The current crisis was predicted 30 years ago

MOSCOW. (RIA Novosti economic commentator Vlad Grinkevich) – The current economic crisis came as a bolt from the blue for most. In the meantime, experts warned in the early 1970s that the world economy was heading for a crisis in the first decades of the 21st century.

In the 1960s, Western countries concluded that oil-stained beaches, smoggy megalopolises, and heavy pollution of major European rivers were too high a price for the benefits of mass production. In 1968, a group of industrialists, politicians, and scientists set up the Club of Rome in the Italian capital. They had enough money to conduct a series of studies with the participation of prominent scientists, and the use of tested methods.


The Club’s first report, which had the tell-tale title “Limits to Growth,” caused a shock. It was compiled by a group of scientists headed by Dennis L. Medows, who decided to create a cybernetic model of global development. Having focused on five global processes: fast industrialization, population growth, increasing shortage of food, depletion of non-renewable resources, and degradation of the environment, they modeled the future on a computer.

The emotionless machine produced an answer that sounded like a verdict: the human race is in for a disaster. Considering that the population was growing at a rate of over two percent annually at that time, while industry was growing at up to five to seven percent, modern civilization was bound to reach the limits of growth in the first decades of the 21st century. Mineral resources will have been depleted; environmental pollution will have become irreversible; a sudden uncontrolled drop in the population and decline in production will have become inevitable. Millions of people will have died as a result of man-made catastrophes, spontaneous economically motivated social conflicts and unknown pandemics.

To prevent the cataclysm, the authors of the report offered a concept they called “zero growth,” under which new purchases should only replace used up items. For example, a new car should be purchased only when the old one has stopped running; there should be universal birth control – no more than two children per family, and they suggested restricting consumption.

The report was a bombshell. It called into doubt the foundations of the Western economies. The zero growth concept contradicted the very logic of industrialized society which rested on the principle of supply-and-demand. The concept did not offer a future for the poor people of the non-capitalist world: a resident of a Soviet communal apartment was bound to live in it until he died, while a Chinese peasant was doomed to heat his hut with manure and dead-wood.

RIA Novosti