Rethinking Our Economic Paradigm: The Rise of 'Sustainomy'

Since the introduction of the United Nationsâ Sustainable Development Goals (SDGs) in 2015, the global landscape has witnessed a significant influx of resources aimed at fostering sustainability. Trillions of dollars have been invested in various sustainability initiatives, with thousands of programs launched across the globe and numerous forums convening to spur meaningful change.
Yet, despite these commendable efforts, the rate of progress remains disappointingly slow when juxtaposed against the formidable economic and political forces that continue to threaten our ecosystem. A recent report from Oxfam reveals a stark reality: since 2020, a staggering two-thirds of newly created global wealth has been allocated to the top 1% of the population, leaving 62% of the worldâs people struggling to survive on less than $10 a day. This disparity underscores a troubling truth: our economic system generates significant wealth, yet fails to distribute it equitably. Furthermore, we have been extracting natural resources at a rate 1.7 times faster than the Earth can regenerate, pushing ecosystems perilously close to collapse.
As we move deeper into the 21st century, itâs clear that the economic systems developed in the 20th century are woefully inadequate for addressing contemporary challenges. For growth to genuinely drive progress, it must be sustainable, inclusive, and considerate of the ecosystem. This brings us to the concept of âSustainomyââan innovative economic paradigm aimed at reimagining wealth generation in a way that does not exacerbate inequality, destroys resources, or neglects human welfare.
Sustainomy emphasizes the need to align economic growth with sustainable development. Central to this idea is the recognition that the economy relies on three essential forms of capital: prosperity, people, and the planetâoften referred to as the three Ps. However, the current economic system tends to treat these elements as isolated entities, sometimes even in conflict with one another. In our relentless pursuit of efficiency, we have increasingly automated jobs and utilized artificial intelligence (AI) to reduce costs, inadvertently sidelining the human workforce that is essential to driving economic growth.
Avi Goldfarb, a prominent professor of marketing and the Rotman Chair in Artificial Intelligence and Healthcare at the University of Torontoâhome to some of AIâs pioneering advancementsâdescribes AI as a âprediction machine.â AI possesses the capability to analyze vast datasets, recognize patterns, and provide probability-based recommendations. However, it lacks the ability to comprehend context, ethics, ambiguity, or long-term consequencesâall of which are critical components of informed decision-making in the real world. Over-reliance on AI, without bolstering human intelligence, poses a risk not only to employment but also to the very foundations of innovation, ethics, and adaptability that sustain robust economies.
The path forward does not involve discarding AI but rather fostering a symbiotic relationship between humans and machines. Within the framework of Sustainomy, the goal is to transition from âartificialâ intelligence to âauthenticâ intelligence, where AI serves to augment human expertise rather than replace it. A thriving AI-human ecosystem necessitates significant investments in human capital. To realize this vision, individuals must first feel a fundamental sense of security, which empowers them to unlock their full potential.
Research published in the journal Frontiers in Environmental Science highlights a compelling connection between infrastructure investment and Human Development Index (HDI) scores. The findings illustrate that when basic human needs are met, individuals are considerably more capable of tapping into their creative and intellectual abilities, thus contributing positively to society.
Governments play a crucial role in this transformation by prioritizing inclusive development strategies that enhance purchasing power, bolster job security, and invest in education and skills training. Economic resilience cannot rely solely on short-term financial interventions; it requires fundamental structural shifts designed to ensure long-term stability. Meanwhile, corporations must adapt by investing in skills that complement AI, such as critical thinking, creativity, and emotional intelligence. As people gain stronger educational foundations and enhanced opportunities, the positive ripple effects for the planet will naturally follow. A heightened awareness of natural resource utilization will lead to reduced environmental damage, making way for regenerative solutions.
This interconnectedness underscores the importance of nurturing all three forms of capital: prosperity, people, and the planet. The global economy is perpetually evolving, with various industries experiencing different rates of growth and decline. Sustainomy not only acknowledges this inherent volatility but actively incorporates resilience into the economic system by adopting a balanced approach to development.
