Rio+20 needs to address the downsides of growth

December 26, 2011

NOTE: Images in this archived article have been removed.

Note from the Daly News editor: The Natural Resources Forum (vol. 35, no. 4) asked 29 experts, including Herman Daly, “What do you think should be the two or three highest priority political outcomes of the United Nations Conference on Sustainable Development (Rio+20), scheduled for Rio de Janeiro in June 2012?” His answer succinctly sums up the steady-state perspective.

Image RemovedThe conclusion of the 1972 Limits to Growth study by the Club of Rome still stands 40 years later. Even though economies are still growing, and still put growth in first place, it is no longer economic growth, at least in wealthy countries, but has become uneconomic growth. In other words, the environmental and social costs of increased production are growing faster than the benefits, increasing “illth” faster than wealth, thereby making us poorer, not richer. We hide the uneconomic nature of growth from ourselves by faulty national accounting because growth is our panacea, indeed our idol, and we are very afraid of the idea of a steady-state economy. The increasing illth is evident in exploding financial debt, in biodiversity loss, and in destruction of natural services, most notably climate regulation. The major job of the United Nations Conference on Sustainable Development is to help us overcome this denial and shift the path of progress from quantitative growth to qualitative development, from bigger to better. Specifically this will mean working toward a steady-state economy at a sustainable (smaller than present) scale relative to the containing ecosystem that is finite and already overstressed. Since growth now makes us poorer, not richer, poverty reduction will require sharing in the present, not the empty promise of growth in the future.

Herman Daly

Superlatives swirl around Herman Daly. He has received numerous significant awards (e.g., the Right Livelihood Award and the NCSE Lifetime Achievement Award) that recognize the value of his ideas for making this world a better place. For decades, he has been an inspiration to students of economics and public policy — how often do you see students lining up at the end of the semester to have their professor sign their textbooks? Over his career, Herman has taken a courageous stance, swimming upstream against the currents of conventional economic thought. Not content to bequeath his ideas on economic development solely to the academic realm, he did time at the World Bank to change policies in the real world. He also has written books that are popular with citizens around the world. It’s a rare combination indeed to have keen insight, kindness, razor-sharp analytical skill, wit, amazing capacity for work, humility, and an uncanny way with words all rolled up into one human being. It’s a good thing, too — the planet needs Herman Daly. His books, lectures, papers, and essays (including the ones he writes for this blog!) are filled with ingredients for cooking up a better economy and better lives.

Tags: Activism, Politics