The shortcomings and the critics of the current model are excessive.
A coherent and viable alternative is sorely needed to sketch a framework for a new model of the economy based on the world-view and principles of ecological economics (Costanza 1991; Costanza et al. 1997; Daly and Farley 2004).
These include the following ideas:
- Our material economy is embedded in society which is embedded in our ecological life support system, and that we cannot understand or manage our economy without understanding the whole, interconnected system.
- Growth and development are not always linked and that true development must be defined in terms of the improvement of sustainable human well-being, not merely improvement in material consumption.
- A balance of four basic types of assets (capital) are necessary for sustainable human wellbeing: built, human, social, and natural capital (financial capital is merely a marker for real capital and must be managed as such).
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