Building Sustainable Communities Midwest Community Development Institute August 13, 2009

JERRY HEMBD State Specialist Community and Economic Development University of Wisconsin-Extension Associate Professor of Economics Department of Business and Economics University of Wisconsin-Superior

Overview Four “waves” of community and economic development Sustainability and systems thinking The empty/full world systems model Community sustainability The Natural Step framework Some initial resources Closing comments Afternoon session  examples

Personal Context Forty years of learning and experience Extension state specialist – in the beginning and at the end – in Wisconsin UW-Extension Sustainability Team Co-leader Sustainable Management degree (on-line, adult students) Community Development Society (including Journal) Local/applied commitments –Sustainable Twin Ports/Early Adopter Project (The Natural Step) –Northwest Wisconsin Workforce Investment Board (green jobs) –Wisconsin Arts Board (creative economy) –Green Collar Jobs Coalition (Duluth/Superior) International perspective

The Three Waves of Community Economic Development Plus One Three Waves Portion Derived from: Blakely, Edward J., and Bradshaw, Ted K. Planning Local Economic Development: Theory and Practice. 3d ed. Thousand Oaks, CA: Sage Publications, Drabenstott, Mark. “Rethinking Federal Policy for Regional Economic Development.” Economic Review, Vol. 91, No. 1 (First Quarter 2006). Eberts, Randall W. “Overview of State and Local Economic Development Policies and Practice in the United States.” In Local Governance for Promoting Employment—Comparing the Performance of Japan and Seven Countries, pp Edited by Sylvain Giguere, Yoshio Higuchi, and the Japan Institute for Labour Policy and Training. Tokyo, Japan: The Japan Institute for Labour Policy and Training, Shaffer, Ron; Deller, Steve; and Marcouiller, Dave. “Rethinking Community Economic Development.” Economic Development Quarterly, February 2006.

First Wave Industrial Recruiting 1950s to early 1980s Driver Export base Goal Attract outside firms Strategies Financial incentives Industrial parks Keys to success Government funds for subsidies and tax breaks Industrial infrastructure

Second Wave Cost Competition Early 1980s to early 1990s Drivers Efficiency and scale economies Goal Retention and expansion of existing firms Strategies Reduce taxes Deregulation Industry consolidation and cost cutting Keys to success Health of existing firms Training programs Social and physical resources

Third Wave Regional Competitiveness Early 1990s to present Drivers Innovation and entrepreneurship Goal Enhance regional resources to promote industrial clusters Strategies Entrepreneurship Clusters Building regional collaboration Keys to success Distinct regional assets such as –Human capital –Higher education –Amenities –Creative economy Leadership and development of competitive advantage Bridging economic and community development

The Fork in the Path  Current trajectory  Technical tinkering  Incremental adjustment  Paradigm change  Sustainability revolution  Radical overhaul

Fourth or “New” Wave Sustainability Revolution and Paradigm Change Early 1980s and still evolving Drivers Sustainable development and systems thinking Goal Sustainability Emerging Strategies Green collar jobs Alternative and renewable energy sources Local food systems Sustainable (eco) tourism Triple bottom line business Industrial ecology Valuing ecosystem services Precautionary principle Eco-municipality movement (The Natural Step)

Summary “Wave” Points First Wave  External focus, business and industry  Physical infrastructure Second Wave  Internal focus, business and industry  Training and social resources Third Wave  Internal focus, human and social capital  Community and economic development Fourth Wave  Holistic focus: human, social, and natural capital  Economic, social, and ecological relationships

“Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Intergenerational equity Source: World Commission on Environment and Development. Our Common Future. The Brundtland Report. Oxford University Press, 1987, p. 43. Defining Sustainable Development

“It contains two key concepts: the concept of “needs,” in particular the essential needs of the world’s poor, to which overriding priority should be given; and the idea of limitations imposed by the state of technology and social organization on the environment’s ability to meet present and future needs.” Intragenerational equity Environmental limits Defining Sustainable Development Source: World Commission on Environment and Development. Our Common Future. The Brundtland Report. Oxford University Press, 1987, p. 43.

Evolving Views of the Community Unconnected or silos viewInterconnected or linkages view Interdependent, nested, or systems view Environment Economy Society Environment Economy Society Environment Society Economy

Political Capital Natural Capital Cultural Capital Human Capital Financial Capital Built Capital Social Capital Healthy Ecosystem Vital Economy Social Well-Being Community Capitals Framework Source: Cornelia Butler Flora, North Central Regional Development Center, 2004

Natural Capital Financial Capital Manufactured Capital Human Capital Economy Society Natural Capital Social Capital The Five Capitals Framework Source: Forum for the Future

What is a system?

