(Chapter 5: frontispiece)

ECONOMIES–LANDSCAPEFigure 5-1

e) ECONOMIES–SCENARIOS

PUBLIC / COMMUNITY

VALUES

PRIVATE/ ENTERPRISE

VALUES

GLOBAL / MACRO DYNAMIC

REGIONAL / LOCAL DYNAMIC

Global economic systems, rapid

innovation, stable finance & social

solidarity

Global finance & supply chains, robots versus

workers, digital surveillance

Community-based social economies, local

finance, slow tech

Local free-market grey-black economies,

wealthy enclaves & social exclusion

Overview mappings: the deeper economic mind, economic nexus, metabolisms and alternative futures

Com

LabHH

STIFinRes

Gov PubCiv

Ind ServInf

Supply chain: products &

services

Demand chain: social & public

use-value & investment

Civic value chain:

knowledge, skills, infra-

structure

External inputs:

imports, finance,

resources etc

External outputs: exports,

pollution etc

c) ECONOMIC METABOLISM

Simple concept model of ‘circular flow of money’

a) ‘DEEPER ECONOMIC MIND’

Material economic

intelligencefor value

chains

Economic-political

intelligence for governance

Financial intelligence for

investment

Social-economy

intelligence for livelihood

Underlying systems: energy, resources, capitals

Cultural economy

Industrial economy

Social economy

Com

HH

Lab

STI

FinRes

Gov PubCiv

Ind ServPrim

Public economy

Ecological economy

d) ECONOMIES–III METABOLISM

Tech-knowledge economy

Concept model of ‘circular flow of value multiplicity’

FINANCIAL: Extraction &

instability

TECHNO: Digital

disruption

ECOLOGICAL: ‘apocalypse soon’

SOCIAL: Hyper-consumption, inequality, exclusion

ECONOMIC CYCLE: precarious work,

boom & bust:

b) ECONOMIES–NEXUS

LOCAL & REGIONAL:

Dependency & race to bottom

SUPPLY CHAIN

DEMAND CHAIN

CIVIC VALUE CHAIN

Contradictions & challenges in economic systemsConnexus of multiple layers / domains of value & logic

POLITICAL: austerity,

privatization

LOCAL-ONOMICS–III

Blue-green economy, eco-tourism, bio-tech

Social enterprise & foundational economy

Cultural heritage is community resource

a) INDUSTRIAL REVOLUTION–I

Creative cultural

exchange

Multi-versity learning for business hubs & clusters

Mutual finance with local collateral for social investment

Cruise ships & super-yachts

b) POST-INDUSTRIAL EVOLUTION–II CBD expands &

pushes out workers

Waterfront regeneration

Heritage is a tourist commodity

Fragmented & precarious jobs

Communities shattered &

scattered

Obsolete industries

Investors / entrepre-

neurs leave

Shipping goes to super ports

Redundant labour & skills

Figure 5-2 Local / urban / regional economies in

evolution & co-evolution

Com

HH

Lab

STI

FinRes

Gov PubCiv

Ind ServInf

Labour vulnerable to technology change

d) LINEAR ECONOMY–I

FINANCE

Dynamics of decline:a) Disinvestment

b) Brain drainc) Infrastructure

SOCIETY

(a) (b)

(c)

ECONOMY

e) SMART ECONOMY–II

Labour vulnerable to global markets

Global wealth

extraction

Social capital fragmented

GLOBAL FINANCE

f) ‘WISER’ ECONOMY–III

Social capital via co-production

LOCAL FINANCE

Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServInf

(A)

(B)

(C)

Social capital forms around

industry

Dynamics of renewal: 3 value chain pathways

Dumpingimpacts on periphery

Extraction of wealth towards centre

Global capital enables local

collateral

Dynamics of restructuring:

1) Privatization2) Financialization3) Mechanization

GLOBAL FINANCE

Depend-ency of branch-plants

Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServInf

(1)

(2)

(3)

Local capitalis diverse,

resocializing, recirculating

Labour resilience by

diversity

c) INDUSTRIAL CO-EVOLUTION–III

CIRCUL-ONOMICS–III Co-evolution from linear to circular resource flows: with finance, social & public value

Figure 5-3

Circular livelihood (demand chain): mutual ownership for collective re-use of assets

Circular co-production (supply chain): markets & enterprises on service model

Circular investment (civic-chain): eco-social finance for whole chain innovation

Socio-political gaps: culture of material consumption & obsolescence:

Techno-economic gaps: low ambition & myopic supply chains

Eco-financial gaps: short horizons promotes materialism & waste:

Product Service

Use

Re-useRecover

Recycle Re-eng Refurb

Materials

Buy

Stocks Linear

material input

Linear waste & pollution Product Service

Use

Re-use Recover

Recycle Re-eng Refurb

Materials

Buy

Stocks Low / zero material

inputs

Low /zero wasteoutput

Mass production with bulk material inputs

Extractive capital

expropriates value added

Circular supply chain enterprise

models

Re-circulatory & re-socialized

capital

RESOURCE SYSTEM

FINANCE SYSTEM

Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServInf

ECONOMIC SYSTEM

Profit from extractive

‘take-make-dump’ models Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServInf

(1)

(2)

(3)

Material flows enable economic flows Waste has

zero / negative

value

Civic value chain for

resources & know-how

Circular demand chain for resource

livelihood

Low-cost imports

c) CIRCULAR ECONOMIES–III b) LINEAR ECONOMIES–I&II

d) PATHWAYS

a) RE-CIRCULARIZATION

FINANCE: mutual finance for

integrated value chains

INDUSTRIAL ECONOMY: design for material loops & cascades

ECOSYSTEMS & RESOURCES: local / regional / global recirculation

on ‘socio-eco-services’ principle

TECHNOLOGY:circul-onomic

design principles

SOCIAL: livelihoods of

socio-circular value

URBAN SYSTEMS: regenerative cycles of

assets & resources

GOVERNANCE:recircularization policy principles

RE-FINANCE SYSTEM

RE-SOURCE SYSTEM

(Redrawn from Osterwalder et al 2010)

Key activities

Value proposition

Customer relations

Customers Key

partners

Costs Key

resources

Channels

Revenue

ENTERPRISE–III Co-evolution from supply-chain business model, to value-constellation ‘eco-social-enterprise’ model

Figure 5-4

a) ‘PRODUCT’ VALUE CHAIN b) ‘SERVICES’ VALUE CONSTELLATION

Raw materials

Manu-facturing

Logistics

Retail sales

Purchase by household

for washing activity

Product lifetime

End fate Material recovery

Recirculation loops

Energy & water value

loops

Life-cycle & service loop

Material re-engineering & disassembly

Ancillaries & component value loops

Textiles loop

Ownership & sharing

loops

Technology loops

c) BUSINESS MODEL CANVAS–I&II d) SOCIO-ECO-ENTERPRISE CANVAS–III

e) BUSINESS MODEL MAPPING–I&II f) SOCIO-ECO-ENTERPRISE MAPPING–III

Resour-ces are

sweated

Profits short term

Workers are com-modities

Customers out of loop

Social impacts dumped

Capital is predatory ‘race

to the bottom’

Revenue from mis-

selling

Labormodel

Custo-mers

Products

Society Comm-unity

Stake-holders

Lifecycle

Cost model

Revenue Impacts Infra

structure Capital

Supplies Resource Value +

Partner relations

Re-invest surplus

Clients in the loop

Inclusive society

Recircul-ation of

profit

Capital is open & mutual

Whole value cost

model

Revenue from

synergy

Impacts internal-

ized

Social Value +

Custo-mers

Products

SocietyComm-unity

Stake-holders

Life cycle

Econ Value +

Revenue Impacts Infrastruct Capital

Supplies Res-

ourcesFunct

Value +

The Canvas re-arranged: ‘worst practice’ example The Canvas extended: with best practice example

ENTREPRENEURS DOWNSTREAM: Customers, products, impacts

UPSTREAM: Suppliers, materials,

finance

Learning curve

Co-learn-ing curves

Adapted & extended with the synergistic framework

Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServInf

Credit / currency

Securities / derivatives

Equities / corporate

Assets / commodities

Public / fiscal

Finance for basic money creation & inter-mediation

Economic production is enabled by credit via high

street banking

MATERIAL ECONOMY

Risk / insurance

Com

HH

Lab

STI

FinRes

Gov PubCiv

Ind ServInf

Ponzi pyramid of

security-ization

Spiral of capital accum-ulation

c) ‘SMART’ FINANCE–II

System dynamics:

financialization, datafication, de-mutual-

ization

Production is a commodity for

speculation

SERVICE ECONOMY

Social & eco impacts dumped

d) ‘WISER’ FINANCE–III

Cultural economy

Social economy

Socio-eco finance recirculates a multiplicity of value

Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServPrim

Public economy

ECON-OMIES-III

Ecological economy Production

economy

Techno-economic finance

Socio-cultural finance

Eco-political finance

Financial functions:

Overview of collective financial intelligence: with example of climate / carbon / eco-finance

