From a natural systems science view, every culture change is a growth process.
As with all growth processes, the start is small exploratory steps that if successful settle on some main direction, or directions of new development.
That development then either switches to refining its internal design and maturing its environmental fit, to establish a lasting way of working in its new world, or it starts breaking up for not establishing a home.
In a world like ours, changing ever more rapidly, as a rule, our cultures like our economies driven to redesign and reorganize ever more rapidly, we now see them also tend to split up and follow divergent paths, too, unable to predict or control their own growth as the old ways holding them together are torn apart. In the past we called it creative destruction. Now it’s become destructive creation and multiplying technology and investment disrupt social contracts and our ways of working multiple times in a work-life and driving growing angry discontent in every direction.
The problem isn’t growth per se, but not even intending to finish it, not heading for the steps needed to make the culture change of the modern world something of lasting value, to both our many societies and its environment.
My friend Linda, among many others, said “the problem is we leave out Nature, the true ruler of our destiny. This is the big correction taking place. But because we have left out Nature, we do not understand it. No system can override Nature.”
I told her “Yes, and though everyone is feeling the strain, not understanding how we left out nature we also don’t see what to do.”
What I’ve come to is one possible way to close the gap. There’s a key level of all our cultures that displays how everyone does indeed nature’s method of building lasting complex systems. It is in our familiar methods of doing work projects at home or the office. We start and finish them to give them lasting value. We don’t leave our work half-finished to get ourselves fired or divorced.
The normal way is to start efforts with some small intent and look for how to build on it, then discover that it needs to fit a range of intentions and fit with the world around it, making adjustments and adding details to finish it off for delivering a lasting service to family or clients.
In other words, it’s not starting but finishing things that give them lasting value, placing the key in the arch that lets it stand up, furnishing a home that makes it liveable, coming to an agreement that is the purpose of negotiation.
However, … the internet is designed to endlessly multiply information and exponentially change how we live ever faster, like the economy too, making ever-bigger changes in how we live, sure to keep becoming ever-more unmanageable and to derail sometime, making nothing to last.
Who’d think the host of “experts” the world relies on would all make the same fatal blunder that everyone at home or work knows how to solve??
We need to pass it on I think. There must be a way that the people who care to make things work in their own lives can have a say in our common lives. Every system begins with growth and our ancient cultures seem to have all learned from nature about how to make things that last, making nature part of our design!
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.
After inception originates a desire, a long struggle for change follows and then a fast breakout and establishment
– To understand these best, think of examples in different circumstances from your experience, personal, business, world, or in nature.
For the transformation to an Ecological-Civilization there’s the barrier of needing to introduce people to something very new. If we study examples of how transformations happen in our memory we can find ways to convince people to explore what’s possible.
the universal stages of growth and adaptation that create new systems with lives of their own, small, medium, large, in a permissive environment.
Studied carefully, it’s possible to use nature’s own method of building new systems to guide our long-term path, showing us how to move forward from growth. Stage One of new lives is the germination of a seed pattern followed by a start-up burst of development when the new life defines itself as an individual. For enterprises it’s the handshake that sets things in motion and its period of rapid growth. Stage Two is for a new life to find its lasting place, maturing as it adapts to both internal and external limitst, Arriving at it peak of vitality ready for Stage Three, its long creative life. The curves tracing this story line are highly generalized, as are the terms used, but any startup faces these challenges.
Once you get the idea it’s astounding how many kinds of familiar transformations, on all scales, follow this natural system-building process for new lives. For projects large and small we execute our plans first starting with a concept, then working it till it is ready for its climax environment, — individuation followed by maturation and fulfillment
The start of new life is a “germ,” “spark,” or “seed” pattern, a vision or a fertilized egg, that soon starts to multiply on its internal resource and organize its internal parts, usually in a very protected and forgiving environment. For a human embryo that’s its womb, for an Eco-civilization it’s the virgin earth, giving us whatever we wanted for a long long time.
Then along with a dramatic change of environment at the limit to growth, there’s a change of life — a “turn forward” to maturing to make new relationships. Like birth, the end of compound growth is a perilous change requiring a great change in relations, resources, and expectations, a big test of survival a system’s will-to-live. It’s called the “turn forward” because attention turns from extrapolating from the seed to making a mature life in the future, in a more challenging environment.
