pascal.vangriethuysen@graduateinstitute.ch

Pascal van Griethuysen Graduate Institute of Internationaland Development StudiesGeneva, Switzerland

Implementing Degrowth :Evolutionary Economic Perspectives

Second International Conference on Economic Degrowth for Ecological Sustainability and Social Equity

Barcelona – 28.03.2010

pascal.vangriethuysen@graduateinstitute.ch

Outline

Issues & approach

Property & capitalist expansion

Eco-social repercussions & Degrowth

Implementing Degrowth

Obstacles

Conclusions

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Conceptualisaing Degrowth

ISSUES & APPROACH

understanding degrowth

understanding growth

multiple dimensions & temporalities(eco-biophysical, sociocultural, institutional & monetary levels)

integrative & differentiated approach

evolutionary economic perspective

property as constitutive institution of capitalism

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Capitalist Economy

PROPERTY INSTITUTION

property titles (material & immaterial yields)

credit relation & money creation

capitalisation & self-expansion

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Monetary capitalisationCREDIT RELATION

Creditor Debtor

financing(money creation)

payback+ interest

limited time

solvability

profitability

time pressure

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Property Economy

Condition :

CAPITALIST SELF EXPANSION

Propertymaterial & immaterial assets

Financed activities

moneycreation

circular & cumulative property self-expansion

monetaryreturn

monetaryreturn

monetary value of engaged property

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END : property value = monetary growth

MEANS ?

physical growth ( spatial expansion, biotic resources overexploitation, industrialisation, mineral resources depletion )

commercial strategies ( lay-off, delocalisation, marketing, advertising )

institutional strategies ( commoditisation, enclosure, market creation; selective deregulation & liberalisation )

profit driven innovations ( technical, commercial, financial & institutional )

property capitalisation & concentration ( acquisitions & fusions )

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Property Economy

ABS’ EXPANSION (USB$)

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Property expansion

ECO-SOCIAL CONSEQUENCES

resources depletion & surexploitation

ecological degradation

widening inequities (exclusion, power concentration)

eco-social vicious dynamics

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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

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Implementing Degrowth

GENERAL APPROACH

subordinate property expansion to eco-social considerations

multiple dimensions & temporalities

integrated strategy & articulated policies

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Implementing Degrowth

INTEGRATED MULTI-LEVEL STRATEGY

PropertyFinanced activities

moneycreation

monetaryreturn

scoping

property

confining expansion

regulatingcapitalisation

orientinginvestments

allocating

returns

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Implementing Degrowth

SCOPING PROPERTY

legislation & conditional exclusiveness (eco-social obligations, exclusiveness limited in scope & time)

excluding domains from exclusiveness( world level to avoid dumping )

alternative ownership arrangements( individual, common and state property/possession )

alternative partnerships and networks(individual/private, common/collective and state combination)

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Implementing Degrowth

REGULATING CAPITALISATION

regulation of 1st order capitalisation( credits, stock-option creation )

sound banking’s 3 pillars( debtor’s solvency, debtor’s collateral, creditor’s reserve )

ban of 2nd order capitalisation ?( derivatives, securitization & leveraging )

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Implementing Degrowth

ORIENTING INVESTMENTS

criteria for responsible investment

responsible management of mineral resources

sustainable use of biotic resources

locally anchored activities

technological diversity promotion

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Implementing Degrowth

ALLOCATING RETURNS

wealth created trough self-organised capitalisation & oriented investments

institutional & fiscal modalities for equitable distribution

intra- & inter-generational levels

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Implementing Degrowth

CONFINING PROPERTY EXPANSION

sustainable development corridor

eco-social norms & standards(ecological maxima & social minima)

eco-social multi-level monitoring

adaptable, evolutionary norms

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Degrowth transition

MAIN OBSTACLES

vested interests

power relations

property economy’s specific path

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propertyexpansion

institutional framework

influence

reinforcement

INSTITUTIONAL LOCK IN

Property expansion path

capitalist ever more compatible institutional arrangements

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CLIMATE REGIME

capitalist initial compatibility (UNFCCC)

marginal environmental objective (Kyoto)

capitalist compatible arrangements (market

creation, resources’ enclosure & commoditisation, capitalisation)

alternatives’ eviction (contraction/convergence)

governance lock-in (Copenhagen)

Capitalist institutional arrangements

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property-based capitalist rationality & growth

eco-social repercussions : need for transition

degrowth & eco-social rationale

integrated strategy of articulated policies

multi-level institutional regime

capitalist path dependency & lock-in

Conclusion