What Is Degrowth?: Key Principles of the Theory Advocating for Reduced Consumption and More Sustainable Economies  

The raging climate crisis, with 2022 being the fifth warmest year on record globally according to NASA, proves that saving the planet has become more urgent than ever. For some economists, degrowth is the solution to avoid an environmental catastrophe.

Degrowth is a theory and movement that advocates for a transition away from economic systems based on endless growth. Its proponents argue that capitalism in its current state is unsustainable, both environmentally and socially, and highlight the need to move towards a model based on reducing consumption, redistributing wealth, and investing in public goods and services.

The term was first coined in the 1970s, but the movement gained momentum in the early 2000s in response to the global financial crisis and the growing awareness of climate change. The late French economist Serge Latouche is considered the father of degrowth. He wrote extensively on the topic, including the book "Farewell To Growth" (2009), one of the foundational texts of the movement.

While degrowth is a relatively new theory, it is gaining traction among academics, activists, and policymakers alike. It offers an alternative to a system that is leading communities towards environmental collapse and social inequality.

Degrowth policies range from implementing laws recognizing the rights of nature, as was done in Bolivia, to shortening the workweek without lowering salaries, as has been tried in Iceland and other countries. The transition to a post-oil economy is another relevant aspect.

According to the Global Footprint Network, the world population needs 1.75 Earths to sustain our current inhabitants and consumption patterns. This means that resources are being used at a rate that is 1.75 times faster than the planet can regenerate them. The organization estimates that Earths will be needed by 2050 to satisfy human needs, which is why degrowth advocates call for immediate action.

Degrowth.info offers insights into the movement. Its foundational concepts include "a reduction of production and consumption in the global North and liberation from the one-sided Western paradigm of development" and "an extension of democratic decision-making to allow for real political participation", as well as "an economy and a society that sustains the natural basis of life".

But degrowth is met with certain skepticism by some thinkers. In his New York Times opinion column published in February this year, Nobel laureate Paul Krugman argued that "growth can be green" and that the quality of the environment is usually better in richer countries.

"(…) while it’s possible to decouple growth from environmental harm, that’s not automatic. To combine rising living standards with an improving environment, we need policies that encourage the use of technologies that cause less environmental damage.", explains Krugman.

Other authors took inspiration from degrowth to create new frameworks. American economist and sustainability expert Jeffrey Sachs proposes the idea of regeneration, arguing that the advance of sustainable technologies and business at the service of equality and human well-being is the definition of true progress.

Author: Marina Vanni