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Re: [Livingontheland] Why factories aren't efficient...
- From: "Tradingpost" <tradingpost@lobo.net>
- To: livingontheland@lists.ibiblio.org
- Subject: Re: [Livingontheland] Why factories aren't efficient...
- Date: Thu, 18 Feb 2010 13:41:27 -0700
It didn't look on topic but it sure is.
Schumacher's intermediate or appropriate technology for our time is exactly
the basis of the simple, local food production we've been exploring here for
several years now. As was Gandhi's "Constructive Programme" of relocalization
in colonial India (that was his main idea rather than nonviolence). We're in
awfully good company ....
Hand tools, small plots, local consumption, recycling local organic waste -
these are the ways we work on appropriate technology here in our corner of
New Mexico. Society is entering economic decline and resource scarcities, and
high investment, energy-hogging, industrial scale food production is not the
future.
This is where Livingontheland fits into the big picture.
paul tradingpost@lobo.net
*********** REPLY SEPARATOR ***********
On 2/18/2010 at 9:09 AM Doug Willhite wrote:
>Here is the second part of that article I forwarded to you last week.
>This guy is well read and a consistently rational / pragmatic
>thinker. Definitely worth checking his blog on a weekly basis. His
>URL is at the bottom.
>
>doug
>
>ps Norma... Sweet Spring farm sounds like a special place :)
>
>
>
>Published Feb 17 2010 by The Archdruid Report
>
>Why factories aren't efficient
>by John Michael Greer
>Last weeks Archdruid Report post fielded a thoughtful response from
>peak oil blogger Sharon Astyk, who pointed out that what I was
>describing as Americas descent to Third World status could as well
>be called a future of ordinary human poverty. Shes quite right, of
>course. Theres nothing all that remarkable about the future ahead of
>us; its simply that the unparalleled abundance that our civilization
>bought by burning through half a billion years of stored sunlight in
>three short centuries has left most people in the industrial world
>clueless about the basic realities of human life in more ordinary times.
>
>Its this cluelessness that underlies so many enthusiastic
>discussions of a green future full of high technology and relative
>material abundance. Those discussions also rely on one of the dogmas
>of the modern religion of progress, the article of faith that the
>accumulation of technical knowledge was what gave the industrial
>world its three centuries of unparalleled wealth; since technical
>knowledge is still accumulating, the belief goes, we may expect more
>of the same in the future. Now in fact the primary factor that drove
>the rise of industrial civilization, and made possible the lavish
>lifestyles of the recent past, was the recklessness with which the
>earths fossil fuel reserves have been extracted and burnt over the
>last few centuries. The explosion of technical knowledge was a
>consequence of that, not a cause.
>
>In what we might as well get used to calling the real world that
>is, the world as it is when human societies dont have such immense
>quantities of highly concentrated energy ready to hand that figuring
>out how to use it all becomes a major driver of economic change the
>primary constraints on the production of wealth are hard natural
>limits on the annual production of energy resources and raw
>materials. Even after two billion years of evolutionary improvements,
>photosynthesis only converts about one percent of the solar energy
>falling on leaves into chemical energy that can be used for other
>purposes, and that only when other requirements water, soil
>nutrients, and so on are also on hand. Other than a little extra
>from wind and running water, that trickle of energy from
>photosynthesis is what a nonindustrial society has to work with;
>thats what fuels the sum total of human and animal muscle that works
>the fields, digs the mines, wields the tools of every craft, and does
>everything else that produces wealth. This, in turn, is why most
>people in nonindustrial societies have so little; the available
>energy supply, and the other resources that can be extracted and used
>with that energy, are too limited to provide any more.
>
>The same sort of limits apply to the contemporary Third World, though
>for different reasons. Here the problem is the assortment of colonial
>and neocolonial arrangements that drain most of the worlds wealth
>into the coffers of a handful of industrial nations, and leave the
>rest to tussle over the little thats left. Ive commented here
>before that the five percent of the worlds population that happens
>to live in the United States, for example, doesnt get to use roughly
>a third of the worlds resources and industrial production because
>the rest of the world has no desire to use a fairer share themselves.
>Rather, our prosperity is maintained at their expense, and until
>recently when the current imperial system began coming apart at the
>seams any Third World country that objected too strenuously to that
>state of affairs could pretty much count on having its attitude
>adjusted by way of a coup detat or "color revolution" stage-managed
>by one or more of the powers of the industrial world, if not an old-
>fashioned invasion of the sort derided in Tom Lehrers ballad "Send
>the Marines."
>
>One consequence of all this is that over the last century or so, a
>handful of insightful thinkers have tried to explore ways in which
>the cycle of exploitation and dependency can be broken. One of those
>was the maverick economist E.F. Schumacher, whose ideas have been
>central to quite a few of the posts here over the last year or so.
