the new earth economy
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The New Earth Economy Integrating Earth and Humanity
Guy Dauncey, January 2012www.earthfuture.com
What went wrong?
How did this…
Gross
Domestic
Product
turn into …
Gross
Depletion
of the Planet?
Smithore Dreamstime.com
A "super-entity" of 147 very tightly knit companies control 40% of the total wealth in the global economic network.
New Scientist: An analysis of the relationships between 43,000 transnational corporations has identified
a relatively small group of companies, mainly banks, with disproportionate power over the global economy.
The top 20 of the 147 superconnected companies1. Barclays plc2. Capital Group Companies Inc3. FMR Corporation4. AXA5. State Street Corporation6. JP Morgan Chase & Co 7. Legal & General Group plc 8. Vanguard Group Inc9. UBS AG10. Merrill Lynch & Co Inc 11. Wellington Management Co LLP12. Deutsche Bank AG13. Franklin Resources Inc14. Credit Suisse Group15. Walton Enterprises LLC16. Bank of New York Mellon Corp17. Natixis18. Goldman Sachs Group Inc19. T Rowe Price Group Inc20. Legg Mason Inc New Scientist October 19, 2011
Where does this lead us?• Earth - Tragedy of the Commons• Organized assault on regulations• Huge fat-cat bonuses• Banks “too big to fail”• No concept of real wealth• Financial markets out of control• Tax havens - pirates’ paradise• Unfair “free” trade• Debt out of control• Growing unemployment• Speculation on food, homes• Laughing all the way to the bank• Banks get $ trillion bail-out• Capital becomes its own creation• Money corrupts politics• Repeat until bankrupt …
We need…
A Green Economy
Harmony with Nature
True Sustainability
Moutwtrng Dreamstime.com
100% Sustainable Communities
In the beginning, there was
The Earth
with its own complex
ecology economy
Element 1: The Earth
And then there were humans…..
Building our human economy …
Earth’s economy
Element 2: The Humans
Human economy
Earth’s economy
Element 2: More Humans
Human economy
We took from Earth’s ecosystemwith almost no thought for the whole …
Without any interconnecting limits, the human economy consumes Earth’s economy
Element
The human economy grows …
Human Economy
Earth’s Economy
In the absence of constraint, it behaves like a cancer cell…
Element
Looking more closely at the Human Economy…
Human Economy
It can be designed to be very cooperative……
JM Keynes … Joseph Stiglitz … Joseph Schumpeter … Nicholas Kaldor … Ha-Joon Chang … Arthur Pigou … Amartya Sen …
Or very competitive……
Milton Friedman … Herbert Simon … Friedrich Hayek …libertarian, free market economists
But what is its goal, its purpose?
Happiness?
Progress?Money?
Growth?
Wealth?
Market
Share?
Civilization??
What is its goal, its purpose?
“He who gets the most toys wins?”
And Earth loses?
In pure free market economics, these are the only goals …
Money
Growth
Wealth
Market
Share
Earth’s economy
So let’s go back, and redesign the system
Human economy
What are humanity’s true goals?
Human progress
Harmony with Nature
Meaning, happiness
Freedom from hunger and poverty
Freedom, fulfilment
Peace
Earth’s economy
Human
economy
What are our human goals?
MIND SPIRIT
BODY HEART
What are the human economy’s goals?Take 2:
MIN
DSPIRIT
BODY HEART
What are the human economy’s goals?Take 2:
MIN
DSPIRIT
BODY HEART
LearningResearchEducationInnovationVision
What are the human economy’s goals?Take 2:
MIN
DSPIRIT
BODY HEART
LearningResearchEducationInnovationVision
EnergyTransportFoodShelterHealthMaterial goods
What are the human economy’s goals?Take 2:
MIN
DSPIRIT
BODY HEART
LearningResearchEducationInnovationVision
EnergyTransportFoodShelterHealthMaterial goods
Purpose MeaningHealing
Love
What are the human economy’s goals?Take 2:
MIN
DSPIRIT
BODY HEART
LearningResearchEducationInnovationVision
EnergyTransportFoodShelterHealthMaterial goods
Purpose MeaningHealing
Love
FamilyFriends
Community Neighbourhood
What are the human economy’s goals?Take 2:
MIN
DSPIRIT
BODY HEART
LearningResearchEducationInnovationVision
EnergyTransportFoodShelterHealthMaterial goods
Purpose MeaningHealing
Love
FamilyFriends
Community Neighbourhood
Total = “Wealth”
MIN
D SPIRIT
BODY
HEART
Businesses
MIN
D SPIRIT
BODY
HEART
Business
Connected to Nature
Environmental regulationsGreen business certificationAnnual sustainability reports
MIN
D SPIRIT
BODY
HEART
Business
Connected to Nature
Environmental regulationsGreen business certificationAnnual sustainability reports
Connected to Community
Community board membersLocal business support network
MIN
D SPIRIT
BODY
HEART
Business
Connected to Nature
Environmental regulationsGreen business certificationAnnual sustainability reports
Connected to Community
Community board membersLocal business support network
Connected to Workers
Employee share-ownership Co-op ownershipRight to Unionize
MIN
D SPIRIT
BODY
HEART
Business
Connected to Nature
Environmental regulationsGreen business certificationAnnual sustainability reports
Connected to Community
Community board membersLocal support networks
Connected to Workers
Employee share-ownership Co-op ownershipRight to Unionize
Connected to Investors
Corporate social responsibilitySocially responsible investmentCommunity finance
MIN
D SPIRIT
BODY
HEART
Local EconomySupport Networks
Emilia Romagna, Italy
