Category Archives: Natural Economy

how economies can work comfortably within ecologies

We have more than one problem

Thinking about the global crisis, the people who feel it think so differently than those who don’t, and the solutions of the latter seem to be at the very root of the problem (problem A).

We need solutions that would work in practice. That would take a real understanding of the problem and its origins. Easy-sounding solutions only mention the endpoint and skip how the process of getting there starts and develops. Decentralizing the economy, for example, sounds good but would also destroy the economy, as every product today physically comes from everywhere! Social values can make excellent design principles, but they are not system designs. We have many good designers and managers, too, but they are not doing the job needed today. So “problem A” seems to be that our system designers and managers are following century-old rules that today have become globally destructive. That implies that changing their jobs is more important than changing the people. We still need the same talents but doing the right things.

That presents a huge but possibly practical challenge. The people we’d need to communicate with are largely very communicative and, from their view, caring. It’s our world culture of wonderfully educated, risk-averse, and successful professionals from good families – who steer the world’s institutions and economy while also being blind to the side effects of their steering. They even call the existential threats they cause “externalities” and don’t know what to do about them. In truth, those so-called externalities are internal system breakdowns caused by our long history of applying Many Too Many Solutions while Blind To The Side Effects.

This cream of the world crop of educated professionals is NOT intentionally blind to their impacts, now destroying the earth at the economy’s maximum rate of acceleration. They also do have access to the data on the global system breakdowns. However, their thinking is in terms of the CONCEPTS of their work (simple models of profit), not noticing how their choices became disconnected from their CONTEXTS (the rich meanings of all the living worlds they touch). So, the problem is they don’t-feel-a-thing.

Feelings and their meanings come from contextual awareness, not abstract concepts. So blind to the effects of their work, they blindly follow the outdated rules to multiply everything that was once highly creative but now is quickly destroying the earth. Yet, if you get to know them personally, it is quite ironic how they do largely seem to be caring, responsible people. They’re from good families and try their level best to secure their homes and care for their communities. Those ironies present are where the openings for real communication are!

So, how do we get them to look at different rules to follow, like for the rest of us, please “pay attention to the planet.” There are two necessary parts to freeing professionals from their “true beliefs” and opening their eyes. (((#1 One is experiential.))) Someone needs to personally lead them out to explore the world and have direct experiences of the natural beauty of life spoiled by rising global demands and dysfunction that urgently need relief from growing pressures and good care. (((#2 Another is mining deeper cultural knowledge.))) Caring for your home is as deep a tradition as any in human cultures, but our elite professionals have totally lost track of it in wildly shaping (and reshaping) our world.
The first link shows some history of what happened to cause the blindness of experts to develop. It implies the task is to help the world’s leadership recover their ability to care for the earth as our genuine home, and NOT a concept (a). It helps to see the breadth of our crises (b). a) https://synapse9.com/signals/bronze-age-roles-of-hestia-and-hermes/
b) https://synapse9.com/_r3ref/100CrisesTable.pdf

They’d never do most of the wrecking crew work they do if they followed the customary practices of “homemaking” or if you prefer “home science.” They are fairly simple and reliable practices for 1) having wide awareness and 2) respecting common interests that we all follow in our homes. We all follow them when doing tasks, too, at home, at the office, or in the community. They are the same as the universal system-making model nature follows for Making Things To Fit The Context. When making changes, it starts with building on some idea, “confluence,” or inspiration of nature. When activated, it becomes the ‘germ’ of a new working system that grows as fast as it can at first. Then it sometimes passes the test of when and how to stop.

The universal test is simple, taking resources from growth for Responding To The Growing Needs Of The New System as those needs start competing with the values of more expansion. An endless expansion gives a system more to take care of (and more complexity that prevents it) than is manageable; a fatal problem. When making dinner, for example, the natural turning point is when you have collected and started preparing what is needed and then turn to finishing and gracefully serving. That must be before you startup too much to finish. That turn from starting to completing a design process also happens when new organisms become fully formed and ready to start learning about their new world. That occurs at birth for mammals when the new life starts to explore with family support for a while as they “fledge” and then be freed. People call it “youth” and “graduate,” the preparation and point of leaving the nest.

So, communicating to professionals about their ignorance threatening the planet is a dicey proposition. That is helped by really knowing what you’re talking, protesting, or singing about. Since negativity usually reinforces opposition, it helps to take a caring rather than aggressive approach.

A good example of that came up with the US supreme court starting to take away universal rights. The idea of forcing the country to adopt radical Christian Right (CR) values by packing the court came from their decades-long quest. Now it looks like there may be more to come than denying every woman’s right to privacy in their reproductive choices. Every living thing on earth needs individual and home privacy, though, so it seems to violate nature to deny it to others unless you are seriously injured.

So to turn that all around, ask: “What in the world happened to the CR to make them feel so directly harmed” And why was the only solution to deny the world around them universal rights??”
Were they feeling an egregious loss of their home and privacy? The world around them has indeed been changing ever faster (due to problem A). The threat of ever faster change around their very fixed beliefs could have made them feel alienated, without a secure home anymore, and only able to think of lashing back? That makes it plausible that sympathy could sometimes be a better tool than antagonization, and of course, it would go both ways.

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JLH

System change? It’s also birthing new lives

from One community Global: Living In a New World
https://www.onecommunityglobal.org/living-in-a-new-world/

A comment on a post by Joss C.  for an Offering of tools for systems change on the Systems Innovation Network, a quite beautifully done Systems Innovation Starter Kit for which courses are offered.

