Global Trends and Civic Activism 2012 – 2030: Radical Change! Juraj Mesík Citizen Participation University, Hungary, July 2012 mesik@changenet.sk Working Hypothesis: „Period of the long growth hit the limits and is finished – period of the long descend is beginning“ Structural, not cyclic crisis If 3S /civic groups are to stay relevant, they must change radically - cosmetic changes do not suffice Real Crisis is only at the very beginning – and it will last decades - Financial Crisis – the end of life on debt - Peak Oil and its economic consequences - Destabilization of global climate... ... leading to food crisis - Accelerating social polarization ... And other fundamental global trends are out of human control... - Large discontinuites – not linear processes! Key Trends for 2010 - 2030 Period Climate Change – intoxication of the environment by our „metabolites“ – CO2, CH4, NOx Peak Oil – depletion of crucial resource base for human civilization. Many other “peaks” – “Peak Everything” Food (in) security Water crisis Financial systems collapse and economic contraction Social polarization Peak of human population growth Key questions are not „if“, but: How Fast? How Far/High/Deep? How fast? Bill: „How you went bankckrupt?“ Mike: „At the beginning gradually, and then suddenly“ Ernest Hemingway, The Sun Also Rises Not if, but when Tipping points dynamics Dozens of potential black swan (trigger) events: - Chinese growth below 8.5% in 2012 More QE in the USA uprising / war in Saudi Arabia, Nigeria, Iraq... Israeli attack on Iran drought or summer heat wave in the USA, Russia... Eurozone shocks – Spain, Italy... and many other Since 1980, whole economic growth of the USA is financed by debt ... U.S. trade balance history: since 1980 imports payed by printed paper But not only USA are indebted up to ears... These, not only Greek or Spanish debts are not payable Illusion of global wealth Illusion wealth waiting for „price discovery“: ghost cities of China, mirage cities of Arabia Big question: how are 7% distributed among bottom 99%? http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/03/income%20disparity.jpg The latter three groups saw their median household net worth fall by roughly 60% between 2005 and 2010, while the median net worth for white households slipped 23%. http://money.cnn.com/2012/06/21/news/economy/wealth-gap-race/index.htm?iid=HP_LN&hpt=us_c2 Geography of Income (in)equalities) – Gini Index http://www.nasa.gov/centers/goddard/images/content/208488main_global_tem p_change.jpg http://www.esrl.noaa.gov/news/2007/img/co2_data_mlo.2007.m.gif http://nsidc.org/arcticseaicenews/files/20 12/02/Figure2.png Ice Free Arctic in Summer 2015? - Peter Wadham, U. of Cambridge http://arctic-news.blogspot.sk/2012/03/rebuttal-imminent-collapse-of-arctic.html Which regions face Dust-Bowlification - Palmer Drought Severity Index - reading of -4 or below is considered extreme drought •Much of Latin America, including large sections of Mexico and Brazil •Regions around Mediterranean Sea, which could become especially dry •Large parts of Southwest Asia •Most of Africa and Australia •Southeast Asia, including parts of China and neighboring countries 2011 was impacted by the 5th-largest La Niña influence of any given year since 1950, and the largest since 1974 Average of NOAA, GISS, and HadCRUT annual global surface temperature anomalies. Blue bars indicate years influenced by La Niña events. 2011 is the warmest La Niña-influenced year on record (Source: WMO) (2011 - the 5th-largest La Niña influence since 1950, and the largest since 1974) http://www.skepticalscience.com/prediction-new-surface-temperature-record-2013.html Percentage of the contiguous U.S. either in severe or greater drought (top 10% dryness) or extremely wet (top 10% wetness) during the period January - November, as computed using NOAA's Climate Extremes Index. Remarkably, more than half of the country (56%) experienced either a top-ten driest or top-ten wettest year, a new record. Image credit: NOAA/NCDC http://www.wunderground.com/blog/JeffMasters/article.html FAO Food Price Index, July 5, 2012 Considering EROEI... http://205.254.135.7/EMEU/cabs/Yemen/images/Yeman%20oilprod&cons%201991-2011.gif „The world's oil reserves have been exaggerated by up to a third, according to Sir David King, the Government's former chief scientist, who has warned of shortages and price spikes within years. ... It's critically important that reserves have been overstated, and if you take this into account, we're talking supply not meeting demand in 2014-2015.