Hello, everyone. I'm Jim Garrison. I'm the president of Ubiquity University, and I'm delighted beyond measure today to welcome all of you from, we understand it as of now this morning, from 42 countries around the world, over 300 people have signed up for this course from 42 countries. And we are deeply grateful. And we thought that a good way to start would be to just provide a context for what is actually an unprecedented event. You're joining the first course in the reinvention of the MBA, a master's in regenerative action. As far as we know, there's no master's program, no MBA program anywhere in the world that's dedicated to regenerative action. And so we want to honor all of you who are joining this historic moment, which we are launching with the fundamentals of donut economics. I want to just provide a few moments of context and history because it has been about a year in development. Last year, Ubiquity University and over 350 partners from around the world launched humanity rising in the depth of the pandemic as an opportunity on a daily basis for people from around the world to come together and share experiences and visions. And one of the people that I met through this process, who I'll introduce in just a moment was Ed Muller, the president of the University of International Cooperation in Costa Rica. And in our first conversation, he said to me something that changed my world. He said, Jim, it's no longer about sustainability. Sustainability is obsolete because you can't be sustainable with a degraded environment. Human beings have to replace sustainability with regeneration, regenerative action. The recourse we have left as scientists from around the world are telling us that we're literally running out of time to address climate change and a range of other challenges that are gripping our world at the heart of which is the degradation of upwards of 70% of all the biodiversity on our planet. So that hit me like a diamond bullet. I knew it was true. And we reframed humanity rising around the metathematic of regeneration. And it was in conversations with Ed and Kate Rayworth and Joel Carboni, the green project management who came in as an instant and senior partner to the development of the MRA that pretty soon had scores of organizations from all over the world that said, yes, let's come together and reinvent the MDA and start a master's in regenerative action. So we've been working together for over a year to get to this moment. And it's a profound moment of ignition of a meme in partnership with people working on regeneration all over this planet to provide the learning pathway. Starting with Kate for what people need to understand about our world. And it's been linked our MRA to different bio regions around the world, different cities around the world. You probably all heard that Amsterdam last May made a commitment to embrace donut economics beyond the pandemic. And so we're developing a master's in regenerative action that links knowledge about the world within the frame of regeneration with action in the world to shape the human future. So that it can be regenerative and thus abundant and healthy and most fundamentally in alignment with natural systems. So thank you everybody for joining this course today. You are making history. We are making history. And so I want to just acknowledge, Ed, your bringing in the regenerative theme into humanity rising and into ubiquity. Ed has been a close daily partner in the cultivation and development of this MRA. So Ed, welcome, and please say a few words. Thank you, Jim. And thank you for being so passionate about going on this trip with all of us together. And thank you for all of you who are in this course. And I hope to see a lot of you continue with the other courses of the MRA. As Jim said, we lost our chance for sustainability a long time ago. We didn't want to accept it, but since 1970 our ecological footprint is above the capacity of the planet. And today we're way above the capacity of the planet. So we started working on regeneration about 12 years ago, but it was hard because a lot of the people that were working were kind of isolated. We had a lot of interesting cases with permaculture and socially processes, cultural processes. But nothing that really could mainstream regeneration. And it wasn't about mainstreaming the theory of regeneration. We have enough beautiful books to read. We need to start doing it. And that's when we came to action. And that's why we're starting with Kate's course. I mean, of all the people I've looked at that are doing something different in economics, really moving beyond saying GDP is not a good measurement anymore, we need to do something else. And here's what actually can be done. And we'll have in this program, other tremendous people like John Fullerton from Capital Institute who actually coined the word of re-jointed economics and re-jointed finance. So what we did here was actually we collected collaborators from around the world that are actually bringing the top of the line of knowledge and experience. The best people around the world are joining here wanting to share their experience. That's one fundamental point. The other one is in 2018, when we founded the regenerate Costa Rica initiative, which is a countrywide regeneration roadmap for other countries to be able to follow and get inspired. We established also the regenerative communities network with Capital Institute. And now a lot of other networks, the city network has also joined. You, the people who are going to do the master's program, I hope a lot of you are, will have the opportunity to actually do regeneration in different places. You can choose around the world where you want to go and practice regeneration as part of this program. So we will be working with RCN with a lot of other networks, but I think there are over 40 cities now in the network. So we will structure beyond this academic component that's online, a real hands on experience. And I would love you to come and visit us here with regenerate Costa Rica. It's incredible we're working in the province that has the most attractions for tourists. We're actually going to have facilities just about five kilometers away from the beach.  So the idea is to work with the cultural dimension, the economic dimension, the political dimension, this virtual dimension. It's not only about the environment. So the integration of holistic thinking, and that's what we've been designing in this program, the MRA to be able to share how to put into action holistic approaches. And reinvent education, moving away from the reductionist disciplinary approaches to a real integrated transdisciplinary, originally based educational process. So thank you all for being here. You will enjoy Kate. I heard her several years ago when she was on a tour around the world promoting her book. And I immediately said, wow, this is powerful. And I guess, if you're all in this program, you probably have heard some of her Ted talks and some other things of fabulous communicator and inspiring. I mean, it's action, it's let's do it together. It's not telling a story about how to do it's actually let's do it. So we've been really working hard. We've been actually in the process now for several sessions downscaling the donor to the global south with people from Malaysia, India. So it's actually happening and way beyond our normal horizon of work. So we're going to go global. I used to call it we're going to make an army of regenerators, people who are actually active, having the planet regenerated together we're going to co create solutions for regeneration. I now call it, we're going to train, educate and share and co create first responders for regeneration. So think of their jobs as first responders we need to really shift the way we're going. So thank you all, and thank you Kate for being with us and thank you Jim for really hosting this whole thing and so many other people. Leslie has been tremendous in getting us organized we're all so busy and she's there. You know, Joel from GPM. I mean it's just fabulous to get this team together, and I really looking forward to seeing a lot of you in my course, which is coming soon, and throughout the program because we need to really work together on a better scope that we are capable. I'm not willing to sit and adapt to climate change, I think we still have the opportunity to build the world we want. So thank you, and good luck. Thank you Ed so much. You've been a wonderful partner and friend and instigator of regenerative action. I also, before we launch in everyone I want to invite Leslie Southwick Trask to say a few words Leslie is the chief development officer of ubiquity. She came to our acquaintance through humanity rising. She has really been the leader of the MRA coalition of groups, and has just heartfully and ceaselessly worked over the last several weeks we had a goal of 250 students. As of this morning we've pushed beyond 300. And that was largely due to Leslie's indefatigable energy and attention to detail so Leslie. Thank you for everything you've done and just welcome you to say a few words. Thank you. I know everybody's anxious for the main event so I will be brief. I just want you to look around the screen. If you want to flip through the other screens that you can't see you have just joined a global movement for regeneration. One of the things that we're doing with the MRA is that we honor the fact it's an academic offering with a credentialed master's degree and its conclusion. In truth, it's actually a movement. It's a community that you've joined. And we're going to be putting in links throughout this session of how you can come into the UB verse, join the group through Donut Economics, and become part of this intentional community for regeneration. And we do want to have you think about, if you were, you know, attending this course and thinking, do I really want to do a master's degree in this. Well, we're going to try and make it easy for you, because we're looking at innovative scholarships, innovative pod designs of students with shared education. We're even looking at financing the impact projects that you will be working on. So we're going to make it as easy as accessible as possible to equip you to be the first responders as Ed just said, in terms of regenerative action. We are as great as what we put into this, and I'm delighted to say that having spent hours and hours with our partners, I'm blown away as what Ed says, their capability, their intellect, their passion, and the edge that our partners are playing in regeneration. That just boggles my mind after every one of our coalition meetings, what these people are doing, I just wanted to do a shout out to Marilyn, Marilyn Hamilton who's in the crowd