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Yes, quite nice work. I think learning how natural systems develop and change as wholes seems needed too, though.  We are often easily confused by how easy it can sometimes be to change the parts of systems we want to change as a whole. Systems generally develop as wholes and change as wholes, though, of course, unless broken up. Learning how to foster whole system change often comes from attempting to engineer some living system, to then see it fail over and over, learning how from experience by deep emersion in the context to understand its needs.  That’s often how businesses evolve, by the deep emersion of its people in creating order from the chaos their first attempts cause. That’s still likely to happen, but might be made easier if people studied how actual systems emerge and change. 

Real system change is more like the birth of a child, something developing as a whole and emerging as a whole, to then find it has to actively explore and adapt to find its place in the world.  That applies to the birth of new ideas for new kinds of organization within a business, for or in a community, or in the world.  It always first starts with the germination of its growth, then development and maturation on the way to having a life. Each stage is a unique challenge and experiential learning and growth process. The first creates its insides and then develops its relationships outside, to fit with the environment it emerges into. 

What we’re struggling with globally is, of course, moving the world system in a profound and dramatic way. Though it is very different from learning to personally host and guide the birth of innovations in our work to fit their contexts there is a lot about global change we can learn from it. For a global change, we need to recognize first that we are not in control of much at all. Secondly, we need to recognize that systems are systems primarily because they are self-controlled, work as wholes, and though they have flexible parts and do often change by themselves, they really ONLY change as wholes and not by pushes and shoves, but by themselves something like we do. 

That’s where it’s useful to study our experience with systems that change by themselves, our groups, friends, communities, selves, and children are things we know a lot about. There are only a few ways an outside approach can help, or hinder. For systems that one is part of one can spread the feeling of the pressures and any useful knowledge of opportunities for a whole to change on its own. There are often places where a developing whole system awareness is not getting through, and different forms of whole system awareness are needed. That is what seems to prepare a system for some sort of inspiration of its own, sometimes called “animal spirits,” that trigger whole system change, in a direction that motivates the whole. 

We see it in our own behavior, as with what makes us overcome habits and do something new. It takes deep and ultimately inspiring feelings. If you think about change moments for other things, other words for it might come up, but it’s one or another kind of holistic response to awakening and opportunity. It needn’t be awakening due to growing life-threatening pressures, but we do hope indeed they will help motivate and inspire our world. When the system awakens to the opportunity it triggers the animal spirits to be felt by and move the whole.  

Of course, that is IF successful. Let us hope that’s what humanity will have in mind to do as push comes to shove and the terrifying game of “chicken” we keep playing with ourselves, of using power to multiply power as a way of life, finally breaks.  

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jlh

Betrayed by the power of our minds

The radical separation of humans from nature, our being so self-absorbed and seeing nature as defined in our heads rather than the other way around, has been a deep mystery for a long time.

My interest in it came from noticing how mathematics became our standard for representing nature but cannot describe or help us study what makes life so lively, the abounding creative processes of nature.

I’m not against math, a fabulous art, that does help us identify certainties, however, our desperate search for certainty is what seems to have betrayed us, splitting our minds between attentiveness and total blindness to our environments, having defined in our minds nature as our rules for how to control nature…

A general systems theory and demonstration of the problem and solutions are to be presented on Jul 9 at 3:30 at the 2022 ISSS world systems science conference. See the preprint Holistic Natural Systems – Design & Steering – Guiding New Science for Transformation.

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First Openings

The search for answers in mathematics, the language of determinate relationships that science uses, has proved extraordinarily profitable, leading to growing human comforts that have also taken us to the point of our increasingly destroying the natural world. Our mysterious detachment from nature seems very directly at fault. The animation of life, its rich relationships, and creativity are all left out of the formula when people are guided by determinate rules. It’s something I’ve long studied as a physicist, having first noticed that every event begins and ends with some little dynamic transient of change.

I think part of the problem is that language was actually reflected our first highly useful systems thinking, with all its words and grammar arranged to communicate important experiences, designs, and relationships IN THE NATURAL CONTEXT. Math makes rules abstracted from a natural context, that are most profitable when offering easy ways to control nature without concern for the context. So they work great but pass on no information on when they are being overused. That is as clear in the simple cases and most extreme cases, such as the world consensus plan to maximize our economic growth rate, for regularly doubling the wealth we extract from nature while ignoring its rapidly degrading impacts on nature, called “externalities.”

But who is it that is blind to what, and how in the world do we face an existential dilemma evidently buried so deep in human consciousness?

Finding the right path forward

We see humanity’s deeply split personality, generous and playful as well as obsessed with expanding our control of the world but need to find its source. Then we will finally begin to make progress, to slowly dig our way out of the terror our powerful minds seem to have created for us. Somehow we allowed our truly wondrous designs to create a new world of enormous cruelty, following their promise of relieving nature’s cruelty. That’s definitely happening, and definitely not good.

One of the paths to a cure could come from studying the differences between how people behave in one or the other way. We might then cure the blind way of abusing our powers by restoring the principles of staying in touch with environmental contexts. The direct approach, helping others immerse themselves in the natural environments they are in trouble with, works great using an experienced teacher. The living systems scientist like Ostrom or Midgley do it by lead communities through a process of exposure to how their worlds work, leading to their making much better choices.

As parents we also talk to our kids that way too, helping them to understand problems of insensitivity to others. Every good family does that, but the children still grow up to follow the rules of maximizing growing profits and ignoring the economy’s ever-growing impacts. That very clearly defines the split between how people behave in familiar contexts, where they can feel the strains on relationships, and in the public sphere where they don’t. In the public sphere rules for profit give people only feelings of self-interest and blind them entirely to the enormous building strains in the wider world’s relationships.

I’m not saying that is the only strong force causing humanity’s spiritual separation from life, but one we can see plainly enough to realize we very much need to act on it, despite the difficulty of communication that recognizing errors in our plans naturally creates.

