This document discusses new economic models that promote sustainability. It provides examples of circular, steady state, and sharing economies. The new models emphasize community ownership, reducing waste, and building community. They recognize the interdependence of the environment, society, and economy. Some key aspects of new economic models include local production, alternative currencies, decentralization, cooperation, equitable distribution of wealth, and participation. The document suggests several organizations to find more information on new economic thinking and alternative economic approaches.

1. What is New Economics?
Lauren Standal, Matt Evans, Edward Thach, Dalia Zaghal, Nancy Landrum
INTRODUCTION
WHY IT MATTERS
EXAMPLES
CHARACTERISTICS
RESOURCES
REFERENCES
CONTACT
There are many different examples of new economy
models. Our display focuses on these three:
• Circular economy, where resource use is seen as
circular rather than linear and waste production is
minimized; and a sharing economy, where
materials and resources are shared in
communities to reduce wasteful reproduction.
• Steady State economy, in which economies
remain stable in size rather than continually
growing.
• Sharing economy, where resources are communal
to reduce the need for excess consumption.
Additional models include:
• Solidarity economy
• Provisioning economy
• Sustaining economy
• Collaborative economy
• Resilient economy
• Community economy
• Gift economy
• Caring economy
• Participatory economy
There are many reasons why New Economic models
should be considered. These models promote:
• Community ownership and cooperatives
• Repairing and sharing of equipment, knowledge,
and skills
• Reduction of waste
• Community building
The important emphasis of all these models is the
equality that is given to society and the
environment. These models understand that with
out the resources the environment provides and
with out protecting the society we all are a part of,
there would be no economy. The understanding that
democracy and justice are imperative to create a
system that can be sustained, is the main idea of
New Economic theory.
Although each model differs in its approach, there
are similarities that are intertwined in each model.
• Focus on the interconnectivity of people and the
planet
• Economic success being dependent on
environmental success
• Smaller, more local production
• Divestment away from external communities, and
in particular those industries participating in the
extraction of natural resources
• New way of approaching success and measuring
growth
• Alternative currencies and credits
• Decentralization of decision-making
• New forms of government that support mutuality
• Cooperation and collaboration
• Equitable distribution of wealth
• Relies on alternative indicators of progress aside
from growth of economic capital
• Encourages all people to participate in new
economics
• Emphasis on participation of the marginalized
To find more information on New Economics, visit:
• Institute for New Economic Thinking
• New Economic Forum
• New Economy Coalition
• New Economy Working Group
• Schumacher Center for New Economics
• The Next System Project
• The Real Economy Lab
Capitalism, our current economic model, is a model
that states that the world can have infinite growth.
However, creating limitless growth on a limited
planet is impossible. The environment that provides
the resources that fuel the economy is not limitless,
and the extraction of resources cannot continue
forever. The destruction of the environment for
economic gain is not sustainable.
Many theorists around the world have begun to see
the flaws in the current economic model of
capitalism and have created alternative and
complementary models that focus on strong
environmental sustainability. However, they also see
the need for social sustainability and see equity and
justice as important parts of a functioning economy
that provides for all citizens.
Examples of think tanks that have proposed new
models include the New Economics Foundation, the
Schumacher Center for a New Economics, Institute
for New Economic Thinking, and many more. These
new models propose a new system based on equity
and community rather than exploitation and
competition.
Mommaerts, M. & White, K. (2014). Weaving the community
resilience and new economy movement.
The Next System Project. http://www.thenextsystem.org/Nancy E. Landrum, Ph.D.
Loyola University Chicago
Quinlan School of Business & Institute of
Environmental Sustainability
Email: nlandrum@luc.edu
Phone: 773-508-8953