today, who's been one of the intrepid instigators of the MRA and living, living cities and all her work, which you can find in the MRA. So I'm going to say thank you for being here. Contact me if you need any more insight about the MRA itself. We are on a roll to changing the world. Back over to you, Jim. Thank you, Leslie. And thank you, everyone. And now I just want to introduce Kate, who will then for the next four weeks, each Wednesday at this time, will be conducting this course on the fundamentals of donut economics. I know that she needs no introduction to any of you. I would just say one thing that there's an old saying that it, it takes genius to see simplicity. And I think with her book on donut economics, Kate Rayworth has provided all of us with a simplicity of vision into the heart of one of the most complicated disciplines in the human academic pantheon. We tend to think of economics as really complicated, but it's actually extraordinarily simple. It's as simple as a donut. So Kate, welcome. And I turn the program over to you. Thank you so much, Jim. What an extraordinarily generous introduction from you and from Ed and Leslie. I'm completely delighted to be here, part of launching this master's in regenerative action with Ubiquiti University. And I am blown away by all the people sending their greetings online. It's just incredible from all over the world. So it's just that fabulous, that fabulous sense of what we can do when we work together online like this. It's just incredible through global connection. So I'm going to share my screen and say I'm just really very honored that donut economics is the launch course of this master's all the organizations that you can see there on the left hand side. And others have said we see ourselves as part of big team work. This is big team work. No one person organization or initiative can can get it all. It takes a network of change makers. And I consider everybody who's enrolled in this course to be part of that network. So let's celebrate the big team that we make when we get together. So I'm going to kick off today with this foundations of donut economics. Today, we're going to explore the donut. I'm going to give you dive into that simple concept. Next week we'll talk about when the donut meets the city. The following week we'll talk about can we do business in the donut. And then the last week I'm so thrilled to bring some incredible change makers who I've had the honor of working with over the past couple of years who are putting these ideas really into action. So I'm going to go for it week one we're going to explore the donut today. And I want to talk about the origins of where ideas come from because the donut may encapsulate simplicity but of course it didn't just come from me at all. It's built on the ideas of many, many people, some of which are aware of and some of which you're not aware of at all and I want to explore where ideas come from, because that tells us where they can go. So we're going to talk about planetary boundaries meeting social boundaries. We're going to do a poll. Can humanity get into the donut. I'm going to ask you to take a stand on that question. And I'm going to crowdsource your ideas towards donut 3.0. And then I'll give a quick overview of donut economics and the other ideas in the book, so that we can then dive forward into the following weeks. I want to acknowledge that we are over 250 people on this call. And that's an amazing number. It also means we can't have continual one to one interaction so we're going to create as many spaces as we can for people to comment and use the chat box, but I just want to recognize that we won't be able to have the level of interaction that we'd love to have, if we were all in the same room and having coffee between sections. I want to acknowledge that many people on this call are joining, not in their first language. Thank you for joining. And I aim to speak slowly enough but I do sometimes get excited I know it so I'm going to keep myself slow enough but thank you to everybody having that international ability to speak other languages because that's what enables us to connect across countries and cultures. Let's jump in. And I'm going to dive in with pictures. Donut economics is all about the pictures and there's a reason for that. Pictures are incredibly powerful. Here's Ptolemy showing his vision of the known universe. He drawn Earth at the center with all the planets and the solar system around. Copernicus here in the nice red jacket. He was watching the movement of the stars in the 1500s and he knew that Ptolemy had it all wrong. The Copernicus did not dare to publish his alternative picture until he was on his deathbed because he knew that pictures were powerful. He knew that when he showed the world actually it's more like this. Not Earth but the sun at the center of the known universe. Earth is just one of many planets going around. He knew that that picture simply rearranging the dots inside the circles was a deep challenge to the power of the church. It questioned humanity's place in the universe. So it's incredible what chaos rearranging a few concentric circles can unleash. And so we should pay great attention to the pictures that we use, teach and draw. And it drew me to thinking about the pictures that are shared in places like this. Departments of economics the world over. So many