Conventional Thinking Traditionally, we try to understand complex systems by reducing the whole and studying the individual parts. And we deal with a set of issues in a one-off or linear way: First we fix problem A, –then problem B, –then problem C

Systems Thinking Systems consist of individual but interrelated parts. Systems depend on the relationships among the parts as much as the parts themselves. These relationships make the whole greater than the sum of its parts. When you dissect the system, you destroy the pattern of relationships.

We must look at the whole... … and not get stuck on details Systems Thinking

Types of Systems – A Beginning Closed system –Imports and exports energy only; matter circulates within the system  the Earth approximates such a system... energy flows through, material cycles within... finite, nongrowing Open system –Takes in and gives out both matter and energy  the economy is such a system... it can change in size

Solar Energy Energy Source Functions Sink Functions Resources Finite Global Ecosystem Waste Heat Energy Resources Recycled Matter Natural Capital (Ecosystem) Manmade Capital (Economy) Growing Economic Subsystem Human Welfare Economic services Ecosystem services Source: Daly, Herman. Ecological Economics. Island Press, 2004

Supporting Nutrient cycling Soil formation Primary production Provisioning Food Freshwater Wood and fibre Fuel Regulating Climate regulation Flood regulation Disease regulation Water purification Cultural Aesthetics Spiritual Educational Recreational Categories of Ecosystem Services Source: Millennium Ecosystem Assessment Washington, DC: Island Press.

Ehrlich-Holdren “IPAT” Equation I = P * A * T I = environmental impact of the economy P = population  growing A = average material standard of living  growing rapidly (consumption) T = throughput (resource consumption, pollution, and ecosystem impacts) per unit of output  technology term to compensate for P and A Original Source: Ehrlich, P., and Holdren, J “Impact of Population Growth.” Science 171:

World Population Since AD 1 Billion People

Growth Trends Summary: Past Two Centuries Population  sixfold Energy use  eightyfold Economy  sixty-eight fold “It took all of human history for the global economy to reach the 1950 level of over $5 trillion; in this decade, the world economy expanded that much in a single year.” Source: Dumanoski, Diane. The End of the Long Summer. New York: Crown Publishers, 2009.

Growth Trends Summary: 1950 to 2000 Population  more than 2X Energy use  4X Economy  7X Food consumption  3X Water use  3X

Societal Pressure on Earth Systems Source: International Geosphere- Biosphere Programme, 2004

Societal Pressure on Earth Systems Source: International Geosphere- Biosphere Programme, 2004

Solar Energy Growing Economic Subsystem Energy Source Functions Sink Functions Resources Finite Global Ecosystem Waste Heat Recycled Matter Natural Capital (Ecosystem) Manmade Capital (Economy) Human Welfare Economic services Ecosystem services Source: Daly, Herman. Ecological Economics. Island Press, 2004

Natural Capital (Ecosystem) Manmade Capital (Economy) Source: Daly, Herman. Ecological Economics. Island Press, 2004 Finite Global Ecosystem

Key Science-based Analyses Millennium Ecosystem Assessment (2005) ► two-thirds of ecosystems and their services are degraded or being used unsustainably Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC 2007) ► the Earth is warming ► humans play a significant role

Conceptual Reform in Economics: Seven Big Ideas Adjust economic scale Shift from growth to development Make prices tell the ecological truth Account for nature’s contributions Apply the precautionary principle Revitalize commons management Value women Source: Gardner, Gary, and Prugh, Thomas, Project Directors. State of the World 2008: Innovations for a Sustainable Economy. New York: W.W. Norton & Company, 2008.

Community Development a group of people in a locality initiating a social action process (i.e., planned intervention) to change their economic, social, cultural, and/or environmental situation

Wisconsin Eco-municipalities Town of La Pointe City of Washburn City of Ashland City of Madison City of Bayfield Town of Bayfield Douglas County Village of Johnson Creek City of Marshfield City of Manitowoc City of Neenah City of Menasha Town of Menasha City of Eau Claire Town of Cottage Grove City of La Crosse La Crosse County City of Stevens Point City of Wausau City of Beloit City of Baraboo City of Sheboygan Dunn County Village of Spring Green Village of Colfax

A Growing Movement Community stories

An eco-municipality aspires to develop an ecologically, economically, and socially healthy community for the long term, using The Natural Step Framework for sustainability as a guide, and a democratic, highly participative development process as the method. Swedish Eco-municipalities

 2008 The Natural Step The Natural Step is an international non-profit research, education and advisory organization that uses a science-based, systems framework to help organizations, individuals and communities take meaningful steps toward sustainability. The Natural Step: What Is It?

The Natural Step Framework 1.A shared science- and systems-based definition for sustainability 2.A decision-making framework and process to help organizations and communities plan for sustainability 3.A compass to help us know if we’re moving in the right direction Source material from TNS Canada

Dr. Karl-Henrik Robèrt Find fundamental principles of indisputable relevance, and thereafter ask the advice of others on how to apply them.

