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Eradicating Poverty
1.24.2.7 Strategies to Eradicate
Poverty: An Integral Approach To Development
(This paper was published in The Encyclopedia of Lifesupport
Systems, UNESCO, 2002)
Roar Bjonnes, freelance writer; co-founder of Center for Sustainable
Villages; fellow at the PROUT Research Institute, Ashland, Oregon,
USA; contributing editor of New Renaissance, Germany; former
editor of Common Future and Prout Journal; published numerous
articles in newspapers, books, and magazines in Europe and the
United States.
Key Words
Economic disparity, material poverty, spiritual poverty, basic
necessities, psycho-economic exploitation, PROUT, purchasing
capacity, economism, material progress, neo-liberal
development, sustainable development, economic liberalism, spiritual
progress, neo-humanism, consumption economy, consumer economy,
cooperatives, decentralized economy,
economic democracy, self-sufficiency.
Contents
1. Introduction
2. Global Poverty and Inequality
2.1 Poverty: A Rising Tide
3. Toward a Broader Definition of Poverty
3.1 Beyond Facts and Statistics
3.2 Impoverishment of People and Culture
3.3 Child Labor: Beyond the Myths
4. Two Economic Myths
4.1 The Myth of GNP
4.2 The Myth of Per Capita Income
5. The Limits of the Development Paradigm
5.1 The Development Partition
5.2 The Failure of Economism
5.3 Economic Development and the Pooring of the Environment
5.4 Five Reasons Why Development Has Not Eradicated Poverty
6. Toward Sustainable Economics
6.1 Questioning Current Economic Assumptions
6.2 The Need for New Models of Development
6.3 Two Forms of Sustainable Development
6.4 Alternative Development Models
7. Economics as if All Living Beings Mattered
7.1 Toward New Economic Values
7.2 Cosmic Inheritance
7.3 Spiritual Progress
7.4 Neo-humanism
8. Beyond Poverty: Two Strategies Toward Eradicating Poverty
8.1 Short Term Strategy
8.2 Long Term Strategy
9. Conclusion
Glossary
material poverty--lack of basic human needs usually required
for survival within one's society
spiritual poverty--a psychological state, generally among the
affluent, expressed as a constant hunger for more material things;
a sense of alienation, loneliness, and spiritual emptiness
basic necessities--human needs required for survival, i.e. clothing,
shelter, medical care, food, education, and employment
psycho-economic exploitation--when the use of advertisement or
other propaganda makes indigenous populations believe their own
culture, dress, food, or language is inferior and thus become easy prey for economic exploitation by outsiders
PROUT--socio-economic theory that calls for a society's dynamic
and balanced use of material, mental and spiritual resources
within the context of a strong ecological ethic
purchasing capacity--an individual's economic capacity to purchase
material goods in one's society
economism--a worldview that defines progress in material terms
only, i.e. a country's level of civilization is determined based
on its ability to produce material goods
material progress--a gradual increase in the production and consumption
of material goods; an increase in the quality of material goods,
often with detrimental side-effects to human culture and the natural world
economic liberalism--economic paradigm that promotes free markets
and globalization to the detriment of local economies, belief
that sustained economic growth is the foundation of human progress; also termed neo-liberalism
spiritual progress--a gradual increase in inner well-being, peace
and harmony that culminates in a state of enlightenment and bliss
neo-humanism--spiritual philosophy that expands humanism to include
the welfare and existential rights of animals and plants; sees
all of existence as bound together in an ecology of consciousness
consumption economy--economy based on production of material
goods according to human needs rather than economic profit
consumer economy--economy based on production of material goods
according to the human desire for economic profit
decentralized economy--the opposite of a centralized economy,
it signifies a small-scale, localized economy designed for the
welfare of both people and environment
1. Introduction
Poverty has many causes and expressions-- including political,
environmental, educational, cultural, and spiritual--economic
reform is therefore not a panacea. To eradicate poverty, we must instead develop a multidimensional set of remedies. Most
importantly, we must realize that economic growth is not an end
in itself, it is simply the means by which civilization can advance and sustain the cultural and spiritual
values of individual and society.
Despite tremendous advances in technology, economic development,
and an increase in global wealth, the economic disparity between
rich and poor has grown dramatically over the past 30 years. Growing numbers of people, primarily in the Southern
hemisphere, do not have adequate access to life's basic necessities--food,
water, shelter, education, healthcare and employment. But economic poverty is not the only form of
affliction that bankrupts human life. For among the affluent
fifth of humanity--the car drivers, the internet surfers, and the throwaway buyers; in short, all those with access to
the fruits of the global economy--another form of poverty is
on the rise: the poverty of affluence, the poverty of the spirit. And, in an ironic twist of fate--the more the global
economy tries to feed the social, psychological and spiritual
hungers of the affluent with an ever-increasing array of material goods, the more the poor people of the South are effected, the
more the environment suffers.
Therefore, to many of those who are concerned about the fate
of humanity and the earth, the issue that looms larger and larger
is this: how can we create a society that is free from poverty--both material and spiritual--and how can we do this
without destroying the earth we live on in the process? In other
words, since the dominant neo-liberal economy has failed us so utterly in eradicating poverty, what can we replace
it with?
The influential, UN sponsored Brundtland Report, issued in 1987,
declared that the answer is "sustainable development."
Now, more than a decade later--as both material and spiritual poverty has increased dramatically--it has become evident
that deeper solutions are needed. Because, as sustainable development
has become increasingly part of the global discourse, it has also maintained the fatal flaws of the neo-liberal
development paradigm.
We need to move "beyond sustainable development" toward
a spirit-centered vision of progress and economic prosperity.
We need a development model that is life-centered rather than matter-centered; one that grows from local communities,
that is cooperative rather than competitive, one that shares
wealth equitably, maintains harmony with the earth, protects local markets, vitalizes local cultures, and makes spirituality
the defining context of progress.
2. Global Poverty and Inequality
2.1 Poverty: A Rising Tide
The Universal Declaration of Human Rights states that "everyone
has the right to a standard of living adequate for the health
and well-being of himself and of his family, including food, clothing, housing and medical care and necessary social
services." Despite the growing globalization of economic
and political affairs, for most of humanity today, these rights have become increasingly inaccessible.
Indeed, the combined accumulated wealth of the three richest
individuals is greater than the combined gross national product
(GNP) of the 48 poorest countries, or a quarter of the world's nations.
Despite promises of greater equality by many politicians and
economists, there has instead been a tremendous increase in economic
inequality over the last 30 years. According to the UN's Human Development Report (1998), in 1960, the income of
the richest countries was 30 times greater than that of the world's
poorest countries. By 1995 this income disparity had increased to 84 times. In over 70 countries, per
capita income is lower today than it was 20 years ago. And according
to World Bank sources in 1999, almost three billion people--half the world's population, live on less than
two dollars a day.
Despite the conventional belief that the world's economy has
experienced soaring economic outputs during the past 30 years,
the ranks of the world's poor has continued to increase dramatically. Some 1.5 billion people now meet Robert McNamara's
1978 definition of absolute poverty: " a condition of life
so limited by malnutrition, illiteracy, disease, squalid surroundings, high infant mortality, and low life expectancy
as to be beneath any reasonable definition of human decency."
