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The Economy of Care

The Economy of Care. An Economic Approach for a Sustainable future. Conference Counting on Women Gender – Care and Economics. Economy for Care: difference of paradigm + supositions Gender effects of multi-crisis Alternative of the Economy of Care

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The Economy of Care

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  1. The Economy of Care An Economic Approach for a Sustainable future

  2. Conference Counting on WomenGender – Care and Economics • Economy for Care: difference of paradigm + supositions • Gender effects of multi-crisis • Alternative of the Economy of Care • Transition towards a human sustainable future

  3. work-Definition Economy of Care The science of human behaviour focused on maintaining, continuation, and restauration of the planet to improve quality of life for each individually and for each others in a sustainable way.

  4. ‘Economic Man’: based on Utilitarianism; by pursuing self-interest you serve public interest; is basic explanation for efficient allocation of scarce goods through the market (subjective value theory) one-dimensional relations among individuals (based on exchange of goods and services); Atomic society ‘Caring human being’: philosophy on Ethics of Care by caring for oneself, for each others and for the environment the social formations/cultures will continue explains survival, especially in times of war and crisis (intrinsic value theory/existencial values) holistic; multi-dimensional human relations; mutual care and responsiveness Social connectedness Paradigm ‘Humans’

  5. Neo-liberal: Production-unit: Optimal use of production assumes perfect market competition, adverse human and environmental costs are not discounted Accountability in terms of money; profit is condition for economic sustainability (annual report) Production organised in enterprises which produce for the market and the profits Production of exchange values Production is globalised through the market Economy for Care: Production-unit: Optimal use of production factors in terms of achieving human sustainable development: human rights (incl. CEDAW) and environmentally sound Accountability and transparency in terms of achieving equality, fair ecological footprint, besides monetary gains (annual report) Everyone can produce: for the market, for oneself, for the family or the community Production of exchange + use values Production is part of global natural circulation system Presupposition‘Production’

  6. Neo-liberal Households are consumption units and do not contribute to the production Consumption is determined by the ‘law of the subjective value theory’ (marginal utility) Consumers should be encouraged to maintain economic growth (creation of needs in order to stimulate effective demand) Economy for Care Households produce, consume, and generate current and future people Consumption is determined by generational and gender relations’(power relations) Consumers should be encouraged to consume sustainably and contribute to a global social and ecological balance Presupposition‘Consumption’

  7. Neo-liberal: The value of labour is determined by supply and demand on the labour market Trade Unions and governmental regulations disturb the the balance of the labour market Unpaid work has no value Economy for Care The value of labor is determined by its contribution to human sustainable development Civil society regulates dialogue on human resources in the process of sustainable social development (participative democracy on micro, meso, and macro level) Unpaid work is just as valuable as paid work for the economy Presupposition ‘Labour’

  8. CirculationMarket economy vs. Economy for care

  9. Neo-liberal economy Distribution: market and government Regulation through monetary system, banksystem and government Value expressed in prices (money units) Scarcity: What has no price on the market, has no value and is abundant and free for anyone (such as air, trees, unpaid labor). Economy for Care Distribution: market, government, reciprocity, solidarity Regulation through linked local money systems, virtual global exchange systems , participative (gender) budgeting+ government Value linked to ecological footprint and PUW quote Scarcity is a relative concept: The perspective of human sustainable development (contributing to quality of life for present and future generations) defines what is scarce/abundant Circulation/distribution

  10. What sees the economy for care?

  11. Basic model of market economy

  12. De Zorgeconomie? What sees the neo-liberal economist? $$$ £££ €€€

  13. 2. Gendereffects of Multi-crisis • risks

  14. Neo-liberal model unable to solve multi-crisis • Poverty crisis: Trickle-down effect of economic growth is not sufficient for structural poverty reduction; it can even increase gender disparities • Care crisis: Market economy is unable to solve the care crisis; mayor part of care remains invisable in the neo-liberal economic model; privatisation of care leads to Taylorism in care sector (dehumanisation and loss of quality of life) • Climate Change crisis: Neo-liberal market model is intrinsically unsustainable; in relation to the ecological system it is a kind of plunder economy; it plunders the planet and its natural resources, leaving future generations with pollution, poisoned waters and dangerous waste • Peak-oil crisis is result of neo-liberal model; you cannot cure a crisis with the same system that has caused it

