Transcript Growth of the economy brings problems

Practical steps to a Manchester where people
thrive without harming the planet.
Three per cent growth for ever is running
into serious constraints. There are
environmental constraints, market
constraints, profitability constraints, spatial
constraints.
David Harvey.
The standard economic model
Economy does not exist in a
vacuum
Not everything is monetised,
and...
diagrams from Oxfam http://tinyurl.com/c9cj9lv
Ecology
Society
Economy
Reality check
Real ‘wealth of nations’:
• Physical
space
• Atmospheric balances
• UV filtering
• Purification of air
• Potable water
• Regulation of water cycle
• Water storage
• Photosynthesis
• Fertile soil
• Vegetative resources
• Pollination
• Mineral resources
• Waste decomposition
• Nutrient recycling
• Stable climate
• Checks & balances
against extremes
• Human labour
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Anualised rate of GDP growth
Post-growth:
has the motor
broken?
UK growth rate
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Growth of the economy brings
problems
It doesn't bring well-being beyond a certain level.
Reliance on GDP growth as the key measure of economic wellbeing is therefore misleading.
Growth means winners and losers – inequality increases.
With growth comes increased material throughputs – 'resources'
are used faster and 'sinks' are overwhelmed.
There is no evidence so far that a growing economy can be dematerialised enough to offset this increase in material
throughputs: sustainable growth is a myth.
Stockport’s Economic
Development Strategy 2012-17
For Stockport to:
“..build on its position as a growth economy in Greater
Manchester, connecting its residents and businesses to more
opportunities, and providing an ideal environment to start,
grow and locate a business.”
Manchester Monitor
“...we enter 2013 with some caution, recognising that
this is likely to be another challenging year and a real
focus is needed on bringing unemployment down. The
need to ensure GM benefits from initiatives such as
Airport City, which will bring long-term sustainable
economic growth, will be more important than ever.”
Manchester Monitor
2.74% predicted GVA growth for Greater
Manchester over next 10 years (now
£47Bn, growing to £61.58Bn).
Where does growth lead?
Leaving the recession
• Plan A, Fiscal Austerity, means more
cuts, punishment of the poor, looting of the
commons and disregard for the
environment.
• Plan B, Phantom Abundance, means
back-to-how-it-was before the banking
crash, or the cuts – back to an inherently
unstable and unsustainable model.
Plan C, Ecological Prosperity means a planned
approach to a society where we can all live a good
life, satisfied with enough, without seeking endless
growth and accumulation, respecting the planetary
limits: Steady State.
Any recovery will need to be a Steady State recovery
that leaves nobody behind, but that knows what
‘enough’ means. Taking seriously both the mitigation
of climate change (through radically decreasing
emissions) and adapting to the climate change that
is already gathering, will help this recovery to
rebalance the economy.
A Steady State Economy is different from a
failed growth economy
• Managed de-growth is not the same as
economic collapse.
• It implies a planned approach with strong
and effective policies.
Steady Local State
• Much of the work on the Steady State
Economy deals with rather abstract ideas
at the national and international levels.
• But it is possible to identify concretely
what a Steady State approach would
mean more locally. And taking these steps
locally can influence policies elsewhere.
What does Steady State mean at a
municipal or regional level?
Dealing with inequality – more equality.
Dealing with globalisation – more localised production
(this means some sectors of the economy will grow
while overall it shrinks and stabilises).
Dealing with money, debt and investments – safe local
savings and investments that also provide fair credit.
Dealing with the measurement problem – better measures
of social, ecological and economic well-being.
Dealing with unnecessary and destructive consumption –
restoring community and lived culture.
What does Steady State mean at a
municipal or regional level? 2
The replacement economy.
Reducing consumption and strengthening
community
Steady State as a Mainstream Decision Aid.
Influencing our context by national and
international lobbying and campaigning.
Recommendations
Equality
Publish data on wage differentials in the workforces of local employers.
Promote an initiative to combat the long hours culture in many of our
employing organisations.
A city sponsored initiative on salary deflation at the higher echelons.
More workers for the same hours: a 10 out 12 in policy.
Re-localisation
Investigate and shorten the supply chains for our foodstuffs and other
necessities of life.
Reduce Manchester’s dependence on Imported Food.
Establish food gardens on public land.
Increase our Energy Self-Sufficiency, based on renewables – and power
down.
Repair workshops / sharing schemes for domestic and business
‘durables’.
Consider options for local re-industrialisation.
Measurement
‘Dashboard of the city’s social, economic and ecological health’ publish it widely.
Attain the widest possible, and growing public understanding and
participation in strategies to secure more of this ‘genuine prosperity.
Recommendations 2
Debt, money, savings and investment
Promote alternatives to financialised credit. Clean up our investments.
Establish a local currency.
Alternative savings vehicles for sustainable developments, services and
amenities: Manchester Green Investment Bond (pump primed with sale of 20%
of the city’s interest in the airport).
Help people escape housing-related debt through sharing.
Establish a Manchester fund for co-operative development.
Replacement Economy
Job creation incentives for SMEs/co-ops etc with green and social products /
services.
Facilitate the use of non-market capital to build the third sector.
Get serious about climate change adaptation to create jobs.
Consumption and culture
Start a conversation in the city about how people view satisfaction with
materialistic lifestyles.
Reduce and counter the propaganda of advertising.
Campaign for the re-taking of social urban space.
Active promotion of sharing.
Obtain accreditation as a ‘slow city’.
Monitor and learn
Map and log the benefits that occur, by sector, to build our understanding of
how Steady State Manchester is working.
Thank you !
http://steadystatemanchester.net
[email protected]
[email protected]