by Rob Dietz
[ CHAPTER 15 ]
ENOUGH WAITING
Taking Action to Start the Transition
[H]ere’s the deal: forget that this task of planet-saving is not possible in the time required. Don’t be put off by people who know what is not possible. Do what needs to be done, and check to see if it was impossible only after you are done.
PAUL HAWKEN1
THE BLUEPRINT
According to Greek mythology, Helios, the sun god, lights the earth each day by driving his fiery chariot across the sky. He has made the trip from sunrise to sunset nearly nine hundred thousand times while the Parthenon has stood atop the Athenian Acropolis. This ancient temple has survived for more than two thousand years because it was conceived and constructed with durability in mind. The architects developed a timeless design, and the builders delivered a strong foundation and support structure. The same principles apply to creating a lasting economy: start with a good blueprint, construct a strong economic foundation, and build well-crafted policy pillars on top of it.
As described in Part I of this book, the social and environmental challenges of our times call for a new economic blueprint. The business-as-usual approach of chasing perpetual growth is failing. It is not sustainable on a finite planet, and it is damaging the natural systems upon which the economy depends. It is also not solving the problems of unemployment, poverty, and inequality. Nor is it improving the well-being of those who already have enough material wealth. To address these issues, we need a new economic structure designed for stability instead of growth.
More than 250 people attended the Steady State Economy Conference held in Leeds, U.K., in 2010. They provided a wealth of ideas that we have incorporated into the blueprint for a steady-state economy. More work remains to be done, but the basics of the building are clear (Figure 15.1). The foundation consists of the defining features of the economy—the ideals that guide our choices. The support structure consists of policy pillars designed to fulfill these economic ideals over the long term. And the roof that is held up by this support structure represents the ultimate goal of the economy: sustainable and equitable human well-being.
FIG. 15.1. The blueprint for a steady-state economy (SSE) includes a foundation (defining features of the economy), pillars (economic policies and transitional strategies), and roof (the ultimate goal of sustainable and equitable human well-being).
The Foundation
The foundation of a steady-state economy includes the four key features discussed in the first part of this book:
1. Sustainable scale. Material and energy use are stabilized and kept within ecological limits. This means stabilizing both population and the stock of built capital. In some economies, degrowth may be required before sustainable scale can be achieved.
2. Fair distribution. People have equal opportunities to obtain wealth and income, and limits to inequality prevent excessive gaps between the rich and the poor.
3. Efficient allocation. Societies harness the power of markets to allocate resources among competing interests, taking account of where markets work and where they don’t.
4. High quality of life. GDP growth takes a backseat to the things that really matter to people, such as health, happiness, secure employment, leisure time, strong communities, and economic stability.
A society with these four features embedded in its economic institutions stands to achieve a lasting prosperity.
But building this foundation from scratch is not an option. We are saddled with the current economic system, an unstable foundation that is in need of substantial repairs. The repair work requires us to re-envision four keystones of the economy:
1. Investment. We need to embrace a deeper view of investment that encompasses more than using money to make money. Our investments should generate environmental and social returns, not just financial returns.
2. Productivity. The way firms regard productivity needs to change as well. In the relentless pursuit of profits, firms currently seek to maximize productivity, a practice that causes job losses and overexploitation of natural resources. Optimization, not maximization, must become the watchword when pursuing labor productivity.
3. Ownership. It’s long past time to acknowledge that we have many options besides the extremes of state socialism and private capitalism. A steady-state economy would contain a variety of ownership arrangements, especially ones founded on democratic principles.
4. Environmental values. We need to reacquaint ourselves with a fundamental truth that seems to have been lost, at least where the economy is concerned—that humanity is part of a living planet. We depend on the natural world for our survival, and this fact needs to be reflected in our economic decisions.
It’s difficult to conceive of a more worthwhile project than building the foundation for a steady-state economy, but widespread public support is still needed. Once that support emerges (and it surely will as the limits to growth continue to assert themselves), we must be prepared to build a cohesive set of policies and strategies atop the foundation.
The Pillars
Part II of this book, Strategies of Enough, describes seven policy directions that serve as pillars of a steady-state economy:
1. Limit resource use and waste production.
2. Stabilize population.
3. Distribute income and wealth equitably.
4. Reform monetary and financial systems.
5. Change the way we measure progress.
6. Secure full employment.
7. Rethink how businesses create value.
In addition to these, three more pillars (introduced in the third part of this book) are needed to energize the transition to a steady-state economy:
1. Replace the culture of consumerism with a culture of sustainability.
2. Stimulate political debate and media coverage of the limits to growth and the steady-state alternative.
3. Change national goals regarding growth and improve international cooperation.
Although we have presented these ten ideas in separate chapters, they cannot work in isolation. Just like the pillars in an architectural structure, the economic policies and transitional strategies must work in parallel to support a sound economy. For example, throughput-limiting policies must be accompanied by policies that distribute income and wealth equitably to ensure everyone has access to a fair share of material and energy flows. And throughput-limiting policies are likely to be ineffective in a world where population continues to rise, so policies to stabilize population are also essential.
