FROM BIOECONOMICS TO DEGROWTH

MAURO BONAIUTI

The first part of this essay recalls some basic characteristics of complex systems that, in moving from physical organisations to human socio cultural ones, sho! the re"uctionism that characterises stan"ar" economic science# The secon" part attempts to i"entify a fe! fun"amental long term processes $on the economic, ecological, social an" cultural levels%, in !hich gro!th is the common "enominator, an" !hich may explain the reasons for the multi"imensional crisis !e are facing# The analysis starts from the gro!th&accumulation&innovation process !hich characteri'e" in"ustrial capitalism first, an" financial capitalism later, pointing out its self pursuing, multi scale character !ith its main conse(uences for ecological e(uilibrium# The effects of gro!th on ine(uality $)# *atouche, +,,+- )# Amin, .//.,%, on the transformation of consumer patterns $0irsh, +,12%, on the progressive "issolution of social relationships $3# 4olanyi, +,55, 6o"bout 7aill8, +,,9- :# Bauman, .//;, .//1% an" on the fragmentation of the collective imaginary $*yotar", +,1,- 7astoria"is, .//;, <# 0arvey, +,,/% are examine", !ith a vie! to offering a systemic interpretation of the relationships among these processes# This frame!or= may also offer a general explanation of the para"ox of happiness that contemporary society reveals $>asterlin, +,15, .//+%# Moreover, these processes may also be consi"ere" an intro"uction to ?"egro!th@ in its "ifferent "imensions# 4ART ON>A >I60T T0>)>) 7ON7>RNIN6 7OM4*>B )C)T>M)

+% The economic process has an entropic nature As !e have seen, 6eorgescu RoegenDs bioeconomic theory represents a ra"ical criticism of neo classical theory# 0e pointe" out the limitations, !hich are basically of an entropic nature, to !hich the process of economic gro!th is subEect# Accor"ing to the la! of entropy, every pro"uctive activity involves the irreversible "egra"ation of increasing amounts of energy an", in certain con"itions, of matter# )ince the biosphere is a close" system, exchanging energy but not matter !ith the environment, t!o important conclusions may be "ra!n as far as economics is concerne"# The first conclusion is that the basic obEective of the economic process, i#e# the unlimite" gro!th of pro"uction an" consumption, in being foun"e" on the use of non rene!able sources of matter&energy, contra"icts the fun"amental la!s of thermo"ynamics# This obEective must, therefore, be ra"ically reconsi"ere"# Furthermore, the empirical evi"ence concerning the effects of unlimite" gro!th that has been accumulate" over the last thirty years is !ell foun"e" an" consonant# <ata can, un"oubte"ly, al!ays be conteste", but loo=ing at them impartially as a !hole they sho! (uite evi"ently ho! the biosphere is alrea"y unable to sustain the global system of pro"uction# The secon" conclusion is of a metho"ological natureA the pen"ular representation of the economic process, foun" in the opening pages of any han"boo= on economics, accor"ing to !hich "eman" stimulates pro"uction, an" the latter provi"es the income necessary to create ne! "eman", in a reversible process that is apparently capable of repro"ucing itself ad infinitum, must be replace" by an evolutionary vie! in !hich the economic process is seen to follo! the arro! of time, an" is thus irreversible# In general, this bioeconomic vie!point recalls the inevitably physical an" material
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nature of every economic process, bringing economic science bac= from the rarefie" atmosphere of mathematics to the real !orl"# 2) Complex systems exhibit feedback relationships Fee"bac= relationships are very common in complex systems# This is an extremely important aspect# Accor"ing to !hether the fee"bac= has the effect of strengthening or !ea=ening the original input, !e shall have respectively systems !ith positive or negative fee"bac=# As is =no!n, the evolutionary "ynamics of these t!o typologies are "iametrically oppose"# Ghile systems !ith negative fee"bac= are self correcting, systems having positive fee"bac= present self increasing&exponential tren"s# Un"isturbe" biological an" ecological systems are examples of self correcting $homeostatic% systems# )omething similar occurs in the organism of !arm bloo"e" animals, !hose bo"y temperature is =ept constant than=s to the variation in several other parameters# In negative fee"bac= systems, variations al!ays occur in or"er to ensure the constancy of some fun"amental function, such as the ?survival of the species@# It is perhaps interesting to note that complex organisations, such as enterprises, churches or environmentalist associations, may also have (uite similar !ays of behaving# Hariations in the external environment, for example a ne! regulation or a technological innovation, !ill cause changes in the internal structure in or"er to ensure the complex aim that is the ?survival of the organisation@# In contrast, systems en"o!e" !ith positive fee"bac= present explosive characteristics# >xponential population gro!th or spiralling violence are goo" examples of positive fee"bac=# Numerous loops of this type operate !ithin the economic system# *ong term economic gro!th, sustaine" an" exten"e" by the recent processes of globalisation, probably represents the most stri=ing case# A positive fee"bac= seems to lie at the root of to"ayDs in"isputable phenomenon !hereby the rich get richer an" the poor poorer# A process of the self increasing type can be alleviate" in t!o ra"ically "ifferent !ays, !hich must be consi"ere" carefully# The first by activating homoeostatic processes $negative fee"bac=s% internal to the system# In this case, the system gra"ually converges on certain e(uilibria !ithout "estructive effects# The secon" !ay, calle" overshooting, restricts the gro!th of the process by the pressure exerte" on other systems, !hich, in being incapable of offering the necessary resources, or more generally reaching a critical state, restrict any further "evelopment of the main system# In the latter case, the fun"amental variables of the system !ill reveal the characteristic bell shape" tren", !ith exponential gro!th follo!e" by an e(ually su""en "rop, or collapse# In general, it is clear that a process of gra"ual transition to!ar"s ?sustainable patterns,@ re(uires the intervention of negative fee"bac=s of the first =in"# )tan"ar" economic science "oes not consi"er fee"bac= relationships because it ten"s to explain phenomena mechanically by means of linear chains base" on the principle of cause an" effect# 0o!ever, it is essential to see the presence of these circular relationships if !e are to interpret the evolutionary long term "ynamics bet!een the socio economic system an" the biosphere, an" above all to recognise the potentially self "estructive outcomes of economic gro!th# 3) On being the right size the !uestion of scale and the principle of emergence Although the most obvious "ifferences among living organisms are those of si'e, even natural scientists themselves have pai" little attention to them# Cet it is not "ifficult to sho! that a mouse coul" not be as large as a hippopotamus, or a !hale as small as a herring# At the beginning of the last century, in a remar=able text, the naturalist <IArcy G# Thompson clearly expresse" an i"ea that must be recalle" hereA a variation in size normally involves a variation in structure, that is to say that, as far as biological structures are concerne", a variation in si'e involves a mo"ification in the form of the organism#+
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<IArcy G# Thompson, On "ro#th and $orm, 7ambri"ge University 4ress, +,2+, First >"ition, +,+1#

