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Wednesday, March 1, 2023

Kate Raworth - economy designed to thrive not to grow! TED talk

I am apparently a few years after the pioneers, still trying to catch up, even with the whole research I did for the Good Companies book... :) And it still feels good that my ideas are genuine so that I can contribute them to the world! What a year that was - the Pinker's book and Raworth's book published!

Here goes the summary of Kate Raworth TED talk.

  • It is time to reimagine the shape of the progress curve - do we need economies that grow, whether or not they make us thrive?
  • Gross Domestic Product (GDP) invented in 1930s and very soon became the overriding goals of policymaking
  • Governments still think that the solution to their economic problems lies in more growth
  • W.W. Rostow,  The Stages of Economic Growth, 1960 book installs the believe that growth is necessary for something beyond than itself, like national dignity or better life for children
  • Roster left us flying into the sunset of mass consumerism. Yet the plane can never land. He knew this, and left us with the unanswered question:

What to do when the increase in real income itself loses its charm?

  • We are financially, politically and societally addicted to unending growth, through ROI in business, GDP in politics, and a century of consumerism propaganda in societal dimension, respectively.
  • GDP is 10x biger than it was in 1950s, brought prosperity to billions of people. Yet economy became devisive - 1% rich problem, degenerative - destabilizing this delicately balanced planet on which all our lives depend, 
  • Politicians offer new destinations of growth, yet
    I think it's time to choose a higher ambition, a far bigger one: to meet the needs of all people within the means of this extraordinary, unique, living planet so that we and the rest of nature can thrive.
  • No economist from the recent century saw this picture (of the current state), so why would we imagine that their theories would be up for taking up its challenges? We need ideas of our own because we are the first generation to see this, and probably the last with a real chance of turning this story around.
  • The new economy must be regenerative by design and distributive by design. 
  • We intuitively understand that when something tries to grow forever within a healthy, living, thriving system, it's a threat to the health of the whole. So why would we imagine that our economies could be one system that can buck this trend and succeed by growing forever?
  • We need to overcome the structural dependency on growth so we can instead focus on thriving and balance
  • It is boundaries that unleash our potential



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