Sustainable Futures

Sustainable Futures
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Long before the pandemic, economies across the world were in trouble, with growth slowing across the board. This downturn coincided with growing inequality and social exclusion. Rising political dissatisfaction with ruling elites fuelled the rise of populism. Add to this the alarming environmental emergency and few can deny we live in a time of multiple sustainability crises. While this conclusion can lead to despair, in this broad-ranging book Raphael Kaplinsky, a leading development policy analyst, argues that the future is not necessarily bleak. Interrogating the causes and nature of the systemic crises we are living through, he shows how the challenges which we now face mirror previous historical epochs, in which dominant ‘techno-economic’ paradigms flourish, mature and run into crisis. In each case, decisive action is required to move to a more economically and socially sustainable world. In our time, we are witnessing the exhaustion of the Mass Production paradigm. How we herald and manage the transition to the next paradigm – that of Information and Communications Technologies – will determine our capacity to build a more prosperous, equitable and environmentally sustainable world. This book sets out an integrated agenda for action by multiple stakeholders to achieve this end.

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Raphael Kaplinsky. Sustainable Futures

Table of Contents

List of Tables

List of Illustrations

Guide

Pages

Praise

Sustainable Futures. An Agenda for Action

Copyright Page

Dedication

Figures

Tables

Preface

Acknowledgements

Notes

1 A Fork in the Road

2 The Rise and Fall of the Mass Production Economy

2.1 The Rise and Fall of Economic Growth, 1950–2018

2.2 What Accounts for the Fall in the Rate of Economic Growth?

Was it a consequence of a shortage of labour?

What about the contribution of investment to the growth slowdown?

And what about the productivity of investment?

2.3 Neo-liberalism and the Decline in Growth, Investment and Productivity

Free trade and the retreat from Industrial Policy – increasing imbalances between countries

The crisis in macroeconomic policy – matching demand with supply

Sustaining demand through Quantitative Easing

Growing financialization fuelled short-termism and dulled innovation

2.4 Can the Mass Production Paradigm Be Reinvigorated?

The Great Recession of 2007–2018 – the sticking plaster wears off

Debt continues to spiral

Volatility and fragility in the financial sector threaten the likelihood of a new stock market crash

Disruption to global supply chains

2.5 So What Does the Future Hold?

Notes

3 The Bumpy Ride to Social Decay

3.1 The Rise and Rise of Inequality

Changing patterns in the distribution of wealth

Changing patterns in the distribution of income

3.2 The Startling Growth of ‘Absolute Poverty’

3.3 Growing Inequality and Poverty Undermine Welfare and Social Solidarity

3.4 Neo-liberal Austerity Policies and the Power of the Plutocracy Caused Growing Inequality and Absolute Poverty

The contribution of neo-liberal austerity policies to rising inequality and poverty

The plutocracy promoted and legitimized austerity policies

3.5 The Fear of Migration Has Been Used to Fuel Populism

3.6 The Erosion of Liberal Democracy and the Rise of Populism Disrupt the Potential for Sustainable Growth

Notes

4 The Collapse of Environmental Sustainability

4.1 From the Dawn of Settled Agriculture to the Great Acceleration

4.2 The Transition to the Anthropocene – Take, Make, Use and Waste

‘Taking’ from the biosphere: the example of the energy vector

‘Making’ with what is ‘Taken’ – are we using the earth’s resources more efficiently?

Consumption: ‘Using’ what is ‘Made’

‘Waste’, in and after ‘Use’

4.3 It All Adds Up to a Crisis in Environmental Sustainability

Notes

5 Mass Production Runs Out of Steam

5.1 Learning from History – Successive Techno-Economic Paradigms since the Industrial Revolution. Growth surges and techno-economic paradigms

Learning from history

5.2 The Development, Deployment and Atrophy of the Mass Production Paradigm

The ‘Big Bang’ in Mass Production was followed by speculative frenzy, a financial crisis and the Great Depression