For our newborn Eco-Civilization, hitting the limits to growth comes as a complete surprise, and will take the emergence of a great will-to-live, and lots of work to pass nature’s universal test of survival for new lives. Most of the human population is still blind to the profound change at hand and thinks growth is life, and that overcoming our troubles will be like returning to the past. It won’t BE THAT AT ALL! We’re heading for mature life, which given nature’s ways could be far better.
As humans, we have distinct advantages for charting our course. We have loads of experience in giving birth to all kinds of systems and giving them lives of their own. Personal relationships are one, requiring that we follow each step in the process and making good choices about going too slow or too fast, among other things. Making dinner is another, needing to be lovingly imagined, assembled, and perfected to serve its purpose. Both home and office projects fit the model too, starting with a seed that grows and is made to fit into the world around it.
So the fact that large systems go through much the same birthing process as small systems is a new discovery. To manage the end of growth for our Eco-civilization will call for all our personal wisdom for what’s right to help us understand what’s too slow and too fast, among other things, for the transition to an Eco-Civilization.
It will also have to do with money, so tied up in driving what seems like a growth imperative for civilization to operate, but is really just a choice of what to invest in. And now we need to invest in better things, like #FAIR_Money.
Allows different people to think of working on different paths, which all work out together naturally. Small steps needed for bigger ones, big strategies that make room smaller ones, things to wind down, things to build up, temporary measures for both.
Based on forest of cultural succession. A very loose model, much of it misleading for transforming our growth system. Might be applicable to the progress of humanity through its long series of failed civilizations, making cultural progress all along. Might be applicable to the ebb and flow of the ‘forests’ of political and intellectual fashion as some of us stumble around trying to imagine the future and others find ever more dastardly ways to say NO.
A wonderfully intuitive model, starting with local innovation in designing for internal human needs and external responsibilities builds familiarity with the natural system model of cells in the environment, envisioned to extend to our whole world to take better care of ourselves and the planet. Join the movement.
The only way to address our global limits is with global coordination, and for many things global coordination is absent. The nine planetary bounds referred to in Doughnut Economics are certainly critical, but there are a great many others going unmentioned, equally critical. These include:
escalating disaster risks due to overdevelopment and climate change
the growing long-term economic damage to capital resources,
government problem-solving failures
growing governmental lust for power
aging & inflexibility of ever more interdependent and complex systems
growing social polarization, ….. and other great systemic world crises.
Here’s my long list of planetary boundaries we are rapidly crossing, my Top 100+ Global Crises Growing with Growth. It is based on collecting lists from high-level reports, the major crises getting brief notice in the news, and my own description of flashpoints of unsustainable systemic change. Here’s a link to the 2021 Global Risks Report.
It is my belief that these kinds of growing systemic threats can only be reversed by a movement of global business and investors choosing to shift resources from pushing the harmful limits of wealth to fitting in with a healthy world society and environment.
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. .
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.
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Fig 2 The universal pattern of emerging systems that sustain their climax
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.
A tour of the evidence, from the 1780 origin of the greenhouse effect through its the major post-WWII acceleration
A preprint of a pending journal article of the same name is here. It’s a fairly short but thorough study, a data story, using the climate science we all know, to trace how humans have long organized our use of the earth to maximize the growth rate of our economic intervention in the climate. That exposes the fatal flaw of nearly all promoted solutions, the boundless plan for doubling our total energy use about every 33 years. Every kind of energy use for replacing fossil fuels would still then need to repeatedly double its disruption of earth systems, overshooting all planetary limits. That was actually the problem with fossil fuels, that if we had stabilized our energy use by about 1960 we would not have exceeded the earth’s long term buffering capacity and there would have been no climate crisis.
In the following figure you can see it quite directly from the long periods of constant compound growth in atmospheric CO2, before WWII and after. The ancient CO2 data comes from from ice-core air samples, until 1958, and the modern data from mountain top air sampling after that. WWII is seen as halting the accumulation of CO2, and the period after when we globally reorganized the economy using advanced science, technology, institutional and government cooperation to maximize the economy’s exponential rate of expansion.
