Future Dossier ALTERNATIVE ECONOMIC AND SOCIAL CONCEPTS · examples of the alternative economic and...

ALTERNATIVE ECONOMIC AND SOCIAL CONCEPTS

SERIES ›ZUKUNFTSDOSSIERS‹ NO3

Future Dossier

Imprint

The publication series “Zukunftsdossiers” (Future Dossiers) commissioned by the Austrian Federal Ministry of Agriculture, Forestry, Environment and Water Manage-ment provides information on themes of future relevance in compact form to an interested readership. The first two Dossiers have only be published in German language.

This Future Dossier entitled “Alternative Economic and Social Concepts” is published in the framework of the “Wachstum im Wandel” (Growth in Transition) initiative, to accompany the 2nd International Conference ”Growth in Transition” taking place in Vienna, Austria, 8–10 October 2012. Further information is available under www.growthinstransition.eu

This Dossier was compiled by Elke Pirgmaier from SERI, the Sustainable Europe Research Institute ([email protected]), with the assistance of Julia Gruber. SERI is the scientific partner of the «Growth in Transition» initiative and is one of Austria

,s

leading sustainability research institutes

September 2012

Proprietor and publisher:Federal Ministry for Agriculture, Forestry, Environment and Water Management (Lebensministerium), Section V, General Environmental Policy (Allgemeine Umwelt- politik), Department V/8 – EU Affairs – Environment (Director: Elisabeth Freytag), and Department V/2 – Environmental economics and energy (Director: Martina Schuster), Stubenbastei 5, 1010 Vienna Contact: [email protected] opinions expressed in this Future Dossiers are those of the authors and do not necessarily represent those of the Federal Ministry of Agriculture, Forestry, Environ-ment and Water Management.

The original version was written in German. Translation: Ursula LindenbergLayout: Gerda Palmetshofer Year of publication: October 2012All rights reserved.

SERI on behalf of the Austrian Federal Ministry of Agriculture, Forestry, Environment and Water Management

Alternative Economic and Social Concepts

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Preface ......................................................................................................................................................................... 4

Summary ..................................................................................................................................................................... 5

New Forms of Economy and Society, Aiming for Growth with New Attributes ...................... 6

New Forms of Economy and Society, Aiming for Growth with New Attributes .................... 14

Green Growth, Green Economy, Green New Deal—The way out of the crisis is green ........ 14

Europe 2020—The European Growth Strategy ........................................................................ 17

Study Commission on Growth, Wellbeing and Quality of Life—The debate about social

progress in the German Bundestag .......................................................................................... 20

The Blue Economy—100 innovations inspired by nature ....................................................... 23

Cradle to Cradle – Intelligent waste ......................................................................................... 25

Factor X—The absolute reduction of resource consumption by a factor X. ......................... 28

New Forms of Economy and Society, Focusing on the Problematics of Growth and

Aiming to Reduce Growth Dependency ..................................................................................................... 31

Steady State Economy—The optimal size of an economy ...................................................... 31

Degrowth—Downsizing as a way out of the crisis .................................................................. 34

Post-growth society—The renaissance of growth critique ..................................................... 37

New Forms of Economy and Society, Placing Central Importance upon

Human Wellbeing.................................................................................................................................................. 41

Buen Vivir – Spirit of change in the Andes ............................................................................... 41

Common Welfare Economy—A growing democratic alternative ............................................ 44

The Solidarity Economy—Putting people at the centre .......................................................... 47

Transition movement—Moving into the post-oil era .............................................................. 50

New Forms of Measuring Wellbeing and Progress .............................................................................. 52

Synthesis................................................................................................................................................................... 56


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Preface

"As Gregor Samsa awoke one morning from uneasy dreams, he found

himself transformed into a gigantic insect...‖ Franz Kafka in "The

Metamorphosis‖ tells the story of a man who at first believes his trans-

formation to be temporary and then gradually adapts to the con-

sequences of his metamorphosis. It could be said that Kafka's story

describes a social utopia. The creation of social utopias not only takes a

literary form but can also be found in normal everyday life. Finding ways

to avoid all kinds of phenomena of crisis is the focus of widespread

discussion. There is a consensus that the current structure of both eco-

nomy and society is crumbling and is also undergoing a process of

transformation. Climate change, species loss, demographic shifts and

the debt and currency crisis have made it increasingly clear that it will

not be possible to continue as before for very much longer. And just as

doubts about the "old system" are growing, so too are a plethora of new

ideas for alternative models. The search for alternatives to the current

economic model and way of life is underway!

This Future Dossier provides interested readers with an overview and

examples of the alternative economic and social concepts that already

exist, to counter any suggestion that alternative visions are lacking.

Many of these concepts and ideas for other ways of life and economic

forms are either on the drawing board or already being tested in

practice. They all demonstrate that other ways do exist. The following

paragraphs illustrate how the spectrum of proposed alternatives show

more or less utopian features – suggestions range from partial correc-

tions of the current system to the abandonment of the capitalist system

as a whole. Thus discussion focuses on themes from the greening of the

economy to "post-growth" societies and solidarity and common welfare

economies. Although the precursors and advocates of the approaches

presented here may differ significantly from one another, all place

emphasis on the importance of business figures, activists, researchers,

individuals and collective associations all working today for a future that

will sustain their descendants.

The material contained in this Dossier aims to provide orientation and

inspiration for people to take an active role in this process of social

transformation. Growth in Transition invites everyone to join the

conversation!

First, I saw how life is.

And then I understood

why it is so,

and then I grasped, why

it cannot be different.

And still, I want it to

change.

Kurt Tucholsky


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Summary

This Future Dossier describes various economic and social visions that

all pursue one goal: to improve the quality of life and wellbeing of

humankind while simultaneously remaining within the limits of the

planet's carrying capacity. The following descriptions of alternative

economic and social concepts are divided into three groups:

New forms of economy and society, aiming for growth with new

attributes

New forms of economy and society, focusing on the pro-

blematics of growth and aiming to reduce growth dependency

New forms of economy and society, placing central importance

on human wellbeing

The final section of this Dossier provides an overview of new approaches

to measuring wellbeing and progress.


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New Forms of Economy and Society, Aiming for Growth with

New Attributes

Keywords

Energy and resource efficiency, eco-innovations, environmental

technologies, decoupling, sustainable development, ecosystem

services, natural capital approach, environmental and resource

economics, green growth, sustainable growth, Green Economy

Current environmental discourse often focuses on economic growth with

new attributes - green, sustainable, inclusive, smart. Some even talk of a

"golden growth". Behind all these strategies lies the concept of eco-

logical modernisation. Proponents of this approach base their

arguments on the assumption that economic development and environ-

mental goals can go hand in hand and that the economy stands to

benefit from the pursuit of environmental interests. Technological

advances should facilitate the decoupling of economic growth and

environmental destruction. A more efficient use of natural resources

and energy is a core strategy in this respect and is seen as capable of

driving economic growth. Economic growth is perceived as desirable and

necessary for wellbeing and social progress. Market and pricing

mechanisms are seen as the fundamental prerequisite for a well-

functioning, efficient and competitive economic system. The green

modernisation of the economy aims at innovative structural change,

without transforming the capitalist logic of competition and com-

petitiveness. Plans for sustainable or green growth are intended to

convert unsustainable trends into economic advantages. First mooted in

the early 1980s, this concept has attained fresh impetus in recent years

among decision makers in politics and public administration particularly

through the Green Economy debate. In science and research circles,

this discourse has dominated environmental and resource economics.

The hopes placed in green capitalism have also faced increasingly

strong criticism, on the grounds that these new suggestions still adhere

to neoliberal economic logic and thus fail to address existing con-

sumption and production practices in a critical manner. The inherent

drive for profit and competitive advantages and the focus on the "free

market" and pricing mechanisms is seen by critics as likely to hinder

comprehensive solutions for social and ecological problems. The

proposals are also seen as too technocratic in approach and as focusing

Climate protection

and economic crisis

are compatible

Criticism of

green capitalism


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too little on society, while ignoring existing power structures—

particularly in politics, financial markets and multinational companies. In

this sense, false hopes can be raised that are likely to suppress

alternatives rather than support them (Brand, 2012). Furthermore,

empirical evidence for absolute decoupling is thin, to say the least. On

the contrary, efficiency improvements created by technological solutions

often lead to rebound effects that increasingly aggravate environmental

problems.


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New Forms of Economy and Society, Focusing on the Problematics of

Growth and Aiming to Reduce Growth Dependency

Keywords

Limits to growth, post-growth society, post-growth economy,

Steady State Economy, degrowth movement, sufficiency, downsizing,

Voluntary Simplicity, ecological economics

What happens if Plan A—in other words the decoupling of economic

growth and resource use—fails to work? Those who advocate

approaches that are critical of growth respond with the argument that

high GDP growth rates in the developed economics today are neither

possible nor desirable for moral, ecological, social and economic

reasons. The precautionary principle makes a debate about how an

economy could still function well—or even better—in the absence of

growth absolutely necessary.

Critics of growth make the high level of material consumption

(―overconsumption‖) that is required for an economy tailored to growth

responsible for a range of social and ecological problems. Growth is no

longer seen as a part of the solution for environmental problems and

combatting poverty, but as part of the problem. Representatives of

post-growth, steady state or degrowth concepts call for the abandon-

ment of pointless consumption that is wasteful of resources and

promote the advantages of a lifestyle based on sufficiency. Proponents

hope that this approach will provide a double dividend: on the one hand,

improving the quality of life and human wellbeing through less con-

sumption and reduced working hours, and on the other hand, cushion-

ing negative environmental impacts. Since the dynamics inherent in

growth under existing conditions mean that lower consumption leads to

huge economic problems, for example unemployment or public debt,

growth critics are working to develop alternative models that would

allow for a good quality of life even in an economy with little or no

growth.

Discussions that are critical of growth are rarely taken seriously by

"mainstream" economists, politicians and business people and are often

dismissed as academic, intellectual discussions among the green middle

classes, seen as neither credible nor able to garner majority support.

The post-materialists in their ivory tower are said to be naive for

Focusing on the goal of

economic growth is

leading to ecological and

social collapse

Criticism of

growth critique


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thinking that it is possible to halt or restrict growth and for failing to

think through the international consequences of the strategies they put

forward adequately or in enough detail. Furthermore, their critics

suggest that there is no evidence for stabilising effects of an economy

without growth, which would justify social experimentation on such a

huge scale. It might lead to an uncontrollable downward spiral, which

should be avoided at all costs. Overall, it is seen as too early for a post-

growth society. The paradigm shift involved in "beyond growth"

concepts is not seen as an option, because the scenarios put forward so

far evoke a host of critical questions.


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New Forms of Economy and Society, Placing Central Importance on

Human Wellbeing

Keywords

The good life, Buen Vivir, wellbeing, quality of life, human needs,

capabilities approach, sufficiency, common welfare economy, solidarity

economy, Transition Towns

Central to all these approaches is a return to human values and needs.

In line with the motto "the economy is there to serve the people‖,

different paths are explored - often deliberately excluding the market

and the state - that can provide benefits to those involved. Profit motives

and competition give way to community-oriented economics and

cooperation. The multiplicity of different characteristics and forms

is broad, because people negotiate in a collective setting to identify a

chosen form for their community-based economy. Examples range from

cooperatively organised associations to regional direct marketing,

complementary currencies, common welfare economies and the South

American debate about what constitutes the good life. These

approaches are often underpinned by the critical judgement that broad

swathes of life have become commercialised and lead to activities that

are devoid of meaning. Alternative economic "islands of resistance"

often set themselves in opposition to dominant economic and power

structures and/or an assumed failure of political decision makers to take

effective action. In contrast, these approaches aim to strengthen

community and to consume and produce at mostly local or regional

level in the framework of collective action, as well as to enjoy partici-

pating in meaningful working cooperation.

