Can We Have Prosperity Without Growth? – OpEd
“Prosperity Without Growth” is a book by author and economist Tim Jackson. It was originally released as a report by the Sustainable Development Commission. The study rapidly became the most downloaded report in the Commission’s history when published in 2009. The book summarizes the evidence showing that, beyond a certain point, growth does not increase human well-being. The book analyses the complex relationships between economic growth, environmental crises, and social recession. It proposes a route to a sustainable economy and argues for a redefinition of “prosperity” in light of the evidence on what contributes to people’s well-being.
Following the Idea of prosperity without growth, after the 2008 financial crisis, some European countries introduced a new economic evaluation: the “Wellbeing Economy”. As well as measuring things that have a price tag, it also takes into account welfare and quality of life, including access to housing and green spaces, as well as gender equality. All investments need to be shifted to be good for people and the planet. Negative factors like environmental degradation and the consumption of resources must be balanced.
The growth that diminishes the ecosystem is sometimes termed “uneconomic growth” as it leads to a decay in the quality of life. Unsustainable economic growth, which harms the environment, can be compared with the malignant growth of cancer. Environmental issues include deforestation, mineral extraction, pollution, overpopulation, energy, and species conservation. Sustainable development aims to balance the needs of the economy, environment, and society. It is a development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains two key concepts within it: the concept of ‘needs’, in particular, the essential needs of the world’s poor, to which overriding priority should be given; and the idea of limitations imposed by the state of technology and social organization on the environment’s ability to meet present and future needs.
The modern economy is structurally reliant on economic growth for its stability. When growth falters – as it has done recently – politicians panic, businesses struggle to survive. People lose their jobs, sometimes their homes and a spiral of recession looms. Economic recovery is vital, protecting people’s jobs – and creating new ones – is absolutely essential. But we also stand in urgent need of a renewed sense of shared prosperity.
Most countries of the world are vulnerable and concerned about the environment, climate change, water-induced disasters and hydrometeorological risky events such as droughts, storms, floods, inundation, landslides, debris flow, soil erosion, and avalanches. Similarly, they are facing serious challenges in climate change, biodiversity loss, growing inequality, and more, as economic systems are not on the right track enough to deliver a good balance of environmental and developmental goals. Even the countries, who have the least industrial and pollution base, are also suffering from the effects of global warming and pollution effects of developed countries.
For example, Nepal has been trapped between India and China, two major pollutants of the world. It has the lowest carbon emission, however, it has been highly affected by climate change. Melting glaciers, erratic and unpredictable weather conditions, changing rainfall patterns, and rising temperatures are impacting Nepal. There is a high possibility that many glacial lakes in the Himalayas will burst by the effects of global warming in the near future, which would destroy life and property, in massive scales in the affected areas. It would create water scarcity for drinking and irrigation for billions of people in the South Asia region. In the similar manner, the rapid ice melting in Greenland and Antarctica regions have also started posing new challenges in serious environmental disbalances. Another proper example could be, the six million square kilometers of Amazon rainforest in South America is suffering from deforestation caused by human settlement, development of the land and forest fires. In 2022, about 20% of the Amazon rainforest has already been deforested and a further 6% was “highly degraded”. It has started to affect the change in river and underground and rainwater systems in the northern part of South America and Southern parts of the US. Research suggests that upon reaching about 20–25% , the tipping point to flip it into a non-forest ecosystem – degraded savannah will be reached.
In order to bring balance between growth and environment, many countries in the world are adopting the concept of the green economy at the local level, which is mainly based on sectors such as: renewable energy, green building, sustainable transport, water management, waste management, and land management. It aims to reduce environmental risks and ecological scarcities for sustainable development without degrading the environment. On a national and universal level, the key aspects of prosperity without growth seem to be more wider and broad based compared to balance between growth and environment at the local level. At national and global level, it not only focuses on GDP but also emphasizes on well-being, social equity, and environmental health with high priority in decoupling environmental impacts from economic activity, emphasizing on technological advancements, policy changes, and reforms in consumption patterns.
The quality of life, socialjustice, and ecological sustainability based on local economies, services and cooperative models are also alternative economic models under prosperity without growth. It does not recognize increased consumption necessarily equates to increased happiness and explores how to achieve well-being through other means, such as strong social connections, leisure time, and access to quality services.
In the similar way, It focuses on the benefits of growth by creating a more equitable society where everyone can thrive. It prioritizes reducing emissions, conserving resources, and protecting biodiversity as policy advocacy for sustainability of global order. Moreover, the importance of investing in renewable energy sources, sustainable agriculture, and resource-efficient technologies are other important factors under prosperity without growth.
Last but not least, almost all countries of the world are blindly competing for economic growth by consumption and use of materials by degrading the environment as signs of their prosperity. They are least concerned with the poverty of poor countries as poverty has been a major source of environmental degradation as people heavily rely on their local ecosystem as a source for basic needs and easy means to earn money. By arguing that “prosperity – in any meaningful sense of the word – transcends material concerns,” beyond a certain point, growth does not increase human well-being. The excessive desire for both growth and consumption has already been accompanied by the degradation of an estimated 60% of the world’s ecosystems. The myth of growth has failed us. It has failed the two billion people who still live on less than $2 a day. It has failed the fragile ecological systems on which we depend for survival. It has failed, spectacularly, in its own terms, to provide economic stability and secure people’s livelihoods.
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