The dismal reality of global poverty and hunger is even more
disquieting when considering that goods and foods are more abundant
than ever before. Yet the number of people
without adequate shelter and enough purchasing capacity to buy
decent food is growing. Clean drinking water is another growing
problem. According to the Institute for Food and
Development Policy, it is estimated that almost a third of all
people in developing countries lack sufficient drinking water.
A fifth of all children receive insufficient intake of calories
and protein, and two billion people--a third of the human race--are
suffering from anemia.
Although 30 million people die of hunger each year and 800 million
suffer from malnutrition, the world's food supply is abundantly
high. "In fact," writes Ignacio Ramonet in the
French newspaper Le Monde Diplomatique, "food products have
never been so abundant." Indeed, according to the Institute
for Food and Development Policy, there is enough food
produced in the world today to supply each citizen with at least
2,700 calories per day. Millions of people, however, do not have
the ability to purchase and consume enough food to
avoid malnutrition and hunger.
Poverty and economic inequality are not just problems faced by
poor nations. Amid the food bounty of the world's richest nation--the
United States--millions of children's growth
are stunted by malnutrition. With its unparalleled industrial
and service economy, there are millions of unemployed and homeless
people in the United States. Millions more work full
time jobs while still remaining in poverty.
Economic inequality and material poverty are global problems
facing people in both industrial and pre-industrial countries.
Only in some countries, such as Sweden, Norway, Iceland,
and a few other countries, where economic rights are seen as
integral parts of democracy, has abject poverty been eradicated.
3. Toward A Broader Definition of Poverty
3.1 Beyond Facts and Statistics
To further understand the daunting economic inequality in the
world, let us look at a few staggering facts gathered from the
United Nation's Human Development Report in 1998 and
1999. This data illustrate the growing inequity between rich
and poor, between the North and the South.
An analysis of long-term trends shows that the economic disparity
between the richest and poorest countries was about :
3 to 1 in 1820
11 to 1 in 1913
35 to 1 in 1950
44 to 1 in 1973
72 to 1 in 1992
84 to 1 in 1998
--The 48 poorest countries in the Southern hemisphere account
for less than 0.4 per cent of global exports.
--The combined wealth of the world's 200 richest people hit $1
trillion in 1999; the combined incomes of the 582 million people
living in the 43 least developed countries is $146
billion
--According to an Oxfam report, the lives of 1.7 million children
will be needlessly lost this year [2000] because of failure to
increase the standard of living of poor people.
As important as these economic facts are in illustrating the
disparity between rich and poor people today, it is important
to understand that poverty does not simply signify a threat
to one's physical existence (subsistence poverty), but, rather,
the failure to achieve the standard of living that is usual in
one's own society. In other words, as Godfried Engbersen,
professor of sociology at the Erasmus University, Rotterdam,
writes: "[I]f we define those in the bottom 10 or 20 percent
income bracket as poor, then there will always be poor
people. But the bottom 10 or 20 percent in a very rich country
can be prosperous. The term does not only denote the relative
disadvantage of one group compared with others, it
implies a threshold."
Poverty, in other words, is a relative term that cannot be exclusively
quantified through an economic framework. A farmer in the state
of Kerala, India ( known for its high literacy and
employment rates, its low birth rates, and its environmental
awareness) is considered poor by Western standards. Because of
relatively easy access to healthcare and education,
however, the farmer can be considered "rich" compared
to the landless, slum-dwellers of Bombay. Similarly, a Mexican,
migrant farm worker in California may consider himself
fortunate compared to his poverty-stricken relatives living in
a shantytown across the border.
If we compare the Indian farmer with the Mexican farm worker,
strictly on the basis of per capita income, the Mexican farmer
comes out ahead. However, if we use the broader
definition of poverty as described above, the Kerala farmer is
better off. Although he may never be able to afford, or even
need a car, by the standards of Kerala, he has all the basic
requirements in order to lead a relatively healthy and fulfilling
life, including a supportive community and family. Yet, while
the Mexican farm worker drives a car and earns many
times more than the Kerala farmer, by the standards of America,
he is simply "a poor, migrant farm worker." His work
is seasonal; his home is a shack shared with five other men;
he
has no health benefits; he is illiterate; he cannot afford to
rent an apartment or a house. Most importantly--as an economic
refugee--he is separated from his family and his
community. In short, his life has all the trademarks of poverty.
By thus broadening the definition of poverty, a household can
be considered poor when its income is below a certain level depriving
its members of material and other conditions
necessary for proper participation in their society.
3.2 Impoverishment of People and Culture
Current development practices often creates poverty where there
was virtually none before. Ladahk, or "Little Tibet,"
is a case in point. When Swedish linguist Helena
Nordberg-Hodge was introduced to a remote Ladakhi village by
a young man named Tsewang in 1975, she was surprised to see that
all the houses in the village were both large and
beautiful. She therefore asked Tsewang where the poor people
lived. "We don't have any poor people here," he said,
even though, according to Western, capitalist development
standards, the village would be considered "poor."
Almost a decade later, however--after Ladakh had received its
share of Western- style development-- Nordberg-Hodge overheard
the same man talking to some tourists. "If you could only
help us Ladahkis," Tsewang said, "we're so poor."
In fact, over a period of two decades, Ladahk had indeed become
poor in various ways. The people had become psychologically impoverished
by feeling inferior to the newly
introduced Western lifestyle after being invaded by the messengers
of development--tourism, film, and advertisements. The new cash
economy undermined their traditional barter
system, which in turn, for the first time, created unemployment
and a widening gap between rich and poor. The sudden introduction
to pesticides, hybrid seeds and new growing
methods, caused the precarious ecology of this arid area to become
imbalanced. According to Nordberg-Hodge: "I have watched
the appearance of unemployment and inflation and a
dramatic rise in crime; I have watched population levels soar,
fueled by a variety of economic and psychological pressures;
I have watched the disintegration of families and
communities; and I have watched people become separated from
the land; as self-sufficiency is gradually replaced by economic
dependence on the outside world."
During the past 30 years, the South's complex, cultural diversity
has systematically been assaulted and impoverished by a new,
commercial and global monoculture based on
pop-music, violent films and seductive advertisements. "Westernized
Indian films have," according to Nordberg-Hodge, "had
a profound impact on young Ladakhis, making them feel
ashamed of their own traditions and values."
This sudden imposition of a foreign culture upon another has
become quite extensive through the globalization of the corporate
economy. The newly adopted "pseudo-culture" often
makes the indigenous peoples believe that their own culture is
"inferior." Thus they become easy prey for economic
exploitation. P. R. Sarkar, propounder of the Progressive
Utilization Theory (PROUT), terms this form of economic bondage
"psycho-economic exploitation."
The eradication of poverty must therefore be seen in a larger,
cultural context. That is, to maintain and strengthen local culture,
language, and indigenous values is integral to the
struggle against hunger, unemployment and loss of natural resources.
3.3 Child Labor: Beyond the Myths
The International Labor organization's "aim is to work towards
the progressive elimination of child labor by strengthening national
capacities to address child labor, and by creating a
worldwide movement to combat it." Most people in the North
would agree that this is a noble goal. However, a closer look
will show that people in the South do not all agree,
especially not the poor children and parents involved. Just ask
Khalid. You can meet him at the website of Save the Children
Fund (www.oneworld.org/scf). Here he'll tell you that
"most people in my village stitch footballs. If there was
a ban on child labor, most of [us...] would go hungry."