The silence that has envelope" the (uestion of scale in economic science is even more stri=ing# Ghile in the economic !orl" there are micro firms compose" of one person an" giants capable of ma=ing a profit that surpasses the 6<4 of various countries, in economic textboo=s the structure of firms is "escribe" as if their si'e !ere irrelevant# Not!ithstan"ing 6RIs criticisms ., for stan"ar" economics, it poses no problem ?in or"er to "ouble pro"uction, it is enough to "ouble the (uantity of inputs#@ J >ven ecologists have not pai" enough attention to the (uestion of scale "espite the fact that influential scholars have pointe" it out# In the +,1/s, authors such as Ivan Illich $+,1J%, >rnest )chumacher $+,1J% an" 6regory Bateson $+,1,% clearly state" the i"ea that, once a certain threshol" is crosse", social structures also generally un"ergo structural changes from !hich unforeseen negative conse(uences may "erive#5 The great biologist an" geneticist K# B# )# 0al"ane $+9,. +,25% is to be cre"ite" !ith the intuition that gro!th in si'e may involve alterations in the form of the organism an" that this principle can also be transferre" to the level of social organi'ations# In a short essay !ritten in the years bet!een the !ars, 0al"ane $+,;2% reache" the luci" conclusion that in nature every animal is of the right size, an" he also intuite" that, Eust as !hales "o not have the same structure as herrings, similarly it !as not possible to reconciliate the socialist i"eals of e(uity an" emancipation !ith the scale of the )oviet or British empires#; It is, ho!ever, only !ith the "evelopment of the sciences of complexity that this i"ea, more generally "efine" as the principle of emergence, is given a more rigorous formulation, along !ith the recognition of its vast hermeneutic conse(uences in many "ifferent research fiel" $0ollan", +,,9%# The (uestion !as clearly pose" by the physicist 4hil An"erson in a classic article that appeare" in +,1. in ?)cience@A %ore is different# An"erson starts by affirming that no serious scientist !oul" (uestion the fact that ?the same set of fun"amental la!s@ is vali" for the !hole "omain of matter, both living an" not# The important (uestion is, ho!ever, anotherA is it possible to ?reconstruct the universe@ starting from these basic la!sL An"ersonDs ans!er is clearly notA ?The more the elementary particles physicists tell us about the nature of the fun"amental la!s, the less relevance they seems to have to the rest of science, much less to those of society@#2 A ne! type of property emerges for every ne! ?level of complexity@ an" these emergent properties are ?as fun"amental as the others@# Ge may conclu"e from this that the la!s of physics are applicable to all "omains of matter, hence also to those social processes !hich involve matter an" energy $such as pro"uctive processes%, but, in general, la!s emerging on higher levels of complexity are precisely ?ne! la!s@ that cannot be "e"uce" from the ?fun"amental la!s@ of the previous level# In the same !ay, most biologists to"ay maintain that living organisms, !hile forme" from structures that respect chemical an" physical la!s, present (ualitative characteristics, the outcome of that particular association of molecules an" of those particular reactions ren"ere" possible than=s to these molecules $metabolism%, !hich is !hy biology cannot be re"uce" to a branch of physics or
For a criticism of neoclassical statements on this point seeA 6eorgescu Roegen, +,1+, pp# +/; +/1# If any mention is ma"e about the (uestion of scale on the part of economists, it is only as far as the so calle" economies of scale are concerne"# Accor"ing to this principle, average costs are re"uce" by increasing pro"uction# The ?U@ shape" curve of average cost un"oubte"ly reflects, as is =no!n, the "ecreasing tren" of marginal pro"uctivity# From the neo classical vie!point, ho!ever, the problem of "ecreasing marginal pro"uctivity is usually solve" by means of technological progress, !hich ?transposes the function of pro"uction to a higher level@ !ith a conse(uent shift "o!n!ar"s of the functions of cost# There is, therefore, generally spea=ing, no true pinpointing of the structural changes connecte" to scale# 5 Ivan Illich $+,1J% emphasise" the importance of this concept, in particular as far as social institutions are concerne"# It is the fulcrum of many of his boo=s, especially of the the theory of ?t!o threshol"s of change@, presente" at the beginning of Tools for Conviviality# It is not merely by chance that Illich "re! inspiration from <IArcy ThompsonDs morphology, from 0al"aneDs On &eing the 'ight (ize an" from the !or= of *eopol" 3ohr, )chumacherDs teacher# ; )ee K# B# )# 0al"ane, On &eing the 'ight (ize, in K#R# Ne!man, The Gorl" of Mathematics, Hol# ., )imon an" )chuster, Ne! Cor=, +,;2# 2 Muote" in <# *ane, )ierarchy, Complexity and (ociety, .//2#
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chemistry an" !hy a living organism is not e(uivalent to any man built machine# As levels of complexity slo!ly rise in the hierarchy of the atom, the molecule, the gene, the cell, the tissue of an organism an" of a population, so ne! properties appear as the result of interactions an" interconnections emerging on every ne! level $)# K# 6oul", +,9;%# The extraor"inary explanatory impact that the principle of emergence may have in the fiel" of social sciences has not yet been recognise", since the latter are still "ominate" by the para"igm of metho"ological in"ivi"ualism, accor"ing to !hich the behaviour of aggregates can basically be trace" bac= to the behaviour of single in"ivi"uals $6o"bout 7aill8, +,,9%# This is particularly true of economics# The !hole theory of microeconomics is base" on the assumption of the atomistic behaviour of agents# On the contrary, as !e shall see, some of the phenomena crucial to the interpretation of the multi"imensional crisis !e are at present experiencing "erive from the specific properties of the aggregates !hich, once certain threshol"s are crosse", emerge as the conse(uence of the specific !ays of interacting among agents# It is, therefore, an aspect that !ill be =ept !ell in min" in the course of this analysis# *et us no! consi"er some basic characteristics that concern biological an" ecological systems more closely# *) &iological systems tend not to maximise any variables In living organisms gro!th is al!ays subEect to limitations# In complex organisms it is generally self regulate"A they reach a certain si'e, after !hich some chemical signals #ithin the organism impe"e its gro!th# In general, too high, or too lo!, a value of any variable is "angerous for the organismA too much oxygen involves the combustion of the tissues, Eust as too little lea"s to a state of asphyxia# *ife !ithin the biosphere, immerse" in cosmic ra"iation, "evelops !ithin a range of electromagnetic fre(uencies of barely four an" a half octaves of the forty that !e =no!, as H# I# Herna"s=iE $+,5;% un"erline" in his masterly !or=# In the biological !orl" there are threshol"s every!here !hich, ho!ever flexible an" "ifficult to "etermine they may be, cannot be crosse"# This principle gravely conflicts !ith the assumptions of stan"ar" microeconomic theory, accor"ing to !hich the behaviours of economic agents are of a maximising type# A larger (uantity of goo"s is al!ays preferable to a smaller one $non satiety hypothesis%# On a macroeconomic level, nothing opposes a continual gro!th in income an" in consumption- on the contrary, it is hel" to be the first an" essential obEective of every economic policy# +) &iological systems have multiple aims If !e exclu"e the general variable of the survival of the species, !e cannot assert that biological systems pursue the maximisation of a single aim to !hich all other variables are subor"inate"# In the biological !orl", mammals, in particular, present a system of multi"imensional values $Bateson, +,1.%# This characteristic also stan"s in contrast to the assumptions of stan"ar" economic theory# )ome specific hypotheses have been intro"uce" !ith the aim of ensuring that the !ell being pro"uce" by the consumption of any sort of goo"s may be or"ere" accor"ing to the same uni"imensional in"exA utility, As has been "emonstrate",1 the possibility of or"ering a variety of bas=ets of goo"s accor"ing to a single uni"imensional in"ex fails !hen !e consi"er preferences of a ?lexicographical@ nature, that is to say, !hen the various goo"s cannot be substitute" for one another# >very"ay life sho!s that this is a common situationA access to the Internet cannot be a goo" substitute for someone !ho has no access to "rin=ing !ater, Eust as the brea" "istribute" by
)eeA NI70O*A) 6>OR6>)7U RO>6>N , -nalytical .conomics /ssues and 0roblems, 7ambri"ge, Mass#, 0arvar" University 4ress# +,22, an" 3# MACUMI, The Origins of .cological .conomics, Routle"ge, *on"on, .//+, pp# 9 ./#
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humanitarian groups cannot satisfy someone !ho "esperately see=s Eustice an" "ignity# 7ontributions from highly "ifferent fiel"s of research, from biology to anthropology, from social sciences to psychology, teach us that true !elfare consists in multiple "imensions, each of !hich is irre"ucible to the others#9 As !e shall see, the intro"uction of a multi"imensional concept of !ell being offers a possible explanation of one of the fun"amental para"oxes into !hich the neoclassical theory of the consumer fallsA the so calle" paradox of happiness# 1) &iological systems present a combination of competitive and cooperative behaviours For neoclassical economists, social an" economic systems are characterise" by the presence of exclusively competitive forms of behaviour# A re"uctionist interpretation of the theory of evolution has le" to a representation of the living universe "ominate" exclusively by the ?struggle for survival@, an" this concept has been exten"e" to social an" economic systems $social <ar!inism%# It is interesting to note, on the other han", ho! in )oviet interpretations of biology the cooperative, symbiotic relationships among species prevaile"- there !as almost no competitiveness, an" nature became a metaphor for universal cooperation# It is time to go beyon" these i"eological an" instrumental interpretationsA to"ay it is clear to biologists that in ecosystems both competitive an" cooperative types of behaviour coexist an" that both are essential to the preservation of the species# In the same !ay, relationships of a competitive an" cooperative nature coexist among economic subEects, an", in"ee", as !e shall see, the latter become essential in or"er to compensate for some self "estructive spirals that characterise competitive $capitalist% systems# 2) /n an expanding context it is generally the competitive forms of behaviour that promote the success and development of the species, #hile in non3expanding contexts 4e!uilibrium mode) it is the cooperative forms of behaviour that usually favour success Accor"ing to 3enneth Boul"ing $+,9+%, the interactions !ithin ecosystems may basically assume t!o mo"esA one !hich is fun"amentally expanding, $colonizing mode% an" one, on the other han", that is not expan"ing $e!uilibrium mode%# The former is characterise" by an abun"ance of resources# In this mo"e, organisms expan" to!ar"s ne! ecosystems, that is to!ar"s non colonise" niches# In the latter mo"e, on the contrary, given the lac= of ne! free territories or of un"erexploite" ones, organisms settle in a state of e(uilibrium# Biology provi"es us !ith this fun"amental lesson, that is to say that there is no one form of behaviour fit for all seasons but that if the environmental context changes, then so "o the strategies that favour the "evelopment of the species# 7ontrary to !hat stan"ar" theory asserts, ?perfect@ competition among economic agents, "oes not necessarily pro"uce optimum results# It is li=ely that particularly competitive behaviours !ill prevail in expan"ing contexts# It is not merely by chance that homo sapiens has evolve" by means of colonisation an" the continual con(uest of ne! territories, competing !ith other species# Aggressiveness an" competitive attitu"es are therefore "eeply inscribe" in his evolutionary path# In more recent times, the a"venture of mo"ernity $!ith its in"ivi"ualist an" competitive culture% originate" an" "evelope" in an expan"ing context characterise" by the con(uest of ne! continents $America, the In"ies, etc#% an" of ne! intellectual spheres $science, technology, etc#%# Finally, it is again not merely acci"ental that the American economic spirit, in itself particularly in"ivi"ualist an" competitive, !as forge" "uring the expansion to!ar"s the Gest# 0o!ever, in non expan"ing con"itions, such as those that the human species is no! inevitably approaching as a result of the almost total colonisation of ecosystems on >arth, it is the cooperative forms of behaviour that !ill prevail# 7lassical 7hinese culture is an interesting counter proof of thisA it !as forge" in a non expan"ing environment $as exemplifie" by the 6reat Gall%, an" in fact it presents strong, non in"ivi"ualist an" non competitive traits#
)ee NI70O*A) 6>OR6>)7U RO>6>N , -nalytical .conomics, +,22, A# 0# MA)*OG, %otivation and 0ersonality, 0arper, N#Cor=, +,1/, IHAN I**I70 , Tools for Conviviality, 0arper an" Ro!, N#C#, +,1J#
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This all lea"s to a "ifferent evaluation of competitive pressure in to"ayDs social an" economic systemsA the presence of too high a level of competition, similarly of one that is too lo!, must generally be consi"ere" "angerous for the system# Biological organi'ations teach us that pursuing efficiency through competitiveness as the sole obEective of economic activity, is not only the conse(uence of a re"uctive conception of the human being, but also easily lea"s, as !e shall see, to self "estructive behaviour# Ne! forms of slavery, the "estruction of the environment an" increasingly !i"esprea" financial corruption represent Eust some examples of these "evastating effects# 5) (ocial systems are characterized by the capacity to form shared representations of the universe in #hich they live Ghat characterises biological an" social systems, an" "istinguishes them from physical systems, is their capacity to form ?representations@ of the universe in !hich they live# Animals are certainly capable of forming an i"ea of the environment in !hich they live an" of ma=ing "ecisions !hen face" !ith certain stimuli $signaling%# >ven single celle" organisms, for example, are able to monitor their o!n environment, estimating the presence of a certain chemical compoun", an" may move to!ar"s the area !here the compoun" is greater# 0o!ever, !hat characterises human socio cultural organisations is their ability to negotiate such representations, giving rise to shared representations # Unli=e !hat happens in the homologous activity in the fiel" of biological systems $signaling%, in negotiation semantics is important# The message may be totally ne! in form, yet the person sen"ing it expects the receiver to be capable of interpreting it# In or"er for this to happen, it is extremely important that socio cultural organi'ations shoul" share the ?attributions@ an" ?narrative forms@ on !hich messages are base" $<# *ane, <# 4umain, )# van "er *eeu!, 6# Gest, .//,%# In other !or"s, an" more generally spea=ing, the formation of shared representations is the premise necessary for common action, As !e shall see, this type of consi"eration is of great importance if !e are to en(uire into the problem of the $circular% relationship bet!een social imaginary an" institutional change# $7astoria"is, +,,9, .//;%# 4ART TGOA >HO*UTIONARC <CNAMI7)

Growth, accumulation and innovation a a !l"#incr!a in$ !m!r$!nt %roc! Figure + sho!s Angus Ma""isonDs "ata $.//;, .//,% on economic gro!th in the very long term# Although calculation of 6<4 prior to +91/ must be ta=en very cautiously, Ma""isonDs calculations sho! ho! >uropean economy !as basically in a stea"y state $or in slight "egro!th% from the fall of the Roman >mpire until the tenth century- this !as follo!e" by a slo!, gra"ual gro!th until +9./, !hich amounts to about J/N in eight centuries# 0o!ever, from the In"ustrial Revolution the curve clearly presents a "iscontinuity, revealing a "eci"e"ly exponential tren", !ith an ;/ fol" increase in pro"uction in less than t!o centuries# More precisely, the >uropean economy has gro!n 51 times from the start of the in"ustrial process $+9./% until to"ay $.//+%, Northern American even 219 times in real terms an" global economy ;J times# The populationIs history follo!s the same tren"#,

4opulation has increase" .#, times in >urope in the same perio" $from +JJ to J,. million inhabitants%, J/#, times in North America $from ++ to J5/ million% an" 2#+ times on a !orl"!i"e level $from + to 2#+ billion%# <espite the great increase in the population, income per capita has gro!n on average +#. times per year since +9./ an" .5 times more (uic=ly compare" to the estimates concerning the perio" from +,/// to +9./ $Ma""ison, .//;%#

FI6UR> + >conomic 6ro!th $6<4

The fact that part of the profit ma"e by enterprises shoul" be reinveste", thus increasing their en"o!ment of capital, !hich then becomes the basis on !hich to ma=e ne! pro"ucts an" hence ne! profit, is the fun"amental trait of the mo"ern, capitalistic economy# 0o!ever, very little attention has been pai" to the nature of this relationship in cybernetic termsA !e are un"oubte"ly face" here !ith a process of positive fee"bac=# It is this "ynamic, !ith its persistence throughout the extraor"inary transformations that have ta=en place in these centuries, that explains, !e believe, the exponential economic gro!th that has characterise" these economies since the In"ustrial Revolution, !hich !as un=no!n to all the previous forms of economic an" social organisation# 7lassical economists, in particular A"am )mith an" Marx, un"erstoo" very !ell that this circular, recursive process of increase in profit, ne! investments an" ne! profits $in Marxian terms the Money 7ommo"ities Money cycle% is the fun"amental trait of the mo"ern&capitalist economic system# The neo classical interpretation, on the contrary, !hile "evoting hun"re"s of pages to praising the $presume"% self regulatory nature of mar=ets, has sai" very little to un"erline the evolutionary nature of the process of accumulation, supporting a vie! of general e(uilibrium that is basically unhistorical# Obviously gro!th cannot be "enie" but, in neoclassical mo"els $O la )olo!%, it is essentially attribute" to increases in pro"uctivity, that is to say to technological progress, !hich is consi"ere" to be exogenous+/# No!a"ays the sciences of complexity permit us to interpret the relationship among gro!th, accumulation an" innovation in a ra"ically "ifferent, far more promising light# First of all, innovation, as )chumpeter ha" alrea"y intuite", consists in a process of ?"iscontinuous change@, transforming both the goo"s pro"uce" an" the pro"uctive processes# In other !or"s, gro!th implies the emergence of (ualitative transformations that, as 6 R claime", can har"ly be implante" in the arithmomorphic shape of neoclassical theory# Furthermore, in this perspective, particularly in competitive situations, gro!th, accumulation an" innovation are part of the very same self increasing process, !here not only "oes technological progress sustain gro!th, but gro!th becomes the source of further innovations, precisely in a recursive, self expan"ing spiral# To put it very briefly, in follo!ing the sciences of complexity, !e can state that the exponential tren" of the gro!th curve reveals the presence of t!o fun"amental processesA
More recent mo"els $on en"ogenous gro!th% have trie" to reme"y this maEor "ra!bac=, ta=ing into consi"eration the role human capital an" =no!le"ge play in explaining gro!th# 0o!ever, in these mo"els too, the neoclassical school carefully avoi"s consi"ering the circular relationship among gro!th, accumulation, innovation an" the emergent proprieties that characterise it#
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+# A long term positive fee"bac= among gro!th, accumulation an" innovation, an" .# The emergence of ne! structures&institutions connecte" to the multi scale process of gro!th#

The presence of a long term positive fee"bac= is confirme", as !e have seen, by the exponential tren" of the gro!th curve# As far as the secon" point is concerne", there have been various processes of structural change connecte" to economic gro!th in mo"ern times# The follo!ing three brief examples give some i"ea of !hat types of processes of change are connecte" to increases in scale# The first has been memorably "escribe" by 3arl 4olanyi in The "reat Transformation# It concerns in particular the phase that characterises the passage from an economic system base" on agriculture to an in"ustrial one# 4olanyi "escribes ho! some processes of structural change P from enclosures to the creation of a labour mar=et P are necessary for the process of accumulation to begin# The simple fact that labour coul" be bought an" sol" li=e any other goo"s, something practically un=no!n to any previous form of social organisation, !as not a chance occurrence# Ma=ing labour $an" nature% a commo"ity, subEect to the rules of the self regulating mar=et, involves such a "eep social change that, (uite comprehensibly, the outcome of this process !as the emergence of not only another economy but also of another society# )ince the conse(uences of this ?great transformation@ affect above all social matters, !e shall return to this point later !hen spea=ing of the social limits to gro!th# A secon" great process of structural change is !hat !e may call, along !ith Baran an" )!ee'y $+,29%, the emergence of monopolistic capitalism# The "ynamic of gro!th has involve" a profoun" change in pro"uctive structures, that is to say in enterprises# This process reache" its first full maturity at the beginning of the ./th# century, !hen the American economy reache" a po!erful concentration of pro"uction# 4rofiting from the scale economies connecte" to mass pro"uction of the For"ist type, enterprises capable of ma=ing the most profit incorporate" the !ea=er ones, moving to!ar"s the concentration of production !ithin a fe! large companies# This gro!th in si'e strengthene" their scale economies, permitting, by means of cost re"uction, further increases in profit# In this !ay, too, a process of positive fee"bac= !as set in motion# At a later stage, the profoun" transformation in the organisation of labour !ithin the For"ist context, than=s to the increase" strength of the tra"e union movement, particularly in >urope, raise" the cost of labour, re"ucing profit $an" savings% !ith a conse(uent re"uction in gro!th rates in the more a"vance" countries, in"ucing the enterprises to transfer significant parts of their pro"uction to those countries !here labour costs !ere lo!er $outsourcing%# This process has cause" the large transnational groups to renounce their "irect management of the pro"uctive process, yet at the same time increase their control over financial activities, !hich have thus become strategic# This process has le" financial organisations to play a lea"ing role an" increase their "ominance over the real economy $<ore, .//9%# The emergence of this ne! =in" of economic structure permitte" financial organi'ations to bypass the regulatory mechanisms institute" by national states# This transformation of the economic an" institutional structures has le" to highly significant conse(uences on both the theoretical level an" on that of the socio economic reality# On the theoretical level, they sho! ho! the metho"ological approach of neoclassical economics, base" on assumptions of reversibility an" metho"ological in"ivi"ualism, !here the behaviour of the !hole can be trace" bac= to the sum of in"ivi"ual behaviours, is (uite ina"e(uate !hen "ealing !ith the phenomena "escribe" above, !hich are characterise" by the presence of long term positive fee"bac= an" by emergent processes# On the socio economic plane, "espite the extraor"inary variety of historical, geographic an" political situations, the capacity fre(uently sho!n by these ?megamachines@ $multinationals, bureaucracies, systems of communication, of transport, of me"ical treatment, an" so on% to maintain or further increase their position of strength ac(uire" by means of the monopolistic control over some resources $Amin, .//.%, or simply than=s to their very si'e, has become a permanent feature
9

