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Gaian Economics living well within planetary limits


Economic Key Editors

Jonathan Dawson Ross Jackson and

Helena Norberg-Hodge

Gaian Economics living well within planetary limits

Permanent Publications


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Introduction To The Four Keys Series

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

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

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

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G AIAN ECONOMICS

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IN T RO D U C T I O N

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MODULE 1

Shifting the Global Economy towards Sustainability 5'(*1",,(/0*B$2#.$*(12/2-+*)%)*/20*(-(,B(*#+*.11%)(/0R*Z2,Y*.&*%&*&2-(0%-(&* %-:$%()*#+*2",*:2$%0%1.$*($%0(&Y*%&*%0*0'(*,(&"$0*2P *&2-(*/.0",.$*(J2$"0%2/.,+* :,21(&&R*@.0'(,Y*%0*%&*0'(*:,2)"10*2P *1.,(P"$$+*1'2&(/*./)*(.&%$+*%)(/0%P%.#$(* :2$%1%(&*./)*&0,"10",.$*.,,./B(-(/0&R* 5'%&*-2)"$(*U%$$*'($:*"&*%)(/0%P+*0'(*S(+*&+&0(-&*./)*:.00(,/&*0'.0*-.S(* 0'(*B$2#.$*(12/2-+*#('.J(*.&*%0*)2(&*02).+*c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c* ./)* %/* &2-(* 1.&(&*%-:$(-(/0()*c*02*(PP(10*&0,"10",.$*1'./B(*%/*'2U*0'(*B$2#.$*(12/2-+* 2:(,.0(&R

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

1


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

Rebuilding True Security in an Age of Insecurity Vandana Shiva 3"-./%0+*&((-&*02*#(*%/*.*P,((NP.$$*02U.,)&*)%&.&0(,R*5'(*(12$2B%1.$*P.#,%1*2P * 2",*(H%&0(/1(*%&*#(%/B*02,/*.:.,0Y*.&*0'(*J%2$(/1(*2P *12,:2,.0(*B$2#.$%&.0%2/* 12-#%/(&*U%0'*0'(*J%2$(/1(*2P *U.,R \$0(,/.0%J(&* 02* U.,Y* /2/N&"&0.%/.#%$%0+* ./)* &21%.$* ./)* (12/2-%1* %/N b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b"&0%1(* ?"6"9#.)%34"3% ./)*&"&0.%/.#%$%0+R "11(2*%;*%3(% T'+*.,(*U(*.&*.*&:(1%(&*)(&0,2+%/B*0'(*J(,+*#.&%&*2P *2",*&",J%J.$*./)* (H%&0(/1(j* T'+* '.&* %/&(1",%0+* #((/* 0'(* ,(&"$0* 2P * (J(,+* .00(-:0* 02* #"%$)* )(-0%@6()%340% ?06-"*#-0%';13;60% &(1",%0+j*32U*1./*U(*.&*-(-#(,&*2P *0'(*8.,0'*12--"/%0+*,(%/J(/0*&(1",%0+* 02*(/&",(*0'(*&",J%J.$*2P *.$$*&:(1%(&*./)*0'(*P"0",(*2P *)%J(,&(*1"$0",(&j*32U* (@ %-#(10$'0%3(% )2*U(*0",/*P,2-*0'(*,"%/&*2P *0'(*1"$0",(*2P *)(.0'*./)*)(&0,"10%2/Y*02*0'(* "%';13;60%(@ % 1"$0",(*0'.0*&"&0.%/&*./)*1($(#,.0(&*$%P(j $($M-#(10$'0K% T(*1./*)2*%0*#+*#,(.S%/B*P,((*2P *0'(*-(/0.$*:,%&2/*2P *&(:.,.0%2/*./)* '60"3#-#37%"$9% (H1$"&%2/* 02* &((* 0'(* U2,$)* %/* %0&* %/0(,12//(10()/(&&* ./)* /2/N&(:.,.#%$%0+Y* ?0"'0+%34"3% .$$2U%/B*/(U*.$0(,/.0%J(&*02*(-(,B(R*X(&:.%,*0",/&*02*'2:(R*l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


REB U I L D I NG T R U E S EC U R I T Y I N AN AG E O F SECURITY

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David Korten is co-founder and board chair of the Positive Futures Network, which publishes Yes! Magazine. He is one of the most eloquent critics of the corporate dominated world we live in, and outlines here his vision of a shift to a world based on the values of â&#x20AC;&#x2DC;Earth Communityâ&#x20AC;&#x2122; based on his book The Great Turning.

The Great Turning: From Empire to Earth Community David Korten By what name will future generations know our time? T%$$*0'(+*&:(.S*%/*./B(,*./)*P,"&0,.0%2/*2P *0'(*0%-(*2P *0'(*;,(.0*</,.J($$%/BY* U'(/* :,2P$%B.0(* 12/&"-:0%2/* (H1(()()* 8.,0']&* 1.:.1%0+* 02* &"&0.%/* ./)* $()* 02* ./* .11($(,.0%/B* U.J(* 2P * 12$$.:&%/B* (/J%,2/-(/0.$* &+&0(-&Y* J%2$(/0* 12-:(0%0%2/* P2,* U'.0* ,(-.%/()* 2P * 0'(* :$./(0]&* ,(&2",1(&Y* ./)* .* ),.-.0%1* )%(#.1S*2P *0'(*'"-./*:2:"$.0%2/j*I,*U%$$*0'(+*$22S*#.1S*%/*b2+P"$*1($(#,.0%2/* 2/*0'(*0%-(*2P *0'(*;,(.0*5",/%/BY*U'(/*0'(%,*P2,(#(.,&*(-#,.1()*0'(*'%B'(,N 2,)(,*:20(/0%.$*2P *0'(%,*'"-./*/.0",(Y*0",/()*1,%&%&*%/02*2::2,0"/%0+Y*./)* $(.,/()*02*$%J(*%/*1,(.0%J(*:.,0/(,&'%:*U%0'*2/(*./20'(,*./)*8.,0'j

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6

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T H E G R EAT T U R N I N G: F ROM E MP I R E TO EA RT H COMMUNITY

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8

G AIAN ECONOMICS

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T H E G R EAT T U R N I N G: F ROM E MP I R E TO EA RT H COMMUNITY

9

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10

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

Sustainable Growth: An Impossibility Theorem Herman E. Daly [-:2&&%#%$%0+*&0.0(-(/0&*.,(*0'(*J(,+*P2"/).0%2/*2P *&1%(/1(R*[0*%&*%-:2&&%#$(* 02C* 0,.J($* P.&0(,* 0'./* 0'(* &:(()* 2P * $%B'0k* 1,(.0(* 2,* )(&0,2+* -.00(,N(/(,B+k* #"%$)*.*:(,:(0".$*-20%2/*-.1'%/(Y*(01R*^+*,(&:(10%/B*%-:2&&%#%$%0+*0'(2,(-&* U(* .J2%)* U.&0%/B* ,(&2",1(&* 2/* :,2b(10&* 0'.0* .,(* #2"/)* 02* P.%$R* 5'(,(P2,(* (12/2-%&0&*&'2"$)*#(*J(,+*%/0(,(&0()*%/*%-:2&&%#%$%0+*0'(2,(-&Y*(&:(1%.$$+* 0'(*2/(*02*#(*)(-2/&0,.0()*'(,(Y*/.-($+*0'.0*%0*%&*%-:2&&%#$(*P2,*0'(*U2,$)* (12/2-+*02*B,2U*%0&*U.+*2"0*2P *:2J(,0+*./)*(/J%,2/-(/0.$*)(B,.).0%2/R*[/* 20'(,*U2,)&Y*&"&0.%/.#$(*B,2U0'*%&*%-:2&&%#$(R [/* %0&* :'+&%1.$* )%-(/&%2/&* 0'(* (12/2-+* %&* ./* 2:(/* &"#&+&0(-* 2P * 0'(* (.,0'*(12&+&0(-Y*U'%1'*%&*P%/%0(Y*/2/NB,2U%/BY*./)*-.0(,%.$$+*1$2&()R*\&*0'(* (12/2-%1*&"#&+&0(-*B,2U&Y*%0*%/12,:2,.0(&*./*(J(,*B,(.0(,*:,2:2,0%2/*2P *0'(* 020.$*(12&+&0(-*%/02*%0&($P *./)*-"&0*,(.1'*.*$%-%0*.0*?DD*:(,1(/0Y*%P */20*#(P2,(R* 5'(,(P2,(*%0&*B,2U0'*%&*/20*&"&0.%/.#$(R*5'(*0(,-*g&"&0.%/.#$(*B,2U0']*U'(/* .::$%()*02*0'(*(12/2-+Y*%&*.*#.)*2H+-2,2/*c*&($PN12/0,.)%102,+*.&*:,2&(Y*./)* "/(J21.0%J(*.&*:2(0,+R

Challenging the economic oxymoron 812/2-%&0&*U%$$*12-:$.%/*0'.0*B,2U0'*%/*;Z!*%&*.*-%H0",(*2P *f"./0%0.0%J(* ./)*f".$%0.0%J(*%/1,(.&(*./)*0'(,(P2,(*/20*&0,%10$+*&"#b(10*02*:'+&%1.$*$.U&R* 5'(+* '.J(* .* :2%/0R* !,(1%&($+* #(1."&(* f"./0%0.0%J(* ./)* f".$%0.0%J(* 1'./B(* .,(* J(,+* )%PP(,(/0* %0* %&* #(&0* 02* S((:* 0'(-* &(:.,.0(* ./)* 1.$$* 0'(-* #+* 0'(* )%PP(,(/0* /.-(&* .$,(.)+* :,2J%)()* %/* 0'(* )%10%2/.,+R* 52* B,2U* -(./&* g02* %/1,(.&(*/.0",.$$+*%/*&%i(*#+*0'(*.))%0%2/*2P *-.0(,%.$*0',2"B'*.&&%-%$.0%2/* 2,* .11,(0%2/]R* 52* )(J($2:* -(./&* g02* (H:./)* 2,* ,(.$%i(* 0'(* :20(/0%.$%0%(&* 2Pk*02*#,%/B*B,.)".$$+*02*.*P"$$(,Y*B,(.0(,Y*2,*#(00(,*&0.0(]R*T'(/*&2-(0'%/B* B,2U&* %0* B(0&* #%BB(,R* T'(/* &2-(0'%/B* )(J($2:&* %0* #(12-(&* )%PP(,(/0R* 5'(* (.,0'* (12&+&0(-* )(J($2:&* K(J2$J(&OY* #"0* )2(&* /20* B,2UR* [0&* &"#&+&0(-Y* 0'(* (12/2-+Y*-"&0*(J(/0".$$+*&02:*B,2U%/BY*#"0*1./*12/0%/"(*02*)(J($2:R*5'(* 11


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Limits to growth?

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S U STA I N A B L E GROW T H : AN I M P O SS I B I L I T Y T HEOREM

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13

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14

G AIAN ECONOMICS

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15

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16

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Ross Jackson, PhD, economist and long time critic of neo-liberal thinking, critiques the main components of the global economic system and highlights how these could be changed to protect the environment, while serving peopleâ&#x20AC;&#x2122;s needs.

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Capita movement I/(*2P *0'(*P2"/).0%2/*&02/(&*2P *0'(*1",,(/0*&+&0(-Y*U'%1'*12/0,%#"0(&*02* %0&*%/&0.#%$%0+Y*%&*0'(*P,((*P$2U*2P *1.:%0.$*.1,2&&*#2,)(,&R*5'(*,(.&2/*U'+*0'%&* %&*&2*%-:2,0./0*02*0'(*/(2N$%#(,.$&*%&*0'.0*0'(+*U./0*02*#(*.#$(*02*B(0*0'(%,* -2/(+*2"0*2P *.*12"/0,+*P.&0*U'(/*/(1(&&.,+*&2*%0*1./*#(*%/J(&0()*($&(U'(,(* .0*.*'%B'(,*&'2,0*0(,-*,(0",/R*5'(*:,2#$(-*%&*0'.0*0'(*.-2"/0&*%/J2$J()*.,(* '"B(Y*U'%$(*0'(*-.,S(0&*U'(,(*0'(+*2:(,.0(*.,(*,($.0%J($+*&-.$$R*5'(&(*&-.$$Y* %$$%f"%)*(f"%0+*./)*1",,(/1+*-.,S(0&*1.//20*U%0'&0./)*0'(*&($$%/B*:,(&&",(* %/*.*$%f"%)%0+*1,%&%&Y*./)*&%-:$+*12$$.:&(R*6(J(,.$*-.,S(0&*KP2,*(H.-:$(*0'(* @"&&%./O*'.)*02*&"&:(/)*2:(,.0%2/&*0(-:2,.,%$+*P2,*0'%&*J(,+*,(.&2/*%/*0'(* ."0"-/* 2P * >DDFR* T(* &.U* .* 12$$.:&(* 2P * &(J(,.$* \&%./* 1",,(/1+* ./)* &021S* -.,S(0&* %/* 0'(* $.0(* ?__D&* P2,* 0'(* &.-(* ,(.&2/R* 5'(,(* &'2"$)* '.J(* #((/* ,(P2,-&*2/*1.:%0.$*P$2U&*.0*0'.0*0%-(Y*#"0*0'(,(*U.&*&"11(&&P"$*,(&%&0./1(*02* 17


18

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19

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20

G AIAN ECONOMICS

5'(*:%2/((,&*U'2*:"0*P2,0'*0'%&*/(U*J%&%2/*&'2"$)*#(*:,(:.,()*02*#,(.S* .U.+*P,2-*0'(*T5I*./)*P2,-*.*/(U*0,.)(*2,B./%&.0%2/Y*./)*%/J%0(*20'(,* /.0%2/&*02*b2%/*U'(/*0'(+*.,(*,(.)+*c*/20*%--()%.0($+Y*#(1."&(*0'(+*.,(*/20* ,(.)+*P2,*%0Y*#"0*:(,'.:&*.P0(,*0'(*/(H0*1,%&%&Y*U'%1'*%&*/20*P.,*2PPR

Conclusion 5'(* >`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

References * ?* G,./1%&*G"S"+.-.Y*g5'(*G.$$*2P *\-(,%1.*[/1R]Y*L02*200H*KI102#(,*?=Y*>DDFOR * >* *W2&(:'*60%B$%0iY*!1(G"1#R"3#($%"$9%#3*%E#*'($30$3**K42/)2/C*!(/B"%/*!,(&&Y*>DD>OY*:R*>>D*%#%)Y* :R?aR * =* !."$*^.%,21'Y*&'($()#'*%"$9%/(619%F#*3(67*K7'%1.B2C*</%J(,&%0+*2P *7'%1.B2*!,(&&Y*?__=OR * M* 6((Y* P2,* (H.-:$(Y* W2'/* ;,.+Y% Q"1*0% E"2$+% B40% E01;*#($*% (@ % !1(G"1% A"?#3"1#*)* K42/)2/C* ;,./0.*^22S&Y*?___OR* * `* 6((Y* P2,* (H.-:$(Y* @2&&* W.1S&2/Y* g7$%-.0(* 62$"0%2/&C* !.,0* []* %/% !"#"$% &'($()#'** K<AC* !(,-./(/0*!"#$%1.0%2/&Y*>D?DOY*:RM_R * a* @2&&*W.1S&2/Y*g\*;.%./*T2,$)J%(U]Y*%/*B40%C($.%(@ %340%&"634%T%B40%&)06.#$.%C7$340*#*%(@ %340% C'#0$3#@#'%"$9%C?#6#3;"1%/(619-#02**K<AC*!(,-./(/0*!"#$%1.0%2/&Y*>DD_OR


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

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22

G AIAN ECONOMICS

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S H I FT I NG D I R EC T I O N

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29


David Korten is the co-founder and board chair of YES! magazine, founder of the People-Centred Development Forum, and widely read author of â&#x20AC;&#x2DC;When Corporations Rule the Worldâ&#x20AC;&#x2122;. In this article he explains how, in the wake of the bailout, we can avoid future large-scale financial crises through re-regulating the global economy

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

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31

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32

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33

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34

G AIAN ECONOMICS

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35


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

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36

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

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G AIAN ECONOMICS

On pottery [/*P.10Y*0'(*-.,S(0*(12/2-+*U(*$%J(*%/*%&*#+*/2*-(./&*0'(*2/$+*1%J%$%&.0%2/* U'%1'*'.&*'.)*02*#"%$)*":*.*B%./0*%/0(,-()%.0(*(12/2-+*b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c*b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

Going Local – where to start T'(/*0'(*2%$*:(.S*'%0&Y*%0*U%$$*#(*0'(*%/0(,-()%.0(*(12/2-+*0'.0*12$$.:&(&R* 5'.0*&2"/)&*$%S(*B22)*/(U&Y*#"0*%/*P.10*%0*U%$$*#(*0(,,%#$(*/(U&*P2,*(J(,+2/(* (H1(:0*0'2&(*U'2*'.J(*.$,(.)+*&"11(()()Y*2,*1./*f"%1S$+*&"11(()Y*%/*#"%$)%/B* &-.$$N&1.$(* $%J%/B* &+&0(-&* %/* U'%1'* 0'(* 12-:$%1.0%2/* c* 0'(* ,($%./1(* 2/* .* -.&&%J(*%/0(,-()%.0(*(12/2-+*c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i(/&*2P *0'(*4(./*812/2-+*U%$$* '.J(*:,.10%1.$*&S%$$&Y*&"1'*.&*B.,)(/%/BY*122S%/BY*[5*&S%$$&Y*#"%$)%/BY*&(U%/BY* U22)U2,SY*U.&0(*-./.B(-(/0*./)*U.0(,*-./.B(-(/0k*0'(+*U%$$*.$&2*'.J(* &21%.$*&S%$$&Y*%/1$")%/B*-"&%1Y*&02,+N0($$%/BY*)./1%/BY*./)*0'(*U'2$(*,./B(*2P * 0'%/B&*U'%1'*1,(.0(*12/J%J%.$%0+*%/*:(2:$(*./)*P.-%$%(&R*[P *+2"*1./Y*B2*2/*02* )(J($2:*:(,-.1"$0",(*&S%$$&*%/*-2,(*)(0.%$k*0'(*-2,(*(H:(,%(/1(*+2"*'.J(Y* 0'(*#(00(,R*


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

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Keep cheerful ^(%/B* )(:,(&&()* .#2"0* 0'(* U.+* 0'%/B&* .,(* B2%/B* %&* &($PN:(,:(0".0%/B* c* %0* U%$$*&%-:$+*-.S(*0'(-*U2,&(R*[P *+2"*.,(* &(,%2"&$+*2/*0'(*1.&(* K.&* .#2J(O* %0*U%$$*)2*U2/)(,&*P2,*+2",*12/P%)(/1(Y*./)*+2",*2:0%-%&-*U%$$*(/12",.B(* 0'2&(*.,2"/)*+2"*02*)2*0'(*&.-(R*X(1%)(*02*b2%/*02B(0'(,*./)*-.S(*.*P"0",(Y* $21.$$+R

39

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Rob Hopkins is best known as the founder of the transition town movement that activates local citizen groups to take responsibility for their own future in a world threatened by peak oil and climate change. Here, he comments on David Flemingâ&#x20AC;&#x2122;s proposal on how to reduce CO2 emissions while engaging ordinary citizens.

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C L I M AT E S O LU T I O N S : PA RT 1 . COM PA R I NG A LTERNATIVES

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41

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42

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C L I M AT E S O LU T I O N S : PA RT 1 . COM PA R I NG A LTERNATIVES

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

Global Warming and the South Helena Norberg-Hodge \&*&%B/&*2P *1$%-.0(*%/&0.#%$%0+*%/1,(.&(*.,2"/)*0'(*U2,$)Y*:"#$%1*.U.,(/(&&* 2P *0'(*/(()*P2,*P"/).-(/0.$*1'./B(*%&*B,2U%/BR*5'(*P2,-(,*:,(&%)(/0*^"&'* .)-%/%&0,.0%2/]&*&0./1(*2/*1$%-.0(*1'./B(*.::.$$()*0'(*U2,$)R*5'(%,*,(P"&.$* 02*,.0%P+*0'(*A+202*:,20212$*c*%/*:.,0*#(1."&(*0'(+*1$.%-*%0*%&*"/P.%,*02*,(f"%,(* 0'(*<6*02*1",#*%0&*(-%&&%2/&Y*U'%$(*P(U*$%-%0&*.,(*%-:2&()*2/*20'(,*:2$$"0(,&* %/*0'(*&2N1.$$()*5'%,)*T2,$)*c*./B(,()*:(2:$(*2/*.$$*&%)(&R*32:(&*.,(*'%B'* 0'.0*!,(&%)(/0*I#.-.*U%$$*:"0*./*(/)*02*0'%&*(,.*2P *.,,2B./0*,(P"&.$*02*0.S(* 0'(*&%0".0%2/*&(,%2"&$+R*;$2#.$*12$$.#2,.0%2/*P2,*,.)%1.$*./)*,.:%)*.10%2/*%&* ,(f"%,()Y*#"0*%0*%&*1,"1%.$*0'.0*U(*P%,&0*,(0'%/S*-./+*2P *0'(*.&&"-:0%2/&*0'.0* '.J(*#((/*#./)%()*.#2"0*%/*12//(10%2/*U%0'*0'%&*1,%&%&R* </P2,0"/.0($+Y* -./+* (/J%,2/-(/0.$%&0&* ./)* 12/1(,/()* 1%0%i(/&* %/* 0'(* T(&0*&"#&1,%#(*02*0'(*0'%/S%/B*0'.0*0'(*12"/0,%(&*2P *0'(*62"0'*&'2"$)*'.J(*0'(* ,%B'0*02*12/0%/"(*%/1,(.&%/B*0'(%,*(-%&&%2/&*./)*0'(/Y*2/1(*0'(+*'.J(*,(.1'()* .*1(,0.%/*$(J($*2P *%/)"&0,%.$%i.0%2/Y*B,.)".$$+*,()"1(*0'(-R*5'(*.&&"-:0%2/* %&*0'.0*%/)"&0,%.$*:,2)"10%2/*%/*[/)%.*./)*7'%/.Y*P2,*(H.-:$(Y*%&*/(1(&&.,+*02* I#*#$.%AW_% ,()"1(*:2J(,0+R*I/*0'(*&",P.1(*0'%&*0'%/S%/B*-.S(&*&(/&(R*[0*%&*"/)(,:%//()* 0)#**#($*%#$%340% #+*0'(*P(($%/B*0'.0*,%1'*12"/0,%(&*'.J(*/2*,%B'0*02*-.S(*)(-./)&*2P *0'(*&2N 10**%90-01(?09% 1.$$()*:22,*12"/0,%(&R*5'(*.,B"-(/0*B2(&*$%S(*0'%&C*mT(*'.J(*#(/(P%0()*P,2-* 12/J(/0%2/.$*%/)"&0,%.$*)(J($2:-(/0k*U(*1./]0*0($$*:(2:$(*/20*02*P2$$2U*%/*2",* ?"63*%(@ %340% 2(619%"60%$(3%"% P220&0(:&nR*5'%&*%B/2,(&*0'(*P.10*0'.0Y*%/*,(.$%0+Y*U(*%/*0'(*T(&0*'.J(*,2##()* *#.$%(@ %?(*#3#-0% 0'(-*2P *0'(*.#%$%0+*02*P2$$2U*%/*2",*P220&0(:&k*0'(+*'.J(*/2*g5'%,)*T2,$)]*02* (H:$2%0R*5'(*P.10*%&*0'.0*-"1'*%/)"&0,%.$*:,2)"10%2/*%/*0'(*62"0'*%&*.%-()* 0$9(.0$(;*% .$-2&0* (/0%,($+* .0* &.0%&P+%/B* 0'(* 12/&"-(,%&0* /(()&* 2P * T(&0(,/* -.,S(0&Y* 90-01(?)0$3K% "&".$$+*.0*0'(*(H:(/&(*2P *$21.$*U2,S(,&*./)*0'(%,*12--"/%0%(&R*@%&%/B*7I>* G;3%6"3406%"% (-%&&%2/&*%/*0'(*$(&&*)(J($2:()*:.,0&*2P *0'(*U2,$)*.,(*/20*.*&%B/*2P *:2&%0%J(* 9#60'3%60*;13%(@ % (/)2B(/2"&* )(J($2:-(/0Y* #"0* ,.0'(,* .* )%,(10* ,(&"$0* 2P * )(J($2:-(/0* ./)* 90-01(?)0$3%"$9% B$2#.$%i.0%2/* :2$%1%(&R* 5'(&(* &.-(* :2$%1%(&* .,(* ,(&:2/&%#$(* P2,* .* ),.-.0%1* %/1,(.&(*%/*:2J(,0+*P2,*0'(*-.b2,%0+Y*U'%$(*#(/(P%0%/B*2/$+*.*&-.$$*U(.$0'+* .1(G"1#R"3#($% ($%0(R* ?(1#'#0*P

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Globalising pollution and poverty !.,0*2P *0'(*:,2#$(-*&0(-&*P,2-*0'(*U.+*U(*'.J(*#((/*0."B'0*02*12/1(%J(* 2P *0'(*'%&02,+*2P *%/)"&0,%.$%i.0%2/R*[/*0'(*?_FD&Y*U(*U(,(*02$)*0'.0*U(*'.)* -2J()*2/*P,2-*0'(*(,.*2P *'(.J+Y*)%,0+*%/)"&0,+*%/02*.*/(UY*1$(./(,*./)*-"1'* -2,(* (PP%1%(/0* :2&0N%/)"&0,%.$* U2,$)R* 8J(/* (12$2B%1.$* (12/2-%&0&* P($$* P2,* 0'%&*,"&(R*5'(*%)(.*U.&*0'.0Y*0'./S&*02*-2)(,/*0(1'/2$2B+Y*U(*U(,(*"&%/B* $(&&* (/(,B+* ./)* B(/(,.0%/B* $(&&* :2$$"0%2/R* m422S* '2U* 1$(./* 0'(* 5'.-(&o 3")&2/o6(%/(* %&Yn* U(* U(,(* 02$)Y* m0'(,(* '.J(/]0* #((/* &2* -./+* P%&'* %/* 0'(* ,%J(,*&%/1(*T2,$)*T.,*[[nR*T'%$(*%0*%&*0,"(*0'.0*.)J./1(&*'.J(*#((/*-.)(* %/* 1$(./%/B* ":* %/)"&0,+* c* &1,"##(,&* 2/* %/1%/(,.02,&Y* (PP$"(/0* :",%P%1.0%2/* &+&0(-&Y*(01R*c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i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gT'(/*0'(* ^"&'*.)-%/%&0,.0%2/*&.+&*%0*U%$$*/20*,(&:(10*0'(*A+202*!,20212$*#(1."&(*%0* )2(&*/20*#%/)*7'%/.*./)*[/)%.Y*./)*0'(*7'%/(&(*./)*[/)%./*B2J(,/-(/0&* &.+*0'(+*U%$$*/20*02$(,.0(*1",#&*2/*0'(%,*B,((/'2"&(*B.&*(-%&&%2/&*#(1."&(* 0'(*<6*'.&*/20*,.0%P%()*A+202Y*0'(+*.,(*%/*P.10*:$.+%/B*2"0*./*"/'2$+*.$$%./1(* 02* .$$2U* 0'(%,* (12/2-%1* ($%0(&* 02* 12/0%/"(* 02* (J.)(* 0'(%,* (/J%,2/-(/0.$* ,(&:2/&%#%$%0%(&*./)*P,((N,%)(*2/*0'(*,(&0*2P *0'(*U2,$)]R*\112,)%/B*02*^($$2Y* 0'(*<6*'.&*P2,-()*./*g\&%.N!.1%P%1]*:.,0/(,&'%:*U%0'*7'%/.Y*[/)%.Y*W.:./Y* A2,(.*./)*7./.).*.&*.*,%J.$*02*0'(*A+202*:,20212$Y*%/*2,)(,*02*:,2-20(*0'(* /20%2/*2P *J2$"/0.,+*1",#&*2/*7I>*(-%&&%2/&*%/&0(.)*2P *-./).02,+*2/(&R ^($$2*P",0'(,*.,B"(&*0'.0*%0*%&*0'(*U(.$0'+*($%0(&*0'.0*g&:2"0*0'(*"$0,.N5'%,)* T2,$)%&0*$%/(*0'.0*0'(*62"0'*'.&*+(0*02*P"$P%$*%0&*f"20.*2P *:2$$"0%/B*0'(*U2,$)* U'%$(*0'(*Z2,0'*'.&*(H1(()()*%0&*f"20.R*[0*%&*0'(+*U'2*1.$$*P2,*./*(H(-:0%2/* 2P * 0'(* #%B* ,.:%)$+* %/)"&0,%.$%i%/B* 12"/0,%(&* P,2-* -./).02,+* $%-%0&* 2/* 0'(* (-%&&%2/*2P *B,((/'2"&(*B.&(&*"/)(,*.*/(U*A+202*!,20212$]R Z2,0'(,/* %/&0%0"0%2/&* .,(* /20* 2/$+* 0($$%/B* 0'(* 62"0'* U'.0* 02* )2Y* #"0* .$&2*%-:2&%/B*(H:2,0N2,%(/0()Y*P2&&%$*P"($N#.&()*)(J($2:-(/0R*;2J(,/-(/0* .%)Y*)%,(10*P2,(%B/*%/J(&0-(/0&*./)*0'(*:2$%1%(&*2P *0'(*T5IY*0'(*[9G*./)*

W$0%(@ %340% G0*3%2"7*%(@ % 609;'#$.%G(34% AW_%0)#**#($*% "$9%?(-0637%#$% 340%C(;34%2(;19% G0%3(%*360$.340$% 340%0S#*3#$.K% 90'0$36"1#R09% 90)(.6"?4#'% ?"3306$%G7% H00?#$.%-#11".0*% "$9%*)"11%3(2$*% "1#-0P


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G AIAN ECONOMICS

0'(*T2,$)*^./S*.,(*P2%&0%/B*(J(,*$.,B(,N&1.$(*%/P,.&0,"10",(&*2/*0'(*62"0'R* 9"$0%N#%$$%2/*)2$$.,*:,2b(10&*.,(*%/0,2)"1%/B*-(B.N).-&Y*1(/0,.$%i()*:2U(,* :$./0&*./)*20'(,*P2&&%$*P"($N#.&()*%/&0.$$.0%2/&R* 5'(*B$2#.$*(12/2-+*%&*.$&2*,(&:2/&%#$(*P2,*":,220%/B*-%$$%2/&*2P *:(2:$(* P,2-* 0'(* $./)* #+* )(&0,2+%/B* ,",.$* $%J($%'22)&* ./)* $21.$* -.,S(0&R* !2$%1%(&* 0'.0* :,2-20(* $.,B(N&1.$(* 1(/0,.$%i()* (/(,B+* %/&0.$$.0%2/&* ./)* (H:2,0N$()* )(J($2:-(/0*P(()*0'(*-.&&*-%B,.0%2/*P,2-*,",.$*.,(.&*c*U'(,(*:(2:$(*'.J(* B,(.0(,*P22)*&(1",%0+*./)*.*#(00(,*f".$%0+*2P *$%P(*c*%/02*J.&0*&'./0+*02U/&R*[/*0'(* 5(1#'#0*%34"3% &$"-&Y*0'(*f".$%0+*2P *$%P(*)(1$%/(&*#"0*12/&"-:0%2/*%/1,(.&(&R*\-2/B*20'(,* ?6()(30%1"6.0M *'"10%'0$36"1#R09% 0'%/B&Y*(J(/*U'(/*:(2:$(*.,(*2/*.*/(.,*&0.,J.0%2/*)%(0Y*(J(,+*:2"/)*2P *P22)* 12/&"-()*/2U*'.&*02*#(*0,./&:2,0()*./)*:.1S.B()Y*&2*7I>*(-%&&%2/&*,%&(R* 0$06.7% 5'(&(*&.-(*B$2#.$%i.0%2/*:2$%1%(&*$(.)*02*.*-.&&%J(*%/1,(.&(*%/*,()"/)./0* #$*3"11"3#($*% 0,.)(k*%)(/0%1.$*:,2)"10&*K#"00(,Y*-%$SY*:20.02(&Y*$%J(*./%-.$&O*1,%&&N1,2&&*0'(* "$9%0S?(63M109% B$2#(*%/*(J(,*%/1,(.&%/B*f"./0%0%(&R*5'%&*&+&0(-*)2(&*/20*:,2-20(*(PP%1%(/1+Y* 90-01(?)0$3% #"0*,.0'(,*$(.)&*%/(J%0.#$+*02*./*%/1,(.&(*%/*:2J(,0+Y*U.&0(*./)*B,((/'2"&(* @009%340%)"**% B.&*(-%&&%2/&R

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Localising production, increasing prosperity [0*%&*(&&(/0%.$*0'.0*0'(*T(&0*%--()%.0($+*,(J%(U&*%0&*(12$2B%1.$*P220:,%/0*./)* ,()"1(&*%0&*12/&"-:0%2/*2P *P2&&%$*P"($&Y*.&*U($$*.&*20'(,*/.0",.$*,(&2",1(&R* 5'(,(*%&*/2*)2"#0*0'.0*0'(*B$2#.$*Z2,0'*&'2"$)*#(.,*0'(*P%/./1%.$*#",)(/*2P * ,()"1%/B*7I>*(-%&&%2/&R*32U(J(,Y*%0*)2(&*/20*-.S(*&(/&(Y*%/*0'(*/.-(*2P * (f"%0+*./)*b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i()*)(-2B,.:'%1* :.00(,/* #+* S((:%/B* J%$$.B(&* ./)* &-.$$* 02U/&* .$%J(R* 5'%&* U2"$)* .$$2U* 12--"/%0%(&* 02* -.%/0.%/* &21%.$* 12'(&%2/* ./)* .* 1$2&(,* 12/0.10* U%0'* 0'(* $./)R*\*&0,.0(B%1*U.+*2P *)2%/B*&2*U2"$)*#(*02*'($:*:,2J%)(*)(1(/0,.$%i()* ,(/(U.#$(*(/(,B+*02*0'(*,",.$*:(2:$(&*2P *0'(*62"0'*KU'2*12/&0%0"0(*.$-2&0* '.$P *0'(*B$2#.$*:2:"$.0%2/OR*[0*U2"$)*#(*,($.0%J($+*(.&+*02*)2*&2k*0',2"B'2"0* 0'(*$(&&*%/)"&0,%.$%i()*U2,$)*0'(,(*%&*.*0,(-(/)2"&*:20(/0%.$*P2,*"&%/B*&2$.,* ./)*U%/)Y*.&*U($$*.&*&-.$$N&1.$(*'+),2R*52*%/0,2)"1(*&"1'*./*%/P,.&0,"10",(* U2"$)* 12&0* J.&0$+* $(&&* -2/(+* 0'./* 0'(* -(B.N#%$$%2/* )2$$.,* :,2b(10&* 0'.0* .,(* %/1,(.&%/B* P2&&%$* P"($* 12/&"-:0%2/* %/* 0'(* 62"0'R* 5'%&* 12"$)* .$&2* '($:* 02*),.-.0%1.$$+*%-:,2J(*0'(*&0./).,)*2P *$%J%/B*./)*:,(J(/0*0'(*0,.B%1*-.&&* -%B,.0%2/*%/02*&$"-&*U'(,(*0'(*f".$%0+*2P *$%P(*),2:&*),.-.0%1.$$+Y*(J(/*.&* )(:(/)(/1(*2/*:(0,2$("-*./)*20'(,*/2/N,(/(U.#$(*,(&2",1(&*(&1.$.0(&R*


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I",*:,2B,.-&*%/*4.).S'*.,(*/20*0'(*2/$+*(H.-:$(&*2P *0'%&*S%/)*2P *U2,SR* \$$*.,2"/)*0'(*U2,$)*:(2:$(*.,(*U2,S%/B*02B(0'(,*02*.)),(&&*0'(*1'.$$(/B(&* :2&()*#+*1$%-.0(*1'./B(*./)*:(.S*2%$R*7,(.0%J(*.::,2.1'(&*02*-.S%/B*2",* (12/2-%(&*-2,(*&"&0.%/.#$(*.#2"/)R*32U(J(,Y*%/*2,)(,*P2,*0'(&(*&2$"0%2/&* 02* #(* 0,"$+* (PP(10%J(Y* %0* %&* (&&(/0%.$* 0'.0* 0'(+* #(* P2"/)()* 2/* 0'(* :,%/1%:$(&* 2P * $21.$%&.0%2/c&'%P0%/B* (12/2-%1* .10%J%0+* #.1S* %/02* 0'(* './)&* 2P * $21.$* #"&%/(&&(&Y*%/&0(.)*2P *12/1(/0,.0%/B*%0*%/*P(U(,*./)*P(U(,*-(B.N12,:2,.0%2/&R* 421.$%&.0%2/*%&*0'(*&2$"0%2/*0'.0*$%/S&*&2*-./+*%&&"(&*02B(0'(,*c*&21%.$Y* (12/2-%1*./)*(/J%,2/-(/0.$R*5',2"B'*$21.$%&.0%2/*,",.$*(12/2-%(&*%/*#20'*

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c*#20'*Z2,0'*./)*62"0'R*\&*:2$%0%1%./&* .,(*&2*P2/)*2P *&.+%/BY*g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


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

Climate Solutions: Part I Comparing Alternatives Ross Jackson Summary /4"3% 2(;19% G0% 340% #90"1% #$306$"3#($"1% '1#)"30% ".600)0$3% 3(% *;''009% 340% O7(3(% 56(3('(1%#$%_`a_%#@ %20%#.$(60%?(1#3#'"1%?(*#3#($#$.%@(6%340%)()0$3%"$9%'($*#906%24"3% 2(;19%G0%G0*3%@(6%340%24(10%?1"$03b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

Introduction \*/"-#(,*2P *)%PP(,(/0*&1'(-(&*'.J(*#((/*:"0*P2,U.,)*,(1(/0$+*02*)(.$*U%0'* 0'(*:,2#$(-*2P *,()"1%/B*B,((/'2"&(*B.&*(-%&&%2/&*%/*2,)(,*02*:,(J(/0*./* "/12/0,2$$.#$(*U.,-%/B*2P *0'(*:$./(0Y*U%0'*:20(/0%.$$+*P.0.$*12/&(f"(/1(&* P2,*'"-./%0+R*62-(*&1'(-(&*.,(*.$,(.)+*%/*:,.10%1(Y*P2,*(H.-:$(*0'(*A+202* !,20212$*2P *0'(*<Z*G,.-(U2,S*72/J(/0%2/*2/*7$%-.0(*7'./B(Y*0'(*8<]&* 8-%&&%2/&*5,.)%/B*6+&0(-*K856O*./)*J.,%2"&*P2,-&*2P *1.,#2/*0.H(&*%/*&2-(* 12"/0,%(&R?*5'(*</%0()*Z.0%2/&*72:(/'.B(/*7$%-.0(*-((0%/B*%/*X(1(-#(,* >DD_*K7I!N?`O*P21"&&()*2/*,(.1'%/B*.*12/&(/&"&*2/*'2U*02*12/0%/"(*.P0(,* 0'(*P%,&0*:'.&(*2P *0'(*A+202*!,20212$*(/)&*%/*>D?>Y*./)*P.-2"&$+*P.%$()*%/*0'(* (/)(.J2",R*5'(,(P2,(*%0*%&*0%-(*02*P%/)*0'(*#(&0*:2&&%#$(*U.+*02*B2*P2,U.,)R

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CO2 target \$$*:,2:2&.$&*&0.,0*U%0'*0'(*.&&"-:0%2/*0'.0*./*%/0(,/.0%2/.$*.B,((-(/0*U%$$* #(*,(.1'()*2/*0'(*020.$*.$$2U.#$(*'"-./N)(:(/)(/0*7I>*(-%&&%2/&*B$2#.$$+** :,2)"1()*(.1'*+(.,Y*)",%/B*./*.B,(()*:$.//%/B*'2,%i2/R*5'(*1",,(/0*$(J($Y* .112,)%/B* 02* 0'(* [!77Y* U.&* .#2"0* M_* ;%B.02/&* 2P * g7I>* (f"%J.$(/0&]* %/* >DDMR>*5'(*(-%&&%2/&*1(%$%/B*U2"$)*'.J(*02*)(1$%/(*+(.,*.P0(,*+(.,*2J(,*0'(* :$.//%/B*:(,%2)R*G2,*(H.-:$(Y*.112,)%/B*02*0'(*[!77]&*$.0(&0*&0")+Y*#+*>D`DY* B$2#.$*(-%&&%2/&*U2"$)*'.J(*02*'.J(*)(1$%/()*#+*,2"B'$+*F`*r*,($.0%J(*02* >DDM* $(J($&* 02* S((:* 0'(* $2/B* 0(,-* 0(-:(,.0",(* %/1,(.&(* "/)(,* 0'(* 1,%0%1.$* 12/1(/0,.0%2/* 2P * 7I>N(f"%J.$(/0&* 2P * MM`* ::-Y* 12,,(&:2/)%/B* 02* .* 0U2* )(B,((*7($&%"&*%/1,(.&(*%/*0(-:(,.0",(*,($.0%J(*02*:,(N%/)"&0,%.$*$(J($&R=* 62-(*&1%(/0%&0&*#($%(J(*0'.0*(J(/*.*0.,B(0*12/1(/0,.0%2/*2P *MM`*::-*%&* 022*,%&S+*./)*0'.0*U(*&'2"$)*.%-*P2,*=`D*::-R*[/*./+*1.&(Y*0'(*:",:2&(*2P * 0'%&*.,0%1$(*%&*02*12-:.,(*-(0'2)&*2P *.1'%(J%/B*0'(*0.,B(0Y*U'.0(J(,*-.+*#(* .B,(()*":2/*%/*%/0(,/.0%2/.$*/(B20%.0%2/&R

!6(234%);*3% 3"H0%"%G"'H*0"3% 3(%)003#$.% 340%3"6.03P% B(%'1"#)%340% (??(*#30%10"9*% 3(%340%"G*;69% '($'1;*#($%34"3% 20%)"7%$(3%G0% "G10%3(%"@@(69% 3(%*"-0%4;)"$% '#-#1#*"3#($P

