Toward inclusive, democratic, and local ecosystems
In our series on learnings with the LIFT Economy MBA
note: The article below is borrowed from its original home, the Origin of Matter, written by one of the TAABIR fellows.
Toward inclusive, democratic, and local ecosystems
This article continues our exploration of economic concepts and strategies for transition, drawing from the insights of the LIFT Economy course.
Modern commerce is dominated by monopolies and extractive giants like Nestlé, where 90% of transactions serve exploitative industries rather than basic needs. By applying the 5 Major Principles of the Next Economy, we can distinguish true solidarity from corporate greenwashing. While brands like Dropps or Mrs. Meyer’s focus on eco-marketing, they lack the Inclusive Ownership and Democratic Culture found in models like Equal Exchange, Boston Ujima, and CERO.
This overview will discuss the following:
The Problem of “Need”: Moving away from a 90% exploitative economy.
The 5 Major Principles: Defining the shift toward inclusive, democratic, and local ecosystems.
Case Studies in Solidarity:
Cleaning: The limits of mission-driven startups.
Coffee: Global multinationals vs. worker-owned co-ops.
Waste: Reclaiming city needs from “Big Waste” monopolies.
Closing: Reclaiming our cash and our power.
What is a need?
In the last month, after my rent went up, I realized that if I didn’t cut my spending, I’d be packing my books into a box.
I stopped eating out. I cut out my coffee shop visits. I stopped visiting the neighborhood Marshall’s and instead talked to those same old ladies on my block instead of the demonic checkout line.
This came around the same time that we were studying needs-based economies in the MBA I’m taking. Here’s a recap of that lesson.
We need to be discerning about what is actually a need. Right now, most transactions aren’t revolving around basic needs; they are simply feeding exploitative industries who don’t give two shits about us.
The 5 Major Principles
Let’s look at the five major principles that can help guide us in understanding the companies that are full of it, and the ones that are actually trying to imagine a post-capitalistic society.
A core pillar of the Next Economy involves shifting toward need-oriented, basic goods and services, which moves the focus away from exploitation and toward what people actually require to live.
This transition requires a commitment to inclusive ownership, breaking the traditional link where economic rights automatically dictate power and governance. While exclusive models allow a few to have more, inclusive ownership encourages broader participation so that everyone is okay; however, employers face the challenge of convincing investors of its value. Despite these hurdles, a for-profit lens reveals that inclusive ownership is a powerful tool for retaining talent and avoiding the expensive headache of losing staff.
Establishing an equitable and democratic culture is essential, as seen in the case of Boston Ujima, which raised a 5 million dollar investment fund through a democratic process. Their “flipped model” utilizes a 50 dollar minimum investment to ensure that those at the entry level receive the highest democratic return.
These enterprises support local economy ecosystems by building non-extractive supply chains that stabilize producer economies globally.
Finally, education is embedded into the good or service, ensuring that the business does not just sell a product, but actively educates consumers on economic justice and alternative trade systems.
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Company Case Studies
Part of our assignment for the class was identifying a few businesses we rely on and measuring how they stack up according to these principles. I focussed on three major needs:
Cleaning products (personal need)
Coffee (spiritual need)
Composting/garbage collection (city need)
Cleaning products: Mrs. Meyers vs. Dropps
Although they sell different products and serve different needs, I found it interesting that I have an assumption about Dropps’ commitment to the solidarity economy. But their ownership by VC and hierarchical structure, as well as their reliance on global supply chains, illuminates the ongoing “greenwashing” epidemic in the current late-stage capitalistic system.
Instant Coffee: Equal Exchange vs Nescafé
Nescafé
Yes, Nescafé maintains its accent mark. One could argue its commitment to the Spanish language. Brand ambassadors, these guys.
But Nescafé’s NOs across the board appear as no surprise. They’re a hot mess. Their parent company, Nestlé, was featured in a golden article about the 56 companies responsible for half of the world’s pollution. On top of that, they are constantly being hit with lawsuits about their usage of child labor. Ouch.
Equal Exchange
On the other hand, check out Equal Exchange’s vibe.
Plus, their coffee tastes like heaven’s brew.
Composting/garbage collection (city need): Waste Management vs CERO
Waste Management, Inc.
Now let’s look at a larger scale societal need. Garbage collection, sanitation, and composting.
I recently learned about the insane garbage collection monopoly via Texas-based Waste Management (WM). Its profit maximization is so reliable that homeboy Gates invested in WM recently.
Check out this report: “How Waste Monopolies are Choking Environmental Solutions, and What We Can Do About It” by the Institute for Local Self-Reliance:
In the mid-20th century, the waste industry was at its most decentralized. Tens of thousands of firms serviced many areas of the country. Yet by the late 1990s, Waste Management Inc. (WMI) had acquired 3,000 small family owned haulers.2 Today, WMI has 437 subsidiaries and controls 38 percent of the waste industry.3 The company will soon acquire the fourth largest solid waste company, Advanced Disposal, leaving only four very large publicly traded companies to dominate the waste sector…
Big Waste dominates every aspect of solid waste and recycling practice and policy. The top four consolidated companies earn $30 billion of the $70 billion economic sector.
They go further to describe the landfill monopoly (riveting, I know):
Big Waste companies own or control 75% of the permitted landfill capacity in major metropolitan areas and control an estimated 50% of the national hauling market, with even higher levels of domination in certain regional markets.4 One of the key ways vertically integrated waste firms have solidified control is through landfill ownership. It gives them a competitive edge in bidding for collection and hauling contracts against companies that have to pay disposal fees to landfills. To secure that advantage, companies have strived to maximize the percentage of the waste they collect to deposit in their own landfills.
This economy invests in trash! Talk about an economy of needs.
Ok, enough bad news.
CERO
Here’s an example of a coop that brings joy to the world.
CERO is a commercial composting company based out of Dorchester, MA. Providing compost pickup and diversion services for a wide range of commercial clients in the metro Boston area, we transport compost to local farms where it is returned to the soil and then used to support the local agricultural economy. Our mission is simple: do the right thing for the environment while empowering everyone in our diverse community to engage in healing our broken food loop.
Closing Thoughts
Mission-driven branding does not guarantee structural solidarit— which can be assessed through these five principles as a start. This was quite a depressing deep-dive. It’s important to know where your hard earned cash is going. Plus, it’s always fun to trash mega-corporations (puns intended) and reflect on what I actually need and other ways to find those goods and services without worshipping companies that get to receive treatment as human beings. [See: Citizens United and recent attempts to overturn it].
From staying home, focusing on what I have, and hearing this tik-tok baddie on repeat, I have saved hundreds of dollars and many minutes of small-talk with baristas who hate me.
I also feel better not buying so much shit I don’t need.
happy new year, y’all.
OM
thank you gamma for the slides, thank you me for the homemade pancakes, thank you compost garden downstairs whose volunteers never miss a saturday.