From ‘cowboy economy’ to ‘spaceman economy’

Kenneth Boulding and the view from Spaceship Earth

By Peter Burnett

Sustainability is a complex multidisciplinary field, so it’s not surprising that many of its concepts evolved over decades of scholarship and policy development. However, in my research, I have been surprised on several occasions by scholars putting forward valuable framings of sustainability concepts well before the emergence of the notion of sustainable development itself. Kenneth Boulding’s 1966 essay The Economics of the Coming Spaceship Earth is the example par excellence of this phenomenon. Not only did Boulding hit the nail on the head in regards to the nature of the problem, he also framed the way forward in a compelling and lucid way. It’s something we can still learn from today.

Early Boulding

Boulding was a British-American; a professor of economics by title, a social philosopher by inclination and a Quaker by conviction.

He began publishing in the 1930s and had been pushing boundaries long before Spaceship Earth. Influenced by his study of accounting, he had argued in his 1950 book A Reconstruction of Economics that the balance sheet should be a central analytical concept in economics, specifically that asset preferences (stocks) rather than profit maximisation (flows) should be a central to explaining the behaviour of economic entities. It is thus not surprising to find Boulding talking elsewhere about World War II as having ‘drained the economic bathtub in a great waste of consumption’, with the task of post-war reconstruction being to refill the bath.

Boulding argued for a ‘conceptual revolution’ concerning consumption. He believed the emphasis should be on the enjoyment of assets rather than their consumption (or, as Boulding put it, their destruction). Through this lens, production and income should be seen as quantities to be minimised rather than maximised, in the interests of maximum enjoyment. This would have been complete heresy in an era when the idea of unbounded growth was rapidly becoming dominant.

Undaunted, Boulding would make much the same argument a decade and a half later in Spaceship Earth, but this time in connection with the environment.

Spaceship Earth

In 1966 Boulding was invited to write an essay for a forum held by the think tank Resources for the Future (RFF, itself an interesting organisation that played a pivotal role in sustainability thinking). Prompted by growing recognition that most of the pressures on the natural environment were the result of high levels of consumption and economic growth, RFF adopted a forum theme of ‘Environmental Quality in a Growing Economy’. (If RFF had added the word ‘maintaining’ to this theme they would, in essence, have defined environmental sustainability 20 years early: another example of prescient thinking.)

Boulding was a big picture thinker and in 1966 the ‘space race’ and the ‘moonshot’ were the order of the day (as was the sexist language in the quotes that follow). His narrative was that humans were making a long transition in their image of interaction with the environment. This transition involved moving from the ‘cowboy economy’, in which there were vast expanses of resources and an ever-beckoning frontier, to the ‘spaceman economy’, which was a closed system, a single earthly ‘spaceship’ in which man must find his place in a cyclical ecological system that is capable of continuous reproduction but limited by energy inputs from the sun (whether directly as solar radiation or indirectly through fossil fuels).

The measure of success in the cowboy economy was production and consumption (throughput), because reservoirs of resources were effectively infinite. In contrast, the measure of success in the spaceman economy was not throughput but the nature and extent of total capital stock, including human bodies and minds (which we would now call human and intellectual capital). The task in the spaceman economy was thus to maintain the stock, in part by increasing resource-use efficiency. In a masterly understatement, Boulding noted that the idea that both production and consumption were undesirable would be very strange to economists. It would have been to politicians too, who by then had become wedded to the mantra of economic growth and GDP as the only measure of success, as reflected in the OECD’s 1961 target of increasing growth by 50% in a decade!

Sustaining capital in time and space

Boulding describes the sphere of economic activity as the ‘econosphere’ and society as the ‘sociosphere’, with environmental resources passing from the environment into the econosphere and waste passing in the reverse direction. This pretty much captures the later foundational model of ecological economics (figure 1) in which the economy is a subset of, and thus dependent on society, which in turn sits within and depends upon the environment.