people study a little bit of economics and the pictures that they learn are the ones that stick with us longest. So what are the pictures at the heart of the 20th century economics that many of us on this course may well have been taught. There are three that I want to start with. The first image I ask around the world what's the first picture you remember learning in economics and the pictures the same it's the supply and demand curve, as if to say welcome to the economy here is the market. We start with the market and we put price at the center of our vision, and anything that falls outside of that price contract is called an externality, which leaves us in the absurd and devastating situation that the death of the living world is called by economists and environmental This alone is cause for transformation. What about the selfie the portrait of humanity who we tell ourselves we are. It is of course rational economic man.  And this devastatingly simplistic vision of us is so dangerous because on being told that he is like us, we actually become more like him.  If we're going to live well together 10 billion of us on this planet this century. And then the goal. What is the goal of the economy if we don't know the economy's goal. How on earth can we know what success looks like. The mainstream economics is never drawn on the page it doesn't need to be because it's spoken in every speech of politicians in the economists and in economic journalism, and it is of course, endless economic growth, measured by GDP. In countries, even the UK where I'm sitting now countries that are richer than nations have ever been before them believe that the success of their problems lies in yet more growth, endlessly through the ceiling without asking what happens next. I believe these pictures, these core concepts underlying 20th century economics have been profoundly influential in the world view that we've lived by, and it's led us into crises repeated crises whether it's financial meltdown of 2008, the ongoing era of climate and ecological breakdown, or the last year of coded lockdown. These may be reported differently in the newspapers, but they have many things in common. They reveal just how deeply connected we are with each other and the rest of the living world. They reveal sharp inequalities of gender and race of wealth and power of global north and global south. And they arise from the very systems that we've created. I believe they all arise from systems that depend upon endless expansion. If you have a system that aims to endlessly expand, you will kick off a subprime mortgage market. If you have an energy and industrial system that endlessly draws at Earth's fossil fuels and materials, you will induce climate and ecological breakdown. If we have a system of human settlements that endlessly encroaches into wildlife barriers, coupled with ever increasing global travel, we create perfect conditions for global health pandemic. We also create our sense of the shape of progress. And we need to go beyond make critique. It is far beyond time of just saying that's wrong. Here's a genius bucky fuller who said you never change things by fighting the existing reality to change something, build a new model that makes the existing model obsolete. And in the spirit of that, towards this new shape of progress, that is where I said well, let's offer a donut. The goal here is to use Earth's resources radiating out from the center of this donut, so that nobody is left in the hole in the middle of the donut falling short on the essentials of life. But at the same time we don't collectively overshoot the ecological ceiling and push so hard on Earth's life supporting systems that we kick our planetary home out of balance. The goal of the donut is to meet the needs of all within the means of the living planet. It's a safe and just space for humanity that depends upon a regenerative and distributed economy. In the simplest of terms, it aims to say leave no one facing critical human deprivation, but do not create plant critical planetary degradation. And these boundaries, I believe, actually unleash creativity that they must unleash our creativity now. So that's the core concept. But where did it come from, because it didn't come from me. It comes from a long lineage of ideas and I want to dive into an exploration and the story of where these ideas come from. I want to tell the story that's not written in journal articles or in blogs that you can't read in the textbooks, but it really matters because we all create and co-create and evolve ideas. And as much as I'm telling where this has come from, I want it to inspire where this should go. This is an ongoing process of transformation of our mindsets. So, from my point of view, where did this donut diagram come from? I realized that I've been deeply influenced by concepts that I had thought I'd forgotten and only later remembered. The first is Hazel Henderson's layer cake that she drew in the early 1980s and I encountered it in the 1990s. I love this diagram. I love this mother nature sitting under the love economy of unpaid care. With that on top the underground economy, the public sector providing public goods and then the private sectors icing on the cake. It's what everybody focuses on it's what's visible but it's underpinned by so much that was left invisible. I had this picture literally pinned to the wall next