questions to be able to answer after today’s lecture what makes a tribal ... many colonies formed...
TRANSCRIPT
5/26/2015
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Western European and Native American Business
Models: How do they differ and how can we practice
a more sustainable business model, e.g., how do we
become more American
Indian-like in our business
practices??
http://www.123rf .com/stock-photo/businessman.html River of Life 2013 HEP
Q1: What makes a tribal and western
environmental economic model
different from one another?? What
practices do you need for each
business model?
Q2: How does each model respond to
longer term climatic and social
volatility, i.e., boom-and-bust cycles
Q3: What elements of each model do
you think allow you to make
sustainable & environmentally
friendly choices??
Questions to be able to answer
after today’s lecture:
5/26/2015
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Lets start by looking at
the western world
business process
NOTE: focusing on Environmental
Economic models
DISCLAIMER CLAUSE
Kristiina Caveat: I cannot cover both approaches to
business in just one class but just highlight
some of the differences that you can think about
later on.
OR – I am not responsible for any wrong ideas you
develop from listening to me!!
http://waterscape.co.nz/Chapters/Economics.html
Environmental Economics
Diagram: Note fluxes
(arrows) and the state
variables (squares, circle)
What does SOCIETY
contribute to the
ECONOMY?
What does ENVIRONMENT
contribute to the
ECONOMY?
What does ECONOMY
contribute to the
ENVIRONMENT and
SOCIETY?
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Figure 1: The ecological economics model, placement of economy in center reflects that it is contained by the environment, not suggestion that human activity is "center of the world." http://www.pelicanweb.org/solisustv07n05page8.html
Relationship between natural & human systems :
environment not merely a factor of
production (as portrayed in conventional
"circular flow" economic model)
but contains the economy
environment
source of all materials humans
use & "sink" into which all wastes go
wastes stay in the system & do not
go "away."
Short Comment on getting the
facts straight:
Before we look at the elements
of a tribal business model, it
helps to look at a little American history
to see how the western European
business model played out during the
colonialism period in the Americas
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FACTS:
Many colonies formed by European colonialists
principally as business ventures
England's success at colonizing in large part due to use
of charter companies: groups of stockholders
(usually merchants and wealthy landowners) who
sought personal economic gain
Private sector business men financed companies, King
provided each project with a charter or grant conferring
economic rights as well as political and judicial authority
Bus iness Investors - Invested
MONEY bui ld ships, supplies on ship!!
http://upload.wikimedia.org/wikipedia/co mmons/9/95/Rembrandt_-_De_St aal meest ers-_het _coll eg e_v an_st aa lmeest ers_(wa ardijns)_van _het _Amsterd ams e_la kenb ereid ersgi lde_-_Googl e_Art _Project. jpg; http://www.sunrealtync.com/files/images/m isc _painting%20of%20pirate%20ship.img_assist _custom-248x344.jp; http://upload.wikimedia.org/wikipedia/com mons/7/7b/Eliz abeth_I_(Arm ada _Portrait) .jpg;
http://media.economist.com/sites/default/f il es/cf_ ima g es/20060506/1806BK1.jpg; http://1.bp.blogspot.com/-uS_doJZ6lnU/VKxk2lT3aSI/AAAAAAAAC_k/JompPwR7j4U/s1600/new -england-shipbuilding.jpg.pagespeed.c e. evs34Ss1uk. jpg
Royalty gave Charter – no MONEY, but economic rights!
Common people harvesters of resources – No MONEY!
America here we come!
Investors build ships to take common people to New World!
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9
New York Times Book Review 2_24_13
The Isles at the Center of the World, ‘Unfinished Empire,’ by John Darwin, Book Review By ALEX VON TUNZELMANN
Very British image - scene f rom the 1939 f ilm "Gunga Din.“ http://i.ytimg.com/vi/7 KvN-ITOZDc/maxresdefault .jpg
“Abroad, Britons attempted to cheer themselves up by smoking hookahs, drinking half-pints of
brandy with dinner, frolicking with concubines — and, where
possible, making huge amounts of money.
There was nothing they
would not buy and sell: gold,
sugar, tobacco, booze, drugs, guns, people, cotton, coal, timber, coffee, rice, indigo, human hair
and something called isinglass, “a gelatine drawn from the bladders
of warm-water fish.”
