwatch Institute. Salvador, A Ed., 2012. Renner, Michael. How to make the green economy work. State of the World 2012: towards sustainable prosperity / Worldwatch Institute. Salvador, A Ed., 2012. 3 .
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