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Economies without growth?
It is often said that a country's economy should grow in order to increase prosperity. However, growth measured in terms of GDP can also increase as a result of the clean-up work following a natural disaster. And it says nothing about the state of nature, social cohesion or people's satisfaction.
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Ressource Consumption
Economic growth usually has serious consequences for the environment. The extraction of raw materials, the production, transport and consumption of goods and services generate waste and greenhouse gas emissions and consume other vital resources such as land and water.
Politicians and industry often promote the idea of “green growth”. This refers to a competitive economy that conserves resources and has less impact on the environment. Whether and how this works on a global scale remains to be seen.
Global Justice
Growth is also an important issue in global politics. Rich industrialised countries such as Germany or the US often have limited growth rates of two to three percent. Poorer countries have more catching up to do and can therefore achieve much higher growth rates. In order to reduce global resource consumption, however, the global growth rate would also have to fall. This raises the question of which countries or social groups should cut back.
Happiness and Well-being
More growth does not mean greater satisfaction and quality of life. Many studies show this. Some countries or regions do things differently. Bhutan, for example, measures gross national happiness. It includes indicators such as mental well-being, education and ecological diversity. The German state of Brandenburg has also introduced a regional well-being index to measure quality of life and use it as a compass for state policy.
Steffen Lange, researcher at the Institute for Ecological Economy Research in Siegen, explains why our current economic system is dependent on growth and why green growth presents us with challenges: