Group items tagged

However, a greater concern lies in the notion of climate change itself. Climate change is in essence one kind of nature-society relationship, in which humans influence the climate through greenhouse gas (particularly CO2) emissions, and the climate strikes back by heating up and going crazy at times. This can be further simplified into a battle between humans and CO2: reducing CO2 guards against climate change, and increasing it aggravates the consequences. This view is anchored in scientists’ recommendation that a ‘safe’ level of CO2 should be at 350 parts per million (ppm) instead of the current 390. Already, the need to reduce CO2 is understood, as is evident in the push for greener fuels, more efficient means of production, the proliferation of ‘green’ products and companies, and most recently, the Cancun talks.

So can there be anything wrong with reducing CO2? No, there isn’t, but singling out CO2 as the culprit of climate change or of the environmental problems we face prevents us from looking within. What do I mean? The enemy, CO2, is an ‘other’, an externality produced by our economic systems but never an inherent component of the systems. Thus, we can declare war on the gas or on climate change without taking a step back and questioning: is there anything wrong with the way we develop?  Take Singapore for example: the government pledged to reduce carbon emissions by 16% under ‘business as usual’ standards, which says nothing about how ‘business’ is going to be changed other than having less carbon emissions (in fact, it is questionable even that CO2 levels will decrease, as ‘business as usual’ standards project a steady increase emission of CO2 each year). With the development of green technologies, decrease in carbon emissions will mainly be brought about by increased energy efficiency and switch to alternative fuels (including the insidious nuclear energy).

Thus, the way we develop will hardly be changed. Nobody questions whether our neoliberal system of development, which relies heavily on consumption to drive economies, needs to be looked into. We assume that it is the right way to develop, and only tweak it for the amount of externalities produced. Whether or not we should be measuring development by the Gross Domestic Product (GDP) or if welfare is correlated to the amount of goods and services consumed is never considered. Even the UN-REDD (Reducing Emissions from Deforestation and Forest Degradation) scheme which aims to pay forest-rich countries for protecting their forests, ends up putting a price tag on them. The environment is being subsumed under the economy, when it should be that the economy is re-looked to take the environment into consideration.

when the world is celebrating after having held at bay the dangerous greenhouse gas, why would anyone bother rethinking about the economy? Yet we should, simply because there are alternative nature-society relationships and discourses about nature that are more or of equal importance as global warming. Annie Leonard’s informative videos on The Story of Stuff and specific products like electronics, bottled water and cosmetics shed light on the dangers of our ‘throw-away culture’ on the planet and poorer countries. What if the enemy was instead consumerism? Doing so would force countries (especially richer ones) to fundamentally question the nature of development, instead of just applying a quick technological fix. This is so much more difficult (and less economically viable), alongside other issues like environmental injustices – e.g. pollution or dumping of waste by Trans-National Corporations in poorer countries and removal of indigenous land rights. It is no wonder that we choose to disregard internal problems and focus instead on an external enemy; when CO2 is the culprit, the solution is too simple and detached from the communities that are affected by changes in their environment.

We need hence to allow for a greater politics of the environment. What I am proposing is not to diminish our action to reduce carbon emissions, for I do believe that it is part of the environmental problem that we are facing. What instead should be done is to reduce our fixation on CO2 as the main or only driver of climate change, and of climate change as the most pertinent nature-society issue we are facing. We should understand that there are many other ways of thinking about the environment; ‘developing’ countries, for example, tend to have a closer relationship with their environment – it is not something ‘out there’ but constantly interacted with for food, water, regulating services and cultural value. Their views and the impact of the socio-economic forces (often from TNCs and multi-lateral organizations like IMF) that shape the environment must also be taken into account, as do alternative meanings of sustainable development. Thus, even as we pat ourselves on the back for having achieved something significant at Cancun, our action should not and must not end there. Even if climate change hogs the headlines now, we must embrace more plurality in environmental discourse, for nature is not and never so simple as climate change alone. And hopefully sometime in the future, alongside a multi-lateral conference on climate change, the world can have one which rethinks the meaning of development.

Arguing that governments can pick winners, Professor Chang urges us to reclaim economic planning, not as a token of centrally-planned communism, but rather as the simple reality behind our market economies today:

Capitalist economies are in large part planned. Governments in capitalist economies practice planning too, albeit on a more limited basis than under communist central planning. All of them finance a significant share of investment in R&D and infrastructure. Most of them plan a significant chunk of the economy through the planning of the activities of state-owned enterprises. Many capitalist governments plan the future shape of individual industrial sectors through sectoral industrial policy or even that of the national economy through indicative planning. More importantly, modern capitalist economies are made up of large, hierarchical corporations that plan their activities in great detail, even across national borders. Therefore, the question is not whether you plan or not. It is about planning the right things at the right levels.

Drawing a clear distinction between communist central planning and capitalist 'indicative' planning, Chang notes that the latter: ... involves the government ... setting some broad targets concerning key economic variables (e.g., investments in strategic industries, infrastructure development, exports) and working with, not against, the private sector to achieve them. Unlike under central planning, these targets are not legally binding; hence the adjective 'indicative'. However, the government will do its best to achieve them by mobilizing various carrots (e.g., subsidies, granting of monopoly rights) and sticks (e.g., regulations, influence through state-owned banks) at its disposal.

Chang observes that: France had great success in promoting investment and technological innovation through indicative planning in the 1950s and 60s, thereby overtaking the British economy as Europe's second industrial power. Other European countries, such as Finland, Norway and Austria, also successfully used indicative planning to upgrade their economies between the 1950s and the 1970s. The East Asian miracle economies of Japan, Korea and Taiwan used indicative planning too between the 1950s and 1980s. This is not to say that all indicative planning exercises have been successful; in India, for example, it has not. Nevertheless, the European and East Asian examples show that planning in certain forms is not incompatible with capitalism and may even promote capitalist development very well.

As we have argued before, the current crisis raging through Europe (in large part caused by free-market economics), forces us to reconsider our economic options. More than ever before, now is the time to rehabilitate indicative planning and industrial policy as key levers in our arsenal of policy tools.