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Growing Green Economy - Globally

Group MembersMuhammad Haroon Siddiqui

Imran Ayub

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Summary

As the effect of global warming, new sectors of green economy has beenaccelerated i.e. solar, wind, biofuels, tidal projects etc, funded exceptionally bygovt. & private sector.

These investments drove by oil prices & geopolitical risk.

Venture capital provide seed funds for renewable energy sectors because US govt.

purse strings controlled by fossil fuel and nuclear interest. Excluded growing externalities from the price system has made UK, USA, Europe &

other OECD members fall behind. Brazil ( Flex fuel cars and ethanol from sugar cane)

China (Green GDP & private sector spawned companies to solar & wind technology)

India ( Decentralized village with the provision of local off-grid solar electricity)

USA & Canada ( Wasteful transportation, inefficient suburban sprawl and petroleum addiction)

By fulfilling UN millennium development goals and shifting form fossil fuel torenewable resources and their sustainability will expend global prosperity.

Cont

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Cont

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Summary

Reappraisal of the work of Charles Darwin with new evidence pointed out clearly

the evolution of human emotional capacity for bonding, cooperation and altruism.

Competition, territoriality and tribalism are the fears of the past so did the

cooperation and ability to trust and bond with each other.

Today research by scientist form many fields have invalidate the core assumptions

underlying economic model which dominate public and private decision making inmost of the countries.

While competition remains a key driver in evolution and all human affairs,

cooperation is equally important.

Social science, with the exception of economics, assumes competition and self-

interest are rooted in human nature.

Adam Smith drew parallels ascribing of Invisible Hand to Newton Physical Law Of

Motion .

The benefits of competition in societies are widely recognized. The role of

cooperation in families and communities was unpaid, unrewarded and invisible in

economic models.

Cont.

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Summary

Charles Darwin saw the human capacity for bonding, cooperation and altruism as

an essential factor in our successful evolution.

We have evolved into our complex societies, organizations and technologies of

today-we need to reexamine our belief system.

Why we underestimate our genius of bonding, cooperation and altruism-seemingly stuck in our earlier fears and games of competition and territoriality?

Why we over-reward such behavior and still assumed in our economic text books

and businesses schools that maximizing ones individual self interest in

competition with all others is behavior fundamental to human nature?

Why do the neoconservatives that drives most US policies today believe that the

individual has primacy over community? US society is highly individualistic, whereas Mrs. Thatcher sought to rescue

individualism from a more socialistic Britain.

Competition and territoriality are channeled with in the structures of cooperation

and network of agreement, contracts, laws and international regulatory regime .

Cont

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Summary This reality is now recognized as co-opetition but has not supplanted the

competition model in economic theory.

Thus the formula of success has always rested on cooperation while embracing

competition and creativity which shockingly evident in encouraging managers in

the kind of behavior that produce the wave of corporate scandal and crimes at

Enron. ( Corporate Misbehavior)

These primitive beliefs about the primacy of competition and territoriality leads to

poverty, conflicts, terrorism and war- All are rooted in ancient human fear- deeply

coded in our us-versus-them political & economic text book.

These dysfunctional beliefs are deeply entrenched in many of the models of

economics that dominate our decisions and public policies.

This malfunctioning source code underlying economics focused on moneycirculation is still replicating behaviors and organizational structure that imperil

human survival under 21st century conditions.

Echoes of obsolete theories are still heard today and propounded in mainstream

economic textbooks as theories of efficient markets

Cont

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Summary

US Federal Reserve Boards use of neutral interest rates has been exposed by the

Levy Institute as convoluted and favoring asset owners above workers wages.

Central banks hypothetical money-circulation models must be scrutinized because

these institutions have won independence from political control and exercise

enormous power over societies.

central banks lobbied for freedom from political control even by democratically

elected governments. Even Britains labor government under Tony Blair accepted

this autonomy to the bank of England.

This quite brilliantly achieved by central bankers, yet, the failures of these economic

models in achieving their targets of non-non-inflationary economic growth and

fuller employment is evident in the recent history of financial crises , booms, busts,bubbles, unrepayable debt and unemployment.

In 1969, the Central Bank of Sweden put up $US1 million to create a prize to confer

scientific status and legitimacy on the academic discipline.

Cont

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Summary

Thus, the Bank of Sweden named its economics prize in memory of Alfred Nobel

and lobbied this designation onto the Nobel Prize Committee.

Since 1969, most of the Bank of Sweden Prizes in Economic Science has been

awarded to US economists espousing the Chicago School policies of laissez faire

free markets.

