Re-Imagining Economic Systems: Untangling the tongue-tied transition from capitalism to cooperation.
It is so easy to get overwhelmed thinking about the term “economic systems.” As the words roll off my tongue I envision millions of pieces of string binding everyone in the world together: the laypeople to the mega corporations and governments, to the mom n’ pop store down the street, to the big banks, to friends and family — each string representing an economic transaction of some kind. In the middle of it all, it’s easy to feel tangled up.
From talking to my peers, I have found that quite a few people share these sentiments. So then how can we get ourselves untangled? How can we tug at those strings in such a way that causes the least harm to others and votes for thriving interdependent economic communities rather than mammoth oligopolies? Many of us involved in alternative lifestyles, activisms, and social movements — of which permaculture is one — are often searching for innovative and place-appropriate ways to do this.
One of my favourite professors at university — a feminist activist who was fighting alongside people threatened by multinational corporations in Guatemala and elsewhere — once said something along the lines of, “When we study capitalism, we tend to focus on IT and its negative effects, to the point where we sometimes limit our ability to even recognize the myriad non-capitalist forms of economic exchange that we and communities around the world engage in every day.”
This simple statement was definitely an awakening for me. Yes, it is important to analyze and actively oppose capitalism, especially since it is arguably the most powerful force shaping global society, but it is equally important to value and lift up the alternatives that already exist and have in many cases existed for millennia!
Let me ask you this: have you ever swapped clothes, seeds or services with a friend? Have you ever been given or have issued an IOU? Have you ever shared the story of a small business or non profit with your social network because you believed in what they stood for?
If you answered YES to any of these, then you have already engaged in non-capitalist forms of economic exchange. Perhaps you leveraged your social capital to help a friend, or perhaps you have engaged in reciprocity, gift giving, or bartering in order to meet your needs or the needs of your loved ones.
For many of us, when we think of the word “economics” our minds might quickly jump to flows of dollars and cents, however, The Free Dictionary defines “economics” more broadly as that which “deals with the production, distribution, and consumption of goods and services, or human welfare.” For myself, I like to think of economics as “the ways that we meet our needs through the exchange of goods and services.” With this wider definition in mind, we can really expand and explore what it means to participate in economic exchange.
By doing case studies on economic traditions, such as the reciprocity-based Potlatches of the Northwest Coast Indigenous Peoples, local currencies which promote the circulation of economic energy within a specific region, or credit sharing which helps all parties involved in a deal determine what constitutes a fair exchange of goods or services rendered, we can observe diverse culturally and historically rooted economic stories. These stories offer lessons for ways that people have engaged and can engage within economic circles, ways that promote the ethics of caring for people and the earth, as well as fair share.
In my life, I have had the opportunities to study permaculture, work on a community currency project, participate in time banks and mutual credit initiatives, and work within the Degrowth and Transition Towns movements.
All of these experiences have gifted me with invaluable tools for navigating my economic reality. I have calculated that during the past 12 months I have participated in the exchange of over $5000 Canadian Dollars worth of goods and services without the need for any Canadian Dollars. As someone who works within the non-profit sector and qualifies as a low-income person, having the knowledge to access and identify wealth through alternative means has enriched my life greatly.
Alternative approaches to designing our economic systems which engage with concepts like local currencies, basic income, credit sharing, and interest free loans, can help vulnerable communities become economically stable, they can help people reduce stress and improve mental health, and they can help people express their gifts and talents in ways that are not exploitative.
I think the greatest boon that rethinking economics has given me, is the increased sense of agency in my life — feeling like I am able to meet my needs and experience abundance even if my economic profile might suggest otherwise. If we are able to engage in more of the kind of work that allows us to redefine, reimagine, and critically redesign what terms like ‘currency’, ‘wealth’, ‘capital’ and ‘economics’ can mean, then I think that the potential for positive change is truly great.
Want to know more?
