Gaian

Economics
living well within
planetary limits
 Economic Key
Editors
Jonathan Dawson
Ross Jackson
and
Helena Norberg-Hodge

Gaian
Economics
living well within
planetary limits

Permanent Publications
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1 Shifting the Global Economy towards Sustainability

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 The Editors

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

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

HELENA NORBERG-HODGE is a leading analyst of the impact of the global economy on

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

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

1
Indian activist, Vandana Shiva, lays out the
core tenets of Earth Democracy; a philosophy
that celebrates diversity, seeks to give a voice
to species other than humans and attempts to
balance rights with responsibilities.

Rebuilding True Security in an

Age of Insecurity
Vandana Shiva

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

The Great Turning:

From Empire to Earth Community
David Korten

By what name will future generations know our time?

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

Sustainable Growth:
An Impossibility Theorem
Herman E. Daly

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

Shifting the Global Economy

Ross Jackson

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

Shifting Direction
Helena Norberg-Hodge

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

Beyond the Bailout:

Agenda for a New Economy
David Korten

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services industry. Here, he gives some illuminating and unexpected insights into the
post-peak-oil world that is looming on the horizon, and explains why re-localising is an
economic, as well as ecological, necessity.

Adapting to the Lean Economy

David Fleming

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movement that activates local citizen groups to take responsibility
for their own future in a world threatened by peak oil and climate
change. Here, he comments on David Fleming’s proposal on how
to reduce CO2 emissions while engaging ordinary citizens.

Descending the Energy Staircase

with Tradable Energy Quotas (TEQs)
Rob Hopkins

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

Global Warming and the South

Helena Norberg-Hodge

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

Climate Solutions: Part I

Comparing Alternatives
Ross Jackson

Summary
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Introduction
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550ppm CO2e
80
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References
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 Climate Solutions: Part II
The Carbon Board
Ross Jackson

Introduction
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Who buys the permits?

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61
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Who gets the income from permit sales?

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

67
Based in Lebensgarten ecovillage in Germany, Margrit Kennedy has perhaps done more
than anyone, over several decades, to critique conventional money systems and to pioneer
new complementary currencies. This article provides a comprehensive analysis of the
various ways in which money in its current guise is a key driver of today’s unsustainable,
inequitable economy. She also makes the case for regionally-based complementary
currencies and describes numerous schemes that are already in operation.

Financial Stability: A Case for

Complementary Currencies
Margrit Kennedy

Executive summary
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Comparison of Interest Paid and Gained

In ten groups of households of 3.8 million each reference year 2000.
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Interest gained on monetary and

80
fixed assets (incl. bank fees)

Interest paid for monetary and

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fixed assets (incl. bank fees)

60

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30

20

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

The Politics of Money

Hazel Henderson

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currency markets, where his clients included many of the international
banks which found themselves in severe difficulties in the financial crisis
of 2008. Ross is founder/chair of Gaia Trust, Denmark and majority
shareholder in organic foods wholesaler Urtekram A/S, Denmark.

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

The Saber: A Complementary

Currency for Learning
Bernard Lietaer

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T H E S A BER : A COMPL E ME N TARY C U R R E N C Y FOR LEARN ING 93

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“Saber” Complementary Currency System = Learning Multiplier

Saber allocation
among schools
Phase 1 Phase 2

Help for elderly

& handicapped
paid in Saber

7 year-olds
Cashing in of Sabers for
National Currency at
50% of face value
10 year-olds

12 year-olds

15 year-olds

Payment of
University Tuition

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

A Tale of Two Ecovillages:

Reviving the Health of Local Communities

Jonathan Dawson

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

Beyond Equality:
Work, Money, and Equality in the Economic
Fellowship of the Camphill Communities

Jan Martin Bang

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

The Second Foundation at The Farm

Albert Bates

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

The Permaculture of Pensions:

Making Savings work for People and Planet

Jonathan Dawson

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

Freecycle: Something for Nothing

Simon Bradbury

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Contents
Buddhist Economics
Simplicity: A Cool Lifestyle for a Hot Planet
Sarvodaya means ‘Everybody Wakes Up’
Designing your Local Economy
Rules for a Local Economy
In Defence of Pleasure: The Slow Food Movement
Tallying National Happiness
Economics of Happiness

113
This is a classic text in which E.F. Schumacher sets out the basis for a
moral economics by comparing the Buddhist and Western materialist
approaches to the subject. It puts people and the planet back at the
heart of the matter, with ‘economics’ as a means towards greater
health and happiness rather than as an end in itself.

Buddhist Economics
E. F. Schumacher

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

Simplicity:
A Cool Lifestyle for a Hot Planet
Duane Elgin

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Sarvodaya is the largest single member of the Global Ecovillage Network,
working as it does with over 10,000 communities throughout Sri Lanka.

Sarvodaya means
‘Everybody Wakes Up’
Joanna Macy

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Hildur Jackson, the primus motor of Ecovillage Design Education,
and co-founder of Gaia Trust, Denmark and GEN, provides an
historical contextualization for the ecovillage and engaged spirituality
movements and describes the importance of strong communities in
the rebuilding and designing of the ‘love economy’.

Designing your Local Economy

Hildur Jackson

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

Rules for a Local Economy

Wendell Berry

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

In Defence of Pleasure:
The Slow Food Movement
Aldra Robinson

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

Tallying National Happiness

The Japan Times, Editorial: Oct. 24, 2004

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

Economics of Happiness
Helena Norberg-Hodge

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

149
Drawing on a review of the history of previous civilizations, peak
oil commentator John Michael Greer makes the case for small-
scale decentralised economies in a low-energy future.

The Specialization Trap

J.M. Greer

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

Fifty Million Farmers

Richard Heinberg

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

Why you should Think Local First

Michael H. Shuman

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

Reclaiming Our Future:

Reclaiming Our Food
Helena Norberg-Hodge

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

Short Tails:
The Coming Small-Mart Revolution
Michael H. Shuman

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Economics of Solidarity:
Good Practice from within the Ecovillage Family

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The Economy of Auroville

Marti Mueller

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heart of the Earthaven community and explores the challenges and pitfalls
of developing a private economy within a communal experiment.

Will Earthaven become a ‘Magical

Appalachian Machu Picchu’?
Diana Leafe Christian

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

Powerdown and Permaculture:

at the Cusp of Transition
Rob Hopkins

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Contents
Financial and Legal Issues in Ecovillage and Enterprise Formation
Making a Business Plan
Preparing Feasibility Studies and Business Plans
Legal Entities for owning Ecovillage Land
Buying in – the Effect of an Ecovillage’s Economic Choices

219
Findhorn resident Alex Walker describes the various
options open for both financing and for legal
incorporation of organizations and enterprises.

Financial and Legal Issues in

Ecovillage & Enterprise Formation
Alex Walker

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support to a number of ‘green’ start-ups in Denmark. He is therefore well
acquainted with the evaluation of business plans from an investor’s viewpoint.

Making a Business Plan

Ross Jackson

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

Preparing Feasibility Studies

and Business Plans
Alex Walker

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

Legal Entities for Owning

Ecovillage Land
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Ecovillage’s Economic Choices
Tony Sima

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 Inspiration for
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