to my desk for years. Just thinking I love this picture and there was probably something about a cake that means I ended up with a donut. This diagram from Herman Daley's work blew my mind when I first encountered it. The idea that once we may have had what we could call an empty well where the economy was a small part of a much bigger ecosystem. And that made us feel that we could draw endlessly on Earth's resources and put our waste endlessly out. The sky is so big, the ocean so deep, the forest so great, surely little humanity couldn't make a dent in this. And that's when the founding fathers of economics wrote their textbooks came up with their ideas. No wonder they ignored the planet and called its destruction an externality. But we live in full world where our economy is banging into the edges of the ecosystem and we feel it and see it in the news every day. And surely this demands an utterly different economics. I was also profoundly struck by this diagram created by Friends of the Earth and the Netherlands in the 1990s when I first encountered it. I counted it around the year 2000. The idea that there's a limit to pressure we can put on planet Earth but there's also a minimum resource use and that something in between is the space this idea of boundaries. I remember seeing this picture and thinking that's clever. But there were no metrics. There were no specifics. I didn't know what to do with it. But these other pictures it went through my eyes into my visual cortex into the back of my head which is where all pictures sit. And it sat there probably waiting for years for it to have another purpose. It was at least then a decade for me. Before I saw this diagram. I saw this in 2010 I've been on maternity leave had twins immersed in the unpaid care economy of childhood. I came back to my job at Oxfam and somebody said oh this is one of the big ideas from the last year and it had this massive impact on me. I felt it viscerally in my body and I couldn't name why. These earth system scientists were saying we believe there are nine life supporting systems, nine planetary boundaries that make Earth a human home, and that that green circle in the middle is a safe operating space for humanity but we've overshot it. I remember sitting at my desk and thinking this is the beginning of the rewriting of economics. Now where did they get this from. They were drawing on this diagram which is the last 100,000 years of life on Earth and Earth's temperature over that time. And they were noticing that over that time the temperature on Earth has varied a lot but then in the last 11 or 12,000 years it's been that little bit warmer and far more stable and they ring this and they said this is the Holocene era. What is it about the Holocene that keeps us in this space because this is the space in which all human civilizations have arisen. We discovered and created agriculture we have thrived. We would be crazy to kick ourselves out of this. And that's how they came up with these nine life supporting systems that they believe are what hold Earth in that stable state. I think when I was looking at this picture without realizing it, my visual cortex was recalling Hazel Henderson's layer cake. Actually it was on the side of my desk, and I thought that green circle in the center. That's the layer of mother nature and it's getting squashed. It's like all the jam is coming out the side it's getting so squashed by the human economy. I saw in my mind's eye Herman Daley's diagram and we're not just banging into the corners of this circle we're way over shooting it. And then this diagram from Friends of the Earth I thought well, if the Earth system scientists are telling us there's an outer limit of pressure we can put that green circle. If we go to the center of that green circle. So where humanity would be putting no pressure on the planet. We would be using no fossil fuels. We will be converting none of Earth's surface we would be putting no fertilizers in the soil, we will be drawing no water from lakes and rivers. That's a place of death and destruction for billions of people if we go there overnight. So there must be an inner limit of resource use to. What I touched on is scrappy little piece of paper at my desk this shape inside outside you can see me scratching away saying is this a useful concept and I thought yeah it's a kind of a two sided shape. Don't fall below but don't overshoot. Now I'll tell you the truth. The first thing I did with that I thought that was quite satisfying but I put it in the bottom drawer of my desk because I thought well why is anybody else going to be interested in that I didn't realize at the time the power of pictures I was just doodling. So I went up in conversations when I say you know what that actually for this conversation I have a picture I drew earlier and people say that is interesting. You should work on that. So then I drew it up in PowerPoint really clunky I know. I drew it up. There's the nine planetary boundaries around the outside and environmental ceiling, a social floor, the safe and just operating space for humanity it's no longer a circle. I had a problem. The earth system scientists of the world have come together and use their expert knowledge to define the nine planetary boundaries. Okay, I'm sitting at my desk in Oxfam and I know we should define the social boundaries but who has the authority