  15. Neo-liberal model unable to solve multi-crisis (2) • Financial crisis = crisis in the circulation sphere; banks undermine their own core-function (= facilitating market system) and violate the basic principle of the theory of interest (base for interest is difference in current and future value of the marginal utility of products & services) which links the monetary sphere with the production sphere. • Solutions: • inflation (purchasing power of money reduces) or • evaporation of money (banks going bankrupt) • To prevent the total collapse of the system, governments jump in with tax-money • Who will finally pay the bill of this crisis? • Unpaid sector is the ultimate buffer of the financial crisis (remains invisible in economic statistics)

  16. 3. Alternative: Macro-economic policy based on the economy of care • Balanced growth of social, natural and economic wealth. Indicators to be used are the PUW-quote and the ESU-indicator (Ecological footprint) in combination with the GDP • The consumption function in the economic model will be replaced by the function of the Environmental Space Used (ESU). Consumptive expenditures will be expressed in ESUs in stead of in money. • Include a PUW-quote in the model to enhance a balance between the paid and the unpaid economy.

  17. How to achieve transition towards an economy for care • Base the tax-systemon a sustainable model: link the redistribution of income to a balancedPUW-quote and a sustainableESU-indicator • Peoplewithanunder-averagePUW-quoteshouldreceivefiscalcompensation (e.g. care credits, pension rights) • Taxallowancesforinvestmentswhichreduce the ESU-indicator and/orpromote a balancedPUW-quote • Guidelinesforaccountability of enterprisesonsocial and ecologicalresults (annualreporting) • Include the ecological and socialdebt to othercountries in the balance of payment (degree of overpassing the fair ecologicalfootprint, and tradethatworsens the socialsituationelsewhere (e.g. childlabour)

  18. Macro-economicpolicybasedon the Economy of Care: 1. Promotebalancebetweeneconomic and ecological system Goal: Sustainable ESU per capita (target Fair PlanetShare of 1,7 ha. per capita) Policyinstruments: • EcoTax in stead of VAT • Link incometax to ESU: The bigger the ecologicalfootprint, the higher the tax • Fiscalallowancesforinvestmentsthatpromoteecologicalbalance and the recovery of naturalwealthfor all • Support to TechnologicalInnovationwhichresults in ecologicalsustainability and in balanced (m/w) access to and control over sustainablesources and means.

  19. Macro-economicpolicybasedon the economy of Care 2. promotebalancebetween the paid and the unpaid sector Goal: Promotesocialsustainabilityby a balanceddevelopment of the paid and unpaideconomy (including the redistribution of paid and unpaidwork) Policyinstruments: • PUW-quote • Fiscalallowancesforpeoplewith a low PUW-quote (undersocial average) • Pension system linked to paid and unpaidlabour • Comprehensive care system whichensures the right for all to receive and to provide care.

  20. Paid-Unpaid-WorkQuote PUW-quote = VPW x 100% VPW + VUP VPW = Volume Paid Work (in time units) VUW = Volume Unpaid Work (in time units) BUW-quote: Shows percentage of the total labour volume which is paid (recognised with financial remuneration).

  21. Trend PUW-quotein the Netherlands(1975-2000)

  22. Macro-economicpolicybasedon the Economy of Care3. equalrights and opportunitiesfor all Goal: Mainstreamingequalrighs and opportunities in all components of public policy Instruments: • Equalrepresentation in decisionmakingentities (reflextion of society) • Participativegender-budgeting • Democratisation of fiscal system • Gender-responsivesocialbalance • NAP foreffectiveimplementation of UN-commitments (WCAR-Durban-2000, CEDAW, Rio-1992, Beijing PfA-1995, Cairo 1994, CRC, MDGs, UNSCR 1325-1820-1888-1889, etc.)

  23. Finally statements for discussion:New crisis, new chances The crisis offers new opportunities for: • Exchange systems based on reciprocity, solidarity, sustainability and emerging of new social webs (micro-meso-macro) • Introduction of the PUW-quote as an instrument for measuring the ‘engendered’ effects of crisis in the paid and unpaid economy • Decentralisation of sustainable technological development: production of energy, consumption goods, information, media at local level (at home, in the neighbourood, in the region) • Equal access to and control over sustainable resources; gender balance in sustainable management of resources at local level and decreasing dependence from money and oligopolistic companies • Bottom-up implementation of the Economjy of Care by local economy, local companies, and local authorities (annual social sustainable balans, comprehensive care system, local municipality tax based on ESU, etc.) • Transition towns, with participative bottom up initiatives for increased local sustainable self-sufficient energy,

  24. THANKS FOR YOUR ATTENTION Questions and answers?

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