|
 |

|
# Ecological Market Economy Forum |
|
It is predicted that by the year 2050, the Earth's population will exceed 9 billion people. If all nations pursued the market-based economy of the United States, then it would be impossible for human society to co-exist with the global environment. Responding to this conclusion, a movement was born to seek a new economic framework. In opposition to the US-model of the Market Economy, which prioritizes nothing, is the European model of the Social Market Economy, which holds that the market should operate for the benefit of society. The Ecological Market Economy carries this idea further by including the global environment in the field of view along with human society. In Japanese, "Ecological Market Economy" is often translated as "Environmental Growth Economy." With this forum, we hope to explore a point of view that includes a new economy and a new style of management. |
 |
|
 |
|
Those who have spoken out about environmental problems in the past have traditionally been anti-corporate and anti-marketing. Currently however, this "Environment vs. Economy" stance is disappearing from the main stream. Corporations that do not reflect the anxiety that individuals feel about the environment will probably not survive. I agree with the philosophy that we must change our current economics to a model that promotes economic development while giving due consideration to the environment.
The current capitalist economy began in the 16th century. The current situation is that the modern form of capitalism is nearing its end or has already become obsolete. Philosophers and Futurologists have been saying this for about 30 years, but it can now be felt at the corporate and national levels. Moreover, the recognition that industrial capitalism has come to an end must come from not just the environmental side but from all aspects of society. What we are experiencing is a major historical transition that occurs only every 200 to 500 years. The recognition of this transition is important and I think that corporations will also have to change in the next 5 or 10 years.
Modern corporations gained a certain kind of trust through organization, procured enormous capital, produced in mass quantities, promoted mass consumption, pushed commercialism, made consumers consume, and produced mass waste. This type of society began in the 16th century and reached its peak in the 19th and 20th centuries. And this type of society started to perish in the latter half of the 20th century. We have reached the limits of our environment at the same time that a technological reformation has occurred. Both the revolution in telecommunications and advances in biotechnology have made revolutionary advancements. With these intense technological innovations, it has become possible to avoid the cycle of mass production/mass consumption that is prevalent in our current society. It is now possible to receive consumer needs in real time and respond to them with some type of production-to-order. Technologically, diverse products can now be produced in small lots.
What modern corporations need is not large volumes of people, but rather technology, brand recognition, and information. Just because the economy has recovered does not mean that employment has recovered. In fact, corporations have cut back on jobs to increase profits. The pattern of life that called for graduating from a good university, getting a job at a good company, working for the company, carrying your share of mass production/mass consumption, and receiving your salary will no longer exist. This was the lifestyle based on the modern industrialism of the 19th and 20th centuries. So, where will these "extra" people go? The birth of new organizations such as NGOs and NPOs fill this gap. In contrast to modern corporations, these organizations are groups of people who do not share the same ideas of profit motivation and participate in a wide variety of activities. The shift from a corporate-centered society to a NPO-centered society must occur. This is not simply a change that "should occur" but one that "must occur."
The next 20 or 30 years will probably see a major change not only in corporations but also in human lifestyles. We must return to the pattern of life of doing what we want to do with whom we want to do it while living with nature on the land where we were born. This will be the actualization of the shift from a concentrated society to a more dispersed society.

People's values are also slowly changing. In particular, there is a growing sense in developed nations such as Japan that more "things" are unnecessary. Everyone eats enough and has enough good clothes to wear. We have a sufficient amount of "things," perhaps wanting only a better television or mobile phone. Amidst all this, the consciousness of the individual has changed radically. How will corporations, countries, and governments create a system to back up this radical change in consciousness? We must realize that Japan is in a position to take the lead in creating this new system. Of course Europe is progressive on environmental issues, but we have created a society based on a mature middle class with a great deal of freedom. This should enable us to make selections that help create a new recycling-based society.
For example, Japan has a history of constructing a peaceful, beautiful world, of a type not seen before. During the Edo Era, more than 250 years of peace were maintained at the national level. The common people loved nature. The nation was decentralized and there was a recycling-based society. There are many things to learn from the Edo Era.