As flowery and progressive as these descriptions may be, they none-

theless face criticism. Critics of bottom-up approaches often point out,

for example, that such projects often lack structure, which can lead to

highly inefficient and impractical economic practices. In addition,

advances and transformations are often impossible to measure or

compare with one another, something that would help to popularise

alternative economic forms on a broad basis. Given this, it is doubtful

whether these perspectives can emerge from their respective niches and

win a mandate to shape political strategy. The frequently proclaimed

local economic cycles are regularly decried as regressive and anti-

globalisation tendencies, that by reducing the division of labour and

Diverse components

of the good life

Criticism of local

bottom-up approaches


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creating a more inefficient economy would lead to goods and services

becoming more expensive. As such, they are seen as neither desirable

nor capable of winning majority support. In addition, it is claimed that

the vision being painted of a happy subsistence economy is an illusion,

because only very few local alternative economies can function to fulfil

their needs without the involvement of global patterns of supply.


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New Forms of Measuring Wellbeing and Progress

Keywords

Beyond GDP, Stiglitz-Sen-Fitoussi Commission, OECD ―Measuring the

Progress of Societies‖ and ―Happy Life Initiative‖, five capitals

approach, environmental and social indicators, measuring quality of

life and life satisfaction, environmental economic accounting

Following the descriptions of alternative economic and social concepts,

the final section of this Dossier presents a guide to the current debate

concerning how progress and wellbeing can be measured more

comprehensively. For a long time, GDP has been used as the primary

indicator for wellbeing and for economic and societal progress. Today

there is a consensus in scientific, political and civil society spheres that

GDP has clear limits as the key indicator for identifying progress in

societies. Increasing growth rates no longer necessarily entail an im-

provement in quality of life. There are many factors that are not

reflected in GDP but that play a central role in determining the quality of

life, e. g. security, leisure time, income distribution, or an intact

environment.

The current measurement debate focuses on questions such as: how do

economic growth, prosperity, quality of life and wellbeing hang

together? What are the key factors determining quality of life? Is our

living situation actually continuing to improve? What are the prospects

regarding the potential for creating and maintaining prosperity into the

future? Is our prosperity sustainable? How can a long-term perspective

be integrated within surveys and consultations? A range of initiatives

has addressed these and other similar questions in order to find out

how social progress and prosperity can be measured in a more

comprehensive fashion than is possible using GDP. The measurement

debate has also reached UN circles. The concluding document of the

Rio+20 world conference, which took place in June 2012, tackles this

discussion in Article 38 and provides the statistical apparatus of the UN

with a clear working mandate to participate in the more comprehensive

measurement of prosperity and progress.

The following table provides an overview of the alternative economic

and social concepts that are described in the subsequent sections.

More comprehensive

measurement of

wellbeing and progress


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Overview of alternative concepts of economy and society

Aim/Vision Representatives Perspective Approach

Green Economy A green restructuring

of the economy,

leading to

sustainable

development

UNEP, OECD national and

international

political

Europe 2020 Decoupling is

possible through

smart, sustainable

and inclusive growth

European

Commission,

European Council

European

Union

political

Study Commission on

Growth, Wellbeing

and Quality of Life

Concrete political

recommendations to

create higher

wellbeing and quality

of life in Germany

17 members of

German parliament;

17 external experts

Germany in an

international

context

parliamentary

debate

Blue Economy The innovative use of

waste and resources,

leading to a

flourishing zero

emissions economy

Gunter Pauli, Blue

Economy Institute,

Blue Economy

Alliance

international scientific and

business-

oriented

Cradle to Cradle Material closed-loop

cycles enable

―intelligent waste"

Michael Braungart,

William McDonough

international scientific and

business-

oriented

Factor X Higher prosperity

derived from less

nature, through

increase in resource

productivity by a

factor X

Friedrich Schmidt-

Bleek, Ernst Ulrich

von Weizsäcker,

Factor 10 Institute

at the level of

products,

services,

businesses,

national

scientific,

business,

political

Steady State Economy Economic

development with an

optimal physical

scale

Herman E. Daly global scientific

Degrowth Economic degrowth

for more social

justice, ecological

sustainability and

wellbeing

numerous activists

and scientists

local to global scientific and

civil society

Post-growth society An economy that

even without growth

can produce higher

quality of life within

ecological limits

Tim Jackson, Niko

Paech, Peter Victor

national scientific and

civil society

Buen Vivir Development model,

leading to the good

life

Alberto Costa,

Eduardo Gudynas

South

America, esp.

Ecuador and

Bolivia

scientific,

political, civil

society

Common Welfare

Economy

An economy based

on common welfare

principles

Christian Felber,

500 pioneer

companies

national civil society

and business

Solidarity Economy Multiplicity of basic

democracy and

needs-oriented

economic forms

multiple actors mostly local civil society,

self-organised

Transition Movement Cooperatively

developed resilient

and self-sufficient

local communities

Rob Hopkins,

Naresh Giangrande,

Louise Rooney

local, regional civil society


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New Forms of Economy and Society, Aiming for Growth with

New Attributes

Green Growth, Green Economy, Green New Deal—The way out of the

crisis is green

Profile

Green restructuring of the economy should lead to a win-win situation:

reducing poverty, strengthening economic growth, securing

employment and ecological sustainability.

Representatives: UNEP, OECD

Perspective: National und international

Approach: Political

Since the beginning of the crisis in 2007, the credo for contemporary

political discussions has been predominantly "green". The Green New

Deal, Green Economy and Green Growth are closely interrelated

concepts, which have the green restructuring of the economy at their

core. These concepts aim to alter political framework conditions in order

to transform the financial, economic and ecological crisis into win-win

situations. They understand the crisis as an opportunity and are well

on the way to becoming the new mainstream in the political arena. Many

politicians and policy-oriented institutions make reference to this new

economic paradigm, which is supposed to (finally) make sustainable

development a more concrete phenomenon.

The Green New Deal in its original form refers back to US President

Roosevelt. Roosevelt assembled a massive publicly funded economic

stimulus package in the 1930s under the title "New Deal", to aid re-

covery from the global financial crisis of that era. In retrospect, this was

clearly a success. In reference to the first New Deal, the Green New Deal

denotes green economic stimulus programmes that are aimed at

restructuring the economy. The idea is to use publicly initiated invest-

ment in key sectors to simultaneously produce economic stimulus,

For decades, we focused

mainly on protection,

clearing and cleaning

up […]. But that is

no longer enough.

We have to connect

ecology and economy in

an entirely new way.

Achim Steiner, UNEP

Executive Director


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create Green Jobs, and minimise climate change and threatened

resource shortfalls. Green investments include, for example, energy-

efficient building adaptations, the expansion of public transport

systems, promotion of renewable energies, or the removal of subsidies

that are counterproductive in terms of environmental protection. The

United Nations Environment Programme (UNEP) has played a key role in

popularising the concept of the Green New Deal. In 2008, UNEP started

the Global Green New Deal initiative, to promote global structural

transformation in a globalised world. The international framework

suggested for this essentially comprised three elements: financial

support for developing countries to prevent their national economies

from contracting; support for national governments in bringing together

green economic stimulus packages; and international policy coordina-

tion, to ensure that the planned economic stimulus measures would

support the positive development of poorer countries. The Green New

Deal has meanwhile largely been replaced in international discussion by

the term Green Economy.

The Green Economy is also a concept that UNEP has taken the lead

in promoting. UNEP sees the Green Economy as an economic approach

that "results in improved human well-being and social equity, while

signifycantly reducing environmental risks and ecological scarcities"

(UNEP, 2011). To implement this vision, UNEP created the Green

Economy Initiative, the first results of which were published in the report

Towards a Green Economy. The initiative aims to support decision

makers in moving towards a more resource efficient, low carbon and

socially inclusive economy in practice. UNEP aims to demonstrate the

reforms and political framework conditions that can motivate private

and public investments to finance the transition to a green economy. To

this end, examples of best practice from around the world are brought

together to illustrate the positive impacts of green investments and

policies. Ultimately, this involves embedding individual measures in a

coordinated way within a comprehensive strategy, in order to make

quick progress towards the goal of a green economy. The Green Eco-

nomy was one of the two key themes forming the focus of this year's UN

Conference on Sustainable Development Rio+20 in Rio de Janeiro. It

remains to be seen whether the term can establish itself as a new

guiding concept in international sustainability discourse.

Green Growth describes an alternative path to growth in contrast to the

conventional paradigm of economic growth. Green growth is based on

the sustainable use of natural resources, upon which the quality of

human life depends. The idea is that the environmentally necessary

restructuring of the economy to include greater energy and resource

efficiency and better management of natural capital can be a strong


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driver for growth. The thesis suggests that the inclusion of new green

markets, the development of eco-innovations and the management of

ecosystem services create both improved competitiveness and new

business opportunities. In this way, Green Growth—as with the Green

Economy and the Green New Deal—should provide solutions to the crisis

and demonstrate a commitment to the belief that growth and environ-

mental protection can go hand in hand. Green Growth as a concept

is closely linked to the OECD. In 2009, government ministers from

34 countries signed a Green Growth Declaration and thus gave the

OECD a political mandate to develop a Green Growth strategy. The

strategy was published in 2011 under the title Towards Green Growth as

the starting point for a long-term Green Growth Agenda. It represents

a political framework and set of guidelines for national efforts, identify-

ing ways to obtain Green Growth. As with the Green Economy, Green

Growth should also be understood as a new political strategy for

achieving sustainable development.

Sources of further information and links

Brand, Ulrich (2012). Schöne Grüne Welt. Über die Mythen der Green Economy.

Rosa-Luxemburg-Stiftung: Berlin.

UNEP (2011). Towards a Green Economy. Pathways to Sustainable Development

and Poverty Eradication. http://www.unep.org/greeneconomy/

GreenEconomyReport/tabid/29846/language/en-US/Default.aspx

(16. July 2012).

OECD (2011). Towards Green Growth, http://www.oecd.org/document/

10/0,3746,en_2649_37465_47983690_1_1_1_37465,00.html (16 July 2012).


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Europe 2020—The European Growth Strategy

Profile

As the European Union's most important political strategy,

Europe 2020 sets out a vision for the next decade of smart,

sustainable and inclusive growth.

Representatives: European Commission, European Council

Perspective: European Union

Approach: Political

Europe 2020 forms the central economic policy strategy of the European

Union. It was proposed by the European Commission and adopted by

the European Council in June 2010. As the successor to and further

development of the Lisbon Strategy, it defines the parameters for the

economic policy agenda for the period from 2010 to 2020. Whereas the

Lisbon Strategy adopted the motto "Growth and Jobs", Europe 2020

promotes a more differentiated concept of growth. Growth is not to be

pursued in any form, but only as sustainable, smart and inclusive

growth. Europe 2020 establishes three clear priorities. Smart growth is

oriented toward the development of a knowledge- and innovation-based

economy (e. g. through measures in the areas of education, research,

innovation and ICT). Sustainable growth means building a low-

emission, resource-efficient and competitive economy (e. g. through

measures in the areas of climate, energy, environmental technologies).

Inclusive growth means promoting an economy with a high level of

employment and strong social and regional cohesion (e. g. through

measures in the areas of education, poverty reduction, cohesion). These

three priorities were translated into five concrete key targets:

Europe needs to get

back on track and then

stay on the right track.

That is the message of

Europe 2020. This is a

strategy about more

jobs and better lives.

José Manuel Barroso,

President,

EU Commission


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Employment: 75 % of all 20- to 64-year-olds should be in

employment.

Research and development: EU to use 3 % of its GDP for research

and development.

Climate change and energy: Reduction in greenhouse gas

emissions of 20 % (or even 30 %, inasfar as conditions allow)

from levels in 1990; increase in share of energy coming from

renewable sources to 20 %; increase of 20 % in energy efficiency.