Defining the criteria [/* 0'(* P2$$2U%/B* [* U%$$* :"0* P2,U.,)* .* /"-#(,* 2P * 1,%0(,%.* 0'.0* ./* (PP(10%J(* ./)*b"&0*&+&0(-*&'2"$)*-((0*%/*2,)(,*02*.112-:$%&'*0'(*0.&S*.0*'./)Y*U'%$(* ,(1(%J%/B*#,2.)*.11(:0./1(R*Z20(*0'.0*0'%&*:.:(,*)(.$&*2/$+*U%0'*0'(*-(0'2)Y* /20*U%0'*0'(*:.,0%1"$.,*0.,B(0*$(J($*P2,*7I>*(-%&&%2/&R /#11%340%3"6.03%G0%)03%2#34%'063"#$37b 5'%&* %&* #+* P.,* 0'(* -2&0* %-:2,0./0* 1,%0(,%2/R* T(* 2/$+* B(0* 2/(* 1'./1(* .0* 12/0.%/%/B* B$2#.$* U.,-%/BY* ./)* U(* '.J(* 02* B(0* %0* ,%B'0* 0'(* P%,&0* 0%-(R* Z2* J2$"/0.,+* &+&0(-* 1./* &.0%&P+* 0'%&* 1,%0(,%2/R* 8J(/* U%0'* &./10%2/&Y* /2* J2$"/0.,+* &1'(-(* 1./* B".,./0((* 0'.0* 0'(* 0.,B(0* U%$$* #(* -(0R* T'.0* B22)* U%$$*&./10%2/&*)2*%P *U(*)2*/20*-((0*0'(*0.,B(0j*62-(*:2$%0%1%./&*.,B"(*0'.0* (-%&&%2/&*,()"10%2/&*-"&0*/20*'%/)(,*P",0'(,*(12/2-%1*B,2U0'R*^"0*0'%&*%&*.* )./B(,2"&*./)*:20(/0%.$$+*P.0.$*U.+*2P *$22S%/B*.0*0'(*:,2#$(-Y*.&*0'(,(*-.+* #(*/2*P(.&%#$(*&2$"0%2/*U%0'*0'%&*12/&0,.%/0R*;,2U0'*-"&0*0.S(*.*#.1S&(.0*02* -((0%/B*0'(*0.,B(0R*52*1$.%-*0'(*2::2&%0(*$(.)&*02*0'(*.#&",)*12/1$"&%2/*0'.0* U(*-.+*/20*#(*.#$(*02*.PP2,)*02*&.J(*'"-./*1%J%$%&.0%2/R*T(*-"&0*'%0*0'(* 0.,B(0*./)*.11(:0*0'(*12/&(f"(/1(&Y*%/1$")%/B*B,2U0'*(PP(10&Y*U'.0(J(,*0'(+* -.+*#(R*5'(*0.&S*2P *'%00%/B*0'(*0.,B(0*%&*.*-.00(,*2P *&",J%J.$Y*/20*.*-.00(,* 0'.0*1./*#(*-(.&",()*%/*-2/(0.,+*2,*:2$%0%1.$*0(,-&R* D60%?06)#3*%?"#9%@(6b% 8-%&&%2/*:(,-%0&*1./*(%0'(,*#(*&2$)*2,*B%J(/*.U.+*U%0'2"0*1'.,B(R*!.+%/B* P2,* (-%&&%2/* :(,-%0&Y* ,.0'(,* 0'./* b"&0* B%J%/B* 0'(-* .U.+Y* %&* .* :2&%0%J(* 1'.,.10(,%&0%1* #(1."&(* 0'(* .))()* 12&0* :,2J%)(&* ./* (12/2-%1* %/1(/0%J(* P2,* (/(,B+*&.J%/B*./)*12/J(,&%2/*02*,(/(U.#$(*(/(,B+Y*./)*P2,*.*&'%P0*02*.*-2,(*


C L I M AT E S O LU T I O N S : PA RT 1 . COM PA R I NG A LTERNATIVES

&"&0.%/.#$(*$%P(&0+$(R*62-(*%//2J.0%2/*U%$$Y*2P *12",&(Y*211",*./+U.+Y*.&*2%$* f"20.&*)(1,(.&(*./)*:,%1(&*%/1,(.&(Y*#"0*U%0'2"0*0'(*.))()*12&0&*2P *:(,-%0&Y* %//2J.0%2/*-.+*'.::(/*022*&$2U$+R*5'(*%/12-(*P,2-*&($$%/B*:(,-%0&*%&*.$&2* %-:2,0./0*.&*.*&2",1(*2P *P"/)&*02*:.,0%.$$+*12-:(/&.0(*$2U(,*%/12-(*B,2":&* P2,*'%B'(,*12&0&*2P *(/(,B+Y*U'%1'*.,(*B(/(,.$$+*,(B,(&&%J(Y*./)*02*-.S(*./+* )(.$*.00,.10%J(*02*0'(*)(J($2:%/B*12"/0,%(&R* D60%?06)#3*%36"9"G10b [/*2,)(,*02*.1'%(J(*0'(*-2&0*(PP%1%(/0*&2$"0%2/Y*0,.)%/B*2P *:(,-%0&*&'2"$)*#(* %-:$(-(/0()*&2*0'2&(*U%0'*0'(*-2&0*(PP%1%(/0*%//2J.0%2/&*./)*$2U(&0*7I>* (-%&&%2/&*1./*.11(&&*0'(*7I>**:(,-%0&*0'(+*/(()R*5'%&*-(./&*0'.0*0'(*$%-%0()* 7I>*(-%&&%2/&*.J.%$.#$(*U%$$*#(*"&()*U%0'*-.H%-"-*(PP%1%(/1+R >*%"9)#$#*36"3#($%*#)?10b ^20'* P2,* 0,./&:.,(/1+* ./)* 02* -%/%-%i(* 12&0&Y* %0* %&* )(&%,.#$(* 02* )(&%B/* .* &+&0(-*U'%1'*%&*,($.0%J($+*&%-:$(*02*.)-%/%&0(,R*\/*%-:2,0./0*12/&%)(,.0%2/* %&* U'(0'(,* %0* U%$$* U2,S* .)(f".0($+* %/* )(J($2:%/B* 12"/0,%(&* U%0'* $%-%0()* %/P,.&0,"10",(Y*$2U*0(1'/2$2B+*./)*%/(PP%1%(/0*.)-%/%&0,.0%J(*&+&0(-&R >*%340%*'40)0%?06'0#-09%"*%0U;#3"G10b G2,*#,2.)*:"#$%1*&"::2,0*0'(*&1'(-(*-"&0*#(*&((/*.&*P.%,*./)*(f"%0.#$(R*\,(* :22,(,*1%0%i(/&*#(%/B*12-:(/&.0()*P2,*0'(*,(B,(&&%J(*%/1,(.&(*2P *(/(,B+*12&0&j* T%$$*)(J($2:%/B*12"/0,%(&*:(,1(%J(*0'(*&1'(-(*.&*(f"%0.#$(*./)*U2,0'+*2P * &"::2,0j*5'(+*P(($Y*./)*,%B'0$+*&2Y*0'.0*%0*%&*0'(*%/)"&0,%.$*12"/0,%(&*0'.0*'.J(* #(/(P%0()*-2&0*P,2-*.$$*0'(*7I>*(-%&&%2/&*"/0%$*/2U*./)*0'.0*&2-(0'%/B*%&* 2U()*02*0'(-R* >*%340%*'40)0%#$36#$*#'"117%.1(G"1b g[/0,%/&%1.$$+*B$2#.$]*-(./&*0'.0*0'(*&1'(-(*%&*)(&%B/()Y*P,2-*0'(*#(B%//%/BY* 02* '.J(* .* B$2#.$* &12:(R* G2,* (H.-:$(Y* :(,-%0* 0,.)%/B* %&* %/0(,/.0%2/.$* ./)* .$$* 12"/0,%(&* 1./* ,(.$%&0%1.$$+* :.,0%1%:.0(Y* (&:(1%.$$+* U'(/* 12/&%)(,.0%2/* %&* B%J(/* 02* 0'(* &:(1%.$* :,2#$(-&* 2P * 0'(* )(J($2:%/B* 12"/0,%(&]* %/P,.&0,"10",(Y* .)-%/%&0,.0%J(*1.:.#%$%0%(&Y*(01R*\/*%/0,%/&%1.$$+* B$2#.$* &1'(-(* %&*0'(*-2&0* )(&%,.#$(* &2$"0%2/* .&* %0* %&* -2&0* (PP%1%(/0R* 32U(J(,Y* .* g:%(1(U%&(* B$2#.$]* &1'(-(* %&* .$&2* .* :2&&%#%$%0+Y* U'(,(* (.1'* 12"/0,+* '.&* ./* %/0(,/.0%2/.$$+* .B,(()*(-%&&%2/&*.$$21.0%2/*12/&%&0(/0*U%0'*0'(*2J(,.$$*(-%&&%2/&*0.,B(0Y*#"0* 0'(*/.0%2/.$*&1'(-(&*-.+*)%PP(,R 5'(*%)(.$*&1'(-(*U2"$)*'.J(*.*g+(&]*,(&:2/&(*02*(.1'*2P *0'(*.#2J(*1,%0(,%.R Z20(* 0'.0* %0* %&* 1"&02-.,+* 02* 1$.&&%P+* &1'(-(&* .&* g":&0,(.-]* K1$2&(* 02* 0'(* :,%-.,+* :,2)"1(,&OY* g)2U/&0,(.-]* K1$2&(* 02* %/)%J%)".$* 1%0%i(/&O* 2,*

51


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g-%)&0,(.-]*K%/*#(0U((/OR*T(*U%$$*/2U*$22S*.0*0'(*-.%/*1'.,.10(,%&0%1&*2P * 0'(*J.,%2"&*&1'(-(&*2/*0'(*0.#$(*./)*12/&%)(,*0'(*(H0(/0*02*U'%1'*0'(+*P"$P%$* 0'(*.#2J(*1,%0(,%.R

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C L I M AT E S O LU T I O N S : PA RT 1 . COM PA R I NG A LTERNATIVES

5'(*-2&0*%-:2,0./0*2/(*%&*0'(*$.1S*2P *B".,./0((*2P *-((0%/B*0.,B(0&R*5'(,(* -.+*(H%&0*.*0'(2,(0%1.$*0.H*U'%1'*%&*&2*'%B'*0'.0*7I>*(-%&&%2/&*U2"$)*#(* ,()"1()*),.&0%1.$$+*02*0'(*0.,B(0*$(J($Y*#"0*/2*2/(*S/2U&*U'.0*0'%&*$(J($*%&*%/* .)J./1(*c*'(/1(*0'(,(*%&*/2*B".,./0((R*5'(,(*.,(*20'(,*:,2#$(-&R* 5'(,(*%&*/2*:(,-%0*0,.)%/B*02*%/1,(.&(*(PP%1%(/1+R*[0*12"$)*#(*(H:(/&%J(* ./)* 1"-#(,&2-(* 02* .)-%/%&0(,Y* )(:(/)%/B* 2/* '2U* %0* U.&* &0,"10",()* K(RBR* U'(,(* )2* +2"* .::$+* 0'(* 0.Hj* [&* %0* .* P$.0* 0.H* 2,* J.,%.#$(j* 32U* U2"$)* 0.H* %/12-(*#(*"&()jOR*\*P$.0*0.H*U2"$)*#(*,(B,(&&%J(Y*U'%1'*U2"$)*#(*12/&%)(,()* %/(f"%0.#$(*#+*-./+R*\*:,2B,(&&%J(*0.H*12"$)Y*02*&2-(*)(B,((Y*12-:(/&.0(* 0'(*:22,(,*&(B-(/0&*2P *&21%(0+*P2,*0'(*,(B,(&&%J(*(PP(10&*2P *%/1,(.&%/B*(/(,B+* 12&0&Y*#"0*U2"$)*#(*1"-#(,&2-(*02*.)-%/%&0(,R G%/.$$+Y*0.H(&*.,(*.*/.0%2/.$*-.00(,Y*./)*&2*.*1.,#2/*0.H*%&*/(1(&&.,%$+* $%-%0()*02*.*&%/B$(*/.0%2/]&*.00(-:0*02*12/0,2$*%0&*7I>*(-%&&%2/&Y*.&&"-%/B* &2-(*/.0%2/.$*0.,B(0R*5'%&*12"$)*U2,S*%/*.*:%(1(U%&(NB$2#.$*&+&0(-*U'(,(* /.0%2/.$*f"20.&*U(,(*)(0(,-%/()*#+*/(B20%.0%2/Y*#"0*%0*U2"$)*#(*-(&&+*./)* &"#2:0%-.$R*5'(*1.,#2/*0.H*'.&*#,2.)*&"::2,0*%/*&2-(*12"/0,%(&Y*:(,'.:&* #(1."&(*2P *%0&*.::.,(/0*&%-:$%1%0+Ra Tradable Energy Quotas (TEQs) 5'%&* &1'(-(* %&* /.0%2/.$Y* ,.0%2/%/BY* ./)* ./* (H0,(-(* )2U/&0,(.-* (H.-:$(* 2P *0'(*g1.:*./)*&'.,(]*0+:(Y*%R(R*.*,.0%2/%/B*&+&0(-*U'(,(#+*.*:2,0%2/*2P *0'(* %/12-(*B(/(,.0()*#+*:(,-%0*&.$(&*%&*&'.,()*(f".$$+*.-2/B*.$$*1%0%i(/&*2P *0'(* 12"/0,+R*5'(*58e&*&1'(-(*U.&*)(J($2:()*#+*X.J%)*G$(-%/B*2P *0'(*<AY* 2,%B%/.$$+*%/*?__aR*6%/1(*0'(/*%0*'.&*B2/(*0',2"B'*&(J(,.$*%/1.,/.0%2/&*"/)(,* )%PP(,(/0* /.-(&Y* %/1$")%/B* X2-(&0%1* 5,.).#$(* e"20.&Y* !(,&2/.$* 7.,#2/* \$$2U./1(&Y* !(,&2/.$* 7.,#2/* 5,.)%/BY* 7.,#2/* e"20.&Y* ./)* %0&* 1",,(/0* /.-(*c*58e&*K:,2/2"/1()*g0(H]OR [/)%J%)".$&*,(1(%J(*(-%&&%2/*f"20.&*1.$$()*58e6*12,,(&:2/)%/B*02*0'(* :,2:2,0%2/*2P *0'(*/.0%2/.$*7I>*(-%&&%2/&*.00,%#"0.#$(*02*:,%J.0(*'2"&('2$)&* K.#2"0* MDr* %/* 0'(* <AOR* [/)%J%)".$&* 1./* "&(* 0'(&(* 58e6* U'(/(J(,* 0'(+* :",1'.&(* P"($Y* ($(10,%1%0+Y* (01R* [P * 0'(+* U%&'Y* 0'(+* 1./* 0,.)(* 0'(-* c* #"+%/B* -2,(* %P * /(1(&&.,+Y* &($$%/B* P2,* 1.&'* %P * /20* /(()()R* 72--(,1%.$* 12-:./%(&* ./)* 0'(* B2J(,/-(/0* -"&0* #"+* :(,-%0&* .0* .* U((S$+* ."10%2/R* 5'(* &+&0(-* ,(f"%,(&*%/)%J%)".$*1.,#2/*.112"/0&*.0*.*#./SY*U'%1'*.10&*$%S(*.*-%))$(-./Y* 0,.)%/B*:(,-%&&%2/&*%/*./*2/N$%/(*-.,S(0*U%0'*12--(,1%.$*12-:./%(&*0'.0* /(()*0'(*f"20.&R*5'%&*&1'(-(*&.0%&P%(&*&(J(,.$*2P *0'(*1,%0(,%.C*%0*B".,./0((&* 0'.0*/.0%2/.$*0.,B(0&*U%$$*#(*-(0*K#"0*/20*%/0(,/.0%2/.$Ok*%0*(/B.B(&*1%0%i(/&* )%,(10$+*./)*%0*:,2J%)(&*./*%/1(/0%J(*P2,*%//2J.0%2/R*32U(J(,Y*.&*2::2&()*02* &2-(*2P *0'(*20'(,*&1'(-(&Y*2/$+*.*:2,0%2/*2P *0'(*.))%0%2/.$*12&0&*:.%)*#+* &21%(0+*.11,"(*02*%/)%J%)".$&R*62*0'(,(*%&*./*(f"%0+*)(P%1%0Y*.$0'2"B'*%0*)2(&* (/B.B(*%/)%J%)".$&*.10%J($+*%/*,()"1%/B*0'(%,*7I>*(-%&&%2/&R 5'%&*&1'(-(*P.%$&*&2-(*2P *2",*1,%0(,%.R*[0*%&*/20*(.&%$+*.).:0.#$(*02*0'(* B$2#.$*$(J($R*[0*U2"$)*.$&2*#(*12&0$+*./)*1"-#(,&2-(Y*,(f"%,%/B*%/)%J%)".$* 12/0.10*U%0'*-%$$%2/&*2P *:(2:$(*./)*0'(*(&0.#$%&'-(/0*2P *-%$$%2/&*2P */(U* .112"/0&*.0*#./S&*./)*12--(,1%.$*12-:./%(&RE

53


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C L I M AT E S O LU T I O N S : PA RT 1 . COM PA R I NG A LTERNATIVES

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(-%&&%2/&Y* ./)* .$$2U%/B* %/)%J%)".$* 1%0%i(/&* 02* )(1%)(* P2,* 0'(-&($J(&* '2U* #(&0*02*"&(*0'(*,(J(/"(&*)"(*02*0'(-*.&*g2U/(,&]*2P *0'(*#%2&:'(,(R*32U(J(,Y* 5%1S($$*)2(&*'.J(*.*:2%/0*%/*0'.0*0'(,(*-.+*#(*&:(1%P%1*.,(.&*U'(,(*B$2#.$$+* %-:2&()* ,(&0,%10%2/&* 2,* ,(&(.,1'* -.+* #(* 1.$$()* P2,* %P * ./)* U'(/* -.,S(0* .::,2.1'(&*.,(*/20*.)(f".0(R* A+202>*)2(&*%/0,2)"1(*2/(*%-:2,0./0*%&&"(*0'.0*%&*-%&&%/B*%/*0'(*20'(,* &1'(-(&Y*/.-($+*0'(*:,2#$(-*2P */2/NP2&&%$*P"($*&2",1(&*2P *7I>*(-%&&%2/&* K(RBR*)(P2,(&0.0%2/*./)*1(,0.%/*%/)"&0,%.$*:,21(&&(&Y*&"1'*.&*1.$1%/.0%/B*$%-(* %/*1(-(/0*P.102,%(&OR*5'%&*%-:2,0./0*.&:(10*1./*./)*&'2"$)*#(*%/12,:2,.0()* %/02*U'.0(J(,*&1'(-(*%&*.)2:0()R Oil Depletion Protocol 60,%10$+* &:(.S%/B* 0'%&* %&* /20* .* :,2:2&.$* 02* 0.1S$(* B$2#.$* U.,-%/BY* +(0* %0* %&* 1$2&($+*,($.0()R*\&*@%1'.,)*3(%/#(,BY*."0'2,*2P *.*#22S*2/*0'(*&"#b(10Y*U,%0(&Y* m[B/2,./1(*2P *(/(,B+*&"::$+*%&&"(&*%&*$%S($+*02*$(.)*02*1$%-.0(*&2$"0%2/&*0'.0* P.%$Rn?a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`N>r* :(,* .//"-* %/* 0'(* 12-%/B* +(.,&Y* /20* $(.&0* 02* &.0%&P+* 0'(* /(()&* 2P * 7'%/.* ./)* [/)%.R* 5'(* )(-./)* B,2U0'* ,.0(* ./)* '(/1(* 0'(* :(.S* -.+* #(* &$2U()* .* #%0* #+* 0'(* >DDFo>DD_* B$2#.$* (12/2-%1* )2U/0",/Y* ./)* 2%$* :,%1(&* -.+* P.$$* 0(-:2,.,%$+Y* #"0* 0'(* $2/B(,* 0(,-* ":U.,)&* 0,(/)* %&* %/(J%0.#$(R* 5'"&* .* g#"&%/(&&*.&*"&".$]*:.0'*-(./&*0'.0*U(*.,(*'(.)%/B*P2,*.*-.b2,*(12/2-%1* 1,%&%&*%/*.*P(U*+(.,&Y*U%0'*)(-./)*P2,*2%$*:(,-./(/0$+*(H1(()%/B*&"::$+*./)* U%0'*0'(*B.:*%/1,(.&%/B*+(.,*.P0(,*+(.,R*T(*1./*(H:(10*02*&((*(H:$2)%/B*2%$* :,%1(&*U'(/*)(-./)*(H1(()&*&"::$+Y*U%0'*)(J.&0.0%/B*12/&(f"(/1(&*P2,*0'(* B$2#.$*(12/2-+R*9"1'*'"-./*&"PP(,%/BY*:.,0%1"$.,$+*%/*0'(*$(.&0*)(J($2:()* 12"/0,%(&Y*%&*%/(J%0.#$(R* 7.-:#($$]&*.,B"-(/0*%&*0'.0*0'(*%/0(,/.0%2/.$*12--"/%0+*&'2"$)*:$./* U($$*%/*.)J./1(*P2,*0'(*12-%/B*:(,%2)*2P *2%$*)(&1(/0*%/*2,)(,*02*-%/%-%i(* 0'(* )%&,":0%2/Y* :,(P(,.#$+* #(B%//%/B* 0(/* +(.,&* #(P2,(* 0'(* :(.SR* 5'(* #.&%1* %)(.*2P *'%&*:,2:2&()*:,20212$*%&*0'.0*U(*&'2"$)*,.0%2/*2",*:,2)"10%2/*./)* "&(*2P *2%$*%/*.*:$.//()*)(1$%/(*&"1'*0'.0*U(* )(1,(.&(* 2",*2%$*"&.B(* P.&0(,* 0'./* 0'(* :,()%10()* )(:$(0%2/* ,.0(* 2P * .::,2H%-.0($+* =r* :(,* +(.,* .P0(,* 0'(* :(.S*%&*,(.1'()R*[P *U(*)2*/20Y*'(*U.,/&*0'.0*U(*-.+*#(*%/*P2,*.*:(,%2)*2P * J(,+*J2$.0%$(*:,%1(*&U%/B&*./)*:./%1*,(.10%2/&*#+*"/:,(:.,()*B2J(,/-(/0&Y* U%0'* )(J.&0.0%/B* (PP(10&* 2/* 0'(* (12/2-+R* \%,* ./)* ,2.)* 0,./&:2,0.0%2/* %/* :.,0%1"$.,*U%$$*#(*'.,)*'%0Y*.&*0'(,(*%&*/2*12-:.,.#$(*&"#&0%0"0(*P2,*2%$R*52*

PPP"%\G;*#$0**% "*%;*;"1X%?"34% )0"$*%34"3%20% "60%40"9#$.% @(6%"%)"[(6% 0'($()#'%'6#*#*% #$%"%@02%70"6*K% 2#34%90)"$9%@(6% (#1%?06)"$0$317% 0S'009#$.%*;??17% "$9%2#34%340% ."?%#$'60"*#$.% 70"6%"@306%70"6P


58

G AIAN ECONOMICS

:"0* 0'(* )(&1(/0* %/02* :(,&:(10%J(Y* 0'(* A+202* !,20212$* 1.$$&* P2,* ./* .J(,.B(* ,()"10%2/*2P *(-%&&%2/&*2P *2/$+*`R>r*2J(,*>>*+(.,&*K?__DN>D?>OY*./)*(J(/* 0'.0*-2)(&0*B2.$*%&*"/$%S($+*02*#(*-(0R* </P2,0"/.0($+Y*0'(*:(.S*2%$*12/1(:0*'.&*/20*:(/(0,.0()*%/02*0'(*-%/)&(0* 2P * 2",* :2$%0%1.$* $(.)(,&'%:R* T.,/%/B&* #+* 7.-:#($$* ./)* 20'(,* $(.)%/B* 2%$* %/)"&0,+*(H:(,0&*'.J(*/20*-.)(*-"1'*2P *./*%-:,(&&%2/Y*:(,'.:&*#(1."&(*0'(* 12/&(f"(/1(&*.,(*022*:.%/P"$*02*12/&%)(,Y*:(,'.:&*#(1."&(*:2$%0%1%./&*U2"$)* ,.0'(,* #($%(J(* 0'(* 2%$* 2:0%-%&0&* ./)* $(.J(* 0'(* :,2#$(-* 02* 0'(%,* &"11(&&2,&R* T'.0*0'(/*)2(&*:(.S*2%$*-(./*P2,*&2$"0%2/&*02*B$2#.$*U.,-%/Bj*[*-(/0%2/()* %/*0'(*%/0,2)"10%2/*0'.0*'%00%/B*0'(*0.,B(0*2P *MM`*::-*7I>N(f*%/*>D`DY*0'"&* S((:%/B*0'(*0(-:(,.0",(*,%&(*02*$(&&*0'./*0U2*)(B,((&*7($&%"&Y*U%$$*,(f"%,(* .*,()"10%2/*%/*020.$*(-%&&%2/&*K%/1$")%/B*2%$Y*/.0",.$*B.&*./)*12.$O*2P *.#2"0* F`r* ,($.0%J(* 02* >DDMR* 7.-:#($$* :,2b(10&* .* &"::$+N#.&()* )(1$%/(* 2P * .#2"0* `_r*%/*2%$*KU'%1'*%/1$")(&*.$$*12/J(/0%2/.$*./)*/2/N12/J(/0%2/.$*&2",1(&Y* #"0*%&*(H1$"&%J(*2P */.0",.$*B.&O*%/*0'(*:(,%2)*.P0(,*0'(*:(.S*P,2-*>D?DN>D`D* c*P,2-*=M*;%B.*#.,,($&*2P *2%$*(f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f"%0(*$%S($+*&1(/.,%2*0'.0*0'(*U2,$)*P2$$2U&* 7.-:#($$]&*&"::$+N#.&()*:.0'*2P *P2&&%$*P"($*#",/%/B*K%R(*U(*#",/*(J(,+0'%/B* 0'.0*U(*1./OR

55 50

Oil & Gas Production Profiles

45

2006 Base Case

40

Gboe

35 30 25 20 15 10 5 0 1930

1940

1950 Regular Oil

1960

1970

Heavy etc.

1980

1990

Deepwater

2000 Polar

2010 NGL

2020

2030

Gas

Non-Con Gas

2040

2050


C L I M AT E S O LU T I O N S : PA RT 1 . COM PA R I NG A LTERNATIVES

59

1

2

3

4

5

6

Contraction & Convergence

yes

no

*a

*a

yes

no

Kyoto Protocol

no

no

*b

no

no

yes

EUâ&#x20AC;&#x2122;s Emission Trading System

no

no

*b

no

no

no

Carbon Tax

no

yes

no

*a

*a

no

Tradable Energy Quotes

yes

yes

yes

no

*c

no

FEASTA

yes

yes

no

no

*c

no

Earth Atmosphere Trust

yes

yes

no

yes

*c

yes

Kyoto2

yes

yes

yes

yes

no

yes

100

Global Emissions (GtCO2e/yr)

90

450ppm CO2e 550ppm CO2e Business as usual

80 70 60 50 40 30 20 10 0 2000

2010

2020

2030

2040

2050

2060

2070

2080

2090

2100

Meeting the Criteria 4(0*"&*/2U*12-:.,(*0'(*J.,%2"&*&1'(-(&R ?R* >R* =R* MR* `R* aR*

T%$$*0'(*0.,B(0*#(*-(0*U%0'*1(,0.%/0+j \,(*:(,-%0&*:.%)*P2,j \,(*:(,-%0&*0,.).#$(*.-2/B*%/)"&0,%.$*"&(,&j [&*.)-%/%&0,.0%2/*&%-:$(j T2"$)*0'(*&1'(-(*#(*:(,1(%J()*.&*(f"%0.#$(*#+*1%0%i(/&j [&*0'(*&1'(-(*%/0,%/&%1.$$+*B$2#.$*K.&*2::2&()*02*:%(1(U%&(*B$2#.$Oj

v.C*X(:(/)&*2/*'2U*/.0%2/.$*B2J(,/-(/0&*.)-%/%&0(,*%0R v#C*I/$+*2/*.*J(,+*$%-%0()*#.&%&R v1C*9.+#(C*!.,0*2P *0'(*,(J(/"(*B2(&*02*B2J(,/-(/0&R


60

G AIAN ECONOMICS

Three scenarios 5'(*."0'2,&*2P *0'(*8\5*.,0%1$(*%$$"&0,.0(*0',((*.$0(,/.0%J(*:.0'&*0'.0*U(*1./* 1'22&(* .&* &'2U/* %/* 0'(* )%.B,.-* #($2UR* Z20(* 0'.0* ``D* ::-Y* U'%1'* &2-(* :2$%0%1%./&* &((-* 02* 0'%/S* %&* .* ,(.$%&0%1* 0.,B(0Y* '.&* .* &%B/%P%1./0$+* '%B'(,* :,2#.#%$%0+*2P *,"/.U.+*U.,-%/B*0'./*M`D*::-*7I>N(fR>=* [0* &'2"$)* #(* /20()* 0'.0* 2/(* 2P * 0'(* $(.)%/B* 1$%-.0(* ,(&(.,1'* $(.)(,&Y* Z\6\]&*W.-(&*3./&(/Y*U'2*2,%B%/.$$+*&"::2,0()*0'(*M`D*::-*0.,B(0Y*/2U* #($%(J(&* 0'.0* (J(/* M`D* ::-* %&* .* gB".,./0(()* )%&.&0(,]* )"(* 02* :,(J%2"&$+* 2J(,$22S()* :2&%0%J(* P(()#.1S* -(1'./%&-&R* 3(Y* $%S(* -./+* 20'(,&Y* /2U* #($%(J(&*0'.0*U(*2"B'0*02*.%-*P2,*.*-.H%-"-*2P *=`D*::-R?_

References ?R* G2,*./*2J(,J%(UY*&((*'00:Coo(/RU%S%:()%.R2,BoU%S%oA+202w!,20212$ >R* [/0(,B2J(,/-(/0.$*!./($*2/*7$%-.0(*7'./B(*K[!77OY*T2,S%/B*;,2":*[[[k*6"--.,+*P2,* !2$%1+-.S(,&Y*:R=*K6((*UUUR%:11R1'O* =R* %#%)Y*:R>?R MR* 6((*UUUR(:.RB2Jo.%,o1..o `R* 6((*UUUR:./).R2,Bo*P2,*TTG]&*1,%0%1.$*./.$+&%&*2P *0'(*8<*8-%&&%2/&*5,.)%/B*6+&0(-Y* g8-%&&%2/&*[-:2&&%#$(]R aR* G2,*./*2J(,J%(UY*&((*'00:Coo(/RU%S%:()%.R2,BoU%S%o7.,#2/w0.HR* ER* 6((*UUUR0(f&R/(0o FR* g\/*8J.$".0%2/*2P *7.:N./)N0,.)(*!,2B,.-&*P2,*@()"1%/B*<R6R*7.,#2/*8-%&&%2/&]Y*<6R* 72/B,(&&%2/.$*^")B(0*IPP%1(Y*KW"/(*>DD?OR*6((*UUUR1#2RB2J* _R* 6((*UUURP(.&0.R2,B ?DR* \"#,(+*9(+(,Y*A($36"'3#($%<%A($-06.0$'0Y*K520/(&*<AC*;,((/*^22S&Y*>DDDOR* ??R* g;,((/'2"&(* ;.&* 8-%&&%2/* 5,(/)&* ./)* !,2b(10%2/&* %/* 8",2:(* >DDa]Y* 8",2:(./* 8/J%,2/-(/0*\B(/1+*@(:2,0*Z2R_o>DDaR ?>R* 7.,#2/* X%2H%)(* [/P2,-.0%2/* \/.$+&%&* 7(/0(,Y* I.S* @%)B(* Z.0%2/.$* 4.#2,.02,+Y* 5(//(&&((Y*<6\Y*9.+*>DDER ?=R* G2,*./*2J(,J%(UY*&((*'00:Coo(/RU%S%:()%.R2,BoU%S%oA+202w!,20212$ ?MR* !(0(,* ^.,/(&Y* @2#(,0* 72&0./i.Y* !."$* 3.US(/Y* X.J%)* I,,Y* 8$%/2,* I&0,2-Y* \$J.,2* <-.x.Y*./)*I,./*h2"/BY*g7,(.0%/B*./*8.,0'*\0-2&:'(,%1*5,"&0k*\*&+&0(-*02*12/0,2$* 1$%-.0(*1'./B(*./)*,()"1(*:2J(,0+]Y*KW./".,+*>DDFOR*6((*.,0%1$(*2/*UUUR(.,0'%/1R2,Bo (.,0'w.0-2&:'(,%1w0,"&0R:': ?`R* I$%J(,*5%1S($$Y*O7(3(_c%F(2%3(%="$".0%340%!1(G"1%!600$4(;*0Y*K42/)2/C*y()*^22S&Y*>DDFOR ?aR* @%1'.,)*3(%/#(,BY*B40%W#1%E0?103#($%56(3('(1K*K;.#,%2$.*[&$./)*^7*7./.).C*Z(U*621%(0+* !"#$%&'(,&Y*>DDaOR ?ER* 6((*'00:Coo(/RU%S%:()%.R2,BoU%S%o@%-%/%*:,20212$ ?FR* 72$%/*WR*7.-:#($$Y*Z(U&$(00(,*F=*KZ2J(-#(,*>DDEOY*:"#$%&'()*2/*UUUR.&:2N%,($./)R2,B ?_R* W.-(&*3./&(/*(0*.$Y*g5.,B(0*.0-2&:'(,%1*7I>C*T'(,(*6'2"$)*3"-./%0+*\%-j]Y*I:(/* \0-2&:'(,%1*61%(/1(*W2",/.$Y*K>DDFY*J2$R*>OY*::R*>?EN>=?R


Climate Solutions: Part II The Carbon Board Ross Jackson Introduction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i(/R ^20'* &1'(-(&* .,(* g1.:* ./)* 0,.)(]* &+&0(-&Y* ./)* 0'"&* 12/&%&0(/0* U%0'* 0'(*gT.&'%/B02/*X(1$.,.0%2/]*2P *G(#,".,+*>DDEY*U'(,(*0'(*<6\Y*7./.).Y* G,./1(Y* ;(,-./+Y* [0.$+Y* @"&&%.Y* ;,(.0* ^,%0.%/Y* 7'%/.Y* [/)%.Y* 9(H%12* ./)* 62"0'*\P,%1.*U(,(*.$$*%/*:,%/1%:$(*.B,((-(/0*0'.0*0'(*&"11(&&2,*02*0'(*A+202* !,20212$*%/*>D?>*&'2"$)*#(*.*g1.:*./)*0,.)(]*&+&0(-Y*U'%1'*%/1$")(&*#20'* %/)"&0,%.$%&()*./)*)(J($2:%/B*12"/0,%(&RM* 62*P.,*&2*B22)R*32U(J(,Y*%/*&:%0(*2P * 0'(%,* -./+* :2&%0%J(* J%,0"(&Y* #20'* &1'(-(&* '.J(Y* %/* -+* 2:%/%2/Y* 0U2* U(.S/(&&(&Y* U'%1'* 12"$)* #(* %-:,2J()* ":2/R*4(0*"&*$22S*.0*0'(&(R

Who buys the permits? ^20'* &1'(-(&* &"BB(&0* 0'.0* :,%-.,+* :,2)"1(,&* &'2"$)* #(* %/1$")()* %/* 0'(* ."10%2/&*K.$0'2"B'*A+202>*%&*/20*(/0%,($+*1$(.,*2/*0'%&*:2%/0OR*32U(J(,Y*U(* 1.//20*'.J(*#20'*0'(*,($.0%J($+*P(U*:,%-.,+*:,2)"1(,&*./)*0'(%,*1"&02-(,&* #%))%/B*2/*0'(*&.-(*:(,-%&&%2/&R*T(*'.J(*02*-.S(*.*1'2%1(Y*./)*0'(*#(00(,* 1'2%1(*#+*P.,*%&*0'(*1"&02-(,&*c*0'(*%/0,2)"1(,&*2P *P2&&%$*P"($&*%/02*0'(*(12/N 2-+* K2%$* %-:2,0(,&Y* :2U(,* :$./0&Y* ,(P%/(,%(&Y* (01RO* #(1."&(* 0'(,(* .,(* -./+* 61


62

G AIAN ECONOMICS

-2,(* 2P * 0'(-* c* -./+* 0'2"&./)&* %/* P.10Y* U'%1'* B".,./0((&* .* 12-:(0%0%J(* ."10%2/Y*B,(.0(,*$%f"%)%0+Y*-2,(*&0.#$(*-.,S(0*:,%1(&*./)*$(&&*,%&S*2P *-./%:"N $.0%2/*./)*12,,":0%2/R*I/*0'(*20'(,*'./)*0'(,(*.,(*/20*-2,(*0'./*1./*(.&%$+* #(*'./)$()*%/*.*-2)(,/*12-:"0(,N#.&()*B$2#.$*0,.)%/B*2:(,.0%2/R*

Who gets the income from permit sales? ^20'* &1'(-(&* &"BB(&0* 0'.0* &2-(* K8\5O* 2,* .$$* KA+202>O* 2P * 0'(* ,(J(/"(&* &'2"$)*#(*"&()*P2,*1$%-.0(*-%0%B.0%2/*:,2b(10&Y*&"1'*.&*,(&(.,1'*./)*0(1'N /2$2B%1.$*%//2J.0%2/R*[*)2*/20*0'%/S*0'%&*U2"$)*#(*U%&(*P2,*0',((*,(.&2/&R* G%,&0$+Y* %0* U2"$)* /20* .::(.$* &"PP%1%(/0$+* 02* 0'(* )(J($2:%/B* 12"/0,%(&Y* /2,* U2"$)*%/)%J%)".$*1%0%i(/&*./+U'(,(*P(($*.*:(,&2/.$*%/0(,(&0*%/*0'(*:,2:2&.$R* [P *0'(*#%2&:'(,(*%&*0,"$+*.*12--2/*B22)Y*0'(/*0'(*,(J(/"(&*&'2"$)*B2*02* 0'(* %/)%J%)".$* 1%0%i(/&R* @(-(-#(,* 0'.0* 0'%&* :$./* %&* B2%/B* 02* -.S(* .$-2&0* .$$*(J(,+*).+*:,2)"10&Y*:.,0%1"$.,$+*P22)*./)*0,./&:2,0Y*-2,(*(H:(/&%J(R*[/N )%J%)".$*1%0%i(/&*)(&(,J(*&2-(*12-:(/&.0%2/*P2,*0'%&*02*B(0*0'(-*2/*#2.,)R* 6(12/)$+Y* -.&&%J(* :"#$%1$+* &:2/&2,()* @pX* &'2"$)* /20* #(* /(1(&&.,+R* ;2J(,/-(/0* &"#&%)%(&* .,(* /2,-.$$+* b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b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i(/&R* 60@10'3#$.%340% [P *U(*-2)%P+*0'(&(*0U2*&1'(-(&*.112,)%/B$+Y*U(*0'(/*'.J(*.*/(U*&1'(-(Y* ?6#$'#?10%34"3% U'%1'*P2,*0'(*&.S(*2P *,(P(,(/1(*[*U%$$*1.$$*5'(*7.,#2/*^2.,)R 340%"3)(*?4060%

#*%"%'())($% .((9P%

The Carbon Board Scheme !(,-%0&*02*:",1'.&(*7I>*c*(-%00%/B*P2&&%$*P"($&*K2%$Y*/.0",.$*B.&Y*12.$O*.,(*&2$)* 12-:(0%0%J($+*./)*B$2#.$$+*#+*5'(*7.,#2/*^2.,)*./)*2/$+*#+*5'(*7.,#2/* ^2.,)* 02* 12-:./%(&* P"/10%2/%/B* .0* 0'(* :2%/0* 2P * (/0,+* %/02* 0'(* (12/2-%1* &+&0(-*K,(P%/(,%(&Y*/.0",.$*B.&*0,./&:2,0*P%,-&Y*12.$*:,21(&&2,&Y*%-:2,0(,&*2P * P2&&%$*P"($*)%,(10$+*P,2-*:,%-.,+*:,2)"1(,&Y*(01ROR*[/*0'(*<6\*.$2/(Y*0'(,(*.,(*


C L I M AT E S O LU T I O N S : PA RT 2 . THE C A R BO N BOARD

63

,2"B'$+*?MDD*&"1'*P%,-&R=*5'"&*.*12-:(0%0%J(*:,%1(*./)*&"PP%1%(/0*$%f"%)%0+* %&*f"%0(*1(,0.%/R*5'(&(*&.$(&*&'2"$)*0.S(*:$.1(*U($$*%/*.)J./1(*2P *0'(*+(.,* %/*f"(&0%2/*%/*2,)(,*02*P.1%$%0.0(*12-:./+*:$.//%/B*K&0.,0%/B*-%/%-"-*?F* -2/0'&*#(P2,(OR !(,-%0&*2/1(*:",1'.&()*12"$)*#(*&2$)*.B.%/*0',2"B'*5'(*7.,#2/*^2.,)* .&* $2/B* .&* 0'(+* U(,(* J.$%)R* 5'%&* 0,.)%/B* B".,./0((&* -.H%-"-* (PP%1%(/1+Y* &2* :(,-%0&* B2* 02* 0'(* P%,-&* 0'.0* .,(* -2&0* 7I>* (PP%1%(/0* %/* (J(,+* #,./1'* 2P * #"&%/(&&R [/* 5'(* 7.,#2/* ^2.,)* &1'(-(Y* 0'(* ,(J(/"(* ,(1(%J()* P,2-* :(,-%0* &.$(&* %&*)%&0,%#"0()*(f".$$+*02*.$$*U2,$)*1%0%i(/&*%/*(f".$*.-2"/0&Y*,(P$(10%/B*0'(* :,%/1%:$(* 0'.0* 0'(* .0-2&:'(,(* %&* .* 12--2/* B22)R* 5'%&* -(./&Y* %/* (PP(10Y* .* 0,./&P(,* P,2-* 0'(* U(.$0'%(,* 02* 0'(* :22,(,* 12"/0,%(&R* [/* .))%0%2/Y* %/* 0'(* ,%1'(,*12"/0,%(&Y*%0*-(./&*.*,($.0%J($+*$.,B(,*:.+-(/0*02*0'(*:22,(&0*1%0%i(/&Y* U'2* 0+:%1.$$+* '.J(* $.,B(,* (/(,B+* 12&0&* %/* :(,1(/0.B(* 0(,-&R* 62-(* &"1'* ,()%&0,%#"0%2/*%&*/(1(&&.,+*02*B(0*#,2.)*#.1S%/B*P2,*./+*:,2:2&.$R \* B(/(,.$* 1'.,.10(,%&0%1* 2P * 0'%&* &1'(-(* %&* 0'.0* 0'(,(* .,(* -./+* .&:(10&* 0'.0* .,(* &"#b(10* 02* %/0(,/.0%2/.$* ./)* /.0%2/.$* /(B20%.0%2/&Y* :,2J%)()Y* 2P * 12",&(Y*0'.0*0'(*(&&(/0%.$*1'.,.10(,%&0%1&*2P *0'(*2J(,.$$*&1'(-(*,(-.%/*%/0.10R

Control of The Carbon Board [0* %&* J%0.$* 0'.0* 5'(* 7.,#2/* ^2.,)* %&* #(+2/)* 0'(* %/P$"(/1(* 2P * %/)%J%)".$* 12"/0,%(&*2,*12--(,1%.$*%/0(,(&0&Y*./)*%&*,(&:2/&%#$(*%/*(PP(10*02*0'(*(/0%,(* B$2#.$* :2:"$.0%2/* 2P * &2-(* aR`* #%$$%2/* :(2:$(R* [* U2"$)* &"BB(&0* 0'.0* 5'(* 7.,#2/*^2.,)*)%,(102,&*#(*.::2%/0()*#+*./)*#(*.112"/0.#$(*02*0'(*;(/(,.$* \&&(-#$+*2P *0'(*</%0()*Z.0%2/&*K/20*0'(*6(1",%0+*72"/1%$Y*U'%1'*,(:,(&(/0&* /.,,2U(,*%/0(,(&0&OR*