In fact, there is no other nation that has become as concentrated nor has destroyed nature at a pace as fast as Japan. We have flooded everywhere in concrete and have lost our nation's beauty. We have deformed our country. We have not always been such a nation.

Iwate Prefecture Governor Masuda and I have been discussing doing some "Destructive Public Projects." We've been saying that we should rip out all the concrete put in as bank protection along the rivers. But, in fact, it costs more to destroy than to create. Even so, the time to do these types of projects is nearing. Of course, this means returning to nature, but it also means that we have been put into a position where these projects must be done. We have also entered a stage where we can begin to act. We must change the shape of our nation. This is not Japan's problem, it is a global problem. I think that we are entering an environment where we can do these things.
|
 |
|
 |
|
I'd like to present my conclusion first. I believe there is no solution other than an "Ecological Market Economy." For example, China has an enormous population in an undeveloped state and is developing economically at an explosive rate. They must push growth economics, and it is unlikely that they will have zero growth for the next 50 years. Accordingly, I believe that we must push a market economy or growth economy that gives thorough consideration to the environment to the entire world.

Of course, I assume the rapid development of democracy, market economy, and science and technology. I believe that these are the keywords. In particular, no one can exit from the ring of the market economy. No one can restrain the development of science and technology. These are developing independently. The market also has these characteristics.

So, the question becomes in what direction will we develop our science and technology and our market economy? I believe that a good strategy would be to create a sustainable future out of the vigorous market competition by intensifying contributions, taxes, and legal restrictions. The solution to the simultaneous problems of reviving the Japanese economy and greening the Japanese industrial market is commonly referred as a state founded on the principles of environmental protection or an environmental nation. But this is, more simply put, the all out effort to promote an ecological market economy (environmental growth economy).
It is quite obvious how we came to reach our limits. It goes without saying, but I will give an academic explanation. Humanity has already monopolized 40% of the carbon fixed through photosynthesis. Our population is growing at the rate of 2.4 persons per second, about 77 million people a year. Seven-point-two million hectares of land are needed to grow the 21.3 million tons of food to feed this additional population. Additionally, 21.3 billion tons of water, equivalent to the yearly supply of water from Lake Biwa, are also needed. Even looking at these figures alone, it is obvious that we cannot continue at this rate.

In addition to the problem of physical sustainability, there is the problem of social sustainability. According to the World Watch Institute, with an annual budget of 5 billion dollars, we could reach a 100% literacy rate world-wide. With 12 billion dollars, access to a clean water supply for all is possible. With 19 billion dollars, hunger and malnutrition could be abolished. And with 24 billion dollars, soil degradation could be avoided. So, you may wonder if this amount of money is available. Well, in 2001, the world expenditure for the military was 839 billion dollars. This is the way it is. We are clearly mistaken in the way we use our money.

Another problem we face is the economic externality. We receive everything from the global ecosystem, but the costs borne by the ecosystem are not reflected in the actual market price. In response to this criticism, economists and ecologists have converted the services provided by and assets of the global ecosystem into currency and have arrived at an annual total of between 36 and 58 trillion US dollars. The world GDP in 1998 was 39 trillion dollars. Although we receive benefits from ecosystems equivalent to the world GDP, this is not reflected in market prices. This is a major problem.
How can this problem be solved? After 10 years of debate, it is clear that we must change from the old industrial economy to the new service economy. To accomplish this, we must emphasize a product's use-value over its exchange-value.

Manufacturers must change from a product sales business to a functional sales business. We consumers must also change from the belief that we possess products to the understanding that we receive services. Aiding in this goal are the concepts of Design Production and Eco-Design, switching from providing products to providing service, various IT activities, and also the enrichment of public goods. These areas must be completed fastiduously. To support these activities, the application of taxes and contributions must be changed and legal regulations must be strengthened.