In Chapter 7, we proposed democratizing the institutions where people work. This process of democratization would require a fundamental change in the way businesses operate, perhaps along the lines discussed in Chapter 11. A shift toward more democratic forms of business organization (such as cooperatives) would likely dampen the growth imperative found in current business practices, and thus reduce resource use as well.
In Chapter 10, we proposed reducing working hours in order to achieve full employment. A reduction in working hours would likely lead to a decrease in resource use and an increase in well-being. However, to reduce their working hours, people would need to embrace the notion of enough when it comes to consumption. Thus, behavioral change away from consumerism would go hand-in-hand with policies to reshape employment practices. Some policies, such as adoption of new measures of progress, can probably gain traction on their own. But in most cases, it is difficult to imagine advancement on one policy without concurrent advancement on others.
In general, the policy and strategy pillars recommended in this book are mutually reinforcing, which is good news. It suggests that a steady-state economy would be a stable economy, with checks and balances that restore it to equilibrium in the face of economic or environmental shocks. This stability is in contrast to the current growth-based system, which exists far from equilibrium. Shocks such as oil price rises and debt defaults have pushed growth-based economies to the brink of collapse.
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p; Deployment of any of the policies discussed in this book requires a shift from the culture of consumerism to a culture of sustainability. Neither the policies nor the shift will be forthcoming without broadening the society-wide discussion on economic goals and the limits to growth, or without stepping up international cooperation. In short, we need to build all of the pillars, perhaps not simultaneously, but with a view toward completing the entire economic structure.
The Roof
The purpose of laying a foundation and raising pillars is to support a roof. After all, the roof is the part of the building that provides shelter. The roof, or ultimate goal, for the economy is sustainable and equitable human well-being. Each part of this phrase plays a critical role:
• Sustainable. There is little point in attaining well-being for one generation at the expense of future generations. Careless consumption of tomorrow’s resources for today’s enjoyment is no basis for a lasting prosperity.
• Equitable. Failure to provide equitable opportunities has derailed economic systems through the ages. Well-being for certain individuals without regard for others undermines the basis for community and societal health.
• Well-being. Human well-being, as measured by subjective indicators such as happiness and life satisfaction, needs to become the unifying theme of the economy. If people are unable to lead happy and satisfying lives, they will not accept their situation for long.
The foundation and pillars described in this book offer hope for achieving sustainable and equitable well-being. Herman Daly’s definition of a steady-state economy is one with “constant stocks of people and artifacts, maintained at some desired, sufficient levels by low rates of maintenance ‘throughput,’ that is, by the lowest feasible flows of matter and energy from the first stage of production to the last stage of consumption.”2 Such an economy maximizes its ends (sustainable and equitable well-being), while economizing on the ultimate sources of that well-being (flows of materials and energy). It is a true economy of enough.
THE WHOLE BUILDING
Many people, as they begin to consider the problems with pursuing perpetual growth, ask with some trepidation what a nongrowing economy would look like. We hope our descriptions of the institutions and policies needed for a steady state have provided some idea. A nongrowing economy certainly doesn’t have to resemble the recessions and depressions of a failed growth economy. Daly has joked that some people mistakenly believe a steady-state economy would mean “freezing in the dark under communist tyranny.”3 But a steady-state economy is not about deprivation, and it doesn’t require the heavy hand of a Politburo. It’s not even about a return to the “good old days.” It is, in fact, a progression to the “good new days.” As Peter Victor’s model of the Canadian economy has shown, we can achieve important goals for society in an economy with a stable size.4
We began writing this book because we wanted to know how a steady-state economy would work in practice, and how the world might make the transition to one. We wanted to better understand how future generations could flourish within the capacity of the planet. Along the way, we have become increasingly hopeful about the possibilities. We don’t want to sugarcoat the difficulty of shifting to a steady-state economy—it’s likely to be a tough transition—but the destination is well worth the journey. Once society can put aside its obsession with economic growth, the stage will be set for achieving prosperity over the long run. To provide a glimpse of what the days ahead might look like, we’ve sketched out ten encouraging scenes from a steady-state economy:
1. Consumption. People consume enough to meet their needs and lead meaningful, joyful lives without undermining the life-support systems of the planet. They choose to consume energy and materials responsibly, conserving, economizing, and recycling where possible. Conspicuous consumption becomes a thing of the past. Citizens (yes, citizens, not consumers) recognize the culture of materialism as a bankrupt ideology and a poor path to happiness. They forget about trying to accumulate ever-more stuff and focus on more worthwhile pursuits.