Education: Reduction in early school leaving to under 10 %; in-

crease in share of 30- to 34-year-olds who have completed

higher education to at least 40 %.

Poverty and social exclusion: The number of those affected or

threatened by poverty and social exclusion should be reduced

by at least 20 million.

These quantifiable aims should be achieved EU-wide by 2020. Each EU

Member State has established national targets for the effective imple-

mentation of the strategy. These targets are adapted to take account of

national conditions and opportunities. This ensures that individual

Member States are able to regulate the design of reforms independently

while still contributing to EU-wide targets. Progress towards the EU tar-

gets are recorded on an annual basis in the framework of the National

Reform Programmes and presented to the European Commission,

which issues country-specific recommendations in coordination with the

European Council.

At EU level, the reform efforts of Member States are supported through

seven EU flagship initiatives, which serve the central priorities of

smart, sustainable and inclusive growth. For example, the flagship initia-

tive "Resource efficient Europe" aims to support the decoupling of

economic growth and resource use through the application of low-

emission technologies and renewable energies, thereby contributing to

the goal of sustainable growth. The flagship initiatives are intended to

provide impetus and support the reform efforts of Member States and

thus to contribute to the achievement of the key targets. The entire

range of EU instruments is available to aid this endeavour, e. g. legisla-

tive initiatives or the exchange of best practice examples.

In addition to the substantive focus on content, the governance

mechanism was strengthened through the introduction of a so-called

European Semester as a controlling instrument. This comprises an

annual cycle of governance aimed at strengthening coordination and

monitoring as well as leading to greater political commitment.


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Europe 2020 (2012). Official website of Europe 2020, http://ec.europa.eu/

europe2020/index_en.htm (16 July 2012).

European Commission (2010). Europe 2020. A strategy for smart, sustainable

and inclusive growth. KOM(2010) 2020 final, http://eur-lex.europa.eu/

LexUriServ/LexUriServ.do?uri=COM:2010:2020:FIN:EN:PDF (16 July 2012).

European Council (2010). Council Conclusions, EUCO 13/10, http://ec.europa.eu/

eu2020/pdf/council_conclusion_17_june_en.pdf (16 July 2012).


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Study Commission on Growth, Wellbeing and Quality of Life—The debate

about social progress in the German Bundestag

Profile

The Study Commission aims to identify ways in which wellbeing and

societal progress, according to a modern understanding of the terms,

can be secured and implemented in a social market economy.

Representatives: 17 members of the German Parliament and

17 external experts

Perspective: Germany

Approach: Parliamentary debate

The Study Commission (Enquete-Kommission) of the German Bundestag

on "Growth, Wellbeing and Quality of Life" has a broad, tripartite man-

date. The commission was set up to investigate the importance of

growth in the economy and society, develop a holistic indicator for well-

being and progress and explore the opportunities for and limits to

decoupling growth, resource consumption and technological progress.

Study commissions can be constituted from a quarter of the members of

the Bundestag, to undertake preparatory analysis informing decisions

regarding comprehensive and important topics. The Study Commission

on Growth, Wellbeing and Quality of Life was established at the initative

of the SPD and the Green Party. It consists of 34 members: 17 members

of Parliament from different parties and an equal number of external

experts. The committee focuses its work, undertaken in the framework

of project groups, on the following aspects.

The importance of growth in the economy and society. This working

group looks at the question of how much and what kind of growth

developed states such as Germany or Austria need in order to achieve

their social goals. Discussion addresses controversial aspects of the

theme, both in scientific and political respects. The project group,

according to Karl-Heinz Paqué (BpB, 2012), is divided into two camps:

the quantity theorists, who interpret growth predominantly as a physical

"more" in terms of goods, and the quality theorists, who point out that

technological advances make it possible to generate added value even

where resource consumption remains constant or is reduced, in other

words: qualitative growth: The working group faces the challenge of

The idea that growth

means wellbeing just

doesn't work anymore!

Daniela Kolbe,

Chair,

Enquete-Kommission

http://www.bundestag.de/bundestag/ausschuesse17/gremien/enquete/wachstum/projekt/gruppe_1/index.html


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transforming the points of conflict, which arise from different traditions

of thought and fundamental attitudes, into concrete policy

recommendations.

Development of a holistic indicator for wellbeing and progress. The

second project group has agreed upon developing a set of indicators to

provide easily understandable, meaningful and visually engaging

information on growth, wellbeing and quality of life in Germany. The set

should reflect between three and five dimensions backed by headline

indicators together with other appropriate indicators. Key areas of

wellbeing and progress are, for example, the material standard of living,

access to and quality of employment, distribution of wealth, political

participation, educational opportunities, subjective assessment of life

satisfaction and an intact environment. The development of the indi-

cator set is scheduled for completion by the end of 2012. Thereafter, it

is to be used as the basis for policy decisions (BpB, 2012).

Growth, resource consumption and technological progress—

opportunities for and limits to decoupling. The third working group

addresses the question of how GDP can be decoupled from the con-

sumption of national resources, emissions and environmental capital.

Based on an analysis of decoupling processes, the group identifies

concrete opportunities for action and implementation strategies relating

to individual resources, selected sectors of the economy and key actors.

The results of the working group will be presented in autumn 2012 and,

among others, should serve as input for the fourth project group in

shaping sustainable governance (BpB, 2012).

The project groups Sustainable governance und Employment, con-

sumption patterns and lifestyles were not yet constituted in summer

2012. They will focus upon how to shape economic policy so that it is

oriented towards more valuable growth and social progress and

investigate what other social opportunities exist for a change of direc-

tion towards wellbeing and progress.

Advisory reports commissioned from experts support the work of all five

project groups.

To date, the study commission has convened 21 times. At the end of the

2013 legislative period, it will present its reports and concrete re-

commendations, which should indicate ways in which sustainable econo-

mics can be strengthened within the social market economy. On this

basis, the next parliament will decide whether the commission should

continue its work.








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Enquete Kommission (2012). Enquete-Kommission “Wachstum, Wohlstand,

Lebensqualität—Wege zu nachhaltigem Wirtschaften und gesellschaftlichem

Fortschritt in der Sozialen Marktwirtschaft, http://www.bundestag.de/

bundestag/ausschuesse17/gremien/enquete/wachstum/index.jsp

(18 July 2012).

BpB (2012). Wohlstand ohne Wachstum? APuZ, 62. Jahrgang 27-28/2012,

http://www.bpb.de/shop/zeitschriften/apuz/139104/

wohlstand-ohne-wachstum (18 July 2012).

http://www.bpb.de/shop/zeitschriften/apuz/139104/wohlstand-ohne-wachstum%20(18

http://www.bpb.de/shop/zeitschriften/apuz/139104/wohlstand-ohne-wachstum%20(18


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The Blue Economy—100 innovations inspired by nature

Profile

The Blue Economy is a business model that—inspired by nature—

makes innovative use of resources and waste products, to create

100 million jobs by 2020, to generate additional revenue for

businesses and to achieve a zero emission world by 2050.

Representatives: Gunter Pauli, Blue Economy Institute,

Blue Economy Alliance

Perspective: International

Approach: International network of businesses,

investors and researchers

The term Blue Economy was coined in 2010 by the business figure

Gunter Pauli in his book of the same name. Blue refers to the colour of

the ocean, the sky, and the earth when seen from space. The original

idea was to collate the 100 best technologies inspired by nature that

are climate-friendly, resource-efficient and simultaneously competitive,

in the water, energy, construction and food production sectors. The

starting point for the Blue Economy was the project "Nature‘s 100 Best",

undertaken in collaboration between the Zero Emissions Research

Initiative (ZERI), founded by Gunter Pauli, and the Biomimicry Institute.

This collection of 100 innovative ideas was published in book form

under the title "Blue Economy". Since the publication of the book, the

Blue Economy Alliance has made information about these innovations

available online to the general public and supports their implementation

in business models.

For Gunter Pauli, the Blue Economy takes a step beyond the Green

Economy—it is intended to be achievable for all and entirely environ-

mentally friendly and aims to transform the economic system as a

whole. A new generation of businesspeople, using only those resources

that are available locally, taking the waste generated by products as the

basis for new products, and using efficient and sustainable manu-

facturing processes, will create a new economic model. According to this

thesis, employment opportunities will be created, social capital

expanded and the economy and society will move in the direction of

sustainability.

After the financial and

economic crisis of 2008

it became […] absolutely

clear to me that Green

is only good for those

with money. And that's

not good. We should

build an economy that

can secure the basic

needs of all people—

by using what is

actually available.

Gunter Pauli,

Founder of ZERI


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The Blue Economy is based on the functioning of ecosystems. Its

model of a cascade economy refers to nature, in the sense that the

waste produced by a metabolic process functions as the source material

for the next such process. One example of how this principle can be

applied to the economy is the following: coffee grounds, that are gener-

ally seen as waste material, are ideal for growing mushrooms. After

harvesting these, the remaining material is rich in amino acids and thus

a good source of feed for chickens. The chicken manure can be pro-

cessed in a treatment facility to create biogas. Because byproducts can

be re-used as input factors and waste is minimised, resources have a

longer lifecycle and are utilised more efficiently.

A further observation from nature, of which the Blue Economy

innovators make use, is that ecosystems to a very high degree obey the

fundamental laws of physics, while chemical processes are of lesser

importance. In reference to this, Blue Economy innovations inspired by

nature adhere closely to the laws of physics. Thus, for example,

researchers have studied zebras and the construction of termite mounds

to gain knowledge of how buildings can be naturally ventilated with the

help of differences in air pressure and temperature, and consequently

operating costs can be reduced.

The Blue Economy is thus a business model that aims to use waste

materials as input factors to create better quality products at lower costs

together with additional revenues and employment opportunities. The

Blue Economy Alliance provides open source access to 100 innovative

ideas and supports their implementation in practice.


Blue Economy Alliance (2012). Plattform der Blue Economy,

http://www.blueeconomy.eu (16 July 2012).

Pauli, Gunter (2010). The Blue Economy. 10 years, 100 innovations, 100 million jobs.

Paradigm Publications: New Mexico.

Pauli, Gunter (2010). The Blue Economy. Summary for UNEP, http://www.unep.org/

pdf/OP_Feb/EN/OP-2010-02-EN-ARTICLE7.pdf (16 July 2012).

The Blue Economy on YouTube: http://www.youtube.com/watch?v=1af08PSlaIs

(16 July 2012).

http://www.blueeconomy.de/

http://www.unep.org/pdf/OP_Feb/EN/OP-2010-02-EN-ARTICLE7.pdf%20(16

http://www.unep.org/pdf/OP_Feb/EN/OP-2010-02-EN-ARTICLE7.pdf%20(16

http://www.youtube.com/watch?v=1af08PSlaIs


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Cradle to Cradle – Intelligent waste

Profile

Cradle to Cradle is a business model, in which materials circulate in

closed-loop cycles, with their quality either maintained or improved

in order to develop and market safe and healthy products.

Representatives: Michael Braungart, William McDonough


Approach: Scientific and commercial

Nature provides the model for Cradle to Cradle (C2C). In the C2C vision,

all materials— biological and technical— circulate in closed-loop cycles

and products are conceived in such a way that they have no damaging

impact on the environment. Since no nutrients are lost during the cycle,

humans may be as boundless as nature itself, which produces in

abundance. Michael Braungart talks in this context of intelligent waste.

The C2C concept was coined by Michael Braungart and the Environmen-

tal Protection Encouragement Agency (EPEA) founded by him, beginning

with the development of Life Cycle Assessments in the late 1980s. The

C2C model is not restricted to products, but can also be applied to

urban planning of building construction. Worldwide, C2C is practiced by

businesses, organisations and governments, predominantly in the EU,

China and the US. An example in Austria is the ecoregion of Kaindorf in

the federal province of Styria, which has committed itself to an ecologi-

cal closed-loop economy and obtains its energy requirements as far as

possible from renewable sources.

