The End of Growh

SUBHEAD: The response to the new paradigm will define the future of our species, and of the planet.

By Nafeez Ahmed on 22 December 2014 for -

Image above: Illustration by Lisa Larson Walker for "Utopia Subhead #8". From (

New research suggests that the ongoing global economic crisis is symptomatic of a deeper crisis of industrial civilization’s relationship with nature. The continuation of the crisis, though, does not imply the end of the world – but rather is part of major phase shift to a new form of civilization that could either adapt to post-carbon reality and prosper, or crumble in denial. It is the Great Transition.

We are on the verge of a major tipping point in the way civilization works.

Even as so many global crises are accelerating, a range of interconnected systemic revolutions are converging in a way that could facilitate a transformation of the global economy from one that maximizes material accumulation for the few, to one that caters for the needs and well being of all.

That’s the conclusion of a major new book published as part of the ‘Routledge Studies in Ecological Economics’ series, The Great Transition, by Prof Mauro Bonaiuti, an economist at the University of Turin in Italy.

Bonaiuti’s book applies the tools of complexity science to diagnose the real dynamic and implications of the global economic crisis that most visibly erupted in 2008.

That crisis, Bonaiuti argues, is not simply a part of the cyclical boom and bust process, but is a symptom of a longer “passage of civilization.”

Advanced capitalist societies are in a “phase of declining returns” measured across the period after the Second World War, including GDP growth, energy return on investment (how much energy is put in compared to what we get out), manufacturing productivity, among others.

But compared to these declines, in the same period and on a global scale we have faced near exponential increases in energy consumption, public debt, population growth, greenhouse gas emissions, and species extinctions.

For Bonaiuti, the declines we are seeing are a consequence of the “the interaction between limitations of a biophysical nature (the exhaustion of resources, global warming, etc.) and the increasing complexity of social structures (bureaucratisation, the reduction in the productivity of innovation and in the educational, health and productive systems, etc.).”

The economic crisis is therefore not just about debt, or deregulation, or market volatility or whatever. Fundamentally, the crisis is due to the global economy’s ongoing breaching of the limits of the biosphere.

Ironically, as Bonauiti points out, after a certain point as material accumulation measured by GDP continues, well-being and happiness have not only stopped growing, they are now also in decline as depression and other psychological ailments are proliferating – a phenomenon that mainstream economists are at a loss to explain.

But it begins to make sense when we re-frame the crisis as not simply an economic one, but as a “bio-economic” one, in which exponential material consumption is increasingly destabilizing the biosphere. This environmental ‘overshoot’ explains “the inability on the part of the capitalist system to continue to produce social well-being and to face the ecological question with any efficaciousness.”

Collapse? Or renewal! (or both…?)

Civilization is thus undergoing a huge, momentous ‘phase shift’ to a new era as the current form of global predatory capitalism crumbles beneath the weight of its own mounting unsustainability.

As this process unfolds, it simultaneously opens up a range of scenarios for new forms of society, within which there is an opportunity for “a great transition towards new institutional forms” that could include greater “democratic self-government of communities and their territories.”

Despite the very real disruptions this phase shift entails, many of which have been explored in-depth at Motherboard (the unprecedented spate of global unrest being a major example),the Italian economist is cautiously optimistic about the potential long-term outcomes.

“When the framework changes, as the sciences of complexity teach us, there will be other forms of economic and social organisation more suited to the new situation,” said Bonaiuti.

“In particular, in a context of global crisis, or even stagnant growth, cooperation among decentralized, smaller scale economic organizations, will offer greater chances of success. These organizations can lead the system towards conditions of ecological sustainability, more social equity and, by involving citizens and territories, even increase the level of democracy.”

Bonauiti uses the term ‘degrowth’ to describe this new framework – but degrowth does not simply mean no growth, or even negative growth. It actually entails a new science of ‘post-growth economics’ in which the obsession with measuring material accumulation as the prime signifier of economic health is jettisoned, in which it is recognized that endless growth on a finite planet is simply biophysically impossible, literally a violation of one of the most elementary laws of physics: conservation of energy, and relatedly entropy.

If Bonauiti is right, then we should expect to be seeing more and more signs of this changing framework, and with it, the emergence of potential new forms of economic and social organization that work far better than the old industrial paradigm we take for granted. And that’s exactly what’s happening.

In part 2, I will round up five major ‘revolutions’ that are developing now, which are already undermining the old paradigm, and paving the way for viable alternative approaches: the information revolution, the energy revolution, the food revolution, the finance revolution, and the ethical revolution.

The big shifts constituted by these revolutions are developing disparately, tentatively, and often incoherently – but despite that, they are evolving inexorably, and in coming years will be increasingly difficult to contain and co-opt.

All of them involve an increasing dispersion of power to people and communities, away from traditional centralized hierarchies of control. As they accelerate and begin to interact, the opportunities for transition will also open up.

That’s not to say any of this will happen in a simplistic, easy-peasy manner. Prof Bonauiti identifies four potential scenarios for the future, and one of them involves ‘collapse’, while another leads to ‘resilience’.

The old paradigm, and those who benefit from it the most, will also resist the most, and their resistance and disbelief in the reality of change – and the people’s response to it – will quite literally define the future of our species, and of the planet, in ways that will remain entirely unpredictable.

• Nafeez Ahmed is currently setting up the people-powered independent media platform “Insurge Intelligence: Watchdog Journalism for the Global Commons


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