1. Managing without growth
- Author
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Victor, Peter A. and Rosenbluth, Gideon
- Subjects
- *
ECONOMIC development , *ENVIRONMENTAL protection , *POVERTY ,DEVELOPING countries - Abstract
Abstract: There are three main arguments why developed countries should consider managing without growth: 1) continued economic growth worldwide is not an option owing to environmental and resource constraints, and so developed countries should leave room for growth in developing countries where the benefits of growth are evident; 2) in developed countries growth has become uneconomic in the sense that it detracts more from well-being than it adds; and 3) economic growth in developed countries is neither necessary nor sufficient for meeting specific policy objectives such as full employment, no poverty and protection of the environment. This paper explores various growth scenarios for Canada over the medium range to 2020 using LOWGROW, a dynamic simulation model. After describing LOWGROW, a scenario is presented that shows conditions under which the rate of unemployment in Canada could be reduced to historically low levels, poverty eliminated and greenhouse gas emissions reduced to comply with Canada''s commitment under the Kyoto Protocol, without relying on economic growth. This is not to say that zero growth should itself become a policy objective. Rather that the dependence on and defence of economic growth should not be an obstacle to fulfilling more specific welfare enhancing objectives of full employment, eliminating poverty, and protecting the environment. The paper concludes with some policy implications for managing without growth followed by an annex which provides a technical description of LOWGROW. [Copyright &y& Elsevier]
- Published
- 2007
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