The C2C design is closely linked to eco-effectiveness philosophy,

which goes beyond improvements in efficiency. Rather than aiming to

produce goods that are less damaging to the environment and to

optimise systems and products, the C2C concept has a more ambitious

focus: to produce completely healthy and safe products the quality and

productivity of which is either maintained or improved during their

lifecycle. Whereas efficiency strategy attempts to delay the point at

which materials are emitted from the cycle, with C2C they remain in

closed-loop cycles. Hence the name "Cradle to Cradle"—in contrast to

"Cradle to Grave". Herein lies an important distinction from the Blue

Economy, in which a cascade economy attempts to utilise input factors

Sustainability is boring.

The best things in life

are neither sustainable

nor efficient: think of

Mozart, sex or five-

course Italian meals. We

shouldn't create

restrictions for ourselves!

Michael Braungart,

Founder of EPEA


FUTURE DOSSIER

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for longer. With C2C, materials may ideally be utilised indefinitely,

because they circulate constantly in the closed-loop cycle.

The closed-loop economy of C2C is based on three insights, that derive

from observation of the natural world. The central observation is that

humans are the only life form that creates waste. In the biological cycle,

waste equals food, which means that the remaining materials from one

metabolic process function as the starting point for the next such

process. Accordingly, in C2C for the development of new products the

materials are already designed to be biologically or technically

reusable. The capability for recycling is an integral part of planning

from the start. Consumer goods that consist of biological nutrients and

that undergo wear and tear during use, are designed to be composted in

a non-toxic way and capable of reintegration into the biological cycle.

Consumer goods contain only those technical nutrients that are not

harmful for the environment and that are capable of further use. The

quality of materials is either maintained during production cycles or

actually increased, with the help of increased knowledge and networking

between actors in the production chain (upcycling). Following from the

original concept put forward by Braungart and McDonough, consumer

goods remain the property of the producer and are leased by users.

Thus the consumer is released from any responsibility to ensure that

appropriate disposal is carried out, while the producer is responsible for

reusing the nutrients involved. In a further reference to natural pro-

cesses, C2C uses solar energy as a central energy source, since its un-

limited use is theoretically possible. A further insight gained from

observation of nature is that diversity leads to increased resilience. In

this sense, with C2C, human systems should be adapted to reflect local

conditions and needs.

A much-used image for C2C is that of a flowering cherry tree. In spring,

the tree displays an abundance of blossoms, yet only a few of those

flowers will result in new trees growing. The rest are apparently wasted.

Yet these flowers fall to the ground and can be used by other organisms

as nutrients. Transposing this concept to a concrete example from

business, the C2C philosophy could look like this: During the planning

of a C2C warehouse, other usage options are already under considera-

tion and the warehouse is designed with the capability for later adap-

tation. Thereby, the building can be of use to several generations with

varying needs. All the materials used in the process are not harmful for

either humans or the environment, the biological nutrients are compost-

able and enrich the biological cycle, while the technical nutrients can be

recovered in the same quality after the building's useful life has ended,

and flow anew into production. According to the C2C concept, the


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energy required for erection, maintenance, re-design or demolition

would derive from the sun as an inexhaustible source of energy.

C2C is a concept that utilises non-toxic and environmentally benign

materials to create products that pose no threat to health or to the

environment. This does not concern decreased use of resources but

rather their intelligent utilisation in closed-loop cycles. According to

Michael Braungart, this gives rise to a benign throwaway society, so that

instead of avoiding and renouncing consumption, we may consume with

a clear conscience.


McDonough, William, Braungart, Michael (2002). Cradle to Cradle: Remaking the

Way We Make Things. North Point Press: New York.

Cradle to Cradle Network (2012). Cradle to Cradle: Theoretical Framework.

http://www.c2cn.eu/sites/default/files/C2C_theor_framework.pdf

(16 July 2012).

C2C Österreich (2012). Cradle to Cradle Design Österreich,

http://www.cradletocradle.at/ (16 July 2012).

EPEA (2012). Internationale Umweltforschung GmbH, http://www.epea.com

(16 July 2012).

http://www.c2cn.eu/sites/default/files/C2C_theor_framework.pdf%20(16

http://www.c2cn.eu/sites/default/files/C2C_theor_framework.pdf%20(16


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Factor X—The absolute reduction of resource consumption by a factor X.

Profile

The Factor X concept provides answers to the question of how

environmental consumption can be measured and substantially

reduced.

Representatives: Friedrich Schmidt-Bleek, Ernst Ulrich von

Weizsäcker, Factor 10 Institute

Perspective: At the level of products and services,

corporate or national

Approach: Scientific, commercial, political

Global material consumption has grown over the past 30 years by

almost 80 % and today constitutes some 70 billion tonnes per year. As a

result, humanity is becoming increasingly dependent on non-renewable

materials, such as fossil energy carriers, metals and minerals. If all

people were instead to consume materials to a degree that is sustain-

able in the long term, the inhabitants of the northern hemisphere would

have to reduce their resource consumption by up to 90 % over the next

30 to 40 years at the latest.

This thesis forms the basis for Factor X. It concerns the demateriali-

sation of the economy, i. e. reducing material consumption worldwide

to a degree that is sustainable. There is no expert consensus about the

dimensions of the reduction in resource consumption needed to

approach a sustainable level. Ernst Ulrich von Weizsäcker proposed

Factor 4— doubling global wellbeing by halving resource consumption;

Friedrich Schmidt-Bleek does not believe this is sufficient and proposes

at least a Factor 10 in developed industrialised countries—in other

words, a reduction to a tenth of current dimensions—to allow develop-

ing countries enough room for economic development while wellbeing

in developed countries remains the same. Factor 4 could be achieved

through an annual increase in resource efficiency of 3 %; for Factor 10,

an annual increase in resource efficiency of 5 % would be required.

To be able to measure environmental consumption and progress

towards Factor X, Friedrich Schmidt-Bleek developed the MIPS concept

in the 1990s. MIPS stands for material intensity per service unit.

Willing and capable

countries should not

delay in joining together

to show that the creation

of dematerialised and

social wellbeing is

possible and profitable.

Friedrich Schmidt-Bleek,

President,

Factor 10 Institute

http://www.nachhaltigkeit.info/artikel/dematerialisierung_1121.htm

http://www.nachhaltigkeit.info/artikel/dematerialisierung_1121.htm


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Material intensity is determined by measuring all environmental con-

sumption required for a particular product or service in kilogrammes,

beginning with raw material extraction and including production,

distribution and disposal. Environmentally relevant consumption forms

are renewable and non-renewable resources, land and water. Non-

renewable raw materials include fossil energy carriers, such as oil, gas

and coal, together with ores or minerals, which are required by the

construction industry, for example. Renewable resources include renew-

able raw materials such as wood, and foodstuffs such as grains or fish.

Although these are "renewable" they are also in short supply. The same

applies to drinking water. The earth's land area is subject to absolute

limitations, particularly when fertile land is considered.

To exemplify the concept, Friedrich Schmidt-Bleek invented the ex-

pression "ecological rucksack‖ as a synonym for material input. This

represents the consumption of natural resources in the form of earth,

water and air (or greenhouse gases) required during production pro-

cesses. Rucksacks can also be calculated for individual input categories,

e. g. water rucksacks or CO2

rucksacks. Thus, for example, it may be

calculated that 2kg of resources are required to produce a pork cutlet

(and 13 litres of water), 150 g for a cup of coffee (and 150 litres of

water) or 3 tonnes for a flatscreen television (Hinterberger and Ax,

2013). A sustainable level of resource use would be .approx. 10 kg per

person per day (Hinterberger and Ax, 2013).

Such calculations help businesses to identify opportunities for

potential savings regarding resources and thus to take a step towards

Factor 10. One example is as follows: In the course of a study for SPAR

(SERI, 2010), it was discovered that around 50 % of the greenhouse gas

emissions produced by the Austrian pork industry could be saved if

farmers replaced imported soya feed with soya produced along the

Danube.

This explains the ―MI‖ part of the MIPS concept. The second part of the

concept—the ―PS‖ (per service unit) element—comes into play as soon as

the product or service is used. MIPS is complete when one is able to

evaluate how much benefit is derived from the natural resources

invested in the product. Where disposable products are concerned,

MIPS = MI, while S = 1; in the case of durable products, MIPS approaches

a small part of the original MI. The design of products in accordance

with the MIPS concept begins by considering the desired use/benefit.

Then a technical solution is worked out that will provide this use/benefit

while requiring the lowest possible investment of natural resources and

also being profitable commercially. There are many examples in


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everyday life of how more wellbeing can be created using less natural

resources.

MIPS thus focuses upon the micro-level in economic terms, on indi-

vidual products or services, or buildings or infrastructure. Resource

comsumption can also be measured at the macro-level too, e. g. with

indicators such as DMC, TMR or TMC. Domestic material consumption

(DMC) represents the domestic material extraction including imports

and excluding exports. Total material requirements (TMR) represents

the annual total material flows through an economy in tonnes per

annum, including the ecological rucksacks. Total material consumption

(TMC) takes a consumption perspective and denotes the quantity of

materials in tonnes that an economy consumes annually.

The macroeconomic perspective highlights the political relevance of

Factor X: indeed, the concept is now established within mainstream

international sustainability policy. Resource calculations constitute a

basis for evidence-based policy development. The European Commission,

for example, draws upon this type of calculation for the proactive

development and implementation of resource efficiency. Japan made

Factor 10 a strategic component of its economic policy as early as ten

years ago. The concept also finds application in the ecological labelling

of products. To summarise, the key policy issue concerns how to create

incentives for limiting the consumption of natural resources, avoiding

rebound effects and simultaneously creating employment opportunities

and a competitive economy.


Factor 10 Institute (2012). Factor 10 Institute, http://www.factor10-institute.org/

(24 July 2012).

Hinterberger, Friedrich, Ax, Christine (2013 forthcoming). Ausgewachsen. Vienna.

Schmidt-Bleek, Friedrich (Hrsg.) (2004). Der ökologische Rucksack. Wirtschaft für

eine Zukunft mit Zukunft. Hirzel: Stuttgart.

SERI (2010). Schweinefleischproduktion in Österreich—Klimaauswirkungen und

Ressourceneffizienz. SERI Endbericht, http://seri.at/de/projects/

completed-projects/spar-pork-meat/ (25 July 2012).

Von Weizsäcker, Ernst Ulrich, Hargroves, Karlson, Smith, Michael (2010).

Faktor Fünf: Die Formel für nachhaltiges Wachstum. Droemer: Munich.


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New Forms of Economy and Society, Focusing on the

Problematics of Growth and Aiming to Reduce Growth

Dependency

Steady State Economy—The optimal size of an economy

Profile

The Steady State Economy is a vision of an economy that at an optimal

level no longer grows in physical terms but instead develops further

at the level of sustainable consumption with a stable population.

Concrete macro-economic policies are suggested for a transition

to and implementation of a Steady State Economy.

Representatives: Herman E. Daly, CASSE – Center for the

Advancement of the Steady State Economy


Approach: Scientific

Herman Daly raises the question of the optimal physical size for

economies. Daly and other advocates of this concept observe that the

economic subsystem that is embedded in ecological systems has

outlived its usefulness. Economic growth has already become

uneconomical: as a whole, it no longer produces wellbeing, but rather

reduces the capital stock on which our prosperity is built. On this basis,

Daly criticises the pro-growth orthodoxy and proposes an alternative

vision: the Steady State Economy (SSE).

