Sustainable Development State of the World AIESEC/EBBF Seminar Acuto, 14-17 February 2008 Arthur Lyon Dahl Ph.D. European Bahá'í Business Forum (EBBF) http://www.ebbf.org and International Environment Forum (IEF) http://www.bcca.org/ief HEALTH WARNING: THIS PRESENTATION MAY CAUSE NIGHTMARES AND DEPRESSION The Goal of SUSTAINABLE DEVELOPMENT Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: •the concept of 'needs', in particular the essential needs of the world's poor, to which overriding priority should be given; and •the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs. UN Commission on Environment and Development, Our Common Future, 1987, p. 43 Sustainability is a dynamic concept • Not a goal to be reached but a balance to be maintained in space and in time • Involving complex interactions in the whole system that maintains life on Earth (the environmental component) • Including the human system (the social and economic components) • That must respect planetary limits The dimensions of Sustainability • It is customary to consider at least 3 dimensions or "pillars" of sustainable development: economic, social and environmental • Many now add a fourth dimension, less tangible but equally important, including the cultural, institutional or organizational, and ethical/spiritual aspects defining the rules by which human society operates To achieve sustainability, we must... • understand the evolutionary processes pushing globalization, including population growth and scientific and technological development • identify the major driving forces behind unsustainable trends • define and implement the responses necessary to put us on sustainable trajectories Sustainability is like good health: environment = body economy = metabolism social = mental health ethics = spiritual health What is our diagnosis? Globalization • is the logical next step in human evolution, but • Economic globalization is driven by powerful governments and multinational businesses for their own benefit • Social globalization is being strongly resisted • Globalization of environmental problems threatens future sustainability Some of the major driving forces for planetary unsustainability Environment: biodiversity loss, pollution, nitrogen and carbon cycles, climate change Human society: energy, population growth, food, resource depletion, governance failures Economy: unmanaged globalization, financial and wealth imbalances, externalities BIODIVERSIT Y LOSS - Human impacts on the natural environment are causing a major extinction event from uncontrollable population and development pressures accelerated by climate change - There will soon be no natural ecosystems left, requiring increasing human intervention to maintain some biological diversity DIAGNOSIS: AUTOIMMUNE DISEASE RISK OF ORGAN FAILURE Pollution (image IKONOS – Lang, ESRI 1998) Man-made chemical pollutants have contaminated the entire planet, interfering with biological processes, upsetting hormonal balances and immune systems, causing cancers and other diseases, damaging the ozone layer, and having other as yet unknown effects DIAGNOSIS: SYMPTOMS OF TOXICITY MULTIPLE POISONING Nitrogen Cycle • Fixed nitrogen is essential for life, especially the manufacture of proteins • Only a few kinds of microbes (bacteria and cyanobacteria/bluegreen algae) can fix nitrogen in nature. • Burning fossil fuels produces nitrogen oxides • Nitrogen fertilizers come from petrochemicals • More than half the fixed nitrogen on the planet now comes from human activities • The excess causes eutrophication, ecological imbalances and release of CO2 from plants DIAGNOSIS: EXCESSIVE USE OF STIMULANTS HIGHLY ADDICTED The Carbon Cycle • Carbon: carbon dioxide in air, uptake by plants, released by animals/decomposers, stored in organic matter, limestone, fossil fuels, released from long-term storage by burning fossil fuels Climate Change will be stronger and sooner • Global carbon dioxide emissions from fossil fuel have accelerated since 2000 • Rise in 1990s 0.7%/yr; 2.9% since 2000 • Three causes: growth in world economy, rise of coal use in China, weakening of natural carbon sinks (forests, seas, soils) • Growth in atmospheric CO2 about 35% higher than expected a few years ago Polar areas are changing fastest Half of the permafrost in the Arctic is expected to melt by 2050 and 90% before 2100, releasing methane 14% of the permanent ice in the Arctic Ocean melted in 2005; 23% more in 2007(worst melting ever) opening the North-West Passage; permanent ice in the Arctic Ocean may be gone by 2030 Greenland glaciers have doubled their rate of flow in the last few years, raising sea level 0.6 mm per year Similar melting of the West Antarctic ice sheet could add another 4 mm per year There is little time left to act Global temperatures have already risen 0.6°C and will probably rise a further 3°, or even up to 4.5-5° by 2100 Ocean temperatures have risen at least 3 km deep Glaciers and snow cover have decreased; cold days, nights and frost have become rarer; hot days, nights and heat-waves more frequent Sea level rise has doubled in 150 years to 2 mm/year, and recent polar melting may add another 4 mm/year Recent surge in CO2 levels from less uptake by plants We may soon reach a tipping point where runaway climate change would be catastrophic The most vulnerable areas risking catastrophic collapse this century • • • • Arctic Ocean and Greenland ice sheet Amazon rain forest Northern boreal forests El Nino affecting weather in North America, South-East Asia and Africa (3°C rise) • Collapse of West African