REDUCING INEQUALITIES, AN ESSENTIAL CONDITION FOR THE ACCEPTABILITY OF ENVIRONMENTAL POLICIES

By Carole-Anne Sénit and Vaia Tuuhia, 4D

This brief is based on an interview conducted with Lucas Chancel at the Paris School of Economics on 11 January 2018, and is supplemented by figures.

Inequalities are increasing everywhere

There is no doubt. The works of NGOs and researchers have come to the same conclusion: inequalities are growing all over the world. According to the latest Oxfam report published on Monday 22 January ahead of the Davos summit, 82% of the wealth created in the world in 2017 went to the richest 1%, while the income of half the world’s population stagnated. The report also highlights that 2017 saw the biggest ever increase in the number of billionaires, with the addition of a new billionaire every other day. Moreover, Oxfam teams have estimated that the income increase in 2017 of the world’s 2,043 billionaires “could have ended global extreme poverty seven times over.”

Recently, the report on global inequality, produced by Thomas Piketty and Lucas Chancel’s research teams from the Paris School of Economics, showed that since 1980, the richest 1% of the global population has captured 27% of the world’s income growth. Conversely, the poorest 50% only received 12% of this growth. While this income growth, which is related to globalization, has enabled the poorest segments of the populations of emerging countries to escape from poverty, the middle and working classes in developed countries have benefited only marginally. This observation disproves the “trickle-down theory”, according to which the incomes of the richest individuals are re-injected into the economy through their consumption or savings, thus contributing to economic activity and employment.

The report on global inequalities also shows that inequalities grow at different rates in different regions. For example, income inequality, for which the main indicator is the share of national income held by the richest 10%, is increasing much more sharply in the United States, India, and Russia, than in Europe. Thus, between 1980 and 2016, the share of national income going only to the richest 10% increased from 31% to 55% in India, from 34% to 47% in the United States, and from 32% to 37% in Europe. France experienced a change in income inequality similar to that of Europe: the richest 10%, who held 31% of national income in 1980, now hold 35%. Inequalities in European countries are therefore progressing more gradually than in other regions of the world.[1]

Figure 1: Development of the income share of the world’s wealthiest 10% (1980-2016).

Source: WID.world, World Inequality Report 2018

Translation figure 1 :

– Share of national income (in %)

– India

– United States/Canada

– Russia

– China

– Europe

While income inequality has not exploded in France, the increase in national income has particularly benefited the richest 10%. Based on calculations using Credit Suisse data, the Oxfam report published in January confirms this trend: in 2017, the richest 10% held more than half of the wealth while the poorest 50% share barely 5% of the national wealth. Although there has been no impoverishment, middle and working class incomes have stagnated, while those of the richest have increased.

Social and environmental inequalities: intrinsic links

Recent empirical data published by Lucas Chancel in his book Insoutenables Inégalités (Published by Les petits matins in 2017) show that victims of social injustice are also victims of environmental injustices. These injustices are of several types: inequality of access to environmental resources, inequality of exposure to environmental risks, and inequality in terms of resilience to environmental damage. According to the author: “The poorest have less access to environmental resources such as water, energy and good quality food.” In France, for example, the poorest 10% consume 73 kWh per person per day, compared to 262 kWh for the richest 10%.

      Figure 2: Energy consumption per person per day in France, per income group

Source: Chancel, 2017.

Translation figure 2 :

– Energy consumption (kilowatt-hour per person per day)

– Average: 156 kWh per day per person

– Poorest 10%

– Next 40%

– Next 40%

– Richest 10%

The working classes are also more exposed to environmental risks than the richest households. Take pollution for example: while the poorest households contribute the least to pollution, it is these populations that are most exposed. They are therefore at higher risk of developing chronic (and potentially fatal) respiratory diseases: indeed, these populations spend more time on transport than average, they often have poorly ventilated homes, and live near major roads in urban areas. Another notable fact is that “deprived urban areas are disproportionately present around industrial and petrochemical sites,” writes Chancel.

Finally, the poorest populations are less resilient to environmental shocks: they suffer the full onslaught of natural disasters, floods, droughts and storms, which can force these populations into extreme poverty, or maintain them in this plight. In this way, environmental inequalities lead to the deepening of social inequalities.   

Why is it necessary to fight against inequalities?