Prompted by recent campaigns against child labor that backfired
badly, Save the Children Fund (SCF) have had to rethink their
strategy. In 1994 the US threatened to boycott
garments made by children in Bangladesh where 50,000 children
consequently lost their jobs only to end up as beggars and prostitutes.
According to Rachel Marcus of SCF, the
boycott had good intentions but "in Bangladesh it was seen
as a case of Westerners selectively applying universal principles
to a situation they did not understand."
What organizations such as SCF is starting to understand is that
"child labor," in which children are exploited by multinational
corporations, is merely a symptom of an unjust
economic system that profits on the labor of the poor. In the
words of an Indian NGO: "Only a total destruction of the
monstrous economic system that dominates the earth today
will help us put an end to child labor and starvation. This is
what all well-wishers and friends of children in India should
strive for."
Recent statistics have revealed that only five percent of all
the world's child laborers are involved in sweatshops run by
multinationals. The rest are working in the rice fields in India,
in small artisanal businesses in Nepal, as herders in Africa,
or as apprentices in Pakistan, in businesses which their families
have run for generations. Thus many researchers and
activists are now claiming that to ban such work is to destroy
local cultures and economies, which would then simply facilitate
the growth of the global market.
The issue of child labor thus illustrates the complex tapestry
of reality we call "poverty." It forces us to forego
our Westernized assumptions and to ask questions such as: What
is
culture? What is a local economy? What is the role of children
in a local culture and economy? What is work and what is education?
For Nordberg-Hodge these questions are
important, because the issue cannot be simply defined: "There
is a blanket assumption that wherever children work, it is an
abuse. But working with the family and community helps
to shape their identity, gives them a vital role in life and
a feeling of responsibility and belonging."
4. Two Economic Myths
4.1 The Myth of GNP
Today the most widely used indicator of a country's economic
health is the gross national product (GNP). It is almost universally
accepted that a climbing GNP means that a
country's people are becoming better off. But is this really
true?
When Ladakh was a "poor," sustainable subsistence economy,
with a very low GNP, its frugal, yet culturally advanced inhabitants
lived more in accord with the United Nations's
declaration of human rights than in the years since Western development
arrived. In other words, an increased GNP caused by Western-style
development did not, according to
Nordberg-Hodge, increase the overall well-being of the Ladakhi
people. Neighboring Bhutan is also an example of the limits of
describing a society's standard of living in strictly
economic terms. In this Buddhist nation, people provide their
own basic needs and live a life of relative leisure, which enable
them to produce great art and music. The World Bank,
however, describes Bhutan as one of the poorest countries in
the world, simply because its gross national product (GNP) is
one of the lowest in the world.
Another limiting factor of using GNP as a gauge is that it does
not account for the environmental deterioration caused by development.
As forests are cut and rivers polluted, no loss
appears in the national accounting of GNP.
The predominant development paradigm's one-dimensional view of
progress hails that the regular and eternal improvement of the
human condition can largely take place through the
exploitation of nature and the acquisition of material goods.
This view--widely favored by economists and development experts--often
masks the negative economic, environmental,
social, and cultural impacts of industrial growth. Moreover,
the industrial nations' rhetoric, as often expressed by the World
Bank and the International Monetary fund (IMF)--that
increased, capitalist development is the only solution to eradicate
poverty--has often proven to be false. As the examples and facts
above have shown, development programs may
have increased a country's GNP, but at the same time lowered
the standard of living for a large percentage of the population,
as well as increased the impoverishment of both
environment and culture.
4.2 The Myth of Per Capita Income
In the United States per capita income is currently $48,000--the
highest in the world. However, this national average income conceals
the rampant disparity between rich and poor
Americans. It conceals that about half of all American households
earn less than $35,000 a year--not enough money for most people
to buy a home. It conceals that millions of
American households earn less than $12,000 a year. It conceals
that nearly 40 million Americans do not have medical insurance.
It conceals that Second Harvest, the largest hunger
relief organization in the country, serves more than 25 million
people annually. An increase in per capita income is, therefore,
not sufficiently reliable as a scientific index to determine
the standard and progress of a particular country.
Instead, suggests Sarkar, a person's purchasing capacity is a
far better index for how one's economic needs are met. "Per
capita income," writes Sarkar, "is not a proper indication
of
the increase in the standard of living...because, while people
may have very high incomes they may not be able to purchase the
necessities of life. If per capita income is low, and
people have great purchasing capacity, they are much better off.
So, purchasing capacity and not per capita income is the true
measure of economic prosperity. Everyone's
requirements should be within their pecuniary periphery or purchasing
capacity."
5. The Limits of the Development Paradigm
5.1 The Development Partition
The rationale behind the linear model of development, as implemented
through economic liberalism today, was first advanced by U.S.
President Harry Truman in his inauguration
speech before Congress in 1949. In his address, Truman spoke
emphatically about the deplorable conditions of the poorer countries,
and he defined them for the first time as
"underdeveloped areas." In one grand, rhetorical sweep,
Truman had created a concept that soon would divide a diverse
world into three neat categories--developed, underdeveloped,
and undeveloped nations--that could effectively further a new
worldview. According to this new vision, all the people of the
world were climbing up the same economic ladder, some
slow, some faster, but all toward the same material goal. On
top of this ladder were the Northern countries, most particularly
the United States, and at the bottom were the countries
of the South, with their hopelessly low GNP's.
5.2 The Failure of Economism
The worldview that Truman so successfully articulated, and which
now has become an accepted and entrenched development model,
may be termed economism. According to this
worldview, a country's level of civilization is based on its
ability to produce material goods--that is, to increase its GNP.
To the society's in the South, who had, for centuries,
advanced a more or less sustainable agricultural economy and
advanced some of the world's most sophisticated cultures, this
model appeared to have little meaning. Yet, according to
the Truman doctrine, these Southern countries were from now on
to be recognized as poor, struggling nations, whose main goal
was to copy the North by climbing to the top of the
ladder of material progress.
Thus economic values superseded all other societal values. According
to Wolfgang Sachs of the German Wuppertal Institute, a society
no longer had an economy, society simply was
the economy. However, this materialistic and one-dimensional
ethos was not always embraced by the countries of the South.
Instead society included a tapestry of functions, ideals,
modes of knowing and cultural legacies that were often diametrically
opposed to a society driven by the streamlined dictates of maximum
economic output.
Consequently, over the past 40 years, the North's development
strategies have caused tremendous cultural upheaval. Thousands
of local or indigenous subsistence cultures have been
decimated during the forced process of joining the global race
toward economism. However, the gap between the so-called underdeveloped
and developed countries has not been
closed. To the contrary, it has widened. In the process, millions
of people have become uprooted from their local environment to
join the poor day laborers or unemployed struggling
to eke out a living in dilapidated and burgeoning shanty-towns
from Mexico City to Calcutta. In short, modern development practices
have been, for the most part, detrimental to
both local economies and local cultures.
5.3 Economic Development and the Pooring of the Environment
The myth that the global economy can continue along the path
it has been following since Truman's speech in 1949 stems in
part from the narrow worldview of economism.
