Why Is Today's Economic Breakdown the Ecological Crisis of Tomorrow?

Why is today’s economic breakdown the ecological crisis of tomorrow?

Further answers for ministers and children Why is today’s economic breakdown the ecological crisis of tomorrow? Further answers for ministers and children Why is today’s economic breakdown Text Klara Hajdu

Editing Judit Herman and Kristina Vilimaite the ecological crisis of tomorrow?

Editor responsible Mátyás Prommer

Illustrations Attila Kis Further answers for ministers and children Design www.farm.co.hu

CEEweb for Biodiversity is an international network of non-governmental organizations in Central and Eastern Europe. The mission of the network is the conservation of biodiversity through the promotion of sustainable development.

CEEweb for Biodiversity This publication is supported Széher út 40. by the European Commission. H-1021 Budapest, Hungary The donor is not responsible Tel.: (+36 1) 398-0135 for the expressed views and Fax: (+36 1) 398-0136 the use of the information www.ceeweb.org made available. 2012 Susie and her Grandma are sitting in the waiting room of a train station. They are on their way back to the city. Susie is a big girl now: almost eleven. She still enjoys being with Grandma, so she spends some weeks in the summer with her in the countryside. She was enjoying this holiday a lot, too. She still remembers what she learned on her way to Grandma on the train a few years ago. She still keeps in touch with Peter; they are great friends.

This summer she spent most days in the garden playing with Rex, Grandma’s friendly dog. In the small village it was exciting to see the things she now knows so much about. She also enjoyed looking at the bugs in the small kitchen garden, some of which, as she knows now, safeguard plants from pests. She observed the bees, which pollinated the flowers on the apple trees in the spring. She already knew that pollination is a type of ecosystem service, which nature gives free of charge. She walked out to the fields with her Grandfather and looked at the crops that people have grown for hundreds of years in that region. Grandfather agreed that it is much better to grow crops in a way that is suitable to the local environment than change local conditions to suit the needs of crops. They discussed why it is so: it requires less pesticides, irrigation or fertilizers. It also helps pro- 3 tecting the abundance of animals and plants around.

But now the holiday is over and she is going home. Her parents missed her a lot! She has been waiting at the train station with her Grandma for half an hour. The trains were delayed because of a storm last night. She is already bored with the book she has brought for the trip so she looks around with curiosity when she hears the radio, which is on in the restaurant nearby.

- … compared to the same quarter of the previous year, sea- sonally adjusted the gross domestic product increased by 1.7 percent in the EU27 during the second quarter of 2010, according to flash estimates published on Monday… susie: Grandma, what is gross domestic product? susie (seems to be offended): I am not a small girl anymore! Grandma, what does he mean with this produc- grandma: Hm, it is also called GDP. This is a number tion, distribution thing? which somehow shows the performance of the economy. Do you know what economy is? Grandma is in despair. She knows that Susie is a smart and self-reliant girl with a great deal of curiosity. She susie: Yes, I think. It is the factories, which produce wants to give her a clear explanation, but she is afraid stuff for people. she cannot do that. Luckily an old man sitting next to her turns to Susie. grandma: Yes, you are right. Economy includes factories, small businesses, banks and much more. But it is old man: You know economy is the interface, or simply so complicated. Ordinary people like me cannot even speaking relationship between humans and their envi- imagine that. ronment. People have needs such as food, water, shelter It is dangerous when politicians put and clothing. They also like culture, travelling and lei- the increase of economic performance The conversation draws the attention of a boy of about sure, such as going to cinema and theme pools. as the main goal of national policies twenty who is sitting opposite them. He is holding a and ignore that environment is a university textbook in his lap, but he is not reading it. susie: Yes, I also like going to the theme pool! I like the precondition for any economic activity. He seems to be bored and eager for a talk. high slides the most! The natural environment will survive without economy but no economy student: If I may interrupt, maybe I can help you. old man: You see economy helps you to realise this. A will survive without nature. Economy is the common term for the economic system, lot of things are needed so you can go to a theme pool. which is the structural framework of the production, People to build and run the building and the pools. distribution and consumption of goods and services in Water from nature to fill the pools. Wooden furniture a society. It is economy when a farmer grows wheat, a for the lockers in the changing rooms. Bricks and tiles 4 baker bakes bread, a merchant sells it, a doctor advises from clay to build the pool and slides made of plastic about a healthy diet, but also when all these professions and metal. These entrepreneurs, also called economic are thought in schools. All these things are part of the actors, interact with the natural environment in many economic system. Do you understand? different ways and they use natural resources. But they also get into contact with numerous other people, other susie: Yes, I think so. So everything that people do is economic actors who are also part of their environment. old man: Yes. They are responsible for production and student: In your approach we can say that economy is part of the economy, right? They know how to produce tiles, bricks, slides and have distribution. But you are also an economic player. Can a tool to meet society’s needs. the machines for the production. What is more, there you imagine how? student (a bit embarrassed): Er, I would not say that… are also companies that do not produce but only trans- old man: Yes, you are perfectly right. Economy is a Only if it is related to production, distribution or con- port things from one place to another and this is how susie (surprised): Me? How? tool, not an aim, as nowadays many think. It is dan- sumption. Do you see the difference? they realise distribution. They don’t provide goods but gerous when politicians put the increase of economic services. But they are also in contact with the natural old man: When you go to the pool, you pay for its ser- performance as the main goal of national policies and susie: No. environment by using roads or generating exhaust gas- vices and use their facilities. ignore that environment is a precondition for any eco- es. Indirectly, they also use natural resources. nomic activity. Economy is the link between humans student: Look, this topic is not for a small girl like susie: I have already been to the theme pool several and their social and natural environment, but economy you. You are too young for this. susie: I see. So the adults who work make the economy. times but I did not know that. and society depend on nature. The natural environ- When people, for example clear-cut forests, student: GDP is the figure that sums up the value of susie: So maybe it is not even bad that there was a reces- drain wetlands, burn the peat or produce all products and services produced in a country in a sion? If GDP is not good, then maybe it is not bad that chemicals that eventually pollute and damage year. If it decreases, it means that less economic activity it was dropping. nature, they destroy ecosystems, but when we has taken place and more people have become unem- count the GDP these are benefits and not losses. ployed. Also less money is paid to the state in the form grandma: I am sure that this recession was awfully dif- of taxes, which are to finance hospitals, schools, state ficult for many people. Do you remember your friend institutes or pensions. Julie, who could not join you for the summer holiday last year with her family because her father had lost his susie: I see. So when the GDP is dropping that is bad, if job? There are many others in a similar situation. And it is growing, it is good. there are a lot of people who find it impossible to pay back their bank loans. student: Only if it was so simple. There are several problems with this explanation. For example, it does student: Actually, I heard that the whole crisis started not make a difference between the construction of new with the bursting of the US housing bubble followed by a schools to teach more students in better facilities and mortgage crisis. People took loans that they couldn’t pay rebuilding schools and houses because they were de- back later on when the housing prices plummeted and the stroyed by a flood. Do you remember how many villag- interest payments increased. Similarly, banks carried out es were flooded this year? Thousands of people became risky transactions that depended on insecure income. homeless. old man: Ahem. And do you know how the financial susie: Yes, I saw it on TV. It is terrible when people crisis relates to the ecological crisis? don’t have a place to live. student: The ecological crisis? What do you mean? student: Well, reconstructing these houses will con- Clearly some kind of fuel and food crises happened in tribute to GDP even if it is a tragedy for many people. 2008 but I wouldn’t say there is ecological crisis. 7

