Solutions by the people, for the people
#GS-02 Social Justice #GS-03 Economy
For Mains:
The concerns regarding current state:
- While ‘Keynesian’ and ‘Friedman’ economists differ on the level of government interference in the economy both agree that development to be measured in by the growth in GDP.
- The Club of Rome in 1972 showed that pursuit of GDP growth was destroying the earth’s capacity to renew itself and provide resources for unbridled economic growth.
- The “Thatcher-Reagan-Chicago” model of neo-liberal economics prevailed and citizens who earn their livelihoods by work, not investments of money, were often side-lined in national economic policies.
- The 2008 global financial crisis revealed the fragility of insufficiently regulated markets.
- While the various governments bailed out the “too large to fail” institutions, millions of common citizens, who lost homes and livelihoods, were barely compensated.
- Moreover, some solutions to stabilise the global financial system, such as the austerity package imposed on Greece, harmed common citizens even further.
The rising demand for change:
- While the ideology of “minimum government”, with balanced budgets and low inflation has prevailed, waves of protest have erupted around the world.
- Citizens complain that the global financial system is unfair as it protects the interests of large corporations and the wealthiest people while common citizens fall further behind.
- Demands to include the needs of ‘People’ in economic policy are becoming louder.
- The “3P” slogan (People, Planet, and Profit) demands a paradigm shift in economics.
What can be done:
The five tracks that can be followed are:
- ending poverty;
- addressing gross inequality;
- empowering women;
- making food systems healthy for people and ecosystems; and
- transitioning to clean energy.
The Challenges for implementing change:
- Social tensions are already too high within many countries.
- Their governments are unable to find fair solutions through conventional “democratic” processes, with elected assemblies, competing political parties, even public referendums.
- Disillusionment with democratic institutions is increasing, even in democratic U.S. and Europe.
- Authoritarian governments are coming to power in many countries, often supported by citizens, as alternatives.
