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Mother Pelican
A Journal of Solidarity and Sustainability

Vol. 11, No. 6, June 2015
Luis T. Gutiérrez, Editor
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War and Peace and the Steady-State Economy

Herman Daly


Originally published in The Daly News, 29 April 2015
under a Creative Commons License


For more information on the "steady-state economy," visit CASSE


My parents were children during WW I, the so-called “war to end all wars.” I was a child in WW II, an adolescent in the Korean War, and except for a physical disability would likely have been drafted to fight in the Vietnam War. Then came Afghanistan, Iraq, the continuous Arab-Israeli conflict, ISIS, Ukraine, Syria, etc. Now as a senior citizen, I see that war has metastasized into terrorism. It is hard to conceive of a country at war, or threatened by terrorism, moving to a steady state economy.

Peace is necessary for real progress, including progress toward a steady state economy. While peace should be our priority, might it nevertheless be the case that working toward a steady state economy would further the goal of peace? Might growth be a major cause of war, and the steady state a necessity for eliminating that cause? I think this is so.

More people require more space (lebensraum) and more resources. More things per person also require more space and more resources. Recently I learned that the word “rival” derives from the same root as “river.” People who get their water from the same river are rivals–at least when there are too many of them each drawing too much.

0615War-and-Peace-Jayel-Aheram.jpg
Contrary to popular belief, growth in a finite and full world is not the path to peace, but to further conflict. Photo Credit: Jayel Aheram
For a while, the resource demands of growth can be met from within national borders. Then there is pressure to exploit or appropriate the global commons. Then comes the peaceful penetration of other nations’ ecological space by trade. The uneven geographic distribution of resources (petroleum, fertile soil, water) causes specialization among nations and interdependence along with trade. Are interdependent nations more or less likely to go to war? That has been argued both ways, but when one growing nation has what another thinks it absolutely needs for its growth, conflict easily displaces trade. As interdependence becomes more acute, then trade becomes less voluntary–more like an offer you can’t refuse. Unless trade is voluntary, it is not likely to be mutually beneficial. Top down global economic integration replaces trade among separate interdependent national economies. We have been told on highest authority that because the American way of life requires foreign oil, we will have it one way or another.

International “free trade pacts” (NAFTA, TPP, TAFTA) are supposed to increase global GDP, thereby making us all richer and effectively expanding the size of the earth and easing conflict. But growth in the full world has become uneconomic–increasing costs faster than benefits. It now makes us poorer, not richer. These secretly negotiated agreements among the elites are designed to benefit private global corporations, often at the expense of the public good of nations. Some think that strengthening global corporations by erasing national boundaries will reduce the likelihood of war. More likely we will just shift to feudal corporate wars in a post-national global commons, with corporate fiefdoms effectively buying national governments and their armies, supplemented by already existing private mercenaries.

It is hard to imagine a steady state economy without peace; it is hard to imagine peace in a full world without a steady state economy. Those who work for peace are promoting the steady state, and those who work for a steady state are promoting peace. This implicit alliance needs to be made explicit. Contrary to popular belief, growth in a finite and full world is not the path to peace, but to further conflict. It is an illusion to think that we can buy peace with growth. The growth economy and warfare are now natural allies. It is time for peacemakers and steady staters to recognize their natural alliance.

It would be naïve, however, to think that growth in the face of environmental limits is the only cause of war. Evil ideologies, religious conflict, and “clash of civilizations” also cause wars. National defense is necessary, but uneconomic growth does not make our country stronger. The secular west has a hard time understanding that religious conviction can motivate people to both to kill and die for their beliefs. Modern devotion to the Secular God of Growth, who promises heaven on earth, has itself become a fanatical religion that inspires violence as much as any ancient Moloch. The Second Commandment, forbidding the worship of false gods (idolatry) is not outdated. Our modern idols are new versions of Mammon and Mars.


ABOUT THE AUTHOR

Herman Daly has received numerous significant awards (e.g., the Right Livelihood Award and the NCSE Lifetime Achievement Award) that recognize the value of his ideas for making this world a better place. For decades, he has been an inspiration to students of economics and public policy — how often do you see students lining up at the end of the semester to have their professor sign their textbooks?

Over his career, Herman has taken a courageous stance, swimming upstream against the currents of conventional economic thought. Not content to bequeath his ideas on economic development solely to the academic realm, he did time at the World Bank to change policies in the real world. He also has written books that are popular with citizens around the world.

It’s a rare combination indeed to have keen insight, kindness, razor-sharp analytical skill, wit, amazing capacity for work, humility, and an uncanny way with words all rolled up into one human being. It’s a good thing, too — the planet needs Herman Daly. His books, lectures, papers, and essays are filled with ingredients for cooking up a better economy and better lives.




A Thirst for Economic Change?

Erik Alm

Originally published in The Daly News, 7 May 2015
under a Creative Commons License

"I sincerely hope, for the sake of posterity, that they will be content to be stationary, long before necessity compels them to it." John Stuart Mill, On the Stationary State

In the face of global resource shortages and the alarming rate at which we are losing species, many of us share the hope that J.S. Mill so ominously communicates in one of his better-known quotes. But what will it take to catalyze the shift to an economic state that respects our natural boundaries? Perhaps the catalyst could be a life-altering dearth of a critical resource that, until recently, most of us in the United States have taken for granted: water.

The idea that a water shortage like the one California is currently facing could cool the economic engines that have elevated the state to the eighth-largest economy in the world has been discussed in local media and state government offices alike. The Desert Sun, a paper serving the rapidly-growing Coachella Valley in the southern part of the state, recently posed the question of whether water worries will slow development in the valley. The New York Times expressed its worries about California’s continuing economic vigor by stating the drought “. . . is forcing a reconsideration of whether the aspiration of untrammeled growth that has for so long been this state’s driving engine has run against the limits of nature.”

0615-Alm-Drought-Cortopassi.jpg Many proposed policies that could stem our water problems are discarded because they are seen as anti-growth. Photo Credit: Kevin Cortopassi
Replying to questions like these, the head of the State Water Resources Control Board, Felicia Marcus, says “We have a long way to go before we have tapped out our resources,” and prospects for economic growth are still as bright as ever. The non-partisan California Legislative Analyst’s Office reinforces this view in a brief report released in mid-April. Citing a recent Wall Street Journal survey of economists, the report concludes “. . . we currently do not expect the drought to have a significant effect on statewide economic activity or state government revenues.”

Many of these rosy economic predictions rely upon hopeful qualifiers such as assuming the drought will be short-lived, that the recently imposed water restrictions will not be expanded, or that water districts will continue to receive adequate allocations from the State Water Project. These assumptions may prove to be overly optimistic.

Surface water, which normally covers 60% of the state’s demand, is predicted to be in even worse shape this year due to the lack of snow in the Sierra Nevada Mountains. California’s State Water Project, which distributes this water throughout the state, supplying drinking water to more than 23 million people and helping to irrigate agricultural lands in the Central Valley, was able to deliver to water districts only 5% of their contracted amounts in 2014. Another important source of surface water, the Colorado River, is also showing the effects of extreme drought with Lake Powell, the system’s biggest reservoir, below 45% of its capacity.

Groundwater, which is used to supply the other 40% of the state’s demands, and up to 60% during times of inadequate surface flows, faces similar stresses. “The withdrawals far outstrip the replenishment. We can’t keep doing this” says Jay Famiglietti, a NASA scientist who studies water supplies in California. The recent well-drilling boom that is providing California farmers with at least a temporary solution to their water woes seems to be adding urgency to his words.

As the search for additional water becomes more desperate, some have been thirstily eyeing the amount allocated to ecosystems. California’s Department of Water Resources estimates that 50% of the state’s water is used by the environment, 40% by agriculture, and 10% by urban users. Even with a quarter of the state’s native freshwater fishes being listed as either threatened or endangered and many more headed in the same direction, some interest groups have advocated reducing environmental water allocations, even at the peril of critical habitats.

This “people versus fish” debate is largely due to a misunderstanding about the way the environmental use statistic is calculated. Most of the water “used by the environment” flows in state and federally protected rivers in the sparsely populated North Coast where there are few alternative uses. In the majority of the state, environmental use of water is far from dominant at 33%, with agriculture accounting for 53% and urban users at 14%. Noting the dramatic devastation that California wetlands have suffered over the last 150 years, including the loss of Tulare and Owens Lakes and the removal of 95% of the native vegetation along Central Valley creeks and rivers, the state appears determined to allocate more water to natural systems. A 2014 bond measure approved up to $200 million to acquire water rights for environmental use and funding mechanisms for restoration of wetlands are also being sought.

Another hope for increased water security is desalination. Plants similar to the one in Santa Barbara, CA, which is being restarted after years of laying idle, have been used to provide a technological solution to water shortages in some parched and energy-rich parts of the world. However, due to high initial capital costs, stringent permitting requirements, huge energy demands, potential environmental harm, and a final product that is more than four-times as expensive as surface water (and nearly double the cost of building a water recycling system), it seems unlikely that desalination will be able to make up for the increasing shortfalls that our current trajectory of growth will bring.

In an apparent public admission that the state has no viable ideas for increasing supply, on the first of April, like a bad joke, Governor Brown called for the state’s first ever mandatory water use restrictions. “Folks realize we have now reached the limits of supply, so the focus is on demand.” says Heather Cooley, water program director for the Pacific Institute, a water-resources research group in Oakland, CA. Proposals for reducing demand range from increasing water efficiency to $10,000 fines for residents and businesses caught being wasteful. However, some people have pointed out the hypocrisy of the water restrictions. Craig Ewing, president of the Desert Water Agency which serves Palm Springs and other communities, has heard it often, “The public is faster to react to these things than governmental institutions, and so the public is already saying, ‘Why are we seeing new development when we’re being asked to cut back?’ And the governments are going to be slower to figure out, ‘Well, how do we deal with all of this?’”

Currently, many proposed policies that could effectively stem our water problems are immediately discarded as unworkable because they are seen as anti-growth. Temporary building moratoria for areas without a secure water source are a case in point. However, if the public were better informed about the negative consequences to their quality of life from policies that support continued growth even in the face of critical resource shortages, perhaps they would favor policies with growth-curbing corollaries instead. Unfortunately, for some in the state, like those in East Porterville whose homes are currently without any running water at all, the choice of whether or not to grow their community has been obviated. Their focus now is firmly fixed on survival.


ABOUT THE AUTHOR

Erik Alm is a researcher and consultant providing services to companies in the clean fuels sector. He has studied sustainability formally having earned a B.S. in Environmental Studies at the University of Vermont, and an MPA in Environmental Science and Policy at Columbia University. His strong passion for the preservation of biodiversity was his motivating factor for getting involved with CASSE. Through his work with the Center, he hopes to build a collaborative environment in the Bay Area where the local effects of uneconomic growth can be documented, and ways of moving toward a steady-state economy can be devised.


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