The deployment of Mass Production and the post-war Golden Age

Maturity deferred: the globalization of Mass Production

Complementary policy changes in low- and middle-income countries

5.3 Economic and Social Sustainability during the Mass Production Paradigm

The synergistic close fit between economic and social sustainability in the Golden Age

The erosion of synergy between economic and social sustainability after the Golden Age

5.4 The Crisis in Environmental Sustainability during the Mass Production Paradigm

5.5 Mass Production: The Balance Sheet

Notes

6 Information and Communication Technologies: The Motor of the New Techno-Economic Paradigm

6.1 The Emergence of the New Heartland Technology

6.2 Digital Logic – the Brains of the System

6.3 The Evolution of ICTs

Data storage and communication

Computer-integrated and flexible production systems

The Internet of Things

Big Data and Artificial Intelligence

6.4 Beyond Mass Production

ICTs provide the capacity to revive productivity growth

ICTs provide the capacity for decentralized production, and thus for bringing residence, production and consumption closer together

ICTs can provide the capacity to customize products to meet individual needs

ICTs can provide the capacity for shared, rather than individualized, consumption, and for repairable rather than throwaway products

ICTs can enhance the capacity for greener production systems, and for the development of renewable energy

ICTs provide for peer-to-peer communication that enhances civil society

6.5 Not Just Roses, Also Weeds in the Garden

Notes

7 Transformative Change in Practice

7.1 Mobile Telephones Transform the Financial Sector and Facilitate Economic and Social Inclusion

Mobile phones have promoted financial inclusion and renewable energy in Kenya

Social inclusion through access to renewable energy

Mobile telephony and techno-economic paradigms

7.2 Renewable Energy, Large Dams and Hydroelectric Power

Box 7.1Negative Impact of Large Dams

The impact of large hydro in the Zambesi River basin

Large dams also support irrigation

Is there an alternative to large-dam hydroelectricity?

Large hydro, renewables and techno-economic paradigms

7.3 Precision Farming and Robots in Agriculture

The extension of mass production in mechanized farming

ICTs, robotics and machine-learning can transform mechanized farming

Precision farming and techno-economic paradigms

7.4 Three Case-Studies – The Balance Sheet

Notes

8 What’s To Be Done?

8.1 The What – Visioning a More Sustainable Future

A more sustainable environment

A more sustainable economy

A more sustainable society

8.2 The How – What Actions Will Deliver a More Sustainable World?

Regulating and changing behaviour in the financial sector

Reducing the concentration of individual and corporate power

Box 8.1Market Dominance by the FAAMGs (Facebook, Apple, Amazon, Microsoft and Google)

A Smart Green New Deal

Incentivizing changes in behaviour

Infrastructure to support the Circular Economy

Innovation to support the Green New Deal

Strengthening global and local governance

Promoting global development

8.3 The Elephant in the Room – Who Will Drive the Transition to a Sustainable World?

Notes

9 Who Will Do It? Making Change Happen

9.1 Entrepreneurship: Turning Fantasy into Fact

9.2 The Private Sector Provides the Motive Power, the State is at the Steering Wheel (and Sometimes Pays for the Petrol)

Beyond the private sector

9.3 Building Coalitions for Change

9.4 Change Is Cumulative

9.5 How to Jump Over Walls

Synergistic interventions

Governments must act decisively and with vision

Confronting reactionary power bases

9.6 Sequencing and Priorities: The Two-Shot Stimulus to a Paradigm Change and the Rebuilding of a Sustainable World

The trigger for change

Notes

Index

POLITY END USER LICENSE AGREEMENT

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‘Faced with what some describe as extinction-level threats, Kaplinsky dares to say this is no time to despair. With his considerable expertise as a developmental economist, he shows that trying to tick off each problem as it comes along is doomed to failure. Part history, part manifesto, Sustainable Futures calls for an integrated approach which brings together the resources of government and the power of the people. Those who want to avoid the mistakes of the past and re-make our future should read this book.’

George Alagiah, BBC Journalist and Author

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8.2 Total UK tax receipts, 2018–2019 (£bn)

Source: data from OECD

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