Managing without growth

This paper explores various growth scenarios for Canada over the medium range to 2020 using LOWGROW, a dynamic simulation model. After describing LOWGROW, a scenario is presented that shows conditions under which the rate of unemployment in Canada could be reduced to historically low levels, poverty eliminated and greenhouse gas emissions reduced to comply with Canada's commitment under the Kyoto Protocol, without relying on economic growth. This is not to say that zero growth should itself become a policy objective. Rather that the dependence on and defence of economic growth should not be an obstacle to fulfilling more specific welfare enhancing objectives of full employment, eliminating poverty, and protecting the environment. The paper concludes with some policy implications for managing without growth followed by an annex which provides a technical description of LOWGROW.