What is Planned Degrowth and why is it so relevant now?

What is the economic theory behind degrowth, and why is it relevant right now?

A radical economic theory called degrowth was developed in the 1970s. To use fewer of the world's diminishing resources, it generally refers to contracting rather than expanding economies.

The Degrowth Debate

Detractors of degrowth claim that economic growth has given the world everything, including indoor plumbing and cancer treatments. Degrowth, according to its proponents, doesn't entail "living in caves with candles," but living a little more simply. How can we save the environment? Some economists contend that drastically reducing our global resource use is the only viable solution. This is a fundamental tenet of the degrowth hypothesis, a political and economic theory that is gaining popularity as concern over climate change increases. But is it practical?

Describe degrowth.

Degrowth is a term used to describe economies that are shrinking rather than growing, allowing us to use less energy and natural resources while putting welfare above profit. Degrowth policies aim to assist economies in becoming more sustainable, which will be advantageous for their populace, the environment, and the planet.

According to the website Economics Help, effective degrowth measures can include buying fewer stuff, producing your own food, and repurposing vacant homes rather than constructing new ones.

According to the website Degrowth.info, the Austrian-French social philosopher André Gorz first used this word in 1972. Degrowth as a movement began to gain traction in the early 2000s, according to the media outlet openDemocracy. Serge Latouche, a French economist, is one of the leading proponents of modern degrowth. He contends that society's existing model of economic growth is unsustainable.

Why is degrowth important?

Our World in Data shows that the 17th and 18th centuries was when society began to experience economic progress. At that point, technical advancement began to fuel rising wealth. Since then, economic growth and expansion have been the main objectives of government initiatives.

The degrowth discussion has picked up steam as people's awareness of climate change has increased. The argument makes the case that if economic expansion remains the primary objective, there will be no chance of keeping global warming to 1.5 degrees.

Scientists argue that it is no accident that human-caused global warming began in the 1830s, at the height of the first industrial revolution in history. In essence, the answer is to abandon the presumption that growth is positive.

According to The Conversation, one of the goals of degrowthers is to abolish the practice of using GDP as a gauge of economic development. GDP calculates the total amount of products and services produced in an economy.

What do professionals have to say?

The degrowth theory has a lot of detractors. The news and opinion website Vox believes that economic expansion is what has brought the world "cancer treatments, neonatal intensive care units, smallpox vaccines, and insulin." The list goes on and includes freedom from poverty, indoor plumbing, electricity, and longer life spans.

One of Vox's arguments against degrowth is the fact that many nations have decreased their emissions while increasing GDP. Utilizing technology like renewable energy, they have achieved this. Another counterargument is that it is unrealistic for affluent nations to scale down to the same level while poor countries progress "up to a certain level of prosperity" and then stop.

Inconveniently, developing middle-income nations like India, China, and Indonesia will produce the majority of the world's carbon emissions in the future decades rather than developed nations like the United States.

Supporters of degrowth also have strong cases.

Sam Alexander, a proponent of degrowth and research fellow at the University of Melbourne in Australia's Melbourne Sustainable Society Institute, is quoted in The Conversation. According to him, degrowth "doesn't mean we're going to be living in caves with candles," he insists. Instead, it may include residents of wealthy nations altering their diets, moving into smaller homes, and taking fewer road trips.

Degrowth, according to researcher at the University of London Jason Hickel, "is important to make clear that it is not about reducing GDP, but rather about reducing [energy and resource] throughput."

In contrast, openDemocracy notes that "a different kind of economic structure is needed for an ecologically constrained world" regardless of the method.