Thank you for taking the time to read my blog post! If you are interested in learning more about alternative approaches to economics as part of the first online Permaculture Design Certificate taught by a group of 40 women from around the world, check out https://coursecraft.net/courses/z9Thn/a/cpmYFEtTE.
My name is Lucie and I live in Kelowna, Canada, where I run a permaculture group and work as a coordinator in a non-profit organization that empowers community members facing hardships by teaching cooking, farming, and employment skills. I have a masters degree in the social dimensions of sustainability from Lund University and a background working in social sustainability, community building, writing and mixed media art. To find out more about me and what I do please visit luciebardos.net.
#rethinkingeconomics #freepermaculture #permaculturewomen #peoplecare
with Saskia Esslinger
Excerpted from our double certificate design course.
Anything that can help you achieve your goals can be considered a resource. Resources may be visible or invisible. You may have a lot of resources on and near your site that you don’t even know about. Taking stock of existing resources can help inform your design and enable you to see solutions. You can also identify what resources you will need. Perhaps you need fencing materials, or a mentor. By identifying things you will need, you will recognize them when they show up!
In this mini class we will focus on helping you identify all of the resources you have at your disposal.
Many of the sectors moving through your site are also resources that can help bring your site into harmony with nature. Designing ways to harness them turns problems into solutions.
The people who benefit from a design are generally the largest and most steady source of energy into and out of it, and that energy needs to be mapped, diverted, and included in the design itself. This can come in many forms:
What resources will you need to acquire in the future? How will you get them?
This miniclass is excerpted from the Boundaries and Resources module of our double-certificate design course, taught by Saskia Esslinger.
Saskia Esslinger is a certified permaculture designer, teacher, and regenerative entrepreneur. She believes that growing food is a key element in a sustainable lifestyle and trains people to teach gardening in their own community through her website teachgardening.com. Saskia recently returned to her roots in Alaska after traveling over land and sea for two years with her husband and two sons.
Further reading on this topic:
Bloom, Jessie. Practical Permaculture. Oregon: Timber Press. 2015. 72-80. Resources on base mapping and sector analysis.
Macnamara, Looby. People and Permaculture. England: Permanent Publications. 2012. An excellent reflection on boundaries as they relate to people.
#freepermaculture #permaculturewomen #invisiblestructures
Global Economic Crisis
You could say that I probably got into Permaculture through the economical doorway. I was working in real estate when the 2007–2009 global economic crisis hit and although it didn’t (immediately) pose a financial problem to me (I had earned well in the rise up to the crisis), it sure did leave a foul taste in my mouth on the social side of things. I had to fire people on the sales team, work the very few leads out there still double as hard, withstand lies told to customers by colleagues of other real estate agencies down the road as we were all after the same few “fish” in the sea,… it sure felt like it was a war zone out there, where everyone was competing for their share of the sinking cheesecake. This is the moment when I stepped out of the branch and went looking for a Change.
Right now, house sales have gone up again here on the Balearic Islands and tourism never stopped growing due to other areas in the Mediterranean Sea Basin like Turkey, Egypt, Tunisia and even Greece still being somewhat uncertain holiday destinations due to terrorist acts and refugees from Syria. Unemployment is down, spending is up once more and the papers talk about yet another record hitting season this 2018. We are out of the dark hole they say…
The global economic crisis of some ten years ago might seem over when you read through this little list, but it surely still is fresh on my mind, and I am actually even weary about a next one being right around the corner.
House sales are up to foreign buyers only.
Tourism is putting an extreme strain on the island’s resources, starting with water and on a par: long term residential rental properties are almost impossible to pay now.
Jobs are aplenty yes but wages haven’t gone up, so spending power is lower for locals and the doctors have had a ball writing sick notes last summer 2017 due to burnout.
Growth is something very natural. In nature, things don’t keep on growing forever though. Plants grow, people grow… and then… they die. It’s the cycle of life. An old growth forest is a system that is made up of many elements, some are in their growth phase, others are in their decline phase. Between them all, they keep the system going.
