Features
It’s Time to Bust the Myth That Endless Economic Growth Is Good for Us!
“Growth for the sake of growth is the ideology of the cancer cell.” — Edward Abbey
by Selvam Canagaratna
Robert R. Raymond, writing in Truthout magazine on May 21 noted that in order to maintain the endless expansion and infinite growth that capitalist economies require, our economy demands ever increasing levels of extraction, production and consumption. In fact, economists and politicians generally believe that , meaning that the economy needs to double every 20 years — that’s twice as much of everything 20 years from NOW — and then twice as much as that 20 years later!
It’s not hard to see how this kind of exponential, infinite growth is impossible on a finite planet — and it’s no surprise that we’re seeing ecosystems collapse. However, it’s not just an environmental concern. In his latest book, Post Growth: Life after Capitalism, ecological economist Tim Jackson explores how the ideology of growth permeates our minds and our societal institutions in insidious ways which end up making us miserable.
Truthout
spoke with Jackson about why this ideology is so pernicious, why it is holding us back from truly flourishing as a species, and what a post-growth world might look like.
Raymond:
To start, I’m wondering if you could lay out the main arguments you write about in your book.
Tim Jackson:
The main argument in the book is that a world after growth and after capitalism could be a richer place. In some sense, both growth and capitalism, although they’ve contributed to progress, have also swindled us. They’ve sold us a false dream about what progress means and even about what human satisfaction means. And in locking us into an iron cage of consumerism, they’ve prevented us from seeing the depths of the human spirit and the possibilities for human fulfillment and for human progress.
One of the main points I wanted to make is the idea of limits — the idea that growth in the conventional sense is limited and the planet is limited — and turn that idea on its head and say that you [can] think of limits not as a constraint, not as a prison that keeps all of our possibilities limited to the amount of materials or the amount of money that we have or the possibilities for expansion of the economy, but actually as an idea of a doorway, a gateway to a different world.
We should think of limits as teaching us, not about what is bounded, but what is unbounded. Those unbounded parts of our lives, those unbounded possibilities, our endless creativity, our ability always to find places where we can dedicate our energy to human progress, to social connection, to relationship, and to a sense of meaning and purpose. That’s a core idea in the book, that beyond limits lies this expanse where there’s an even deeper fulfillment to be found.
In the book, you describe how our leaders have developed an “allegiance to the great God of Growth.” Can you describe why capitalism is reliant on growth? Is it an essential part of the system? In practical terms, what are some of the consequences of our reliance on infinite growth?
You can think of capitalism broadly as a system that privileges the idea of selfish profit-seeking behaviour at the core of the organization of our economy. And that profit-seeking behaviour is supposed to lead to efficiency — and sometimes does lead to efficiency, and sometimes even benefits society — but it works better in one set of activities than it works in another. It works quite well when you’re talking about the efficiency with which we use materials to build products and then expand our markets to sell them to other people. And the difficulty is that once you’re on that particular path, you’re almost immediately locked into a process that says, “Well, we get more and more efficient and we expand further and we invest our proceeds into technologies which make us more efficient again.”
And you find yourself very quickly in a process in which expansion becomes integral to the system itself.
Where this goes wrong is — apart from the planetary implications of accumulating more and more stuff and building more and more things and consuming more and more products — there’s an inbuilt inequality there because the few people that are able to accumulate, because they own capital resources, can make themselves much richer. But it doesn’t necessarily always trickle down to the poorest in society. And in fact, in the last 40 or 50 years, we’ve actually seen the opposite.
The rich got much richer and the poorest people in society found their wages stagnant, their livelihoods insecure, their work precarious — particularly in advanced economies.
How has COVID informed your understanding of our growth-based economy, and what has it revealed about the shortcomings of our current economic system?
One of the most striking lessons of the pandemic has been that it’s exactly those people, those precarious livelihoods, who turned out to be the most critical when it came to protecting our lives in the face of the coronavirus. That is, the care workers, the nurses, the teachers, the frontline workers, the people who delivered goods and services when we couldn’t get out, the people who cleaned … all of our homes and offices, the people whose livelihoods had been squeezed by. We forgot about the people who just sustained us, the people who nurtured us. So that economy of care was the one that had gone missing over several decades because of the way that capitalism has this locked-in drive towards expansion and profiteering and productivity.
