Rearticulating the Economy from the Local Level: Towards an Economy Rooted in Caring for Life

1 Rearticulating the economy from the local level: towards an economy rooted in caring for life Marta Soler Montiel and Manuel Delgado Cabeza AREA research group, Department of Applied Economics II, University of Seville To cite this chapter: Soler Montiel, M., Delgado Cabeza, M. (2020): Rearticulating the Economy from the Local Level: Towards an Economy Rooted in Caring for Life. Pag. 63-79. In Fanfani, David y Matarán Ruiz, Alberto (eds): Bioregional Planning and Design: Volumen I Perspectives on a Transitional Century. Springer Cham. https://doi.org/10.1007/978-3-030-45870-6_4 Abstract The ongoing ecological degradation, along with the socio-cultural conflicts, creates a pressing need for economic alternatives. The bioregionalist approach requires the construction of a balanced territorial dynamic of human activity, which must harmoniously fit in the biosphere. Therefore, it is necessary to exit the market economy, or even to exit the world of economy and enter the world of life-caring connections. This difficult and slow transition can only be initiated from the "local" by combining change processes in the four strategic areas analysed: sustainable access and management of resources through the enhancement of commons; the reorganization of the sustenance basing on artisanal activity for care; leaving the world of consumption and entering the one of caring for life, and the redefinition of our worldviews and social imaginaries. These necessity-oriented economies entail materialities, activities and relationships that are different from what is currently dominant. Furthermore, they imply different forms of conceiving and understanding reality, different worldviews, epistemologies and ontologies. These "other economies", often excluded and removed by dominant views are creating fair and sustainable ways of providing what is necessary for sustenance starting from the territories, in accordance with bioregional principles. Keywords. Ecological crisis, degrowth, care of life, alternative economy, bioregionalism 1. Premise Aristotle, in his time, made a distinction between oikonomia, meaning the rules of the household, which provide "such things necessary to life, and useful for the community" and chrematistics, “originating in the use of coin” and “how they may be accumulated” (Politics, Book I, Chapter VIII and IX, 13 -15). Basing on this distinction, in the 20th century Karl Polanyi differentiated between a formal and a substantive economy. The first refers to the neoclassical idea that economy merely consists of individual choices within competitive markets, under the imperatives of maximum corporate profits and consumption. This business economy, a legacy of Aristotle's chrematistics, is responsible for the processes of deterritorialization that break the fragile socioecological equilibria at the local level (Magnaghi, 2011). Conversely, Polanyi defined substantive economy as any social process aiming at satisfying human needs within its biophysical limits, socially embedded in territory, because every human being "survives in virtue of an institutionalized interaction between himself and his natural surroundings" (Polanyi, 1977, pag. 20). Polanyi's substantive economy recalls Aristotelian oikonomia and every territory-based economy which involves people's connections in their daily lives to provide what is necessary 2 for life. Recently, feminist economics has point out historical responsibility of women in the economy that take care of life. This distinction between oikonomia and chrematistics, between substantive embedded economy and formal economy, between the economy that take care of life and the one that destroyed it, is still nowadays at the core of current global crisis and its possible alternatives. This chapter is structured as follows. In the first heading we analyse the main features of capitalist logic and dynamics in its current phase, and the evolution of the tensions associated with its reproduction. This dynamic is causing the existing socio-economic system to plunge into a deep crisis that calls for livelihood alternatives to the dominant forms. We are thus invited to rethink economy from a local standpoint by adopting a bioregional approach where culture, nature and history are connected in the "territory" (Magnaghi, 2011). The second heading contains a reflection on how territory-embedded substantive economies entail an economic alternative both at a material and at a cultural and political level. In it, social relations and relations with nature are reconstructed in the pursuit of sustainability of life through a bioregional approach. To that extent, changes are needed in at least four areas: the sustainable access and management of resources, the reorganization of production and labour, the questioning of consumption and its relation with production, and finally the logics and values that guide the territory-embedded economies] which meet criteria of social and environmental justice. 