09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

1

The global ethical The global ethical trilemma andtrilemma and

degrowthdegrowth

Jan Otto AnderssonÅbo Akademi, Finland

Summer School:  Sustainability & Culture in the BSR Syllabus

2

Elements of Ecological EconomicsElements of Ecological Economics

Topics including: The general policy perspective required by sustainability Economic growth in a historical perspective Sustainability conceptions and measurement within ecological

economics Economics and ethics of climate change Global food security The state of the seas on earth and locally (the Baltic Sea).

Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

Ralf Eriksson is a lecturer in economics at Åbo Akademi University of Turku, Finland. Jan Otto Andersson is also currently a lecturer in economics at Åbo Akademi University of Turku, Finland. He is also a founding member of Basic Income European Network (BIEN) and the European Association for Evolutionary Political Economy (EAEPE).

THE GLOBAL ETHICAL TRILEMMA

09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

3

Pick two – ignore the thirdPick two – ignore the third

Mass consumption Prosperity

Global social- Eco-efficientdemocracy capitalism

Global Ecological justice

sustainability

Red-green planetarism

09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

4

Global social democracyGlobal social democracyWorld Development Report 2006

Equity and Development. Prosperity can be generalized globally. The world population will stop rising and world production growth will stabilize until all countries, economically, start resembling countries like the United States, thanks to free trade and the diffusion of technology.

09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

5

Global social democracyGlobal social democracyILO World Commission

A Fair Globalization: Creating Opportunities for All

The Social Dimension of Globalizationchaired by the Finnish and Tanzanian presidents

Stresses social justice, employment and economic growth, while touching upon environmental problems only lightly.

09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

6

Eco-efficient Eco-efficient capitalismcapitalism

Are we consuming too much? article by a group of renowned economists (Arrow) and ecologists

Through taxes and the establishment of clearer and more secure property rights, public policy can help prices of natural and environmental resources better approximate their social costs.

Will poor people be able to pay the corrected prices for water, electricity, fuels and other amenities?

09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

7

Redgreen planetarismRedgreen planetarismWe are consuming too much and global justice and ecological sustainability can be achieved only if the present levels of consumption in the rich countries are reduced.

“The earth provides enough for everybody's need, but not enough for everybody's greed” (Gandhi)

Ecological economics differs from environmental economics. It puts sustainability at the centre of analysis, and it focuses on distributive justice globally as well as between present and future generations.

8

Prosperity – the capacity to Prosperity – the capacity to flourishflourish Tim Jackson: Tim Jackson: Prosperity without GrowthProsperity without GrowthProsperity is not synonymous with material wealth.

Prosperity has to do with our ability to flourish: physically, psychologically and socially.

Beyond mere sustenance, prosperity hangs crucially on our ability to participate meaningfully in the life of society.

Capabilities are bounded by the scale of the global population and by the finite ecology of the planet.

Three kinds of Three kinds of EconomicsEconomics

9

DécroissanceDécroissance Paris 2008, Barcelona 2010Paris 2008, Barcelona 2010 If we do not respond to this situation by bringing global economic activity into line with the capacity of our ecosystems,

and redistributing wealth and income globally so that they meet our societal needs,

the result will be a process of involuntary and uncontrolled economic decline or collapse,

with potentially serious social impacts, especially for the most disadvantaged.

10

Paradigm shift Paradigm shift We therefore call for a paradigm shift from the general and unlimited pursuit of economic growth to a concept of “right-sizing” the global and national economies.

At the global level, “right-sizing” means reducing the global ecological footprint (including the carbon footprint) to a sustainable level.

11

Uneconomic growth Uneconomic growth (Herman (Herman Daly)Daly)The law of diminishing marginal utility of income tells

us that we satisfy our most pressing wants first, and that each additional unit of income is dedicated to the satisfaction of a less pressing want. So the marginal benefit of growth declines.

Similarly, the law of increasing marginal costs tells us that we first make use of the most productive and accessible factors of production and only use the less productive factors as growth makes it necessary. Consequently, marginal costs of growth increase.

When rising marginal costs equal falling marginal benefits then we are at the optimal level of GNP, and further growth would be uneconomic - would increase costs more than it increased benefits.

Uneconomic Growth: Conflicting Paradigms. Acceptance Speech by Herman Daly. The Right Livelyhood Awards 1996.

12

Grow, dammit, grow!Grow, dammit, grow!Economic growth may depend on structural reforms as

much as prudent macroeconomic policy

13

Oct 7th 2010

•Log in

14

Tillväxtsyndromet -Tillväxtsyndromet -pengar, makt, statuspengar, makt, status

The Iron Cage of The Iron Cage of consumerism consumerism The extended self is motivated by the angst of the empty self. Social comparison is driven by anxiety to be situated favourably in society.

Creative destruction is haunted by the fear of being left behind in the competition for consumer markets.

Tim Jackson: Prosperity without Growth, 2010

15

The Iron Cage of The Iron Cage of consumerismconsumerismThrive or die is the maxim of the jungle. It’s equally true in the consumer society. Nature and structure combine together here to lock us firmly into the iron cage of consumerism.

Lured by our evolutionary roots, bombarded with persuasion, and seduced by novelty: we are like children in the sweet shop, knowing that sugar is bad for us; unable to resist the temptation.

09.10.22 Åbo Akademi University - Domkyrkotorget 3 - 20500 Åbo

16

Is another economy Is another economy possible? possible?

17