Politics, Poverty and Political Economy: The backdrop to climate change David McCoy Centre for Primary Care and Public Health, Queen Mary University Medact Friederich Hayek Neoliberalism A set of theories and beliefs • • • • • Free Markets Small states Strong private property rights Low taxation Monetary policy • • • Homo economicus Individualism All that matters can be priced • Idea of economic growth being fundamental Anglo-American roots …. • Associated with ‘globalisation’ Not ‘patriotic’ …. A political project ….. China …. Theory ≠ Practice Latin America …. So what? • Rising inequality and enduring poverty – 50% of humanity lives below $3.25 / day • Richest 2% of adults owned 51% of global assets in 2000 • Bottom half owned barely 1% Davies, Sandström, Shorrocks and Wolff, 2006. World Distribution of Household Wealth. World Institute for Development Economics Research (WIDER) Global Gini Coefficient Compared with Frequency Distribu on for Individual Countries 12 Number of Countries 10 8 6 4 2 0 20 25 30 35 40 45 50 55 Gini Coefficient (%) 60 65 70 75 80 Source: Alvaredo, Atkinson, Piketty and Saez (2013) ‘The World Top Incomes Database’, http://topincomes.g-mond.parisschoolofeconomics.eu/ Only includes countries with data in 1980 and later than 2008. Eradicating poverty ($5 / day) – requires GDP pc > $1.35m (2005 PPP) • 135x 2010 level • 40x high-income OECD average – increasing global GDP by a factor of >170 – takes >200 years at 1993-2010 global growth rate • By comparison – Poverty gap = 6.7% of global GDP (PPP) Source: David Woodward Eradicating poverty ($1.25-a-day) – requires GDP pc > $110,000 (2005 PPP) • 11x 2010 level • 3.3x high-income OECD average – increasing global GDP by a factor of nearly 15 – takes >100 years at 1993-2010 global growth rate • By comparison – Poverty gap = 0.6% of global GDP (PPP) Source: David Woodward Video: http://www.medact.org/resources/multimedia/david-woodward -rack-hot-place-can-reconcile-poverty-eradication-tackling-climate-change/ Global Growth and Poverty with Binding Carbon Constraints Carbon intensity of global GDP must fall 92-97% to limit climate change to +2°C Far beyond the potential of known/anticipated technologies Global growth Markets/ opportunities Poverty reduction Increased emissions Climate change Poverty increase So what? • Inequality and enduring poverty – The rich provoke climate change through over consumption – The poor commit ecological suicide at a local level through desperation and short term survival • Intellectual property rights regime • Corporate capture – Monopolies and oligopolies • Financialisation • Political failures / democratic deficits The Global Health Paradox Implications • Alternative development paradigm • Global governance • Political bottlenecks / millstones Between the Rack and a Hot Place: Can we Reconcile Poverty Eradication and Tackling Climate Change? David Woodward http://www.youtube.com/watch?v=rFpHs0sDKug Health professionals for a fairer, safer and better world Weapons and War Economic Justice Climate and Ecology Nuclear weapons Tax and Health Global warming Impact assessment Trade, investment and finance Nuclear energy Access to care for refugees, asylum seekers Water People held in detention Biological and chemical warfare Protection of civilians and health workers Intellectual property / Privatisation of knowledge Non-nuclear weapons Health and Human Rights Human rights medicine and medical complicity in torture Privatisation and commercialisation of health care Drones Psycho-social rehabilitation post conflict Corporate capture of public health Holistic analysis of the inter-connectedness of these issues looked through the lens of health, sustainability and justice ….. Food worth a week of discussion …… Read up Be empowered Recognise that we are led by many an emperor with no clothes …. Recognise that we are also ruled by many who need to be opposed ….. But the bulk of us are decent and sensible Thankyou