Modern society presents other special problems of communication too, confronting us with thousands of self-serving silos of narrow beliefs, personal, social, religious, national, and professional. I look at them all as “cultures,” the “cells of knowledge” we build to guide us on how to think, work, live, and talk to give us some local sense of security in a confusing world. Cultures are also a saving grace as well as a way to divide us, given how most are deeply rooted in what worked in the past, with authentic copies passed on from generation to generation.

Of course, individual people have individual saving graces too, to use in helping us climb out of the trap we find ourselves in. Some have vision, steady hands, charisma, moral clarity, persistence, or wonderful person-to-person good hearts. Those don’t come from theories of control, that betray our powerful minds. They come from the opposite, from our loves and cares largely cut out of the public sphere by the rules we blindly follow. Saving graces in our institutions seem harder to find. We mostly built them around ideas of expanding control or being funded by it, not on learning how to make free associations work well.

What it seems we need to rely on is family culture and their central one for all and all for one life agreement. I’d include in that both the home and work families we center our lives on, which generally make us acutely aware of the non-verbal as well as verbal cues indicating openings and strains on our relationships. That is the very kind of environmental awareness that enables our personal and family survival instincts.

That is what seems most missing from the public sphere institutions, seemingly blinded by following abstract rules rather than navigating relationships with the world. It’s not even that the world doesn’t act as a whole. It certainly can and does, as you see in the effect of managing a global economy to work as a whole. To feel where the world is going, and change our collective steering, we’d need to count all the global strains we have not been counting.

An Experimental Partial List of the mostly uncounted growing strains on our relationship with life.
The Top 100+ World Crises Growing With Growth
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(note on the home science of Hestian proto-Greek culture now the new post: Bronze Age Roles of Hestia and Hermes

JLH

Why natural growth is our natural and likely only way out of our world growth crisis

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“Natural growth” is nature’s way of creating long-lasting new lives, of all kinds.

Intro: How system responsiveness is expressed in natural growth is as anticipation of the opportunity to end growth by perfecting the emerging system. To do that, the system’s steering needs to switch from multiplying to harmonizing (i.e. maturing) its design and place in the world.

The figure below is something of a list of what to look for in any particular case. All systems emerge with compound growth and then variably navigate their futures. A talk on the core natural science for an ISSS forum on Oct 2, 2021, is on YouTube!; the research paper (1) below.

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Throughout nature, living systems of all kinds develop by a growth process with three main stages. The first stage is an explosion of innovations in extracting and capturing resources from the new life’s environment, furiously building the new entity with what’s available. Varied examples include a seed sprouting, humans sprouting in the womb, the compound growth period of businesses, economies, and cultures. It also includes the take-off periods of new relationships and all other emerging organizational systems with lives of their own. The second stage follows the first, exploratory and adaptive maturation of a new life as it finds its place and purpose in life, creating its first niche in the world by a slowing process that perfects the emerging design, to be released to forage the greater world starting its longer third stage of life, building wider environmental relationships to last a lifetime.

Genuine “thriving through transition”* can be achieved throughout, from extractive innovation to adaptive maturation, and then finding and holding a niche in the future, even lasting into graceful decline. This storyline for how new lives develop is also found at every scale of macroscopic life of every kind, making it quite a wonder that it seems not yet studied in the sciences, nor part of our general cultural understanding … It’s so much a part of all our experiences our blindness to it is almost as if we’ve been looking the other away, not seeing how living systems work by themselves distracted by looking for something else. Perhaps we are always looking at nature only for how we can control things rather than for how nature works by itself.

A scientific research paper on the subject (1) was presented at the July 2021 meeting of the ISSS. What contributed to its success was focusing on how people already know a great deal about nurturing and guiding new lives of many kinds, initiating and supporting their growth and maturation up to their release. But, unfortunately, we do not talk about it much because it’s quite complex and is naturally intuitive for familiar creative work we mostly do non-verbally. So our discussion of it has lagged far behind. Just think about the difference between the start-up and finish-up stages of any kind of work, and how the work switches from multiplying the early patterns and then harmonizing them to achieve a truly lasting result.

For example, we follow much the same natural creative growth stages in making dinner. We start making dinner by first exploring what might be put together, at first taking small steps, then building up to large steps, and then back down to small steps again to climax with finishing touches as we sit down to eat. Raising a child or starting a business are far more complicated but follow the same creative, exploratory starting than perfecting stages to finish. Growth also faces numerous challenges along the way. If fortunate and skillful overcoming the challenges can be a thriving process all the way, taking a living system through its immature then maturing stages to serve its mature life.

The figure below is from the research paper, the composite diagram of the general growth stages of new lives, illustrating the A, B, Cs of new lives. Individual new lives will diverge from the simplest common thread of development for all new lives. Instead, each will build its own life, displaying considerable variation on the paths taken as it builds its own chain of developments, confronting its individual challenges along the way. Every new life will first build up from small to larger steps, though, and then build down from large to small steps again to finish. So the two sweeping curves are just for typifying the normal course of the progression, also called an ‘S’ curve. So the shape might as well be shown as an uneven staircase of minor and major challenges if that were not hard to draw and too specific to represent the general pattern.

The best way of reading the figure might then be to imagine what thriving would be like for particular new lives making their way through the long series of challenges of ascending levels. Then to cement the generality of the pattern in your mind, think through the periods of struggle, thriving, approaching, and receding challenges for the largest scale, the new life of humanity we are building now! So far, its first stage of growth for modern civilization has been around 300 years long and is now facing an existential crisis for not knowing how to transition to maturity. That challenge is one of the things learning to verbalize the steps of growth can help with.