This stage of collaboration and accepting that there necessarily are phases of decline or cycles (the plants in decline become the soil and nutrition for the new plants) is something we humans have not yet understood as a species. If we want to avoid the decline of the entire system (our planet) we better hurry up to get to that stage of understanding.
Just as with the Social or Political Invisible Structures, we need to know exactly what it is we are working with when talking about the Economic Systems so that we can make a hypothesis as to why things are out of whack, to then start working on our design to get back on track (Permaculture Principle “Observe & Interact” at work).
As I got more familiar with the principle “The Problem is the Solution”, I got more and more interested in the Economy and how our current capitalist model is pushing us beyond the limits of our ecosystem. I wanted to be able to design our way out of the mess and therefore had to start with … observation and analyzing. I personally learnt an enormous amount about the economy of today through taking the Integral Permaculture Academy’s mini-course on “Eco-Economy”.
I have recently finished a 6 month stretch of working on a module for a spectacular Online Permaculture Design Course that I co-facilitate together with 40 other female Permaculture Women’s Guild Designers from all over the world. It sure was spectacular on the Invisible Structures side of things, which is what my module focuses on, together with the Design for our Inner Landscape. In the course I talk about all of those Invisible Structures, but as a colleague goes into much more detail about the Economic Systems in her module, I brought my thoughts on those systems into this Medium post.
Let’s look at some of the most important concepts we need to understand before we can start any design involving the Economic Invisible Structures.
When we think about the economy, often we think about money. What is money? Money as such is definitely not a bad thing. It is one form of energy that circulates through our system. It is a store of value that we collectively assigned to it, and it is based on confidence.
It was designed to make connections possible between humans over larger distances.
What history tells us is that when our horizons expanded and direct bartering on the road got too hard (it isn’t always easy to find the person who has exactly what you want and you have exactly what she wants when you are traveling), some items got introduced that were recognized to have value elsewhere too. So “money” came into being.
Today’s money however has little to do with that original trust in a seashell or a block of salt that goes back 5000 years. These days we might do good in not placing too much of our confidence in money, as any Argentinian person can probably tell you (the peso suffered massive inflation in 1990 and has been unstable for a while).
Why not? Money these days is made up out of thin air and it is not the government printing our notes as some people believe. It is the bank that types in some numbers on a screen and as by magic you have money in your account.
For the privilege of them giving you something they actually don’t have themselves, they also charge you interest, and you are saddled with a debt. In the latest crisis many people lost their homes to the banks. So the banks end up winning always: they either get money in return for the thin air they created your loan from, or they get a property! To top it off, when they then fly too high and burn their wings, our (tax payers’) money (borrowed from them with interest and/or worked very hard for) is then used to bail them out of trouble.
Whenever I tell this story or write it down, I feel that this currently is the biggest story we need to share, and make people aware of. Debt is not natural, therefore it is not sustainable.
Why is this not front page news everywhere?
Apart from many invested interests (pun intended) I believe it is because we lack new, positive stories. We need success stories, examples of good practices, a practical design to do it better. Something achievable to work towards.
We maybe feel that getting out of this mess is too big a task for us, and that we are firmly held in the grips of our debt. But there are many examples out there of complementary and local currencies in operation.
Small steps may take us a long way (small and slow solutions are the way to go!). Going back to our basic needs (Maslow’s Hierarchy of Needs), we must be able to make the distinction between them and our wants, as Max-Neef points out, and particularly realize the impact elsewhere in the system of our ways of satisfying our “needs”. The comparison between Maslow’s and Max-Neef’s needs becomes necessary in today’s economic system, and you can read about it in this other Medium Article by Neha Khandelwal.
I mostly graphically represent this by drawing two apples on the board. One of them is the Apple-logo. The younger students I work with tend to immediately recognize that one. The other apple, the one that you can eat, is always second… and no I don’t think that has to do with my drawing skills. Which of those apples is a basic need and which represents a “want”?
