essays
Reflections on Money
by Kianga Daverington
September 1, 2020
This essay, written by Kianga Daverington of Daverington PLLC , was originally published in January 2020. The piece as been condensed for clarity.
Money is not a physical object like a coin, a bar of gold or a dollar bill. Money is at its core, a technology. It is a human invention designed to solve a specific set of human problems. Consider money, perhaps, in a new way. Think of money as a system for capturing time.
Time is the one thing we each have that is absolutely finite. We are born, we die, and the dash in between is all the time we have.
Think of production. We can usually produce more of some good by adding people to a task (also known as “WORK”). But we are still constrained by time. Whatever we produce is still limited by the amount of humans that can be organized to go into that production. Each of us possesses a limited amount of time available to us individually, so we need to convince or coerce others to add their time to ours if we want to achieve more than we can alone.
Out of this imperative, nations are born.
The most important quality of any particular form of money is how well it preserves the value of time over time. Can you buy the same amount of stuff or more in the future than you can buy today? If yes, congratulations - your money is accumulating time for you and future generations while you relax on the beach. If it takes more and more of a unit of money to buy the same amount of time in the future, well then I’m sorry, but that unit of money is getting weaker and weaker. It’s losing value or said another way – it’s losing purchasing power. The longer you hold it, the less it buys.
In a way, by purchasing goods and services, you are purchasing time. Every product and every service requires time to make and time to deliver - your time and/or someone else’s. The price therefore reflects the collective value of all the time put in. Money is a way we exchange time and move it around from where it is valued less to where it is valued more.
This is where prosperity comes from. It comes out of how well a society, collectively and each person, spends its time. How much time is spent creating and making? How much time is spent consuming? If we make more than we consume, we have something left over called wealth. If we consume more than we make, we are left with debt. You can’t consume what you don’t have, unless someone extends credit. Where does this “credit” come from? Basically –it’s made up.
Too much credit or debt eventually collapses and everyone is mixed up in the collapse.
If we understand that a unit of money represents a unit of time, and we understand time is limited, then a unit in a system of money with unlimited supply cannot have any value. This is the problem we are facing today with the world’s money supply. The supply of money in the world is increasing exponentially as central banks create money by giving loans to national governments, which is where our money comes from.
Our entire world financial system is a powder keg of debt.
National currencies today are known as fiat money, a currency without intrinsic value that has been given its power to be used as money by a government that says it is money by regulation. Wikipedia says, “Fiat money does not have use value, and has value only because a government maintains its value, or because parties engaging in exchange agree on its value.” Well said, Wiki.
A government’s job of maintaining the value of its national money boils down to a confidence game. On what basis do the people who use that government’s money believe it has value?
What happens to the money and those who hold it when the foundation of that belief begins to crumble?
essays
Inside the Plastic Problem at the United Nations
by Alexis McGivern
January 15, 2019
Alexis has been championing low-plastic living since 2013. She previously worked on plastic pollution policy solutions for the International Union for Conservation of Nature and is currently conducting research with the Plastic Pollution Emissions Working Group.
Few environmental issues have captured the cultural zeitgeist like plastic pollution. Its effects are visible, its victims widespread, and its solutions are (relatively) clear and uncomplicated: we must drastically reduce the amount of plastic we are producing, using and throwing away, so as to give ourselves a fighting chance to tackle this global problem. In recent years, plastic pollution has morphed from a largely local and grassroots issue into one that is being discussed by the international community at the highest level: the United Nations. In a recent meeting of member states and experts, global politics played out in a small room in Geneva, demonstrating why solving this issue is frustratingly complicated.