old man: When people, for example clear-cut forests, old man: Indeed, people are less aware of an ecological drain wetlands, burn the peat or produce chemicals that crisis threatening us. This ecological crisis affects the eventually pollute and damage nature, they destroy whole biosphere and there are already some signs that ecosystems, but when we count the GDP these are ben- warn us. Can you count the storms and floods which efits and not losses. have happened in the last years? ment will survive without economy but no economy susie: What are you talking about? What’s recession? will survive without nature. susie: But nature gives us such presents all the time! grandma: I surely don’t remember so many summer grandma: You remember, Susie, you were asking about Like food, water or the bugs that protect the carrots storms and such devastating floods from my youth. The student: But after this recent global economic crisis the GDP. Well, when the GDP has been dropping for and cabbages in the garden! Destroying them is bad for climate seems to have gone wild. I think it is totally right that politicians put economy a longer time, we say that the economy is in recession. us, not good! first! And some economists even warn that another student: OK, I accept that the weather has become recession might come soon before real recovery hap- susie: Yes, the GDP is a number. But what exactly does student: Yes, that is why the GDP in itself is not a more extreme. Scientists predicted this in the past. But pens. it show? good measure of economy and there are economists, governments know about this problem, you can’t accuse who are working on alternatives to GDP. them of ignorance! old man: I’m afraid we cannot be satisfied with gov- student: That is fine. We need these services for sure. places we should protect and which aren’t so important. scientists say that we should stay on the safe side and ernment efforts to fight climate change. Scientists sug- But what about biodiversity? Isn’t it too early to worry about this? allow maximum ten times more species to die out than gest that a much larger emission cut would be necessary would happen naturally, without humans. And even then than what politicians suggest. But there are also other susie: Without so many different types of plants and susie: Don’t be so crude! I do care about plants and ani- we would deeply transform our natural environment. environmental problems. Susie, do you know what bio- animals there would be no ecosystem services. mals and mushrooms! They also belong to me! I don’t logical diversity is? want others to harm them! grandma: When you say that a ten times higher ex- old man: You put it quite plainly, but eventually it is tinction might be all right, my calculations tell me we susie: Yes, I do. It means the diversity within species true. We cannot predict how much biodiversity can dis- old man: What Susie is talking about is called environ- are way over that limit by about a hundred times. This such as broccoli, cabbage, cauliflower and kohlrabi all appear from an ecosystem before it fails to deliver one mental justice. It’s not fair that a smaller group of peo- makes me scared. belonging to the same species. It also means differ- or more of its services. Definitely there are several spe- ple decides about the fate of natural values, which are ent types between species, like different animals and cies in ecosystems playing similar roles. So when some the common assets of humankind. It is especially un- student: Yes, it sounds scary but I think that if we were plants. And mushrooms which are not plants. Did you decrease or disappear, it doesn’t seem to disturb the fair towards children and those, who will be born later. in such big trouble, we would know it by now. If biodi- know that? functioning of the ecosystem. However, when the en- They can’t yet take part in today’s decisions, but will versity is necessary for ecosystem services and biodiver- vironmental conditions change, this abundance might be forced to deal with tomorrow’s problems. When we sity is much too disturbed already, ecosystem services student: No, I didn’t know it. Are you sure? become essential. Maybe one species doesn’t seem ir- greatly intervene in natural processes, we should think should already be disappearing. replaceable today, but later, once the environmental about our children and grandchildren and pay at least old man: Yes, indeed. Mushrooms are not plants. conditions have become unfavourable for other species virtually for the ecological insurance. grandma: And isn’t it already happening? The climate with a similar function, they can become indispensable is changing, the air is not so clean and refreshing as it susie: But there is also a third thing about biodiversity, in delivering ecosystem services. student: I am still not convinced why we should worry used to be. We need to travel further and further to which I forgot. about this today and not tomorrow. see natural landscapes like the ones in my childhood. I grandma: You mean when the composition of a forest remember my family bringing the water from the river grandma: You mean ecosystems, don’t you? A forest, a changes, but it delivers similar services as before. old man: Scientists say that even today may be too late. every day in a mug when I was a child. We used to drink field or a pond is an ecosystem, where different living In the last 300 years the world’s forest area has shrunk and cook with river water. It was much tastier than wa- creatures grow and work together and make up ecosys- old man: Yes, that’s a good example. This is also part by about 40 percent, and forests have completely disap- ter from the well. Today nobody would dare to drink it. 8 tem functions. of resilience in other words the ability of ecosystems to peared in 25 countries. But it’s not only forests: half of 9 withstand and to regenerate after disturbances such as the wetlands have been lost globally in the last century old man: That is right. According to a survey about susie: Yes, now I remember! And these ecosystems give fires, droughts, gales, insect invasions or forest clearing. and 35 percent of mangroves have disappeared just in two 60 percent of ecosystem services are degraded or used us presents like food to eat, water to drink and fibre for That is why we can consider biodiversity as insurance decades. Today 100 to 1000 times more species disappear in an unsustainable way. Two types of services cannot our clothes. Ecosystems also make sure that the fruit for humanity for the future. Nowadays this is crucial each year than would do so without human activities. be sustained even at current demands, much less future we eat contains a lot of nutrients and makes us healthy. because global environment is under growing pressure ones: fisheries and fresh water. It was clearly proven from human activities. Just to name one such pressure, grandma: It sounds so much… that the decline of these services seriously affects hu- old man: Oh, you are a well-informed young girl! ecosystems face climate change to which they need man well-being. To tell you an example, when the New- These "presents" are called ecosystem services, which to adapt rather fast. Some species can make it, other student: But from how many species? Millions? It foundland cod fishery collapsed due to overfishing in nature gives us for free. But there are many more pre- species can’t. However, when an ecosystem is already might not be so many from that great number. Do we the early 1990s, tens of thousands of people lost their sents less easy to see! Ecosystems regulate the climate, degraded, there is a much bigger chance that it can’t know at all how many species there are? jobs. Altogether it cost at least two billion US dollars. produce clean water and air. They also support other sustain the services, which are essential for humans. We have been fishing down the marine food web. Susie, ecological processes through soil formation, pollina- old man: You are right, we don’t even know that. It might do you know what food web is? tion and evolution. Not to speak about the educational, student: So you say we need biodiversity as insurance be somewhere between 5 and 30 million. But how could recreational or spiritual role nature plays in our life. for the future? But maybe later we’ll know more about we know for sure that we will never need all these spe- susie: Yes. It describes what eats what in the food chain. these things and we’ll know better which species or cies if we don’t even know about their existence? Some We learned about this in biology. The plankton are at the bottom of the pyramid, they are eaten by sea stars, susie: Because they want to buy a house. Or a car. I remember my family bringing the small fish and jellyfish. These are eaten by larger fish. water from the river every day in a mug Large predators, such as sharks, albatross and tuna are old man: Yes. They get advance for the consumption when I was a child. We used to drink on the highest level. for which they can only pay in the future. They con- and cook with river water. It was much sume now, which otherwise they couldn’t afford. It tastier than water from the well. grandma: I would guess that humans are also top pred- means that more cars can be produced, more flats can ators. be built – and more natural resources can be used right now. People borrow not only money, but also natural susie: Yes! resources from the future. To get all this they have to promise banks that they will pay it back together with old man: And as fish on highest levels of the pyramid the interests from their future salaries. Or we can say are depleted by overfishing, fishermen go after smaller that they will pay it back from their future production species. That is why they say that we have been "fish- when they produce some kind of goods or services and ing down the food web". And the overuse of fresh water receive their salaries in return. The problem is that is just as critical. Although we cannot tell it for sure, when they produce goods or services, they need to use even one quarter of global freshwater use cannot be sus- the natural resources, do you remember? tained on the long term because it exceeds accessible long-term supplies. susie: Yes. Those who build and own a theme pool use natural resources such as water or clay. susie: But how can we use more water