Emilia Romagna, Italy• Population 4.4 million• $$$, top ten European regions• 32% self-employed• 35% industry, 7% agriculture• 76% people work in small business with 4-5 workers• Italy’s 4th largest exporter• 400,000 enterprises• 15,000 cooperatives• Strong tradition of reciprocity, regional economy mutual support system • High density of banks• Regional credit system with close ties to local enterprises• Lowest unemployment• Highest rate of citizen satisfaction in Italy
MIN
D SPIRIT
BODY
HEART
Banks
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Bankor
Credit Union
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Connected to Community
Community financeCommunity representation
Bankor
Credit Union
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Connected to Community
Community financeCommunity representation
Connected to Government
Bankor
Credit Union
Small enough to failReal world banking
Well regulatedTransparency
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Connected to Community
Community financeCommunity representation
Connected to Government
Connected to Investors
Socially responsible investmentPurpose driven investmentTransparency
Bankor
Credit Union
Small enough to failReal world banking
Well regulatedTransparency
State banks
MIN
D SPIRIT
BODY
HEART
FinanceCompanies
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
FinanceCompanies
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Connected to Investors
Real world lending ratiosTransparency
FinanceCompanies
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Connected to Government
Connected to Investors
Real world lending ratiosTransparency
Small enough to failTightly regulated
Transparency
FinanceCompanies
MIN
D SPIRIT
BODY
HEART
Connected to Nature
Green banking certificationAnnual sustainability reports
Connected to Government
Connected to Investors
Real world lending ratiosTransparency
Small enough to failTightly regulated
Transparency
FinanceCompanies
Connected to Global level
Global finance transparency network
MIN
D SPIRIT
BODY
HEART
Nucleus
Governing
Regulating
Informing Supporting
Syntropic Self-Organization• Financial interflows• Regulatory forecasts• Progress indicators
Responsible Governance• Monetary policy, interest rates, inflation• Taxation• Benefits, welfare
Maximizing Ecological Wealth• Key indicators• Ecological capital value• Ecological governance
Building a Desirable Future• Future-Oriented Investments• Directed subsidies and tax-breaks• Training and retraining
The Flexibility of Capitalism
Totally regulated100% state controlled
Not regulated100% free market
Community Engaged
Drugtrade
NorthKorea
The Flexibility of Capitalism
Totally regulated100% state controlled
Not regulated100% free market
Community Engaged
DrugtradeUSA
Neo-liberalism
CanadaNorthKorea
The Flexibility of Capitalism
Totally regulated100% state controlled
Not regulated100% free market
Community Engaged
DrugtradeUSA
Neo-liberalism
CanadaScandinaviaChinaNorth
Korea
Japan
The Flexibility of Capitalism
Totally regulated100% state controlled
Not regulated100% free market
Community Engaged
DrugtradeUSA
Neo-liberalism
CanadaScandinaviaChina
South Korea1950-1990
South Korea1990 -
NorthKorea
JapanProgressive
centrism
The Flexibility of Capitalism
Totally regulated100% state controlled
Not regulated100% free market
Community Engaged
DrugtradeUSA
Neo-liberalism
CanadaScandinaviaChina
South Korea1950-1990
South Korea1990 -
NorthKorea
Mondragon
EmiliaRomagna
JapanProgressive
centrism
So What are the Remedies?OMEGA E - Equitable Economy
1. Redefine Wealth, so that it is no longer just money. New indicators.
2. Shift to Real Sustainable Banking Every investment requires sustainability. North Dakota State bank. Private + credit unions. Financial Transactions Tax.
3. Separate the Regulators from the RegulatedRe-assert financial control regulations. Jail-time for negligence and recklessness.Financial Activities and Investment Reform Act (FAIR)
4. Reform the Tax System. Re-impose wealth and inheritance taxes, close the loopholes. Close the World’s Tax Havens, recapture all flight capital. Global treaty. National Tax Evasion Complicity Laws - criminal offense to knowingly serve as a fund manager, accountant, trustee, lawyer or corporate nominee for a known tax evader.
5. New Global Financial and Trade Treaties. Fair Trade Organization. New World Bank and IMF regimes. Progressive centrism allows developing nations to use trade and capital movement barriers.
So What are the Remedies?
OMEGA M - Meaningful Work
1. Think Like a Village. Build an entrepreneurial local culture and economy. Emilia Romagna
2. Share the Work, Share the Wealth. Employee share
ownership, coops
3. Put Your Money Where Your Heart is. Local banking for purpose and social meaning.
4. Welfare Reform.
5. Go Green. Green business certification program , trading requirements
Equitable Earth Economy Principles
1. Nature is the planet’s fundamental economy
2. A healthy human Earth economy is the self-organized expression of a culture’s desired future on an ecologically sustainable planet
3. In a healthy human Earth economy, competition, cooperation are in a permanent dance, watched and overseen by Nature’s limits
4. Human nature is fallible, so regulation and fair taxes are essential.
5. Nature bats last.
Guy Dauncey
www.earthfuture.com
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