The most important growth challenge of any new life is the big one in the middle. That is the great challenge world society and the economy are having the most difficulty with. Having designed our world around making the first stage of growth endless is both the big barrier and the main cause of all of our multiplying world crises growing with growth (2), pushing growth too far and too accelerate too fast to coherently adapt to the most conclusive sign that growth is at its natural limits.

The natural path of escape is labeled “Turn Forward.” It’s the shift from focusing available resources on multiplying the initial concept to using them for perfecting our designs and finding ways to thrive in our new environment. That shift from thinking about the past to the future is what turns a new life away from multiplying its past to finding its future, discovering its greater purposes and roles in the wider environment. That is a very good kind of work, one that the whole world is abuzz with today, even though our institutional systems are totally unprepared for and dead set against. That’s why we most need to learn how to discuss the problem. Our institutional world is more built on talk than intuition.

The natural pace of change can also shift faster than it seems possible. Look at the figure and see how the “Turn Forward” corresponds to a “Baseline Inversion.” That is a whole-system shift in the direction of its change that can occur with almost no actual system change, an “inflection point.” Before that point, expansion of the system was in proportional steps of divergence from Baseline1. After the inflection point, expansion of the system develops by proportional steps of convergence toward Baseline2, to arrive at the end of physical growth at its new home where the new life becomes freed to be itself.

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Please do add comments to this article or email questions and comments to me at sy–at-synapse9-dot–com.

*Note: The phrase “thriving through transition” is from Trae Ashlie-Garen, expanded on here to apply to the full set of any of life’s transitions.

  1. Research Paper https://synapse9.com/drafts/2021-NewSci-IndividSys-MS.pdf
  2. Our growth crises https://synapse9.com/_r3ref/100CrisesTable.pdf

JLH

How our world can Escape its long DEATH SPIRAL

To make our escape there’s not just one requirement, but the main path is to join the emerging understanding that our new age of growing environmental chaos is a natural result of overextended compound economic growth. In nature, growth is a tricky two-edged sword, the greatest of gifts to begin with then the greatest of threats if not converted to things more lasting (1).

Living systems invariably begin with a period of multiplying the parts that capture more resources than they use. Starting things with an explosion of new life is part of nature’s beautiful complex process, so we should be glad for it, but only to a point. The catch is that for our world to survive its period of rapid growth we need its growth to climax in time. Otherwise, growth will generate huge surpluses of false profits as it undermines its own foundations and spreads chaos throughout its environment.

We see that in every corner of the world today, enormous creativity going into generating false surpluses disrupting the environments the economy is supposed to serve, but now attacks instead, spreading chaos rather than healing. For example, COVID seems to be causing chaos around the world, a natural virus not immediately our fault. However the chaos is enabled by our extreme overpopulation, our strings of inadequate responses, growing mistrust, and belief in conspiracy theories, led by magical thinking that the earth can be profitably exploited to infinity, Our world consensus plan is actually TO MAXIMIZE OUR RATE OF GROWING EXPLOITATION OF THE EARTH AND HUMANITY FOREVER, as if we didn’t see what that does. All those compounding factors generate more virus variants and more chaos. Lookout. Here it comes.

So what we need to do is “get the big picture” and start using our collective profits for better purposes than terrorizing our home planet. The best way forward is to use your own life as leverage for guiding your world. There are lots of good things to do and lots of better business models too, though almost no one seems to understand the right way to address their global impacts.

OUR TRUE SHARE OF RESPONSIBILITY FOR THE ENVIRONMENTAL CHAOS WE ARE CAUSING COLLECTIVELY IS EQUAL TO OUR SHARE OF THE ECONOMY. In a global economy, one’s share of the economy’s impacts is also what we pay for. For example, a business pays for every impact of its entire supply chain. That is by requesting, paying for it and profiting from it. Yes, it is a shared responsibility with its supply chain, of course, not exclusive, and a business has no direct control over much of what its supply chain does too. However, the impacts would not occur if they were not paid for too. So the UNIVERSAL RULE OF THUMB IS TO TAKE RESPONSIBILITY, IN PROPORTION TO YOUR SHARE OF THE PROBLEMS THE WHOLE ECONOMY CAUSES, BY USING YOUR LIFE AS LEVERAGE TO CARE FOR AND STEER OUR WORLD TO SAFETY.

I made a very well-received talk on the subject, called “Understanding Nature’s Purpose in Starting all New Lives with Compound Growth.” That was on 11 July 21 to the International Society of Systems Sciences (ISSS) meeting, in the Special Track on “Future Society”. It was a wonderful group of a dozen presentations, all focusing on the heart of our global problem. As systems science, each is a bit difficult, but the consensus was that each one was also converging on much the same great truth, that like all great truths, could potentially set us free. I’m not sure when the others will be posted, but my talk is on YouTube and it and the paper are linked from my one-page Abstract for the paper.

Let’s clean up our act and get going. We have lots to do. It’s not a straight path but once you get your sense of direction it will be extremely satisfying.

JLH

1) Understanding Nature’s Purpose in Starting all New Lives with Compound Growth; Well received systems ecology research for ISSS 2021

FAIR_Money (Principles of Fiduciary Asset Investment Restraint)

A concept in development with the
r3-0.org Sustainable Finance Blueprint

The FAIR rules act as an overflow valve, to redirect excess savings of passive financial income (normally used by investors to extract exponentially more) back to the free circulation marketplace of the pond to keep from draining the pond and guide investor self-restraint in extracting profits from the earth.

FAIR_Money sets a UBD, Universal Basic Distribution, a standard % rate at which investors need to distribute their excessive savings from passive income.

