towards sustainable economies

The report critiques neoliberal economic globalisation for driving inequality and environmental destruction. It proposes a transition to sustainable economies based on economic diversity, subsidiarity, and the prioritization of human rights and ecological limits over profit. Key recommendations include cancelling the financial debt of the global South, reforming the WTO, IMF, and World Bank under the UN, and implementing the precautionary and 'polluter pays' principles.

• The report argues that neoliberal economic globalisation is fundamentally flawed and unsustainable because it prioritizes profit over social and environmental costs, leading to increased inequality, the erosion of democracy, and the exploitation of finite natural resources. It claims that the 'win-win' theory of comparative advantage is outdated because capital is now internationally mobile, allowing investors to play governments against each other to extract concessions.
• Friends of the Earth International (FOEI) proposes a shift toward 'sustainable economies' based on the principles of economic diversity and economic subsidiarity. Economic diversity involves avoiding dependence on a few commodities and preventing monopolies, while economic subsidiarity advocates for making economic decisions at the lowest appropriate local level to increase democratic participation and self-reliance.
• The document asserts that current measures of economic welfare, specifically GDP, are inadequate because they fail to account for quality of life, environmental degradation, and unpaid work—such as caregiving and subsistence farming, which is largely performed by women. It also notes that transport is indirectly subsidized because fuel costs do not reflect full environmental and social impacts, which encourages long-distance trade over local production.
• The report highlights a critical imbalance between the 'global North' and 'global South,' stating that the North has incurred an 'ecological debt' to the South by using its resources at low prices. It argues that impoverished countries are forced into 'export-led development' to pay off financial debts, which leads to oversupplied markets and falling commodity prices, further trapping them in poverty.
• To achieve sustainability, the report calls for the implementation of the 'precautionary principle' and the 'polluter pays principle.' The precautionary principle is intended to protect future generations from uncertain environmental and health risks, while the polluter pays principle requires companies to bear the costs of preventing or cleaning up pollution through taxes or regulations.
• The document advocates for a total redesign of international economic infrastructure, suggesting that the World Trade Organisation (WTO), the International Monetary Fund (IMF), and the World Bank be incorporated into the United Nations. It argues that multilateral treaties regarding the environment, human rights, and labour should take precedence over trade rules.
• The report demands stricter regulation of corporations to reduce their influence over governments and the erosion of democracy. Proposed measures include requiring prior informed consent from communities before corporate projects, establishing legal financial and criminal liability for pollution, and introducing international anti-trust laws to prevent monopolies.

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} }