Reframing economics

The metrics applied to human and planetary progress must change from the outdated linear economic model that promotes GDP growth at all costs. The economic system needs a greater focus on economic, social and environmental well-being, recognising a balance between people, prosperity and planetary boundaries.

Beyond GDP

The objectives of the Reframing Economics Impact Hub are to

  • push for the exploration of economic thinking that promotes the well-being of people and the planet to ensure a reversal of crucial eco system, climate and social tipping points created by humanity’s thirst for economic growth.
  • advocate for a shift from the current system which is based on fundamentally flawed economic theory and indicators promoting a growth centric philosophy.

As stated by American politician, Robert Kennedy, in his speech on Beyond GDP in 1968: “The gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile.”

Almost fifty years have passed since the launch of the “Limits to Growth” report by the Club of Rome. Its key message was that a combination of resource depletion and pollution, if unchecked, would ultimately bring the global economy down. This is the situation today.

Meeting the Sustainable Development Goals within Planetary Boundaries

Earth4All is an international initiative to accelerate the systems-changes we need for an equitable future on a finite planet. Combining the best available science with new economic thinking, Earth4All is designed to identify the transformations we need to create prosperity for all. Earth4All is initiated by The Club of Rome, the Potsdam Institute for Climate Impact Research, the Stockholm Resilience Centre and the Norwegian Business School. It builds on the legacies of The Limits to Growth and the Planetary Boundaries frameworks.

Earth4All will publish a major report in advance of the Stockholm+50 summit. The report will focus on transformational economics and five essential policy turnarounds to achieve the UN’s Sustainable Development Goals within Planetary Boundaries.

Transforming Economics

The Transformational Economics Commission aims to provide decision makers with insights on how to protect the interests of people and the planet, prepare for future crises and build resilience, and transform our societies, economies, and our relationship with the planet.

Previous Club of Rome reports have highlighted the need for transformative action, providing pathways and urgent actions that are required. The Transformational Economics Commission will take this further and analyse the economic and financial paradigm shifts necessary to ensure the adoption and implementation of these actions across different geographies.

At this significant moment in history where we see the impact of the convergence of the health-climate-biodiversity loss tipping points and the growing existential risk to the survival of all species, the time has come for key systems thinkers, economists and policy leaders to come together as a collective of solution providers for resilience building to future shocks. The Transformational Economics Commission will focus on highlighting the need to replace short-term thinking with long term policies and systemic change, while considering today’s existing policy frameworks and intergenerational inequity.

As part of the Earth4All initiative, the results will be published in a report in May 2022, which will include policy implementation scenarios and transformative pathways towards both environmentally and socially sustainable economies.

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