Month: August 2023

There are moral, social and economic arguments in favour of reducing inequality.

Dr. Trevor Hancock

22 August 2023

699 words

The second great turnaround proposed by the Club of Rome’s 21^st Century Transformational Economics Commission in their “Earth For All” report is to reduce inequality within nations. As I noted last week, there are moral, social and economic arguments in favour of reducing inequality. As the report bluntly states, “extreme inequality is a destructive force in society”, while “countries where citizens are economically more equal function better.” 

The Commission notes the problems resulting from inequality include skewed political power, over-consumption among the rich and the appropriation of ‘the commons’ through privatization – not just land, but data and knowledge too. To this we might add that high levels of inequality lead to a sense of powerlessness and hopelessness, and the potential for heightened social conflict.

Inequality has been increasing around the world in recent decades, as it has in Canada. The World Inequality Report 2022 (WIR) stated: “Income and wealth inequalities have been on the rise nearly everywhere since the1980s following a series of deregulation and liberalization programs”. But, the report added, different countries displayed different degrees of rising inequality, indicating that “inequality is not inevitable, it is a political choice.”  

Earth4All proposes three main levers to address inequality within nations: “more progressive taxation on both income and wealth for individuals and corporations; strengthening labor rights and trade unions’ negotiating power”; and innovations such as a universal basic income that can both share prosperity and provide security.

What would this mean in Canada? First, we forget we were less unequal in Canada before the advent of neoliberal ideology and economics. The WIR points out that “inequality in Canada . . . was maintained at low levels from the 1950s to the 1980s”, but that “income inequality in Canada has been rising significantly over the past 40 years”. This was attributed to a combination of financialization (an increase in size and importance of the financial sector), deregulation and lower taxes since the 1980s.

Specifically, in 1980, the top 10 percent of income earners took almost 35 percent of national income, while the bottom half of the population took almost 20 percent. Today, the WIR notes, the top 10 percent take just over 40 percent of national income, while the bottom half take only 15.6 percent. This makes Canada more unequal than the EU, but less unequal than the USA.

Wealth inequality in Canada is even more dramatic, and has remained relatively unchanged since the mid-1990s: The top 10 percent own over 57 percent of wealth (and the top 1 percent own 25 percent), while the bottom half own less than 6 percent of wealth.

Second, we also forget the workforce was more unionized forty years ago. A 2022 Statistics Canada report notes that unionization among full time employees dropped by almost a quarter, from 40 percent in 1981 to 30 percent by 2022, and remained low, at 23 percent, among part-time employees

We also forget the reason for unions and the benefits they bring. They were and remain a way for workers – which is most of us – to resist the power of large corporations, for whom cheap labour and low or non-existent benefits and pensions and poor working conditions are all good ways to save money and increase profits.

It has been one of the triumphs of corporate power to persuade today’s gig workers that they are better off with low paid, part-time and temporary work with few or no benefits. But the impacts in terms of low income, poverty and stress, among other costs to people and society, are significant. Moreover, a 2021 study from the Economic Policy Institute in the USA found that the 17 states with the highest rates of unionization “have more equitable economic structures, social structures, and democracies”.

As to the third strategy, readers may recall that I argued recently that we would need to tax robots and AI so as to redistribute the wealth they create, providing the basis for a universal basic income. The Earth4All report also proposes a Citizen’s Fund to share the dividends created through (environmentally responsible) exploitation of a nation’s shared natural wealth. Ideas such as these need to be discussed if we are to reduce inequality in Canada and globally.

© Trevor Hancock, 2023

thancock@uvic.ca

Dr. Trevor Hancock is a retired professor and senior scholar at the

University of Victoria’s School of Public Health and Social Policy

Humans must move from a society focused on “me” to one focused on “we”

Dr. Trevor Hancock

15 August 2023

700 words

In the past few weeks I have been stressing the need for a rapid transformation of our society if we are to ensure people around the world can have good lives within planetary boundaries.  A recent article in a (British) Royal Society journal by Professor Timothy Lenton, a leading Earth system scientist and Director of the Global Systems Institute, University of Exeter and Marten Scheffer at Wageningen University, makes the same point.

They suggest there are two main ways in which “the industrialized modern growth regime” is a threat to itself, which means, of course, a threat to our societies and to ourselves. First, “the growing consumption of non-essential goods, services and associated resources is causing climate change, loss of nature and disruption of humanity’s life-support system”; second, they state, “appropriation of resources by the richest is exacerbating inequality between nations and within some of the richest nations, producing geopolitical tension, social unrest and conflict (despite average wealth increasing).”