Fig 1. Finance adds funds to free circulation commons, but with strings attached for taking out more as ever-growing profits and escalating drain on the common pool, causing punishing inequality when the economy faces natural limits. To restore balance the FAIR rules ask investors to distribute accumulated profits to qualifying non-profits serving long-term societal needs. That would sustain the profitability of an economy seeking balance with the planet and our need for a good home. .

[See also the Medium article on FAIR, “Call it a great act of Love“]

Date                 2020 – 5/25/, 6/30, 7/26

Title                 Principles of Fiduciary Asset Investment Restraint (FAIR), simple rules to restrain the compounding of unearned income to reverse the present worldwide continued overproduction of demands on nature and society, our great tragedy of the commons. Ownership comes with natural responsibilities.

Topic                Compound investment (adding profits to investments) is required to get any enterprise going, but as seen throughout nature is only what starts things, not what makes them sustainabnle. If overextended what it does is globally multiplies the power of the owners of the world over all others, creating the great array of world crises of neglect disrupting global society and nature we see today.

Asking investors to take responsibility for bringing growth to a climax peacefully, tempering their greed for the common good, appears quite necessary for long term peace and prosperity, even if it still seems quite impossible socially. It seems to conflict with the absolute rights of blind ownership. Now lots of owners are beginning to see the grand catastrophy their habits are causing, and that society’s rules should reflect how people would like to live without looming threats in every direction.

Pitch                Flatten the curve of growing environmental and cultural exploitation, to reach a thriving peaceful economic climax.

Image             

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Fig 2 The universal pattern of emerging systems that sustain their climax

Draft Simple Excel Model: FAIRtestModel.xlsx

Statement The world financial system has but one value, to use the earth and human societies to maximize the growth rate and concentration of financial wealth. That leaves out concern for the resulting matching degradation and disruption of natural capitals and human society. To secure the wealth of nature and humanity we must then have Fiduciary Asset Investment Restraint to prevent the rapid decline of whole system value, and secure a good home for ourselves.

In all fairness, FAIR is just one appealing, comprehensive, and eminently fair way to rebalance the compounding of profits consistent with the long term interests of the earth and humanity. There are also tax and negative interest rate means of “topping off” excess passive savings to restore global balance. The value of FAIR is its focus on everyone’s shared duty to serve common interests. It would of course be backed up by legal penalties and alternate means of distributing excess financial savings, once people see the real need to change our way of living. Of course, all three means could be combined, perhaps led by FAIR distributions by individuals accepting their natural fiduciary duty to care for the earth.

FAIR rules would also only gradually reduce the financial imbalance caused by compound investing, and adjusted to not stifle individual financial creativity as it limits punishing demands on nature and society. Spending a fixed annual share of accumulated profits from investments in times of severe imbalance like today, torturing nature and tormenting wide sectors of humanity, would give investors global guidance on how to value the gifts of nature and human society. One must also caution against the use of FAIR distributions for just reliving symptoms of the systemic overaccumulation of savings, as simple symptom relief would fail to steer people’s lives onto sustainable paths. For example, food and services should be offered, but take a back seat to strong socially led education and self-organization efforts.

This is actually a strategy first discussed by JM Keynes in Chapter 16 iii & iv of his General Theory. I’ve interpreted it as an “overflow valve” for excess financial savings to relieve unhealthy burdens on the earth system, dialing back unsustainable extractive investment and relieving the whole economy’s pressure on all our cultural and planetary bounds.

The degree of relief from excess demands on the system would be adjusted with on experience, starting at 10% a year of accumulated for argument sake. That rate would most often not increase wealth distribution to undermine the individual life styles, just skimm off the top. The rate would be adjusted to gradually stabilize the economy’s impacts on earth and society at a comfortable level, both for long term profit and to treat a living world with respect.

In the end, finance would stabilize to generate steady flow of profits for personal and priority needs, the economy thriving as a continually innovating cash-cow business enterprise. In Hardin’s Tragedy of the Commons, the equivalent would be for the rich farmer to see the error of killing the commons, and devote his excess cattle to relieve community suffering, hosting periodic feasts to save the commons and bring the community together, seeing their right to become a welcome hero for giving up the role as the devil himself.

Need       Even ignoring the COVID pandemic, the world faces a considerable growing plague of plagues from centuries of growth putting excessive demands on societies and the environment. A sobering list of The Top 100 World Crises Growing with Growth illustrates the problem. While mainstream finance is starting to recognize the need to not just maximize profits at any cost, so far that has largely been only to factoring the risks to ever-growing profits, not harm to our future. Since maximizing the compounding of profits seems to be the real problem, a new way to do it doesn’t really solve the core problem. It also ignores the very numerous other global crises threatening our future, exposing the grand “tragedy of the commons” of global overinvestment for which we are responsible.

Is that partly a matter of the kind of investment we built civilization with? Of course. A tree can’t change its own trunk, roots, and branches though, only slow the new branches to halt destabilizing overgrowth, if it’s not too late. So we should expect a natural Fiduciary Duty for investors and businesses to develop, to the best of their ability, and guided by the progress of the global crisis. That is a way for responsible investing to become universal without expecting investors and businesses making their decisions to understand all the up and downstream impacts on others or the system’s pressures on its whole range of planetary boundaries. In a way, both forgiving and frustrating, the research on global measures of our economic impacts (Henshaw 2011 Systems Energy Assessment) strongly suggests that causation for whole system impacts is so widely distributed it’s generally necessary to consider them as equally distributed per share of the economy, like today’s nominal average CO2 Emissions of 0.26 kg (0.6 lb) attributed to every $ of GDP PPP. Understanding the CO2 has both historically and currently increased in lockstep with the world economy shows the real problem that forces us to remove the growth imperitive as part of responding to climate change.