of the socio economic systems of ?mature@ capitalism# )tructural transformations, therefore, have accompanie" these changes in scale so that these social organisations $e#g# multinational companies% represent to"ay something ?other@ to that !hich characterise" the initial stages of the in"ustrial revolution# Ge can conclu"e from this that the process of gro!th&accumulation&innovation has assume", in the situation follo!ing the ?great transformation@, a central role in the "ynamics of the !orl" system, both in its un(uestionable strength an" pervasiveness, an" because, as !e shall see, the other most significant self "estructive processes, from the spiral of the ecological crisis to the various forms of social crisis, are closely connecte" the former#
&' Growth, innovation and th! !colo$ical cri i

The entry of ne! enterprises in competing mar=ets, together !ith the natural exhaustion of the life cycle of pro"ucts in mature sectors, lea"s to "eclining profit rates in the long run# This phenomenon, of !hich Ricar"o !as alrea"y a!are an" !hich neoclassical economists also ac=no!le"ge, in a certain sense constitutes the basic homoeostatic process to !hich any competitive mar=et economy is subEect# The effect of this negative fee"bac= !oul" en" up by "ampening economic gro!th since it !oul" cancel out the essential process of accumulation of capital# If, therefore, a society !ishes to encourage a process of continual gro!th, !hich is to last over several generations, it is necessary to fin" !ays in !hich this process of compensation may be ren"ere" ineffective# There are t!o basic !ays in !hich enterprises can ensure themselves lasting extraprofits# The first consists in creating some sort of barrier to other firms entering the mar=et, usually than=s to exercising some type of monopolistic po!er# As !e have seen, this is exactly !hat happene" in America at the beginning of ./th century $concentration processes% an" later on in other capitalistic economies# The secon" consists in a""ressing their pro"uction to!ar"s continually rene!e" goo"s an" ne! mar=ets# The continual "ifferentiation of pro"ucts an", finally, the creation of truly ne! goo"s&services&mar=ets $!hat, in other !or"s, is generally meant by the term innovation% represent the secon" basic process by !hich the pro"uctive system has avoi"e" the principle of "ecreasing marginal returns, !ith a conse(uent "rop in the profit rate, for more than a century# 0o!ever, this continual racing ahead "oes not escape the la!s of thermo"ynamicsA a ne! pro"uct is nothing but a ?ne!@ combination of matter&energy&information an" thus its pro"uction involves not only the irreversible "egra"ation of a certain amount of energy but also the ?loss@ of a certain amount of available matter, !hich, in actual fact, cannot be recycle" at the en" of the process# Ge can sum up the un"erlying causes of the ecological crisis in this "ynamic $6eorgescu Roegen, +,1+a%# This ?bioeconomic criticism@ is the first pillar of "egro!th# The empirical evi"ence accumulate" over the last thirty years has, in this regar", confirme" 6 RIs statements# As is =no!n, 6 R particularly stresse" the role that the exhaustion of fossil fuels !oul" play# More than thirty years later, accor"ing to 7olin 7ampbell, one of the !orl"Ds lea"ing "epletion analysts, $co author of the +,,9 )cientific American article, QThe .nd of Cheap OilQ%, "ata seem to confirm 6 R pre"ictions# 7ampbell maintains that the pea= of pro"uction !as reache" in .//9, something, by the !ay, that coul" also explain the surge in the price of cru"e oil in that year to over +5/ "ollars a barrel $0amilton, .//,%# A "ebate rages as to the precise "ate of the overall pea=, but it rather misses the point !hen !hat matters is the vision of long term "ecline of cheap energy#++ Of course is not possible to offer here an exhaustive survey of "ata about the ecological crisis# 0o!ever, !e shoul" not be surprise" that a process of accelerate" gro!th such as that "escribe"
Accor"ing to A)4O researchers, follo!ing +; "ifferent mo"els $Ba=htiari, )mith, )tanifor", *oglets, )hoc= mo"el, 6BM, A)4O, Robelius *o!&0igh, 0)M, <uncan R Coung(uist%, ,;N of the pre"ictions sees a pro"uction pea= bet!een .//9 an" ./+/ at 11#; 9;#/ million barrels per "ay# )ee !!!#theoil"rum#com#
++

must sooner or later come up against the biophysical limitations of the planet# All the simulations carrie" out since the +,1/s by scholars at MIT, present, for the basic economic an" ecological variables $availability of resources, population, life expectancy, in"ustrial pro"uction, etc#%, first "eclining marginal returns follo!e" by a true "egro!th in absolute values, accor"ing to the characteristic ?bell shape"@ tren"# $Mea"o!s <# et al#, .//5%# Another in"icator that is fairly efficient in offering an overall evaluation of the effect of economic activity on the biosphere is, as is =no!n, the ecological footprint# 0ere it is enough to mention that the ecological footprint of the global economy, that is to say the area of the lan" an" !ater ecosystems nee"e" to pro"uce the resources an" to assimilate the !aste pro"ucts, excee"s the regenerative capacity by about J/N # >uropean values are three times greater than the average regenerative capacity, an" American about five times # This means that if the American life style !ere to be exten"e" !orl"!i"e !e !oul" nee" roughly five planets to sustain it# $7hambers N#, )immons 7#, Gac=ernagel M#, .///%# Nee"less to say, other more specific in"ices, such as matter&energy flo!s an" the human appropriation of net primary pro"uction $0AN44%, must accompany the aggregate in"icators as far as more specific or local items are concerne"# On the bor"ers bet!een ecological economics an" political ecology, the continual gro!th of pro"uction an" consumption involves an increase in the flo!s of matter an" energy usually from the poorest countries, generating social conflicts in the lan"s !here such resources are exploite"# This ?environmentalism of the poor@, analyse" in particular by Koan Martine' AlierDs school, represents an important process, both because it has a significant impact on the culture of the local populations an" because the prices of many resources essential to the !orl" pro"uctive system are tie" to the outcome of these conflicts $Martine' Alier, .//.%# The increase in the costs of the resources can play an important role in con"itioning long term scenarios#
(' Social limit to $rowth

The analysis of the conse(uences of economic gro!th on social systems $!hat !e might call social sustainability% is certainly more complex an" controversial than that !hich concerns ecosystems# It must be a"mitte" that our un"erstan"ing of the "ynamics of social systems is still extremely limite"# Cet, if !e "o not inten" to renounce any chance of imagining eventual, ho!ever uncertain, scenarios of future un&sustainability, the (uestions that arise concerning this level of complexity are, in many aspects, unavoi"able# 7onsi"ere" as a !hole, the analysis of the social limits to gro!th represents a secon" pillar to "egro!th#
('& Th! critici m o" d!v!lo%m!nt