*Figure 1: The foundational model that lies at the heart of ecological economics.*

Boulding recognised that a prescription of maintaining capital for the long haul raises the question of why we should do such a thing, encapsulated in the sardonic aphorism ‘What has posterity ever done for me?’ Rather than pose a normative answer to this question, as nations later did in endorsing the principle of intergenerational equity through the Rio Declaration (1992), Boulding argues an anthropological rationale: that the welfare of the individual depends on identifying with a community, not only in space but over time. In other words, we identify with future generations as part of our own well-being.

Natural capital on Spaceship Earth

The Spaceship Earth essay carries, expressly or by implication, a full theory of, and prescription for, environmental sustainability. It recognises that our attitude to the environment is based on our image of the environment, which thus explains our attitudes. It presages the insights of ecological economics and the policy prescriptions of modern environmental sustainability: maintain natural capital, increase resource efficiency and ensure that the scale of consumption remains within the regenerative capacity of the environment.

Even where Boulding does not solve a problem of sustainability policy, he plants the seed of its solution. For example, he recognises that even if we accept the welfare of future generations as part of our own welfare, it remains economic practice to discount future values. He explains that discounting is based on our myopia concerning the future, which is ‘an illusion which the moral man should not tolerate’.

Although he does not propose a solution, he nevertheless plants the seeds of one in his prescription to maintain capital. In economics, the case for any project is evaluated by cost-benefit analysis, in which future costs are discounted. If the maintaining of capital is a prescribed as fundamental policy, then the case for any individual project, which might otherwise have been justified solely by reference to cost-benefit analysis, must now be made within and subject to a constraint of maintaining capital. In other words, you can discount all you like but your project will be constrained by rules concerning or prices of natural capital.

Beyond Silent Spring

Rachel Carson’s Silent Spring (1963) is generally acknowledged as the foundational work of the modern environmental era. However, Silent Spring identified a particular aspect of the problem of environmental decline and did not develop a solution. Spaceship Earth came a little later, but it was the first to describe the problem in holistic and conceptual terms and the first to outline a policy solution.

The best modern approaches to environmental sustainability can trace a direct lineage to Boulding’s essay and sit entirely within its construct. It is a tour de force.

Image: The Blue Marble, the view from Apollo 17 of Spaceship Earth some 45,000 kilometres distant. (NASA, 1942)

A (very) short history of sustainability

A mud map of how sustainable development has grown up

By David Salt

For many, sustainability is a buzz word; a descriptor used and abused by governments (and corporations) all around the world to give the impression their policies of economic growth and development are simultaneously meeting the needs of society and the environment. But it’s more than just a hollow catch cry. Sustainability is a concept with substantive meaning and pedigree.

The growing body of evidence, unfortunately, is that our world is not on a trajectory of sustainability. If anything, we are accelerating away from it. However, there was a time, no so long ago, when there appeared to be a growing international consensus that sustainability was a real and achievable goal. When was that? Here is my (very) short potted mud map of sustainability (with a fist full of caveats at the end for me to hide behind).

The Twentieth Century

The Twentieth Century was the century of human domination in which our species ‘conquered’ the final bits of the planet’s surface. We encircled the world with our communication cables (1902), reached its South Pole (1911), ascended to its highest point (Mt Everest, 1953) and then reached even higher with artificial satellites (Sputnik, 1957). We also made a real effort to annihilate many dimensions of our own culture in two world wars.

If the first half of this century was marked by massive global-scale disruptions (two world wars and a Depression) and empire failures (Britain and Japan especially), then the second half was characterised by population and economic growth of unprecedented scale. Population more than doubled, while the global economy increased by more than 15-fold. And it was in this second half that notions of sustainability were developed.

The 1940s: Reboot

My mud map begins in the aftermath of the Second World War; a time of mass destruction, renewal and new beginnings. The aim of governments was growth, stability and the kindling of hope for a prosperous future.

