MPs discuss the role of the money and banking system in fuelling climate change through excessive debt
LONDON, 18th January 2018 – Research and campaign group Positive Money today launched a new report which sets out why governments are pursuing limitless economic growth despite clear environmental constraints, at an event in Parliament.
The report, titled ‘Escaping Growth Dependency: Why reforming money will reduce the need to pursue economic growth at any cost to the environment’, finds that spiralling levels of both public and private debt are putting pressure on governments to pursue infinite economic growth as their primary policy objective. It outlines the role of the money and banking system in creating unsustainable levels of debt, and recommends reforms which could allow governments to transition to a more sustainable economic model.
The launch event saw speeches from *Doughnut Economics *author Kate Raworth, Labour MP Alex Sobel, Conservative MP Kevin Hollinrake and Green Party co-leader Jonathan Bartley, as well as the report’s co-author Fran Boait.
“We need different metrics and different models, and I’m pleased that Positive Money are bringing forward different macroeconomic solutions”, said Alex Sobel MP.
Kate Raworth praised the politicians in attendance for being “brave enough” to talk about growth dependency, saying that the House of Commons and House of Lords are a vital part of moving from a “degenerative” to a “regenerative” economy.
Jonathan Bartley said: “We need to develop alternative metaphors and different ways of looking at the economy, and this is what Positive Money are doing with this report.”
Fran Boait, executive director of Positive Money said: “ As the catastrophic effects of a growth-led economy on the environment become more and more clear, the reality is that a finite planet cannot sustain infinite economic growth. In order to move beyond this dependence on growth, there needs to be a discussion of the systemic reforms which could support the transition to a fairer and more sustainable economy.
“It is great to see MPs from some of the UK’s main political parties engaging with this urgent and underexplored dimension to the political and economic debate”, she added.
About the report
Escaping Growth Dependency was funded by Joseph Rowntree Charitable Trust and authored by Fran Boait and Graham Hodgson. It can be viewed in full here.
Fran Boait is Positive Money’s Executive Director and a Director of the Board of Finance Watch. Fran has a PhD from the University of Cambridge and has worked at various global organisations including the United Nations, Greenpeace and BP. She is also the Labour Party’s Prospective Parliamentary Candidate for Gloucester.
Graham Hodgson is a Positive Money researcher and former civil servant who has spent the last 15 years researching the monetary system and potential reforms.
About Positive Money
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.