The One Pager, which was commissioned by the KfW Development Bank, explains whether the climate crisis can be linked to demographic trends.
Over recent decades, economic growth has declined dramatically in all industrialised countries. This is the result of structural changes in developed societies. First, population growth is slowing. Second, innovation potential and productivity are only increasing slowly, despite globalisation and digitalisation. Third, inequality is increasing and limiting the consumption potential of lower income groups. Finally, environmental damage is exerting a decelerating effect on economic development. Classic cyclical economic policy is ineffective in the case of a structurally-caused reduction in growth. So far, growth has been vital for states, businesses and society. If economic growth remains low in the context of secular stagnation, developed countries will need to carry out fundamental macroeconomic transformations.
The Berlin Institute would like to thank the Daimler und Benz Stiftung for supporting this research project.
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