Rasim Huseynov
Managing Editor of Seamless Trade and International Trade Consultant at Tevolution Ltd
As we confront the mounting pressures of climate change, resource depletion, and environmental degradation, the question of how to structure economic development has become more pressing than ever. While many advocate for stricter regulations or placing property rights at the heart of the solution, I will argue for a different approach. Innovation and the environment must become our sacred cows—the twin pillars upon which sustainable economic development is built. The market, while still relevant, must work within the planet’s ecological boundaries rather than expecting these boundaries to conform to market demands.
The traditional approach, where ecological systems adapt to economic growth, has contributed to the crises we face today. We will analyse the works of leading scientists, philosophers, and campaigners in the field, known not only to a narrow circle within the scientific community but to wider audiences as well.
The Case for a New Philosophy of Economic Development
Traditionally, economic growth has been viewed as a function of market forces, with the assumption that the market will correct itself over time. However, this approach neglects the finite nature of the planet’s resources. As economist Herman E. Daly has long argued in his theory of steady-state economics, the pursuit of endless growth in a world with limited resources is not only unsustainable but potentially catastrophic. Daly proposed that we move toward an economic system that respects the Earth's ecological boundaries, a view that resonates with environmental advocates like Baroness Natalie Bennett and the philosopher Martha Nussbaum.
Herman E. Daly, in his work Ecological Economics, advocates for an economy that recognises resource constraints and limits on growth. His steady-state model proposes an economic system that operates within ecological limits, avoiding depletion of resources and reducing environmental impact. Daly’s perspective highlights the dangers of growth-focused economies, suggesting that markets alone cannot address the underlying ecological crises we face.
Baroness Natalie Bennett emphasises the role of grassroots activism in pushing for environmental change and argues that sustainable societies require both community involvement and structural changes. In her recent book, Change Everything, Bennett calls for a reimagining of society that prioritises ecological sustainability and social justice, arguing that environmental policies should be at the core of governance.
Martha Nussbaum, in her book Justice for Animals, expands the conversation beyond human-centric policies, advocating for the ethical treatment and protection of animals. Her approach argues that justice must extend to animals and that humans have a moral responsibility to protect nature. Nussbaum’s views challenge traditional anthropocentric economics, emphasizing an ethical duty to consider the well-being of all sentient beings as part of sustainable development.
Together, these thinkers argue for a world where the environment is sanctified, and human activities must operate within its limits, prioritising long-term ecological health over short-term profit maximisation.
The Argument for Human Innovation and Adaptation
At a different point on the spectrum, Professor Mike Hulme, science writer Helen Pilcher, and Principal Research Scientist Andrew McAfee argue for an active human role in environmental management, promoting innovation and adaptability. These thinkers advocate for human ingenuity and intervention as vital tools in addressing environmental challenges, contrasting with more cautious or resource-bound approaches.
Professor Mike Hulme, in his book Climate Change is Not Everything, argues that while climate change is serious, it should be seen within a broader social and economic context. He contends that human-driven solutions, alongside policy, can more effectively balance environmental priorities with other pressing global issues, in contrast to Daly's focus on strict ecological limits.
Helen Pilcher, in Life Changing, takes a biological perspective that highlights the adaptability of life, including human ability to innovate and influence our environment. While some advocate for minimal interference, Pilcher suggests that harnessing human creativity to manage and adapt to change is a natural and even necessary approach, allowing species, including humans, to flourish amid environmental shifts.
Andrew McAfee, in More from Less, argues that technological innovation and the market economy are capable of decoupling growth from resource consumption, enabling us to achieve more with less. McAfee’s belief in the power of capitalism and human creativity aligns with Hulme and Pilcher’s views, supporting the idea that humans have the tools and capacity to create sustainable solutions rather than strictly limiting growth and consumption.
Innovation and Environment: The New Sacred Cows
While the debate between market-driven and sustainability-focused solutions is far from resolved, I would argue that we must shift the focus. The environment and innovation must become our sacred cows, not regulation or property rights. Regulation, while necessary in some cases, often constrains innovation, limiting the creativity needed to solve the world’s most pressing environmental problems. Similarly, placing too much emphasis on property rights in areas like water resources or carbon sinks can obstruct collective efforts to preserve the environment for future generations.
Instead, we should create frameworks that encourage innovation, such as an environmental innovation fund that develops alternatives to plastic or other harmful materials and provides them free of charge to industries. This would help businesses transition to more sustainable practices without the burden of cost, fostering an economy that is both environmentally and economically sound.
The Role of a High-Level Consultative Body
To facilitate this shift, I propose the establishment of a high-level consultative body in each country that would predict and monitor resource pressures. This body would take a holistic approach, considering not just individual resources but the broader environmental and economic systems in which they operate. Such a body would help steer economies away from unbridled market-driven growth toward development that is in harmony with the planet’s ecological limits.
A Balanced Future
The future of economic development lies in our ability to balance market forces with ecological realities. While the market remains a valuable tool, it must be guided by innovation and a deep respect for environmental limits. Figures like Bennett, Daly, and Nussbaum offer us important frameworks for rethinking the way we approach sustainability, while their counterparts, such as Hulme, Pilcher, and McAfee, remind us that innovation and adaptability are also crucial components of the solution.
The key is not to pit these approaches against each other but to integrate them into a complementary, balanced model for the future—one where environmental stewardship and innovation align, guiding market forces toward sustainable and equitable outcomes.
Suggested Reading:
Herman E. Daly and Joshua Farley, Ecological Economics: Principles and Applications, Island Press, 2004
Natalie Bennett, Change Everything: How We Can Rethink, Repair and Rebuild Society, Unbound, 2024
Martha C. Nussbaum, Justice for Animals, Simon & Schuster, 2022
Mike Hulme, Climate Change is Not Everything: Liberating Climate Politics from Alarmism, Polity, 2023
Helen Pilcher, Life Changing: How Humans are Altering Life on Earth, Bloomsbury Sigma, 2021
Andrew McAfee, More from Less: The Surprising Story of How We Learned to Prosper Using Fewer Resources—and What Happens Next, Simon & Schuster, 2019
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