Holistic Economics for the 21st Century: ecology and equity

Holistic Economics for the 21st Century

First published in 2008
by Schumacher College as an initiative of The Dartington Hall Trust

Contents
Introduction by Satish Kumar 7
1 What's the Problem? 9
2 The Money Renaissance 18
3 The Energy Renaissance 27
4 The Food Renaissance 32
5 Where do we go from here 40

Introduction
by Satish Kumar
There is a big problem with the economy, namely that it is
disconnected from both ecology and equity. In the past hundred years
the economy has grown twenty-fold, yet during the same period the
ecological capital of the Earth and the livelihoods of hundreds of
millions of people have been in constant decline.

In spite of the many efforts and good intentions of governments, UN
agencies and NGOs, the Earth's natural resources have continued to be
pillaged. Economic growth has been matched only by the growth of the
gap between rich and poor. Moreover, nobody seems to know how to
address this fundamental fault line in the economy.

In the light of this predicament, in November 2007 Schumacher
College organised a think tank bringing together a group of holistic
economists who share a vision of a new economic order which can
simultaneously bring about ecological sustainability and human
wellbeing. The group spent three days at the College exploring
practical ways and means of economic transformation and developing a
cohesive framework for a new economic order based on the principles
of equity, sustainability and spirituality. They addressed the
following questions:

What are the key components of an economic system which would
successfully achieve poverty elimination, climate sustainability and
human fulfilment?
How can we bring about systemic change to address the root causes of
the present economic crisis rather than treat the symptoms?
What kind of economy do we need to protect ecosystems and people's
livelihoods at the same time?

After three days of extensive discussions and deliberations we agreed
that an economic "renaissance" is needed to meet the enormous
challenges of sustainability, equity and climate change. In
particular, we need to redesign our food systems, energy systems and
money systems in order to create a new economic order. Food, energy
and money are the three fundamental components which need root and
branch reform. Colin Tudge, who participated in the discourse
throughout, was given the task of summarising the essential spirit
and pertinent points of the discussions held. This small book is the
result. Colin has been able to capture the intricate arguments of the
participants in a most admirable and impressive way. There is a
wonderful combination of idealism and pragmatism in this book. I hope
that economists, environmentalists, politicians and business leaders
will find here a direction which has wisdom and vision as well as
enough material for practical action. At the end of the three days we
agreed to establish two working groups:
one called Polestars and the other Flashpoints. The responsibility of
the Polestars is to develop the big picture and create a new vision,
new analysis and new theories of holistic economics on a long-term
basis; whereas Flashpoints will focus on action and implementation,
responding to the day-to-day events impacting on ecology and
equity.

It was agreed that the second think tank will take place in November
2008. Last but not least, I would like to express my sincere thanks
to Cherian Eapen for his generous support, financial contribution and
participation in the discourse. Without his sponsorship this
gathering would not have been possible.

Also, I would like to thank James Martin-Jones who facilitated the
think tank in a most efficient and coherent manner. Without his
diligent and focused facilitation we would not have been able to
achieve such a remarkable outcome. source