| November 1, 2002: Here's
a simple game that makes a not-so-simple point.
Stand in a line, with several friends. Each of you hold your right
index finger out in front of your body. Now place a long stick across
all of your fingers, balanced upon them. Your collective goal is
to lower the stick to the ground. There is only one rule. Each finger
must remain in contact with the stick at all times. If anyone's
finger looses contact with the stick, you must raise the stick back
to the starting level and begin again.
According to Dennis Meadows and Linda Booth Sweeney, who include
the game in their book, The Systems Thinking Playbook*, groups of
people following this rule almost always raise the stick instead
of lowering it. As each player works to keep in contact with the
stick the group as a whole pushes steadily in the direction opposite
to its goal.
This might sound like a silly exercise, but it makes an important
point. We can agree to rules that seem to make sense, we can follow
those rules, and we can still have outcomes no one wants or even
anticipates.
In my column last month (Deadzone
Economics), I described such a system -- commodity
agriculture. Individual producers compete to stay in business by
attempting to produce more commodity for less cost. As everyone
produces more, the price per bushel falls, and to maintain the same
income the producer must grow more or cut costs. Production goes
up, and costs go down, but since land stewardship or contribution
to community does not count as a benefit in this equation, and since
damage to the soil or to the watershed does not count as a cost,
environmental and social indicators decline while "efficiency"
rises.
The solution seems simple. Change the rules, so that all the costs
and benefits society cares about factor into the economic decision
making. Charge for the destruction of biodiversity or the degradation
of water quality. Reward good stewardship and contributions to local
community.
The exact solutions are local matters. They will be different for
soybeans than for corn, and different for codfish than for tuna.
The knowledge of people living and working in these systems will
be central to the design of policies that allow these systems meet
their environmental and social goals.
But, even before we come to implement specific policies, there
are challenges to overcome. For those commodities sold into global
markets it is not a simple matter to change the rules to take social
and environmental goals into account. If a pollution tax raises
the price of corn in the US, multinational grain buyers -- caught
up in their own competitive dynamics -- will feel themselves forced
to buy from other producers, in places that do not account for environmental
degradation. As long as the buyers are intent on buying the cheapest
commodity, growers in one region cannot afford to improve the rules
of their systems unless growers in other regions take a similar
step. This sets up the system for what some have called a "race
to the bottom", with no one able to improve the system rules
on their own and everyone experiencing pressure to push costs off
onto the environment or onto workers and communities.
A system is primed for this problem when the reach of buyers is
broader than the decision-making boundaries of producers. Solutions
will require reducing this asymmetry, either by limiting the reach
of buyers or extending the solidarity of producers.
You hear more in the news about the first option. That is a part
of what the "anti-globalization" movement is about--changing
the rules of the largest economic system so that people are able
to take steps to make their local economies serve them better. This
is critical work -- no system can be healthy if the rules at one
level create pathology at another level.
But there are other possibilities that need our energy too. Governments
from producing regions could commit to policies that incorporate
social and economic goals on a multi-national scale. If all the
corn producing regions of the world did this, it would no longer
matter that multi-national commodity-buying corporations shop for
the cheapest grain. Wherever they turned they would find local economies
that were accounting for the full costs of grain production.
The corporations that buy and process commodities -- corporations
made up of people who don't set out to degrade resources or communities
-- could also come together to find solutions. Because a relatively
small number of companies buy any one commodity this is a practical
possibility. The corporations could agree to raise minimum environmental
and social standards and take the steps towards these standards
together, paying the full costs together, with none of them at a
competitive disadvantage.
Can commodity producers, or governments, or competing corporations
come together to end the race to the bottom? That is a huge dream,
and one that may seem to require more cooperation than our world
can muster right now.
On the other hand, it is a dream that is rooted in the reality
of our planet. We are one people, living together on one small world.
Sooner or later we are going to have to embrace this fact. Anything
less means sitting back and waiting for the race to the bottom to
reach its final destination. All of us need to demand that the governments
we empower and the corporations we buy from end the race to the
bottom now, while there is still time. 
For more information on the Systems Thinking Playbook visit
http://www.unh.edu/ipssr/Lab/playbook.html
Beth Sawin is a mother, biologist and systems
analyst who lives in Hartland Vermont and works at Sustainability
Institute (www.sustainer.org).
Contact her at bethsawin@vermontel.net
to receive a monthly column on systems and sustainability.
Previous columns by Elizabeth Sawin
- OCTOBER 1, 2002: Dead
Zone Economics: When are we going to start making
healthy soil and clean water part of the economic equation for
successful farming?
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