2. Modernity and capitalism: the end of a story The evidence is growing that both modernity as a worldview, and capitalism as a socioeconomic system that embodies it, are reaching their limits and entering a period of slow decomposition or "terminal stage". Not only does this crisis questions the management of the system, but it also has broader consequences: it affects all the economic, social, political and cultural structures, together with the ethical and epistemological constructions that underlie the understanding and conception of life itself. This crisis is resulting in the collapse of the pillars underpinning the industrial civilization, so that dominant ways of thinking and living are at the core of the problems we face in this world-system (Wallerstein, 2004). A system that follows the logic of monetary value -money is the measure of all thingsand the accumulation of capital, wealth and power. Therefore, the logic of profit needs and feeds a permanent expansion, driven by the imperative of converting money into more money. Various strategies are used to that purpose: the exploitation of wage labour, transformed into a commodity; the strengthening and rise of patriarchy as a form of domination and exploitation of women, who are made responsible for the indispensable work of material, emotional and affective care, but excluded from the commercial sphere; and the exploitation of nature through the appropriation of its resources on an industrial scale. The division of land use is the fourth capitalist way to foster the growth of capital accumulation and wealth appropriation and concentration. Territories are divided into peripheral areas and core areas. In the former, energy and materials are extracted and waste material is disposed of, whereas the latter attracts population, capital and resources. All these strategies represent the main sources of tension between accumulation of capital and sustainability of life (Pérez Orozco, 2014). 3 The availability and use of the once-abundant fossil fuel energy are key in explaining the development and expansion of capitalism. They meant a radical change in the metabolism of the industrial society with respect to previous forms of social organisation, in quantitative and qualitative terms. Converting fossil fuels into mechanical energy entailed both a new dimension in material extraction and use and a more complex, dependent and specialized society. Moreover, it facilitated the concentration of power and higher levels of dominion and social control. As a result, the logic and functioning of the system spread globally (Fernández Durán y González Reyes, 2014). Some of the changes, obstacles and tensions that tend to be associated with the reproduction of capital have reached a peak stage within the system since the 1970s. Profit expectations, simulation of future benefits, and credit lie at the base of the prevailing regime of accumulation, due to the difficulties of converting money into more money in the sphere of production or real economy'. They permit a nonfactual creation of value and currently set the pattern of modes and rhythms of growth and accumulation within the system (Chesnais, 2003, p. 38). Confusion between wealth and debt is a key feature of this "paper economy" (Daly, 1995). The sphere of production has thus largely become an excuse for capital revaluation. In this way, accumulation in real economy is reaching its limits, since automation and productivity growth produced by capital parallel the shrinking of labour force needed and of unit profits. The global increase in the production of goods counterbalanced this shrinkage for over 150 years. The extraction and consumption of materials were boosted by the pressing need of permanent growth, to the extent that they led to the ecological crisis. This compensatory mechanism has proven insufficient in fostering accumulation over the last four decades, even though the supply of goods has constantly increased. Conversely, financial capital "got off the ground" and let capitalism survive constantly basing on credit, that is to say through a sort of simulation (Jappe, 2011: 53) based on the capitalization of future profits. Capital has fled "upwards" towards financial markets. Nonetheless, not only does this factor not interfere with a "healthy" economy: it has also created a fictitious prosperity and has made the processes of "accumulation by dispossession" (Harvey, 2004) reach unprecedented limits over the last decades. Dispossession can be obtained through a revaluation of assets or through big corporations issuing securities which serve the functions of money, creating bank and financial money out of nothing. These mechanisms allow financial capital to appropriate existing wealth. Moreover, they provide it with a tremendous purchasing power on the world market, letting it globally adquire properties of local capital, of the State and of the public administrations. As a result, financial capital holds increasingly high positions of power and privilege, in a context of growing unequal distribution of global wealth (Naredo, 2010). In addition, these instruments promote the capture of rents thanks to different strategies: the privilege over the control of public resources, the privatization, the priority over the use of utilities (water, electricity and gas), the management of transport as a private business, the housing regulation and finally the intertwined alliances known as private-public partnerships that are leading to the plunder of public resources. This path leads to the "dispossession of everyday life" (Taifa, 2016) in a context where all areas of life are invaded by an increasing commodification. 