Women, Integral Economics and

Shares for the Poor

 

Reflecting upon what will create a just economic system, globally and locally, I want to explore two concepts for a better understanding of economics - integral economics and integral shares. Integral Economics (IE) provides for the application of the ideas of equitability and mutuality in the marketplace. Integral comes from "integrate" and applied to economics it means to integrate all levels of society with access to markets, goods and services, specifically for essential and basic needs. This is to say that a socially just economic endeavor must have relevance for the poor, especially for the work of women. In addition, and of equal importance, integral economics is an economic system integrated with an awareness of the natural environment which is an attitude of harmony expressed in everyday life.

I have adopted the term integral as a guiding principle for the microcredit and sustainability project I work with called the Integral Trust Fund, which exists to serve the poor by providing financial, educational, technological and other services for community development. Ultimately, integral economics is peace work for the reason that mutuality and equitability create the grounds for greater social harmony. Since investors on the global scale seek social stability as a major practical concern in their investments, I believe integral economics will prove to be the preferred system for a truly good society creating more ideal opportunities for the stable inflow and outflow of capital; a competitive advantage in the world of investment. This dream of a truly integral economic system, an integral system, will come about with perseverance and fortitude, as all efforts for social and environmental justice require.

             The second concept is the integral share, or simply a share, which is any form of capital such as money, land, equipment or knowledge made available for the poor to support their small businesses and the subsequent creation of savings and income at their level. Generally, a share is different from the consumer microcredit loans of conventional banks, which require collateral, and is also different from the microloans of pawn shops and middle people, which can range up to 2% per day, or over 600% per year. Social and green investors seeking efficiency and reliability will gravitate towards the integral share model, because these investors want to make absolutely sure that their investment in a project will actually be used to serve the poor, in a trustworthy, efficient manner, which employs the poor as leaders in helping themselves. This integral idea includes the minimization of the bureaucracy of an external, administrative “heavy” service organization, so that the money can go into the actual operation on the “ground level.”

The integral share is a positive measure in its connotation of sharing and its potential application in creating a sound financial system. I borrow the term "share" from the bank share or credit union share in America, however, the concept as I use it means an overall amount of currency, or capital, specifically for the poor in their microenterprises to create savings and income. The integral share is preferable to the "loan" because receiving a share psychologically prepares people for the intended uses of an their share. A higher sense of value is placed on the capital. An integral microcredit share project has the following characteristics. It is:

 

·        focused on the poor and their microenterprises. Organizations and individuals working in the field of integral economics adhere to the principle of simplicity, therefore, creating as much capital as possible for investment at the level of the poor.

·        based on trust and does not require collateral. To receive an integral microcredit share, a team of people, usually of women, need only provide a brief business plan and show a means of repaying the share.

·        for creating a new business, or for the growth of an existing business and savings plan. An integral share is not for consumer items.

·        a means for integral economics focused on the poor and their needs since they are in the majority. Therefore, integral economics means that the poor take a leadership role in addressing their needs and helping themselves.

·        adheres to environmental responsibility.

 

Integral capital resources provided by large scale social and green investors are already helping to create the conditions for greater prosperity in the best sense of the term. The increased influx of high volume risk capital will drive the innovation necessary to bring about the social equality on which I am reflecting and many of us are dreaming. I believe if integral economics continues to be both visionary and centered in the present, grounded in newly developing principles of microinvestment, it will be flexible enough to follow innovation for the future and to bring about large scale benefit. As the body of knowledge matures from research applications in the field, meeting the poor where they are in their lives, integral economics has the potential to provide a basis for real sustainability, both economic and environmental. It is a dynamic field ready for the vitality of social and green entrepreneurs, public servants and thinkers to bring further innovation. I would like to see the concept of the integral share as the basis of integral economics and an economic system that is mutually beneficial and just. In a practical sense, I would like to see the concept extend beyond financial services to include efficient, quality healthcare, education and infrastructure, such as renewable energy and natural agriculture.

True prosperity is both qualitative and quantitative, recognizing intangible contributions as well as the tangible. To my mind, the intangible or qualitative are most important, for example, the work of an artist, musician or teacher may not produce a large capital gain; however, these roles are indispensable in a good community. At the same time, the importance of tangible, quantitative facts such as markets, currency, infrastructure, goods and services are undeniable in importance for modern, technologically advanced societies with thriving cultures. In an integral system, prosperity and abundance require adherence to principles such as simplicity in what we consume, economic and social justice involving the integration of the poor, due diligence in markets and conservation in the use of natural resources.

Layne Hartsell

Chiang-Mai, Thailand

Christmas Day 2006

www.integraltrust.org

About the Author    

Layne Hartsell works in community service in the areas of natural farming, education and integral economics. He trained in biomedical research and developmental psychology, and has taught nutrition, microbiology, and physiology at the college level, including in the Navajo Nation, Arizona. In 2002, he initiated the Village Integral Fund for the poor and has initiated two natural farms - Tierra Azul Gardens. His work includes public talks and actions in community and peace, biomedical research in pharmacology and infectious disease; Genetically Altered Foods; Inquiry into the Present; and the Tierra Azul Village Project. Currently he coordinates service projects through the Integral Trust Fund. He lives in the Republic of Korea and in the United States.