Addressing inequalities is a moral obligation. However, beyond the ethical question, fighting inequality is also beneficial for the economy, social cohesion, population health, and for democracy. In his book, Lucas Chancel notes that an extreme level of inequality inhibits the functioning of the economy, since the productive potential of people living in poverty is underutilized. The author also cites work in behavioural economics, according to which an overly high level of inequality disincentivizes effort and reduces worker productivity (Cohn et al., 2011, Card et al., 2012).

However, fighting inequalities for the sake of growth is not a good enough argument, because the aim of public authorities is not so much to boost GDP, as to ensure the well-being of its citizens. This well-being requires social cohesion, which can be reinforced by reducing inequalities. The increase of economic and social inequalities is not disconnected from the rise of nationalism in India, the United States, and the United Kingdom. To illustrate his point, the author of Insoutenables Inégalités refers to the stagnation of the minimum wage in the United States, which contributed to the aggravation of socio-identity divisions and fostered national populism. “The mapped inequalities are not disconnected from political tragedies and the transformation of the political programmes observed in many parts of the world. Environmental inequalities are also aggravating the phenomenon in India, Turkey, and Brazil…” noted Lucas Chancel.

In addition, the well-being of a population requires good physical and mental health. The author goes on to argue that there is a negative correlation between the level of inequality and good health: the most unequal societies are thus societies where the highest prevalence of non-communicable diseases such as obesity, diabetes, cardiovascular diseases, and chronic respiratory diseases. In addition, sociology researchers have shown that an unequal society induces stress related to social status: populations at the bottom of the social scale suffer from stress because their living conditions are difficult to tolerate, while populations at the top of the social scale also suffer because they fear losing the advantages related to their social status (Wilkinson and Pickett, 2013).

Finally, fighting against inequalities is necessary for the proper functioning of our democracy. The more unequal a society is, the more it becomes polarized and radicalized, and the more difficult it is for our representative institutions to reach a consensus on trans-partisan topics such as environmental protection.

What public policies could reduce social and environmental inequalities?

Solving environmental problems, depending on the selected policy solutions, can increase social inequalities. For example, a carbon tax without financial compensation for households experiencing energy insecurity would plunge these households into poverty. Conversely, some policies aimed at reducing socio-economic inequalities can lead to increased environmental degradation. For example, some welfare benefits may encourage individuals to adopt consumption patterns that are more damaging for the environment, especially if they are part of a catch-up logic, following certain consumption behaviours of the elite. “Environmental issues can be solved in a very capitalistic way. And social issues can be solved in a very un-environmentally friendly way!” said Lucas Chancel during our interview. It is therefore necessary to think of public policies to fight against inequalities in an open-ended way: ministries in charge of economic, social, and environmental affairs must coordinate their actions.

The first approach is to strengthen the welfare state so that it takes environmental risks into account, moving beyond the risks traditionally covered by social security. “When the social protection system was devised and developed in France in the 19th and 20th centuries, environmental risks were not taken into account,” noted Lucas Chancel. However, experiences in other countries shows that this integration is beneficial for raising awareness and encouraging modest households to adopt more sustainable lifestyles. For example, Sweden has a social protection system where social counsellors are trained in ecological transition issues and they raise awareness among households about behavioural changes that would allow them to raise additional financial resources.  

The second approach concerns taxation. To reduce inequalities, whether social or environmental, it is essential to improve tax progressivity. Economic research has theoretically and empirically demonstrated that “tax progressivity is an effective tool to combat social and environmental inequalities,” underlines the World Inequality Report. The establishment of a progressive environmental tax system appears to be a relevant tool to reinforce the coherence of social and environmental policies: a carbon tax with a progressive rate that depends on income, with a proportion of the revenue being redistributed to the poorest households, could help break the vicious circle of social and environmental inequalities.

A second taxation lever would be the elimination of fossil fuel subsidies, with the resulting financial surplus being reallocated to social protection. Looking at the example of Indonesia, Lucas Chancel explained that in 2015 the State undertook a reform aimed at eliminating fossil fuel subsidies (particularly kerosene), which accounted for 30% to 40% of the national budget, and to reallocate the revenues generated to the creation of a social security system.