The Role of Primary Producers 5'(*,($.0%2/&'%:*U%0'*0'(*:,%-.,+*:,2)"1(,&*%&*2:(/*02*/(B20%.0%2/R*5'(+* '.J(*./*%/0(,(&0*%/*/20*:,2)"1%/B*-2,(*0'./*0'(*.B,(()*+(.,$+*f"20.*.&*0'(,(* U2"$)*#(*/2*1"&02-(,&*P2,*(H1(&&*:,2)"10%2/R*^"0*#+*'2U*-"1'*&'2"$)*(.1'* :,2)"1(,*,()"1(*:,2)"10%2/j \*,(.&2/.#$(*&2$"0%2/*U2"$)*#(*P2,*0'(*:,%-.,+*:,2)"1(,&*02*U2,S*1$2&($+* U%0'* 5'(* 7.,#2/* ^2.,)Y* U'%1'* U2"$)* .$$21.0(* f"20.&* 02* 0'(* %/)%J%)".$* :,2)"1(,&*#.&()*2/*0'(%,*:,2)"10%2/*1.:.1%0%(&*./)*0'(*020.$*f"20.*P2,*0'(* +(.,R*\*,()"10%2/*:,2:2,0%2/.$*02*1.:.1%0+*U2"$)*#(*.*,(.&2/.#$(*&0.,0%/B* :2%/0R* [/* ./+* 1.&(Y* %0* %&* J%0.$* 02* -2/%02,* 0'(* :,%-.,+* :,2)"1(,&* 02* '%/)(,* )(J($2:-(/0* 2P * .* #$.1S* -.,S(0R* 5'(,(* %&* ,22-* P2,* &2-(* P$(H%#%$%0+* '(,(Y* :,2J%)()*0'.0*020.$*:,2)"10%2/*%&*"/)(,*12/0,2$R*\*12"/0,+*0'.0*%&*.*:,%-.,+* :,2)"1(,*1.//20*)(-./)*:,%2,%0+*2/*%0&*)2-(&0%1*:,2)"10%2/R*\$$*&'2"$)*#(* 0,(.0()*(f".$$+R*Z2,*&'2"$)*.*J(,0%1.$$+*%/0(B,.0()*2%$*:,2)"1(,*#(*.$$2U()* 02* P.J2",* %0&* 2U/* ,(P%/(,%(&* ./)* )."B'0(,* %-:2,0* 12-:./%(&Y* U'%1'* -"&0* :",1'.&(*:(,-%0&*%/*2:(/*12-:(0%0%2/*U%0'*20'(,&R

D$%";34(6#3"6#"$% 60.#)0%)"H#$.% .1(G"1%90'#*#($*% ($%'1#)"30% )#3#."3#($% ?6([0'3*%2(;19% G0%"%4(6$03*X% $0*3%(@ %?(1#3#'"1% ?(*#3#($#$.K% *?0'#"1%#$3060*3*K% 4(6*0%36"9#$.% "$9%2#90*?60"9% @001#$.*%(@ %"$.06% "$9%@6;*36"3#($P%


64

B40%6#*H%#*%34"3% #$%"%@02%70"6*X% 3#)0K%340%2(619% 2#11%@#$9%#3*01@ % #$%"$%0-0$% 900?06%'6#*#*K% "$9%340%?(1#3#'"1% 10"906*4#?%2#11% G0%?60**;609% G7%'#-#1%*('#037% 3(%3"H0%36;17% 0@@0'3#-0%"'3#($P% /40$%34"3%3#)0% '()0*K%#3%)"7% G0%;*0@;1%3(%4"-0% 340%(;31#$0%(@ %"$% 0@@0'3#-0%*(1;3#($% #$%340%96"206P

G AIAN ECONOMICS

Permit costs !.+%/B*P2,*:(,-%0&*%&*(&&(/0%.$*P2,*0U2*,(.&2/&R*I/(*%&*02*:,2J%)(*0'(*%/12-(* 02* &.0%&P+* 0'(* (f"%0+* ,(f"%,(-(/0R* 5'(* 20'(,* %&* 02* 1,(.0(* 0'(* (12/2-%1* %/1(/0%J(* P2,* ,(&(.,1'* ./)* )(J($2:-(/0* 0'.0* U%$$* $(.)* 02* 0(1'/2$2B%1.$$+* -2,(* (/(,B+N(PP%1%(/0* :,2)"10&R* 5'(* ."0'2,&* 2P * 5'(* 8.,0'* \0-2&:'(,%1* 5,"&0*&1'(-(*(&0%-.0(*0'.0*0'(*12&0*2P *.*:(,-%0*U%$$*:,2#.#$+*#(*%/*0'(*,./B(* 2P *t>D*02*tFD*:(,*02/*7I>N(f"%J.$(/0Y*12,,(&:2/)%/B*02*./*%/12-(*2P *t?DDD* #%$$%2/*02*tMDDD*#%$$%2/*.0*1",,(/0*(-%&&%2/*$(J($&R`

Trading permits [0*%&*%-:2,0./0*0'.0*.*B$2#.$*-.,S(0*P2,*2/N$%/(*0,.)%/B*%/*:(,-%0&*.)-%/%&0(,()* #+*5'(*7.,#2/*^2.,)*#(*(&0.#$%&'()Y*&2-(U'.0*&%-%$.,*02*.*7(/0,.$*^./S* 1",,(/1+*0,.)%/B*)(&SR*5'(*.102,&*.$$2U()*02*#"+*./)*&($$*:(,-%0&*02*(.1'* 20'(,* U2"$)* #(* $%-%0()* 02* .* $%&0* 2P * .::,2J()* %-:2,0(,&* ./)* 20'(,&* U'2* %/0,2)"1(* P2&&%$* P"($&* %/02* 0'(* (12/2-+R* 52* -%/%-%i(* 12,,":0%2/* ./)o2,* $(.S.B(Y*.$$*0,./&.10%2/&*U2"$)*#(*#22S()*0',2"B'*5'(*7.,#2/*^2.,)Y*U'%1'* U2"$)*-.%/0.%/*.*&0.#$(*./)*$%f"%)*-.,S(0*b"&0*.&*.*7(/0,.$*^./S*U2"$)*)2R* [0*%&*.*f"(&0%2/*P2,*)%&1"&&%2/*.&*02*U'(0'(,*:(,-%0&*&'2"$)*#(*J.$%)*P2,* 2/$+*2/(*+(.,*2,*U'(0'(,*0'(+*12"$)*#(*S(:0*P2,*$.00(,*"&(R*\"10%2/*(H:(,0* !(0(,*7,.-02/*2P *0'(*</%J(,&%0+*2P *9.,+$./)*,(12--(/)&*0'(*$.00(,Y*#"0* &"1'* .* &+&0(-* 12"$)* $(.)* 02* &"#&0./0%.$* &:(1"$.0%2/* ./)* '2.,)%/BY* U'%1'* U2"$)* #(* '.,-P"$* 02* &21%(0+* K.&* :,%1(&* P2,* :(,-%0&* U%$$* :,2#.#$+* %/1,(.&(* P,2-*+(.,*02*+(.,ORa*5'%&*%&&"(*,(f"%,(&*P",0'(,*./.$+&%&*./)*)(#.0(R I/1(* .$$* :(,-%0&* '.J(* #((/* &2$)Y* 5'(* 7.,#2/* ^2.,)* &'2"$)* .B.%/* #(* 0'(*-%))$(-./*02*$%/S*#"+(,&*U%0'*:(,-%0&*02*&:(1%P%1*:,%-.,+*:,2)"1(,&*2P * J.,%2"&*1.0(B2,%(&*2P *2%$Y*/.0",.$*B.&*./)*12.$R*[/*0'%&*U.+Y*,%&S*2P *$(.S.B(*2,* 12,,":0%2/*1./*#(*S(:0*02*.*-%/%-"-*./)*12/0,2$*2P *0'(*:,%-.,+*:,2)"1(,&]* f"20.&* %&* -.%/0.%/()R* 5'(* 7.,#2/* ^2.,)* U%$$* .0* .$$* 0%-(&* S/2U* (H.10$+* U'(,(*.$$*"&()*./)*"/"&()*:(,-%0&*.,(*./)*U'.0*f"20.&*,(-.%/*.J.%$.#$(*.0* (.1'*:,%-.,+*:,2)"1(,R* [/)%J%)".$* 12-:./%(&* U%$$* /.0",.$$+* :.&&* 2/* .&* -"1'* .&* :2&&%#$(* 2P * 0'(%,*.))()*12&0&*02*0'(%,*)2U/&0,(.-*1"&02-(,&*%/*12-:(0%0%2/*U%0'*20'(,* &($$(,&R*5'2&(*12-:./%(&*0'.0*.,(*f"%1S(&0*./)*1$(J(,(&0*02*%//2J.0(*./)*&.J(* 0'(*-2&0*7I>*(-%&&%2/&*U%$$*:,2P%0*-2&0R*

National variants 5'(,(*%&*.*:2&&%#%$%0+*2P */.0%2/.$*J.,%.0%2/&*'(,(R*G2,*(H.-:$(Y*%P *.*12"/0,+]&* B2J(,/-(/0* U./0()* -2,(* 12/0,2$* 2J(,* 0'(* :,21(&&* U%0'%/* %0&* #2,)(,&Y* %0* 12"$)*&(0*":*.*&%/B$(*.112"/0*U%0'*5'(*7.,#2/*^2.,)*%/&0(.)*2P *%/)%J%)".$* .112"/0&* U%0'* %0&* )2-(&0%1* P2&&%$* P"($* %/0,2)"1(,&R* 5'(/* 0'(* B2J(,/-(/0* 12"$)*"&(*U'.0(J(,*%/0(,/.$*&+&0(-*%0*U%&'()*P2,*)%&0,%#"0%/B*0'(*:(,-%0&*0'.0* %0*:",1'.&()Y*:,2J%)()*0'(*20'(,*12-:2/(/0&*2P *0'(*&1'(-(*U(,(*":'($)R* G2,*(H.-:$(Y*%P *.*:.,0%1"$.,*12"/0,+*U%&'()*02*"&(*.*g)2U/&0,(.-]*-2)($* 2,*.*1.,#2/*0.HY*0'%&*12"$)*#(*)2/(R*62-(*-.+*&((*0'%&*.&*.*:2&%0%J(*U.+*02*


C L I M AT E S O LU T I O N S : PA RT 2 . THE C A R BO N BOARD

%/J2$J(*%/)%J%)".$*1%0%i(/&*)%,(10$+*%/*0'(*:,21(&&*2,*02*&.0%&P+*20'(,*:2$%0%1.$* B2.$&R*5'(,(*U2"$)*#(*(H0,.*.)-%/%&0,.0%J(*12&0&*./)*&2-(*$2&&*2P *(PP%1%(/1+* B$2#.$$+Y*#"0*%0*12"$)*U2,SR

Fairness issues ^.&()* 2/* 0'(* (&0%-.0()* ,./B(* -(/0%2/()* .#2J(* P2,* &.$(&* 2P* :(,-%0&Y* 0'%&* U2"$)*1",,(/0$+*.-2"/0*02*./*%/12-(*2P*t?`aNa>`*:(,*:(,&2/*:(,*+(.,*KtDRM=N t?RE?*:(,*).+OR*G2,*0'(*:22,(&0*1%0%i(/&*%/*-./+*)(J($2:%/B*12"/0,%(&Y*0'%&*%&* J(,+*&%B/%P%1./0R*5'(*020.$*.-2"/0&*0,./&P(,,()*02*-./+*:22,*12"/0,%(&*U%$$* #(*P.,*B,(.0(,*0'./*0'(%,*1",,(/0*P2,(%B/*.%)*K1.*t`M*#%$$%2/OR*5'%&*:,2&:(10*U%$$* '2:(P"$$+*:,2J%)(*.*&"PP%1%(/0*%/1(/0%J(*P2,*.$$*12"/0,%(&*02*.11(:0*0'(*&1'(-(R 5'(,(*%&*.*,%&S*2P *.#"&(*%/*,(J(/"(*)%&0,%#"0%2/R*G2,*(H.-:$(Y*.*12,,":0* B2J(,/-(/0*-%B'0*#(*.00,.10()*#+*0'(*%)(.*2P *S((:%/B*0'2&(*J(,+*&"#&0./0%.$* P"/)&*P2,*0'(*$21.$*($%0(Y*2,*P2,*0'(*B(/(,.$*0,(.&",+*2,*P2,*20'(,*:(0*:,2b(10&R* 5'(,(P2,(* %0* %&* %-:(,.0%J(* 0'.0* 0'(* 7.,#2/* ^2.,)Y* .&* :,20(102,&* 2P * 0'(* %/0(,(&0&* 2P * aR`* #%$$%2/* U2,$)* 1%0%i(/&Y* .::,2J(* 2P * 0'(* ,(J(/"(* )%&0,%#"0%2/* :,2:2&.$*P2,*(.1'*12"/0,+Y*./)*'.J(*0'(*:2U(,*02*U%0''2$)*P"/)&*%/*1.&(*2P * "/&.0%&P.102,+*0(,-&*2,*.#"&(*2P *.B,((-(/0&R

Non-fuel emissions 5'(*A+202>*&1'(-(*12,,(10$+*/20()*0'(*/(()*02*)(.$*U%0'*0'(*/2/NP"($*7I>* (-%&&%2/&Y*&"1'*.&*)(P2,(&0.0%2/*./)*1(,0.%/*%/)"&0,%.$*:,21(&&(&*&"1'*.&*0'(* 1.$1%/.0%2/*2P *$%-(*%/*1(-(/0*:,2)"10%2/R*5'%&*&'2"$)Y*2P *12",&(Y*#(*)(.$0* U%0'*%/*./+*.B,((-(/0R*32U(J(,Y*0'(*022$&*./)*2,B./%&.0%2/*/(()()*02*12/0,2$* 0'(&(*S%/)&*2P *(-%&&%2/&*.,(*f"%0(*)%PP(,(/0*P,2-*5'(*7.,#2/*^2.,)]&*-.%/* &0,"10",(*./)*2:(,.0%2/R*5'(,(P2,(*0'(*.)-%/%&0,.0%J(*.B(/0*12"$)*#(*(%0'(,* .* &:(1%.$* )(:.,0-(/0* 2P * 0'(* 7.,#2/* ^2.,)* 2,* .* &(:.,.0(* #"0* 122:(,.0%/B* .B(/1+R*5'(*#(&0*&2$"0%2/*P2,*12/0,2$*2P */2/NP"($*7I>*(-%&&%2/&*%&*&"#b(10*02* P",0'(,*&0")+*./)*/(B20%.0%2/*./)*%&*#(+2/)*0'(*&12:(*2P *0'%&*.,0%1$(R*

Is the scheme realistic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aY* P2$$2U()* #+* 12/0%/"()*%/1,(.&(&*%/*7I>*(-%&&%2/&*.P0(,*>D?>Y*2,*022*&$2U*.*)(1$%/(*02* &02:*.* ,"/.U.+* B$2#.$* U.,-%/BR* 5'(*,%&S* %&* 0'.0* %/* .* P(U* +(.,&]* 0%-(Y* 0'(*

65


66

G AIAN ECONOMICS

U2,$)*U%$$*P%/)*%0&($P *%/*./*(J(/*)((:(,*1,%&%&Y*./)*0'(*:2$%0%1.$*$(.)(,&'%:*U%$$* #(*:,(&&",()*#+*1%J%$*&21%(0+*02*0.S(*0,"$+*(PP(10%J(*.10%2/R*T'(/*0'.0*0%-(* 12-(&Y*%0*-.+*#(*"&(P"$*02*'.J(*0'(*2"0$%/(*2P *./*(PP(10%J(*&2$"0%2/*%/*0'(* ),.U(,*0'.0*1./*.10".$$+*)(.$*U%0'*0'(*:,2#$(-R*[/*0'(*$2/B*,"/Y*%P *U(*0,"$+* U./0*02*)(.$*U%0'*1$%-.0(*1'./B(*(PP(10%J($+Y*5'(*7.,#2/*^2.,)*&1'(-(Y*2,* &2-(0'%/B*J(,+*&%-%$.,Y*U%$$*:,2#.#$+*#(*/(1(&&.,+R*

/BW%6;10*% "60%"%)"[(6% 60"*($%@(6%340% 90.6"9"3#($%(@ % 340%0$-#6($)0$3% #$%.0$06"1%"$9% 340%'1#)"30% #$%?"63#';1"6K% G0'";*0% 0$-#6($)0$3"1% '(*3*%*;'4% "*%AW_% 0)#**#($*K%"60% d0S306$"1#R09e% @6()%'(6?(6"30% G"1"$'0%*4003*P

What if some nations will not participate? T'.0*%P *.*&"#&0./0%.$*-.b2,%0+*2P */.0%2/&*.,(*:,(:.,()*02*.11(:0*.*&1'(-(* ./)*20'(,&*U%$$*/20*b2%/Y*.&*U.&*0'(*1.&(*U%0'*0'(*A+202*!,20212$j*Z.0%2/&* 0'.0* &0.+* 2"0&%)(* &"1'* .* &1'(-(* .,(* /20* 2/$+* .#)%1.0%/B* 0'(%,* -2,.$* ,(&:2/&%#%$%0%(&Y*#"0*0'(+*.,(*B(00%/B*.*12-:(0%0%J(*.)J./0.B(*%/*0'.0*0'(+*1./* :,2)"1(*B22)&*1'(.:(,*U%0'2"0*0'(*12&0*2P *(-%&&%2/*:(,-%0&R*5'(,(P2,(Y*02* $(J($*0'(*:$.+%/B*P%($)Y*0'(*&%B/.02,%(&*12"$)*.B,((*02*:$.1(*0.,%PP&*2/*./+*./)* .$$*B22)&*(H:2,0()*P,2-*0'2&(*12"/0,%(&*0'.0*)2*/20*b2%/Y*0'(,(#+*($%-%/.0%/B* ./+* 12-:(0%0%J(* .)J./0.B(R* G,(/1'* :,(&%)(/0* Z%12$.&* 6.,12i+* ,.%&()* 0'%&* J(,+*:2&&%#%$%0+*%/*0'(*."0"-/*2P *>DDER*E 5'(*:2%/0*-.+*#(*,.%&()*#+*&2-(*2#&(,J(,&*0'.0*&"1'*0.,%PP&*U2"$)*#(* .B.%/&0*0'(*,"$(&*2P *0'(*T2,$)*5,.)(*I,B./%i.0%2/*KT5IOY*U'%1'*%&*.#&2N $"0($+*12,,(10R*5'%&*2#&(,J.0%2/*2"B'0*02*U.S(*":*.*$20*2P *:(2:$(*02*0'(*P.10* 0'.0*0'(*T5I*,"$(&*.,(*.*-.b2,*,(.&2/*P2,*0'(*)(B,.).0%2/*2P *0'(*(/J%,2/N -(/0*%/*B(/(,.$*./)*0'(*1$%-.0(*%/*:.,0%1"$.,Y*#(1."&(*(/J%,2/-(/0.$*12&0&* &"1'* .&* 7I>* (-%&&%2/&Y* .,(* g(H0(,/.$%i()]* P,2-* 12,:2,.0(* #.$./1(* &'((0&R* 5'(&(*J(,+*,(.$*12&0&*02*&21%(0+Y*U'%1'*2"B'0*02*#(*%/1$")()*%/*:,2)"10*:,%1(&Y* .,(*1",,(/0$+*:.&&()*2/*02*0'(*aR`*#%$$%2/*0.H:.+(,&*02*)(.$*U%0'R*5'(*:,2#$(-* 2P *0'(*T5I*./)*(/J%,2/-(/0.$*)(B,.).0%2/*%&*)(.$0*U%0'*%/*./20'(,*.,0%1$(* 2P *-%/(*%/*0'%&*J2$"-(RF

References ?R* [/0(,B2J(,/-(/0.$*!./($*2/*7$%-.0(*7'./B(*K[!77OY*T2,S%/B*;,2":*[[[k*6"--.,+*P2,* !2$%1+-.S(,&Y*:R=*K&((*UUUR%:11R1'OR >R* %#%)Y*:R*>?R =R* !(0(*7,.-02/Y*g5,.)(.#$(*7.,#2/*!(,-%0*\"10%2/&]Y*</%J(,&%0+*2P *9.,+$./)Y*K8/(,B+* !2$%1+Y*=DY*===N==M`Y*>DD>Ok*.J.%$.#$(*.0*UUUR1,.-02/R"-)R()"R* MR* '00:Coo(/RU%S%:()%.R2,BoU%S%ol%(//.w7$%-.0(w7'./B(w5.$S&w>DDEzG(#,".,+w>DDEw T.&'%/B02/wX(1$.,.0%2/ `R* !(0(,* ^.,/(&Y* @2#(,0* 72&0./i.Y* !."$* 3.US(/Y* X.J%)* I,,Y* 8$%/2,* I&0,2-Y* \$J.,2* <-.x.Y*./)*I,./*h2"/BY*g7,(.0%/B*./*8.,0'*\0-2&:'(,%1*5,"&0k*\*&+&0(-*02*12/0,2$* 1$%-.0(*1'./B(*./)*,()"1(*:2J(,0+]Y*KW./".,+*>DDFOR*6((*.,0%1$(*2/*UUUR(.,0'%/1R2,Bo (.,0'w.0-2&:'(,%1w0,"&0R:': aR* 6((*!(0(,*7,.-02/*.,0%1$(*.#2J(R ER* g7$%-.0(*7'./B(C*6.,S2i+*#.1S&*1.,#2/*0.HY*8<*$(J+*2/*/2/NA+202*%-:2,0&]Y*\B(/1(* G,./1(N!,(&&(Y*KI102#(,*>`Y*>DDEOR* FR* @2&&*W.1S&2/Y*g6'%P0%/B*0'(*;$2#.$*812/2-+]Y*%/*92)"$(*?R 5'(* 7.,#2/* ^2.,)* :,2:2&.$* U.&* P%,&0* :"#$%&'()* %/* @2&&* W.1S&2/]&* g\/* [)(.$* 7$%-.0(* \B,((-(/0j]Y*506)"';13;60%="."R#$0*Z2R*`F*KT%/0(,*>DDFO


MODULE 2

Community Banks & Currencies T(*,.,($+*:.+*-"1'*.00(/0%2/*02*'2U*-2/(+*U2,S&k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

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

67


Based in Lebensgarten ecovillage in Germany, Margrit Kennedy has perhaps done more than anyone, over several decades, to critique conventional money systems and to pioneer new complementary currencies. This article provides a comprehensive analysis of the various ways in which money in its current guise is a key driver of todayâ&#x20AC;&#x2122;s unsustainable, inequitable economy. She also makes the case for regionally-based complementary currencies and describes numerous schemes that are already in operation.

Financial Stability: A Case for Complementary Currencies Margrit Kennedy Executive summary 5'%&*:.:(,*)(.$&*U%0'*.*P"/).-(/0.$*:,2#$(-*12/1(,/%/B*2/(*2P *0'(*-2&0* %/B(/%2"&*%/J(/0%2/&*2P *-./S%/)*c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c* %/* U'%1'* .$$* #.,,%(,&* 02* 0'(* -2#%$%0+* 2P * P%/./1%.$*0,./&.10%2/&*'.J(*#((/*,(-2J()*c*0'%&*'.&*$()*02*.*B$2#.$*P%/./1%.$* &+&0(-*%/*U'%1'*&:(1"$.0%2/*%&*-2,(*:2U(,P"$*0'./*0,.)(Y*'.&*-2,(*P%/./1%.$* 1$2"0Y*./)*)(:(/)&*2/*%/)%J%)".$&*U'2*'.J(*-2,(*02*B.%/*P,2-*%/&0.#%$%0+* ,.0'(,*0'./*&0.#%$%0+R*[/P$.0%2/Y*-2/(0.,+*&:(1"$.0%2/*./)*./*"/(J(/*B,2U0'* 2P * J.,%2"&* (12/2-%1* %/)%1.02,&* c* $%S(* -2/(0.,+* .&&(0&Y* ;Z!* ./)* 0'(* /(0* %/12-(*%/*,(.$*U.B(&*./)*&.$.,%(&*c*.,(*b"&0*&2-(*2P *0'(*:,2#$(-&*.&&21%.0()* U%0'*0'%&*)(J($2:-(/0R* [/* 0'(* &(12/)* :.,0Y* '%&02,%1* (J%)(/1(* .&* U($$* .&* /(U* (H.-:$(&* P2,* -2/(0.,+*)(&%B/&*&'2U*'2U*0'(&(*:,2#$(-&*1./*#(*.J2%)()*./)*'2U*&2-(* 2P *0'(*-2&0*:,(&&%/B*:,2#$(-&*2P *&21%.$Y*P%/./1%.$Y*./)*(12$2B%1.$*%/&0.#%$%0+* 1./* #(* ,(&2$J()* 02B(0'(,R* [0* &"BB(&0&* 0'.0* g72-:$(-(/0.,+* 7",,(/1%(&]* K77&O*c*)(P%/()*.&*-(./&*2P *:.+-(/0*U%0'*.*#"%$0N%/*0.,B(0*c*2PP(,*1'(.:(,* ./)*-2,(*(PP(10%J(*&2$"0%2/&*0'./*0'2&(*U'%1'*1./*#(*.1'%(J()*0',2"B'*0'(* 12/J(/0%2/.$* -2/(+* &+&0(-R* 5'(+* )2* /20* %/0(/)* 02* ,(:$.1(* 0'(* (H%&0%/B* /.0%2/.$*2,*%/0(,/.0%2/.$*1",,(/1%(&*#"0*,.0'(,*02*12-:$(-(/0*0'(-R*9.%/$+* P2,*&21%.$Y*1"$0",.$*./)*(12$2B%1.$*:,2B,.-&*2,*-(.&",(&Y*/(U*$%f"%)%0+*1./* #(*1,(.0()*U%0'2"0*#",)(/%/B*0'(*0.H:.+(,*2,*B2J(,/-(/0&*U%0'*.))%0%2/.$* 12&0&R* 77&* 1./* #(* &((/* .&* :2U(,P"$* 022$&* P2,* &0,(/B0'(/%/B* 0'(* (12/2-%1* 68


FI NA N CI A L STA B I L I T Y: A C A S E FO R COM P L E MENTARY C URRE N C IE S

J%.#%$%0+*2P *.*&:(1%P%1*&21%.$*&(102,*2,*B(2B,.:'%1.$$+*$%-%0()*,(B%2/*K)(P%/()* '(,(*.&*./*.,(.*#(0U((/*0'(*$21.$*./)*0'(*/.0%2/.$OY*#"0*.$&2*P2,*(12/2-%1* .10%J%0%(&*2/*.*U2,$)U%)(*&1.$(R*[/*&2-(*%/&0./1(&Y*0'(+*.$,(.)+*'.J(*:,2J(/* 0'(%,*:20(/0%.$*02*&"::2,0*./)*&0,(/B0'(/*0'(*(12/2-+*2J(,*&(J(,.$*)(1.)(&R !,2:2&.$&* P2,* U2,$)U%)(* 12-:$(-(/0.,+* 1",,(/1%(&* :,2J(* 0'.0* -2,(* P.%,/(&&* ./)* &"&0.%/.#%$%0+* 1./* .$&2* #(* .1'%(J()* 2/* .* B$2#.$* &1.$(R* @.0'(,* 0'./*.11(:0%/B*-2/2:2$%(&*P2,*/.0%2/.$*-2/(+&*.&*./*"/f"(&0%2/.#$(*B%J(/Y* %0* &((-&* "&(P"$* 02* (/'./1(* -2/(0.,+* &0.#%$%0+* #+* .* )%J(,&%0+* 2P * 1",,(/1+* &+&0(-&Y*&2*0'.0*-"$0%:$(*./)*-2,(*)%J(,&(*1'.//($&*2P *-2/(0.,+*$%/S&*./)* (H1'./B(&*1./*(-(,B(R*[/*.*0%-(*U'%1'*1.$$&*P2,*/(U*&2$"0%2/&*02*0'(*:,(&&%/B* :,2#$(-&*U(*.,(*P.1%/B*B$2#.$$+Y*.*-2J(*02U.,)*B%J%/B*":*.*:2U(,P"$*1(/0,.$* -2/2:2$+* ./)* 122:(,.0%/B* U%0'* &-.$$(,* :.,0/(,&* %/* 2,)(,* 02* 1,(.0(* -2,(* )%J(,&%P%()* ./)* $%P(* (/'./1%/B* -2/(0.,+* &+&0(-&* c* .* :.,.)%B-* &'%P0* P2,* (12/2-%&0&*./)*#./S(,&*c*-.+*U($$*'.J(*.*1'./1(*P2,*0'(*P%,&0*0%-(*%/*,(1(/0* '%&02,+R*

Reasons for my look at monetary sustainability [/*0'(*$.0(*&(J(/0%(&Y*(/J%,2/-(/0.$%&0&*c*.-2/B*U'%1'*[*12"/0*-+&($P *c*U(,(* .-2/B*0'(*P%,&0*02*f"(&0%2/*U'+*(12/2-%1*,(.&2/%/B*)(-./)()*(H:2/(/0%.$* B,2U0'* ,(0",/&* 0'.0* 0'(* :$./(0* 12"$)* /(J(,* &"&0.%/R* T(* )%&12J(,()* 0'.0* 0'(,(* U.&* &(J(,(* $.1S* 2P * "/)(,&0./)%/B* 2P * 0'(* -2&0* #.&%1* P.10&* .#2"0* -2/(+* .-2/B&0* $.+-(/* .&* U($$* .&* :,2P(&&%2/.$* (12/2-%&0&R* @(-.,S.#$+* $%00$(*,(&(.,1'*#+*(12/2-%&0&*'.)*#((/*)(J20()*02*0'(*f"(&0%2/&*2P *-2/(+* 1,(.0%2/*./)*P"/10%2/%/BR*<:*02*0'%&*).+Y*%0*,(-.%/&*.$-2&0*0.#22*02*)%&1"&&* %0Y*#20'*P2,*(12/2-%&0&*./)*B2J(,/-(/0&Y*.&*%P *0'(*B$2#.$*-2/(0.,+*&+&0(-* U.&*.*P"/).-(/0.$*B%J(/R*32U(J(,Y*/20'%/B*12"$)*#(*P",0'(,*P,2-*0'(*0,"0'R* [/*0'%&*:.:(,Y*[*U%$$*&"--.,%i(*-+*$(.,/%/B*:,21(&&Y*U'%1'*&0.,0()*%/*?_F>* U'(/*[*P%,&0*.&S()*0'(*f"(&0%2/C*T'+*1./]0*0'(*(12$2B%1.$*,(/(U.$*-(.&",(&* U(*.,(*:$.//%/B*P2,*^(,$%/Y*;(,-./+*#(*12/&%)(,()*g(12/2-%1.$]j*\&*-2&0* :(2:$(*U./0()*02*-2J(*02U.,)&*.*&"&0.%/.#$(*$%P(*&0+$(*%/*0'(*1%0+Y*[*P($0*0'.0* 0'(,(*'.)*02*#(*&2-(0'%/B*U,2/B*U%0'*0'(*(12/2-%1*&+&0(-Y*%P *%0*U.&*0'(* 1."&(* P2,* :,(J(/0%/B* "&* P,2-* %-:$(-(/0%/B* 0'(-R* 422S%/B* %/02* 0'%&* %&&"(* &2-(U'.0*)((:(,Y*[*P2"/)*0'.0*0'(,(*%&*.*#.&%1*./0%/2-+*#(0U((/*(12$2B+* ./)*(12/2-+*)"(*02*.*U($$N'%))(/*:,2#$(-*U%0'%/*2",*-2/(+*&+&0(-R

The hidden problem â&#x20AC;&#x201C; compound interest 92/(+*c*.&*2/(*2P *0'(*-2&0*%/B(/%2"&*%/J(/0%2/&*2P *'"-./S%/)*c*P.1%$%0.0(&* 0'(*(H1'./B(*2P *B22)&*./)*&(,J%1(&*./)Y*0'(,(#+Y*2J(,12-(&*0'(*$%-%0.0%2/&* 2P * #.,0(,Y* ./)* 1,(.0(&* 0'(* :2&&%#%$%0+* 2P * &:(1%.$%i.0%2/* .&* 0'(* #.&%&* 2P * 1%J%$%i.0%2/R* 5.S%/B* .* -2,(* )(0.%$()* J%(U* $(.)&* "&* 02* .* :,2#$(-* 0'.0* '.&* #((/* %B/2,()* P2,* .* $2/B* 0%-(C* 0'(* .J.%$.#%$%0+* 2P * -2/(+* c* #.&()* 2/* 0'(* :.+-(/0*2P *%/0(,(&0*c*'.&*0U2*&%)(&R*5'(*"&(P"$*&%)(*-2&0*:(2:$(*"/)(,&0./)* %--()%.0($+*c*&((&*%/0(,(&0*.&*0'(*:,%1(*P2,*-2/(+Y*U'%1'*P"/10%2/&*.&*./* %/)%1.02,*P2,*0'(*&1.,1%0+*2P *:,2)"10&*2,*-2/(+*%/*2",*(12/2-%(&*c*./)*.&*

69


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&"1'Y*%0*%&*)%PP%1"$0*02*,(:$.1(R*5'(*:,2#$(-.0%1*&%)(Y*U'%1'*%&*,.,($+*)%&1"&&()Y* %&*0'.0*%/0(,(&0*.$&2*1,(.0(&*./*%-:(0"&*P2,*(H:2/(/0%.$*B,2U0'R*T'.0*U(*1.$$* g[/0(,(&0]*/20*2/$+*12/0.%/&*0'(*12&0*2P *0'(*U2,S*2P *0'(*#./SY*.*,%&S*:,(-%"-* ./)*./*%/P$.0%2/.,+*.)b"&0-(/0Y*K%R(R*12&0&Y*U'%1'*1.//20*#(*($%-%/.0()OY*#"0* .$&2* 12/0.%/&*0'(* &2N1.$$()* g$%f"%)%0+*:,(-%"-]R* 5'%&* %&* 0'(* ,(U.,)* P2,* 0'(* $(/)(,* U'2* $(/)&* '%&* -2/(+* 02* 20'(,&R* \/)* 0'(* -2/(+* 2U/(,&]* .#%$%0+* 02* '2$)*-2/(+*#.1S*"/0%$*0'(*g:,%1(*%&*,%B'0]*K.&*%0*:,2)"1(&*.$-2&0*/2*&02,.B(* AA*%'"$%G0%*00$% 12&0&*$%S(*.$$*20'(,*B22)&O*P2,1(&*20'(,*:.,0%1%:./0&*%/*0'(*-.,S(0*02*:.+*-2,(* "*%?(206@;1%3((1*% 0'./*0'(%,*P.%,*&'.,(*P2,*2#0.%/%/B*0'(*/(1(&&.,+*-(./&*2P *(H1'./B(R*92/(+* @(6%*360$.340$#$.% c*%/*%0&*:,(&(/0*P2,-*c*0'(,(P2,(*/20*2/$+*:,2J%)(&*.*S(+*#"0*.$&2*.*$21S*02* 0'(*-.,S(0R*5'%&*:2&&%#%$%0+*P2,*0'(*,(0(/0%2/*2P *-2/(+*0(/)&*02*)%&02,0*.$$* 340%0'($()#'% -.,S(0*-(1'./%&-&*./)Y*0'(,(P2,(Y*&'2"$)*#(*($%-%/.0()R*I0'(,U%&(Y*-2/(+* -#"G#1#37%(@ % K./)*/20*0'(*:,2J%&%2/*2P *B22)&*./)*&(,J%1(&O*#(12-(&*0'(*:,%-(*P21"&*2P *.$$* "%*?0'#@#'% (12/2-%1*.10%J%0%(&R*[0*%/(J%0.#$+*$(.)&*c*2J(,*0%-(*c*02*(H1(&&(&*2P *-2/(0.,+* *('#"1%*0'3(6%(6% &:(1"$.0%2/Y*.0*:,(&(/0Y*P2,*0'(*P%,&0*0%-(*%/*'"-./*'%&02,+Y*2/*.*B$2#.$*&1.$(R* .0(.6"?4#'"117% T(* /2U* '.J(* .* U2,$)* P%/./1%.$* &+&0(-* %/* U'%1'* &:(1"$.0%2/* %&* -2,(* 1#)#309%60.#($% :2U(,P"$* 0'./* 0,.)(Y* '.&* -2,(* P%/./1%.$* 1$2"0Y* ./)* )(:(/)&* 2/* :(2:$(* ]90@#$09%4060%"*% ,"//%/B* 0'(* &+&0(-* U'2* '.J(* -2,(* 02* B.%/* P,2-* %/&0.#%$%0+* ,.0'(,* 0'./* "$%"60"%G03200$% &0.#%$%0+R* G2,(&((%/B* 0'%&* %/* ?_=aY* A(+/(&* U,20(C* g6:(1"$.02,&* -.+* )2* /2* '.,-* .&* #"##$(&* 2/* .* &0(.)+* &0,(.-* 2P * (/0(,:,%&(R* ^"0* 0'(* :2&%0%2/* %&* 340%1('"1%"$9% &(,%2"&*U'(/*(/0(,:,%&(*#(12-(&*0'(*#"##$(*2/*.*U'%,$:22$*2P *&:(1"$.0%2/R* 340%$"3#($"1^K% T'(/*0'(*1.:%0.$*)(J($2:-(/0*2P *.*12"/0,+*#(12-(&*.*#+N:,2)"10*2P *0'(* G;3%"1*(%@(6% .10%J%0%(&*2P *.*1.&%/2Y*0'(*b2#*%&*$%S($+*02*#(*%$$N)2/(]R*[/*0'(*-(./0%-(Y*0'(* 0'($()#'% 1.:%0.$* )(J($2:-(/0* 2P * 0'(* U2,$)* &((-&* 02* '.J(* #(12-(* .* #+N:,2)"10* 2P * "'3#-#3#0*%($%"% 0'(*.10%J%0%(&*2P *.*1.&%/2R*5'(,(P2,(Y*0'(*f"(&0%2/*.,%&(&C*32U*1./*U(*1,(.0(* 2(6192#90%*'"10P .* -2/(+* &+&0(-Y* U'%1'* .J2%)&* 0'(* 12-:2"/)%/B* 2P * %/0(,(&0* ./)* .$$* %0&* .&&21%.0()* :,2#$(-&j* G2,* 0'%&* %0* %&* "&(P"$* 02* "/)(,&0./)* 0',((* c* 2"0* 2P * .0* $(.&0*0'%,0+*c*-%&12/1(:0%2/&*.#2"0*-2/(+Y*U'%1'*.$-2&0*(J(,+#2)+*'2$)&* K7,("0iY*>DDMOR

Three misconceptions ?R* 5'(*g;,2U0'*9%&12/1(:0%2/]*%&*#.&()*2/*0'(*#($%(P *0'.0*-2/(+*#.&()* 2/*%/0(,(&0*1./*B,2U*P2,(J(,*c*./)*0'%&*%/*0",/*%&*#.&()*2/*:(2:$(*/20* "/)(,&0./)%/B*0U2*B(/(,%1.$$+*)%PP(,(/0*0+:(&*2P *B,2U0'*KG%B",(*?OR* 7",J(* K.O* ,(:,(&(/0&* 0'(* /2,-.$* :'+&%1.$* B,2U0'* :.00(,/* %/* /.0",(* %/* U'%1'* (J(,+0'%/B* &02:&* B,2U%/B* .0* ./* 2:0%-.$* &%i(R* 5'%&* %&* 0'(* 2/$+* &"&0.%/.#$(*B,2U0'*:.00(,/*0'.0*(H%&0&R 7",J(* K#O* ,(:,(&(/0&* (H:2/(/0%.$* B,2U0'* )2"#$%/B* %0&* "/%0&* .0* ,(B"$.,* %/0(,J.$&R*[0*-.+*#(*)(&1,%#()*.&*0'(*(H.10*2::2&%0(*02*1",J(*K.OY*%/*0'.0* %0*B,2U&*&$2U$+*%/*0'(*#(B%//%/BY*0'(/*.11($(,.0(&*12/0%/".$$+*P.&0(,*./)Y* P%/.$$+Y*B,2U&*%/*./*.$-2&0*J(,0%1.$*P.&'%2/R ^.&()* 2/* %/0(,(&0* ./)* 12-:2"/)* %/0(,(&0Y* 2",* -2/(+* P2$$2U&* ./* (H:2/(/0%.$*B,2U0'*:.00(,/C*.0*=r*12-:2"/)*%/0(,(&0*%0*)2"#$(&*%/*>M*


