This implies that “unsolved” (or newly formed) problems in policy coordination and conflict
must in some way influence the data of the economic model and would contaminate its royal
elegance. On the other hand, managing the demarcations as Lerner has suggested, can have
major implications for an economy in crisis. The issue is when the queen of the social
sciences fails to reflect and address potential problems with “system relevant” assumptions,
it may also have a tendency to consider crisis an anathema and no longer truly work on the
theoretical horizon. Indications of this are the difficulties in managing (in theory and
practice) those problems‚ crises, and systematic risks that are not seen and understood solely
in isolation. Specialization/partialization, as a condition of progress is indissolubly linked to
a “machine model of progress”, but the present challenges clearly point beyond a machine
model – towards combinatorial progress that cannot be understood as the perfection of a
machine. (Sturn 2011)
In the context of avoiding or overcoming unresolved challenges, the paradigm of
sustainable development and the sustainable economy offer new perspectives. From
an economic perspective, sustainable development is concerned with securing the
basis of life and production. Under the three-dimensional framework, which as
mentioned above advocates for the equal importance of environmental, economic,
and social dimensions, there appears a new understanding of equilibrium that is
much more comprehensive than in the neoclassical economics. The sustainable
development approach aims to maintain the environment globally and permanently
while using this as the basis for developing and stabilizing the economic and social
systems. In addition to tridimensionality, the second constitutive feature of sustainable development is its intra- and intergenerational equity. Based on these two
constitutive features, the claim of sustainable development on the economy is
discussed in the next section in terms of economic growth, one of the most important
sub-disciplines in the field of economics.
1.3 Different Assessments of Economic Growth
The assessment of economic growth is accompanied by intense controversy, which
partially explains why no uniform understanding of progress can be given. Yet, this
controversy is not new. In opposition to the long-standing positive assessments
about economic growth, Mishan already stated the negative consequences in his
1967 book The Costs of Economic Growth. The controversy has been highly
differentiated by proponents and opponents in recent years. In principle, the opposing positions can be condensed: the proponents of growth seeing it as an opportunity
for greater prosperity and for the stabilization of market-based systems. Meanwhile,
the opponents of growth see a significant risk in the continuing burden on the
environment and the increasing institutional income and wealth disparity. Of course,
representatives of both sides propose further differentiation. Some of the proponents
of economic growth simply do not acknowledge the risk. Some other growth
advocates, on the other hand, are aware of the environmental risks and advocate a
reduction in their environmental impact (Weder di Mauro 2008). However, taking
6
M. von Hauff
must in some way influence the data of the economic model and would contaminate its royal
elegance. On the other hand, managing the demarcations as Lerner has suggested, can have
major implications for an economy in crisis. The issue is when the queen of the social
sciences fails to reflect and address potential problems with “system relevant” assumptions,
it may also have a tendency to consider crisis an anathema and no longer truly work on the
theoretical horizon. Indications of this are the difficulties in managing (in theory and
practice) those problems‚ crises, and systematic risks that are not seen and understood solely
in isolation. Specialization/partialization, as a condition of progress is indissolubly linked to
a “machine model of progress”, but the present challenges clearly point beyond a machine
model – towards combinatorial progress that cannot be understood as the perfection of a
machine. (Sturn 2011)
In the context of avoiding or overcoming unresolved challenges, the paradigm of
sustainable development and the sustainable economy offer new perspectives. From
an economic perspective, sustainable development is concerned with securing the
basis of life and production. Under the three-dimensional framework, which as
mentioned above advocates for the equal importance of environmental, economic,
and social dimensions, there appears a new understanding of equilibrium that is
much more comprehensive than in the neoclassical economics. The sustainable
development approach aims to maintain the environment globally and permanently
while using this as the basis for developing and stabilizing the economic and social
systems. In addition to tridimensionality, the second constitutive feature of sustainable development is its intra- and intergenerational equity. Based on these two
constitutive features, the claim of sustainable development on the economy is
discussed in the next section in terms of economic growth, one of the most important
sub-disciplines in the field of economics.
1.3 Different Assessments of Economic Growth
The assessment of economic growth is accompanied by intense controversy, which
partially explains why no uniform understanding of progress can be given. Yet, this
controversy is not new. In opposition to the long-standing positive assessments
about economic growth, Mishan already stated the negative consequences in his
1967 book The Costs of Economic Growth. The controversy has been highly
differentiated by proponents and opponents in recent years. In principle, the opposing positions can be condensed: the proponents of growth seeing it as an opportunity
for greater prosperity and for the stabilization of market-based systems. Meanwhile,
the opponents of growth see a significant risk in the continuing burden on the
environment and the increasing institutional income and wealth disparity. Of course,
representatives of both sides propose further differentiation. Some of the proponents
of economic growth simply do not acknowledge the risk. Some other growth
advocates, on the other hand, are aware of the environmental risks and advocate a
reduction in their environmental impact (Weder di Mauro 2008). However, taking
6
M. von Hauff