Remember, British military in charge of conquering other countries
and resources. Everything could be sold! Money RULED!
http://memory.loc.gov/service/pnp/cph/3g00000/3g04000/3g04200/3g04292v.jpg
Salem, Massachusetts and shipping in the 1770s
TITLE: Vuë de Salem. Salem - eine stadt in Engelländischen America, in der Grafschafft Essex, ... Salem - uneville de l'Amerique Angloise dans le Comte d'Essex, ... / gravé par Balth. Frederic Leizelt; http://en.wikipedia.org/wiki/Fil e: Sa lem_shippin g_colonial _color. jpg
The colonies generally did not show quick profits. So the English
investors often turned over their colonial charters to the settlers.
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Euro-American economic development flourished - based on
collecting resources abundant in the landscapes that used to
belong to the Native Americans
Ownership of natural resources fundamentally changed: Euro-
Americans have different view of property rights compared to
Native Americans who view property as something that they
use but don’t own. Over-exploitation was the norm!
Native Americans were squeezed to a small fraction of their
former lands that they had to survive from, i.e., they were
decoupled from their former natural resource economic
opportunities
Impacts of Euro-American settlers conquering
America:
FACTS:
In 230 years US grew to huge, integrated, industrialized
economy that makes up nearly a quarter of the world
economy.
http://en.wikipedia.org/wiki/Economic _history_of _the_United _St ates
KEY: Abundant natural resources because Native
Americans had not over-exploited their resources
like what occurred back in Europe
This approach seemed to work!
WHY did it work??
Major factors in this growth included a large unified market, a supportive
political-legal system, vast areas of highly productive farmlands, vast
natural resources (especially timber, coal,
iron, and oil), and an entrepreneurial spirit and commitment to
investing in material and human capital.
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Westward Migration: Covered Wagon of the Great Western Migration. 1886 in Loup Valley, Nebraska. Family poses with the wagon inwhich they live and travel daily during their pursuit of a homestead.
Date 1886 Source NARA - ARC Identifier 518267http://en.wikipedia.org/wiki/Fil e:Hom est ead er_NE_1866.png
Native Americans lost their lands and resources as the colonialists
arrived in America and as the settlers moved out west.
For the Yakama
Reservation lands
represent ~11% of
the ceded land area (www.yakamanation-
nsn.gov/docs/CededMap0001.pdf). -blue line demarcates the current Yakama Reservation boundaries - red line demarcates the ceded area in Washington State.
Ceded landReservation
boundaries
today
The ceded land area compared to the current Yakama Nation reservation is shown on the map
In the West, many tribes relocated to reservations on greatly reduced land areas
River of Life 2013 HEP
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Euro-American settlers
wanted lands that the
Colville tribes lived on
because of their
agricultural values.
These were traditional
food-gathering sites and
prime agricultural lands
for the incoming settlers
These were the first
lands to be taken.
http://www.goia.wa.gov/tribal_gov/documents/Tribal_Cedres.pdf
http://www.icbemp.gov/spatial/pubdoc/ueis/img/col_int.gif
Colville
Reservation -
created in 1872 [retained 2.4% of their customary lands]
http://www.icbemp.gov/spatial/pubdoc/ueis/img/uma_ced.gif
Confederated
Tribes of the
Umatilla Indian
Reservation,
Oregon
Only retain 2.4%
of the ceded
land in their
reservation
NOTE: These
takings of land
was repeated in
the Americas
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AIM NYE Pow WowCourtesy Tawamiciya Photography/Francesca Wiyaka Luta
http://indiancountrytodaymedianetwork.com/galler y/photo/art -pow-wow-147837
FACT 1: Lands Native American were left to
live on were considered marginal
and unwanted by settlers
[reservation lands were historically
undesirable and deemed worthless]
– all the good lands were taken
River of Life 2013 HEP
DESPITE ALL OF THIS – the tribal
business model has persisted
Before the
arrival of
Europeans to
America, Native
Americans had
well developed
trading routes
and
sophisticated
economies
http://www.mapmanusa.com/cci-print-3.html
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http://news.sciencemag.org/sciencenow/assets/2013/01/22/sn -chocolate.jpg
“They were humble farmers who grew corn, dwelt in subterranean pit houses. But 1200 years ago in a Utah village known as Site 13, near CanyonlandsNational Park, they traded for chocolate. Researchers report ..half a dozen bowls
excavated from the area contain traces of chocolate, the earliest known in North America. …by the end of the 8th century C.E., cacao beans, which
grow only in the tropics, were being imported to Utah from
orchards thousands of kilometers away.”
