New economy types explained! – Applied Systemic Economy

“The economy is not able to grasp the complexity of the world only by models ” – Olivier Blanchard

A market-based economy is where goods and services are produced without obstruction or interference, and exchanged according to demand and supply between participants (economic agents) by barter or a medium of exchange with a credit or debit value accepted within the network, such as a unit of currency and at some free market or market clearing price.
The sole intention is the maximisation of shareholders value.
It is boosted by creation of debt by the banking system.




1. Circular economy

The circular economy is a generic term for an industrial economy that is, by design or intention, restorative and in which materials flows are of two types, biological nutrients, designed to re-enter the biosphere safely, and technical nutrients, which are designed to circulate at high quality without entering the biosphere.

2. Knowledge economy

The knowledge economy is the use of knowledge technologies (such as knowledge engineering and knowledge management) to produce economic benefits as well as job creation.

3. Social entrepreneurship – social economy

Social economy refers to a third sector in economies between the private sector (business) and the public sector (government). It includes organizations such as cooperatives, nonprofit organizations, and charities.
The social economy spans economic activity in the community, voluntary and social enterprise sectors. The economic activity, like any other economic sector, includes: employment, financial transactions, the occupation of property, pensions, trading, etc.
The social economy usually develops because of a need to find new and innovative solutions to issues (whether they are socially, economically or environmentally based) and to satisfy the needs of members and users which have been ignored or inadequately fulfilled by the private or public sectors.

4. Informal complementary economy and local barter

Complementary economies are systems where exchange of goods and services take place, outside official circuits.
– With complementary currencies : the products and servces are paid for with mutual or local currencies. Most of the time they are « soft currencies », and are tolerated by the government for their social added value. But there are « hard » complementary currencies, integrated in the accounting system, like C3 or WIR in Switzerland.
– Black market : illegal trading, or outside balance sheets and accounting
– Volunteer work : people working for the common good wiothout waiting any payments ; it’s a gift economy.
– Barter : is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is distinguishable from gift economies in that the reciprocal exchange is immediate and not delayed in time. It is usually bilateral, but may be multilateral (i.e., mediated through barter organizations) and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, such as when the currency may be either unstable (e.g., hyperinflation or deflationary spiral) or simply unavailable for conducting commerce.

5. Gift Economy:

A gift economy, gift culture or gift exchange is a mode of exchange where valuables are given without an explicit agreement for immediate or future rewards.

6. Performance or Functional Service economy

Performance or Functional Service economy replaces the sales of a good into a service or integrated solution answering the same features, or more, whilst using less resources and energy, creating positive social and environmental externalities. Under some conditions, it is an exchange modality which allows a better integration of sustainable development to the economy.

7. Sustainable Development

Sustainable development refers to a mode of human development in which resource use aims to meet human needs while ensuring the sustainability of natural systems and the environment, so that these needs can be met not only in the present, but also for generations to come.

8. Blue Economy

potential benefits in connecting and combining seemingly disparate environmental problems with open-source scientific solutions based upon physical processes common in the natural world, to create solutions that are both environmentally beneficial and which have financial and wider social benefits.

9. Sharing Economy, collaborative economy or coöperation capitalism

The sharing economy refers to economic and social systems that enable shared access to goods, services, data and talent. These systems take a variety of forms but all leverage information technology to empower individuals, corporations,non-profits and government with information that enables distribution, sharing and reuse of excess capacity in goods and services.A common premise is that when information about goods is shared, the value of those goods increases, for the business, for individuals, and for the community.

10. Asset-based Economy

Asset-based economy refers to a post-industrial macroeconomic state of capitalism in which growth is based largely on appreciation of equity assets, typically financial instrumentssuch as stocks, as well as real estate.

11. Transition Economy

A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a free market.Transition economies undergo economic liberalization, where market forces set prices rather than a central planning organization. In addition to this trade barriers are removed, there is a push to privatize state-owned businesses and resources, and a financial sector is created to facilitate macroeconomic stabilization and the movement of private capital.

12. Long Tail Economy

The term long tail has gained popularity in recent times as describing the retailing strategy of selling a large number of unique items with relatively small quantities sold of each – usually in addition to selling fewer popular items in large quantities.

