Economic De-growth for ecological sustainability and social equity

Day 1 (April 18, 2008): Panel 4

Notes by Kealan Gell

Nicolas Louchet and Jean-Marc Deltorn: multiple benefits of localization

Localization, change in title

Jean-Marc Deltorn

Message: 1 economy is a network 2 complexity is key, for large scale

Complexity can be described by nodes or scale or degree of connectivity

Globalization increases complexity, per GDP as well as increasing interconnectedness

As scale increases, government increases as well. Separate and conquer creates layers and layers of systems. Nested sets of clusters. Adaptation fosters specialization. More complexities creates more management and form a posetive feed back loop, in terms of complexity collaboration, networking. System is becoming out of control complicated. Not necessarily bad

Shortsightedness.

Network is so intricate that we cannot trace the consequences of actions. We reduce the foreseeability and predictability of consequences of present and past actions. We are forced therefore to make short term decision because we cannot make long term. Good decision right now (rebound effect)

Small system – people are not specialized means that there is redundancy. You don’t need everyone. Whereas in big system you reduce probability that there will be intersection of know how between people or network. We don’t know how to grow food or make stuff.

Less trust when less local, social networks are weak.

Cost of over complexity increases . Benefits decrease and after a certain level, benefits of complexity reduce because innovation becomes more and more difficult.

Nicolas Louchet

Diminishing investment on system is not something we can solve with growth. We need – simplicity! We must decrease complexities, and it is not going “back” rather going “up” to an optimal point.

Everything can be done locally. Increase of specialization, globalization must be reversed. By increasing the scale, the consumer becomes closer to producers and the resilience of the system is improved.

We have more prediction, forecasts, records, track back, when we bring the economy home. We can then see the impact of our actions. Know how of people with then increase, intersection of knowledge increases. People can then interconnect and therefore the trust is much higher.

Current initiatives: see slide - highlighting local food movements, bringing people closer to their food.

Question: Complexity is decreasing with globalization and if we add local systems, complexity increases? System increases?

Pierre Courjaultrade: Is localization of economy a step towards degrowth?

Reads from slides directly… We’ve worked with ecological building materials.What is local? He has defined an area of ‘deep France’ local resources are traditional and picturesque. Reading from slides… How to leave an economic crisis? Competition versus differentiative advantage. Reading from slides… Short supply chain in both space and time means local…

Question: What will drive consumers to choose local?

Strategy of local actors in wine industry in France: they used the landscape, vine and historical significance and found success like this.

Question: Local production of computers?

No. Local repair of computers. We have enough computers already!

Maurie Cohen: The Nascent Policy Debate on Rationing

Common metaphor is “war,” on terror, on crime, on cancer, is it baseless blather? Or is it a legitimate way to frame political discussion? David Miliband suggests a personal carbon allowance equal for everyone… war on climate change.

Regulation of consumption during WWII rationing in the UK lasted from 1939 to 1954, there is much nostalgia about this. Many goods were rationed: food, clothes, petrol, no evidence people starved. Money on clothing (60%), household (?), driving (0%), food (80%). For the poor, food increased and improved fairness for all.

5 Lessons from history of rationing. 1) Open ended basis may not be politically acceptable 2) things are evolving 3) existence of a black market is guaranteed 4) must have public support which may dissipate 5) we know how to regulate consumption.