Fig 3 the history of Atmospheric CO2, with fixed growth rates from 1780 to 1940 and 1960 to the present

The main determinant of success for FAIR distribution of excess savings is not just the relief of pressure on the global commons it would bring. What matters as much is whether the money is well spent, and delivers “good works” of long term value. The expectation is that people with accumulated profits to distribute, with some technical guidance, would have an “eye for value” and see what the world needs to be successful, having demonstrated a comparable “eye for value” to make themselves successful.

Spending to serve the common interest presents the same kind of creative investment problem only looked at in a new way. FAIR spending is an investment decision for serving the system as a whole, that will be returned with profits of other kinds you couldn’t buy. That is the same way a family benefits from spending savings on educating its children. That is saved profits well spent. It’s a question of “feeding” the world something nourishing, not “controlling” it.

Well spent, FAIR distributions would teach both people and institutions about the patterns of growth in nature, and how investment at the limits is returned manyfold.

Because the FAIR spending of assets is something of a new investment field, it would need guidance and support from economic research and modeling. Also needed is a connection with the social networking of practice communities, both to guide to creating lasting value. Initially, it would be a voluntary adherence to a community principle, and then later formalized to be more widely applied. With new proposals for expansive strategies, the devil is generally in the details so serious economic modeling and rulemaking study to explore options. The scientific study of how finance is coupling with its growing planetary impacts, reliable sponsorship, and teamwork in building the global movement are all critical.

The hope is that the principles are practical and clear enough that they could spread naturally and become socially expected. Even connecting idea that growth is responsible for our problems continually racing out ahead of our solutions should be a task for a global IPCC-like scientific network, perhaps called the IFIC (International Fiduciary Investment Council). That would focus work on systemic research, to guide national organizations on rating impact investments for the commons. Someone will need to attempt to “qualify” the likely impacts of different kinds of for-profit and non-profit grants and investments.  Coupled with each investor’s eye for value that could be relied on to steer the economy through its many present crises, including COVID, to a thriving and lasting climax.

Challenge: This proposed “human duty” (to go along with our “human rights”) for investors and business to devote a share of their financial savings to serve the common interest seems simple enough to define and discuss in principle. What’s harder to define is how much time we have to avoid the next wave of crises, as in the past, likely to be as unimaginable to us now as the present ones were before. We should “Build Back Better,” and with an eye to economic, planetary, and environmental justice.

Restoring the economy to maximize its long term growth is the most dangerous course of all, inviting a crippling systemic delayed response like the delayed responses to COVID-19 which caused most of the deaths. If we just restart the growth economy, already severely weakened, you might expect the kind of failure at the limit shown by the light blue upper curve (Fig 4). That choice amounts to no response in the end and leads to system failure. We seem already well beyond the sustainable limit and so only have a last-chance response, to turn toward the sustainable limit like following the purple curve.

Once the world realizes that businesses and investors do really have a natural duty to steer the world economy in the common interest we’ll find more ways to do it. The physics of responding to natural limits (Fig 4) shows that early responses to natural growth limits don’t significantly delay the approach to the limit. It is mainly delayed responses you need to worry about. FAIR principles, perhaps combined with other strategies for topping off excess financial savings, are today likely the only option for making a transition to a thriving climax without major disruption.

Fig 4, The high risk of delay in responding to exponential threats. From Models Learning Change (Henshaw 2010)

Origin of the FAIR Concept: A series of tweets 05/24/20 … and historically, from the work of JM Keynes, 1935 General Theory, Chapter on Sundry Observations on the Nature of Capital” Chapter – 16 III & IV, describing why the natural financial climax of the economy requires financial savings to climax to prevent the very worst effects of capitalism, implying that the wealthy need to learn to spend rather than save their profits to preserve them, by making the system as a whole sustainably profitable.

JLH

The Ecological Economics of Growth – When to turn

This is a preview of my new submission to Ecological Economics
Please have a look at and comment on the review copy FYI
Some of the figures and captions are below

Jessie Henshaw sy@synapse9.com

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Abstract: Organized human and natural systems generally develop by an observable process of growth, with a beginning, middle, and end. Examples range from the growth of organisms, cultures, and ecologies to that of businesses, social movements, weather systems, even personal and social relationships, and many more. Close observation reveals organizational growth to be a progressive building process of self-organization. Most recognizable are its recurring three shifts in direction, each followed by a development period. That six-stage pattern can guide the study of a growth system’s internal and external designs, recognizable as a series of milestones along an “S” curve assembly line. That common model allows useful comparison of all kinds of natural and human-designed growth systems, using a diagnostic as opposed to a deterministic research method, keeping what “ought to be” in close association with “what is.” Discussed are the historical roots of the field, a set of pattern recognition tools, three brief pedagogical case studies, and an eco-economy view of our global growth and its natural time to turn.

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ow living systems develop their complex organizational designs by rapidly evolving self-guided growth processes has fascinated scientific observers for millennia. Natural growth also still resists scientific definition though. Perhaps the delay comes from scientists asking the wrong questions, looking for deterministic rules for nature’s creative processes, rather than generative patterns of natural design.

Here we start from the broadest patterns, like how growth processes are evident throughout nature, even in every kind of work people do. Growth generally displays a three-part development cycle of beginning, middle, and end, but like a tree expands on opportunistic rather than deterministic pathways. Our problem with understanding it, then, might come from having so singularly studied nature for the deterministic patterns we can rely on, pushing aside the study of nature’s indeterminate building processes.

