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The Limits to Panic
Human ingenuity has helped us disprove an infamous prediction of global doom. But there's more to be done.
We often hear how the world as we know it will end, usually through ecological collapse. Indeed, more than 40 years after the Club of Rome released the mother of all apocalyptic forecasts, 'The Limits to Growth', its basic ideas are still with us. The Limits to Growth warned humanity in 1972 that devastating collapse was just around the corner. But, while we have seen financial panics since then, there have been no real shortages or productive breakdowns. Instead, the resources generated by human ingenuity remain far ahead of human consumption.
But the report's fundamental legacy remains: we have inherited a tendency to obsess over misguided remedies for largely trivial problems, while often ignoring big problems and sensible remedies.
In the early 1970's, the flush of technological optimism was over, societies were in turmoil, and economies were stagnating. Rachel Carson's 1962 book Silent Spring had raised fears about pollution and launched the modern environmental movement;Paul Ehrlich's 1968 title The Population Bomb said it all. The first Earth Day, in 1970, was deeply pessimistic.
The genius of The Limits to Growth was to fuse these worries with fears of running out of stuff. We were doomed, because too many people would consume too much. The only hope was to stop economic growth itself, cut consumption, recycle, and force people to have fewer children, stabilising society at asignificantly poorer level. That message still resonates today, though it was spectacularly wrong. For example, the authors of The Limits to Growthpredicted that before 2013, the world would have run out of aluminum, copper, gold, lead, mercury, molybdenum, natural gas, oil, silver, tin, tungsten, and zinc.
Instead, despite recent increases, commodity prices have generally fallen to about a third of their level 150 years ago. More broadly, since 1946, supplies of copper, aluminum, iron, and zinc have outstripped consumption, owing to the discovery of additional reserves and new technologies to extract them economically. Similarly, oil and natural gas were to run out in 1990 and 1992, respectively;today, reserves of both are larger than they were in 1970, although we consume dramatically more. Within the past six years, shale gas alone has doubled potential gas resources in the United States and halved the price. As for economic collapse, the Intergovernmental Panel on Climate Change estimates that global GDP per capita will increase 14-fold over this century and 24-fold in the developing world.
The Limits of Growth got it so wrong because its authors overlooked the greatest resource of all: our own resourcefulness. Population growth has been slowing since the late 1960s. Food supply has not collapsed (1. 5 billion hectares of arable land are being used, but another 2. 7 billion hectares are in reserve). Malnourishment has dropped by more than half, from 35 per cent of the world's population to under 16 per cent.
Nor are we choking on pollution. Whereas the Club of Rome imagined an idyllic past with no particulate air pollution and happy farmers, and a future strangled by belching smokestacks, reality is entirely the reverse. In 1900, when the global human population was 1. 5 billion, almost three million people - roughly one in 500 - died each year from air pollution, mostly from wretched indoor air. Today, the risk has receded to one death per 2, 000 people. Nonetheless, the mindset nurtured by The Limits to Growth continues to shape popular and elite thinking.
Consider recycling, which is often just a feel-good gesture with little environmental benefit and significant cost. Paper, for example, typically comes from sustainable forests, not rainforests. The processing and government subsidies associated with recycling yield lower-quality paper to save a resource that is not threatened. Likewise, fears of over-population framed self-destructive policies, such as China's onechild policy and forced sterilisation in India. And, while pesticides and other pollutants were seen to kill off perhaps half of humanity, well-regulated pesticides cause about 20 deaths each year in the US, whereas they have significant upsides in creating cheaper and more plentiful food.
Obsession with doom-and-gloom scenarios distracts us from the real global threats. Poverty is one of the greatest killers of all, while easily curable diseases still claim 15 million lives every year - 25 per cent of all deaths. The solution is economic growth. When lifted out of poverty, most people can afford to avoid infectious diseases. China has pulled more than 680 million people out of poverty in the last three decades, leading a worldwide poverty decline of almost a billion people. This has created massive improvements in health, longevity, and quality of life.
The four decades since The Limits of Growth have shown that we need more of it, not less. An expansion of trade, with estimated benefits exceeding $100 trillion annually toward the end of the century, would do thousands of times more good than timid feel-good policies that result from fear-mongering. But that requires abandoning an anti-growth mentality and using our enormous potential to create abrighter future.
The writer is president, Copenhagen Consensus Center; © Project Syndicate, 2013
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