That to me is a deep structural problem in the way that we’ve organized our economies. And we can think about taxes to redistribute the wealth that’s too concentrated, we can think about mechanisms or technologies to change the impact on the climate. But right at the heart of that is this mechanism that systematically demotes the importance of some of the most socially valuable people in our society. And I think that’s the biggest challenge that we have to face as we come out of the pandemic, and as we think about life after the pandemic, and as we think about life after capitalism.
What would a post-growth economy look like, for us in the West, but also for the Global South? There are some on the left who advocate for “growth agnosticism,” which is a stance that acknowledges that some parts of the world still require some form of economic growth. What are your thoughts on that?
I do think it’s important to be a little bit differentiated — there’s no one-size-fits-all vision. And I also happen to believe, and I think the evidence really supports this, that in the poorest places in the world some income growth is essential. When you look at the relationship between income and life expectancy, say, what you find is that as you go from having virtually nothing to around about $15,000 per capita, you get these vast increases in life expectancy and educational participation, you get a vast reduction in infant mortality and maternal morbidity. And even things like happiness increase very quickly from zero income to around about that $15,000 mark.
That’s real evidence that investing in and increasing incomes in the poorest countries is a good thing — there are places where incomes need to rise. And then you look at the data past that $15,000 per capita point across countries and you find a really bizarre phenomenon, which is that the prosperity gains, the gain in life expectancy, for example, the gain in terms of lower infant mortality, those gains really start to tail off, and in some cases, they even go into reverse. So, you get these perverse situations where you have very rich economies like the UK or the US with life expectancies which are lower than in some poorer countries. It points us in the direction of the kind of initiatives that Cuba, Costa Rica or Chile have taken. This data really tells us something critical. It tells us that prosperity — quality of life, life that we have to take and the places where they need to be taken.
It goes together with this idea, which is another core idea in the book, about balance. When you have a deficiency of something, then having a bit more of that makes sense. Growth makes sense. When you have an excess of something, having more of it actually takes you into a worse position. And the problem with capitalism is we tend not to see where that point of balance lies, we tend to miss it because it’s continually driving forward, continually expanding, continually lionizing the idea of more — when sometimes less is what’s needed.
We’ve been talking about a lot of really big concepts — a lot of interesting ideas of where we could go as a society and a lot of the challenges and difficulties that exist right now in the way that we’ve organized our economic systems. But to zoom in a little bit, what are some of the practical paths forward in order to begin moving towards that balance you’re talking about?
In my last book, Prosperity Without Growth, I presented a threefold distillation of this. First, establish the limits, because it’s the limits that tell you how you can afford to live. So we must make clear what the limits are: like the emission pathways that will lead us to a safe place in relation to climate, the limits of how much oil or gas we can afford to dig out of the ground, the limits around material implications of our lives, or how much can we afford to put into the ocean. We have to make those limits part of our accounting processes so that we can see the natural frame within which we live.
And then there is my second main theme which is to fix the economics, because the economics are profoundly broken in exactly that sense that we were talking about before. That, for example, the most important people in society are very poorly rewarded and mistreated by capitalism. And so, the economics that says that a financial sector worker deserves 1,000 times the income level of someone who is saving lives on the front line of the pandemic, is broken.
So, putting in place mechanisms that guarantee the basic services that we need in society, like health and education, putting in mechanisms that pay people decent salaries, putting in place mechanisms that perhaps provide, as we did in some countries during the pandemic, a kind of basic income that allows people to actually undertake care work in the home — unpaid work, that contributes massively to society. There are so many different ways of reconfiguring our economic incentives and they have to play a part in how we make this transition.
And then my third strand is to change the social logic. We live in a logic that dysfunctionally encourages us into endless anxiety in order to promote the sense that we are only complete if we go out shopping, if we consume, and that our only satisfactions are to be had through that role in society. It’s a poor understanding of our psychology. We deliberately inculcated it — we’ve encouraged that view of ourselves in order to have the people that we need within the system to [continually] go out shopping so we can continue to make stuff so that we can keep the economy going. [A new] social logic demands that we think differently about who we are; it demands that we reframe our idea of ourselves.
