A conversation with our economy — and the agreement to regenerate!
Let’s imagine having a status quo meeting with “the economy”. Like in any good meeting, we would start with a check-in on how things are at the moment (being a facilitator, I just can’t help myself ;)). The answer could sound something like this:
“How am I doing? … Really not well, I’m afraid… I’m constantly feeling the strain and pressure of relentless growth and short-term profit pursuits. I can strongly feel my health deteriorating — with environmental degradation, social inequality, and economic instability taking their toll. The climate crisis, resource depletion, and a widening wealth gap amongst others are symptoms of my failing condition. I can no longer sustain this ‘business as usual’ approach and am really scared and concerned that things will only get worse…”
Now, before we might follow our intuition and explore “What do you need dear economy to feel better and be able to heal?”, first I suggest taking a step back and have a brief look at what the term “economy” actually means:
The original meaning of the word “economy” comes from the Greek word “oikonomia” (οἰκονομία) and essentially means “household management”, i.e. the efficient use of resources.
How did we get to the state of an unhealthy meaning of the economy?
Over time, and in particular kicked-off by the Industrial Revolution, the connotation and meaning of “the economy” have evolved, reflecting changes in societal priorities, technological advancements, and global challenges:
- Industrial Revolution (shift towards a mechanistic and growth-oriented lens): During the Industrial Revolution, the economy began to be seen as a machine designed to maximize productivity and industrial growth. The focus shifted to mass production, efficiency, and wealth generation, with economic success measured by output and growth rates.
- 20th Century (shift towards national and global systems): As economies grew more complex and interconnected, the term expanded to encompass national and global systems. Economic health was increasingly measured by metrics like GDP, unemployment rates, and stock market performance. The economy was seen as a complex system of markets, industries, and financial institutions.
- Late 20th Century to Early 21st Century (shift towards technology, service-oriented and knowledge-based): The rise of technology and the service sector further transformed the economy’s meaning. Knowledge, innovation, and services became key drivers of economic activity, leading to new metrics and models for understanding economic health and growth.
The paradigm (and narrative) of the economy being seen as a well-oiled machine designed to generate wealth and drive progress is still extremely present in our economic debates and business world today. In this perspective, the focus lies on maximizing output and minimizing costs, with economic success measured by tangible indicators such as GDP and industrial output. This mechanistic view frames economic systems as precise, predictable, and controllable, much like a factory assembly line.
On top of this, the perspective of us needing to serve the economy (“earn our living”, “work hard”, etc.) and ensure it’s continued and constant growth, is extremely present — rather than what it actually should be: the economy serving us and the planet — to manage our “household” and efficiently work with the planet’s resources in a sustainable way.
As much as this machine-like perspective and approach had its “reason” during the phase and world view of the Industrial Revolution and has led to wealth and progress (to be exact: mostly for Europe as it was fueled by colonialism and therefore at the cost of other regions losing prosperity and wealth), it has in recent years shown its limitations and many negative effects on a global scale. This is due to oversimplifications (e.g. looking only at the effects for the “winners” of this system), neglecting the complex, interconnected nature of current economies and often completely overlooking the broader impacts on people (incl. the “losers” of economic activities) and the environment and the interconnectedness of our actions.
It is therefore becoming very clear:
We need a new perspective and narrative to be able to address the current challenges of our VUCA (Volatile, Uncertain, Complex and Ambiguous) world!
Coming back to the conversation with the economy, the questions we should therefore rather ask the economy (and ourselves) are:
- How can you manage our resources in a better, healthier way so we can meet our (social and planetary) needs sustainably in the long term?
- What do and should you and we value and is not yet included into our economic thinking and acting?
- How could you (the economy) look like to be able to serve all of our needs and values?
- How can the damage done over the past decades be regenerated?
- What narratives and perspectives are supportive of this regenerative paradigm and mindset shift?
So if the economy then responds to those: “What can I do? How can I change to fit what is needed?” — my answer would be this:
“Well, the good news is: There are already a variety of ideas, concepts and use cases available that look at exactly those questions and propose answers, compelling holistic narratives and concrete frameworks and tools.
Let me share a selection of those I have come across in my exploration journey (knowing that there are many more, which is great as they all challenge us to think about different facets of our complex world in a different way than the “machine-like, optimize for growth” paradigm). Why don’t you try them out and see what happens?”
Regenerative Economics:
The living systems worldview lies at the heart of Regenerative Economics. Instead of seeing the world as a machine, here it is viewed a living, interconnected system — more like a vibrant, diverse ecosystem. In this view, everything is interconnected and constantly evolving, much like how organisms in nature interact with each other and their environment. It’s about seeing the big picture, understanding the relationships between different parts, and recognizing the inherent complexity and dynamism of systems and therefore offers a more holistic view and approach.
