Achieving Sustainable Growth Requires Rethinking the Economy

Since 2015, when the United Nations’ Sustainable Development Goals (SDGs) were introduced, trillions of dollars have been invested in sustainability efforts, thousands of initiatives have been launched, and countless global forums have convened to drive change. Yet, despite all this, the scale of progress pales in comparison to the powerful economic and political forces that continue to jeopardize our ecosystem. Two-thirds of newly created global wealth has gone to the top 1% since 2020, according to Oxfam, while 62% of the world’s population survives on less than $10 a day. We’ve built an economy that generates wealth but doesn’t distribute it. Worse, we’ve done it by over-extracting natural resources at 1.7 times the Earth’s ability to regenerate—pushing ecosystems toward collapse.

It’s clear that the system built for the 20th-century context won’t work for the 21st-century world. For growth to truly drive progress, it must be sustainable. What if we could reimagine the system—one that creates wealth without deepening inequality, drives growth without destroying resources, and fuels innovation without leaving people behind? We need to envision a model where economic growth and sustainable development are one. That’s the foundation of “Sustainomy”—a new economic paradigm that not focuses solely on how we collectively generate wealth but also on the ways in which we do so.

Shifting from artificial to “authentic” intelligence

The economy is built on three fundamental forms of capital: prosperity, people, and the planet or the three Ps. Yet, today’s system treats them as separate, sometimes even opposing forces. In pursuit of efficiency, we’ve automated jobs and deployed AI to cut costs—all while sidelining the very workforce that drives the economy.

Avi Goldfarb, a professor of marketing and the Rotman chair in artificial intelligence and healthcare at the University of Toronto—home to some of AI’s earliest breakthroughs—defines AI as a “prediction machine.” It can process vast amounts of data, identify patterns, and make probability-based recommendations. But what AI cannot do is understand context, ethics, ambiguity, or long-term consequences—critical factors in real-world decision-making. If we rely too heavily on AI without reinforcing human intelligence, we risk eroding not just jobs but the foundation of innovation, ethics, and adaptability that keeps economies strong.

The solution, however, lies not in disregarding AI but in fostering a symbiosis of intelligence between that of humans and machines. “Sustainomy” looks to further “artificial” intelligence to “Authentic” Intelligence, a model in which AI is used not to replace human expertise, but to enhance it. A well-functioning AI-human ecosystem requires investment in human capital. And for that to happen, people must first have a fundamental sense of security to thrive and develop their potential. Research published in Frontiers in Environmental Science reveals a strong correlation between infrastructure investment and Human Development Index (HDI) scores—highlighting that when basic needs are met, people are more capable of unlocking their creative and intellectual potential.

Governments must take a leading role by prioritizing broad-based development—strengthening purchasing power, improving job security, and investing in education and skills. Economic resilience cannot rely on short-term financial aid but requires structural shifts for long-term stability. Meanwhile, corporations must invest in skills that complement AI, such as critical thinking, creativity, and emotional intelligence.

As people gain stronger foundations and have more educational opportunities, positive knock-on effects for the planet will emerge organically. Increased mindfulness of natural resource use will lead to reduced environmental harm, paving the way for regenerative solutions. This interconnectedness highlights the importance of nurturing all three capitals—prosperity, people, and the planet.

Building “fit-for-the-future” portfolios

The global economy is in constant flux, with industries rising and falling at different speeds. “Sustainomy” doesn’t just acknowledge this volatility—it builds resilience into the system by ensuring a balanced approach to economic development. Instead of relying on outdated industries or gambling on high-risk ventures, it structures industries into four key areas that create stability while allowing for innovation and adaptation: Infrastructure essentials, volatilities, declining sectors and next-generation solutions.

Certain industries remain fundamental to economic stability. Infrastructure essentials, such as natural gas with carbon capture technologies, continue to play a crucial role in supporting energy security and industrial growth. Meanwhile, volatilities, including solar and wind energy, are growing rapidly but require continuous investment, monitoring, and regulatory support to ensure they scale responsibly and integrate seamlessly into the existing energy grid.

At the same time, declining sectors such as oil and coal must be phased out strategically to minimize economic shock. Abruptly abandoning these industries without viable alternatives would create economic instability, leaving regions and workforces vulnerable. Instead, a structured transition is necessary, redirecting investments into next-generation solutions like clean hydrogen and nuclear energy—technologies that ensure long-term growth and resilience.

Rather than hastily abandoning industries overnight or blindly chasing the latest trends, “Sustainomy” ensures a thoughtful balance. It recognizes that economic evolution must be managed, fostering a system where stability and innovation coexist. By building portfolios that are fit for the future, we can ensure economic resilience that benefits businesses, workers, and the planet alike.

Unlocking the untapped potential of the middle class

Developing countries make up 79% of the world’s nations and contribute 60% of global GDP, yet they remain undervalued in the global financial system. Small and medium-sized enterprises

(SMEs) represent 90% of businesses worldwide and provide 70% of global jobs, yet they struggle with financing, regulatory barriers, and limited access to global markets.

Middle-income individuals account for 45% of the global population and drive two-thirds of consumer spending, making them the true drivers of market demand.

To unlock this potential it is essential to recognize not only the role of the global middle but also the interconnectedness of all economic levels. The top level, consisting of developed countries, large enterprises, multinational corporations, and high-income citizens, has the most readiness in terms of capital and

competency. With their established resources and influence, they can accelerate growth by

collaborating with stakeholders to create new markets that favour the three Ps. Market creation at this level directly translates into value chain expansion, fostering economic opportunities across different sectors.

The middle level, which includes developing countries, SMEs, and middle-income citizens, holds immense potential for scaling economic growth. Recognizing the three Ps market as an opportunity is a crucial first step, but success in this space also requires developing solutions that deliver value beyond business expansion.

At the bottom level, underdeveloped countries, low-income citizens, and those in fragile economic conditions must focus on building up competencies that will allow them to move up the ladder. Enhancing education, access to financial resources, and skills development is critical for increasing their readiness to participate in and benefit from opportunities created at the middle level. By strengthening their ability to engage with broader economic systems, they can become active contributors to sustainable growth rather than remaining on the periphery.

When developing countries, SMEs, and middle-income earners have the resources to grow, they drive broader economic expansion, creating new markets, jobs, and opportunities that benefit everyone. It isn’t about expanding wealth only at the top or simply redistributing it

downward—it’s about strengthening the middle.

A way forward

Transitioning from the existing economy into “Sustainomy” requires an integrated, holistic and collaborative approach. Beyond change at the economic level, changes at the market and organizational levels are also required. For the former, we must evolve traditional markets focused on transactions into ecosystems that develop all stakeholders. For the latter, organizations must invest in their own systematic transformation, covering everything from strategy and operations to communications, to become future-ready brands that are resilient, impactful, responsive and adaptive.

The transition won’t happen overnight, but the steps are clear. By integrating human capital, sustainable industry, and economic inclusivity, we can create an economy that is a system that values people as much as profits, progress as much as prosperity, and innovation as much as

inclusion. Because the real measure of success isn’t just how much wealth we create—it’s how well we distribute it, how responsibly we generate it, and how sustainably we maintain it. This is how we create the kind of economy that works for us and something bigger than ourselves—everyone around us, our community and the place we call home: Earth.