This exclusive article by opposition leader Ed Miliband is published today in Green Alliance’s journal Inside Track.
The world economy is struggling to recover from a crisis caused by inadequately regulated financial activity. Governments are dealing with deficits that are too high and growth that is too low. And, long before the credit crunch, people in the middle were struggling with squeezed living standards. For too long, economies have encouraged wealth creation focused on short term returns which failed to reward productive behaviour and skewed distribution towards the top. It is a problem that requires a fundamental re-examination.
But there is a further, deeper crisis underlying this. This is the crisis of the global environment which is now rebounding on the real economy. Resource scarcity is affecting prices, for example failed crops in one part of the world lead to rocketing food prices in another part. Energy prices have continued to rise despite the global slowdown. These are resource scarcities right at the heart of the global economy. Read more