Unit 4, GRE401

transcript

Sustainable Development and the Prospects of Paradigm

Sustainable Development and Competitive Advantage

Unit 4, Part 1

Outline1) Thomas Kuhn and the theory of scientific

revolution2) Normal science and paradigm shift3) The current crisis in neo-classical economics

1) THOMAS KUHN AND THE THEORY OF SCIENTIFIC REVOLUTION

• Kuhn wrote the 1st edition of The Structure of Scientific Revolutions in 1962

• Introduces concepts to help explain how changes have occurred in the past, and of the forces currently working either to promote further change or, indeed, to prevent change.

http://pup.princeton.edu/titles/7041.html

Thomas Kuhn (1922-96)

The scientific community• Kuhn describes a scientific community as a group of

scientists with similar education, acquainted with the same scientific literature

• There are professional societies, journals and conferences devoted to their particular branch of science

How a scientific community functions

• There are also informal communication networks; e.g. they circulate drafts of their work, and frequently cite one another in a complex network of citation linkages.

• Kuhn defines the scientific community as ‘the producers and validators of scientific knowledge’ (Kuhn 1962, p. 178).

The paradigm

• The paradigm is Kuhn’s central concept, and it is integral to concept of the scientific community

• A paradigm is defined by Kuhn as a ‘disciplinary matrix’; i.e. a set of ideas, models, values and attitudes accepted by members of the scientific community.

The advantages of a paradigm• Acceptance by the members

of the scientific community means energies can go to further developments of the paradigm

• The fundamentals have been expressed in the form of the paradigm, and have become a starting point for further research

The advantages of a paradigm• The paradigm sets the research direction of that particular

community, and enables members to distinguish themselves from competing communities/paradigms

• It is also a sign of discipline maturity.

The disadvantages of a paradigm

• Those who adhere to one paradigm accept innovation within the context of that paradigm, but they strongly resist changes that threaten the fundamentals of the paradigm

The disadvantages of a paradigm• It is not uncommon to find obstacles in the path

of new paradigms:– Intellectual obstacles– Financial obstacles

• The result?

Sanitisation of the science• The forces of the paradigm act

as ‘unofficial censors’• The paradigm and its supporters

tend to sanitise the science, and to insulate it from newly-emerging real world problems

Science, but not our science

• They become a reactionary, conservative force, intolerant of new theories

• In many cases, new and important problems are ‘defined away’; i.e. issues are declared to be outside the realm of interest of the scientific community

• e.g. economics has nothing to do with biodiversity

2) NORMAL SCIENCE AND PARADIGM SHIFT

• Normal science – the day-to-day activity of a scientific community

• In pursuing normal science, scientists are concerned with puzzle-solving

• A puzzle in this context is a category of problems that test the ingenuity and skill of the scientists, but they are problems that can be solved with the application of the current paradigm.

Anomaly and crisis• If the paradigm continues to solve the puzzles, then there

is no impetus for change• But if some important aspects of reality cannot be solved

by the paradigm, professional insecurity and tension mounts

Anomaly and crisis• The first reaction to a state of anomaly is not to abandon

the paradigm, but to try harder to make it work• While a state of crisis does not necessarily precede a

‘revolution’, it is a usual occurrence.

Scientific revolution• Scientific revolution, or

paradigm shift, is the transition from one paradigm to another

• Unlike a political revolution, a scientific revolution does not involve bloodshed and violence, but both kinds are the result of profound discontent

Scientific revolution• After the revolution, the new paradigm does not

necessarily replace the old one completely, but most parts of the old paradigm, which are incompatible with the new, have to be dropped.

Post-revolution• Serious intellectual and

psychological difficulties may ensue for those who adhered strongly to the incompatible parts of the old paradigm

• Some will be persuaded and converted to the new paradigm, but some will resist

Post-revolution• After years of research in the previous paradigm, and

having achieved personal status and fortune through its promotion, there will obviously be a reluctance to concede their efforts have been misdirected.

3) THE CURRENT CRISIS IN NEOCLASSICAL ECONOMICS

• It is easy to see how certain sections of the economics profession close ranks against new problems by defining them as beyond the realm of economics

• They are often reluctant to extend the boundaries of economics into areas that border on politics, sociology, or environmental ethics

• As a result, important economic issues such as those associated with environmental degradation are rarely taught in mainstream economics courses, and are often regarded as not truly ‘scientific’.

‘Academic scribblers’• ‘Madmen in authority, who hear voices in the air,

are distilling their frenzy from some academic scribbler of a few years back. I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas. Not, indeed, immediately, but after a certain interval; for in the field of economic and political philosophy, there are not many who are influenced by new theories after they are twenty-five or thirty years of age, so that the ideas which civil servants and politicians, and even agitators apply to current events are not likely to be the newest.’