and to do that. You could take all human rights and put them there, but that would be a very, very, very long list and the earth system scientists that had the ingenious idea to limit it to nine, we might then be able to remember that and act on that. I was given a brilliant idea by Franco Felix Dodds. He said you know what, next year is the real plus 20 conference on sustainable development happening in 2012. All of the governments of the world are submitting their reports to that conference. Why don't you go through what all the governments are saying and see what social issues they're coming up with and that's exactly what I did. I went through 86 submissions by the world's governments and underlined every single social issue that they mentioned. And I crowdsourced so over anything that was mentioned by more than half of the submissions by governments became part of the social foundation. So it was crowdsourced from the world's governments. And this was the donut 1.0 that we launched in February 2012 and I took to the real plus 12 conference, and it had huge resonance there. I was amazed by the number of people who said this is how I've always thought about sustainable development. I've just never seen the picture before. And I could save the world's governments. These are your values connected with the latest earth system science. But then, in 2015, those governments came through with what they set out to do at that conference and they produced the sustainable development goals. They actually came up with their agreed set. And the earth system scientists came with a new version of planetary boundaries. They kept the same nine. They said the last five years have confirmed these but we've updated the science of where we think we are. And it's not good news. So I thought, well, I must update the donor. And by the way, when the governments have been producing the sustainable development goals, I'm told that in the last hours of negotiating those goals, the diagram of the donut was on the table next to them. They said we put it there to keep our eye on the big picture. So the donor helps shape the SDGs and the SDGs then helped shape donut 2.0. I crowdsourced all of the social issues from the sustainable development goals and put them in the centre of the donor. So now they really do reflect the latest statement of the world's governments of the shared goals and the planetary boundaries are around the outside. Now we've come a long way here. We've come a long way from thinking that the shape of progress is an ever rising curve. And actually it suddenly looks more like dynamic balance. If I do it my hands, it feels like a heartbeat, thriving in dynamic balance. But this is of course not a new idea that we should represent well-being by circle of dynamic balance. Across the world, Indigenous cultures, modern and old have shown through their diagrams images of well-being, of health, of prosperity, of flourishing that hold this shape. And it's actually the Western mindset, the Western culture that is really late to come to realise this. And to me the question is can we, can we keep evolving and learn and learn from the depth of wisdom that's held in all of these concepts. So here's the donut concept and here's its visualisation and the feel of its shape. Then the question is how can we quantify it? Can we put metrics to it because metrics are powerful. They start to tell us where we are now. So to quantify the social foundation, I set out with a goal of saying I want to find one or two indicators that will give us a sense of the proportion of people in the world who are critically deprived on each of these dimensions. This was before the world's governments have created their 169 indicators at the Sustainable Development Goals. So the goals existed but not the indicators. And you always face dilemmas when you're choosing indicators. Do you want academic precision or traction with people who understand it? What's the data available worth versus the data desired? Do you want indicators of processes in play or outcomes achieved? Do you want numbers or visual representation? Do you want to collect data that's subjective of how people say their lives are or how they are objective measured by somebody else? Do you want globally available data or locally relevant? Do you want a composite indicator or hold them visually together in a dashboard? Do you want data that's policy-responsive that will show up in the short term if a policymaker does something or that shows long-term transformation? These dilemmas of data and indicators never go away. You have to make choices. But I chose this set of indicators for creating these visualizations of the donor. Just to take one food, here's some of the dilemmas. This says from the FAO that 11% of the world's population are undernourished. Actually, what you'd really want to measure is the proportion of people who are malnourished who don't have a nutritious diet, not just falling short on calories. I have long conversations with the World Health Organization. Do you have this data? No. It's coming, but it's not available. It's that tension between using what's desired, doesn't exist yet, and using what's available. On water, I use two measures. The proportion of people without access to improve drinking water, the proportion of people without access to improve sanitation. So some of them have one number, some