FI NA N CI A L STA B I L I T Y: A C A S E FO R COM P L E MENTARY C URRE N C IE S

+(.,&k*.0*ar*%0*0.S(&*?>*+(.,&k*.0*?>r*&%H*+(.,&R*52*&'2U*0'(*%-:.10*2/* -2/(+* %/* 0'(* $2/B* ,"/Y* U(* -.+* "&(* 0'(* P.-2"&* (H.-:$(* 2P * W2&(:'&]* 1(/0* %/J(&0()* .0* `r* %/0(,(&0* %/* 0'(* +(.,* DR* [/* 0'(* +(.,* >DDD* 0'%&* 1(/0* U2"$)*#(*U2,0'*2J(,*`DD*#%$$%2/*#.$$&*2P *B2$)*2P *0'(*U(%B'0*2P *0'(*(.,0'Y* .0*0'(*:,%1(*2P *B2$)*%/*0'.0*+(.,R*T%0'2"0*0'(*12-:2"/)%/B*2P *%/0(,(&0Y* 0'(*&"-*.11"-"$.0()*U2"$)*'.J(*#((/*?YD?*sR*5'%&*&'2U&*0'.0*%0*%&*/20* %/0(,(&0*0'.0*%&*0'(*:,2#$(-Y*#"0*0'(*12-:2"/)%/B*2P *%/0(,(&0R*5',2"B'* 0'(*"&(*2P *0'(*g)%&12"/0()*1.&'*P$2U]Y*'2U(J(,Y*%/0(,(&0*./)*12-:2"/)* %/0(,(&0*:,2J%)(*0'(*#.&%&*P2,*.$$*(J.$".0%2/&*2P *(12/2-%1*(PP%1%(/1+*P2,* %/J(&0-(/0&*%/*12/J(/0%2/.$*1",,(/1%(&R* >R* 5'(* B6"$*?"60$'7% =#*'($'0?3#($* )(.$&* U%0'* 0'(* &(12/)* -.b2,* )%PP%1"$0+* %/* P"$$+* "/)(,&0./)%/B* 0'(* %-:.10* 2P * 0'(* %/0(,(&0* -(1'./%&-* 2/* 2",* (12/2-%1*&+&0(-R*92&0*:(2:$(*0'%/S*0'.0*0'(+*:.+*%/0(,(&0*2/$+*%P *0'(+* #2,,2U*-2/(+R*5'(+*)2*/20*"/)(,&0./)*0'(*P.10*0'.0*(J(,+*:,%1(*12/0.%/&* .*1(,0.%/*.-2"/0*2P *%/0(,(&0Y*)(:(/)%/B*2/*0'(*&'.,(*2P *1.:%0.$*)(:$2+()* :(,*"/%0*2P *2"0:"0R*5'%&*,($.0%2/&'%:*c*02B(0'(,*U%0'*0'(*,.0(*2P *%/0(,(&0* c*)(0(,-%/(&*0'(*%/0(,(&0*12-:2/(/0*%/*:,%1(&R*G2,*0'(*0',((*P2$$2U%/B* (H.-:$(&*P,2-*;(,-./+Y*%0*,./B(&*P,2-*.*?>*r*%/0(,(&0*12-:2/(/0*%/* 0'(*:,%1(*P2,*B.,#.B(*12$$(10%2/*K#(1."&(*'(,(*0'(*&'.,(*2P *1.:%0.$*12&0&* %&*,($.0%J($+*$2U*./)*0'(*&'.,(*2P *:'+&%1.$*$.#2,*%&*:.,0%1"$.,$+*'%B'O*02* =Fr*P2,*),%/S%/B*U.0(,*c*./)*":*02*EEr*%/*0'(*,(/0*P2,*:"#$%1*'2"&%/B* KU'(/*1.$1"$.0()*2J(,*?DD*+(.,&Y*U'%1'*%&*0'(*(&0%-.0()*0%-(*'2"&(&*%/* ;(,-./+* .,(* &"::2&()* 02* $.&0OR* I/* .J(,.B(Y* :(2:$(* %/* ;(,-./+* :.+* .#2"0*M`r*%/0(,(&0*%/*0'(*:,%1(&*2P *B22)&*./)*&(,J%1(&*0'(+*/(()*P2,*0'(%,* $%P(R* =R* 5'(*Q"#6$0**%=#*'($'0?3#($%%&*#.&()*2/*0'(*/20%2/*0'.0*(J(,+2/(*%&*0,(.0()* (f".$$+* %/* 2",* -2/(0.,+* &+&0(-R* T(* .$$* '.J(* 02* :.+* %/0(,(&0* U'(/* #2,,2U%/B*-2/(+*./)*,(1(%J(*%/0(,(&0*P2,*&.J%/B&R*32U(J(,Y*U'(/*U(* 0.S(*.*1$2&(,*$22SY*0'(,(*.,(*%/)(()*'"B(*)%PP(,(/1(&*.&*02*U'2*:,2P%0&* ./)*U'2*:.+&*%/*0'%&*&+&0(-R*72-:.,%/B*0'(*.J(,.B(*%/0(,(&0*:.+-(/0&* ./)*%/12-(*P,2-*%/0(,(&0*%/*0(/*(f".$*:.,0&*2P *>R`*-%$$%2/*'2"&('2$)&*%/* ;(,-./+Y*U(*1./*&'2U*0'.0*FDr*2P *0'(*:2:"$.0%2/*:.+*.$-2&0*0U%1(*.&* -"1'*.&*0'(+*,(1(%J(Y*?Dr*,(1(%J(*&$%B'0$+*-2,(*0'./*0'(+*:.+Y*./)*0'(* ,(-.%/%/B* ?Dr* ,(1(%J(* -2,(* 0'./* 0U%1(* .&* -"1'* %/0(,(&0* .&* 0'(+* :.+R* 5'%&*$.&0*.-2"/0*%&*0'(*&'.,(*0'.0*0'(*P%,&0*FDr*$2&(&*KG%BR>OR* G%B",(*>* 5'%&*%$$"&0,.0(&*2/(*2P *0'(*$(.&0*"/)(,&022)*,(.&2/&*U'+*0'(*,%1'*B(0*,%1'(,* ./)*0'(*:22,*B(0*:22,(,*c*./)*0'.0*0'(*(12/2-%&0&]*/20%2/*0'.0*-2/(+* %&*b"&0*.*/("0,.$*-(.&",(*P2,*0'(*(12/2-+*%&*%/12,,(10R*[/*;(,-./+Y*%/* 0'(*+(.,*>DDMY*.#2"0*2/(*#%$$%2/*8",2&*U(,(*0,./&P(,,()*(J(,+*).+*P,2-* 0'2&(*U'2*U2,S*P2,*0'(%,*-2/(+*02*0'2&(*U'2*1./*-.S(*0'(%,*g-2/(+* U2,S*P2,*0'(-]*K7,("0iY*>DDMOR*^"0*-2/(+*/(J(,*gU2,S&]R*I/$+*:(2:$(* ./)* -.1'%/(&* :,2)"1(* ,(.$* J.$"(R* 92/(+* 1./* 2/$+* #(* ,(N)%&0,%#"0()* P,2-* 0'2&(* U'2* 1,(.0(* 0'.0* J.$"(* 02* 0'2&(* U'2* 2U/* -2/(+R* [/* 20'(,*

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U2,)&Y* U(* .$$2U* 0'(* 2:(,.0%2/* 2P * .* '%))(/* ,()%&0,%#"0%2/* -(1'./%&-* %/* 2",* -2/(0.,+* &+&0(-Y* U'%1'* 12/0%/".$$+* 0,./&P(,&* -2/(+* P,2-* 0'(* $.,B(* -.b2,%0+* 02* .* &-.$$* -%/2,%0+Y* 1,(.0%/B* .* &21%.$* :2$.,%i.0%2/* 0'.0* "/)(,-%/(&*./+*)(-21,.1+*2J(,*0%-(R*\/*\,B(/0%/(./*#./S(,Y*U'2*'.)* U2,S()*%/*0'(*Z.0%2/.$*7(/0,.$*^./S*P2,*=a*+(.,&Y*2/1(*,(-.,S()*c*%/* ,(B.,)*02*0'%&*P%B",(C*g{./)*U'.0*"&(*%&*(f".$%0+*#(P2,(*0'(*$.U*P2,*"&Y* U%0'2"0*(f".$%0+*#(P2,(*0'(*-2/(+j] 8J(/*-2,(*02*0'(*:2%/0Y*!,(&%)(/0*I#.&./b2*2P *Z%B(,%.*&0.0()*.P0(,* 0'(*;F*&"--%0*%/*IS%/.U.*%/*>DDDC*m\$$*0'.0*U(*#2,,2U()*":*02*?_F`* 2,*?_Fa*U.&*.#2"0*t`*#%$$%2/R*62*P.,*U(*'.J(*:.%)*#.1S*.#2"0*t?a*#%$$%2/R* h(0*U(],(*#(%/B*02$)*0'.0*U(*&0%$$*2U(*.#2"0*t>F*#%$$%2/*{*#(1."&(*2P * P2,(%B/*1,()%02,&]*%/0(,(&0*,.0(&R*[P *+2"*.&S*-(*U'.0*%&*0'(*U2,&0*0'%/B*%/* 0'(*U2,$)Y*[*U%$$*&.+*%0*%&*12-:2"/)*%/0(,(&0Rn* \0*0'.0*0%-(Y*0'(*)(J($2:%/B*U2,$)*U.&*&:(/)%/B*0'%,0((/*)2$$.,&*2/* )(#0*,(:.+-(/0*P2,*(J(,+*2/(*)2$$.,*%0*,(1(%J()*%/*P2,(%B/*.%)*./)*B,./0&* K4%(0.(,Y*>DDEOR

Three results ?R* *>$@1"3#($C* \&* 2/(* ,(&"$0* 2P * 0'%&* )(P(10* %/* 2",* -2/(0.,+* &+&0(-Y* (J(,+* X("0&1'(*9.,S*$2&0*FDr*2P *%0&*J.$"(*#(0U((/*?_`D*./)*>DD?*c*./)*0'%&* U.&* 0'(* -2&0* &0.#$(*1",,(/1+* %/* 0'(* U2,$)R* G2,* -2&0* :(2:$(Y* %/P$.0%2/* &((-&* $%S(* ./* %/0(B,.$* :.,0* 2P * ./+* -2/(+* &+&0(-* c* .$-2&0* g/.0",.$]* c* &%/1(*0'(,(*%&*/2*12"/0,+*%/*0'(*U2,$)*U%0'2"0*%/P$.0%2/R*^(1."&(*%/P$.0%2/* %&*:(,1(%J()*.&*.*B%J(/Y*(12/2-%&0&*./)*-2&0*:(2:$(*#($%(J(*%/0(,(&0*%&* /(()()*02*12"/0(,.10*%/P$.0%2/Y*U'%$(*%/*P.10*%/0(,(&0*%&*0'(*-.b2,%'";*0*2P * %/P$.0%2/R*5,"(Y*0'(*&'2,0N0(,-*,($.0%2/&'%:*#(0U((/*0'(*,.0(*2P *%/0(,(&0*


FI NA N CI A L STA B I L I T Y: A C A S E FO R COM P L E MENTARY C URRE N C IE S

73

./)*0'(*,.0(*2P *%/P$.0%2/*%&*)%PP(,(/0R*[0*12,,(&:2/)&*U%0'*12/J(/0%2/.$* U%&)2-C*.*,()"10%2/*2P *%/0(,(&0*,.0(&*-.S(&*1,()%0*(.&%(,*./)*(/12",.B(&* 1.:%0.$*./)*12/&"-(,*&:(/)%/BR*5'(*,(&"$0*%&*./*(H:./&%2/*2P *0'(*-2/(+* &"::$+*./)*c*%/*-2&0*1.&(&*c*(J(/0".$$+*.*,%&(*2P *0'(*,.0(*2P *%/P$.0%2/R*l%1(* J(,&.Y*./*%/1,(.&(*2P *%/0(,(&0*,.0(&*&$2U&*)2U/*0'(*(12/2-+Y*,()"1(&*0'(* -2/(+*&"::$+*./)*12"/0(,&*%/P$.0%2/R*8-:%,%1.$*(J%)(/1(*&"#&0./0%.0(&* 0'%&R*^"0*U'.0*'.::(/&*%/*0'(*$2/B*,"/j*T'.0*%&*0'(*,($.0%2/&'%:*#(0U((/* %/0(,(&0*,.0(&*./)*%/P$.0%2/*2J(,*.*:(,%2)*2P *c*&.+*`D*02*?DD*+(.,&j* Comparison of Interest Paid and Gained In ten groups of households of 3.8 million each reference year 2000. All values in thousands of Euros per household per year.

80

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

70

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

60

Ths. â&#x201A;Ź

50 40 30 20 10 0 1

2

3

4

5

6

7

8

9

10

Household Groups

8-:%,%1.$*,(&(.,1'*)2(&/]0*B%J(*"&*-"1'*2P *.*1$"(*.&*%0*%&*J(,+*)%PP%1"$0* c*%P */20*%-:2&&%#$(*c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c*./)*(-:%,%1.$*).0.* 12/P%,-&*c*0'.0*./*(H:2/(/0%.$*(H:./&%2/*2P *0'(*:,2)"1%/BN(12/2-+*%&* %-:2&&%#$(*2J(,*0'(*$2/B*,"/R*3(/1(Y*./*(H:2/(/0%.$*,.%&(*2P *9?*c*0'.0* .BB,(B.0(*2P *-2/(+*0'.0*%&*.J.%$.#$(*P2,*:.+-(/0&*%--()%.0($+*c*'.&*02* #(*.J2%)()*%P *'+:(,%/P$.0%2/*%&*02*#(*:,(J(/0()R*


74

G AIAN ECONOMICS

62* U'(,(* %&* (H:2/(/0%.$* B,2U0'* .10".$$+* 0.S%/B* :$.1(j* 5'(* .&&(0* -.,S(0&*'2$)*0'(*./&U(,R*[0*%&*%/*0'(*/"-#(,*2P *.&&(0&*./)*%/*0'(*.&&(0* (J.$".0%2/&* c* ./)* 0'%&* %&* (&:(1%.$$+* 0,"(* P2,* 0'(* &(1",%0%(&* -.,S(0* 0'.0* '.&* B,2U/* (H:2/(/0%.$$+* 2J(,* 0'(* :.&0* )(1.)(&R* 32U(J(,Y* "/$(&&* 0'%&* ,%&(* 12,,(&:2/)&* U%0'* .* 12-:.,.#$(* ,%&(* %/* 0'(* :,2)"1%/BN(12/2-+* 0'(%,* &",B(* %&* (H1(&&%J(R* 5'(&(* 2J(,J.$"()* .&&(0&* &(,J(* .&* #.1S%/B* P2,* 1,(.0%/B*$2./&R*^"0*c*%P *0'(*#.1S%/B*%&*B(00%/B*U(.S(,*c*'2U*%&*0'(*-2/(+* &"::2&()* /20* 02* $2&(* &2$%)%0+j* [/* .* -2/(0.,+* &+&0(-* U%0'* 12-:2"/)* %/0(,(&0Y* %/P$.0%2/* 1.//20* #(* :,(J(/0()R* \0* #(&0Y* %0* 1./* #(* S(:0* .0* $2U* $(J($&*P2,*.*/"-#(,*2P *)(1.)(&R*<$0%-.0($+Y*.*12,,(10%2/*c*0'.0*-(./&*.* -.&&%J(*./)*:.%/P"$*.)b"&0-(/0*c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r*U%0'*.*-(,(*=r*2P *0'(*0,./&.10%2/&*&(,J%/B*0'(* "G10%3(%;*0%340% (H1'./B(* 2P * B22)&* ./)* &(,J%1(&Y* %/1$")%/B* 02",%&-R* @(1(/0* P%B",(&* %/* @;11%?(30$3#"1% >DDE*&'2U*0'.0*0'(*).%$+*J2$"-(*2P *0,.)%/B*.$,(.)+*(H1(()&*t=Y>DD*#%$$%2/* (@ %($0%(@ %340% c*U'(,(.&*%/*0'(*?_ED&*%0*.-2"/0()*02*b"&0*t>DN=D*#%$$%2/R*T'.0*-.S(&* 0'(* &%0".0%2/* &2* )./B(,2"&* %&* 0'.0* %0* 1,(.0(&* (12/2-%1* %/&0.#%$%0+* 2/* .* )(*3%#$.0$#(;*% B$2#.$*&1.$(R*[/*0'(*(.,$+*?__D&Y*P2,*%/&0./1(Y*&:(1"$.0%J(*-2/(+*P$2U()* #$-0$3#($*%(@ % -.&&%J($+*%/02*5'.%$./)Y*9.$.+&%.*./)*A2,(.Y*2/$+*02*#(*U%0'),.U/*.* )"$H#$9K%"$9%3(% P(U*U((S&*$.0(,R*T'(,(*0'(&(*&:(1"$.02,&*U%0'),(UY*0'(+*$(P0*)(J.&0.0%/B* ?6(-#90%0-067($0% (PP(10&*2/*0'(*1"$0",(Y*(12$2B+*./)*&21%(0+R* ($%34#*%0"634% fP% D$%;$0-0$%.6(234*2P *)%PP(,(/0*&(102,&*%/*0'(*(12/2-+*%&*2/(*P",0'(,*,(&"$0R* 2#34%340%G"*#'% 72-:.,%/B*0',((*)%PP(,(/0*%/)%1.02,&*2P */(0*B,2U0'*#(0U((/*?_`D*./)* $0'0**#3#0*%(@ % ?__`*%/*;(,-./+Y*U(*P%/)*0'.0*-2/(0.,+*.&&(0&*c*#.1S()*#+*./*(f"%J.$(/0* 1#@0P .-2"/0* 2P * )(#0* c* %/1,(.&()* Ma?* 0%-(&k* 0'(* ;,2&&* Z.0%2/.$* !,2)"10*

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FI NA N CI A L STA B I L I T Y: A C A S E FO R COM P L E MENTARY C URRE N C IE S

P%/.$$+Y*02*#(*.#$(*02*"&(*0'(*P"$$*:20(/0%.$*2P *2/(*2P *0'(*-2&0*%/B(/%2"&* %/J(/0%2/&*2P *-./S%/)Y*./)*02*:,2J%)(*(J(,+2/(*2/*0'%&*(.,0'*U%0'*0'(* #.&%1*/(1(&&%0%(&*2P *$%P(R

Three historical solutions 5'(* ,($%B%2"&* $(.)(,&* 2P * W").%&-Y* [&$.-* ./)* 7',%&0%./%0+* "/)(,&022)* 0'(* :,2#$(-&* 2P * 12-:2"/)%/B* %/0(,(&0* ./)* $(P0* "&* &2$"0%2/&* P2,* '2U* 02* )(.$* U%0'*%0C*[/*[&$.-%1*:(2:$(*U'2*P2$$2U*0'(*6'.,%.*2#&(,J(*.*12-:$(H*&(0*2P * ,"$(&*02*:,(J(/0*%/0(,(&0*P,2-*12-:2"/)%/BR*[0*P2,#%)&*/20*2/$+*%/J(&0-(/0&* %/*-2,.$$+*2,*&21%.$$+*:,2'%#%0%J(*.10%J%0%(&*#"0*.$&2*&:(1"$.0%2/*./)*(H1(&&%J(* 12&0&*2P *$2./&*./)Y*12/&(f"(/0$+Y*-.S(&*0'(*-2/(+$(/)(,&*c*U'(0'(,*:,%J.0(* 2,*:,2P(&&%2/.$*c*.*:.,0*2P *0'(*:,2b(10*U'%1'*0'(+*.,(*P%/./1%/BR*5'(,(P2,(Y* 0'(+*'.J(*.*&0,2/B*&(/&(*2P *,(&:2/&%#%$%0+*P2,*%0&*12/0%/"%0+*./)*&"11(&&R W").%&-*"&()*02*,(&2$J(*0'(*:,2#$(-*2P *12-:2"/)%/B*%/0(,(&0*#+*U.%J%/B* .$$*)(#0*,(B"$.,$+*(J(,+*&(J(/*+(.,&*%/*0'(*&2N1.$$()*gb"#%$((*+(.,]R*\P0(,*E*H*E* 2,*M_*+(.,&*/20*2/$+*U(,(*)(#0&*gP2,NB%J(/]*./)*)(#0N&$.J(&*U(,(*P,(()Y*:,%J.0(* $./)*U.&*.$&2*B%J(/*#.1S*02*0'(*12--"/%0+R 5'(* 7',%&0%./* 1'",1'(&* %/* 8",2:(Y* -.%/$+* )",%/B* 0'(* 9%))$(* \B(&* #(0U((/*_DD*./)*?MDD*\XY*%-:2&()*&0,%10*%/0(,(&0*:,2'%#%0%2/*$.U&R*5'(+* :"/%&'()* 0'2&(* U'2* $(J%()* %/0(,(&0* 2/* $2./&Y* &(J(,($+* (H1$")%/B* 0'(-* P,2-*0'(*7',%&0%./*12--"/%0+*./)*7',%&0%./*P"/(,.$&R*92/(+*U.&*S(:0*%/* 1%,1"$.0%2/*#+*,(B"$.,$+*,(N1.$$%/B*./)*,(N-%/0%/B*0'(*0'%/*-(0.$*12%/&*c*%/* &2-(*.,(.&*1.$$()*^,.S0(.0(/*c*(J(,+*0',((*02*P2",*+(.,&*./)*#+*$(J+%/B*.* P((*2P *=D*c*MDr*%/*0'(*,(/(U.$*:,21(&&R*5'%&*U.&*.*U.+*2P *12$$(10%/B*0.H(&R* 5'(* "&(* 2P * 0'(* 2$)* 12%/&* U.&* P2,#%))(/* #+* $.U* ./)* &./10%2/()* #+* :,%&2/* &(/0(/1(&R*5'%&*0%-(c,($.0()*1'.,B(*2/*-2/(+Y*1.$$()*g)(-",,.B(]Y*.10()*.&* .*g1%,1"$.0%2/*%/1(/0%J(]*./)*-(./0*0'.0*/2#2)+*U.&*.#$(*02*'2.,)*-2/(+* U%0'2"0*,%&S%/B*.*$2&&R*[/&0(.)*2P *1'.,B%/B*%/0(,(&0Y*:(2:$(*"&".$$+*.11(:0()* $2./&*0'.0*B".,./0(()*0'(*(f"%J.$(/0*J.$"(*.P0(,*&2-(*-2/0'&*2,*+(.,&*c*./)* 0'"&*0'(+*($%-%/.0()*0'(*g$%f"%)%0+*:,(-%"-]*2,*,(U.,)*P2,*0'(*$(/)(,Y*U'%1'* 1."&(&*0'(*12-:2"/)%/B*2P *%/0(,(&0R*[/*0(,-&*2P *-2)(,/*#./S%/B*:,.10%1(&Y* $(.J%/B*2"0*0'%&*&'.,(*%/*0'(*12&0*2P *%/0(,(&0*U2"$)*'.$J(*0'(*12&0&*P2,*$2./&* ./)*&"#&(f"(/0$+Y*2J(,*0%-(Y*0'(*M`r*&'.,(*2P *%/0(,(&0*%/*:,%1(&R \$$* 0',((* '%&02,%1* &2$"0%2/&* '.J(* ,(-.%/()* .$%J(* ":* 02* 0'%&* ).+R* 5'(* [&$.-%1* -2)($* %&* P%/)%/B* -2,(* ./)* -2,(* .11(:0./1(* .-2/B* 0'(* 9"&$%-* :2:"$.0%2/*%/*J%(U*2P *0'(*P.%$",(*2P *0'(*1.:%0.$%&0*-2/(+*&+&0(-*02*:,2J%)(* P2,*&+&0(-%1*&0.#%$%0+*./)*P.%,/(&&R*5'(*W(U%&'*-2)($*2P *U.%J%/B*0'(*)(#0&* '.&*#((/*.)J21.0()*02*12"/0(,.10*0'(*1.:%0.$%&0*-2/(+*&+&0(-&]*%/.#%$%0+*02* )(.$*U%0'*&21%.$*b"&0%1(*c*%/*0(,-&*2P *U.%J%/B*0'(*2"0&0./)%/B*$2./&*2P *0'(* $(&&*)(J($2:()*12"/0,%(&R*\/)*-./+*2P *0'(*12-:$(-(/0.,+*1",,(/1%(&*/2U* ,"//%/B*%/*;(,-./+*.,(*"&%/B*)(-",,.B(*.&*.*1%,1"$.0%2/*%/1(/0%J(R* T'(,(* 0'(&(* &2$"0%2/&* '.J(* /20* #((/* .::$%()Y* 0',((* '%&02,%1* 12/*&(N f"(/1(&* '.J(* .,%&(/C* '+:(,%/P$.0%2/* K2,* 1,.&'OY* &21%.$* ,(J2$"0%2/* ./)* U.,R* 32U(J(,Y* /(%0'(,* 0'(* FE* -2/(0.,+* 1,.&'(&* 2J(,* 0'(* $.&0* >`* +(.,&* K4%(0.(,* >DDEOY*/2,*#20'*T2,$)*T.,&Y*/2,*&21%.$*,(J2$"0%2/&*K$%S(*0'(*G,(/1'Y*@"&&%./*

75


76

G AIAN ECONOMICS

2,* 7'%/(&(OY* '.J(* 1'./B()* ./+0'%/B* P"/).-(/0.$* %/* 0(,-&* 2P * 0'(* -2/(+* &+&0(-R* l.,%2"&* 12-:$(-(/0.,+* 1",,(/1+* -2)($&* '.J(* 0,%()* 02* ,(&2$J(* 0'(* =(*3%(@ %340% :,2#$(-*2P *12-:2"/)*%/0(,(&0*0',2"B'*.*0%-(N,($.0()*P((*%/*2,)(,*02*S((:* '()?10)0$3"67% -2/(+*%/*1%,1"$.0%2/R*5'(+*:,2J()*0'(%,*:20(/0%.$*02*1,(.0(*(-:$2+-(/0*./)* ';660$'#0*%9(% &2$J(* &21%.$* :,2#$(-&* %/* 0'(* ?_=D&* %/* \"&0,%.* ./)* ;(,-./+* c* b"&0* #(P2,(* $(3%'4"6.0% 3%0$(,*B.%/()*:2U(,R*32U(J(,Y*0'(+*U(,(*)%&12/0%/"()*2/*g$(B.$]*B,2"/)&*.&* #$3060*3%G;3%;*0% 0'(+*0',(.0(/()*0'(*-2/2:2$+*2P *1(/0,.$*#./S&R*[0*%&Y*0'(,(P2,(Y*2P *:.,.-2"/0* "%'#6';1"3#($% %-:2,0./1(* 02* &0.,0* 12--"/%1.0%/B* U%0'* 1(/0,.$* #./S&Y* /2UY* %/* 2,)(,* 02* 1,(.0(*.*&"&0.%/.#$(*$(B.$*P,.-(U2,S*P2,*12-:$(-(/0.,+*1",,(/1+*&+&0(-&* #$'0$3#-0%(6% 2/*.*&1.$(*0'.0*12"/0&R*I0'(,U%&(Y*U(*.,(*'(.)%/B*P2,*0'(*.#+&&*+(0*.B.%/R* "%90);66".0% 5'%&*0%-(*0'(*2:0%2/&*&((-*02*#(*1,.&'*2,*U.,R* )0'4"$#*)% I/(* .))%0%2/.$* .::,2.1'* P2,* g0.-%/B]* 0'(* (12/2-+* 12-(&* P,2-* .* 3(%H00?%340% ^"))'%&0* :(,&:(10%J(R* [/* 12/0,.&0* 02* \).-* 6-%0']&* g%/J%&%#$(* './)]* c* ./)* ';660$'7%\($%340% 0'(*$%#(,.$*./)*/(2N$%#(,.$*.11(:0./1(*2P *0'(*:,2P%0*-20%J(*%/*.$$*%/)%J%)".$&Y* )(-0Xc%34;*%3407% ^,2)#(1S*K>DDEO*:2%/0&*2"0*0'.0*0'(*&0.,0%/B*:2%/0*2P *.*^"))'%&0*(12/2-+* "-(#9%"11%340%9#60% %&* (J(,+* %/)%J%)".$]&* P,(()2-* 02* ,(12B/%i(* U'.0* %&* 0,"(* P2,* (/'./1%/B* $%P(* '($*0U;0$'0*% ./)* 02* 1'./B(* %0&* #('.J%2,* .112,)%/B$+R* 5'"&Y* U(* 1./* 2J(,12-(* 0'(* 0',((* "**('#"309%2#34% g:2%&2/&]*0'.0*.,(*:.,0*2P *0'(*.11(:0()*0'(2,(0%1.$*./)*:,.10%1.$*#.&%&*2P *0'(* B$2#.$*-.,S(0*(12/2-+C*%B/2,./1(Y*B,(()*./)*.BB,(&&%2/R* #$3060*3P%

Complementary currencies and the use of demurrage 72-:$(-(/0.,+* 7",,(/1%(&* K77&O* -.+* #(* )(P%/()* .&* -(./&* 2P * :.+-(/0* U%0'*.*#"%$0N%/*0.,B(0R*5'(+*.,(*/20*-(./0*02*,(:$.1(*0'(*(H%&0%/B*/.0%2/.$*2,* %/0(,/.0%2/.$*1",,(/1%(&*#"0*02*12-:$(-(/0*0'(-R*9.%/$+*%/*&21%.$Y*1"$0",.$* ./)*(12$2B%1.$*.,(.&*%/*U'%1'*0'(*:,(&(/0*&+&0(-*)2(&*/20*U2,S*J(,+*U($$Y* /(U*$%f"%)%0+*1./*#(*1,(.0()*U%0'2"0*#",)(/%/B*0'(*0.H:.+(,*2,*B2J(,/-(/0&* U%0'*.))%0%2/.$*12&0&R*77&*1./*#(*&((/*.&*.*:2U(,P"$*022$*P2,*&0,(/B0'(/%/B* 0'(*(12/2-%1*J%.#%$%0+*2P *.*&:(1%P%1*&21%.$*&(102,*2,*B(2B,.:'%1.$$+*$%-%0()* ,(B%2/*K)(P%/()*'(,(*.&*./*.,(.*#(0U((/*0'(*$21.$*./)*0'(*/.0%2/.$OR*[/*-./+* %/&0./1(&Y* 0'(+* '.J(* :,2J(/* 0'(%,* :20(/0%.$* 02* &"::2,0* ./)* &0,(/B0'(/* 0'(* (12/2-+*c*(&:(1%.$$+*%/*(12/2-%1.$$+*)%PP%1"$0*:(,%2)&R*5'(*G",(.%*A%::"* 7.,(* 5%1S(0* %/* W.:./Y* P2,* %/&0./1(Y* '($:&* 02* :,2J%)(* 1.,(* P2,* -%$$%2/&* 2P * ($)(,$+* :(2:$(Y* #.&()* 2/* '2",&* 2P * &(,J%1(R* 5'(* T[@* T%,0&1'.P0&,%/B* %/* 6U%0i(,$./)* %&* .* :.,.$$($* 1",,(/1+* 02* 0'(* 6U%&&* G,./1* ./)* &0,(/B0'(/&* 0'(* (12/2-%1*J%.#%$%0+*2P *>Dr*2P *0'(*&-.$$*./)*-()%"-*&%i()*#"&%/(&&(&Y*U'%1'* %/*0",/*1,(.0(*2J(,*FDr*2P *.$$*b2#&R*\/)*0'(*6.#(,*K.*:,2:2&()*()"1.0%2/.$* J2"1'(,*&+&0(-*P2,*^,.i%$O*%&*)(&%B/()*02*&0,(/B0'(/*0'(*()"1.0%2/.$*&+&0(-R* 5'(*^,.i%$%./*g6.#(,]*)(-2/&0,.0(&*1$(.,$+*0'(*)%PP(,(/0*)(&%B/*P(.0",(&* 2P * 12-:$(-(/0.,+* 1",,(/1%(&* %/* 12-:.,%&2/* 02* 12/J(/0%2/.$* 1",,(/1%(&R* 5'.0*%&*0'(*,(.&2/*U'+*[*U./0*02*)(&1,%#(*%0*'(,(*%/*-2,(*)(0.%$R*[/*^,.i%$* MDr*2P *0'(*:2:"$.0%2/*%&*$(&&*0'./*?`*+(.,&*2P *.B(R*5'%&*1."&(&*./*(/2,-2"&* ()"1.0%2/.$*:,2#$(-R*T'(/*0'(*-2#%$(*:'2/(*%/)"&0,+*U.&*:,%J.0%i()Y*0'(* B2J(,/-(/0*$(J%()*.*?r*&",1'.,B(*P2,*()"1.0%2/*2/*.$$*-2#%$(*:'2/(*#%$$&R* 5'%&*,(&"$0()*%/*.*P"/)*2P *2/(*#%$$%2/*<6t*2,*0',((*#%$$%2/*@(.$&*P2,*()"1.0%2/*


FI NA N CI A L STA B I L I T Y: A C A S E FO R COM P L E MENTARY C URRE N C IE S

%/* >DDMR* ^(,/.,)* 4%(0.(,* :,2:2&()* 0'(* %/0,2)"10%2/* 2P * .* J2"1'(,* &+&0(-* 1.$$()*g6.#(,]*%/*2,)(,*02*%/1,(.&(*0'(*/"-#(,*2P *&0")(/0&*0'.0*12"$)*.PP2,)* .*12$$(B(*$(J($*()"1.0%2/R*5'(*J2"1'(,&*U2"$)*#(*B%J(/*02*&1'22$&*P2,*0'(* +2"/B(&0*K(RBR*0'(*&(J(/*+(.,N2$)O*:":%$&Y*2/*0'(*12/)%0%2/*0'.0*0'(+*U2"$)* 1'22&(*.*-(/02,*P,2-*./*2$)(,*1$.&&*02*&0,(/B0'(/*0'(%,*U(.S(,*&"#b(10&R*5'(* 6.#(,*U2"$)*0'(/*-2J(*02*0'(*2$)(,*&1'22$1'%$),(/Y*./)*&2*2/*"/0%$Y*.0*$.&0Y* &(/%2,&*2P *?E*+(.,&*KU'2*U./0*02*B2*02*"/%J(,&%0+O*U2"$)*"&(*0'(*6.#(,&*02* :.+*.*:.,0*2P *0'(%,*0"%0%2/R*T'%$(*0'(*J.$"(*2P *0'(*6.#(,*U2"$)*#(*0'(*&.-(* .&*0'(*@(.$Y*/2-%/.$$+Y*%0*U2"$)*2/$+*#(*,()((-.#$(*P2,*0"%0%2/*:.+-(/0&*P2,* '%B'(,*()"1.0%2/R*[/*.))%0%2/Y*%0*U2"$)*$2&(*>Dr*:(,*+(.,*.&*./*%/1(/0%J(*02* :.&&*%0*2/*c*"/$(&&*%0*'.)*,(.1'()*0'(*"/%J(,&%0%(&R*5'"&*K%/1$")%/B*.*,()"1()* 0"%0%2/*,.0(*P2,*0'2&(*&"#b(10&*U%0'*P,((*&:.1(&*%/*0'(*"/%J(,&%0%(&OY*0'(*6.#(,* &+&0(-*U2"$)*-"$0%:$+*#+*0(/*0%-(&*U'.0*.*)%,(10*.$$21.0%2/*2P *0'(*,(&2",1(&* P2,* ()"1.0%2/* U2"$)* 20'(,U%&(* .$$2U* ./)Y* 0'(,(#+Y* 1,(.0(* 0(/* 0%-(&* 0'(* .-2"/0*2P *()"1.0%2/*&(,J%1(&R*

Differences between complementary and traditional currencies 5'(* )%PP(,(/1(&* #(0U((/* 12-:$(-(/0.,+* ./)* 0,.)%0%2/.$* 1",,(/1%(&* .,(* -.,S()*%/)(()C* [/&0(.)* 2P * #(%/B* :,2P%0N2,%(/0()* 0'(+* .,(* "&(N2,%(/0()* c* 0'(%,* :,%-.,+* B2.$*%&*02*12//(10*"/)(,"0%$%i()*,(&2",1(&*U%0'*"/-(0*)(-./)&R*5'(+*.,(* 1$(.,$+*-.,S()*.&*/20*#(%/B*$(B.$*0(/)(,*c*0'"&*0'(%,*.11(:0./1(*%&*(/0%,($+* J2$"/0.,+R*5'(%,*$%-%0()*c*%/&0(.)*2P *B(/(,.$*c*.11(:0./1(*:,2J%)(&*.*g&(-%N :(,-(.#$(*-(-#,./(]*.,2"/)*0'(*P"/10%2/*K2,*0'(*,(B%2/O*P2,*U'%1'*0'(+*.,(* )(&%B/()k*0'(+*1.//20*#(*"&()*02*#"+*:,2)"10&*P,2-*.#,2.)*2,*02*&:(1"$.0(* 2/*0'(*%/0(,/.0%2/.$*P%/./1%.$*-.,S(0&R* 92&0*2P *0'(*12-:$(-(/0.,+*1",,(/1%(&*)2*/20*1'.,B(*%/0(,(&0*#"0*"&(*.* 1%,1"$.0%2/*%/1(/0%J(*2,*.*)(-",,.B(*-(1'./%&-*02*S((:*0'(*1",,(/1+*g2/* 0'(*-2J(]k*0'"&*0'(+*.J2%)*.$$*0'(*)%,(*12/&(f"(/1(&*.&&21%.0()*U%0'*%/0(,(&0R* 5'(+*1./*#(*(&0.#$%&'()*0',2"B'*.*0,./&:.,(/0*:,21(&&*./)Y*0'(,(P2,(Y*1./*#(* )(-21,.0%1.$$+*12/0,2$$()*#+*0'(*"&(,&R* \&*0'(+*.,(*.$U.+&*?DDr*12J(,()*#+*&(,J%1(&*2,*:,2)"10&Y*0'(+*.,(*/20* %/P$.0%/BR*5'(+*.,(*.*:,2J(/*-(./&*02*12"/0(,.10*(12/2-%1*#22-*./)*#"&0* 1+1$(&*%/*12/0,.&0*02*12/J(/0%2/.$*1",,(/1%(&Y*./)*0'"&*&"::2,0*0'(*:2$%1%(&* 2P *1(/0,.$*#./S&*./)*B2J(,/-(/0&*K602))(,Y*?__FOR*5'(+*1./*&02:*0'(*),.%/* 2P *P%/./1%.$*,(&2",1(&*P,2-*$2UNU.B(*12"/0,%(&Y*0'(,(#+*1.$$%/B*.*'.$0*02*0'(* ,(&"$0%/B*$2&&*2P *U(.$0'*./)*b2#*2::2,0"/%0%(&Y*./)*:,2-20%/B*12--"/%0+* %/&0(.)* 2P * )(&0,2+%/B* %0R* 5'(+* 1,(.0(* .* U%/NU%/* &%0".0%2/* P2,* (J(,+#2)+C* P,2-*./*(H:./&%2/*2P *()"1.0%2/.$*#(/(P%0&*02*&2$J%/B*0'(*:,2#$(-&*2P *0'(* %/1,(.&%/B*/"-#(,&*2P *($)(,$+k*P,2-*0'(*:,20(10%2/*2P *1"$0",.$*%)(/0%0+*02* -.,S(0%/B*,(B%2/.$$+*B,2U/*P22)&k*P,2-*./*(12$2B%1.$$+*&(/&%#$(*"&(*2P *0'(* &'2,0(&0*0,./&:2,0.0%2/*,2"0(&*02*(H(,1%&%/B*(0'%1.$*12/1(,/&*U'(/*"0%$%i%/B* /2/N,(/(U.#$(* ,(&2",1(&Y* :,2J%)%/B* 1$2&(,* $%/S&* #(0U((/* 12/&"-(,&* ./)* :,2)"1(,&* ./)* '($:%/B* 02* ,(N./%-.0(* $21.$* ./)* ,(B%2/.$* %)(/0%0+* ./)* )%J(,&%0+R*

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Regional complementary currencies

PPP)($03"67% *;*3"#$"G#1#37% 2#11%G0%0$4"$'09% G7%"%9#-06*#37% (@ %';660$'7% *7*30)*K%*(%34"3% );13#?10%"$9% )(60%9#-06*0% '4"$$01*%(@ % )($03"67%1#$H*% "$9%0S'4"$.0*% '"$%0)06.0P%

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FI NA N CI A L STA B I L I T Y: A C A S E FO R COM P L E MENTARY C URRE N C IE S

12"/0,%(&*.,2"/)*0'(*U2,$)OY*./)*&(12/)$+Y*0'(*(H:(,%(/1(&*2P *>>*%/%0%.0%J(&* %/*;(,-./+Y*U'%1'*'.J(*.$,(.)+*%&&"()*0'(%,*2U/*,(B%2/.$*12-:$(-(/0.,+* 1",,(/1+R*5'(*g62//(/61'(%/]*%&*)(&%B/()*02*(/'./1(*0'(*"&(*2P *,(/(U.#$(* (/(,B+* ./)* 1,(.0(* 0'(* #.1S%/B* P2,* .* 12-:$(-(/0.,+* ,(B%2/.$* 1",,(/1+* 0',2"B'* 0'(* gST'N'.,J(&0]* U'%1'* %&* B2%/B* 02* .::,(1%.0(* %/* J.$"(* .&* P2&&%$* P"($&*B(0*-2,(*(H:(/&%J(R*5'"&Y*0'(*%/'.#%0./0&*2P *0'(*,(B%2/*1./*.1f"%,(*.* &0.#$(Y*%/P$.0%2/N:,22P *./)*1,.&'N,(&%&0./0*1",,(/1+R*</$(&&*/(1(&&.,+*c*.&*%/* 0'(*1.&(*2P *.*1,.&'*2,*'+:(,%/P$.0%2/*2P *0'(*8",2*c*%0*U%$$*/20*#(*&"#b(10*02*.* P((*2,*)(-",,.B(Y*.&*0'(*%/%0%.02,&*#($%(J(*0'.0*0'(*$%-%0()*.11(:0./1(*%/*0'(* ,(B%2/*:,2J%)(&*(/2"B'*2P *./*%/1(/0%J(*02*"&(*%0*#(P2,(*&:(/)%/B*0'(*8",2R*

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Literature X.J%)* ^2+$(* p* 62/+* A./22,* KP2,0'12-%/BOC* 92/(+Y* T2,$)* G"0",(* 72"/1%$* c* ^,%(P%/BY* 42/)2/RR A.,$N3(%/i* ^,2)#(1S* KP2,0'12-%/BOC* ^(%0,|B(* i",* ;,"/)$(B"/B* (%/(,* #"))'%&0%&1'(/* }S2/2-%(Y*;,~#(/i($$R* 60(P./*^,"//'"#(,./)*p*3.,.$)*A$%-(/0.Y*/#0%2#6%2#63*'4"@30$%20690$*KG,./SP",0C*@()$%/(Y* >DD=OR 3($-"0*7,("0iY*E#0%_g%>663h)06%6;$9%;)*%!019*K9•/1'(/C*3(,#%BY*>DD`OR @%1'.,)*X2"0'U.%0(Y%B40%&'(1(.7%(@ %=($07*K520/(&C*;,((/*^22S&Y*?__FOR [,J%/B*G%&'(,Y*C3")?%C'6#?*KZ(U*h2,SC*\)($:'%Y*?_==OR 9.,B,%0*A(//()+Y%>$3060*3%"$9%>$@1"3#($M@600%=($07*K!'%$.)($'%.C*Z(U*621%(0+*!"#$%&'(,&Y*?__`OR 9.,B,%0*A(//()+*p*^(,/.,)*4%(0.(,Y*I0.#($"12"046;$.0$*K9•/1'(/Y*>DDMOR W2'/*9.+/.,)*A(+/(&Y**B40%!0$06"1%B40(67%(@ %&)?1(7)0$3K%>$3060*3%"$9%=($07*K42/)2/C*UUUR #/:"#$%&'%/BR12-Y*?_=aOR ^(,/.,)*4%(0.(,Y*B40%Q;3;60%(@ %=($07*K42/)2/C*7(/0",+Y*>DD?OR ^(,/.,)*4%(0.(,Y**5'(*5(,,.*5@7N59*T'%0(*!.:(,Y*UUUR0(,,.0,1R2,B*K>DDEOR ^(,/.,)*4%(0.(,*p*60(:'(/*^($B%/Y*W@ %F;)"$%/0"134%T%807($9%!6009%"$9%C'"6'#37*K^2"$)(,Y* >DDaOR W.-(&*@2#(,0&2/*p*W2&(:'*3"#(,Y*A60"3#$.%L02%=($07*KZ(U*812/2-%1&*G2"/).0%2/Y*>DDDOR W.-(&* 602))(,Y* g72,:2,.0(* #.,0(,* ./)* (12/2-%1* &0.#%$%&.0%2/]Y* >$306$"3#($"1% J(;6$"1% (@ % A());$#37%A;660$'7%I0*0"6'4Y*l2$*>Y*?__FR !,(&(/0()* .0* 0'(* 7'%/.N8",2:(* G2,"-Y* T2,S&'2:* =>Y* g5.&S&* ./)* @(&:2/&%#%$%0%(&* 2P * [/&0%0"0%2/&*2P *0'(*G%/./1%.$*6(102,]Y*!.,%&*./)*^,"&&($&Y*I102#(,*MNEY*>DDER


