Planting the seeds for a new world economy

The world's foremost ecological economist will use a report launch at ANU today to call for a sustainable alternative to our current economic system.

Professor Robert Costanza of the ANU Crawford School of Public Policy says the world's insatiable consumerism is unsustainable because of the planet's natural limits, and warns that we urgently need a new model.

He outlines his alternative – one based in ecological economics – in his contribution to the State of the World Report. The annual Worldwatch State of the World Report will be launched in Washington DC on Tuesday evening.

"There is a substantial and growing body of research on what contributes to human well-being and quality of life. It clearly demonstrates the limits of conventional economic income and consumption's contribution," Professor Costanza said.

"This isn't a utopian fantasy. On the contrary, it's business-as-usual that is the utopian fantasy. Humanity has to create something different and better, or risk collapse into something far worse."

The State of the World Report brings together the world's leading experts to write for a broad audience on a theme – this year asking 'Is sustainability still possible?'

Professor Costanza's contribution – Building a sustainable and desirable economy-in-society-in-Nature – sets out a vision for a new global economic model. He argues that we can't hope to manage our global economy without understanding how it fits within society and nature; that GDP growth has significant costs that are beginning to outweigh the benefits in many countries; and that unrestrained consumption has a negative effect on wellbeing more broadly defined.

"The report offers a vision of an ecological economics option for the world, and how to achieve it – an economy that can provide nearly full employment and a high quality of life for everyone while staying within safe environmental boundaries for humanity," he said.

Provided by Australian National University