than what’s available? student: Yes. Even those people use natural resources who work in an office. I read that it takes the yearly old man: Strangely enough it is possible. For example electricity consumption of six South-East-European extra water can be transported from far away or more countries from Slovenia to Bulgaria to power and cool 10 groundwater can be drawn than what can renew itself. the data centers of the world, which operate the Inter- Natural resources are often overexploited to satisfy hu- net. And a lot of energy and resources are needed to man consumption. But it brings me back to my earlier operate the buildings, to produce computers, copiers, question. Do you know how the financial crisis relates office paper and so on. to the ecological crisis? old man: Exactly. Everybody uses more or less natural old man: You got it. Overconsumption of ecosystem and consumption and our planet’s resources. I think susie: They both make people lose their jobs? resources to earn money. So when people take a loan, goods is similar to taking a loan. Societies get an ad- that governments should do more to educate the people they promise that they will pay it back with the use of vance for the consumption of natural resources, while about this. old man: Well, ultimately yes. But on a deeper level natural resources but they don’t know if those resources the planet hasn’t yet created the cover for these loans. both crises are of the same kind. Do you know why? will be available. On one hand it is overconsumption in At present our global ecological consumption deficit is old man: That might be true. Unfortunately govern- Why do people take loans? the sense that they consume more now than what they about one third of the planet – in other words we are ments take similar decisions. could afford, and on the other hand it risks overcon- currently using 1.3 planet instead of just one. susie: Because they need more money than what they sumption of natural resources in the future. susie: The governments? They can take loans? have. grandma: In my opinion people should start thinking student: So you mean that both the financial and the about this before it’s too late. I’m afraid we are not so old man: Yes, they can. In the European Union, where old man: And why do they need more money? ecological crises are rooted in overconsumption? well-informed to see these connections between loans we live, the government debt was 73.6 percent of the GDP for the 27 countries in 2009, rising in just two ford to use more and more. Second, increased energy old man: And to have good friends with whom you can grandma: For sure a lot of things have changed, some years by 14.8 percent due to the financial crisis. At the efficiency results in economic growth, which in turn share your thoughts and worries even at night, if you want… for the better, some for the worse. Nowadays in my vil- same time the government deficit was 6.8 percent of increases energy use throughout the whole economy. lage there is sewage system and an asphalt road in al- the GDP, which means that the governments of the 27 grandma: And to have good neighbours who you trust most every street. People go to the hypermarket in the countries collected less revenue than what they have student: But I’m sure there could be other ways to and can leave the chickens with for a weekend, when nearby town more often than to the local market each spent. And no government had more revenue than ex- control the amount of resources we use. Taxes, extra you visit your daughter and her family… Saturday. They want to buy everything in one place be- penditure. fees or "cap and trade" schemes. cause it’s more comfortable. old man: And to be healthy… susie: Then these countries are getting poorer and old man: You are perfectly right. Increasing efficiency student: That’s development! People live in comfort poorer… only makes sense, if the total amount of resource or en- grandma: My granny always told me that the two most and they can afford to buy things they enjoy. They don’t ergy use is controlled through other economic means. I important things in life are love and good health. have to get up early in the morning to feed the chickens student: Not according to economic theory. If the think governments will soon understand that putting a and produce vegetables, eggs and meat for themselves. economy is growing, they are getting richer. This is cap on resource and energy use is inevitable, if we want old man: She was a wise woman. I would add and to be what we learned at university. to stop the degradation of ecosystems and ecosystem safe. We want our lives and possessions to be safe. susie (lost track of the conversation a few minutes ago, services. And that implies that our whole economy will but now bursts in): What’s development? old man: Well, that might be right within reasonable change as a result. grandma: Yes. I don’t know how old people who re- limits. But my point is that all these processes show cently lost their houses and all belongings in the recent old man: Nowadays politicians as well as common peo- that natural resources are overconsumed both now and susie: Why will things change, if everybody in the gov- floods can survive. They’ve lost all the fruits of many ple think that development means to invest more in in the future. The growing economy is already using ernment puts a cap on? decades of work. infrastructure and institutions and to consume more. more and more resources and energy. But when govern- They also think that development is in close connection ments take loans to stimulate the economy they com- old man (laughing): No, no, they won’t have to wear a old man: For safety we need a strong and cohesive com- with rising living standards. mit themselves to higher production also in the longer cap, if they don’t want to. “Putting a cap” in this case munity and a healthy environment. We need shelter, term so that they are able to pay their loans back. Of means that governments put a maximum limit on how food and safe drinking water. And rights in the com- susie: So when people get richer they are more developed? course, governments also have an interest in economic much energy and resources people can use altogether. munity to access the resources that are necessary for 12 growth in order to secure their budgetary income, like For example each country has a total amount of elec- shelter, food and drink. grandma: It sounds weird, doesn’t it? I suppose it’s not 13 paying health care, schools and pensions. This is how tricity and they have to share who uses how much of it. so simple. in a growth-centred economy financial debt becomes grandma: And we need to be respected members of the ecological debt. For which we are already paying the student: I think you expect too much. community and do what makes us happy. old man: Susie, do you remember what I said about the price by our declining well-being. credit crisis and the ecological crisis? It is the richer old man: Too much? A young man like you shouldn’t student: This sounds like a good life. countries that mostly caused them. student: But why do you think the use of natural re- be so skeptical! We’re in really big trouble, if educated sources is necessarily growing? People do more and young people like you don’t believe in change! But to be old man and grandma: Yes, it does, doesn’t it? susie: But it doesn’t make sense that development goes more for higher efficiency and energy saving. honest with you, an old man like me doesn’t want any- hand in hand with crises. thing more than to enjoy his old days in a small house student: But this is not exactly how well-being is de- old man: Yes, that’s also true. The problem is that in- in the hills. Maybe to grow some vegetables in the gar- fined today. student: At least these developed countries have creasing efficiency through technological innovations den… the knowledge and technology to fix many problems! doesn’t necessarily lead to reduced consumption. Of- old man: Then it should be redefined. That’s why they are developed. ten the opposite is true. If energy efficiency increases, grandma: And to see the children and grandchildren it tends to increase energy demand in two ways. First, often… student: Maybe. But you must admit that economic old man: As I said it before, I don’t agree with the idea it makes energy relatively cheaper so everybody can af- growth has improved a lot of things in our life. that technology is the key to all our problems. Let’s look at the question of development from a biological man body. Oh, don’t look so scared, most of them are they will survive. If not, they will die. So complexity, student: It doesn’t make sense to me, either. We’re not point of view. Susie, do you know what bacteria are? harmless, and what’s more, a few of them are even good technology and knowledge are one thing, but whether animals anymore living in the wild and fighting mam- for your health! So bacteria are very simple, they don’t these help us to adapt to the environment and survive moths and cold. susie: Of course. They are very simple and very small even have a nucleus, like plant, animal and fungus cells. still remains a question. living things. They are so small that you can’t even see However, they are widespread in all kinds of environ- old man: You do not think so? Well, I think we are do- them – not even with a magnifier. ment. On the other hand, there are very complex or- susie: So development means better adaptation to the ing that exactly, only our means have changed. We are ganisms that developed complicated organs. Just think environment? fighting cold with the help of houses, clothes and the old man: I can see that you are paying attention at of the eye of a fly or the complexity of the human brain. heating system. We are fighting heat with sun shades school, very good! Bacteria are simple organisms which But when it comes to survival, bacteria, flies and hu- old man: That’s right. and air conditioners. In addition, we have changed our can be found everywhere. They live in the deep sea, mans alike are faced with the same challenge: can they lifestyles so we don’t need to be outdoors all day. We up in the air, in the soil, in plants – even in the hu- adapt to their environment? If they adapt successfully, susie: It sounds very boring to me. fight for food not only with tractors, fertilizers, pesti-

