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Visions of Regional Economies in a Great Transition World (Rosen and Schweickart) Reinventing Economies for the Twenty-First Century 5 Visions of Regional Economies in a Great Transition World Richard A. Rosen and David Schweickart GTI Paper Series 4 Frontiers of a Great Transition Tellus Institute 11 Arlington Street Boston, MA 02116 Phone: 1 617 2665400 Email: [email protected] Tellus Web: http://www.tellus.org GTI Web: http://www.gtinitiative.org © Copyright 2006 by the Tellus Institute Series Editors: Orion Kriegman and Paul Raskin Manuscript Editors: Faye Camardo, Loie Hayes, Pamela Pezzati, Orion Stewart Cover Image: Stephen Bernow and Devra Ehrenberg Printed on recycled paper The Great Transition Initiative GTI is a global network of engaged thinkers and thoughtful activists who are committed to rigorously assessing and creatively imagining a great transition to a future of enriched lives, human solidarity, and a healthy planet. GTI’s message of hope aims to counter resignation and pessimism, and help spark a citizens movement for carrying the transition forward. This paper series elaborates the global challenge, future visions, and strategic directions. GTI Paper Series Frontiers of a Great Transition The Global Moment and its Possibilities 1. Great Transition: The Promise and Lure of the Times Ahead (Raskin, Banuri, Gallopín, Gutman, Hammond, Kates, Swart) Planetary civilization, global scenarios, and change strategies 2. The Great Transition Today: A Report From the Future (Raskin) An optimistic vision of global society in the year 2084 Institutional Transitions 3. Global Politics and Institutions (Rajan) Principles and visions for a new globalism 4. Visions of Regional Economies in a Great Transition World (Rosen and Schweickart) Reinventing economies for the twenty-first century 5. Transforming the Corporation (White) Redesigning the corporation for social purpose 6. Trading into the Future: Rounding the Corner to Sustainable Development (Halle) International trade in a sustainable and equitable world 7. Security in the Great Transition (Knight) Imagining a transition to a world without war 8. How Technology Could Contribute to a Sustainable World (Vergragt) Technological innovation and human choice Human and Environmental Dimensions 9. Great Transition Values: Present Attitudes, Future Changes (Kates, Leiserowitz, Parris) Alignment and tension between contemporary values and a new global humanism 10. The Role of Well-being in a Great Transition (Stutz) Improved quality-of-life as an attractor for dematerialized societies 11. Feminist Praxis: Women’s Transnational and Place Based Struggles for Change (Harcourt) Lessons from women's movements for a Great Transition 12. Sustainable Communities and the Great Transition (Goldstein) New frontiers for transforming cities 13. Climate Change: Redemption through Crisis (Kartha) The climate challenge and paths to an equitable solution 14. Resilience and Pluralism: Ecosystems and Society in a Great Transition (Lucas, Bennett) Human impacts on the biosphere and socio-ecological management Crystallizing a Systems Shift 15. Dawn of the Cosmopolitan: The Hope of a Global Citizens Movement (Kriegman) Prospects for a global movement and what it might look like 16. World Lines: Pathways, Pivots and the Global Future (Raskin) Dynamics of global change: crisis, choice, and action Authors Richard Rosen is a Senior Fellow at the Tellus Institute where he has thirty years of research experience in energy systems planning, environmental impacts, and economics. A major focus has been the economics, planning, regulation, and deregulation of the electricity industry. He has conducted scores of studies, testified widely, and published articles on these issues. Rosen holds a doctorate in theoretical physics from Columbia University. David Schweickart is Professor of Philosophy at Loyola University Chicago. He is the author of several books: After Capitalism (2002), Market Socialism: The Debate Among Socialists (1998, coauthored), Against Capitalism (1993), and Capitalism or Worker Control? An Ethical and Economic Appraisal (1980). He has written numerous articles in social and political philosophy, several of which have been widely translated. Schweickart holds two doctorates, in mathematics from the University of Virginia and in philosophy from Ohio State University. Table of Contents Introduction ..................................................................................................................................... 1 The Theory and Practice of Modern Economic Systems ................................................................ 2 Varieties of Capitalism .......................................................................................................... 2 Varieties of Socialism ............................................................................................................ 6 Lessons from the Past ............................................................................................................ 8 Great Transition Economic Prototypes ......................................................................................... 13 Agoria .................................................................................................................................. 16 Ecodemia .............................................................................................................................. 20 Arcadia ................................................................................................................................. 27 Concluding Remarks ..................................................................................................................... 31 References .................................................................................................................................. 32 Visions of Regional Economies In a Great Transition World Introduction This paper aims to specify three different economic systems that would be consistent with Great Transition values and principles as portrayed in Great Transition Today: A Report from the Future (Raskin, 2006a). We envisage a world in which all three of these systems might peacefully coexist and interact fruitfully with one another. One of these systems is a clear descendent of twentieth century capitalism. One is a socialist alternative to capitalism. One is something completely new, a "small is beautiful" alternative theorized by E. M. Schumacher and others that builds on a new conception of modernity particularly appropriate for, although not confined to, agrarian regions of the world. The GT vision of the global future is rooted in the values of human well-being, solidarity, and environmental sustainability, which we will presume to have supplanted the excessive individualism, consumerism, and domination of nature so characteristic of the present. It is a vision of a world civilization comprised of diverse regions. Although the economic structures differ among these regions, and sometimes even within regions, everywhere the structure of the economy is understood as the means to social, environmental, and cultural ends, rather than an end in itself (Raskin, 2006a, p. 9). Because economic institutions interact with so many other social and political institutions, this paper draws somewhat arbitrary boundaries between its focus and that of several other papers in this series. Those on trade, politics, climate change, sustainability, well-being, and corporate design are particularly relevant. We concentrate primarily on what could be called the “supply side” of the economy, rather than on changing patterns of consumption in a GT world, which we discuss only broadly. The focus is on how changes in economic structures can help achieve such social goals as democracy, environmental sustainability, and social justice. We will also consider how laws, policies, and regulation can promote these goals better than they do today. Our emphasis on democratizing the economy leads us to consider how various stakeholders can and should play a role inside and outside various economic institutions. Since the dissolution of the Soviet Union in the early 1990s, the notion that “free-market” capitalism is the only viable economic system has had few challengers. Yet the fact that billions of people remain mired in extreme poverty, coupled with dramatic evidence that the world’s climate is rapidly changing owing to greenhouse gas emissions, vividly attests to the fact that the global economy operating under “business-as-usual” institutions cannot create an equitable and sustainable society. People urgently need new guiding visions for economic structures that will foster genuine human well-being (Vovk, 2003). The world especially needs to develop new institutional structures for ensuring that new capital investments are compatible with sustainable development, since it is these new investments that will primarily shape the future economy. Achieving these goals will require a central role for civil society (Kriegman, 2006). Numerous non-governmental organizations have become prominent features of the local, national, and international landscape over the last twenty-five years, many of them exhibiting high levels of energy and creativity. These organizations must become prominent participants in 1 Visions of Regional Economies in a Great Transition World the deliberations of corporate boards, investment boards, technology assessment commissions, regulatory commissions, zoning and planning boards, professional associations, and other economic decision-making organizations, if humanity is to embrace the major transformation
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