Myth #2: Economic growth is a path to a sustainable and equitable future

The World Commission on Environment and Development called for annual economic growth of 5 to 6 per cent in developing nations and 3 to 4 per cent in industrialized nations. A simple example will reveal the flawed logic of this prescription. In Ethiopia, per capita income in 1999 was $100 (U.S.). At a higWy optimistic growth rate of 6 per cent, Ethiopia’s per capita income would grow to $179 in 10 years and $1,842 in 50 years. In contrast, Canada’s per capita income was $21,050 (U.S.) in 1999. At a growth rate of 3 per cent per year, compounded, Canada’s per capita income would grow to $28,289 in 10 years and $92,281 in 50 years. This comparison destroys the fiction that economic growth provides a path to a just and sustainable future. The rich get much richer and the poor get marginally less poor, but the gap grows wider and wider.
source: Myths of Sustainable development See also XlnkS4AB

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