Nowadays in my village there is sewage system and an asphalt road in almost every street. People go to the hypermarket in the nearby town more often than to the local market each Saturday. They want to buy everything in one place because it’s more comfortable. old man: No, I didn’t mean that. Technology can help us old man: Yes, it is. The production of fertilizers, pesti- to recover from the economic and financial crises through cides, machines, fuel for the machines is still affordable better adaptation. But then another crisis will come. And enough to make intensive agriculture more profitable an other. Problems can be solved only if we tackle the un- in comparison to extensive production. These practices derlying root causes – adapting to them won’t help. A well- bring higher yields and they also replace human labour insulated house and warm clothes may keep you warm but in many ways. So less people make a living from ag- they don’t take away the cold itself. A sun lotion protect- riculture than ever before. What’s more, this trend is ing you from the ultraviolet radiation doesn’t repair the forced by international trade and competition, which ozone layer. The real causes of environmental problems, decreases the price of agricultural products. Consum- such as climate change, biodiversity loss or pollution are ers also favour cheap food, which is easily available in cultural, institutional and structural drivers. I give you an big supermarkets. If farmers maintain traditional farm- example. Susie, have you ever seen a whinchat? ing techniques, they are forced out of the market.

susie: I’m not sure. What is it? susie: But nobody wants to help farmers to do the kind of farming also good for birds? old man: It is a small bird with brown upperparts, apricot underparts and bold white eye stripes. You can old man: On the contrary, there are many attempts to mostly see it on posts or the top of low bushes. support them on EU, national and local levels. These are called agri-environment schemes. But these programs susie: No, I don’t know them. can hardly compensate for all the disadvantages.

old man: Unfortunately whinchats have disappeared susie: But why don’t they work? from many places. They breed in open rough pastures but many of these small farmlands have been lost in the old man: Agricultural production happens in the last decades. wider economic framework with many interacting sec- 17 tors, policies and market forces. For example there is susie: Why? the chemical industry, which uses seemingly unlimited The production of fertilizers, pesticides, machines, fuel for the machines is still affordable enough to make intensive cheap raw materials and energy. Then there is trans- agriculture more profitable in comparison to extensive production. Consumers also favour cheap food which is easily old man: Because intensive agriculture pays better to port, which is based on cheap fuel. This enables the available in big supermarkets. If farmers maintain traditional farming techniques, they are forced out of the market. the farmers, many marginal farmlands have been either long-term transport of both the raw materials and the intensified or abandoned. Intensive use of the fields produced food products. Trade exploits the differences means that farmers use more fertilizers, pesticides and in the social and environmental standards within the heavy machinery, the fields are irrigated and large fields global economy and suppresses the prices. Finally the of monoculture are established. These practices don’t taxation policy makes human labour expensive in com- cides and fodder, but sometimes even with guns when student: Even if we accept that development means adapt to local ecological conditions but try to change parison to natural resource use. wild animals – wolves, bears or elephants – threaten better adaptation to the environment, technology helps them to produce higher yields or bring new areas or them. It’s true that for most of us this doesn’t mean a to adapt, you also said it yourself. Then why do you crops into production. susie: And don’t politicians want to change these day to day struggle due to technology and urbanisation. doubt that technology is useful in recovering from to- things? But you can imagine how hundreds of millions of peo- day’s crises? susie: Yes, I’ve heard about intensive agriculture before. ple do this daily in poorer regions and countries. It is cheaper, right? old man: Well, some of them try but not hard enough. Do people value healthy ecosystems, safety, And you know, changing all these connected issues personal relationships and health as is not possible with separate sectoral measures. This contribution to human well-being? When means that the ministers of trade, transport, finance, your answer is yes, it will be the right time agriculture, economy, interior affairs and many others to introduce a different economic framework. need to agree to introduce such measures, which would greatly change their fields of work and also change their own importance. Complete, so-called holistic economic measures are needed. For example, control- ling the resource input of the economy would make a good start. This is what we called “putting a cap on resource use”.

