Herman Daly - on Globalisation

Professor Herman E. Daly on economic growth.

“Exactly what is growing? One thing is the GDP, the annual marketed flow of final goods and services. But there is also the throughput – the metabolic flow of useful matter and energy from environmental sources, through the economic subsystem (production and consumption), and back to environmental sinks as waste. Economists have focused on GDP and, until recently, neglected throughput. But throughput is the relevant magnitude for answering the question about how big the economy is – namely how big is the economy's metabolic flow relative to the natural cycles that regenerate the economy's ressource depletion and absorb its waste emissions, as well as providing countless other natural services? The answer is that the economic subsystem is now a very large relative to the ecosystem that sustains it. How big can the economy possibly be before it overwhelms and destroys the ecosystem in the short run? We have decided apparantly to do an experiment to answer this question empirically! How big should the economy be, what is its optimum scale relative to the ecosystem? If we were true economists we would stop the throughput growth before the extra environmental and social costs that it causes exceeds the extra production benefits that it produces.”

- Professor of economics Herman E. Daly.

[source: Tim Jackson: "Prosperity Without Growth", Earthscan 2009]