Planetary rent: a radical economic innovation

25/07/2017

Global problems are a curse of the world today. They include international terrorism, climate change, impoverishment of large groups of population and the depletion of natural resources. To date, the global community has made little progress in addressing these global challenges. This is despite the continued work of global institutions, the adoption of the doctrine of sustainable development, and the signing of the Kyoto Protocol. The problem is that there is no global anti–crisis management policy that would involve a plan of addressing global issues, a consolidated budget, and a single management center.

The current crisis calls for several global solutions including the introduction of common principles of resource management based on energy saving and resource substitution; creating an institution of planetary budget; and using planetary rent as a major funding source for global economic development.

Planetary rent is taken to mean rent extended to the whole planet. It can also be considered the next historical phase of developing the institution of rent. It is the highest stage of its evolution whose contradictions, connected with the disposition of the excess income, will be removed. Planetary rent has much in common with traditional rent and quasi rent (Agayeva, 2006).

The economic institution of rent is based on unequal conditions and opportunities. This can be said about land or any resource rent including “talent rent" as a type of social rent. If something that plays the role of a factor of production becomes a source of rent, it leads to personal enrichment at individual, corporate, or national levels. Inequality has become the basis for economic relations of any class society in the most general, fundamental sense.    

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