student: We were talking about this a short time ago. But this would imply a huge change not only in the economy but also in the minds of people, right?

old man: Definitely. You can only change the way how economy works with a holistic approach and strong political will. But of course these are closely linked to the values of society, what people find important and what they don’t. Do people value healthy ecosystems, safety, personal relationships and health as contribution to human well-being? When your answer is yes, it will be 18 the right time to introduce a different economic framework.

grandma: My God, you arrived from the whinchat to the values of people in a minute. I can hardly follow you.

old man: As you can see, everything is related to everything else. There are many factors influencing the whinchat population – but only few of these appear physically in the farmed fields. The majority of drivers are woven into economy and society, establishing causal links between bird population trends, financial regula- tions, the approaches of decision makers and the values of society. These are the structural, institutional and cultural drivers behind the problems. student: You mentioned employment. So you think energy resource? And they found biofuels. With which that limiting the use of natural resources could de- they simply shifted the environmental pressures from crease unemployment? pollution to land use. And then I haven’t even mentioned the fossil fuel needs of biofuel production, which might old man: I think the answer is ultimately ‘yes’. Nowa- make biofuels have an even negative energy balance. days we manage natural resources as if they were unlimited and consequently they are still very cheap. grandma: What do you mean when you say shifting That’s why machines, fertilizers and pesticides can re- environmental pressures from one place to an other? place human labour. old man: Human activities can put pressure on the en- student: But fuel prices really boomed in 2008 and vironment in three ways. Susie, do you know how peo- you can see what happened: instead of rising employ- ple can harm the environment? ment it only contributed to a food crisis. susie: Like when they throw harmful materials into the old man: This is what happens on the short term. To- rivers and oceans. Or throw the garbage away in the day’s agriculture depends on oil because of its high input forest. If a road cuts through a forest, it affects the forest species living there in many ways. demand and related transport needs. By the way, there were several other factors that made the food crisis old man: This is called pollution. Do you know other worse. ways? mental pressure. And it’s not only the loss of natural other resources, which were necessary to produce the habitats that matters. If a road cuts through a forest, it car, in which they took the refrigerator there. It also student: I know. The growing demand and subsidies susie: When they kill the animals or cut down the trees. affects the forest species living there in many ways. It involves the roads they were driving on including the for biofuels was one such factor – even though biofuels causes disturbance through noise and the turbulence of loss and fragmentation of forest habitats. So polluting were considered for some time as an answer to the en- old man: This is called using natural resources. You are cars driving past, which scares animals. It creates a new the forest by throwing away old machines also involves ergy problem. very clever. Can you think of anything else? edge in the forest, which changes the temperature and the use of natural resources and land use to a smaller 20 other microclimatic conditions along the way, so new degree. 21 old man: A wrong answer to a wrong question… susie: When we drive a car to school or to the shop species appear while others move further into the deep instead of cycling or walking. of the forest. A new road also separates animals from student: And what does this all have to do with bio- student: What do you mean? each other who can no longer meet so easily to mate. fuels? old man: Well, that is also pollution if you think of the This process is called the fragmentation of habitats and it old man: Biofuels are getting more widespread because exhaust gases. But road transport also harms the envi- has severe negative effects. old man: Biofuels were thought to help pollution by de- people have a rapidly growing energy need, and today’s ronment in another way. creasing the emission of greenhouse gases. This might main energy resources cause pollution and climate susie: So a forest in one piece is more valuable than a be true in theory, though as I mentioned there are some change. These are the direct causes, right? But climate susie: You mean by killing animals on the roads? same-sized forest which is divided into parts? doubts in many cases because of their energy and re- change has ultimately the same root causes as the decline source need. But decision makers forgot about one of the whinchats. Cultural, institutional and structural grandma: Or by clearing the fields or forests for the old man: Exactly. But coming back to my earlier point, thing when they set their targets and introduced subsi- drivers are the same in both cases. However, decision roads? all kinds of human activities put these three types of dies: they didn’t calculate the land use pressure related to makers weren’t looking at core problems, and didn’t try pressure on the environment to some degree. When increased biofuel production! We can produce biofuels to solve different problems at the same time. Instead old man: Both of you are right. Using a piece of land people take their old refrigerator to the forest and in two ways: We can bring new fields into the produc- they were pondering: how can we satisfy our growing like converting natural habitats to roads, cities, agri- throw it away, they not only pollute the forest on the tion, which results in direct biodiversity loss. Or farm- energy demand with a more environmentally friendly cultural fields or factories is the third type of environ- spot. This also includes using petrol on their way and ers can switch to biofuels from food production, which causes food prices to rise. But also in this latter case new old man: Exactly. There is another argument to intro- ment of new and better technologies. This is what the susie: And because we increase environmental destruc- fields are brought into the food production later. This is duce such reforms today instead of tomorrow. Today we European Commission also does with its programme. tion, nature is giving us less and less presents. a perfect example of shifting environmental pressures: in still have time for a smooth transition period. We could New green technologies can help companies to produce order to decrease pollution we increase land use pres- still develop large scale programmes for implementing goods with the use of lesser resources. old man: Exactly. Degrading ecosystems deliver less sure instead, so environmental degradation continues. reforms carefully. With this we could ease the pressure and less ecosystem services. on those who are the most vulnerable. susie: So a company can become more competitive if it student: And I can imagine that the growing produc- uses green technologies. This saves resources and helps student: An important thing just crossed my mind. I tion of biofuels and food also needs additional fertiliz- student: Who do you call vulnerable? solving those problems of nature. read it somewhere that we can protect ecosystems by ers, pesticides and so on. recognising the economic value of the services they old man: Poor people both in our marginal regions old man: This is what you would expect, right? Unfor- provide. This article I read said there were studies about old man: Exactly. Without setting absolute limits to and in the third world. But if we wait until resources tunately, higher competitiveness leads to higher envi- this. When we recognise that ecosystems and ecosys- the energy resource and land use, we just shift the prob- become very scarce, the reforms will have to be drastic ronmental pressure. tem services also have a value, even if that price is never lems somewhere else without solving them. and the social costs in addition to the environmental paid, this can help to protect them. costs will be extremely high. susie: Why? student: I can’t even imagine what needs to happen in old man: Yes, there are such studies. A recent compre- the world so that such reforms are finally made… radio: …The EU commissioner for research and innovation old man: It is quite logical. Let’s suppose you own a toy hensive study on the issue, titled The Economics of Eco- announced yesterday nearly 6.4 billion euros of investment in factory. What would you do, if you made such good toys systems and Biodiversity, has provided certain evidence old man: You can bet your bottom dollar that sooner or research and development to be spent by the end of 2011. The that you could sell more and more of them? for that. later some kind of reforms will happen. package, described as Europe’s biggest ever investment drive in the sector, aims to increase European competitiveness and susie: I would make more toys. grandma: They put prices on seas and forests? student: Why are you so convinced? help tackling EU priorities such as climate change, energy, food security, health and the ageing population… old man: Right. But producing more means using more student: Well, not in all cases, but this is basically the old man: Because natural resources such as oil will be- resources, even if you need fewer and fewer resources point. come scarce one day. With rising scarcity fuel prices susie: What is competitiveness? for each and single toy. So on one hand being more suc- 22 will shoot up and that will affect our economies, which cessful usually leads to higher environmental pressure susie: And how can this help? 23 heavily depend on natural resources. student: Competitiveness shows how efficiently a com- directly. But there are also indirect effects. The state pany can make profit in comparison to other compa- gets more money from higher production and con- old man: The consequences of biodiversity loss are student: Maybe you shouldn’t worry so much, if it is nies. For instance if a factory produces toys and people sumption because everybody has to pay taxes. These felt on the ground but these costs can go unnoticed at going to happen sometime anyway. buy more of these toys than the toys of other factories, taxes are partly spent on supporting the economy and national and international levels. These costs are miss- it contributes to the higher competitiveness of that making the people wealthier. So people can afford to ing from economic decisions, indicators, accounting old man: The problem is that until then we are company. consume more, which also increases environmental systems and prices on the market. I already mentioned destroying our ecosystems, degrading the ecosystem pressure. that the GDP doesn’t take a look at the degradation of services and compromise our well-being at an susie: So if somebody makes better toys, they are more ecosystems, which is also called natural capital. alarming speed. And ecosystems can’t be repaired in competitive? susie: So being more successful means that we are de- a day. Many of these changes are irreversible. This is stroying nature even more? susie: And how can we say what the price of a forest is? the crucial difference between an ecological and an student: Well, it doesn’t only depend on making bet- economic crisis. ter goods, price and marketing also matter. Companies old man: Yes, it does mean that. If there are no limits of student: For example it can be calculated how much always struggle to become more competitive and gov- resource and land use, increasing our competitiveness higher price people are willing to pay for a house that is susie: Yes, I understand that. If there are no more whin- ernments try to help them to be better than foreign can only lead to more environmental destruction. in a natural environment, like next to a forest. Then from chats, we cannot put them back on the trees. companies. For example states support the develop- this price difference it’s possible to determine the added cultural value of the forest for the residents. It can be and higher than cultural services such as recreation, in- also analysed how far people are willing to travel for an spiration or education. When the different services of a excursion in a beautiful forest and calculate how much coastal wetland in North Sri Lanka were assessed, they they are willing to pay for that through the travel costs. found that the role of the wetland in flood prevention was the most substantial benefit for local people and old man: In these cases the aesthetic and recreational economic actors. The second most important ecosys- services are valued. Forests can definitely provide such tem service was the cleaning of domestic and industrial services. There are other ways to calculate this. In ques- wastewater, while providing food and firewood was val- tionnaires or interviews people can be asked to say how ued as less than one-tenth of the flood prevention service. much they would be willing to pay for certain ecosystem services based on a hypothetical scenario. Actually, this grandma: I just cannot imagine how they can possibly is also used when endangered species are valued. When calculate such things… people in the US were asked how much they would be willing to pay to protect the squawfish population, they old man: Well, in some cases they take the cost of the said they’d pay 8.42 dollars per household. But they were replacement of the given service. It is possible to cal- willing to pay 95.42 dollars for the Northern spotted owl! culate how much it would cost to build and operate a wastewater treatment plant. Or we can sum up the costs susie: A squawfish is worth less than an owl? How can that can be avoided with the help of the ecosystems, that be? such as by flood prevention. In addition, it also works to use existing value estimates from studies completed old man: Well, definitely not from an ecological point for other locations. of view… This approach of economic valuation builds on the preferences of people. This of course doesn’t grandma: Still it seems to be very complicated and a necessarily reflect the importance of the species – or of lot of work! 24 an ecosystem service for that matter. This is a signifi- 25 cant shortcoming of this approach for sure. student: Yes, it is. But this area is developing quickly so we know more and more about the economic values student: But there are other approaches of evaluation. of ecosystems! With the help of such information we I heard that it is also possible to calculate how many can make better decisions in the future about the use When people were asked how much they would be willing services, such as timber, herbs, mushrooms or berries, a of ecosystems! to pay to protect the squawfish population, they said they’d forest provides. We just have to use of the market prices pay 8.42 dollars per household. But they were willing of these services. But it is more difficult to calculate the old man: Knowing the value of certain services by to pay 95.42 dollars for the Northern spotted owl! regulating and supporting services of ecosystems although ecosystems can be useful for politicians and other eco- they are usually higher than other types of services. nomic decision makers. But we will never know the true value of any ecosystem for sure. susie: Higher than providing food or a nice place for hiking on the weekend? student: Why are you so sure?

