ABSTRACT
The Social Ecology model of sustainability moves the functioning of the economy into the social domain rather than allow it to sit outside, or even above,1 the functioning of society. Although this is seen as a rather radical move by many economists it harks back to the influential work of the Hungarian economist Karl Polanyi in the 1940s, in which he argued that economics must be embedded in culture and society. The social framing of economics helps to create a stronger link between economic development and the social equity outcomes of that development and this, in turn, links back to the considerations of both intragenerational and intergenerational equity that are highlighted in two of the nine RMIT Sustainability Principles. Focusing on the social outcomes of economic development also brings into play the principle that prevention is better than cure because it can be difficult and expensive to wind back economic developments that are having harmful social consequences for significant numbers of people. A focus on equity suggests that economic planning needs to have social inclusion as an important benchmark and this imperative needs to be a starting consideration. From the perspective of the global environment, economic planners need to put aside their discipline’s obsession with growth to consider limits and constraints. The riposte of economists is often to warn that only growth-oriented
economies can deliver good social outcomes in terms of employment and remuneration. However, Chapters 3 and 4 have demonstrated that prevailing economic development models are failing to close the gap between the rich and the poor while they also fail to satisfy the ‘authentic’ needs of people who find themselves on the treadmill of hyperconsumption. Narrow ways of assessing economic performance deliver forms of growth that are not only damaging to the natural environment but also socially divisive and we need to find new ways to ensure that economic development can deliver much better equity and well-being outcomes. This includes a need to ensure that poor people and communities are not exposed to dangerous forms of environmental pollution and other forms of environmental degradation. This chapter will argue that the functioning of the economy is only one dimension of social planning because it is also important to focus on cultural vitality and the politics of participation. The RMIT Principles that underpin this discussion are:
■ Acknowledge that there are limits to growth. ■ Remember that prevention is better than cure. ■ Work to improve intragenerational equity. ■ Face up the challenge of intergenerational equity. ■ Respect requisite diversity in nature and culture.
