Almost half of humanity lives below $6.85 per day. This population does not consume goods and services at a rate exceeding Earth’s capacity. Yet here we sit, on the wrong side of six of the nine planetary boundaries identified by the Stockholm Resilience Centre.
How did we get here? Via the economic activity of the other half of humanity. The planet, and all its inhabitants,
“Give a man a fish and you feed him for a day. Teach him how to fish and you feed him for a lifetime.” The Western-led international development sector, born in the aftermath of World War II, has evolved according to this (ironically) Chinese proverb. To better reflect the status of international development, I would append the following sentences to the worn-out proverb: “Use advanced extractive technology to harvest all the fish from the man’s ocean,
What is your reaction when you hear the tagline “city with the highest GDP per capita in the United States”? Perhaps you would like to live in that city. Perhaps you think it sets a positive example for other cities. If so, you are not alone. Corporate and political leaders have been prioritizing economic growth for decades, and this mindset has trickled down until it has saturated the public.
The problem is that there is a fundamental conflict between economic growth and environmental protection.
Like the economy of nature, the human economy has a “trophic” structure. In nature, nutrition and energy flow from plants to herbivores to carnivores, with each of these comprising a trophic level of the ecosystem. In the human economy, materials and energy flow from agriculture and other extractive activities to heavy manufacturing to light manufacturing. Both economies include service providers, such as pollinators in nature and the transportation sector in the human economy.
Though it’s easy to lose sight of, with our language and culture and smartphones, Homo sapiens is an animal species that exists within natural ecosystems. All our activities, including our economic activities, take place within and depend upon these ecosystems. This is the starting point for the trophic theory of money (TTOM).
“Trophic” refers to the flow of nutrition and energy. In the economy of nature,