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Debt vs. Localization: Climate Justice in the New Economy

David Korten: Where does the concept of “climate debt” fit into a New Economy framework?

African climate change painting, image by Oxfam International

The people worst-affected by climate change—the developing world's poor—are also the ones who did the least to cause it. The image above is part of a collection from artists around the world who have painted canvases illustrating the human impact of climate change in their countries.

As the climate changes, the consequences for poor people in low-income countries—those who have had no part in the profligate consumption that created the problem—will be particularly devastating. This fact is bringing climate justice to the fore of the agenda for many progressive groups that deal with international issues. But even among those groups, all proposals for dealing equitably with the climate crisis are not equal. The differences between them highlight an important contrast between Old Economy and New Economy perspectives.

That difference is highlighted by blogs on the issue by two progressive friends and colleagues I greatly admire. A blog by Naomi Klein titled "Climate Rage" spells out the Old Economy’s “climate debt” take on climate justice. A blog by Gustavo Esteva with Juliette Beck, titled "Let's See Ourselves," presents a New Economy take that focuses on localization. The contrast between the perspectives brings to mind the wisdom of Albert Einstein, who observed that a problem cannot be solved within the same conceptual frame that created it.

The underlying values and intention of the two perspectives are much the same: Both recognize the seriousness of climate change and the need for decisive action to address the unjust burden that it imposes on the poor. The solutions they put forward, however, are strikingly different. I urge you to read both articles with the following observations in mind.

The climate debt approach calculates the economic cost, for poor people in poor countries, of the climate disruptions caused by profligate consumption in rich countries and demands compensating financial payment. The moral case is clear and unassailable, but by framing both the problem and the solution in financial terms, it embraces an Old Economy frame in which money is the defining value, power is conceded to those who control money's creation and allocation, and the remediation of environmental damage is simply a financial issue.

The foreign aid system within which I worked for some 30 years used the same Old Economy frame. In the name of helping the poor, that system consistently fed corruption as it transferred money from the poor of rich countries to the rich of poor countries. That money often supported aid projects that in fact transferred control of land and water resources to the relatively more wealthy—resources from which the poor traditionally derived their livelihoods. Rather than helping to balance the scales, this process accelerated the social and environmental destruction at the heart of current concerns about climate justice.

House destroyed by a hurricaneClimate Action What will it take to avert disastrous climate change?

Well intentioned though the climate debt solution may be, there is no reason to believe that a program of financial reparations from the global North to the global South will play out differently than the past 60-plus years of foreign aid. In itself, it will do nothing to redistribute wealth from rich to poor or to change the institutions and behaviors responsible for the climate crisis.

In contrast, by focusing on the local control and sustainable beneficial use of Earth's real resources, the localization perspective embraces the New Economy frame. It recognizes life, rather than money, as the defining value. It recognizes that the locus of power and leadership initiative must reside with local people engaged in stewarding Earth's resources to ensure sustainable livelihoods for themselves and their children for generations to come. They know the devastating consequences of the Old Economy from their everyday experience. They have the needed moral authority, the political power of numbers, and the necessary local knowledge.

As Wall Street has so dramatically demonstrated, the world of money is a world of illusions, accounting tricks, and scams by which the rich expand their control of Earth's declining base of real living wealth without the burden of producing anything of value in return. We must turn our attention to defining problems and solutions in terms of the goal of restoring and equitably stewarding Earth's real living wealth.

The foremost obligation of those of us who have been the beneficiaries of the rapacious excesses of the Old Economy is to change the way we live to dramatically reduce our burden on Earth's biosphere and bring an end to our expropriation of the resources of others. Restructuring and democratizing the institutions of money will be a necessary part of this process. It requires a great deal more than the climate debt solution of a money transfer. It requires changing our values, our institutions, and the way we live.


David Korten author picDavid Korten is co-founder and board chair of YES! Magazine, co-chair of the New Economy Working Group, president of the People-Centered Development Forum, and a founding board member of the Business Alliance for Local Living Economies(BALLE). His books include Agenda for a New Economy: From Phantom Wealth to Real Wealth, The Great Turning: From Empire to Earth Community, and the international best seller When Corporations Rule the World.

Interested?
More from David Korten's blog.

No Fairness, No Deal :: Only equity can break the North-South stalemate on climate change.

