Conditions, Possibilities, and Limitations for Macroeconomic Degrowth Policies in Peripheral Countries: An Introduction

This article serves as an introduction to the theme of economic degrowth in peripheral economies and critically evaluates the feasibility of implementing degrowth policies in these contexts, aiming to address the existing gap in the degrowth economic literature. While previous research has primarily focused on central countries, this study highlights the lack of theoretical foundations that account for the unique characteristics of peripheral countries, including their inequalities, external constraints, low-income levels, and socio-structural conditions. We provide an overview of the degrowth economic concept, emphasizing its key principles. Then we examine the specific challenges faced by peripheral countries, including high poverty rates and underdeveloped productive structures. Furthermore, the article explores the distinct macroeconomic conditions, economic dependencies, and structural limitations of these countries. The last section mainly discusses the conditions and limitations that peripheral economies may encounter when implementing macroeconomic policies for degrowth. It highlights the management of interest rates and potential inflationary consequences, as well as the industrial investments required for a productive transition to a degrowth economy.