Beyond the Green Economy
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“The “industrial state” has been replaced by a predator state, a coalition of relentless opponents of the very idea of a “public interest”, whose purpose is to master the state structure in order to empower a high plutocracy with nothing more than vile and rapacious goals.” - From L. Randall Wray’s review of “The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too,” by James Galbraith. Wray is Professor of Economics, and Senior Scholar at the Levy Economics Institute. “…In Adam Smith’s words, “civil government, so far as it is instituted for the security of property, is in reality instituted for the defense of the rich against the poor, or of those who have some property against those who have none at all.”- Smith never suggested that government should not intervene to set and enforce minimum social, health, worker safety, and environmental standards in the common interest or to protect the poor and nature from the rich. Given that most governments of his day were monarchies, the possibility probably never occurred to him…” “…Neva Goodwin, ecological economist, head of the Global Development and Environment Institute at Tufts University, and an advocate of cost internalization, puts it bluntly. “Power is largely what externalities are about. What’s the point of having power, if you can’t use it to externalize your costs–to make them fall on someone else?” - Excerpts from “When Corporations Rule the World,” by David C. Korten. “Competition and the thirst for profit without limits of the capitalist system are destroying the planet. Under Capitalism we are not human beings but consumers. Under Capitalism Mother Earth does not exist, instead there are raw materials. Capitalism is the source of the asymmetries and imbalances in the world. It generates luxury, ostentation and waste for a few, while millions in the world die from hunger in the world. In the hands of capitalism everything becomes a commodity: the water, the soil, the human genome, the ancestral cultures, justice, ethics, death … and life itself. Everything, absolutely everything, can be bought and sold and under capitalism. And even “climate change” itself has become a business.”- Excerpt from “20 Ways to Save Mother Earth & Prevent Environmental Disaster,” Evo Morales, President of Bolivia, writing in the International Journal of Socialist Renewal |
The latest world economic crisis is not just caused by: Greed and corruption at all levels of society; Irresponsible sub-prime lending; Lack of regulation of credit derivatives; Domination of governments by corporate interests; Excessive energy consumption; Unfair taxation policies; Excessive debt; Unfair global corporate competitive practices; Uninformed electorates; Destruction of local economies; and Social and economic inequality. Most of these are not so much causes as symptoms.
At the root of capitalism is the notion is that the world has infinite resources. That no human actions can fundamentally alter the environment and affect the planet’s health. That natural resources- air water, oceans, land, animals and plants are unlimited and are only negligibly affected by human actions.
This notion of infinite resources is fundamentally flawed. All of our collective and individual actions are interrelated. The crises we face now and in the future are global in scope. Air, water, earth and sky are not owned by individual countries- they are global interconnected resources with universal rights of ownership.
Fundamentally, global corporations, governments and individuals must be held responsible and accountable for the costs required to address and correct the damage they cause to the world’s ecosystems. Conversely, actions that renew and sustain the environment should be rewarded and incentivized. New policies must be shaped that renew the environment rather than destroy it.
Whether through taxation, a new form of global environmental currency, etc., every action that adversely affects plant and animal diversity- affects the drinkable water supply and quality of air; affects the ability of the earth to sustain long term agriculture; destroys old growth forests, etc. must come at a price proportionate to the damage caused. I will repeat- the full price of environmental destruction must be factored into the economic decisions of corporations, governments and individuals. When this takes place, actions that today are considered profitable will become extremely unprofitable and impossible to undertake.
Corporations, governments and individuals must be forced to think strategically about the best use of limited, finite resources and begin to act responsibly, factoring in human and environmental rights into their decision making and planning. Environmental costs can be determined by looking at the nature of the damage, its permanence, its effect on human health, climate change, etc. Human costs- lost lives, destroyed communities and cultures, economic and political dislocation, illegal imprisonment- these are only a few of the human costs of irresponsible corporate, military and governmental power.
New international bodies must be formed that can create the currency and regulating mechanisms to enforce full recognition of these costs and basic rights throughout the world economy. Fundamental to this recognition must be a respect for life and the interrelatedness of all life.
Inherent in this almost exclusive pursuit of profit is a fundamental disrespect for life. The notion of nature as the survival of the fittest is fundamentally false. While this belief may be at the root of capitalism- in nature there are cooperative systems that have evolved over thousands and millions of years to preserve and perpetuate diversity. Each form of life, from the smallest to the largest- serves a key niche in preserving the balance of the whole.
If collective global action does not take place, then environmental disasters will grow exponentially over the next 100 years- year by year- decade by decade. Once great economies will collapse and/or become even more militaristic in an effort to control remaining global resources. Economic inequalities will become more glaring and potentially world population will decline due to disaster and war- not self-regulation.
There is nothing more costly to life on Earth than war. Yet war could very well be the consequence of a failure to address global environmental issues. Restoration of environmental and human justice requires the abolition of war and a genuine respect for human life.
This is not a rich versus poor, developed versus less developed country issue. For example, if the United States decides to engage in more offshore drilling it should pay a steep economic price for the environmental impact. If Brazil or Ecuador chooses to preserve its rain forests for the preservation of world climate and indigenous life and wisdom, it should be rewarded. In fact, some of the world’s poorest communities engage in some of the most sustainable environmental practices- and should be rewarded accordingly- not forced to adopt Western inspired exploitative practices that undermine local communities and deplete natural resources.
Also, an equitable and universal system will not result in one country or corporation paying a disproportionate share of the cost. Rather it will share the burden equally and shift the incentive from short term profits to environmental (aka human) sustainability throughout the world’s economic system. Currently we have a system that rewards the almost exclusive pursuit of profit, power and exploitation. Regulation, at best, is inadequate and routinely circumvented over time. We need to restructure the system, so that rewards shift to the protection of human and environmental rights. With this change in incentives there will be a need for less, not more regulation. There will be less, not more economic dislocation.
Some may feel that these ideas are unrealistic- however the necessity of our times dictates solutions on a global scale. The alternative is global disaster. Some may feel that these ideas would erode national sovereignty. However, this has already occurred. Global corporations care very little about individual nations and their workers- they will exploit wherever they have the opportunity and can gain temporary advantage. They already effectively control the world’s governments and militaries. Still others may believe these recommendations require full nationalization of industry or would otherwise be unenforceable. However, there are benefits to retaining competitiveness and innovation in the system- two potential benefits of non-state ownership. Smaller companies in particular represent great potential sources of innovation. Again, some may feel that imposing environmental sustainability requirements will restrict economic growth. This may occur in the short run, however in the long term there would be more sustainable growth. Also, nothing precludes a phase in, where it is responsible.
No economic system is perfect and completely fair- however the current one is not merely less than perfect- it is unsustainable and self destructive. - Lowell Greenberg, 12/7/2008; See also: Calif. adopts sweeping global warming plan, 12/11/2008