13. Co-operation Economy

Co-operative economics is a field of economics, socialist economics, co-operative studies, and political economy, which is concerned with co-operatives.

14. Agorism, Counter-Economics, Economic secession

A libertarian social philosophy that advocates the goal of the bringing about of a society in which all relations between people are voluntary exchanges by means of counter-economics, thus engaging in a manner with aspects of peaceful revolution.
The Counter-Economy is the sum of all non-aggressive Human Action which is forbidden by the State. Counter-economics is the study of the Counter-Economy and its practices. The Counter-Economy includes the free market, the Black Market, the “underground economy,” all acts of civil and social disobedience, all acts of forbidden association (sexual, racial, cross-religious), and anything else the State, at any place or time, chooses to prohibit, control, regulate, tax, or tariff. The Counter-Economy excludes all State-approved action (the “White Market”) and the Red Market (violence and theft not approved by the State).
Economic secession has been variously defined by sources. In its narrowest sense, it is abstention from the state’s economic system – for instance by replacing the use of government money with barter, Local Exchange Trading Systems, or commodity money (such as gold).

15. Ethical Economy

Ethical Economy introduces to ethical economics and interprets the begin of a new, radically different economic system in which production is mainly collaborative and social, and in which the value is based on the quality of social interactions and relationships rather than on the quantity of productive time.

16. Quantum economics

Bank money is indisputably the starting point of Bernard Schmitt’s analysis. Referring to double-entry bookkeeping, he shows that the emission of money is an instantaneous event taking place every time a payment is carried out by banks. Since no positive asset can be created out of nothing, quantum economists maintain that, far from being a net asset, money is a purely numerical vehicle issued by banks in a circular flow defining its instantaneous creation and destruction. Money is therefore nothing more than a means of payment, a numerical vehicle through which payments are conveyed from purchaser to seller and whose existence in chronological time coincides with that of the payment it conveys: a mere instant.

17. Systemic economy

An economical paradigm where 2 aspects are crossed: the notion of ecosystem of stakeholders (instead of linear models), and the notion of value balance sheets on 7 levels (instead of only one value measuring balance sheet: 7D-Value algorythm).
The projects, companies or ventures are all based on contributing to “common good” (instead of only to shareholders value).

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[Econologics]: Changes required for a sustainable future!


Sustainable development implies a revolution in the way we now do business.” – Bill Ruckelshaus


– a resume of the Brundtland Revisited – 25 years after the Brundtland Commission presented its landmark report on sustainable development, its lead author reflects on what has happened since.

– by Jim MacNeill


Our Common Future serves notice that the time has come for a marriage of economy and ecology, so that governments and their people can take responsibility not just for environmental damage, but for the policies that cause the damage. Some of these policies threaten the survival of the human race. They can be changed. But we must act now.


“You can’t solve problems using the same kind of thinking you used when you created them.” – Albert Einstein


We not only failed to catch up with the legacy of the past, but we also could not even keep up with the steady day-by-day increase in pollution and degradation and loss of resource and environmental capital.





We leaned heavily on civil society in preparing Our Common Future, but the sector we worked with was a mere baby compared to the giant of today. It is now almost a new estate of governance – a fifth estate, with enormous influence and global reach. With iPods and Facebook, members of civil society today can mobilize thousands in a minute and bring millions onto the streets. Witness recent events in the Arab world. And as a megaphone for Mother Nature, its impact has never been greater.

As for the private sector, hundreds of companies have come on board. It’s a mixed bag, of course. Not all companies, or even a majority of them, are on board. But a growing number are, and that’s progress.

I think I can say the same for governments, although, outside of northern Europe, their numbers are fearfully small. Northern Europe has led the way on Kyoto, on new energy and environmental technologies, and on the politically difficult process of shifting the burden of taxation from income to carbon.


Other bright spots can be found in Asia. Take China. It is today a huge new burden on the global environment, soon to surpass the West. But recently, it has also become our largest generator of solar and wind power. My friend Maurice Strong, who spends considerable time in Beijing, recently told me that China plans to build 100 new and green cities, with populations of one million or more, over the next 20 years.





All in all, significant progress has been since 1987, and the pace is picking up. Yet, we are, as you know, in a much deeper mess today than we were then.


