This past weekend, a bright Georgetown undergraduate asked me how I squared my passion for localization with the theory of comparative advantage. For economics newbies, he was referring to David Ricardo’s argument that every community should find one product to specialize in and trade for everything else. I gave my usual response that the theory is great – except for the thousands of goods and services that are cheaper to produce locally – but that answer left me uneasy. Once the dust settles … [Read more...]
Coronavirus and the Death of ‘Connectivity’
The Covid 19 pandemic is the second major crisis of globalization in a decade. The first was the global financial crisis of 2008-2009, from which the global economy took years to reach a semblance of recovery. We did not learn our lessons from the first, and this is perhaps why the impact of the second has been even more massive. Trillions of dollars of paper wealth went up in smoke during the 2008 crisis, but few cried for the out-of-control financial players who had triggered the crisis. … [Read more...]
5 ways coronavirus could help humanity survive the ecological crisis
The human tragedy of the coronavirus is immense. Thousands have died, hundreds of thousands have been infected globally, and millions more have been affected. Whilst infectious disease has always been a part of the human experience, the expansion of industrial civilization has inexorably amplified the risk of new diseases. Uncontrolled industrial expansion also dangerously heats the planet and drives the collapse of ecosystems worldwide. Experts like Professor Jem Bendell and philosopher … [Read more...]
Step Aside Agribusiness: It’s Time for Real Solutions to the Climate Crisis
The recent UN Climate Action Summit was tricky for agribusiness CEOs. With forest fires raging in the Amazon, a damning new report about the food system by the International Panel on Climate Change (IPCC), and millions of young people out in streets clamoring to shut down fossil fuels and factory farming, it wasn’t easy for the world's largest food and agribusiness companies to get away with another round of voluntary pledges to reduce their gigantic emissions. At the last UN summit on … [Read more...]
Resist Globally, Renew Locally
A recent discussion forum among the members of The Great Transition Network focused on “The Promise and Pitfalls of Localism.” My friend and colleague Brian Tokar started the discussion by noting that even though there is a resurgence of progressive action at the local level, “reactionary nationalist movements in Europe and beyond seek to position themselves as the true voices of a renewed localism.” Both parts of Brian’s observation are correct. But the fact that the language of localism is … [Read more...]
Local is Our Future
[The following is an excerpt from the first chapter of Local is Our Future: Steps to an Economics of Happiness, a new book by Helena Norberg-Hodge, published by Local Futures in July 2019.] For our species to have a future, it must be local. The good news is that the path to such a future is already being forged. Away from the screens of the mainstream media, the crude ‘bigger is better’ narrative that has dominated economic thinking for centuries is being challenged by a much gentler, … [Read more...]
Connecting the Dots: Insane Trade and Climate Chaos
Imagine a world where food routinely gets shipped thousands of miles away to be processed, then shipped back to be sold right where it started. Imagine cows from Mexico being fed corn imported from the United States, then being exported to the United States for butchering, and the resulting meat being shipped back to Mexico, one last time, to be sold. Imagine a world in which, in most years since 2005, China has somehow managed to import more goods from itself than from the USA, one of its … [Read more...]
Growthism: its ecological, economic and ethical limits
We have many problems – poverty, unemployment, environmental destruction, climate change, financial instability, etc. – but only one solution for everything, namely economic growth. We believe that growth is the costless, win-win solution to all problems, or at least the necessary precondition for any solution. This is growthism. It now creates more problems than it solves. A journey of no return, not a circular economy The economic process is not a mechanical analog that can be run … [Read more...]
How bad is global inequality, really?
Most everyone who’s interested in global inequality has come across the famous elephant graph, originally developed by Branko Milanovic and Christoph Lakner using World Bank data (see below). The graph charts the change in income that the world’s population have experienced over time, from the very poorest to the richest 1%. We can update the elephant graph using the latest data from the World Inequality Database, which covers the whole period from 1980 to 2016 using a method … [Read more...]
Saving Japan’s seed heritage from “free trade”
I recently had the opportunity to interview Masahiko Yamada, formerly Japan´s Minister of Agriculture and now one of the country´s foremost food sovereignty activists. We met at an international Economics of Happiness Conference in Prato, Italy, where Yamada delivered a keynote speech about the birth of a new citizens’ movement to protect Japan´s food-crop heritage from corporate take-over. Keen to learn more, I ask Yamada for an interview before he departs Italy. With only an hour to spare, … [Read more...]