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Are you interested in indicators for regenerative economics?

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Our summary today works with the book chapter titled Regenerative economies: a new approach towards sustainability from 2020 by Yashi Jain, part of No Poverty book, published as part of the Encyclopedia of the UN Sustainable Development Goals book series. This is a great preparation to our next interview with Pearl Ng in episode 210 talking about the different economy types. Since we are investigating the future of cities, I thought it would be interesting to see what regenerative economy means. This chapter investigates the history of regenerative economics and its connection to sustainability.

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Welcome to today’s What is The Future For Cities podcast and its Research episode; my name is Fanni, and today I will introduce a research paper by summarising it. The episode really is just a short summary of the original paper, and, in case it is interesting enough, I would encourage everyone to check out the whole paper. Stay tuned until because I will give you the 3 most important things and some questions which would be interesting to discuss.

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Regenerative economies seek to redefine the essence of sustainable development by nurturing interconnected networks that harmonize with Earth’s resources, aiming for balanced impacts on both the environment and society. This concept extends beyond the pursuit of profit, emphasizing the importance of ecological health, societal well-being, and holistic growth. It advocates for a paradigm shift towards practices that sustain the planet using location-specific strategies, backed by extensive research and innovation to efficiently address global and local challenges.

At the core of regenerative economics is the application of principles observed in stable, productive ecosystems to the design of economic systems that are self-organizing and sustainable. This model proposes a proactive approach to issues such as inequality, pollution, and resource scarcity, advocating for economic practices that mimic the resilience and renewal processes of natural systems. This involves maintaining healthy inputs and outputs, minimizing resource depletion, and preventing environmental degradation. The regenerative economy is characterized by its capacity for self-renewal, akin to living organisms that transform energy to sustain themselves, thereby ensuring systemic stability and resilience.

A significant emphasis of regenerative economics is on circular processes, fostering mutually beneficial relationships, and promoting collective learning to create a system that supports both human well-being and contributes to the ecological and social fabric. The approach extends to agriculture, architecture, and economic growth, advocating for practices that enhance land vitality and promote sustainable development. The ultimate aim is to develop an economy that blends the best aspects of capitalism and socialism, rooted in an appreciation of natural systems, to cultivate shared prosperity and a healthier planet.

Regenerative economics challenges traditional economic success metrics like GNP growth, focusing instead on long-term societal well-being, environmental health, and financial stability as interlinked components. It values diversity, integrity, and a collaborative ethos over competition, striving to meet a broad spectrum of human needs while continually adapting and evolving. This philosophy endeavours to bridge the divide between neoliberal and Keynesian ideologies by promoting sustainable human networks and communities within the Earth’s biophysical constraints.

The principles of regenerative economics advocate for prioritizing resource efficiency and minimizing the extraction of new materials due to their environmental impacts. It encourages the development of localized economies to enhance sustainability, promotes cooperation over competition to build mutual intelligence and equity, and emphasizes nurturing life and transformation to rejuvenate ecosystems. These principles aim to establish a harmonious balance between human activities and the natural world, urging practices that restore and regenerate the environment for future generations.

As the global middle class’s resource consumption outstrips what the Earth can sustain, a transition to regenerative economics presents a viable solution. It calls for stakeholder capitalism, where businesses focus on the welfare of all stakeholders, including the environment, instead of solely generating shareholder profit. This model advocates for a balanced approach to resource management and the promotion of nature’s health.

The current economic model’s trajectory, increasingly viewed as unsustainable, pushes natural systems towards exhaustion and violates critical planetary boundaries, threatening the Earth’s life-support mechanisms. This situation underscores the need for systemic solutions rather than isolated problem-solving efforts, with businesses and educational institutions recognizing the potential of resource efficiency for sustainable competitiveness. However, decoupling material production from economic growth demands a fundamental redesign of the economy, necessitating creative and regenerative system designs to align economic activities with sustainability, equity, and planetary preservation.

Transitioning to regenerative economics involves moving from an outdated, mechanistic view—where the economy is seen as separate from the natural world—to a holistic perspective that acknowledges the economy’s deep integration with the environment. This shift challenges the traditional focus on growth and profit, advocating for the regeneration of natural resources and highlighting the importance of values beyond material wealth for true human well-being. Regenerative economics aims to merge the strengths of capitalism and socialism, infused with contemporary insights into how the world functions, focusing on equity, reducing inequalities, and leveraging market dynamics for sustainable economic development and human creativity.

Regenerative economics not only seeks to sustain and rejuvenate our social and ecological systems amid rapidly changing economic dynamics but also to actively restore ecosystems and communities. By employing strategies that promote systemic health and growth over merely limiting negative impacts, it advocates for an integrated approach that emphasizes balance, innovation, and continuous learning. This holistic wealth creation marks the next evolution of capitalism, essential for avoiding collapse and achieving sustainable development goals, urging a shift towards practices that respect planetary boundaries and regenerate ecosystems.

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What was the most interesting part for you? What questions did arise for you? Do you have any follow up question? Let me know on Twitter at WTF4Cities or on the wtf4cities.com website where the transcripts and show notes are available! Additionally, I will highly appreciate if you consider subscribing to the podcast or on the website. I hope this was an interesting paper for you as well, and thanks for tuning in!

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Finally, as the most important things, I would like to highlight 3 aspects:

1. Regenerative economics advocates for a paradigm shift towards sustainability by nurturing interconnected networks that respect Earth’s resources, focusing on holistic development beyond mere profit.
2. Regenerative economics emphasizes the application of principles from natural ecosystems to economic systems, promoting self-organization, resilience, and a proactive approach to addressing environmental and social issues.
3. The regenerative approach calls for a fundamental redesign of the economy to prioritize resource efficiency, localized economies, and cooperative over competitive practices, aiming to regenerate ecosystems and communities for a sustainable future.

Additionally, it would be great to talk about the following questions:

1. What are the potential challenges and opportunities in shifting towards a regenerative economy, especially in terms of policy-making and governance?
2. What innovative approaches can be developed to encourage the wider adoption of regenerative practices in conventional industries?
3. In what ways can we, as individuals and communities, contribute to the principles of regenerative economics in our daily lives?

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