Oct 9 2012

THE PRICE OF INEQUALITY by Joseph Stiglitz

Reviewed by William Moomaw, Tufts University

A forceful argument against America’s vicious circle of growing inequality by the Nobel Prize–winning economist.

The Price of Inequality: How Today’s Divided Society Endangers Our Future, by Joseph Stiglitz, W.W. Norton Company , 448pp

Joseph Stiglitz’s The Price of Inequality offers a remarkably insightful analysis of the economy that has major implications for sustainable development. One of the fundamental premises of sustainable development is equity, but Stiglitz demonstrates that the growing inequality of incomes in the United States is extracting a high cost not just from the economy, but also  from the environment and  society.

Using solid data, he lays bare the means by which the dramatic shift in income disparity has occurred. Wealth increases at the top have resulted from rent-seeking in the financial and other industries, changes in tax policy that favor the already wealthy and reductions in the negotiating capacity of labor. Stiglitz documents the financial instruments that lead to the transfer of wealth and ultimately caused the recent collapse of the global economy.

Of comparable importance are recently enacted governmental policies that externalize more of the environmental costs of doing business onto the public, and the destructive incentives that have flowed to resource-based industries. Subsidies include direct payments, but also enhanced profit from the very low prices paid to the government by extractive industries for leases on federal lands. This shift in governmental policies has been fuelled by the ability of top income earners to pay the “re-election costs” of politicians who will favor their economic interests. As Stiglitz notes, these anti-society and anti-environmental policies actually reduce the viability of the economy rather than enhance it. Not a strategy for a sustainable future.


Oct 3 2012

BEYOND CONSENSUS by Richard Margerum

Reviewed by Lawrence Susskind, MIT

In Beyond Consensus, Richard Margerum examines the full range of collaborative enterprises in natural resource management, urban planning and environmental policy.

Beyond Consensus: Improving Collaborative Planning and Management, by Richard Margerum, MIT Press, 368pp

It might come as a surprise that consensus is not the final step in the work of a collaborative trying to generate a plan for the management of a watershed. Consensus means agreement, so once there’s agreement what else is there to do? It turns out − in the world of natural resource management − that reaching agreement on how to proceed must be followed by on-going efforts to implement whatever has been proposed. According to Richard Margerum, beyond consensus one should hope to find collaboratives aimed at implementing (or making adjustments in) plans, policies or project designs.

Margerum has reviewed almost sixty case studies of collaborative resource management, about half in the United States and half in Australia. His focus is mostly on watershed management efforts that took place between 1993 and 2010. He begins by examining the dynamics of collaboration. From there, he moves to consensus-building strategies, especially the various forms of deliberation that stakeholders can use to reach agreement, not merely share their views.

When deliberations go well, Margerum believes they lead to high quality plans with clear goals, solid factual justification and sound intervention strategies. He emphasizes the importance of social, inter-organizational and political networks in sustaining collaboratives and ensuring plan implementation. He concludes by attempting to translate his findings into prescriptions for practice. The prescriptive part of the book is less successful than his very instructive efforts to develop a typology of collaborations.

This review was originally published in full in Review of Policy Research 29, no. 5 (2012): 663–5.