I believe that the most fundamental root cause of many of our current social and environmental problems lies with our institutions – primarily our institutions of economics, business and governance. Poverty, climate change, mounting debt…these can all been attributed, to greater or larger extents, to the institutions that modern civilization is built upon; institutions that are cracking and creaking as they prove increasingly insufficient for the challenges of the modern world.

Let’s look at sustainability. We have an economic system that requires constant growth in order to survive. We have a business system that has to play by these economic rules and thus also requires constant growth. This is a model of business (the corporation) whose bottom line and primary purpose is to maximise its profit. Neither of the business or economic institutions take any consideration of social or environmental impact, although this is very slowly changing. Both of these institutions in fact treat our environment as unlimited income (rather than finite capital) and, it could be argued, require natural resources in order to run effectively – in order to meet their inherent need for constant growth. Neither institution takes in to consideration the possibility of limits.

So, our economic institution, and by extension our institution of business, requires constant growth yet takes no consideration of limits. Our civilization and entire way of life is dependent on such institutions. Every nation (with the possible exception of Bhutan) and business on the planet is chasing economic growth, with almost no acknowledgement of the possibility of limits. When this is understood, it seems of little surprise that our path is so unsustainable. It seems quite clear that our impact on the planet, particularly in the form of climate change, and our inability to manage our resources sustainably is a result of the institutions we have built our world upon. Such problems represent a very serious threat. Overshooting limits has had a role in every civilization collapse in history. And here we are, building modern civilization upon institutions which take no consideration of limits. Clever.

It does not take a physicist to tell you that infinite growth in a finite system is impossible. Simple common sense is enough. And yet, this is what our institutions demand. Currently, in order to achieve sustainability we are fighting against the institutions which define modern society. They have served us well for a long time, but are becoming increasingly outdated. To succeed, it seems clear that these institutions will need to undergo significant change.

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