The New Earth Economy

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?

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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.

http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf

http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html#bx283545B1

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

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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


MIN

DSPIRIT

BODY HEART

LearningResearchEducationInnovationVision


MIN

DSPIRIT

BODY HEART


EnergyTransportFoodShelterHealthMaterial goods


MIN

DSPIRIT

BODY HEART



Purpose MeaningHealing

Love


MIN

DSPIRIT

BODY HEART




Love

FamilyFriends

Community Neighbourhood


MIN

DSPIRIT

BODY HEART




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


Connected to Community

Community board membersLocal business support network

MIN

D SPIRIT

BODY

HEART

Business

Connected to Nature



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



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



Community financeCommunity representation

Bankor

Credit Union

MIN

D SPIRIT

BODY

HEART

Connected to Nature




Connected to Government

Bankor

Credit Union

Small enough to failReal world banking

Well regulatedTransparency

MIN

D SPIRIT

BODY

HEART

Connected to Nature






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


FinanceCompanies

MIN

D SPIRIT

BODY

HEART

Connected to Nature



Real world lending ratiosTransparency

FinanceCompanies

MIN

D SPIRIT

BODY

HEART

Connected to Nature





Small enough to failTightly regulated

Transparency

FinanceCompanies

MIN

D SPIRIT

BODY

HEART

Connected to Nature





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




Community Engaged

DrugtradeUSA

Neo-liberalism

CanadaNorthKorea




Community Engaged

DrugtradeUSA

Neo-liberalism

CanadaScandinaviaChinaNorth

Korea

Japan




Community Engaged

DrugtradeUSA

Neo-liberalism

CanadaScandinaviaChina

South Korea1950-1990

South Korea1990 -

NorthKorea

JapanProgressive

centrism




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

The New Earth Economy

Economy & Finance

Transcript of The New Earth Economy