Earliest Evidence of Chocolate in North
America by Traci Watson, 22 January 2013
AIM NYE Pow WowCourtesy Tawamiciya Photography/Francesca Wiyaka Luta
http://indiancountrytodaymedianetwork.com/galler y/photo/art -pow-wow-147837
FACT 2: Unbeknownst to Euro-American settlers, reservation
lands are rich in economic resources needed by a
growing economy. Today valuable resources exist on
reservations such as coal, gas, oil, timber, water and
valuable minerals
Examples of resources found on reservation lands:
30% of the strippable low-sulfur coals west of the Mississippi River 50-60% of the uranium resources in the US
5% of the US oil and gas reserves significant amount of timber in forests
River of Life 2013 HEP
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QUESS what is missing from the
Environmental Economic model
of the Western European world
that is an integral part of Native
American business plans??
FACTS why Native American business models have to be
different from the western world models (Marchand et al. 2013): :
All Native American business plans designed to consider life
and livelihood of 7th generations beyond individuals making
decisions
Since business activities occur within boundaries of tribal
lands, they will live with the decisions they make [both good
and bad] on a daily basis – ‘they have a skin in the game’
Conserving way of life and the environment for the future is
more important than having financial gain now.
River of Life 2013 HEP
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Colleen Cawston (former Chair of the Confederated
Tribes of the Colville) mentioned as important to tribes:
Maintaining and restoring tribal languages
WHY? languages are the manner in which tribal members link to
nature so any decision cannot impact the survival and
restoration of tribal languages.
Tribes to make their own business decisions, i.e., maintain
their sovereign rights.
WHY? Maintain sovereign rights logical considering
how tribes mistreated and lost their rights, lands and
resources
No land is lost as part of developing a business venture
WHY is this important?
Some resources not negotiable and will not be traded during a
business venture
According to Harvard Business School, successful tribal businesses
have several attributes [assessed over 100 tribal businesses
enterprises to identify key elements of successful tribal economic
enterprises]:
1 - “…tribal governments have to exercise …
sovereignty…control and make their own decisions about
what businesses to create .. operate on reservations, how
tribal natural resources…will be developed,…how
businesses will be structured ..their missions …
…..etc
2 - …cultural issues are very important…Few tribal cultures ..
reservation populations… support businesses not match
their core beliefs and institutions...”
Many examples of tribes not moving forward on a lucrative
business venture because posed risk to cultural resources.
Culture is not a negotiable item for any tribal business deal.
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Native American – cultural traditions passed
down through generations using stories and
ceremonies
River of Life 2013 HEP
NOTE: Native American repository of knowledge
Native American World View:
Historically, elders were the repository of
knowledge and experience.
OR - elders were the Google Search Engines of pre-
Columbian Knowledge . a la JD Tovey
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Tribes collaborating with state agencies, restoring and paying for
habitat restoration of salmon habitat on ceded lands
FACTS:
• Many timber tribes are very dependent
upon selling trees for economic return
• They are impacted by the global markets
since it determines if there are buyers of
timber – last couple of years have been
really bad for these tribes
Why are these facts
important for tribes??
But tribes are not i solated from global markets since they have resources des ired by these markets. Sometimes they have preferential market access because of being a government [china has interacted with several tribes in the PNW to make trade deals]
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Fast forward to today and
Native American tribes
and their impact on local
economies,
i.e., what do they invest
in??
It is not just CASINOS!!
30
CASE: Coquille Indian Tribe
Oldest and largest
family-owned enterprise
on
Oregon’s South Coast
NOTE: Native American tribes are having a major
impact in rural areas with their business activities
and in some communities are the largest employer
http://www.coquilletribe.org/; accessed March 2013
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31
Economic Impact – have to passcultural criteria
• Building community
• Building tourism
• Local economic impact
Wholesale &
Retail Trade
14Services
50
Other
15Resources/
Construction
2
Every 100 Tribal
jobs generates an
additional 81 jobs
in Coos County,
Oregon
http://www.coquilletribe.org/; accessed March 2013
32
Heritage Place
• A 96 room Long Term Care Facility
• Committed to having the community engage with the residents
• Price competitive
http://www.coquilletribe.org/; accessed March 2013
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33
ORCA Communications
• Broadband “B to B” services
– Operates a broadband fiber network
• Continued growth in area
http://www.coquilletribe.org/; accessed March 2013
34
The Mill Casino-Hotel & RV Park
• Premier gaming, entertainment facility
• New Tower has 92 rooms and conference facility
• RV Park use is growing
http://www.coquilletribe.org/; accessed March 2013
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You learn who is a good business person by
seeing how you deal with boom-bust cycles!!
http://www.stevenyamshon.com/wp-content/uploads/2014/07/BOOM-TO-BUST.png; http://blog.susquehanna.net/wp -content/uploads/2011/07/Economist -Post-roller-coaster-e1311171974947.jpg
Boom and Bust Cycles
– which business model
works better under these
cycles? Which model
aggravates boom and bust
cycles??
