Olivier De Schutter, the UN special rapporteur on extreme poverty and human rights, has proposed a radical shift in the global economic model, arguing that current systems are failing to address rising inequality, ecological collapse, and the resurgence of far-right politics. De Schutter asserts that the ‘frivolous and destructive demands’ of the ultra-rich are undermining efforts to combat poverty and environmental degradation.

Redistributive Economy as a Solution

De Schutter emphasized that the global economy must be restructured to serve the basic needs of the impoverished rather than the consumption patterns of the wealthiest individuals and corporations. He criticized the focus on ‘socially and ecologically destructive growth’ that benefits only a select few, stating that resources should be used to build social housing and public transportation rather than luxury mansions and powerful cars.

According to De Schutter, an economy that prioritizes the construction of large mansions over social housing is ‘grossly inefficient’ and ‘will inevitably fail to satisfy the basic needs of people living on low incomes.’ He described such an economic model as unsustainable and inhumane.

Upcoming Roadmap for Poverty Eradication

Next month, De Schutter will publish his ‘roadmap for eradicating poverty beyond growth,’ a plan developed in collaboration with a coalition of UN agencies, academics, civil society groups, and trade unions. The roadmap aims to provide governments and multilateral institutions with a broader range of policy options to combat poverty and inequality.

Among the proposals under consideration are a universal basic income, job guarantees, debt cancellation, and an extreme wealth tax. These measures are intended to shift the focus from growth-driven economic models to those that prioritize social welfare and ecological sustainability.

De Schutter’s roadmap will coincide with two other initiatives: one led by UN Secretary-General António Guterres, which seeks to replace GDP as the primary measure of economic success, and a report by a G20 panel of experts on global inequality, led by Nobel laureate Joseph Stiglitz.

Breaking the Taboo on Growth Critique

De Schutter noted that while many within the UN have long recognized the need to move beyond growth, political constraints have limited their ability to openly challenge the status quo. He believes that the convergence of these initiatives next month could enable high-profile figures to ‘come out of the closet’ on growth-related issues.

‘This moment offers us a realistic opportunity to shape the post-2030 agenda with a viable alternative that will reconcile planetary boundaries with social justice and the fight against poverty and inequalities,’ De Schutter said. ‘That’s the challenge and the opportunity.’

As part of this effort, De Schutter is advocating for the establishment of a permanent UN body to oversee the fight against inequality. He proposed that this body function similarly to the Intergovernmental Panel on Climate Change (IPCC), which was established in 1988 and has guided international climate policy efforts.

‘Like the IPCC, we want the new body to not only collect the evidence of what is happening, but also to collect the evidence about the policy tools that can be used to achieve wellbeing without growth and reduce growth dependencies,’ De Schutter said.

Since his appointment as a UN special rapporteur in 2020, De Schutter has visited numerous low-income and developing countries, where he has observed that these nations are often trapped in an economic model that prioritizes destructive growth. He explained that many of these countries are forced to pursue growth to service their foreign debt, which compels them to export goods based on the demands of global supply chains rather than their own populations’ needs.

‘The result is too often ecological destruction, low wages, and minimal investment or prosperity,’ De Schutter said. ‘We need growth in these countries that is driven by domestic demand rather than by global markets, and we need to encourage regional integration and south-south trade rather than north-south global supply chains.’

For developed countries, De Schutter said the roadmap will explore how to finance public services and social protections by taxing wealth and destructive economic activities rather than relying on indiscriminate growth. He argued that public revenue should be raised by taxing financial assets, immovable property, financial transactions, and industries that cause environmental harm, including the fossil fuel sector.

‘We should avoid the confusion between recession or stagnation of the kind we saw after 2008 or 1929 and the carefully planned and democratically controlled transition to something else,’ De Schutter said.

He added that the proposals are supported by leading economists, academics, UN bodies, trade unions, and NGOs. ‘There’s a realistic opportunity that we’ll be able to present something that for the post-2030 agenda will be a viable alternative, reconciling planetary boundaries with social justice and the fight against poverty and inequalities. That’s the challenge. If we don’t manage, well, the far-right populists will have their way.’