Will degrowth become necessary by itself?

What is degrowth?

Degrowth is a type of economy where the economic wealth being produced does not increase or decreases in a planned way. Degrowth manifests through a reduction in the use of raw materials and the implementation of indicators related to population well-being.

Like all large economies in the world, Quebec remains to this day resolutely committed to the model of economic growth. However, faced with the growing impacts of climate change, degrowth could end up becoming necessary by itself in our daily lives.

GDP an imperfect indicator

GDP began to be used as a measure of economic and social well-being among populations in 1934 to measure the effect of the Great Depression on the economy. And yet, it is imperfect as an indicator, since it measures only certain data. For example, costs associated with factors external to the market, such as pollution and poverty, are not considered under GDP. According to the authors of the report Beyond Growth published by the OECD in 2020, an exhaustive evaluation of the health and well-being of an economy also requires the use of indicators that are broader in scope. These indicators would better reflect the distribution and viability of economic well-being looking at its social, economic, and environmental dimensions.

A few signs of degrowth

• Management of commercial forests based on resilience: In 2023, forest fires destroyed 82 times more hectares than the annual average over the last ten years in Quebec. To ensure forests survive, it will be necessary to adapt how commercial forests are managed in a way that is no longer based on economic growth and maximum commercial output, but rather on resilience and the capacity for forests to face fires and natural disasters.
• Quotas at tourist sites: Overcrowding at tourist sites has a negative impact on biodiversity and the ecosystem, in addition to harming residents’ quality of life and the tourist experience. In Canada, this reality is particularly notable in Banff, the most visited tourist site in the country. In response to this phenomenon, tourist sites are beginning to abandon maximum commercial returns, adopting an approach that ensures the preservation of biodiversity and quality of life. This can be done by establishing quotas.
• Planned obsolescence: The Government of Quebec has tabled legislation aimed at putting an end to the planned obsolescence of electronic devices. To replace this eloquent symbol of the model of growth at any price, a model is being proposed that is based on the reuse of resources and rooted in a circular economy.
• Four-day work week: In addition to the environmental benefits, the transition to a four‑day work week would bring several other advantages at the level of individual well‑being (e.g. reduced stress and less burnout), without generating further costs. In addition, reducing the amount of time worked does not necessarily lead to a loss of productivity and can sometimes even generate gains.

As can be seen, degrowth does not mean the end of economic development. It is, in fact, a matter of adding qualitative indicators to the measurement of GDP to take into account the social and environmental issues we are facing.