The SSE is characterised by a constant physical capital stock and a

constant population level, both of which should be maintained at an

optimal level. The SSE is thus a physical concept with the aim of

maintaining an ideal physical capital stock with a minimum of material

throughput. An SSE does not imply a constant level of material

throughput, or less technological advancement, or an unlimited lifespan

for the economic system. It is a strategy for achieving the longest

While technology will

continue to pull rabbits

out of hats,

it will not pull

an elephant

out of a hat—

much less an

infinite series of

ever-larger elephants.

Herman E. Daly,

Professor Emeritus


FUTURE DOSSIER

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possible preservation of our ―Spaceship Earth‖. In Herman Daly‘s vision,

our economy will die some day from senescence and not from the

cancer of ―growthmania‖.

The Laws of Thermodynamics play an important role in this vision,

providing the theoretical framework for the SSE. According to the laws of

thermodynamics, a limited budget of energy with low entropy is

available to humanity with which it is able to run the economy and to

live. If too much of this energy is used for economic activities, then the

complex life-sustaining ecological systems begin to break down.

Herman Daly takes this as the basis for his critique of orthodox

economic theory and the logic of growth, because they run counter to

the second law of thermodynamics (and also against common sense, in

Daly‘s opinion): an economy simply cannot grow indefinitely with a

limited stock of energy and resources.

Based on these theoretical considerations, Daly proposes three

institutions for the achievement and maintenance of an SSE. Firstly, an

institution tasked with maintaining a constant population. As an

instrument for this policy, examples such as tradable birth-licences are

proposed, which the institution would administer. Secondly, an

institution charged with securing a constant physical capital stock and

ensuring that the material throughput is kept within ecological limits.

This aim could for example be achieved through the implementation of

auction-based cap-and-trade systems for natural resources that would

function in a similar way to emissions trading. And thirdly, an institution

for greater fairness of distribution, to restrict the unequal distribution

of constant capital stocks between the members of a stable population.

As a measure promoting distribution fairness, Daly suggests, for

example, the introduction of upper limits for income and personal

assets. Daly‘s ideas constitute a model that builds on the existing

institutions of private property and the fundamental principles of the

market economy. In this sense, it is highly conservative.

To obtain an idea of how this economy might function, one should

picture an ancient forest. At some point, a forest no longer continues to

grow, but is instead a complex living system, in which different life

forms cooperate and compete, and in which new species and eco-

systems develop over time. No longer growing is not synonymous with

stagnation but has far more to do with dynamic balance. Transposed to

an SSE, this means that although it can develop further, it remains within

the regenerative capacities of nature.

Daly is convinced that the SSE could function if it were to be accepted by

the people. He estimates that although such acceptance is not there in


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the short-term, it would at least be plausible on the basis of his

proposals in the not all too distant future. This is particularly true

because all the institutions and measures could be gradually adapted

and expanded.

The fundamental idea of SSE was originally formulated about 150 years

ago by the classical economist John Stuart Mill in his discussion on the

Stationary State. Herman E. Daly, a student of Georgescu-Roegen and

former World Bank economist, has adopted this idea and provided it

with concrete form over recent decades. Today, many economists relate

to Daly‘s ideas and continue to develop them further. The Center for the

Advancement of the Steady State Economy (CASSE) is a scientific

association in the US, whose mission is to promote the idea of the SSE.

The SSE can be interpreted as an attempt to develop a political economy

that takes account of ecological and existential scarcities and that can

be understood by the average citizen. It describes a framework for a

new economy that comprises the definition of an SSE, provides

arguments as to why this is necessary and desirable and makes

suggestions for appropriate institutions and political instruments.


CASSE (2012). Center for the Advancement of the Steady State Economy ,

http://steadystate.org/ (18 July 2012).

Daly, Herman E. (1974). The Economics of the Steady State. American Economic

Review 64(2), 15-21.

Daly, Herman E. (1991). Steady State Economics. Island Press: Washington, D.C.

Daly, Herman E. (2010). From a Failed-Growth Economy to a Steady-State

Economy. Solutions Journal, http://www.thesolutionsjournal.com/node/556

(18 July 2012).


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Degrowth—Downsizing as a way out of the crisis

Profile

Degrowth means reducing consumption and production as a route

towards more social justice, ecological sustainability and wellbeing.

Representatives: Numerous activists and researchers,

particularly in France (e. g. Serge Latouche),

Spain ( e. g. Joan Martinez-Alier, Giorgio Kallis)

and Italy

Perspective: Local to global

Approach: Scientific and civil society

Degrowth denotes economic downsizing. It has decreased con-

sumption and production at its core: less industry, less cars, less

shopping centres and less long-distance travel. Supporters of degrowth

argue that humanity already lives beyond its means, overstretching eco-

logical systems in the process. The limited carrying capacity of eco-

systems and finite availability of natural resources suggests that

degrowth should be imminent. Degrowth advocates therefore pose the

question not of if but of how the upcoming degrowth can be managed in

order to avoid social and ecological collapse. To achieve a "soft

landing" that is ecologically sustainable and accords with social justice,

both consumption and the production of material goods must be

reduced. Less consumption in this context is not synonymous with less

quality of life, but rather the opposite. Human wellbeing can in fact be

increased, as unnecessary tasks and work stress cease to be a burden

and people liberate themselves from material excess.

The degrowth idea arises from the debate surrounding critiques of

growth. Economic growth is characterised as a problem and not as a

solution for social and ecological problems. Technological innovations

and greater resource and energy efficiency are not enough in them-

selves because rebound effects occur that increase production and con-

sumption and thus lead to yet more environmental consumption. In its

critique of neoliberal economic theory and practice, degrowth stands

in opposition to the concept of sustainable development. Any form of

additional economic growth, whether it be sustainable, green, or social,

is seen as legitimising the continuation of the status quo and as a

If one notices on the way

from Rome to Milan that

the train is in fact going

to Naples, just slowing

the engine down won't

help. The only course of

action is to jump out and

join a train travelling in

the other direction.

Serge Latouche,

Professor Emeritus

http://deu.anarchopedia.org/index.php?title=Serge_Latouche&action=edit&redlink=1


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distraction from the contradiction that GDP growth and renaturation on

a sustainable level are mutually incompatible. For degrowth adherents,

the necessity for degrowth—as soon and in as democratic a form as

possible—is the logical conclusion of critiques of orthodox economic

systems and the awareness of social and ecological problems.

The vision of a degrowth society comprises a relocalisation of the

economy, a fairer distribution of income and resources, new and more

democratic institutions, sufficiency, and social and technical innovations

that support a convivial and frugal way of life. According to this

vision, wellbeing essentially derives from many things that are not

dependent on consumption - spaces for social interaction, more time for

friends and family, greater simplicity in life, neighbourly assistance, a

fairer distribution of employment opportunities and reduced material

consumption.

Supporters of degrowth come from diverse fields, although most are

scientists or activists. They pursue very different strategies in promoting

the idea of degrowth. Some constitute protest movements against new

large-scale infrastructure projects (e. g. motorways, nuclear power

stations), others attempt to promote alternative infrastructures

(e. g. solar energy, cycle transport); some focus on individual actions

(e. g. ―voluntary simplicity‖), others on collective measures (e. g. co-

housing); some wish to replace existing institutions, while others wish

to see their adaptation; some work in research fields, whereas others

insist that action at local level is of primary importance. All this makes

clear that degrowth embraces the diversity and complementarity of

strategies.

Nicholas Georgescu-Roegen, who published numerous essays on

economics and degrowth in the 1970s, is viewed by proponents of the

degrowth movement as one of the leading pioneers of the concept.

Nonetheless, it is only in recent years that the movement has obtained

momentum. The first international conference in Paris in 2008, largely

responsible for coining the English term "degrowth" to represent the

concept, marked the beginning of the academic debate and civil society

movement that exist today. Since then, two further international

conferences have taken place: 2010 in Barcelona and 2012 in Venice.

The degrowth movement is particularly active in France (―décroissance‖),

Spain (―decrecimiento‖) and Italy (―decrescita‖). The movement has

undergone a partial institutionalisation through the academic associa-

tion ―Research & Degrowth‖ (R&D), carrying out research related to the

degrowth theme, raising awareness and organising events. A stated aim

of R&D is to bring together scientists, practitioners, activists and civil


FUTURE DOSSIER

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society representatives to work together on developing the building

blocks of a degrowth society.


DegrowthPedia (2012). Information platform on degrowth,

http://degrowthpedia.org (18 July 2012).

Kallis, Giorgos (2011). In defence of degrowth. Ecological Economics 70, 873-880.

Research & Degrowth (2012). Degrowth network, http://degrowth.org

(18 July 2012).

Schneider, Francois, Kallis, Giorgos, Martinez Alier, Joan (2010). Crisis or

opportunity? Economic degrowth for social equity and ecological

sustainability. Introduction to this special issue, Journal of Cleaner

Production, 18/6, 511-518.

Van den Bergh, Jeroen (2011). Environment versus growth—A criticism of

“degrowth” and a plea for “a-growth”. Ecological Economics 70, 881-890.

http://degrowth.org/


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Post-growth society—The renaissance of growth critique

Profile

Post-growth society denotes the vision of an economy that is no longer

dependent on economic growth and precisely because of this

contributes to a better quality of life and longer-term stability within

ecological carrying capacity.

Representatives: Tim Jackson, Niko Paech, Peter Victor,

Irmi Seidl, Angelika Zahrnt

Perspective: Developed countries, predominantly in Europe

Approach: Scientific

The publication of The Limits to Growth 40 years ago caused a furore.

The 1972 report by Dennis und Donella Meadows to the Club of Rome

launched a scientific and socio-political debate looking critically at the

concept of growth that has continued since then in various waves and

levels of intensity. In recent years, such discussions have gained new

momentum.

Critics of growth, who come predominantly from the academic sphere,

argue their case along the following lines:

Growth has created prosperity in the past in early-industrialised

countries, but times have changed.

Meanwhile, from a global perspective, growth has become a part

of the problem rather than a part of the solution, and increase-

ingly runs up against limitations for ecological, social and eco-

nomic reasons.

The western model of prosperity is not transferable to all other

regions of the globe.

A new model of prosperity/wellbeing that coexists with little or

no growth is necessary, feasible and desirable.

Critics of growth believe that the "question of growth" is a fundamental

issue concerning the basis of our very existence. Because economic

growth is inevitably coupled with the consumption of physical resources,

empirical evidence for global environmental problems will

accumulate. Climate change and species loss are prominent key terms in

this respect. Furthermore, there are developing shortages of natural

1970s: There are no

limits

1980s: There might be

limits, but they are far

away.

1990s: The limits might

not be too far away, but

the market will solve the

problem

2000s: The markets

might not function, but

technology will save us.

Dennis Meadows,

Co-Author,

The Limits to Growth


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resources (―Peak Everything‖), upon the unlimited and cheap availability

of which the industrial prosperity model has so far depended. The side

effects of growth are also becoming more visible in the social sphere,

for example regarding unequal distribution of income and assets. In

economic terms too, limits are palpabile as long-term problems set in.

The current escalation on financial markets and the enormous increase

in public and private sector debt are indicators in this respect.

The growth paradigm is regarded as bearing core responsibility for

these developments. Because growth leads to huge problems, but so

also does a lack of growth under existing conditions, and a return to

familiar rates of growth appears highly unlikely, the following is

required: A restructuring of both economy and society is needed until a

system is created that can survive with little or no growth - a "post-

growth" economy and society.

A more encouraging message suggests that growth in the richer

countries even today is not automatically associated with improved

quality of life. Indeed, in some cases the opposite is true. From this

perspective, turning away from the paradigm of growth is seen as an

opportunity to obtain freedom from material ballast and to refocus upon

fundamental - mostly immaterial - values that characterise the good life.

In recent years, particularly since the beginning of the economic and

financial crisis, the critique of growth has developed into a lively

discussion that has also achieved prominence through the media.

