Wednesday, March 7, 2012

On Economy

I was asked to write more about alternative economies.

For now let me pass you forward to an interesting post today by Sami Groover on what environmentalism is. I thought he nailed it very well:

....This new concept of economics is not capitalism. It's not communism. And it most definitely is not consumerism. So what is it? I'm thinking "creativism" would be a pretty attractive term, if it didn't bring up connotations of a whole other controversy...

I've also linked forward to Elsa and Me before on her post about the need for a new formula to calculate growth (or at least wellfare) and I agree with her. I don't think there is any sense in keeping on calculating economic growth only in monetary values if that does not increase our well-being and happiness and additionally destroys our planet and uses up unnecessary resources. I think there is other ones with the same idea as well of adding social, environmental and other values to GNP.

There has been some tries to include environmental accounting in the business world but at the moment it is mostly businesses themselves who are sweating with the problem as there are almost no guidelines. Environmental accounting is usually based on adding "costs" for using up resources or polluting. The problem though is usually what value to give nature? How much should it cost to destroy rainforest? There is a huge challenge in trying to integrate environmental values into a monetary economy and making some sort of international standards.

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