The document discusses the need to reform capitalism and create a more equitable economy by (1) redefining wealth to include non-monetary factors, (2) shifting to sustainable banking where all investments require sustainability, (3) separating financial regulators from the regulated, and (4) reforming tax systems to close loopholes and tax havens. The goal is to move away from prioritizing profits and toward prioritizing people and the planet.

1. The New Earth Economy
Integrating Earth and Humanity
Guy Dauncey, January 2012
www.earthfuture.com

2. What went wrong?
How did this…

3. Gross
Domestic
Product

4. turn into …

5. Gross
Depletion
of the
Planet?

14. ©Smithore Dreamstime.com

29. A "super-entity" of 147 very tightly knit companies control 40% of the total
wealth in the global economic network.
New Scientist: An analysis of the relationships between 43,000
transnational corporations has identified
a relatively small group of companies, mainly banks, with
disproportionate power over the global economy.

30. The top 20 of the 147 superconnected companies
1. Barclays plc
2. Capital Group Companies Inc
3. FMR Corporation
4. AXA
5. State Street Corporation
6. JP Morgan Chase & Co
7. Legal & General Group plc
8. Vanguard Group Inc
9. UBS AG
10. Merrill Lynch & Co Inc
11. Wellington Management Co LLP
12. Deutsche Bank AG
13. Franklin Resources Inc
14. Credit Suisse Group
15. Walton Enterprises LLC
16. Bank of New York Mellon Corp
17. Natixis
18. Goldman Sachs Group Inc
19. T Rowe Price Group Inc
20. Legg Mason Inc New Scientist October 19, 2011

31. Where does this lead us?
• Earth - Tragedy of the Commons
• Organized assault on regulations
• Huge fat-cat bonuses
• Banks “too big to fail”
• No concept of real wealth
• Financial markets out of control
• Tax havens - pirates’ paradise
• Unfair “free” trade
• Debt out of control
• Growing unemployment
• Speculation on food, homes
• Laughing all the way to the bank
• Banks get $ trillion bail-out
• Capital becomes its own creation
• Money corrupts politics
• Repeat until bankrupt …

66. We need…
A Green Economy
Harmony
with Nature
True Sustainability

67. 100% Sustainable Communities
©Moutwtrng Dreamstime.com

68. In the beginning, there was
The Earth

69. with its own complex
ecology economy

70. Element 1: The Earth

71. And then there were humans…..
Building our
human
economy …

72. Element 2: The Humans
Human
economy
Earth’s economy

73. Element 2: More Humans
Human
economy
Earth’s economy

74. We took from Earth’s ecosystem
with almost no thought for the whole …

75. Without any interconnecting limits,
the human economy consumes Earth’s economy

76. The human economy grows …
Human Economy
Element
Earth’s Economy

77. In the absence of constraint, it behaves like a
cancer cell…

78. Looking more closely at the Human Economy…
Human Economy
Element

79. It can be designed to be very cooperative……
JM Keynes … Joseph Stiglitz … Joseph Schumpeter … Nicholas
Kaldor … Ha-Joon Chang … Arthur Pigou … Amartya Sen …

80. Or very competitive……
Milton Friedman … Herbert Simon … Friedrich Hayek …
libertarian, free market economists

81. But what is its goal, its purpose?
?
iness
Happ Wealt
h?
?
Civiliza
tion?
Money?
?
ogress
Pr
Market
Growt ?
h? Share

82. What is its goal, its purpose?
“He who gets the most toys wins?”

83. And Earth loses?

84. In pure free market economics, these are the only
goals …
Wealt
h
rk et
Ma e
ha r Money
S
Growt
h

85. So let’s go back, and redesign the system
Human
economy
Earth’s economy

86. What are humanity’s true goals?
Human
economy
Earth’s economy
Human progress
Harmony with Nature
Freedom from hunger and poverty
Meaning, happiness
Freedom, fulfilment
Peace

87. What are our human goals?
MIND SPIRIT
BODY HEART

88. What are the human economy’s goals?
Take 2:
SP
D
IN
IR
M
IT
B
T
O
AR
D
Y
HE

89. What are the human economy’s goals?
Take 2:
Learning
Research
SP
Education
D
Innovation
IN
IR
M
IT
Vision
B
T
O
AR
D
Y
HE

90. What are the human economy’s goals?
Take 2:
Learning
Research
SP
Education
D
Innovation
IN
IR
M
IT
Vision
Energy
B
T
Transport O
AR
Food D
Y
HE
Shelter
Health
Material goods

91. What are the human economy’s goals?
Take 2:
Purpose
Learning Meaning
Research Healing
SP
Education
D
Love
Innovation
IN
IR
M
IT
Vision
Energy
B
T
Transport O
AR
Food D
Y
HE
Shelter
Health
Material goods

92. What are the human economy’s goals?
Take 2:
Purpose
Learning Meaning
Research Healing
SP
Education
D
Love
Innovation
IN
IR
M
IT
Vision
Energy
B
T
Transport O Family
AR
Food D Friends
Y
HE
Shelter Community
Health Neighbourhood
Material goods