FINANCE–III

b) ‘CLEVER’ FINANCE–I

Figure 5-5

FINANCIAL SYSTEMS

MARKETS BONDS

CREDIT / DEBT

INSU-RANCE

Eco-adaptation insurance

a) ‘WISER’ CLIMATE FINANCE

Impact finance

Sunk asset conversion

finance

Climate-proof real

estate

CLIMATE SYSTEMS

Inter-generational ethical-chain

Cleaner production supply chain

Food-energy-water eco-civic chain

Sustainable consump-tion demand chain

Circular supply chain

finance

Energy services finance

Sharing economy finance

Inter-generation eco-bonds

Securitized eco-assets

Nat.cap. markets

SECURITIES/ DERIVATIVES

EQUITIES COMMODITIES

ECONOMIC SYSTEMS

Inter-generational investment

a) CAPITALISM–I&II b) ‘CO-OPOLISM’–III

Debt-fuelled hyper-

consumption

Many fall through

the cracks

Surplus value is recirculated & re-

socialized

Finance-tech for ‘Collective-

Human-Artificial-Intelligence’

Service-relational

networkers

Industrial circul-

onomics

Eco-social stewardship

Foundational local-onomics

in mutual public services

Societal goals for self-realization

Social welfare is a drag on ‘real

economy’

Hyper-elites & unlimited wealth

Corporates run global chains

Service workers feed the machines

Industrial robots produce the goods

Resource hyper-extraction

‘Resistance is useless!!’

All are included &

empowered

PROSPERITY–IIITransformation from evolutionary capitalism, towards a ‘co-evolutionary co-opolism’

Banks stabilized with QE, asset values inflate,

profits extracted

Govt transfers debt to firms &

households

Govt shrinks & privatizes public

services

House price bubble

drives GDP growth

Import consumption

grows with credit

Industry is globalized & securitized

Social impacts dumped on vulnerable

Comm

HH

Infra

Tech

Finance

Resource

Govt PublicCivil

Indust Service Primary

c) SYNDROMES of AUSTERITY–I&II d) SYNERGIES of PROSPERITY–III

(1) Prosperity-livelihood (demand chain): mutual ownership for social enterprise

(2) Prosperity-co-production (supply chain): circular value chains with open innovation

(3) Prosperity-democracy (civic chain): open tech, finance / land justice & eco-stewardship

e) PATHWAYSFinancial-social gaps: extractive

finance for myopic materialism

Techno-economic gaps low skills / investment / trust & race to bottom

Civic-political gaps: cognitive assets bypassed, finance is for elite

Com

HH

Lab

STI

Fin

Res

Gov PubCiv

Ind ServInf

(1)

(2)

(3)

Circular money flow & political economy of austerity (UK)

Social economy

Ecological economy

Industrial economy

Public economy

Tech-finance

Cultural economy

Govt co-finances public service co-

productionSocial impact investment as

standard

Products re-framed as service

Ecosystems re-investment

Mutual finance for social value

Institutions for knowledge investment

Recirculation of multiple values with synergistic pathways

Profits recirculated

Social impacts re-integrated

Figure 5-6

d) ECONOMIES–III PATHWAYS

a) MATERIAL GROWTH–I&II b) HUMAN LIVELIHOOD–III

ECONOMIES–IIIPutting it together: the Economies-III ‘connexus’ & the synergistic pathways for transformation

c) ECONOMIES–III CONNEXUS

Finance: Speculative profiteering

casino

Growth: materialist & exploitative

Business model: narrow

& myopic

Resources:‘take-make-sell-dump’

Finance: Recirculatory

collateral

Prosperity:Multi-versity of constel-lations

Enterprise model:

relational & inter-connected

‘Circul-onomics’:‘borrow-share-

recirculate’

Figure 5-7

TECHNOLOGY

CULTURE POLITICALS

SOCIETIES

CITIES ECOLOGIES

ECONOMIES

Political-cultural: Public-civic enterprise for renewal &

empowerment of local economy

Socio-political:Social livelihoods in public service

procurement & investment

Local-social: Community development enterprise & micro-finance for inclusion & prosperity

Culture-tech: Sensory-experiential systems for

creative action & prosperity

Techno-public:Smart-wise network-platform

public service innovation

Eco-urban: Local eco-social-enterprise for

health education & stewardship

Pathways on the interconnections between domains

ECO-URBAN-III: CLIMATE-III:

ORGANIZATION-IIIEDUCATION-III

MULTI-LEVEL-IIIPUBLIC-SERVICE-III

SMART-WISE-IIIE/VALUATION-III EQUALITIES-III