The tremendous economic growth that followed was in large part enabled by the ‘rebooting’ effect of the wars. These broke down old imperial and feudal institutions, opened up space for new institutions based on liberal-democratic and later neo-liberal economic principles, and empowered us with a new suite of powerful science and technology.

Survival was more the consideration than sustainability, but towards the end of the 1940s there was an international push to set aside bits of landscapes for wildlife and nature with the establishment in 1948 of the International Union for the Protection of Nature (which was to become the International Union for the Conservation of Nature, IUCN, in 1956). Economic growth was the main focus and the environment was seen as a space separate from human activity.

The 1950s: Lift off

Today’s economy and environment has direct roots in the explosion in economic growth that took place in the 1950s, the beginning of the so called Great Acceleration. Population, GDP, energy generation, fertiliser consumption, water use and international tourism all underwent dramatic (often exponential) increases as the economy powered up.

The ‘sustainability’ of the environment was not really a question back then. The USA, a major driver of growth, was concerned about the ongoing supply of natural resources, but only as it related to feeding the economy rather than sustaining the environment. It set up a commission, the Paley Commission, which led to the establishment of the NGO called ‘Resources for the Future’. Its brief was to look at resource scarcity issues on an ongoing basis. The great environmental economist David Pearce identifies this as the founding of environmental economics.

The 1960s: Cracks in the model

The economy was growing strongly, living standards for many were improving, the rich were getting richer but the poor were getting less poor. Indeed, during these first decades after the war the gap between the richest and the poorest was decreasing (proof that a rising tide can indeed lift all the boats).

But underneath the growth and the technological mastery, cracks were appearing in the form of environmental decline. These concerns were embodied in the book Silent Spring by Rachel Carson (1962). It drew attention to the accumulating impacts of pesticides on natural ecosystems, and questioned the costs of industrial scale-agriculture.

Technology also gave us new frames for considering humanity’s role and place, with the race for the Moon providing new perspectives, metaphorical and literal, on our planet. Kenneth Boulding coined the term ‘Spaceship Earth’ in a famous essay in 1966 (and in 1968 we saw our fragile home in perspective for the first time in the famous ‘Earth Rising’ photo taken by Apollo 8 astronauts as they orbited the moon).

Concern was growing as case study (eg, acid rain) after case study (eg, contaminated waterways) caused people to question the costs and benefits of economic development. Laws for environmental protection started taking shape and the idea of Environmental Impact Assessment took off (enshrined in US environmental law, NEPA, in 1969); yet the approach that evolved was more a ‘bottom up’ one of minimising impacts on a case by case basis rather than the holistic bigger picture approach that Boulding had advocated and NEPA, read as prose rather than law, clearly embodies.

The 1970s: Hopes are high

1972 saw the publication of landmark report titled Limits to Growth, one of the first formal efforts to understand what the consequences of unbounded economic development might be. Its conclusion was that our species was likely heading for some form of collapse in the mid to latter part of the 21^st Century. (While widely dismissed by economists, a review in 2014 of the Limits-to-Growth analysis found its forecasts are still on track.)

The 70s saw many efforts by governments and community groups around the world to address the swelling list of environmental problems falling out of our rapacious growth. Key among these was UN Conference on the Human Environment, also known as the Stockholm Conference, in 1972. It catalysed many activities that were to prove pivotal to the manner in which we dealt with the environment, including many nations setting up their own environment ministries. It also saw the creation of UNEP (the UN Environmental Programme), and it put a greater focus on the connection between society and the environment. The Stockholm Conference was one of the first events where there was a strong acknowledgement of the need for poverty alleviation and its connection with access to environmental resources.

And it was during this decade that the term sustainable development began to see common usage. Indeed, the term was first used officially in the World Conservation Strategy launched in 1980, though at this stage the focus was on the environment alone.