What this implies is that climate change is not really caused by CO2.
Rather the climate crisis is being driven by our constant haste to reorganize the economy again and again to expand its conversion of resources into dollars as fast as possible. That we are not changing that organizational design of the economy would then seem to be the reason we are unsuccessful in getting agreement on how to reduce the quantitative reductions in CO2.
What is needed is to include in the economy’s equation for profits the value of the material, ecological, environmental, and cultural resources of the earth. The trick is to start with what you can measure, make the units “shares of the total,” and work to measure more. That would lead to a fuzzy but holistic and complete map of where we are really going economically. For reference, a model for that was proposed for inclusion in the UN’s SDGs in 2014, called “the World SDG.”
“California suffers greatly because the best elements of the population fail to cooperate for the common good as effectively as the bad elements cooperate for evil purposes.”
He then goes on to eloquently advocate and express confidence in the higher purposes of American society to heal our troubled world, to bring peace and justice to the world. But life is not a simple contest of good and evil. That’s a simple problem to solve, just let people join the side doing good.
What seems mistaken is portraying the evil of the world as being an absence of people doing good. As with the German holocaust of the 1930s and 40s. It is historically common for people who feel themselves to be doing good to then lose control of their societies, not realizing till much later they were doing great evil. In authoritarian societies, the leader commonly appears misled by the results of using their power to multiply their power, unaware of how very societally destructive their own behavior will become. That mechanism also applies to investors and governments now using wealth to multiply wealth, unaware of how destructive to the earth that will become. For the people in the societies doing the growing harm, like ours, “life seems normal”.
The larger difficulty is a “problem of normality”.
It’s almost too offensive for people to consider that their own good intentions and their own good feelings of cooperation in working together for the common good could be susceptible to evil. Examples of societies acting in complete contradiction to their own cultural values, and people having their good intentions twisted to evil purposes, seem like they must apply to “someone else”.
The author of the 2006 paper,Emergence and Evil, in the systems science journal E: CO, nicely documents in intimate detail how teams of good scientists, while living very normal academic & professional lives, also devoted their talents to making smallpox more contagious than it naturally is, for use as an efficient weapon. That is a hideously evil thing to do. The Soviet biological weapons program is also well studied from other views, usually addressing it from the simplistic “good v. evil” perspective. The real problem was good AND evil, a true evil that is not so simple, one taking the reader inside what true evil is. You find how very “normal” it is and how “good as evil” is the real problem behind people cooperating socially for evil purposes, like destroying the earth.
Working energetically for what we hate
That your social relations within a society “can feel good” while your labors are “doing evil” is the problem.
There’s some kind of “disconnect” between what makes us feel good about our work, that fools us about the nature of what our societies are doing as a whole are doing with it. As soon as you realize the nature of the relation, it’s fairly obvious why it’s a problem. It’s that the cells of an organism have a completely different environment from the body, and as cells of the human body, people are rather unobservant. That seems to be the “disconnect.” The cells of a body have their common genome that helps guide each one to act in the interest of the whole, but for quite a number of reasons, our social lives don’t have that for our societal lives.
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.
“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.”
I’ve been observing the UN SDGs as a natural systems scientist since 2013 when I saw with some surprise that the one topic both Country delegates and Civil Society groups could agree on was the wording of the ideals for global development. Even when the Co-Chairs, Ambassadors Korosi, and Kamu, began persistently asking for the discussion to turn to means and methods it never did. Ideals are wonderful, but the strains the SDGs are responding to are still growing, as the global disruption of human cultures by the growing intrusions of the economies of the world powers continues. That’s a problem not yet to be studied and discussed. Why? Partly to be “diplomatic” and partly not having a model for human cultures as living social organisms that carry all our shared ways of knowing living. Still we need a way to discuss the rapidly growing strains on human and ecological cultures caused by accelerating economic growth, a global cultural sickness.