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Box 7: Atlantic Fisheries (from Trefts in Sustainability
Unpacked 2010)
…European explorers ...Atlantic coast of America, ..
transformation of river systems by building dams for power
triggered ..demise ..Atlantic fisheries. Impassable dams
…built ..early 1600s to power mills built along rivers.
After 1790, ..region began to industrialize …
Industrialization meant building dams …to supply power to
hundreds of cotton and weaving factories and to factories
producing firearms, furniture, clocks, machine tools, shoes,
and paper”.
In 1497, "the sea there is full of fish that can be taken not only
with nets but with fishing-baskets,“
~1600 cod shoals "so thick by the shore that we hardly have been
able to row a boat through them."
BOOM -
(from Trefts in Sustainability Unpacked 2010); http://en.wikipedia.org/wiki/File:Gadus_morhua-Cod-2-Atlanterhavsparken-Norway.JPG
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http://jb-hdnp.org/Sarver/Maps/ah04_necolonies1750m.jpg
BUST - Fishery stocks
crashed or became depleted
in the 1800s in the rivers
located on the Atlantic coast
of the Americas
REASON: England no longer wanted Atlantic cod from New England and put a tariff on fish
(from Trefts in Sustainability Unpacked 2010)
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New England fishermen continued to over fish and started
dumping into agricultural fields which eventually created
huge problems with too much of an oily fish being added
to the fields
(from Trefts in Sustainability Unpacked 2010)
Another BUST in early 1990s(from Trefts in Sustainability Unpacked 2010); http://en.wikipedia.org/wiki/Collapse_of_the_Atlantic_northwest_cod_fishery#/media/File:Surexploitation_morue_surp%C3%AAcheEn.jpg
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Sugar Cane – Boom and Bust cycles controlled by climates
NATURE has boom-bust cycles at unpredictable times but
western world SOCIETIES try to Mute these in their business
plans
http://www.greenamerica.org/images/pubs/greenamerican/93/Dean550w.jpg
Apri l 9, 2013 6:15 pmBrazil expects
bumper sugar crop
By Emiko Terazono in London
Great for candy manufacturers, Big Sugar Is Set for a Sweet BailoutBy Alexandra Wexler | The Wall Street Journal –Tue, Mar 12, 2013 7:48 PM EDT
Push for Ethanol Sours in Brazil Amid Low
Sugar Prices, May 14, 2012, by Avi la Capital Markets, Inc.
Dual-fuel gas
s tation at Sao Paulo, Brazil. Alcohol (ethanol) and gasolinehttp://en.wikipedia.org/wiki/Fil e:S ao_Paulo_ethanol_pump_04_2008_74_zoo
m.jpg
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TAKE HOME MESSAGE: Nature is cyclically volatile driven by
climate changes (especially drought)
RESULT: Nature and natural resources have boom and bust cycles that humans tend to ignore even though this is common
A severe drought in
the southern Great
Plains is fueling a
massive cattle drive
north that is pushing
beef prices higher
and threatening to
alter the country's
production of red
meat.
Where's the Beef? Less of It in Texas By MARK PETERS and MARSHALL ECKBLADFEBRUARY 11, 201; http://online.wsj.com/article/SB10001424052970204662204577201121978832112.html?mod=googlenews
_wsj
Take Home Message:
QUESTION? How do Western World Environmental
Economic models responds to social boom-and-bust
cycles?
ANSWER: By shifting who is a producer and who is a
consumer
NOTE: Substitution works well here
REMEMBER?
Tribes business activities by making decisions for the 7th generation so less
impacted by short term GDP changes and able to buffer them from cycles of environmental and social boom-
and bust cycles
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Global Forest Sector Market Trends and a Few, Words on the Economics of Forest Carbon Dynamics
Professor John Perez-Garcia
Western World Economic
model playing out:
Lets look at what drives
and determines who are
the consumers and
producers of timber!!
FACTS:
• Wood is a global product; continues
to be an important product even
today
• Local producers can’t control the
consumers & drivers for who buys
your product [so what does this mean
to have a viable business plan??]