of them have two. So you can dive in here and critique and update and challenge. It's an ongoing process of improving the data that we use and the metrics that we try to give ourselves a snapshot of the world. Moving to the planetary boundaries. This, for me, was much easier because the Earth System scientists had already done it. They had quantified the planetary boundaries and I said, I'm just going to take their expertise and bring this into the donor. And every time they update it, we'll update the donor. So, for example, on the ecological ceiling of climate change, it's set at 350 parts per million of carbon dioxide in the atmosphere, but the actual performance at the state of the world is over 400 and worse now. So we see that overshoot. Some fall below the boundary, some are already in overshoot. Diving a bit deeper on the planetary boundaries. It's really important to recognize these boundaries are not tipping points. Now, I love this photograph. It's a crazy, crazy advertisement for a guy wearing some brilliant soundproof headphones. He's in an absurd situation because we know that he's about to go over that waterfall. But as far as he knows, he's fine. He's not yet gone over the tipping point, but he's way beyond the safety zone. And planetary boundaries aim to set a safety zone. They're like a sign in the river that says go no further big waterfall ahead. We don't know exactly where it is, but we know it's out there. He's way past it. So the planetary boundaries and that green space says within this green space, you are in a safe zone. Now, once you go into yellow, you have gone beyond the safety zone and we don't yet know where that danger lies, where that tipping point is. What's more, not all of the planetary boundaries have the same kind of characteristics. So here's the donut and Johan Rockstrom himself described these to me in a way that I found very helpful. I've labeled them here. The three of these planetary boundaries are what we call global processes. They're well mixed carbon dioxide released anywhere mixes in the atmosphere. Ozone layer depletion ocean acidification dissolving of carbon dioxide in the ocean, and they believe there are indeed global thresholds global tipping points that we could tip over like a waterfall. So the other ones these alien processes of air pollution or chemical pollution and the four locally aggregating processes they happen locally but across the world might their effects might aggregate. They fall on a more gradual curve. There's no sudden cut. There's no sudden cut at the global scale that they may be locally. But of course these all interact and the interactions are profound and complex and humanity is only just at the beginning of understanding the deep interconnections of Earth's life supporting systems, which is another reason to use precaution and don't go beyond those points. So, you can take the social foundation and its metrics. You can add the ecological ceiling of planetary boundaries and its metrics and when you put them together, you get this.  It's the portrait of state of humanity and the our living planet now. We're the first generation to see this. The thing is that the economic theories from the past and the government policies from the past and their business models and the community actions in the past won't help us solve this because they never saw this and this is what not what they were invented for we need to come up with new theories and policies and business models and actions of our own. And now I want to ask you this question indeed. Can we do it? Can humanity turn this story around? Can we be the generation that actually begins to reverse this to regenerate the living planet to regenerate humanity so that we come back within and meet the needs of all within the means of the living planet for the first time. And so we're actually going to do this now if we were together in a room it would have to be a pretty big room today. I would say let's play this game I call take a stand and I invite any one of you to do this in any community group that you find yourself in, in a room, clear some space. Okay, here's the question. You now understand the concept of the can humanity get into the doughnuts by 2050. And I'd say to you if you think yes we can go and stand in that corner of the room. If you think no we can't go stand in that opposite corner. Somebody's got their microphone on if they could turn it off it would really help it's rustling a lot at the moment. If you think well, whether or not we can, we should aim for the doughnut, go and stand in that corner, and whether or not we can we should aim for something else go and stand in the fourth corner. So here's the challenge. Can we live in the doughnut. I'm going to invite Richard now to pose the poll that we're going to invite you to take. We can't play this room and game in the room, but we can play it online so you'll have a choice now. Take a stand I know it's not easy but take a stand. Go for one of these answers which one do you feel today. And once everybody has voted on this we will have a look at our results. So I hope everyone's voting Richard you're gathering the answers. We're going to play in the room as you can imagine because people can't believe where their friends are standing what are you doing over there. How can you be standing there. And we're amazed to discover each other's well views and each other's optimism or pessimism or realism about the world. So take your stand in the online poll and Richard when you think we've got plenty of those answers in. I'm going to ask you to post the responses that we've got. We've got about another 20 and I'll close it. Keep going folks come on take a stand. You can change your mind tomorrow you can even change your mind when we play this in there in a room we invite people to cross the floor. We encourage people to persuade people don't stand there come here.  