Let’s build a regenerative economy in the Genesee-Finger Lakes Region
Rochester Business Journal by Abigail McHugh-Grifa
April 6, 2023
Our current approach to generating wealth and meeting human needs is clearly problematic. We are destroying ecosystems, depleting the Earth’s resources faster than the Earth can replace them, and polluting the air, water, and soil on which our lives depend. We’re also dealing with myriad social crises, including the extreme inequality that causes some people to have far more than they need while others have barely enough to survive.
As I explored in some depth in my last column, the structure of our economy is a primary driver of these problems, because it operates according to a linear, extractive model that relies on the exploitation of natural and human resources to generate the products and services we consume. This model can be appropriately described as a “take-make-waste” economy, or “dig-burn-dump” economy. Though the circular economy framework is a step in the right direction and has gained traction over recent decades, the Circulatory Gap Report shows that our economy is still over 90% linear, meaning that the vast majority of resources that enter the economy are wasted after only one year. And sadly, we have already destabilized Earth’s natural systems to a point where maintaining or sustaining them in their current state will not allow current and future generations to thrive.
So what’s the alternative to an extractive economy? I believe we need to repair the harm we have done and restore balance to the ecosystems that allow us to live safe and prosperous lives, by transitioning to a regenerative economy.
Regenerative economics is an emergent concept, for which there is no firm, universally-accepted definition. How people use and understand the term depends in part on their life experience and what sector or bioregion they focus on. That said, there’s a lot of exciting work happening around the world to understand what the economy of the future could/should look like and how to bring it about.
My burgeoning understanding of this is based primarily on (1) the eight principles of a Regenerative Economy developed by John Fullerton, (2) Kate Raworth’s Doughnut Economics model, (3) the work of the Wellbeing Economy Alliance, (4) Movement Generation’s Strategic Framework for a Just Transition, and (5) listening to 100+ episodes of the Next Economy Now podcast, which highlight real-world examples of business and community leaders who are putting regenerative economy principles into action. Though these thought-leaders use a range of terms to describe their vision for our economy (e.g., regenerative economy, wellbeing economy, life economy, next economy, etc.), their reasoning and goals are basically the same. I am personally drawn to the term regenerative, because it orients me toward specific strategies that address environmental issues (viz., the literal regeneration of ecosystems). That said, I’m much more concerned about the characteristics and outcomes of this economy than what we call it.
It’s also worth mentioning that my interest in regenerative economics goes well beyond my interest in climate change. There are an overwhelming number of crises in the world today that I personally care about and would like to contribute to addressing, but my time and energy are finite, so I’ve chosen to focus primarily on climate change and leave other issues to other people. This approach is practical, but not very satisfying, since I regularly feel ashamed and inadequate for not doing more to alleviate human suffering in other realms.
Learning about the distinction between an extractive and regenerative economy was a game changer for me, because now I see that many of the crises I’m concerned about have a common root cause. I can also see a path forward. Granted, it’s not a very clear path. We are deep in the wreckage of the extractive economy, so finding our way out is unlikely to be straightforward or painless, but I now detect a glimmer of light at the end of the tunnel, and thankfully I know I’m not the only one who is moving in that direction. This gives me hope.
It’s important to note that the regenerative economy conversation is not a debate about the respective merits and deficiencies of capitalism versus socialism. Though some nations are closer to achieving the regenerative economy ideal than others, no modern economy has fully moved away from the linear, extractive model, regardless of whether they call themselves capitalist or socialist. Also, because of the politically divisive discourse surrounding these ideologies, getting into that debate can quickly derail any nuanced, productive conversation about how to create an economy that supports human wellbeing. I therefore do my best to avoid that dialogic pit of doom.
So returning to the question of what regenerative economy means, I find it helpful to define both in terms of what it is and what it isn’t:
A regenerative economy is not (1) extractive, (2) wasteful, or (3) dependent/fixated on infinite, unfettered economic growth.
A regenerative economy is (1) infinitely sustainable, (2) intentionally designed to support life and repair/restore natural systems, (3) assessed according to the value of multiple forms of capital (e.g., natural capital, social capital, intellectual capital, technological capital, etc.), and (4) built on the assumption that humans are part of the natural world and are capable of living in harmony with nature and each other.
I’ll pause for a moment on that last point just to acknowledge that it probably sounds pollyannaish to suggest that humans could ever get along with each other across geographies, ideologies, and time, since we don’t have a great track record in that regard. There are certainly examples of human societies that prioritize shared prosperity and stewardship of ecosystems, but most readers of this paper probably grew up in a more competitive environment that was largely detached from nature, and it can be hard to imagine that something is possible if you haven’t experienced it directly.
Nevertheless, most of us would probably agree that inequitable resource distribution and environmental degradation cause a great deal of human suffering and conflict around the world. Although hoarding and fighting over resources has created great wealth for a small number of people, the vast majority of us end up worse off. This is a manifestation of the extractive, zero-sum, scarcity mindset that got us into this mess in the first place, and it doesn’t seem to lead to genuine happiness and wellbeing for anyone (even the ultra-wealthy). In other words, I sincerely believe that averting global climate catastrophe and reestablishing a healthy relationship with nature will require humans to get better at supporting and cooperating with each other. It doesn’t really matter to me if someone’s motivation is authentic care and compassion or “enlightened self-interest,” but acknowledging our interdependence does seem like an important first step.
Transitioning our region to a regenerative economy will take time and many collaborative partnerships. At the organizational level, we will need to fundamentally rethink how we do business and why we do business. At the individual level, we may need to rebalance our roles as producers, consumers, owners, and advocates. Since our region doesn’t exist in a vacuum, we’ll also need other people in other places doing similar work. Fortunately that is happening, but the scope and scale will need to ramp up quickly and dramatically.
I’d invite anyone who wants to contribute to our region’s efforts to (1) explore some of the aforementioned resources, (2) reach out to me to discuss opportunities for collaboration, and/or (3) attend our upcoming Climate Solutions Summit, where we will identify concrete actions that organizations and individuals can take to begin to build a regenerative local economy. Whether you are concerned about climate change or one of the many other challenges facing our community, I believe we can find common cause in creating an economy that operates in sync with Earth’s natural systems, repairs past degradation and harm, values multiple forms of capital, and builds the health and long-term resilience of people and places. We all participate in the current economy, so we all have a role to play in building a better economy.