93. What are the human economy’s goals?
Take 2:
Purpose
Learning Meaning
Research Healing
SP
Education
D
Love
Innovation
IN
IR
M
IT
Vision
Energy
B
T
Transport O Family
AR
Food D Friends
Y
HE
Shelter Community
Health Neighbourhood
Material goods
Total = “Wealth”

94. Businesses
D
SP
IN
IR
M
IT
T
AR
B
O
HE
D
Y

95. D
SP
IN
IR
M
IT
Business
Connected
to Nature
T
AR
B
O
HE
D
Y
Environmental regulations
Green business certification
Annual sustainability reports

96. D
SP
IN
IR
M
IT
Business
Connected Connected to
to Nature Community
T
AR
B
O
HE
D
Y
Environmental regulations
Green business certification Community board members
Annual sustainability reports Local business support network

97. Employee share-ownership
Co-op ownership
Right to Unionize
D
SP
IN
Connected to
IR
M
IT
Workers
Business
Connected Connected to
to Nature Community
T
AR
B
O
HE
D
Y
Environmental regulations
Green business certification Community board members
Annual sustainability reports Local business support network

98. Corporate social responsibility Employee share-ownership
Socially responsible investment Co-op ownership
Community finance Right to Unionize
D
SP
IN
Connected to Connected to
IR
M
IT
Investors Workers
Business
Connected Connected to
to Nature Community
T
AR
B
O
HE
D
Y
Environmental regulations
Green business certification Community board members
Annual sustainability reports Local support networks

99. D
SP
IN
IR
M
IT
Local Economy
Support Networks
Emilia Romagna, Italy
T
AR
B
O
HE
D
Y

100. Emilia Romagna, Italy
• Population 4.4 million
• $$$, top ten European regions
• 32% self-employed
• 35% industry, 7% agriculture
• 76% people work in small
business with 4-5 workers
• Italy’s 4th largest exporter
• 400,000 enterprises
• 15,000 cooperatives
• Strong tradition of reciprocity,
regional economy mutual
support system
• High density of banks
• Regional credit system with
close ties to local enterprises
• Lowest unemployment
• Highest rate of citizen
satisfaction in Italy

104. Banks
D
SP
IN
IR
M
IT
T
AR
B
O
HE
D
Y

105. D
SP
IN
IR
M
IT
Bank
or
Credit Union
Connected
to Nature
T
AR
B
O
HE
D
Y
Green banking certification
Annual sustainability reports

106. D
SP
IN
IR
M
IT
Bank
or
Credit Union
Connected Connected to
to Nature Community
T
AR
B
O
HE
D
Y
Green banking certification Community finance
Annual sustainability reports Community representation

107. Small enough to fail
Real world banking
Well regulated
Transparency
D
SP
IN
Connected to
IR
M
IT
Government
Bank
or
Credit Union
Connected Connected to
to Nature Community
T
AR
B
O
HE
D
Y
Green banking certification Community finance
Annual sustainability reports Community representation

108. Socially responsible investment Small enough to fail
Purpose driven investment Real world banking
Transparency Well regulated
Transparency
State banks
D
SP
IN
Connected to Connected to
IR
M
IT
Investors Government
Bank
or
Credit Union
Connected Connected to
to Nature Community
T
AR
B
O
HE
D
Y
Green banking certification Community finance
Annual sustainability reports Community representation

109. D
SP
IN
IR
M
IT
Finance
Companies
T
AR
B
O
HE
D
Y

110. D
SP
IN
IR
M
IT
Finance
Companies
Connected
to Nature
T
AR
B
O
HE
D
Y
Green banking certification
Annual sustainability reports

111. Real world lending ratios
Transparency
D
SP
IN
Connected to
IR
M
IT
Investors
Finance
Companies
Connected
to Nature
T
AR
B
O
HE
D
Y
Green banking certification
Annual sustainability reports

112. Real world lending ratios Small enough to fail
Transparency Tightly regulated
Transparency
D
SP
IN
Connected to Connected to
IR
M
IT
Investors Government
Finance
Companies
Connected
to Nature
T
AR
B
O
HE
D
Y
Green banking certification
Annual sustainability reports

113. Real world lending ratios Small enough to fail
Transparency Tightly regulated
Transparency
D
SP
IN
Connected to Connected to
IR
M
IT
Investors Government
Finance
Companies
Connected Connected to
to Nature Global level
T
AR
B
O
HE
D
Y
Green banking certification Global finance
Annual sustainability reports transparency network

114. D
SP
IN
IR
M
IT
Governing
Informing Nucleus Supporting
Regulating
T
AR
B
O
HE
D
Y

115. Syntropic Self-Organization
• Financial interflows
• Regulatory forecasts
• Progress indicators
Maximizing Ecological Wealth
• Key indicators
• Ecological capital value
• Ecological governance
Responsible Governance
• Monetary policy, interest rates, inflation
• Taxation
• Benefits, welfare
Building a Desirable Future
• Future-Oriented Investments
• Directed subsidies and tax-breaks
• Training and retraining