There’s a huge potential lying there waiting for us to lead more satisfying lives, lives of action and creativity and engagement and social concern that are deeply fulfilling and that offer us this space where we are no longer trashing the planet for the sake of the next latest material craze. So, in other words, I’m passionate about this idea that beyond capitalism is a richer world, a more fulfilling world — as well as one that is less damaging to the planet and to other people.
by Dr Gotabhya Ranasinghe
Senior Consultant Cardiologist
National Hospital Sri Lanka
When we sought a meeting with Hon Dr. Ramesh Pathirana, Minister of Health, he graciously cleared his busy schedule to accommodate us. Renowned for his attentive listening and deep understanding, Minister Pathirana is dedicated to advancing the health sector. His openness and transparency exemplify the qualities of an exemplary politician and minister.
Dr. Palitha Mahipala, the current Health Secretary, demonstrates both commendable enthusiasm and unwavering support. This combination of attributes makes him a highly compatible colleague for the esteemed Minister of Health.
Our discussion centered on a project that has been in the works for the past 30 years, one that no other minister had managed to advance.
Minister Pathirana, however, recognized the project’s significance and its potential to revolutionize care for heart patients.
The project involves the construction of a state-of-the-art facility at the premises of the National Hospital Colombo. The project’s location within the premises of the National Hospital underscores its importance and relevance to the healthcare infrastructure of the nation.
This facility will include a cardiology building and a tertiary care center, equipped with the latest technology to handle and treat all types of heart-related conditions and surgeries.
Securing funding was a major milestone for this initiative. Minister Pathirana successfully obtained approval for a $40 billion loan from the Asian Development Bank. With the funding in place, the foundation stone is scheduled to be laid in September this year, and construction will begin in January 2025.
This project guarantees a consistent and uninterrupted supply of stents and related medications for heart patients. As a result, patients will have timely access to essential medical supplies during their treatment and recovery. By securing these critical resources, the project aims to enhance patient outcomes, minimize treatment delays, and maintain the highest standards of cardiac care.
Upon its fruition, this monumental building will serve as a beacon of hope and healing, symbolizing the unwavering dedication to improving patient outcomes and fostering a healthier society.We anticipate a future marked by significant progress and positive outcomes in Sri Lanka’s cardiovascular treatment landscape within the foreseeable timeframe.
by Fr. Emmanuel Fernando, OMI
Jesuit Fr. Aloysius Pieris (affectionately called Fr. Aloy) celebrated his 90th birthday on April 9, 2024 and I, as the editor of our Oblate Journal, THE MISSIONARY OBLATE had gone to press by that time. Immediately I decided to publish an article, appreciating the untiring selfless services he continues to offer for inter-Faith dialogue, the renewal of the Catholic Church, his concern for the poor and the suffering Sri Lankan masses and to me, the present writer.
It was in 1988, when I was appointed Director of the Oblate Scholastics at Ampitiya by the then Oblate Provincial Fr. Anselm Silva, that I came to know Fr. Aloy more closely. Knowing well his expertise in matters spiritual, theological, Indological and pastoral, and with the collaborative spirit of my companion-formators, our Oblate Scholastics were sent to Tulana, the Research and Encounter Centre, Kelaniya, of which he is the Founder-Director, for ‘exposure-programmes’ on matters spiritual, biblical, theological and pastoral. Some of these dimensions according to my view and that of my companion-formators, were not available at the National Seminary, Ampitiya.
Ever since that time, our Oblate formators/ accompaniers at the Oblate Scholasticate, Ampitiya , have continued to send our Oblate Scholastics to Tulana Centre for deepening their insights and convictions regarding matters needed to serve the people in today’s context. Fr. Aloy also had tried very enthusiastically with the Oblate team headed by Frs. Oswald Firth and Clement Waidyasekara to begin a Theologate, directed by the Religious Congregations in Sri Lanka, for the contextual formation/ accompaniment of their members. It should very well be a desired goal of the Leaders / Provincials of the Religious Congregations.