>
>Though he had degrees from Oxford and taught for a while at Columbia
>University, Schumacher was not primarily an academic; he was the
>polar opposite of those ivory-tower economists who have done so much
>damage to the world in recent decades by insisting that their
>theories are the key to prosperity even when the facts argue
>forcefully for the opposite case. He spent most of his career working
>in the places where government and business overlap, helping to
>rebuild the German economy after the Second World War and then, for
>two decades, serving as chief economist for the British National Coal
>Board, at that time one of the worlds largest energy corporations.
>This was the background he brought to bear on the problems facing the
>Third World. Still, he drew some of his central ideas from a very
>different source: the largely neglected economic ideas of Gandhi.
>
>(May I interrupt this post to address a pet peeve? The family name of
>the founder of modern India is spelled "Gandhi," not "Ghandi." Its
>not that difficult to spell it right, any more than its hard to
>avoid writing "Abraham Lcinoln," say, or "Nelson Mdanela;" despite
>which, I recently got sent a review copy of a book referencing Gandhi
> I wont mention the publishers, to spare them the embarrassment
>which misspelled the name on the top of every single page. If you
>need a mnemonic, just remember that the beginning of his name is
>spelled like "Gandalf," not like "ghastly." Thank you, and we now
>return you to your regularly scheduled Archdruid Report.)
>
>A lot of Americans even, ahem, those who can spell his name
>correctly think of Mohandas K. Gandhi as a spiritual leader, which
>of course he was, and as a political figure, which of course he also
>was. Its not as often remembered that he also spent quite a bit of
>time developing an economic theory appropriate to the challenges
>facing a newly independent India. His suggestion, to condense some
>very subtle thinking into too few words, was that a nation that had a
>vast labor force but very little money was wasting its time to invest
>that money in state-of-the-art industrial plants; instead, he
>suggested, the most effective approach was to equip that vast labor
>force with tools that would improve their productivity within the
>existing structures of resource supply, production and distribution.
>Instead of replacing Indias huge home-based spinning and weaving
>industries with factories, for example, and throwing millions of
>spinners and weavers out of work, he argued that the most effective
>use of Indias limited resources was to help those spinners and
>weavers upgrade their skills, spinning wheels, and looms, so they
>could produce more cloth at a lower price, continue to support
>themselves by their labor, and in the process make India self-
>sufficient in clothing production.
>
>This sort of thinking flies in the face of nearly every mainstream
>economic theory since Adam Smith, granted. Since nearly every
>mainstream economic theory since Adam Smith has played a sizable role
>in landing the industrial world in its current mess, though, Im not
>so sure this is a bad thing. Current economics dismisses Gandhis
>ideas on the grounds of their "inefficiency," but this has to be
>taken in context, "efficiency," in todays economic jargon, means
>nothing more or less than efficiency in producing somebody a profit.
>As a way of keeping millions of people gainfully employed,
>stabilizing the economy of a desperately poor nation, and preventing
>its wealth from being siphoned overseas by predatory industrial
>nations, Gandhis proposal is arguably very efficient indeed and
>this, in turn, was what brought it to the attention of E.F. Schumacher.
>
>One of Schumachers particular talents was a gift for intellectual
>synthesis; his work is full of cogent insights that sum up a great
>deal of more specialized work and make it applicable to a wider range
>of circumstances. This is more or less what he did with Gandhis
>ideas. Schumacher argued that talk about "developing" the Third World
>typically neglected to deal with one of the most pragmatic issues of
>all the cost of setting up workers with the tools they needed to work.
>
>Take a moment to follow the logic. You are the president of the newly
>independent Republic of Imaginaria. Youve got a population thats
>not particularly well fed, clothed, and housed, and a fairly high
>unemployment rate; youve got a very modest budget for economic
>development; youve also got raw materials of various kinds, which
>could be used to feed, clothe, and house the Imaginarian people. Your
>foreign economic advisers, who not coincidentally come from the
>industrial nation that used to be your countrys imperial overlord,
>insist that your best option is to use your budget to build a big
>modern factory that will turn those raw materials into goods for
>export to their country by their merchants, giving your country cash
>income to buy goods from them, and in the process employ a few
>thousand Imaginarians as factory workers.
>
>Not so fast, says Schumacher. If your goal is to feed, clothe, house,
>and employ the Imaginarian people, building a factory is a very
>inefficient way to go about it, because that approach requires a very
>large investment per worker employed. You can provide many more
>Imaginarians with productive jobs for the same amount of money, by
>turning to a technology thats less expensive to build, maintain, and
>supply with energy and raw materials say, by providing them with
>hand tools and workbenches instead of state-of-the-art fabrication
>equipment, and setting up supply chains that supply them with local
>raw materials instead of imports from abroad. The goods those workers
>produce may not be as valuable in the export market as what might
>come out of a factory, but thats not necessarily a problem
>remember, your main goal is to feed, clothe, and house Imaginarians,
>so maximizing production for domestic use is a better idea in the
>first place, since less of the value produced by those workers will
>be skimmed off by the middlemen who manage international trade.
>Furthermore, since you wont have to to trade with overseas producers
>for as many of the necessities of life, your need for cash from
>overseas goes down, and you get an economy less vulnerable to foreign-
>exchange shocks into the bargain.
>
>This was the basis for what Schumacher called "intermediate
>technology," and the younger generation of activist-inventors who
>followed in his footsteps called "appropriate technology." The idea
>was that relatively simple technologies, powered by locally available
>energy sources and drawing on locally available raw materials, could
>provide paying jobs and an improved standard of living for working
>people throughout the Third World. A lot of very productive thinking
>went into these projects, and there were some impressive success
>stories before the counterrevolution of the 1980s cut what little
>funding the movement had been able to find. Mind you, Schumachers
>thinking was never popular among economists or the business world,
>and it happened more than once that countries that tried to adopt
>such economic policies were treated to the sort of attitude
>adjustments mentioned above. Still, pay attention to those Third
>World nations that have succeeded in becoming relatively prosperous,
>and youll find that some version of Schumachers scheme played a
>significant role in helping them do that.
>
>Its when the same logic is applied to the industrial world, though,
>that Schumachers ideas become relevant to the project of this blog.
>If, as Ive suggested, the United States (and, in due time, the rest
>of the worlds industrial nations) have begun a descent to Third
>World status, thinking designed for the Third World may be a good
>deal more applicable here and now than the conventional wisdom might
>suggest. It seems utterly improbable to me that the governments of
>todays industrial powers will have the foresight, or for that matter
>the common sense, to realize that economic policies that deliberately
>increase the number of people earning a living might be a very good
>idea in an age of pervasive structural unemployment or, for that
>matter, to glimpse the unraveling of the industrial age, and realize
>that within a finite amount of time, the choice will no longer be
>between high-tech and low-tech ways of manufacturing goods, but
>between low-tech ways and no way at all. Still, national governments
>are not the only players in the game.
>
>What Schumacher proposed, in fact, is one of the missing pieces to
>the puzzle of economic relocalization. The economies of scale that
>made centralized mass production possible in recent decades were
>simply one more side effect of the vast amount of energy the
>industrial nations used up during that time. As fossil fuel depletion
>brings those excesses to an end, the energy and other resources
>needed to maintain centralized mass production will no longer be
>available, and what Ive described above as the economics of the real
>world come into play. At that point, the question of how much it
>costs to equip a worker to do any given job becomes a central
>economic issue, because any resources that have to go to equipping
>that worker must be taken away from another productive use.
>
>Now of course its true that the cost of equipping somebody to
>perform some economic function locally has already entered the
>relocalization movement in an informal way. What Rob Hopkins calls
>"the great reskilling" the process by which individuals who have no
>productive skills outside a centralized industrial economy learn how
>to make and do things on their own has had to take place within the
>tolerably strict constraints of what individuals can afford to buy in
>the way of tools and workspaces, since there isnt exactly a torrent
>of grant money available for people who want to become blacksmiths,
>brewers, boatbuilders, or practitioners of other useful crafts.
>
>It may be worth suggesting, though, that Schumachers logic might be
>worth applying directly to the relocalization project by those
>individuals and communities who are willing to put that project into
>practice. The less it costs in terms of energy and other resources to
>prepare a community to deal with one or more of its economic needs,
>after all, the more will be available for other projects. Equally,
>the more good ideas that can be garnered from the dusty pages of
>publications issued by Schumachers Intermediate Technology
>Development Group and its many equivalents, and put to work during
>the industrial worlds decline to Third World status, the more
>creativity can be spared for other challenges.
>
>Yet theres also a broader context here, which Schumacher addressed
>only indirectly, and which has only been hinted at in this post the
>need to redefine our notions of economics to make sense in the real
>world, and above all, to respond to the most economically important
>of the laws of physics. Yes, those would be the laws of
>thermodynamics. Well talk more about this in next weeks post.
>
>~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
>Original article available here: http://thearchdruidreport.blogspot.com/
>
>
>
>http://chihuahuavalley.net
>
>
>http://chihuahuavalley.net
>
-
[Livingontheland] Why factories aren't efficient...,
Doug Willhite, 02/18/2010
- Re: [Livingontheland] Why factories aren't efficient..., Tradingpost, 02/18/2010
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