[Why I took Doughnut Economics[1] to the 2017 ICF Global Summit]
The time for tolerance of misguided creeds is over. That’s an existential issue for politicians searching for economic growth. The relentless pursuit of progress has not suddenly vapourised but its measurement is, at last, being sidelined.
Economists and politicians have known since the 1930’s that GDP is a poor proxy for progress. The conventional metrics do not come anywhere near measuring the value of real activities. But even if GPD was better formulated it misses the point. The purpose of policy should not be some slavish devotion to a metric and particularly not to one so unfit. But arguing for some higher purpose begs the question: without growth are we doomed to decline? Nobody surely votes for making things worse?
Dissatisfaction with GDP growth addiction is deeply rooted. For decades economists have tried different rationales. Could we, please, have Green Growth (more sustainable) or Inclusive Growth (more equitable) or even Humanistic Growth – presumably less inhuman? The rationales for policies to be regenerative (less wasteful) and redistributive (fairer) are well argued and sometimes non-contentious – leastways, perhaps, at some future ‘transitional’ time if not inconveniently right now. These growth-variants may not immediately upset the supposedly free market dogma. But they are still argued in the context of never-ending growth that will somehow ease the pain of eventual readjustment – really?
Take away that prop – declare that we need not overly care about economic growth – and the well-established response is that the sky will fall down. This growth detox is one of the central tenets of Kate Raworth’s unexpected best-seller ‘Doughnut Economics’. Kate is the latest in a long and fine tradition of economic re-thinkers starting in the 1930’s with Simon Kuznets who first defined what was then called Gross National Product. He well understood its shortcomings and mourned its excessively ill-informed but widespread application.
Being Growth Agnostic, as much as it may offend all right thinking dogma-driven hard-liners, is not some denial of economic variability – the course of life rarely runs smooth (in sickness and in health) – but is simply a matter of therapy for the growth-addicted and a reminder that true leadership should aim for some deeper (or higher) purpose like societal safety and wellbeing. And whilst we are in brain reboot mode, can you please stop calling all those investments that happen not to be to your liking, by the derogatory label ‘subsidies’?
There are many reasons for reading Kate Raworth and her illustrious forbears such as Donella Meadows and Manfred Max-Neef (and more recently Lorenzo Fioramonti) but expecting her book to somehow magically reprogramme the deeply embedded dinosaurs of national politics is not one of them; far better to take her inspiration and apply it locally within your own community.
Mayors and civic leaders are desperate for direction every bit as much as they are constrained by top-down austerity. In the search for ‘taking back control’ these community champions can use the doughnut (and other frames) to spark imaginative and enterprising routes to greater public, private and environmental wellbeing. Low flying demands great skill and is risky but it gets stuff done under the radar of the high flyers.
Enough is enough. It really is time to shake off our tolerance of dented and dodgy rulers. We must not rest until we’ve rebuilt our local communities. If that reconstruction of better places turns out to be Growth Agnostic, well so be it.
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[1] Kate Raworth, ‘Doughnut Economics‘: ISBN 9 781847 941374
Groupe Intellex 