BOOM

Trending Searches

    SUPPORT
    BOOM

    Trending News

      • Fact Check 
        • Fast Check
        • Politics
        • Business
        • Entertainment
        • Social
        • Sports
        • World
      • Law
      • Explainers
      • News 
        • All News
      • Decode 
        • Impact
        • Scamcheck
        • Life
        • Voices
      • Media Buddhi 
        • Digital Buddhi
        • Senior Citizens
        • Videos
      • Web Stories
      • BOOM Research
      • BOOM Labs
      • Deepfake Tracker
      • Videos 
        • Facts Neeti
      • Home-icon
        Home
      • About Us-icon
        About Us
      • Authors-icon
        Authors
      • Team-icon
        Team
      • Careers-icon
        Careers
      • Internship-icon
        Internship
      • Contact Us-icon
        Contact Us
      • Methodology-icon
        Methodology
      • Correction Policy-icon
        Correction Policy
      • Non-Partnership Policy-icon
        Non-Partnership Policy
      • Cookie Policy-icon
        Cookie Policy
      • Grievance Redressal-icon
        Grievance Redressal
      • Republishing Guidelines-icon
        Republishing Guidelines
      • Fact Check-icon
        Fact Check
        Fast Check
        Politics
        Business
        Entertainment
        Social
        Sports
        World
      • Law-icon
        Law
      • Explainers-icon
        Explainers
      • News-icon
        News
        All News
      • Decode-icon
        Decode
        Impact
        Scamcheck
        Life
        Voices
      • Media Buddhi-icon
        Media Buddhi
        Digital Buddhi
        Senior Citizens
        Videos
      • Web Stories-icon
        Web Stories
      • BOOM Research-icon
        BOOM Research
      • BOOM Labs-icon
        BOOM Labs
      • Deepfake Tracker-icon
        Deepfake Tracker
      • Videos-icon
        Videos
        Facts Neeti
      Trending Tags
      TRENDING
      • #Operation Sindoor
      • #Pahalgam Terror Attack
      • #Narendra Modi
      • #Rahul Gandhi
      • #Waqf Amendment Bill
      • #Arvind Kejriwal
      • #Deepfake
      • #Artificial Intelligence
      • Home
      • Development
      • To Counter Populist Policies The...
      Development

      To Counter Populist Policies The World Needs To Ditch Its Obsession With GDP

      A post-growth strategy would result in putting people and their ecosystems at the centre of development policy instead of a focus on GDP.

      By - Lorenzo Fioramonti |
      Published -  1 March 2017 12:29 PM IST
    • Boomlive

      To Counter Populist Policies The World Needs To Ditch Its Obsession With GDP

      The election of Donald Trump may have come as a cold shower, but it was to be expected in a world that’s increasingly frustrated with a profit obsessed globalised economy. Not only have jobs been lost and inequalities increased, but the exploitation of natural resources and the conflicts it fuels, have triggered a massive exodus of refugees and economic migrants. These developments are threatening to tear entire societies apart. Wealth has amassed at the top, in ever fewer hands, with a bottom of the pyramid fighting for the crumbs.

      Against this backdrop, Trump’s promise of protectionism has found appeal among many people marginalised by neoliberal globalisation. The paradox is that Trump himself is a staunch capitalist, who has massively benefited from the globalised economy he claims to oppose.

      While the popular sentiments that gave rise to Trump are understandable, the solutions offered are damaging to the very people whose interests they claim to promote. Yes, we need to challenge economic globalisation, but not to build walls and segregate societies. To the contrary, we need more integration and cooperation. We need a system that levels the playing field between the big corporations benefiting from globalisation and the many small businesses and workers who have lost out. In a word, we need new economic system that pursues social well-being rather than growth.

      Why we need to move beyond growth

      In my new book, The World After GDP: Economics, Politics and International Relations in the Post-Growth Era, I argue that this shift is only possible if we recognise that our obsession with global economic growth is the source of many tensions societies face.

