Loo talks to Barry Coates, founder and CEO of Mindful Money, a charity dedicated to revealing the hidden streams of money that control the world and reclaiming their power for good.
According to economic theory, producers and consumers are behaving rationally. This is
true, but only in the short-term, for market players maximising their wellbeing here and now.
Since this rational behaviour is based on market signals that are not aligned with longer-term
public interests, it does not lead to long-term sustainable solutions (economic, social and
environmental). One can hardly claim that behaviour leading to the crises we face (climate,
biodiversity, health or social) and resulting in imbalances (between humans and nature, and
between current and future generations) is rational. It is thus essential to fix the market signals
and align them with longer-term public needs.
There is a delusion in the assumption that by greening the existing systems and structures of
production, which is important and needed in itself, we can deliver the necessary speed and
scale and provide convincing and sufficient answers for fighting climate change, biodiversity loss,
pollution and health implications.
To the current efforts to green the existing systems and structures of production, we must
add a system-based approach, which will not only address the supply side of the current
economic system, but also the demand side – existing (over)consumption and wasteful use
of natural resources.
We need to move from efficiency to sufficiency concepts. As clearly indicated by the International Resource Panel, we must strive for the decoupling of wellbeing and economic development from natural resource or materials use and environmental impacts.
The circular economy could play an important role, if we define circular economy in a systemic
manner to reduce not only waste but also space and material wastefulness within the systems.
We can choose to see it as a chance to fundamentally improve the systems that deliver core
material societal needs: mobility, housing, nutrition and everyday goods systems should directly
focus on societal needs instead of just increasing outputs and profits for traditional sectors.
For the first time in human history, we face the emergence of a single, tightly coupled human
social-ecological system of planetary scope. We are more interconnected and interdependent
than ever. Our individual and collective responsibility has increased enormously. There is no
way to escape the necessity for change. If we truly want “the future we want”, there is no way to
escape the creation of a “new normal” based on different premises, ethics and values.
Thanks for all the insights in this interview. I needed the reminder about staying connected to and conscious of where we spend and invest. Off to Mindful Money now to better understand my KiwiSaver fund :)
Loo & Barry, I am slightly embarrassed to be commenting again, but I do have to congratulate you both on a very fine interview. You had me spellbound for an hour, and so much came up in your discussion that I couldn’t help but agree with. Thank you both for such an insightful assessment of how we can contribute to a better future. Tur Borren
According to economic theory, producers and consumers are behaving rationally. This is
true, but only in the short-term, for market players maximising their wellbeing here and now.
Since this rational behaviour is based on market signals that are not aligned with longer-term
public interests, it does not lead to long-term sustainable solutions (economic, social and
environmental). One can hardly claim that behaviour leading to the crises we face (climate,
biodiversity, health or social) and resulting in imbalances (between humans and nature, and
between current and future generations) is rational. It is thus essential to fix the market signals
and align them with longer-term public needs.
There is a delusion in the assumption that by greening the existing systems and structures of
production, which is important and needed in itself, we can deliver the necessary speed and
scale and provide convincing and sufficient answers for fighting climate change, biodiversity loss,
pollution and health implications.
To the current efforts to green the existing systems and structures of production, we must
add a system-based approach, which will not only address the supply side of the current
economic system, but also the demand side – existing (over)consumption and wasteful use
of natural resources.
We need to move from efficiency to sufficiency concepts. As clearly indicated by the International Resource Panel, we must strive for the decoupling of wellbeing and economic development from natural resource or materials use and environmental impacts.
The circular economy could play an important role, if we define circular economy in a systemic
manner to reduce not only waste but also space and material wastefulness within the systems.
We can choose to see it as a chance to fundamentally improve the systems that deliver core
material societal needs: mobility, housing, nutrition and everyday goods systems should directly
focus on societal needs instead of just increasing outputs and profits for traditional sectors.
For the first time in human history, we face the emergence of a single, tightly coupled human
social-ecological system of planetary scope. We are more interconnected and interdependent
than ever. Our individual and collective responsibility has increased enormously. There is no
way to escape the necessity for change. If we truly want “the future we want”, there is no way to
escape the creation of a “new normal” based on different premises, ethics and values.
Thanks for all the insights in this interview. I needed the reminder about staying connected to and conscious of where we spend and invest. Off to Mindful Money now to better understand my KiwiSaver fund :)
Thanks Ant! Yes, I needed the reminder too. It's a great service Mindful money is providing. I've swapped mine over now and it was super easy.
Loo & Barry, I am slightly embarrassed to be commenting again, but I do have to congratulate you both on a very fine interview. You had me spellbound for an hour, and so much came up in your discussion that I couldn’t help but agree with. Thank you both for such an insightful assessment of how we can contribute to a better future. Tur Borren
Thanks Tur! I always appreciate your comments and encouragement. :)