The roles of technology and management are also clear. One is the strategy of de-materialization or reduction of material objects. Or, simply put, to ultimately push energy and resource conservation. Or the reduction of the discharge of environmental waste products. And changing our materials. Substituting materials. Weaning ourselves off of carbon-based energies by, for example, using natural fuels that are not petroleum derived. We can facilitate an environmental technology reformation by promoting these three strategies.
I acknowledge the limitations of the environment. Japan's environmental policy for the past 10 or so years has focused on the garbage policy. You could make whatever you wanted. But, when you throw something away, be careful. That is the essence of Japanese environmental policy. This is no good. Do not make products that become garbage. Do not construct buildings (for example) that will use large amounts of energy. Control the flow at the entrance. Eco-Design must be made a requirement. Also, environmental information must be made public so that appropriate choices can be made when choosing products. These things are important. Making these changes will lead to wonderful environmental technologies and environmental management. Force fierce competition into the marketplace. This is the important lesson I received from my 12 years of eco-material research.
I looked at the environmental policies of each party during this last general election (lower house election in autumn 2003), but unfortunately, I thought that the environmental manifestos were quite weak. What about the unification of environment and economy? What are we going to do about our future national businesses? What about a vision for our future lifestyle? I felt that the manifestos did not sufficiently address any of these issues. I hope the results of the discussions found in these kinds of forums are made readily available so that the parties can easily imitate them as integrated environmental policies and use them as a concept of a state founded on the principles of environmental protection. I also hope that by the next upper house election, that the parties will be able to propose an environmental manifesto model. |
 |
|
 |
|
After the war, Japan was faced with a supply shortage. So, the provision of sufficient goods became a strong central theme. Since we were trying to mature that which was immature, centralization of power was the best method. And bureaucracy. The prevailing attitude at that time was that the consumers and the demand side had unlimited demand, so of course, the supply side would have to be fortified. I think we can recognize the good results of the policy of shifting from a supply shortage to supply sufficiency up until about 1985.

When a sufficient supply of goods becomes available as a result of our efforts, the demand side and consumer side become overwhelmingly strong. Here, the ideas of "customer first" and "customer satisfaction" are introduced by management theory. The corporations who first implemented these concepts became winners.

The sector that lagged behind was the governmental sector. The governmental sector follows the ideas of paternalistic system, that is, a system of patrons and dependents. Both sides fit and adhere to each other and plan for the maximum individual profit. The government and private sector fit into this system. The relationship between the Ministry of Agriculture, Forestry and Fisheries and agricultural cooperatives is of this type. The relationship between the Ministry of Health and Welfare and medical associations is of this type. So is the relationship between the local and central governments. If the 3.2 million local government employees became subcontractors of the central government, there would be no innovation. There would be no accomplishment, no self-fulfillment. In the end, they are just ordinary working people who get promoted if they are good at entertaining other bureaucrats. The consumer is simply an outsider.

Everyone should question the acceptance of this status quo and think about how to become an independent global citizen. I think that all Japanese should become NPOs. As so-called independent global citizens, we must consider how we will switch to a system of governance of complementation now that the era of dependence on government aid is clearly at an end.
We are convinced that elections and the government are just the way they are. I think, from the point of the manifesto, that this is a breakthrough point.

Mr. Koizumi said, "Campaign promises can be broken." When the Prime Minister of a democracy, its top spokesman, said this, did the Japanese mass media become angry? Did the Japanese people become angry? No, everyone laughed. Everyone is guilty of the same offense. "Yes. All the campaign promises were for the election. Let's break them together." This was the agreement, so the media didn't become angry. The public just laughed because that's the way it is. As long as we fail to recognize that this is the level of our democratic government, we will never have a government "by the people." I wanted a manifesto that could demonstrate that "Ahh... From campaign promises that are broken, we can also have campaign promises that are kept."
How can we distinguish between campaign promises that should be kept and those that can be broken? I believe that the answer is in whether verification can be performed after the election. Campaign promises today are not binding promises to the public, but merely verbal promises to the public. So, they could not be confirmed afterwards. So I said that we should record the goals, resources, and time line, and then confirm them over time. If this happens, our elections will become the selection of policies, so the elections would require a careful reading of contracts. Issues such as who becomes Chief Secretary of the party, who is too young, etc., merely become popular issues.