Another commonality is that whether it’s the growth of a mammal, a business, or a snowflake, the ultimate end is a state of complex perfection of design. On close inspection, that highly organized end-state seems to come from having alternating periods of diverging then converging (positive and negative) development feedback, first getting growth to start-up to then turn to perfect the design as growth finishes-up, as if generating a framework then filling it in.

fig 1 – A Snowflake and its Central Kernel: Look at the layers of its kernel that built up around central dot. The first hexagonally differentiated shape you can easily see is still quite simple, but the next layers become quite complex. The six spines that emerge develop nearly identical filigree as if originating from an organizationally “entangled” first crystal core.
fig 4 – Three stages and three turning points of natural growth.
1) the seed event, Image, and following start-up growth period (red) – Individuation
2) the turn forward event, Image, and finish-up growth period (blue) – Maturation
3) the arrival event, Image, and Climax life period (green) – Fulfillment
fig 5 – Economic systems need to use energy to harvest more energy. The ratio is called EROI, a ratio of returns to costs and has to stay greater than one for the system not to shrink or collapse. Usually, a new system’s first energy source, EROI-1, is consumed as the system develops a more lasting resource, EROI-2. Succession from one resource to another can also be repeated (not shown), like climbing a ladder, or it may fail.
fig 9 – In a finance-driven eco-economy, choices by businesses and investors determine the directions of future development, predominantly based on what will be most profitable in the short term, whether by serving of quietly manipulating the markets.

Every economy is also an ecology, both a self-organizing system of mutual benefits which also relies on having positive net resource flows; both beneficial design and net material profits. Together these two faces of natural systems make a complex whole one can study from many points of view, but rely critically on all its parts.

Networks of mutual benefits are mostly composed of organizational, design, and qualitative relations, like that a cup holds water, or that a fish swims, or whether someone knows how to work with you, or whether a shop serves its local culture. Those aspects of design, organization, and qualities have no numerical definition but create the systems of mutual relations on which the designs of life rely, Some may be products of nature and others of fine arts and crafts: a fine meal, a delightful garment, or a meaningful film as inherent benefits of life.

Those benefits of life are also needed for the systems that deliver the physical resource flows that market price and investment returns determine the investment in, letting one calculate the budgets by which our world economy is managed. So to understand any particular living system, one needs a clear-headed understanding of how those two sides work together.

JLH

How ‘Natural Growth’ can save the world.

Without thinking we use natural growth for many common tasks already, simply by starting things to finishing them with a minimum of waste. In each case you “save the world” from needless excess consumptive growth in getting things started, wasting your efforts and the earth’s other natural and human resources.

Every kind of life, and kind of effort too, begins with building up a system of demands for available resources,
to further expand on what built up before.

That expansion by building on what was built is the universal start-up process of nature, also sometimes called “extractive growth.” You see it very clearly in every kind of start-up, of a new friendship, a business, a career, a seedling or a life from a fertilized egg. The all start with steps that build up from what was built before. The build up that making breakfast starts with, for example, begins with the idea of food that makes you hungry, that then gets you to reach into the cupboard, and refrigerator for supplies, and the drawer or shelf for utensils, building a customized system and supplies for making your meal.

Nature’s integral; chaining start-up growth & refinement growth in preparing for a good life.

That process could go wrong, the way mankind’s way of using technology to multiply our making of things on earth exploded, and we now don’t seem to know how to stop. In making breakfast it might similarly go wrong if you got carried away taking out provisions. You might start with a small idea of what you need from the fridge, and add to that bigger ideas as you explore what there is to take out, repeating it to exhaustion perhaps, till the fridge and cupboards, pantry, and cellar, are emptied and all the family’s provisions in reach are mounded on the kitchen and dining-area floor, as you get hungrier and hungrier and your eyes expand way beyond the limit of your stomach, putting nearly all the family’s provisions to waste. The particular outcome is rare, but it is very true that once you get going with growing a process of growing, the process itself can become addictive. Today we clearly see in how we are wasting the earth in somewhat the same way, and love to be moved to tears and laughter by watching Disney’s Fantasia when Mickey Mouse learns turn his chores over to his broom with a magic spell, which gets tragically carried away carrying water.

starting things to finish them with a minimum of waste

Of course, we don’t usually behave that way at all, but at some point near the beginning of taking out provisions to use, switch to thinking about how to get to end of having a satisfying meal. We almost never have the exact end in mind either, but perhaps initially take out eggs and cheese to perhaps put them back and take out bread for toast and milk for cereal if you’re in a hurry. As you put things together you also do various smaller and smaller things you discover to do, to perfect the end result while also arranging the timing to get all the parts to come together at once, with excess provisions put away, all part of getting ready to sit down, perhaps with together with others in the family.

In doing that, rather than letting the initial provisioning of breakfast get carried away, we have “USED NATURAL GROWTH TO SAVE THE WORLD,” most often without really realizing what an enormous contribution to the community and your family was done by simply not maximizing the waste of all available provisions in the process of making breakfast. Of course, it’s also important to do and to watch for in other circumstances, a natural duty for living in a commons.

It seems like a little thing but is actually a very big thing,
that we casually do for ourselves and others
many times every day

that we casually do for ourselves and others many times every day

People are plenty smart enough to see that this “RULE OF NATURAL GROWTH” (also called “nature’s integral“), to finish up what you’ve started up doing before you make a mess for yourself and others, should also apply to civilization as a whole, and at every scale in-between. People do see that ALL development creates disaster risks, for example, and that boundless development would always creates an all-consuming disaster. Our minds still “get in the way” somehow, transfixed by fantasies it seems, and we just trundle along on the clear path to that all consuming disaster not knowing what else to do.

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How this would save the world is really something quite plausible. We already see in progress a great “change of heart” by businesses and investors around the world to join in on averting the clearly disastrous future now directly ahead of us. If that initiates a wave of common sense, with business and investors choosing to follow the wave of the “impact investing” community, averting the looming crises in the most direct way possible, and with much less government involvement. Following that wave of necessity to avert disaster would also turn our world onto the natural growth path for perfecting how we use the earth. You could ask yourself and others to join the wave! The choices of higher purposes include the Green Climate Fund, supporting various SDG goals. The real, macro-economic effect is to distribute wealth in the service of higher purposes while directing profits away from concentrating wealth and raising the economy’s ever growing demands on nature and humanity.

