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Implementing Degrowth; Evolutionary Economic Perspectives


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Implementing Degrowth; Evolutionary Economic Perspectives

  1. 1. Pascal van Griethuysen Graduate Institute of International and Development Studies Geneva, Switzerland Implementing Degrowth : Evolutionary Economic Perspectives Second International Conference on Economic Degrowth for Ecological Sustainability and Social Equity Barcelona – 28.03.2010
  2. 2. Outline <ul><li>Issues & approach </li></ul><ul><li>Property & capitalist expansion </li></ul><ul><li>Eco-social repercussions & Degrowth </li></ul><ul><li>Implementing Degrowth </li></ul><ul><li>Obstacles </li></ul><ul><li>Conclusions </li></ul>
  3. 3. Conceptualisaing Degrowth ISSUES & APPROACH <ul><li>understanding degrowth </li></ul><ul><li>understanding growth </li></ul><ul><li>multiple dimensions & temporalities (eco-biophysical, sociocultural, institutional & monetary levels) </li></ul><ul><li>integrative & differentiated approach </li></ul><ul><li>evolutionary economic perspective </li></ul><ul><li>property as constitutive institution of capitalism </li></ul>
  4. 4. Capitalist Economy PROPERTY INSTITUTION <ul><li>property titles (material & immaterial yields) </li></ul><ul><li>credit relation & money creation </li></ul><ul><li>capitalisation & self-expansion </li></ul>
  5. 5. Monetary capitalisation CREDIT RELATION solvability profitability time pressure Creditor Debtor financing (money creation) payback + interest limited time
  6. 6. Property Economy Condition : CAPITALIST SELF EXPANSION Property material & immaterial assets Financed activities money creation <ul><li>circular & cumulative property self-expansion </li></ul>monetary return monetary return  monetary value of engaged property
  7. 7. END :  property value = monetary growth MEANS ? <ul><li>physical growth ( spatial expansion, biotic resources overexploitation, industrialisation, mineral resources depletion ) </li></ul><ul><li>commercial strategies ( lay-off, delocalisation, marketing, advertising ) </li></ul><ul><li>institutional strategies ( commoditisation, enclosure, market creation; selective deregulation & liberalisation ) </li></ul><ul><li>profit driven innovations ( technical, commercial, financial & institutional ) </li></ul><ul><li>property capitalisation & concentration ( acquisitions & fusions ) </li></ul>
  8. 8. Property Economy ABS’ EXPANSION (USB$)
  9. 9. Property expansion ECO-SOCIAL CONSEQUENCES <ul><li>resources depletion & surexploitation </li></ul><ul><li>ecological degradation </li></ul><ul><li>widening inequities (exclusion, power concentration) </li></ul><ul><li>eco-social vicious dynamics </li></ul>
  10. 10. The Degrowth transformation A HIERARCHY INVERSION property expansion eco-social considerations subordinated to economic capitalist rationality Economic rationality sustainable development economic activities subordinated to eco-social considerations Eco-social rationale Degrowth
  11. 11. Implementing Degrowth GENERAL APPROACH <ul><li>subordinate property expansion to eco-social considerations </li></ul><ul><li>multiple dimensions & temporalities </li></ul><ul><li>integrated strategy & articulated policies </li></ul>
  12. 12. Implementing Degrowth INTEGRATED MULTI-LEVEL STRATEGY Property Financed activities money creation monetary return scoping property confining expansion regulating capitalisation orienting investments allocating returns
  13. 13. Implementing Degrowth SCOPING PROPERTY <ul><li>legislation & conditional exclusiveness (eco-social obligations, exclusiveness limited in scope & time) </li></ul><ul><li>excluding domains from exclusiveness ( world level to avoid dumping ) </li></ul><ul><li>alternative ownership arrangements ( individual, common and state property/possession ) </li></ul><ul><li>alternative partnerships and networks (individual/private, common/collective and state combination) </li></ul>
  14. 14. Implementing Degrowth REGULATING CAPITALISATION <ul><li>regulation of 1 st order capitalisation ( credits, stock-option creation ) </li></ul><ul><li>sound banking’s 3 pillars ( debtor’s solvency, debtor’s collateral, creditor’s reserve ) </li></ul><ul><li>ban of 2 nd order capitalisation ? ( derivatives, securitization & leveraging ) </li></ul>
  15. 15. Implementing Degrowth ORIENTING INVESTMENTS <ul><li>criteria for responsible investment </li></ul><ul><li>responsible management of mineral resources </li></ul><ul><li>sustainable use of biotic resources </li></ul><ul><li>locally anchored activities </li></ul><ul><li>technological diversity promotion </li></ul>
  16. 16. Implementing Degrowth ALLOCATING RETURNS <ul><li>wealth created trough self-organised capitalisation & oriented investments </li></ul><ul><li>institutional & fiscal modalities for equitable distribution </li></ul><ul><li>intra- & inter-generational levels </li></ul>
  17. 17. Implementing Degrowth CONFINING PROPERTY EXPANSION <ul><li>sustainable development corridor </li></ul><ul><li>eco-social norms & standards (ecological maxima & social minima) </li></ul><ul><li>eco-social multi-level monitoring </li></ul><ul><li>adaptable, evolutionary norms </li></ul>
  18. 18. Degrowth transition MAIN OBSTACLES <ul><li>vested interests </li></ul><ul><li>power relations </li></ul><ul><li>property economy’s specific path </li></ul>
  19. 19. property expansion institutional framework influence reinforcement INSTITUTIONAL LOCK IN Property expansion path capitalist ever more compatible institutional arrangements
  20. 20. CLIMATE REGIME <ul><li>capitalist initial compatibility (UNFCCC) </li></ul><ul><li>marginal environmental objective (Kyoto) </li></ul><ul><li>capitalist compatible arrangements (market creation, resources’ enclosure & commoditisation, capitalisation) </li></ul><ul><li>alternatives’ eviction (contraction/convergence) </li></ul><ul><li>governance lock-in (Copenhagen) </li></ul>Capitalist institutional arrangements
  21. 21. <ul><li>property-based capitalist rationality & growth </li></ul><ul><li>eco-social repercussions : need for transition </li></ul><ul><li>degrowth & eco-social rationale </li></ul><ul><li>integrated strategy of articulated policies </li></ul><ul><li>multi-level institutional regime </li></ul><ul><li>capitalist path dependency & lock-in </li></ul>Conclusion