Our citizens have never been asked to bear responsibility. When the dead cat was removed, I think the residents would say, "That's democracy." Amidst this paradigm of growth, the government is the one swinging the lucky hammer. The result is 710 trillion yen of loans. Although the government and the administration are at fault, so are the people. If we don't examine this, the mobocracy will continue. The implication of a manifesto is to charge the citizenry, those with rights, with responsibilities.
I think we were able to share a recognition of the problem and the value of today's theme of environmental market economics and environment growth economy. So, how do we turn our common recognition to a movement? And the question of results is also important. The basis of major commitments toward a state founded on the principles of environmental protection or an environmental nation is you. The government will move "by the people." If the government refuses to budge, we can join forces with the mayor, the governor, and bring change from the local level.

There is an anecdote from complexity theory called "The Peking Butterfly." This refers to a butterfly flapping its wings in Peking, causing a stirring of wind that becomes a hurricane in New York. A tremble in the micro world can become a vast movement in the macro world. In the same way, small movements within Japan can easily impact the macro world of all Japanese. I sincerely believe this. I feel that if we all become Peking butterflies and take off as a 100, we'll become 200, the 200 will become 400, and after about a year we will become a 10-million strong movement.

I've also been working on the manifesto movement. And I feel that Japan has responded with change in the last 6 months. I believe that environmental problems are the same. I'd like to close by saying that I expect that the lofty commitments that come from this forum and the burst of energy from this movement will allow our country to become a leader in the 21st century. |
 |
|
This forum featured presentations by three men with three different approaches. We have heard from Mr. Eisuke Sakakibara who is a former economic bureaucrat working on the front lines, Mr. Masayasu Kitagawa, who successively implemented manifesto policy while governor of Mie Prefecture and has now begun to make waves in the national diet, and Mr. Ryoichi Yamamoto, who is a scientist advocating the necessity for corporate environmental management and of Japanese environmental policy. Each of these presenters conveyed a sense of a major change in our era by speaking of the necessity and inevitability of "Ecological Market Economy" in strong words.

This forum was sponsored by NPO Future 500 and E-square with the efforts of Takashi Kiuchi and Mr. Peter Petersen representing this organizations. The Think the Earth project initiated this project by posing the theme of "Co-existence of Ecology and Economy," but did not have a prepared answer. We believe that we must continue to ask "How can Ecology and Economy coexist?" This forum offered an ideal opportunity to think about this issue.

The second of these forums is planned for London, and we hope that this discussion will become more serious and global in scope. We hope to be able to report on the forum.

Finally, we received two questions before this forum addressed to world leaders in the environmental field. The first question is "What worries you most about the direction of modern society?" and the second is "What is the action plan for the creation of an ecological market economy?" We have asked for the august opinions of almost 50 world leaders in the environmental field including Amory Lovins (Director, Rocky Mountain Institute) and Lester Brown (Directory, Earth Policy Institute). We have also prepared a draft version of an "Ecological Market Economy Declaration" resulting from this forum.
The declaration is available for download from the following website. 
http://www.e-squareinc.com/reports/index.html ( In Japanese ) |
|
# Publications by the Presenters (Available only in Japanese) |
|
Eisuke Sakakibara
"
Deflation Lifestyle Revolution" (Chuo Koron Shinsha)
"
Understanding Exchange Rates to Understand the World" (Bungeishunju Ltd.)
"
Decision for a Decentralized Government" (The Mainichi Newspapers Co.)
"
To Create a New Government" (Chuo Koron Shinsha)
Ryoichi Yamamoto
"
Global Change in One Second" (DIAMOND Inc.)
"
The New Line of Environmental Technology Innovations" (JUSE Press, Ltd.)
"
Sustainable Company" (DIAMOND Inc.)
"
Strategic Environmental Management Eco-Design" (DIAMOND Inc.)
Masayasu Kitagawa
"
Taking the Helm for Rejuvenation of Local Government" (Gakuyo Shobo)
"
Governors Changing Japan" (Bunshun Shinsho)
"
Changing Organizations ? Revolutionary Theories from Takeshi Takatsuka and Masayasu Kitagawa" (Tochi Shuppansha)
"
Decisive Revolution ? Mie Prefectural Governor Masayasu Kitagawa's Challenge" (Koichi Baba, Zest)
|
| Report: Soichi Ueda, Think the Earth Project |
 |