The 1980s: Negotiations are had

‘Sustainable development’ took real form with the release of the report titled Our Common Future by The World Commission on Environment and Development (let by the indefatigable Gro Harlem Brundtland, Norway’s first female Prime Minister) in 1987. The report defined a sustainable society as one that “meets the needs of the present without compromising the ability of future generations to meet their own needs”. It made sustainability an idea that involved acknowledging the linkages between the economy, the environment and society.

The mid 80s also saw the emergence of a massive ozone hole over the south pole (resulting from humans pumping ozone depleting substances into our atmosphere). This went some way to puncturing our complacency about environmental decline. Countries met and negotiated what they would do about the ozone problem, treaties were signed and these days ozone depleting emissions are on the decline.

Not so easily addressed, unfortunately, was the greenhouse gas problem in which a by-product of economic activity (energy, transport and agriculture in particular) was carbon-based emissions that distorted the Earth’s climate systems. Though the science of greenhouse warming was well understood and discussed in scientific circles in the 70s, it actually became visible in the late 80s. (In 1988 Jim Hansen, a leading atmospheric scientist at NASA, declared: “The greenhouse effect has been detected, and it is changing our climate now.”)

The 1990s: Plans are drawn

In 1992 the world came together in Rio for the great Earth Summit in which nations would pledge how they were going to meet the great challenge of sustainability. A plan for sustainable development in the rapidly approaching 21^st Century was adopted (Agenda 21) and an international agreement on biodiversity conservation was opened for signing.

Through the 90s the Intergovernmental Panel on Climate Change (formed by UNEP and the WMO in the 80s) began compiling an enormous brief of evidence that greenhouse gas levels were growing remorselessly and creating a raft of problems from shifting climate to sea level rise and extreme weather. But as the fear rose about the need to do something about carbon emissions, vested interests increased their efforts to discredit the science, and obfuscate the emerging picture.

And governments everywhere were discovering that policy positions developed to meet sustainability pledges came with real short term electoral pain, and that the prospect of deep change, transformational change, was simply too much to push through. Sustainable development is a moral imperative but the reality is that sustainability bites. Or, as President Bush said in 1992 at the Rio Earth Summit: “the American way of life is not up for negotiation.”

The 2000s (the Naughties): Sustainability bites

As you’d expect, the beginning of a new millennium saw a lot of reflection, discussion and planning for a better world (a bit like my New Year’s resolutions to be a better person). There was the Millennium Summit in 2000 (and ensuing Ecosystem Assessment in 2005), a Rio+10 Earth Summit (held in Johannesburg in 2002) and a World Summit held in 2005. Millennium Development Goals were drawn up and agreed to, and almost all nations (with the US a notable exception) committed to reversing declines in biodiversity (the Convention on Biological Diversity, CBD).

And the manner in which many governments sought to deliver on their sustainability commitments increasingly invoked utilitarian values, a move supported by an emerging line of conservation science that demonstrated that nature provided benefits to humans that save us money (like native vegetation providing water purification). So, why don’t we start paying for the things that nature gives us, ecosystem services, and let the market optimise the delivery of these services? Some saw this as a dangerous move away from acknowledging nature’s intrinsic value.

But, just like my News Year’s resolutions, it didn’t take long for most governments to begin making excuses for why aspirations (for sustainable development) needed to take second place to the realities of day-to-day life: “as soon as we’ve secured a strong economy we can begin worrying about fixing up the environment.”

Targets adopted under the CBD meant that 2010 was supposed to be the line in the sand for biodiversity conservation but all countries failed to deliver on their commitments with extinction rates climbing and the drivers of extinction only accelerating.

The 2010s: Cracks in the ice cap

Sustainability, however you want to define it (and heaven knows it comes in many flavours), was proving a stubbornly elusive goal. But the negotiations continued.

The world’s nations continued to get together (Rio+20 in 2012, this time in Rio) but failed to agree on any major outcomes other than replacing a failed international body, the Commission on Sustainable Development, with a new one, the UN Environment Assembly); the failed Biodiversity Convention targets were replaced with a more nuanced set of goals (the Aichi Targets); the Millennium Development Goals (which some believed were quite effective while others said were unmeasurable) were replaced with a more nuanced set of sustainability targets (the Sustainable Development Goals); and the stalled climate change discussions actually reached half a consensus with the Paris Agreement (in 2015; though President Trump has since withdrawn from it).

