Spiral Dynamics and MEMEnomics in Collaboration to Design the Next Global Financial Architecture 

Dr. Don E. Beck and I will be keynote speakers at the 75th Anniversary of the Bretton Woods Financial Conference this July which is taking place at the same center that held the original conference that changed the world. This invitation came about as the organizers of the conference, under the leadership of the late Bernard Lietaer, the co-designer of the Euro, studied my book MEMEnomics. The group then decided to gain a deeper understanding of Spiral Dynamics by studying Dr. Beck’s original book on the theory.  I was fortunate enough to meet Bernard in Boulder, CO in the mid 2000’s when he attended an event led by Dr. Beck. Then as fate would have it, we met again in 2013 in New York as we shared the same media publicist that was promoting our respective books.

The theme of the upcoming conference is Economics at the intersection of Humanity, Technology, Ecology, Governance and Markets. Dr. Beck and I will be the opening speakers on the first full day of this In-conversation-with conference format. The organizers would like our opening (in their words) to be a showcase of Spiral Dynamic to prime participants to start thinking differently about economic systems.

There will be many prominent attendees and speakers like Larry Summers, who was President Clinton’s Treasury Secretary and President Obama’s Chief Economic Advisor. I offer an analysis in my book about how Mr. Summers,  while in the Clinton White House contributed to the 2008 financial crisis by not heeding the calls of banking industry watchdogs to get Congress to regulate financial derivatives as gambling instruments. Then under President Obama, Mr. Summers replaced Paul Volcker as the incoming economic advisor for the fear that the addicted banking industry might not be ready for the type of regulation Mr. Volcker wanted to see.

Other speakers include the Director General of the European Central Bank and several EU Parliamentarians. From the private sector, Peter Thiel the co-founder of PayPal, and Patrick Byrne, CEO of online giant Overstock will be among many digital economy entrepreneurs attending. Other organizations represented include: The IMF, New America, Poverty Action Lab, Council on Foreign Relations, The Buckminster Fuller Institute, National Geographic, CARE, The Nature Conservancy, MIT Innovation Lab, The Financial Times, The Schumacher Center, & The Institute for New Economic Thinking. Of people known to the Integral and Spiral Dynamics communities, Charles Eisenstein is scheduled to speak as well. Charles is the author of several evolutionary consciousness books including Sacred Economics, and Climate, A New Story.

The Evolution of Bretton Woods

The original 1944 conference was organized by US President Franklin D. Roosevelt who invited delegates and heads of states from 44 different countries to create a post WWII economic and financial blueprint. John Maynard Keynes, the most prominent economists at the time was the master architect behind the conference that gave the world the current global financial and economic order. This was the event that gave birth to so many institutions born out of a new global paradigm on peaceful trade and development. It made the US the economic superpower it is today. It gave the world the International Monetary Fund and The World Bank, and made the US Dollar the de facto reserve currency for the world. It also gave us a preview of how a resilient Blue system (regulatory structure that understands economics) in government can direct economic policies and nudge a culture towards systemic prosperity by providing smart regulation that anticipates the Orange system’s (free market capitalism) every move and keeps its exploitation in check.

These values, which represent the Patriotic Prosperity Cycle in my book, were with us until the 1970’s when runaway inflation and  budget deficits made it impossible to keep the dollar pegged to the gold standard. That’s when President Nixon allowed the US currency to float and become a fiat currency backed only by the word of our government. The cycle entered the decline phase thereafter as Germany left the Bretton Woods Agreement, and the world was hit by the first Arab oil embargo. Its final entropy phase came during the Carter years when any and all measures of Keynesian economics failed to tame double-digit  inflation and runaway interest rates that were choking any meaningful economic growth.

As Keynesian economics waned in the US, it was replaced, with much fanfare by Monetarism, with Milton Friedman as its ideological father. This is the Orange economic phase I call the Only Money Matters Cycle in my work. Beginning with the Reagan presidency, the institutions created by Bretton Woods shifted from a trade, reconstruction, development and humanitarian mission, to mostly a banking function motivated by profit. Today these same institutions are the main reason why less developed countries remain in a perpetual downward spiral of debt that can never be repaid. (Click here to read my 2009 published piece  about the value systems structures that made this possible).

The push to develop the entire world into this peaceful commerce paradigm went into high gear under the Monetarist ideology and became instrumental in continuing the goal of ending wars against each other. But, as we came together to end wars through the virtues of free markets, and an insatiable appetite for consumption, we collectively and inadvertently waged a slow but deadly war against Mother Nature’s key ecosystems.

This will be the monumental challenge this conference needs to address. It seems that from the diverse list of attendees, speakers and the institutions  represented, this might just be the right place to start work on a new blueprint that reframes human activity as part of the planetary ecosystem. While the conference might not hold the same CAPI* the original conference did 75 years ago,  the hope is that it can inform leaders on the type of institutions we need to design to effectively address the existential threats we as a humanity have collectively created for ourselves and the planet.

Although the event itself is not open to the public, here’s the link to its website for more information. https://www.brettonwoods75.org/

*CAPI stands for Coalescence of Authority, Power and Influence. It’s is an advanced Spiral Dynamics concept adopted from the Adizes Institute. It’s presence as a representation of systemic stakeholders, is an essential ingredient in the design of Large-Scale transformational systems.  

