Economic disparity and inequalities have increased exponentially over the last couple of decades. Just over the course of 2018, billionaires' wealth increased by 12%, whereas the wealth of the poorest 50% of the global population decreased by 11%. Underpinning this situation is the long-touted mantra that economic growth will end up benefitting everyone by trickling down to the poorest. Well, it doesn't. Despite the evidence that this is a myth, political leaders across the globe consistently and constantly chase economic growth in all policies.
Very recently, the positively surprising title of the Vice-President-designate, Valdis Dombrovskis, whose mandate calls on him to create "An Economy that Works for People" seemed to respond to increasing concerns about our current economic model. There would appear to be a recognition that a social market economy and social fairness need to go hand-in-hand with prosperity. However, the constant mention of growth (as green, inclusive, sustainable, or any combination thereof) in the Mission Letters of Commissioners-designate Dombrovskis and Gentiloni, as well as during their Hearings, did not reassure me. As long as economic growth is perceived as an end rather than as something that may or may not result from pursuing greater prosperity for all, we will continue to do great harm to the planet and will be unable to reduce significantly the huge inequalities in the world.
Luckily, the myth of infinite economic growth on a finite planet is put into question by many economists, scientists, academics, civil society and think thanks. Next week, I will join our Finnish Platform, Fingo, for their conference on "
Beyond Growth - Indicators for People and Planet" in Helsinki. We will be advocating for "
An economy that works for everyone" and discussing how to make it happen. In parallel, as of today, our social media channels will be entirely dedicated to this question for the coming week. We will call for genuine measures of progress to guide us in addressing inequality as well as explore a number of alternative models in place around the world.
We invite you to stay tuned, follow us on Twitter and Facebook with #
BeyondGrowth.