Besides being a formator/accompanier at the Oblate Scholasticate, I was entrusted also with the task of editing and publishing our Oblate journal, ‘The Missionary Oblate’. To maintain the quality of the journal I continue to depend on Fr. Aloy for his thought-provoking and stimulating articles on Biblical Spirituality, Biblical Theology and Ecclesiology. I am very grateful to him for his generous assistance. Of late, his writings on renewal of the Church, initiated by Pope St. John XX111 and continued by Pope Francis through the Synodal path, published in our Oblate journal, enable our readers to focus their attention also on the needed renewal in the Catholic Church in Sri Lanka. Fr. Aloy appreciated very much the Synodal path adopted by the Jesuit Pope Francis for the renewal of the Church, rooted very much on prayerful discernment. In my Religious and presbyteral life, Fr.Aloy continues to be my spiritual animator / guide and ongoing formator / acccompanier.
Fr. Aloysius Pieris, BA Hons (Lond), LPh (SHC, India), STL (PFT, Naples), PhD (SLU/VC), ThD (Tilburg), D.Ltt (KU), has been one of the eminent Asian theologians well recognized internationally and one who has lectured and held visiting chairs in many universities both in the West and in the East. Many members of Religious Congregations from Asian countries have benefited from his lectures and guidance in the East Asian Pastoral Institute (EAPI) in Manila, Philippines. He had been a Theologian consulted by the Federation of Asian Bishops’ Conferences for many years. During his professorship at the Gregorian University in Rome, he was called to be a member of a special group of advisers on other religions consulted by Pope Paul VI.
Fr. Aloy is the author of more than 30 books and well over 500 Research Papers. Some of his books and articles have been translated and published in several countries. Among those books, one can find the following: 1) The Genesis of an Asian Theology of Liberation (An Autobiographical Excursus on the Art of Theologising in Asia, 2) An Asian Theology of Liberation, 3) Providential Timeliness of Vatican 11 (a long-overdue halt to a scandalous millennium, 4) Give Vatican 11 a chance, 5) Leadership in the Church, 6) Relishing our faith in working for justice (Themes for study and discussion), 7) A Message meant mainly, not exclusively for Jesuits (Background information necessary for helping Francis renew the Church), 8) Lent in Lanka (Reflections and Resolutions, 9) Love meets wisdom (A Christian Experience of Buddhism, 10) Fire and Water 11) God’s Reign for God’s poor, 12) Our Unhiddden Agenda (How we Jesuits work, pray and form our men). He is also the Editor of two journals, Vagdevi, Journal of Religious Reflection and Dialogue, New Series.
Fr. Aloy has a BA in Pali and Sanskrit from the University of London and a Ph.D in Buddhist Philosophy from the University of Sri Lankan, Vidyodaya Campus. On Nov. 23, 2019, he was awarded the prestigious honorary Doctorate of Literature (D.Litt) by the Chancellor of the University of Kelaniya, the Most Venerable Welamitiyawe Dharmakirthi Sri Kusala Dhamma Thera.
Fr. Aloy continues to be a promoter of Gospel values and virtues. Justice as a constitutive dimension of love and social concern for the downtrodden masses are very much noted in his life and work. He had very much appreciated the commitment of the late Fr. Joseph (Joe) Fernando, the National Director of the Social and Economic Centre (SEDEC) for the poor.
In Sri Lanka, a few religious Congregations – the Good Shepherd Sisters, the Christian Brothers, the Marist Brothers and the Oblates – have invited him to animate their members especially during their Provincial Congresses, Chapters and International Conferences. The mainline Christian Churches also have sought his advice and followed his seminars. I, for one, regret very much, that the Sri Lankan authorities of the Catholic Church –today’s Hierarchy—- have not sought Fr.
Aloy’s expertise for the renewal of the Catholic Church in Sri Lanka and thus have not benefited from the immense store of wisdom and insight that he can offer to our local Church while the Sri Lankan bishops who governed the Catholic church in the immediate aftermath of the Second Vatican Council (Edmund Fernando OMI, Anthony de Saram, Leo Nanayakkara OSB, Frank Marcus Fernando, Paul Perera,) visited him and consulted him on many matters. Among the Tamil Bishops, Bishop Rayappu Joseph was keeping close contact with him and Bishop J. Deogupillai hosted him and his team visiting him after the horrible Black July massacre of Tamils.
Sri Lanka-Singapore Free Trade Agreement
By Gomi Senadhira
senadhiragomi@gmail.com
“You might tell fairy tales, but the progress of a country cannot be achieved through such narratives. A country cannot be developed by making false promises. The country moved backward because of the electoral promises made by political parties throughout time. We have witnessed that the ultimate result of this is the country becoming bankrupt. Unfortunately, many segments of the population have not come to realize this yet.” – President Ranil Wickremesinghe, 2024 Budget speech
Any Sri Lankan would agree with the above words of President Wickremesinghe on the false promises our politicians and officials make and the fairy tales they narrate which bankrupted this country. So, to understand this, let’s look at one such fairy tale with lots of false promises; Ranil Wickremesinghe’s greatest achievement in the area of international trade and investment promotion during the Yahapalana period, Sri Lanka-Singapore Free Trade Agreement (SLSFTA).
It is appropriate and timely to do it now as Finance Minister Wickremesinghe has just presented to parliament a bill on the National Policy on Economic Transformation which includes the establishment of an Office for International Trade and the Sri Lanka Institute of Economics and International Trade.
Was SLSFTA a “Cleverly negotiated Free Trade Agreement” as stated by the (former) Minister of Development Strategies and International Trade Malik Samarawickrama during the Parliamentary Debate on the SLSFTA in July 2018, or a colossal blunder covered up with lies, false promises, and fairy tales? After SLSFTA was signed there were a number of fairy tales published on this agreement by the Ministry of Development Strategies and International, Institute of Policy Studies, and others.
However, for this article, I would like to limit my comments to the speech by Minister Samarawickrama during the Parliamentary Debate, and the two most important areas in the agreement which were covered up with lies, fairy tales, and false promises, namely: revenue loss for Sri Lanka and Investment from Singapore. On the other important area, “Waste products dumping” I do not want to comment here as I have written extensively on the issue.
1. The revenue loss
During the Parliamentary Debate in July 2018, Minister Samarawickrama stated “…. let me reiterate that this FTA with Singapore has been very cleverly negotiated by us…. The liberalisation programme under this FTA has been carefully designed to have the least impact on domestic industry and revenue collection. We have included all revenue sensitive items in the negative list of items which will not be subject to removal of tariff. Therefore, 97.8% revenue from Customs duty is protected. Our tariff liberalisation will take place over a period of 12-15 years! In fact, the revenue earned through tariffs on goods imported from Singapore last year was Rs. 35 billion.
The revenue loss for over the next 15 years due to the FTA is only Rs. 733 million– which when annualised, on average, is just Rs. 51 million. That is just 0.14% per year! So anyone who claims the Singapore FTA causes revenue loss to the Government cannot do basic arithmetic! Mr. Speaker, in conclusion, I call on my fellow members of this House – don’t mislead the public with baseless criticism that is not grounded in facts. Don’t look at petty politics and use these issues for your own political survival.”
I was surprised to read the minister’s speech because an article published in January 2018 in “The Straits Times“, based on information released by the Singaporean Negotiators stated, “…. With the FTA, tariff savings for Singapore exports are estimated to hit $10 million annually“.
As the annual tariff savings (that is the revenue loss for Sri Lanka) calculated by the Singaporean Negotiators, Singaporean $ 10 million (Sri Lankan rupees 1,200 million in 2018) was way above the rupees’ 733 million revenue loss for 15 years estimated by the Sri Lankan negotiators, it was clear to any observer that one of the parties to the agreement had not done the basic arithmetic!
Six years later, according to a report published by “The Morning” newspaper, speaking at the Committee on Public Finance (COPF) on 7th May 2024, Mr Samarawickrama’s chief trade negotiator K.J. Weerasinghehad had admitted “…. that forecasted revenue loss for the Government of Sri Lanka through the Singapore FTA is Rs. 450 million in 2023 and Rs. 1.3 billion in 2024.”
