Interview with Chandran Nair

In your book entitled “Consumptionomics” you argue that sustainability challenges in Asia are very different compared to Western states as Asia needs as many people working and using as few resources as possible. What’s the main difference?

Nair: The key difference is both the numbers and the nature of the political challenge. The numbers in Asia by 2050 will dwarf those in the West as the latter will be less than 10 percent of the global population and Asia as much as 60 percent. Thus the sustainability challenge in Asia can be boiled down to a key question: “Can or should Asians aspire to consume like Americans ?” I believe the answer is a resounding “No”. Thus to stop possibly nasty outcomes Asian governments will need to take political actions through intervention. They will need to shape expectations and intervene quite strongly in supposed free markets, where individual freedom with regard to consumption is viewed as sacrosanct. Their focus will need to be on meeting the basic needs of the majority.

On the other hand in the West the sustainability challenge and the need to take strong government action do not sit comfortably with each other as governments are weak and in many ways have been usurped by business interest. In addition it is going to be hard to tell people who have most of the basics and who are accustomed to a high quality that they will need to live differently as their ways of life are having global impacts and thus are unsustainable.

In your opinion Asia's business and political circles have been stuck to the idea of the superior Western economic model. Are policy makers in Asia redefining their attitudes and are they seeking for new answers after the financial crisis from 2008?

Nair: At the moment attitudes and ideas for the region are still based on the Western economic model, which promotes relentless consumption. There was very little effort given to alternatives in the years after the end of colonialism as international organizations such as the World Bank and the International Monetary Fund dominated the discourse on how to create prosperity and progress. However since the financial crisis of 2008 and the current challenges in the US and Europe there has been some questioning of the models promoted by the West. But the alternatives will require some bold thinking and experimentation, which governments will need to embark on now. Nevertheless this will not be an easy task as vested interests and Western ideology, which dominate global forums, will stand in the way of new thinking.

In the field of consumption a population of three billion people in Asia going on to five billion over the next 30 years are copying the Western consumption style, which has been based on unlimited resources. Which Asian traditions or current efforts might be able to point a different direction?

Nair: Whilst some traditions of frugality and other ways of life, which recognized limits as well as the dangers of overconsumption, should be drawn upon this is not going to make the real difference. These traditions and cultures have been under attack for a long time and mainly in the interest of promoting Western lifestyles and thus made to appear outdated and backward. Thus I believe the thrust will need to be through policies and political objectives being made very clear especially with regard to putting collective welfare ahead of individual rights and in this regard it could be argued that Asian societies have a longer tradition of and maintained the idea of the group before the individual. But there will be no substitute for governments putting in place even draconian rules and bans that at their core seek to protect the commons and therefore make resource access more equitable for the majority.

In a discussion with Bosch employees and management representatives you made the point that Asia doesn’t need another couple of billion cars adopting Western car ownership levels. What does Asia need in your opinion?

Nair: Clearly more cars and the supporting infrastructure, which is often ignored and for which car owners do not pay for, is not the future of Asian cities. Most of them are already among the most polluted, congested, dirty and people hostile cities in the world and therefore dramatic action will be needed. Thus governments will need to decide what these cities will need to have as a priority to make them livable. In my view they will need to prioritize basic housing (today 1 in 6 live in slums and this is predicted to rise to 1 in 3), safe water and proper sanitation, recreation areas and public transport rather than private car ownership.

There can be no doubt the amount of money and land, that is needed to support the never ending need to grow the infrastructure for the car industry, if spent on these would make most Asian cities more livable and allow the majority a better quality of life in these cities. Needless to say mobility is very important but this needs to be mainly in the form of an excellent public transport system which cities like Hong Kong and Singapore have invested in for decades. Those who seek to own cars, will have to pay of that right through the appropriate taxes, for which they continue to have a free ride at the expense of others.

Critics of the Western capitalism state that for some decades markets and companies were supposed to solve global problems while governments remained rather passive. Referring to the strong state in China you expect that the Chinese population will accept the limits of natural resources. What might be the influence and consequence on the role of states in the West?

Nair: The main point I make in the book is that Asia needs to reject the notion that a combination of free markets, technology and finance will solve all our problems including that of overcoming resource constraints. I thus argue that if the 21st century is to be one, in which resource constraints will not lead to catastrophic failure, Asian governments especially those of China, India and Indonesia will need to make clear in their policies the need to change course and in that way get the buy in of their population. People in the region are more aware of the resource limits and the consequences as they live and see it everywhere. But they have been led to believe that these constraints can be overcome by allowing free markets and companies to find solutions. If governments begin to tell the truth then there is a better chance of reshaping expectations, creating more equitable societies, in which more share in the prosperity and which in turn will make governments legitimate in the process.