monsoon • Erratic Indian summer monsoon Climate change effect on the economy The Stern Report estimated the annual cost of uncontrolled climate change at more than $660 billion (5 to 20% of global GDP, as compared to 1% for control measures for greenhouse gases). Climate change represents the greatest market failure in human history IPCC 4 says stabilizing greenhouse gases by 2030 will slow global growth by 0.12%/yr or 3% of total global GDP DIAGNOSIS: HIGH FEVER INCREASING COULD BECOME LIFE-THREATENING Human Population • The world population has tripled in one lifetime, and is expected by the UN to rise to 9.2 billion by 2050 before stabilizing • By some estimates, world resources can only sustainably support 500 million people • We seem to be following a classic ecological pattern of overshoot and collapse • The planetary carrying capacity depends on numbers versus standard of living; increasing one reduces the other • Science may find ways to increase carrying capacity, but only at longer time scales DIAGNOSIS: HIGHLY OBESE RAPID UNCONTROLLED WEIGHT GAIN Food Production • The Green Revolution of the 1970s postponed food supply as a limit to growth • Crop production has improved in the last 20 years from 1.8 to 2.5 t/ha. but such intensive agriculture requires high energy, fertilizer and petrochemical inputs • World cereal production per person peaked in the 1980s and has decreased slowly since • Feeding the growing world population and reducing hunger by half will require doubling world food production by 2050 • Water, phosphate and energy will all be limiting Global Food Crisis • In 2007, the price of wheat rose 100%, maize 50%, rice 20%, increasing staple food prices for the poor over 10% • Global food reserves are lowest for 20 years, with only 57 day grain reserve • Climate change, drought, floods, soil erosion, overfishing are reducing food production • With grain being diverted for biofuel, 800 m motorists are competing with 2 bn poor • There are 854 m hungry people, rising 4 m/y • Food is being priced out of reach for the poor DIAGNOSIS: MAY TIP FROM OBESITY TO ANOREXIA Water Shortage • Most freshwater from streams and groundwater is used for agriculture • Water use for crops will have to double by 2050 to halve the number of hungry • But, by 2025, 1.8b people will live in regions with absolute water scarcity, and 2/3 of the world population could be subject to water stress as climate change reduces rainfall in these areas DIAGNOSIS: SERIOUS RISK OF DEHYDRATION Resource Depletion Many key materials are being exhausted rapidly (estimated years left: predicted/today's rate) • • • • • • • • • Phosphorus (fertilizer) 142-345 Antimony (drugs) 15-30 Copper (wire, coins, pipes) 40-60 Hafnium, Indium (chips, LCDs) 5-15 Platinum (catalysts, fuel cells) 15-360 Silver (jewelry, catalysts) 15-30 Tantalum (cellphones, cameras) 20-115 Uranium (weapons, power stations) 30-60 Zinc (galvanizing) 20-46 DIAGNOSIS: LACKING ESSENTIAL MINERALS ENZYMATIC DISFUNCTION THE PROBLEMS ARE GLOBAL BUT GOVERNANCE IS STILL NATIONAL • Legislation: social definition of ethical limits • Taxation: wealth redistribution for common services and social security • International frameworks largely non-binding (labour, health, transport, intellectual property) • No global mechanism for economic management (IMF, G8, etc.) • No mechanism for global wealth redistribution • No international legislation providing common standards or a level playing field for business Economic globalization by itself is not working • Rise of the Asian economies driving delocalizations and competition for resources • Difficult transition in Central and Eastern Europe; failure in Africa • Ageing societies of Europe and Japan • America is living beyond its means • Growing extremes of wealth and poverty; exploitation of the poor, child labour; worker stress • Failure to create adequate employment • Global economy threatened by internal imbalances and external perturbations • Recent sustained growth similar to late '20s, early '70s; increasing warnings of a crash; it may already have started Financial Imbalances Example: USA Current Account Deficit The Cooper-Rogoff Debate, Davos 2006 WEF Global Competitiveness Report 2006-2007 • Larry Summers: Global imbalances are one of the most important threats to global prosperity • Richard Cooper: US current account deficit ($660b in 2004) is natural and sustainable because US is attractive to investment • Ken Rogoff: US deficit mirrors government borrowing = beginning of the end. US eating up 70% of global net savings. US housing slump could cause drop in overvalued US$ of up to 40% and loss of its role as global reserve currency, precipitating a financial market crisis with serious impact on inflexible economies of Europe and Japan DIAGNOSIS: METABOLISM SERIOUSLY OUT OF BALANCE The present economic system cannot deal with sustainability - Economic thinking is challenged by the environmental crisis (including climate change) - It can no longer insist that there is no limit to nature's capacity to fulfil any demand made on it - Attaching absolute value to growth, to acquisition, and to the satisfaction of people's wants is no longer a realistic guide to policy - Economic decision-making tools cannot deal with the fact that most of the major challenges are global The failure of social and economic development - Since World War II, development has been our largest collective undertaking, with a humanitarian motivation matched by enormous material and technological investment - While it brought impressive benefits, it