Regenerative Capitalism:

Regenerative Capitalism:!
Building an Economic Engine for Ecological Civiliza4on Dr. Sally Goerner!
Capital Institute!
http://capitalinstitute.org/!
The Paradox of Economic “Growth”!
Profits and GDP are up, but people & planet are down!
The Impasse!
Saving the Planet vs Creating Wealth!
The Cracks in the Bulwark!
The true nature of the international (economic) system
under which we were living was not realized until it failed.!
- Karl Polanyi, The Great Transformation, 1944
The Shift We Need!
Money!
Economy!
People !
& Planet!
Energy pressures drive the emergence of [email protected] & lead to a rigorous theory of social dynamics Can human social [email protected] be described in terms common to other sciences, most specifically, as an energy process? …Energy processes provide a basis for explaining, comparing, and measuring complex social [email protected] Using [email protected] ecological energy-­‐flow studies as background…this [email protected] enables [us] to analyze society in terms of natural [email protected] of self-­‐
organizing energy forms. Richard Newbold Adams, 1988 Organized Complexity: The Science of Nature’s Design Universal paUerns & principles of flow connect physics to the social sciences in a way that enhances instead of harms them Simple Systems Organized Complexity Disorganized Complexity Warren Weaver, 1948 The Exciting Possibility!
The science of “flow” can replace today's flawed economic ideology with nature's own laws of health & development The Economic Cycle
The Carbon Cycle in Florida Wetlands
Robert Ulanowicz, 1996 The Goal of Regenerative Capitalism !
Permanent Sustainability Use nature’s laws of systemic health to develop economies that naturally and [email protected] produce social, economic and environmental health. The Copernican Flip in Economics!
The science of flow puts human networks at the center of vitality not maximum shareholder profit Money Money-­‐centered view Human-­‐centered view The Challenge!
The human infrastructure required to build a [email protected] [email protected] does not yet exist. It must be built and grown. We need to learn HOW. Flow-System Values Change the Picture!
Entwined and co-­‐evolving with each other and the web of life diversity in community [email protected] (self-­‐renewing) interdependence naturally self-­‐sustaining reciprocity resilient learning long-­‐term focus co-­‐[email protected] [email protected] development inclusive -­‐ everyone wins nested systems (fractals) hUp://www.slideshare.net/FrancesPlectranthus/trans-­‐health-­‐[email protected] Systemic Health & Holistic Wealth: Inclusive and Interdependent!
Source: Ethan Roland & Gregory Landua, Regenera+ve Enterprise, Op+mizing for Mul+-­‐Capital Abundance (2013)
The Next (Ecological) Stage of Civilization!
these impasses & cracks are signs of [email protected] @mes Integral – Ecosystem or Web Modern -­‐ Machine Medieval -­‐ God’s Design Common principles & precise paUerns of flow help us understand and measure systemic health in social systems Common Principle: CIRCULATION Precise PaUern: FRACTAL Fractal arrangements are pervasive because they support systemic [email protected] The same [email protected] holds across scales Lungs River Delta Tree US Electrical Grid Fractal structures help catalyze !
critical city functions & improve circulation!
A Fractal City Nikos Salingaros & Jane Jacobs PRINCIPLE: Balance is [email protected] to systemic health Small, medium & large → RESILIENCE & EFFICIENCY; The Window of Vitality Too diverse & disorganized Stagna4on Small, diverse, flexible Too big & rigid Collapse Big, efficient, focused Robert Ulanowicz, 1996 The Goldilocks Rule in Banking Proper monetary [email protected] requires [email protected] that are “JUST RIGHT” for each scale MEGA BANKS •  Needed for large-­‐scale needs •  Small-­‐scale uneconomic REGIONAL BANKS •  Support regional networks SMALL-­‐SCALE BANKS •  Support small-­‐scale commerce •  Know customer & community •  Invested in success of the loan The Dangers of Unbalanced Banking!
Economic necrosis Self-feeding Return Loops (autocatalysis)!
Vitality comes from circulation & reinvestment, !
not outsourcing and austerity !
Power-­‐law paUerns help us [email protected] & assess economic networks Robert Anthony, 1989 Our “Top 10” Measures of Systemic Health!
Take-away #1!
[email protected] economic vitality comes from people Mining the rich, untapped ore of
human desire to participate in
holistic community value creation
Field Guide to [email protected] in a [email protected] Economy (Susan Chang, Capital [email protected]) Take-away # 2!
A rigorous science of social systems is possible Precise universal paUerns and principles let us understand, measure & create targets for systemic health Take-away #3!
[email protected] capitalism creates a [email protected] economic [email protected] We are called to be the architects
of the future, not its victims.!
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-- Buckminster Fuller!
The Secret is Simple: Build healthy human networks!
Reinvest!
Circulate !
Reliable Inputs!
Healthy Outputs!
Maintain Balance!
8 Key Principles of Regenera4ve Capitalism •  In right [email protected] •  Views wealth [email protected] •  [email protected], [email protected], responsive •  Empowered [email protected]@on •  Honors community and place •  Edge effect abundance •  Robust circulatory flow •  Seeks balance