Administrator’s note: I’m honored to feature on GIM an essay by Herman Daly. Dr. Daly teaches at the School of Public Policy at the University of Maryland. Previously, he was a Senior Economist in the Environment Department at the World Bank where he helped develop policy guidelines pertaining to sustainable development. He is a co-founder of the journal, Ecological Economics, and author of many books including Steady-State Economics, Valuing the Earth, and Beyond Growth. He’s received numerous awards including an Honorary Right Livelihood Award, commonly known as the “Alternative Nobel Prize.”
Dr. Daly has often been called the “founding father of ecological economics.” And rightly so.
The following essay is a preview from his forthcoming book, Ecological Economics and Sustainable Development: Selected Essays of Herman Daly. It appears in the section of the book titled, “Issues with the World Bank.” My thanks to Dr. Daly for his permission to post it here on GIM. — JF
I have a short answer and a long answer.
Short answer: My short answer is “No.”
But suppose some of you think the short answer should be “Yes.” My question to you then would be—After you grow your way to an environmentally sustainable world, then what? Would you then be willing to stop growing? Or would you want to keep on growing? Is it a state of the world, or the process of economic growth, that you want to sustain? I think the World Bank wants to sustain growth—that is, a process, not a state of the world. I would like to sustain that subsystem of the world called the “economy” in a state compatible with human well-being. I contend that the attempt to sustain growth will be inimical to that end.
When the economy grows it does not grow into the void, displacing nothing and incurring no opportunity costs. Rather it grows into the finite, non-growing ecosystem and incurs the opportunity cost of displaced natural capital and ecological services. Beyond some point growth in production and population will begin to increase social and environmental costs faster than it increases production benefits, thereby ushering in an era of uneconomic growth—growth that on balance makes us poorer rather than richer, that increases “illth” faster than wealth, and that is likely to be ecologically unsustainable. There is evidence that the US has already reached such a point.
That is my short answer. But it would be more productive to debate the longer, more nuanced, answer. (more…)