failed to narrow the gap between the small segment modern society and the vast populations of the poor - The gap has widen into an abyss (Baha'i International Community, One Common Faith, 2005) CORRUPTION • The illegal economy from organized crime is now $2 trillion/year, or twice all the world's defence budgets • Bribery $1tr; counterfeiting and piracy $520bn; drug trade $320bn; human trafficking $44bn • Political corruption is everywhere; the vast majority of bribes go to people in rich countries • 10% of all public health budgets are lost to corruption • Business participates to buy advantages, for efficiency, out of fear • This results in market failures, capital loss DIAGNOSIS: CANCER METASTASIS INVADED ALL PARTS OF BODY Adding up the figures • A recent analysis of 40 years of data on human activity and environmental damage puts the cost of climate change, ozone depletion, deforestation and overfishing by rich nations at $47 trillion, more that the combined foreign debt of all poor nations • The annual investment necessary to restore the planet's productive resources is estimated at $93 billion • The biggest shortage may be of capital to make investments and repair damage At the root of all this is what could be called an ethical deficit Has national sovereignty become unethical? Even at the UN, national sovereignty is jealously protected, yet global problems require a global response. Governments do not realize that true national self-interest today is best reflected in global solidarity and a willingness to make short-term sacrifices in the common interest A self-centred materialism • The early twentieth century materialistic interpretation of reality has become the dominant world faith in the direction of society • Rational experimentation and discussion are expected to solve all the issues of human governance and development • Dogmatic materialism has captured all significant centres of power and information at the global level, ensuring that no competing voices can challenge projects of world wide economic exploitation The unsustainable consumer culture - Materialism's vision of human progress produced today's consumer culture with its ephemeral goals - For the small minority of people who can afford them, the benefits it offers are immediate - The breakdown of traditional morality has led to the triumph of animal impulses and hedonism - Selfishness has become a prized commercial resource; falsehood reinvents itself as public information; greed, lust, indolence, pride, violence are broad accepted and have social and economic value The wealthy live unsustainable lifestyles DIAGNOSIS: INFANTILE NARCISSISTIC SELF-DELUSIONAL COMPLETELY DETACHED FROM REALITY Integrating all the driving forces: environmental, social, economic, ethical What are the implications for planetary sustainability? Ecological footprint • Surface needed to supply the needs and absorb the wastes of an individual, community, or country • Global average 2.3 ha/person • Italy 3.26 ha/person (lowest in western Europe) • France 5.74 ha/person, Switzerland 5.26 ha/p. • Resources available 1.9 ha/person • We overshot the earth's capacity in 1975 http://www.globalfootprint.org/ http://www.ecologicalfootprint.org/ http://www.myfootprint.org Scenarios plausible futures • Business as usual in a materialistic society ignoring the future • Retreating to a fortress world of old values • Making a transition to sustainability Scenarios from World 3 (Meadows et al. (1992) Beyond the Limits) Business as usual Transition 1995 Transition 2015 PROGNOSIS RESERVED: MAY SOON REQUIRE INTENSIVE CARE Sustainability is fundamentally an Ethical Challenge Sustainable development is at the interface of science and ethics • We need to redefine "development"(= growth for economists) within a more universal framework including society, culture, science and spirituality • What is our purpose as individuals and as a society? • What are some of the ethical principles that should guide society towards sustainable development? PRESCRIPTION 1: PSYCHOTHERAPY HEALTH EDUCATION Sustainability – an ethical concept We are trustees or stewards of the planet's resources and biodiversity. We must - ensure sustainability and equity of resource use into distant future - consider the environmental consequences of development activities - temper our actions with moderation and humility - value nature in more than economic terms - understand the natural world and its role in humanity's collective development both material and spiritual Sustainable environmental management must come to be seen not as a discretionary commitment mankind can weigh against other competing interests, but rather as a fundamental responsibility that must be shouldered, a pre-requisite for spiritual development as well as the individual's physical survival. (based on Bahá'í International Community, Valuing Spirituality in Development. 