Sustainable Development Capitalism: Changing Paradigms and Practices for a More Viable, Equitable, Bearable, and Just Economic Future for All

Albert Arnold ‘Al’ Gore, Jr., recently introduced the notion of’ sustainable capitalism’ (Gore & Blood, 2011). In response to the latest economic crisis, persisting inequalities and growing climate threats, Al Gore has been arguing for a sustainable paradigm in a global capital economy. Beyond ethical normatives and responsible green management, the sustainable capitalism paradigm is presented as a new and necessary solution that will maximize long-term economic value creation (Gore & Blood, 2011). Although associated with a plan for market reforms to address real needs while considering all costs and stakeholders, the sustainable capitalism paradigm alone does not sufficiently address legal and institutional hindrances in developing countries. The Peruvian economist Hernando de Soto has been decrying for over a decade the inadequate legal systems that impede poor people in developing countries from entering the formal economy. He asserts that Western capitalism is explained by the conversion of ‘dead capitals’ into ‘live capitals,’ but that poor people in developing countries cannot ‘capitalize’ on their assets and resources due to a ‘legal apartheid’ system created by their governments. Although other economists have criticized his inclusive concepts of ‘capitals,’ his economic message has relevance in sustainable development, particularly in the current carbon trade and carbon rights mechanisms.