old man: Yes, exactly. Higher than provisioning services old man: Just imagine that dozens of different services such as providing food, fresh water or healing herbs, should be valued for each ecosystem, which deliver benefits not only to the local people, but also on regional student: I understand that. student: Scientists say it is almost certain that such grandma: I really wonder what the deforestation rate is and global scale. We don’t have enough ecological in- tipping points will happen sooner or later. now in Brazil… formation to make good assessments of all services like old man: Good. Then we should talk about the issue of nutrient regulation, evolution, water regulation or bio- equity. It often happens that trade-off between differ- susie: What tipping points? old man: Above 17 percent. logical control. What’s more, there are probably other ent ecosystem services leads to conflict between stake- benefits that we haven’t even understood. holders. Take the example when a company clear-cuts a old man: I already mentioned the possible collapse of susie: And how could we stop it? forest to get the economic value of timber. In this case coral reef ecosystems. If the deforestation of the Ama- susie: So we don’t know the value of ecosystems? a smaller group makes the life of a local community zon forest exceeds 20–30 percent, the remaining forest old man: First of all we could apply the principle of pre- impossible because the well-being or even existence of could go through a widespread dieback and shift to a caution and reduce total environmental pressures such old man: No, we only know a small part of it. We will locals may depend on the services of this forest which savanna-like vegetation. This would cause a decline in as resource use, land use and pollution. This is what we not be able to understand fully the supporting and regulates seasonal water supply, provides food or pre- agricultural production, increased carbon emission and have been already talking about. regulating services. What’s more spiritual values of vents floods. massive biodiversity loss. ecosystems may not be addressed by economic valuation at all. It is also true for option values, which are grandma: Indeed, I wouldn’t like this to happen in my placed on conserving resources for possible future village. use like medicinal application. The value of ecosys- If the deforestation of the Amazon forest exceeds tems also relates to their capacity to maintain their old man: So there are ethical questions. And there is 20–30 percent, the remaining forest could go services over time under changing environmental also the problem of irreversibility, thresholds and com- through a widespread dieback and shift to conditions. Without biodiversity people will die out bined effects. When a forest is cut down it is an irre- a savanna-like vegetation. This would cause on this planet. Do you understand now how biodi- versible act. Or it may bring a threshold and combined a decline in agricultural production, versity is the insurance of humankind for the future? effect so it starts a chain of consequences that nobody increased carbon emission and could have foreseen. Not even the most careful valua- massive biodiversity loss. student: I do. tions can count with these secondary effects. For example, increasing deforestation and fishing along tropical 26 old man: Good. Do you think we could measure this coastlines seems sensible from an economic point of service of ecosystems? view but only until a certain point. There is a threshold when coral reef ecosystems will collapse because student: No. This can not be measured. So you don’t of sediment deposition arising from inland deforesta- think that economic valuation is a good solution. tion, overfishing and other human impacts like climate change and pollution. The problem is that such threshold man: I’d say it can be a good way to attract the at- olds can be rarely predicted and taken into account, and tention of political and economic decision makers to it is especially difficult when several human pressures the importance of biodiversity. But then decision mak- interact on different scales. What is really worrying is ers should keep the limitations of this method in mind that these sudden ecosystem changes can also happen and they should stick to some key principles. Most im- at regional or global scale with long lasting and poten- portantly we should only use economic valuations on tially irreversible impacts. These irreversible events are concrete ecosystem changes in a concrete context and called tipping points. It is also typical of tipping points not use them to calculate the “total” value of ecosystems that we realise the impacts a long time after the pres- because it leads to false results. sures occurred. student: As I was listening to the difficulties of eco- old man: You are right. And recognising the value of nomic valuation, I start to doubt myself if we can use it ecosystems can also help introducing payment for eco- without taking too much risk. system services schemes. Those who benefit from the ecosystem services should pay for it. old man: Well, ecological processes simply cannot go hand in hand with economic thinking. I think it’s a to- susie: But who can they pay to? Not to trees, insects tally wrong approach to integrate ecosystems into the and birds, right? economy. We should adapt our economy to the environment instead. Take the example of discounting. When old man: Sure not. But those who take care of local eco- economists compare current benefit to future benefit, systems should make sure they can continue providing they discount any future benefit. They do it because they these services also in the future. At the moment local assume that people will become wealthier in a growing people, who maintain a wide range of ecosystem servic- economy so today’s benefits will be relatively less values through extensive land use, are often not rewarded. able in the future because today’s benefits will represent Even though it is frequently more attractive to inten- a smaller share in people’s income. Applying a conserva- sively exploit these resources and obtain a higher profit tive discount rate of four percent over 50 years means on the short term, while also shifting the environmen- that any of today’s ecosystem services will be worth only tal costs to the whole society. We were already speaking 14 percent of their current value for our grandchildren. about this related to the whinchat. Do you remember? When governments pay incentives for more biodiversi- susie: But why would a forest be worth less in 50 years? ty-friendly land uses within the so-called agri-environment schemes, they also pay to farmers for maintaining old man: Oh of course, from an ecological point of ecosystem services and compensate them for the higher view, this idea is wrong. Discounting would be logi- profit they miss. cal only if we could derive more and more ecosystem 28 services as time passes. But the contrary is true: as you susie: But you said that these things don’t work! 29 know ecosystem services are degrading so they cannot be used to the amount we can use them today. So old man: I said that they couldn’t be widespread and despite all economic theories it is just not right to use deliver extensive ecosystem benefits as long as the positive discount rates for ecosystems. We have to ac- boundary conditions remain the same. cept that economy must be adjusted in many ways. A first step can be to recognise the value of ecosystems. student: I bet you think about capping resource use You might have heard about national accounts, which again! include the various assets of countries. It would be old man (smiling): Exactly. We realise that we need to a good idea to student: Yes, I know what it is. I also read about ef- spend money on maintaining ecosystem services in or- limit the annual use of forts to integrate the natural capital into the national der to safeguard human well-being. The problem is that non-renewable energy at the accounts. This would give a more realistic picture about today we finance these schemes from the profit of activi- current level. Then this amount the performance of economy as not only the human- ties that destroy the environment. You see, this profit, as could be reduced bit by bit each made and financial capitals would be accounted, but also the whole economic system, is based on cheap resources, year, let’s say by one percent. natural capital, which is vital for any economic activity. and unlimited use of these resources