Economic growth is not a panacea

For decades, the world's poor have been told that the growth of national economies will increase prosperity for all, but the experience of over sixty years of international development efforts has shown that this is only partially true at best. Gains have not been shared equally with the wealthy already benefiting from greater proportionality than the poor, and in times of economic recession experienced since 2007, the rich have been able to continue to increase their wealth , while the mass of people has suffered increased poverty.

In the 1960s, economists told developing countries that if they invested in large industrial companies, the entire population would benefit from the grass roots of what was called the 'trick-down' effect. It was also often said that a rising tide would lift all boats. Trickle-down was soon seen as a show of imagination, and it was a strange tide that lifted the big ships higher than the rowboats. These delusions should have been put to rest in 1972 by the publication of Dr. E F Schumacher's famous book: Small is Beautiful, but the contradictory tones of multinationals have been able to drown out the voice of reason and compassion.

We live on a planet with limited resources, and it has long been clear that there must be a limit to growth. The world should plan for a sustainable stable economy, but one in which wealth is equitably distributed between nations and between individuals. The enemy of this ideal is big business, linked to growth and inequality. Large corporations have become too powerful and are able to advance their own interests by dictating government policy. They continue to justify their demand for further growth by preaching the CBD of attrition and rising tides.

The recent recession revealed the fortifications of the big banks and the government's strict regulation was granted temporary support. Banks are curling to flee, but efforts to regulate their activities or bring banks directly under state control should not be abandoned. The same curbs should be extended to all large companies with strict limits on size and range of functions. When governments have large corporations under control, they can return to act in the best interests of the nation. The steady state economy can be planned, with each giving according to his ability and each beneficiary according to her needs.