4 Not only is life affected by commodification when individuals sell working time for the production and its requirements or when using time for consumption, but also when an increasing amount of "time dedicated to the market-led construction of self" is spent, creating a mode of existence obeying the rules of commodification (Baschet, 2015, p. 44). Thus, people's relationships with themselves and the others are increasingly turning into relations between things in a scenario of deepening social degradation. The pressures of the global market and the value creation within financial markets result both in a deterioration of working conditions and in a growing gap between wage labour, which is seen as a sort of "deity" or the main "social intermediary", and its increasing scarcity. Competition for employment is exacerbated by wage labour shortage, and likewise the types of employment driven by the imperatives of value are becoming increasingly superfluous from the point of view of human needs (Baschet, 2015). There has been an upward trend in social inequalities, which have reached unprecedented levels in this context (Informe sobre la riqueza global, 2015; Oxfam, 2014). Political power is an accomplice of this situation, because it adapts to suit the requirements of the estabilished power. "Laws and government may be considered in this and indeed in every case as a combination of the rich to oppress the poor, and preserving to themselves the inequality of the goods". Adam Smith's forceful statement (Aguilera, 2016) clearly expresses the idea of politics at the service of economic power within capitalism. Regrettably, this trend is accelerating due to the consolidation of economic governance and to the fusion of wealth and power. Large corporate organizations hold the power to force the government in order to facilitate their business needs, in a context of a "community of interests" between the political and business elites increasingly intertwined. In the industrial society, the imperatives of growth arose from capital accumulation and greater availability of energy and resulted in a transition from an economy of "production" to an economy based on the "purchase" or "extraction" of fuel and mineral sources. The monetary reductionism facilitated this process, concealing the physical costs of economic processes (Naredo, 2015). As a consequence we may depict massive extraction as a key element of modern society and capitalist system (Bednik, 2016) insomuch that the industrial system currently moves more tonnage than any geological force. Some authors point out that the human species has produced a new geological era, the Anthropocene, in which the separation between nature and human beings is emphasized and their interaction is of increasing importance (Naredo, 2016). Since the beginning of capitalism, the quantity of materials used has increased steadily, accelerating since 1950 (Schaffartzik et al., 20014) and with a further intensification over the last decades (WU Material Flow, 2017). The use of materials was ten times higher at the beginning of the 21st century than 100 years ago. The use of abiotic resources has greatily increased, considering that in has multiplied more than 25 times (Krausmann et al., 2009). Global extraction has more than doubled over the last 30 years, and it has grown yearly, from 36 billion metric tons in 1980 to 85 billion metric tons in 2013 (WU Material Flow, 2017). In that period the proportion of mineral and fossil fuel extraction is trending upwards compared to biomass extraction, which has diminished from 1/3 to 1/4 of the total. The gap between the behaviour of the contemporary industrial civilization and of other cultures and previous ages in human history is thus widening. Human beings have changed from an organization based on the 5 photosynthesis and its by-products to another sustained by the extraction of resources from the Earth. In this way, planet Earth is increasingly turning into a great mine. Even agriculture has become an extractive activity, since it demands the injection of large amounts of fossil energy, water, fertilizers, pesticides, etc. (Naredo, 1999). It is a sort of constant "re-materialization", in terms of volume of material and energy used (Infante, 2014). Besides fostering unsustainable waste production, resource-use intensification is constantly degrading planet Earth and resulting in the rapid depletion of the resources themselves. Many researchers agree on this point and claim that our planet is turning into a "Thanatia” (Valero y Valero, 2015). If this trend continues, it is estimated that by 2050 the levels of consumption of the Earth’s natural resources will be five times higher than now. In such a scenario, the demand of some important ones (gold, silver, copper, nickel, tin, zinc, lead, antimony) would exceed the reserves currently known. As a consequence, humanity might have to deal with a mineral crisis in a few decades, since substitution of minerals might not be viable due to global shortage. In this respect, peak oil was reached in 2008, while peak natural gas is expected in 2023. The depletion of these resources is expected to occur by the end of the 21st century (Valero y Valero, 2009; Prats et al., 2016). Moreover, due to falling EROEI (energy returned on energy invested), very high investments will be required in order to meet energy demand in coming years. As an example, petroleum EROEI has fallen from 100:1 in 1900 to 18:1 