According to the business weeklies and forecasts by economists,
the world's economy is relatively healthy and long term economic
growth prospects are promising. That is,
relatively healthy for those countries with an advanced industrial
or post-industrial economy, fueled, in part, by cheap labor and
raw materials from the South. In Africa and Asia, for
example, the economic prospects for most people are not promising.
But more to the point, when it comes to relate economic demand
levels to the health of the natural world,
economic planners are at a loss. In fact, economic planning,
guided as it is by economic indicators and basing its future
predictions on past performances, have worried little about its
impact or relation to the environment. Economism, in other words,
often do not see the intricate relationship between economic
output and its effect on the global ecosystem. This
shortsightedness has had disastrous environmental consequences
with often equally calamitous consequences to people, their culture
and livelihood.
Some examples of the impoverishment of people and environment
caused by modern development practices:
--It is estimated that almost half of all the rivers in the Philippines
are biologically dead due to mining operations and deforestation
by multinational corporations. In this country,
with an annual per capita income of $680, millions of indigenous
farmers and hunter gatherers have become landless due to erosion
and loss of habitat caused by deforestation. Most
of the wood harvested is exported to other Asian countries, such
as Japan where it is used to make furniture, tooth picks and
chop sticks. Most tropical countries in the world, which
incidentally are the countries with the world's richest biodiversity,
experience problems similar to the Philippines.
--Deforestation is a worldwide phenomenon that has displaced
and impoverished numerous indigenous peoples. "When a timber
company moves into the forest, it doesn't consult us
or pay us any compensation. It has no respect for our holy places
or burial grounds," says Anderson Mutang Urud, leader of
the Malaysian Indigenous People's struggle Against the
Destruction of the Sarawak Rainforest. By the late '80s, the
world's forests were shrinking by an estimated 17 million hectares
each year. As the need for cropland increased--in order
to feed the world's growing hunger for meat, paper, firewood
and lumber--deforestation, dislocation of people, and poverty
in these areas have also increased.
--A typical example of so-called Third World development is a
World Bank funded coal-mining project in the Indian state of
Bihar. This project has caused destruction of tribal
people's land and now threatens the remaining tiger habitats
of India. Massive amounts of foreign capital has flowed into
this area and caused a rapid growth of Mafia activities and
further deteriorated the life of the local people.
--About 70 percent of the 5.2 billion hectares of dry land used
for agriculture around the world is at risk of being turned into
deserts due to the Green Revolution's excessive use of
pesticides, artificial fertilizers, etc. More than one billion
people in 135 countries depend on this land for their survival.
--Initiated in the late 60's, the Green Revolution's goal was
to increase grain yields, and, thereby, to end world hunger in
a few decades. While the Green Revolution indeed has
delivered its promise of higher yields, it has failed to alleviate
hunger. According to the Institute for Food and Development Policy,
there is now more food in the world but also more
hunger. A narrow focus on increasing production--as the Green
Revolution does--cannot alleviate hunger, because it fails to
alter the tightly concentrated distribution of economic
power, especially access to land and purchasing power.
Global development, spearheaded by the World Bank, the International
Monetary Fund and the World Trade Organization, too often serve
the interests of transnational corporate
interests over those of national and local economies, cultures
and environments. This type of development has, in the name of
growth and profit, more often than not, increased the
gap between rich and poor and furthered the deterioration of
the planet's precarious ecology.
5.4 Five Reasons Why Development Has Not Eradicated Poverty
The dominant neo-liberal development model has failed to deliver
its promise of eradicating poverty in the world. Here is a summary
of the the five main reasons:
1. It has failed to bring economic equity. Economists Herman
Daly and John Cobb maintain that development itself contributes
directly to the growth of global poverty: "On the
whole,...development policies in the Third world have made many
landless, filled the vast slums surrounding Third World cities,
and added to the problem of hunger."
2. It has failed to integrate economic and ecological concerns.
Too often we are consuming and destroying our biosystems instead
of living in harmony with them. More to the point,
the materially rich Northern countries extract natural resources
from the biologically rich Southern hemisphere, thereby causing
both economic and environmental breakdown in the
so-called Third World.
3. It has failed to protect local cultures and communities. Multinational
companies generally do not ask the local people for permission
to profit from its extraction of resources from
an area. A typical example is the Choco region of Ecuador were
oil and other natural resource companies have built a destructive
network of roads, colonized and destroyed half of the
country's rainforest, and devastated the lives of thousands of
native peoples.
4. It has failed to establish a global, human security policy,
to bring about human rights, peace and justice. According to
Michael Renner of the Worldwatch Institute: "A human
security policy [must] include...redistribution of wealth, debt
relief, job creation, technology development , more democratic
and accountable governance, and the strengthening of civil
society."
5. It has failed to provide depth of meaning. Official development
policies has expanded the money economy ever more deeply into
every sphere of human life. The increasing hunger
for more material goods and profits has created a world of inequity,
but also an impoverished global culture lacking in deep, human
and spiritual values.
6. Toward Sustainable Economics
6.1 Questioning Current Economic Assumptions
The most basic tenets of free market capitalism or economic liberalism,
which is the predominant economic model today, can, according
to David C. Korten, be described as follows:
--Sustained economic growth, measured by Gross National Product,
is the foundation of human progress and essential to alleviate
poverty
--Free markets are the most efficient and socially optimal way
to allocate resources
--Economic globalization--the free flow of goods, irrespective
of national borders, in an increasingly integrated world market--is
beneficial for all
--Local economies should abandon goals of self-sufficiency and
instead attract outside investors in order to become internationally
competitive
"These tenets," according to Korten, "have become
so deeply embedded within our institutions and popular culture
that they are accepted by most people without question... To
question them openly has become virtual heresy and invokes the
risk of professional censure and career damage in most institutions
of business, government, and academia."
Moreover, the philosophical underpinnings upon which economic
liberalism rests are rarely questioned. Briefly, according to
Korten, these are: 1) humans are motivated by
self-interest; 2) the action that yields the most profit is the
most beneficial to individual and society; 3) competition is
more beneficial than cooperation; 4) human progress is best
measured in consumption, i.e.... those who consume the most contribute
more to progress.
"The moral perversity of economic liberalism," according
to Korten, "is perhaps most evident in what it views as
economic success in a world in which more than a billion people
live
in absolute deprivation, go to bed hungry each night, and live
without the minimum of adequate shelter and clothing." This
moral perversity is even more appalling in light of the
mounting evidence that the recent years increase in poverty and
deprivation is a direct result of economic liberalism's monopolistic
domination of the Third World.
6.2 The Need For New Models of Development
Central to the question of how to eradicate poverty is the question
of which type of development is best suited for the task. According
to the dominant model of development that
arose during the post-War era, economic growth is seen as the
best way to eradicate poverty. Furthermore, economic growth is
best promoted by privatizing community assets,
deregulating markets, removing barriers to free-trade and investment,
and protecting intellectual property rights. However, this model,
as promoted by the so-called developed
nations, has so far failed to eradicate economic inequality,
human oppression, environmental imbalance, and the destruction
of local cultures. In other words, development has failed to
curb the underlying causes of global poverty. Consequently, new
development models have arisen as alternatives to the dominant
model. These new models are often referred to as
"sustainable development."