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

The Politics of Money Hazel Henderson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i.0%2/* c* .$$* P2$$2U* 0'(* -2/(+R* 3.::%$+Y* .$$* 0'%&* P21"&* 2/* -2/(+* %&* $(.)%/B* 02* 0'(* U%)(&:,(.)* .U.,(/(&&* 2P * U.+&* -2/(+* %&* )(&%B/()Y* 1,(.0()* ./)*-./%:"$.0()R*5'%&*:2$%0%1&*2P *-2/(+*%&*.0*$.&0*"/,.J($$%/B*1(/0",%(&*2P * -+&0%P%1.0%2/R 7%J%1* .10%2/* U%0'* $21.$* 1",,(/1%(&Y* #.,0(,Y* 12--"/%0+* 1,()%0* ./)* 0'(* -2,(*)"#%2"&*,.&'*2P *)%B%0.$*1+#(,-2/(+*.$$*,(J(.$*0'(*:2$%0%1&*2P *-2/(+R* 812/2-%1&*%&*/2U*U%)($+*&((/*.&*0'(*P."$0+*&2",1(N12)(*)((:*%/*&21%(0%(&]* '.,)*),%J(&{*,(:$%1.0%/B*"/&"&0.%/.#%$%0+C*#22-&Y*#"&0&Y*#"##$(&Y*,(1(&&%2/&Y* :2J(,0+Y*0,.)(*U.,&Y*:2$$"0%2/Y*)%&,":0%2/*2P *12--"/%0%(&Y*$2&&*2P *1"$0",.$* )%J(,&%0+* ./)* #%2N)%J(,&%0+R* 7%0%i(/&* .$$* 2J(,* 0'(* U2,$)* .,(* ,(b(10%/B* 0'%&* -.$P"/10%2/%/B*(12/2-%1*&2",1(N12)(*./)*%0&*2:(,.0%/B*&+&0(-&C*0'(*T2,$)* ^./SY* 0'(* [9GY* 0'(* T5I* ./)* %-:(,%2"&* 1(/0,.$* #./S&R* [0&* '.,)NU%,()* :,2B,.-Y*0'(*/2U*)(,%)()*gT.&'%/B02/*72/&(/&"&]*,(1%:(*P2,*'+:%/B*;Z!N B,2U0'Y*%&*1'.$$(/B()*#+*0'(*3"-./*X(J($2:-(/0*[/)(H*K3X[OY*812$2B%1.$* G220:,%/0*\/.$+&%&Y*0'(*4%J%/B*!$./(0*[/)(HY*0'(*7.$J(,0N3(/)(,&2/*e".$%0+* 2P *4%P(*[/)%1.02,&Y*0'(*;(/"%/(*!,2B,(&&*[/)(H*./)*^'"0./]&*;,2&&*Z.0%2/.$* 3.::%/(&&{*/20*02*-(/0%2/*&12,(&*2P *$21.$*1%0+*%/)%1(&*&"1'*.&*W.1S&2/J%$$(Y* G$2,%).]&* e".$%0+* [/)%1.02,&* P2,* !,2B,(&&Y* :%2/((,()* #+* 0'(* $.0(* 9.,%./* 7'.-#(,&*%/*?_F=R \&*U%0'*:2$%0%1&Y*.$$*,(.$*-2/(+*%&*$21.$Y*1,(.0()*#+*:(2:$(*02*P.1%$%0.0(* (H1'./B(*./)*0,./&.10%2/&Y*./)*%0*%&*#.&()*2/*0,"&0R*5'(*&02,+*2P *'2U*0'%&* "&(P"$*%/J(/0%2/Y*-2/(+Y*B,(U*%/02*.#&0,.10*/.0%2/.$*P%.0*1",,(/1%(&*#.1S()* 2/$+*#+*0'(*:,2-%&(&*2P *,"$(,&*./)*1(/0,.$*#./S(,&*%&*#(%/B*02$)*./(UR*T(* U%0/(&&* '2U* %/P2,-.0%2/* 0(1'/2$2B+* ./)* )(,(B"$.0%2/* 2P * #./S%/B* ./)* 81


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

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

Reforming the Financial Casino Ross Jackson

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

The Saber: A Complementary Currency for Learning Bernard Lietaer I/(*2P *0'(*P(U*1(,0.%/0%(&*U(*'.J(*.#2"0*2",*P"0",(*%&*0'.0*%0*U%$$*,(f"%,(*.* -.&&%J(*.-2"/0*2P *$(.,/%/BY*#+*b"&0*.#2"0*(J(,+#2)+Y*(J(,+U'(,(R*[/*.))%0%2/Y* 2J(,*0'(*:.&0*0',((*)(1.)(&*./*.J.$./1'(*2P *&1%(/0%P%1*).0.*'.&*#((/*:2",%/B* %/*U'%1'*,(J(.$*0'.0*$(.,/%/B*c*./)*(J(/*-2,(*%-:2,0./0$+Y*$(.,/%/B*,(0(/0%2/* c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`r*./)*?Dr*2P *U'.0*%&*#(%/B*0."B'0*U%$$*#(* ,(-(-#(,()R*\0*0'(*20'(,*(/)*2P *0'(*&:(10,"-*.*U'2::%/B*_Dr*,(0(/0%2/* ,.0(*.::$%(&*02*U'.0(J(,*2/(*0(.1'(&*2/(&($P *02*20'(,&d* e"(&0%2/C*7./*2/(*%-.B%/(*U'.0*U2"$)*#(12-(*:2&&%#$(*%P *U(*-./.B()* 02* ,(J(,&(* 2",* (/0,+* %/02* 0'(* $(.,/%/B* :+,.-%)* #+* )(&%B/%/B* ./* %/1(/0%J(* &+&0(-*0'.0*U2"$)*(/12",.B(*0'(*(-(,B(/1(*2P *1'.%/&*2P *g$(.,/%/B*0',2"B'* 0(.1'%/B]j*6"1'*.*&+&0(-*12"$)*#(*)(&%B/()*02*2:(,.0(*%/*:.,.$$($*U%0'*0'(* 2PP%1%.$* &1'22$%/BY* .&* .* &:(1%.$* S%/)* 2P * (H0,.1",,%1"$.,* %/0(,B(/(,.0%2/.$* B.-(Y*&2*0'.0*%0*)2(&/]0*'.J(*02*)(.$*U%0'*0(.1'(,]&*"/%2/&Y*2,*2,)%/.,+*&1'22$* :,21()",(&{*\$0'2"B'*0'%&*12/1(:0*U.&*%/%0%.$$+*)(&%B/()*P2,*^,.i%$Y*0'(,(* %&*/2*,(.&2/*02*#($%(J(*%0*U2"$)/]0*#(*.::$%1.#$(*($&(U'(,(R*

The Brazilian Saber T'(/* ^,.i%$* :,%J.0%i()* %0&* -2#%$(* 0($(:'2/(* %/)"&0,+Y* %0* %/0,2)"1()* .* ?r* &:(1%.$* 0.H* (.,-.,S()* P2,* '%B'(,* ()"1.0%2/.$* :",:2&(&R* ^+* >DDMY* 0'%&* 8)"1.0%2/*G"/)*'.)*B,2U/*02*-2,(*0'./*<R6R*t?*#%$$%2/R*5'(*12/J(/0%2/.$* &2$"0%2/*U2"$)*#(*02*12:+*0'(*g;[*^%$$]*.::,2.1'*"&()*%/*0'(*</%0()*60.0(&* .P0(,*T2,$)*T.,*[[Y*0',2"B'*U'%1'*B2J(,/-(/0*P"/)&*U(,(*"&()*)%,(10$+*P2,* 91


92

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G AIAN ECONOMICS

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T H E S A B E R : A COM P L E M E N TA RY C U R R E N C Y FOR LEARNIN G

S%)&* 2P * .$$* .B(&R* T'(/* U(* ,(P(,* 02* .* $(.,/%/B* -"$0%:$%(,* 2P * 0(/Y* U(* U(,(* 2/$+* ,(P(,,%/B* 02* 0'(* /.,,2U* P%/./1%.$* (PP(10C* t?* ^%$$%2/* &:(/0* 0',2"B'* 0'(* 6.#(,* &+&0(-* U2"$)* )($%J(,* .* 020.$* $(.,/%/B* 2P * ./* 2,)(,* 2P * -.B/%0")(* 2P * t?D*^%$$%2/*&:(/)%/B*2/*0'(*12/J(/0%2/.$*&1'2$.,&'%:*-2)($R*G",0'(,-2,(Y* P.102,%/B*%/*0'(*1'./B(*2P *0'(*$(.,/%/B*,(0(/0%2/*,.0(*P,2-*`N?Dr*K/2,-.$* ()"1.0%2/* :,21()",(O* 02* _Dr* K0(.1'%/B* 20'(,&OY* ./20'(,* 0(/P2$)* (PP(10* #(12-(&* .J.%$.#$(Y* #,%/B%/B* 0'(* 020.$* -"$0%:$%(,* 2P * g,(0.%/()* $(.,/%/B]* 02* 2/(*'"/),()d*[/*20'(,*U2,)&Y*&:(/)%/B*t?*^%$$%2/*0',2"B'*0'(*6.#(,*&+&0(-* 12"$)*#(*,2"B'$+*(&0%-.0()*02*:,2)"1(*0'(*&.-(*.-2"/0*2P *,(0.%/()*$(.,/%/B* (f"%J.$(/0*02*t?DD*^%$$%2/*&:(/0*0',2"B'*12/J(/0%2/.$*-(./&{ \&*0'%&*&+&0(-*)(J($2:&Y*20'(,*U.+&*2P *(.,/%/B*6.#(,&*12"$)*#(*%/0,2N )"1()R* G2,* (H.-:$(Y* U'+* /20* (,.)%1.0(* ./.$:'.#(0%&-* 2/* .* :$./(0.,+* $(J($*%/*2/(*)(1.)(j*7./*+2"*J%&".$%i(*./*.,-+*2P *(%B'0*+(.,*2$)&*:,2")$+* 0(.1'%/B*0'(%,*P,(&'$+*$(.,/()*,(.)%/B*./)*U,%0%/B*&S%$$&*02*&2-(2/(*($&(]&* B,./):.,(/0&j*T'+*/20*'.J(*+2"/B*:(2:$(*(.,/*6.#(,&*#+*'($:%/B*0'(*($)(,$+* 2,* './)%1.::()Y* (J(/* %/* 20'(,* U.+&* 0'./* 0(.1'%/BC* ,(.)%/B* 02* 0'(* #$%/)Y* '($:%/B*U%0'*&'2::%/Bj*4(.,/%/B*#(+2/)*&1'22$&*12"$)*#(12-(*.*J.&0*./)* ,%1'* %/0(,B(/(,.0%2/.$* B.-({* \$$* 0'%&* U2"$)* (/12",.B(* %/0(,B(/(,.0%2/.$* ,($.0%2/&'%:&*./)*P",0'(,*$(.,/%/BY*/20*02*-(/0%2/*1,(.0%/B*(H0,.*.%)*P2,*0'(* ($)(,$+* U%0'2"0* #",)(/%/B* B2J(,/-(/0.$* #")B(0&R* ;%J(/* 0'.0* .$$* 12"/0,%(&* .,(*(H:(10%/B*.*'%B'(,*:(,1(/0.B(*2P *($)(,$+*:(2:$(*02*0.S(*1.,(*2PY*U2"$)* %0*/20*-.S(*&(/&(*02*12//(10*)2-.%/&*2P *:,2#$(-&*c*()"1.0%2/*./)*($)(,$+* 1.,(*c*%/02*2/(*%/0(B,.0()*&+&0(-*&2$"0%2/j* “Saber” Complementary Currency System = Learning Multiplier

Phase 1

Saber allocation among schools

Phase 2

Help for elderly & handicapped paid in Saber

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

7 year-olds

10 year-olds

12 year-olds

15 year-olds

Payment of University Tuition

References ?R*

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93

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

A Tale of Two Ecovillages: Reviving the Health of Local Communities Jonathan Dawson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aD&* ./)* (.,$+* ?_ED&R* ^20'* '.)Y* ./)* 12/0%/"(* 02* '()?10SK%1('"117% '.J(Y* .* &0,2/B* &:%,%0".$* P21"&* 02* 0'(%,* .10%J%0%(&R* ^20'* $21.0()* 0'(-&($J(&* G"*09%*('#"1% %/* (12/2-%1.$$+* -.,B%/.$%&()* .,(.&C* X.-./'",* %/* 0'(* .$:%/(* P220'%$$&* 2P * 0'($()7P !%()-2/0k*G%/)'2,/*%/*/2,0'(,/*6120$./)R*G%/.$$+Y*#20'*'.J(*(H:(,%(/1()* &"#&0./0%.$*B,2U0'*%/*&%i(*2J(,*0'(*)(1.)(&C*02).+Y*X.-./'",*%&*.*P()(,.0%2/* 94


A TA L E OF T WO ECOV I L L AG E S: R E V I V I NG TH E HEALTH OF LOCAL COMMUNITIES

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96

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A TA L E OF T WO ECOV I L L AG E S: R E V I V I NG TH E HEALTH OF LOCAL COMMUNITIES

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

Beyond Equality: Work, Money, and Equality in the Economic Fellowship of the Camphill Communities Jan Martin Bang Work []-* '.J%/B* #,(.SP.&0Y* .0* 2",* 0.#$(* U%0'* .#2"0* .* )2i(/* 20'(,* :(2:$(R* G2",* .,(*-(/0.$$+*'./)%1.::()*gJ%$$.B(,&]R*5'(*,(&0*2P *"&*0'%/S*U(],(*/2,-.$*12N U2,S(,&Y*U'.0(J(,*0'.0*-(./&d*T(*0.$S*.#2"0*U'(,(*U(*.,(*B2%/B*02*U2,S* 02).+R*8J(,+2/(*U2,S&Y*0'.0]&*2/(*2P *0'(*B,2"/)*,"$(&*%/*2",*&-.$$*J%$$.B(*2P * .#2"0*P2,0+*:(2:$(R*[0]&*&1'22$*'2$%).+*0%-(Y*2",*0U2*2$)(&0*S%)&*.,(*U2,S%/B* 2/* 0'(* P.,-Y* ./)* 2",* +2"/B(&0* )."B'0(,* %&* %/* 0'(* J(B(0.#$(* B.,)(/&R* 5'(* J%$$.B(* #.S(,* $%J(&* %/* 2",* '2"&(Y* '(* %&* .* +2"/B* J2$"/0((,* 12NU2,S(,* P,2-* [&,.($Y*./)*0',((*2P *2",*J%$$.B(,&*.$&2*U2,S*0'(,(R*T'.0*.,(*0'(+*)2%/B*02).+j

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101


1 02

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

The Second Foundation at The Farm Albert Bates [P *+2"*b"&0*$./)()*P,2-*9.,&*./)*#(B./*(H:$2,%/B*0'(*&21%.$*./)*:2$%0%1.$* &+&0(-&* 2P * 0'(* U2,$)* %/* 0'(* $.0(* >D0'* 7(/0",+Y* "/)2"#0()$+* +2"* U2"$)* #(* .&02/%&'()* .0* -./+* 2P * 0'(* %$$2B%1.$* ./)* /2/&(/&%1.$* 0'%/B&* +2"])* P%/)R* 5'(,(*.,(*(/2"B'*/.0",.$*./)*'"-./*,(&2",1(&*02*P(()Y*1$20'(*./)*&'($0(,* 0'(*(/0%,(*:2:"$.0%2/*%/*.*/2/)(&0,"10%J(Y*(12$2B%1.$$+N&(/&%0%J(*P.&'%2/Y*#"0* 0'(*J.&0*-.b2,%0+*2P *0'(*U2,$)]&*:2:"$.0%2/*$%J(&*%/*)(&:(,.0(*:2J(,0+Y*U'%$(* 12/&"-%/B*/.0",.$*,(&2",1(&*.0*"/&"&0.%/.#$(*,.0(&*./)*$.+%/B*U.&0(*02*0'(* #.&%1*:$./(0.,+*&+&0(-&*0'.0*&"::2,0*.$$*$%P(R 5'(*6(12/)*G2"/).0%2/*%&*./*.00(-:0*02*(H:$2,(*-2,(*'.,-2/%2"&*./)* (f"%0.#$(* &21%.$* ./)* (12/2-%1* &+&0(-&R* [0* &0.,0&* #+* (&0.#$%&'%/B* .* B2$)(/* -(./*#(0U((/*0'2&(*0'%/B&*0'.0*.,(*#(&0*'./)$()*12$$(10%J($+*c*0',2"B'*B,2":* .B,((-(/0*2,*&21%.$*12/0,.10*c*./)*0'2&(*0'.0*.,(*#(&0*'./)$()*%/)%J%)".$$+*c* .0*.*P.-%$+*$(J($R*5'(*6(12/)*G2"/).0%2/*%&*.*-2)($*(12/2-%1*&+&0(-R*T(* 1./Y*#(%/B*&-.$$Y*:$.+*.,2"/)*U%0'*0'(*P2,-Y*0U(.S*%0*02*&"%0*2",*/(()&Y*b.ii* %0*":*2,*02/(*%0*)2U/R*T(*.,(*1,(.0%/B*.*:,2020+:(*#.&()*2/*U'2$(*&+&0(-&Y* P.%,* :$.+Y* 1.,(* ./)* 12-:.&&%2/Y* ./)* (12$2B%1.$* &"&0.%/.#%$%0+R* T'(0'(,* %0* &"11(()&*2,*P%ii$(&*%&*(/0%,($+*":*02*"&R

How it started 5'(* 6(12/)* G2"/).0%2/* :,.10%1(&* .* 12--"/%0+* 2P * B22)&R* ^(1."&(* 2",* -(-#(,&*'.J(*)(1%)()*02*'2$)*.$$*0'%/B&*%/*12--2/Y*%/)%J%)".$&*'.J(*/2* $(B.$*1$.%-*02*0'(*12$$(10%J(*'2$)%/B&*2P *0'(*B,2":R*[/&0(.)Y*-(-#(,&*&(,J(*.&* 0,"&0((&*2P *:,2:(,0+*0'(+*-./.B(*P2,*0'(*#(/(P%0*2P *(J(,+2/(Y*/20*(H1$")%/B* 0'(-&($J(&R* 62-(* :(2:$(* P%/)* 0'%&* 12/1(:0* %/0%-%).0%/BY* ./0%f".0()Y* 2,* .$%(/R*X%)/]0*12--"/%&-*P.$$*U%0'*0'(*^(,$%/*T.$$*%/*?_F_j 5'(* 6(12/)* G2"/).0%2/* #(B./* U%0'* .* B,2":* 2P * :(2:$(* U'2* '.)* $%J()* "/)(,*./*(H:(,%-(/0.$*12--"/.$*&+&0(-*P2,*?=*+(.,&*./)*0'(/*.#./)2/()* %0R* \-2/B* 0'(* P(.0",(&* 2P * 5'(* G.,-]&* (.,$+* &+&0(-* U.&* 0'(* J2U* 2P * :2JN (,0+Y*U'%1'*U.&*./*%-:2,0./0*:.,0*2P *0'(*,($%B%2"&*P.#,%1*2P *0'(*B,2":R*\P0(,* (12/2-%1*)(N12$$(10%J%i.0%2/*.0*5'(*G.,-*%/*?_F=Y*0'(,(*U(,(*.*/"-#(,*2P * 103


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k* 0'(* 022$N&'.,%/B* P2,* '2-(* 12/N &0,"10%2/*./)*B.,)(/%/Bk*./)*-2&0*2P *.$$Y*0'(*0%B'0NS/%0*B,2":*:,21(&&R*5'%&* &'.,()*&(/&(*2P */(()*02*,(0",/*02*.*-(.&",(*2P *12--"/.$*%/0(,N)(:(/)(/1(* U.&* 0'(* -.b2,* %-:(0"&* P2,* 0'(* P2,-.0%2/* 2P * .* /(U* (12/2-%1* (H:(,%-(/0R* 5'(*1'.$$(/B(*U.&*02*)(&%B/*.*P2,-.0*0'.0*-%/%-%i()*0'(*),.U#.1S&*2P *#20'* 0'(*12--"/.$*&21%(0+*(12/2-+*./)*0'(*:,%J.0(*P.-%$+*U(.$0'*&+&0(-*U'%$(* ),.U%/B*":2/*0'(*.)J./0.B(&*2P *#20'R*52).+*U(*1.$$*2",*J2U*0'(*gJ2U*2P * 12--"/%0+]Y*U'%1'*,(P$(10&*2",*:,%/1%:.$*B2.$C*/20*02*)2*U%0'2"0Y*#"0*%/&0(.)* 02*$%J(*%/*'.,-2/+*U%0'*(.1'*20'(,Y*./)*U%0'%/*0'(*/.0",.$*U2,$)R

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

The Permaculture of Pensions: Making Savings work for People and Planet Jonathan Dawson [* 1./* 0'%/S* 2P * /2* .,(.* %/* U'%1'* 0'(* 2,0'2)2H* U%&)2-* .&* (H:2"/)()* #+* 02).+]&*:2$%0%1.$*1$.&&(&*%&*.0*B,(.0(,*2))&*U%0'*0'(*#('.J%2",*2P *-2&0*:(2:$(* [*S/2U*.&*%/*0'(*.,(.*2P *:(/&%2/&R*\&*0'(*:,2:2,0%2/*2P *0'2&(*%/*%/12-(N (.,/%/B* U2,S* P.$$&* 02* .$$N0%-(* $2U&Y* 0'(* /(()* P2,* B,(.0(,* &.J%/B&* 02* &((* "&* 0',2"B'* 2$)* .B(* %&* 0.S(/* .&* .H%2-.0%1R* 5'(* 2/$+* f"(&0%2/* 2/* 0'(* :2$%0%1.$* .B(/).*%&*'2U*%&*0'%&*02*#(*.1'%(J()R*[0*%&*/2U*.*$(B.$*2#$%B.0%2/*%/*&2-(* 8",2:(./* 12"/0,%(&* P2,* U2,S%/B* 1%0%i(/&* 02* &(0* .&%)(* &.J%/B&* P2,* 2$)* .B(R* \1,2&&* 0'(* %/)"&0,%.$%&()* U2,$)Y* :(/&%2/* :,2J%&%2/* )(P%/(&* 2/(* 2P * 0'(* 1,%0%1.$*#.00$(*$%/(&*#(0U((/*0'(*&0.0(*2/*0'(*2/(*&%)(*./)*0,.)(*"/%2/&*./)* 1%J%$*&21%(0+*B,2":&*2/*0'(*20'(,R*h(0Y*U%0'%/*0'.0*&(B-(/0*2P *&21%(0+*0'.0*[* %/'.#%0Y* -./+* '.J(* /(J(,* '.)* :(/&%2/&* ./)* .* B22)* /"-#(,* 2P * 0'2&(* 0'.0* ="$7K%#@ %$(3% '.J(* K-+&($P * %/1$")()O* .,(* 1",,(/0$+* &((S%/B* 02* 1.&'* 0'(-* %/R* 62Y* U'.0* %&* )(*3K%(@ %340% '.::(/%/Bj*32U*02*(H:$.%/*0'%&*)%J(,B(/1(*2P *:(,&:(10%J(&*./)*#('.J%2",&j .((9*%"$9% 9+* 2U/* (H:$2,.0%2/* %/02* 0'(* 0,"(* /.0",(* 2P * 0'(* g&(1",%0+]* U(* &((S* %/* *06-#'0*%34"3% 2$)*.B(*./)*U'(0'(,*:(/&%2/&*0,"$+*:,2J%)(*0'(*#(&0*U.+*02*)($%J(,*%0*#(B./* ?0(?10%$009%#$% &(J(,.$*+(.,&*.B2R*[/*f"%1S*2,)(,Y*[*1.-(*02*0',((*&0,%S%/B*)%&12J(,%(&R*5'(* 340#6%(19%".0% P%,&0*U.&*0'.0*U'.0(J(,*0+:(*2P *&(1",%0+*%0*%&*U(*.,(*$22S%/B*P2,Y*%0*%&*/20*02*#(* 2(;19%G0*3%G0% P2"/)*%/*0'(*&021S*-.,S(0*U'(,(*0'(*#"$S*K2J(,*EDrO*2P *<A*:(/&%2/*P"/)&* ?6(-#909%@(6%$(3% .,(*%/J(&0()R*9%$$%2/&*2P *:(2:$(*&.U*0'(*J.$"(*2P *0'(%,*:,%J.0(*%/J(&0-(/0&* G7%2"7%(@ %'"*4% (,2)()*.&*0'(*J.$"(*2P *0'(*&021S*-.,S(0*P($$*#+*M=r*%/*0'(*0',((*+(.,&*":*02* >DD=C*<A*:(/&%2/*P"/)&*P($$*%/*J.$"(*#+*q>`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


T H E P E R M AC U LT U R E O F P E N SI O N S: MAK I N G S AVIN GS WORK FOR PEOPLE AN D PLANET

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1 08

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

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1 10

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Our story

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MODULE 3

Right Livelihood <$0%-.0($+Y*U2,S*.0*0'(*&0,"10",.$*$(J($*.$2/(*c*%)(/0%P+%/B*./)*%/0,2)"1%/B* /(U*&+&0(-&Y*-2)($&*./)*0(1'/2$2B%(&*c*%&*-2&0*"/$%S($+*02*#(*(/2"B'*%/* %0&($P * 02* 0",/* 2",* &21%(0%(&* ./)* (12/2-%(&* 02U.,)&* &"&0.%/.#%$%0+R* T'.0* %&* /(()()*%/*.))%0%2/*%&*.*0,./&P2,-.0%2/*%/*2",*1"$0",.$*J.$"(&*c*&:(1%P%1.$$+Y* %/*'2U*U(*)(P%/(*0'(*/.0",(*2P *0,"(*U(.$0'R* 52).+Y* T(&0(,/Y* 12/&"-(,%&0* 1"$0",(* %&* &:,(.)%/B* B$2#.$$+R* ^+* (H0(,N /.$%&%/B*,(.$*&21%.$*./)*(12$2B%1.$*12&0&Y*%/)"&0,%.$*:,2)"10%2/*&+&0(-&*.,(* .#$(*02*:,2)"1(*-./+*:,2)"10&*J(,+*1'(.:$+*c*&"#&%)%&()*#+*:(2:$(*./)*0'(* :$./(0R*[/*:.,.$$($Y*0'(*B$2#.$*-()%.*./)*.)J(,0%&%/B*%/)"&0,%(&*:,2-20(*0'(* -(&&.B(*0'.0*&0.0"&*./)*'.::%/(&&*.,(*02*#(*'.)*0',2"B'*12/&"-:0%2/R* 5'%&* 92)"$(* (H:$2,(&* '2U* U(* .&* %/)%J%)".$&* 1./* 1'22&(* -(./%/BP"$* U2,S* %/* 0'(* U2,$)* ./)* #,%/B* 2",* #('.J%2",* .&* 1%0%i(/&Y* 12/&"-(,&* ./)* %/J(&02,&*%/02*B,(.0(,*.$%B/-(/0*U%0'*2",*12,(*J.$"(&R

Contents Buddhist Economics Simplicity: A Cool Lifestyle for a Hot Planet Sarvodaya means â&#x20AC;&#x2DC;Everybody Wakes Upâ&#x20AC;&#x2122; Designing your Local Economy Rules for a Local Economy In Defence of Pleasure: The Slow Food Movement Tallying National Happiness Economics of Happiness

113


This is a classic text in which E.F. Schumacher sets out the basis for a moral economics by comparing the Buddhist and Western materialist approaches to the subject. It puts people and the planet back at the heart of the matter, with â&#x20AC;&#x2DC;economicsâ&#x20AC;&#x2122; as a means towards greater health and happiness rather than as an end in itself.

Buddhist Economics E. F. Schumacher

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1 14

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1 16

G AIAN ECONOMICS

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119

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1 20

G AIAN ECONOMICS

Endnotes ?R* >R* =R* MR* `R* aR* ER* FR* _R*

*B40%L02%8;6)"*K812/2-%1*./)*621%.$*^2.,)Y*;2J(,/-(/0*2P *0'(*</%2/*^",-.Y*?_`MOR [#%)R [#%) *\).-*6-%0'Y*/0"134%(@ %L"3#($**KIHP2,)C*IHP2,)*!.:(,#.1S&Y*>DDFOR *\/./).* AR* 722-.,.&U.-+Y* D63% "$9% C2"90*4#* KZ(U* X($'%C* 9"/&'%,.-* 9./&'.,$.$* !"#$%&'(,&Y*>DD?OR WR*7R*A"-.,.::.Y**&'($()7%(@ %506)"$0$'0*K@.bB'.0Y*l.,./.&%Y*[/)%.C*6.,J.*6(J.*6./B'* !,.S.&'./0Y*M0'*()/RY*?_`FOR *W2'/*A(//(0'*;.$#,.%0'Y*B40%D@@1;0$3%C('#037*K!(/B"%/*^22S&*40)*?_a>OR *@%1'.,)* ^R* ;,(BBY* D% 54#1(*(?47% (@ % >$9#"$% &'($()#'% E0-01(?)0$3* K\'-().#.)Y* [/)%.C* Z.J.b%J./*!"#$%&'%/B*32"&(Y*?_`FOR *3.,,%&2/*^,2U/Y*B40%A4"110$.0%(@ %="$X*%Q;3;60*KZ*h2,SC*5'(*l%S%/B*!,(&&Y*?_`MOR*

G,2-*I0*;6.0$'0*-.B.i%/(Y*W./".,+NG(#,".,+Y*?_aFk*l2$R*[Y*Z2*??R


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

Simplicity: A Cool Lifestyle for a Hot Planet Duane Elgin 6%-:$%1%0+*%&*.*122$*$%P(&0+$(*P2,*.*'20*:$./(0R*6%-:$%1%0+*%&*.*$%B'0(,*$%P(&0+$(* 0'.0* P%0&* ($(B./0$+* ./)* &"&0.%/.#$+* %/02* 0'(* ,(.$* U2,$)* 2P * 0'(* 0U(/0+NP%,&0* 1(/0",+R*6%-:$%1%0+*%&*.*&-.,0*U.+*02*$%J(*0'.0*(/'./1(&*2",*2J(,.$$*'(.$0'* ./)*'.::%/(&&R*6%-:$%1%0+*#$2&&2-&*%/*12--"/%0+*./)*12//(10&*"&*02*0'(* U2,$)*U%0'*.*&(/&(*2P *#($2/B%/B*./)*12--2/*:",:2&(R*6%-:$%1%0+*(/'./1(&* :(,&2/.$* P,(()2-* ./)* 1'2%1(R* 6%-:$%1%0+* -(./&Y* .&* ;./)'%* &.%)Y* g-+* $%P(* %&* -+* -(&&.B(]R* 6%-:$%1%0+* /",0",(&* 2",* &2"$R* 6%-:$%1%0+* %/J%0(&* $%J%/B* U%0'* #.$./1(* c* %//(,* ./)* 2"0(,Y* U2,S* ./)* P.-%$+Y* P.-%$+* ./)* 12--"/%0+R* 6%-:$%1%0+*S((:&*2",*(+(&*2/*0'(*:,%i(*2P *U'.0*-.00(,&*-2&0*%/*2",*$%J(&*c* 0'(*f".$%0+*2P *2",*,($.0%2/&'%:&*U%0'*P.-%$+Y*P,%(/)&Y*12--"/%0+Y*/.0",(*./)* 12&-2&R* 6%-:$%1%0+* +%($)&* $.&0%/B* &.0%&P.10%2/&* 0'.0* -2,(* 0'./* 12-:(/&.0(* P2,*0'(*P$((0%/B*:$(.&",(&*2P *12/&"-(,%&-R*6%-:$%1%0+*$(./&*02U.,)*.*-2,(* ,($.H()*,($.0%2/&'%:*02*$%P(R*6%-:$%1%0+*1($(#,.0(&*0'(*#(."0+*./)*%/0($$%B(/1(* 2P * /.0",(]&* )(&%B/&R* 6%-:$%1%0+* ,(J(,(&* 0'(* U%&)2-* 2P * &%$(/1(* 0'.0* g&:(.S&* U%0'* "/1(.&%/B* ($2f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f"%(0* ./)*0'(*&"#0$(*&2"/)&*2P */.0",(R*6.1,%P%1(*%&*/.0",(*'%))(/*#('%/)*.*&0,(.-* 2P *#%$$#2.,)*.)J(,0%&(-(/0&R*6.1,%P%1(*%&*0'(*&-($$*2P *0'(*1%0+*&0,2/B(,*0'./* 0'(*&-($$*2P *0'(*8.,0'R*6.1,%P%1(*%&*/2*$2/B(,*&((%/B*0'(*'(.J(/&*%/*0'(*/%B'0* &S+* #(1."&(* 2P * $%B'0* :2$$"0%2/R* 6.1,%P%1(* %&* 1.,,+%/B* -2,(* 0'./* >DD* 02H%1* 1'(-%1.$&*%/*2",*#2)%(&*U%0'*12/&(f"(/1(&*0'.0*U%$$*1.&1.)(*P2,*B(/(,.0%2/&* .'(.)R*6.1,%P%1(*%&*.*),.-.0%1.$$+*)%-%/%&'()*./)*%-:2J(,%&'()*,./B(*2P *$%P(Y* #20'*:$./(0&*./)*./%-.$&R*6.1,%P%1(*%&*#(%/B*1"0*2PP *P,2-*/.0",(]&*U%$)/(&&*

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121


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G AIAN ECONOMICS

&"#1"$0",(*'.&*B,2U/*P,2-*.*-%/%&1"$(*-2J(-(/0*%/*0'(*?_aD&*02*.*,(&:(1N 0()*:.,0*2P *0'(*-.%/&0,(.-*1"$0",(*%/*0'(*(.,$+*>DDD&R*;$2&&+*-.B.i%/(&*/2U* &($$*0'(*&%-:$(*$%P(*P,2-*0'(*/(U&&0./)&*.1,2&&*0'(*<R6R*U'%$(*%0*'.&*#(12-(* .*:2:"$.,*0'(-(*2/*-.b2,*0($(J%&%2/*0.$S*&'2U&R*92,(*&%B/%P%1./0$+Y*&",J(+&* .,2"/)* 0'(* U2,$)* &'2U* 0'.0* -.b2,%0%(&* 2P * :(2:$(* &"::2,0* (/J%,2/-(/0.$* :,20(10%2/*./)*'"-./*)(J($2:-(/0Y*0U2*S(+*0'(-(&*.112-:./+%/B*$%P(U.+&* 2P *&%-:$%1%0+R*^.&()*":2/*0',((*)(1.)(&*2P *,(&(.,1'Y*[*(&0%-.0(*0'.0*.&*2P * >DDEY*.0*$(.&0*?Dr*2P *0'(*<R6R*.)"$0*:2:"$.0%2/*2,*,2"B'$+*>D*-%$$%2/*:(2:$(* .,(*12/&1%2"&$+*1,.P0%/B*$%J(&*2P *($(B./0*&%-:$%1%0+R * 5'(&(* 1'./B(&* .,(* /20* 12/P%/()* 02* 0'(* <R6R* ./)* 8",2:(R* \,2"/)* 0'(* U2,$)Y* :(2:$(* .,(* .U.S(/%/B* 02* 0'(* &./%0+* 2P * &%-:$%1%0+* .&* .* :.0'* 02* &"&0.%/.#%$%0+R* ;$2#.$* &",J(+&* &'2U* 0'(,(* %&* J%,0".$$+* U2,$)NU%)(* 1%0%i(/* .U.,(/(&&*0'.0*2",*:$./(0*%&*%/)(()*%/*:22,*'(.$0'*./)*B,(.0*:"#$%1*12/1(,/* P2,*%0&*P"0",(*U($$N#(%/BR*6",J(+&*'.J(*.$&2*P2"/)*0'.0*%0*-.S(&*$%00$(*)%PP(,(/1(* U'(0'(,*:(2:$(*$%J(*%/*:22,(,*./)*U(.$0'%(,*/.0%2/&*c*0'(+*(H:,(&&()*/(.,$+* (f".$*12/1(,/*P2,*0'(*'(.$0'*2P *0'(*:$./(0R*\&*B$2#.$*12/1(,/*&$2U$+*0,./&N $.0(&*%/02*B$2#.$*.10%2/Y*U(*1./*$22S*P2,*$(.)(,&'%:*P,2-*:%2/((,&*2P *.*-2,(* :,2-%&%/B*P"0",(*U'2*.,(*1,.P0%/B*$%J(&*2P *($(B./0*./)*1,(.0%J(*&%-:$%1%0+R* * T'.0* )2(&* .* $%P(* 2P * J2$"/0.,+* g&%-:$%1%0+]* $22S* $%S(j* G2,* -2,(* 0'./* 0'%,0+*+(.,&*[]J(*(H:$2,()*0'(*g&%-:$(*$%P(]*./)*[]J(*P2"/)*&"1'*.*)%J(,&%0+*2P * (H:,(&&%2/&*(-(,B%/B*%/*0'(*U2,$)*0'.0*0'(*-2&0*.11",.0(*U.+*2P *)(&1,%#%/B* 0'%&*.::,2.1'*02*$%J%/B*-.+*#(*U%0'*0'(*-(0.:'2,*2P *.*B.,)(/R

A garden of simplicity 52*:2,0,.+*0'(*,%1'/(&&*2P *&%-:$%1%0+Y*'(,(*.,(*&(J(/*)%PP(,(/0*P$2U(,%/B&*2P * (H:,(&&%2/*0'.0*[*&((*B,2U%/B*%/*0'(*gB.,)(/*2P *&%-:$%1%0+]R*\$0'2"B'*0'(,(* %&* 2J(,$.:* .-2/B* 0'(-Y* (.1'* (H:,(&&%2/* 2P * &%-:$%1%0+* &((-&* &"PP%1%(/0$+* )%&0%/10*02*U.,,./0*.*&(:.,.0(*1.0(B2,+R ?R* *;910$22&#&%!-+./0+1+23*c*6%-:$%1%0+*-(./&*0.S%/B*1'.,B(*2P *$%J(&*0'.0* .,(*022*#"&+Y*022*&0,(&&()Y*./)*022*P,.B-(/0()R*6%-:$%1%0+*-(./&*1"00%/B* #.1S*2/*1$"00(,Y*12-:$(H%0+Y*./)*0,%J%.$*)%&0,.10%2/&Y*#20'*-.0(,%.$*./)* /2/N-.0(,%.$Y*./)*P21"&%/B*2/*0'(*(&&(/0%.$&*c*U'.0(J(,*0'2&(*-.+*#(*P2,* (.1'*2P *2",*"/%f"(*$%J(&R*\&*5'2,(."*&.%)Y*gI",*$%P(*%&*P,%00(,()*.U.+*#+* )(0.%$R*R*R*6%-:$%P+Y*&%-:$%P+]R*I,Y*.&*!$.02*U,20(Y*g[/*2,)(,*02*&((S*2/(]&* 2U/*)%,(10%2/Y*2/(*-"&0*&%-:$%P+*0'(*-(1'./%1&*2P *2,)%/.,+Y*(J(,+).+* $%P(]R >R* *81505)+170!-+./0+1+23*c*6%-:$%1%0+*-(./&*02*1'22&(*U.+&*2P *$%J%/B*0'.0* 02"1'*0'(*8.,0'*-2,(*$%B'0$+*./)*0'.0*,()"1(*2",*(12$2B%1.$*%-:.10*2/*0'(* U(#*2P *$%P(R*5'%&*$%P(N:.0'*,(-(-#(,&*2",*)((:*,220&*U%0'*0'(*8.,0'Y*.%,Y* ./)*U.0(,R*[0*(/12",.B(&*"&*02*12//(10*U%0'*/.0",(Y*0'(*&(.&2/&Y*./)*0'(* 12&-2&R*\*/.0",.$*&%-:$%1%0+*P(($&*.*)((:*,(J(,(/1(*P2,*0'(*12--"/%0+* 2P *$%P(*2/*8.,0'*./)*.11(:0&*0'.0*0'(*/2/N'"-./*,(.$-&*2P *:$./0&*./)* ./%-.$&*'.J(*0'(%,*)%B/%0+*./)*,%B'0&*.&*U($$*0'(*'"-./R


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P$(H%#%$%0+Y* .).:0.#%$%0+Y* ./)* ,(&%$%(/1(R* ^(1."&(* 0'(,(* .,(* &2* -./+* :.0'U.+&*2P *B,(.0*,($(J./1(*%/02*0'(*B.,)(/*2P *&%-:$%1%0+Y*0'%&*1"$0",.$* -2J(-(/0*.::(.,&*02*'.J(*(/2,-2"&*:20(/0%.$*02*B,2UR *\$0'2"B'*'"-./*&21%(0%(&*'.J(*12/P,2/0()*-.b2,*'",)$(&*0',2"B'2"0* '%&02,+Y*0'(*1'.$$(/B(&*2P *2",*(,.*.,(*"/%f"(R*Z(J(,*#(P2,(*'.&*0'(*'"-./* P.-%$+*#((/*2/*0'(*J(,B(*2P *)(J.&0.0%/B*0'(*8.,0']&*#%2&:'(,(*./)*1,%::$%/B* %0&*(12$2B%1.$*P2"/).0%2/&*P2,*12"/0$(&&*B(/(,.0%2/&*02*12-(R*Z(J(,*#(P2,(* '.J(*&2*-./+*:(2:$(*#((/*1.$$()*":2/*02*-.S(*&"1'*&U((:%/B*1'./B(&*%/* &2*$%00$(*0%-(R*Z(J(,*#(P2,(*'.&*0'(*(/0%,(*'"-./*P.-%$+*#((/*(/0,"&0()*U%0'* 0'(*0.&S*2P *U2,S%/B*02B(0'(,*02*%-.B%/(*./)*12/&1%2"&$+*#"%$)*.*&"&0.%/.#$(* ./)*12-:.&&%2/.0(*P"0",(R*[/*.*&'%P0*&%-%$.,*02*2/(*0'.0*/.0",(*-.S(&*c*P2,* (H.-:$(Y* %/* 0'(* b"-:* P,2-* &%-:$(* .02-&* 02* 12-:$(H* -2$(1"$(&Y* 2,* P,2-* 12-:$(H*-2$(1"$(&*02*$%J%/B*1($$&*c*'"-./%0+*%&*#(%/B*1'.$$(/B()*02*-.S(*.* b"-:*02*.*/(U*S%/)*2P *12--"/%0+*./)*$%P(N2,B./%i.0%2/R*\*,2#"&0*B.,)(/* 2P *(H:,(&&%2/&*U%$$*(-(,B(*P,2-*0'(*12-#%/.0%2/*2P *.*1"$0",(*2P *12/&1%2"&* &%-:$%1%0+*U%0'*/(U*P2,-&*2P *12--"/%0+*.).:0()*02*0'(*"/%f"(*1"$0",(*./)* (12$2B+*2P *)%PP(,(/0*B(2B,.:'%1*,(B%2/&R*\&*U(*.U.S(/*02*0'%&*/(U*U2,$)Y* %/0(B,.0%/B* $%P(NU.+&* 2P * &%-:$%1%0+* ./)* /(U* P2,-&* 2P * 12--"/%0+* U%$$* #(* .0*0'(*P2"/).0%2/*2P *#"%$)%/B*.*&0(U.,)&'%:*&21%(0+*./)*:,2-%&%/B*P"0",(R* 6(()&*2P *1,(.0%J(*&%-:$%1%0+Y*B,2U%/B*f"%(0$+*P2,*0'(*:.&0*B(/(,.0%2/Y*.,(*/2U* #$2&&2-%/B*%/02*.*B.,)(/*2P *(H:,(&&%2/&R*9.+*0'(*B.,)(/*P$2",%&'d