Keynes, J.M. (1936), The General Theory of Employment, Interest and Money, pp. 383-84

John Maynard Keynes

(1883-1946)

http://www.jobsletter.org.nz/jbl04610.htm

Business Leadership as a Catalyst for Change

Unit 4, Part 2:

Outline1) Business leadership as a catalyst for change2) Business approaches to sustainable

development3) Summary and conclusions

1) BUSINESS LEADERSHIP AS A CATALYST FOR CHANGE

• Serious change in unlikely in any society so long as the people in the seats of power (and their advisors) continue to be the products of the mainstream paradigm

People respond to incentives

• Human behaviour is such that it only responds to incentives, and so long as the incentive to embrace paradigm shift remains weak (or non-existent), the prospects of change are remote.

The most powerful institution within the political economy

• Business is the only institution powerful enough to quickly foster the changes necessary for ecological and social sustainability

• The profit motive has an important role to play (something largely absent within academe and state bureaucracies)

The key ingredient

• For business to take up the challenge, sustainable behaviour must be a source of competitive advantage

• The vital ingredient is education of business leaders.

SD adoption dynamics• If it can be demonstrated that a

business strategy based on SD is capable of providing a competitive edge in the marketplace

• Then it is possible for positive feedback to prompt a logistic or ‘S-shaped’ pattern of adoption, and for paradigm shift to be effected.

2) BUSINESS APPROACHES TO SUSTAINABLE DEVELOPMENT

• An array of tools and approaches have been developed that focus on various aspects of sustainability. These include, for example:– The 4 central strategies of ‘natural capitalism’– The Natural Step (TNS)

• NB. This is not an exhaustive list.

Creating the next industrial revolution?

• Radical resource productivity

• Biomimicry

• Service and flow economy

• Investing in natural capital

See, also by Paul Hawken, (1994) The Ecology of Commercewww.naturalcapitalism.org

Paul Hawken, Amory and L. Hunter Lovins propose 4 central strategies of natural capitalism:

Radical resource productivity

• Using resources more efficiently in ways that can already be achieved; e.g. process redesign (disembodied technical change) or energy efficient buildings, passive solar heating.

Reorient to a service and flow economy

• Focuses more on selling and purchasing services rather than products

• Makes manufacturers more ecologically responsible

Invest in natural capital

Research biomimicry

Spider silk

Abalone shell

Stenocara beetle

The process of creative destruction

• Describes the process of industrial transformation that accompanies radical innovation

• Innovation sustains long-term economic prosperity, even as it destroys the value of established companies

Professor Joseph Schumpeter 1883-1950

3) SUMMARY & CONCLUSIONS

The role of government• Unfortunately, governments are often motivated

by the political cycle

• For this reason, command-and-control solutions are not expedient

• At the very least, governments need to provide the legislative framework to change behaviour; e.g. ecological tax reform

The role of business• Business is more dynamic than government

• There is a competitive advantage to be gained from developing a business strategy based on sustainable development

• Supply-side: reduce costs

• Demand-side: attract environmentally-conscious customers

The role of the individualTime to have a rethink

Case Study:

The Paradigm Shift: Does it have to be Painful?

“If it’s that bad won’t we react?”

Image source: The Guardian

Deepwater Horizon, April 2010

• My administration is intensively engaged with scientists and engineers to explore all alternative options, and we’re going to bring every resource necessary to put a stop to this thing … But a lot of damage has been done already – livelihoods destroyed, landscapes scarred, wildlife affected. Lives have been lost. … We will not rest until this well is shut, the environment is repaired, and the cleanup is complete.’

Discuss

• Can a paradigm shift from industrial capitalism to natural capitalism proceed relatively painlessly? Or is Paul Gilding a scaremonger?

• Can economists and government advisors continue to put faith in macroeconomic policies for economic growth that rely so heavily on energy from fossil fuels?

• If disasters like Hurricane Katrina, the Deepwater Horizon, rapidly melting ice sheets are insufficient to serve as a catalyst for paradigm shift, what kind of event is required?

Consider, for example, …

Deliver

Prepare a 10 minute presentation outlining your analysis of the prospects for paradigm shift

• Are you optimistic, pessimistic, or somewhere in between?

• Suggest what sequence of events might bring about a paradigm shift

• What key initiative would you like to see implemented to serve as a catalyst for change?

• PowerPoint slides for Unit 4 (especially Part 1)

• Study Guide notes for 4.1 and 4.2• Also revisit Unit 2 on ecological

economic efficiency

Unit 4, GRE401

Education