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2023 | Buch

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Financing our Anthropocene

How Wall Street, Main Street and Central Banks Can Manage, Fund and Hedge Our Global Commons

verfasst von: Stefan Brunnhuber

Verlag: Springer International Publishing

Buchreihe : Sustainable Finance

Enthalten in: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Inhaltsverzeichnis

Über dieses Buch

Development needs to meet the UN SDG have primarily been financed through private sector financing, conventional public sector funding and philanthropic commitment. These sources are not sufficient in scale and speed to meet the pressing finance needs. The world community is too busy repairing, stabilizing, and refunding the system to maintain the stability of the existing system. The introduction of a parallel electronic currency specifically designed to finance global commons, and a human-centred economy would provide the necessary resources to achieve the UN SDGs while stabilizing the existing monetary system.

This book analyses how the development of cryptocurrencies based on blockchain distributed ledger technologies has prompted leading central banks around the world to study the potential application of this approach to directly inject purchasing power without dependence on the banking system. Furthermore, the book illustrates how this approach can be utilized to finance the huge multi-trillion dollar annual investment requirements for achieving the Sustainable Development Goals (SDG).

With a Foreword from the President of the Club of Rome.

“This book is where fiction turns into fact.” - World Bestselling Author of ‚The Minister of the Future‘ Stan Robinson

“…challenging, innovative and interdisciplinary… to address the world’s problems.” - Founder and Father of the Quantitative Easing (QE), Prof. Dr. Richard Werner, Oxford University, GB

“The real tragedy of the commons, as this book shows, is that we have allowed the most valuable social resources, our money and legal systems, to be employed for private gain instead of mobilizing them for social goals, not the least to ensure the survival of the human species on this planet.” - Best-selling author of ‚The code of capital’ Katharina Pistor, Edwin B. Parker Professor of Comparative Law and Director, Center on Global Legal Transformation Columbia Law School, USA

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract

In this introductory chapter, we attempt to identify some of the main characteristics of the new era we are all living in now. For the first time in human history, over seven billion people are synchronised and mentally prepared for change. But we are not really changing yet. One reason for this lack of change is that we have failed to identify the right intermediaries, the links that can incentivise and coordinate us all as we chart a course into a better future. And the monetary system is one such intermediary.

Stefan Brunnhuber

Chapter 2. Two Forms of the Unknown

Abstract

This chapter explores two fundamentally different forms of the unknown and the ways in which they affect our view of the world, our investment strategies and our approaches to hedging. We also take a closer look at the funding strategy of the EGD and SDGs, and find that both initiatives are ambitious but underperforming. One reason is that they do not factor in the two forms of the unknown, which require different forms of financial engineering. In short, risks are not uncertainties.

Stefan Brunnhuber

Chapter 3. The Economics of External Shocks

Abstract

In this chapter, we will introduce the economics of external shocks, which can involve several potential scenarios and two main cost components: the cost of a shock and the cost of the policies to mitigate and adapt to that shock. The second cost is typically far lower than the first. Intelligent measures and interventions can provide the cheapest and most resilient way to build back better.

Stefan Brunnhuber

Chapter 4. The Traditional Way to Do It

Abstract

This chapter outlines the traditional ways to finance our commons, in particular philanthropy, taxation schemes, borrowing and private investments. None of these approaches are ‘wrong’, but they are too low in volume and too slow. We will see that the private purse is not the public purse and that ‘end-of-pipe financing’ is an unnecessary and unhealthy straitjacket when it comes to building our common future.

Stefan Brunnhuber

Chapter 5. The Real Tragedy of the Commons

Abstract

In this chapter, we attempt to identify the real tragedy of the commons. We show that in a full and fast world, the nature of our commons is different. In order to awaken this sleeping giant, we should focus less on the well-known free-rider effects, and instead enable new financial tools that allow them to be financed properly. Financing the WHO will serve as a first example.

Stefan Brunnhuber

Chapter 6. Upgrading the System

Abstract

In this chapter, we will outline our main argument on how to upgrade the financial and monetary system. We are learning that in the Anthropocene era no institution can remain neutral. Everybody has skin in the game in some way or another. We introduce the idea of a strategic triangulation in order to explain the new role of the regulators. Digitalisation and parallelisation are key, though this is not obvious at first glance. In other words, we have to learn to ride an (electric) bike with two wheels again instead of using a wobbly unicycle.

Stefan Brunnhuber

Chapter 7. The Great Leverager

Abstract

In this chapter, we describe how the playing field of the market is changing significantly. If we do not meet unchecked risks and unmet opportunities, the political and economic costs will rise to an intolerable degree. An approach of financialisation and securitisation can help us to better hedge these future challenges. If we start implementing a parallel digital currency system as described in this book, we can identify multiple new financial territories, unexpected positive second-round effects and potential for greater welfare and well-being for all of us.

Stefan Brunnhuber

Chapter 8. Three Overarching Topics

Abstract

Before we start unpacking our argument and providing more concrete examples and best practices, in this chapter we apply our approach to three more overarching topics. Firstly, the relation between war and peace; secondly, overcoming the ‘resource curse’; thirdly, the challenges of imported inflation. In all three cases, the new monetary regime described in this book could make a substantial contribution towards a fairer and more sustainable common future.

Stefan Brunnhuber

Chapter 9. Best Practices and Case Studies

Abstract

In the previous chapters, we outlined the theoretical framework for a new monetary regime and the positive impacts it would have, which would enable a more sustainable future. We then attempted to apply that regime to three overarching topics: war and peace, the resource curse and the challenges of imported inflation. In this chapter, we provide concrete examples and best practices showing how this could work. We will see that the new financial framework we are proposing can provide almost unlimited options to tackle the challenges our common future will bring.

Stefan Brunnhuber

Chapter 10. Conclusion

Abstract

Looking into the rear-view mirror does not tell us where we are heading. The Anthropocene era is unlike anything we are familiar with from the past, and so too are the measures that will be needed to finance it. And we have to think outside of the box and dare to do things we have not done before. If we want to change the world for the better, we need above all to look at the monetary and financial system underpinning our real economic activities. And this transformation we are going through will not come for free; multiple asymmetric shocks will add several additional layers of costs to our day-to-day hazards and challenges. Traditional ways of financing, including taxation schemes, borrowing money from the capital market, private investments and philanthropy, are a good thing but too low in volume, too slow and too imprecisely targeted to finance our future. Traditionally, finance drives sustainability. But it should be the other way round. We need to devise sophisticated forms of financial engineering to secure our common future.

Stefan Brunnhuber

Backmatter

Titel: Financing our Anthropocene
verfasst von: Stefan Brunnhuber
Verlag: Springer International Publishing
Electronic ISBN: 978-3-031-23285-5
Print ISBN: 978-3-031-23284-8
DOI: https://doi.org/10.1007/978-3-031-23285-5