Gaian Economics living well within

planetary limits

Economic Key
Jonathan Dawson Ross Jackson Helena Norberg-Hodge
and Editors

Gaian Economics living well within
planetary limits

Permanent Publications

Introduction To The Four Keys Series

The Four Keys to the Design of Sustainable Communities

v

vi

G AIAN ECONOMICS

Contents

1 Shifting the Global Economy towards Sustainability

2 Community Banks & Currencies

vii

3 Right Livelihood

4 Local Economies

viii

5 Legal & Financial Issues

ix

The Editors
JONATHAN DAWSON is a sustainability educator and activist. He has spent much of the last 20 years working in Africa and South Asia as a researcher, author, project manager and consultant, primarily in the field of small enterprise and community economic development. He lives at the Findhorn ecovillage, where he teaches sustainability studies up to undergraduate level. He is past president of the Global Ecovillage Network and former Executive Secretary of GEN-Europe. He is author of Ecovillages: New Frontiers for Sustainability.

ROSS JACKSON, PhD, has for many years been an innovative leader in both the business and NGO worlds. He is chairman of Gaia Trust, a Danish-based charitable entity he co-founded in 1987 to promote a more sustainable and spiritual world. In his capacity as Gaia Trust Chairman, Ross, together with his Danish wife Hildur, is co-founder and major funder of the Global Ecovillage Network (GEN), and Gaia Education, and has supported hundreds of sustainability projects in dozens of countries over the years. He is author of And We ARE Doing it: Building an Ecovillage Future, the story of his conversion from businessman to environmental activist.

HELENA NORBERG-HODGE is a leading analyst of the impact of the global economy on cultures around the world. She is founder and director of the International Society for Ecology and Culture (ISEC), co-founder of the International Forum on Globalization, and is a recipient of the prestigious Right Livelihood Award. She is director of the Ladakh Project, renowned for its twenty-five years of groundbreaking work in sustainable development on the Tibetan plateau, an experience which led her to write the inspirational classic, Ancient Futures: Learning from Ladakh.

x

Foreword

xi

xi i

Introduction

xi i i

xi v

G AIAN ECONOMICS

IN T ROD U CT I ON

xv

MODULE 1

Shifting the Global Economy towards Sustainability

Contents
Rebuilding True Security in an Age of Insecurity The Great Turning: From Empire to Earth Community Sustainable Growth: An Impossibility Theorem Shifting the Global Economy Shifting Direction Beyond the Bailout: Agenda for a New Economy Adapting to the Lean Economy Descending the Energy Staircase with Tradable Energy Quotas (TEQs) Global Warming and the South Climate Solutions: Part I. Comparing Alternatives Climate Solutions: Part II. The Carbon Board

1

Indian activist, Vandana Shiva, lays out the core tenets of Earth Democracy; a philosophy that celebrates diversity, seeks to give a voice to species other than humans and attempts to balance rights with responsibilities.

Rebuilding True Security in an Age of Insecurity
Vandana Shiva

2

REB U I L D I NG T R U E SEC U R I TY I N AN AG E O F SEC URITY

3

4

G AIAN ECONOMICS

David Korten is co-founder and board chair of the Positive Futures Network, which publishes Yes! Magazine. He is one of the most eloquent critics of the corporate dominated world we live in, and outlines here his vision of a shift to a world based on the values of ‘Earth Community’ based on his book The Great Turning.

The Great Turning: From Empire to Earth Community
David Korten
By what name will future generations know our time?

A defining choice

5

6

G AIAN ECONOMICS

A turn from life

Paying the price

Troubling truths

T H E G REAT T U R N I N G: F ROM E MP I R E TO EA RT H COM MU N I T Y

7

Beyond denial

Global awakening

8

G AIAN ECONOMICS

T H E G REAT T U R N I N G: F ROM E MP I R E TO EA RT H COM MU N I T Y

9

Break the silence, end the isolation, change the story

Story power

10

G AIAN ECONOMICS

Herman Daly, an ecological economist, is a professor of public policy at the University of Maryland in the USA. He has received numerous awards for his work in economics and the environment, including the Right Livelihood Award. Here he discusses both the quantitative and qualitative aspects of economic growth in a thought-provoking challenge to conventional economic thinking.

Sustainable Growth: An Impossibility Theorem
Herman E. Daly

Challenging the economic oxymoron

11

12

G AIAN ECONOMICS

Limits to growth?