Who Uses It? Swedish Eco- municipalities City of Madision, WI Source material from TNS Canada

Understanding the Sustainability Challenge The Funnel as a Metaphor

Resource Funnel Resource Availability and Ecosystem Ability to Provide Vital Services Raw materials, ecosystem services, declining integrity and capacity of natural systems Sustainability Margin for Action Societal Demand for Resources Growth in population, resource requirements as affluence increases, increased demands as technology spreads Source: Nattrass, Brian, and Altomare, Mary. The Natural Step for Business. New Society Publishers, 1999.

TNS Canada The Sustainability Challenge

A Systems Perspective The Earth as a system

 2008 The Natural Step Systems Thinking “Systems thinking is a discipline for seeing wholes, recognizing patterns and interrelationships, and learning how to structure those interrelationships in more effective, efficient ways.” Peter Senge

Cycles of Nature Slow geological cycles (volcano eruptions and weathering) Slow geological cycles (sedimentation and mineralization) Closed system with respect to matter 1) Nothing disappears 2) Everything disperses Open system with respect to energy « Photosynthesis pays the bills » Sustainability is about the ability of our own human society to continue indefinitely within these natural cycles

How We Influence Cycles Relatively large flows of materials from the Earth’s crust Introduce persistent compounds foreign to nature Physically inhibit nature’s ability to run cycles Barriers to people meeting their basic needs worldwide

Four Sustainability Principles...concentrations of substances extracted from the Earth’s crust,...concentrations of substances produced by society,...degradation by physical means,...people are not subject to conditions that systematically undermine their capacity to meet their needs. In a sustainable society, nature is not subject to systematically increasing... and, in that society...

Fundamental Human Needs SubsistenceProtectionParticipation IdlenessAffection Understanding CreativityIdentityFreedom

Ways We Are Un-sustainable we dig stuff (like heavy metals and fossil fuels) out of the Earth’s crust and allow it to build up faster than nature can cope with it we create man-made compounds and chemicals (like pesticides and fire retardants in carpets, etc.) and allow them to build up faster than nature can cope with them we continuously damage natural systems and the free services they provide (including climate regulation and water filtration) by physical means (for example, overharvesting and paving wetlands) And... we live in and create societies in which many people cannot meet their basic needs (for example, to find affordable housing)

“Knowing where we want to go will help us get there”

Backcasting from Principles and the ABCD Methodology

Backcasting...looking ’back’ to the present and designing strategic, step-wise actions... current reality time

Backcasting from Sustainability Principles...looking ’back’ to the present and designing strategic, step-wise solutions... current reality time

Generic Planning Framework “D” Step  Right direction?  Flexible Platform?  Return on investment? time

ABCD Awareness Baseline Creative Solutions Decide on Priorities Present Future Does it move us in the right direction? Is it a flexible platform? Is it a good return on investment?

Review - Key Concepts The Funnel Backcasting Principles of Sustainability

 2008 The Natural Step 1. System 2. Success 3. Strategy 4. Action 5. Tools Many individual actions and investments (e.g. energy efficiency measures, pesticide bylaw, green building, fair trade town policy, education programs…) (e.g. Vital Signs, Genuine Progress Indicators, Life Cycle Analysis, LEED, Ecological Footprint, ISO 14001, Local Agenda 21, etc…) time

Authors: Sherrie Gruder, UW-Extension, Madison, Solid and Hazardous Waste Education Center Anna Haines, UW-Stevens Point, Center for Land Use Education Jerry Hembd, UW-Superior, Northern Center for Community and Economic Development Lisa MacKinnon, 1000 Friends of Wisconsin Jane Silberstein, UW-Extension, Ashland County Direct link:

Intent and Content of Toolkit Premise  Local government can lead by example Focus on the internal workings of local government –Energy –Buildings –Procurement –Transportation –Human resources –Investment Provide ideas and specific actions –Local government transformation –Model of sustainable practices

Four Challenges Posed by the Transition to Sustainability We need more accurate models, metaphors, and measures to describe the human enterprise relative to the biosphere. It will require a marked improvement and creativity in the arts of citizenship and governance. The public’s discretion will need to be informed through greatly improved education. It will require learning how to recognize and solve divergent problems, which is to say a higher level of spiritual awareness. Source: David Orr. The Last Refuge: Patriotism, Politics, and the Environment in an Age of Terror. Washington, DC: Island Press, 2004.

Some things have to be believed to be seen.

Comments? Questions?

Northern Center for Community and Economic Development Jerry Hembd, Director University of Wisconsin-Superior Belknap & Catlin, PO Box 2000 Superior, Wisconsin Phone: Fax: Website: