.
The Faith of an Ecological Economist |
[Review of the book
Beyond Growth: The Economics of Sustainable Development, by
Herman E. Daly (published by Beacon Press, 1996). Reprinted from
World Watch Magazine, September/October 1997, pp. 36-38]
|
The first time I encountered Herman Daly's work was part of a
serendipitous chain of events of the sort that gives you pause years
later with the thought of how different your life would be now if it had
gone a tad differently then. Just out of college, I was spending a year
at Cambridge University in England, supposedly studying mathematics.
Instead, I found myself searching for distractions.
One short January day, I came across Small Is Beautiful, a 1973
work by the British economist E.F. Schumacher, on a friend's bookshelf.
It fused ecology and economics in a way I had never seen, and thrilled
me with the results. A conversation with another friend led to Soft
Energy Paths, written around the same time by Amory Lovins, a young
American physicist turned Oxford don. When that appeared, it upended the
conventional wisdom that the only antidote to energy shortages was
ever-more-aggressive efforts to expand supply. (Instead, it argued,
countries could and should use existing supplies much more efficiently.)
On the first page of his book, Lovins yielded the lectern to an
economist at Louisiana State University. This economist backed Lovins in
criticizing mainstream energy analysts for viewing energy demand purely
and unthinkingly as something to be accommodated, not controlled -- in
effect, as an end rather than a means. "This approach is unworthy
of any organism with a central nervous system, much less a cerebral
cortex," Herman Daly wrote. "To those of us who also have
souls it is almost incomprehensible in its inversion of ends and means."
It was a compelling quote. Daly spoke from both his mind and his
heart-and thus, like Schumacher and Lovins, appealed to both my mind and
my heart. His analysis was cutting, both intellectually and morally.
Indeed, as I eventually came to appreciate, Daly's strength as a thinker
is that his heart is in his work. Unlike the emphatically secular
methods of most economists, Daly's pursuit of descriptive analytic truth
does not turn him into a moral agnostic. On the contrary, it allows him
to found his economics quite solidly on his faith as a Christian.
Soon, I had tracked down Daly's classic Steady-State Economics.
A few pages into it, I felt I had found a new home. Where my
chalk-dusted professors offered a mathematical language to describe how
stars bend the space they occupy, like bowling balls on a trampoline,
Daly offered an elegant framework for understanding how the human
economy was distorting the natural world in which it operates. The
difference was that Daly was working not at the physical but the social
level of analysis, where values matter.
Beyond Growth: The Economics of Sustainable Development is his
latest book. It is a wide-ranging one, constituting, if not his
collected works, then perhaps his collected thoughts. Chapter topics
range from population growth among the campesinos of the Ecuadorian
Amazon, to the consequences of international trade, to a Christian
foundation for ecological economics. Introductions for each section and
for the whole volume partially, if sometimes awkwardly, fuse the
material together.
Through it all, Daly never shies from calling the pitches as he sees
them. He commends the statement of principles issued by the U.S.
President's Council on Sustainable Development in 1995 for noting the
need to incorporate environmental protection into economic policy, but
takes it to task for glossing over the reality that the country's
consumption of natural resources must be drastically reduced if it is to
restore some kind of environmental balance. In an obituary piece, he
praises his former teacher, Nicholas Georgescu-Roegen, for essentially
founding ecological economics, even as he regrets discreetly that late
in life the Romanian-born professor, embittered by the deafening silence
with which his work was received, "even cut relations with those
who most valued his contribution."
And he shies not at all from attacking central tenets of the current "Washington
Consensus" that free trade and capital mobility are key to speeding
healthy economic development worldwide. Transnational corporations, he
says, have slipped from the reins of public control. "We can either
leave transitional capital free of community constraint, or create an
international government capable of controlling it, or renationalize
capital and put it back under the control of the national community."
(Here, a rarity: Daly oversimplifies. As tar as I know, Honda has to
obey all the laws of the countries in which it operates. And Indonesian
logging companies demonstrated decades ago that domestic firms can do
more than their share of harm.)
Such an eclectic volume resists summarization, but one theme is clearly
central, as the title suggests: the environmental and social
consequences of growth. In the 1970s, the "limits to growth"
debate, triggered by a book of that name, quickly polarized into two
camps: roughly speaking, for and against growth. Unfortunately a basic
question often got lost in the weighty attacks and counterattacks:
Growth of what?
