A regenerative economy is built on patterns and principles which views the economy as a sustainable system for creating conditions conducive to life for current and future generations. Capital Institute
A regenerative economy is one in which the ultimate outcome of economic activities is to build the capacity for life. The idea is based on the following premises:
1. The human economy is a living system (albeit an unhealthy one today). 2. There are universal patterns and principles – “first principles” – we can define that broadly describe the qualities and tendencies of how life works.
3. If the human economy is to be sustainable over the long run, it must harness the regenerative process by aligning with these same “first principles” of living systems. Capital Institute
Currently we function in an extractive economy, where economic activities destroy living systems. This is because actions in an extractive economy create negative Externalities, or damage that is shared by society but does not significantly impact the economic success of those responsible.
Social Regeneration
The paradigm of regeneration vs. extraction affects every aspect of how we function as a society, not just how we interact with the more-than-human world.
If the majority of the world’s population is perpetually exploited for the gains of a small percentage of the rest of the world, then there is no equity — therefore no sustainability and certainly no regeneration.
Therefore, the regenerative transition needs to channel power back to those most marginalized by our current society, particularly indigenous cultures.
Indigenous communities make up just 2% of the global population but protect 80% of nature
As structural lock-ins of poverty, precariousness and isolation can transform those that should act as steward into ruthless exploiters, we must then questions how addressing those deals more with the social context of economic activity, the policies, the regulations, the political decisions, and not with the context of a single organization. Source
Frameworks for a just regenerative transition:
The principles of a just transition by Climate Justice Alliance can be found here.
Key principles
The principles of the regenerative economy are explained in detail here.
Environmentalism was about protection, sustainability is about survival, and regeneration is about thriving
Dive Deeper
Topic relates to:
Externalities Forms Of Capital Regenerative Business
Further Reading:
Designing Regenerative Cultures REGENERATIVE CAPITALISM: How Universal Principles And Patterns Will Shape Our New Economy Framing the future as ‘just and regenerative’: why and how Indigenous Pathways to a Regenerative Future The First Principles of Regeneration