generates lots of environmental pressures. I do not think we have hope than somebody living in the city with a well working grandma: A secondary market? I have lost the thread. grandma: There might be such programmes, still I to safeguard human well-being when we maintain eco- public transport system? It would not be fair to forbid could never get a cent to change my old draughty win- system services in one place and at the same time spoil them to go to work by car. old man: It is called secondary market, as people can dows. They do good neither to my heating bill, nor to them in other places. Limiting resource use would help. only use the quota money on this market. Another im- my joints…. old man: Of course it would not mean forbidding an- portant point is that even the poorest can get access to grandma: You mention this so many times. Do you ything. People shall make the right choices to reduce these environmentally friendly goods and services on old man: Yes, that is the problem with them. It is nice, have any ideas how such limits could work? their non-renewable energy consumption in one way or this market, which they could not afford before. when the state, or the EU for that matter, funds energy the other. They can save energy by using their car less, efficiency programmes from their usually tight budget. old man: Well, we could start by limiting the annual making their heating system more efficient or switch- susie: How? But they can never meet the real needs of people or the use of non-renewable energy at the current level. Then ing to renewables. An advisory system would aid them business, because they simply do not have enough mon- this amount could be reduced bit by bit each year, let’s to learn the system, make use of its advantages and old man: If they live a modest life and use relatively lit- ey for that. And if they provide grants, then they need say by one percent. This one percent could be easily change their lifestyle. But of course it could still hap- tle energy, they do not use all their quota, right? Then to fill up the fund year by year, which is a real burden. substituted by renewable resources or saved if we used pen that some people use more non-renewable energy they can sell it for quota money, for which they can buy In addition the people still need to finance the major- more energy–efficient technologies. In other words, we than their personal quota. Then they need to buy extra environmentally friendly goods, such as organic food ity of the investment as their own contribution, which would have an overall non-renewable energy consump- quotas to cover their excessive energy use. or the most energy efficient household appliances. This many of them could not afford. But with the revolving tion cap and quotas for achieving it. way they can improve their living standards. fund the logic and the working mechanism is different. grandma: And what if somebody uses less? As there is no own contribution required, everybody student: But who would have those quotas? student:I see. But what would happen to my parents could realise the energy efficiency investment, even in old man: Then they could sell it to get “quota money”. who live in an old block house? They use a lot of energy the poorest households. However, the full loan must be old man: First of all, individual people. Each person Also public and private consumer groups covering the for heating and thus have no possibility for energy sav- paid back, so the revolving fund would be replenished would get the right to use exactly the same amount of whole economy would have their quotas, as well as all ing, and have no money for energy efficiency improve- by time, this is why it is called revolving. And not only non-renewable energy in the form of those quotas. the countries in the EU. They could also trade using ments either. the state would be providing the funds for it. When the “quota money”. But people of course would still over-consumers buy extra quotas to meet their exces- susie: Non-renewable energy? Like oil? need to purchase energy for national currencies, when old man: Yes, you are right, many people could not do sive energy need, the price of the quotas would go into 30 they go to the petrol station or pay their electricity bill. that without external help. For that reason there would the fund in the form of quota money. This could be a 31 old man: Yes, it would include the petrol for your car, It would not change. be a revolving fund established. It would give loans for really significant sum. the electricity generated from gas or nuclear energy, or investments such as improving energy efficiency in the gas for heating. student: Then I do not understand. Why not using old block houses. So the house where your parents live student: And work like a negative feedback… normal money, why would you want to have “quota could get an interest free loan for energy efficiency im- susie: Then each and every person could use the same money” when selling the quotas? provements and your parents together with their neigh- old man: Exactly. The more energy people use, the amount of non-renewable energy? It sounds so great! bours could pay the loan back from the actual energy more they contribute financially to the revolving fund, old man: If we have such “quota money”, we can make savings - with their “quota money”. Such a fund could which in turn assists people and businesses in reducing student: How much would that quota be? sure that energy savings are only used for purchasing also give interest free loans to enterprises to develop their energy use. So the whole system helps to achieve goods and services that support the preservation of eco- environmentally friendly products and services or to the final target: to reduce the total non-renewable en- old man: It could be determined using the average level system services. Quota money could only be exchanged make their operation more energy efficient. ergy use of the whole economy. of consumption per person. Then it would be reduced to certified products and services, for example locally a bit each year. produced organic food or insulation of buildings for en- student: But there are already several governmental grandma: That sounds good, but there is one thing I ergy saving. In this way we could create a big secondary programmes, which support such investments. And am very much worried about. What if somebody cheats student: But what happens, if, for instance, somebody market for environmental goods and services. even better, they often give grants, not loans. with the quota money? For example somebody could lives in a village, and needs to use the car much more buy quotas of many other people. old man: It would not be possible to buy quota from old man: You should find out much more about this other people directly. Under-consumers could only sell system then. Contact the Resource Cap Coalition, their remaining quota to the quota managing organisa- where lots of experts and organisations discuss this and tion and get “quota money”. Similarly, over-consumers work for the promotion of this idea. Their web address Read the previous part of this story: could only buy extra quotas from that organisation for is: www.ceeweb.org/rcc. national currency. student: I will certainly contact them. What I like susie: And who will keep account how much quota about this scheme the most is that while limiting energy is left? use we could also curb the exploitation of other natural WHY DOES BIODIVERSITY resources. old man: The same quota managing organisation. Each LOSS MATTER? energy consumer would receive an electronic card with old man (smiling again): I hear you thinking aloud a PIN code. Whenever somebody pays energy bills, or about this scheme and I am full of joy, because we need Answers for ministers & children buys fuel at a petrol station, energy providers would reg- many thinkers and supporters if we want to make this ister how much is purchased. This information would world a better place. For example, we need politicians go to the quota managing organisation, which would devoted to the preservation ecosystems and sustaining regularly send out consumption statements to the en- human well-being on board. The nature and people can ergy users. Almost everybody uses bank cards and gets only survive if we can reduce the total consumption of bank statement nowadays, it would not be much differ- the natural resources. ent. In addition, this interest free alternative currency would only exist electronically. grandma: I wish politicians realised this!