S U STA I NA B L E GROWTH : AN I MP O SSI B I L I TY TH EORE M

13

Alleviating poverty, not angelizing GNP

Defining the optimal scale

14

G AIAN ECONOMICS

Balancing non-renewable and renewable resources

S U STA I NA B L E GROWTH : AN I MP O SSI B I L I TY TH EORE M

15

Note

16

G AIAN ECONOMICS

References

Ross Jackson, PhD, economist and long time critic of neo-liberal thinking, critiques the main components of the global economic system and highlights how these could be changed to protect the environment, while serving people’s needs.

Shifting the Global Economy
Ross Jackson

Capita movement

17

18

G AIAN ECONOMICS

Free trade and protectionism

S H I FT I NG T H E G LO B A L ECO N OMY

19

Protection of the environment

20

G AIAN ECONOMICS

Conclusion

References

Helena Norberg-Hodge is a leading analyst of the impact of the global economy on culture and agriculture worldwide and a pioneer of the localisation movement. In this piece, she outlines the essential steps in shifting from economic globalisation to economic localisation, along with the social, ecological and economic benefits this would bring.

Shifting Direction
Helena Norberg-Hodge

21

22

G AIAN ECONOMICS

Policy shifts

S H I FT I NG D I REC TI O N

23

24

G AIAN ECONOMICS

Regulatory reforms

S H I FT I NG D I REC TI O N

25

26

G AIAN ECONOMICS

S H I FT I NG D I REC TI O N

27

Economic indicators

28

G AIAN ECONOMICS

S H I FT I NG D I REC TI O N

29

Grassroots initiatives

Personal shifts

David Korten is the co-founder and board chair of YES! magazine, founder of the People-Centred Development Forum, and widely read author of ‘When Corporations Rule the World’. In this article he explains how, in the wake of the bailout, we can avoid future large-scale financial crises through re-regulating the global economy

Beyond the Bailout: Agenda for a New Economy
David Korten

30

B EYON D T H E B A I LO U T : AGE N DA FO R TH E N E W ECONOMY

31

Clean up Wall Street

32

G AIAN ECONOMICS

Play by market rules

Self-finance the real economy

B EYON D T H E B A I LO U T : AGE N DA FO R TH E N E W ECONOMY

33

Measure what we really want

34

G AIAN ECONOMICS

Convert to debt-free money

B EYON D T H E B A I LO U T : AGE N DA FO R TH E N E W ECONOMY

35

David Fleming, PhD, is a British economist, who for many years worked as an independent consultant in environmental policy and business strategy for the financial services industry. Here, he gives some illuminating and unexpected insights into the post-peak-oil world that is looming on the horizon, and explains why re-localising is an economic, as well as ecological, necessity.

Adapting to the Lean Economy
David Fleming

The right size

36

A DA PT I NG TO TH E L EAN ECO N OMY

37

Regrettable necessities

A necessary and unregrettable shift

38

G AIAN ECONOMICS

On pottery

Going Local – where to start

A DA PT I NG TO TH E L EAN ECO N OMY

39

Prepare for the transition

Get involved in politics in some way

Keep cheerful

Rob Hopkins is best known as the founder of the transition town movement that activates local citizen groups to take responsibility for their own future in a world threatened by peak oil and climate change. Here, he comments on David Fleming’s proposal on how to reduce CO2 emissions while engaging ordinary citizens.

Descending the Energy Staircase with Tradable Energy Quotas (TEQs)
Rob Hopkins

40

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

41

42

G AIAN ECONOMICS

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

43

Helena Norberg-Hodge is founder/director of the International Society for Ecology and Culture (ISEC) and author of Ancient Futures: Lessons from Ladakh for a Globalizing World. Here, she reveals how globalisation fuels climate change and how localisation would reduce carbon emissions as well as alleviate poverty around the world.

Global Warming and the South
Helena Norberg-Hodge

44

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

45

Globalising pollution and poverty

46

G AIAN ECONOMICS

Localising production, increasing prosperity

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

47

48

G AIAN ECONOMICS

Ross Jackson is the co-founder and chairman of Gaia Trust, the primary funder of the Global Ecovillage Network and Gaia Education. He holds a PhD in Operations Research (the theory and practice of problem solving) and, for many years, worked in the business world, specialising in investment theory and international finance. Here he applies his professional training to the issue of tackling global warming in an ideal world without political and ideological constraints.

Climate Solutions: Part I Comparing Alternatives
Ross Jackson
Summary

Introduction

49

50

G AIAN ECONOMICS

CO2 target

Defining the criteria

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

51

52

G AIAN ECONOMICS

National or regional schemes
EU Emissions Trading Scheme (ETS)

Carbon Tax

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

53

Tradable Energy Quotas (TEQs)

54

G AIAN ECONOMICS

FEASTA

Global schemes
Contraction and Convergence

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

55

Kyoto Protocol

56

G AIAN ECONOMICS

Earth Atmospheric Trust (EAT)

Kyoto2

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S

57

Oil Depletion Protocol

58

G AIAN ECONOMICS

55 50 45 40 35

Oil & Gas Production Profiles
2006 Base Case

Gboe

30 25 20 15 10 5 0 1930 1940 1950 Regular Oil 1960 1970 1980 1990 2000 Polar 2010 NGL 2020 Gas 2030 2040 2050

Heavy etc.

Deepwater

Non-Con Gas

CL I M AT E S OLU TI O N S: PART 1 . COMPAR IN G ALTE RN ATIV E S
1 Contraction & Convergence Kyoto Protocol EU’s Emission Trading System Carbon Tax Tradable Energy Quotes FEASTA Earth Atmosphere Trust Kyoto2 yes no no no yes yes yes yes 2 no no no yes yes yes yes yes 3 *a *b *b no yes no no yes 4 *a no no *a no no yes yes 5 yes no no *a *c *c *c no 6 no yes no no no no yes yes

59

100 90

Global Emissions (GtCO2e/yr)

80 70 60 50 40 30 20 10 0 2000 2010 2020 2030 2040 2050 2060 2070

450ppm CO2e 550ppm CO2e Business as usual

2080

2090

2100

Meeting the Criteria

60

G AIAN ECONOMICS

Three scenarios

References

Climate Solutions: Part II The Carbon Board
Ross Jackson
Introduction

Who buys the permits?

61

62

G AIAN ECONOMICS

Who gets the income from permit sales?

The Carbon Board Scheme

CL I M AT E S OLU TI O N S: PART 2 . THE C AR BO N BOA RD

63

Control of The Carbon Board

The Role of Primary Producers

64

G AIAN ECONOMICS

Permit costs

Trading permits

National variants

CL I M AT E S OLU TI O N S: PART 2 . THE C AR BO N BOA RD

65

Fairness issues

Non-fuel emissions

Is the scheme realistic?

66

G AIAN ECONOMICS

What if some nations will not participate?

References

MODULE 2

Community Banks & Currencies

Contents
Financial Stability: A Case for Complementary Currencies The Politics of Money Reforming the Financial Casino The Saber: A Complementary Currency for Learning A Tale of Two Ecovillages: Reviving the Health of Local Communities Beyond Equality:Work, Money, and Equality in the Economic Fellowship of the Camphill Communities The Second Foundation at The Farm The Permaculture of Pensions: Making Savings Work for People and Planet Freecycle: Something for Nothing

67

Based in Lebensgarten ecovillage in Germany, Margrit Kennedy has perhaps done more than anyone, over several decades, to critique conventional money systems and to pioneer new complementary currencies. This article provides a comprehensive analysis of the various ways in which money in its current guise is a key driver of today’s unsustainable, inequitable economy. She also makes the case for regionally-based complementary currencies and describes numerous schemes that are already in operation.

Financial Stability: A Case for Complementary Currencies
Margrit Kennedy
Executive summary

68

FI NA N CI A L STA B IL ITY: A C A SE FO R COMPL E M E N TA RY C URRE N C IE S

69

Reasons for my look at monetary sustainability

The hidden problem – compound interest

70

G AIAN ECONOMICS

Three misconceptions

FI NA N CI A L STA B IL ITY: A C A SE FO R COMPL E M E N TA RY C URRE N C IE S

71

72

Figure 1

G AIAN ECONOMICS

b

Growth

a

Time

Three results

FI NA N CI A L STA B IL ITY: A C A SE FO R COMPL E M E N TA RY C URRE N C IE S

73

Comparison of Interest Paid and Gained
In ten groups of households of 3.8 million each reference year 2000. All values in thousands of Euros per household per year.

80 70 60 50

Interest gained on monetary and fixed assets (incl. bank fees) Interest paid for monetary and fixed assets (incl. bank fees)

Ths. €

40 30 20 10 0 1 2 3 4 5 6 7 8 9 10

Household Groups

74

G AIAN ECONOMICS

FI NA N CI A L STA B IL ITY: A C A SE FO R COMPL E M E N TA RY C URRE N C IE S

75

Three historical solutions

76

G AIAN ECONOMICS

Complementary currencies and the use of demurrage

FI NA N CI A L STA B IL ITY: A C A SE FO R COMPL E M E N TA RY C URRE N C IE S

77

Differences between complementary and traditional currencies

78

G AIAN ECONOMICS

Regional complementary currencies

FI NA N CI A L STA B IL ITY: A C A SE FO R COMPL E M E N TA RY C URRE N C IE S

79

80

G AIAN ECONOMICS

Conclusions

Literature

Celebrated green economist, Hazel Henderson, draws upon her extensive experience of complementary currencies to pinpoint the manifold weaknesses with current monetary systems and to describe various alternatives. She provides a good historical contextualisation of the emergence of alternative money systems.

The Politics of Money
Hazel Henderson

81

82

G AIAN ECONOMICS

T H E P OL I T I CS O F MO N E Y

83

84

G AIAN ECONOMICS

T H E P OL I T I CS O F MO N E Y

85

Ross Jackson was for many years a management consultant specializing in the area of international finance, investments, portfolio theory and currency markets, where his clients included many of the international banks which found themselves in severe difficulties in the financial crisis of 2008. Ross is founder/chair of Gaia Trust, Denmark and majority shareholder in organic foods wholesaler Urtekram A/S, Denmark.

Reforming the Financial Casino
Ross Jackson

86

REFORM I N G T H E F I N AN C I AL C A SI N O

87

Deregulation

Credit default swaps

88

G AIAN ECONOMICS

Local banking undermined

The rich get richer

REFORM I N G T H E F I N AN C I AL C A SI N O

89

Recommendations

90

G AIAN ECONOMICS

Bernard Lietaer, renowned international expert in currency systems, both conventional and complementary, describes an ingenious proposal he has come up with for an educational currency in Brazil. His proposal would enable the benefits of a complementary currency to ripple through the entire educational system.

The Saber: A Complementary Currency for Learning
Bernard Lietaer

The Brazilian Saber

91

92

G AIAN ECONOMICS

T H E S A BER : A COMPL E ME N TARY C U R R E N C Y FOR LEARN ING

93

“Saber” Complementary Currency System = Learning Multiplier

Phase 1

Saber allocation among schools

Phase 2

Help for elderly & handicapped paid in Saber

Cashing in of Sabers for National Currency at 50% of face value

7 year-olds

10 year-olds

12 year-olds

15 year-olds

Payment of University Tuition

References

Jonathan Dawson is a resident of the Findhorn Foundation ecovillage in Scotland. In this piece, he describes the community economies of both Findhorn and the Italian ecovillage, Damanhur. Both communities have developed distinctively dynamic and diverse economies at least in part because they have their own community currencies and systems for enabling members to invest in community enterprises.

A Tale of Two Ecovillages:
Reviving the Health of Local Communities
Jonathan Dawson

94

A TA L E OF T WO ECOV I L L AG E S: R E V I V I NG TH E H EALTH OF LOCAL COM MU N I T I E S

95

96

G AIAN ECONOMICS

A TA L E OF T WO ECOV I L L AG E S: R E V I V I NG TH E H EALTH OF LOCAL COM MU N I T I E S

97

98

G AIAN ECONOMICS

Long-time communard and author, Jan Martin Bang of Norway describes the workings of the economies of Camphill communities. These are communities in which people with and without special needs live side by side. Though not formally part of the ecovillage family, they share many characteristics. Jan describes how it is possible to create webs of mutuality and interdependence within communities so that money is little required for the provision of needs.

Beyond Equality:
Work, Money, and Equality in the Economic Fellowship of the Camphill Communities
Jan Martin Bang
Work

99

1 00

G AIAN ECONOMICS

B EYON D EQ UA L I T Y: TH E ECO N OM I C F E L LOW SH IP OF TH E C AMPH ILL COM MU N I T I E S

101

Money

1 02

G AIAN ECONOMICS

Equality

Ecovillage elder and former President of GEN, Albert Bates, describes a cooperative economic model he has helped to design and manage at The Farm ecovillage in Tennessee. This attempts to marry the best aspects of private and communal economies into a system for mutual provision of services including pension provision, accounting and legal services and common purchases of tools and provisions.

The Second Foundation at The Farm
Albert Bates

How it started

103

How it works

1 04

T H E S ECOND FO U N DAT I O N AT THE FAR M

105

Findhorn resident Jonathan Dawson explores how conventional pension schemes represent an important source of capital for multinational business. In this respect, they are contributing to vast social and ecological destruction and moreover, represent a very risky investment for those wishing for a secure retirement. The only true security, he argues, is healthy communities and ecosystems of the type that ecovillages are helping to build. The trick for ecovillages is to design mechanisms for secure investment in ecovillage-based projects and enterprises.

The Permaculture of Pensions:
Making Savings work for People and Planet
Jonathan Dawson

1 06

T H E P ERM ACU LTU R E O F P E N SI O N S: MAK I N G S AV IN GS WORK FOR PEOPLE AN D PLAN ET

107

1 08

G AIAN ECONOMICS

Freelance writer, Simon Bradbury, describes the Freecycle scheme that enables people to offer unwanted goods between themselves for free in a growing number of communities around the world. Simon Bradbury is a freelance journalist. He lives with his wife Jan and his children in York, England, and is part of the York Freecycle group.

Freecycle: Something for Nothing
Simon Bradbury

109

1 10

G AIAN ECONOMICS

Our story

Other remarkable stories

FREECYCL E : S OM ETH I N G FO R N OTHI N G

111

How to join

Setting up a group

MODULE 3

Right Livelihood

Contents
Buddhist Economics Simplicity: A Cool Lifestyle for a Hot Planet Sarvodaya means ‘Everybody Wakes Up’ Designing your Local Economy Rules for a Local Economy In Defence of Pleasure: The Slow Food Movement Tallying National Happiness Economics of Happiness

113

This is a classic text in which E.F. Schumacher sets out the basis for a moral economics by comparing the Buddhist and Western materialist approaches to the subject. It puts people and the planet back at the heart of the matter, with ‘economics’ as a means towards greater health and happiness rather than as an end in itself.

Buddhist Economics
E. F. Schumacher

1 14

B U D D H I ST ECO N OM I C S

115

1 16

G AIAN ECONOMICS

B U D D H I ST ECO N OM I C S

117

1 18

G AIAN ECONOMICS

B U D D H I ST ECO N OM I C S

119

1 20

G AIAN ECONOMICS

Endnotes

Duane Elgin is an American author, speaker, educator, consultant, and media activist. His name is especially linked to the topic of voluntary simplicity, on which he has written several publications, the latest being a revised 2nd edition of Voluntary Simplicity (New York: Harper Collins, 2010). Based on his own experience over 30 years, Duane makes a heartfelt case for the multiple merits of cultivating a simple life.

Simplicity: A Cool Lifestyle for a Hot Planet
Duane Elgin

121

1 22

G AIAN ECONOMICS

S I M P L I CI T Y: A CO O L L I F E STY L E FO R A H OT P LAN ET

123

Which kind of simplicity fits our world?

1 24

G AIAN ECONOMICS

A garden of simplicity

S I M P L I CI T Y: A CO O L L I F E STY L E FO R A H OT P LAN ET

125

1 26

G AIAN ECONOMICS

Celebrated deep ecologist, Joanna Macy, describes the work and philosophy of Sarvodaya, emphasizing the spiritual roots of its activism. Sarvodaya is the largest single member of the Global Ecovillage Network, working as it does with over 10,000 communities throughout Sri Lanka.

Sarvodaya means ‘Everybody Wakes Up’
Joanna Macy

1. Affirm and nourish the spiritual roots of action

127

1 28

G AIAN ECONOMICS

2. Have practical actions people can undertake together

3. To build enduring peace, restore the land

S A RVODAYA M EAN S “ E V E RY BO DY WA K E S U P ”

129

4. Think long-term

Hildur Jackson, the primus motor of Ecovillage Design Education, and co-founder of Gaia Trust, Denmark and GEN, provides an historical contextualization for the ecovillage and engaged spirituality movements and describes the importance of strong communities in the rebuilding and designing of the ‘love economy’.

Designing your Local Economy
Hildur Jackson

From 1900-1970

From 1970-2000

1 30

D ES IG N I NG YO U R LO C A L ECO N OMY

131

21st century: ecovillages, localisation and engaged spirituality movements

Reclaiming civil society

1 32

G AIAN ECONOMICS

Market or love economy

Informal economy/subsistence economy

D ES IG N I NG YO U R LO C A L ECO N OMY

133

Co-housing and ecovillages as modernisations of the welfare state

1 34

G AIAN ECONOMICS

Love economy activities

D ES IG N I NG YO U R LO C A L ECO N OMY

135

Local currencies in ecovillages

Designing for sustainable abundance

Kentucky farmer, poet and essayist, Wendell Berry, sets out the key moral choices in supporting the development of living local economies.

Rules for a Local Economy
Wendell Berry

1 36

RU L ES FO R A LO C A L ECO N OMY

137

The Slow Food movement is a celebration of the rich diversity in our food cultures worldwide and of the key role that small producers play in maintaining them. Here, Aldra Robinson describes the movement and expresses her ‘gratitude for the gifts of a healthy planet and a healthy people, strong communities and the pleasure of delicious food’.

In Defence of Pleasure: The Slow Food Movement
Aldra Robinson

1 38

I N D EFEN CE OF P L EA SU R E : THE SLOW FO O D MOVEMENT

139

1 40

G AIAN ECONOMICS

I N D EFEN CE OF P L EA SU R E : THE SLOW FO O D MOVEMENT

141

Amidst concern in many corners that Gross Domestic Product (GDP) is a flawed measure of human and ecological wellbeing, a number of other more rounded and nuanced wellbeing indicators have emerged in recent years. Here, an editorial from The Japan Times takes a look at one of these – Gross National Happiness.

Tallying National Happiness
The Japan Times, Editorial: Oct. 24, 2004

1 42

TA L LY I N G NAT I O N AL H AP P I N E SS

143

Helena Norberg-Hodge is a leading analyst of the impact of the global economy on culture and agriculture worldwide and a pioneer of the localisation movement. She is the founder/director of the International Society for Ecology and Culture (ISEC) and author of Ancient Futures: Lessons from Ladakh for a Globalizing World. Here, she reveals how globalisation fuels climate change. She also shows how localisation would reduce carbon emissions as well as alleviate poverty around the world.

Economics of Happiness
Helena Norberg-Hodge

1 44

ECO NOM I C S OF H AP P I N E SS

145

1 46

G AIAN ECONOMICS

ECO NOM I C S OF H AP P I N E SS

147

Local Economies

MODULE 4

Contents
The Specialization Trap Fifty Million Farmers Why You Should Think Local First Reclaiming our Future: Reclaiming our Food Profits of Place Short Tails: The Coming Small-Mart Revolution Economics of Solidarity: Good Practice from within the Ecovillage Family The Economy of Auroville Will Earthaven Become a ‘Magical Appalachian Machu Picchu’? Creating and Managing an Ethical Business: Permanent Publications Powerdown and Permaculture: At the Cusp of Transition

149

Drawing on a review of the history of previous civilizations, peak oil commentator John Michael Greer makes the case for smallscale decentralised economies in a low-energy future.

The Specialization Trap
J.M. Greer

1 50

T H E S P ECI A L I ZATI O N TR AP

151

1 52

G AIAN ECONOMICS

T H E S P ECI A L I ZATI O N TR AP

153

Celebrated peak oil author and educator Richard Heinberg explains why the US will need 50 million farmers to feed its population as fossil fuels begin to run down.

Fifty Million Farmers
Richard Heinberg

1 54

FI FT Y M I L L I ON FAR ME R S

155

1 56

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

157

1 58

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

159

Intensifying food production

1 60

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

161

The Twenty-First Century: De-Industrialization

1 62

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

163

Examples and strategies

1 64

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

165

The key: more farmers!

1 66

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

167

If we do this well …

1 68

G AIAN ECONOMICS

FI FT Y M I L L I ON FAR ME R S

169

Attorney and economist Michael Shuman is author of The Small-Mart Revolution: How Local Businesses Are Beating the Global Competition and he has a blog at www.smallmart.org. Here he gives ten good reasons why consumers should favour locally-produced goods.

Why you should Think Local First
Michael H. Shuman

1 70

WH Y YO U S H OUL D TH I N K LO C A L F I R ST

171

1 72

G AIAN ECONOMICS

WH Y YO U S H OUL D TH I N K LO C A L F I R ST

173

1 74

G AIAN ECONOMICS

Every year, millions of small farms and businesses are killed off in the march of globalisation. Helena Norberg – Hodge of ISEC explains the root causes of this insidious process, the negative results affecting us all and what we can do to turn it around. The local food movement is a key element of this renewal of food and farming. It is one of the most successful grassroots examples of localisation in action, sweeping the world and gaining momentum with each passing day.

Reclaiming Our Future: Reclaiming Our Food
Helena Norberg-Hodge

175

1 76

G AIAN ECONOMICS

Re-localising food: it’s already happening

RECL A I M I N G OU R F U TU R E : R EC L AI M I NG O U R FOOD

177

1 78

G AIAN ECONOMICS

Tipping the scales towards local production

RECL A I M I N G OU R F U TU R E : R EC L AI M I NG O U R FOOD

179

Josh Harkinson supports his local coffee shop in Houston, Texas,which, unlike Starbucks, also serves tequila. His work has appeared in magazines such as E, San Francisco, and Harper’s, and he is a staff writer for the Houston Press.

Profits of Place
Josh Harkinson

1 80

P ROFI TS OF P L AC E

181

1 82

G AIAN ECONOMICS

P ROFI TS OF P L AC E

183

1 84

G AIAN ECONOMICS

Michael Shuman, an attorney and economist, is Vice President for Enterprise Development for the Training & Development Corporation (TDC) of Bucksport, Maine. Here he describes the growing competitiveness of small enterprises in the economies of countries across the world.

Short Tails: The Coming Small-Mart Revolution
Michael H. Shuman

185

1 86

G AIAN ECONOMICS

1. Produce local, sell global

S H ORT TA I L S : TH E COMIN G SMAL L- M ART R E VOLUTION

187

2. Find local niches

1 88

G AIAN ECONOMICS

3. The dominance of local services

S H ORT TA I L S : TH E COMIN G SMAL L- M ART R E VOLUTION

189

Role of economies of scale

1 90

G AIAN ECONOMICS

P ROFI TS OF P L AC E

191

Findhorn resident, and Global Ecovillage Network president Jonathan Dawson, provides an overview of economic good practice from within the global ecovillage family.

Economics of Solidarity:
Good Practice from within the Ecovillage Family
Jonathan Dawson

1 92

ECONOM I CS OF SO L I DAR I TY: GO O D P R AC TI C E FROM WITH IN TH E ECOV I LLAG E FAMILY

193

1 94

G AIAN ECONOMICS

Marti Mueller is a social-environmental activist, writer, and photographer who divides her time between Paris and the celebrated Indian ecovillage, Auroville. Here, she describes the workings of the Auroville economy.

The Economy of Auroville
Marti Mueller

Business with a difference

195

1 96

G AIAN ECONOMICS

Becoming more sustainable in India

Creative thinking

T H E ECONOMY O F AU ROV I L L E

197

Auroville’s specific challenge

Research on branding

Foodlink co-operative

1 98

G AIAN ECONOMICS

Auroville’s internal economy

Times are changing

T H E ECONOMY O F AU ROV I L L E

199

Diana Christian, author of Finding Community: How to Join an Ecovillage or Intentional Community, and editor of the free online newsletter Ecovillages (EcovillageNewsletter.org), describes the various enterprises that lie at the heart of the Earthaven community and explores the challenges and pitfalls of developing a private economy within a communal experiment.

Will Earthaven become a ‘Magical Appalachian Machu Picchu’?
Diana Leafe Christian

The economics of a rural ecovillage

2 00

W I L L EA RT H AVE N B ECOM E A “ MAGI C AL A P PALAC H IAN MACHU PICC H U”?

201

Permaculture and cottage industries

2 02

G AIAN ECONOMICS

Food, glorious food!

W I L L EA RT H AVE N B ECOM E A “ MAGI C AL A P PALAC H IAN MACHU PICC H U”?

203

Ambivalence about business and agriculture

2 04

G AIAN ECONOMICS

Seeds of the future

Editor of the UK-based award-winning Permaculture Magazine, Maddy Harland, tells the story of Permanent Publications, and describes the ecological design thinking behind the company

Creating and Managing an Ethical Business: Permanent Publications
Maddy Harland

205

2 06

G AIAN ECONOMICS

Water

Heating

Lighting

C REAT I N G A ND M AN AGI NG AN ETHI C AL B U SI N E SS : PE RMAN E N T P UBLIC ATION S

207

Ventilation

Windows, doors and other fittings

Office equipment

Waste

Our garden

2 08

G AIAN ECONOMICS

Travel and sourcing locally

Community

C REAT I N G A ND M AN AGI NG AN ETHI C AL B U SI N E SS : PE RMAN E N T P UBLIC ATION S

209

Wish list

2 10

G AIAN ECONOMICS

Permaculture design

Integrated thinking

C REAT I N G A ND M AN AGI NG AN ETHI C AL B U SI N E SS : PE RMAN E N T P UBLIC ATION S

211

References

Rob Hopkins – permaculturist and founder of the Transition Towns movement – asks whether the permaculture movement is capable of influencing society as a whole when the coming peak oil energy crisis bites – or should we just head for the hills?

Powerdown and Permaculture: at the Cusp of Transition
Rob Hopkins

Peak oil – the great oversight of our times

2 12

POWERD OW N AN D P E R MAC U LTU R E : AT THE C US P OF TRAN S ITION

213

Challenging permaculture

My own experience

2 14

G AIAN ECONOMICS

Energy descent planning

POWERD OW N AN D P E R MAC U LTU R E : AT THE C US P OF TRAN S ITION

215

Transition Town Totnes

Transitionary times

2 16

G AIAN ECONOMICS

Permaculture for the 21st century

POWERD OW N AN D P E R MAC U LTU R E : AT THE C US P OF TRAN S ITION

217

References

MODULE 5

Legal & Financial Issues

Contents
Financial and Legal Issues in Ecovillage and Enterprise Formation Making a Business Plan Preparing Feasibility Studies and Business Plans Legal Entities for owning Ecovillage Land Buying in – the Effect of an Ecovillage’s Economic Choices

219

Findhorn resident Alex Walker describes the various options open for both financing and for legal incorporation of organizations and enterprises.