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

Sarvodaya means â&#x20AC;&#x2DC;Everybody Wakes Upâ&#x20AC;&#x2122; Joanna Macy [*,(0",/*P,2-*6,%*4./S.*U'(,(*[*&.U*'2U*.*12"/0,+Y*)(J.&0.0()*#+*1%J%$*U.,Y* 1./*:,21(()*02*,("/%0(*./)*,(#"%$)R*6.,J2).+.*c*0'(*/.-(*-(./&*g(J(,+#2)+* U.S(&*":]*c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`0'Y*.*-.--20'*:(.1(*-()%0.0%2/*S%1S%/B*2PP *0'(%,* gJ%$$.B(N02NJ%$$.B(Y* '(.,0N02N'(.,0]* $%/SN":* :,2B,.-R* [* ,(0",/()* U%0'* 0'(&(* $(&&2/&C

1. Affirm and nourish the spiritual roots of action ^+*-%)).+*2/*9.,1'*?`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a`YDDD*$%J(&Y*U,(1S()*0'(*(12/2-+Y*./)*0,."-.0%i()*.* B(/(,.0%2/*2P *6,%*4./S./&R 5'%&*U.&*!(.1(*6.-.)'%*X.+Y*2,B./%i()*#+*6.,J2).+.*%/*&"::2,0*2P *0'(* 1(.&(P%,(*,(1(/0$+*/(B20%.0()*U%0'*Z2,U(B%./*'($:*#(0U((/*0'(*6%/'.$(&(N %)(/0%P%()*B2J(,/-(/0*./)*0'(*&(1(&&%2/%&0*4558*2,*5.-%$*5%B(,&R*IJ(,*0'(* $.&0*+(.,*./)*.*'.$PY*X,R*\R5R*\,%+.,.0/(Y*6.,J2).+.]&*P2"/)(,Y*'.)*12/J(/()* :"#$%1*:(.1(*-()%0.0%2/&*02*1'./B(*0'(*g:&+1'2&:'(,(]R*5'(&(*B.0'(,%/B&*$(0* 127


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2,)%/.,+*:(2:$(*.0*0'(*B,.&&,220&*$(J($*)(-2/&0,.0(*./)*)((:(/*0'(%,*)(&%,(* 02* (/)* 0'(* U.,R* Z2UY* )(&:%0(* 12"/&($* P,2-* -2,(* 1."0%2"&* -%/)&Y* '(* '.)* ,(.1'()*P2,*&2-(0'%/B*'"B(C*.*-()%0.0%2/*02*%/1$")(*.*'.$P *.*-%$$%2/*:(2:$(R* \/)*)(&:%0(*.*B,(/.)(*.00.1S*2/*0'(*\,%+.,.0/(*'2-(Y*,%B'0*#(P2,(*0'(*(J(/0* ./)*b"&0*2"0&%)(*-+*#(),22-Y*0'(*(J(/0*U(/0*P2,U.,)R*[/*U'.0*-%B'0*U($$*#(* 0'(*$.,B(&0*-()%0.0%2/*P2,*:(.1(*%/*0'(*'%&02,+*2P *0'(*U2,$)Y*a`DYDDD*:(2:$(* 022S*:.,0R 6%00%/B* 2/* 0'(* B,.&&* .&* P.,* .&* 0'(* (+(* 12"$)* &((Y* 0'(+* -.)(* 0'(* #%BB(&0* &%$(/1(* [* (J(,* '(.,)R* \P0(,* :,.+(,&* P,2-* ^"))'%&0Y* 3%/)"* ./)* 9"&$%-* 1$(,%1&Y*./)*%/*0'(*%/0(,J.$&*#(0U((/*X,R*\,%+.,.0/(]&*U2,)&Y*B"%)%/B*"&*%/* -%/)P"$/(&&* 2P * #,(.0'Y* %/* $2J%/B* S%/)/(&&* ./)* P%,-* ,(&2$J(* P2,* :(.1(Y* 0'(* &%$(/1(* )((:(/()R* [* 0'2"B'0C* 0'%&* %&* 0'(* &2"/)* 2P * #2-#&* ./)* $./)-%/(&* /20*(H:$2)%/BY*2P *,21S(0&*/20*$."/1'()*./)*-.1'%/(*B"/&*$.%)*.&%)(R*[0*%&* :2&&%#$(Y*P2,*"&*.$$R

2. Have practical actions people can undertake together

C"6-(9"7"X*% ?0"'0%?1"$% #$'1;90*% .6"**6((3*% 90-01(?)0$3% *36"30.#0*%@(6% 340%967%R($0*K% 340%)(*3% 0'($()#'"117% 4"69M?60**09% "60"*%(@ %C6#% ,"$H"P

5'.0*).+Y*2PP *02*0'(*&%)(*#+*0'(*./1%(/0*#2)'%*0,((Y*.*1(,(-2/+*%/."B",.0()* 6.,J2).+.]&*4%/SN<:*:,2B,.-R*\*0'2"&./)*J%$$.B(&*%/*0'(*-2,(*)(J.&0.0()* 5.-%$* .,(.&* .,(* :.%,()* U%0'* .* 0'2"&./)* %/* 0'(* 6%/'.$(&(* .,(.&R* 5'(* $.00(,* U%$$*#,%/B*-.0(,%.$&*./)*&S%$$()*./)*"/&S%$$()*$.#2",Y*&2*0'.0*#20'*:.,0%(&*1./* U2,S*02B(0'(,*02*,(#"%$)*'2-(&*./)*&1'22$&Y*U($$&*./)*02%$(0&*./)*:$.1(&*2P * U2,&'%:*)(&0,2+()*%/*0'(*P%B'0%/BR*[*'(.,)*2P *.*J%$$.B(*%/*0'(*62"0'Y*0'.0Y*b"&0* 2/* '(.,%/B* 2P * 0'%&* :,2B,.-Y* %--()%.0($+* $2.)()* 0U2* $2,,%(&* U%0'* ,22P%/B* -.0(,%.$&*02*0.S(*/2,0'R ******5'(*&.-(*).+Y*02*&+-#2$%i(*0'%&*:.,0/(,&'%:Y*.*J%$$.B(*P,2-*(.1'*&%)(*'.)* #((/*&($(10()Y*./)*.P0(,*0'(*0(-:$(*#($$*U.&*,"/B*c*.0*0'(*:,(1%&(*-2-(/0* #($$&*U(,(*,"/B*0'.0*).+*.1,2&&*6,%*4./S.*c*+2"/B*:(2:$(*P,2-*(.1'*2P *0'(&(* 0U2*J%$$.B(&*1.-(*P2,U.,)R*5'(+*#2,(*,2"/)*0,.+&*2P *&:(1%.$Y*P(&0%J(*P22)* 0'(+* '.)* :,(:.,()Y* ./)* 0'(+* P()* (.1'* 20'(,R* 5'(* :$.0(&* U(,(* 0'(/* :.&&()* .-2/B* 0'(* ,(&0* 2P * "&* B.0'(,()* 0'(,(R* 8J(/* %P * 0'(* 1(.&(P%,(* %&* &.#20.B()Y* [*U./0*02*,(-(-#(,*0'.0*0.&0(*2P *&U((0*,%1(*./)*1212/"0R*[0*02$)*-(*0'.0*0'%&* %&*U'.0*U(*,(.$$+*U./0Y*-2&0*2P *.$$*c*02*&02:*0'(*P%B'0%/B*./)*P(()*(.1'*20'(,R

3. To build enduring peace, restore the land 6.,J2).+.]&* :(.1(* :$./* %/1$")(&* B,.&&,220&* )(J($2:-(/0* &0,.0(B%(&* P2,* 0'(* ),+*i2/(&Y*0'(*-2&0*(12/2-%1.$$+*'.,)N:,(&&()*.,(.&*2P *6,%*4./S.R*[0*P(.0",(&* $21.$$+*B(/(,.0()*(/(,B+*P,2-*#%2-.&&*.&*U($$*.&*&"&0.%/.#$(*%,,%B.0%2/Y*&2%$* ,(/(U.$Y*./)*0'(*12--"/%0+N12/0,2$$()*-%1,21,()%0*&1'(-(&*0'(*92J(-(/0* '.&*:%2/((,()*%/*0'(*$.&0*)(1.)(R 5'(* .%-* 2P * 0'(* 92J(-(/0Y* .&* (J(,Y* %&* .* g/2* :2J(,0+Y* /2* .PP$"(/1(]* &21%(0+*02*,()"1(*0'(*)%&:.,%0+*#(0U((/*,%1'*./)*:22,*#,2"B'0*.#2"0*#+*$.0(* 1.:%0.$%&-*./)*12,:2,.0(*B$2#.$%i.0%2/R*5'(*:,%2,%0+*:$.1()*2/*1.,(*P2,*0'(* $./)*,(-%/)&*-(*2P *6.,J2).+.]&*$%&0*2P *^.&%1*3"-./*Z(()&Y*0'(*J(,+*P%,&0*2P * U'%1'*%&*g.*&.P(*./)*#(."0%P"$*(/J%,2/-(/0]R


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Hildur Jackson, the primus motor of Ecovillage Design Education, and co-founder of Gaia Trust, Denmark and GEN, provides an historical contextualization for the ecovillage and engaged spirituality movements and describes the importance of strong communities in the rebuilding and designing of the â&#x20AC;&#x2DC;love economyâ&#x20AC;&#x2122;.

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

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Local currencies in ecovillages 9./+* 12--"/%0%(&* '.J(* %/0,2)"1()* .* $21.$* 1",,(/1+* 02* -.S(* (H1'./B(o #.,0(,*(.&%(,R*[P *+2"*b2%/*0'(*P22)*1$"#*2P *12",&(*+2"*:.+R*62*-2/(+*-.+* #(*%/J2$J()R*^"0*%0*%&*2/$+*.0*12&0*:,%1(R*[/*X(/-.,S*+2"*0+:%1.$$+*:.+*+2",* 12--"/%0+*.#2"0*>Dr*2P *U'.0*0'(*&.-(*-(.$*U2"$)*12&0*.0*.*,(&0.",./0R*

Designing for sustainable abundance X(&%B/%/B* +2",* $21.$* (12/2-+* ./)* )(1%)%/B* 2/* )(1%&%2/* &0,"10",(&* ./)* 12/P$%10* ,(&2$"0%2/* :,21()",(&* %&* ./* %-:2,0./0* 0.&SR* [0* -.+* /20* #(* J%&%#$(* %/*0'(*&.-(*U.+*.&*'2"&(&*./)*:'+&%1.$*&0,"10",(&*.,(Y*./)*P2,*0'.0*,(.&2/* U(*1.$$*%0*0'(*%//(,*)(&%B/*.&*2::2&()*02*0'(*2"0(,*)(&%B/R*^"0*%0*%&*b"&0*.&* %-:2,0./0R*T'.0*%/0(,.10%2/&*)2*+2"*U./0*2"0&%)(*0'(*$2J(*(12/2-+j*T'.0* &'2"$)* #(* 0.S(/* 1.,(* 2P * #+* $21.$* 1",,(/1%(&* ./)* U'(,(* )2(&* 0'(* P2,-.$* (12/2-+* &0.,0j* X%&1"&&%/B* 0'(&(* %&&"(&* -.+* '($:* +2"* )(&%B/* 0'(* &+&0(-* +2"*,(.$$+*U./0*#"0*0'%/B&*-.+*.$&2*'.J(*02*)(J($2:*2J(,*0%-(*./)*0',2"B'* (H:(,%-(/0R* 52* -.S(* %0* J%&%#$(* ./)* .112"/0.#$(* U%$$* '($:* +2"* ,(.$%i(* 0'.0* +2"*1./*'.J(*&%-:$(*$%J%/B*.0*0'(*&.-(*0%-(*.&*&"&0.%/.#$(*.#"/)./1(R

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

Rules for a Local Economy Wendell Berry 6"::2&%/B*0'.0*0'(*-(-#(,&*2P *.*$21.$*12--"/%0+*U./0()*0'(%,*12--"/%0+* 02*12'(,(Y*02*P$2",%&'Y*./)*02*$.&0Y*0'(/*0'(+*U2"$)*P2$$2U*.*P(U*,"$(&C ?R* \$U.+&*.&S*2P *./+*:,2:2&()*1'./B(*2,*%//2J.0%2/C*T'.0*U%$$*0'%&*)2* 02*2",*12--"/%0+j*32U*U%$$*0'%&*.PP(10*2",*12--2/*U(.$0'j >R* \$U.+&*%/1$")(*$21.$*/.0",(*c*0'(*$./)Y*0'(*U.0(,Y*0'(*.%,Y*0'(*/.0%J(* 1,(.0",(&*c*U%0'%/*0'(*-(-#(,&'%:*2P *0'(*12--"/%0+R =R* \$U.+&*.&S*'2U*$21.$*/(()&*-%B'0*#(*&"::$%()*P,2-*$21.$*&2",1(&Y* %/1$")%/B*0'(*-"0".$*'($:*2P */(%B'#2",&R MR* \$U.+&*&"::$+*$21.$*/(()&*P%,&0R*K\/)*2/$+*0'(/*0'%/S*2P *(H:2,0%/B* 0'(%,*:,2)"10&Y*P%,&0*02*/(.,#+*1%0%(&Y*./)*0'(/*02*20'(,&RO `R* 5'(* 12--"/%0+* -"&0* "/)(,&0./)* 0'(* "$0%-.0(* "/&2"/)/(&&* 2P * 0'(* %/)"&0,%.$* )210,%/(* 2P * g$.#2",* &.J%/B]* %P * 0'.0* %-:$%(&* :22,* U2,SY* "/(-:$2+-(/0Y*2,*./+*S%/)*2P *:2$$"0%2/*2,*12/0.-%/.0%2/R aR* [P * %0* %&* /20* 02* #(* -(,($+* .* 12$2/+* 2P * 0'(* /.0%2/.$* 2,* 0'(* B$2#.$* (12/2-+Y*0'(*12--"/%0+*-"&0*)(J($2:*.::,2:,%.0($+*&1.$()*J.$"(N .))%/B*%/)"&0,%(&*P2,*$21.$*:,2)"10&R ER* [0*-"&0*.$&2*)(J($2:*&-.$$N&1.$(*%/)"&0,%(&*./)*#"&%/(&&(&*02*&"::2,0* 0'(*$21.$*P.,-*2,*P2,(&0*(12/2-+R FR* [0*-"&0*&0,%J(*02*:,2)"1(*.&*-"1'*2P *%0&*2U/*(/(,B+*.&*:2&&%#$(R _R* [0* -"&0* &0,%J(* 02* %/1,(.&(* (.,/%/B&* K%/* U'.0(J(,* P2,-O* U%0'%/* 0'(* 12--"/%0+Y*./)*)(1,(.&(*(H:(/)%0",(&*2"0&%)(*0'(*12--"/%0+R ?DR* 92/(+* :.%)* %/02* 0'(* $21.$* (12/2-+* &'2"$)* 1%,1"$.0(* U%0'%/* 0'(* 12--"/%0+*P2,*.&*$2/B*.&*:2&&%#$(*#(P2,(*%0*%&*:.%)*2"0R ??R* [P *%0*%&*02*$.&0Y*.*12--"/%0+*-"&0*#(*.#$(*02*.PP2,)*02*%/J(&0*%/*%0&($PC*%0* -"&0*-.%/0.%/*%0&*:,2:(,0%(&Y*S((:*%0&($P *1$(./*KU%0'2"0*)%,0+%/B*&2-(* 20'(,*:$.1(OY*1.,(*P2,*%0&*2$)*:(2:$(Y*0(.1'*%0&*1'%$),(/R 1 36


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

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?>R* 5'(*2$)*./)*0'(*+2"/B*-"&0*0.S(*1.,(*2P *2/(*./20'(,R*5'(*+2"/B*-"&0* $(.,/*P,2-*0'(*2$)Y*/20*/(1(&&.,%$+*./)*/20*.$U.+&*%/*&1'22$R*5'(,(* -"&0* #(* /2* %/&0%0"0%2/.$%&()* g1'%$)* 1.,(]* ./)* g'2-(&* P2,* 0'(* .B()]R* 5'(*12--"/%0+*S/2U&*./)*,(-(-#(,&*%0&($P *#+*0'(*.&&21%.0%2/*2P * 2$)*./)*+2"/BR ?=R* 72&0&*/2U*12/J(/0%2/.$$+*'%))(/*2,*g(H0(,/.$%&()]*-"&0*#(*.112"/0()* D12"7*%#$'1;90% P2,R* T'(/(J(,* :2&&%#$(* 0'(+* -"&0* #(* )(#%0()* .B.%/&0* -2/(0.,+* 1('"1%$"3;60% %/12-(R T%340%1"$9K% ?MR* 72--"/%0+* -(-#(,&* -"&0* $22S* %/02* 0'(* :2&&%#$(* "&(&* 2P * $21.$* 340%2"306K%340% 1",,(/1+Y* 12--"/%0+NP"/)()* $2./* :,2B,.--(&Y* &+&0(-&* 2P * #.,0(,Y* "#6K%340%$"3#-0% ./)*0'(*$%S(R '60"3;60*%T%

?`R* 5'(+*&'2"$)*.$U.+&*#(*.U.,(*2P *0'(*(12/2-%1*J.$"(*2P */(%B'#2",$%/(&&* 2#34#$%340% c*.&*'($:Y*%/&",./1(Y*./)*&2*2/R*5'(+*-"&0*,(.$%&(*0'.0*%/*2",*0%-(*0'(* )0)G06*4#?%(@ % 12&0&* 2P * $%J%/B* .,(* B,(.0$+* %/1,(.&()* #+* 0'(* $2&&* 2P * /(%B'#2",'22)Y* 340%'());$#37P $(.J%/B*:(2:$(*02*P.1(*0'(%,*1.$.-%0%(&*.$2/(R ?aR* \*,",.$*12--"/%0+*&'2"$)*.$U.+&*#(*.1f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


The Slow Food movement is a celebration of the rich diversity in our food cultures worldwide and of the key role that small producers play in maintaining them. Here, Aldra Robinson describes the movement and expresses her â&#x20AC;&#x2DC;gratitude for the gifts of a healthy planet and a healthy people, strong communities and the pleasure of delicious foodâ&#x20AC;&#x2122;.

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141


Amidst concern in many corners that Gross Domestic Product (GDP) is a flawed measure of human and ecological wellbeing, a number of other more rounded and nuanced wellbeing indicators have emerged in recent years. Here, an editorial from The Japan Times takes a look at one of these â&#x20AC;&#x201C; Gross National Happiness.

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

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

Economics of Happiness Helena Norberg-Hodge IJ(,*0'%,0+*+(.,&*.B2Y*[*U.01'()*.&*.*1"$0",(*0'.0*'.)*#((/*&(.$()*2PP *P,2-* 0'(*,(&0*2P *0'(*U2,$)*U.&*&"))(/$+*0',2U/*2:(/*02*(12/2-%1*)(J($2:-(/0R* T%0/(&&%/B*0'(*%-:.10*2P *0'(*-2)(,/*U2,$)*2/*./*./1%(/0*1"$0",(*B.J(*-(* %/&%B'0&*%/02*'2U*(12/2-%1*B$2#.$%&.0%2/*1,(.0(&*P(($%/B&*2P *%/.)(f".1+*./)* %/P(,%2,%0+Y*:.,0%1"$.,$+*%/*0'(*+2"/BY*./)*'2U*0'2&(*:&+1'2$2B%1.$*:,(&&",(&* .,(* '($:%/B* 02* &:,(.)* 0'(* B$2#.$* 12/&"-(,* 1"$0",(R* 6%/1(* 0'.0* 0%-(* [* '.J(* #((/* :,2-20%/B* 0'(* ,(#"%$)%/B* 2P * 12--"/%0+* ./)* $21.$* (12/2-%(&* .&* 0'(* P2"/).0%2/*2P *./*g812/2-%1&*2P *3.::%/(&&]R* *T'(/*[*P%,&0*.,,%J()*%/*4.).S'*2,*g4%00$(*5%#(0]Y*.*,(B%2/*'%B'*2/*0'(* 5%#(0./*:$.0(."Y*%0*U.&*&0%$$*$.,B($+*"/.PP(10()*#+*(%0'(,*12$2/%.$%&-*2,*0'(* B$2#.$* (12/2-+R* G2,* :2$%0%1.$* ,(.&2/&Y* 0'(* ,(B%2/* '.)* #((/* %&2$.0()* P2,* -./+*1(/0",%(&Y*#20'*B(2B,.:'%1.$$+*./)*1"$0",.$$+R*X",%/B*&(J(,.$*+(.,&*2P * $%J%/B* .-2/B&0* 0'(* 4.).S'%&Y* [* P2"/)* 0'(-* 02* #(* 0'(* -2&0* 12/0(/0()* ./)* '.::+*:(2:$(*[*'.)*(J(,*(/12"/0(,()R*5'(%,*&(/&(*2P *&($PNU2,0'*U.&*)((:* ./)* &2$%)k* &-%$(&* ./)* $."B'0(,* U(,(* 0'(%,* 12/&0./0* 12-:./%2/&R* 5'(/* %/* ?_E`Y*0'(*[/)%./*B2J(,/-(/0*.#,":0$+*2:(/()*4.).S'*02*%-:2,0()*P22)*./)* I()"$3#'#*09% #)?60**#($*%(@ % 12/&"-(,*B22)&Y*02*02",%&-*./)*0'(*B$2#.$*-()%.Y*02*T(&0(,/*()"1.0%2/*./)* 20'(,* 0,.::%/B&* 2P * 0'(* g)(J($2:-(/0]* :,21(&&R* @2-./0%1%&()* %-:,(&&%2/&* 340%/0*3%.10"$09% 2P *0'(*T(&0*B$(./()*P,2-*-()%.Y*.)J(,0%&%/B*./)*P$((0%/B*(/12"/0(,&*U%0'* @6()%)09#"K% 02",%&0&* '.)* ./* %--()%.0(* ./)* :,2P2"/)* %-:.10* 2/* 0'(* 4.).S'%&R* 5'(* "9-063#*#$.% &./%0%&()*./)*B$.-2,%&()*%-.B(&*2P *0'(*",#./*12/&"-(,*1"$0",(*1,(.0()*0'(* "$9%@1003#$.% %$$"&%2/*0'.0*:(2:$(*2"0&%)(*4.).S'*(/b2+()*%/P%/%0(*U(.$0'*./)*$(%&",(R*^+* 0$'(;$306*%2#34% 12/0,.&0Y*U2,S%/B*%/*0'(*P%($)&*./)*:,2J%)%/B*P2,*2/(]&*2U/*/(()&*&((-()* 3(;6#*3*%4"9%"$% #.1SU.,)*./)*:,%-%0%J(R*6"))(/$+Y*(J(,+0'%/B*P,2-*0'(%,*P22)*./)*1$20'%/B* #))09#"30%"$9% 02*0'(%,*'2"&(&*./)*$./B".B(*&((-()*%/P(,%2,R*5'(*+2"/B*U(,(*:.,0%1"$.,$+* ?6(@(;$9%#)?"'3% .PP(10()Y*f"%1S$+*&"11"-#%/B*02*.*&(/&(*2P *%/&(1",%0+*./)*&($PN,(b(10%2/R*5'(* "&(*2P *.*)./B(,2"&*&S%/N$%B'0(/%/B*1,(.-*1.$$()*gG.%,*./)*42J($+]*#(1.-(* ($%340%,"9"H4#*P U%)(&:,(.)Y*&+-#2$%&%/B*0'(*/(U$+N1,(.0()*/(()*02*%-%0.0(*0'(*)%&0./0*,2$(* -2)($&*c*U(&0(,/Y*",#./Y*#$2/)(*c*:,2J%)()*#+*0'(*-()%.R* * IJ(,* 0'(* :.&0* 0',((* )(1.)(&Y* [* '.J(* &0")%()* 0'%&* :,21(&&* %/* /"-(,2"&* 1"$0",(&*.,2"/)*0'(*U2,$)*./)*)%&12J(,()*0'.0*U(*.,(*.$$*J%10%-&*2P *0'(&(* 1 44


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1 46

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147


MODULE 4

Local Economies 9./+* B22)&* ./)* &(,J%1(&* 0'.0* U2"$)* (/,%1'* 2",* 12--"/%0%(&* ./)* 2",* (12&+&0(-&*U(*1./*:,2J%)(*P2,*2",&($J(&*0',2"B'*&21%.$*(/0(,:,%&(&R*5'(%,* )%&0%/10%J(*P(.0",(*%&*0'.0*0'(%,*:,%-.,+*P"/10%2/*%&*02*)($%J(,*&21%.$*./)o2,* (/J%,2/-(/0.$*&(,J%1(&*,.0'(,*0'./*02*-.S(*.*:,2P%0*c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c*./)* %/12-(N&'.,%/BR

Contents The Specialization Trap Fifty Million Farmers Why You Should Think Local First Reclaiming our Future: Reclaiming our Food Profits of Place Short Tails: The Coming Small-Mart Revolution Economics of Solidarity: Good Practice from within the Ecovillage Family The Economy of Auroville Will Earthaven Become a â&#x20AC;&#x2DC;Magical Appalachian Machu Picchuâ&#x20AC;&#x2122;? Creating and Managing an Ethical Business: Permanent Publications Powerdown and Permaculture: At the Cusp of Transition

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

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153


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

Fifty Million Farmers Richard Heinberg

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159


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169


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

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Every year, millions of small farms and businesses are killed off in the march of globalisation. Helena Norberg â&#x20AC;&#x201C; Hodge of ISEC explains the root causes of this insidious process, the negative results affecting us all and what we can do to turn it around. The local food movement is a key element of this renewal of food and farming. It is one of the most successful grassroots examples of localisation in action, sweeping the world and gaining momentum with each passing day.

Reclaiming Our Future: Reclaiming Our Food Helena Norberg-Hodge !.,%&* %/* 0'(* ?_ED&* U.&* .* 1%0+* P"$$* 2P * 1'.,.10(,* ./)* $%P(R* 8.1'* f".,0(,* '.)* %0&* 2U/* 12$2",P"$* -.,S(0Y* &($$%/B* U2/)(,P"$* P,"%0&Y* .$$* S%/)&* 2P * J(B(0.#$(&Y* -(.0&Y*&":(,#*1'((&(&*./)*U%/(R*\$$*2P *0'.0*)%J(,&%0+*2,%B%/.0()*.0*/2*B,(.0* )%&0./1(C*-2&0*2P *%0*1.-(*P,2-*)%PP(,(/0*,(B%2/&*2P *G,./1(Y*%P */20*P,2-*0'(* %--()%.0(*&",,2"/)%/B&*2P *!.,%&R*52).+*%0*1./*#(*)%PP%1"$0*02*P%/)*B.,$%1*%/* !.,%&*0'.0*'.&*/20*0,.J($$()*P,2-*7'%/.R*[/*0'(*&":(,-.,S(0&Y*B,.:(&*P,2-* 7'%$(*./)*U%/(*P,2-*7.$%P2,/%.*.,(*%/1,(.&%/B$+*12--2/:$.1(R*5'(*)%J(,&%0+* 2P * G,(/1'* P22)&* %&* %/* )(1$%/(Y* ./)* 0'2&(* 0'.0* .,(* .J.%$.#$(* .,(* #(12-%/B* -2,(*./)*-2,(*12&0$+R [/*0'(*$%00$(*J%$$.B(&*2P *62"0'(,/*\/).$"1%.*%/*0'(*?_FD&Y*.$-2&0*.$$*0'(* P22)*%/*0'(*&'2:&*1.-(*P,2-*0'(*J%$$.B(&*0'(-&($J(&*2,*0'(*%--()%.0(*,(B%2/C* B2.0]&* 1'((&(&Y* 2$%J(&* ./)* 2$%J(* 2%$Y* B,.:(&Y* P,(&'* ./)* ),%()* P%B&Y* U%/(* ./)* -./+*)%PP(,(/0*S%/)&*2P *-(.0R*52).+*+2"*U%$$*P%/)*.$-2&0*/20'%/B*0'.0*'.&* #((/*:,2)"1()*$21.$$+R*5'(*2$%J(&*-.+*'.J(*#((/*B,2U/*%/*0'(*&",,2"/)%/B* ,(B%2/Y*#"0*0'(+*'.J(*0,.J($$()*02*0'(*-(0,2:2$%&*02*#(*:.1S.B()*%/*:$.&0%1* ./)* 0'(/* &(/0* #.1S* .B.%/R* l%,0".$$+* (J(,+0'%/B* &2$)* %&* J.1""-N&(.$()* %/* $.+(,&*2P *:$.&0%1R*8J(/*1'((&(*,%/)&*.,(*/2U*-.)(*2P *:$.&0%1R [/*$%/(*U%0'*0'(&(*0,(/)&Y*%/*?___*^,%0.%/*(H:2,0()*???*-%$$%2/*$%0,(&*2P * -%$S*./)*ME*-%$$%2/*S%$2B,.-&*2P *#"00(,R*6%-"$0./(2"&$+Y*0'(+*%-:2,0()*?E=* -%$$%2/*$%0,(&*2P *-%$S*./)*M_*-%$$%2/*S%$2B,.-&*2P *#"00(,R*\::$(&*.,(*P$2U/* ?MYDDD*-%$(&*P,2-*Z(U*y(.$./)*./)*B,((/*#(./&*P$2U/*MYDDD*-%$(&*P,2-* A(/+.R*T(*-%B'0*U2/)(,*'2U*0'(&(*1./*:2&&%#$+*12-:(0(*U%0'*$21.$*.::$(&* ./)* #(./&* c* &",($+* P22)* :,2)"1()* $21.$$+* &'2"$)* #(* 1'(.:(,j* ^"0* %0* %&/]0R* [/&0(.)Y*B(/(,.$$+*&:(.S%/BY*P,(&'*$21.$*P22)*%&*J.&0$+*-2,(*(H:(/&%J(*0'./* P22)*P,2-*P.,.U.+R*5'(*-.%/*,(.&2/*P2,*0'%&*%&*B2J(,/-(/0*%/J(&0-(/0&*./)* &"#&%)%(&R ;2J(,/-(/0&Y*"&%/B*0.H:.+(,]&*-2/(+Y*P"/)*0'(*-202,U.+&Y*'%B'N&:(()* ,.%$* $%/S&Y* 0"//($&Y* #,%)B(&* ./)* 12--"/%1.0%2/&* &.0($$%0(&* 0'.0* -.S(* 0'(* &":(,-.,S(0&]*B$2#.$*0,.)(*:2&&%#$(R*5'%&*-2/(+*.$&2*&"#&%)%&(&*0'(*.J%.0%2/* 175


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Re-localising food: it’s already happening

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Josh Harkinson supports his local coffee shop in Houston, Texas,which, unlike Starbucks, also serves tequila. His work has appeared in magazines such as E, San Francisco, and Harperâ&#x20AC;&#x2122;s, and he is a staff writer for the Houston Press.

Profits of Place Josh Harkinson

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

Short Tails: The Coming Small-Mart Revolution Michael H. Shuman \1,2&&* 0'(* :$./(0* 0'2"&./)&* 2P * 12--"/%0%(&* .,(* ,(&:2/)%/B* 02* 0'(* 1'.$N $(/B(&* 2P * B$2#.$%i.0%2/* #+* $21.$%i%/B* 0'(%,* (12/2-%(&R* 5'(+* .,(* #"+%/B* $21.$Y*%/J(&0%/B*$21.$Y*'%,%/B*$21.$Y*,($+%/B*2/*$21.$*,(&2",1(&Y*./)*c*.#2J(* .$$*c*/",0",%/B*.*/(U*B(/(,.0%2/*2P *12-:(0%0%J(*&-.$$*#"&%/(&&(&*./1'2,()* 02*:$.1(*0',2"B'*$21.$*2U/(,&'%:R*[/*0'(*</%0()*60.0(&*-2,(*0'./*?DD*1%0%(&* ./)*02U/&Y*$()*#+*2,B./%i.0%2/&*$%S(*0'(*^"&%/(&&*\$$%./1(*P2,*421.$*4%J%/B* 812/2-%(&*K^\448OY*'.J(*12--"/%0+N#.&()*.&&21%.0%2/&*%/J2$J%/B*&(J(,.$* 0(/&* 2P * 0'2"&./)&* 2P * &-.$$* #"&%/(&&(&* :"&'%/B* P2,* .* g421.$* G%,&0]* .B(/).R* 8J(,+U'(,(*1./*#(*P2"/)*&%B/&*0'.0*&.+*g421.$$+*IU/()*@(&0.",./0]Y*g421.$* ^./SY*gT(*6($$*421.$*W(U($$(,+]R*8f".$$+*&0,%S%/B*%&*0'.0*/2/N$21.$*#"&%/(&&(&* .,(*0,+%/BY*'2U(J(,*)%&%/B(/"2"&$+Y*02*&/(.S*%/02*0'%&*-2J(-(/0R*I/(*2P *0'(* $.,B(&0*^,%0%&'*#./S&Y*36^7Y*.)J(,0%&(&*%0&($P *.&*g5'(*T2,$)]&*421.$*^./S]R*[0* U2"$)*#(*.*-%&0.S(*02*)%&-%&&*0'(&(*(PP2,0&*.&*2$)N&0+$(*:,20(10%2/%&-R*92&0* $21.$%i.0%2/*%&*P21"&()Y*/20*2/*(,(10%/B*$.U&*2,*20'(,*$(B.$*#.,,%(,&*.B.%/&0* %-:2,0&Y*#"0*,.0'(,*2/*:,2-20%/B*P,((*1'2%1(&*c*2P *12/&"-(,&*02*:,%2,%0%i(* $21.$* B22)&Y* 2P * %/J(&02,&* 02* P.J2",* $21.$* #"&%/(&&* 2::2,0"/%0%(&Y* ./)* 2P * (/0,(:,(/(",&* 02* $22S* '.,)(,* P2,* 12--"/%0+N#.&()* %/:"0&* P2,* :,2)"10%2/R* 92,(2J(,Y* 0'(&(* -2J(-(/0&* .10".$$+* &"::2,0* )%&-./0$%/B* -./+* )2-(&0%1* &"#&%)%(&*./)*,(B"$.0%2/&*K12/1(,/%/B*0.H(&Y*./0%0,"&0Y*i2/%/BY*./)*&2*P2,0'OY* /(.,$+*.$$*2P *U'%1'*P.J2",*B$2#.$*2J(,*$21.$*#"&%/(&&R*5'%&*%&*.*-2J(-(/0* 0'.0* %&* -2,(* P,((N0,.)(* -%/)()* 0'./* -2&0* B$2#.$%i.0%2/* .)J21.0(&* .,(R* 6":(,P%1%.$$+Y*0'(*421.$*G%,&0*-2J(-(/0*U2"$)*&((-*02*'.J(*$%00$(*%/*12--2/* U%0'* 7',%&* \/)(,&2/]&* .,B"-(/0&* 2/* g5'(* 42/B* 5.%$]R* 421.$* -.,S(0&Y* '(* .,B"()Y*.,(*%/'(,(/0$+*022*&-.$$*P2,*-./+*$21.$*:,2)"1(,&R*I/$+*0',2"B'*0'(* .BB,(B.0%2/*2P *-.,S(0&*:,2J%)()*#+*B$2#.$*:$.0P2,-&*$%S(*\-.i2/*2,*8N^.+* 1./* 0'(&(* -%1,2N#"&%/(&&(&* #(B%/* 02* (/b2+* &"11(&&R* 32U* )2(&* 0'%&* -2)($* 12-:2,0*U%0'*0'(*%)(.$&*2P *#"+%/B*$21.$j* [/*P.10Y*'2U(J(,Y*0'(*0,%"-:'*2P *0'(*42/B*5.%$*.$&2*-(./&*0'(*0,%"-:'*2P * 0'(*6'2,0*5.%$&*2P *$21.$*#"&%/(&&Y*%/*.0*$(.&0*0',((*%-:2,0./0*U.+&R

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1 86

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191


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

Economics of Solidarity: Good Practice from within the Ecovillage Family Jonathan Dawson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gJ2$"/0.,+* &%-:$%1%0+]Y* 0'(* 12/&1%2"&* )(1%&%2/*02*$%J(*-2,(*&%-:$+R*5'%&*0.S(&*%0&*:",(&0*P2,-*%/*12--"/%0%(&*&"1'* .&*5%/S(,&]*^"##$(*./)*6%(#(/*4%/)(/*0'.0*.,(*12--%00()*02*-2)($$%/B*$2UN %-:.10*$%P(&0+$(&Y*#"0*:(,J.)(&*0'(*(12J%$$.B(*-2J(-(/0R 5'"&*(12J%$$.B(&*0(/)*02*#(*:$.1(&*U'(,(*0'(,(*%&*.*&%B/%P%1./0*&'.,%/B* ./)*,(1+1$%/B*2P *1$20'(&Y*02+&*./)*(f"%:-(/0*2P *.$$*S%/)&R*5'(*&(J(/0+N0U2* -(-#(,&*2P *0'(*A2--"/(*Z%()(,S."P"/B(/*(12J%$$.B(*%/*;(,-./+*&'.,(* &(J(/*1.,&Y*0U2*U.&'%/B*-.1'%/(&*./)*0U2*J%)(2*,(12,)(,&R* 4(J($&*2P *0($(J%&%2/*2U/(,&'%:*%/*(12J%$$.B(&*0(/)*02*#(*(&:(1%.$$+*$2UY* #20'*#(1."&(*2P *0'(*12&0*2P *0'(*(f"%:-(/0*./)*$%1(/1(*./)*#(1."&(*2P *0'(* -()%"-]&*&"#J(,&%J(*,2$(*%/*:,2-20%/B*12/&"-(,%&-R*5'(*4.).S'*!,2b(10* (J(/*,"/&*gZ2*5l]*U((S&Y*.%-()*.0*,(&%&0%/B*0'(*-2&0*).-.B%/B*($(-(/0&* 2P */2/N4.).S'%*1"$0",(R*[/*0'(*:$.1(*2P *0($(J%&%2/Y*(12J%$$.B(,&*0(/)*02*0",/* 02*'2-(NB,2U/*(/0(,0.%/-(/0C*1'2%,&Y*12/1(,0&*./)*0'(.0,(*B,2":&*.#2"/)R* 5'(,(* %&Y* %/* .))%0%2/Y* .* &0,2/B* %-:"$&(* 02* ,()(P%/(* 0'(* ,($.0%2/&'%:* 02* U2,SY*/20*.&*.*1'2,(*#"0*./*.10*2P *&(,J%1(*./)*(/b2+-(/0R*5'"&Y*0'(*5U%/* I.S&*(12J%$$.B(*%/*l%,B%/%.*)(1$.,(&C*gT(*"&(*.*0,"&0N#.&()*$.#2",*&+&0(-*%/* 1 92


ECO N OM I C S OF SO L I DA R I T Y: GO O D P R AC T I C E FROM WITH IN TH E ECOVILLAG E FAMILY

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193

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

The Economy of Auroville Marti Mueller 5'(*h.-%U./.*[/)%./&*%/*81".)2,*1.$$*-2/(+*m&.)*$(.J(&nR*[/*02).+]&*U2,$)Y* P%/)%/B*J.$"(N2,%(/0()*(12/2-%1*&+&0(-&*0'.0*'2/2,*:(2:$(*./)*:,2J%)(*.* 1,(.0%J(*&+&0(-*2P *(H1'./B(*0'.0*)2(&/]0*).-.B(*&2-(*P2,*0'(*#(/(P%0*2P *.* P(U*%&*.*'"B(*1'.$$(/B(R*[/*\",2J%$$(Y*U(*'.J(*#((/*&0")+%/B*'2U*02*B(/(,.0(* .#"/)./1(* U'%$(* /20* P.$$%/B* %/02* 0'(* 0,.)%0%2/.$* 0,.:&* ./)* 12/&0,.%/0&* 2P * 12/J(/0%2/.$*#"&%/(&&(&*./)*0'(*.)J(,&(*.PP(10&*2P *B$2#.$%i.0%2/R*\",2J%$$(* %&* 1.$$()* g5'(* 7%0+* 0'(* 8.,0'* Z(()&]R* [0* %&* 2",* .%-* 02* &'2U* '2U* (12$2B+* ./)* &21%2N(12/2-%1* &2$"0%2/&* 1./* #(* ,(:$%1.0()* 0',2"B'2"0* 0'(* U2,$)* U'%$(* &+-#2$%i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

Business with a difference \",2J%$$(* %&* .* 12--"/%0+* 2P * /(.,$+* >DDD* :(,-./(/0* ,(&%)(/0&* :$"&* .* P$"10".0%/B*:2:"$.0%2/*2P *./*.))%0%2/.$*>DDD*:(2:$(*.0*./+*B%J(/*-2-(/0R* 5'(*12--"/%0+*'.&*-2,(*0'./*?`D*&(,J%1(*./)*12--(,1%.$*"/%0&Y*&2-(*2P * 0'(-*J(,+*&-.$$*%/*&%i(*./)*20'(,&*U%0'*.*,.0'(,*$.,B(*+(.,$+*0",/2J(,*./)*.* 12/&%)(,.#$(*(H:2,0*-.,S(0R*^"&%/(&&*%/*\",2J%$$(*%&*#.&()*2/*/2/N2U/(,&'%:* ./)*&0(U.,)&'%:*2P *.&&(0&Y*U'%1'*.,(*'($)*%/*0,"&0*#+*0'(*\",2J%$$(*G2"/).0%2/* P2,*g'"-./%0+*.&*.*U'2$(]R*\",2J%$$(*%&*.")%0()*#+*0'(*;2J(,/-(/0*2P *[/)%.* ./)*(/b2+&*.*0.HN(H(-:0*&0.0"&*P2,*&2-(*2P *%0&*.10%J%0%(&R*G,2-*:'202J2$0.%1* &+&0(-&*./)*12-:"0(,*&2P0U.,(*02*J%$$.B(*'./)%1,.P0&Y*2",*#"&%/(&&*"/%0&*.,(* (/12",.B()*02*B%J(*.0*$(.&0*=`*:(,1(/0*2P *0'(%,*:,2P%0&*02U.,)&*12--"/%0+* )(J($2:-(/0R*92&0*2P *2",*:,2)"10%2/*"/%0&*.,(*&-.$$*02*-()%"-*%/*&%i(*./)* $.,B($+*2,%(/0()*02U.,)&*0(H0%$(&Y*/.0",.$*P22)*:,21(&&%/BY*./)*.::,2:,%.0(* (/(,B+R* 5'(+* :,2J%)(* %/12-(* P2,* $21.$* J%$$.B(&* ./)* '.J(* U.B(* &1.$(&* 0'.0*

