Consumption has been the fuel that has driven the engine of global capitalism. The recent financial crisis has seen the West's leading economists and policy makers urging Asia to make a conscious effort to consume more and thereby help save the global economy. This is a view shaped by conventional wisdom which conveniently refuses to acknowledge both the unpleasant effects of consumption and the limits to growth.
Consumptionomics argues that this blinkered view needs to be replaced by a more rational approach to the challenges of the 21st century. If Asians aspire to consumption levels taken for granted in the West the results will be environmentally catastrophic across the globe. Needless to say it will also have significant geopolitical impacts as nations scramble for diminishing resources.
Asian governments and leaders find themselves at a crossroads. They may either continue on the current, unsustainable path of Western-style consumption-led capitalism, disregarding the evidence, or they may realize that they hold the unenviable responsibility of leading the world to a more sustainable path. The solutions will entail making sensitive political choices and adopting certain forms of government to effect such a fundamental change of direction. This will all fly in the face of current ideological beliefs rooted in free market capitalism. But if Asia is willing to take on this responsibility it will help to save the planet whilst reshaping capitalism.