In many ways, it’s the same old, same old; endless meetings, discussions, agreements and targets; one step forward, two steps back, another step forward; but, at the end of the day Bill Clinton’s 1992 election mantra ‘it’s the economy stupid’ sums up the approach of virtually every country. Which sometimes has me wondering that Rachel Carson, Kenneth Boulding and the doomsayers behind ‘Limits to Growth’ were simply wrong. The environment is undoubtedly in decline but we’re still standing, talking and aspiring to better things (most of us are wealthier, but at the expense of future generations). Clearly governments are almost unanimous in believing that the economy is what counts and if things get scarce then markets and technology will always find a solution; they have so far.

But those people calling for reflection and change were not wrong; and the 2010s and the emerging science are emphatically backing their calls for a new way of stewarding Spaceship Earth. We’re losing species and ecosystems that we depend upon. We are seeing changes to our climate and Earth system that are already stressing many parts of our planet (including our food and water systems); and the science tells us these changes are just beginning, promising an increasingly uncertain future. We are losing the challenge of sustainability and it’s not a challenge we can afford to lose.

Caveats and endnotes

This ridiculously short history only touched on a few of the elements that have contributed to the evolution of sustainable development (and only mentioned a couple of the thousands of identities – people and institutions – who have made important contributions to its story). And, clearly, dividing this history into decadal phases doesn’t reflect the real inflection points of its evolution, it is merely my effort to subjugate a complex, non-linear, multi-faceted topic into something that looks like time line with a simple narrative.

However, even the limited set of events described here tells us that the history of sustainable development has gone through life stages with different dynamics. It began as our faith in the economic growth model began to erode and it’s early days kept a tight focus on the environment; as it developed there grew a better appreciation of the connections between society, economy and environment; and as it reached maturity and asked for real commitment from its sponsoring actors, the reality of shifting the status quo has proven that much of its rhetoric is impotent.

In its youth sustainable development was driven by natural science. In its young adulthood, it began to take on it legitimacy from ideas founded in social values, rights and laws. And as it matured it cloaked itself in the robes of economics and markets.

Is it any wonder then that sustainable development is no longer a force for change (if it ever was)? Rather than challenge the paradigm of unbounded economic growth, it has been forced to work within the normative structures that put economic growth before all other goals.

So, if you were a doctor asked to prescribe a change to an ageing man whose life style is clearly leading to a miserable old age, what might you suggest? Because maybe this is the lens we need to look through when considering where to from here for sustainable development. And, maybe, just like our ageing patient, we need to be confronted with some hard truths about what the future holds (unless we sign up for some demanding therapies)?

Image: Earthrise, 25 December 1968. Taken aboard Apollo 8 by Bill Anders. Earth is peeking out from beyond the lunar surface as the first crewed spacecraft circumnavigated the Moon. (NASA)

Regretfully, it’s too late for ‘no-regrets’

What’s the pathway for real sustainability following the Australian Election?

By Peter Burnett

Like many people, I was surprised by the win for conservative parties in the recent Australian election. I know there were lots of factors in play, but I thought that the extreme weather of last summer in particular had propelled climate change to the top of the political agenda, especially in the minds of young people, who were enrolled to vote in record numbers. I was reinforced in my views by much of the political commentary. Progressive parties seemed to have reached a similar conclusion, campaigning hard as they did on ambitious environmental policy platforms.

How wrong I was

Financial issues, especially proposed tax changes, appear to have weighed more on the minds of voters. The views of one young voter, who appeared on the television show ‘Q&A’ after the election, seemed to me to encapsulate the electoral mood. This voter commented that she was concerned by climate change (and also, she implied, by the expected opprobrium of her climate-voting cohort) but ultimately voted conservatively because of her concerns about the more immediate impacts of progressive party tax policies on her family.