“ The Telegraph, March 22, 2010 And it can go much faster: Total indigenous UK production of crude oil and NGLs in the third quarter of 2011 was 22.7 % lower than a year before Geography of Oil - Vulnerability Top World Oil Producers, 2010 (Thousand Barrels per day) 1 Saudi Arabia 10,521 2 Russia 10,124 3 United States 9,648 4 China 4,273 5 Iran 4,252 6 Canada 3,457 7 Mexico 2,983 8 United Arab Emirates 2,813 9 Brazil 2,746 10 Nigeria 2,458 11 Kuwait 2,450 12 Iraq 2,408 13 Venezuela 2,375 14 Norway 2,134 15 Algeria 2,078 Top World Oil Net Importers, 2009 Thousand Barrels per Day) 1 United States 9,631 2 China 4,542 3 Japan 4,261 4 Germany 2,319 5 Korea, South 2,142 6 India 2,131 7 France 1,791 8 United Kingdom 1,566 9 Spain 1,440 10 Italy 1,397 11 Netherlands 962 12 Singapore 942 13 Taiwan 894 14 Turkey 650 15 Belgium 619 Geography of Oil - Vulnerability Top World Oil Consumers, 2010 (Thousand Barrels per Day) 1 United States 2 China 3 Japan 4 India 5 Russia 6 Saudi Arabia 7 Brazil 8 Germany 9 Korea, South 10 Canada 11 Mexico 12 France 13 Iran 14 United Kingdom 15 Italy 19,148 9,392 4,423 3,116 3,038 2,650 2,560 2,489 2,249 2,237 2,141 1,814 1,800 1,626 1,503 25 m. people 82 m. people 64 m. people 76 m. people Geography of Oil - Vulnerability Top World Oil Net Exporters, 2009 (Thousand Barrels per Day) 1 Saudi Arabia 2 Russia 3 Iran 4 United Arab Emirates 5 Norway 6 Kuwait 7 Nigeria 8 Angola 9 Algeria 10 Iraq 11 Venezuela 12 Libya 13 Kazakhstan 14 Canada 15 Qatar 7,300 7,007 2,407 2,270 2,125 2,124 1,939 1,874 1,773 1,764 1,719 1,525 1,299 1,137 1,077 wahabists suspicious of the West? hostile to the West ? (Arab spring II?) Liberal Democracy ? (Arab spring II?) on the brink of civil war? OK ? (Arab spring II?) on the brink of civil war? hostile to the West / U.S. on the brink of civil war? OK? Will follow Russia Liberal Democracy ? (Arab spring II?) Source U.S. EIA : http://205.254.135.7/countries/index.cfm?topL=exp Annual global oil consumption is 1 cubic mile. To replace it would require: 200 2,600 5,200 1,642,500 4,562,500,000 Three Gorges dams nuclear plants coal plants wind turbines solar panels In the financial crisis conditions??? Net Trade in Food: Vulnerability of MENA but also PIGS... Mexico... Why? Energy intensity of modern food production When food expensive, OPEC needs more money for imports http://articles.businessinsider.com/2011-10-21/markets/30305401_1_growth-in-global-oil-oil-reserves-oil-price/2 The First Social Consequences - your savings may be lost or frozen in bankcrupt banks - oil price – the most vulnerable jobs in car industry, air transportation, tourism, construction, banking ... – unemployment growth (Detroit 30%, Greece, Spain – youth, tourism dependence (Egypt too...)) - higher energy prices will increase costs of housing / heating– „energy poverty“ (UK) - fuel costs and droughts/floods will push food costs up - decrease in general consumption / discretionary spending will put pressure on other jobs (restaurants, sport facilities, shops with luxury goods...) - vulnerable all non - essential jobs serving upper part of Maslow pyramid („political scientist to each village!) Unable to sustain existing infrastructure... The First Social Consequences II - Narrowing tax base of governments and growth in state´s social expenditures – necessity to limit services - stop in HDP growth will lead to state´s failures to pay back debt – state bankruptcy, deeper cuts in services - Worsening in access and quality of public education, health care, social support, police, collapse of pension systems - Richer strata moving to private schools, hospitals, gated communities - Weaker state means risk of increased criminality, lawlessness, anarchy (Wild West, robber barons) - floods, droughts, wildfires, storms will make problems harder and deeper (Morava 1997, CR 2002, Katrina 2005...) Decline will be hard (unemployment, spread of poverty, loss of dignity...), but societal responses can make it much worse - unpredictability! Time dependence of. FAO Food Price Index from 1/2004 to 5/2011 Red dashed vertical lines correspond to beginning dates of „food riots" and protests associated with the major recent unrest in MENA. The overall death toll is reported in parentheses http://arxiv.org/pdf/1108.2455v1.pdf Expect these changes: 1. Higher energy costs, food costs and recession 2. Decrease in economic activity 3. Transport difficulties, possible electricity blackouts 4. Possible collapse of monetary system 5. Failure of basic economic expectations 6. Move towards local production 7. Less debt financing 8. Less emphasis on insurance and pensions (“discounted future” – Stoneleigh, Roma, Africa…) 9. More people working manually, in agriculture 10. Wars and migration conflicts 11. Changes in family relations (future of romantic love?) 12. Eventually population decrease... (think MENA) Why do People Refuse to Accept De-growth Scenario and Instead Stick to expecting Never-ending Growth? -Lack of knowledge, real life illiteracy, personal experience missing by generations and myth of „eternal growth“, media manipulation and distraction (check today newspaper!) are part of it - But even intelligent and curious people avoid the reality: Why? - Elisabeth Kubler-Ross offers understanding of this behaviour: 5 stages of response to death (The Five Stages of Grief“): 1 Denial 2 Anger 3 Bargaining/Negotiation 4 Depression 5 Acceptance