Finally, the third approach involves increasing public investment in priority sectors to give younger generations more opportunities. In this regard, the World Inequality Report emphasizes that “public investments are needed in education, health, and environmental protection both to tackle existing inequality and to prevent further increases. This is particularly difficult, however, given that governments in rich countries have become poor and largely indebted”. In our interview, Lucas Chancel told us that in developed countries, private wealth increases at the expense of public wealth, yet it is the latter that enables the necessary investment to sustainably reduce inequality. Several solutions exist to reverse this trend: for example, some States in the past have benefited from relief or cancellation of their debt to raise funds to make these essential investments.  

Is France en route to reducing inequalities?

In France, the growth and concentration of wealth is likely to increase following the most recent tax reform of Edouard Philippe’s government. According to a study by the French Economic Observatory (OFCE) published on 15 January 2018, the wealthiest 5% are the big winners of the fiscal and social measures in the 2018 Finance Law. The poorest 5% suffer from the fall in housing benefits and the rise in indirect taxation (energy, tobacco), which would only be partially offset by the revaluation of social benefits. The study points out that overall, the poorest households are expected to see their standard of living fall by 0.6%. This drop would represent a loss of 60 euros per year per household. As for the middle and upper classes, they are likely to experience a decline in their standard of living from 0.4% to 0.8%. Finally, the richest 5% will see their standard of living increase by 1.6%, or 1,730 euros per household. Of these, the 280,000 richest households in France (top 1%) will benefit the most from the social and fiscal measures of the 2018 budget: their standard of living will increase by 4.8%, due to the elimination of the ISF (French solidarity tax on wealth) and the one-off fixed-rate tax of 30% on capital, also called flat tax.

Figure 3: Impact of the fiscal measures in the 2018 budget, per income decile.

Source: OFCE, 2017.

Translation figure 3 :

– Euros per household

– decile

During our interview, Lucas Chancel explained that the flat tax would also generate massive tax optimization behaviours, since business leaders will be able to pay less tax by choosing to pay more in dividends rather than through wages. Ultimately, if we take into account these behaviours, the implementation of this tax should cost around 10 times more to the state than was estimated in the Finance Law (1.5 billion euros), based on feedback from other countries such as the United States (Zucman, 2017).

The good news regarding the 2018 Finance Law concerns ecological taxation. The budget for this year provides for an increase in the carbon tax and a catch-up of the taxation of diesel compared to petrol. Thus, this ecotax is expected to generate 3.5 billion euros of revenue for 2018. The Finance Law also intends to roll out plans for the allocation of an income-based energy allowance to all French departments: with an annual amount of 150 euros on average, it will support 4 million households in the payment of their energy expenditure or support certain expenses related to the energy renovation of their homes.

While this measure is a step in the right direction, the amounts of the energy allowance are extremely low (in total, 600 million euros) to compensate for the loss of income related to the decline in housing benefits and the rise in indirect tax (in total, 4 billion euros). In addition, the government is conducting this reform in the framework of regressive taxation, where the tax burden weighs less on the rich (-10 billion) and more on the middle and working classes. In such conditions how can the working classes accept an increase in environmental taxation? According to Lucas Chancel, “this strong feeling of injustice can lead to a rejection of environmental policies by a large part of the population.”

Conclusion: how can we (re)act to advance the social-ecological State?

If the government does not take the path of reducing inequalities, the role of civil society becomes more important. For example, the private sector has understood the importance of nudges to transform practices. According to this concept of behavioural science, indirect suggestions can, without forcing, influence the motivations, incentives, and decision-making of individuals, as effectively or even more effectively than legislation. This type of tool could therefore be adapted and used to encourage households to modify their behaviour to reduce fuel poverty and generate additional income.

Many initiatives aimed at reducing social and environmental inequalities are also developing at the local level, supported by solidarity movements. For example, the urban commons movement, which fights for commons (green spaces, cultural areas, etc.) by challenging land grabbing, and encouraging all to participate in the life of the community, aims to encourage sustainable and more integrative urban development.[2] For Lucas Chancel, it is important that this local energy should be added to the conventional toolbox of the welfare state. Civil society must therefore contribute to the dissemination of these tools and advocate for their recognition at the national level.