In this approach, the purpose of organizations not only sustain life but also nourish and regenerate it. It’s about working with and learning from nature rather than against it, fostering resilience, diversity, and adaptability in our economic and social systems. It’s about recognizing that we’re all part of a larger living system and acting accordingly, with care, respect, and responsibility. (Learn more through the Capital Institute)
Degrowth:
Degrowth is an economic and social movement that challenges the traditional emphasis on perpetual growth as a measure of success. It advocates for reducing consumption and production in a controlled, sustainable manner to improve quality of life and ensure environmental sustainability. The perspective of degrowth is rooted in the belief that infinite growth on a finite planet is impossible and ultimately harmful. It seeks to create a balanced approach where well-being, social equity, and ecological health take precedence over economic expansion, promoting simpler, more community-focused lifestyles and the fair distribution of resources. (Learn more here)
Doughnut economics:
Doughnut economics reimagines the economy as a balanced space shaped like a doughnut, where the inner ring represents the minimum requirements for a good life (such as food, water, health, education, and housing) and the outer ring represents the ecological ceiling, beyond which environmental degradation occurs (such as climate change, biodiversity loss, and pollution). The goal is to ensure that no one falls short on life’s essentials (falling into the hole of the doughnut) while simultaneously ensuring that human activities do not exceed the planet’s ecological boundaries (overshooting the outer edge of the doughnut). This approach promotes a balanced, sustainable economy that prioritizes human well-being and environmental health. (Learn more here)
Circular economy:
The circular economy is an economic system aimed at minimizing waste and making the most of resources. Unlike the traditional linear economy, which follows a “take, make, dispose” model, the circular economy emphasizes the continuous use of resources by creating closed-loop systems where products, materials, and energy are reused, refurbished, remanufactured, and recycled. This approach reduces the need for raw materials, decreases waste, and limits environmental impact. The basic idea is to design out waste and pollution, keep products and materials in use for as long as possible, and regenerate natural systems, thereby creating a sustainable economy that supports long-term environmental and economic health. (Learn more here)
Not for profit or social business:
A not-for-profit (or often called social business) is a business model that prioritizes social objectives over profit-making. Unlike traditional businesses that aim to maximize financial returns for shareholders, social businesses focus on addressing societal challenges such as poverty, healthcare, education, and environmental sustainability. Profits generated are reinvested into the business or used to further the social mission rather than being distributed to owners or investors. The main idea is to use entrepreneurial strategies to create social value, empowering communities and improving lives while maintaining financial sustainability. (See my recent reflection “The good, the challenging and the potential of Social Enterprises”)
Economic democracy:
Economic democracy is an economic system where decision-making power is distributed among a wide range of stakeholders rather than being concentrated in the hands of a few individuals or corporations. It aims to ensure that workers, consumers, and the community at large have a say in economic policies and practices that affect their lives. This approach promotes greater equity, accountability, and transparency in economic governance. Key principles include employee ownership, cooperative management, participatory budgeting, and local economic development. By empowering people to participate in economic decisions, economic democracy seeks to create a more just and sustainable economy that reflects the needs and values of the entire community. (Learn more here)
If you want to get a bit more “practical” in this context, you can also check out the following actors and communities:
- Wellbeing Economy Alliance (WEAll) — with the aim of shifting the economy definition from “we serve the economy” to “the economy serves us”
- Doughnut Economics Action Lab (DEAL) — turning Doughnut Economics from a radical idea into transformative action.
Additionally, I can highly recommend this documentary film that goes deeper into some of those new economic ideas and practices and shares some concrete use cases, in a very accessible and easy to understand way: Outgrow the system
Why is this relevant for organizations and the business world?
Paradigms (which in turn are also expressed through narratives) significantly influence our mind, emotions, and behavior by shaping our perceptions, beliefs, and actions. The narrative and perspective of how we run the economy (machine-like and short-term, growth-oriented) is also omnipresent in how we behave and run organizations and businesses. It is integrated in how we set up organizations, how we manage them, the processes we design, the relationships we have amongst people within and in the environment of it, the goals we set, how we measure and communicate about success etc.
I would therefore like to leave you with some reflection questions that can bring us closer to a regenerative approach:
- What can organizations look like if we start using a “living, interconnected systems” perspective?
- How can we design organizations based on the principles of the Doughnut Economy or on circular economy?
- What if we put a social and environmental purpose at the center of our strategy and business model?
- What would our decision-making, leadership, organizational governance, culture, organizational ownership, relationships look like under those alternative lenses?
- What will happen if we look at and describe things differently using language and draw visions in a way that is more in line with the concepts mentioned before (e.g. living system vs. factory; circular vs. linear; there is an “enough” and we need to even degrow in some areas as we have gone too far vs. the push for unlimited growth; the ultimate goal and purpose of business is to meet a social and environmental need vs. increasing profit)?
We love experimenting with those questions and using tools and resources in the work we do that reflect those alternative perspectives (e.g. regenerative leadership principles, using the eco-cycle-planning tool for strategic reviews) — both in the work with clients but also for ourselves as a business that aims to be regenerative. This is what motivated me to write this article and share some of my learnings on the journey.
What next?
Now, as a last step in this conversation with the economy, I would definitively do a check-out. So: “How are you (dear economy) feeling after this conversation and listening to some of those alternatives?”
And my wish would be to hear something like this: “Wow. I am so glad we had this chat and I could share how things are with me right now. And those alternatives — they make me feel really optimistic that there is a better way! I am so excited to try them out and am curious how they will impact my state and health — I will keep you posted ;)…”
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If you are passionate about the topic yourself, are on a path to transform your organization and need support or have some insights you would like to share, let me know and let’s have a chat!