Various other journal entries here discuss more about “what to do”, there’s a whole category with dozens of good little articles and discussions of it. Still, the best way to learn about it is for yourself, from watching how all of life revolves around the variations in nature’s integral, seeing for yourself how ‘start-up’ processes yield to ‘end-up’ processes in taking things to the natural climax of releasing them for their useful life.

SDG8 side event: Recoupling

2019 UN HLPF side event scheduled Tuesday July 10 2019 1:15 to 2:45 at the UN Millennium Hilton, 3min statement. Further links to natural growth strategy below. – Jessie Henshaw

Thank you for coming.  
Find more of my statement and links at www.synapse9.com/signals

My name is Jessie Henshaw.  I’m a natural systems scientist who developed a fascination with how living systems transform as they develop, such as how our economy once changed by small accumulating steps that got bigger and bigger.  Those ever-increasing rates and kinds of change are the key reason there are natural limits to growth.  Growth is itself an organizational process that pushes economies and their organizations in the direction of increasingly disruptive limits.  

For example, walking down the street by bigger and bigger steps, making more and more progress at first and would lead to losing control, and a painful fall.   Similarly, in the last 250 years, the world economy doubled its annual expansion about 12 times, so our annual expansions today are about the size of the entire world economy of 1920, truly enormous.  

In part, we experience that as universal pressure, for increased economic performance from all people, all organizations, all societies, and of course, all of nature too.  We are also feel surrounded by systems failing to keep up, and in crisis, crying for help, that we find hard to deliver.  So today the true location of the most “vulnerable people” and most “vulnerable regions,” struggling with unmanageable demands, is now truly the whole earth. (to cut for time)

At first, the economy’s growing demands were not overwhelming, and seemed very rewarding for large sectors, having a negligible impact on the earth as a whole too.  Continually multiplying them changed all that.  Now they disrupt every environment and are breaking through all silos of discussion.  Now we see there was no “economic decoupling,” but just detachment from our responsibility.  Now we look around and see an enormous diversity of crises that were not supposed to materialize, and need to decide what to do.  

We need an “economic recoupling” with our responsibilities for the earth and humankind.   An easy first step is to think of your responsibility for steering the economy as equal to your share of the economy.  It may seem small, but in a global economy where it takes the whole world to deliver every product or service, we are similarly responsible for a share of every harm caused too.  

Nature’s integral: joining the multiplication of parts (red) with the refinement of their designs and uses (blue) to prepare for LIFE (green) as the reward in the end

The path ahead I see, for transforming the economy is to change from compound growth to natural growth,  climaxing growth at a peak of resilience and vitality, ready for a secure, enduring and creative life on earth.

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The Economic Path to Natural Growth

PDF slides: https://synapse9.com/_SDinteg/PathToNatGrowth.pdf
2019 Jul 2 Talk 30 min: https://www.youtube.com/watch?v=w5Cz7vc0-c4

Finance serving Life

“Finance Serving Life” introduces an updated version of the transformation journey for global capitalism envisioned by J.M. Keynes. He first described it with a biblical fable he called “The widows cruse” (or “Widow’s cup”) based on the 1 Kings 17 story of Elijah asking for food from a poor widow with scarcely any, just a last bowl of flour and flask of oil. To relieve the poor widow of doubt Elijah tells her that if she shares her scarce provisions it will provide generously for both of them, becoming inexhaustible as long as she is in need.

Keynes’ use of the fable was meant illustrate to the wealthy that if growth ever became unprofitable, they could sustain a healthy economy by spending rather than compounding their profits, and have their profits forever be return to them. It illustrates a true natural economic principle of sustainability, that at natural limits to growth spending the profits from investments will become necessary to keep them profitable. That principle is also observed in living systems that repurpose their surpluses at their limits to growth, from being used for multiplying their parts to perfecting their uses and designs in order to thrive at maturity.

Today we can observe that using profits to continue to multiply the parts and demands of the economy on the earth and humanity have become excessive, in total effect impoverishing rather than enriching the both the human and natural world. In principle, though also depending on how it is done, relieving nature and humanity of escalating demands for increased productivity by wisely spending, rather than reinvesting profits would assure that the same level of profits would become everlasting.

Philanthropy and sustainability are among many such good purposes that those with a “good eye for value” might choose at a time such as the present when compounding profits to multiply the parts and scale of the world economy has become increasingly unsustainable. In macro-economic terms, spending the profits of the economy as it approaches the natural limits of healthy development relieves the natural world from endlessly increasing extractive depletion and disruption, while repurposing the use of profits for perfecting the economy’s systems and their relationships with the natural world, potentially bringing endless vitality to the whole.

One of the fine points observers often miss is that a non-growing world economy, using its profits for perfecting its designs for thriving and caring for the planet, would not become a stagnant “cash-cow.” Like a natural ecosystem it could be a thriving and stable system for continual self-reinvention, maintaining as much creative change, i.e. “creative destruction,” as is comfortable. Maintaining that balance of healthy creativity, avoiding both rapacious growth and stagnation, is then the steering job of the transformed economic system.

People are such wonderful designers of systems they put their minds to, and life offers so very many wonderful examples of successful transitions of this kind, from compound extractive growth to long lived creative stability, it is hoped that now that we are faced with the challenge, we could put our minds to it and figure it out.

The current slide set for presenting the concept more fully as a talk or webinar has the same name “Finance serving Life.”

jlh