Don’t get me wrong, I am not saying that “wants” are all bad. Of course I want to stay in touch with people, work from home, record my photographs and speak to my family in Belgium. I can do all that on any brand of computer though, or if I really do value the apple logo enough to pay the higher price for it, then I maybe don’t have to change the model for a new one every time one comes out…
Apples aside, it’s known that the capitalist system we live in purchases growth. Therefore “they” must sell more. Marketing helps them to achieve that. The system plays on our “wants”, and we are led to believe that we can satisfy our needs with items such as an iPhone or food packaged in colorful boxes.
The more “wants” we have, and we will — because our needs are often not satisfied, the more we have to recur to interest based loans, or in other words, we are spending money we don’t have whilst at the same time sending money up the chain (of those bankers and the already wealthy corporate world that sells us such items).
Maybe we should re-educate ourselves, and understand that capitalism is a polarizing system. Ever more money is flowing up that chain to the top, it surely isn’t trickling down as what they want us to believe. The divide is getting bigger. More and more people end up underneath the poverty line. Being in debt becomes a social epidemic with a lot of consequences (think Big Pharma, junk food chains causing loss of our soil as well as loss of our health, crime…)
But enough of the doomsday information overload. Permaculture is about solutions. Here I’d like to present you some very simple steps to boost your confidence in taking control over the Economic Invisible Structures in your design.
Solutions: Sustainable Economy
When looking at your personal economy, it’s good to have a base understanding of the following concepts.
Invest in & like Ecosystems
Invest in Ecosystems: buy livestock, trees, plants, seeds, buy land and steward it, buy local produce from your farmer, study local flora and get really good at foraging (there is so much free food all around!)…
The point being: you won’t be able to eat those classic motorbikes or those tons of designer handbags when the going gets tough and nobody around you has any cash to buy them off you.
Invest like Ecosystems: Diversify! Use the principle of redundancy and diversity, which create stability and resilience, have different income streams, your skill base might be a good start or you might want to check out the 8 forms of Capital by Ethan Roland. Sign up for your local LET group or Time Bank*. Up the faith and jump out of your comfort zone.
Also look at where your passion lies, and see if you could make it into an income stream. Design your Right Livelihood. It’s good to be using several economic systems and currencies at the same time, so you will not depend on any one system alone. Capitalism is not going to go away any time soon, but on its own, it’s too fragile a society we’d be living in, not resilient at all.
Live within your limits
Know what you have (your resource base — and don’t forget foraging, free food!) and don’t cross your limits. It’s exactly what we have to do on the planetary level, so we might as well start with ourselves. Another solution lies in how you act as a consumer. How about giving yourself enough time to think it through before you make a purchase.
There is a set of questions you could run through before actually buying anything, which could go something like this: Do I need this (basic needs!)? Do I maybe already own something like it (know your resource base!)? Can I borrow this from someone I know? Can I source this from a second hand store? Can I actually afford it? Etc.
If you have already crossed your limits, look at designing your way back up to the black numbers rather than stay in the red. It might be daunting but there is professional help out there too. As before, don’t hesitate to ask for help. It is not worth suffering over it for any longer than need be.
As we have crossed our limits as a society a while back (currently we are using 3.6 planets’ worth of resources as a species), the only option for those of us in the developed world is Degrowth. It is not going to be a choice anymore any time soon, so we best get used to it now already.
Would you be involved in arms or drugs trafficking? Would you invest in deforestation or petroleum companies that chop big chunks of the amazon down? Would you support big pharmaceutical companies that are under the suspicion of actually wanting to keep us sick as a society, and now even are one and the same as the big agro companies that destroy the livelihoods of our local farmers? I am guessing your answer to there questions is no.
You then need to know that your bank might be involved in them and that this is probably where your money is being used, because those are the investments that give most returns.