      Our model of growth, represented by the gross domestic product (GDP), has portrayed globalised markets as the driving force of prosperity. It’s also pushed for increased production at all costs. As a result, industrial value chains have shifted to the Far East, with corporations taking advantage of the cheaper local workforce. This has triggered resentment among workers elsewhere and generated a massive ecological degradation in these allegedly ‘emerging economies’.

      Moreover, the reason why Wall Street has become so powerful is because growth makes us believe that financial markets are best at allocating resources and creating wealth. The 2008 collapse was a wake-up call. But apparently it wasn’t loud enough if we consider that both former US President Barack Obama and Trump have filled their governments with investment bankers.

      The quest for growth has destroyed informal economic systems, which are a critical safety net for many, and replaced them with formal market activities, which benefit a few. It’s created incentives for economies of scale leading to the supremacy of big companies at the expense of small businesses. It also favoured competition against cooperation, has portrayed the exploitation of nature as progress and reduced citizens to mere consumers.

      We have seen this madness playing out in Africa too where the ‘Africa rising’ mantra has been used as an excuse to accelerate the exploitation of people and nature while presenting it as a successful development story.

      The promise of a post-GDP world

      The good news is that the international community is ready to shift to a post-GDP idea of prosperity. I believe here is a crucial opportunity to turn the global economy upside down.

      Many calls have been made by institutions, from the UN to the World Economic Forum and the Organisation for Economic Cooperation and Development for a shift to a new definition of prosperity. This points to a focus on inclusivity and sustainability, rewarding countries and companies that increase well-being and punishing those that undermine it (often because they are hooked on growth). And the Sustainable Development Goals may offer the much needed entry point to change the rules of the game.

      Indeed, when the social and environmental costs of growth are taken into account, a completely different picture of development emerges. Take India and China, the two rising stars of the growth ideology. They are expected to spend hundreds of billions of dollars annually to address the crises generated by pollution, contamination and social inequality. These costs are conveniently disregarded by GDP, but they are real and hefty.

      At the global level, many large industries are anything but efficient or even profitable. A UN-sponsored study shows that some of the largest multinational corporations, from the fossil fuel sector to mining and intensive food production, are responsible for more damage to society and the environment than the revenues they generate. They may be good for growth (mostly of their pockets) but not for well-being.

      With a post GDP framework, it becomes evident that global trade bears more costs than gains because of its impact on the environment and society. We should rather pursue regional trade systems – within countries and across borders – empowering communities to build equitable and sustainable local economies. Renewable energy becomes a no brainer as profitable, cheap and empowering. Oil and coal are exposed as obviously inefficient, expensive and damaging.

      A post-growth strategy would result in putting people and their ecosystems at the centre of development policy. This would help the building of a different economy from the bottom up. The outcomes would include creating decent jobs, facilitating regional integration and cross border partnerships among small businesses and supporting families and communities. By moving beyond growth, we can address many people’s demand for change. And we can escape the anachronistic and dangerously simplistic solutions represented by Trump.

      This article was republished from theconversation.com.

      Tags

      businessConsumerDevelopmenteconomyGDPglobal tradeglobalizationInequalityInvestmentMNCneoliberalObamaprotectionismRefugeesrenewable energysustainableWealthwell being#DonaldTrump
      Read Full Article
      Next Story
      Our website is made possible by displaying online advertisements to our visitors.
      Please consider supporting us by disabling your ad blocker. Please reload after ad blocker is disabled.
      X

      Subscribe to BOOM Newsletters

      👉 No spam, no paywall — but verified insights.

      Please enter a Email Address
      Subscribe for free!

      Stay Ahead of Misinformation!

      Please enter a Email Address
      Subscribe Now🛡️ 100% Privacy Protected | No Spam, Just Facts
      By subscribing, you agree with the Terms & conditions and Privacy Policy connected to the offer

      Thank you for subscribing!

      You’re now part of the BOOM community.

      Or, Subscribe to receive latest news via email
      Subscribed Successfully...
      Copy HTMLHTML is copied!
      There's no data to copy!