Articles and special issues appear regularly in a range of print media;

numerous conferences and workshops take this theme as their focus.

The following section provides an introduction to a number of central

actors in the current debate about growth.

Tim Jackson through his book Prosperity Without Growth has become

the "star" of the growth critique community, achieving recognition far

beyond this sphere. He analyses the relationship between prosperity,

wellbeing, growth and sustainability and argues that prosperity is

possible without growth. Building upon this analysis, Tim Jackson

addresses a catalogue of recommendations to policy-makers, concern-

ing how the transition to a sustainable economy can be undertaken. The

measures he suggests begin with the development of an ecological

macro-economy that creates stability within ecological carrying capacity

and in structural terms is no longer driven by increasing consumption;

secondly, safeguarding chances for realising the unfolding of human

potential; thirdly, adhering to ecological limits; and finally, creating

room for new possibilities and design opportunities, so that the vision—

We are persuaded to

spend money we don‘t

have on things we don‘t

need to create

impressions that won‘t

last on people we don‘t

care about.

Tim Jackson,

Professor at the

University of Surrey


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―human flourishing‖ within the ecological limits of a finite planet - can

be made a reality.

Niko Paech makes the case in his latest book Liberation from excess.

The road to a post-growth economy for a departure from the conven-

tional prosperity model. Why? Firstly, because people in modern

consumer societies live beyond their means, because the prosperity

created by growth is only made possible by "ecological plundering".

Secondly, because all attempts to decouple growth from ecological

damage through technological innovations are, in the best case,

doomed to fail and in the worst case, going to make the situation even

worse. As an alternative programme, Niko Paech proposes a post-growth

economy that focuses on sufficiency and subsistence. He argues for a

partial dismantling of industrial and above all global value added

processes based on the division of labour in favour of strengthening

local and regional models for self-sufficiency. He also recommends

casting off unnecessary material ballast, to make way for more time and

greater happiness. Concrete measures for the proposed restructuring

and dismantling of the economy range from repair, maintenance and

servicing practices to shorter transportation distances, more meaningful

value added, based on craftsmanship skills, regional complementary

currencies, strengthened communal use of goods and sustainability

education as a compulsory subject in schools. The conceptual basis was

developed in 2007 and has formed the subject of ongoing discussion

since then.

Irmi Seidl and Angelika Zahrnt published the book Postwachstums-

gesellschaft. Konzepte für die Zukunft (Post-growth Society: Concepts for

the Future) in 2010, which enlivened debate surrounding this theme in

Germany and throughout the German-speaking world. The book's focus,

as the title indicates, lies with the social transformation that is required

alongside an economic, technological and structural shift, if liberation

from growth dependency is to be achieved. Essentially, this involves

reflecting on how key areas of social life and institutions that currently

drive growth or are dependent upon it can be restructured so that

politics, society and the economy can relinquish the pursuit of growth.

Areas examined include old-age provision, health services, education,

employment, the financial markets, state finances and citizenship. For

each area, experts were invited to put forward realisable concepts and

to draw upon practical experience that would contribute to the develop-

ment of a post-growth society. In conclusion, theses were formulated

that would provide focal points for social discourse on this theme. For

example, where old-age provision was concerned, it was suggested that

the monetary inter-generational contract should be supplemented by a

non-monetary, social inter-generational contract. Another proposal

Jettisoning the ballast of

affluence would give us

the chance to focus on

essentials instead of

routinely making

ourselves dizzy on the

treadmill of shopping for

self-fulfillment.

Niko Paech,

Professor at the

University of Oldenburg

Living well instead of

working a lot.

Angelika Zahrnt,

Honorary Chair,

BUND

http://www.zukunftsfaehig.de/ergebnis/1fzahrnt.htm


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concerned transforming the healthcare system into a cost-effective

system based on solidarity, co-defined by personal responsibility. A

research map of a post-growth economy was developed for scientists, to

identify research questions and to continue to address these themes.

Peter Victor presents a macro-economic model for the Canadian

economy in his book Managing Without Growth. Slower by Design, Not

Disaster that explores the following question: can full employment,

poverty reduction, fiscal stability and reduced greenhouse gas emissions

be achieved without substantial economic growth? He describes various

scenarios for the Canadian economy and demonstrates how, with the

application of different policy measures, the key social, economic and

ecological goals are also achievable without substantial growth. Thus

within a relatively conservative and applicable framework, it becomes

clear that a choice of appropriate policy measures can enable a healthy

life and economy even in the absence of growth.


Postwachstumsgesellschaft (2012). Blog on the post-growth society,

http://www.postwachstum.de (18 July 2012).

Jackson, Tim (2009). Prosperity Without Growth. Earthscan: London.

Miegel, Meinhard (2010). Exit. Wohlstand ohne Wachstum. List: Berlin.

Paech, Niko (2012). Liberation from Excess. The Road to a Post-Growth Economy.

Oekom: Munich (forthcoming).

Seidl, Irmi, Zahrndt, Angelika (2010). Postwachstumsgesellschaft. Konzepte für

die Zukunft. Metropolis: Marburg.

Victor, Peter A. (2008). Managing Without Growth. Slower by Design, Not

Disaster. Edward Elgar: Cheltenham.

Managing without

growth seems like a very

radical, even crazy idea,

yet for all but the tiniest

sliver of time since

humans evolved,

humanity has managed

without growth.

Peter Victor,

Professor at the

University of York


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New Forms of Economy and Society, Placing Central Importance

upon Human Wellbeing

Buen Vivir – Spirit of change in the Andes

Profile

The South American concept of the "good life" aims for balance with

nature, the reduction of social inequality, an economy based on

solidarity and a pluralistic democracy with new opportunities for civil

society participation.

Representatives: Alberto Costa (Ecuador) and

Eduardo Gudynas (Uruguay)

Perspective: Starting points are Ecuador and Bolivia,

with a view to global relevance

Approach: Political, scientific, civil society

Buen Vivir means "the good life". The South American concept is a

response based on critical systems thinking to Western development

thinking in recent decades. The neoliberal reforms that significantly

influenced the political agenda in South America in the 1980s and 1990s

have done little to improve the social situation of the poor and to

dismantle the glaring inequalities that exist in the region (Fathauer,

2011). Buen Vivir presents a counter model to the capitalist life model. It

may be understood as a new development concept that wishes to move

away from the Western paradigm of prosperity.

Sumak Kawsay is the original, multi-faceted Quechua term. Sumak

encompasses the good and the beautiful, the sublime and the

wonderful. Kawsay signifies life, understood as an active process that is

perpetually changing. The Spanish translation of Sumak Kawsay is Buen

Vivir (good life) or Vivir Bien (live well) (Schmid, 2011).

At its core, Buen Vivir stands for a post-modern, post-colonial and post-

capitalist concept that represents a return to the philosophy of life

held by the indigenous peoples of South America. Proponents of the

concept place importance on indigenous traditions and values and also

upon diversity in terms of realities and forms of living (pluralism) and a

new understanding of nature. According to this, nature has an intrinsic

The concept of Buen Vivir

depends upon society

asking itself this

question: how much

should we consume, how

should we evolve, are

there alternatives to the

consumer society?

Jorge Juardo,

Ecuadorian Ambassador


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value, and excessive exploitation and instrumentalisation of nature as a

resource are to be condemned. Buen Vivir is seen as only conceivable

within a social context. Alberto Costa formulates the concept thus: Buen

Vivir for all, not Dolce Vita for the few.

Buen Vivir is thus in stark contrast to the idea of an individual good life

in the Western tradition, that for example derives from Aristoteles or

Amartya Sen. With Buen Vivir, it is not humankind that is central but

rather all existence, as a unified whole (Schmid, 2011). It would

therefore be too limited an interpretation to equate the Buen Vivir

philosophy with increasing individual wellbeing and high standards of

living.

Although Ecuador is the country that is primarily associated with Buen

Vivir, the good life is also the subject of debate in other South American

countries, such as Bolivia, where Vivir Bien is also prominent. These

progressive governments have halted and partly reversed privatisation

and place emphasis upon a stronger role for the state in economic and

social policy. And they seem to have had success with this approach: the

Presidents of Bolivia (Evo Morales) and Equador (Rafael Correa) have

both received affirmation through at least one election success and their

popularity appears to be increasing overall (Fatheuer, 2011).

In both countries, Buen Vivir has attained constitutional status. The

constitutions were voted for by a large majority in 2008 in Ecuador and

in 2009 in Bolivia and are seen by many as pioneering instruments of

fundamental structural change. In the constitutions, the right to a good

life and nature as the subject of rights are enshrined as guiding

principles. Among these principles are the right to nutrition, health,

education and water. In this way, human rights are complemented by

the rights of the natural world and vice versa. Eventually, the attempt to

implement Sumak Kawsay in politics should result in a permanent

endeavour to effect the participatory democratisation of society, with a

solid foundation in citizenship (Acosta, 2009).

Since the constitutions came into force, partial successes have been

observed. For example, in Yasuní National Park in the Amazon Basin,

Ecuador has allowed oil reserves to remain untapped in return for

payments from the international community. President Correa unleashed

a furore after 2007 with the unique Yasuní-Initiative. Texaco (or

Chevron) and BP were ordered by the Ecuadorian courts to pay

compensation in 2011 und 2010 for the huge environmental damage

caused by their oil production activities in the Amazon region. This

action was possible because Ecuador is the only country that recognises

nature as a subject possessing rights (Schmid, 2011). At the same time,


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the concept is controversial because there are many aspects that show

just how difficult it is to implement the Buen Vivir vision in Realpolitik. It

remains to be seen whether a new boom in raw materials associated

with anticipated high profits will prevail and if oil production in nature

conservation areas will continue in future.

The Ecuadorian Ambassador to Germany, Jorge Jurado, gave an interview

to the German Tageszeitung newspaper in April 2012 in which he said

that he saw great opportunities and options for the poorest developing

countries in embracing the concept of Buen Vivir, while in the highly

developed industrialised countries, the opportunity lies in opening up a

discussion about the limits to growth.


Fatheuer, Thomas (2011). Buen Vivir. Eine kurze Einführung in Lateinamerikas

neue Konzepte zum guten Leben und zu den Rechten der Natur, Volume 17 in

the "Ökologie" essay series. Heinrich-Böll-Stiftung: Berlin.

Acosta, Alberto (2009): Das “Buen Vivir”. Die Schaffung einer Utopie, in: Juridicum

2009/4.

Schmid, Elisabeth (2011). Die Frage nach dem guten Leben. Ein kritischer

Vergleich des Fähigkeitenansatzes von Amartya Sen mit dem

verfassungsrechtlichen Leitprinzip des Sumak Kawsay in Ecuador. Masters

thesis: Danube University Krems.


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Common Welfare Economy—A growing democratic alternative

Profile

The Common Welfare Economy offers a vision of an alternative

economic system, built upon values that support common welfare,

such as cooperation and solidarity. It aspires to be an open-ended and

participatory process of development.

Representatives: Christian Felber,

currently approx. 500 pioneercompanies

Perspective: National

Approach: Civil society

The Common Welfare Economy describes central elements of an

alternative economic framework. The goal is to establish a legally-

binding framework in which an economy oriented towards the common

good can be embedded. Common welfare economics means shifting

entrepreneurial motivation away from competition and maximising

profits towards the pursuit of the common good and cooperation.

The Common Welfare Economy can thus be understood as an attempt to

build on values that allow interpersonal relations to flourish. These

include confidence building, responsibility, empathy, mutual support

and cooperation.