6.3 Two forms of Sustainable Development
1. As mentioned earlier, the sustainable development paradigm
was first defined by the UN's Brundtland report as "development
that meets the needs of the present without
compromising the ability of future generations to meet their
own needs." Development is defined as "a progressive
transformation of economy and society." Said another way,
sustainable development involves balancing the environmental
demands of human economic activities with the regenerative capacity
of earth's eco-systems. While sustainable
development calls for substantial reforms in the functioning
of the global economy, it does so--in most of its variants--within
the context of the neo-liberal, free-market economy
dominated by transnational corporations, the IMF and the World
Bank.
2. Herman Daly and John Cobb, Jr. advanced a concept often termed
"Strong Sustainability." Their analysis starts out
by pointing out that the Brundtland version leaves the
definition of sustainable development vague in several respects:
(1) development and growth are not clearly distinguished; (2)
needs are not distinguished from luxuries; (3) the
standard of assuring "the ability of future generations
to meet their own needs"assumes that the future generations'
needs can be assessed by the present generation. To give an
operational definition to sustainability, they advocate a system
of capital accounting in which natural capital, and in which
a portion of the income generated through exploitation of
non-renewable resources are invested in developing comparable
renewable resources. These renewable resources would be available
for use by future generations.
6.4 Alternative Development Models
These development models--which also are referred to as sustainable--call
into question some of the core institutions and ideological foundations
of the world economy, such as
growth, centralized economies, unprotected local markets, private
domination of resources, and material increase as the sole measure
of progress.
Post-development--holds the view that development theory is riddled
with the fundamentally flawed assumptions of Western, industrialized
civilization. This very notion of
development is inherently intertwined with the free market conception
of growth as economic expansion, with the acceptance of sovereign
nation-states, with the privileging of
commercial interests over civil society, and with the alienation
of society from nature. As a result, it cannot possibly give
a workable framework for solving the global poverty crisis.
The discourse of development theory must be abandoned, and new
models must be formulated, informed by the traditions of indigenous
peoples, spiritual values, and authentic
regional cultures. Post-development supports the critique that,
as expressed by Vandana Shiva, "development devalued people
by declaring them underdeveloped." Thus,
development promotes a perception of "the Other,"--in
this case, the global poor--instead of asserting humanity's inherent
unity.
Sustainable society--holds the view that sustainable development
as held by the Brundtland Report is inherently unsustainable,
as it calls for dramatic growth in the world economy
in order to eliminate poverty. Gowth on such a scale, according
to founders Justin Lowe and David Brower of Earth Island Institute,
would be "attainable only with cataclysmic costs
to the Earth and the future." At the same time, it recognizes
that the growing income gap between rich and poor societies is
a fundamental problem. To create global equity, while
protecting the planet, will require curtailing overconsumption
by the affluent nations and controlling the exploding population
in poor nations. As "sustainable growth is a
contradiction in terms," humanity's goal should be a sustainable
society, in which the emphasis is not focused on growth, but
on policies that "redefine prosperity, alleviate poverty,
assure justice, give priority to compassion, and recognize that
these goals can only be achieved on a living planet."
Balanced Development--proposed by social theorist Sohail Inayatullah,
and others. Attempts to move away from the language of development
theory by using the ideas of P. R.
Sarkar and his PROUT theory. Calls for a dynamically balanced
use of physical, mental and spiritual resources for the development
of individual and society, and within the context
of a strong ecological ethic. Development is not only balanced
and dynamic, but is progressive; progress being conceptualized
as movement toward spiritual enlightenment.
Grass-roots development--term coined by the New Internationalist
magazine to signify a decentralist approach to sustainable development
in which individuals and local communities
take increasing control over their economic and social destinies,
with a corresponding elimination of the influence of big business
and, for the most part, big governments. This view
has close affinities with the agenda of the bio-regionalists,
who would add the need for local control over culture as well.
People-centered development--popularized by David C. Korten of
the People-Centered Development Forum. Attempts to advance the
emergence of "an awakening civil society,"
particularly as it is seeking expression by progressive citizens
organizations. Suggests that truly sustainable development can
only occur where culture and the institutions of civil
society are strong, local communities exercise economic self-determination,
ecological systems remain vital, and societies are just and economies
equitable. Also asserts that
sustainability must be grounded in the realization that all life
has a single spiritual unity, and that instead of pursuit of
material wealth, we should actualize our spiritual awakening.
Natural Capitalism--proposed by Paul Hawken. Advocates socially
responsible business practices in order to reverse global environmental
and social degradation. This "double
bottom line approach" to economics holds that commercial
activity should generate both financial and social dividends.
Economic reform will occur by holding corporations
responsible for their actions through green taxes and external
cost accountability. The task of this "capitalism with a
green face" is to create new industrial and market designs
that are
"self-actuating as opposed to regulated or morally mandated."
Emerging from these alternative models of development is the
need for a comprehensive theory of development, one which must
address, in integrated fashion, economy, ecology,
society, and spirituality. To establish this new concept of development
in practice, however, will require a fifth element--the political.
All these five elements are today to be found in
the dialog on sustainability and development. But how can they
be brought together in an integral fashion? Through the large
scale integration of political action with the creation of
model community-based socio-economic development projects. These
locally based, small scale model development projects can spearhead
a development movent that can counter
the top-down planning characterized by today's global economy.
Nothing less, it appears, will suffice if we are to replace the
world-wide dichotomy of affluence and poverty with a
more equitable, humane, and ecological economy.
7. Economics As If All
Living Beings Mattered
7.1 Toward New Economic Values
What will be the underlying values of the new economy? David
C. Korten claims that "a sustainable society needs a spiritual
foundation. Why? Because spirituality, not materialism,
is the ultimate foundation of life. Economic liberalism has partly
failed, he claims, because of its denial of the human quest for
inner meaning and meaningful relations. The late British
economist E. F. Schumacher concurs. In his seminal book, Small
is Beautiful, he warned against the unsustainable nature of capitalism's
rampant materialism: "Economy as the
content of life is a deadly illness, because infinite growth
does not fit into a finite world. That economy should not be
the content of life, has been told to mankind by all its teachers;
that it cannot be, is evident today... If the spiritual value
of inner man is neglected, then selfishness, like capitalism,
fits the orientation better than a system of love for one's fellow
beings."
Here Schumacher points out a central dogma in current economic
thinking: that it is possible, even desirable, to fulfill infinite
human longings with finite things. This materialist
philosophy forms the underlying economic doctrine of today's
market capitalism, of our system of unlimited control over productive
property. Put bluntly, it supports the dictum
that selfishness and greed are good, even necessary fuels for
the capitalist engine of growth.
This paradoxical philosophy has resulted in a market system in
which land, food, and intellectual ideas are bought and sold
without restrictions. As we have seen above, this "free
market system" has created an economy of disparity, of unequal
buying power, and of a deep schism between rich and poor. More
specifically, this philosophy grants the concept
of "the divine right of kings" to corporations. In
other words, that corporate owners are ultimately only responsible
to themselves and their shareholders, not to their employees,
nor
to the environment, nor to the human community at large. Finally,
this philosophy grants that unlimited accumulation of wealth
is both positive and a basic human right.
