{"id":17521,"date":"2020-11-02T16:16:24","date_gmt":"2020-11-02T05:16:24","guid":{"rendered":"http:\/\/www.socialpolicyconnections.com.au\/?p=17521"},"modified":"2020-11-02T18:50:47","modified_gmt":"2020-11-02T07:50:47","slug":"some-say-neoliberals-have-destroyed-the-world-but-now-they-want-to-save-it-is-scott-morrison-listening","status":"publish","type":"post","link":"https:\/\/www.socialpolicyconnections.com.au\/?p=17521","title":{"rendered":"John Hawkins. Some say neoliberals have destroyed the world, but now they want to save it. Is Scott Morrison listening?"},"content":{"rendered":"\n

John Hawkins<\/a> University of Canberra<\/a>.<\/h3>\n\n\n\n

The International Monetary Fund this week delivered a somewhat surprising message. It warned Earth was on course for \u201cpotentially catastrophic\u201d damage under climate change, and called for green investment and carbon prices to put the global economy on a stronger, more sustainable footing.<\/p>\n\n\n\n

Of course, the message itself makes a lot of sense. The surprising part is that the IMF is the outfit delivering it.<\/p>\n\n\n\n

The Washington-based IMF cannot be dismissed as a bunch of latte-sipping leftists. The organisation has traditionally been a bastion of free market economics and fiscal austerity, long detested by socialists.<\/p>\n\n\n\n

It\u2019s now abundantly clear Australia\u2019s climate policies are at odds with even the most conservative approach to economic management. Increasingly, the Morrison government is an outlier on the world stage.<\/p>\n\n\n\n

IMF calls for climate action<\/h4>\n\n\n\n
\"Person
The IMF has called for a green-led pandemic recovery. Shutterstock. <\/figcaption><\/figure><\/div>\n\n\n\n

The IMF\u2019s biannual World Economic Outlook<\/a> projected a deep recession for 2020, as a result of the Covid-19 pandemic. Global economic output is expected to shrink by 4.4% this year.<\/p>\n\n\n\n

The IMF noted while the recession has reduced emissions, the decline is temporary. It warned policies to reduce greenhouse gas emissions were \u201cgrossly insufficient to date\u201d and global temperatures could increase by up to 5\u2103 by the end of this century. This would lead to \u201cphysical and economic damage, and increasing the risk of catastrophic outcomes across the planet\u201d.<\/p>\n\n\n\n

It said \u201can initial green investment push, combined with steadily rising carbon prices, would deliver the needed emissions reductions at reasonable output effects\u201d. It went on:<\/p>\n\n\n\n

The package would initially boost global GDP, supporting the recovery from the Covid-19 crisis, but then weigh on global activity for a period, as the impact of the investment push wanes and carbon prices continue to rise.<\/p>

In the second half of the century, the reduction in emissions would place the global economy on a stronger and more sustainable path.<\/p><\/blockquote>\n\n\n\n

So in other words, the IMF recognises that now is a good time to undertake green investment, because it has long-term benefits and<\/em> can act as a useful short-term stimulus.<\/p>\n\n\n\n

The outlook suggests the stimulus effect of the investment push fades after the first decade. But any slowing in annual economic growth is trivial. The longer term economic benefits of avoiding catastrophic climate change far outweigh any transitional costs.<\/p>\n\n\n\n

And in a transition to a low emissions economy, fears of net job losses appear misplaced. The IMF says says \u201cthe evidence indicates that environmental policies have succeeded in reallocating jobs from high- to low-carbon sectors\u201d.<\/p>\n\n\n\n

What is the IMF proposing?<\/h4>\n\n\n\n
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The transition to a low-carbon future will not lead to net job losses, the IMF says. Shutterstock.<\/figcaption><\/figure><\/div>\n\n\n\n

The IMF\u2019s proposed package involves the following tools:<\/p>\n\n\n\n