OPEC Fund Quarterly - 2025 Q1

REVI EW

Industrial policy uniting public and

private sector strengths has helped South Korea to become the 12th largest economy in the world.

Photo: humphery/Shutterstock

economy back into balance. It’s about living within planetary boundaries, and it’s about looking at social objectives and ecological objectives. A common misconception is that degrowth is about shrinking the GDP. In fact, the degrowth movement recognizes that lower income countries in general need more growth, yet these countries cannot grow if high income countries use or appropriate the ecological commons of the earth. In some ways, therefore, the case for degrowth in the Global North is also a case for development in the Global South, recognizing that to some degree development must entail increased energy and resource use. However, this does not mean that developing countries should only pursue environmentally harmful policies. We see a lot of opportunities in the green transition for developing

countries, so-called “green windows of opportunity.” For instance, China has become a world leader in renewable energy manufacturing, while Brazil and in general South America are very well positioned to take advantage of the green transition. Development within planetary boundaries means scaling down certain industries, for example fossil fuels, while scaling up others, for instance renewables. We also need to talk more about producing for public rather than private benefit: we need more electric buses, not more private electric cars. Similarly, we need to think seriously about climate remittances from the North to the South. How do we achieve this? We need to democratize decisions, both globally and within countries. International surveys reveal that the scientific community and the public

support post-growth principles. The green transition is important for people all around the world. OFQ : Do you believe this is achievable within our lifetime? JH: In the words of Nelson Mandela, “It always seems impossible until it’s done.” When I talk to people about degrowth, many people agree with the principles, but say that the implementation is unrealistic. But if you look at systemic social change throughout history, it happened through movements that were unpopular among political elites, like the anti-apartheid movement in South Africa, the civil rights movement in the USA or the suffragette movement in the UK. They challenged the status quo, but eventually prevailed because what they fought for was grounded in strong public support.

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