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Meet the Existential Heroes and Heroines of the Regenerative Economy

1/24/2014

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posted by Susan Arterian Chang
It was Albert Camus who said that “true generosity toward the future consists in giving everything to the present.” Those words are fraught with exceptional meaning for existentialists like Camus who believed that there was no intrinsic meaning in life but what we as human actors infuse into it. 

We could say that people who “give everything to the present” in the belief that against all the odds they will be able to make meaningful contributions to the seemingly insurmountable social and ecological challenges of our time are today’s true existential heroes and heroines. The Field Guide to Investing in a Regenerative Economy seeks to honor them and their work through storytelling.

Since we launched our new Field Guide website last month we have been both humbled and energized by the conversations we’ve had with the leaders of projects and businesses around the country who responded to our “Share Your Regenerative Story” invitation.

These are people who forge meaningful connections where none previously existed. Jane Hatley at Self-Help Credit Union understands that if a community wants to build resilience it needs to put its money where its mouth is and finance the businesses that keep it firmly grounded in place.  Sarita Shaffer of Viva Farms sees the tremendous potential of the immigrant agricultural workforce to power the economic and social transformation of our food system.  Jess Daniel of Detroit Kitchen Connect, a self-described hipster, is willing to continually put herself in uncomfortable places because she holds two competing realities in her mind: the need to address the short-term health and wellness of the people of Detroit as well as the long-term systemic shifts required to sustain the health and wellness of people and planet in the long term. Tom Eggert sees in the success of Wisconsin Microfinance a way for academic institutions around the world to leverage their existing relationships in developing nations to empower the impoverished using the tools of microfinance.

No one of these projects exhibits all the qualities of the emergent regenerative economy we are seeking, but taken together they point the way. What’s more, every project leader we spoke to expressed a refreshing eagerness to explore with us where their projects needed to push the regenerative boundaries.  In fact, they told us that exploring those edges was the most exciting place for them to work. 

These modest, audacious, and ever questing people cannot help but make you feel that there is, after all, a meaningful regenerative scaffolding being constructed in far flung locations around our beleaguered planet and fragmented social systems.

We have more stories in our hopper, which we will continue to share. And soon we will have a map that will help illuminate the hotspots of regenerativeness.  We hope you will engage with us by offering us more of your stories. In particular, in the next phase of our storytelling collaborations, we will be actively seeking out local businesses that have developed innovative collaborations with larger businesses that allow both to operate more regeneratively. That means we will be looking not only at the ecological impacts of these projects but how they infuse meaning and holistic value into the lives of their partners and into the places where they operate.

And while the Field Guide has up until now highlighted relatively small scale but replicable projects, in our next phase we will also be telling the stories of  larger scale initiatives sponsored by larger corporations when they demonstrate the power to rapidly ramp up the regenerative economy as we are coming to define it.  In other words, we know the road to the regenerative economy is a long one and we need to get there fast.  We have no choice but to work toward it from the grassroots up, the top down, and everywhere in between.

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Startled by the Clarity of Regeneration

12/17/2013

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posted by John Fullerton

Several years ago, my friend and Capital Institute Advisor Simon Rich introduced a group of us to the hauntingly poetic wisdom of T.S. Eliot:

We shall not cease from exploration 
And the end of all our exploring 
Will be to arrive where we started 
And know the place for the first time. 


- “Little Gidding” from the Four Quartets


Put into the context of our work,
exploring for an economy that serves people while respecting planetary boundaries, Eliot's comforting words remind us that the answers are already in front of us if we can only learn to see.

At first slowly and steadily, and then recently with the rush of overwhelming force, I feel we too are arriving where we started and getting a glimpse of this “place” of regeneration – and indeed, the potential of a regenerative economy – and truly “knowing it” for the first time. 

