A think tank bridging the gap between mainstream finance and the new economy movement

http://pricetags.files.wordpress.com/2008/04/800px-london_millenium_wobbly_bridge1.jpg

Mission: To stimulate interaction and action of leaders, scholars, and society by raising awareness of the need to harness the power of capital and markets to advance a just, resilient, and sustainable economic system.

A think tank?

Agenda 1. Setting the table: UNSUSTAINABLE 1. How we got here 1. Finance is the acupuncture point 2. The Capital Institute

1.

compound growth is

UNSUSTAINABLE

We have breached the finite boundaries of the ecosphere Planetary Boundaries Rockstrom et al: “ A Safe Operating Space for Humanity ” (Volans graphic)

OVERSHOOT The global economy now uses up 1.5 times the earth ’ s capacity to regenerate the natural capital upon which the system and life depends.

- The Global Footprint Network

FACT

If everyone were to live like Americans we would need 5 Earths http://passmethemalkplease.files.wordpress.com/2008/04/gursky.jpg

Symptoms of an unsustainable system…

Symptom:

Population Crisis

World 6,826,859,514

http://cdn5.mattters.com/photos/photos/1370157/crowded_train_stations_in_china_10.jpg&imgrefurl

Hurricane Katrina, 2005

Symptom:

Climate Crisis

• Weather-related disasters affecting 1 million up 4X over 4 decades • Economic losses up 10X (The Millennium Ecosystem Assessment) http://www.katrina.noaa.gov/helicopter/images/katrina-new-orleans-flooding3-2005.jpg

Symptom:

Water Crisis

• Lake Meade, primary water source for Las Vegas, projected dry in 10 years (Las Vegas Sun) • Per capita water availability dropped by 1/2 in my life time • 800+ million currently live in locations without appreciable recharge of groundwater. (The Millennium Ecosystem Assessment) http://www.naturalbuy.com/wp-content/uploads/2008/08/water-crisis.jpg

Symptom:

Desertification

The Silent Global Crisis: • Soil loss: 24 B tons per year* (1992) • C02 emissions: 28 B tons (2009) • In past 40 years, 30% of farmland

has become unproductive

http://www.globalenvision.org/files/343342966_d32322dd2a_b.jpg

We Are Here

Symptom:

Peak Oil

USA

• 2% of population Controls > ½ the World ’ s Wealth Portugal • 50% of population controls < 1% of World ’ s Wealth • Income gaps between rich and poor > 2X in last 50 years Greece UK Ireland New Zealand

Symptom:

Increasing Wealth Inequality

Finland Belgium Austria Germany France Switzerland Canada Australia Italy Netherlands Norway Sweden Japan v Wilkinson & Pickett,

The Spirit Level (2009)

Better v Low Income Inequality High http://www.inhabitat.com/2010/10/14/worlds-largest-and-most-expensive-family-home-completed/

Symptom:

Financial Crisis

http://www.oneinchpunch.net/wordpress/wp-content/uploads/2007/12/crude-oil-spill-clear-up.jpg

2.

How we got here

warding Success

How we got here: economics is flawed • General Equilibrium Theory and Efficient Market Hypothesis are now broadly rejected • Spawned the creation of George Soros ’ s Institute for New Economic Thinking (INET)

warding Success

How we got here: economics is flawed But the problem goes deeper… • Economics is based on Newtonian Physics • Economics is in conflict with the laws of thermodynamics

Sustainability in Complex Systems Optimum Sustainability 100% 0% Resilience Efficiency Source: Bernard Lietaer, 2008

What

’

Desired Outcome

Finance

Economy

Planet

3.

Finance is the acupuncture point

As the crisis of modern capitalism asked: ’ s conflict with the biosphere and our demands for social justice accelerate, capitalists will increasingly be what is the purpose of capital?

what is the duty of capital?

Finance is the fuel source, what we feed GROWS

Driving Capital Upstream

4.

The Capital Institute:

System Transformation • The Power of the 1 • Our People • Our Focus • Our Programs

The problems we face are the symptoms of a broken economic system… Capital Institute is changing the paradigm in which our economic system operates.

CHANGE consciousness system problems

The power of the

• •

Our Theory of Change:

The power of

1

The leadership of the

1

%

• • •

Our Theory of Change:

The power of

1

Social change comes bottoms up – civil rights Capital has catalyzed profound social change – divestment ended Apartheid Transforming our relationship with money is the social movement of the century

Our Theory of Change:

The leadership of the

1

% • Opportunity • Responsibility • Duty

“what did you do, once you knew”

Capital Institute People

Board of Directors:

• Diana Propper de Callejon • Dr. Robert A. Johnson • Peter D. Kinder • Simon Rich • Dr. Joseph Stanislaw

Capital Institute People

Brain Trust:

• Peter G. Brown • Graciela Chichilnisky • Robert Costanza • Penelope Douglas • Hazel Henderson • Tim Jackson • William Rees • Allan Savory • Juliet Schor • Gus Speth • Peter Victor • Stewart Wallis

Capital Institute Focus • • • • • Investment Markets Metrics Money Advocacy

Capital Institute Programs We have developed a range of programs, which function to explore the critical questions, effectively communicate key messages, and instigate reform…

The Capital Blog “ The Future of Finance ”

The Capital Forum A communications hub and virtual platform for selective news, debate, expert discussion and analysis.

The Capital Lab • 3 rd Millennium Economy • Committee on Transforming Finance (CTF) • Global/Local • Post Modern Portfolio Theory

Academic Outreach

The Capital Fellows Program Leading practitioners and scholars engaged in trans-disciplinary collaboration

The Capital Channel A thoughtfully curated virtual channel of cross disciplinary videos and print resources

Imagine: Harnessing Capital

A world in which finance serves a just, resilient and sustainable economic system…

Imagine: an economy that r espects the physical boundaries of the biosphere http://www.wabash.edu/images2/photo_album/1576/rain%20forest1a.jpg

Imagine: resilient local economies thriving within an interdependent global system http://www.vancouverislandfarmersmarket.com/wp-content/uploads/2010/02/Colorful-vegetables.jpg

Imagine: new markets, tools and metrics to manage the transformation

Imagine: finance as the fuel source for transformation

http://www.unescap.org/unis/What_s_Ahead/2009/Apr/ldc.jpg

Reform Transform

yes, a think tank