Today it is widely accepted that unlimited exploitation of the
globe's finite natural resources is unsustainable. There is little
support, however, for the idea that an economy based on
unlimited accumulation of wealth, or unlimited control over private
property, may be the direct cause of today's economic and environmental
problems.
Nevertheless, the accelerated accumulation of wealth in the hands
of the few, has caused both economic disparity and environmental
degradation. In short, while there has been an
increase in the unbridled accumulation of wealth--which has resulted
in an increase in GNP and per capita income, particularly in
the Northern countries--there has also been an
increase in the spread of poverty--both in the North, and, particularly,
in the South.
As long as the basic tenet of unlimited hoarding of wealth remains
fundamental to our economy, economic disparity and environmental
degradation will continue. We will continue to
accept as fair and inevitable that economic growth creates concentration
of wealth, on the one hand, and unemployment, displacement of
people and poverty, on the other. Without a
fundamental rethinking of the current economic dogma of private
property rights as an absolute right above all other values,
and that human progress is best measured as increased
material consumption, we cannot create an environmentally sustainable
and poverty-free society.
7.2 Cosmic Inheritance
Economist E. F. Schumacher wrote that "no system or machinery
or economic doctrine or theory stands on its own two feet: it
is variably built on a metaphysical foundation, that is
to say, upon our basic outlook on life, its meaning and its purpose."
The "metaphysical foundation" of economic liberalism
is motivated by self-interest, individual property rights,
and the fulfillment of our material or economic needs.
What, then, should be the basic outlook on life of the new economy?
The spiritual conception of wealth, as described by Sarkar, expresses
a common sentiment among many
alternative development thinkers: "This universe is created
in the imagination of the Supreme Entity, so the ownership of
this universe does not belong to any particular individual;
everything is the patrimony of us all. Every living being can
utilize their rightful share of this property...This whole animate
world is a large joint family in which nature has not
assigned any property to any particular individual." Sarkar
termed this concept of wealth "cosmic inheritance,"
and made clear its implications for economic theory: "The
system of
individual ownership cannot be accepted as absolute, hence [economic
liberalism] too cannot be supported." With a spiritual worldview
as the basis for a new economy, the
psychology of greed and selfishness is replaced with the psychology
of collective welfare and cooperation.
7.3 Spiritual Progress
If the purpose of development--as presently conceived--is to
increase material amenities, then sustainable development will
certainly help us to continue to consume, but it will not
help us attain inner fulfillment. Therefore, sustainable spirituality--the
idea that true progress is movement toward inner fulfillment,
toward self-realization-- must be embraced by the
sustainable development program. Spiritual progress subsumes
material development, as people cannot pursue spiritual growth
without adequate basic necessities such as
employment, food, shelter, education, and medical care. So, the
purpose of development, guided by a sense of spiritual progress,
is to help us pursue personal and social pursuits that
foster inner growth and communion with people and nature. Activities
such as sports, art, music, theater, yoga, meditation, hiking,
etc., do not simply fill our lives with more material
things, instead they fill our lives with enjoyment, purpose and
meaning.
7.4 Neo-humanism
Reverence for nature, for all non-human creatures is a natural
extension of such concepts as cosmic inheritance and spiritual
progress. "Our universe," according to Sarkar, "is
not only
the universe of humans, but the universe of all; it is for all
created entities." Economic activity, therefore, must take
into account the existential rights of other species. This outlook
is
an integral aspect of what Sarkar terms neo-humanism--the view
that expands humanism to include a common, unified consciousness
behind the diversity of nature. This outlook, this
spiritual ethic, is growing amongst many seeking an alternative
to the disparities of the global economy. According to Nordberg-Hodge,
"we are talking about a spiritual awakening
that comes form making a connection to others and to nature.
This requires us to see the world within us, to experience more
consciously the great interdependent web of life, of
which we ourselves are among the strands." Thus, neo-humanism--in
essence a fusion of spirituality and humanist rationality--is
based on principles of love and respect for all beings,
sharing, cooperation and spiritual progress. A stark contrast
to economic liberalism's idea that the most conspicuous human
motives are self-interest, competition and hoarding of
wealth.
8. Beyond Poverty: Two Strategies Toward Eradicating Poverty
8.1 Short Term Strategy
The fluctuating stock markets in the Makati business district
in the Philippines means little for the thousands of poor searching
the dumps nearby for food and salable trash. From
Moscow to Manila, millions of scavengers are oblivious to the
economic decisions made by wealthy CEO's of multinational corporations.
While billions of dollars circle the globe in
daily electronic transactions, it is estimated that four-fifths
of the world's 6.1 billion people barely scrape by. For them,
high-sounding phrases such as cosmic property and spiritual
progress are meaningless. Instead, they are in dire need of a
global Marshall plan that can rapidly turn their lives around.
Such a plan, however, is not likely to arrive on the global
horizon before world economic and political leaders embrace a
neo-humanist vision and a strong, moral impetus for change. Meanwhile,
is there any hope for the poverty-stricken
captives at ground zero? Is there any hope to increase their
welfare and purchasing power? There is. Here are some short term
strategies that can eradicate poverty from the bottom
up:
Debt relief. Poor countries "would be better able to marshall
resources for human security purposes if their foreign debt burden
were substantially lighter," writes Michael Renner of
the Worldwatch Institute. Without a more determined debt relief
strategy, many countries--particularly the most severely indebted
low-income countries--will be unable to rise up
from poverty and dependence.
Land reform. It is a common myth that to take land away from
big producers will lower food output and therefore increase poverty
and hunger. But in reality, smaller farms produce
more per acre than larger farms. Moreover, wealthy landowners
utilize only part of their land. In Brazil, for example, landowners
cultivate only 11.3 percent of their land.
While incomes in Sao Paulo are double the national average, half
of the city's 12 million inhabitants live in squalid favelas
(slums). If land is made available for small family farms and
cooperatives, the growing exodus from rural to urban areas in
countries such as Brazil could be reduced dramatically. While
many half-hearted landreform efforts have given this
anti-poverty strategy a bad name, genuine redistribution of land
has shown great benefits in productivity, efficiency, and alleviation
of poverty. In Kerala, India, for example, over 2
million acres have been redistributed since 1969, and given ownership
to 1,5 million farmers.
Land titles. Millions of poor people all over the world are squatters
on government or private land. According to Peruvian economist
Hernando de Soto, many of them are
entrepreneurial, but they need economic support to either start
or expand a business. The key to this, he claims, lies in giving
them property rights. With such rights, a land title can
be leveraged with a mortgage, used as collateral for a bank loan,
or sold. With this money, poor families can pull themselves out
of an otherwise doomed future. Furthermore,
combined with a system of land titles, microlending would be
less risky. De Soto has initiated such programs with great success
in Lima, Peru and is currently consulting with several
governments in South East Asia.
Land plot cooperatives. There are millions of acres of uneconomical
land plots in rural areas throughout the world. These plots can
be brought under immediate cooperative
management. By merging many small plots of land together, the
owners of these landholdings can join as members of a cooperative.
According to Sarkar: "In cases where the
landowners employ labor for cultivation, fifty percent of the
net profit will go to the landowners and fifty percent to the
laborers who work in the cooperatives."
Subsidies for small farmers. Agricultural subsidies now favor
large scale agribusinesses. Shifting a portion of those subsidies
to small-scale farming will revitalize poverty-stricken
rural areas by promoting employment, diversified agriculture,
healthier soils, and reduce the exodus to city slums.