Virtually everyone hails this growth as good news. After all, it has, as I said, brought a significant reduction in levels of poverty in Latin America, Asia, and Africa. It has also brought new jobs and rising incomes, and, along with that, new dignity, independence, and hope for hundreds of millions of people who never had any hope before. It has also brought education, better health, and longer life expectancies.

Isn’t that just what the commission called for? Shouldn’t we then continue to focus on creating more of it, and then still more?

The commission did, in fact, call for a huge increase in global growth to lift billions in the Third World out of poverty. And, frankly, I can’t think of any other single recommendation in Our Common Future that has resulted in more misunderstanding. Caveats are usually misunderstood – or ignored – and that call came with a large number of caveats.

In calling for a huge increase in global growth, we insisted that new growth must not be a continuation of the resource-consumptive and ecologically destructive model of the past. We insisted – indeed, our whole report insists – that future growth must be based on forms of development that are economically, socially, and ecologically sustainable. If it is not, we said, “our future will be in peril.”





What, then, will it take to enable our leaders to change the unsustainable course we are on?  What will it take to enable them to enact the policy and institutional changes needed, and at the scale needed, to make a difference? Given the race we are in and the speed we are travelling, scale is everything.


There are many more political leaders today who have read the evidence and accept that

(a) we are on an unsustainable course and

(b) we are running out of time.

But on their own, they can, and will, change very little.


In order to act, they need to feel the pressure of public opinion breathing down their necks and driving them forward.

If the past is any guide, this won’t happen until we experience another huge pressure wave of public concern – a third wave of global scale and significance.


If the public cannot be aroused, we may simply have to wait until Mother Nature suffers a massive heart attack, the equivalent of a climate 9/11. Public awareness and fear may then bring people by the millions into the streets and thereby empower our leaders to finally stand up and override the powerful coalitions blocking action and actually implement measures to curb the growth of fossil-fuel production and consumption.

Perhaps it will take more than one shock to the system. We may need a series, each strong enough that to ignore it would threaten a government’s chances of re-election.


“we all have a duty to hope” – Barbara Ward


When the environmental stars align once again, and the power of an aroused public opinion combines with that of civil society, the progressive business and corporate world, and enlightened political leadership to drive the massive policy and institutional changes required for a sustainable future, the politically impossible could become the politically inevitable almost overnight. It has happened before.


full article: Brundtland Revisited

Resilient Economics

Economic sustainability requires radical rethinking, redesign and reorganization of economies to reflect the paradigm of healthy living systems!  #ecoNable #Econologics

An economy that relies solely on economic incentives, whether from markets or governments, will leave some people without the basic necessities of life.

The “3-Rs” of ecological efficiency, while necessary, are not sufficient to ensure ecological sustainability.


“Economic sustainability ultimately will require radical rethinking, redesign, and reorganization of economies to reflect the paradigm of healthy living systems.” – John Ikerd


3-Rs of ecological efficiency or resourcefulness reduce, reuse and recycle

3-Rs of ecological regeneration – renewal, reproduction and reorganization

3-Rs of ecological resilience resistance, responsiveness and redundancy

Balancing Efficiency with Longevity Healthy living systems must continually balance their natural tendency toward greater efficiency with their quest for longevity or sustainability. The pursuit of efficiency appears to be a natural characteristic of all living systems.

The Three Rs of Ecological Resourcefulness

Healthy living systems continually reorganize and rearrange their component parts in ways that reduce, reuse, and recycle the energy that flows through their systems and fuel both their productive and regenerative processes. These so-called “3-Rs” of ecological efficiency or resourcefulness, while necessary, are not sufficient to ensure ecological sustainability.


The Three Rs of Ecological Regeneration

By nature, most animals devote a large portion of their energy to conceiving, gestating, and raising their offspring. By nature, plants and animals redesign and reorganize their structures as they evolve from generation to generation. Sustainable living systems must balance the 3-Rs of ecological resourcefulness with the 3-Rs of ecological regeneration – renewal, reproduction, and reorganization.

The Three Rs of Ecological Resilience

Increasing complexity leads to loss of authentic diversity and interdependence. Diverse systems are resistant and tough, complex systems are fragile and vulnerable.

Sustainable systems must balance the 3-Rs of ecological resourcefulness, the 3-Rs of ecological regeneration and the 3-Rs of ecological resilience – resistance, responsiveness, and redundancy.


