When the balancing act rocks the boat

When every solution seems to have big negatives it’s a sign that the system is out of whack, we need to look at the bigger, long term picture and think systemically.

Last week Treasury Secretary Tim Geithner told angry Congressman Committee that in deciding to bailout AIG, policy makers faced a “tragic choice” – do nothing or allow the entire financial system to collapse. Geithner, however, acknowledged that the bailout “sets the stage and sows the seeds of a future crisis.”

When President Obama recently said he reduce the deficit by cutting hundreds of billions from federal programs to cut the deficit, Republicans were quick to label the announcement as “too little too late.” On the other Democrats argued that cutbacks would thwart efforts to stimulate jobs and economic growth.

When EPA Administrator Lisa Jackson announced that the Agency would regulate carbon emissions to battle global warming environmentalists cheered while the fossil fuel industry and energy state Democrat and Republican members of Congress warned that the move would hurt the already battered economy and cause further job losses.  

In all three cases, predicting the outcome of a policy initiative is difficult. That’s typical of complex systems where “systemic instability reins” and where a push or jolt in any direction can have unforeseen results that extend into the realms of economics, politics, the environment and national security. Such systems lack resilience – the ability to absorb and recover from shocks and to adapt to changes.   One way to look at this is to imagine yourself in a canoe and one of your companions jumps up excitedly because he feels a bite on his line. The canoe starts to tip and you shift your weight to compensate; the canoe starts to rock and then a gust of wind reinforces your action and ……!!!  Canoes are not so stable. People have known this for a long time. Well before the tech age they have come up some very effective solutions. One is pictured below. 

Photo of canoe with an outrigger on one side of the canoe. If the canoe tips toward the outrigger, the outriggers buoyancy opposes the downward tipping. If the canoe tips away from the outrigger, the outrigger rises above the water but is pulled back by gravity. The young lads from the Island Kingdom of Tonga. Tonga is located in the South Pacific. Photo by Tau O’lunga http://commons.wikimedia.org/wiki/User:Tauʻolunga

So the question is how to build resilience into systems so that the boat doesn’t sink when “things happen.” Here is one example; Denmark has a big safety net; if you lose your job you get unemployment for four years (not months, years). So if you lose your job, you don’t lose your house. It’s not such a big deal. But other policies allow employers to fire workers with fewer restrictions; this allows companies to cut back readily during a downturn, but to higher back from a qualified pool of workers when business picks up. These two policies together work like the outrigger and contribute to the resilience of the system. Perhaps this “outrigger” has helped the country weather the global storm better than most. Forbes Magazine recently labeled the Denmark as the Number One Best Country for Business.(March 18, 2009). 

According to Forbes, “Because of high GDP per capita, welfare benefits, a low Gini index, and political stability, the Danish living standards are among the highest in the world.”

 http://www.forbes.com/lists/2009/6/bizcountries09-best-countries-for-business_Denmark_CHI001.html

The Danish mixed (welfare state + capitalism) is based on much higher tax rates. Currently raising taxes and so-called “entitlements” in the U.S. would be difficult. However, if we continue to see recession and high or higher unemployment rates the currents may shift.

The World According to Monsanto -- See the Video

 On March 11, 2008 French television (ARTE – French-German cultural TV channel) aired The World according to Monsanto by French journalist and film maker Marie-Monique Robin. If you are not already alarmed by Monsanto’s game plan to monopolize global food production with its “trans-genetic” crops, you will be after you’ve watched this documentary. It’s the same thing the big banks are doing – but this is our food. The video takes us on a long journey first through Monsanto’s “seedy” past as a chemical giant which covered up the dangers of its chemical products including PCBs and more recently its herbicide Roundup. The film then follows the company’s metamorphosis as a bio-tech firm specializing in genetically engineered mutations. In its last segments, we can follow Monsanto’s strategy to create a food system requiring Monsanto seeds and Monsanto Round Up – and its not just corn and soy beans.

The documentary features some compelling interviews and scenes of small farmers in Mexico and India who are fighting to survive the multiple economic pressures and poisons imposed by the onslaught of chemically-based monocultures. The only problem with the film is its length; it needs the hand of a good editor – either watch in sections or have lots of (non-GMO) popcorn and (non-high fructose corn syrup) soda on hand. You can watch the film on your computer by going to

http://twilightearth.com/environment-archive-2/the-world-according-to-monsanto-full-documentary/

After you’ve watch join the Pesticide Action Network’s (PAN) efforts to have the U.S. Department of Justice take forceful action against Monsanto’s monopolistic practices.  http://www.panna.org/resources/panups/panup_20100122

The Friday Funnies: Incredible new advances in energy saving biotechnology

Our first pick is this new D-20 Remote Sensing Home Alarm System: This system works on a biological technology proven to provide an effective alarm and deterring wannabe intruders. The system is ecologically sensitive and requires no electricity nor batteries containing toxic metals. For a complete discussion go to:  http://www.dogbreedinfo.com/care.htm
(Photo of Lady R. Cole, Canine, HeronThereFarms)




Second pick of the week: The Evapo-tech 200 (TM) is highly efficient and completely solar powered. 


