THE CRISIS: AN OPPORTUNITY TO OVERHAUL THE ECONOMIC MODEL

CristinaNARBONA, ambassadrice du gouvernement espagnol auprès de l'OCDE, ancienne ministre de l’Environnement espagnol

The current crisis offers a unique occasion to review from a new approach the economic model and, in particular, the relationship between economy and ecology.

We have seen the emergence of the dire economic, social and environmental consequences of a system which privileges personal profit over the general interest, and greed and wastefulness over responsibility and prudence. Thus, an economic and cultural paradigm based on the myth of boundless abundance is sinking.

This crisis must be tackled urgently, but by understanding its deep roots and not yielding to the temptation of tending only to the more serious symptoms. All the analyses point to the subordination of the real economy to a financial economy that generated astronomical profits for a tiny minority of the world population, and promoted excessive consumption and indebtedness; while concurrently social inequalities and the systematic destruction of the ecosystems escalated. The lack of regulation and insufficient public oversight favoured this process. Public authorities tolerated speculation and tax avoidance, which run alongside pollution and the exhaustion of natural resources. All in the name of a type of economic growth that in no way increased global well-being, but rather increasingly threatens it for future generations.

For too long environmental demands have been considered incompatible with economic growth, and in turn with job creation and social progress. The reality is that the economy has never been 'autonomous' from ecology: all the economic processes are interdependent with ecological processes. The consequences of having ignored this reality have become tragically evident today.

Since the mid-20th century there has been increasing scientific knowledge on the risks of ecological deterioration of our planet created by our economic model. Since the 90s there has been mounting evidence that global warming is the fallout of the overuse of fossil fuels and massive deforestation, two of the 'conditions' for economic growth.

As stated in the Brundtland Report (1987), "As a system approaches ecological limits, inequalities sharpen". Climate change, as any other environmental impact of our economic model, is above all a huge ethical problem, since those who suffer more greatly from the decline of the ecosystems are not only those who are the least responsible for it, but also those who benefited the least from the global economic growth.

Strong political leadership is needed to go beyond the described economic paradigm. In fact, the biggest current political challenge is leading the transition towards a more equitable economy that duly respects the environment and reinforces democracy: an economy that produces longer lasting well-being for more persons; an economy based on a new approach to the concept of efficacy, beyond the one measured in monetary terms, focused on answering more social needs with less resources and generating less pollution; an economy that imitates the natural processes that guarantee the maintenance of life, diversification, closed loops, and symbiosis in the long-term.

Overcoming the present downturn calls for a paradigm shift which begins with accountability and the recognition of the right to a dignified life for all the citizens of the planet, both those living today and those who will live in it tomorrow.

In summary, the present crisis should be seen as a manifestation of the lack of economic, environmental and social sustainability of our present economic model. It should be understood that in a long term perspective the economy is fully dependent on ecology and J. Genereux wrote that the “economic laws” are “man made laws”, reflecting human priorities and institutions, whereas “natural laws”, be they from biology or chemistry, cannot be circumvented by human action without entailing results which may even become irreversible. Therefore, to get out of this crisis ecology must lay down conditions, such as social justice, goals, and economic rationale the way to proceed.