Geoscience Reference
In-Depth Information
Neoliberal myth
Scientists struggle with the fact that despite the huge weight of evidence, a vocal but signi-
ficant minority of developed countries refuse to accept that climate change is happening.
Their response is to go out and collect even more evidence against it. This is called the 'de-
ficit model', when scientist perceive that decisions are not being taken due to a lack of in-
formation. But social scientists have found that acceptance of climate change as a real phe-
nomenon has little to do with science and everything to do with politics. Climate change
challenges the Anglo-American neoliberal view that is held so dear by mainstream eco-
nomists and politicians. Climate change shows a fundamental failure of the market, and re-
quires governments to act collectively to regulate industry and business. It is one of the
greatest ironies of climate change that the very politicians who are denying climate change
because of free market values are also the ones that are happiest to endorse over $500 billi-
on of subsides for the fossil fuel industry per year. It is a myth that there is any truly free
market, with many countries happily supporting subsidies and the blocking of imports.
Neoliberalism encapsulates a set of beliefs which include: the need for markets to be free;
for state intervention to be as small as possible; strong private property rights; low taxation;
and individualism. Underlying neoliberalism is the seductive view that it provides a
market-based solution that enables everyone to become wealthier. This trickle-down effect
has been the central mantra of neoliberals for the last 35 years. Currently there are 3.5 billi-
on people living on less than $3.25 per day. In fact the 85 richest people in the world cur-
rently own the same amount of wealth as those 3.5 billion poorest people collectively. If we
want to eradicate poverty and bring the very poorest people in the world up to $3.25 per
day then according to David Woodward at current rates of trickle-down it would require
global GDP to increase by 15 times, taking over 100 years. If we want to be more radical
and lift everyone in poverty to $5 per day then it would require global GDP to increase by
170 times, taking over 200 years. Under the current economic system, huge consumption
levels would be required in the developed and rapidly developing countries for world GDP
to rise by 15 times, let alone 170. All of this would lead to great energy and resource de-
mands, and hence higher carbon emissions and accelerated climate change. So the neoliber-
al nightmare is that to lift people out of poverty there is a perception that we need make and
consume more stuff. This all requires cheap energy, which will mainly come from fossil
fuels, and more land for agriculture, driving deforestation and detrimental land use
changes. This will ultimately lead to accelerated climate change, making those poorest of
people even more vulnerable to extreme weather events. So fundamentally, climate change
challenges the very economic theories that have dominated global economics for the last 35
