We have a global money system that must grow in order to survive, even if the real economy does not. Everything in nature is subject to deterioration, but money is immune to this. On the contrary, we have an interest-based economic system that is devouring nature in the name of growth. If this conversion of nature (commonwealth) into money happens at a rate faster than the rate of interest, then from a financial perspective everything is fine – although not necessarily from an ecological/social perspective. However, we are reaching the limits of our resources. So perhaps the end of growth in the real-world economy has arrived?
Is it possible to create a sustainable economic system when its very existence is based upon economic growth? Where does growth come from and how can we design our fundamental monetary structures to create wealth without growth?
Last Friday Pakhuis de Zwijger was most certainly the birthplace of some cutting edge thoughts and ideas about the circular economy. What fundamental institutions, such as government structures and social networks do we need to facilitate a circular economy? During a workshop about circular money, some of the key components of a circular economy were linked to our money system. This resulted in a joint awareness that with our current monetary system the circular economy is and will continue to be hindered. The workshop was lead by Elisa Achterberg, project manager of Circular Finance at Circle Economy. Experts in the panel were United Economy, Social Trade Circuit Nederland, Alliander.Martine Groenewegen shared her knowledge on the development of innovations in biobased and circular economy.
Two masterminds groups of 40 participants with diverse backgrounds put their minds together in an attempt to create alternative monetary systems, aiming to find solutions to facilitate a sustainable circular economy.
Eight different circular money systems were designed during the workshop. In some of the design systems, speculation was abolished to prevent money leakage to virtual – speculative – economies and money accumulation. In others, local economy activities were stimulated through introducing a 0% or negative interest rates. One brilliant design took creation to the next level and appointed the earth itself as a bank. In other designs blockchain technologies were introduced to take care of the administrative tasks together, instead of a centralised institution.
The outcome was a stream of interesting and inspiring ideas to draw further upon as we take more concrete steps to make a circular economy happen. One goal that recurred in all the system designs: the inevitable necessity to reconnect money with nature and the real economy. For thousands of years, before it took a life on its own, money was just a tool instead of an end on itself. And now, by an energy-fuelled fate we arrive at the point where we have to match the flow of money systems with the flow of intelligence within natural systems.
Driven by the outcomes of this session, Circle Economy continues to expand this topic and create pathways for applying new monetary systems. Solidair systems to turn the circular economy further into reality and stimulating collaboration.
We invite you – we challenge you – to join us in the conversation. Please share your thoughts with us on this topic and be part of our journey towards a circular economy.