118. The Flexibility of Capitalism
Community
Engaged
North Drug
Korea trade
Totally regulated Not regulated
100% state controlled 100% free market

119. The Flexibility of Capitalism
Community
Engaged
Neo-liberalism
North Drug
Korea Canada USA trade
Totally regulated Not regulated
100% state controlled 100% free market

120. The Flexibility of Capitalism
Community
Engaged
Japan
Neo-liberalism
North China Scandinavia Drug
Korea Canada USA trade
Totally regulated Not regulated
100% state controlled 100% free market

121. The Flexibility of Capitalism
Community
Engaged
Progressive
centrism Japan
South Korea South Korea
1950-1990 1990 - Neo-liberalism
North China Scandinavia Drug
Korea Canada USA trade
Totally regulated Not regulated
100% state controlled 100% free market

122. The Flexibility of Capitalism
Community
Mondragon
Engaged
Emilia
Romagna
Progressive
centrism Japan
South Korea South Korea
1950-1990 1990 - Neo-liberalism
North China Scandinavia Drug
Korea Canada USA trade
Totally regulated Not regulated
100% state controlled 100% free market

123. So What are the Remedies?
OMEGA E - Equitable Economy
1. Redefine Wealth, so that it is no longer just money. New indicators.
OMEGA E - Equitable Economy
 R edefine wealth, so that it is no longer just money.
2. Shift toSh i f t to Real Sustainable Banking. Every investment requires sustainability. State banks.
 Real Sustainable Banking
Every  Sjail-time for negligence and recklessness, tricks and games.North Dakota State bank. Private +
investment requiresthe Regulated, and re-assertIntroduce acontrol regulations, with
e p arate the Regulators from
sustainability. financial Financial Transactions
credit unions. Financial Transactions Tax. and the 5-year rule restricting
Tax. Re-assert conflict of interest rules in the financial sector,
employment transfers between industry and its regulating or related agencies. Re-impose the pre-
2000 commodities trading rules, to end financial speculation. Financial Activities and Investment
Reform Act (FAIR)
3. Separate the Regulators from the Regulated
 R eform the tax system, to reduce inequity and make it fair. Re-impose wealth and inheritance
Re-assert financial control regulations. Jail-time for negligence and recklessness.
taxes, close the loopholes.
1. Close the world’s tax havens, and recapture all flight capital. Close down the world’s tax
Financial Activities and Investment Reform Act (FAIR)
havens, by means of a global treaty, and a Tax Evasion Complicity Law which would make it a
criminal offense to knowingly serve as a fund manager, accountant, trustee, lawyer or corporate
nominee for a known tax evader.
4. Reform the Tax System. Re-impose wealth and inheritance taxes, close the
loopholes. Close the World’s Tax Havens, recapture all flight capital. Global
treaty. National Tax Evasion Complicity Laws - criminal offense to knowingly
serve as a fund manager, accountant, trustee, lawyer or corporate nominee for a
known tax evader.
5. New Global Financial and Trade Treaties. Fair Trade Organization. New World
Bank and IMF regimes. Progressive centrism allows developing nations to use
trade and capital movement barriers.

124. So What are the Remedies?
OMEGA M - Meaningful Work
OMEGA E - Equitable Economy
 R edefine wealth, so that it is no longer just money.
1. Think Like a Village. Build an entrepreneurial local culture
 Sh i f t to Real Sustainable Banking. Every investment requires sustainability. State banks.
 S e p arate the Regulators from the Regulated, and re-assert financial control regulations, with
and economy. Emilia Romagna
jail-time for negligence and recklessness, tricks and games. Introduce a Financial Transactions
Tax. Re-assert conflict of interest rules in the financial sector, and the 5-year rule restricting
employment transfers between industry and its regulating or related agencies. Re-impose the pre-
2000 commodities trading rules, to end financial speculation. Financial Activities and Investment
2. Share the Work, Share the Wealth. Employee share
Reform Act (FAIR)
 R eform the tax system, to reduce inequity and make it fair. Re-impose wealth and inheritance
taxes, close the loopholes.
ownership, coops
1. Close the world’s tax havens, and recapture all flight capital. Close down the world’s tax
havens, by means of a global treaty, and a Tax Evasion Complicity Law which would make it a
criminal offense to knowingly serve as a fund manager, accountant, trustee, lawyer or corporate
nominee for a known tax evader.
3. Put Your Money Where Your Heart is. Local banking for
purpose and social meaning.
4. Welfare Reform.
5. Go Green. Green business certification program , trading
requirements

125. Equitable Earth Economy Principles
1. Nature is the planet’s fundamental economy
2. A healthy human Earth economy is the self-organized
expression of a culture’s desired future on an
ecologically sustainable planet
3. In a healthy human Earth economy, competition,
cooperation are in a permanent dance, watched and
overseen by Nature’s limits
4. Human nature is fallible, so regulation and fair taxes
are essential.
5. Nature bats last.

126. Guy Dauncey
www.earthfuture.com