towards sustainable economies

The report critiques neoliberal economics for causing inequality, environmental degradation, and the erosion of democracy. It proposes a transition toward sustainable economies by redefining economic goals to prioritise human needs and planetary limits over profit, advocating for the decentralisation of economic decision-making, the cancellation of ecological debt, and the regulation of corporate power. The authors call for a redesign of global financial and trade institutions, suggesting they be integrated into the United Nations and subordinated to multilateral environmental and human rights treaties.

• Neoliberal economic theory is considered outdated because the 'win-win' theory of comparative advantage no longer applies in an era of instantaneously mobile capital, leading to a 'win-lose' scenario where benefits accrue to companies and owners rather than citizens.
• The current economic model is unsustainable as it relies on increasing rates of resource use without a market mechanism to guide it toward sustainability, contributing to the degradation of 1,200 million hectares of agricultural land over 45 years and the over-fishing of 13 of the 15 major ocean fisheries.
• The 'global North' has incurred an ecological debt to the 'global South' by using its resources at low prices, while Southern countries are forced into export-led development to pay off financial debts, which the report argues should be cancelled to allow for sustainable development.
• Economic welfare measurement must be reformed because GDP fails to account for quality of life, environmental quality, or unpaid care work, and incorrectly assigns positive value to activities like cleaning up oil spills.
• The report advocates for 'economic subsidiarity', where economic decision-making is devolved to the lowest appropriate level to increase democratic participation and allow local economies to determine their own level of self-reliance.
• Corporate influence is described as eroding democracy, and the report proposes strict regulations including mandatory social and environmental impact analyses, producer liability, and the 'polluter pays' principle.
• Global economic infrastructure should be redesigned by incorporating the WTO, IMF, and World Bank into the United Nations and ensuring that multilateral environmental, health, and human rights treaties take precedence over trade rules.

APA

Friends of the Earth International (n.d.). towards sustainable economies. https://www.foei.org/wp-content/uploads/2020/12/Towards-sustainable-economies-challenging-neoliberal-economic-globalisation.pdf

Chicago

Friends of the Earth International. towards sustainable economies. n.d. https://www.foei.org/wp-content/uploads/2020/12/Towards-sustainable-economies-challenging-neoliberal-economic-globalisation.pdf.

Wikipedia

{{cite report |author=Friends of the Earth International |title=towards sustainable economies |url=https://www.foei.org/wp-content/uploads/2020/12/Towards-sustainable-economies-challenging-neoliberal-economic-globalisation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{friendsoftheearthinternationalndtowards, author = {{Friends of the Earth International}}, title = {{towards sustainable economies}}, institution = {Friends of the Earth International}, url = {https://www.foei.org/wp-content/uploads/2020/12/Towards-sustainable-economies-challenging-neoliberal-economic-globalisation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }