This paper investigates the role of governance dimensions in socio-economic transitions in line with degrowth, i.e., an equitable downscaling of the economy. Our focus is on experiences from the 2008 economic crisis in Latvia and Iceland. Although these cases are not in themselves examples of degrowth, we see them as important sources of empirical learning from major socio-economical transitions; furthermore, we see crises as possible starting points for future degrowth transitions. This paper applies a governance framework to explore the vast differences in management strategies and crisis outcomes in Latvia and Iceland. In Iceland, public resistance led to a shift in policy measures such that economic inequality and the negative social consequences of the crisis decreased. In Latvia, public resistance existed but had no strong influence. The outcome in Latvia included none of the elements of equitable downscaling found in the case of Iceland. These two cases show how differences in formal institutional arrangements, political culture and societal trust affect different governance dimensions during a time of crisis. The analysis illustrates the importance of institutional and governance dimensions in major socio-economical transitions, and demonstrates how they influence the kind of transition that can be realized.
1.IVL Swedish Environm Res Inst, POB 210 60, SE-10031 Stockholm, Sweden 2.VTI Swedish Natl Rd & Transport Res Inst, Box 55685, SE-10215 Stockholm, Sweden 3.KTH Urban & Reg Studies, Sch Architecture & Built Environm, S-10044 Stockholm, Sweden 4.Univ Libre Bruxelles, Ctr Studies Sustainable Dev DGES, CP 130-03,Ave FD Roosevelt 50, B-1050 Brussels, Belgium 5.Projektengagemang AB, POB 47146, S-10074 Stockholm, Sweden
Recommended Citation:
Nyblom, Asa,Isaksson, Karolina,Sanctuary, Mark,et al. Governance and Degrowth. Lessons from the 2008 Financial Crisis in Latvia and Iceland[J]. SUSTAINABILITY,2019-01-01,11(6)