Sustainable Wellbeing

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Sustainable Wellbeing ECOLOGICAL ECONOMICS UNDERCURRENTS Sustainable Wellbeing Stephen Lewis introduces a new Robert Costanza outlines series to show that economics the parameters of a new need not be a dismal science economic paradigm e all know that many of the ecological and he world has changed dramatically. We no longer Wsocial problems confronting the world today live in a world relatively empty of humans and are in large part a consequence of the way our their artefacts. We now live in a new geologic era economic system operates. Thus economics is of known by some as the Anthropocene, a full world central importance. Yet the unfortunate fact is that Twhere humans are dramatically altering our ecological life- the type of economics that has become dominant support systems. seems unable to contribute anything to finding Our traditional economic concepts and models were solutions to the great questions facing humankind developed when the human population was relatively small and the planet. Indeed, worse than this, economics and natural resources deemed abundant. So if we are to is itself a significant part of the problem. This is both create sustainable prosperity, we need a new vision of the because it doesn’t have much to do with how real economy and its relationship to the rest of Nature that is far economies and markets actually work, and also better adapted to the conditions we now face. because it provides an ideological screen for rampant We are going to need an economics that respects planetary self-interested capitalism. boundaries, that recognises the dependence of human But there are many other types of economics. wellbeing on good social relations and fairness, and that Some are relatively new, but others go back at recognises that the ultimate goal is real, sustainable human least 200 years. Although they are very different, wellbeing – not merely the endless growth of material what they have in common is that they all try to consumption concentrated in the hands of a few. This understand the world as it really is and not how new economics also recognises that the material economy it theoretically should be, and unlike the current cannot grow forever on this finite planet. system of economics they do not ignore moral The time has come when we must make a transition. We questions and issues of social, economic and have no choice. Our present path is clearly unsustainable. ecological justice. Paul Raskin, founding director of the Tellus Institute and In this new series I have decided to ask some the Global Scenario Group, has said: “Contrary to the more holistic economists to contribute their views conventional wisdom, business as usual is the utopian to show that economics needn’t be a dismal science fantasy; forging a new vision is the pragmatic necessity.” and could be part of the solution. What we do have is a very real choice about how to make The first contributor is ecological economist this transition and about what the new state of the world Robert Costanza. Robert is co-founder and past will be. We can engage in a global dialogue to envision “the president of the International Society for Ecological future we want” (the theme of the UN’s Rio+20 conference), Economics, and was chief editor of the society’s and then devise an adaptive strategy to get us there, or we can journal, Ecological Economics, from its inception allow the current system to collapse and rebuild from a much in 1989 until 2002. He is also founding editor-in- worse starting point. Obviously, the former strategy is better. chief of Solutions, a unique hybrid academic but To do this, we need to focus more directly on the goal of popular journal (www.thesolutionsjournal.org). sustainable human wellbeing rather than merely GDP growth. His transdisciplinary work integrates the study of This includes protecting and restoring Nature, achieving social humans and the rest of Nature to address research, and intergenerational fairness (including poverty alleviation), policy and management issues over multiple time stabilising population, and recognising the significant non- and space scales – from small watersheds to the market contributions to human wellbeing from natural and global system. social capital. And to do this, we need to develop better Ecological economics has a long pedigree and is measures of progress that go well beyond GDP and begin to one proof of the fact that economics can be part measure human wellbeing and its sustainability more directly. of the solution rather than a significant hindrance. We need a new model of the economy based on the worldview and principles of ecological economics. Ecological Stephen Lewis is acting Commissioning Editor for this economics starts by recognising that our material economy Economics series of articles which will appear periodically in is embedded in society, which is embedded in our ecological future issues. life-support system, and that we cannot understand or Issue 279 Resurgence & Ecologist 39 manage our economy without understanding the whole, capacity of our finite planet to provide the resources needed interconnected system. It also recognises that growth for this and future generations. Social fairness means that (increase in size or scale) and development (improvement these resources are distributed fairly within this generation, in quality) are not always linked and that true development between generations, and between humans and other species. must be defined in terms of the improvement of sustainable Efficient allocation means that we use these finite resources wellbeing, not merely growth in material consumption. as efficiently as possible to produce sustainable human Finally, it recognises that sustainable wellbeing requires a wellbeing, recognising its dependence on the wellbeing of the healthy balance among thriving natural, human, social and rest of Nature. cultural assets, and adequate and well-functioning produced We have never had greater global capacity, understanding, or built assets. These assets are referred to as ‘capital’ in the material abundance and opportunities to achieve these sense of a stock or accumulation or heritage – a patrimony objectives. This includes scientific knowledge, communications, received from the past and contributing to the welfare of the technology, resources, productive potential, and the ability present and future. Clearly our use of the term ‘capital’ is to feed everyone on Earth. However, we are not achieving much broader than that associated with ‘capitalism’. sustainable wellbeing and indeed we are moving in the These assets, which overlap and interact in complex ways wrong direction at an increasing rate. For example, global to produce all human benefits, are greenhouse-gas emissions continue defined as to rise, humanity is using resources We are probably much faster than they can regenerate, • Natural capital: the natural already in the biodiversity is diminishing rapidly, most environment and its biodiversity, global ecosystem services are in decline, which, in combination with the middle of a critical and inequality is growing. The United other three types of capital, provide turning point Nations has acknowledged that progress ecosystem goods and services – towards the Millennium Development the benefits humans derive from Goals has stalled. ecosystems. These goods and services are essential to basic We will never achieve the world we want unless we change needs such as survival, climate regulation, habitat for the current economic paradigm, which is a fundamental other species, water supply, food, fibre, fuel, recreation, cause of the current crises. This paradigm, institutionalised cultural amenities, and the raw materials required for all at the Bretton Woods conference in 1944, was devised prior economic production. to an understanding of finite global resource limits and the • Social and cultural capital: the web of interpersonal emerging science of wellbeing. Without a new economic connections, social networks, cultural heritage, traditional paradigm, we will continue down an unsustainable and knowledge, trust, and the institutional arrangements, undesirable path. The Bretton Woods system rightly rules, norms and values that facilitate human interactions considered a growth economy better than another world and cooperation between people. These contribute to war, especially when the world population was relatively social cohesion, strong, vibrant and secure communities, small. However, times have changed and it is now time for and good governance, and help fulfil basic human needs a new paradigm. such as participation, affection and a sense of belonging. To make the transition to a just and sustainable economy • Human capital: human beings and their attributes, including will require a fundamental change of worldview or vision of physical and mental health, knowledge, and other capacities what the economy is and what it is for. The new worldview that enable people to be productive members of society. This is one that recognises that we live on a finite planet and involves the balanced use of time to fulfil basic human needs that sustainable wellbeing requires far more than material such as fulfilling employment, spirituality, understanding, consumption. This implies replacing the present goal of skills development, creativity and freedom. limitless growth with goals of material sufficiency, equitable • Built capital: buildings, machinery, transportation distribution and sustainable ecosystems. It also implies infrastructure, and all
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