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“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.

During the great post–World War II economic expansion, modernization theorists held that the new American capitalism balanced mass production and mass consumption, meshed profitability with labor's interests, and ended class conflict. They thought that Keynesian policies insured a near full-employment, low-inflation, continuous growth economy. They viewed the United States as the “new lead society,” eliminating industrial capitalism's backward features and progressing toward modernity's penultimate “postindustrial” stage.⁷ Many Americans believed that the ideal of “consumer freedom,” forged early in the century, had been widely realized and epitomized American democracy's superiority to communism.⁸ However, critics held that the new capitalism did not solve all of classical capitalism's problems (e.g., poverty) and that much increased consumption generated new types of cultural and political problems. John Kenneth Galbraith argued that mainstream economists assumed that human nature dictates an unlimited “urgency of wants,” naturalizing ever increasing production and consumption and precluding the distinction of goods required to meet basic needs from those that stoke wasteful, destructive appetites. In his view, mainstream economists’ individualistic, acquisitive presuppositions crown consumers sovereign and obscure cultural forces, especially advertising, that generate and channel desire and elevate possessions and consumption into the prime measures of self-worth. Galbraith held that production's “paramount position” and related “imperatives of consumer demand” create dependence on economic growth and generate new imbalances and insecurities.⁹ Harsher critics held that the consumer culture blinded middle-class Americans to injustice, despotic bureaucracy, and drudge work (e.g., Mills, 1961; Marcuse, 1964). But even these radical critics implied that postwar capitalism unlocked the secret of sustained economic growth.

Morality is primarily a system of values, meanings, convictions, beliefs, principles, and drivers of good behavior and good outcomes in any organization. Using systems thinking concepts and applications introduced and developed during the last 50 years or so by various scholars from MIT, Stanford, and Wharton, such as Chris Argyris, Russell Ackoff, G. K. Forrester, Peter Senge, Stephen Covey, and Jim Collins, this chapter seeks to explore various past and contemporary market systems and challenges in terms of specific inputs, processes, and outputs. Systems thinking reckons everything in the cosmos (usually classified as subjects, objects, properties, and events) as a system (composed of two or more interactive parts with individual and interactive effects) that is connected to every other system in the universe. Various systems thinking laws and archetypes that have been developed thus far by systems thinkers will be introduced in order to identify basic patterns, structures, and constraints of human thinking and reasoning that create market phenomena. The academic and managerial challenge is to identify, explore, and capitalize such nonobvious connections for creating and developing new markets and corporate growth opportunities in the highly turbulent markets of today. In a globalized, digitized, and networked planet and universe, systems thinking is a very effective tool for analyzing turbulent market systems holistically and in an inclusive and integrated manner, with their specific inputs, processes, and outcomes. Several contemporary market cases will be included to illustrate the contents of this chapter.

Robert J Antonio's ‘Climate Change, the Resource Crunch, and the Global Growth Imperative’ is an excellent starting point for examining the dominance of the ideology of ‘economic growth’ within contemporary societies and social thinking against the background of the growing and profound socio-ecological crises such as climate change, resource scarcity and rampant consumerism. His article integrates contemporary scientific evidence about climate change and the ecological devastation being wrought by contemporary patterns of globalised carbon-fuelled and climate changing capitalism with classical and contemporary sociological theorising and calls for a greater engagement of social theorising with these defining challenges of the 21st century. In particular, Antonio's article begins the process of sociological theory re-engaging and re-interpreting classical sociology (Weber, Durkheim, Mead and Dewey) to develop forms of social theorising, which overcome a simplistic nature–cultural dualism and can equip critical social theory as fit for purpose for analysing the ecological, climate and resource ‘crunches’ facing all societies in the 21st century.

Highlights the constraints – natural, technological and political – to continued global economic growth.

Draws upon historical data from various secondary sources. Considers long-term trends.

The world economy has grown explosively over the past two centuries and has hugely increased its use of resources and associated emissions over that period. Global output could easily rise more than three-fold over the next 40 years, almost all of it in the emerging world. This will put substantial pressure on energy resources, and emissions of carbon dioxide and equivalents continue to rise. These developments are likely to generate large, unpredictable and possibly calamitous climate change.

Disturbing – in the absence of a technological, policy and political revolution.

Emphasises the challenge of mitigating climate change, and highlights the twin imperatives of convincing the people of the world that it is possible to combine greater prosperity with recognition of environmental limits and of developing the political institutions that make feasible the decisions that need to be taken.

Offers a comprehensive assessment of the prospects for global economic growth and the increasing demand for non-renewable resources, particularly energy.

Systems thinking calls for a shift of our mindset from seeing just parts to seeing the whole reality in its structured dynamic unity and interconnectedness. Systems thinking fosters a sensibility to see subtle connections between components and parts of reality, especially the free enterprise capitalist system (FECS). It enables us to see ourselves as active participants or partners of FECS and not mere induced factors of its production–distribution–consumption processes. Systems thinking seeks to identify the economic “structures” that underlie complex situations in FECS that bring about high versus low leveraged changes. A system is strengthened and reinforced by feedback of reciprocal exchanges that makes the system alive, transparent, human, and humanizing.

In Part I, we explore basic laws or patterns of behaviors as understood by systems thinking; in Part II we examine the basic archetypes or structured behaviors of systems thinking; in both parts we strive to see reality through the lens of critical thinking to help us understand patterns and structures of behavior among systems and their component parts. In conclusion, we argue for compatibility and complementarity of critical thinking and systems thinking to identify and resolve management problems created by our flawed thinking, and sedimented by our wanton assumptions, presumptions, suppositions and presuppositions, biases, and prejudices. Such thinking will also identify unnecessary economic and political structures of the self-serving policies we create, which imprison us.

This chapter investigates the long-run relationship between trade, financial openness, economic growth, and carbon dioxide emissions across 167 countries over the period 1970–2007.

We employ both standard panel least squares and dynamic Generalized Method of Moments approaches to overcome problems of mis-specification inherent in the prior literature.

We find a strong link between economic growth, trade, financial openness, and environment. For the entire sample and industrial countries, our results support the environmental Kuznets curve (EKC). Our results also suggest that while economic growth, trade financial, and openness reduce CO₂ emissions for all countries, the countries from the North appear to benefit more from trade and financial openness than the countries from the South in terms of reduction in CO₂ emissions.

The results imply that policy makers should not seek to limit efforts to link trade openness and financial liberalization to environmental quality but to set trade policy-making, economic growth, and financial liberalization in a broader context to take into account environmental concerns as these issues are inextricably linked.

This chapter extends the existing literature by comparing the extent to which trade openness and financial liberalization influence the carbon emissions in the North and South.