2. Population. As population stabilizes (and decreases in some places), streets become less crowded. Frenzied competition subsides as each person is able to obtain sufficient resources for a high quality of life. Overcrowded slums become a curiosity for historians to study.
3. Families. In their households, families emphasize healthy lifestyles and relationships. With a shorter workweek, family members can spend more quality time with one another and explore personal development. Maybe they pick up a musical instrument every once in a while, learn a new language, or watch a sunset. Children receive more attention, and the lament “I wish I’d spent more time with my family” is rarely heard.
4. Community. As we change our economic focus from the global to the local, communities become more connected, more resilient, and more neighborly. A vibrant local economy supports local businesses and keeps wealth circulating within the community. The layout of the community is designed (or redesigned) for the human scale, allowing people to more easily navigate from one location to another and develop a strong sense of place.
5. Business. Entrepreneurial businesses provide valuable services not just to earn a profit, but to improve social and environmental conditions. As workplaces adopt democratic structures, employees find that they have more opportunities to use their creativity and explore innovative ideas. With a greater sense of purpose driving them, workers feel more content and more energized in their jobs.
6. Cities. Redesigned cities have smaller populations working and living in more compact land areas. Buildings and transportation networks are much more efficient and require less energy. Natural areas and gardens are reintegrated into city landscapes. At the same time, local cooperative enterprises, businesses, and regional trade activities generate good prospects for employment. Revamped urban landscapes provide both improved livability and a smaller ecological footprint.
7. Agriculture. Elimination of the need for constantly increasing food production lightens the impacts people have on the landscape, with less land devoted to crop production. The agricultural sector decentralizes into local systems of production, distribution, and consumption, resulting in fewer large-scale agribusiness operations, lower fuel inputs, less application of chemicals, less reliance on long-distance transportation, and less unnecessary packaging. Consumers of food (all of us!) can expect increased food security, healthier foods, and a stronger connection to farmers and other people who produce and sell food.
8. Nature. Without a continuously growing economy crowding out nature, our lands and waters enter a new era of healing. People enjoy more opportunities for outdoor recreation. Wildlife becomes more abundant, and restored ecosystems are more capable of providing vital services such as climate regulation, food production, and water purification.
9. Energy. Energy conservation becomes a high priority as people seek ways to accomplish their goals while minimizing energy inputs. Societies phase out fossil fuels, and instead favor energy sources that use solar income, such as photovoltaic cells, wind turbines, biofuels, and hydroelectric generators. Businesses and households retrofit existing structures to be more energy-efficient and eliminate machines that consume wasteful amounts of energy, especially items consumed for status.
10. Money. Expectations about money and investing are adjusted to match reality. Ponzi schemes and get-rich-quick dreams blink out of existence, replaced by investments in real wealth that earn modest returns. Investments are used to build low-carbon infrastructure, restore ecosystems, improve social conditions, and develop innovative and useful technologies. We climb out from under the enormous heap of debt as we learn to restrain borrowing within the bounds of savings. As gaps in income and wealth shrink, no one is left behind, and no one becomes obscenely affluent.
These scenes from a steady-state economy depict a society in which people are more attuned to where they live and what they are doing. Living in such an economy would encourage a sort of mindfulness that would incre
ase appreciation for the available bounty of resources. We would participate in the economy not just for a paycheck or because we were supposed to, but because we were striving to achieve positive outcomes for ourselves, our families, our communities, our societies, and the biosphere.
The Case for Starting Construction
The steady-state economy is an idea whose time has come, but even though it has gained a solid core of supporters, it has failed to grab the imagination of the broader public. The consequences of too much economic growth have been recorded in a host of sources, ranging from books to peer-reviewed articles to blogs to videos (although growth isn’t always identified as the culprit). Reams and reams of pages are covered with statistics about biodiversity loss, ecosystem declines, income gaps, unemployment, resource shortages, poverty, and so on. It’s clear that economic growth is no longer an appropriate goal in many countries, and it’s time to try something else.
We’ve attempted to compile a comprehensive set of ideas and policies to clarify how a steady-state economy would work, but we know the job isn’t complete. Even though some parts of the blueprint remain faint, societies should resist the temptation to wait for more details. The current draft contains enough carefully designed features to start construction. Besides, we face a choice between acting now to build a steady-state economy through sensible reforms, or delaying action until our addiction to growth relegates us to a world of depleted resources and reduced ecosystem capacity. The first choice offers the benefits of preventing suffering, preserving ecosystem capacity, and moving toward sustainable and equitable human well-being. Is the second choice really even a choice?