However, civil society must not abandon the international framework. In particular, it must rapidly seize the Sustainable Development Goals (SDGs), adopted by 193 heads of state at the UN in September 2015. These goals, applicable to all countries, provide a governance framework to promote the social-ecological state. “The SDGs give hope in that they set a course and can shift boundaries,” according to Lucas Chancel. Over a period of fifteen years, this means reducing inequalities, giving everyone access to social protection, good quality education, reducing gender inequalities, etc. “But there are many conditions for the SDGs to truly help the ecological and social transition, and they are far from being met,” qualified the author. One of these conditions is related to the monitoring and reporting on the SDGs. To measure the progress made in the implementation of these objectives, “States have adopted a full set of indicators taking into account in particular the reduction of inequalities and environmental protection”, underlined Lucas Chancel. Civil society must advocate for improved access to data to carry out this monitoring, and to enable citizens and organized civil society actors to contribute to these databases. Transparency and co-construction of databases should enable civil society to rank[3] good and bad performers in terms of reducing social and environmental inequalities. This ranking would provide them with an interesting advocacy tool to hold governments accountable for reducing inequalities.

References for further reading:

–        Facundo Alvaredo et al. (coord.) (2018). World Inequality Report 2018. Executive summary. World Inequality Lab (WID-World).

–        Lucas Chancel (2017). Insoutenables inégalités. Pour une justice sociale et environnementale, Les Petits Matins.

–        Lucas Chancel (2017). Unsustainable inequalities? IDDRI Blog. Available online here.

–        Lucas Chancel and Tancrède Voituriez (2015). Prendre au sérieux la réduction des inégalités de revenus : un test décisif pour les Objectifs de développement durable, Issue brief 06/15, IDDRI.

–        David Card, Alexandre Mas, Enrico Moretti and Emmanuel Saez (2012). “Inequality at work: The effect of peer salaries on job satisfaction”, The American Economic Review n°102, vol. 6.

–        Alain Cohn, Ernst Fehr, Benedikt Herrmann et al. (2011). Social comparison in the workplace: evidence from a field experiment, Discussion Paper n° 5550, IZA.

–        Eric Heyer, Pierre Madec, Mathieu Plane, and Xavier Timbeau (2017). Evaluation du programme présidentiel pour le quinquennat 2017-2022, Policy brief 25, OFCE Sciences Po Paris.

–        Pierre Madec, Mathieu Plane, and Raul Sampognaro (2017). Budget 2018: pas d’austérité mais des inégalités, Policy brief 30, OFCE Sciences Po Paris.

–        Oxfam (2018). Partager la richesse avec celles et ceux qui la créent, Oxfam International.

–        Richard Wilkinson and Kate Pickett (2013). Pourquoi l’égalité est meilleure pour tous, Les Petits Matins.

–        Gabriel Zucman (2017). “La ‘flat tax’ est une bombe à retardement pour les finances publiques”, Le Monde.

Since 2015, Lucas Chancel has been co-director of the World Inequality Laboratory at the Paris School of Economics, and lecturer at SciencesPo Paris specializing on the economics of inequalities and sustainable development. He is also a senior researcher at IDDRI. Previously, he worked as a consultant for TERI (Energy and Resources Institute, New Delhi, India) and for EIFER (European Institute for Energy Research, Karlsruhe, Germany). He has also been a visiting scholar for the United Nations Habitat Program.

His current research focuses on the interactions between social, economic and environmental inequalities. He has also worked on new indicators of prosperity, the determinants of household energy consumption, and the links between prosperity, growth and environmental policies.

A graduate of Sciences Po, Ecole Polytechnique and ENSAE (Master in Economics and Public Policy) and Imperial College London (Master in Renewable Energy Engineering), he also holds a double degree in physics and social sciences from Sciences Po and the University Paris VI.

© IDDRI 2018

 

[1] For more information on the reasons for the increase in global inequality, as well as the reasons for large regional disparities, see the summary of the 2018 World Inequality Report here.

[2] For more information on this movement, click here.

[3] Based on the model of the OECD PISA survey, which assesses the quality, equity, and efficiency of school systems around the world.

UN Secretary-General Releases Advance Version of 2018 SDG Progress Report

By UN

On 10 May, UN Secretary-General Antonio Guterres issued, in advance, the unedited 2018 edition of the annual report on progress towards the SDGs. The report is based on selected SDG indicators for which data is available, using the latest data as of 10 May 2018.

The report titled, ‘Progress towards the Sustainable Development Goals,’ is produced to inform the UN High-level Political Forum on Sustainable Development (HLPF). The global indicator framework used in the report was developed by the UN Inter-Agency and Expert Group on Sustainable Development Goal Indicators (IAEG-SDGs), and later adopted by the UN General Assembly (UNGA) in July 2017 (resolution 71/313).

