A think tank bridging the gap between mainstream finance and the new economy movement

Mission: To stimulate interaction and action of leaders, scholars, and society by raising awareness of the need to harness the power of capital and markets to advance a just, resilient, and sustainable economic system.

A think tank?

Agenda 1.Setting the table: UNSUSTAINABLE 1.How we got here 1.Finance is the acupuncture point 2.The Capital Institute

1. compound growth is UNSUSTAINABLE

We have breached the finite boundaries of the ecosphere Planetary Boundaries Rockstrom et al: “A Safe Operating Space for Humanity” (Volans graphic)

OVERSHOOT The global economy now uses up 1.5 times the earth’s capacity to regenerate the natural capital upon which the system and life depends. - The Global Footprint Network

FACT If everyone were to live like Americans we would need 5 Earths

Symptoms of an unsustainable system…

Symptom: Population Crisis World 6,826,859,514 CaOwK2yTk/S1600-R/worldpop_2009_lowerfertility.gif

Weather-related disasters affecting 1 million up 4X over 4 decades Economic losses up 10X (The Millennium Ecosystem Assessment) Symptom: Climate Crisis Hurricane Katrina, 2005

Symptom: Water Crisis Lake Meade, primary water source for Las Vegas, projected dry in 10 years (Las Vegas Sun) (Las Vegas Sun) Per capita water availability dropped by 1/2 in my life time 800+ million currently live in locations without appreciable recharge of groundwater. (The Millennium Ecosystem Assessment)

The Silent Global Crisis: Soil loss: 24 B tons per year* (1992) C02 emissions: 28 B tons (2009) In past 40 years, 30% of farmland has become unproductive Symptom: Desertification

Symptom: Peak Oil We Are Here

Symptom: Increasing Wealth Inequality Wealth Disparity: 2% of population Controls > ½ the World’s Wealth 50% of population controls < 1% of World’s Wealth Income gaps between rich and poor > 2X in last 50 years Spain v Denmark Norway Finland Sweden Netherlands Switzerland Belgium Germany Austria France Canada Italy Australia Ireland Greece New Zealand UK Portugal Japan USA Better Low Income Inequality Index of health and social problems Worse High Wilkinson & Pickett, The Spirit Level (2009)

Symptom: Financial Crisis

2. How we got here

warding Success How we got here: economics is flawed General Equilibrium Theory and Efficient Market Hypothesis are now broadly rejected Spawned the creation of George Soros’s Institute for New Economic Thinking (INET)

warding Success How we got here: economics is flawed But the problem goes deeper… Economics is based on Newtonian Physics Economics is in conflict with the laws of thermodynamics

Sustainability Optimum Efficiency 100% 0% Resilience Source: Bernard Lietaer, 2008 Sustainability in Complex Systems

Economic Efficiency Economy Finance What’s wrong with this picture? Desired Outcome Planet

3. Finance is the acupuncture point

As the crisis of modern capitalism’s conflict with the biosphere and our demands for social justice accelerate, capitalists will increasingly be asked: what is the purpose of capital? what is the duty of capital?

Finance is the fuel source, what we feed GROWS

Driving Capital Upstream wPZzo/s1600/upstream.jpg

4. The Capital Institute: System Transformation The Power of the 1 Our People Our Focus Our Programs

The problems we face are the symptoms of a broken economic system… Capital Institute is changing the paradigm in which our economic system operates. consciousness system problems CHANGE

The power of the 1 Our Theory of Change: The power of 1 The leadership of the 1 %

The power of 1 Our Theory of Change: Social change comes bottoms up – civil rights Capital has catalyzed profound social change – divestment ended Apartheid Transforming our relationship with money is the social movement of the century

The leadership of the 1%1% Our Theory of Change: Opportunity Responsibility Duty “what did you do, once you knew”

Capital Institute People Board of Directors: Diana Propper de Callejon Dr. Robert A. Johnson Peter D. Kinder Simon Rich Dr. Joseph Stanislaw

Capital Institute People Brain Trust: Peter G. Brown Graciela Chichilnisky Robert Costanza Penelope Douglas Hazel Henderson Tim Jackson William Rees Allan Savory Juliet Schor Gus Speth Peter Victor Stewart Wallis

Capital Institute Focus Investment Markets Metrics Money Advocacy

Capital Institute Programs We have developed a range of programs, which function to explore the critical questions, effectively communicate key messages, and instigate reform…

The Capital Blog “The Future of Finance”

The Capital Forum A communications hub and virtual platform for selective news, debate, expert discussion and analysis.

The Capital Lab 3 rd Millennium Economy Committee on Transforming Finance (CTF) Global/Local Post Modern Portfolio Theory

Academic Outreach

The Capital Fellows Program Leading practitioners and scholars engaged in trans-disciplinary collaboration

The Capital Channel A thoughtfully curated virtual channel of cross- disciplinary videos and print resources

Imagine: Harnessing Capital A world in which finance serves a just, resilient and sustainable economic system…

Imagine: an economy that respects the physical boundaries of the biosphere

Imagine: resilient local economies thriving within an interdependent global system

Imagine: new markets, tools and metrics to manage the transformation

Imagine: finance as the fuel source for transformation

Reform Transform

yes, a think tank