Low interest loans to farmers. The World Bank and the IMF could
initiate a "Marshall plan" based on low interest microloans
to poor farmers in the Third World. By directly lending
to the poor farmers and sharecroppers--who often are enslaved
in poverty for the rest of their lives due to exorbitant high
interest loans from village loan sharks--local, rural
communities could quickly be revitalized.
Eco-villages. Although most eco-villages are located in the affluent
countries of the North, some also focus on helping poor, rural
communities in the South achieve self-sufficiency.
One such project is the Parque Ecologico Visao Futuro (Future
Vision Ecological Park) in the interior of Sao Paulo state, Brazil.
According to its founder, Didi Anandamitra, the goal
of this project is "to provide a practical model for social
and economic life that can be replicated in communities, especially
rural communities, everywhere." The eco-village features
many projects that involve participation by the local community,
including organic gardens, waste recycling, a sewing cooperative,
a bakery, seminar programs, and plans for a
low-cost, preventive healtcare facility. Integrated projects,
such as these, can--in conjunction with aid agencies from both
the North and the South--help reduce the exodus of poor
people from rural villages to city slums.
Micro-lending. There are two types of microlending. 1) Micro-loans
that consists of a support group of four or five peers, each
of them receiving a loan for their business and each of
them responsible for one another. Instead of material collateral,
the system is based on honor and mutual dependence. This system
is well suited for labor-intensive businesses that
normally are unable to get a bank loan. 2) Micro-loans disbursed
to small, already existing or start-up business enterprises and
solo proprietors. Micro-lending, recently endorsed by
the World Bank and other antipoverty agencies, has already helped
thousands of businesses thrive in Europe, North and South America
and Asia.
Selective trade protectionism. Since the global economy's free
trade policies have proven utterly ineffective in alleviating
poverty in the South, it is in the immediate interest of local
Third World governments to initiate a careful policy of using
tarrifs to regulate the import of goods that instead could be
produced locally.
Child-labor cooperatives. CREATE--an organization based in Ferozabad,
India helps glass-bangle producing children form cooperatives
and deal directly with company owners
instead of middlemen. Through a combination of programs that
include skills training for older children and education for
younger children, CREATE is aiming to eradicate child labor
in harmful operations such as welding. As direct bans on child
labor have proven counterproductive, seed money from international
aid agencies could instead duplicate
CREATE-cooperatives in countries were child labor is an integral
part of the local economy.
It is commonly believed that we must choose between globalized,
more efficient production systems and less productive, more localized
systems. This tradeoff is a myth. Greater
equity, more fairness in economic production, and increased ownership
of land can not only release untapped productive capabilities,
it is the most effective way to create an
economy free from poverty and hunger. Global poverty is a global
malady that requires immediate attention. The sooner politicians,
economists and scientists realize that this ailment
can not be treated by increased globalization and centralization
of the economy, the sooner these short term strategies can be
implemented.
8.2 Long Term Strategy
There are currently three explanations for why there are so many
poor people in the Third World. One school of thought blames
it on cultural factors. Something in the work or
savings ethics, this theory hails, prevents them from developing
like their Northern counterparts. The second theory claims that
much of the world never learned to implement
capitalism right. According to the third school, both these theories
are condescending and plain wrong.
The third school looks at poverty as a chronic disease, as a
systemic failure of the socio-economic organism caused by the
cancer of greed and its manifestations throughout the
economy. The cure for poverty, it claims, requires nothing less
than an integral restoration of the whole organism. This long
term, integral treatment consists, among others, of the
following set of remedies: equitable distribution of wealth,
justice through both political and economic democracy, a decentralized,
ecological and self-sufficient economy, a balance
between cooperation and competition, a constitutional right to
life's basic necessities, culturally appropriate education, a
consumption-motivated rather than profit-motivated
economy, agricultural reform, a philosophy of life that supports
all being's interests rather than self-interest, and a worldview
that sees the spiritual unity of all life.
Economic decentralization. From sustainable development theorists
to environmental activists, from bio-regionalists to natural
capitalists, from Thomas Jefferson to P. R. Sarkar,
economic decentralization is seen as the only panacea for the
economic exploitation caused by centralized economies, whether
capitalist or communist. Hawken's natural capitalism
speaks of the need to "replace nationally and internationally
produced items with products created locally and regionally."
The main reason for this, according to Sarkar, is to avoid a
policy of economic centralization that is merely an effective
strategy to accumulate increasing capital in the hands of the
few. There is, according to him, only one way to effectively
stop economic exploitation and alleviate the plight of the common
people, and that is to implement a policy of decentralization
in all sectors of the economy. Economic
decentralization is also more benign to the environment as less
resources are used for transportation of goods and raw-materials,
and because local people are less likely to pollute
their own neighborhoods.
While a centralized economy's focus is on its expanded markets,
concentrated capital and increased profits, a decentralized economy
concerns itself with its small-scale, localized
units of cooperation. The goal of a decentralized economy is
the welfare of all, but first and foremost to alter the plight
of the poor. A decentralization strategy, therefore, attempts
to
raise a country's or region's poverty threshold from the bottom
up--to immediately increase people's purchasing capacity, even
if that entails starting less profitable and labor
intensive industries. In the long run, profitability cannot be
ignored, of course, but it should not be the central rationale
of the economy. The primary interest of decentralization is
that all natural resources of any given area is controlled by
local people. This principle is in stark contrast to today's
globalized economy where cheap labor and raw materials in one
region are exploited by business owners from another, often causing
great inequities and poverty.
Production for consumption, not profit. A consumption economy
is an integral aspect of a decentralized economy and should not
be confused with a profit-oriented consumer
economy. A consumption economy is an economy where goods are
produced as per people's need. A consumer economy is an economy
where goods are produced and sold solely
for profit. A consumer economy, according to the famed retail
analyst Victor Lebow, demands that we make consumption a way
of life...that we seek our spiritual satisfaction, our
ego satisfaction, in consumption...We need things consumed, burned
up, worn out, replaced, and discarded at an ever-increasing rate."
A consumption oriented economy, on the other
hand, produces goods not to be consumed and discarded but to
satisfy the true needs of the local people. Such production will
ensure economic stability, no capital flight, goods at
affordable prices, and a continuos increase in people's purchasing
capacity. Finally, as the consumption economy's main goal is
to satisfy basic human needs, it also provides the
economic security needed for people's non-material sources of
fulfillment--family, community, culture, and spirituality.
Cooperative enterprises. The Darwinian notion that competition
promoted the evolutionary survival of the fittest individual
is outdated. New research reveals that evolutionary
success had more to do with the survival of the fittest community
through interwoven cooperation. Dubos and other biologists argue
that cooperation, teamwork, collaboration, and
federation has been inbred in our genes over hundreds of thousands
of years. Thus, many social observers argue that cooperation,
not competition, will be the cornerstone of a more
equitable economy.
Indeed, recent business management studies indicate that the
most effective production incentives are profit-sharing, equity,
and decision-making participation. In worker owned and
managed cooperatives all three of these production incentives
are maximized. Not to be confused with inefficient, unprofitable,
Soviet-style communes, cooperatives are best suited to
elicit the productive potentiality of workers, and should therefore
be the predominant form of economic enterprise. Cooperatives
also minimize worker alienation, promote equitable
distribution of wealth, and support economic decentralization.