The fresh air and sunlight imparts a delightful fragrance to the clothes. No chemical fabric softners or lint collectors needed. 
The Evapo-tech (TM) comes 2 varieties; the Spin-Tracker 5.0  (TM)   above right and the Fence Sitter  800 (TM) left. 




The current pick of green venture capital firms is a biotechnology first developed by     
 Ovis aries, Inc. This biotech start-up  dropped its patent on 
an ultra-ancient non-synthetic fiber known as 370 F-22 (TM).  
CEO Melinda Ewe (photo below) announced the move at the recent Fiber and Fabric 2009 EXPO (TM) at New York's Sheepshead Bay Ram-Mada.  
Ms. Ewe said that the firm's decision "is based on our desire to boost interest and sales of our technology." Ovis stocks shot up 22 percent following the announcement. 


The fiber is woven, knitted or crocheted into mittens, stockings, sweaters (modeled here by crochet artist Claudia Raskin, HeronThere Farms). The amazing insulating properties of the fabric can cut down the wearer's family heating bill  and carbon footprint. 


 Melinda Ewe, CEO, Ovis aries, Inc. 


 Photo by Andreas Cappell

Learning from Nature's Economic Success

Why do the problems we face, from economic meltdowns to ecological destruction seem so intractable? Why do so many of measures taken to solve problems seem to be ineffective or even counterproductive? What might work better? Let’s look through a different lens; Ecosystems, from forests to prairies to coral reefs, are not simply beautiful, they are first and foremost economic systems – systems that represent the most successful, enduring economies on earth.

A pound of forest soil contains thousands of bacterial species but also fungi, worms, beetles – gainfully employed, competitive, yet mutually contributing to the forest’s overall health. Ecosystems have no credit card debt, no inflation, and no federal deficits. Nothing is too big to fail and there are no government bailouts. Despite numerous cataclysms – ice ages and asteroid collisions life has evolved, adapted and thrived for 3.8 billion years.

Yet, rather than learning from nature we are assailing it with ferocity; the dominant economies are depleting fisheries, destroying forests, creating dead zones in coastal waters and uprooting traditional societies whose economies are closely aligned with nature. We are changing climate in ways that will create future displacements and economic havoc.

The presentation examines the elements of resilience and health in ecosystems and contrasts them with increasing systemic vulnerability found in the dominant human economies.

What we need is a restructuring of human economies in ways that capitalize on: (a) the resilient and resource efficient organizational arrangements found in nature and (b) mutually beneficial partnerships with natural systems.

The presentation draws on several positive examples – some by MOFFA entrepreneurs. So large a transformation from today’s economics to the economics of resilient health cannot happen overnight; however it is essential that we point our compasses for the right direction.

Why Color Me In! Has a good way to help African communities: Donate Now

Last week I posted an article on Color Me In! The organization that helps village groups by providing micro-loans paid back by planting trees (rather than in cash). Some profitable local enterprises have formed with some of them using profits to start community assistance programs. Here is why the program is good.

• Local groups decide what projects they want to borrow for -- know best what can boost the community and its economy -- and what fits well with the local needs/markets and culture.
• These investment provide business opportunities, jobs and incomes -- this is what is needed to prevent people from migrating to shanty towns where conditions are unlivable.
• The tree planting is ecologically beneficial -- preventing soil erosion, and sequestering carbon.
• The profits can be used to provide for additional community needs.

These are the reasons I have and will continue to contribute to ColorMeIn! Please Join me by using going to: Color Me In!

Paying back micro-loans by planting trees

Color Me In! is a non-profit organization that provides micro-loans for small business development in Zambia. The loan program has a unique feature – the local groups that borrow pay back the loans by planting trees!

How it works: Village clubs  do not usually have access to funding for important projects to improve community life. The loans work like this: A women's group or farming club composes a business plan and budget. Color Me In! (CMI!) provides the loans which the local groups pay back by planting trees – one tree per 50 cents borrowed. This satisfies up to 75% of the debt. In lieu of paying back CMI in cash, the group can submit a proposal to reinvest that payment in additional community projects.

To maximize its impact, Color Me In! partners with a volunteer organization working in the communities it serves.

Multiple Benefits:  The founder of Color Me In! Sarah Grant told us “CMI!’s green lending program not only helps develop local economics and protect vital natural resources, but also strengthens communities. For example, one women's club borrowed $1,000 from CMI! to begin a poultry enterprise. Subsequently it used a portion of its profits to provide $200 to a community-based organization that aids orphans and others with special needs. This organization, the Kaskota Social Care for the Vulnerable just opened its doors to its first 55 clients.”

 Sarah Grant and her vision: Sarah Grant is a former Peace Corps Volunteer who served in Zambia. She told us that she once asked children in her village to draw what trees are used for. “I was  shocked when drew coffins. CMI! wants to make sure that these children develop a very different views of trees and their lives.”

To learn more about Color Me In!, visit:  www.colormein.org