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TRANSCRIPT
RETHINKING
CAPITALISMDr. Simón Levy Dabbah, PhD
May 2018
© 2018 Dr. Simón Levy Dabbah, PhD
THE CURRENT ECONOMIC MODEL
Technology is modifying our lives, and one of the ways it has
changed us is how we get a job. Formal employment is diminishing
in the world, especially since the 2008 crisis.
After WW II unemployment levels of 1 to 2% where expected in developed countries. Today the Federal Reserve says that
the maximum long term unemployment level is at 5.5%. Do you know how many people does that level represent?
The percentage of unemployed people in the world has tripled since
1960, and many jobs today are part time.
Today people work more in two or more jobs, instead
of only one, and have less to spend, with very little
or no job securities.
There are more workers competing for a limited number of work
positions.
Unemployment is linked to 20% of suicides.
© 2018 Dr. Simón Levy Dabbah, PhD
THE CURRENT ECONOMIC MODEL
The labor force is now global, not only local. The cell phone is our mobile officeand physical distances have practically disappeared.
Quality of jobs is so low that many people prefer to become freelance. Onlyin the United States there are more that 6.5 million people working in thatmodel.
For every 1% increase in part time or freelance jobs, income inequality grows by1.6% (Silver, Forces of Labor).
34% of full time workers in the United States live hand to mouth, and couldn’tsurvive with their savings for more than a month. Imagine the situation in lessdeveloped countries!
There’s a lot of talk about economic recovery, but that doesn’t translate toquality of jobs and quality of life.
The world economy has become a clunker for generation of jobs and alsomodifies realities in urban environments.
© 2018 Dr. Simón Levy Dabbah, PhD
THE CURRENT ECONOMIC MODEL
The United Nations has said: “Cities have become trash cans for an exceeding population and in magnets for low quality jobs in commerce and services”. Industry is over and we are now a neoliberal distributor. Exactly the opposite of capitalism.
What can we do?
1. We have to transform our beliefs and reset all that has been taught to us.
2. We can’t live off or consume that we don’t have, to save we must produce. But how?
3. Turn ourselves into specialists to that which generates value, where few can replace us.
4. We must be willing to do that which we haven’t done.
5. Creating value isn’t discovering or creating a need, it’s collaborating to solve the existing needs.
6. We must understand that the economy is collaborative, we must use instead of possess.
© 2018 Dr. Simón Levy Dabbah, PhD
THE CURRENT ECONOMIC MODEL
Karl Marx had already described this in the “General Law of Capitalist Accumulation”.
Neoliberalism has become the enemy of capitalism: our opportunity lies within the participative economy.
In all political elections in most countries, we can see the rejection of neoliberal sickness. Due to this and to corrupt leaders that kneeled to this model we have such high levels of rejection.
The umbrella for this rejection lies in not knowing how to say no to the neoliberal model.
Creating a new model doesn´t mean disconnecting ourselves from the world, but preparing ourselves better for it.
© 2018 Dr. Simón Levy Dabbah, PhD
THE CIRCULAR ECONOMY
Between 1900 and 2015, the urbanized population increased from 14% to 54%, and is forecasted to grow to 65% by 2050.
Cities generated 1.3 billion tonnes of solid waste per year in 2012 and is expected to rise to 2.2 billion tonnes by 2025.
More than two thirds of the world’s energy is consumed in cities, accounting for over 70% of global CO2 emissions.
Resource extraction increased 12-fold between 1900 and 2015 and is expected to double again by 2050.
Material consumption by the world’s cities will grow from 40 billion tonnes in 2010 to about 90 billion tonnes by 2050.
© 2018 Dr. Simón Levy Dabbah, PhD
WHAT IS THE CIRCULAR ECONOMY?
An economic system based in business models which replace the
“end-of-life” concept with reducing, reusing, recycling and
recovering materials.
Operates at the
micro, meso and
macro levels to
accomplish
sustainable
development.
Micro level:
Products, people
Meso level:
Eco-industrial parks
Macro level:
City, region,
nation, more
© 2018 Dr. Simón Levy Dabbah, PhD
THE CIRCULAR ECONOMY PRINCIPLES
Sustainable use of raw materials
Closed-loop manufacturing (No waste at the end of the product life cycle)
Adoption of sustainable methods of consumption
More extensive commodity markets for keeping products in use
Before use: Upstream circularity.
Managing resources efficiently
Improving productivity in production and consumption processes
Minimizing waste
Keeping product costs as low as possible
After use: Downstream circularity.
Preserving the value in otherwise waste materials
Maximizing the extraction of that value within the system
SUMMARY: Value Preservation, Resource Optimization, System Effectiveness
© 2018 Dr. Simón Levy Dabbah, PhD
GOING CIRCULAR: CITIES ARE KEY
A circular city embeds the principles of a circular economy:
Establish an urban system that is regenerative and restorative by design.
The idea of waste is eliminated
Assets kept at their highest level of utility at all times
Use of digital technologies a vital process enabler
A Circular City aims to generate prosperity and economic resilience for itself and its citizens, while decoupling value creation from the
consumption of the resources.
Amsterdam´s seven principles:
Closed loop – All materials enter an infinite cycle of use
Reduced Emissions – All energy from renewable sources
Value Generation
Modular Design
Innovative Business Models
Region oriented Reverse Logistics
Natural Systems Upgradation – Includes reconstruction of Human Capital
© 2018 Dr. Simón Levy Dabbah, PhD
WHAT DRIVES A CIRCULAR ECONOMY?
Growth of awareness that the linear model has resulted in depletion of raw materials and increased pollution, driving to a Circular Economy through:
Intelligent Urbanization
Supply and Price Risks
Ecosystem Degradation
Enviromental Accountability
Consumer Behavior
Advances in Technology
Benefits of the Circular Economy:
Changing consumer behavior
Regulating production processes
Generating new avenues for employment
Reducing demand for new raw materials.
Creating a circular supply chain
Recovering the resource value of materials to create new value
Extending the work life of a product
Improving the usage rates of products through shared use
© 2018 Dr. Simón Levy Dabbah, PhD
CONTACT
Dr. Simón Levy-Dabbah, PhD:
Website: www.simonlevy.mx
E-mail: [email protected]
Facebook: https://facebook.com/simonlevy
Twitter: https://twitter.com/simonlevymx
LinkedIn: https://linkedin.com/in/simonlevydabbah
© 2018 Dr. Simón Levy Dabbah, PhD