Page 75 - Shashwat - Restoring Green Economy
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             GRIHA: Do the environmental benefits seen as a result of this
             global slowdown (less smog, less turbid waterbodies, etc.) hint
             at the potential positive impacts of green economies?

                           : Yes, they do, as in the experience   enjoyed by many. But GHG emissions are now kicking up again,
                      JEof radically clean air in many cities   so the benefits will be short term. So, we have had a glimpse of
                      and in countries like China, at least for   what could happen if we acted in a timely and effective manner—
                      a while. The return of wildlife was also   our challenge is now to do precisely that.

             GRIHA: Businesses and individuals have suffered a great deal due to the COVID-19
             pandemic. As we look towards restarting businesses, what are the ways in which we can
             sustainably restore/reform economies?
                           : We have recently worked with
                      JEthe World Business Council for        Capitalism and its consequences for society and the
                                                               environment are very much in the spotlight. Even
                      Sustainable Development (WBCSD) to       committed capitalists are beginning to argue that
                      examine the structural transformation of
                      capitalism necessary to realize WBCSD’s   capitalism, in its current form, is unsustainable—
                      ‘Vision 2050’ (over nine billion people living   socially, environmentally, and economically. Yet
                      well within the means of the planet) and   capitalism’s core features of private enterprise and
                      the role of business in bringing about those   competitive markets are essential to addressing
                      transformations. The report, Reinventing   our greatest societal challenges and unleashing the
                                                               transformations required to meet the Sustainable
                      Capitalism: A Transformation Agenda                       Development Goals (SDGs).
                      argues the case for radical reform:

             Reinventing Capitalism synthesized   The capitalism we need is one that   and investors’ behaviour, adopt
             the best available thinking on why   rewards true value creation—not   new and better ways of measuring
             capitalism needs to be reinvented   value extraction as today’s model   performance, and tackle failures at
             if it is to create the conditions for   does. This means that all social and   the market and institutional levels
             long-term business success, and the   environmental costs and benefits   that favour financial value extraction
             actions that business, investors, and   should be internalized and reflected   over true value creation. A reinvented
             policymakers can take today to drive   in the relative price of goods and   model of capitalism that addresses
             transformation. A key message of the   services, and in companies’ profit and   these failures will be characterized
             work was that – ‘now is the time for   loss statements, costs of capital and   by five features, namely, stakeholder-
             companies and investors to enter—  market valuations.          oriented, impact-internalizing, long-
             and lead—the debate, not just about                            term, regenerative, and accountable.
             why capitalism needs to change,   The WBCSD report argues that if
             but about how we (must) go about   we are to get to such a version of   Reinventing capitalism along the
             transforming it.’               capitalism, we need to realign the   lines suggested will, undoubtedly,
                                             incentives that drive businesses   be very challenging. It will require

             6   For more details, please visit
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