October 1 2014, 3.46pm EDT
What does genuine economic progress look like? The orthodox answer is that a bigger economy is always better, but this idea is increasingly strained by the knowledge that, on a finite planet, the economy can’t grow for ever.
This week’s Addicted to Growth conference in Sydney is exploring how to move beyond growth economics and towards a “steady-state” economy.
But what is a steady-state economy? Why it is it desirable or necessary? And what would it be like to live in?
The global predicament
We used to live on a planet that was relatively empty of humans; today it is full to overflowing, with more people consuming more resources. We would need one and a half Earths to sustain the existing economy into the future. Every year this ecological overshoot continues, the foundations of our existence, and that of other species, are undermined.
At the same time, there are great multitudes around the world who are, by any humane standard, under-consuming, and the humanitarian challenge of eliminating global poverty is likely to increase the burden on ecosystems still further.
Meanwhile the population is set to hit 11 billion this century. Despite this, the richest nations still seek to grow their economies without apparent limit.
Like a snake eating its own tail, our growth-orientated civilisation suffers from the delusion that there are no environmental limits to growth. But rethinking growth in an age of limits cannot be avoided. The only question is whether it will be by design or disaster.
Degrowth to a steady-state economy
The idea of the steady-state economy presents us with an alternative. This term is somewhat misleading, however, because it suggests that we simply need to maintain the size of the existing economy and stop seeking further growth.
But given the extent of ecological overshoot – and bearing in mind that the poorest nations still need some room to develop their economies and allow the poorest billions to attain a dignified level of existence – the transition will require the richest nations to downscale radically their resource and energy demands.
This realisation has given rise to calls for economic “degrowth”. To be distinguished from recession, degrowth means a phase of planned and equitable economic contraction in the richest nations, eventually reaching a steady state that operates within Earth’s biophysical limits.
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