CREDITS: next series of
slides are from
Professor John Perez-
Garcia
Drivers of Changing Trade Patterns
according to Professor Perez-Garcia
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The Asian Wood Basket: Pre 1990
Major softwood log flows indicated with black arrows
Who are the consumers
of timber?Who are the producers or
growers of timber?
Hardwood Lumber Consumption
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
cu
bic
mete
rs
ChinaJapan
Asia’s Changing Guard
Source: FAOSTAT
What happened to
Japan as a significant
consumers of timber?
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NOTE: When environmentalists in the PNW
US tried to protect old growth forests,
consumers of timber shifted to Scandinavia,
Chile, New Zealand
Sustainability is not frequently achieved because of global substitution for
limiting resources & consumers/buyers have no skin in the game
= major softwood log= New lumber= Diminished log
Flows of:
Asian Crisis: Post 98
Major softwood log flows = black arrowsLumber flows indicated = red arrowsDiminished log flows = grey arrows
consumers?
producers?
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U.S. Housing Slump: 2008
Major softwood log flows indicated with black arrows
Lumber flows indicated with red arrowsDiminished log flows indicated with grey arrows
?
?
?
?
?
?
consumers?
producers?
What does global supply & demand tell you about wood markets and
who will be a consumer and producer of forest products??
1.2
1.3
1.4
1.5
1.6
1.7
1.8
10 15 20 25 30 35 40 45
Cu
bic
met
ers
in b
illio
ns
GDP in Trillions
1970
1975
1982
1990
2001
GDP drives the wood product markets – when lots of money, lots of wood products bought - supply/demand economics driving consumption
QUESTION:
What causes a
decrease in
consumption of
wood
products??
ANSWER:
Recessions, the
Collapse of the
Former Soviet
Union, and
Environmental
Constraints
Why went down??
Why going down??
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To move beyond social/environmental boom-and-
bust cycles:
We need to become more coyote like – have an angel and a
devil sitting on each shoulder advising you
It forces you to recognize and make trade-offs
http://www.123rf.com/stock-photo/angel_and_devil.html
A digital illustration of what the temple to Hades might have looked like. Digital illustration courtesy Francesco D'Andria; http://news.nationalgeographic.com/news/2013/04/130414 -hell-underworld-archaeology-mount-olympus--greece/?source=email_inside&utm_source=NatGeocom&utm_medium=Em ai l&utm_content=inside _20130425&utm_campaign=Content
Archaeologists Find a Classic Entrance to Hell. The gate to hell is paved with
marble, not just good intentions (Nat Geogr 2013)…Greco-Roman site of..Hierapolis (modern-day Pamukkale) in Turkey ..ci ty's gate to the underworld.
Ancient Greek geographer Strabo …“..opening of sufficient size to admit a man, …a descent to a great depth ... filled with a cloudy and dark vapor, so dense that the bottom can scarcely be discerned ... Animals which enter ... die instantly. Even bulls, when brought within it, fall down and are taken out dead. We have ourselves thrown in sparrows, which immediately fell down lifeless."
Guess what they are
going into??
Would you believe a
VOLCANO??
NOTE: “Concept of hell …wasn't just a place bad people went when they died. Instead, it was a land where everybody, good and bad alike, ended up”
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http://www.cartoonstock.com/directory/b/business_plan.asp
It’s not JUST GREED but inability
to deal with boom-bust cycles
where you can’t just substitute
resources and consumers
According to statistics published by the Small Business
Administration (SBA):
51 percent of ten new
employer
establishments
survive at least
five years
BUT that means
Half have disappeared!
Recognize many small businesses - using western
world model - fail!
Image source: BigStockPhoto.com
https://www.sba.gov/sites/default/files/sbfaq.pdf
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Tip #4
Know Your Competition
Tip #5
Create and Follow a Business Plan
Tip #6
Keep Educated - Get out into the
world!
Tip #7
Ask Your Customers
Tip #8
Find Good Advisors!http://www.toonsandtips.com/GrowBiz_4_9.html
http://www.business-around-the-globe.com/
Tips from
traditional,
non-tribal,
business
professionals
to not fail
DOING ALL
THESE IS NOT
WORKING OR
we would not be
having this
conversation!!
This is not going to be easy!
Taleb addresses the several key rules
businesses need to follow if they are
going to be successful under volatile
social and environmental conditions.