Our particular “exploration” is comprised of two complementary and reinforcing streams.  First is the practical discovery of regenerative initiatives and practices manifesting in the real world through the “Field Guide to Investing in a Regenerative Economy,” a project conceived and directed by my highly intuitive colleague Susan Arterian Chang, and through my own impact investment practice of
Level 3 Capital Advisors, together with close investment partners and collaborators such as Armonia and RSF Social Finance.  This practice-led work is complemented and augmented by our intellectual quest for an over-arching conceptual framework, in collaboration with trans-disciplinary scholars and practitioners too numerous to name here.  What is emerging from this “practice informing theory” exploration is an alternative conceptual framework for an economy, grounded in a holistic, living systems worldview, that works for both people and planet over the long run.  We call it a Regenerative Economy.

Regeneration is not a new theory; it is not a political philosophy of the left or the right, nor simply a new name for an old idea – "sustainability." Regeneration defines the evolutionary process itself, and it is our task, now, to bring our economic system into alignment with it. When we do, like turning a canoe downstream after a long struggle against the current, our journey will be lightened, our destination assured. 


Please make some time – now or perhaps over the holidays - to explore with us the regenerative economy emerging in plain sight, here, through our
Field Guide microsite, which we’re launching today.  Please, too, embrace our invitation to share your own regenerative stories with us and our community.  By creating a dedicated place for the Field Guide, we hope our audience will better be able to experience the interconnectedness of each of the initiatives. Like us, we expect you will see, and perhaps know for the first time, how they all become part of a greater whole, one story, the story of the emergent regenerative economy.

Two recent experiences exemplify the sudden rush of clarity we have experienced.  The first came from reading a beautiful new book,
Two Birds in a Tree: Timeless Indian Wisdom Tradition for Business Leaders by strategy consultant Ram Nidumolu. Susan Arterian Chang’s must-read companion blog  beautifully connects the wisdom of the allegory of the two birds to the “Levels of Work” regenerative design framework we use in our forthcoming paper “Regenerative Capitalism.”  A summary excerpt of the two birds allegory from Ram’s book can be read here (see Chapter 1, page 15). 

Ram’s illumination of the Hindu wisdom that he applies to business, if applied to the economic system as a whole, is unmistakably in alignment with our regenerative economy framework.  Indeed, as we discovered in our
3rd Millennium Economy project, the key insights of all the world’s wisdom traditions are remarkably in alignment with our modern scientific understanding of how the universe works, including the regenerative process that defines evolution, adding strong validation to the vision of a regenerative economy.  

The second experience came through an awe-inspiring connection recently facilitated by friend and colleague Leo Burke, professor at Notre Dame’s business school, with the brilliant and truly remarkable Dr. David Martin.  You need to read his
bio.

I will only touch on one aspect of Dr. Martin’s astonishing breadth of work, namely, his conception of “
integral accounting”[1],  a community (or business) self-assessment that attempts to identify that community’s value attributes beyond the financial, and harmonize them into a balanced system of wealth recognition and development.  Integral accounting moves us away from the habit of neo-liberal economics that views the world through a lens of “scarcity,” to a new way of recognizing the astonishing “abundance” that exists if we can open our eyes to see it.  

David described to us a few of the extreme examples of his group’s integral accounting initiatives, such as their work with the descendants of the horrific “Rape of Rabaul” (Papua New Guinea) where a population suffering from unspeakable pain (virtually the entire female population was raped during the war) underwent a regenerative transformation.   The “regenerative process” of integral accounting has catalyzed over ten thousand self-organizing, self-empowering projects around the world over the past ten years- utilizing the previously unmanifested potential that exists all around us if we can only shift our mindset to one of abundance.  Note how similar this sounds to Yorman Nunez describing to us the work of the Bronx Cooperative Development Initiative (for more about this project see our
Field Guide Incubator story):

"We are often cited as the poorest urban county in the country, with all these negative statistics.  But if you look at our potential, what we could potentially be… It is easy once you change the framework you are using to look at these things."
                                                                – Yorman Nunez, MIT CoLab’s Just Urban Economics

Once again, a powerful affirmation of the regenerative idea, and most importantly for me, the realization that the reason this framing resonates so strongly with so many people when they come into contact with it, as it did when
Bill Reed and Anthony Sblendorio introduced it to us at Capital Institute, is that it already is.  Regeneration is simply the description of the evolutionary process itself, never static, ever emergent. 

