We are at an unprecedented historical moment where three crises converge economic, energy and ecological. Unemployment, climate change, loss of biodiversity, overexploitation of resources, social inequality, price volatility of raw materials, and the more than expected rise in the price of energy are sources of instability for our society. In the current context, the only way to guarantee the well being of citizens is to reduce vulnerability to the shocks derived from the triple crisis. Abdunazarov Saidahmad "From the Economy of the U's to the Green Economy" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-4 , June 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31239.pdf Paper Url :https://www.ijtsrd.com/management/business-economics/31239/from-the-economy-of-the-us-to-the-green-economy/abdunazarov-saidahmad
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inequality between rich and poor hasincreased. Overall -the
Asian economies in particular - we have been very
ineffective in transforming natural resources into human
well-being.
RESEARCH MATERIALS
The root of the problem lies in an economic model that does
not recognize the ecological limits of the planet and that
generates social inequality. The main objective of today's
economy is to maximize capital. It is a model that leaves no
room for improving things for people or the planet - for they
are merely factors of production that must be used as
efficiently as possible to generate economic growth(Pic-1).
Picture1. The role of INPUT and OUTPUT in green
economy
The economic model we want is one that maximizes the
welfare of people by using natural resources efficiently. The
economy is the factor that mediates between the
fundamental "input" (natural resources) and the final
"output" (citizens' welfare).Amodel in whichtheeconomyis
at the service of people and not the other way around.
The severity of the economic and environmental challenges
we face combined with the inefficiency of the current model
to neutralize the 5i's presented above, invites us more than
ever to rethink the validity of the current economic model
and many of the basic principles on which conventional
economic theory and practice are based; and to dispel some
of the myths and/or half-truths strongly anchored in
consciousness of citizens, businessmen and rulers as for
example:
It is possible to grow infinitely on a finite planet.
All natural capital is replaceable.
Future generations will always be richer than we are.
Wealth sooner or later is passed on from rich to poor.
People always make rational decisions.
All the market agents are perfectly untrained.
Many of these symptoms have been identified for years but
have not received the attention theydeserve.Butthecurrent
crisis could help change this. The need to revise some of
these principles is not only on the lips of a small group of
economists. A growing number of economists and
representatives of institutions arequestioningsomeofthese
precepts.
Nicholas Stern, former chief economist of the World Bank,
used a discount rate of 1% in his influential report
"Economics of climate change" sparking off a great debate.
The economists of the TEEB project (The Economics of
Ecosystems and Biodiversity) led by Pavan Shukdev, a
former executive of Deutsche Bank, used an even lower
discount rate.
Another example is in the words of Alan Greenspan, former
head of the United States Federal Reserve, shortly after the
financial crisis erupted: "I have discovered a flaw in the
system that I believed to be a source of wealth and
prosperity for society".
On the one hand, the crisis has provoked short-lived
reactions on the part of governments anda closinginonnew
ideas, which creates an unfavorable context for making a
transition to a new economic model, but at the same time it
has also reopened the debate on the need to build a new
economy.
REBOUNDING FROM THE CRISIS
The current economic model is only stable if there is
liquidity and if consumption grows. But it is also a condition
for its viability that it operates within the ecological limitsof
the planet. Currently, we are between a rock and a hard
place. On the one hand we have to grow in order to generate
employment and stabilize the economy, but we cannot
continue to grow as we have been doing until now because
we are approaching the ecological abyss. How do we get out
of the quagmire?
Stabilizing the economy from the perspective of the current
model requires a return to growth as soon as possible:
promoting consumption, generating employment, reducing
public deficits and regaining the confidence of international
markets. Obtaining the level of financing necessary to
reactivate the economy is one of the greatest challenges, but
even greater is the challenge of reconciling economic
recovery with the reduction of risk and ecological
vulnerability.
The Green New Deal published in 2008 by a group of British
authors shortly after the onset of the financial crisis
proposes an investment aimed at decarbonizing the
economy, reducing energy dependence on non-renewable
energy and improving efficiency and resourcesavings.Some
of the sectors that fall into this category include
Renewable energies (solar, wind, etc.).
Energy efficiency (reforms in housing and commercial
and public buildings).
Innovation and green technology.
Restoration of the natural environment.
There is a consensus on the need to make a transition to a
green economy and the direction to be taken (creating jobs,
less C, less fossil energy, restoring the natural environment,
more social justice). But if we look at the response that
governments are making to the crisis, we see that despite all
the rhetoric about the green economy, the response is the
opposite.
In the last five years, the false cliché that environmental
protection is at odds with economicprogresshasbeenheard
more frequently than usual. "I am fed up with the milonga of
sustainable economy" said Javier Arenas in the last
Andalusian elections. Phrases like these are no exception.
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Environmental protection continues to be presented as an
obstacle to progress rather than a solution - or condition -
for it. Environmental protection is spoken of as a luxury that
we cannot afford when in fact the luxuryisnottothink about
it.
Pic2. Green economy priority areas
CONCLUSION
Government action over the past few years bears witness to
this. Continuous references aremadetotheneedtoreturn to
the brick economy which has been one of the main causes of
much of the crisis. The pressure to liberalize the land grows,
thinking that this will fix everything when in fact the
problem is not the availability of building land butthelack of
investment. Another example is the new coastal law; of
which Beldersay already gave us a prelude a few years ago
saying "the coast must be given value" - a euphemism for
saying that more must be built on the coast - and the many
projects to build on virgin beaches such as Aydarkul.
One project that has exemplified the little commitment that
governments have to the green economy, has been the
Uzbekistan project - construction of a macro complex of
hotels and golf. Uzbekistan takes us away from the green
economy and perpetuates the economic-energy-social
vulnerability of our society. However, the administrationsof
Tashkent, Samarkand and Bukhara have done everything
possible to attract the project to their regions.
Another example is tourism. We have a lot of underused
airports and unused public works; and we have to beg and
give "gifts" to Uzbekistan airways to bringmoreflightstothe
peninsula. Obviously, tourism is an important economic
sector in Spain but to think that we are going to getoutof the
crisis by attracting more millions of tourists in a context
where the price of oil will be increasingly expensive is very
short-sighted. Putting a large part of the economy in the
hands of what Mr. Aziz Abduhakimov (director of Tourism
agency) decides and the choice of holiday destinations for
millions of people is a high-risk strategy.
Continuing to prioritize economic growth without taking
into account environmental aspects increases our
vulnerability, even more so in a context of rising and volatile
energy and raw material prices. Our economy is as or more
exposed to a sharp rise in fuel prices as we were to "junk"
products before the financial crisis. The time has come to
build an economy that depends more on ourselves. An
economy that we can control and not one in which we are at
the mercy of external forces.
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