top of page

RE-THINKING MONEY, RELIGION & POLITICS

Sound fun? Join in!

Search
Karen Kuykendall

From Growth Economy to Wellbeing Economy

This post includes an excerpt from an article titled "Toward a Sustainable Wellbeing Economy" by Robert Costanza. You can access the full article here. Originally published in 2018 by The Solutions Journal, we find it still a timely and urgent call to action.


Our current economic systems have become addicted to “growth at all costs”, as measured by Gross Domestic Product (GDP). They assume that GDP growth is synonymous with increasing wellbeing and prosperity.  However this approach has led to growing inequality, an escalating climate crisis, and the depletion of natural and social capital.  Our approach to economics and development needs fundamental transformation.


A global movement is coalescing among a large number of individuals and organizations around the need to shift economies away from a narrow focus on marketed goods and services (i.e. GDP) to one more broadly focused on ‘sustainable wellbeing’ with dignity and fairness for humans and the rest of nature. 


At a meeting in Glasgow, Scotland, in Oct. 2017, a group of governments including Scotland, Costa Rica, Slovenia, and New Zealand committed to creating an organization through which to share good practice in wellbeing policy making and to champion wellbeing as the goal of development. This initiative is supported by a global Wellbeing Economy Alliance that brings together the many organizations, networks, academics, businesses, NGOs, and individuals that are already working on elements of the new economy.



Wellbeing is the outcome of a convergence of factors, including good human mental and physical health, greater equity and fairness, good social relationships, and a flourishing natural environment.


Only a holistic approach to prosperity can therefore achieve and sustain wellbeing. A system of economic governance aimed at promoting wellbeing will therefore need to account for all of the impacts (both positive and negative) of economic activity. This includes valuing goods and services derived from a healthy society (social capital) and a thriving biosphere (natural capital).


True freedom and success depend on a world where we all prosper and flourish. Institutions serve humanity best when they foster our individual dignity while enhancing our interconnectedness. To thrive, all institutions (including businesses) and society must pivot toward a new purpose: shared wellbeing on a healthy planet.


To achieve a wellbeing economy, a major transformation of our world view, society and economy are needed to:

  • Stay within planetary biophysical boundaries – a sustainable size of the economy within our ecological life support system.

  • Meet all fundamental human needs, including food, shelter, dignity, respect, education, health, security, voice, and purpose, among others.

  • Create and maintain a fair distribution of resources, income, and wealth – within and between nations, current and future generations of humans and other species.

  • Have an efficient allocation of resources, including common natural and social capital assets, to allow inclusive prosperity, human development and flourishing. A wellbeing economy recognizes that happiness, meaning, and thriving depend on far more than material consumption.

  • Create governance systems that are fair, responsive, just and accountable.


There are many individuals and groups who have espoused versions of these basic ideas for decades. They may have used different approaches and different languages, but all share common approaches and, above all, a common goal.  Perhaps more important are the many individuals and groups already putting the ideas of a wellbeing economy in practice.  These include millions of activists and social entrepreneurs of various types from around the world.


The wellbeing economy model specifically strengthens social and natural capital while generating human development. A ‘virtuous circle’ can be created whereby value that is measured in terms of wellbeing feeds the improvements in the human and natural capitals upon which the creation of value depends. The negative impact on the environment will be greatly reduced as the ‘circular economy’ model of resource recycling and systems for up-cycling are integrated into mainstream business models. The ecosystem services that the GDP model considers free of charge will become fully valued components of society’s infrastructure, supported by new common asset governance institutions that connect people more closely to natural ecosystems. Economic ‘growth’ in this model lies not in the exploitation of natural, social, and human resources but in improving the quality and effectiveness of human-to-human and human-to-ecosystem interactions, supported by appropriate enabling technologies.

____________________________________________


In the US, we have tended to see business and environmental interests as adversarial: when one wins, the other loses. How transformative it would be if we started viewing these interests in the light of mutuality and interdependence! After all, the object lesson is clear: relatively new to the game, human-created businesses operate in an ancient God-created environment, so why would we think we can't take the environment into our business considerations? This view requires a new perspective for many people, but one that is necessary if we are to have both a healthy economy and a healthy planet.


A wellbeing economy is a long-term view economy. The big economic issues that are pressing on us at the moment--stagnant wages, rising costs, climate change--did not happen quickly, and their solutions will take time. It can be hard to focus on the long term when the current short term is painful, though, so a plan must be constructed to address basic needs while transitioning to a better economic place for everyone.


This kind of transition will take courage, innovation, and wisdom from our political and business leaders. It will take disinterestedness and sacrifice from those who could gain in the short term. Though daunting, these goals are not impossible. There are already many leaders around the world who are focused on moving toward a model of mutuality, as we teach here and here, because they know that a prosperous future for everyone depends on it.


For those of us without our hands directly on the levers of commercial or political power, we still have the power of our vote and our purchases. If it is the responsibility of leadership to implement these changes, then it is our responsibility to support those leaders and companies that have this vision. Let us have the courage and insight to do so and to keep doing so. In the process you will be securing your own future, as well as preparing a better way for your children and future generations!



Tired of "profit is evil" vs "maximize my profit by exploiting others," as if those are the only two options?




Buy now, or get a free sample here >>


"This book merits close, sustained attention as a compelling move beyond both careless thinking and easy ideology."—Walter Brueggemann, Columbia Theological Seminary


"Better Capitalism is a sincere search for a better world."—Cato Institute




Comentarios


bottom of page