{"id":88663,"date":"2023-01-07T13:14:00","date_gmt":"2023-01-07T17:14:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=88663"},"modified":"2023-01-17T17:12:04","modified_gmt":"2023-01-17T21:12:04","slug":"economic-growth-and-climate-change","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/economic-growth-and-climate-change\/","title":{"rendered":"Economic Growth and Climate Change: The Wealth Solution"},"content":{"rendered":"\n<p>Why can the Netherlands deal with flooding better than Bangladesh can? What&#8217;s the connection between economic growth and climate change?<\/p>\n\n\n\n<p>Investments in innovation and adaptation lessen the impact of climate change, but many countries lack the funds to make this investment. Consequently, Bjorn Lomborg argues that creating economic growth in poor countries is itself a promising climate policy.<\/p>\n\n\n\n<p>Keep reading to see how Lomborg arrives at this conclusion.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-economic-growth-climate-change\">Economic Growth &amp; Climate Change<\/h2>\n\n\n\n<p>As a case study of the connection between economic growth and climate change, Lomborg considers two countries: the Netherlands and Bangladesh. These countries are similarly susceptible to flooding\u201467% of the Netherlands is vulnerable to floods, compared with 60% of Bangladesh. Yet, because Bangladesh is impoverished, flooding is far more destructive there than in the wealthy Netherlands.<\/p>\n\n\n\n<p>To show as much, Lomborg observes that, after a flood killed 1,800 citizens in 1953, the Netherlands invested $11 billion in Delta Works\u2014a series of dams and barriers to combat flooding. Since then, they\u2019ve seen only three floods and one fatality from flooding.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Concrete Strategies to Stimulate Economic Growth<\/strong><br><br>Lomborg doesn\u2019t offer many actionable strategies for cultivating economic growth in impoverished countries. Especially in light of the Covid-19 pandemic, which <a href=\"https:\/\/www.usglc.org\/coronavirus\/economies-of-developing-countries\/\" target=\"_blank\" rel=\"noreferrer noopener\">damaged economies in many developing countries<\/a>, such actionables are crucial. To that end, experts recommend a<a href=\"https:\/\/www.mckinsey.com\/industries\/public-and-social-sector\/our-insights\/how-governments-in-emerging-economies-can-help-boost-and-sustain-growth\" target=\"_blank\" rel=\"noreferrer noopener\"> variety of approaches to foster growth<\/a>, such as:<br><br>\u2022 Invest in training civil servants, like government clerks and regulators. This improves the public sector by creating more competent public employees.<br>\u2022 Decrease regulatory and tax barriers that companies have to navigate. This allows businesses to increase efficiency and production more easily.<br>\u2022 <a href=\"https:\/\/www.un.org\/en\/chronicle\/article\/trade-and-mdgs-how-trade-can-help-developing-countries-eradicate-poverty\" target=\"_blank\" rel=\"noreferrer noopener\">Open up markets to international trade<\/a>. This encourages more sales and purchases, leading to increased economic growth.<br>\u2022 <a href=\"https:\/\/hanushek.stanford.edu\/sites\/default\/files\/publications\/Education%20and%20Economic%20Growth.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Fund schools that teach basic skills<\/a>, like literacy and mental math. This increases average cognitive ability, which is correlated strongly with income as an adult.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Conversely, floods still decimate Bangladesh: Lomborg notes that in 2019, floods displaced 200,000 Bangladeshi. Since Bangladesh lacks funding to combat flooding, it suffers more than the Netherlands, despite being similarly susceptible to flooding. If its economy were more prosperous, Lomborg claims Bangladesh would better adapt to this flooding.<\/p>\n\n\n\n<p>(Shortform note: In 2022, the Bangladeshi government is expected to approve a <a href=\"https:\/\/www.undp.org\/bangladesh\/press-releases\/national-adaptation-plan-make-bangladesh-climate-resilient\" target=\"_blank\" rel=\"noreferrer noopener\">National Adaptation Plan<\/a>, implementing policy initiatives that are designed to increase resilience to flooding. For example, the plan involves improving early warning systems for flash floods, while also encouraging joint river basin management with neighboring countries. Between 2023-2050, <a href=\"https:\/\/www4.unfccc.int\/sites\/SubmissionsStaging\/Documents\/202211020942---National%20Adaptation%20Plan%20of%20Bangladesh%20(2023-2050).pdf\" target=\"_blank\" rel=\"noreferrer noopener\">the plan is expected to cost $230 billion<\/a>, though donations from global climate funds cover much of that investment.)<\/p>\n\n\n\n<p>According to Lomborg, the points above lead to a general conclusion: <strong>Wealthy countries can better cope with climate change, while poor countries are disproportionately harmed<\/strong>. Therefore, sparking economic growth in poor countries\u2014even at the cost of increasing carbon emissions\u2014is a promising approach to climate change.<\/p>\n\n\n\n<p>(Shortform note: Experts agree that <a href=\"https:\/\/www.pbs.org\/newshour\/science\/many-of-worlds-poorest-countries-are-the-least-polluting-but-the-most-climate-vulnerable-heres-what-they-want-at-cop27\" target=\"_blank\" rel=\"noreferrer noopener\">climate change disproportionately affects poor countries<\/a>. Consequently, some have gone beyond Lomborg\u2019s recommendation of sparking economic growth and argued that <a href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/delivering-climate-finance-principles-and-practice-for-funding-the-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\">wealthy countries should provide direct financial support<\/a> for sustainable development in such countries. This financial assistance, they argue, will yield high returns on investment from the climate change it prevents down the road.)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why can the Netherlands deal with flooding better than Bangladesh can? What&#8217;s the connection between economic growth and climate change? Investments in innovation and adaptation lessen the impact of climate change, but many countries lack the funds to make this investment. Consequently, Bjorn Lomborg argues that creating economic growth in poor countries is itself a promising climate policy. Keep reading to see how Lomborg arrives at this conclusion.<\/p>\n","protected":false},"author":9,"featured_media":88667,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81,160],"tags":[850],"class_list":["post-88663","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics","category-science","tag-false-alarm","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Economic Growth and Climate Change: The Wealth Solution - Shortform Books<\/title>\n<meta name=\"description\" content=\"The Netherlands deals with flooding better than Bangladesh does. Why? 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