For each of the 17 SDGs, the Secretary-General’s report provides an overview paragraph on progress. This is followed by a list describing statistical trends for the targets under each Goal.

Some of the most notable discoveries in the report include:

  • Goal 2 (greater food security and the end of hunger): after a prolonged decline, “world hunger appears to be on the rise again”. This indicates that the prospect of ending hunger and malnutrition by 2030 has become increasingly difficult.
  • Goal 7 (affordable and clean energy): ensuring access for all “has come one step closer,” and notes improvements in industrial energy efficiency.
  • Goal 13 (climate action): 2017 was one of the three warmest years on record, and the world continues to experience rising sea levels, calling for countries implement their commitments under the Paris Agreement on climate change.
  • Goal 16 (peace, justice and strong institutions): there has been progress in regulations to promote public access to information, “albeit slowly,” as well as in strengthening national human rights institutions.

Some of the SDGs’ 169 targets are not reflected in the report, due to lack of data or methodological development on their respective indicators. The report stresses the need for quality, accessible, open, timely and disaggregated data, brought about through strengthened capacities of national statistical systems.

The 2018 session of the HLPF will convene from 9-18 July 2018, in New York, US.

The full report can be found here.

ANIMALS ON THE AGENDA – A new front in the struggle against inequality?

By Spanish Green MEP Florent Marcellesi’s and philosopher and author Corine Pelluchon

Animal exploitation on a mass scale remains a grotesque reality today. But a cultural shift is underway, and animal-rights awareness and activism is on the rise. The Green European Journal sat down with Spanish Green MEP Florent Marcellesi and philosopher and author Corine Pelluchon to discuss change on the horizon.

Green European Journal: What explains the resurgence of animal rights as an issue in politics and society in recent years?

Corine Pelluchon: It’s not a resurgence, it’s an emergence in society, and in politics in particular. It stems from the challenging of a tired, worn-out development model, whose social and environmental counterproductivities are plain to see. Animal rights and awareness of animal suffering and its intensity is made more tangible by images than environmental damage is. The depth of the animal rights issue lies, in my opinion, in its challenging of this development model, which leads beings to become numb and divided, accepting it because it’s intolerable, but it’s also a lever for putting forward another model. It’s the hope that we can promote a society where the interests of humans and animals are taken into account and where we can transform the economy and achieve ecological transition.

On the political side of things, there is, on the one hand, pressure from civil society, animal welfare charities who are mobilising certain politicians, even though animal rights has been slow in becoming a political end in itself. It has still not been accepted as a constitutional principle. On the other hand, while some (including members of the European Parliament) want to improve animal welfare, and even end certain cruel practices, they often lack the means to make themselves heard because representative democracy prioritises the immediate interests of mankind today, and not the long term and other living creatures; it also favours very economistic politics in which lobbies are powerful. I think that there has been a divorce between politicians and stakeholders in civil society. For example, most farmers have understood that they need to change model.

Florent Marcellesi: Just ten years ago, if you said, “I’m a vegetarian”, people would laugh at you. Today, the initial reaction is more likely to be: “I’m doing everything I can to eat less meat.” This very profound cultural shift certainly hasn’t yet led to any major concrete changes, even less so at a political level, be it in Europe or in member states, but change, slow and gradual, has begun in terms of production and consumption. And what is certain is that the power of images, through videos made in abattoirs, for example, partly explain the visibility of the issue. This power of images leads us back to ourselves, to our development model. Nobody would allow our pets to suffer what pigs, cows, or chickens suffer.

Change, slow and gradual, has begun in terms of production and consumption.

In politics, those fighting for animal rights remain somewhat in the minority. I think that the question of animal welfare has already moved forward in a way that cuts across issues more. For example, under Article 13 of Title II of the Lisbon Treaty, animal welfare is recognised but is also limited by a clause on cultures, as is the case for bullfighting, for example. But the most notable absentee is animal rights. How can we have conceived our representative democracy only in terms of humans? What about ‘non-human entities’? Nature? Sentient beings? The ‘voiceless’ raise a fundamental democratic question about animal rights.

In the current fight to protect animals, should we see a deeper continuity with the fights against injustices such as slavery, racism, and the like? A new front in the struggle against inequality?