The proposed model is built upon two key elements: the common

welfare balance sheet and 20 cornerstones regarding content. Behind

the Common Welfare Balance Sheet lies the idea that entrepreneurial

success should no longer be measured in terms of monetary gain (as in

conventional balance sheets), but rather in terms of a company's

progress towards a Common Welfare Economy. Adherents aim to

measure "what really counts", which, when compared to current

economic behaviour, is more beneficial in social, ecological, democratic

and solidarity terms. The more companies could be persuaded to act

according to common welfare values, the better their Common Welfare

Balance Sheet would be. A positive balance sheet should be rewarded by

a range of incentives and "systemic reinforcement" measures. This

means that companies would be rewarded for cooperation, e. g. in the

form of lower taxation or cheaper credits, and would be disadvantaged

by competition. The Common Welfare Balance Sheet would be a

voluntary instrument set up by companies themselves but that which

There is always

an alternative.

Christian Felber,

independent journalist

and pioneer of the

Common Welfare

Economy


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would eventually take on a legally binding character. Identifying which

concrete elements should constitute such a balance sheet is the subject

of an ongoing process of development, with a large number of

participants. Version 4.0 of the Balance Sheet is the most recent version

of this model.

The 20 content cornerstones of the Common Welfare Economy are

the subject of ongoing discussion and further development. They

contain a number of innovative suggestions. One example at the macro-

economic level involves replacing GDP as the indicator of economic

success with the Common Welfare Product. Capping the transfer of

inheritance assets ( e. g. at 500 000 Euros per person) would produce a

democratic endowment for succeeding generations, and thus ensure

greater equality of opportunity. Directly elected regional economic

parliaments are proposed, democratic commons in education, health,

social, mobility, energy and communication sectors, and a democratic

bank. The creation of a fair trade area (―Common Welfare Area") is

aimed at, while the education system should communicate the values of

common welfare, e. g. 'emotionology', values and ethics, communi-

cation, democracy, nature and environmental education/experience, and

body awareness. All 20 cornerstones should be developed through a

broad participatory process. At the end of the process, these key

aspects should be anchored politically and reflected in legislative

changes through the work of democratic conventions. Those aspects

of the model that receive popular approval through referenda should

then be anchored in the constitution.

Initial traces of the developmental process towards a Common Welfare

Economy since 2001 should be noted here. The Common Welfare

Economy was presented in book form in 2010, with contributions from

numerous advocates of the concept. Author and political activist

Christian Felber brought together the basic principles of the concept in

detailed form. 70 companies put themselves forward as the first

advocates of the concept in the business world. Shortly thereafter, The

Common Welfare Economy process began with the vision of expanding

the community of participating companies and pioneers. 2012 marks

the beginning of Fiscal Year II for the pioneer companies involved;

approx. 200 companies plan to produce a Common Welfare Balance

Sheet. At the end of 2011, approx. 500 companies from 13 countries

had given their support for the initiative. In numerous regions the first

so-called energy fields (regional support groups) of individuals

committed to implementing and developing the Common Welfare

Economy were founded. The idea, which originated in Austria, has thus

continued to expand and grow in recent years.


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Source of further information and links

Felber, Christian (2012). Die Gemeinwohl-Ökonomie. Aktualisierte und erweiterte

Neuausgabe. Deuticke: Vienna.

Felber, Christian (2011). Die Gemeinwohl-Ökonomie. Eine demokratische

Alternative wächst. 20-Punkte-Zusammenfassung,

http://www.christian-felber.at/schaetze/gemeinwohl.pdf (18 July 2012).

Gemeinwohl-Ökonomie (2012). Gemeinwohl-Ökonomie. Ein Wirtschaftsmodell mit

Zukunft, http://www.gemeinwohl-oekonomie.org/ (18 July 2012).

Gemeinwohl-Matrix: http://www.gemeinwohl-oekonomie.org/

wp-content/uploads/2012/03/Gemeinwohl-Matrix_4.0_2012.pdf

(18 July 2012).

http://www.christian-felber.at/schaetze/gemeinwohl.pdf%20(18

http://www.gemeinwohl-oekonomie.org/%0bwp-content/uploads/2012/03/Gemeinwohl-Matrix_4.0_2012.pdf%20%0b(18




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The Solidarity Economy—Putting people at the centre

Profile

Solidarity economies are often local alternative forms of economic

system in which people take economic matters into their own hands

with the help of basic democracy and a needs-oriented approach.

Representatives: Numerous actors

Perspective: Local to global

Approach: Predominantly self-organised

There is a broad spectrum of alternative economic forms that place

human needs in the centre of their activities. According to the premise

that the economy exists to serve the people, those participating in a

solidarity economy do not do so for profit. ―Solidarity" means that

economic activities are oriented at answering the needs of participants

and should provide benefits for them. In a solidarity economy,

solidarity stands in opposition to competition, and also means taking

account of the needs of future generations, and thus taking care of the

natural environment. Alternative economic systems that take such form

are brought together under the umbrella term of the solidarity economy.

Although there is no clear single definition of what solidarity economics

comprises, a number of characteristics can be identified.

Common aspects of solidarity-oriented economic forms:

They contribute to sustaining life;

are self-organised, meaning that the means of production are

collectively owned;

are built on cooperation, which means that decisions are taken

collectively;

foster a relationship with society based on solidarity, e. g.

through collective associations and platforms (Exner, 2012).

The various forms of solidarity economy assume a common guiding

philosophy: that all persons have rights of access in accordance with

human dignity to everything they need in physical, psychological and

intellectual terms in order to be able to lead a good life in the social con-

text of their choice (Voß, 2010). In other word, what matters is: ―Using,

not owning‖, ―contributing, not exchanging‖, ―sharing, not purchasing‖.

It is people and their

needs that are important,

not competition, profit

maximisation and

growth.

Elisabeth Voß,

independent journalist


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The term "solidarity economy" must be understood as having a broad

meaning and as part of a negotiation process involving all the partici-

pants. It may relate to theoretical concepts or to practical projects. The

form it takes may range from self-managed businesses to local direct

marketing, exchange networks and fair trade, to cooperative associa-

tions, ecovillages, regional currencies, community gardens or living

projects, urban gardening, or to open source projects and community-

organised healthcare, cultural and educational institutions. In some

cases, solidarity economies are embedded in capitalist market struc-

tures, while in others they clearly reject market economics and see

themselves as an alternative to capitalism. In most cases, solidarity-

based economic activities are established at local level. Despite this,

there are instances in which large geographical distances are involved,

for example in the case of fair trade practices.

Originally, the term "solidarity economy" came from South America. In

the 1980s, the Chilean Luis Razeto Migliaro attempted to explain how

people living in poverty who joined together in small collectively-

managed companies, would be able in spite of their lack of resources

and low social status to achieve economic success. Razeto described the

ingredients of their success with the ―Factor C‖—Companerismo

(friendship), Cooperacion (cooperation), Comunidad (community),

ComUnion (unity in diversity), Colectividad (collectivity), Carisma

(charisma), Compartir (sharing).

Due to the economic crisis of the 1980s, the solidarity economy

experienced an enormous upswing in popularity, particularly in Brazil.

In 2003, the Brazilian government established a dedicated State

Secretariat for Solidarity-Based Economy, with the aim of mapping out

solidarity-oriented activities throughout the country and subsequently to

offer them support in the form of targetted assistance. Today, the

solidarity economy has a widespread presence in many South American

countries, both in political discourse and in practice. In the German-

speaking world, the early roots of solidarity-oriented economics are

found in the cooperative movement of the 19th century. At that time,

people joined together in cooperative business practices such as

consumer, credit and housing cooperatives to escape from the negative

consequences of industrialisation. Although this movement began as a

form of basic democracy, many of today's centralised cooperative

structures (for example, the Raiffeisen Confederation) have little in

common with forms of solidarity-based economy. The South American

concept of the solidarity economy was propagated by scientists such

Elmar Altvater. In 2006, the first Congress on Solidarity Economies took

place in Berlin, the impulses from which led to a further congress in

2009 in Vienna. The next Solidarity Economy Congress is due to take


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place in Vienna in February 2013. The current increase in the concept's

popularity has led to the founding of Solidarity Universities (Kritische

Solidarische Universitäten) in Germany and Austria. The awarding of the

Nobel Prize for Economics to Elinor Ostrom also directed public

attention to the solidarity movement and the closely related debate

surrounding common goods (or "commons"). Ostrom carried out

research into the notion of common goods and their beneficial use

beyond state and private property.

Examples of solidarity economics can often be found still—or again—in

the area of food sovereignty. In the course of discussions about Peak

Oil and climate change, agriculture and nutrition have once again

emerged as existential themes. The spectrum of forms taken by

solidarity economics begins with food cooperatives, in which people

join together to purchase regional and organic foodstuffs. In this type of

buyers' cooperative, members also take on work e. g. goods distribution

or accounting. By eliminating intermediary trade, goods can be provided

that are high in quality but low in cost. The concept of community

supported agriculture (CSA) goes a step further. An Austrian example

of this practice is the garden estate Ochsenherz Gärtnerhof in

Gänserndorf. This community-owned Demeter (biodynamic) farm was

set up to supply vegetables to a community of some 200 people, who in

return undertake the work involved in running the farm (Exner, 2012).


Exner, Andreas und Kratzwald, Brigitte (2012). Intro Solidarische Ökonomie &

Commons. Mandelbaum: Vienna.

SÖ (2012). Initiative für ein Netzwerk Solidarische Ökonomie,

http://www.solidarische-oekonomie.de/ (18 July 2012).

Voß, Elisabeth (2010). Wegweiser Solidarische Ökonomie. Anders Wirtschaften ist

möglich. NETZ für Selbstverwaltung und Selbstorganisation e. V.: Dortmund.


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Transition movement—Moving into the post-oil era

Profile

The transition movement comprises groups of committed citizens who

join together in cities and smaller communities to respond to climate

change and Peak Oil by minimising their carbon footprint and increase

their resilience to supply deficits triggered by oil shortages.

Representatives: Rob Hopkins, Naresh Giangrande,

Louise Rooney

Perspective: Local, regional

Approach: Civil society

In the search for responses to climate change and Peak Oil, Transition

Communities aim to actively manage the transition to a resilient, self-

sustaining society. Their goal is to free themselves from a dependency

on fossil energy carriers and to practice a low carbon lifestyle. They view

themselves as a form of "social experiment" and as being on a learning

path. Rather than waiting for governments, politicians and other

institutions to take action, these communities wish to play an active role

themselves. With governments taking too long to act and individuals

being able to achieve little on their own, as a community ―it might be

just enough, just in time‖.

The term ―Transition Movement‖ originated in Ireland and Great Britain,

where the idea of transition as the futher development of the

permaculture concept was born. The first Transition Towns were

established in Kinsale (Ireland) und Totnes (England) in 2005, at the

initiative of Rob Hopkins. In 2008, Hopkins published the Transition

Handbook as a 12-step guide to support further Transition Initiatives.

Supported by the Transition Network founded in 2007, the movement

spread throughout the world. Today, there are Transition Initiatives in

the US, in Thailand, India, Nigeria, Brazil and Austria, as well as in many

other countries.

Transition Initiatives have a common goal of making a transition from

energy-dependent to locally-oriented and resilient communities.

Resilience in this context is understood as a local community's capacity

to withstand external disruption, for example supply deficits caused by

oil shortages. The availability of cheap oil facilitated a huge increase in

Transition doesn‘t wait

for permission to get

started, it is about

ordinary people making

things happen within a

bigger strategic context.

Rob Hopkins,

Co-founder

Transition Towns


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our standard of living in recent decades; at the same time, it made our

everyday life dependent on oil, whether for heating and transport, or as

a raw material for plastics, plant protection products, fertilisers,

medicines, and many other products. The big question facing

supporters of Transition Towns is how people will be able to continue to

live well (or better!) when the oil supplies upon which our current

prosperity is built run out. Transition Communities are looking for

answers to this question. Their concern is not to spread panic about the

situation but rather to seize the opportunity to take control of their lives

and reorganise them in a sustainable way.