=(60%34"$%0-06% G0@(60K%D;6(-#110% #*%)(3#-"309% G7%340%$009%3(% 36"$*@(6)%#3*01@ % @6()%"%9($"3#($M 90?0$90$3% '());$#37% 3(2$*4#?%3(%"% *01@M*;*3"#$#$.% 0'($()#'%)(901 195


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.,(*.#2J(*0'(*/2,-*P2,*2",*,(B%2/R*\",2J%$$(*'.&*.$U.+&*'.)*.*,(:"0.0%2/* P2,*#(."0+*./)*f".$%0+*%/*1,.P0&-./&'%:R*T(*0,+*02*:,.10%1(*(0'%1.$*P.%,*0,.)(* ./)*(/&",(*0'.0*2",*U2,S%/B*12/)%0%2/&*.,(*B22)*./)*0'.0*2",*U.B(*$(J($&* .,(*.#2J(*0'(*/2,-*P2,*2",*,(B%2/R*5'%&*.$$2U&*$21.$*:(2:$(*02*$%J(*U($$*./)* 02*-.%/0.%/*0'(%,*1"$0",.$*'(,%0.B(R*

Becoming more sustainable in India 52).+*12--"/%0+N#.&()*#"&%/(&&(&*%/*\",2J%$$(*2PP(,*/(U*./)*.$0(,/.0%J(* -2)($&* 02* 0'(* )2-%/./0* :.,.)%B-* 2P * (12/2-%1* B$2#.$%&.0%2/R* T'(/* \",2J%$$(* #"&%/(&&* "/%0&* ./)* &(,J%1(&* .,(* -20%J.0()* 02U.,)&* 12--"/%0+* U(.$0'*1,(.0%2/*%/&0(.)*2P *:,%J.0(*:,2P%0Y*/(U*:.,.)%B-&*(-(,B(R*I",*(/0%,(* $21.$*12--"/%0+*&'%P0&*P,2-C

W;6%'4"110$.0% #*%3(%)"#$3"#$% *)"11%?6(9;'3#($% ;$#3*K%24#'4% *;??(63%340% 60.#($%#$%306)*% (@ %?6(-#9#$.% 1('"1%#$'()0%"3% "%@"#6%6"30K%"$9% 3(%*360$.340$% -#11".0% 601"3#($*4#?*% 24#10%G0#$.%(?0$% 3(%$02%H#$9*% (@ %G;*#$0**% (??(63;$#3#0*P

u* 12-:(0%0%2/*02*122:(,.0%2/ u* -.0(,%.$*.-#%0%2/&*02*'2$%&0%1*'"-./*J.$"(& u* %-:"$&(*12/&"-:0%2/*02*#.&%1*/(()&*12/&%)(,.0%2/& u* B,(()*./)*12,,":0%2/*02*(0'%1.$*&0./).,)& u* %/)%J%)".$*)(&%,(&*02*.#"/)./1(*P2,*.$$* u* &'.,('2$)(,*:,2P%0*02*&0.S('2$)(,*,(&:2/&%#%$%0+ u* &($P%&'*%/)%J%)".$%&-*02*.*,(.$*&(/&(*2P *12--"/%0+

Creative thinking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b(10*P2,*J%$$.B(*P%&'%/B*U2-(/*#.&()*2/*.*B%P0*(12/2-+R* 5'(*J%$$.B(*U2-(/*-.S(*)2$$&*2"0*2P *P.#,%1*U.&0(*./)*:(2:$(*)2/.0(*U'.0* 0'(+*U%&'R*5'(*:,2b(10*U.&*'%B'$%B'0()*%/*!.,%&*#+*<Z867I*P2,*#,%/B%/B* :,2&:(,%0+*#.1S*02*0'(*J%$$.B(&R* gT($$:.:(,]* %&* ./20'(,* \",2J%$$(* B(/(,.0()* #"&%/(&&* :,2b(10* $21.0()* %/* ./*2"0$+%/B*J%$$.B(*U'(,(*,(1+1$()*/(U&:.:(,&*.,(*0,./&P2,-()*%/02*"&(P"$* 2#b(10&Y*&"1'*.&*#2U$&Y*&.1S&Y*./)*12/0.%/(,&R*T($$:.:(,*'.&*/20*2/$+*0,.%/()* $21.$*U2-(/*#"0*'.&*-.)(*0'(-*:.,0*2U/(,&*2P *0'(*#"&%/(&&R*5'(*\",2J%$$(N #.&()* "/%0* './)$(&* 0'(* 12--"/%1.0%2/* ./)* -.,S(0%/B* ./)* 0'(* J%$$.B(&* './)$(*0'(*-./"P.10",%/BR*5'(*:,2P%0&*.,(*0'(/*&:$%0R*I/(*2P *2",*:$./(0.,+* )%$(--.&* %&* 0'.0* .&* 2",* :2:"$.0%2/* %/1,(.&(&* ./)* 0'(,(* %&* -2,(* )(-./)* P2,* S/2U$()B(N#.&()* &S%$$&Y* :(2:$(* U%0'* P(U* ,(12B/%i.#$(* &S%$$&* #(12-(*


T H E ECO N OMY O F AU ROV I L L E

./)*,(-.%/*"/(-:$2+()R*5'%&*%&*2/(*2P *0'(*,(.&2/&*0'.0*0'(*)+/.-%1&*2P * %/0(,:(,&2/.$*,($.0%2/&'%:&*./)*.*&0,(&&*2/*0'(*J.$"(*2P *'"-./*,(&2",1(&*%/* #"&%/(&&*/2U*-.00(,&*(J(/*-2,(*0'./*%/*0'(*:.&0R*

Aurovilleâ&#x20AC;&#x2122;s specific challenge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

Research on branding !.,.$$($*02*2,B./%i%/B*P2,"-&*2/*#"&%/(&&Y*U(*'.J(*)2/(*,(&(.,1'*2/*#,%/B%/B* &2-(*2P *2",*-.b2,*&'2U1.&(*\",2J%$$(*#,./)&*02B(0'(,*"/)(,*2/(*$.#($*U%0'* $2B2&*./)*0,.)(-.,S&*0'.0*.,(*.*&%B/*2P *f".$%0+Y*#(."0+Y*:(,P(10%2/Y*,(&:(10* P2,*/.0",(Y*./)*P.%,*$.#2",*:,.10%1(&R*T(*'.J(*:$.1()*./*(-:'.&%&*2/*.::$%()* ,(&(.,1'*./)*(/12",.B(*12/&0./0*%//2J.0%2/Y*.&*2",*:,2)"10*$%/(&*.,(*2P0(/* 12:%()R*8&0.#$%&'%/B*./*\",2J%$$(*#,./)*0'.0*%&*#.1S()*#+*.*:$()B(*02*'%B'* f".$%0+*./)*B22)*$.#2",*&0./).,)&*%&*(&&(/0%.$*#(1."&(*\",2J%$$(*:,2)"10&* .,(*0'(*.-#.&&.)2,&*2P *2",*J.$"(&R*

Foodlink co-operative 52*(/12",.B(*$21.$*:,2)"10%2/*P2,*$21.$*P22)*/(()&Y*\",2J%$$(*'.&*(&0.#$%&'()* gG22)$%/S]Y* .* P22)* 122:(,.0%J(* :,2B,.--(Y* 02* #,%/B* .* )2i(/* \",2J%$$(* P.,-&*"/)(,*2/(*1(/0,.$%i()*"/%0R*\&*./*2PP&'220*2P *2",*#"&%/(&&*&(-%/.,&Y* \",2J%$$(*P.,-(,&*b2%/()*P2,1(&*./)*)(J($2:()*.*-.,S(0%/B*12/1(:0Y*)(&%B/()* 0'(%,*2U/*$2B2Y*./)*&%B/.0",(Y*g\",2J%$$(*B,2U/]Y*U'%1'*%&*%/1$")()*2/*0'(%,* :.1S.B%/B* ./)* %/* 0'(* )%&0,%#"0%2/* 2P * \",2J%$$(* B22)&R* 5'(%,* :,2)"10&* .,(* #,2"B'0*%/02*.*1(/0,.$*1$(.,%/B*'2"&(*U'(,(*0'(%,*.J.%$.#%$%0+*%&*:2&0()*./)* 2,)(,&*.,(*0.S(/*./)*)%&:.01'()*02*)%PP(,(/0*:.,0&*2P *0'(*12--"/%0+R*[/*0'%&* U.+*2",*12--"/%0+*2P *12/&"-(,&*S/2U&*'2U*0'(*P22)*0'(+*(.0*'.&*#((/*

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

Will Earthaven become a â&#x20AC;&#x2DC;Magical Appalachian Machu Picchuâ&#x20AC;&#x2122;? Diana Leafe Christian 8.,0'.J(/Y*U'(,(*[*$%J(Y*%&*.*?`N+(.,N2$)*.&:%,%/B*(12J%$$.B(*%/*0'(*^$"(*@%)B(* 92"/0.%/&* 2P * Z2,0'* 7.,2$%/.Y* .#2"0* ./* '2",* P,2-* \&'(J%$$(R* T(* B2J(,/* 2",&($J(&*U%0'*12--"/%0+*-((0%/B&*./)*12--%00((&k*U(*$%J(*%/*&-.$$*:.&&%J(* &2$.,*'2-(&*U(*#"%$)*2",&($J(&*U%0'2"0*#./S*$2./&k*U(],(*2PP *0'(*B,%)R 32U(J(,Y*%/*0'%&*(12/2-%1.$$+*)(:,(&&()*.,(.*2P *62"0'(,/*\::.$.1'%.* %/*0'(*\-(,%1./*62"0'Y*U(],(*022*P.,*P,2-*\&'(J%$$(*02*&"::2,0*12--"0%/B* 02*b2#&R*5'(,(*.,(*/2*$.,B(*(-:$2+(,&*U%0'%/*>D*-%$(&Y*./)*$21.$*&(,J%1(*b2#&* .,(* -2&0$+* ?DN?`* -%$(&* .U.+* 2J(,* U%/)%/B* -2"/0.%/* ,2.)&R* W2#&* -"&0* #(* .J.%$.#$(*2/&%0(*2,*/(.,#+R*T'%$(*.#2"0*?D*2P *2",*M`*-(-#(,&*.,(*,(0%,()Y* $%J(*2/*0,"&0*P"/)&Y*2,*'.J(*20'(,*.//"%0%(&Y*0'(*,(&0*-"&0*(.,/*%/12-(&R*

The economics of a rural ecovillage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c*.*0,((*&",B(2/Y*12"/&($$2,&*2,*0(.1'(,&* .0* ./* .)b.1(/0* &1'22$* P2,* .0N,%&S* +2"0'Y* 2,* :(2:$(* U'2* 0,.J($* ($&(U'(,(C* #22S&($$(,&* .0* 12/P(,(/1(&* .,2"/)* 0'(* <6Y* ./)* U2,S&'2:* :,(&(/0(,&* ./)* 12/&"$0./0&R* \* P(U* 0($(12--"0(* #(1."&(* -2&0* 2/&%0(* U2,S* 2::2,0"/%0%(&* ,(f"%,(*:'+&%1.$*&0,(/B0'Y*0'(*.#%$%0+*02*2:(,.0(*'(.J+*(f"%:-(/0Y*2,*&S%$$*%/* 0'(*#"%$)%/B*0,.)(&Y*-(/*'.J(*.*-"1'*(.&%(,*0%-(*(.,/%/B*-2/(+*'(,(*0'./* -2&0*U2-(/R* 5'"&*&2-(Y* (&:(1%.$$+* +2"/B* U2-(/Y* -2J(* 02* \&'(J%$$(* 02* (.,/*-2/(+R*6.)$+Y*U(*"&".$$+*$2&(*0'(-*P2,*B22)R* 2 00


W I L L EA RT H AV E N B ECOM E A “ MAGI C AL A P PALACHIAN MACHU PICCHU”?

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201

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2 02

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W I L L EA RT H AV E N B ECOM E A “ MAGI C AL A P PALACHIAN MACHU PICCHU”?

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203


2 04

G AIAN ECONOMICS

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Seeds of the future

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

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2 06

G AIAN ECONOMICS

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Heating

B40%G(#106% 40"3*%G(34%340% -#*#3(6%'0$360K% 24060%(;6%(@@#'0*% "$9%*3(60*%"60% *#3;"309K%"$9% 340%'0$360X*% 0'(4(*301K% /034069(2$% F(*301K% 24#'4%'"$% "''())(9"30% ;?%3(%f`%.;0*3*% "$9%-(1;$3006*P% >3%6;$*%($%2((9% '4#?%)"90% ($%*#30%@6()% 340%*(@3%2((9% ?1"$3"3#($P

T(*&0,"BB$()*P2,*&2-(*+(.,&*U%0'*.*:$.//%/B*12/0,2J(,&+*2J(,*.*U22)o&0,.U* P%,()*G.,-*>DDD*#2%$(,*%/&0.$$()*"/)(,*2",*2PP%1(&*./)*.&*.*12/&(f"(/1(*'.)* /2*'(.0%/B*P2,*P%J(*+(.,&R*5'%&*#2%$(,*U.&*(J(/0".$$+*&2$)*./)*0'(*12/0,2J(,&+* &2$J()* #+* 0'(* %/&0.$$.0%2/* ./)* ,(&%0%/B* 2P * .* #%2-.&&* #2%$(,Y* .* l(02* ?>DST* &02S(,N#2%$(,Y*U'%1'*%&*,"/*2/*U22)1'%:R*5'(*#2%$(,*'(.0&*#20'*0'(*J%&%02,* 1(/0,(Y*U'(,(*2",*2PP%1(&*./)*&02,(&*.,(*&%0".0()Y*./)*0'(*1(/0,(]&*(12'2&0($Y* T(0'(,)2U/*42)B(Y*U'%1'*1./*.112--2).0(*":*02*=D*B"(&0&*./)*J2$"/0((,&R* [0*,"/&*2/*U22)*1'%:*-.)(*2/*&%0(*P,2-*0'(*&2P0*U22)*:$./0.0%2/R*\P0(,*.* P(U*0((0'%/B*:,2#$(-&Y*%0*U2,S&*,(.&2/.#$+*U($$R*7",,(/0$+*U(*"&(*`D*02//(&* 2P * &(.&2/.$* U22)* :(,* +(.,R* 5'(* (&0%-.0()* .//".$* "&(P"$* '(.0* :,2)"1()* %&* ?>`YDDD* ST'R* 5'(* 1.$1"$.0%2/* %&* 0'.0* =_* 02//(&* 2P * 7I>* (-%&&%2/&* .,(* .J2%)()*.//".$$+R 5'(* #2%$(,* '(.0&* 2",* U.0(,* %/* 0'(* 12$)(,* -2/0'&* ./)* %/* &"--(,* U(* '.J(* .* &2$.,* 0'(,-.$* &+&0(-* 2/* 0'(* ,22P * .#2J(* "&Y* %/&0.$$()* U%0'* .* B,./0* P,2-*0'(*!2U(,B(/*;,((/:$./*G"/)*#+*62"0'(,/*62$.,R*5'(*:./($&*.,(*P2",* G%$&2$*G6>D*P$.0*:$.0(*:./($&*(.1'*U%0'*.*&",P.1(*.,(.*2P *>->*K>?R`P0>OR*5'(* (&0%-.0()*.//".$*+%($)*%&*=Y>E>*ST'Y*(/2"B'*P2,*0',((*'2"&('2$)&R 5'(* #2%$(,* ./)* :./($&* U2,S* ,(.&2/.#$+* U($$* #"0* U(* &"PP(,* P,2-* 0'(* )%PP%1"$0%(&*2P *-.01'%/B*/(U*&2$.,*0(1'/2$2B+*U%0'*2$)*'.,)U.,(Y*$2&%/B*.* $20* 2P * '(.0* 0',2"B'* ./1%(/0* $.,B(* )%.-(0(,* %,2/* :%:(&Y* ./* (12N,(/2J.02,]&* /%B'0-.,(R* I",* #"%$)%/B* %&* Z.J+* %&&"(Y* 1%,1.R* ?_ED&Y* #"%$0* 02* U%0'&0./)* .* #2-#*#"0*:22,$+*%/&"$.0()R

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C R EAT I NG A ND M AN AGI NG AN ETHI C AL B U S INESS: PE RMAN E N T P UBLICATIONS

207

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Ventilation T(*2:(/*0'(*)22,&*./)*U%/)2U&d

Windows, doors and other fittings I",*U%/)2U&*.,(*&0%$$*&%/B$(*B$.i()*!l7*Z.J+*%&&"(R*I/(*).+*0'(*#"%$)%/B* U%$$*#(*,(P%00()*U%0'*)2"#$(*B$.i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

Office equipment T(*'.J(/]0*#2"B'0*.*/(U*12-:"0(,*0'%&*1(/0",+R*\$-2&0*.$$*-.1'%/(&*.,,%J(* 0'./S&* 02* (^.+* U'%1'* '.&* ,(J2$"0%2/%&()* 506)"';13;60% ="."R#$0]&* B,.:'%1* )(&%B/*1.:.#%$%0+R*W2'/*\).-&*#"%$)&*(J(,+0'%/B*P,2-*12-:2/(/0&R*T'(/* -.1'%/(&*#(12-(*%,,(:.,.#$(Y*0'(+*B2*P2,*,(1+1$%/BR

Waste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

Our garden T(*&0.,0()*.*&-.$$*",#./N&0+$(*()%#$(*12/0.%/(,*B.,)(/Y*%--()%.0($+*2"0&%)(* 2",*B22)&N%/*)22,*0',((*+(.,&*.B2Y*-2&0$+*"&%/B*,(1+1$()*-.0(,%.$&R*A%01'(/* U.&0(*%&*12-:2&0()*%/*0U2*#%/&*./)*.*U2,-(,+*./)*0'%&*.))&*P(,0%$%0+*02*2",*

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2 08

G AIAN ECONOMICS

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Travel and sourcing locally

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C R EAT I NG A ND M AN AGI NG AN ETHI C AL B U S INESS: PE RMAN E N T P UBLICATIONS

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C R EAT I NG A ND M AN AGI NG AN ETHI C AL B U S INESS: PE RMAN E N T P UBLICATIONS

[* S/2U* 0'.0* U(* "&(* ":* P%/%0(* ,(&2",1(&* c* U(* -2J(* %/P2,-.0%2/* %/* 0'(* P2,-*2P *:.:(,*.,2"/)*0'(*U2,$)*c*./)*%/*(&&(/1(*0'.0*"&(&*1.,#2/R*T(*0,+* .0*.$$*0%-(&*02*)2*0'%&*%/*.&*$2U*%-:.10*.*U.+*.&*:2&&%#$(*./)*U%0'%/*0'(*0%B'0* P%/./1%.$*12/&0,.%/0&*U(*P.1(*.&*./*(/0%,($+*%/)(:(/)(/0*2,B./%&.0%2/*U%0'N 2"0*(H0(,/.$*P"/)%/BR*T(*.$&2*,"/*U%0'*0'(*:'%$2&2:'+*0'.0*0'(*"&(P"$/(&&* 2P *0'(*%/P2,-.0%2/*U(*:,2)"1(*2"0U(%B'&*0'(*1.,#2/*$2.)*,(f"%,()*02*1,(.0(* ./)* 0,./&-%0* %0* c* .* P2,-* 2P * 0,./&%0%2/.$* (0'%1&R* T(* .,(* '(,(* 02* #,2.)1.&0* :2&%0%J(Y*&-.$$*&1.$(Y*&2$"0%2/*2,%(/0.0()*%)(.&*./)*:,.10%1(&R*5'(*P(()#.1S* U(*,(1(%J(*%/)%1.0(&*0'.0*2",*U2,S*)2(&*1'./B(*$%J(&*c*P2,*0'(*#(00(,R*T(*.,(* .$&2*.U.,(*0'.0*U(*.,(*2P *2",*0%-(*./)*2/(*).+*U(*-.+*U($$*'./B*":*2",* -%1(*./)*'(.)*2PP *%/*./20'(,*)%,(10%2/R*I,*U(*-.+*(/)*2",*).+&*U,%0%/B*./)* :"#$%&'%/BRRR*./)*&/22i%/B*%/*0'(*&"/*.&*2$)*)2B&*)2R

References ?R* X.J%)*32$-B,(/Y*506)"';13;60%T%56#$'#?10*%<%5"342"7*%807($9%C;*3"#$"G#1#37k*K32$-B,(/* X(&%B/* !,(&&Y* >DD=* c* .J.%$.#$(* P,2-* 5'(* ;,((/* 6'2::%/B* 7.0.$2B"(Y* UUURB,((/N &'2::%/BR12R"SO >R* 6.0%&'*A"-.,Y*g5'(*6:%,%0".$*[-:(,.0%J(]Y*I0*;6.0$'0*-.B.i%/(Y*/2R*>>_R*

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

Powerdown and Permaculture: at the Cusp of Transition Rob Hopkins /0%1#-0%#$%"% Q((1X*%5"6"9#*0K% *;66(;$909% G7%#5(9*K% 2011M*3"'H09% *;?06)"6H03% *401-0*%"$9% A010G6#37%,(-0% >*1"$9K%G01#0-#$.% #3%3(%G0%340%\60"1% 2(619XP

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Peak oil – the great oversight of our times !(.S*2%$*%&*.*0(,-*%/1,(.&%/B$+*-(/0%2/()*%/*!9Y*#"0*U'.0*)2(&*%0*.10".$$+* -(./j*[/*#,%(PY*%0*%&*0'(*:2%/0*%/*U2,$)*2%$*:,2)"10%2/*.0*U'%1'*&"::$+*#(B%/&* 02*)%10.0(*)(-./)Y*,.0'(,*0'./*)(-./)*),%J%/B*&"::$+Y*U'%1'*'.&*#((/*0'(* &%0".0%2/*P2,*0'(*:.&0*?`D*+(.,&R*[/*20'(,*U2,)&Y*U(*B2*P,2-*'.J%/B*.&*-"1'* 2%$*.&*U(*1./*"&(Y*02*"&%/B*.&*-"1'*2%$*.&*U(*1./*'.J(R*[0*%&*.*:%J20.$*:2%/0* %/* '"-./* '%&02,+Y* ./)* U'%$(* %0* )2(&* /20* -(./* 0'.0* U(* .,(* g,"//%/B* 2"0]* 2P *2%$Y*%0*)2(&*-(./*0'.0*0'(*\B(*2P *7'(.:*I%$Y*./)*.$$*0'.0*1'(.:*2%$*'.&* -.)(*:2&&%#$(Y*%&*12-%/B*02*.*1$2&(R*5'(*:,%1(*2P *2%$*%&*,%&%/B*&0(.)%$+k*U(* 2/$+* )%&12J(,* 2/(* /(U* #.,,($* 2P * 2%$* P2,* (J(,+* &%H* U(* 12/&"-(Y* ./)* -./+* 2P *0'(*2%$*:,2)"1%/B*/.0%2/&*U(*,($+*2/*02*:2U(,*2",*$%P(&0+$(&*.,(*(%0'(,*%/* )(1$%/(Y*2,*.,(*&2*&(1,(0%J(*.#2"0*0'(%,*,(&(,J(&*0'.0*U(*'.J(*/2*,(.&2/&*02* P(($*12-:$.1(/0*0'.0*0'(+*.,(*/20*.$&2*)(1$%/%/BR* T(*$%J(*%/*.*G22$]&*!.,.)%&(Y*&",,2"/)()*#+*%!2)&Y*U($$N&0.1S()*&":(,N -.,S(0*&'($J(&*./)*7($(#,%0+*42J(*[&$./)Y*#($%(J%/B*%0*02*#(*0'(*g,(.$*U2,$)]R* [/*,(.$%0+Y*%0*%&*./*(H0,(-($+*P,.B%$(*%$$"&%2/Y*U'%1'Y*.&*0'(*>DDD*0,"1S*),%J(,&]* 2 12


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213

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Challenging permaculture !(,-.1"$0",(Y*.&*%0*'.&*#((/*,(P,.-()*#+*X.J%)*32$-B,(/*%/*506)"';13;60% T% 56#$'#?10*% <% 5"342"7*% 807($9% C;*3"#$"G#1#37Y* %&* /20'%/B* $(&&* 0'./* 0'(* )(&%B/* &+&0(-* P2,* .* :2&0N:(.S* &21%(0+R?* 3(* U,%0(&* 0'.0Y* g:(,-.1"$0",(* %&* 0'(* U'2$('(.,0()* ./)* :2&%0%J(* .11(:0./1(* 2P * (/(,B+* )(&1(/0Y* .&* /20* 2/$+* %/(J%0.#$(*#"0*.&*.*)(&%,()*,(.$%0+]R*h(0Y*.&*8,%1*60(U.,0*U,20(*$.&0*+(.,*%/*.* :%(1(*%/*506)"';13;60%D'3#-#*3*1.$$()*g\*6(12/)*7'.$$(/B(*02*0'(*92J(-(/0]Y* :(,-.1"$0",(Y* .&* %0* &0./)&* 2/* 0'(* J(,B(* 2P * %0&* g1.$$* 02* :2U(,]Y* .::(.,&* 02* '.J(*.*#"%$0N%/*P$.UR>*g[0*&((-&*02*-(]Y*'(*U,20(Y*g0'.0*:(,-.1"$0",(*'2"&(&* 0U2*J%,0".$$+*:2$.,*%-:"$&(&C*2/(*%/J2$J(&*,(-2J.$*P,2-*$.,B(,*&21%(0+k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j*\,(*U(*%/*)./B(,*2P *#(12-%/B*%,,($(J./0* b"&0*.0*0'(*0%-(*U'(/*:(,-.1"$0",(*%&*.0*%0&*-2&0*,($(J./0j*T(*/(()*02*,.-:* 2",*B.-(*":Y*&2*'2U*-%B'0*U(*)2*0'.0j

My own experience 52*%$$"&0,.0(*0'%&Y*[])*$%S(*02*0($$*+2"*-+*2U/*&02,+R*6%/1(*[*)%)*-+*!(,-.1"$0",(* X(&%B/*72",&(*%/*?__>Y*[*'.J(*0,%()*02*)()%1.0(*-+*$%P(*02*%-:$(-(/0%/B*%0&* :,%/1%:$(&R*[*U.&*),%J(/*#+*92$$%&2/]&*.&&(,0%2/*0'.0*0'(*#(&0*0'%/B*U(*1./*)2*%/* 0'(*P.1(*2P*(12$2B%1.$*1,%&%&*%&*02*#"+*&2-(*$./)*U%0'*$%S(*-%/)()*P,%(/)&Y*#"%$)* .*'2"&(Y*B,2U*+2",*P22)Y*'.,J(&0*+2",*0%-#(,*./)*&2*2/R*5'%&*J%&%2/*2P*gP(01'N %/B*U22)Y*1.,,+%/B*U.0(,]*./)*$%J%/B*#+*(H.-:$(*U.&*J(,+*:2U(,P"$*P2,*-(R [* -2J()* 02* ,",.$* [,($./)Y* 0."B'0* :(,-.1"$0",(Y* )%)* 12/&"$0./1+* P2,* :(2:$(Y*)(J($2:()*./*(12J%$$.B(*:,2b(10Y*,.%&()*P%/./1%/BY*&:(/0*P2",*+(.,&*

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2 14

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G AIAN ECONOMICS

0,+%/B*02*B(0*:$.//%/B*:(,-%&&%2/*KU'%1'*(J(/0".$$+*U(*)%)OY*B,(U*-+*P22)Y* S(:0* .* 12UY* :$./0()* 0,((&* ./)* 12-:2&0()* -+* P.-%$+]&* U.&0(R* [* #"%$0* -+* P.-%$+]&*'2-(Y*.*J(,+*(/(,B+*(PP%1%(/0*12#*'2"&(Y*"&%/B*$21.$*&"#&2%$Y*$21.$* 0%-#(,Y*&0,.UY*&02/(Y*B,.J($*./)*&2*2/R*[*U.&*-.S%/B*&0(:&*02U.,)&*0'(*,",.$* &($PN,($%./0*J(,&%2/*2P *:(,-.1"$0",(*$%J%/BR 5'(/*(J(,+0'%/B*U.&*0%::()*2/*%0&*'(.)R*[*&.U*.*P%$-*1.$$()*g5'(*8/)*2P * 6"#",#%.]Y*U'%1'*&(0*2"0*%/*0'(*&0.,S(&0*0(,-&*0'(*,(.$%0+*2P *:(.S*2%$*./)*2",* &21%(0.$*)(:(/)(/1(*2/*2%$Y*&2-(0'%/B*U'%1'Y*(H0,.2,)%/.,%$+Y*[*'.)/]0*(J(,* 0'2"B'0*2P *"/0%$*0'(/R=*[*.$&2*-(0*X,R*72$%/*7.-:#($$Y*0'(*U2,$)*."0'2,%0+* 2/*0'(*&"#b(10Y*U'2*$%J()*/(.,*02*-(*%/*T(&0*72,SR*!(.S*2%$*.,,%J()*%/*-+*$%P(* U%0'*.*#./BY*./)*$()*-(*02*)((:$+*f"(&0%2/*(J(,+0'%/BR* [*1.-(*02*&((*0'.0*.$0'2"B'*[*$%J()*%/*,",.$*[,($./)Y*[*022*U.&*$%J%/B*%/* 0'(*&"#",#%.*0'.0*0'(*P%$-*'.)*&2*,"0'$(&&$+*)(12/&0,"10()R*[*,($%()*2/*0'(* 1.,*02*),%J(*02*U2,S*.0*0'(*12$$(B(*U'(,(*[*0."B'0*:(,-.1"$0",(Y*02*0.S(*-+* S%)&*02*&1'22$Y*02*J%&%0*P,%(/)&Y*02*B(0*02*0'(*&'2:&R*[P *[*'.)*/2*1.,Y*U2"$)* [*.10".$$+*U./0*02*$%J(*0'(,(j*[0*U.&*./*"/&(00$%/B*f"(&0%2/R*5'(/Y*.#2"0*.* -2/0'* $.0(,Y* ./* "/S/2U/* .,&2/%&0* #",/0* -+* /(.,$+NP%/%&'()* 12#* '2"&(* 02* 0'(*B,2"/)R*\*)((:$+*0,."-.0%1*(H:(,%(/1(Y*U'%1'*$(P0*"&*%/*.*:2&%0%2/*2P * #(%/B*.#$(*02*12-:$(0($+*,(0'%/S*U'(,(*U(*$%J()*./)*U'.0*U(*U(,(*)2%/BR*[* 1.-(*02*f"(&0%2/*0'(*/20%2/*2P *$%J%/B*%/*%&2$.0%2/*P,2-*&21%(0+Y*./)*02*&((*%/* -+&($P *0'(*:2$.,*%-:"$&(&*0'.0*60(U.,0*,(P(,,()*02R*[*1.-(*02*P(($*0'.0*:(.S* 2%$* ./)* 0'(* gU.,0%-(* -2#%$%&.0%2/]* &1.$(* 2P * ,(&:2/&(* 0'.0* U,%0(,&* &"1'* .&* 4(&0(,*^,2U/*1.$$*P2,*,(f"%,(&*"&*02*#(*U'(,(*:(2:$(*.,(Y*02*#(*&:(.S%/B*0'(%,* $./B".B(R*[*#(B./*02*P(($*0'.0*U'.0*U(*-%B'0*1.$$*g5'(*;,(.0*5",/%/B]*'.)* #(B"/Y*./)*0'.0*[*U./0()*02*#(*.*:.,0*2P *%0R*[/*&'2,0Y*U(*/(()*02*#(*U'(,(* :(2:$(*.,(Y*,.0'(,*0'./*(H:(10%/B*0'(-*02*12-(*02*"&R*!(2:$(*2"0*0'(,(*.,(* )(&:(,.0($+*'"/B,+*P2,*0'%&*&0"PPY*#"0*U(*1./*#(*&((/*.&*g'2$%(,*0'./*0'2"]Y*.&* &(:.,.0(*./)*.$22P *K2,*&2*[*.-*,($%.#$+*%/P2,-()*#+*(12N&1(:0%1*P,%(/)&OR*\* :$./*#(B./*02*(-(,B(R

Energy descent planning

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POW E R D OW N AN D P E R M AC U LT U R E : AT THE C US P OF TRAN S ITION

215

[0*%&*.*&%-:$(*%)(.Y*+(0*'"B($+*:2U(,P"$Y*./)*&((-&*02*'.J(*,(.$$+*(/B.B()* :(2:$(]&*%-.B%/.0%2/&R [0*12"$)*#(*.,B"()*0'.0*2/(*2P *0'(*,(.&2/&*P2,*0'(*(/J%,2/-(/0.$*-2J(N -(/0]&* P.%$",(* 02* -2#%$%i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

Transition Town Totnes 4.&0*6(:0(-#(,*[*-2J()*02*520/(&*%/*X(J2/Y*./)*#(B./*:$.//%/B*.*$.,B(,* %/%0%.0%J(Y*#.&()*2/*0'(*$(&&2/&*$(.,/()*%/*A%/&.$(R*5'%&*:$.//%/B*U2,S*./)* ,(&(.,1'*'.&*,(&"$0()*%/*5,./&%0%2/*52U/*520/(&Y*U'%1'*U%$$*.%-Y*2J(,*0'(* /(H0* ?F* -2/0'&Y* 02* :,2)"1(* ./* (H(-:$.,+* 8/(,B+* X(&1(/0* \10%2/* !$./* P2,*520/(&Y*&(00%/B*2"0*0'(*:,.10%1.$*&0(:&*02*.*$2U(,*(/(,B+Y*-2,(*$21.$%i()* 520/(&R*[0*U%$$*.%-*02*)(J($2:*./*.::,2.1'*./)*.*&(0*2P *:,%/1%:$(&*0'.0*1./*#(* .::$%()*%/*20'(,*&(00$(-(/0&R*5'%&*U%$$*-.S(*%0*0'(*P%,&0*02U/*0.S%/B*:,.10%1.$* &0(:&*02*$22S*.0*'2U*%0*,(&:2/)&*02*!(.S*I%$R [0*U.&*$."/1'()*2/*a0'*6(:0(-#(,*>DDa*%/*0'(*7%J%1*3.$$*%/*520/(&Y*2/* ./*(J(/%/B*#%$$()*.&*g5'(*IPP%1%.$*</$(.&'%/B*2P *5,./&%0%2/*52U/*520/(&]Y* U'%1'* U.&* .00(/)()* #+* 2J(,* =`D* :(2:$(R* 5'(* (J(/%/B* U.&* %/0,2)"1()* #+* 0'(*9.+2,*2P *520/(&Y*./)*P(.0",()*0.$S&*#+*X,R*7',%&*W2'/&02/(Y*."0'2,*2P * Q#$9%:(;6%5(206Y*./)*-+&($PRM*5'(*(/0'"&%.&-*P2,*0'(*:,21(&&*U.&*.-.i%/BY* #2)%/B*J(,+*U($$*P2,*0'(*/(H0*P(U*-2/0'&R 5'(* :,2B,.--(* P2,* 555* %/1$")(&* J%&%0&* #+* &:(.S(,&* &"1'* .&* @%1'.,)* 3(%/#(,BY*X.J%)*G$(-%/B*./)*!."$*92##&Y*./)*I:(/*6:.1(*0'%/S*0./S*).+&* 2/*02:%1&*&"1'*.&*'2"&%/BY*(/(,B+*./)*P22)Y*(J(/%/B*0.$S&Y*P%$-*&1,((/%/B&* ./)*./*(J(/%/B*1$.&&*1.$$()*g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j

Transitionary times X.J%)*32$-B,(/Y*%/*506)"';13;60%T%56#$'#?10*%<%5"342"7*%807($9%C;*3"#$"G#1#37Y* U,%0(&*.#2"0*0'(*gG2",N!'.&(*92)($*2P *812$2B%1.$*7'./B(]Y*U'%1'*%&*2#&(,J()*

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2 16

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G AIAN ECONOMICS

%/* (12&+&0(-&* U'(/* 1'./B(* 211",&R* 5'(* P2",* &0.B(&* .,(* 12/&(,J.0%2/Y* 0'(* &0(.)+*&0.0(*:,%2,*02*0'(*1'./B(k*,($(.&(Y*U'%1'*%&*0'(*:"$&(*2P *)%&0",#./1(* K"&".$$+*J(,+*&'2,0*%/*)",.0%2/Ok*,(2,B./%i.0%2/Y*U'%1'*%&*(&&(/0%.$$+*U'(/* (J(,+0'%/B*%&*":*P2,*B,.#&*./)*0'(*2"012-(*%&*"/1(,0.%/k*./)*(H:$2%0.0%2/Y* U'(,(*0'(*:%2/((,&*12$2/%&(* 0'(* B,2"/)* ./)* &0.,0* #"%$)%/B* 02U.,)&* .* /(U* 12/&(,J.0%2/*:'.&(R 9+* &(/&(* %&* 0'.0* U(* .,(* &2* /(.,* 02* 0'(* :(.S* 0'.0* %0&* (PP(10&* .,(* #(%/B* U%)($+*P($0Y*./)*0'%&*%&*'.J%/B*S/21S*2/*(PP(10&*2/*.$$*2",*%/&0%0"0%2/&R*^+*-+* ,(.)%/BY* U(* .,(* /2U* (/0(,%/B* 0'(* ,(2,B./%i.0%2/* :'.&(Y* U'(,(* (J(,+0'%/B* %&* ":* P2,* B,.#&R* 5'(* %)(.&* B(/(,.0()* #+* 0'(* :(,-.1"$0",(o(/(,B+* )(&1(/0* -2J(-(/0*'.J(*.&*-"1'*1'./1(*.&*./+2/(*($&(]&*2P *#(12-%/B*,(.$%0+R*T'%$(* B2J(,/-(/0&* -.+* :,2:2&(* /"1$(.,* :2U(,Y* 0.,* &./)&* ./)* 12.$* 02* $%f"%)&* .&* &2$"0%2/&Y* 0'(&(* g&2$"0%2/&]* .,(* "/U2,S.#$(* ./)* "/P(.&%#$(R* 5'(* (/(,B+* )(&1(/0*.::,2.1'*2P *,($21.$%&.0%2/*./)*&($P *,($%./1(*'.&*0'(*()B(*2J(,*0'(* 12-:(0%0%2/*%/*0'.0*%0*.10".$$+*U2,S&*./)*./&U(,&*0'(*1'.$$(/B(*,.%&()R*

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POW E R D OW N AN D P E R M AC U LT U R E : AT THE C US P OF TRAN S ITION

References ?R* X.J%)* 32$-B,(/Y* *506)"';13;60T56#$'#?10*% <% 5"342"7*% 807($9% C;*3"#$"G#1#37* K<AC* !(,-./(/0*!"#$%1.0%2/&OR >R* 8,%1*60(U.,0Y*g\*6(12/)*7'.$$(/B(*02*0'(*92J(-(/0]Y*506)"';13;60%D'3#-#*3*/2R*`ER =R* g5'(*8/)*IP *6"#",#%.C*I%$*X(:$(0%2/*p*5'(*72$$.:&(*IP *5'(*\-(,%1./*X,(.-]Y*XlX* KUUUR(/)2P&"#",#%.R12-O MR* 7',%&*W2'/&02/(Y*Q#$9%:(;6%5(206*K<AC*!(,-./(/0*!"#$%1.0%2/&Y*>D?DOR 8H1(,:0()*P,2-*506)"';13;60%="."R#$0Y*/2R*`DR

217


MODULE 5

Legal & Financial Issues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f".$%0+*2P * &(,J%1(*.0*0'(*$2U(&0*:,.10%1.$*12&0R \*#"&%/(&&*0'.0*0,.)(&*.0*.*$2&&*P2,*0',((*+(.,&*%/*.*,2U*%&*$%S($+*02*1(.&(* 0,.)%/B* &22/* .P0(,* 0'.0Y* "/$(&&* ,.)%1.$* 1'./B(&* .,(* -.)(* 02* %-:,2J(* %0&* P%/./1%.$*&%0".0%2/R * \&* .* #"&%/(&&* B,2U&Y* )%PP(,(/0* &S%$$&* U%$$* #(* ,(f"%,()R* [/* J(,+* B(/(,.$* 0(,-&Y*%/)%J%)".$&*-.+*)%&:$.+*0',((*)%PP(,(/0*S%/)&*2P *.::,2.1'*02*U2,S*%/* #"&%/(&&*K./)*($&(U'(,(OR*\*J%&%2/.,+*U./0&*02*#(*%/J2$J()*%/*U'.0*1./*#(* .1'%(J()*02-2,,2UR*\/*.)-%/%&0,.02,*U./0&*02*)2*U'.0*1./*#(*)2/(*02).+R*\* -./.B(,*S/2U&*'2U*02*#,%)B(*0'(*B.:*#(0U((/*0'(*0U2R*[0*%&*&2-(0'%/B*2P *.* 0,"%&-*0'.0*B22)*(/0,(:,(/(",&*.,(*2P0(/*:22,*-./.B(,&*./)*.)-%/%&0,.02,&Y* #"0*&"11(&&P"$*#"&%/(&&(&*/(()*.$$*0',((*&S%$$&*&(0&*02*&"11(()R

Contents Financial and Legal Issues in Ecovillage and Enterprise Formation Making a Business Plan Preparing Feasibility Studies and Business Plans Legal Entities for owning Ecovillage Land Buying in â&#x20AC;&#x201C; the Effect of an Ecovillageâ&#x20AC;&#x2122;s Economic Choices