1998) For social sustainability In increasingly diverse communities, how do we go from prejudice and withdrawal to open integration and unity? Community How do we create unity in diversity? What is the best size for a community? What does the information revolution mean for community life and organization? The importance of values • Ethics and values are what determine how humans relate to each other • They are the social equivalent of DNA, encoding the information through which society is structured • The most effective way to transform society is to change its values • What values will help us to improve the state of the world in the 21st century? • • • • • • • Values for a sustainable society Justice Solidarity Altruism Cooperation Trust Moderation Service JUSTICE AND EQUITY - It is unjust to sacrifice the well-being of most people -- and even of the planet itself -- to the advantages which technological breakthroughs can make available to privileged minorities - Only development programmes that are perceived by the masses of humanity as meeting their needs and as being just and equitable in objective can hope to engage their commitment, upon which implementation depends (based on Baha'i International Community, Prosperity of Humankind) Solidarity and Altruism We should consider every human being as a trust of the whole. The goal of wealth creation should be to make everyone wealthy. Voluntary giving is more meaningful and effective than forced redistribution. Cooperation and Reciprocity Cooperation and reciprocity are essential properties of all natural and human systems, increasing in more highly evolved and complex systems Trustworthiness Trust is the basis for all economic and social interaction Public opinion surveys show little trust in politicians and business Would you sign a contract with someone you did not trust? Moderation in Material Civilization The civilization, so often vaunted by the learned exponents of arts and sciences, will, if allowed to overleap the bounds of moderation, bring great evil upon men.... The day is approaching when its flame will devour the cities... Bahá'u'lláh (1817-1892) All religions have taught Contentment – moderate lifestyles ...be content with little, and be freed from all inordinate desire. (Bahá'u'lláh) What does this imply for the consumer society? Present institutions have failed to address such global challenges • No politician will sacrifice short-term economic welfare, even while agreeing that sustainability is essential in the long term • Deep social divisions within societies and between countries prevent united action in the common interest • Climate change is just one symptom of the fundamental imbalances in our world • Our present economic system is incapable of addressing long-term issues Sustainability requires rethinking economics - The present economic system is unsustainable and not meeting human needs - 50 years of economic development, despite some progress, has failed to meet is objectives - The global economic system lacks global governance - It is not the mechanisms of economics that are at fault, but its values A more sustainable economics - Economics has ignored the broader context of humanity's social and spiritual existence, resulting in: - Corrosive materialism in the world's more economically advantaged regions - Persistent conditions of deprivation among the masses of the world's peoples - Economics should serve people's needs; societies should not be expected to reformulate themselves to fit economic models. - The ultimate function of economic systems should be to equip the peoples and institutions of the world with the means to achieve the real purpose of development: that is, the cultivation of the limitless potentialities latent in human consciousness. (adapted from Bahá'í International Community, Valuing Spirituality in Development, We need new economic models that - further a dynamic, just and thriving social order - are strongly altruistic and cooperative in nature - provide meaningful employment - help to eradicate poverty in the world - give the right signals for challenges like climate change and sustainability Preserving the Ecological Balance For the sustainable economic and social development of all countries, agriculture and the preservation of the ecological balance of the world are fundamental. Living within environmental limits is possible To maintain a sustainable balance, we must: - reduce our material consumption with simpler lifestyles emphasizing social, cultural and spiritual wealth; - redesign material civilization based on renewable resources, energy economy and materials recycling in closed systems; - reduce human impacts to a level appropriate to the vulnerability and resilience of natural systems; - restore damaged systems to the level necessary to maintain natural and human ecosystem services; - allow development and population growth only to the extent that system improvements extend the carrying capacity of planetary systems. The Promise of Renewable Resources To be sustainable long into the future, the economy must be based on renewable resources (agriculture, forests, fisheries, bio-industries), closed materials cycles and integrated product lifecycles PRESCRIPTION 2: STRENGTHEN THE IMMUNE SYSTEM Globalization requires a new entrepreneurship We are in the middle of a major transformation in society The past is not a good predictor of the future Change is inevitable, and the rate of change is accelerating, requiring adaptive management Globalization cannot be stopped, but it can be transformed Institution building for international governance will continue We can consciously work for change, or wait for catastrophe to force us to change There will be new forms of wealth creation and business Creativity and innovation will be increasingly necessary for success Values and ethics will be fundamental to social and economic transformation The goal: an organically united world Good for society Good for business AIESECers have the perfect profile Value-driven Unity in diversity Entrepreneurial Creative Leadership Become the new responsible entrepreneurs The years ahead will be difficult, but there is reason for hope Thank you The planet will thank you too