Consumption led growth, Globalisation and Sustainable Living – Lessons from a Pandemic

I am fascinated by the economy and follow news about it closely. Over the years the recurring emphasis has been on improving the rate of economic growth. This obviously leads to wealth creation, which translates into a better quality of life for the citizens but in some cases it actually helps moving people out of poverty. It was the latter that made the unwavering focus on economic growth almost a noble endeavour. I too have been sold on this idea of economic growth as a panacea and have even dared to become an ‘armchair’ economist.

This obsession with growth was achieved by human consumption of goods and services. This led to ‘globalisation’ and development of supply chains of goods and outsourcing of services making economies dependent on each other. It was not uncommon to hear the impact of global growth on the state of the local economy. The more people consumed the more the economy grew and people prospered everywhere. This was celebrated as a win-win for all. It was not all positive. There were unintended consequences of environmental degradation and perhaps climate change. The impacts of these were at times significant but the benefits were seen to be worthy of the price.

I have at times paused to ponder this relentless pursuit of economic growth. After all once upon a time, before the era of global supply chains or indeed this emphasis on consumption led growth, human beings lived a simple life in harmony with nature. They were not plundering the earth’s resources or degrading the environment. I even felt that one day humanity will be weary of chasing economic growth and choose go back to a basic way of living, eschewing profligate consumption and live in harmony with nature.

I have tried to imagine a world of sustainable living with healthier environments. Small clusters akin to villages, with their own farms and solar energy parks. The farms will make them self sufficient for daily needs and not be dependant on supply chains. The solar parks could provide electricity for homes and mobility by electrical vehicles. This will also be kind to the environment. Such fleeting ideas of utopia vanish and I return to the reality of the consumption led globalised world.

How did humanity get onto this ‘treadmill’ of economic growth ? Science allowed us to find cures for diseases leading to longevity and a population boom. This inevitably led to a spiralling appetite for consumption of goods and resources. Before long this led to a vicious cycle and we are constantly trying to keep pace with the demand and in some cases tapping into human greed to create demand for newer and flashier products. We were intelligent enough to survive and thrive but we also ended up on the treadmill of economic growth which we can’t seem to step off.

Why am I sharing my old thoughts now ? The Covid pandemic and the lockdown that followed has brought the flood lights back on these very issues – economy and its growth, globalisation and perils of unchecked urbanisation.

The pandemic itself was acutely felt in the big cities instantly highlighting the benefits of rural life. Rural life doesn’t automatically mean one is in harmony with nature but is certainly likely to be a more healthy life than being in congested and polluted cities. Importantly in the current situation it reduces the risk of being infected by a lethal virus. As the virus raged I wished I lived in a cottage by the sea away from the clusters of infection in the urban areas. I am sure many others had similar thoughts.

The lockdown had a serious impact on the economy. Life as we know it came to a stand still as did economic activity. Shops, offices and social establishments were all shut. With the passing weeks there is a realisation that life will not return to normal and some jobs will be lost forever. The impending recession and unemployment will be problems for a long time. The current pandemic also exposed the perils of being dependent on a global supply chain in times of crisis and emergency. This combined with the need to find jobs for newly unemployed people will spur the move away from globalisation.

The lockdown also forced us to step back from a hectic and stressful life to a more measured pace. It also prevented us from indulging in excessive consumption. We realised what we really need to get by in life and how we had earlier convinced ourselves about the need for frills in life. Will this realisation of what we really need combined with the fear of a deadly infection be the trigger for us to step back to a more simple life ? Perhaps not.

Is a life with minimal consumption a myth ? Although it is a fact that we did survive the lock down with minimal needs it is false to believe that this could be sustained forever. We need the economy to recover so that the entire population can survive. This is proof, if ever one was needed, that we are truly caught in the vicious cycle of a consumption led economy. Economic growth is an act of survival ! Economic growth is not a panacea but rather we are its slave.