After looking at the process by which “human systems . . . come to dominate and transform the world”, they conclude that “to escape a bleak Anthropocene will require abruptly shifting from existing unsustainable ‘vicious cycles’ to alternative, sustainable ‘virtuous cycles’”. But they add that this will require “a revolutionary cultural shift from maximizing growth to maximizing persistence”, or as the Science Council of Canada put it almost fifty years ago, from a consumer to a conserver society.

It will also require another key shift in core values, in order to address the threat of growing inequality noted above: From a society focused on ‘me’ to one focused on ‘we’, from the hyper-individualism of neo-liberalism to a concern for our neighbours and, as Indigenous people put it, for ‘all our relations’.

Earth For All, a 2022 report to the Club of Rome from its 21^st Century Transformational Economics Commission, is focused on exactly this necessity. The key point of the report is inherent in its title; this is not Earth for a few, nor just for some, not even for many, but for ALL. It stems from a deeply humane concern to include everyone, to ensure everyone in the world has their basic needs met and that they enjoy good health, a sense of wellbeing and a decent quality of life.

The argument here is not for absolute equality, but for equity. In my field of population health, inequity – its opposite – is understood as unfair and unacceptable inequality. In other words, we recognize that in health, as in the rest of life, there will always be differences, inequalities. What matters is whether those differences are considered fair or just. Many would argue that the current level of inequality between rich and poor is neither fair nor just, and thus is unacceptable.

For those who have problems dealing with the strong moral argument to reduce inequality and achieve equity, I advance a strong social benefit. As the Earth For All report notes: “Countries that are more equal perform better in all areas of human wellbeing and achievement than countries with divisive levels of income inequality.” And since there are large economic costs both in lost productivity and lost contribution to society and in added cost to deal with health, social and other problems, this constitutes a strong economic argument for greater equity.

The Earth For All report proposed five ‘great turnarounds’ or transformations to create a sustainable society, the first three of which are focused on inequality: Ending poverty globally, addressing gross inequality within nations and empowering women. The fourth great turnaround involves redesigning our food systems to make them healthy for both people and the planet, while the final great turnaround is focused on transforming our energy systems.

Underlying these five transformations is a sixth; a shift from “Winner takes all” capitalism to what the report calls “Earth4All economies”. Such economies are based on “securing a people’s wellbeing by securing their shared commons”, by which is meant the ecological determinants of our shared health – land, water, air, food, a clean and safe environment, biodiversity, a stable climate and so on.

I addressed the first turnaround, ending poverty globally, in December. Next week I will start to look at the remaining turnarounds.

© Trevor Hancock, 2023

thancock@uvic.ca

Dr. Trevor Hancock is a retired professor and senior scholar at the

University of Victoria’s School of Public Health and Social Policy

Capitalism is itself a giant income redistribution scheme, transferring money from the poor to the rich.

Dr. Trevor Hancock

8 August 2023

700 words

Last week I looked at the 1977 Science Council of Canada report ‘Canada as a Conserver Society’. The report recommended “Canadians as individuals, and their governments, institutions, and industries, begin the transition from a consumer society preoccupied with resource exploitation to a conserver society engaged in more constructive endeavours.”

As opposed to a consumer society, stated the report, a conserver society “promotes economy of design of all systems, i.e., ‘doing more with less’; favours re-use or recycling and, wherever possible, reduction at source; questions the ever-growing per capita demand for consumer goods, artificially encouraged by modern marketing techniques, and recognizes that a diversity of solutions in many systems, such as energy and transportation, might in effect increase their overall economy, stability, and resiliency.”

Regrettably, we did not make that transition and have lost the opportunity for the gradual transition that was called for. Fifty years later, the hole we have dug for ourselves is now much deeper, and thus the transition must be faster and the rate of change steeper; we now need not just a gradual transition but a rapid transformation, and one that addresses not only the ecological realities we face, but the social realities too.

Chief among the latter, as UN Secretary General Antonio Guterres stated in February, is that “Extreme wealth and extreme poverty rage on. The gulf between the haves and have nots is cleaving societies, countries and our wider world.”

So I was glad to see that in calling for the transition, the authors of the Science Council report added: “Ideally, Canada could provide the leadership necessary to work toward more equitable distribution of the benefits of natural resources to all mankind.” It is that more equitable distribution I begin to address this week.

Now any time I raise the issue of a more equitable distribution of wealth and income it leads to accusations this is socialism or communism and that, as one recent letter writer to this paper put it, “’climate justice’ sounds too much like a giant income redistribution scheme”. But what this view fails to recognise is that capitalism is itself a giant income redistribution scheme, transferring money from the poor to the rich.

In a November 2019 column I noted that Bruce Boghosian, a professor of mathematics at Tufts University, reported in an article in Scientific American that “far from wealth trickling down to the poor, the natural inclination of wealth is to flow upward, so that the ‘natural’ wealth distribution in a free-market economy is one of complete oligarchy” – a situation in which one person owns everything. Importantly, he adds, “it is only redistribution that sets limits on inequality.”

So to be clear, when I talk about redistribution, it is because we need to set limits on inequality in the context of a finite planet where excessive resource consumption and pollution by the wealthy makes it impossible for the poor to meet their basic human needs.

That is what I meant when I wrote last week that neoliberalism is inhumane, which the Oxford Dictionaries define as “without compassion for misery or suffering; cruel.” Neoliberalism puts money before the wellbeing of people, communities and nature, even though the latter underpins the wellbeing and indeed the very survival of people. In viewing these as ‘externalities’, it denies people their humanity and their right to exist.

The great transformation to a conserver or sustainable society that we must undertake must be socially just not only for the present global population, but for future generations and for other species, so that all can thrive on this one small planet that is our only home.

Last Fall, I began exploring the proposals for a just transformation in the Club of Rome’s Earth For All framework. The authors note in their opening chapter that “the long-term potential of humanity depends upon civilization . . . undergoing five extraordinary turnarounds within the coming decades.” The first three of those turnarounds are focused on inequality: Ending poverty globally, addressing gross inequality within nations and empowering women.

I addressed the first of these in my December 4^th column, but did not complete my review of the remaining turnarounds. Next week, I will pick up where I left off.   

© Trevor Hancock, 2023

thancock@uvic.ca

Dr. Trevor Hancock is a retired professor and senior scholar at the              University of Victoria’s School of Public Health and Social Policy

The agenda for such a transformation has been known for at least half a century, but in spite of the evidence, we have not done so

Dr. Trevor Hancock

1 August 2023

700 words

In my last two columns I suggested we urgently need a rapid transformation of the major systems that make up society and underpin today’s dominant culture. Not only will this transformation protect the Earth systems we depend upon for our wellbeing, indeed our very survival, it will actually lead to improved wellbeing and quality of life.

Those systems include not only the obvious issues of energy use, consumption of materials, production of wastes and pollutants, food production, housing and urban development, protection and restoration of nature and so on, but the economic, legal and political systems and the social norms and cultural values that underpin society.

It is both encouraging and disturbing that the agenda for such a transformation has been known for at least half a century. Encouraging because we know what we need to do; disturbing because in spite of the evidence, we have not done so.

More than half a century ago, the Club of Rome warned of the limits to growth in its report of that name. Following up on these ideas, the Science Council of Canada’s Committee on the Implications of a Conserver Society produced ‘Canada as a Conserver Society’ in 1977. Their report mapped out “the transition from a consumer society preoccupied with resource exploitation to a conserver society engaged in more constructive endeavours.”

While the report focused on resource uncertainties and the need for new technologies and made recommendations in the areas of transportation, shelter and community, renewable energy sources and materials conservation, the authors recognised the needed changes were more profound.

As the Chairperson noted in her letter of transmittal to the Chair of the Science Council, while science and technology are important, “finally, however, the choice comes down to a matter of social preferences, and its implementation often waits on political will.”

That Chairperson was Professor Ursula Franklin, a distinguished physicist and humanitarian at the University of Toronto. It is worth repeating at length here some of what she had to say in her letter, beginning with this: “The need to come to terms with resource scarcity, environmental pollution and the associated social questions is . . . recognized throughout the world, often much more keenly than in our country.”

She went on to write: “It is now understood that in many fields the continuing expansion of current practices will not be possible in the future”, adding that “to suggest that moving toward a Conserver Society means regression, or moving ‘back to the woods’, is totally misguided.”

But unfortunately, she noted, “the awareness and the willingness which I sense at the grassroots seem to find at best a reluctant political expression. It may be that this apparent inertia is due to the lingering of the old illusion that Canadians, as a small population possessing immense natural resources, have only to sit back and let the world take its course, to enjoy perpetual prosperity.” Sadly, that view is still around 50 years later, as the recent article by Gwyn Morgan so clearly illustrated.

Dr. Franklin concluded: “I can only hope that this study will help to destroy that mirage and free Canadians for action. Not only are we not as rich as we have grown to think, but our complacency and indecision could cause us to miss participating in the most stimulating and rewarding global tasks of the next decade. Not to respond now could mean losing control over the design of our future. As I hand over this Report, I can only pray that its insights will be used and that it may become, in the hands of many Canadians, a tool for the good of all.”

