Fred hopwood Transition Uttoxeter WHAT does the future have in store for England, and particularly the rural economy? Drastic cuts without major investment may well lead to a double-dip recession according to Nobel prizewinning economist Joseph Stiglitz who predicted the financial crisis, and now believes the budget will hit the poorest badly, whilst failing to meet the deficit.
According to the Institute for Fiscal Studies the Chancellor’s Budget will cost the poor 2.5 per cent of their income, while the rich will lose just 1 per cent. Stiglitz says: “What the world needs now - developing and developed - is not retrenchment but greater economic stimulus.” It seems to me that the coalition so far has failed to hit the right targets, i.e.
the banks and the well-off. The imposed levy on the banks is truly paltry.
Whilst cutting out waste in the public sector is vital to the UK’s economy, the loss of jobs is extremely worrying.
Not only an economic stimulus to the private sector is required, but also a vast implementation of truly sustainable development, in the light of the possibility of a further financial crisis and the probability of a food and energy crisis, within the next five years.
These challenges and risks for global business are set out in a recent document, from Lloyds Insurance, which should be taken very seriously indeed.
If Europe and the US fail to invest in research, development and new clean technology, they will soon be left behind by the likes of South Korea, China and India, who are forging ahead. Job losses in the public sector could be more than offset by fiscal encouragement of sustainable industries, especially in the renewable energy sector.
Stewart Davies from the Sustainable Development Commission says that in this economic climate, supporting a neighbourhood partnership approach is the best way for Government to ensure that our villages, towns and cities are in good shape to meet the challenges of the 21st century.
Now is the time for innovation and the empowerment of local communities to meet these challenges.