at present. In this situation the prices of fossil fuels are likely to steadily rise, which will lead to major socioeconomic consequences (Prats et al., 2016). Conversely, renewable energy is a negligible percentage (around 2%) of the total energy consumption, and has low EROEI rates. As Jorge Riechmann (2009) points out, every day we consume the same amount of fossil fuels as the amount of plant material growing in more than one year on the Earth and in the oceans (p. 144). Replacing fossil energy in this way appears to be impossible. The ecological footprint analysis also confirms that the current use of resources is becoming increasingly unsustainable. Since approximately 1975, global consumption of resources exceeds our planet's biocapacity to regenerate them. In 2010, 150% of Earth's biocapacity was used, and the quantity is expected to reach the equivalent of two planets (280%) by 2050 (WWF, 2011). In the words of the Stockholm Memorandum, developed and signed during the Nobel Laureate Symposium on Global Sustainability (2011): "Science indicates that we are transgressing planetary boundaries", and "we cannot continue on our current path". The unsustainable consumption of resources is the responsible for climate change. In 2016, carbon monoxide emissions to the atmosphere exceeded 400 parts per million. This amount is considered to be the limit beyond which global temperature may rise more than 2º C compared to pre-industrial era. If this levels were reached, global damages would be serious, irreparable and out of control. Lately this limit has been lowered to 1,5º C (Prats et al., 2016). Accordingly, 2016 proved to be the hottest year in history, with a 1,1º C rise compared to pre-industrial era (OMM, 2016). The Fifth Assessment Report on Climate Change in 2014 warned that, compared to 1850, "global surface temperature change for the end of the 21st century (...) is projected to likely exceed 1,5º C" for all possible scenarios (IPPC, 2014). 6 A radical transformation in industrial society's metabolism is thus a primary condition for the reduction of emissions in order to help reduce climate change. This transformation will only be technically viable with reliable technology and materials, which can provide enough energy for a sustainable society. However, in Riechmann's words (2015), this will only be possible if the investment effort is deeply reoriented, which is incompatible with private priorities of investment under capitalism and with the perpetuation of the exponential economic growth over the last decades (p. 33). Given this situation, how can we start a transition into a sustainable society, fitting the current context of socio-ecological crisis? 3. Towards an economy rooted in caring for life Degrowth and alternatives are imperative and inevitable, as indicated by the ecological deterioration, the depletion of resources and the social degradation. There are many examples of emerging or resisting alternatives stemming from bioregional roots. Some of them are: peasant and agroecological farming supported by the community and integrated in short distribution channels ensuring local food sovereignty; small scale systems of manufacturing production -i.e. textile and timberconnected to local markets; housing cooperatives; smallscale decentralized production of renewable energy, which is essential for energy sovereignty; local currencies, barter trade markets and credit unions for financial sovereignty; time banks, parenting groups, health and education cooperatives, and so forth. Although in the present article we cannot perform a detailed analysis of each proposal, we can characterize four areas of economic deconstruction and reconstruction. In them, both social relations and relations with nature are reformulated on a local basis in order to nourish and support life. The confluence of these four areas implies the interaction between alternative socio-cultural rationalities and ecological rationalities, which enables the construction of new bioregional economic processes based on diversity. 3.1 Sustainable access and management of resources: enhancing commons Economic alternatives require constant access to material and immaterial resources so as to provide all that is necessary for life. Privatization and commodification of fundamental resources such as water, soil fertility, energy, housing, health, education, result in processes of physical destruction and social exclusion. These are all increasingly creating socio-environmental conflicts in the whole world, including Europe 1 (Martínez Alier, 2002; Temper, Del Bene & Martínez Alier, 2015). Against this backdrop, the debate and defence of commons revives. In the present discourse, commons are understood as communitarian forms of resource and territory management beyond the market and the state. They are able to ensure their conservation and equal access to all that is necessary to provide sustenance to who takes care of them (Ostrom, 2005). In order to reverse the commodification of the access to resources and to democratize it, both natural and immaterial commons such as knowledge and health, must be defended and enhanced. It is a tangible matter and it is also closely related to politics, which defines the 1 See the Environmental Justice Atlas https://ejatlas.org/ and Temper et al. (2015). 