student: It sounds very interesting, though I am not susie: I wish I could also enjoy beautiful nature when I sure if I fully understand it. am old... 32 old man: Well, this might sound complex at first for grandma: Look, Susie, our train is here! Come, we sure. These four pillars, namely the quotas, the revolv- must hurry to catch it! ing fund, the secondary market for environmentally friendly goods and services, and the advisory service, mutually reinforce one another and form a complex scheme. All these together are able to start radically transforming the production and consumption patterns of the economy and change the values of the people at the same time.

student: Pretty ambitious. I would love to know more available at about it. I think this could be even a topic for my thesis www.ceeweb.org/publications/english/Ministers_eng.pdf at the university. Why is today’s economic breakdown the eco- of questions about simple facts. Her grandma logical crisis of tomorrow? How is modern tries to answer her dilemmas but she soon finds economy related to the lives of ordinary people out: there are few who can… A young man in far-away countries? What are the main di- and an old professor come to her aid. Their rections of political decision makers and why discussion brings to light the most important are these not sufficient? These are complex relationships between the forces that shape and difficult questions – especially when an ea- our lives. Become part of this discussion and ger 11-year old wants the answer to them right be one of the few who see the deep causes be- now. Susie, a curious youngster already knows hind the economic and credit crunch and the so much about biodiversity and still – she is full degrading state of our natural environment.