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\nby Lionesses of Africa Operations Department<\/p>\n<\/blockquote>\n
The date was March 8th 1966 and one Kenneth Ewart Boulding stepped forward to present his paper at the 6th Resources for the Future Forum on Environmental Quality in a Growing Economy in Washington, D.C. (<\/strong>here<\/strong><\/span><\/a>).<\/strong><\/h3>\n
With our usual apologies about the gender specific usage from yesteryear, let\u2019s take ourselves back to 1966 and listen to what he had to say\u2026(our emphasis):<\/p>\n
\u201cWe are now in the middle of a long process of transition in the nature of the image which man has of himself and his environment. Primitive men, and to a large extent also men of the early civilizations, imagined themselves to be living on a virtually illimitable plane\u2026there was always some place else to go when things got too difficult, either by reason of the deterioration of the natural environment or a deterioration of the social structure in places where people happened to live\u2026<\/em><\/p>\n
The closed earth of the future requires economic principles which are somewhat different from those of the open earth of the past\u2026I am tempted to call the open economy the “cowboy economy,” the cowboy being symbolic of the illimitable plains and also associated with reckless, exploitative, romantic, and violent behavior, which is characteristic of open societies. The closed economy of the future might similarly be called the “spaceman” economy, in which the earth has become a single spaceship, <\/em>without unlimited reservoirs of anything<\/em><\/strong><\/span>, either for extraction or for pollution, and in which, therefore, man must find his place in a <\/em>cyclical ecological system<\/em><\/strong><\/span> which is capable of continuous reproduction of material form even though it cannot escape having inputs of energy.\u201d <\/em><\/p>\n
So began what is known as \u2018The seminal text\u2019 on The Circular Economy. In a background paper for an OECD\/EC Workshop on 5 July 2019 \u201cThe Circular Economy: What, Why, How and Where\u201d,(here<\/span><\/a>), they confirm: \u201cIt is truly astonishing how this single brief paper (with just five references) set out most of the insights on which current circular economy thinking is now based, and little less <\/em>astonishing how long these insights took to become more firmly entrenched in thinking about the environment, resources and the economy.<\/em><\/span>“<\/p>\n
Back to the hero of our story this weekend still on stage unaware of the excitement he will be generating in 2019 and indeed in 2022\u2026\u201cThe difference between the two types of economy becomes most apparent in the attitude towards consumption. In the cowboy economy, consumption is regarded as a good thing and production likewise; and the success of the economy is measured by the amount of the throughput from the “factors of production,\u201d\u2026<\/em><\/p>\n
By contrast, in the spaceman economy, throughput is by no means a desideratum, and is indeed to be regarded as something to be minimized rather than maximized\u2026\u201d<\/em><\/p>\n
Let\u2019s leave Kenneth for a while to ponder on his words. On the one side he is saying that we have the cowboy economy or as Milton Friedman pushed, the shareholder value concept seen in his article for the New York Times those many years ago (here<\/span><\/a>): \u201c\u2026there is one and only one social responsibility of business\u2014to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception fraud.<\/em>\u201d<\/p>\n
On the other hand, the \u2018Spaceship\u2019 economy – everything you have is all you have, as shown so well in the film The Martian (2015) (Trailer here<\/span><\/a>), the hero of which finds himself on the planet Mars with 31 days of supplies, yet 3-4 years to wait for rescue\u2026everything has to be \u2018circular\u2019. Anything that is required must be created by what and only what, he has in front of him. That which escapes, negatively impacts.<\/p>\n
Back on our stage, Kenneth is in full flow: \u201cIt may be said, of course, why worry about all this when the spaceman economy is still a good way off\u2026so let us eat, drink, spend, extract and pollute, and be as merry as we can, and let posterity worry about the spaceship earth.<\/em><\/p>\n
Why should we not maximize the welfare of this generation at the cost of posterity? “Apr\u00e8s nous, le deluge” has been the motto of not insignificant numbers of human societies. The only answer to this\u2026is to point out that the welfare of the individual depends on the extent to which he can identify himself with others, and that the most satisfactory individual identity is that which identifies not only with a community in space but also with a community extending over time from the past into the future. <\/em><\/p>\n
\u2026there is a great deal of historical evidence to suggest that a society which loses its identity with posterity and which loses its positive image of the future loses also its capacity to deal with present problems, and soon falls apart.\u201d<\/em><\/strong><\/p>\n
This speech was soon picked up by others, such as an address the President of the American Association for the Advancement of Science made (here<\/span><\/a>) in 1970: \u201cThe object of the next industrial revolution is to ensure that there will be no such thing as waste, on the basis that waste is simply some substance that we do not yet have the wit to use… In the next industrial revolution there must be a loop back from the user to the factory, which the industry must close.\u201d<\/em><\/p>\n
Just how did this recognition of a finite amount of material on Earth and how we should prepare ourselves for the day when we all have to behave as if on a spaceship, move and evolve from there until the present day\u2026<\/p>\n
Having been whacked off course by Milton Friedman\u2019s shareholder value concept that was wholeheartedly picked up by nearly all business leaders across the globe, it seems we now find ourselves in the position whereby if we want to get anything through and into law, or even into normal usage, we have to colour out any phrases that might upset other powerful interests – and they have serious lobbyists! As Kirchherr, Julian and Reike, Denise and Hekkert, Marko, in their paper: \u2018Conceptualizing the Circular Economy: An Analysis of 114 Definitions\u2019 (September 15, 2017), found (here<\/span><\/a>): \u201c\u2026the circular economy is most frequently depicted as a combination of reduce, reuse and recycle activities, whereas it is oftentimes not highlighted that CE <\/em>[Circular Economy] necessitates a systemic shift\u2026the definitions show few explicit linkages of the circular economy concept to sustainable development. The main aim of the circular economy is considered to be economic prosperity, followed by environmental quality; its impact on social equity and future generations is barely mentioned.<\/em>\u201d<\/p>\n
Do we find ourselves still so fixated by creating pure shareholder value that although recognizing the need for a circular economy, we hide it behind economic prosperity, or is this something that is talked about openly by shareholders, but behind the scenes they still push profit? Perhaps the strength of the political will is too weak, it’s not for nothing that the most oft-heard complaint at the various COP meetings is that previous promises have not been met and new promises are simply old promises, cleaned up and presented as new – \u2018Apr\u00e8s nous, le deluge\u2019 it seems, has powerful friends.<\/p>\n
Perhaps this is why the concept of sustainable development within the Circular Economy is hidden (as suggested above by Kirchherr et al). With perfect timing, this week the EU announced that Gas and Nuclear would be considered Green (here<\/span><\/a>), perhaps there is a lesson for us all – better to have some movement towards saving the planet (through pleasing some powerful lobbies), than no movement. Think we are making this up about having to be careful about keeping all parties \u2018on side\u2019 rather than opening a full \u2018Them vs Us\u2019 battle as we are seeing in parts of the world? The recent US Supreme Court ruling on limiting the EPA\u2019s powers says it all about the dangers of polarisation. Coal is firmly back on the agenda. <\/p>\n