Learning Economic Resilience From Nature’s Example

Sustainable economic organizations and individuals are microcosms of sustainable economies and must possess the same characteristics if they are to function sustainably.

A national or global society in which some prosper while others live in poverty or starve is inherently unstable and unsustainable. Economic sustainability is no less dependent on social relationships than on ecological relationships. Economic sustainability ultimately will require radical rethinking, redesign, and reorganization of economies to reflect the paradigm of healthy living systems.


The Essential Characteristics of Economies — And How They [Could] Drive Sustainability

[Education]: Do Schools Kill Creativity? #ecoNable #ecoViVaCity #Econologics

The dominant systems of education are based on three “assumptions” that are exactly opposite to how human lives are actually lived.
~ Ken Robinson

1) they promote standardization and a narrow view of intelligence when human talents are diverse and personal.
2) they promote compliance when cultural progress and achievement depend on the cultivation of imagination and creativity.
3) they are linear and rigid when the course of each human life, including yours, is organic and largely unpredictable.

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“People and organizations everywhere can see that current systems of education are failing to meet the challenges we now all face and they’re working furiously to create alternatives.”Sir Ken Andy Robinson

These are definitely the relevant basics of where our generation is failing to deal with resilience in our current society – political, social and economical. These principals need urgent change in our education of the young and future generations, to overcome our defects on dealing with and avoiding the chaos we have created in our world.


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ecoNVERGE® wishes you an energizing 2013 and a progressive future for all!

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This year has been full of great accomplishment, new ventures, surprises, sacrifices and happiness.
During this season of celebration and for the coming new year I wish you, your family and your connected circles a better and sustainable year for our surroundings and future generations,
where all your goals become achievable with an amazing lasting happiness.
Take this Holidays Season to renew, re-energize and regenerate your ideas and goals.

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[New Economics]: The Cultures of the Economic Crisis & Network Society! #ecoNable #Econologics #ecoNVERGE

“All the studies on the internet show that people who are more social on the internet are also more social face-to-face.”
“With this climate what happens is that more and more our societies will become ungovernable and, therefore, we can have all kinds of phenomenon – some of them very dangerous”Prof Manuel Castells

Manuel Castells studies the links between the internet and protest movements

a combination of two things:
– A number of people have been doing this for quite a while already because they don’t agree with the meaninglessness of their lives. Now there is something else – it’s the legion of consumers who cannot consume
– therefore, since they do not consume – they don’t have the money, they don’t have the credit, they don’t have anything – then they try at least to make sense of their lives doing something different.

So, it’s because of needs and because of values – the two things together – that’s why it’s expanding.”

“It is fundamental because it triggers a crisis of trust in the two big powers of our world: the political system and the financial system.
– People don’t trust where they put their money and they don’t trust those who they delegate in terms of their vote.
– It’s a dramatic crisis of trust and if there is no trust, there is no society.

Network Society:

“It’s a society where the main activities in which people are engaged are organised fundamentally in networks, rather than in vertical organisations. The difference is very simple – network technologies. It’s not the same thing to be constantly interactive at the speed of light than just simply have a network of friends and people. So all networks exist, but the connection between everything and everything – be it financial markets, politics, culture, media, communications, etc – that’s new because of the new digital technologies.”

Prof Castells says it is impossible to reverse the trend of the networked society

“Some people start already living differently as they can – some because they want alternative ways of life, others because they don’t have any other choice. What I refer to is about the observation of one of my latest studies on people who have decided not to wait for the revolution – to start living differently – meaning the expansion of what I call in a technical term ‘non-capitalist practices’. They are economic practices but they don’t have a for-profit motivation – such as barter networks; such as social currencies; co-operatives; self-management; agricultural networks; helping each other simply in terms of wanting to be together; networks of providing services for free to others in the expectation that someone will also provide to you. All this exists and it’s expanding throughout the world.”

Occupy protests have made a mark in cities all over the world.

“But what happens in any process of disorganised, chaotic social change, there are all these phenomena co-existing and the way they play out, one against the other, will depend ultimately if the political institutions open up enough channels of participation for the energy that exists in society for change that could overcome the resistance of the dark forces that exist in all societies.”