Productivity Commission urged to ditch economic growth mindset, for the sake of our health and planet – Croakey Health Media

Report on Aligning Australia’s Economic Reform with Sustainable Development Goals

Introduction: Economic Productivity and Planetary Health

As the Australian Government’s Productivity Commission finalises its reports on national economic reform, there is a critical need to integrate principles of planetary health equity. This approach is essential for aligning Australia’s economic agenda with the United Nations’ Sustainable Development Goals (SDGs). Standard economic policies focused solely on growth are insufficient to address the interconnected challenges of climate change, health, and inequality, thereby threatening progress on key SDGs.

Analysis of the Current Productivity Agenda

The Government’s Five Pillars for Productivity Growth

The government has tasked the Productivity Commission with developing reforms based on a five-pillar agenda aimed at enhancing productivity. These pillars are:

1. Creating a more dynamic and resilient economy
2. Building a skilled and adaptable workforce
3. Harnessing data and digital technology
4. Delivering quality care more efficiently
5. Investing in cheaper, cleaner energy and the net zero transformation

Critique of the Growth-Centric Model in Relation to SDGs

The prevailing economic narrative, which prioritises growth as the primary measure of success, is fundamentally at odds with long-term sustainability. This “business as usual” approach perpetuates consumptogenic systems that drive environmental degradation and social inequity. This directly undermines several core SDGs:

• SDG 12 (Responsible Consumption and Production): An economic model based on exponential growth encourages unsustainable patterns of consumption and production.
• SDG 10 (Reduced Inequalities): The pursuit of growth for its own sake has historically led to a concentration of wealth, widening the gap between the affluent and the marginalised.
• SDG 3 (Good Health and Well-being): Systems that pollute the environment and promote unhealthy consumption contribute to negative public health outcomes.
• SDG 13 (Climate Action): A growth-centric economy that fails to fully account for environmental externalities is a primary driver of the climate crisis.

A reimagined economic system is required—one that serves the well-being of people and the planet, rather than pursuing growth as an end in itself.

Recommendations for Integrating SDGs into Economic Policy

To embed sustainability and equity into the national economic framework, four key recommendations are proposed for the Productivity Commission’s consideration.

Proposed Levers for Systemic Change

1. Commit to a Wellbeing Economy: The Commission should advocate for a shift towards a wellbeing economy, using the government’s “Measuring What Matters” framework as a foundation. This reframes economic purpose to align with SDG 3 (Good Health and Well-being) and redefines SDG 8 (Decent Work and Economic Growth) to prioritise holistic societal progress over simple GDP increases.
2. Foster Wellbeing Approaches in Public Service: Recommendations should compel public sector performance to be measured against planetary health and equity outcomes. This institutionalises accountability and supports SDG 16 (Peace, Justice and Strong Institutions) by ensuring government actions are directed towards sustainable and equitable goals.
3. Develop Recommendations for Climate-Friendly Investment: The Commission should prioritise investment recommendations based on greatest societal and environmental need. This includes strategic investment in areas critical to achieving multiple SDGs, such as:
   • Green energy infrastructure (SDG 7: Affordable and Clean Energy)
   • Secure and sustainable food systems (SDG 2: Zero Hunger)
   • Climate-resilient housing (SDG 11: Sustainable Cities and Communities)
4. Recommend Regulatory Guard-rails for Shifting Burdens: Instead of deregulation, the Commission should propose robust regulatory guard-rails to protect public interest from corporate influence. Such measures are vital for safeguarding environmental protections, labour standards, and public health, thereby strengthening SDG 16 (Peace, Justice and Strong Institutions) and upholding progress on numerous other goals.

Conclusion: A Call for Transformative Action and Partnership

Finalising the economic reform agenda presents a pivotal opportunity to move beyond outdated models. It is imperative that the Productivity Commission’s final recommendations champion a systemic shift towards an economy that fosters planetary health and equity. Achieving this requires sustained collaboration between government agencies, NGOs, and civil society, reflecting the spirit of SDG 17 (Partnerships for the Goals), to ensure that Australia’s economic future is both prosperous and sustainable.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