Hery generally spea=ing, !e coul" say that until to"ay the problem of social sustainability has basically been face" in terms of e!uity $)achs, .//1%# The !i"ely share" belief is that, since social systems are sensitive to "ifferences, a greater ine(uality is consi"ere" to be a cause of conflict an" social instability $Gil=inson R#, 4ic=ett 3# .//,% # Basically the (uestion un"erlying this approach to sustainability is !hether gro!th an" "evelopment may be consi"ere", as the neoclassical theory of convergence maintains, the bearers of a more e(uitable "istribution of !ealth among "ifferent countries or rather its contrary# Until the mi" +,1/s consensus on policies of "evelopment, seen also as a means of promoting a fairer re"istribution, !as almost unanimous# These !ere the years of the economic boom, mass pro"uction an" the 3eynesian pact bet!een capital an" labour# On the international level, from 4resi"ent TrumanIs famous ?)tate of the Union A""ress@ in +,5,, "evelopment became the =ey !or" in "efining the !estIs relations !ith the rest of the !orl" $it is not acci"ental that these countries have since been referre" to as ?"eveloping countries@%# In this frame!or= the hegemonic
+/

policy of the !est became "isguise" as a monumental plan for universal emancipationA the !hole planet !as invite" to follo! the !est in its magnificent an" progressive "estiny of gro!th an" "evelopment $6# Rist, +,,2%# Nee"less to say, the improvements in the material con"itions of life that too= place in this perio", particularly in the years from +,;; to +,1;, cannot be "enie", at least in the !estern !orl"# 0o!ever, since the +,9/s it has become increasingly evi"ent that the recipe for "evelopment coul" not be exten"e" to everyone, "espite the universalist claims of the !est $)# *atouche, +,,+, .//,%# The "ata !e have at our "isposal in this regar" spea= for themselvesA the 6ross <omestic 4ro"uct $6<4% of the entire African continent is to"ay still aroun" JN of global 6<4# It is no! obvious that Africa, an" many countries an" areas in Asia, have lagge" far behin" an" "o not sho! any ten"ency to catch up# Moreover, on a !orl"!i"e level the gap in income bet!een the very rich an" the extremely poor is becoming "ramatically !i"er an" !i"er# One "atum !ill suffice to exemplify thisA the annual income of the richest +N of the people on earth is more than the annual income of ;1N of the !orl"Ds poorest populations# The "ifference in incomes bet!een the ./N richest an" the ./N poorest increase" from a ratio of J/A+ in +,2/ to 15A+ in +,,1# $UN<4, +,,,, .//.%+.# The scene !orl"!i"e is increasingly that in !hich !ealth an" !ell being exist alongsi"e a vast panorama of those exclu"e" from the feast of consumer society# Ghatever the figures use" to "ramatise this reality $. billion, 1 hun"re" million people !ho live on less than . "ollars a "ay, or a chil" "ying every five secon"s%, they testify to the fact that not only has the gran" programme of "evelopment not been able to eliminate the plague of poverty, but it has also meant that the fate of the very !ealthy an" that of the poor are becoming "ramatically more an" more "istant# >ven !ithin the rich countries, there are various !ays in !hich people are being marginalise" an" are having to face har"ship, thereby Eoining the ran=s of those !ho are alrea"y ra"ically exclu"e"# There are over +// million ?ne!ly impoverishe"@ people in >urope an" the Unite" )tates $)# *atouche, +,,+%# Is it possible to in"ivi"uate a basic "ynamic that ta=es into account ho! an" !hy it seems that the great "ream of the !estern !orl" of offering continually improving con"itions of material !ell being for all human=in" has not come trueL Accor"ing to ?critics of "evelopment@, such as Ivan Illich $+,1J%, F# 4artant, $+,9.%- 6# Rist, $+,,2%, H# )hiva, $+,99% an" )# *atouche $.//5%, although the picture is un"oubte"ly complex an" con"itione" by the various historical an" political con"itions, the main factor to be hel" responsible for poverty an" exclusion must be sought precisely !here it !as claime" that the solution !as to be foun", that is to say in the policies of gro!th an" "evelopment# This apparent para"ox can, ho!ever, be clarifie" !ithin a systemic approachA as !e have seen, the process of gro!th an" accumulation has a self increasing nature# The ever increasing number of investments of !estern countries since the "a!n of in"ustriali'ation has generate" faster an" faster technological progress, !hich has brought about both increases in pro"uctivity an" continual innovations# 6iven the competitive frame!or= of international mar=ets, it follo!s that those areas !hich have not succee"e" in =eeping pace !ith innovations an" technological progress fin" themselves facing a technological gap that is increasingly "ifficult to be bri"ge"# It is no! clear that pro"uctivity has reache" such levels that a minority is capable of pro"ucing all that the !orl" economies re(uire# The others, those ?ship!rec=e" by "evelopment@ $*atouche, +,,+% $both as in"ivi"uals an" as entire nations%, are unable to ta=e part in this match because they are not efficient an" competitive enough# In the course of time, this competitive a"vantage has been accumulating in structures such as the military, financial, transport an" me"ia institutions, !hich ten" to maintain an" increase the positional a"vantage they have gaine"# If this un"erlying "ynamic has characteri'e" the parabola of "evelopment up to no!, it comes as no surprise that !e are confronte" !ith a polari'e" !orl"
7f#A Unite" Nations <evelopment 4rogramA 0uman <evelopment Report .//., 6eepening 6emocracy in a $ragmented 7orld, available at httpA&&h"r#un"p#org&en&reports&global&h"r.//.&
+.

++

!here the contrast bet!een the centre an" the peripheries is becoming more an" more mar=e"# $*atouche +,,+, )# Amin .//.%# UN<4 "ata sho! ho! ./N of the richest population consumes 9.#1 of !orl" pro"uction- on the other han", the interme"iate 2/N consumes only +;#,# The remaining ./N live on +#5N of global pro"uction# It cannot be "enie" that alongsi"e this self reinforcing "ynamic there are also processes of a self correcting nature, !hich are often labelle" in texts as the so calle" trickle do#n effect# This effect of the "istribution of !ealth is lin=e" to various processesA on a national level, it is principally connecte" to the re"istribution policies of the !elfare state, on the international level, to the re e(uilibrating effects of foreign investments, an" finally to processes of imitation an" learning in peripheral areas# They can explain ho! !ealth an" material !ell being have sprea" !ithin rich countries an" later been exten"e" to some countries $in particular 7hina an" In"ia% giving rise to a ne!, global ?mi""le class@# These processes of negative fee"bac=, ho!ever, "o not seem able to compensate the self increasing polari'ing nature of the gro!th process as such, !hich until to"ay has constitute" the primary process# Furthermore, the more the gro!th self reinforcing "ynamic is free" from any regulating intervention, the greater the polari'ation !ill be# As !e =no!, this is precisely the policy that has been en"orse" by international organi'ations $GTO, IMF, etc#% over the past .; years of uncontrolle" globali'ation#
('( Th! ) t!mic d)namic o" %o itional com%!tition

In the mi" +,1/s, in an innovative text that !as far ahea" of its time, Fre" 0irsch explicitly pose" the follo!ing (uestionA Asi"e from ecological limits $!hich he in"ee" consi"ere" ?uncertain an" in the "istant future@%, are there social limits to gro#th8 $0irsch, +,12%# *et us loo= at !hat he meant# To start !ith, 0irsch intuits that the structure of in"ivi"ualsD preferences un"ergoes transformations of a (ualitative nature !hen their average yiel"s gro!# This is highly interesting from our point of vie! since it foresees the emergence of ne! types of behaviour connecte" to the scale of the process# Observing consumersD behaviour reveals ho!, along !ith the gro!th in the scale of consumption, an increasing amount of a familyDs expenses shifts from the consumption of the ?basic goo"s@ $that are nee"e" to live, eat, clothe themselves, an" so on%, to the consumption of positional goods# ?4ure@ positional goo"s are characterise" by the fact that the !ell being they procure is not tie" to their ?use value@, as in the case of foo", but to their relative scarcity# In other !or"s, !hat is important for positional goo"s is the "ifference bet!een !hat each in"ivi"ual possesses an" !hat others possess# All those goo"s or services that are rightly calle" ?status symbols@ $!hich can be obEects of prestige, exclusive services, but also professional roles of lea"ership, etc#% are goo" examples of positional goo"s# >"ucation is also a possible example of positional goo"s if it is consi"ere" solely as a means of obtaining a covete" EobA as the number of gra"uates increases, so the benefit of having a university "egree "ecreases# Naturally, there is an enormous variety of minor "ifferences, an" each type of goo"s may offer, along !ith the value connecte" to the relationship !ith the obEect itself $for example, the convenience of travelling by car%, a varie" positional connotation $the !ell being tie" to the fact of o!ning a more prestigious, faster car than others%# The systemic nature of positional interaction must be borne in min"A !hile !e can ignore the interaction !ith other in"ivi"uals as far as basic goo"s are concerne" $for example, the pleasure !e get from "rin=ing a glass of !ater can (uite reasonably be consi"ere" to be in"epen"ent of !hat others "o%, the !ell being associate" !ith the consumption of positional goo"s "epen"s on the behaviour of others# In this case, too, as the scale increases, so "o "iscontinuous effects appear# Once a certain threshol" has been crosse", in"ivi"uals become @sensitive@ to interactions !ith their ?neighbours@# This can be seen, for instance, in the case of physical congestion $a traffic Eam%, but also !hen the number of people sharing a certain social area $a street, a beach, a club% increases along !ith gro!ing consumptionA !hen the number of people !ho o!n that obEect, or fre(uent that
+.