219


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

Financial and Legal Issues in Ecovillage & Enterprise Formation Alex Walker Types and sources of finance 5'(,(* .,(* J.,%2"&* )%PP(,(/0* 0+:(&* 2P * P%/./1(* 0'.0* -.+* #(* ,(f"%,()* %/* ./+* (/0(,:,%&(* .10%J%0+R* [0* %&* %-:2,0./0* 02* )%&0%/B"%&'* #(0U((/* 0'(-* .&* (.1'* %&* $%S($+*02*12-(*U%0'*)%PP(,(/0*12/)%0%2/&*.00.1'()R*5'(&(*%/1$")(C Z% C009%@;$9#$.*c*%/%0%.$*P"/)&*02*)(J($2:*0'(*12/1(:0Y*.&&(&&*P(.&%#%$%0+Y* :.+*P2,*&:(1%.$%&0*.)J%1(Y*2#0.%/*:$.//%/B*:(,-%&&%2/*./)*&2*2/R*5'%&* %&*%/'(,(/0$+*'%B'N,%&S*1.:%0.$Y*&%/1(*0'(*:,2:2&()*.10%J%0+*-.+*/(J(,* '.::(/*K:$.//%/B*:(,-%&&%2/*-.+*#(*,(P"&()Y*.&&(&&-(/0*-.+*&"BB(&0* 0'.0*0'(*.10%J%0+*U2"$)*/20*#(*P(.&%#$(Y*(01RO*./)*&2*0(/)&*02*%/J2$J(*0'(* :.+-(/0*2P *,($.0%J($+*'%B'*,.0(&*2P *%/0(,(&0R Z% C4"60%'"?#3"1%]0U;#37^*c*0'%&*%/J2$J(&*,.%&%/B*P%/./1(*0',2"B'*&($$%/B* &'.,(&*%/*0'(*2U/(,&'%:*./)*0'(*:,2P%0&*K2,*$2&&(&O*2P *0'(*(/0(,:,%&(R Z% ,("$%'"?#3"1*c*0'%&*B(/(,.$$+*%/J2$J(&*&2-(*P2,-*2P *12$$.0(,.$*./)*0'(* ,(:.+-(/0*2P *0'(*1.:%0.$*:$"&*%/0(,(&0R*3(,(Y*2/(*1'22&(&*0'(*'%B'(,* ,%&S*./)*:20(/0%.$$+*'%B'(,*,(U.,)*2P *,(0.%/%/B*P"$$*2U/(,&'%:*2P *0'(* (/0(,:,%&(R Z% !6"$3**c*0'(&(*)2*/20*,(f"%,(*./+*,(:.+-(/0*#"0*B(/(,.$$+*12-(*U%0'* &:(1%P%1*12/)%0%2/&*.00.1'()R Z% !#@3*%"$9%9($"3#($**c*0'(&(*0(/)*02*,(f"%,(*/2*,(:.+-(/0*./)*02*%/J2$J(* P(U*12/)%0%2/&R !20(/0%.$*&2",1(&*2P *P%/./1(*%/1$")(C Z% 5"63#'#?"$3*%c*.10".$*2,*:20(/0%.$*12--"/%0+*-(-#(,&*2,*0'2&(*U'2* &'.,(*%0&*J.$"(&Y*P.,-(,&*%/*.*-.,S(0%/B*122:(,.0%J(Y*(01R

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

221

Z% ,('"1%"$9%60.#($"1%'($3"'3**c*%/)%J%)".$&*2,*2,B./%&.0%2/&*%/*0'(*.,(.*U'2* -.+*#(*-2,(*.00,.10()*#+*:20(/0%.$*P%/./1%.$*,(0",/&*0'./*#+*&'.,()* J.$"(&R Z% L($M?6(@#3%@(;$9"3#($**c*&"1'*.&*1'.,%0.#$(*0,"&0&*./)*20'(,*/2/N B2J(,/-(/0.$*)2/2,&R Z% !(-06$)0$3*c*/.0%2/.$Y*$21.$*2,*&":,./.0%2/.$*)2/2,*.B(/1%(&*K&"1'*.&* 0'(*8",2:(./*72--%&&%2/*./)*0'(*</%0()*Z.0%2/&OR

Choosing legal structures 5'(*1'2%1(*2P *$(B.$*&0,"10",(*J.,%(&*U%)($+*#(0U((/*12"/0,%(&Y*.112,)%/B*02* >@ %7(;6%?6([0'3% 0'(%,*$(B.$*12)(&R*5'(*-.%/*1.0(B2,%(&*.,(*.&*P2$$2U&C 4"*%"%4#.4%6#*H%

(@ %@"#1;60K%7(;% 2#11%4"-0%3(% ?"7%"%4#.4%6"30% Z% ,#)#309%A()?"$7*c*\*,(B"$.0()*2,B./%&.0%2/*U%0'*&'.,('2$)(,&*./)*.* (@ %#$3060*3%($% U,%00(/*12/&0%0"0%2/R*KG2,*-2,(*.#2"0*&'.,(&*&((*.#2J(O 1("$*%(6%(@@06% Z% A()?"$7%,#)#309%G7%!;"6"$300*c*6((*#($2UR *;G*3"$3#"1% Z% 5"63$06*4#?*c*4(&&*P2,-.$*#"0*&0%$$*,($.0%J($+*P$(H%#$(*.B,((-(/0&*#(0U((/* *4"60%'"?#3"1% 0U2*2,*-2,(*:(2:$(*2,*2,B./%&.0%2/&R*[/*0'(*<A*.*0+:%1.$*P2,-*%&*.* 3(%#$-0*3(6*c% g4%-%0()*4%.#%$%0+*!.,0/(,&'%:]R (6%"330)?3%3(% Z% A((?06"3#-0*c*5'(&(*1./*0.S(*J.,%2"&*P2,-&Y*0'2"B'*.$$*U2,S*P2,*0'(* @#$"$'0%340% %/0(,(&0&*2P *0'(%,*-(-#(,&*./)*%/J2$J(*2/(*J20(*:(,*-(-#(,Y*,(B.,)$(&&* ?6([0'3%346(;.4% 2P *0'(*.-2"/0*2P *1.:%0.$*%/J(&0()R .6"$3*%(6% Z% A4"6#37*c*5'%&*%&*.*,(B"$.0()*2,B./%&.0%2/*U'%1'*%&*/2/N:,2P%0*./)*U'%1'* 9($"3#($*P Z% C(10%36"906*c*\/*%/)%J%)".$*2:(,.0%/B*U%0'2"0*.*P2,-.$Y*$(B.$* 2,B./%&.0%2/R*

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5'(* S(+* 1,%0(,%2/* "&()* %/* 0'(* &($(10%2/* 2P * 0'(* $(B.$* 2,B./%&.0%2/.$* P2,-* ,($.0(&*02*0'(*:,2b(10]&*P%/./1%/B*&0,.0(B+R*[P *B,./0&*./)*)2/.0%2/&*.,(*&((/*.&* P2,-%/B*./*%-:2,0./0*&2",1(*2P *P%/./1(&Y*.*/2/N:,2P%0*P2,-*U%$$*#(*0'(*-2&0* &"%0.#$(R*

Financial strategy 62-(*2P *0'(*S(+*%&&"(&*%/*)(1%)%/B*":2/*+2",*P%/./1%.$*&0,.0(B+*%/1$")(C Z% I#*HM603;6$%6"3#(*c*[P *+2",*:,2b(10*'.&*.*'%B'*,%&S*2P *P.%$",(Y*+2"*U%$$* '.J(*02*:.+*.*'%B'*,.0(*2P *%/0(,(&0*2/*$2./&*2,*2PP(,*&"#&0./0%.$*&'.,(* 1.:%0.$*02*%/J(&02,&k*2,*.00(-:0*02*P%/./1(*0'(*:,2b(10*0',2"B'*B,./0&*2,* )2/.0%2/&R Z% A(11"306"1%c*92&0*$(/)(,&*U%$$*U./0*,(.&&",./1(*0'.0*0'(+*1./*,(12J(,* 0'(%,*$2./*(J(/*%P *+2",*:,2b(10*P.%$&R*5'(+*-.+*.&&(&&*U'.0*.&&(0&*0'(+* 1./*1$.%-*./)*&($$*2PPR*[P *+2",*:,2b(10*'.&*P(U*&.$(.#$(*.&&(0&Y*%0*-.+*#(* $(&&*.00,.10%J(*02*:20(/0%.$*%/J(&02,&R


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G AIAN ECONOMICS

Z% !0"6#$.%c*5'%&*-(./&*0'(*,.0%2*#(0U((/*&'.,(*1.:%0.$*./)*$2./&R*[P *+2",* D''(69#$.%3(% :,2b(10*'.&*.*$20*2P *&.$(.#$(*.&&(0&*./)o2,*$2U*,%&S&Y*$(/)(,&*U%$$*#(* 340%YLK%\#3%#*% -2,(*$%S($+*02*.11(:0*'%B'*B(.,%/B*K(RBR*=Dr*2P *1.:%0.$*P,2-*&'.,(&Y*EDr* 0*3#)"309%34"3PPP P,2-*$2./&OR*3%B'*B(.,%/B*-(./&*.*'%B'(,*:20(/0%.$*,(0",/*2/*&'.,(&Y* 340%3(3"1%(@ % #"0*'%B'(,*,%&S&*%P *0'(*:,2b(10*,"/&*%/02*:,2#$(-&R ?06*($*%24(*0% Z% A($36(1*c*5'(*-2,(*,%&S+*+2",*:,2b(10Y*0'(*-2,(*12/0,2$*:20(/0%.$* 1#-01#4((9*%"60% %/J(&02,&*U%$$*U./0R*G2,*(H.-:$(Y*&'.,('2$)(,&*-.+*U./0*0'(*,%B'0*02* 3(%"%*#.$#@#'"$3% P%,(*0'(*)%,(102,&*%P *0'%/B&*B2*&(,%2"&$+*.U,+R 0S30$3%)"90% Z% Q"#6%603;6$**c*X(P%/%/B*./)*/(B20%.0%/B*0'(&(*%&*'.,)*P2,*-./+*&21%.$* *0';60%G7% (/0(,:,%&(&k*12/J(/0%2/.$*P"/)%/B*&2",1(&*U%$$*2P0(/*,(B.,)*+2",* '(M(?06"3#-0% 2PP(,()*,(0",/&*.&*022*$2U*./)*022*,%&S+Y*./)*20'(,*&0.S('2$)(,&*-.+*#(* 0$306?6#*0% "/'.::+*.#2"0*./+2/(*-.S%/B*./+*:,2P%0&R "??6("'40*%34600% G#11#($%?0(?10K% 4"1@ %340%2(619X*% Companies limited by guarantee ?(?;1"3#($X 5'(&(*2,B./%&.0%2/&*1.//20*,.%&(*&'.,(*1.:%0.$*.&*&"1'Y*./)*0'(*g%/J(&0-(/0]* %&* "&".$$+* q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gU'2$$+* 2U/()]* &"#&%)%.,+* 12-:./%(&* $%-%0()* #+* &'.,(&* P2,* 0'(%,* 0,.)%/B* .10%J%0%(&R* 5'%&* 2P * 12",&(* %/1",&*.))%0%2/.$*.)-%/%&0,.0%2/*./)*.")%0%/B*P((&Y*U'%1'*1./*#(*,($.0%J($+* 1"-#(,&2-(*%P *0'(*(/0(,:,%&(*%&*&-.$$R*\&*12-:./%(&*$%-%0()*#+*B".,./0((* .,(*2P0(/*&(0*":*%/*.*U.+*U'%1'*:,(J(/0&*:.+-(/0&*02*)%,(102,&Y*0'%&*S%/)*2P * &0,"10",(*-.+*:$.1(*.*B,(.0*)(.$*2P *,(&:2/&%#%$%0+*%/*0'(*'./)&*2P *J2$"/0((,&R

Co-operatives 72N2:(,.0%J(&* .,(* .* J(,+* &%B/%P%1./0* U2,$)U%)(* :'(/2-(/2/R* \112,)%/B* 02* 0'(* <ZY* g%0* %&* (&0%-.0()* 0'.0* 0'(* 020.$* /"-#(,* 2P * 12N2:(,.02,&* %&* FDD* -%$$%2/* :(,&2/&* U2,$)NU%)(Y* U%0'* .* P",0'(,* ?DD* -%$$%2/* :(,&2/&* (-:$2+()* #+*12N2:(,.0%J(&Y]*./)*0'.0*g0'(*020.$*2P *:(,&2/&*U'2&(*$%J($%'22)&*.,(*02*.* &%B/%P%1./0*(H0(/0*-.)(*&(1",(*#+*12N2:(,.0%J(*(/0(,:,%&(*.::,2.1'(&*0',((* #%$$%2/* :(2:$(Y* '.$P * 0'(* U2,$)]&* :2:"$.0%2/]R* [/* 0'(* <A* 0'(+* 12-(* %/* 0U2* -.%/*0+:(&*c*g^2/.*G%)(*72N2:(,.0%J(&Y]*./)*g72--"/%0+*^(/(P%0*621%(0%(&]R ^20'*-.+*.$&2*%&&"(*&'.,(&*":*02*.*-.H%-"-*2P *q>DYDDD*:(,*%/J(&02,Y*U'%1'* -.+* $%-%0* &"::2,0* P,2-* 0'(* U(.$0'+R* 8.1'* %/J(&02,* ,(1(%J(&* .* &%/B$(* J20(* ,(B.,)$(&&*2P *0'(*/"-#(,*2P *&'.,(&*2U/()R


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

Bona fide co-operatives X%J%)(/)&*-.+*#(*:.%)*2"0*02*&'.,('2$)(,&*U%0'2"0*$%-%0Y*./)*&2-(*P"/)%/B* .B(/1%(&*-.+*0,(.0*&"1'*./*2,B./%&.0%2/*.&*:",($+*12--(,1%.$R*32U(J(,Y*0'(* %)(.*2P *.*12N2:*-.+*#(*.00,.10%J(*02*&2-(*&21%.$*%/J(&02,&R*

Community Benefit Societies @(0",/&*02*-(-#(,&*.,(*.$&2*$%-%0()*02*.*g,(.&2/.#$(*12--(,1%.$*,(0",/]R* \/+*:,2P%0&*2J(,*./)*.#2J(*0'%&*K,.0'(,*"/)(P%/()O*.-2"/0*-"&0*#(*"&()*P2,* 0'(*#(/(P%0*2P *0'(*12--"/%0+*0'(*&21%(0+*'.&*#((/*1,(.0()*02*&"::2,0R*5'(+* -.+*&((S*1'.,%0.#$(*&0.0"&*K.$0'2"B'*0'%&*U2"$)*$%-%0*0'(%,*.#%$%0+*02*0,.)(OY* #"0*(J(/*U%0'2"0*0'%&Y*0'(+*-.+*#(*12/&%)(,()*02*#(*g$%S(*.*1'.,%0+]*#+*&2-(* P"/)%/B*.B(/1%(&R*5'(&(*.,(*&%B/%P%1./0*.)J./0.B(&Y*.$0'2"B'*.*)%&.)J./0.B(* %&*0'.0*0'(+*1.//20*#(*&"#&%)%.,%(&*2P *(H%&0%/B*2,B./%&.0%2/&*K"/$(&&*0'(&(*.,(* 12N2:&*2P *&2-(*S%/)*0'(-&($J(&OR \/20'(,* )%&.)J./0.B(* 2P * #20'* S%/)&* 2P * 72N2:* %&* 0'.0* +2",* 12--"/%0+* -.+*#(*$(&&*$%S($+*02*%/1$")(*%/)%J%)".$&*U%0'*(H:(,%(/1(*%/*0'(-*0'./*0'(* "#%f"%02"&*12-:./+*$%-%0()*#+*&'.,(&R*

223


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

Making a Business Plan Ross Jackson G2,*-./+Y*./*%-:2,0./0*.&:(10*2P *(12J%$$.B(*$%J%/B*%&*0'(*1$2&(/(&&*2P *'2-(* ./)* U2,SR* [0* b"&0* -.S(&* 0'(* U'2$(* 12--"/%0+* -2,(* .$%J(* ./)* %/0(,(&0%/B* U'(/*0'(,(*.,(*:(2:$(*.,2"/)*.0*.$$*'2",&*2P *0'(*).+R*9./+*(12J%$$.B(&*.%-* 02* '.J(* .0* $(.&0* `Dr* 2P * 0'(%,* -(-#(,&* U2,S%/B* 2/* &%0(R* 5'(,(P2,(* -./+* (12J%$$.B(,&*U2"$)*%)(.$$+*$%S(*02*(&0.#$%&'*.*&-.$$*#"&%/(&&*%/*0'(%,*'2-(&*2,* %/*.*12--2/*2PP%1(*P.1%$%0+*2/*&%0(Y*#"0*2P0(/*0'(+*$.1S*0'(*#"&%/(&&*(H:(,%(/1(* 02*-.S(*%0*'.::(/R*5'%&*.,0%1$(*%&*./*%/0,2)"10%2/*02*'2U*02*B(0*&"1'*.*&-.$$* #"&%/(&&*2PP *0'(*B,2"/)*c*%R(R*'2U*02*B2*P,2-*.*,2"B'*%)(.*02*.*,(.$*#"&%/(&&R* 5'(*-2&0*%-:2,0./0*022$*P2,*)2%/B*0'%&*%&*.*#"&%/(&&*:$./R

Why bother?

:(;%"60%);'4% )(60%1#H017%3(% .03%"%?(*#3#-0% 60'0?3#($%"3%7(;6% G"$H%#@ %7(;%'"$% *4(2%34"3%7(;% 4"-0%9($0%7(;6% 4()02(6H%"$9% '"$%?60*0$3%"% '($-#$'#$.%'"*0% @(6%340%-#"G#1#37% (@ %7(;6%?6([0'3P

5'(,(* .,(* &(J(,.$* B22)* ,(.&2/&* P2,* 1,(.0%/B* .* #"&%/(&&* :$./* #(P2,(* &(00%/B* ":*&'2:R*!(,'.:&*0'(*-2&0*%-:2,0./0*%&*02*B(0*.*$2./*P,2-*+2",*$21.$*#./SY* 2,*%/J(&0-(/0&*P,2-*+2",*P,%(/)&R*G(U*&0.,0N":&*1./*B(0*B2%/B*U%0'2"0*&2-(* S%/)* 2P * P%/./1%.$* '($:R* [0* %&* .* P.10* 0'.0* +2"* .,(* -"1'* -2,(* $%S($+* 02* B(0* .* :2&%0%J(*,(1(:0%2/*.0*+2",*#./S*%P *+2"*1./*&'2U*0'.0*+2"*'.J(*)2/(*+2",* '2-(U2,S*./)*1./*:,(&(/0*.*12/J%/1%/B*1.&(*P2,*0'(*J%.#%$%0+*2P *+2",*:,2b(10R ^"0*(J(/*%P *+2"*.,(*.-2/B*0'(*:,(1%2"&*P(U*0'.0*)2*/20*/(()*./+*'($:Y* +2"*U%$$*#(*)2%/B*+2",&($P *.*#%B*P.J2",*%P *+2"*'.J(*.*:$./*02*P2$$2UY*U%0'* 1$(.,* #(/1'-.,S&Y* B2.$&* ./)* -(.&",(&* 2P * &"11(&&R* W"&0* #+* :"00%/B* .$$* 0'(* %/P2,-.0%2/* .#2"0* +2",* :,2b(10* %/* U,%0%/B* %/* .* &+&0(-.0%1* U.+* -.+* -.S(* +2"* .U.,(* 2P * 2::2,0"/%0%(&* 2,* :,2#$(-&* 0'.0* +2"* '.)* /20* 12/&%)(,()R* I,* :(,'.:&Y*#+*&'2U%/B*%0*02*.*P,%(/)Y*+2"*U%$$*B(0*&2-(*"&(P"$*1,%0%1%&-*0'.0*1./* -.S(*.*,(.$*)%PP(,(/1(*%/*'2U*+2"*B2*.#2"0*.1'%(J%/B*+2",*B2.$&R [/*0'(*P2$$2U%/B*[*U%$$*&"--.,%i(*0'(*0+:%1.$*12/0(/0&*2P *.*#"&%/(&&*:$./R

Executive summary 9.H%-"-*2/(*:.B(*.0*0'(*#(B%//%/B*2P *+2",*,(:2,0*&"--.,%i%/B*#,%(P$+*0'(* (&&(/0%.$&*2P *U'2*+2"*.,(Y*U'.0*+2"*U./0*02*)2Y*U'+*+2"*U./0*02*)2*%0*./)* 2 24


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225

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Background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k* /20* %/* 0'(* -.%/* ,(:2,0OR* [P * +2"*)2*/20*'.J(*./*(H%&0%/B*12-:./+Y*)(&1,%#(*U'.0*$(B.$*(/0%0+Y*%P *./+Y*+2"* :$./*02*"&(*P2,*2:(,.0%2/&Y*P2,*(H.-:$(*.*12-:./+*$%-%0()*#+*&'.,(&R*G2,*./* (H%&0%/B*2,*:$.//()*12-:./+Y*%0*U2"$)*#(*.*B22)*%)(.*02*.00.1'*0'(*\,0%1$(&* 2P *[/12,:2,.0%2/*%/*./*\::(/)%HR* *[0*%&*'%B'$+*.)J%&.#$(*0'.0*+2"*12/P(,*U%0'*.*$21.$*$.U+(,*P.-%$%.,*U%0'* +2",*0+:(*2P *#"&%/(&&R*3(o&'(*1./*'($:*+2"*)(1%)(*U'%1'*$(B.$*P2,-*U2"$)*#(* -2&0*.::,2:,%.0(*./)*&'2U*+2"*&2-(*&0./).,)*12,:2,.0(*\,0%1$(&Y*U'%1'*+2"* 1./*-2)%P+*02*+2",*:.,0%1"$.,*/(()&R*\*&'.,(*12-:./+*'.&*$%-%0()*$%.#%$%0+Y* U'%1'* '.&* &2-(* .00,.10%2/&Y* #"0* -.+* #(* 2P * $%00$(* :,.10%1.$* 12/&(f"(/1(* %P * +2",*#./S*,(f"%,(&*.*:(,&2/.$*B".,./0((*K*.&*%0*2P0(/*U%$$*U'(/*.*12-:./+*%&* "/)(,1.:%0.$%i()O*02*12J(,*./+*$2&&(&*2/*%0&*(/B.B(-(/0R*h2"*U%$$*:,2#.#$+* /(()*0'(*$.U+(,*P2,*20'(,*-.00(,&*.&*U($$Y*&"1'*.&*(-:$2+((*./)*1"&02-(,* 12/0,.10&R* *[0*%&*.$&2*.)J%&.#$(*02*12/P(,*U%0'*.*$21.$*.112"/0./0Y*U'2*1./*'($:*+2"*02* &(0*":*+2",*.112"/0%/B*&+&0(-Y*./)*.)J%&(*+2"*2/*+2",*$(B.$*,(&:2/&%#%$%0%(&* P2,*,(:2,0%/BY*:.+%/B*J.,%2"&*0.H(&Y*./)*:2&&%#$+*'($:*+2"*02*P%/)*.*:.,0N0%-(* .&&%&0./0*02*)2*0'(*.112"/0%/B*(/0,%(&*./)*:.+*0'(*#%$$&*U'%$(*+2"*P21"&*2/* )(J($2:%/B*0'(*#"&%/(&&R

Market analysis [0*%&*(&&(/0%.$*0'.0*+2"*)2*.*0'2,2"B'*./.$+&%&*2P *$21.$*-.,S(0*12/)%0%2/&*&2* 0'.0*+2"*)2*/20*-.S(*./+*#%B*-%&0.S(&R*\/&U(,*0'(*P2$$2U%/B*f"(&0%2/&R u* T'.0*#"&%/(&&*.-*[*%/j*5'%/S*&:(1%P%1.$$+*.#2"0*0'(*&(B-(/0*+2"*.,(* 0.,B(0%/B*./)*0'(*B(2B,.:'%1.$*.,(.R u* T'2*.,(*-+*:20(/0%.$*1"&02-(,&j*T'.0*%&*0'(*0+:%1.$*:,2P%$(Y*1'.,.1N 0(,%i()Y*P2,*(H.-:$(Y*#+*$21.0%2/Y*&%i(Y*.B(*B,2":Y*()"1.0%2/Y*(01Rj* u* [&*0'(,(*-.,S(0*,(&(.,1'*.J.%$.#$(j*7'(1S*0,.)(*-.B.i%/(&Y*0'(*[/0(,/(0Y* 0,.)(*.&&21%.0%2/&Y*(01R*P2,*%/P2,-.0%2/*2,*&0")%(&*2/*+2",*-.,S(0R*G2,* (H.-:$(Y*U'.0*%&*0'(*&%i(*2P *0'(*-.,S(0j*T'.0*.,(*0'(*0,(/)&j

B40%)(*3% #)?(63"$3%1#$0% @(6%340%G"$HK% "$9%(@30$%340% ($0%'"1';1"309% "*%"%60*;13%(@ % "11%7(;6%#$'()0% "$9%0S?0$*0% ?6([0'3#($*K%#*% 340%G"$H%1("$% 60U;#609P%


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G AIAN ECONOMICS

u* T'.0*%&*0'(*12-:(0%0%2/j*T'2*.,(*0'(*-.b2,*:$.+(,&*%/*+2",*&(B-(/0j* T'.0*.,(*0'(%,*&0,.0(B%(&Y*:,2)"10&Y*)%&0,%#"0%2/*1'.//($&Y*:,%1(&j*T'.0* .#2"0*0'(*-%/2,*:$.+(,&j*\,(*0'(+*.*0',(.0j*T'.0*.,(*+2",*,($.0%J(* &0,(/B0'&*./)*U(.S/(&&(&j*

Products X(&1,%#(* :,(1%&($+* U'.0* :,2)"10* 2,* :,2)"10&* +2"* U%$$* 2PP(,* 02* +2",* 1"&02-(,&R*[0*%&*"&".$$+*.)J%&.#$(*02*$%-%0*0'%&*%/*0'(*#(B%//%/BY*P21"&%/B*2/* 0'(* /(()&* 2P * .* :.,0%1"$.,* &(B-(/0* U'(,(* +2"* #($%(J(* +2"* '.J(* &2-(0'%/B* "/%f"(*2,*12-:(0%0%J(Y*:,(P(,.#$+*#20'R*I/1(*+2"*'.J(*.*#(00(,*P(($*P2,*0'(* -.,S(0Y* +2",* 12-:(0%02,&* ./)* +2",* 1"&02-(,&]* /(()&Y* +2"* &'2"$)* &0.,0* 02* 0'%/S*.#2"0*:,2)"10*)(J($2:-(/0Y*#"0*/20*%/*0'(*P%,&0*&0.B(R*A((:*%0*&%-:$(* %/%0%.$$+R*X(:(/)%/B*2/*+2",*:,2)"10Y*+2"*-.+*/(()*:.0(/0*:,20(10%2/*%P *+2"* )(J($2:()*%0*+2",&($PR*7'(1S*U%0'*+2",*$(B.$*.)J%&(,R

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227


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

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2 28


PR E PA R I NG FEA S I B I L I T Y STU D I E S AN D BU S I N ESS PLAN S

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229


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

Legal Entities for Owning Ecovillage Land Diana Leafe Christian

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Why you need a legal entity â&#x20AC;&#x201C; and before buying your property T'+*)2(&*+2",*(12J%$$.B(*/(()*02*P2,-*.*$(B.$*(/0%0+j*G%,&0Y*+2"]$$*/(()*2/(* 02*:",1'.&(*+2",*:,2:(,0+Y*./)*02*2U/*%0*02B(0'(,*2J(,*0'(*+(.,&R*K5(1'/%1.$$+* .*B,2":*1./*:",1'.&(*:,2:(,0+*.&*.*B,2":*U%0'*/2*$(B.$*(/0%0+Y*#"0*+2"*U%$$* /(J(,0'($(&&* &0%$$* '.J(Y* %/* +2",* B2J(,/-(/0]&* J%(UY* .* g)(P."$0]* $(B.$* (/0%0+Y* -2&0*$%S($+*P,2-*,(.$*(&0.0(*$.UY*./)*0'(&(*.,(*)(P%/%0($+*/20*#(/(P%1%.$*P2,* ./*(12J%$$.B(*:,2b(10RO*6(12/)Y*+2"]$$*/(()*.*$(B.$*(/0%0+Y*U'%1'*12"$)*#(*.* 2 30


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

231

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G AIAN ECONOMICS

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Checklist for choosing a legal entity 3(,(]&*.*1'(1S$%&0*P2,*0'(*$(B.$*(/0%0%(&*+2"*-.+*#(*12/&%)(,%/BC ?R* 32U* U%$$* +2",* 12--"/%0+* '2$)* 0%0$(* 02* $./)j* X2(&* 0'%&* $(B.$* (/0%0+* &"::2,0*%0j* >R* X2(&*0'%&*$(B.$*(/0%0+Y*./)*0'(*U.+*+2"*'2$)*0%0$(*02*$./)Y*.$$2U*+2"* 02*1'22&(*U'2*U%$$*b2%/*+2"*.&*./*(12J%$$.B(*-(-#(,j*KG2,*(H.-:$(Y* %P * %/12-%/B* -(-#(,&* U%$$* #"+* .* $20Y* '2"&(Y* 2,* '2"&%/B* "/%0* %/* +2",* (12J%$$.B(*U%0'*./*%/)%J%)".$*)(()Y*-"&0*+2"*&.+*mh(&n*02*./+2/(*U'2* 1./*:.+*0'(*.&S%/B*:,%1(*./)*-((0*0'(*0(,-&*2P *0'(*&.$(jO =R* X2(&* 0'%&* $(B.$* (/0%0+* 2PP(,* $%.#%$%0+* :,20(10%2/* P2,* (.1'* 2P * +2"* .&* %/)%J%)".$&j MR* 32U* U2"$)* 0'%&* $(B.$* (/0%0+* %/P$"(/1(* #./S&* 2,* :,%J.0(* $(/)(,&* %/* )(1%)%/B*U'(0'(,*02*,(P%/./1(*.*-2,0B.B(*2,*-.S(*.*12/&0,"10%2/*$2./j


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

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Corporations, non-profits, limited liability, double taxation g72,:2,.0%2/]* %&* 0'(* 0(,-* "&()* %/* 8/B$%&'N&:(.S%/B* 12"/0,%(&* P2,* .* $(B.$* &0,"10",(* 0'.0Y* $%S(* .* :(,&2/Y* 1./* (/0(,* %/02* 12/0,.10&Y* #"+* ./)* &($$* B22)&* ./)* &(,J%1(&Y* #2,,2U* -2/(+Y* ./)* :.+* 0.H(&R* [0* %&* 12/&%)(,()* ./* (/0%0+*

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

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235


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

Buying in â&#x20AC;&#x201C; the Effect of an Ecovillageâ&#x20AC;&#x2122;s Economic Choices Tony Sima How much does it cost to live there? 5'.0]&*0'(*f"(&0%2/*U(*B(0*-2&0*2P0(/*'(,(*.0*X./1%/B*@.##%0*812J%$$.B(R* 8J(,+2/(*U./0&*02*S/2U*U'(0'(,*0'(+*1./*.PP2,)*02*$%J(*&"&0.%/.#$+*2,*/20R* IP *12",&(Y*0'(*./&U(,*%&*/20*.*&%-:$(*2/(*P2,*"&Y*2,*P2,*-2&0*(12J%$$.B(&Y*#"0* 0'(*./&U(,*-.S(&*.*'"B(*)%PP(,(/1(*02*U'2*'.&*.11(&&*02*0'(&(*(12N$%J%/B* (H:(,%-(/0&R 9./+*(12J%$$.B(&*.,(*#.&()*2/*0'(*%/0(/0%2/.$*12--"/%0+*-2)($*U%0'* .* B,2":* 2P * :(2:$(* 1'22&%/B* 02* $%J(* 02B(0'(,* U%0'* .* B2.$* 2P * $%J%/B* -2,(* &"&0.%/.#$+R*62-(*%/&0(.)*U2,S*U%0'*./*(H%&0%/B*:2:"$.0%2/*U%0'*0'(*&.-(* B2.$*./)*&2-(*.,(*.*-%HR [/*(%0'(,*1.&(*(12/2-%1*1'2%1(&*U%$$*'.J(*.*#%B*%-:.10*2/*U'2*%&*:.,0*2P * >$%0'(-#11".0*% 24060%1"$9%"$9n 0'(*(12J%$$.B(R*[/*(12J%$$.B(&*U'(,(*$./)*./)o2,*'2"&%/B*%&*b2%/0$+*2U/()*#+* 0'(*J%$$.B(*0'(,(*%&*0'(*f"(&0%2/*2P *#"+N%/*P((&Y*12&0*02*#"%$)*'2"&%/BY*$(.&(* (6%4(;*#$.%#*% [(#$317%(2$09%G7% P((&Y*,(/0*./)*0'(*$%S(R*[/*(12J%$$.B(&*U'(,(*:,2:(,0+*%&*/20*b2%/0$+*2U/()Y*0'(* 1'2%1(*2P *$21.0%2/&*U%$$*2P0(/*)(0(,-%/(*0'(&(*P.102,&*U%0'*(H%&0%/B*'2"&%/B* 340%-#11".0%34060% &021S*.J.%$.#$(*.0*&"#&%)%i()*./)o2,*-.,S(0*,.0(&R #*%340%U;0*3#($% 4(0]&*$22S*.0*.*J.,%(0+*2P *1'2%1(&*(12J%$$.B(&*'.J(*-.)(R

(@ %G;7M#$%@00*K% '(*3%3(%G;#19% Fully communal 4(;*#$.K%10"*0% @00*K%60$3%"$9%340% 5U%/* I.S&* 12--"/%0+* %/* ,",.$* l%,B%/%.* U.&* P2"/)()* %/* ?_aE* ./)* 2/$+* ,(1(/0$+* '.&* &0.,0()* 12/&%)(,%/B* %0&($P * ./* (12J%$$.B(R* 5'(* 12--"/%0+* 2P * 1#H0P%

.#2"0* ?DD* :(2:$(* %&* P"$$+* %/12-(N&'.,%/BY* &%-%$.,* 02* 0'(* 0,.)%0%2/.$* [&,.($%* A%##"0i%-R*\0*5U%/*I.S&*0'(,(*%&*/2*#"+N%/*P((*./)*/2*2/B2%/B*P((&Y*2/$+*.* U2,S*,(f"%,(-(/0*2P *M`*2,*&2*'2",&*:(,*U((SR*9(-#(,&*S((:*./+*:,(J%2"&* .&&(0&Y* #"0* .$$* %/12-(* B2(&* 02* 5U%/* I.S&* ./)* /2* (f"%0+* %&* .11"-"$.0()* )",%/B*2/(]&*-(-#(,&'%:R*T'(/*+2"*$(.J(Y*+2"*0.S(*U'.0*+2"*#,2"B'0*%/R ^.&()*2/*0'%&*(12/2-%1*1'2%1(*5U%/*I.S&*%&*J(,+*(12/2-%1.$$+*.11(&&%#$(*

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

237

02*:(2:$(*2P *./+*(12/2-%1*$(J($R*\/+2/(*1./*b2%/*./)*&'.,(*(&&(/0%.$$+*0'(* &.-(* -%))$(* 1$.&&* $%P(&0+$(* .&* .$$* 20'(,* -(-#(,&R* </P2,0"/.0($+Y* 0'(&(* 1'2%1(&*P%$0(,*2"0*./+2/(*/20*%/0(,(&0()*%/*12--"/.$*$%J%/B*./)*0'2&(*U'2* P(($*0'(*/(()*02*.11"-"$.0(*:(,&2/.$*.&&(0&*P2,*0'(-&($J(&*2,*0'(%,*:,2B(/+R* 62-(*U2"$)*&.+*0'.0*5U%/*I.S&*'.&*'%B'(,*0",/2J(,*%/*-(-#(,&'%:*)"(* 02*%0*#(%/B*&2*(12/2-%1.$$+*(.&+*02*b2%/*./)*$(.J(*#"0*0'.0*%&*./(1)20.$R

Rental property 42&*\/B($(&*812J%$$.B(*%&*./*",#./*(12J%$$.B(*%/*&2"0'(,/*7.$%P2,/%.R*5'(%,* /2/N:,2P%0*'.&*#2"B'0*.*1$"&0(,*2P *.:.,0-(/0*#"%$)%/B&*%/*.*/(%B'#2,'22)* ./)*,(/0&*0'(-*02*-(-#(,&Y*#20'*0'2&(*U'2*'.J(*12-(*&:(1%P%1.$$+*02*$%J(* %/*0'(*(12J%$$.B(*./)*&2-(*:,(N(H%&0%/B*,(&%)(/0&R*@(/0*%&*.0*2,*#($2U*-.,S(0* ,.0(*./)*%0*%&*B(/(,.$$+*12/&%)(,()*./*.PP2,).#$(*:$.1(*02*$%J(*12-:.,()*U%0'* %0&*&",,2"/)%/B&R 6%-%$.,* 02* 5U%/* I.S&Y* 4\* 812J%$$.B(* %&* f"%0(* .11(&&%#$(* 02* :(2:$(* U%0'2"0*.&&(0&Y*#"0*%0*)2(&*,(f"%,(*:(2:$(*02*'.J(*.*&2",1(*2P *%/12-(*02*-((0* 2/B2%/B*,(/0.$*P((&R*5'%&*.$$2U&*P2,*'%B'*(12/2-%1*)%J(,&%0+*#"0*-.+*.$&2* '.J(*0'(*&.-(*%&&"(*U%0'*0",/2J(,R*812/2-%1.$$+*'2-(2U/(,&*'.J(*-2,(* %/1(/0%J(*02*%-:,2J(*0'(%,*:,2:(,0+*0'./*,(/0(,&Y*#"0*&%/1(*0'(*(12J%$$.B(,&* '.J(*.*&0,2/B*12--%0-(/0*02*0'(%,*:,2b(10*[]-*&",(*0'(,(*%&*-20%J.0%2/*P2,* -.%/0(/./1(*./)*%-:,2J(-(/0R

Leased land – no buy-in X./1%/B*@.##%0*812J%$$.B(*%&*&(0*":*U%0'*.*/2/N:,2P%0*U'%1'*2U/&*0'(*$./)Y* U%0'* %/)%J%)".$&Y* P.-%$%(&Y* ./)* B,2":&* $(.&%/B* &-.$$* :.,1($&* P,2-* 0'(* X@* 4./)*5,"&0*P2,*.*-2/0'$+*P((R*5'(,(*%&*/2*#"+N%/*P((*./)*0'(*-2/0'$+*P((&* .,(*S(:0*$2U*K.#2"0*t>`o:(,&2/*)(:(/)%/B*2/*&%i(*2P *:.,1($OR*32"&%/B*%&*/20* :,2J%)()*&2*-2&0*-(-#(,&*'.J(*.*&%B/%P%1./0*":*P,2/0*12&0*P2,*#"%$)%/B*2,* #"+%/B*'2"&%/B*0'2"B'*&2-(*,(/0.$*2:0%2/&*.,(*.J.%$.#$(R*9(-#(,&*,(0.%/* (f"%0+*%/*0'(%,*'2-(&*./)*1./*&($$*0'(-*02*20'(,*-(-#(,&*%P *0'(+*$(.J(R 5'%&*-2)($*.$$2U&*P2,*#,2.)*.11(&&*0'2"B'*0'(,(*.,(*&0%$$*P%$0(,&*#.&()*2/* 0'(*.J.%$.#%$%0+*2P *'2"&%/B*./)*0'(*2/B2%/B*P((&R*</P2,0"/.0($+Y*0'%&*&+&0(-* %&* :,()%1.0()* 2/* X@* '.J%/B* #2"B'0* 1'(.:* $./)* %/* .* &2-(U'.0* ,(-20(* $21.0%2/Y* .* &%-%$.,* &+&0(-* %/* .* -2,(* (H:(/&%J(* $21.0%2/* U2"$)* ,(f"%,(* .* -"1'*'%B'(,*2/B2%/B*P((*./)o2,*.*#"+N%/*P((R*5'(*,",.$*$21.0%2/*.$&2*-.S(&* %0*1'.$$(/B%/B*P2,*:(2:$(*02*P%/)*%/12-(*U2,S*#"0*U%0'*P((&*&2*$2U*:(2:$(*1./* $%J(*2/*t=N?>YDDD*:(,*+(.,*)(:(/)%/B*2/*0'(%,*$%P(&0+$(*./)*'.#%0&R

Leased land, with buy-in fee 8.,0'.J(/*812J%$$.B(*/(.,*\&'(J%$$(Y*Z7*'.&*.*&%-%$.,*&+&0(-*02*X./1%/B* @.##%0*%/*0'.0*%0*2U/&*%0&*=DDL*.1,(&*b2%/0$+*./)*B%J(&*$2/BN0(,-*$(.&(&*02* -(-#(,&R* \0* 8.,0'.J(/* .* -(-#(,* '.&* %/%0%.$* P((&* ":U.,)&* 2P * t>DYDDDY* .* -2)(&0* .-2"/0* 12-:.,()* 02* '2-(* :,%1(&* %/* 0'(* 1%0+Y* #"0* .* &%B/%P%1./0*

&'(-#11".0%"3% >34"'"%#$%;?*3"30% L02%:(6H%#*% G"*09%($%340%'(M 4(;*#$.%)(901% 24060%#$9#-#9;"1% 4()0*%"60% (2$09%G7% )0)G06*%"$9% "60%G(;.43%"$9% *(19%($%340%(?0$% )"6H03P


2 38

G AIAN ECONOMICS

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f"%,(*./*'2",&]*),%J(*02*\&'(J%$$(R

Homes at market rate 812J%$$.B(*.0*[0'.1.*%/*":&0.0(*Z(U*h2,S*%&*#.&()*2/*0'(*12N'2"&%/B*-2)($* U'(,(*%/)%J%)".$*'2-(&*.,(*2U/()*#+*-(-#(,&*./)*.,(*#2"B'0*./)*&2$)*2/* 0'(*2:(/*-.,S(0R*8l[*,(0.%/&*b2%/0*2U/(,&'%:*2P *.*$.,B(*.,(.*2P *2:(/*&:.1(* ./)*.B,%1"$0",.$*.,(.R*32-(&*12&0*.::,2H%-.0($+*t>DDYDDD*02*:",1'.&(*U%0'* #./S*-2,0B.B(&*.J.%$.#$(R*I11.&%2/.$$+*,(/0.$&*.,(*.J.%$.#$(*%/*0'(*t?DDDo -2/0'*,./B(R5'%&*&+&0(-*-.S(&*8l[*.11(&&%#$(*02*./+2/(*U'2*1./*.PP2,)* '2-(*2U/(,&'%:*K.#2"0*EDr*%/*0'(*<6O*./)*%&*$(&&*0'./*0'(*-()%./*'2-(* :,%1(*%/*[0'.1.*K0'2"B'*'%B'(,*0'./*0'(*/.0%2/.$*-()%./OR* 5",/2J(,*%/*-2&0*12'2"&%/B*%&*f"%0(*$2UY*U%0'*&"1'*.*&%B/%P%1./0*%/J(&0N -(/0R*9(-#(,&*,(0.%/*(f"%0+*%/*0'(%,*'2-(&*U'%1'*%/1,(.&(*%/*J.$"(*U%0'*0'(* -.,S(0R*5'%&*&+&0(-*%&*J(,+*.00,.10%J(*02*0'(*-%))$(N1$.&&*.&*%0*%&*J(,+*&%-%$.,* 02* 0,.)%0%2/.$* 2U/(,&'%:* ./)* (12/2-%1* -2)($&R* [/12-(* 2::2,0"/%0%(&* .#2"/)*%/*/(.,#+*[0'.1.Y*.*&'2,0*),%J(*.U.+R

What conclusions can we draw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f"(&0%2/&*1$2&($+*./)*%/0(/0%2/.$$+Y*./)*1'22&(*0'(%,*(12/2-%1*&0,"1N 0",(*02*-.01'*0'(%,*J.$"(&Y*U%0'*1$.,%0+*.#2"0*0'(*(H:(10()*(PP(10&R


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