Crash program for „Long Descent“ - Do not expect it from politicians - elections are won by pink illusions, not bad news. - People will look for scapegoats – Roma... - Media are sold by „celebrities“, sport news, not by analytical articles - Demand for crash strategy will eventually emerge: sooner-better - Till then do not wait for government, your region, town or village – go for individual/ /family/community adaptation - Read J.M. Greer, R. Hopkins, D. Orlov... Key tasks of civic organizations and foundations in preparation for crisis: - Maintain capacity to operate – protect capital of foundations, stay liquid - Build awareness of public/ grantees about the risks of crisis, its reasons and consequences: there are almost no political solutions - manage expectations! - Programmaticaly assist sensitized public and partners with their preparations for crisis – food security of individuals, communities, (urban gardening etc.), education for „real life“ at schools, import „transition initiatives“ etc. Personal crash program - Technologies will solve it! It cannot happen to us! .... Denial - Prozac, seropram, zoloft, lithium...... Or... - Suppress consumer expectations – yours as well as your children´s - Consider (not) having them – its hard to run with them - Trade virtual property (shares, accounts) for real - Do not sell grandparents´ „grunt“ - Take good care of your health - quit smoking now! Personal crash program - gardening is excellent hobby - permaculture - excrements and urine are fertilizers (China) - insulate your house/apartment - if you live too close to a stream, move away - install solar water heating - wood stove may come handy - teach yourself and your kids new skills – near the base of Maslow pyramid - build relationships with friends, neighbors - learn to shoot (Russia, Argentina...) Crisis does not need to be a tragedy – a lot depends on people´s reactions - Ask your grandparents (wars, communism) - It is good to know lessons from not so remote past - village of my father (Selce): 1939 – electric light („tyrrany of darkness“) 1949 – bus do BB (until then walking, bikes) 1951 – village radio (replaced drummer) 1956 – first paved road 1966 – village sewerage 1969 – joint water supply, 1991-97 gasification Crisis does not need to be a tragedy – a lot depends on people´s reactions Lessons from not so remote past Russia after collapse of the USSR - Food – shops quickly empty, panic, hoarding - Roof above head – return to big family, many people in a small place = mutual help, low costs per capita, security – guarding stuff... - Fuels – non available or low allocations! – bikes, motorbikes, sharing travel costs (Cuba: not to take hikers is je illegal - Security – rent unemployed soldier, policeman... Food supplies of „preparers“ - Oregon Trail list – 6 months - Klondike list – 1 year ... - Key components – canned food – can last years – e.g. even if nothing happens, good hedge against inflation! - Beans, meat, condensed milk, sugar, oil, fruits, hard spaghetti... - Long term strategy – vegetable garden, fruit trees, chickens, rabbits Crisis does not need to be a tragedy – a lot depends on people´s reactions Lessons from not so remote past Argentina 1999-2002 - Security, security, security – criminality – firing arms, bullet proof vest, ammunition, safety measures... - Collapse of services – what will you offer? - Water - filter, pump, well, containers... - Electricity - lack of lights (head lamps), PCs, fridge... generator (Africa...), battery charger - Cooking, heat – gas supplies may fails, reserves needed – electric cooker, propan-butan, wood stove... - Trade, money – gold, silver - Food – long lasting... Fuel containers (car), books, TV, DVDs Crisis does not need to be a tragedy – a lot depends on people´s reactions Lessons from not so remote past Cuba after the collapse of USSR Richard Heinberg´s lecture http://www.findhorn.org/aboutus/video/richard-heinberg/ - organic agriculture specialists available, with plans for radical change in food production - It is easier to move soil to people and grow in cities - pots, balconies, parking lots, parks... - political will clear and strong - high discipline, social equity - hurricanes adaptation – early warning, minishelters (versus New Orleans 2005) Crisis does not need to be a tragedy – a lot depends on people´s reactions Lessons from not so remote past USA during the Great Depression and WWII Richard Heinberg´s lecture http://www.findhorn.org/aboutus/video/richard-heinberg/ - first no response, but then Roosevelt´s New Deal : put people at work – massive public works program – from planting forests to public arts (murals) - „Victory gardens“ – increased production of vegetables and fruits by 40% - gardens, golf courts, parks... - also UK 1938-1945 – health „revolution“ during U-boat blockade) To not anticipate is costly... On the Easter Island as well as in the Europe, 500 years ago as well as today... Welcome... ... to the shining future !