Well, it didn’t happen. Dr. Franklin and the Committee were right, but the political will was missing, as the political and corporate elite were still wedded to growth and economic expansion. Within a few years, the environmentally destructive and inhumane ideology of neo-liberalism, ushered in by Margaret Thatcher and Ronald Reagan, had become mainstream orthodoxy, bringing us to the current polycrisis.

50 years ago we missed the opportunity then to begin the transition from a consumer to a conserver society. Now the need for a major transformation is urgent; we cannot miss it again.

© Trevor Hancock, 2023

thancock@uvic.ca

Dr. Trevor Hancock is a retired professor and senior scholar at the              University of Victoria’s School of Public Health and Social Policy

(Published as “A polycrisis is greater than the sum of its parts”)

It’s not just a set of isolated crises happening at the same time, but a set of interacting crises that are “producing far greater harm together than the sum of harms they’d produce in isolation”

Dr. Trevor Hancock

25 July 2023

700 words

Last week I suggested that we need to listen to the so-called ‘doomsayers’ – those who study global change and have been raising concerns for decades about the unsustainable path on which we are embarked. Regrettably, and perhaps disastrously, they – we – have been largely ignored, in favour of a ‘business as usual’ approach.

So we now find ourselves in what some – including the Cascade Institute at Royal Roads University – are calling a polycrisis. (In the interest of transparency, I am a member of the Institute’s Scientific Advisory Board). Antonio Guterres, the UN Secretary General, drew attention to this emerging phenomenon in his speech to the UN General Assembly in February, outlining the UN’s priorities for 2023.

“We have started 2023 staring down the barrel of a confluence of challenges unlike any other in our lifetimes”, he said, and went on to list the challenges: “Wars grind on. The climate crisis burns on. Extreme wealth and extreme poverty rage on. The gulf between the haves and have nots is cleaving societies, countries and our wider world. Epic geopolitical divisions are undermining global solidarity and trust.” 

His list does not even include the Covid-19 pandemic, from which the world was slowly emerging, nor does it list biodiversity loss and pollution, the other two components  – along with climate change – of what the UN Environment Programme calls “a triple crisis”.

The Cascade Institute has an even longer list that make up the polycrisis which it is studying. In addition to those listed by Guterres, they include financial system instability, ideological extremism, pernicious social impacts of digitalization, cyber attacks, mounting social and political unrest, large-scale forced migrations and an escalating danger of nuclear war.

The Institute is one of a number of centres around the world that are studying the polycrisis; others include the Institute for Advanced Sustainability Studies in Potsdam, Germany and the Centre for the Study of Existential Risk at the University of Cambridge. In a February article in the Globe and Mail, Institute Director Thomas Homer-Dixon and two of his colleagues discussed the concept of a polycrisis.

While some dismiss the idea as simply meaning “there’s lots of bad stuff happening simultaneously and one thing can affect another”, as one critic of the idea put it, a polycrisis is more than that. Its not just a set of isolated crises happening at the same time,  wrote Homer-Dixon and his colleagues, but a set of interacting crises that are “producing far greater harm together than the sum of harms they’d produce in isolation”; in short, a polycrisis is greater than the sum of its parts.

Today’s crises they wrote, “simultaneously span natural, political, economic and technological systems, because they’re driven by a multiplicity of underlying ‘systemic risks’.” Moreover, those crises “are not only worse than they were one or two decades ago, they’re also getting worse faster”, and often happening at the same time. So what should we do in the face of a global polycrisis? If, as Naomi Klein wrote in 2014, climate change“changes everything”, surely that is even more true of a polycrisis?.

A simple yet profound way to think about systems is provided by the Institute for Healthcare Improvement in its slogan: “Every system is perfectly designed to get the results it gets .“ Our system seems to be perfectly designed to disrupt the Earth systems that are our life support systems, while at the same time creating massive inequality and poverty and all the other elements of the polycrisis.

So if we want to change the results, we have to change the systems that underlie the polycrisis and lead to those results. And that is the second main focus of the Cascade Institute’s work; given the possibilities of rapid transformation inherent in complex systems, can we identify ways to trigger what the Institute calls ‘virtuous cascades’ of positive change? Just as we can hit tipping points that take us into deep trouble, we should be able to find tipping points that take us in the right direction.

Almost 50 years ago we missed that opportunity, as I will discuss next week. We can’t afford to fail again as we work to change everything.

© Trevor Hancock, 2023

thancock@uvic.ca

Dr. Trevor Hancock is a retired professor and senior scholar at the

University of Victoria’s School of Public Health and Social Policy