Corine Pelluchon: There is a sort of convergence of logic between condemning racism, sexism, and speciesism. However, I think that the issue runs deeper because it’s a question of civilisation, as I showed in Manifeste animaliste. Politiser la cause animale Today, it’s our humanism itself and our idea of ourselves, our identity, which are at stake. In my book Éléments pour une Éthique de la Vulnérabilité – Les hommes, les Animaux et la Nature published in 2011, I took the opposite stance to traditional animal rights advocates, who contrast animalism with humanism, to show that the animal issue, which questions our own humanity, who we are and how we got there, can only be understood as part of a renewed humanism that takes into account subjectivity and vulnerability. The goal is to complete the unfulfilled legacy of human rights, which were founded on an atomist and abstract conception of the subject. All my work in Les Nourritures. Philosophie du corps politique (Seuil, 2015) and Éthique de la considération (Seuil, 2018) is dedicated to this.

Taking responsibility for animal suffering and stepping through the looking glass is something hard to endure.

I was born in the countryside: my father was a farmer. At the time, cows lived for 14 years. They had horns, they all had names. Today, they live for four years, are worn out, have cancers of the uterus because they are inseminated too early and metabolise enormous amounts to produce enormous amounts of milk. Sure, pigs were killed on the farm, but there were no gestation crates, no un-anesthetised castration of piglets. Today, the industrial farming that has been the norm since the Second World War, with an acceleration in the 1980s and 1990s, shocks and scares people, especially the younger generation. I think that everyone is aware and concerned, but there are many people who employ psychological defence strategies, because it’s difficult to take responsibility for this violence, to experience all the negative emotions associated with the shame of making animals suffer what they do. Taking responsibility for animal suffering and stepping through the looking glass is something hard to endure. Turning this suffering into political engagement takes time. That’s why it’s very important to accompany this awareness of animal suffering with words, and not just videos. Today, it’s time that certain countries, particularly France and Spain, which lag far behind, make progress on certain points.

Florent Marcellesi: As soon as you explain the figures to people, they’re horrified. At a global level, 60 billion land animals are sacrificed every year. Added to that are 100 billion sea animals. In Spain, for example: 50 million pigs are sacrificed each year, which is equivalent to the population of Spain. For chickens, it’s 700 million a year, which is more than the population of the European Union! I don’t think that the word ‘exploitation’ is strong enough; we should talk about ecocide. It’s an ‘animal genocide’, as Mathieu Ricard would say, a large-scale massacre authorised and implemented by the system and in which the public authorities and societies are stakeholders.

I don’t think that the word ‘exploitation’ is strong enough; we should talk about ecocide.

I think there are connections between movements for equality. Rosa Parks and Coretta Scott King were fighting for animal rights, by extension of the non-violence movement. Alice Walker, author of “The Color Purple”, said: “The animals of the world exist for their own reasons. They were not made for humans any more than black people were made for white, or women created for men.” I think that, just as environmentalism brought nature into democracy, even if it’s still incomplete, animalism will bring animals into it. That’s why there needs to be connections between these different movements. Progressivism forgot about environmentalism, and environmentalism forgot about animalism somewhat. It’s the next step. Of course, adding the interests of animals to the interests of humans and nature further complicates the overall approach. But, whether it’s in the European Parliament or everyday life, it’s very important to change the model of development, production, and consumption to have this complete and holistic vision.

How can we reconcile these different points? What are the different points of friction?

Florent Marcellesi: There are points of friction, it’s undeniable, for example, around invasive species and biodiversity. But there are also many points of convergence that interest me more than points of friction, which can make us lose our way and lose sight of the overall goal. But we must come together around the main thing, which is a sustainable, fair, and democratic development model with more than just the human being at its core.

Corine Pelluchon: That’s exactly my way of doing things. We have to negotiate in politics, find common ground when there is disagreement, accept differences. It’s also important to avoid pointless debates, like whether veganism means not keeping pets. First of all, I think that it’s a shame to cut us off from everything that animals teach us, like otherness. But we also need to stop pitting vegans and non-vegans against each other. Because the real problem is first of all industrial farming with its consequence for the climate, land grabbing, and the fact the demand for animal products has an impact on the 865 million people who suffer from hunger and the two billion who suffer from malnutrition and live in poor countries where cereals are exported for American and European livestock. Not to mention health problems, such as antibiotic resistance due to their massive use in industrial pig farming, like in Germany. The problems that I’m talking about here are enough to find major areas of convergence and to encourage Westerners to halve their consumption of animal products, including dairy products. That’s the recommendation for returning to a consumption level similar to that seen at the beginning of the 20th century, whereas today in France, 70 to 80 kilograms of meet are eaten per person, per year, which is enormous. The most important thing in our actions for moving towards ecological and food transition is that we insist on the convergence between the environment, health, social justice, and animal welfare. The goal is to have tolerant and non-violent partners to achieve profound and long-lasting change.

