The LiFE Economy: Towards a New Development Paradigm

Achieving a holistic approach to development requires a transition towards a LiFE Economy—an economic system in which production, consumption, finance, employment, and other economic activities not only minimise harm but advance social and environmental objectives, delivering inclusive growth, inter-generational equity, and a thriving environment that nurtures biodiversity. Implemented effectively, the LiFE Economy should encourage and enable a shift in values, mindsets, and behaviours on the part of individuals, businesses, investors, and institutions that lead to progress on the SDGs, without contributing to backsliding. In this sense, ‘LiFE Economy’ can be called as ‘Life Economy’ in a hoilistic way as the constituents of LiFE economy go beyond ‘lifestyle changes’. However, for the LiFE Economy to thrive, the global community must develop new, robust enabling ecosystems to promote and accelerate its growth. At the national and sub-national levels, this encompasses laws, institutions, regulatory regimes, property rights, incentive structures, and norms that govern the generation and distribution of resources within and between regions. At the organisational level, it encompasses the legal and institutional frameworks that influence strategies, behaviours, and the ability to generate revenues. At the individual level, it shapes choices and opportunities. The challenge and opportunity before the G20 is how to turn the Varanasi Principles into action by accomplishing this paradigm shift.