YES! Magazine encourages you to make free use of this article by taking these easy steps. Korten, D. (2010, May 12). Debt vs. Localization: Climate Justice in the New Economy. Retrieved February 03, 2012, from YES! Magazine Web site: http://www.yesmagazine.org/blogs/david-korten/debt-vs-localization-climate-justice-in-the-new-economy. This work is licensed under a Creative Commons License Creative Commons License


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Reader Comments

Localization

Posted by Bruce Elkin at May 12, 2010 04:23 PM
In the Summer '77 issue of the CoEvolution Quarterly, Michael Philips said, "The key ecological act that individuals can make is to reduce their income."

Obviously, he was talking about individuals in the wealthy west. But, even to do that, people need to think locally, and to develop connections and relationships with others in their locality.

Localization here, localization there, localization everywhere!

Great...to a point.

Posted by Marc at May 13, 2010 10:51 AM
I agree with the New Economy concepts of life as the defining value, changing the way we live to reduce our impact, and remaking the institutions of the Old Economy...regardless of a changing climate. And that's where I can't help but fault progressives in their strategy of attack for the so-called climate crisis. By singling out a cause for something that has been occurring throughout the millenniums, you automatically divide people. The article is premised on the idea that the climate wouldn't change if not for the 'profligate consumption' of wealth. That's propaganda. And propaganda divides people because it intentionally leaves out information necessary for people to have to believe they've considered the totality of an issue and have come to some sort of conclusion based on that information.

The climate has and will continue to change throughout time. Why don't we START with that? Seems like a much more progressive thing to do if we're really concerned about moral authority.

Debt Management Plan

Posted by habika smith at Jan 12, 2011 11:20 PM
The above statement is seen to be contradictory. The situation is very critical and need an experience complainer to resolve it. Hat’s off. Well done, as we know that “hard work always pays off”, after a long struggle with sincere effort it’s done. This conversation is going no where. It’s lacking the place of a good leader to head the things to come out on conclusion
======================
<a href="http://www.nocreditcardebt.com/[…]/credit-card-debt">Debt Management Plan</a>

BOTH Reparations & Community Control

Posted by Michelle at May 20, 2010 02:16 PM
Social movements must win BOTH-- reparations AND community control of our resources and lives. Cutting out reparations means ignoring the role of power in shaping what is possible. We must win a transition to an economic system that restores those things critical for our survival (including our relationships with one another) to the web of life and takes them out of the market sphere. But some communities have been robbed of the resources needed just to come to a basic level of well-being. And so the transition requires a returning of those resources to global south communities so that then can make the transition to thriving local economies rooted in ecological understanding.

New Economy, Which Way forward ?

Posted by David Dunn at Nov 12, 2010 02:10 AM
All the comments seem to have arrived at a similar, conclusion in that we need to protect our resources, need to protect the environment and also protect all of mankind against the worst of any potential economic and climatic changes.

We need to discuss more of the actual mechanisms that that can be used to arrive at this situation in the long term, so agreement on the problem and where we all want to get to is critical before a solution should be implemented, otherwise a crisis will force the issue and change will occur that we all will regret later through lack of basic understanding of the problem and over protectionism of some resources for individual or corporate needs.

The piecemeal adaption of legislation and objectives is mans failing in its objective of providing a secure and stable future for future generations, and if we look back at past civilizations, they all seem to fail due to the state becoming too big and to all controlling, therefore costing to much in resources and making the population lazy and then when a major natural disaster comes. Society has not the energy, skills or will to combat the problem and will then fail.

 We must learn from this and learn to respect the natural resources we all take for granted, and one way would be to tax all natural resources based on their environmental impact, or a carbon tax, these could replace all existing taxes in the long term, making the link between the resources we all need and the money system which has been controlled by the elite in society. This would break this link to large extent by taxing everyone on an equal basis, based on their consumption and disregard for the climate and environment.

It is a mind changer, it would change the way everyone thinks and considers the options on each individual’s way of life, and it would make everyone reconsider their own judgments about all aspects of their lifestyle and place in society.

In our democratic capitalist society, we expect to be rewarded for working hard and taking risks, and this aspect must be maintained in any system of governance that we wish to adopt, and with a universal tax system that is simple easy to collected from a few sources would enable the state to reduce its problems of fraud and tax evasion and the inherent problems of recovery. The very institutions that have tried in the past to make a better society have always over complicated the systems and then this allows the lawyers and fraudsters to find all the loopholes to enable them to corrupt the state institutions.

We need to fundamentally move from the present highly complex and historical based governance systems, to simple systems based on the resources we all dependent on. It is this common shared responsibility, that everyone has equal access to these resources that must be achieved.

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