Economics of Change

The world's history is full of tragic sagas perpetrated by those who attempt to drive change with money and power. Colonialism is one such pattern. In the last century financial and technical aid to almost every "undeveloped" population has had negative unintended consequences often with tragic outcomes.

Misanthropy and a quest for power often underlies offers of "assistance." Even without overtly unethical intent, the lack of understanding (requisite variety) exhibited by the aid provider spells disaster with a mathematical certainty.

So we need to find ways of helping without harming. Giving too much too fast is often as disastrous as not helping at all.

Any aid that will need to be perpetual is a pattern for disaster.

Any aid that economically benefits the provisioners directly will be misguided.

Any aid that requires a change of mind or heart among the recipients will fail.

# Who is wise enough to provide aid?

What heuristics may be helpful to the would be wise?

Look to Mick Ashby's Ethical Regulator Theorem for guidance.

# The most reliable way to avoid being harmed by outside money is not to take any. Is that possible? Can a neighborhood take care of itself financially from within? Can it generated the real equity needed to set up and run a business, a farm, or even a household?

If the decision is to take outside money, how will the neighborhood ever be free of outside control and domination through debt or through decisions by absentee landlord? Even gifts from the outside often set up situations doomed to failure, where the rate of change during the subsidized period is not able to continue once the subsidy is decreased or eliminated.

External money seems to create cancers and abscesses in neighborhoods. We need neighborhood immune systems that prevent the intrusion of pathogens.

# What are the neighborhood financial structures needed for neighborhood health? * [ ] Local investment in local entities. * [ ] Local loans by local lenders at fair rates and for reasonable risks. * [ ] Local skills and jobs for all critical basic needs. * [ ] Local currency in adequate supply at all time for all residents. * [ ] Local insurance against unforeseeable circumstances. # What else? * [ ] Affordable housing. * [ ] Affordable land use. * [ ] Affordable education and skill training. * [ ] Nutritious, affordable food. * [ ] Safety. * [ ] Meaningful work.