Florent Marcellesi: In political ecology, it’s the famous slow revolution, part of a long-term radical reformism. Given the figures that we’ve cited, to think that we can abolish animal exploitation overnight is a fantasy. I think that we should have an abolitionist goal. Ethically, it’s the most coherent, but in practice, we need to be able to make day-to-day progress and work with everyone.

Industrial farming is key because it is the crux of the problem and cuts across issues: climate (15 percent of greenhouse emissions), health (800 million people who are dying of hunger, and 800 million others who have problems with obesity, cancer, and diabetes caused by poor diet, including meat), working conditions in farming (in abattoirs, for example), deforestation in the third world, and, of course, animal suffering. In this context, reducing the consumption of meat is a sustainable and beneficial action: it helps change the system and allows the consumer to live in better health. We need to remind people of the pleasure that comes from eating much less meat. People can live much better and with fewer illnesses. Eating meat twice a week is more than enough and lets people rediscover other sources of protein, such as legumes. To change this means changing two things: on the one hand, changing the production system so that it gives greater importance to vegetable proteins than animal proteins, and on the other hand, of course, changing the Common Agricultural Policy (CAP) in Europe, which currently supports the food industry and mega farms, which are multiplying, but which should support agroecology and small organic and extensive farms.

Corine Pelluchon: I recently spoke to a group called Agrospective. The representatives of McDonald’s, for example, have heard what I’m saying because they notice that consumers are shifting. They respond with vegetarian menus. It was very interesting, and business has high expectations of MEPs in re-orienting the CAP. Personally, I’m also a big believer in encouraging individuals to organise, in terms of land use, for example. This could be done via an environmental and social payment for projects that pave the way for the transition.

2019 European elections: can we hope for a real European movement? Is the European level the most relevant when it comes to animal rights?

Florent Marcellesi: There needs to be a convergence between everyone. If we want a long-term transition with little steps, we need to move forward together. Convergence implies different movements taking animal rights into consideration. For example, it would be useful if a movement like DiEM25 included these animalist issues in its project for Europe. This implies animalist parties taking on questions such as the environment, the fight for gender equality, and so on. And it also implies environmentalists taking a step forwards by declaring loud and clear that the convergences are stronger than the points of friction. I would like us to converge at the elections or at least in the same political group in the European Parliament so we can take on the food industry lobbies that are very much present in Brussels. Work is already underway in this direction with an intergroup in the European Parliament that is fairly well organised, and in which I participate alongside all the MEPs involved in animal rights. We need to strengthen these trends.

Corine Pelluchon: I think exactly the same thing. I would simply add that the environment, if it is taken seriously as wisely inhabiting the Earth and living alongside other living creatures, necessarily includes animal rights. I think that the danger for animalist parties lies in being new in some countries and therefore being potentially isolated, which would be a shame for the European elections. A broad vision can’t be made up as you go along. It involves thinking about humans in their relationships with other beings. The lobbies are extremely well organised, so to fight them we need to be organised and united too.

Confronting inequality: basic income and the right to work

By Tim Jackson

Ten years after the financial crisis, inequality in advanced economies is still rising. Tim Jackson presents the findings of a new CUSP working paper to explore potential solutions.

The idea of a citizen’s income originated with Thomas More, who in his work, Utopia (1516), suggested that it could be a means to redistribute wealth when common lands were privatised. More recently, it has enjoyed a resurgence with former Greek finance minister, Yanis Varoufakis, proposing a form of basic income as the solution to the modern dilemma of rising unemployment due to technological advances, in particular robotization and machine learning. For the same reason, the suggestion has become popular amongst the Silicon Valley elite. Just last week, Finland’s basic income trial (the first of its kind in Europe) came under the spotlight with claims that the scheme was to be abandoned as a failure – a claim the Finnish government took pains to deny

Money for no work clearly has its attractions, as Dire Straits pointed out. However, the idea that a universal basic income can remove inequality within society needs a careful examination. Is it more effective in sharing wealth than a tried and tested income tax, where higher income earners are taxed at higher rates? Or than a tax on capital assets, as the French economist Thomas Piketty has proposed? Can any of these measures prevent the systemic inequality that has become more prevalent in advanced economies in recent decades?