As growth presses the limits of the earth and challenges the world to ever faster rates of change, the damage to nature and human society is more and more lasting. That’s a conclusion you can reach from many directions I think. The communities the SDGs aim to help seem mainly deeply rooted old cultures that are now “failing to thrive.” That is a living systems problem, not a numbers problem, as the SDGs were designed to solve. Failing to thrive is more like a “lack of meaning in life” dilemma, requiring a different approach. It’s also a symptom that one can use to map the problem worldwide and begin to look at its real dimensions.
Our accumulated ways of knowing and living are stored only in our cultures
Failure to thrive seems to hit both indigenous cultures worldwide and communities within economies where “creative destruction” is leaving lasting scars, like rural flight or outsourcing that hollows out a region. One example is the deeply alienated culture giving support to Donald Trump in the US, distressed by the world changing so much around them. There are also non-thriving local cultures in North, Central, and South Africa, as well as in the Middle East and North, Central, Southern and Eastern Asia, as well as in Oceana, Australia, North and South America. It’s not “the same old thing,” but a truly accelerating global plight, seeming to be of all the cultures that didn’t welcome or were disrupted by the intrusive growth of the world powers.
Human cultures are truly the crown jewels of humanity, though, where most of our gifts come from and are on display. They are the unique individual species of the human ecology. If you think about it, there is no other place on earth for the safekeeping of all our ancient accumulated ways of knowing and living. Each culture either crafts its separate way of knowing and living or branches off from another. They are our most important gift, evidently now absorbing a great deal of abuse.
With each culture being its own “knowledge system” it keeps people from making sense of any other culture, or even our own. If you trace the evidence, it does check out. We get the large part of our ways of understanding things during early childhood, by what you might call ‘osmosis’. Some say it’s “too close for us to see,” or that our mental way of seeing is functionally like a camera and its lens, that are never visible in the pictures they take. Cultures also have a deceptive “cellular design.” Their ways of knowing and living are internally shared, and not experienced from the outside. Even with extended immersion, an outsider does not develop a native feeling for another culture’s roots.
The great challenge we face today is that growth is an ever faster process of expansion and change, *doubling* its demands on the earth and humanity every 20-30 years. That radical rate of increasing demands is what eventually overwhelms the adaptability and resilience of people and the earth. Living things are being pushed to keep mechanically doubling numerical returns for culture-blind investors, as if the earth was unoccupied.
That’s how the English occupied North America, a hundred years after the first settlements rapid expansion began with importing slave labor then a wave of settlers swept across the rest of the continent, as if it were unoccupied. Elsewhere the economic powers built systems for globally harvesting resources, placing overseers where needed to manage their access, as if there was no one else there. Today it continues with how global capitalism still relates to the world, measuring its success in rates of accelerating expansion alone, as if no one is here. What’s most surprising perhaps, is how very effective our cultural blinders are in hiding our blindness to our own and other cultures from us. That is, hidden until you have an indicator like the glaring disruptiveness of ever more sudden change.
So what would relieve our fast growing societal distress? There’s a new business model expressly for responding to it, to use biomimicry for how nature builds thriving ecologies. If interested there’s a longer discussion article on how healthy cultures are the foundations of healthy economies and the business model for nourishing our cultures, that I refer to as “True Public-Private Partnerships” (tPPPs) discussed more in the essay Culture, Financing for Development and tPPPs.
The new business model begins like any business, organism, or culture does, with a period of innovating and vigorous growth, making profits to expand its systems. When the environment responds with increasing resistance or stiffening competition, the new strategy is to choose when and how to switch from maximizing profits for growth to maximizing long-term profitability to pay it forward. That’s done by refining systems to operate in smooth harmony with each other and their world. It’s a more gradual process but would produce more integrated development and be more profitable in the end, to combine human ingenuity and natural design.
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Do comment if this gives you questions or ideas!
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[*] Jessie Henshaw consults as HDS natural systems design science, sy@synapse9.com, offering insight into nature’s processes of negotiating change. She uses natural systems thinking strategies (NST) with “action research” (AR) and architectural “pattern language” (PL) methods of collaborative developmental design. The start is from recognizing that organizational processes in nature follow a familiar arc, beginning with bursts of innovation, and then refinement, leading to a final release (IRR). That is not unlike how we all do home or office projects, in stages of immature then maturing growth then release, also seen in reproduction. The system produced is first “framed out” with innovations then “filled in” with refinements and “delivered” as the release when ready. Her current related research article is on how our Systems Thinking co-evolvolves with our Systems Making.
The Growing Effort to Decouple GDP from Energy use and CO2, is having no apparent effect, raising serious questions about the nature of our plan.
The graph below (Figure 1) shows the 46-year record of world GDP PPP, Energy, and CO2, during which their growth rates have been in constant proportion to each other, called their “coupling.” The things to read are 1) the lack of accumulative departure from the steady trends, and 2) how closely the exponential trend lines (dotted) follow the data.
It shows that the long trend still holds despite both big efforts and bigger promises that accelerating growth using more efficient processes would separate the expanding economy from its impacts. Focusing so much on the “positive” completely disguised the big picture, though, that in 46 years there has been no accumulative effect at all. So there’s a lot to explain, yes, but the graphs below show persistent regular behaviors of the economy as a whole resilient system, a problem not yet faced at all.
Figure 1. Coupled Growth Trends of World GDP, Energy & CO2, showing how the three move together at proportional growth rates, as parts of a whole system.
That energy use and CO2 emissions are now still growing at the same rate as 40 years ago is strong evidence that none of the sustainability measures such as exceptional efficiency gains said to decouple the economy from its impacts, have had any effect at all.
The irregularly fluctuating curves below (Figure 2) show the annual rates of coupling if world Energy and CO2 growth rates to World GDP (PPP). The scale at the left shows their locally averaged growth rates as a fraction of the locally averaged GDP growth rates (to somewhat smooth the curves) going below zero once. The important thing is to notice is that the fluctuations vary around nearly horizontal trendlines.
It’s as if the economy is guided by an “invisible hand” keeping the fluctuations symmetric to the near constant trend. It says the fluctuations have been adding up to no effect. The likely cause of this is how a competitive economy naturally works. Technology and resources are supposed to be treated as being fungible assets, to be constantly reallocated to maximize profits. In the data, that functional coupling between the physical and financial systems of the economy is shown working rather smoothly, replacing less with more profitable assets to maximize the growth of profits for the whole. That stable coupling of managed assets to growth is then an apparent natural emergent property of the system as a whole, as a partnership between human cultures and the financial world’s effort to maximize growing profits.
Figure 2. Regular fluctuations of Energy and CO2 coupling with GDP, have repeatedly been claimed to be evidence of rapid decoupling… ignoring how very regularly the periods of apparent decline were followed promptly by reversals, as if irregular waves of water seeking the average level.
How the world community came to say that “sustainable development” would reverse this stable natural relationship between the economy and its resource uses is described in more detail in April 2014 in The Decoupling Puzzle. Small fluctuations do keep causing excitement for both devoted climate deniers and sustainability advocates, though, each picking out brief trends seeming to affirm their hopes, like the five periods of apparent rapid decline in CO2 to GDP coupling shown here. The real evidence is that the local fluctuations never seem to result in a change in the direction of the whole, like ripples on a pond that always level out. The latest dip in the CO2 coupling trend has been claimed as a sign of turning the corner by the IEA, clearly unaware of the consistent pattern of that metric repeatedly fluctuating around a near-zero trend.
Added perspective on the global data is gained by plotting the ratio of GDP to Economic Energy energy, the amount of wealth produced with a unit of energy. We call that variable “Economic Energy Efficiency,” the amount of economic wealth generated per unit of energy. Having its growth rate = 1/3 the GDP rate implying that improving efficiency contributes 1/3 of the value of energy to the world economy, growing Energy use contributing 2/3 if the value. That ratio demonstrates a general case of Jevons famous observation that in a growth economy efficiency results in growing rather than declining resource use and impacts. Any way one reasons it, what is crystal clear is that in the last 46 years strenuous effort to use efficiency for sustainability have had the opposite of the intended effect, recreating the original problem rather than solving it.
Figure 3 The share of GDP growth contributed by Economic Energy Efficiency proves Jevons principle that in a growth economy efficiency multiplies energy use and all its accumulative earth impacts.
