Using finance to 'grow' the commons
Use finance to grow the commons and restore the natural generative and replenishing functions of the economy, revalue future value, find KPIs that measure progress and the actual creation of common wealth and abundance.
[Current  capital flows are used to perpetually multiply themselves while  escalating demands on the commons, even as it becomes unprofitable, brittle and toxic.  To restore the natural generative and  replenishing functions of   finance and the economy and better match  resources  with needs, we must  find ways to use finance and finance instruments to revalue future  value and to grow the commons, in particular to use derivative as a  measure of growth of the commons, and to revalue future value.

The   transition to a circular economy for the investment and financial commons must start at natural limits to profitable growth for the sake of growing and for vitality and growth of the commons,   sustaining investment profitability and guiding  investors to higher   purposes for their profits than putting money into the productive  economy to take growing amounts out of it. 

Trends & Existing initiatives
  • The Giving Pledge is a move in this direction, that needs to be adequately channelled... 
  • Financial & investor markets and searching for sustainable returns
  • Endowment funds for community, commons and sustainable innovation.
  • Business communities searching for sustainable investments and products
  • Risk Management, (re)insurance companies looking to reduce their risk
  • Crowdfunding alternatives]

References: 
  • Bernard Lietaer <<Find the relevant reference>>

Dynamics at work:   
  • Risk approach
  • Future value approach. Use of negative interest  rates to promote long  term  investment in productive activities (see  Bernard Lietaer) as  against  the compound    growth driver which is compound  interest that  systemically  reduces    future value to negligeable.
  • More    trivially, shifts  from taxing income to taxing depletion of  commons    such as non  renewable  resources and waste will reinforce this,  as    will real world  commodities  and energy price rises. The removal of     perverse subsidies  which promote  extraction over regeneration or    stock  over flow would  add impetus.
  • The    practical  transition is for investors of all kinds to find   higher    purposes for  their profits, such as healing both their world   and    environment,  avoiding direct liability for growing hidden   impacts,  and   in the spirit  of the commons and well-being.    Developing some    responsiveness to the emerging and unexpected needs   of their    environment, and ready to explore errors and omissions in   their own    teachings and past conclusions, that living  in a changing   world may   make important. See articles A biomimicry for    self-regulating commons   and Self Organization as niche making

Who?Local   and regional communities and stakeholders -the people, business   community, Insurance sector, Finance sector, Investors, regulators,  consultants,  economists

  • Detailed Action Items: [Expand more?]
  • Research the natural functions of the economy
  • Research and develop new financial and monetary systems
  • Find   ways to indicate the  profitability to the  whole of different kinds   of  investment, creating a  new kind  of  financial  commons guided by    transparent policies for whole system profitability (see Assessment,   reporting & monitoring section). 
  • Develop endowment funds and safeguards for commons based investments  (against volatility and cooption -misdirection of funds)
  • Look at how Social Impact Bonds can be used to grow the commons.
  • Work with insurance companies to embed the value of the commons in risk approaches 
  • Research   ways to evaluate and revalue future value of the commons. In  particular  find alternative incentives to compound interest as growth  driver that  systemically reduces future value of an investment to  negligeable (see  Bernard Lietear - negative interest rates). 
  • Look   into shifts from taxing income to taxing depletion of commons such as   non  renewable  resources and waste. The removal of     perverse   subsidies  which promote  extraction over regeneration or    stock   over  flow would  add impetus.
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Using finance to 'grow' the commons
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