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Economic growth at any cost! A deceptive mantra
Despite productivity in developing countries having seen a 30 to 80 fold increase in the last 100 years, economic growth is still preached as a fundamental necessity to ensure people’s wellbeing.
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Despite productivity in developing countries having seen a 30 to 80 fold increase in the last 100 years, economic growth is still preached as a fundamental necessity to ensure people’s wellbeing. (JP/Ricky Yudhistira)
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f there is one thing that the large majority of world leaders, economics gurus, multinational companies, international organization and most social, economic, and political elites agree on is that economic growth is fundamental to secure the well-being of humanity and world stability. That is, economic growth at any cost. In simple terms, economic growth is an increase in the production of economic goods and services, compared from one period of time to another and it can be “considered among the most crucial indicators that are released” to measure how an economy is performing. As a result, “boosting economic growth becomes far and away the most important public policy concern” in most countries.
A softening of economic growth is seen as a threat to most of what a modern society yearns for. Headlines such as the World Bank’s “The global economy: Heightened tensions, subdued growth” and “Darkening prospects: Global economy to slow to 2.9 percent in 2019 as trade, investment weaken.” Or the latest International Monetary Fund report warning of “Growth slowdown, precarious recovery” due to “a weakening global expansion” could lead to a new global recession that would result in all kinds of sufferings.
In its analysis of economic prospects for 2019, the World Bank worries about the fact that “global growth has continued to soften this year [...] dampening prospects and impeding progress toward achieving critical development goals”. It continues arguing that policymakers should become aware of the risks of this softening entails and are strongly advised to “foster long-term growth”. Economic growth at any cost must be achieved.
Some challenge the type of economic growth and the way it is measured, but do not dismiss the concept that economic growth needs to be achieved. Nobel Laureate in Economics Joseph Stiglitz argues that the gross domestic product “is not a good measure of economic performance; it is not a good measure of well-being”. America’s late president John F. Kennedy wanted economic growth too, but one with social progress to ensure that not only the privileged few “reap the benefits of rising abundance”, but also one that people are lifted out of poverty.