place, crosses a certain threshol", in"ivi"ual !ell being (uic=ly "iminishes, !ith the result that in"ivi"uals an" groups move to!ar"s other obEects, places or symbols# In other !or"s, ho!ever impossible it may be to measure exactly the effects on aggregate !ell being, it is in any case clear that positional competitiveness is usually foun" to be a 'ero sum game# Ghat !e are intereste" in here, is not analysing in"ivi"ual behaviours, but rather recognising, behin" the "ynamics of positional competition, !hether an aggregate effect !ith long term self increasing conse(uences emerges# As !e have seen, accor"ing to 0irschDs reasoning, economic gro!th increases positional congestion&competition# 0o!ever, !e might argue that it is also true that positional competition fuels gro!th# It is possible here to "iscern a "ynamic that is in many aspects complementary to that enacte" by enterprises through continual innovationA the "esire to o!n ?uni(ue@ obEects $even !hen millions of the same type are pro"uce"%, chasing after the ?latest mo"el@ or follo!ing the latest tren" in fashion, of !hich mar=eting experts are both interpreters an" mo"ellers $through the lou"spea=ers of the me"ia%, continually stimulates the pro"uction of ne! obEects an" symbols reinforcing economic gro!th# In this !ay the self increasing loop is close", !ith the important aggravation that, unli=e the consumption of basic goo"s, the "eman" for positional goo"s is, in its very nature, essentially unlimite"# At this point, some (uestions of an historical an" anthropological nature concerning the extension, the establishment an" the evolution of positional consumption in each society arise, (uestions that !oul" re(uire a further clarification of the tie that exists bet!een consumption patterns an" social an" economic hierarchies $<umont, +,1/, +,92%# They are (uestions that ma=e the picture more complex than !e can investigate here, an" !hich, for the most part, still a!ait further research# Ge can, ho!ever, outline a fe! steps that are enough to reach a fe! initial conclusions# The nee" for distinction seems to be "eeply roote" in human beings an" is foun" in highly "ifferent cultures $Bour"ieu, +,95%, even the most archaic an" simplestA it cannot, therefore, as such be Eu"ge" to be negative# Ge must, then, see the specificity that characterises positional consumption in to"ayDs in"ustrial societies# )ince ancient times positional consumption has al!ays been connecte" to a social status that usually ha" its roots outsi"e the economic sphere# Nee"less to say, things change" !ith the a"vent of the mar=et society an" mass consumption# Once again !e fin" at the root a problem sensitive to scale# It is obvious that it is only after the a"vent of the mar=et economy, in particular !ith the structural transformation =no!n as ?consumerism@, that a significant part of consumption becomes mass positional consumption, It is on this scale that the circular relationship bet!een gro!th an" positional consumption becomes, ecologically spea=ing, unsustainable# As is =no!n, about ./N of the !orl" population consumes the 9.#1 of !orl" pro"uction# A very significant percentage has so far been exclu"e" from positional competition but is =noc=ing at the "oor an" !ants to ta=e part in the game# No!a"ays the ?interme"iate 2/N of the !orl" population consume only the +;#, of global pro"uction#@ No sophisticate" calculations are nee"e" to conclu"e that it is impossible to exten" the life style of the richest ./N to the ?interme"iate 2/N@, even consi"ering a complete exclusion of the remaining ./N !hen, at the present rate of consumption, the ecological footprint alrea"y excee"s the regenerative capacity of the planet by J/N# From this !e may conclu"e, contrary to !hat 0irsch maintaine", that not only "oes the existence of social limits not "iminish the relevance of ecological limits to gro!th, but that, on a global scale, there is a close relationship bet#een the social and the ecological crises# Furthermore, the continual entry of ne! players in the cycle of positional competitiveness gives rise to a process of the systematic frustration of in"ivi"ualsD expectations, reflecte" in a loss of !ell being# 6etting stuc= in the traffic on the !ay to !or=, spen"ing a significant part of oneDs money an" time on buying obEects that soon turn out to be i"entical to all the others, or stu"ying for years only to fin" oneself unemploye", are simple, every"ay instances of this loss of the (uality of life# 0o!ever, the expenses of the single agents !e have "escribe" are a""e" together in the in"ices of national accounts, !hich therefore sho! a continual rise in consumption an" 6<4# This is not
+J

allA the frustration suffere", together !ith other causes of ecological an" social malaise, !hich !ill be seen belo!, gives rise to a !hole series of expenses of a "efensive nature $for example, costs of safety measures, insurance, health precautions, etc#% !hich, !hile not lea"ing to any improvement in !ell being, contribute to a further increase in 6<4# This helps to explain ho! the processes of positional competition are an important factor in that para"ox of happiness on !hich a gro!ing number of economists have, (uite rightly, concentrate" their attention in recent years# Ge shall return to this point#+J To conclu"e, here are Eust a fe! remar=s concerning 0irschDs analysis# As !e have seen, positional competition in itself "oes not constitute a ?social limit to gro!th@, in the sense that this is not only no impe"iment to gro!th itself but is rather an stimulus for continual expansion $unli=e ?ecological limits@%# Cet the process lea"s, as !e have seen, to a sort of general frustration an" thus in"ee" constitutes more precisely a sort of ?limit to social !ell being@# There can be no "oubt, ho!ever, that positional competitiveness, through the increase in consumption, in"irectly "rives the system to!ar"s ecological limits# The process is un"oubte"ly of systemic significance, for the a""itional reason that positional competitiveness "oes not flare up merely on an in"ivi"ual level, as in the examples above, but among groups, regions an", above all, )tates# The ?arms race@ is the most obvious example of the latter- yet one must not forget ho! much money certain states still invest in or"er that their economies may become ?competitive@ an" reach the stan"ar"s of the !estern !orl" $7hina is Eust one example of this, but one coul" inclu"e others%# In general, if !e thin= of all the economic an" social lengths that to varying "egrees organisations go to in or"er to attain, or "efen", positions of strength, prestige or lea"ership, !e can see the impact of of positional "ynamics an" their "ecisive role in the "ialectics of mo"ern times#
('* Growth and th! di olution o" ocial ti!

If the problem of social unsustainability fin"s its first basic anchorage in the (uestion of poverty an" exclusion, it has by no! become clear in contemporary socio anthropological analysis that it is not possible to restrict oneself solely to the (uestion of e!uity# Marx himself, in his illuminating "escription of the fetishism of commodities, ha" alrea"y un"erstoo" very !ell that a particular structure of social relationships !as hi""en behin" the exchange of goo"s# 7ontinuing this interpretation, but enriche" by the seminal ac(uisitions of early ./th century anthropology on ?primitive@, an" more generally pre in"ustrial, societies $Malino!s=y%, the tren" of thought that goes ?from Mauss to MAU))@, passing through the fun"amental contribution of 3arl 4olanyi, permits us to place the Marxian lesson !ithin a far more extensive socio anthropological bac=groun" an", above all, to set out, alongsi"e ine(uality, !hat !e might consi"er a long term fun"amental social "ynamic# This "ynamic is relate" to the processes by !hich human beings organise themselves into societies an" hence, to use a simplifie" formula, to the ma=ing an" unma=ing of social ties# For 3arl 4olanyi the capitalist process, the ?great transformation@, !hich accompanie" the in"ustrial revolution, implies a "ual process of mercantili'ationA factors of pro"uction, human beings an" nature must be re"uce" to commo"ities# It is the ?mega machine@ that "eman"s thisA a continuous supply of !or= an" natural resources is in fact essential if the pro"uctive process is to be carrie" out regularly an", above all, for huge investe" capital to fin" a"e(uate, relatively safe returns# Thus, in the eighteenth an" nineteenth centuries, the con"itions !ere create" for the exploitation of natural resources an" labour mar=ets# This process resembles a social metamorphosis, that is to say, in systemic terms, the emergence of a ne! form of social organisation, rather than a gra"ual process of natural "evelopment, something that
7fr# B# )# FR>C, A# )TUT:>R, )appiness and .conomics, )o# the .conomy and /nstitutions -ffect 7ell3&eing, 4rinceton University 4ress, 4rinceton, Ne! Kersey, .//.# ># <I>N>R, R# BI)GA) <I>N>R , 7ill %oney /ncrease (ub9ective 7ell3&eing8 )ocial In"icator Research, vol# ;1, n# ., pp# ++, +2,, .//.#
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4olanyi himself stresse"A never before, in earlier economic social organisations, ha" labour been