1. SDG 3: Good Health and Well-being
   • The article’s central theme is “planetary health equity,” directly linking environmental conditions to human health. It mentions that the current economic system is “making people sick” and advocates for a “prevention investment framework” to improve health outcomes.
2. SDG 8: Decent Work and Economic Growth
   • The article critically examines the traditional economic growth model (“growth for growth’s sake”) and its negative consequences. It advocates for a shift towards a “wellbeing economy” and a “growth for purpose mindset,” which aligns with the SDG 8 goal of promoting sustainable economic growth.
3. SDG 10: Reduced Inequalities
   • The text explicitly states that the current growth model has led to a “concentration of wealth and widening inequality.” The concept of “planetary health equity” aims to address the disproportionate environmental and health burdens on different populations, directly connecting to the goal of reducing inequality.
4. SDG 11: Sustainable Cities and Communities
   • The article calls for investment in “climate resilient housing,” which is a key component of creating sustainable and safe communities.
5. SDG 12: Responsible Consumption and Production
   • The article critiques the “toxic consumptogenic system” and notes that “domestic demand and consumption have been key sources of economic growth.” It implicitly calls for more sustainable patterns of consumption and production by challenging the “business as usual” approach.
6. SDG 13: Climate Action
   • The article is framed around the reality of a “warming planet.” It calls for “climate-friendly investment,” investment in “green energy infrastructure,” and achieving the “net zero transformation.” It also references Australia’s “Nationally Determined Contribution,” a key instrument of climate action.
7. SDG 16: Peace, Justice and Strong Institutions
   • The article focuses on the role of government institutions like the Productivity Commission and the public service. It suggests compelling public servants to “perform against targets that prioritise planetary health equity outcomes” and developing “regulatory guard-rails,” which speaks to building effective, accountable, and transparent institutions.
8. SDG 17: Partnerships for the Goals
   • The article concludes by urging “NGOs, civil society and the public” to “work with government agencies to develop practical, mission-driven recommendations.” This highlights the need for multi-stakeholder partnerships to achieve sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Target 3.9: By 2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution and contamination.
   • This is relevant to the article’s statement that the “toxic consumptogenic system” is “polluting our planet and making people sick.”
2. Target 8.4: Improve progressively, through 2030, global resource efficiency in consumption and production and endeavour to decouple economic growth from environmental degradation.
   • The article’s core argument against “exponential growth” being “not environmentally sustainable” and its call for a “wellbeing economy” directly align with this target.
3. Target 10.2: By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion or economic or other status.
   • The focus on “planetary health equity” and addressing “widening inequality” connects to this target of ensuring inclusive societal progress.
4. Target 11.1: By 2030, ensure access for all to adequate, safe and affordable housing and basic services and upgrade slums.
   • The specific recommendation to invest in “climate resilient housing” directly supports this target.
5. Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
   • The critique of the “consumptogenic system” and the economic reliance on “domestic demand and consumption” points to the need to achieve this target.
6. Target 13.2: Integrate climate change measures into national policies, strategies and planning.
   • The article’s entire premise is to influence the Productivity Commission’s advice to the government, urging it to integrate planetary health and climate considerations (“net zero transformation”) into its economic reform agenda.
7. Target 16.6: Develop effective, accountable and transparent institutions at all levels.
   • The suggestion to make public servants “perform against targets that prioritise planetary health equity outcomes” and to create “regulatory guard-rails” aims to improve institutional accountability and effectiveness.
8. Target 17.14: Enhance policy coherence for sustainable development.
   • The article argues for integrating environmental, social, and health considerations into economic policy, which is the essence of policy coherence for sustainable development.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. The “Measuring What Matters Statement and Framework”
   • This is an explicit indicator framework mentioned in the article. The authors suggest the Productivity Commission should use it to underpin a “wellbeing economy” and to set targets for public servants, moving beyond purely economic growth metrics like GDP.
2. Planetary Health Equity Outcomes
   • The article implies the need for new indicators to measure “planetary health equity outcomes.” While not defined, these would likely involve metrics that track the intersection of environmental quality, health, and social equity across different population groups.
3. Level of Climate-Friendly Investment
   • The call to “reassess investment recommendations” and prioritize “investment in green energy infrastructure; secure, healthy and sustainable food systems; and climate resilient housing” implies that the volume and direction of public and private investment are key indicators of progress.
4. Australia’s Nationally Determined Contribution (NDC)
   • The article mentions the NDC as a key policy document. NDCs are the primary tool used by countries under the Paris Agreement to communicate their climate targets and are a direct indicator of national commitment and progress on climate action (SDG 13).

4. Summary Table of SDGs, Targets, and Indicators

Source: croakey.org