7 conditions for access. Private property dominates as a mechanism of exclusion in capitalism, while what is public and common prevails as a strategy of inclusion in the world of economic alternatives. Moreover, cultural aspects also define this matter, taking into account that alternatives to the market are given shape by the forms of organization, collective practices and underlying values. All these, in the words of decolonial theorist Arturo Escobar, come from a cultural plurality with diverse ways of "feeling and thinking" the world (Escobar, 2014). Substantive economies seek to ensure constant forms of resource access and management through a variety of strategies suited to local circumstances. Materiality is indeed a necessary yet not sufficient condition for alternatives. Even when private property prevails, as is the case with most peasant agroecological farming, resource management is aimed at ensuring cooperation, reciprocity and care in order to provide sustenance and all that is necessary for life. It is not merely a matter of access, although it is fundamental, but it is also about the way in which obtained resources are used. These alternative strategies for the defence and access to necessary resources can only be developed through a bioregional approach. As a matter of fact, local contexts are the place where these resources are managed democratically, according with the use rooted in people's real needs. Moreover, traditional knowledge and institutions for a sustainable management of resources resist in these contexts, as both Alberto Magnaghi (2011) and Eleonor Ostrom (2005) remark. 3.2. About the social reorganization of the activity for caring life In market economy, the concept of "production" is mainly connected to the wage labour in companies, which transforms nature making intensive use of machinery and tools. Its purpose is to create monetary "value", since the production outcomes (goods or services) are exchanged for money within the market. This definition of "production", frequently reduced to buying and selling at a profit, is an anthropocentric and Eurocentric idea. Although historically recent, this concept is currently predominant (Naredo, 2015). Ecological economic warns that this metaphor of "production" conceals essentially destructive processes not only in biophysical terms (Naredo & Valero, 1999) but also in social terms, because "our technics has become compulsive and tyrannical, since it is not treated as a subordinate instrument of life" (Mumford, 1952, p.137). At present, no long-term viable economic activity can be conceived of without taking into account the ecological limits of the biosphere where life develops. This implies that we have to quit the world of "production" and to approach "biomimicry", which is a way of meeting human needs through processes stemming from a conscious and innovative emulation of nature (Banyus, 2012). Biomimicry is a strategy of ecological reconstruction of economy based on a quest for coherence between human systems and ecosystems 2 (Riechmann, 2006, p.194). It is 2 "Nature runs on sunlight, (...) only uses the energy it needs, (...) fits form to function, (...) recycles everything, (...) rewards cooperation, "banks on diversity, (...) demands local expertise, (...) curbs excesses from within, (...) taps the power of limits" (Benyus, 2002: 7). Jorge Riechmann (2006) identifies six principles of biomimicry: 1) Stable state (homeostasis) in biophysical terms; 2) The sun as source of energy for life; 3) Close material cycles; 4) Do not transport materials for long distances; 5) Avoid xenobiotics as POPs (Persistent Organic Pollutant), GMO (Genetically Modified organisms), etc.; 6) Respect biodiversity (pag. 233, 234). 8 necessary that we "produce" fewer things, using less energy and materials. For this reason, economic alternatives must necessarily be ecological at present. Human sustenance must be rethought of in biomimetic and bioregional terms, recovering the ecological rationality of local knowledge. The advance in biomimetic processes implies a reduction in the contributions of capital and natural resources in order to progress towards a life-centered economy, as has been claimed by solidary economy 3 (Coraggio, 2007) and feminist economics (Pérez Orozco, 2014). Handcraft Manufacturing and knowledge from experience are at the centre of economic alternatives, mainly as a result of the necessity derived from exclusion (Quijano, 2007). But they are as well, often and increasingly, a conscious and political process aimed at bringing back "that respect for the essential attributes of personality, its creativity and autonomy, which Western man lost at the moment he displaced his own life in order to concentrate on the improvement of the machine" (Mumford, 1952: 11). It is not about reviving Luddism, but it is a matter of rebalancing social relations using the tools of artisan activities and their pragmatist view: "the craft of making physical things provides insight into the techniques of experience that can shape our dealings with others. Both the difficulties and the possibilities of making things well apply to making human relationships" (Sennet, 2008: 289) As Richard Sennet argues, craftsmanship is closely linked not only to manual skills, but also to slowness, to commitment to doing things well, to lack of self-conceit towards the outcome and pride in one's work, to playfulness, to creativity and a sense of freedom rooted in the community. Consequently, it