If these numbers are correct, as tariff liberalisation under the SLSFTA has just started, we will pass Rs 2 billion very soon. Then, the question is how Sri Lanka’s trade negotiators made such a colossal blunder. Didn’t they do their basic arithmetic? If they didn’t know how to do basic arithmetic they should have at least done their basic readings. For example, the headline of the article published in The Straits Times in January 2018 was “Singapore, Sri Lanka sign FTA, annual savings of $10m expected”.
Anyway, as Sri Lanka’s chief negotiator reiterated at the COPF meeting that “…. since 99% of the tariffs in Singapore have zero rates of duty, Sri Lanka has agreed on 80% tariff liberalisation over a period of 15 years while expecting Singapore investments to address the imbalance in trade,” let’s turn towards investment.
Investment from Singapore
In July 2018, speaking during the Parliamentary Debate on the FTA this is what Minister Malik Samarawickrama stated on investment from Singapore, “Already, thanks to this FTA, in just the past two-and-a-half months since the agreement came into effect we have received a proposal from Singapore for investment amounting to $ 14.8 billion in an oil refinery for export of petroleum products. In addition, we have proposals for a steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million), sugar refinery ($ 200 million). This adds up to more than $ 16.05 billion in the pipeline on these projects alone.
And all of these projects will create thousands of more jobs for our people. In principle approval has already been granted by the BOI and the investors are awaiting the release of land the environmental approvals to commence the project.
I request the Opposition and those with vested interests to change their narrow-minded thinking and join us to develop our country. We must always look at what is best for the whole community, not just the few who may oppose. We owe it to our people to courageously take decisions that will change their lives for the better.”
According to the media report I quoted earlier, speaking at the Committee on Public Finance (COPF) Chief Negotiator Weerasinghe has admitted that Sri Lanka was not happy with overall Singapore investments that have come in the past few years in return for the trade liberalisation under the Singapore-Sri Lanka Free Trade Agreement. He has added that between 2021 and 2023 the total investment from Singapore had been around $162 million!
What happened to those projects worth $16 billion negotiated, thanks to the SLSFTA, in just the two-and-a-half months after the agreement came into effect and approved by the BOI? I do not know about the steel manufacturing plant for exports ($ 1 billion investment), flour milling plant ($ 50 million) and sugar refinery ($ 200 million).
However, story of the multibillion-dollar investment in the Petroleum Refinery unfolded in a manner that would qualify it as the best fairy tale with false promises presented by our politicians and the officials, prior to 2019 elections.
Though many Sri Lankans got to know, through the media which repeatedly highlighted a plethora of issues surrounding the project and the questionable credentials of the Singaporean investor, the construction work on the Mirrijiwela Oil Refinery along with the cement factory began on the24th of March 2019 with a bang and Minister Ranil Wickremesinghe and his ministers along with the foreign and local dignitaries laid the foundation stones.
That was few months before the 2019 Presidential elections. Inaugurating the construction work Prime Minister Ranil Wickremesinghe said the projects will create thousands of job opportunities in the area and surrounding districts.
The oil refinery, which was to be built over 200 acres of land, with the capacity to refine 200,000 barrels of crude oil per day, was to generate US$7 billion of exports and create 1,500 direct and 3,000 indirect jobs. The construction of the refinery was to be completed in 44 months. Four years later, in August 2023 the Cabinet of Ministers approved the proposal presented by President Ranil Wickremesinghe to cancel the agreement with the investors of the refinery as the project has not been implemented! Can they explain to the country how much money was wasted to produce that fairy tale?
It is obvious that the President, ministers, and officials had made huge blunders and had deliberately misled the public and the parliament on the revenue loss and potential investment from SLSFTA with fairy tales and false promises.
As the president himself said, a country cannot be developed by making false promises or with fairy tales and these false promises and fairy tales had bankrupted the country. “Unfortunately, many segments of the population have not come to realize this yet”.
(The writer, a specialist and an activist on trade and development issues . )
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