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MLT Newsletter

October, 1991


PROJECT UPDATE

Earlier this year, the MLT contacted the Kalamazoo-area Habitat for Humanity in hopes of one day integrating permaculture designs with some of that agency's home sites.  By spring, MLT farm co-manager, Jon Towne, had met with a HFH home buyer and a rough plan was developed.  Afterwards, Jon came up with detailed plans and drawings that were met with enthusiasm from the home owner.  Included in the design were a variety of fruits, berries, and ornamentals that were suitable for that particular site.  A local nursery donated the stock, and the project was to be included in the area's "Parade of Homes.

Optimally, the effort will be good publicity for the MLT, and it will help increase awareness as to the use of perennial plantings.  Jon reported at the most recent board meeting, that he will contact the homeowner for an evaluation of the project.



A THIRD WAY IN ECONOMICS
Maynard Kaufman

A Review of Post-Crisis Equilibrium:  From Growth to Harmony by Alfredo Lopez de Romana

For too long economics has been out there serving the interests of industry and government, generating profit and revenue as it commodified whatever it could.  A Peruvian.architect/economist, Alfredo de Romana, is now calling for the homecoming of economics.  He sees "local solutions to global problems" as part of an "authentic movement of social renewal" (19)* which might support a more humane and ecological economics.

After a decade of exceptionally wide reading, de Romana has published the first two parts of his major work, Post-Crisis Equilibrium: From Growth to Harmony.  In it he is exploring the outlines of an alternative economic paradigm, different from the growth-oriented economics of industrial societies, whether capitalist or socialist.  Most of us are by now familiar with the social and environmental crises created by the conventional market economy and we like to criticize it and even propose reforms.  Those of us living under capitalism might urge
more socialist policies to mitigate the ravages of free enterprise. Those in socialist societies are currently looking toward more free markets as a solution to their problems.  Neither side has yet caught the vision of a third way, and it is this that de Romana is trying to discover.  Much of this new paradigm is still outside the framework of conventional economic thought and its parts need to be understood in the context of the new paradigm, not judged by the old.

From Growth to Harmony implies a shift from economic growth to ecological harmony.  De Romana argues that this shift is possible as we seek a better balance or "equilibrium" between the market economy of industrial societies, where money mediates between production and consumption, and what he calls the "vernacular/informal sphere."  The term "vernacular" (an old Roman word referring to household production
and activity, as in the language we learn at home) is borrowed from Ivan Illich to suggest that which is home-made or home-grown, production for use rather than for sale or exchange.  And, given the social and environmental crises created by the production and consumption of commodities, more vernacular activity could lead to a Post-Crisis Equilibrium.

The subtitle. Economic Implications of Human Welfare and Ecological Sustainabilitity, suggests that de Romana is seeking an economics that would be geared to human welfare and ecological sustainability rather than simply productivity, as in the present commodity-intensive economy. De Romana challenges the prevailing myth of productivity-that more goods and services will abolish scarcity.  Since people understand their own needs better than centralized markets, the key dimension of this new economics is vernacular activity—production for use in the household and community.  "Without a regeneration of the vernacular realm, it will be impossible to ensure simultaneously ecological sustainability, socioeconomic security and the flowering of cultural vitality" (163).

Part 1 of de Romana's work is called "The Vernacular/Informal Sphere vis-a-vis the Industrial/Formal Sector."  Since we are exploring a new paradigm it is necessary to develop a vocabulary to distinguish it from the industrial paradigm.  Non-monetary vernacular activities are largely invisible to people in industrial societies where nearly all needs from food to leisure activities are satisfied by commodities. Moreover, the radical monopoly of commodities for the satisfaction of human needs is gradually obliterating the cultural possibility of
vernacular competence.  Many people, for example, no longer know how to raise and cook food.  De Romana sees the penetration of the formal/industrial sector into the informal/vernacular realm as a kind of parasitism, and as the vernacular realm of household and community is thus parasitized the social fabric is disintegrating.

In contrast to cashless vernacular activity, de Romana identifies the informal economy as consisting of odd jobs, small businesses, and community organizations which do involve cash transactions but "are based less on capital investment than on the investment of effort and creation of organization through autonomous work" (37).  Thus the informal economy includes craftsmanship versus industry, it is cost-effective rather than capital-intensive, the activity of resourceful humans rather than the product of human resources, and it is motivated by need or personal growth rather than profit.

The vernacular and informal together constitute the autonomous sphere of economic activity which de Romana contrasts to our conventional economy, the "accumulation-intensive sector."  He emphasizes this kind of contrast and argues that the conventional contrast of market versus state-controlled economies is false (since market economies are also state supported and regulated) and misleading because this conventional
contrast obscures the autonomous sphere. Most of the second part of de Romana's work is devoted to a critique of the accumulation-intensive economy.  This critique is informed by the many writers who have exposed the problems in the industrial economy.  These problems include the devastating ecological impact of a growth-crazed economy, the disintegration of the social fabric, artificial scarcity, waste,bureaucratic inefficiency, inequity as structural unemployment increases, and materialistic values.

A major problem is that the industrial mode of production seems to be more efficient than vernacular activities because so many of its costs are externalized and absorbed by the public or by the ecosystem. Forcing polluting industries to internalize these costs is a possibility,  but since this would threaten the viability of the only means of production in industrial societies, de Romana proposes it not be done until more opportunities for vernacular and informal production are provided.

Another problem looming in industrialized societies is the spectre of "shadow work."  This, another concept borrowed from Illich, refers to the growing amount of unpaid work done within the industrial economy. Such unpaid work includes shopping, commuting, required job training, and, more recently, recycling the packaging of industrial goods. In one of his more original passages de Romana worries about the extension of shadow work in the provision of social services with professional management of unpaid volunteers, especially as tax revenues are diverted to support failing industries.