The Transition movement does not provide readymade answers. It sees

itself as providing both the inspiration and catalyst for change. Concrete

ideas and projects are developed at community level in open and

creative consultation processes. Providing support for local structures

is of key importance, and takes different forms depending on the

initiative: self-sufficiency through food cultivation, local currencies, solar

panels, local energy companies or energy saving schemes. In Totnes, the

first Transition Town, many activities have been put into practice

including the foundation of a local currency, the "Totnes Pound", and

education and training projects in which traditional repair and

craftsmanship skills can be relearned, training courses in energy saving

and the development of an energy conversion action plan, a community

garden project and projects aimed at regionalising food production and

trading.

The Transition movement is diverse and is constituted by the individuals

who take part in their respective local communities. It is a grassroots

movement that sees the answer to climate change and Peak Oil in

remaking society in an optimistic and creative way to be both resilient

and free from its dependency on oil.


Hopkins, Rob (2008). The transition handbook. From oil dependency to local

resilience. Green Books: Totnes.

Rob Hopkins on TED talks, http://www.ted.com/talks/

rob_hopkins_transition_to_a_world_without_oil.html (18 July 2012).

Transition Network (2012). Transition Network,

http://www.transitionnetwork.org/ (16 July 2012).

Transition Austria (2012). Transition Austria, http://transitionaustria.ning.com/

(16 July 2012).

Transition Initiativen (2012). Transition Initiativen in Deutschland, Österreich und

der Schweiz, http://www.transition-initiativen.de/ (16 July 2012).

http://www.ted.com/talks/%0brob_hopkins_transition_to_a_world_without_oil.html%20(18

http://www.ted.com/talks/%0brob_hopkins_transition_to_a_world_without_oil.html%20(18

http://www.transitionnetwork.org/

http://transitionaustria.ning.com/

http://www.transition-initiativen.de/


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New Forms of Measuring Wellbeing and Progress

Profile

How do economic growth, prosperity, quality of life and wellbeing fit

together? Is our living situation actually continuing to improve?

A range of initiatives have addressed these and other similar

questions in order to find out how societal progress and prosperity

can be measured in a more comprehensive fashion than is possible

using GDP.

Representatives: EC, OECD, statistical authorities

Perspective: National, EU, international

Approach: Political and scientific

The following descriptions portray exemplary political initiatives that

share a common objective to record and measure prosperity and

progress in a more comprehensive fashion and to use this as a basis for

policy recommendations.

Beyond GDP

The aim of this initiative developed by the European Commission is to

identify which indicators are best suited to measure progress and how

these can be integrated into decision-making processes and public

debate. The second key milestone after the Beyond GDP conference that

took place at the end of 2007 is the communication entitled GDP and

Beyond from August 2009. The communication sets out a concrete

roadmap in the form of five key actions for the development of a new

set of indicators for progress that can be used alongside GDP. These

include, for example, high-level social and ecological indicators in near

real-time or more accurate reporting on distribution and inequalities.

The Commission is currently working to implement the communication.

Interim results are expected in an implementation report towards the

end of 2012.

http://www.beyond-gdp.eu

http://www.beyond-gdp.eu/


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Measuring the Progress of Societies

The global project entitled Measuring the Progress of Societies was

launched in 2008 to support the development of economic, social and

environmental indicators with the aim of obtaining a more

comprehensive picture of social progress. The project is hosted by the

OECD and is primarily aimed at supporting the use of indicator sets as

the foundation for evidence-based decision making. The project can be

described as a network of networks, connecting global actors who are

working towards an improved form of measurement for wellbeing and

progress, e. g. statistical authorities, public and private organisations

and scientists. Wikiprogress is the project's online platform. In the

framework of the OECD World Forum, actors meet to make an interim

assessment and to promote new developments. Meetings have taken

place in 2004 in Palermo, in 2007 in Istanbul and in 2009 in Busan

(Korea); the 4th OECD World Forum is due to take place on 16-19

October 2012 in New Delhi.

http://www.wikiprogress.org/

OECD Better Life Initiative

The Better Life Initiative is the OECD's own contribution to the initiative

Measuring the Progress of Societies. The OECD report How’s Life

analyses 11 areas of life that are seen as critical in determining

wellbeing, e. g. domestic and working life, environment and satisfaction.

Building upon this analysis, the Your Better Life Index was developed

with the aim of improving policy decisions to produce increased quality

of life. The Index was presented in May 2011 and addresses the

question of what is important to people in life. It is based on 20

individual indicators and is currently calculated for 34 OECD countries.

The Index is continually updated and improved with current data and

new indicators, and country coverage is being expanded.

http://www.oecdbetterlifeindex.org/

http://www.oecdbetterlifeindex.org/


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Stiglitz-Sen-Fitoussi Commission

In 2008, then French President Nicolas Sarkozy set up a high-level

Commission on the Measurement of Economic Performance and Social

Progress, led by Nobel Prize recipients Joseph Stiglitz and Amartya Sen

together with Jean-Paul Fitoussi. In the framework of three working

groups, questions regarding classical measurement of GDP, quality of

life and sustainability were addressed. The Commission's key result, a

report on the current status of research in these three areas of

measurement, was presented in September 2009 and 12 policy

recommendations were made, which are subsequently being

implemented by the French National Institute of Statistics and Economic

Studies, INSEE. Recommendations include, for example, a stronger focus

on households, on aspects of distribution (income, assets and

consumption), and on physical environmental indicators. The OECD

provides the international forum within which this discussion may

be continued.

http://www.stiglitz-sen-fitoussi.fr/en/index.htm

Measuring subjective wellbeing in Great Britain

At the end of 2010, the British Prime Minister David Cameron

commissioned the Office of National Statistics (ONS) to undertake the

measurement of subjective wellbeing in Great Britain. The ONS is

considering questions of subjective wellbeing for inclusion in the

Integrated Household Survey (the largest national survey of social data

after the national census). The process began with a public consultation

to discover which domains of life and which factors play a key role in

contributing to the wellbeing of the British population. This forms the

basis for developing questions that are likely to be brought together to

produce a composite index of national wellbeing. Preliminary results

regarding subjective wellbeing analysis were published in July 2012.

Eventually, the results over time should show whether people's lives are

improving and also contribute to the design of policy measures capable

of increasing wellbeing.

http://www.ons.gov.uk/ons/guide-method/user-guidance/

well-being/index.html

http://www.stiglitz-sen-fitoussi.fr/en/index.htm


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Findicator: an indicator set for social progress

Findicator is a joint project of the Finnish Prime Minister's Office

together with Statistics Finland. Current data, graphs, tables and

analyses relating to approx. 100 indicators for social progress are

presented and continually updated in online form. Findicator pursues

four aims: to provide information about social development in Finland,

to improve provision of and access to information in this context, to

support evidence-based decision making, and to develop links to similar

sources of information internationally.

http://www.findikaattori.fi/enlink

Measuring Gross National Happiness in Bhutan

In 1972, the 4th King of Bhutan declared Gross National Happiness

(GNH) to be the key consideration for national politics. In 2008, GNH

was accorded constitutional status; this idea, however, has a far longer

history. As early as 1729, it was written in the Bhutan legal code that: ―if

the Government cannot create happiness for its people, there is no

purpose for the Government to exist.‖1

GNH is a multidimensional

concept that not only comprehends subjective wellbeing and happiness

but also, for example, concerns regarding fellow human beings and

nature. Progress towards a greater level of gross national happiness is

measured using the GNH Index. The Index looks at nine domains –

psychological wellbeing, time use, community vitality, cultural diversity,

ecological diversity and resilience, living standards, health, education,

and good governance. These are measured with the aid of 33 cluster

indicators. Following a pilot phase that began in 2006, the first national

survey was carried out in 2010. According to the results of this survey,

10.4 % of Bhutanese people are ―unhappy‖, 47.8 % are ―narrowly happy‖,

32.6 % are ―extensively happy‖‘; and 8.3 % ―deeply happy‖. The survey

data can be analysed to reveal which sectors of the population are

unhappy in which areas. This should enable decision makers to improve

living conditions for less happy members of the population more

effectively.

http://www.grossnationalhappiness.com/

1 quoted from: Ura, Karma, Alkire, Sabina, Zangmo, Tshoki, Wangdi, Karma (2012).

A Short Guide to Gross National Happiness Index. The Centre for Bhutan Studies:

Thimphu, Bhutan.


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Synthesis

The Italian philosopher Antonio Gramsci once noted: "The crisis consists

precisely in the fact that the old is dying and the new cannot be born."

With this in mind, one could characterise the alternatives presented here

as building blocks for the transition from an economic system that is

beginning to disintegrate as its limits and limitations become ever more

apparent, for example in monetary (e. g. the debt crisis) or in environ-

mental policy ( e. g. climate crisis) terms. When the myth that we are

able to live beyond our means indefinitely is exposed as such, the

question as to what might replace it arises. This is the question to which

alternative concepts of economy and society, such as those described

here, attempt to provide an answer.

In spite of the apparently unbridgeable philosophical differences and

ideological perspectives of the many different approaches, similar ideas

and aims keep coming to the fore. The vision of a new quality of life and

coexistence shines through all these concepts. At their core lies the

desire for a good life and high quality of life—not only for us but also

for our children and grandchildren, and for people who are currently

living in poverty.

In terms of implementation and fleshing out these approaches in

concrete terms, clear differences do emerge, however: some call for the

economy to be emancipated from growth, while others go further and

suggest that the economy as a whole should be subject to a controlled

form of downsizing. Others assume that ecological and social inno-

vations and altered incentive structures will be sufficient to steer the

engine of growth and the hoped-for maintenance and expansion of

prosperity towards sustainable development.

A frequentcriticism of alternative concepts of economy and society is

that, as utopian visions of a different and better life, whether proposed

or partially put into practice, they can exist only in niches rather than

the mainstream. Critics ask: Is it not utopian to imagine that such ideas

could ever acquire the power to shape reality on a broad basis? The

counter-argument can be made, however that tolerance and acceptance

for new ideas are often achieved more quickly that expected. Ten years

ago, who would have thought that Irish pubs and Bavarian beer tents

would be smoke free, or that the 2007 elections would produce a black

President in the US, that investment bankers would be out of work, or

that Facebook would have almost 1 billion users?

The search for alternatives is thus well underway, and economic

practices that were dismissed a few years earlier as utopian are now the


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subject of serious debate. Examples such as those coming from Bhutan,

Bolivia and Ecuador show that the search for alternatives is not limited

to those countries that are already prosperous. However, compelling

visions of how the economic and social systems of tomorrow might look

are not all that is required. Courageous people who are prepared to

leave familiar pathways and take the road less travelled are also needed.

Erich Fromm describes the process of change in his work ―To Have or to

Be” thus:

―Not to move forward, to stay where we are, to regress, in other words

to rely on what we have, is very tempting, for what we have, we know;

we can hold on to it, feel secure in it. We fear, and consequently avoid,

taking a step into the unknown, the uncertain; for indeed, while the step

may not appear risky to us after we have taken it, before we take that

step the new aspects beyond it appear very risky, and hence frightening.

Only the old, the tried, is safe; or so it seems. Every new step contains

the danger of failure, and that is one of the reasons people are so afraid

of freedom. [...] Yet in spite of the security of having, people admire

those with a vision of the new, those who break a new path, who have

the courage to move forward.‖2

Although experience shows that we as human beings share a tendency

to adhere to what is tried and tested, we must recognise that today the

potential for failure is also inherent in every familiar step taken. In this

sense, we need to roll up our sleeves and join the many courageous

actors and creators helping to produce strategies of co-existence and

common economic visions for the future. We do not need to wait for a

grand plan to emerge. Many small pieces of the puzzle are already in

place and are helping to facilitate the transition.

2 Erich Fromm (1976) To Have or to Be. London, New York: Continuum, p.88.

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