These questions lay behind the most recent CUSP working paper on confronting inequality in a post-growth world, in which a macroeconomic SIGMA model was used to explore the dynamics of inequality as the growth rate declines.

Piketty famously pointed out that a declining growth rate can have a damaging effect on the distribution of income. He insisted not only that rising inequality in the US was a direct result of a slowing economy, but also that declining growth rates must inevitably have such an impact. His magnum opus Capitalism in the 21st Century was described as a wake-up call for capitalism. It was also a profound challenge to anyone interested in the prospects of prosperity without growth. A post-growth world with an ‘explosive’ rise in inequality is not a happy prospect.

As it turns out, Piketty made a couple of assumptions in his workings which are critical to the outcome of the analysis. The first of these concerns the behaviour of the savings rate as the growth rate declines with Piketty implicitly assuming it would stay constant. The second key assumption concerns the ease with which it is possible to substitute capital for labour. With constant savings rate and high substitutability of capital for labour, one can easily demonstrate that Piketty was correct. Inequality rises explosively as a result.

It is also possible to see that these conditions look a lot like the world we’re being told to welcome: a small minority of high-tech companies driving an increasingly automated world with a rising capital intensity in which there is less and less need for wage labour. Demand may well stagnate, but as long as the owners of capital have sufficient sway over government to protect their returns, the show can go on. The outcome would be as dystopian as it is possible to be.

Worse still, in these circumstances there is no real consolation in the basic income. In fact, our simulations showed that you could use all three measures (basic income, income tax and capital tax) in combination at rather high rates and you would still end up fighting a losing battle against rising inequality. Perhaps more worryingly for the advocates of the basic income, it turns out to be the least effective of the three measures that were tested in the report, unless it could be introduced at rates considerably higher than those being tested in Finland (and elsewhere).

Fortunately, however, the outlook is not unambiguously bleak. The authors of the report looked into other possible outcomes from Piketty’s assumptions. One possible outcome would be that the net savings rate declines alongside the growth rate. In fact, this outcome may be more likely than one in which the savings rate remains constant: with declining growth and constant savings it is increasingly difficult to protect the rate of return on capital. A decline in returns is unlikely to act as an incentive to invest and will therefore lower the savings rate. At any rate, allowing the savings rate to decline alongside growth immediately allows for inequality to be contained between more reasonable bounds.

There is more good news. With a modest protection on the right to work and fewer incentives to accumulate capital (modelled through a low substitutability between capital and labour) we found that inequality declines ‘naturally’ in the report’s model, even without the impact of measures like the basic income. Taken together with redistributive policies measures, it is possible to eliminate inequality almost entirely, even as the growth rate declines towards zero.

In other words, there are post-growth worlds in which social progress remains entirely possible. It is a comforting outcome in a week when the UK’s quarterly growth rate slumped to a five-year low. It is also a vital finding for those who are less convinced by the growth-obsessed, hyper-capitalism that haunts us today.

Fight Inequalities campaign gets underway

By Solidar, World Vision and the EEB

Last week on 6 June, the global Fight Inequalities campaign was launched at the European Development Days.

The campaign was organised by civil society organisations from 15 EU countries who are working to increase awareness and push for the policy and social change needed to tackle inequality and poverty in Europe and beyond.

Inequality cuts across all of the Sustainable Development Goals. Tackling inequality should therefore be a priority, as none of the Sustainable Development Goals can be achieved.  

The campaign calls for societies to be more inclusive for women, children, different ethnic groups, marginalised people, and for EU citizens to become agents of change in their own communities.

Representatives from EU institutions took part in the campaign launch that took place at the ‘Make Europe Sustainable For All’ stand at the EDD event.

The #FightInequalities stand at the EDDs created an interactive and enriching experience. The 17 steps towards equality game, depicted all of the 17 Sustainable Development Goals (SDGs). The player would walk through various stories of inequalities happening to people in their everyday lives, both from Europe and beyond. This way, the player would learn about the different forms that inequality can take. After, the visitor had the opportunity to contribute to the inequalities mosaic with a picture and a quote reflecting the outcomes of the interaction.

More information at: http://makeeuropesustainableforall.org/campaigns/