Alternative Theories of Economic Growth

Abstract

All new global economic crises, as well as those of national economies, are challenging the dominant growth paradigm. The antagonists of this concept draw attention to the multiple vulnerabilities of modern economic systems, the perverse nature of "consumption economics", and the rapidly increasing environmental damage that arises mainly from careless use of natural resources and the frenzied pursuit of increased production capacity. These and other problems raised questions about the relevance of the economic growth rate as the main measure of development of a country or civilisation as a whole, about the adequacy of the perception of GDP as a system-forming indicator, and the relationship between economic growth and an increase in the well-being of a nation. As a result, a number of alternative theories of economic development were developed by the global scientific community: a-growth, de-growth, zero-growth, green growth, and post-growth. Despite many individual differences, all of them have turned out to be very similar in their essence: abandon the fetishism of GDP growth rates, make every possible effort to minimize environmental damage, accumulate social capital and improve the well-being of the population. Although each of the alternative theories is, to varying degrees, utopian, as evidenced by the consistent criticism of the proponents of classical growth theory, their ideas are gradually being reflected in the public policies of predominantly developed countries and are gaining increasing support among citizens.