At the time, growth in the environmental demands of an economy was
typically assumed to proceed in lockstep with the dollar value of what
that economy produced, so distinguishing between the two may have seemed
unimportant. But oil shocks and strengthened environmental laws soon
gave the lie to that simple equation. Families and businesses found ways
to increase efficiency of resource use and reduce pollution, or to rely
more on products and services that were intrinsically light on the
earth, such as software and education. As a result, the global economy
grew more as measured in dollars than it did by many measures of
physical impact, ranging from oil use to sulfur emissions. That
suggested that to some unknown extent, economic growth might lie
compatible with environmental protection after all, as long it is the
right kind of economic growth.
Ironically, the title of Beyond Growth somewhat mires Daly in
this well-worn and partially false debate even as he strives to move "beyond"
it. The growth Daly knows we must get beyond is in the burden the global
economy places on the environment and on human health. Yet most readers
will not take his meaning that way upon first picking up the book; they
will assume he is attacking economic growth head on.
Though Daly usually makes clear that he is not, he leaves the reader
wondering whether the dangling implication is completely accidental. For
instance, he rightly chides politicians in rich countries for dodging
the question of how to redistribute the economic pie to combat poverty,
by promising that the pie itself will grow ever bigger -- that is, for
claiming that growth of the economy (in dollar terms) is the best
antidote to poverty. But in the wording of his attack, he reveals what
may be his true feelings about economic growth. He accuses politicians
of resurrecting "the impossible goal of growth." "No
doubt," he writes acerbically, "they will want to call it
'sustainable growth'!"
But sustainable economic growth is not necessarily an oxymoron, as Daly
himself has emphasized for the last 20 years. In general, if governments
place firm environmental protection controls (such as pollution taxes),
on an economy, the potential for economic growth will then depend on the
future evolution of technology and human wants. If people decide to
spend much of their income on products susceptible to steady
technological innovation -- say, computers rather than chamber concerts
-- economic growth could continue for quite some time, since it is,
fundamentally, the process of figuring out how to produce more goods and
services with the same amount of work. The benefits of economic growth
may be commonly overrated, especially for rich, consumerist societies
where pricey sport utility vehicles jam the highways and billions of
tiny model cartoon characters till children's toy boxes and dim their
imaginations. Hut for what it is worth, such growth may be possible.
Of course population growth must eventually hair. Every additional
person places extra demands on the planet's biota for food. Already,
according to an estimate Daly cites, humanity has co-opted 40 percent of
the earth's photosynthetic product for its own use, much of that for
crop and livestock production -- a huge share for a single species. Even
if we all become vegetarians (unlikely), human population can hardly
more than double again before we will have to re-engineer every corner
of the earth for agriculture.
Daly is completely on-target when he shirts from asking the empirical
questions about whether and how economies can grow, and starts raising
the moral questions about growth and the environment. He dares to ask,
Why does the environment matter? Why is air pollution bad and rainforest
preservation good? The answer he often hears is that we must protect the
environment "for the sake of our children." But that does not
satisfy him, for it only begs the question of why future generations
matter -- an impossible one to answer through logic alone.
Daly gently criticizes his non-religious, "materialist"
colleagues for sidestepping the question. "There is something
fundamentally silly about biologists teaching on Monday, Wednesday, and
Friday that everything, including our sense of value and reason, is a
mechanical product of genetic chance and environmental necessity, with
no purpose whatsoever, and then on Tuesday and Thursday trying to
convince the public that they should love some accidental piece of this
meaningless puzzle enough to tight and sacrifice to save it." I
realized as I read this indictment that it could apply to me as well.
To give environmental economics a firmer ethical grounding, Daly
proposes a "biblical economic principle" that has as
corollaries both the rightness of environmental sustainability and the
need for a ceiling on economic inequality in a society. As one who was
not raised in any organized, religion, I cannot follow Daly down this
particular path. Yet even if I could, it might not help. Just as there
are many materialists who are environmentalists, there are many
Christians who are not. Evidently belonging to an organized religion
does not ease the task of formulating values. Interestingly, Daly
himself does not so much derive his ethical principle from biblical
teachings as he does adduce it as a sort of eleventh commandment. Even a
Christian reader must rake it on faith.
Nevertheless Daly has confronted me with the reality that I, like
anyone who speaks out on the issues of our day, am a preacher -- or
maybe a minister. No amount of reasoning can justify my
environmentalism. The force of logic can test values for consistency
with each other, but it cannot produce the values themselves. Rather,
values must develop from somewhere within us. Thus before
environmentalists can persuade people to follow their reasoning, we must
first work to spread the values on which that reasoning is based, or to
convince our audience, as preachers often do, that it already shares
those values. What makes Herman Daly a standout among environmental
evangelists is that he is perceptive enough to see himself as such.
|