By naming it, and telling the story of the emergent regenerative economy made possible only with our growing collaborative community, we aim to accelerate its manifestation in the world.  By highlighting the positive and vital role finance must play
in service of its emergence, we hope to support its scaling up.   Through this process, we have begun to see clearly a new and positive purpose of capital – dare we say the essence of capital – so desperately needed, right now.  And…

We shall not cease from exploration 
And the end of all our exploring 
Will be to arrive where we started 
And know the place for the first time. 

                                                            

[1] Not to be confused with the also important “integrated reporting” work in progress under the leadership of IIRC and SASB.




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Two Birds, Levels of Work, and the Language of Regenerative Design 

11/18/2013

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posted by Susan Arterian Chang
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Ram Nidumolu interprets the Upanishad allegory of "Two Birds in a Tree" in his eponymous book, in this way: "It is the great quest to realize the higher, gold-hued bird within us while engaging with the world through the lower bird we embody. The end goal is business that is more holistic and sustainable in the long term because it continually nurtures the larger context in which it is deeply and existentially embedded."  We find this same notion, that all work is "elevated" when it is undertaken with a holistic intent, in the "Levels of Work"  Regenerative design framework of Carol Sanford, Bill Reed, and Pamela Mang, and in the very language of regenerativeness.


Last June Capital Institute held a small convening of interdisciplinary thought leaders to explore what we really mean when we talk about the Regenerative Economy and Regenerative Capitalism. In the months before we held "Beyond Sustainability: The Road to Regenerative Capitalism" we worked closely with two leaders of the Regenerative Design movement, Carol Sanford and Bill Reed. This was an exceedingly fruitful period for Capital Institute as we deepened our understanding of Regenerative Design and its roots in natural systems. Carol and Bill introduced us to a Regenerative Design framework called “Levels of Work.” We found this intellectual lens is helping us communicate with more clarity the elements of regenerative design that we see everywhere at work in our Field Guide projects.

Resilience...Necessary but Not Sufficient
Capital Institute embarked on our Field Guide initiative in 2010 to study projects and practices that we believed, largely on an intuitive basis, to be taking a truly holistic approach to nurturing all forms of capital—financial, natural, human, social, and even spiritual. We started out calling our study series The Field Guide to Investing in a Resilient Economy, but as our thinking evolved we decided to substitute the word regenerative for resilient in the title. Here's why.
 
The dictionary defines resilience as “the capability of withstanding shock without permanent deformation or rupture or the tendency to recover from misfortune or change.”  Striving for resilience is often considered to be the equivalent of striving for all the positive things we associate with sustainability.  But we began to wonder whether that was always true. For example, we recognized that our flawed financial system exhibited remarkable resiliency, bouncing back from its recent near-collapse.  However, it has, in fact, continued, in its relentless pursuit of exponential growth of financial capital, to drive the economy to the precipice of ecological collapse.  Hardly a desirable resilience from the point of view of the long-term sustainability of our planet or our economy!
 
Resilience is also a term increasingly used these days in reference to recovery efforts from natural disasters. We see this kind of resilience often necessary for long-term sustainability, but also sometimes problematic.  In New York post-Hurricane Sandy, for example, efforts to rebuild destroyed property, to defend property from rising sea levels, or to put in place a group of local first-responders are often described as attempts to create more resilient communities.  Some (although we might argue not all) of these efforts need to take place. Still, we believe they won’t be sufficient to address the long-term devastating impacts of climate change. To navigate the challenging times ahead will also require fundamental systemic shifts guided by a higher-order capability—the ability to regenerate.
 
Regenerating is not about merely rebuilding what was, or even making what exists today more efficient or better fortified, although these activities may be important.  Regeneration is about taking a systems level, developmental approach to the work required to move a place, an entity, or a community toward the realization of its highest (and ever evolving) potential. 

We see this “reaching toward regenerativeness” everywhere at work in all our Field Guide projects.
 