bought an" sol" as it !as in >nglan" at the beginning of the nineteenth century# A series of institutional mechanisms, of rules strongly enforce" by la!s an" customs, acte" as negative feedback systems, preventing labour, !ith all the importance of social an" symbolic relationships it involve", from being bought an" sol" in the mar=et# This process of reorganisation meant that the reciprocal relationships on !hich tra"itional socio economic systems !ere base", !ere "isban"e" an" replace" by the exchange of goo"s# To use the !or"s of the great economist, the economy a"vances on the "esertification of society# Accor"ing to 4olanyi, this ?great transformation@ involve" the emergence not only of a ne! type of economy but also of a ne! type of society# In the first phase it re(uire" the "isban"ment of the rules an" relationships that characterise" the previous type of social organisation an" of the homoeostatic processes that ensure" its stability# This !as accompanie" by the rise of an almost autonomous sphere of economic relationships, together !ith a successive increase in the complexity of this sphere $specialisation of labour, etc#% !hich en"e" up by "ominating an" shaping them# It is important to un"erstan", as the process of transformation gra"ually reache" full maturity an" the mar=et economy sprea" throughout ne! countries an" to!ar"s ne! societies, ho! this process involve" a progressive "issolution of social ties# As has been sho!n by the pioneering !or= of Marcel Mauss $+,,/, +st e"# +,..%, an" by the stu"ies of the %ouvement anti3utilitariste dans les sciences sociales $MAU))% !hich he inspire", $in particular of A# 7aill8, K#T# 6o"bout an" )# *atouche%, !hat characteri'es tra"itional societies is the threefol" obligation of giving, receiving an" reciprocating $6o"bout 7aill8, +,,9%# In other !or"s, it is through the multiplication of giving an" ta=ing that social ties are maintaine" an" strengthene"# In contrast, !hat characteri'es mar=et relations is their impersonal nature# Mar=et relationships are base" on !hat economists call ?exchange of e(uivalents@# The e(uivalence of !hat is exchange" ma=es it possible for mar=et relationships to cease at the same time as the exchange ta=es place, therefore !ithout any personal ties being forme" as a result# As Milton Frie"man, the 7hicago school i"eologist of neoliberalism, cleverly sai"A ?In the great global mar=et it is not necessary to =no!, let alone to sympathise !ith, one another#@ This fun"amental characteristic of the mar=et offers significant a"vantages# First of all, it has permitte" an extraor"inary multiplication of the number an" types of goo"s exchange"A it has been calculate" that in the city of Ne! Cor= the consumer can choose among a hun"re" thousan" million "ifferent types of goo"s# Together !ith the brea= up of tra"itional social ties, this has meant for many people an increase in personal free"om# 0o!ever, !hat is not normally mentione" is that there is another si"e to the coinA the sprea" of mar=et relations is accompanie" by a progressive "issolution of social ties# This process further increase" in spee" from the early +,9/s along !ith neoliberalism an" the globalisation of the mar=ets, as many sociological stu"ies have recognise"# In BaumanDs interpretation $.//;, .//1%, the "isintegration of social ties to"ay can be seen in the form of social li!uidity# It is not merely by chance that mo"ern, li(ui" society is ?a consumer society@, that is to say, a society in !hich all things, goo"s an" people are treate" as consumer obEects, hence as obEects that lose their usefulness, appeal an", finally, their value very (uic=ly# *i(ui" society is thus a mobile, transient, precarious society !here anything of !orth soon changes into its contrary, human beings an" their relationship inclu"e"# All in all, accor"ing to BaumanDs "escription, mo"ern society reaches levels of the "isintegration of social ties that !ere hitherto un=no!n# This is not to "eny that even mo"ern, li(ui" societies, alongsi"e this fun"amental, long term process, present compensatory "ynamics $negative fee"bac=s%# >ven li(ui" societies present ne! forms of socialisation but in this case, too, !e believe that the ?primary@ process, lin=e" to the all pervasive nature of the mar=et, is moving to!ar"s a greater social li(ui"ity# In conclusion, the process !e have "escribe" permits us to formulate a fe! hypotheses about the relationship that it has !ith other social processes of some significance to us#

+;

First of all the process of the progressive "issolution of social ties may be seen as a common frame!or= for "ifferent =in"s of social malaiseA a loss of satisfying human relationships, a loss of security $Bec=, +,99, .//,%, precarious con"itions of life an" !or=, problems connecte" to migration an" "rug abuse are Eust a fe! example of problems that social scientists split into "ifferent categories but !hich can be tie" to the same long run historical process# The "ynamic of the progressive "issolution of social relationships may in its turnA
+# be significantly responsible for the loss of !ell being that contemporary societies sho!, .# lea" to a loss of resilience of social organi'ation !hen face" !ith external stress $such as

economic or ecological crises%# J# offer us a first clue to comprehen"ing !hy contemporary societies seem to sho! very little reaction !hen confronte" !ith the multi"imensional crisis !e are facing+5# The first point "eserves a fe! specific consi"erations#
Th! %arado+ o" ha%%in!

Basically, researchers have encountere" a situation in !hich, in the face of an increase, even a substantial one, in income per capita, subEective !ell being has not gro!n, or has even "iminishe"# More precisely, the in"ex calculate" in this !ay has "iminishe" in the U)A from .#5 to .#. in the years from +,52 to +,,+ compare" to an increase in income per capita of .;/N over the same perio"# >ven more stri=ing results concern Kapan, !here !ith increases in per capita income of 2//N, from +,;9 to +,,+, the number of people !ho state that they are ?very happy@ has remaine" essentially unchange"# If !e consi"er the ten most a"vance" countries, !e can conclu"e that none of them present a positive correlation bet!een income per capita an" the in"ex of subEective !ell being, !hile t!o of them, the U)A an" Belgium, sho! a significantly negative correlation $3enny, +,,,- <iener an" )uh, +,,1, <iener, .//2%# )tan"ar" economic theory seems unable to encompass this para"ox, !hich, on the other han", may be easily explaine" !ithin a complex approach# As long as the economic process !as in its initial stages of "evelopment, !hen the pressure on ecosystems !as lo!, consumption consiste" mostly in basic $private% goo"s an" positional interaction !as on the !hole !ea=, it coul" generally be assume" that gro!th in income meant higher subEective !ell being# Cet !hen a certain scale threshol" is crosse" an" the system enters !hat !e might call a ?full !orl"@, !here as a result of the gro!th both of the economy an" of the population the pressure on ecosystems re"uce their capability to support life an" the economic activities, the "issolution of social ties a"vances an" positional competition becomes more intense, it is not surprising that further gro!th is associate" !ith lesser subEective !ell being# In other !or"s, it is not surprising that significant mo"ifications in ecological, economic an" social structures $the fun"s, in 6 RDs sense% may pro"uce even irreversible changes in the ecological, economic an" social flo!s&services an" hence in the en9oyment of life $or bem vivir% of a certain social organisation# This, at least, is the hypothesis !e propose here# From a systemic point of vie!, "espite the fact that research in this perspective is only Eust beginning, it seems fairly clear by no! that the stan"ar" theory is ina"e(uate to "eal !ith this issue in at least t!o aspectsA
This type of explanation, !hich un"oubte"ly re(uires further research, must be consi"ere" complementary to the tra"itional explanation base" on the material con"itions of the population# 7ertainly, in a rough comparison !ith the crisis in the +,J/s, the con"itions of the lo!er class in Gestern countries !hile having significantly !orsene" in relative terms "uring the last J/ years are still much better if compare" to those in the first "eca"es of the t!entieth century# This "oes not mean that the "issolution of social ties, together !ith the transformations in the social imaginary, "oes not play an important role in explaining the "iminishe" social reactions to the present crisis#
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a% On the one han" it assumes that !ell being is associate" !ith the (uantities of goo"s an"

services, !hen it is no! clear that enEoyment of life "epen"s on a complex a"aptation "ynamic 4hedonic treadmill), an" not on the absolute (uantities of goo"s consume" $3ahneman R Tvers=y, .///- <iener .//2%b% Things are probably far more complex than this, as the enEoyment of life is the outcome of a complex interaction among the transformations in the structure of the representations $or preferences&values% an" the changes in the flo!s of goo"s an" services, of an economic, ecological an" social nature# Unli=e !hat is assume" by stan"ar" theory, the system of preferences, or more precisely of representations&imaginary, can in no !ay be consi"ere" to remain unchange" in the course of time# This is un(uestionably a fiel" that has been stu"ie" far less $at least by economists% an" !hich, on the contrary, plays a crucial role in the sustainability game#
Th! ima$inar) ,!tw!!n %o t#mod!rn "ra$m!ntation and m!diatic coloni-ation

