Is economic growth solving our problems (e.g. unemployment, poverty, environmental degradation) or is it rather the cause of these problems? Whoever is concerned with an absolute reduction of the global resource consumption, will have to face this issue: even though we use resources and energy more efficiently we consume more overall. At the annual meeting of the Club of Rome in Madrid, the outgoing managing director of the IMF (International Monetary Fund) Rodrigo Rato mentioned three serious threats to global economic growth:
• the instability of the financial markets,
• climate change, and
• demographic change.
The possibilities of a qualitative growth are in the center of SERI’s compilation of arguments for “What kind of growth is sustainable?” – an alternative growth which complies with a sustainable development. This means the provision of services and utilities, which increase human well-being, without reducing the capital stock per capita. However, in order to overcome a purely market oriented consideration of economic activities, an approach has to be chosen, which besides real and financial capital also includes natural, human and social capital. An increasing quality of life along with a positive subjective perception of the people should become the focus and the objective of qualitative growth.
The need for everlasting economic growth, for competition in markets and for social status boosts our resource consumption and may actually lead to addictive behavior. Thus, a permanent state of dissatisfaction is created, which cannot yield sustainable happiness.
Economic growth is securing jobs, international competitiveness and tax revenues of a state. In a traditional understanding of economics this is obvious and cannot be ignored. Hans-Christoph Binswanger claims that money poses a permanent pressure on the economy to grow. The dynamics of growth are actually driven by money, energy and imagination. The question is, how would an economy develop if natural constraints are considered, and which alternative financial boundary conditions are compatible with a – possibly ecologically induced – lower rate of growth?
The main outcome of this SERI project is a paper of about 30 pages easily readable by laypersons. Starting from the sustainable development strategy of the EU, arguments of such an “alternative growth” were compiled, whereby an emphasis is placed upon concepts of human quality of life and well-being.
With it, a book was published at the beginning of May 2009, entitled „Which growth is sustainable? A presentation of arguments” (original title in German: “Welches Wachstum ist nachhaltig? Ein Argumentarium”). In addition to the presentation of arguments, it comprises 13 accompanying commentaries from selected experts. Click here for more information.
Deutsche Version