Levels of Work ..."Above and Below the Line"
Below is a chart that illustrates "The Levels of Work," adapted from a paper co-authored by Bill Reed and Pamela Mang, “Designing from Place: A Regenerative Framework and Methodology”:



LEVELS OF WORK

Regenerate


Improve
                            above the line

below the line                         
Maintain

Operate 

 

When Sanford, Mang, and Reed talk about working  “Below and Above the Line,” they are quick to point out that all work at all levels is of critical value when the efforts are concerted.  The “Above the Line” work (improving and regenerating) is about bringing into existence a project’s, place’s or enterprise’s potential, finding its "essence."  But that “Above the Line” work will surely fail if the everyday, “Below the Line” work of maintaining and operating is not taking place in support of it.  Said another way, when “Below the Line” work is occurring without an “Above the Line” direction setting, it devolves into mere problem solving or “the putting out of fires,” and the higher-order potential of a project will fail to be realized.  
 
So the regeneration of a project, entity, or place requires that (1) its essence/potential be understood and reached for by all those engaged with it and (2) all Four "Levels of Work" are taking place in harmony with one another.   
 
Regenerative Grasslands
Examples from our first Field Guide story, Grasslands, a custom cattle-grazing business that operates under holistic management principles, are illustrative.
 
The Grasslands ranchers face numerous challenges  in operating and maintaining their business (“Below the Line” work).  For example they must sometimes manage difficult ground level conditions caused by excessive rain, and in the early days had to run fewer herds of cattle than was optimal because they had not yet convinced enough ranchers to become their clients—they had not converted enough of them to the value of holistic management!
 
As a result the “Above the Line” work—improving the quality of forage—can sometimes proceed more slowly than anticipated.  (Improving the health and biodiversity of forage is key to the success of holistic management of grasslands.) Nonetheless, one senses that the ranchers commitment to their work never wavers. That is because their "Below the Line" work is always deeply embued with a sense of the transformative potential of holistic management.
 
So, for example, as ranchers attend to their daily chores and challenges they are simultaneously engaged in “Above the Line” work as they seek, through observation, a deeper connection to the land.  As rancher Zachary Jones explains, they are all the while gaining “knowledge and understanding of the ranch lands themselves.” They are getting to “know what's over the hill, how the streams behave, what reservoirs hold up well, what paddocks provide better and/or worse quality (in context to all paddocks), how our labor can better be deployed.”
 
Grasslands ranchers talk about their commitment to their work in inspired, almost lyrical terms.  Rancher Brandon Dalton reports that his own “passion for conservation is deeply aligned with the examples he has seen of holistic management in action” and, he has always known that it was his life’s work “to pursue this direction.” He describes how holistic management enhances whatever it comes in contact with, and the positive energy that it unleashes:  "By enhancing the financial potential of ranching, holistic management makes it more attractive for young people to come back to the ranch (or to get into ranching despite growing up in town).  By enhancing the health of the land, people build genuine bonds with the land, and with others working under similar circumstances.  Holistic management practitioners … create tremendous positive energy directed toward those in the community with whom they interact.”
 
If we listen closely we hear all Field Guide project participants speaking in what can only be called the language of regenerativeness. As they describe their engagement with their projects—from the most mundane task to conceptualizing their organizational structures—it is clear that their work is infused with a passionate belief in their project’s transformative potential. In other words, here is “The Levels of Work” framework of Regenerative Design truly "at work" in the world. 
 
We will be taking a closer look at the language of regenerativeness as expressed in other Field Guide projects through this lens in upcoming blog posts.—Susan Arterian Chang
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    John Fullerton is the Founder & President of Capital Institute.

    Susan Arterian Chang is Director of Capital Institute's Field Guide to a  Regenerative Economy project.


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THE FIELD GUIDE TO A REGENERATIVE ECONOMY

The Field Guide is a project of Capital Institute, a non-partisan think tank exploring the economic transition to a more just, regenerative, and thus sustainable way of living on this earth through the transformation of finance.  Our Regenerative Capitalism framework is the source code for all our work. Since 2010, The Field Guide has been telling the stories of projects and enterprises of the emerging Regenerative Economy.  It is Capital Institute's attempt to link theory with practice, shining a light on how the Regenerative Economy is emerging in the real world, if only we have eyes to see.



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