A paradigm for sustainable development

Mészáros, Sándor

Keywords: economic paradigms, sustainability, climate change, globalisation, modelling

According to the prevailing neoclassical paradigm, economic growth in the second half of the 20th century occurred without consideration for the expected climate change, the Earth’s natural resources or social inequalities. The concept of sustainability was developed to address this situation. Over the last two decades, it has evolved into a global movement and inspired national strategies for adaptation. Still, no really new paradigm has been created for the functioning of the economy, even though the science of economic has shifted toward complexity.
Despite the absence of a new (transdisciplinar) paradigm, the directions of required changes are discernible: prompt replacement of fossil energy sources, making forestry a priority (Low Carbon Economy), and embracing eco-social market economy. Consequently, governments are to represent public interests (also vis-a-vis businesses and individuals): they need to reallocate (a significant portion of) spending to ecological and/or social projects, thereby reducing the income gaps between different groups of society. Citizens (consumers), on the other hand, need to develop environmental consciousness, frugality (energy, food, water) and prudent (borrowing).
In Hungary, new findings of economics need to be studied, and at least the basics of ecological economics should be made part of the university curricula. Modelling techniques should be used to identify and find solutions for the clashing interest of various economic objectives, disciplines, economic players and social groups. As a practical step, it would be desirable to establish low carbon pilot communities (ecovillages), which would act as an example for and raise awareness of the broader climate protection measures.

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