Published 2024 – In this paper, David C. Korten, member of the Club of Rome, challenges the status quo by introducing eco-nomics: a new economic system that puts the wellbeing of all life first and drives us toward what he calls an Ecological Civilization.
Eco-nomics puts life, not money, at the centre of the economy.
Our modern lives are largely determined by economic policies shaped by prevailing economic theory. Yet, says Korten, current economic theory serves us well only if our societal purpose is to exploit people and Earth to make money for the already rich.
This publication introduces a new economic model, “eco-nomics,” essential for fostering a life-centric civilization. This model aims to replace the outdated ‘ego-nomics,’ which prioritises personal gain over our collective future. Korten challenges us to rethink how we see life, our purpose on Earth, our relationships with one another, the value of our work and the meaning of our institutions.
What is eco-nomics?
Eco-nomics is a life-centric system that secures the wellbeing of all Earth’s people and guides us toward an Ecological Civilization, where caring for life takes priority over exploiting it. Its core values are collaboration and cooperation, and it recognises that money is only a number with no meaning outside the human mind.
“Earth is our common home and the source of our existence and wellbeing.”
What is ego-nomics?
According to Korten, ego-nomics is the conventional economic system that exploits people and Earth to make money for the already rich, driven by competition. Its consequences are inequality, violence and the erosion of Earth’s ability to sustain life. Money has replaced mutual care in our relationships, idolising those with the most money and power.
Korten defines this system as a modern and legalised form of slavery, misdefined by its ‘predators’ as ‘freedom’.
“We are not dealing with a broken system in need of repair. We are dealing with a failed system in desperate need of replacement.”
Why it matters
Korten sets out the scale of the imbalance. In mid-2023 the richest 0.1% of the US population owned 12.8% of the country’s financial assets, while the poorest 50% owned only 2.5%. As he writes, “while some inequality is natural and inevitable, this disparity is beyond obscene.”
“For the first half of 2023, the world’s 500 richest people averaged a US$14 million growth in their individual assets each day. Meanwhile, according to the World Bank, nearly half of the world’s population lived on an income of less than US$6.85 per day.”
What does an Ecological Civilization require?
Korten sets out three priorities:
- Restore the health of the living Earth’s regenerative systems.
- Share the natural and human commons, water, land, air, forests, knowledge, to meet everyone’s essential needs, without exclusive ownership.
- Build institutions that serve life and support collaborative, bottom-up self-organisation.
What changes does the current system need?
- Replace GDP with wellbeing indicators, as proposed by Kate Raworth’s Doughnut Economics, the Earth4All Average Wellbeing Index initiative and many others.
- Convert monopolistic corporations into worker and community cooperatives that serve local needs.
- Reduce our reliance on money and tax capital gains as ordinary income.
- Replace private banks with community banks owned by the communities they serve.
“Imagine government institutions that, instead of governing us, support us in governing ourselves.”
How do we get there?
Korten argues that change comes through a people-powered meta-movement that unites the world’s people, rich and poor, in a commitment to deep transformation, dedicated to peace, equality and environmental care.
About the author
David C. Korten is an American writer and prominent critic of corporate globalisation, and an advocate of Ecological Civilization. He is founder and president of the Living Economies Forum and a member of the Club of Rome, the Alliance for Ecological Civilization and the Wellbeing Economy Alliance.
Eco-nomics for an Ecological Civilization invites us to rethink the purpose of our economy.
Download the paper to explore this concept and learn more about systemic change.