Despite his critique of the industrial system and his focus on vernacular possibilities, de Romana is not proposing a return to pre-industrial ways of life.  Rather, he believes that "an extremely efficient synergy is possible between the formal and autonomous sectors, between the exchange economy and vernacular autoproduction" (56).  But first it is necessary to recognize that the formal economy enjoys a parasitical relationship with the autonomous economy.  Once this is recognized and the industrial economy has contracted, de Romana anticipate a "Post-crisis equilibrium."  "We need to arrive at a state of equilibrium between: 1) vernacular activity, informal work and industrial employment; between: 2) vernacular culture, informal knowledge and engineered systems; and between: 3) vernacular, informal and industrial capital" (155).

De Romana's work is still in progress-he is working on a third part devoted to post-industrial social organization with its new economic and political paradigms.  His recommendations at this point are largely negative:  deconstruct the ideology of economic growth,"disestablish the official imposition of consumption and industrialized lifestyles" (144) and "disestablish the official commoditization of work, land and money" (154).  This would liberate labor, land and capital from the hegemony established with the growth of the market economy.  Therefore instead of continuing official support for "employment," (the form which work was given in the industrial era) de Romana proposes opportunities for vernacular activity.  Every person should be guaranteed free access to the use of land for household production.  The abolition of work, land and money as commodities, at least under some conditions, is, according to de Romana, "a precondition for the vernacular realm to regenerate" (154).

Finally, de Romana is urging that it is time to begin the process of"re-embedding" the economy.  (He is here referring to Karl Polanyi's contention that as the market economy grew it was disembedded from its cultural framework or social matrix so that it began to determine political policy and cultural development.)  A re-embedded economy would serve human welfare rather than economic growth.  No longer a Faustian instrument aspiring to limitless growth, it would, as re-embedded be heedful of ecological constraints.  This would be a "third way" clearly distinct from the market economy or the state-controlled economy.  And, says de Romana, it "can be found only if social organization revolves around a central vernacular realm" (162).  Local production geared to local needs rather than to the imperatives of centralized markets, would be ecologically more efficient, using fever resources and generating less pollution.

Alfredo de Romana is a careful and creative reader of alternative economics and he brings a much needed Latin-American perspective to his work.  He deserves a wider audience.  We can only hope that when the entire work is ready it will be widely available.
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*Parenthetical page numbers refer to de Romana's work as published in Interculture, Issues 104 and 105 (Summer and Fall, 1989).  Copies are available from Monchanin Cross-cultural Centre, 4917 rue St. Urbain. Montreal. Canada, H2T 2W1, for $4.25 each.



Living in the Sticks by Mike Phillips

BALLOT BOX FOLLIES

An old friend and ex-neighbor. Swan, always argued that exercising one's right to vote in this day and age was senseless. Over the years, and over a lot of beer and herbal tea, we would sit around and run that premise right into the ground.  Ultimately, I could never give him a compelling reason to go to the polls. Our democratic process-though not inherently evil-is at the very least absurd.  And in light of recent events. Swan's steadfast declaration rings in my ears:  "Why vote?"

It's estimated that George Bush's pyrotechnics over Iraq will eventually leave over 250,000 people dead (figure in untreated sewage, contaminated water, disease, hunger, etc.).  Here in the heartland, as the bombs fell the masses cheered while the democratic party cowered and slipped further into oblivion.  Can millions of yellow ribbon-donning yahoos lining the streets and watching a seemingly endless succession of victory parades all be wrong? Yes.  Nonetheless, the war was a soothing balm for our national psyche left traumatized by Vietnam.  It will also secure Bush a second term as president.  I fear that he may run unopposed.

Speaking of democrats in oblivion, during the last presidential primary my wife and I slipped into the polls shortly before they closed.  When we signed-in we were horrified to learn that we were only the 39th and 40th persons to vote in the democratic primary for our entire precinct.  Since then I've noticed that in the local general elections almost all the canidates are republicans running unopposed or against each other.  So much
for the two-party system.  A couple of times a year the 4th District rank and file democrats probably sit around a picnic table, drink a few beers, and have a good cry.  Ard in state politics, our vaguely-populist democratic senator up for re-election was one of the Keating Five.  Oh, hell.

On a much brighter note, the MX missle will no longer be based in Michigan.  Ten years ago we marched in protest of its arrival and now it's leaving.  It wasn't driven out by referendum or by the peace movement.  A congressional committee chose to shut down the base where it was housed.  Michigan politicians mourn as the trickle of returning federal tax dollars continue to be diverted to the south and west.

I am still obliged to go to the polls on election day-asthe crow flies the township hall is only a couple of hundred yards away.  The good thing about having so little faith in the political process is that it compels a person to get more involved.  Swanmay not vote, but he still has devoted countless hours to community service." And just last night my neighbor called.  He wants to organize the neighborhood to stop the county from spraying herbicides on our lands that adjoin county roads.  While we're at it, he suggested that one of us should always be in attendence at the monthly township meetings.  We had better get going.



NOTICES

The fourth Great Lakes Bioregional Congress takes place October 4th through 6th in Hell, Michigan For more information contact: GLBC '91 P.O. Box 724, Petoskey, Michigan 49770

The exhibition, AS SEEN BY BOTH SIDES—American and Vietnamese Artists Look at the War, is showing at Art Center of Battle Creek now through October 13, 1991.

Southwest Michigan Greens meeting on Monday, October 28th at 7:30 pm at the Wesley Foundation, 2101 Wilbur on the campus of Western Michigan University. 

--Michael Phillips, editor

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