"GREEN GROWTH": A NEW ECONOMIC THEORY FOR A POST-MATERIALIST SOCIETY

It is almost a paradox that the last book published by J.K.Galbraith, one of the most famous American economic scholars of the 20th century, known for his progressive views, was so critical about the “capitalist” system. What is even more interesting is that he considered himself “The Economics of Innocent Fraud” (2004) his best book. How is it possible that a man like Galbraith had become in his nineties one of the most intelligent and radical representatives of the “anti-capitalist” generation?

In his last work he explained his critical views regarding economic growth, particularly making an attack on the use of Gross Domestic Product (GDP) as a measure of development and human advance. He insisted there was a general confusion between society progress and economic development.

Galbraith criticised the assumption that continually increasing material production of goods and services is a sign of economic and societal health. But one must say that his view was not totally new. In fact he had made the same point in “The Affluent Society” back  in 1958, the first important example of scepticism about the value of economic growth. No, he had not lost his mind. He was still very lucid. Because of his theory Galbraith is sometimes considered one of the first “post-materialists”, the first economic author to give high priority to other values such as education, health, democracy, or the protection of environment.

The theory of post-materialism suggests that once individuals or societies become affluent or “rich”,  the mere production of goods and services (materialism) does not satisfy them anymore as they start to give high priority to other values based on humanism such as individual improvement, personal freedom, citizen input in government decisions, and/or maintaining a clean and healthy environment (post-materialism). For Galbraith it was a necessary logic conclusion that rich societies needed a completely new economic theory.

A new theory for economic development that serves to promote growth and to protect the environment…. Is it possible? At least it is not an easy exercise because, up to now, there has been an antagonism between economic growth theories and environmental protection ones. Environmentalism was rather negative, convinced that improving the environment had to be done through stopping economic growth.We could only have one or the other, we were told, as it was impossible for societies to pursue both goals. But has it to be necessarily so? 

Lets examine those premises under a new perspective. On one hand, economic development is not necessarily negative. We cannot reject “ per se” economic  growth, which allows people to live wealthier and healthier lives, and also fosters broader cultural and scientific development. On the other hand, the empirical evidence shows that once countries start getting wealthy, their environments improve. GDP is not perfect, but growth creates the wealth necessary to pay for cleaner environments. In fact, rich countries can indeed have a better environment as they can afford to do so.

And these are precisely the pillars of the new theory called “positive environmentalism” that finally offers the solution to solve this apparent antagonism. It is a pro-technology, pro-progress view of protecting the world's environment. For this new movement, it is simply not true to say that protecting the environment will inevitably lead to a reduction in our standard of living or quality of life. In fact, it's the other way round…and this is what some of them call “green growth”, a sustainable environmental development for the well-being of all.

Yes, Galbraith was always right. A new economic theory is needed for rich “post-materialist” societies where people give high priority to other non-economic values such as the protection of the environment. He died in April 2006 indicating the path to follow but leaving to us the responsibility to find the theory. Let´s all listen to his final message. A new “post-materialist” society has to be built where we will rethink economic growth from a social, technological and environmental perspective. GDP alone will never measure human progress. Environmental protection, economic development and humanist values can and must work together.

The “green growth” theory is only the beginning of this necessary evolution. We will have to find the new models for our “affluent” societies. We will have to redefine the meaning of “growth”, “progress” and “civilisation”. Of course this is a huge challenge. Of course it will require us to change the way we think and live. But let’s be brave when looking into our 21st century. Let´s not forget the unlimited power of innovation and technology and the benefits they can bring for our planet and all mankind. Let´s think of infinite exciting possibilities that may seem only distant dreams today. Tomorrow´s world will be radically different from today´s world. But this other world is certainly possible.

Athugasemdir

[Lárus Vilhjálmsson, 1.4.2007 kl. 22:49]

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