The United Nations Environment Assembly (UNEA) is the world’s highest-level decision-making body on the environment. Created in 2012, this assembly meets every two years in order to discuss and set priorities for sustainability action for all participating stakeholders. These include but are not limited to member states, UN agencies, accredited NGO members, technical experts, business and industry representatives, indigenous peoples and youth groups. At the third meeting of the UNEA, over 200 states adopted a resolution establishing a process for ongoing coordinated international action to combat marine litter and microplastics, creating the Ad Hoc Open Ended Expert Group on Marine Litter and Microplastics (also affectionately known as AHOEEG). This group was tasked with investigating three possible pathways for member states to agree upon at the UN:
An almost 200 page report identified key issues to overcome, including the lack of an institutional mandate to stem the issue upstream, especially a mandate to reduce production, a lack of global standards for national monitoring on consumption, use, final treatment and trade, of plastic, and the poor application of due diligence and polluter pays principles when it comes to collecting and properly managing plastic waste. It’s worth noting that all member states agreed that option 1 is not viable, but the question is how does this move from just words into genuine and worthwhile commitments?
During a whirlwind week at the UN attending the AHOEEG, it was fascinating to see the dynamics of developing and developed countries, public and private sector, activists and politicians and many other stakeholders play out within a microcosm of the globe. In order to solve plastic pollution, we need delicately coordinated global action – this much is certain and (mostly) agreed upon by all stakeholders involved.
What are the main issues that hamper more effective global action on this issue?
Finding common ground
With environmental issues, everything can be contentious: including the terminology you use to refer to an issue. There was debate among players at the UN over the term “marine litter”, which many developing states and NGO stakeholders argued implies the only issue with plastic is when it is mismanaged and ends up in marine environments. This narrow definition limits the scope of discussion (and potential solutions for the problem) and excludes the many other non-marine related impacts of plastic, including on human health. However, widening the scope also vastly narrows your ability to reach consensus among players, which made some NGO players reluctant to include the full force of issues related to plastic pollution.
Lack of transparency
Plastic pollution is an environmental issue plagued by a lack of transparency at every turn. There is limited information shared on what chemicals even make up different plastic items, with industry tightly controlling the list of ingredients and additives in products under the guise of protecting trade secrets. There is limited transparency on the genuine effectiveness of solutions, leading to greenwashing solutions like recycling to take centre stage. There is a lack of transparency from developed countries over how and where they are shipping their waste, and how that affects people on the other end. There is a great deal of mystery over how much business and industry directly influence political opinion on these issues: it seems that they have politicians’ ears once they start discussing selection of factory locations, bringing economic prosperity at the cost of human health and environmental damage, or even directly through funding of political campaigns.
Without transparency, it is impossible to meaningfully assess what action can and should be taken by different stakeholders.
Mismatched will
Over and over again, wealthy developed nations pushed hard for action to be centred around the Global Partnership on Marine Litter, a non-binding partnership to bring stakeholders together to implement global solutions to plastic pollution, instead of a global and legally binding convention. As if reading from the same script, many asserted that we do not have enough data yet to make binding agreements, and that we need better understanding along the whole life chain in order to set relevant reduction targets based on different litter types. In fact, almost two days of the meeting was taken up by a listing of data and methodology gaps that need to be addressed. This was opposed by the many and increasingly impassioned interventions by delegates from developing nations and NGO players, framing this issue within the context of environmental justice and calling to implement the precautionary and polluter pays principles. Many delegates from developing nations shared personal anecdotes of how they have seen plastic pollution affect their nation: from a Togolese delegate recounting the gradual decline in subsistence fisheries over the years due to an increasing amount of fish being trapped in abandoned, lost or discarded fishing gear, to a Peruvian delegate sharing the national campaign to rid their national dish “ceviche” of plastic particles.
What’s next?
The draft recommendations pulled together by the expert group will be discussed and agreed upon at UNEA4, held at UN Environment’s headquarters in Nairobi, Kenya in March of this year. Ahead of this meeting, many member states called for an assessment of the potential secondary impacts of proposed solutions in order to ensure that we are not creating more and increasingly complex environmental problems in trying to fix this one, such as the increased carbon footprint of substitutes like glass, the difficulty of getting “biodegradable” plastics to industrial composting facilities and ensuring that solutions like higher taxation of plastic do not simply create a black market while affecting poor and vulnerable populations. The division on this issue was palpable at all levels, but waiting to act for scientific certainty or giving deference to business and industry powers is a sure way to limit meaningful steps towards mitigating this problem.