Peter Nobel added, These economists use models to speculate in stock marketsand options the very opposite of the humanitarian purposes of Alfred Nobel.

many scientists revolted, including members of the Nobel Committee and Peter

Nobel himself, and demanded that the Bank of Swedens economics prize either

be properly labeled and delinked from the other Nobel prizes or abolished.

The reason was the awarding of the economics prize to two more Chicago School

economists

The mathematicians pounced to the many misuses of their models by Prescott and

Kydland and other economists to dress up their questionable theories and

unscientific assumptions.

Cont

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Summary

As this news spread around the world (InterPress Service, January 2005,

Henderson, 2005) the usual heralding of the new economics prizewinners in the

mainstream financial press was strangely muted.

Global markets or companies moving toward social and environmental

responsibility. Similarly, such changes in corporate behavior have been driven by

trillions of pension funds dollars and millions of investors who care about their

childrens future and the state of our planet.

Students and prospective employees also ask about companies performance on

human rights and the environment, while new auditing standards of the Global

Reporting Initiative (GRI) prescribed triple bottom line accounting for people,

profit and environment.

Six hundred global corporations now comply with GRI accounting in their Annual

Reports.

Cont

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Summary

We are also entering the Age of Light as we humans shape this current global stage

in our development.

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Summary

Fundamentally, we humans have three basic resources at our disposal for this

transition information, matter and energy and of these, information is primary,

since the quality of information drives our use of matter and energy.

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Summary

The history of social innovation of markets is instructive, and now evolving rapidly.

The belief in an Invisible Hand persist in economic text books.

Not only are independent central bank policies obscure and driven by often

obsolete general equilibrium models, central bankers are also politically motivated.

E.g. Italys independent central bank president, Fazio is accused of cronyism, condoning fraud and

disregard for ethical standards.

The organization of market foster rapid evolution of industrialism three centuries

ago and sparked many innovation.

Legitimized markets and protected property rights led to a revolution of individual

entrepreneurship, creativity and innovation.

Industrialism must be reshaped because it is socially and environmentallyunsustainable BECAUSE sustainability interfaces with economics through the social

and ecological consequences of economic activity.

The early markets of industrial revolution and their business leaders create the

infrastructure platforms of concrete, steel, mechanized production and shipping

that still strengthning todays society.

Cont

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Summary

But the market freedoms provided by social legislation limiting companies

liabilities, enforcing property rights, upholding their patents to their innovation

also brought great harm to less fortunate, vulnerable members of society.

Machinery, property rights and the Enclosure laws drove farmers off their

ancestral common land and into factories.

Then, as factories automated heir product lines, workers moved into service

sector. Today, service are being automated and Full-employment promises fall

short and unemployment remains an ironic result of industrialism.

In every country where industrialism took hold, the tortoise of social innovation

lagged behind the hare of technological innovation.

The history of industrial revolution with all its good and bad news has included thelagging response of social rules.

This steer technological development and regulations to modernize its social cost

and environmental damage. It could steer to foster the common good, shared

prosperity and protect natures wealth.

Cont

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Summary

The economist, Schumpeter describe this process as creative destruction

Dr. Hazel described it as ideological biases of neo-classical economic and the

unreality of many of the inaccurate assumptions underlying even todays economic

text books.

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US society is highly individualistic

Alternative There is considerable evidence that Americans are not individualistic in fact, are

less individualistic than other peoples.

Survey organizations have asked people around the world questions that get at

whether they hold values such as individualism. One of the longest-running is the

International Social Survey Programme. (Another major one, with comparable

results, is the World Values Survey)

The questionnaire consist on following main points:

Personal Conscience

Individual VS Country

Individual VS Family

Individualistic culture encourage their members to be unique and independent. Collective cultures

encourage their members to be loyal and interdependent

http://blogs.berkeley.edu/2010/04/20/american-individualism-%E2%80%93-really

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Evaluation

I Agree with the statement US society is highly individualistic on following

reasons:

Most Americans are only interested in advancement and the prospering of

themselves. (Competition)

The main goal is to become financially independent and to acquire possessions

and the reason is because of how Americans live. (Competition) They have the freedom to believe and think what they want and each individual

concentrates on his own personal goals.

In other countries that do not have the same freedoms as America, the individual

seems to focus on the entire group or society. (Cooperation)

Being a collectivistic culture they are more likely to care about the problems

people have surrounding them. (Cooperation)

individualism is frequently associated with the extreme right in the US

While the extreme right frequently seeks lower taxes and less regulation, it also

seeks to regulate behavior, especially on issues of abortion, sex education and gay

marriage.