Read WSJ article posted on class
website for more detail
Reading: WSJ, November 16, 2012,
//online.wsj.com/article/SB10001424127887324735104578120953311383448.html; Learning to Love Volatility; In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder, writes Nassim Nicholas Taleb.
Mr. Taleb, a former derivatives trader, is distinguished
professor of risk engineering at New York University's
Polytechnic Institute., author of "Antifragile: Things That
Gain From Disorder" (Random House)
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Rule 1: Think of the economy as being
more like a cat than a washing machine..
more like a cat (organic & antifragile)
than .. washing machine (inorganic &
fragile).
Taleb’s Rules for successful
businesses under volatile
conditions (Taleb 2012)
A cat survives being
washed in a washing
machine – it may be
scared but survives
https://s-media-cache-ak0.pinimg.com/736x/ed/ae/c5/edaec58ad00a2ae0b77e680b71edabe8.jpg; http://www.partselect.com/JustForFun/Images/Top-Loading-Washer.gif; http://www.lulzshare.com/wp-content/uploads/2014/06/terrified_wet_cat_big_eyes-e1402086942616-520x245.jpg
Washing machine = Are
fragile and break with use
http://animals.nationalgeographic.com/ani mals/big-cats/li tt le-k itties /entries/200702 /view; http://en.wikipedia.org/wiki/Fil e:C at_fa ll_150x300_6fps.gif /
Cat Resiliency = ‘boom and bust’ cycles
[why else does a cat have 9 lives, and
always land on its feet]
Natural Forest Resilience to
Climate Change = Cat Resilience
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Rule 2: Favor businesses that benefit from their own
mistakes, not those whose mistakes percolate into the
system
Taleb’s Rules
Some businesses and political systems respond to
stress better than others. The airline industry is set up
in such a way as to make travel safer after every plane
crash. A tragedy leads to the thorough examination
and elimination of the cause of the problem.
His comment: Without the high failure rate in the
restaurant business, you would be eating Soviet-
style cafeteria food for your next meal out.
Reading: WSJ, November 16, 2012,
//online.wsj.com/article/SB10001424127887324735104578120953311383448.html; Learning to Love Volatility; In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder, writes Nassim Nicholas Taleb.
Rule 3: Small is beautiful,
but it also efficient
Experts in business and government
are always talking about economies
of scale. They say that increasing the
size of projects and institutions brings
costs savings.
His COMMENT: consider the
difference between an elephant and
a mouse: The former breaks a leg at
the slightest fall, while the latter is
unharmed by a drop several multiples
of its height. This explains why we
have so many more mice than
elephants.
Reading: WSJ, November 16, 2012,
//online.wsj.com/article/SB10001424127887324735104578120953311383448.html; Learning to Love Volatility; In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder, writes Nassim Nicholas Taleb.
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Rule 4: Trial and error beats academic
knowledge
Thomas Edison
was a prolific
American
inventor.
Tinkering by trial
and error has
played a large
role in Western
innovation.
Reading: WSJ, November 16, 2012,
//online.wsj.com/article/SB10001424127887324735104578120953311383448.html; Learning to Love Volatility; In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder, writes Nassim Nicholas Taleb.
Rule 5: Decision makers must have skin in the
game
His comment: No time in history of humankind have more positions of power been assigned to people who don't take personal risks.
His Comment: The
Romans forced
engineers
to sleep under a
bridge once it was
completed.
Reading: WSJ, November 16, 2012, //online.wsj.com/article/SB10001424127887324735104578120953311383448.html; Learning to Love
Volatility; In a world that constantly throws big, unexpected events our way, we must learn to benefit from disorder, writes NassimNicholas Taleb.
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What do his rules say about the
western world environmental
business model and what he thinks
are its weaknesses??
Its all about
making trade-
offs
Costs /
Benefits have
to include
externalities
and real costs
in a boom-
bust cycles
Sustainability Unpacked Vogt et al. 2010
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FINAL CONCLUDING COMMENTS:
Manage natural resources recognizing that volatility in
resource supplies is the norm and economic decisions
need to be made in a ‘boom and bust’ cycle world
Traditional knowledge does not provide specific
solutions for a specific problem but an approach for
humans to follow that specifically includes nature and humanizes
the decision process
We need many economic models – not a global one! Do
not force people to become a melting pot where individually is lost
in a generic group identity. Let people live and behave in a
salad bowl where everyone’s native customs, values and
beliefs are included and accepted. Take advantage of the
strengths and abilities that diversity yields and do not replicate
people to behave in the same manner.
People who are specialists will have a harder time surviving
under the boom-and bust cycles