Moreover, a cooperative economy is a natural extension of a spiritual
worldview. According to Sarkar: "The wonts of
the human heart are joy, pleasure, and beatitude. In the physical
realm, the best expression of this human sweetness is the cooperative
system."
Small-scale private enterprises. Proponents of today's free market
capitalism seem to have forgotten that their mentor, Adam Smith,
proposed a competitive market structure in
which there were no corporate businesses with monopolistic powers.
Similarly, Sarkar claims that excessive inequities can best be
avoided if private enterprises consists mainly of
small businesses such as restaurants, stores, artisan shops,
service and cottage industries with no more than a few dozen
employees. That is, small-scale, private capitalism stimulates
the entrepreneurial spirit and purchasing power of individuals
and families, yet avoids the gross disparity and poverty so often
caused by unbridled concentration of wealth in the
hands of corporate monopolies.
Economic democracy. Concentration of wealth and economic power
corrupts the political process. In Third World countries, especially,
money buys votes outright, and the moguls
of capital maintain the ultimate veto power of capital flight:
if government policies are enacted which threaten their financial
interests, they can move their capital out of the local or
national economy and wreak economic havoc. Economic power must
therefore be dispersed--it must be extended beyond the political
sphere and into the economic sphere.
Self-sufficient, regional economies. People can best collaborate
in social and economic development if they work together within
regional socio-economic units that are defined on the
basis of uniform economic potentials, common economic problems,
similar geographic features, ethnic similarity, and common sentimental
legacy. For such locally sensitive
development to take place, there needs to be regional autonomy
in certain collective spheres of life. In particular, regional
economies need to control their resources and capital and be
totally free from any kind of domination by outside economic
forces.
Culturally appropriate education. Illiteracy and poverty are
often synonymous. Education is therefore an integral element
of creating economic self-sufficiency and social harmony.
Using essentially the same curriculum the world over, however,
modern education is often training children to become "better
servants" of the global economy. Promoting regional and
local adaptation in the schools, instead, would be an essential
part of the revitalization of local economies. Trade schools
and higher education must adopt to local needs and
conditions. "Training in locally adapted agriculture, architecture,
artisan production (pottery, weaving, and so on), and appropriate
technologies suited to the specifics of climate and
local resources would," according to Nordberg-Hodge, "further
a real decentralization of production for basic needs."
Since one's mother tongue is the most natural medium for the
expression of ideas, primary education should be in the local
language, but appropriate, secondary languages can be supplemented
later.
Environmental balance. Over the past 30 years, we have seen how
the environment suffers when people have either too much or too
little. The rampant consumerism in the Northern
countries has been remarkably effective in destroying the earth's
ecosystems. Yet the opposite extreme--poverty--is equally destructive,
as hungry people in the South put forests
ablaze and steep, erosion prone slopes to the plow. The ultimate
solution to all environmental problems, however, lies not so
much in finding so-called sustainable development
solution, but, rather, in developing a worldcentric consciousness
(Wilber), a deep spiritual understanding for what nature is and
how it operates. From this deep understanding of
human psychology and spirituality, on the one hand, and the natural
world, on the other, humanity can develop a genuine environmental
ethics. In other words, develop a balanced
socio-economic philosophy based on the dynamic interrelationship
between the fields of ecology, economy and spirituality. At this
point in history, this is one of humanity's most
urgent tasks.
Free trade. The giant globalization efforts by the World Trade
Organization, the International Monetary Fund, and the World
Bank is promoting "free trade" and "free markets"
as a
panacea for creating prosperity and sustainability. In reality,
current economic globalization efforts have, for the most parts,
delivered exactly the opposite of what has been
promised. Today's so-called free trade between rich and poor
nations, between the North and the South, has widened the gap
between the rich and the poor, as well as increased
environmental degradation. In order to effectively reduce disparity
and dependency on loans from outside sources, free trade should
be discouraged until fair and free trade can be
attained between self-sufficient and economically resourceful
countries or regions.
Population balance. It is commonly believed that world hunger
and poverty is caused by "too many mouths to feed."
According to the Institute for Food and Development Policy,
this is simply a myth. Rapid population growth is not the root
cause of hunger and poverty. Rather, both increased population
growth and poverty is caused by economic inequity.
The real challenge, then, is to bring human population into balance
with economic resources and the environment through decentralized,
economic planning.
Cultural vitality. The irony of material development is that
it has created what Paul Wactel calls "the poverty of affluence."
While consumerism has enticed people in the North into
gorging on material things, it has failed to provide a sense
of inner fulfillment. This lifestyle, whose "bottom line"
is "looking out for number one," has created a superficial
culture of
fame, wealth and success that justifies selfishness and breeds
alienation and loneliness. Yet the opposite extreme--material
poverty--is also devastating to the human spirit. Not having
enough creates hopelessness and forces many into lives of beggary,
prostitution, and thievery. Both these extreme conditions signify
a loss of the deep sense of belonging and inner
beauty a vibrant culture has to offer, including non-material
treasures such as sharing, service, friendship, family, community,
meaningful work, artistic creativity, and spiritual
communion. Restoring a community's non-material treasures and
cultural roots is an integral part of overcoming poverty--whether
spiritual or material.
Sustainable globalism. Decentralization, self-sufficiency, and
smaller scale industries does not mean neglecting a global agenda.
But, while contemplating globalism's new information
technology and the liberal capitalist, multinational economy,
it is important to remember that most planetary citizens do not
yet have a telephone, let alone a computer, nor do they
need, nor can they afford, the foods served by Burger King or
the running shoes advertised by Nike. Today's economic globalism
is not in the service of the poor, and it has little
relevance to their cultural, economic and spiritual aspirations.
Instead, the world's poor need a global movement with two, separate,
yet integrated goals: 1) a strengthening of the
global polity through the UN, combined with a gradual movement
toward a global federation, or world-government that can safeguard
the needs and rights of people and the
environment, and 2) the formation of self-sufficient, socioeconomic
regions of free trade zones--that is, a global grid of sustainable
and self-sufficient trading partners.
Spiritual globalism. Environmental destruction, due to ignorance,
is nothing new in human history. According to biologist Rene
Dubos: "All over the globe and at all times, men have
pillaged nature and disturbed the ecological equilibrium, usually
out of ignorance, but also because they have always been more
concerned with immediate advantages than with
long-range goals." What is new, however, is the presence
of more dangerous means to destroy the environment. In return,
there is increased public interest in saving our planetary
home. But how? The solution, according to Wilber, is not to "reactivate
the tribal form of ecological ignorance (take away our means),
nor to continue the modern form of that
ignorance (the free market will save us), but rather to evolve
and develop into an integrative mode of awareness that will--also
for the first time in history--integrate the biosphere
[nature] and noosphere [spiritual] in a higher and deeper union."
9. Conclusion
A truly sustainable development program--and thus the solution
to eradicate global poverty--will only emerge in coalition with
sustainable spirituality. From this union a more
equitable and environmentally sound globalism can emerge. From
this source, a newly fed, a newly bountiful, and a newly awakened
family of global citizens will draw its present and
future inspiration.
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