Delhi’s Devinder Sharma calls for a GEP measurement to replace the current GDP yardstick

Edited extracts from the latest article in Ground Reality

Sensible voices, however few these may be, have now begun to be heard. The pressure to de-globalise is an outcome of the anger that built up slowly and steadily as inequalities worsen and the world goes deeper and deeper into an environmental crisis, fast heading towards a point of no-return.

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The term ‘ecosystem’ was coined by Dr Roy Clapham, a botanist, in 1930. According to IUCN, the definition provided by Christopherson in 1997 is apt: “An ecosystem is a natural system consisting of all plants, animals and microorganisms (biotic factors) in an area functioning together with all the non-living (abiotic) factors of the environment.” The Convention on Biological Diversity (Earth Summit, Rio deJaneiro,1992) defines an ecosystem as: “A dynamic complex of plant, animal and microorganism communities and their non-living environment interacting as a functional unit.”

Unfortunately, Adam Smith did not measure the wealth generated by these ecosystems and the generation of economists who followed the principles of market economy also failed to look beyond what was prescribed in the textbooks. Many of the severe problems the world faces today — greenhouse gas emissions leading to climate change, the melting of ice caps and glaciers and the destruction of the environment (soil, water, oceans and air) — are due to economic thinking which created and thrust upon nations the GDP structure as a measure of wealth generated – based on a flawed assumption of what actually constitutes wealth. As Sharma has repeatedly said, if a tree is planted the GDP does not show it as growth, but if it is cut down the GDP grows.

But according to one study, the actual economic value of a fifty year old tree is as follows: 

  • Oxygen $ 7,700
  • Water recycling $ 10,000
  • Pollution control $ 17,700
  • Shelter for animals $ 8,300
  • Soil conservation $ 8,300

Yet if the tree is felled, the market price would be in the range of $ 1,100. See also the TOI report on Delhi Greens assessment.

Whether we like it or not, Sharma continues, neoliberal economics is bringing the world dangerously close to a tripping point.

A contract was signed in the early 1990s between the pharmaceutical giant Merck and a public-sector research institute in Costa Rica — InBio. Merck agreed to provide $1 million for two years to support ‘chemical prospecting’ which essentially means scouting the available biodiversity for commercial gain. It agreed to provide a 5% royalty arising from sales of any such products developed from samples of plants, animals and microorganism collected from with Costa Rica. Merck was then able to access huge resources for a meagre fee – 5% of the world’s biodiversity.

Biological resources have been conserved and protected by communities/tribes which have lived in these areas over the centuries

Mineral wealth exists in areas where abundant forests and tribes exist and communities living in hilly terrains and mountains have traditionally protected ecosystems. People living downstream in the river basins and plains have enjoyed the benefits of the untiring efforts of these custodians of immense biological wealth, who have been deprived of all the economic benefits – a one way transfer of wealth which has taken place over the centuries.

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Ehrlich and Ehrlich (1981) coined the term ‘ecosystem services’ and the Millennium Ecosystem Assessment (MA, 2005) provided the first international effort to quantify ecosystem services, followed by ‘The Economics of Ecosystems and Biodiversity (TEEB), based at the United Nations Environment Programme (UNEP) which created an Ecosystem Service Value Database based on 1500 global peer reviewed publications.

The destruction caused by development is generally considered as inevitable, based on economics that does not make any attempt to integrate the real cost-benefit ratio. However, though a number of studies are currently underway in numerous institutes/universities, the discipline of ecosystem services has still to be recognised. Sharma believes that efforts to calculate the monetary value of ecosystem services will be increasingly valuable in development planning, because the value has hitherto been taken as nil or free of cost. He hopes that once economic values are established, planners will make decisions which will not be based solely on economic gain.

devinder-edited-utube-7Sharma (right) advocates the computation of a Gross Environment Product based on the valuation of ecosystem services, ensuring that ecosystems are no longer associated with poverty. This will require the discarding of the economic assumption that growth automatically trickles down. It doesn’t. The amount of real wealth nations has created should be indicated by the measure of sustainable growth achieved. Becoming carbon neutral is one such indicator.

Primarily with this underlying objective, the Chandigarh-based trust Dialogue Highway, in collaboration with the Department of Environment Studies, Panjab University, organised the 2nd International Dialogue on Himalayan Ecology (Jan 28-29, 2017) on the theme: “The Economics of Himalayan Ecosystems”. (The youtube link leads to the programme in detail, but only a few screen shots). Experts from across the country made presentations based on the outcome of research undertaken to ascribe economic values to the ecosystem services provided by the Himalayas.

Sharma is sure that this dialogue will go a long way towards mainstreaming the subject of ecosystem services in policy planning and intends to undertake a similar exercise for the Western Ghats in the months to come.

 

 

 

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