So we need to be suspicious of the world policy to maximize growth at any cost. The costs are rapidly swelling not shrinking. The other coupled impacts of growth also causing how people live being forced to change ever faster creating major disruptions and dissension all over the world is one of the biggest, though even the NGOs are very slow in recognizing. In nature, growth is how all kinds of natural systems begin, but those we admire for their perfection turn to refining their designs before they climax rather than, driving their growth to the point of being torn apart of being exhausted.
That’s the trick. Maximizing growth might seem logical as a way for societies to keep up with social distress and debts, but now it’s accelerating them. So now we need to balance the attraction of short-term profits and connect them all the unbalanced disruptive changes that now surround us. We talk lightly about replacing people with robots, for example, overlooking that the robots only work for the banks. That’ll make people and governments ever more indebted and incapable of responding to climate change, for one problem. And that chain of consequences goes on and on, that is as long as we keep ignoring how natural growth systems that avoid the problem work. More disruption is not the solution, only moderation.
There’s an alternative business model that could serve as a general design for growth without disruption, one that switches to paying the profits forward once any debts have been paid back. Once understood, that is what would achieve truly integrated, thriving and self-limiting development, as biomimicry of ecosystem designs. It is discussed in more detail in the article linked from my next post, Culture, Finance-for-Development, and tPPPs.
Use biomimicry for how nature uses growth to build thriving and enduring systems.
It would be a way for businesses large or small to begin to experiment with how nature succeeds in creating beautiful, thriving, and purposeful systems. It’s a fairly simple formula. It’s also a practice we all know well for how to successfully relate to other people and how to successfully complete business or home projects. It starts with building up innovations to then select what to refine for making the result resilient and purposeful in its environment. If we approached every new relation or project by piling on new experiments with no turn toward refining something to last in the end, all the effort would go to waste in the end.
To start you study the similarity between nature’s way of building things to perfection and how we do our own home or office projects! They all take place in “three acts.” The first act is for “innovating,“ the second for “refining,“ and the third act the “release” of the finished product into its waiting environment (IRR). You see the same three acts in the birth cycle, and in the start-up of new businesses too, as well as the formation of new cultures and most every other kind of individual development. The trick is really to pay attention to the inspiration that starts it off, as something to fulfill. That lets you anticipate and move smoothly between the stages of emerging development, first adding up more innovations, then refining the ones worth keeping to the end. It’s what comes most naturally when we can see the whole effect.
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When you can see the whole it’s easy to recognize the point when adding more innovations begins to work against getting something finished, called a “point of diminishing marginal returns.” Of course on a home or office project what tells you it’s time to shift to finishing what you started is just sensing what can you finish while you have time and resources. For anything measurable, like wealth, the point of diminishing marginal returns is when it becomes more profitable to put efforts into getting things to market rather than try more experiments. To apply it to the world all you do is ask: “What is our real plan here?” and look around for how to perfect what we started, and at the right time stop taking on more and more that we probably won’t be able to finish. It’s a matter of shifting to pursuing achievable goals rather than hanging on to thinking ever bigger with no end in sight. Reaching for the right goal doesn’t necessarily make the work easy, of course, particularly for big personal, community or business projects. It just makes the work a lot better, and the end something fulfilling and rewarding.
I discuss that as a way to measure truly lasting success for the UN’s 2030 Agenda and its Sustainable Development Goals, instead of just “more, faster” the ways the UN’s goals are like the goals of business-as-usual, discussed in more detail in Culture, Finance-for-Development and PPPs.
JLH
Analysis Notes:
The global GDP PPP curves show IEA data from 1971 to 2008 spliced to overlapping World Bank Data from 1990 to 2016. The curves for global Energy are from BP statistics, and the Global CO2 curves show data from WRI.
The Energy and CO2 curves were each scaled to the GDP curves in proportion to their average growth rates for a graphically clear and honest comparison.
dy/Y is the ratio of the change in a measure over the total, like an interest rate or growth rate measures. I get smoother curves by blending a bit, using a center-weighted 5 point bracket.