So if you don’t want to invest in those activities, di-vest your money out of your bank. It’s a job and a half yes, but it is doable and it is very much worth it. Being honest here, I have not yet been able to move my own mortgage to another bank.
Check out your area for ethical banks through this link if you are in Europe.
Also vote with your money. Try to buy local products as much as you can. Steer away from big corporations that are known to play a huge part in destroying our environment, our social networks or our public health and don’t invest anymore in the likes of Coca Cola, Monsanto, Nestlé and many other brands that are often one and the same as can be seen on some chart images that float around the web.
Share your surplus
Don’t charge interest on any personal loan you may give a friend or family member, your abundance now is reinvested in a cycle that will cultivate social capital and it wíll return to you!
Don’t have a massive savings account: Debt is unnatural, so is hoarding. Even a hamster self-regulates and stops eating so much (and therefore hiding food) when the warmth of spring returns. You can have a saving accounts or a piggy bank by all means, it is a sign of a good Design for Catastrophe/Resilience, but anything more than that is based on fear and is not helping the local economy. Money is a flow of energy, and like anything stagnant, it stops working. One note of 10€ in your bank account is just that… 10€. If you spend 10€ in your local economy, it jumps up in value to 100€ just by passing through the hands of 10 people. Remember the principle of cycling energy.
Don’t charge for any spaces you might have available to share, or charge only a fair price to share in the costs: On this note, I can tell you about how our association PermaMed’s demo sites are on property that has been donated to us, or assigned to us to steward if you will, and there is even a “Land-bank” here on the island of Mallorca, where property that cannot be tended to by the owners is offered to people who are looking for a piece of “dirt” to grow food on, mostly just charging the cost of the water or agreeing on a part of the harvest to go to the owner.
Share your crop: you have loads of almonds, apricots, tomatoes, leeks, corn cobs… at the same time? Are you seriously going to can them all? Why not share what you can’t eat, and get some diversity in return. And as the saying goes: where 2 eat, 3 can eat too. Never hesitate to invite someone to your table and share a meal.
On the other hand, don’t stretch yourself to share what you actually really can’t (again, I am a good example of doing just that), because as one Permaculture Design Course teacher of mine likes to say: “You can’t be green, if you are in the red”, so it would be a priority to not be in the red. Guard your limits. Just as with your physical and emotional boundaries for your Inner Landscape Design, these limits are important for the longevity of your projects.
More detailed information on the Economic Systems in the mark of the Permaculture Invisible Structures can be found in Lucie Bardos’ latest Medium article. She is one of my 40 international & expert co-facilitators in the Permaculture Women’s Guild Online Permaculture Design Course which has just opened for early bird enrollment.
I myself take you on a journey through the Inner Landscape and we look at the Invisible Structures in general, explore what they area within the social, economic and political dimensions, and how we can design for them in our projects. Wanna join us on this tremendous learning experience? Click on this link for the complete information.
Dana Meadows was hugely important to the birth of Permaculture, by co-authoring the “Limits to Growth” Report of the Club of Rome in 1972. Together with the looming oil crisis of 1973, this stimulated Bill Mollison and David Holmgren to get designing for a permanent agriculture. This is her take on Sustainable Economies.
Helena Norbert-Hodge is a very inspirational lady as is the film she made in Ladakh: The Economics of Happiness.
Kate Raworth’s Doughnut Economy works with boundaries and basic human needs. Fantastic! She also offers loads of economic history and poses some neat questions.
Ellen McArthur’s Circular Economy was presented to me at the R.I.E. gathering in 2015 (Iberian Ecovillage Reunion) in Navarra, Spain. Based on the principles of cycling energy and producing no waste.
Hazel Henderson states that our economy is based on a big invisible layer that she calls the “Love Economy”. Riane Eisler builds on this in her Tedx talk on The Caring Economy. They both refer back to the backbone of our society being… the women… Caring & Loving… invisible in the GDP.
This resource is brought to you by
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Permaculture Women's Guild, and Heather Jo Flores.
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