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THE CIRCULAR ECONOMY AND VALUE SYSTEMS

By special guest Michiel Doorn

The Circular Economy is the latest framework that has emerged in the area of “sustainability.” The framework took off about ten years ago, buoyed by the efforts of the Ellen MacArthur Foundation and others and builds on Cradle to Cradle, Industrial ecology, Biomimicry and a few other concepts. Several European countries have adopted circular economy goals, as has the European Union, and even some American cities. Recently, it was embraced by the US Chamber of Commerce. This means it is either a true revolutionary breakthrough or yet another greenish bandwagon that organizations can jump on. The quick answer is, of course, both, depending on the perspective one is coming from. So let’s dig a little deeper and see if we can analyze it from a value systems perspective.

What is the Circular Economy? As one might expect, there are now numerous definitions, but sticking with aforementioned Foundation, The Circular Economy aims to redefine growth, focusing on positive society-wide benefits (Looking beyond the current take-make-waste extractive industrial model). It entails gradually decoupling economic activity from the consumption of finite resources, and designing waste out of the system. Underpinned by a transition to renewable energy sources, the circular model builds economic, natural, and social capital. It is based on three principles: 1) Design out waste and pollution, 2) Keep products and materials in use, 3) Regenerate natural systems.[1]

This is a mouthful and a lot to unpack. What is key is that the Circular Economy is based on ecological principles. In nature there is no waste as all waste becomes food for other organisms. The only source of energy for this process is sunlight. Hence, the inclusion of renewable energy in the definition. Nature is a self-regulating system and the Circular Economy tries to be like nature. This is an excellent concept; first, because we know from observation that nature has been doing really well for eons, as long as stray asteroids or humans don’t mess with it too much. And secondly, many of today’s social, economical, ecological, and other, problems are now so complex that solutions will haveto be crafted  from a systems perspective, as Donella Meadows, Peter Senge and others have been saying for years.

So, what is the opposite of and the precursor to systems thinking? Of course, linear thinking, as well as analytical thinking. the original meaning of the word analysis is to cut problems up into categories that can be dealt with separately. At this point it is helpful to take a look at how our thinking has evolved when it comes to “sustainability,” indicated in Figure 1.[2]

Figure 1 shows that sustainability thinking has evolved over time, and can be correlated to the evolution of our ability to take more complex perspectives as shown on the left.
The figure does not show how outside drivers have also grown in complexity, starting with sewage running down the streets in large cities, all the way up to today’s climate crisis and ecosystem collapse. What the figure does include is a description of potentially matching leadership styles on the right. It is important to note that we can make strategic choices (the double-sided arrow), where we may choose to apply more linear or simple solutions to particular problems, as long as we do so consciously.

Spiral Dynamics buffs will have no problem recognizing hints of the common value systems in the diagram. However, the leap in thinking from linear/categories to systems should not be mistaken for the notorious Leap to Second Tier or Yellow. The Circular Economy is not there yet and seems to be firmly embedded in Orange-Green. This explains why the Chamber of Commerce and many large companies are excited by it. There are several reasons why the Circular Economy, while being complicated to implement, is not as advanced and potent as it may seem.

First, the Circular Economy does not remotely change the eternal economical and financialgrowth model, and we can basically continue what we’ve been doing all along. Second, for large companies that make their money with extractive models that take from nature and return unusable waste to our air, water or soil, there is too much at stake to change. When we look through an ecological lens they are not so hard to spot. Third, on top of the challenges from the current economical-financial-politcal steam roller, less advanced leaders will see the Circular Economy as something that may simply help them save costs or bring new revenue. After all we make meaning from where we are at. However, as Bill McDonough says “less bad is not the same as good,” let alone regenerative.

This is probably why there are still few truly circular success stories. Using our rational minds to design out waste, close the material loops and switch to solar is not enough. We will need to develop new business models that value sharing and leasing as opposed to owning. As the butterfly diagram shows, repair, reuse, refurbish and recycle are all business models that are quite different from what manufacturers are used to today. Advanced leaders (right side of Figure 1) know this but they will still need help. A significant switch to a Circular Economy begs for multistakeholder efforts and a strong support from regulators that get it and are not beholden to the existing powers. Especially important are innovative, tailored financial models for operations and investments.

On a final note, the Circular Economy offers no methods or models to handle our massive environmental problems that already exist (plastic in oceans, fish and our drinking water, omnipresent persistent pollutants, loss of biodiversity, etc.). Yet, the Circular Economy might be the stepping stone toward a value system where context, ie. environment, is becoming fully integrated into our reality and associated leadership. The upper layers in Figure 1 offer some thoughts. There is that one little phrase tagged on at the end, of the definition: “regenerate our natural systems.” I believe we can figure out most of what’s circular, if we really decide to commit and collaborate. But for a regenerative, mutually enhancing relationship with our planet we will have to go further, and deeper. We will have to learn what it means to work with nature, listen to her, and enter into relationship with her. When we are in a relationship, we care. If we don’t care, we risk losing everything.

Michiel Doorn is a sustainability thinker who lives alternately in North Carolina and the Netherlands. He is a founding partner of Circularity Edge (www.circularityedge.com) and has worked with Spiral Dynamics for many years. He is passionate about evolving awareness and associated action through coaching and experiential learning in support of all Life. He can be reached by email: michiel.doorn@circularityedge.com 

 

 

 

 

[1]For a visual, look up Butterfly diagram: https://www.ellenmacarthurfoundation.org/circular-economy/infographic

[2]Codeveloped with Edwin Janssen, Sustainable Growth Associates.

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