The New Econ-o-what?

What is this “new economy” all about? People talk about sharing economies, complex economies, Ecological Economics, self-reliant bio-regional economies, the New Economy, the sacred economy. How are we to imagine a new reality when there are a number of people voices saying different things? How do these different ideas work together or pull the movement apart?

It seems to me that all these names, new paradigm, or suggestions boil down to three fundamental changes - change the rules that set the system in motion (and allow for self organization), change how value is measured (change the goals), and transform which stories are chosen to be glorified (shifting the paradigm).

Allow for self-organization

Marjorie Kelly, Mirran Raphaely and Jeff Mendelsohn both talked about clever ways to lay strong foundations that affect whole systems. As Kelly so eloquently said in our webinar, “Structure is purpose expressed through design.” As with the nature world, there are simple rules that have long lasting effect. These natural laws result in a multitude of combinations and self-organization. What on the surface may seem like a boring project - coming up with a business’ articles of governance - actually lays a foundation and sets into motion the complex and exciting organization that will birth something new and innovative into the world. It is worth spending the time to make sure that the governance and ownership structure are in line with the ethos of the company. Doing so, means that business models are not extractive, instead the focus on supporting  life. As a result, not only does the business product or service positively impact customers, but also the environment and all stakeholders within the system.

Mendelsohn  and Raphaely talked about the ways that organizations are living beings. They are not something to be bought, sold, or traded. They exist independently of people that make them up. Why should some people own parts of it and not others? What does it mean to give away equity in exchange for capital? Will we soon see that to be similar to giving away your first born during a financial transaction?

Change the goals

David Korten clearly stated the ways in which increasing GDP is a poor goal for a healthy economy. He argues that GDP and Market Indexes as economic indicators favor the rich and does nothing to improve life for all (Korten, 2013a), and that Money measures value and making more of it is the purpose of firms and economies. When these are our goals and values, they can have disastrous effects. For example, when focusing on increasing GDP, the result can be that sustenance farmers leave the farm to to make money (which contributes to GDP) at the expense of growing food. So, money goes up, but food security goes down. (Korten, 2013a).

The solution from many authors - for example David Korten and Charles Eisenstein - suggest a change to the means of measurement. GDP sets the wrong goals and the wrong focus.

Shift the Paradigm

Perhaps the most radical argument against the current system looks closely at the narrative that perpetuates it. Both David Korten and Charles Eisenstein take issue with the story that gives meaning to our world.

Korten talks about the three meta-narratives of our time: Distant Patriarch - “most important relationship is to a distant god who bestows agency and meaning”; Grand Machine - there is no meaning and agency in the world, we are just part of a machine going round and round; and Mystical Unity - relationships and meaning are all illusions, we are one. He urges us to move beyond these stories that legitimate the extractive economy that we live in.  Korten argues that in order to move into a place of healing for the Earth, Humanity, and all living beings, we must change the narrative the connects us to the world around us. That narrative needs to be based on a new story - the Integral Spirit. This story celebrates humanities ability to be self-directed interconnected beings on a “journey of creation and discovery.” (Korten, 2013 pg 9)

Eisenstein encourages us to change the way we interact with money as money was once sacred and key in bring people together. Similar to Korten, he suggests that the narrative of divide, conquer, sell and commodify has changed our relationship to one another and the Earth. To move beyond that reality, money has to take on new meaning and occupy a new place in the world.

Breaking these concepts down into bit-sized pieces helps me understand that just as our economy is multi-layered, so are the problems and potential solutions. I may not agree with all of them, but they remind us to question what we know and explore that which we do not. If we stop taking the system as a given and support alternatives (varied as they are) when we see them, perhaps we can kick-start some change.

(Endnotes)

Eisenstein, Charles. 2011. Sacred Money: Money, Gift, and Society in the Age of Transition. Evolver Editions.

Korten, David. Taking Ecological Economics Seriously.

Korten, David. 2013a. Defining a New Development Paradigm.

Korten, David. 2013b. Religion, Science, and Spirit: A Sacred Story for Our Time.