implies a new temporality which is able to respect both nature and the rhythm of life of the community (Riechmann, 2004, Baschet, 2009). Moreover, it is thoroughly democratic, since it is not restricted to an elite only; it is essentially a cooperative organizational structure oriented towards "learning by doing". Artisan activity is also helpful in the necessary de-specialization required by economic alternatives in order to break the hierarchies (Baschet, 2015). As a matter of fact, "the whole of our civilization is founded on specialization, which implies the enslavement of those who execute to those who co-ordinate; and on such a basis one can only organize and perfect oppression” (Weil, 2013, p.41). We therefore need to exit the world of production and enter artisan biomimicry, at the same time as we exit the world of work in order to enter the world of doing, especially the world of care. The current notion of work is a historical construction inherent to capitalism, which has ended up praising the relationships of dependency and subordination that lie at the basis of paid work, which is necessary in "production" and acquisition processes (Naredo, 2001). As feminist economy points out, in this androcentric-biased vision the concept of work is reduced to employment, with the result that housework and care work, mostly carried out by women, are 3 José Luis Coraggio (2007) claims a work-centered economy, with a new definition of work which refers to all the different human activities, mainly manual, aimed at meeting human needs. This meaning goes beyond the traditional definitions of "productive" work and, although not explicitly stated, it approximates to the care-centered proposals of the feminist economy. In accordance with Coraggio's text, we used the word "activities" instead of work, reflecting the basic ideas of the author. A similar reflection can be made on Quijano's cited text (2007), where the author considers the limits of alternative ways of doing things based on necessity without any political awareness. 9 ignored and devalued. These activities are in fact essential for life, but the monetary economic process in the market system takes them for free (Picchio, 1992), and exacerbates the conflict between capital and life (Pérez Orozco, 2014). The exit from the world of production and work in order to enter the care world for life's sustainability 4 (Carrasco, 2001, 2014), all forms of life (Puleo, 2011, Pérez Orozco, 2014), entails breaking the oppressive dualisms of patriarchy (Puleo, 2005). These dualisms hierarchically oppose "male" and "female" and thus organize binary opposition between the "public" and the "private", the "productive" and the "unproductive or reproductive", reason and emotions, culture and nature... Embracing the care world and life's sustainability implies that the centrality of markets is displaced and that we enter the feminized world of cooperative activity and of lifecentered available time. 3.3. Critical consumption and a stable connection with the needs of a committed community We live in a dual society: a part of it is characterized by the extreme shortage of resources and the other by wastefulness. This duality must be doubly broken. In the current ecological crisis, the necessary social redistribution of material resources is only possible in a dematerialization context that goes beyond a biomimetic change in the organization of the supply system. On the one hand, people who lack the necessary means try to obtain them, which is directly linked to the access to resources. On the other hand, the ones who have too much need to practice degrowth and conscious self-restraint (Riechmann, 2004). This is the way in which material justice can be reached among all social classes, between rural and urban worlds, between men and women or any possible sexual identity, between ethnic groups and territories, between global North and South, all this respecting the existing multiple worlds in the cultural diversity of the "pluriverse" 5 (Escobar, 2014). It is not merely an individual matter, but it is mainly a political and civilizing one. A new, deeply-felt cultural conception of what is necessary is essential for a change towards material distribution and reduction. In order to achieve this, the first step is to reject the concept of consumption as a symbol of status and social power in a hierarchical class system (Veblen, 1899; Bourdieu, 1979 [2000]), and to start considering it as a driving force of social and ecological destruction. The imaginary of the Western urban-industrial way of life of middle and high class, violently proposed by culture, must be displaced from being the universal standard of social desirability in consumerism (Latouche, 2008). At present, this imaginary produces contempt for traditional ways of life and their ethics of frugality in daily life, whereas these are at the core of the process of critical and solidarity-based consumption in progress (Arztia et al., 2016). Furthermore, we must break the Western confusion between potentially infinite desires and limited needs (Doyal & Gough, 1994) and its hierarchized conception. Starting from a concept 4 In the first stage, this proposal of Feminist Economy had an anthropocentric bias, since it defended a reorientation of economy towards care and sustainability of human life. 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