While the election result could be attributed to various one-off factors, from an environmental perspective the underlying problem is that environment continues to be framed as an issue of progressive vs conservative, left vs right. Unless both sides pursue strong environmental policies then we cannot hope to sustain the policies necessary to avert the ‘dangerous climate change’ of the UN Climate Convention, let alone other disasters such as the loss of a million species predicted in the latest report from the Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).

The divide over environmental policy was not part of the political landscape when environmental concerns first became prominent in the public consciousness in the late 1960s and early 1970s. Rather, it emerged much later as vested interests, realising the implications of the policies necessary to counter environmental decline, pushed back hard, including by framing issues in terms of the ‘environment vs jobs’ dichotomy that reflects the dominant and still-powerful post-war paradigm, that of economic growth as progress.

A clash of paradigms

Can we return to bipartisanship? This would require a shift from a growth paradigm to one of sustainability. In pure policy terms the case for such a shift is clear: the growth paradigm became outdated around 50 years ago, when humans realised that the environment was a limited, rather than unlimited, resource. The sustainability paradigm that emerged in response rests on the recognition that we can only consume nature at the rate at which it renews itself. If we exceed that rate, we are headed for disaster.

In political terms however the case is far from clear. The growth paradigm is based on ‘growing the economic pie’ and gives a ‘win-win’ outcome: grow the pie and you grow every slice, including the slice constituted by government spending on the environment. ‘A rising tide lifts all boats’, as they say.

The sustainability paradigm on the other hand gives a ‘win-lose’ outcome. If we consume to our hearts’ content, we court disaster at the expense of future generations (if not our future selves). If on the other hand we live within our environmental means, we do the right thing by future generations, but at the expense of constraining our own consumption, especially by those who do, or aspire to, consume a lot.

And who wants to give government a mandate to constrain consumption, unless convinced there is no other way to look after their children and grandchildren? Although this has been a logical conclusion to draw for over 50 years, this framing has yet to be adopted generally, in part because so many people have a vested interest in either clinging to the growth paradigm or watering down the sustainability paradigm.

This watered-down version of sustainability is that we can live within our means simply by using environmental resources efficiently, with the bonus outcome that efficient consumption will save us money. Another win-win, achieved for example by switching off lights in empty rooms. We might have got away with such an approach in 1969, but in 2019 it’s far too late for such a ‘no-regrets’ approaches.

It’s time (?)

I argued in an earlier blog that it will probably take a significant environmental crisis to generate the social consensus necessary to support a paradigm shift. I still hold that view, although there is at least one example of a country finding an easier path. In the period 2005-2009, the United Kingdom shifted from a bland incremental climate policy to an ambitious goal, enshrined in law, to an 80% cut in emissions, from a 1990 base, by 2050. There was no crisis, but a confluence of factors conducive to change.

The UK Government had commissioned the influential Stern Review, which argued the economic costs of not acting (Sir Nicholas Stern pointed out that climate change is the “greatest and widest‐ranging market failure ever seen”). Al Gore produced his influential documentary, An Inconvenient Truth (aimed at alerting the public to an increasing ‘planetary emergency’ due to global warming). And future Prime Minister David Cameron wanted to modernise the Conservative Party (then in Opposition) and actually beat the Government to the punch in opting for ambition. And the Global Financial Crisis gave the UK Government an opportunity to present ‘green economy’ measures as a major part of the solution to the crisis.

Whatever the precipitating event, we will only respond effectively to environmental issues when we abandon the growth paradigm in favour of one built around sustainability. If that happened, environmental policy would become much more like foreign policy: generally bipartisan because we are all in favour of Australia being a secure country able to pursue prosperity under an effective international rules-base order. If only Australia had a David Cameron or two (circa 2006 of course, not the Brexit David Cameron).

Image by Mediamodifier from Pixabay