Financial and Legal Issues in Ecovillage & Enterprise Formation
Alex Walker
Types and sources of finance

2 20

F I N A NCI A L A N D L EGAL I SSU E S I N ECOV I L L AG E AN D E N TE RPRIS E FORMATION

221

Choosing legal structures

Financial strategy

2 22

G AIAN ECONOMICS

Companies limited by guarantee

Co-operatives

F I N A NCI A L A N D L EGAL I SSU E S I N ECOV I L L AG E AN D E N TE RPRIS E FORMATION

223

Bona fide co-operatives

Community Benefit Societies

Among other things, Ross Jackson is CEO of Gaia Technologies A/S, Denmark – the venture capital daughter company of Gaia Trust – that has given financial support to a number of ‘green’ start-ups in Denmark. He is therefore well acquainted with the evaluation of business plans from an investor’s viewpoint.

Making a Business Plan
Ross Jackson

Why bother?

Executive summary

2 24

M A K I N G A B U SI N E SS P L AN

225

Background

Market analysis

2 26

G AIAN ECONOMICS

Products

Organization

Financial

M A K I N G A B U SI N E SS P L AN

227

Business plan software

Findhorn resident Alex Walker describes the outline design of feasibility studies and business plans.

Preparing Feasibility Studies and Business Plans
Alex Walker

2 28

PREPA RI N G FEA S I B I L I T Y STU D I E S AN D BU SI N ESS PLAN S

229

Author and former editor of Communities magazine, and current editor of the on-line Ecovillage Newsletter, Diana Christian, looks in depth at the different legal entities to choose from for land ownership in an ecovillage. She lives at Earthaven Ecovillage in North Carolina.

Legal Entities for Owning Ecovillage Land
Diana Leafe Christian

Why you need a legal entity – and before buying your property

2 30

L EG A L ENT I T I ES FO R OW N I NG ECOVIL L AGE L AN D

231

Why form a legal entity?

2 32

G AIAN ECONOMICS

Checklist for choosing a legal entity

L EG A L ENT I T I ES FO R OW N I NG ECOVIL L AGE L AN D

233

Corporations, non-profits, limited liability, double taxation

2 34

G AIAN ECONOMICS

L EG A L ENT I T I ES FO R OW N I NG ECOVIL L AGE L AN D

235

Ecovillage resident, Tony Sima, explores some of the different legal structures open to ecovillages as well as differing models for employment and the sharing of incomes and assets.

Buying in – the Effect of an Ecovillage’s Economic Choices
Tony Sima
How much does it cost to live there?

Fully communal

2 36

B U Y I N G I N – T HE E F F EC T O F AN ECOV I L L AG E ’S ECONOMIC C H OIC E S

237

Rental property

Leased land – no buy-in

Leased land, with buy-in fee

2 38

G AIAN ECONOMICS

Homes at market rate

What conclusions can we draw?

Inspiration for Self Reliance

some other books from

PERMANENT PUBLICATIONS

ALL THESE AND MUCH MORE AVAILABLE FROM:

The Green Shopping Catalogue www.green-shopping.co.uk
or any good bookshop

Positive Inspiration for Creating a Better World
Permaculture Magazine helps you live a more natural, healthy and environmentally friendly life. Permaculture Magazine offers tried and tested ways of creating flexible, low cost approaches to sustainable living. It can help you to:

Make informed ethical choices Grow and source organic food Put more into your local community Build energy efficiency into your home Find courses, contacts and opportunities Live in harmony with people and the planet
Permaculture Magazine is published quarterly for enquiring minds and original thinkers everywhere. Each issue gives you practical, thought provoking articles written by leading experts as well as fantastic ecofriendly tips from readers!

permaculture, ecovillages, ecobuilding, organic gardening, sustainable agriculture, agroforestry, appropriate technology, downshifting, community development, human-scale economy ... and much more!
Permaculture Magazine gives you access to a unique network of people and introduces you to pioneering projects in Britain and around the world. Subscribe today and start enriching your life without overburdening the planet! Every issue of Permaculture Magazine brings you the best ideas, advice and inspiration from people who are working towards a more sustainable world.
Permanent Publications The Sustainability Centre, East Meon, Hampshire GU32 1HR, UK Tel: 01730 823 311 Fax: 01730 823 322 (Overseas: int code +44-1730) Email: subscriptions@permaculture.co.uk Web: www.permaculture.co.uk

Sign up to vote on this title
UsefulNot useful