As !e have seen before, !hat characterises biological an" social systems, an" "istinguishes them from physical systems, is their capacity to form ?representations@ of the universe in !hich they live# In particular !hat characterises human socio cultural organisations is their ability to negotiate such representations, giving rise to shared representations $<# *ane, <# 4umain, )# van "er *eeu!, 6# Gest, .//,%# In other !or"s, the formation of a shared imaginary is the premise necessary for any common action, 0o!ever, accor"ing to *yotar" $+,1,%, !ith the en" of great narratives an" the a"vent of post3 modern society, any possibility of share" meaning has been lost# As long as religious tra"ition $7hristianity in the !estern !orl"% an", above all, Marxism, offere" a common hori'on of meaning, !ith their heroes an" myths !ith !hich people coul" i"entify, it !as not "ifficult to ta=e up a stan"point an" see a sense in !hat they "i"# All this, at least from the +,1/s, has "isappeare", or someho! lost its influence on the social imaginary# The post mo"ern imaginary is polymorphic an" fragmente", !here (uotations replace the great narratives, an" the multiplicity of co"es an" forms substitutes the universalism that characterise" the great emancipatory proEect of mo"ernity# 0o!ever much the post mo"ern con"ition is characterise" by an un"eniable free"om an" variety of expression, it camouflages at the same time the "eeper reasons for fragmentation an" "epen"ence $Mattelart, +,,,, .//+%# *et us try to s=etch an outline of some of the "ynamics that may be hel" responsible for this process of transformation# Gith respect to the long term processes mentione" above, !e might suggest the hypothesis that the fragmentation of the imaginary is first of all connecte" to the "issolution of the social ties that characterises the passage from tra"itional society to that of the mar=et# In other !or"s, it is feasible that the "issolution of the social ties of a tra"itional nature, an" of the symbolic mechanism they possess, constitutes the in"ispensable groun" for the progress of mo"ernity an" its symbols# Furthermore, as <avi" 0arvey $+,,/% acutely note", it is necessary to clarify that the post3 modern condition "oes not appear to be a brea= !ith mo"ernity but rather an ?internal revolution@ !ithin mo"ernity itself, an" en"s up by accentuating its "eepest an" most characteristic traits# Ghat mar=s common experience in all mo"ernity if not uncertainty an" fragmentation, transience an" a sense of chaotic changeL In the !or"s of one of its greatest exponents, ?being mo"ern means fin"ing ourselves in an environment that promises a"venture, po!er, Eoy, gro!th an" the transformation of ourselves an" the !orl", an" yet at the same time threatens to "estroy everything !e have@ $Berman, +,9;, p# .;%# Basically, the passage to post mo"ernity has "one nothing but accentuate this ten"ency# Ge have here, at least in neo Marxist interpretations, a close tie bet!een the common experience of being mo"ern an" the transformations in the un"erlying economic an" social
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structures# Marx "i" not Eust happen to un"erline ho! a fun"amental trait of capitalist economy !as its con"emnation to ceaseless innovation# 0arvey goes even further than this, clearly sho!ing ho! the transformation that mar=s the post mo"ern imaginary is lin=e" to the transition from the For"ist socio economic organisation to the post For"ist one# It is a foregone conclusion that post For"ism, li=e For"ism, "oes not simply mean for 0arvey a system of labour organisation but a ne! system of economic an" social organisation !here public institutions an" civilian society a"apt to the change" con"itions proper to ?flexible accumulation@# The "isappearance of the large factory, the financialisation of economic processes, flexibility on the labour mar=et $part time, temporary or subcontract !or=%, the central role assume" by services $for mar=eting, insurance, lan"e" property, informatics%, the extraor"inary "ifferentiation among pro"ucts an" the acceleration in the rotation of consumer goo"s are inseparable from the specific !ay of thin=ing, feeling an" living in !hat !e call post mo"ern society# If anything, the most surprising fact is the total acceptance of the li(ui"ity an" fragmentation that characterises post mo"ernism, its ?floating an" splashing about in the the chaotic currents of change as if there !ere nothing else@# Ge shoul" not, therefore, be surprise" that !hat characterises, for example, post mo"ern architecture is its ?"eliberate superficiality@, an" it !oul" not be "ifficult to exten" this Eu"gement to many other fiel"s, in particular to fashion, entertainment an" the in"ustry of cultural events $Kameson, +,95, +,,/, +,,+%# 0ence, the fragmentation of the imaginary is $recursively% lin=e" to the multiplication of the artefacts characterising consumer society# Ge must realise that the obEects !e surroun" ourselves !ith, than=s to the time !e spen" #ith them, an" for them, become for each of us a source of meaning an" i"entity, ho!ever restricte" an" fragmentary# There can be no "oubt, !ithout going into this (uestion in "etail, that enterprises employ many resources in or"er to fee" this process# The bu"get relative to mar=eting an" publicity is inferior only to that of military expenses an", as experts in this fiel" are !ell a!are, the might of the me"ia system is such that the efficacy of a ?campaign@ is never (uestione"# 7ontrary to !hat many post mo"ernist intellectuals claim, the capacity of the me"ia system to colonise the imaginary is boun"less $Brune, .//;%# Must all this, therefore, lea" us to the conclusion that there is no share" imaginary in a li(ui" societyL As )erge *atouche !arns us, this !oul" be a thoughtless mista=e $*atouche, .//2, .//,%# In the society of the en" of the great narrative, the consumer imaginary is the only share" imaginary# This apparent para"ox can, ho!ever, be un"erstoo" if !e thin= that the lac= of sense an" the "issolution of great narratives is precisely the groun" on !hich the sprea" of the "ominant imaginary is base"# Of course, some compensatory processes are possible, as some scholars of complex systems also remin" us, attributing ne! functions to the artefacts that issue from the capitalist cornucopia+;A It is possible, for instance, using information technology, originally planne" for military purposes, to promote the formation of social or soli"arity net!or=s, or, Eust to give t!o extreme examples, to use a"vertising against a"vertising $i#e# -dbuster, Casseur de 0ub%# Cet, these reactions are not able to counteract the po!er of the processes of fragmentation an" coloni'ation# There can be no "oubt that homo consumens has an unbelievable free"om of choice at his "isposal, yet the consumer citi'en can ma=e his choices only !ithin pre"efine" frames $6offmann, +,15- *a=off, .//9% an" cannot "etermine ex ante the set of things from !hich to choose $Bauman , .//1%# Technology un"oubte"ly is to be foun" !ithin this set# This means that "ecisions relating to ?ho!@ an" ?!hat@ to pro"uce in a certain area, un"er !hat social an" ecological con"itions, are out of the control of communities, territories an" even states# In other !or"s, the mar=et system promises free"om $on a micro scale% but "iffuses "epen"ence $on a larger scale%# Ge no! come to one fun"amental aspectA the (uestion of the imaginary is clearly closely lin=e" to that of autonomy $7astoria"is, +,91, .//;%, an" autonomy to that of scale#+2# Unfortunately, very
<# *ane et al# spea= in this regar" of exaptive bootstrapping, op cit# 7h# +# Autonomy is essentially ta=en to mean ma=ing oneDs o!n la!s $both on institutional an" economic levels%, self "etermination an" explicit self establishment# Ivan Illich $+,1J%, !ho ha" a significant role in *atoucheIs thought, as in
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little attention has been pai", !ithin both the mainstream an" the Marxist tra"itions, on the fact that "epen"ence an" autonomy are closely lin=e" to the scale of the processesA basically, no autonomy an" no chance of any real participation an" self "etermination are possible in the long chains of global economy# Toward a d!$rowth %!r %!ctiv! There can be no "oubt that in the conflict bet!een economic gro!th an" autonomy, human=in" has chosen gro!th# This has been the history of !estern mo"ern civilisation, an" it has not been the choice of merely a fe! people in po!er, !hose self interests "rove them in this "irection, but a choice, although fre(uently not explicit, that has been !i"ely share" $by enterprises, states, bureaucracies, tra"e unions an" common people themselves%, going to shape the "ominant imaginary of !hich, (uite rightly, *atouche spea=s# This is not to say, ho!ever, that in the ne! context !hich !e shall have to face in the coming "eca"es this "ecision shoul" remain un(uestione"# Although it is far beyon" the aim of this essay to elaborate future scenarios, it is reasonable to imagine that in the face of increase" resource costs $pea= oil, climate change, social conflicts etc#%, not to mention the approaching frame!or= of declining marginal returns in many crucial organi'ations $Tainter, +,99- Gallerstein, .//,- Beinstein, .//,%, it is li=ely that the capitalist system !ill not be able to relaunch another long term phase of gro!th an" global expansion +1# In this critical context, it is important to un"erstan" that the institutions that have been perfectly !ell suite" to the context of long term gro!th !ill fin" themselves having to face an increasingly critical situation# More precisely, if the economic structure base" on competitiveness an" on large scale economic processes, $multinational companies, global institutions base" on free tra"e, etc#% has prove" to !or= ?very !ell@ in an expan"ing economic context, !hose "ominant, share" aim !as the gro!th of material pro"uction, !hen the frame!or= changes, as the sciences of complexity teach us, there !ill be other forms of economic an" social organisation more suite" to the ne! situation# In particular, in a context of global crisis, or even stagnant gro!th, cooperation among "ecentrali'e", smaller scale economic organisations, !ill offer greater chances of success# These organi'ations can lea" the system to!ar"s con"itions of ecological sustainability, more social e(uity an", by involving citi'ens an" territories, even increase the level of "emocracy# It is (uite clear that the aim of ecological sustainability can also be reache" from a "iametrically oppose" processA centrali'ation, increasing social polari'ation an" loss of "emocracy# In both cases it !ill not be possible for the present institutional frame!or= to remain unchange"# In conclusion, although the bioeconomic relationships that !e have recalle" !ill constitute in a certain sense the material frame!or= !ithin !hich future choices !ill be ma"e, it !ill be social "ynamics, an" above all imaginary representations, that !ill play a crucial role in "etermining !hich path, among the various possible scenarios, human=in" !ill follo!# Ghat is by no! certain is that if the analysis propose" here is correct, any blan" reforms tie" to policies of sustainable "evelopment !ill not be enough to overcome the crisis- rather, it !ill be necessary to imagine a profoun" revision of the ecological, social an" cultural con"itions of the pro"uction of !ealth# In other !or"s, it !ill be necessary to ris= a transition to!ar"s a sustainable degro#th society#

many other "egro!th thin=ers, preferre" the term conviviality, but the basic i"ea is the sameA a convivial society is one that maintains control over its o!n tools, in other !or"s, one that "eci"es ho! an" !hat to pro"uce !ithout "elegating "ecisions to experts or representatives# +1 To consi"er these points, even briefly, !oul" initiate a very lengthy "ebate that goes far beyon" the scope of the present !or=#

+,

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