Olivier De Schutter, the United Nations special rapporteur on extreme poverty and human rights, has issued a powerful call for a fundamental restructuring of the global economy. He argues that the current system prioritizes the "frivolous and destructive demands of the ultra-rich" over the basic needs of ordinary people worldwide.
A New Economic Agenda for Justice
De Schutter contends that politicians must abandon their focus on "socially and ecologically destructive growth," which primarily boosts profits for wealthy individuals and corporations. Instead, he advocates for an economic model that addresses the interconnected crises of rising inequality, environmental collapse, and the resurgence of far-right politics.
"The scarce resources we have should be used to prioritise the basic needs of people in poverty and to create what is of societal value rather than serve the frivolous desires of the ultra-rich," De Schutter stated.
Inefficient Allocation of Resources
He criticized economies that channel limited resources into constructing large mansions instead of social housing, or producing powerful cars rather than developing public transportation systems. De Schutter described such priorities as "grossly inefficient" and destined to fail in meeting the essential needs of low-income populations.
This intervention follows recent discussions, including the Guardian's Beyond Growth series, which highlighted growing calls to end the relentless pursuit of indiscriminate growth. Critics argue this focus drives both ecological destruction and widening inequality.
Roadmap for Eradicating Poverty
Next month, De Schutter will publish his comprehensive "roadmap for eradicating poverty beyond growth." This document results from an informal coalition he formed, involving UN agencies, academics, civil society organizations, and trade unions.
The roadmap aims to expand policy options for governments, multilateral institutions, and development agencies combating poverty. Potential measures under consideration include:
- Universal basic income
- Job guarantees
- Debt cancellation programs
- Extreme wealth taxation
Coordinated Global Initiatives
Significantly, De Schutter's roadmap will coincide with two other major initiatives. UN Secretary-General António Guterres has launched an effort to replace GDP as the primary measure of economic success. Simultaneously, a G20 panel of independent experts on global inequality, led by renowned economist Joseph Stiglitz, will release its findings.
De Schutter noted that while many within the UN have recognized the "imperative of moving beyond growth" for years, political constraints and taboos have prevented open discussion. He believes next month's publications will allow high-profile figures to "come out of the closet" on growth limitations.
"This moment offers us a realistic opportunity to shape the post-2030 agenda with a viable alternative that will reconcile planetary boundaries with social justice and the fight against poverty and inequalities," he emphasized.
Proposing a Permanent UN Inequality Body
As part of this transformative process, De Schutter calls for establishing a permanent UN body to oversee the global fight against inequality. This institution would implement measures ensuring "the economy is redistributive and sustainable by design" rather than encouraging destructive growth patterns.
He suggested this new body could operate similarly to the Intergovernmental Panel on Climate Change (IPCC), which has coordinated international climate crisis responses since 1988.
"Like the IPCC we want the new body to not only collect the evidence of what is happening, but also to collect the evidence about the policy tools that can be used to achieve wellbeing without growth and reducing growth dependencies," De Schutter explained.
Addressing Developing Nation Challenges
Since his 2020 appointment, De Schutter has visited numerous low-income and developing countries. He observed they remain trapped in an economic model prioritizing destructive growth, often to repay foreign debts through exports dictated by global supply chains rather than domestic needs or ecological considerations.
The consequences frequently include environmental degradation, low wages, and minimal local investment. De Schutter advocates for growth driven by domestic demand, regional integration, and south-south trade, prioritizing poverty alleviation over serving ultra-rich demands.
Financing Public Services Through Taxation
For wealthier developed nations, next month's roadmap will outline how public services and social protections can be financed by taxing wealth and destructive economic activities, rather than relying on indiscriminate economic growth.
"It's a complex issue, but the key idea is that instead of public revenue being raised by taxing income from labour or economic activity, we should ensure that public revenue is raised by taxing wealth, financial assets, immovable property, financial transactions, and all the ills of the economy," De Schutter detailed.
Distinguishing Planned Transition from Recession
He clarified that his proposals differ fundamentally from recession or unplanned economic stagnation, such as following the 2008 financial crisis or the 1929 Great Depression.
"We should avoid the confusion between recession or stagnation of the kind we saw after 2008 or 1929 and the carefully planned and democratically controlled transition to something else," De Schutter asserted.
The upcoming proposals enjoy support from leading economists, academics, UN bodies, trade unions, and non-governmental organizations. De Schutter expressed optimism about presenting a viable alternative for the post-2030 agenda that reconciles planetary boundaries with social justice.
"That's the challenge. If we don't manage, well, the far-right populists will have their way," he concluded, underscoring the urgency of implementing these economic reforms.