Rather than relying on outdated industries or engaging in high-risk ventures, Sustainomy organizes industries into four key categories that foster stability while promoting innovation and adaptability: infrastructure essentials, volatile sectors, declining industries, and next-generation solutions.
Some industries remain indispensable to economic stability. For instance, infrastructure essentials, such as natural gas equipped with carbon capture technologies, play a pivotal role in ensuring energy security and industrial advancement. Concurrently, volatile sectors like solar and wind energy are expanding rapidly but necessitate continuous investment, monitoring, and regulatory backing to scale responsibly and integrate smoothly into existing energy grids.
Conversely, declining sectorsâincluding oil and coalâmust be phased out with careful planning to mitigate economic shocks. Abruptly abandoning these industries without viable alternatives would lead to economic instability, disproportionately affecting regions and workforces dependent on them. A structured transition is therefore imperative, redirecting investments toward next-generation solutions such as clean hydrogen and nuclear energyâtechnologies that promise sustainable growth and resilience.
Rather than hastily discarding entire industries or blindly chasing trends, Sustainomy advocates for a principled approach that balances stability with innovation. By developing portfolios designed for future adaptation, we can ensure economic resilience that benefits businesses, workers, and the environment alike.
Unlocking the untapped potential of the global middle class is another critical aspect of this economic transformation. Developing countries constitute 79% of the worldâs nations and contribute 60% of global GDP, yet they remain undervalued within the international financial system. Small and medium-sized enterprises (SMEs) account for 90% of businesses globally and provide 70% of jobs, yet they face substantial hurdles in accessing financing, navigating regulatory frameworks, and connecting to global markets. Additionally, middle-income individuals represent 45% of the global population and are responsible for two-thirds of consumer spending, positioning them as key drivers of market demand.
To truly harness this potential, it is essential to acknowledge not only the significance of the global middle class but also the interdependencies among all economic strata. The upper tier, comprising developed nations, large enterprises, multinational corporations, and affluent individuals, is best equipped with capital and capabilities. These entities have the potential to catalyze growth by engaging with stakeholders to establish new markets that prioritize the three Ps.
Market creation at this upper level translates directly into expanded value chains, generating economic opportunities across diverse sectors. The middle tierâwhich encompasses developing nations, SMEs, and middle-income citizensâholds immense promise for driving economic growth. Recognizing the three Ps as a market opportunity is the initial step, but success in this realm requires developing solutions that provide value beyond mere business expansion.
At the foundational level, underdeveloped nations, low-income populations, and those in precarious economic conditions must concentrate on enhancing their competencies to ascend the economic ladder. Improving education, expanding access to financial resources, and fostering skills development are vital for increasing their readiness to engage with broader economic systems and benefit from opportunities generated within the middle tier.
When developing countries, SMEs, and middle-income individuals are equipped with the resources to grow, they can catalyze broader economic expansion, creating new markets, job opportunities, and avenues for growth that benefit all. This paradigm shift is not merely about accumulating wealth at the top or redistributing it downward; itâs about fortifying the middle class.
The road ahead involves transitioning from our current economic framework into the realm of Sustainomy, a process that demands a holistic and collaborative approach. Beyond economic transformations, changes at the market and organizational levels are essential. For markets, we must evolve traditional transactional structures into ecosystems that nurture all stakeholders. For organizations, there must be a commitment to systematic transformation encompassing strategy, operations, and communications, ultimately becoming resilient, impactful, and adaptive brands.
While this transition will not occur overnight, the steps toward a sustainable economy are clear. By integrating human capital, fostering sustainable industries, and promoting economic inclusivity, we can construct an economic system that values individuals just as much as profits, prioritizes progress alongside prosperity, and emphasizes innovation in tandem with inclusion. Ultimately, the true measure of economic success lies not only in the wealth we generate but in how equitably we distribute it, how responsibly we produce it, and how sustainably we maintain it. In striving for this vision, we can cultivate an economy that serves both our individual needs and the greater good of the community and the planet we inhabit: Earth.