What would it take to change somebody else's mind how would you persuade them with data with examples with vision. You were all moved in different ways. So let's see where this group comes out. Oh, here we go. Look at that. That is that's extraordinary. So we've got around just over a third of people saying yes we can. We can do this. And two thirds of people saying whether or not we can we should aim for it. And a tiny proportion of saying whether or not we can we should aim for something else but nobody on this call has said no we can't. Well that's extraordinary. And maybe it tells us something about who's chosen to come on to this call of course there's self selection in this group. I'm going to ask people who said yes we can. Can some people who posted that can you write in the chat box why you think yes we can. I'm going to wait to see some of those answers appearing now in the chat box why and if you're standing in the room and saying yes we can. Here's why we can just write in the chat box. Why do you think we can do this. The human spirit at its best in action. For the sake of the seventh generation we must lovely. Fantastic. We have the potential but whether or not we will. Yep, we have the numbers to aim for. We underestimate what we can do in a year but we underestimate what we can do in 20 I love that it's so true. We have the tools. It's very simple it depends on each one of us. Fantastic. And I'm going to ask anybody who says whether or not we think we can we should aim for it. And that's an interesting question so there's that's holding of a doubt. But why do you think we should aim for this anyway even if we're not convinced we can make it could somebody who's been put two thirds of you post that that reflection on even if we hold a doubt we should aim for why why does it help us to aim for something even if we don't know that we can get it. It creates a momentum. The goal posts matter. Yeah, goals, having goals having a vision having a concrete assignment something to aim for perfectionism doesn't help. Hope. Because we'd be going in the right direction. Right, rather than sitting around saying but is that exactly the right goal let's just get going because we already know this is direction we need to go in this people will suffer. Very pragmatic. Okay, okay, and then I would love to ask the 2% of people who said we should aim for something else brilliant. Do you want to just share now something else that we should aim for whether it's a concrete idea whether it's a vision whether it's a word, something very specific.  Can some integrated impact of other communities trying different methods I love that. I know what's going to work and actually that's the first principle of donor economics. We've never pushed or encouraged or pressured or lobbied or asked anybody to use the donor, because people will find different tools useful in different places that's what I love about being part of this master's regenerative action there are many ideas, and many will work in different places. Many different tools will work in different places and let's adapt and use a multiplicity of ideas and see what takes us there fabulous. We must look for happiness. Think global act local trust the process love it. Okay, wonderful folks thank you that's brilliant to see this online poll. Right. I'm going to put you more to work now. So we've done the poll. As I told you the donut is an evolving concept. Don't stand still because the world is moving fast. And if we want our ideas to be relevant they've got to keep up with our knowledge with our aspiration and with what we can now see. So the core concept of the donut as I said at the beginning is leave no one facing critical human deprivation below the social foundation, but don't create critical planetary degradation above the ecological ceiling. Version 1.0 in 2012 look like this. I redrew it after the SDGs and the update of planetary boundaries and it came out looking like this. Now, what if I was to tell you that maybe it's time for donut 3.0 five years on again. Maybe it's time to recreate this idea. What then should change. How could this evolve keeping the core concept but what could be different. That's what I'm going to invite you to do to go into breakout rooms and discuss. So propose some changes for donut 3.0 because this is a real project by the way. So if you have any ideas, how should it change conceptually, or the dimensions that are included, or how can it change visually do you like the colors or the drawing or something doesn't work or it's not easy to understand or the narrative, the story of what it's about. I think some of the indicators or the data should change the source of indicators or who's gathering the data or anything else you want to bring. Now I'm inviting you not to bring critique of what's wrong. That might be a great place to start what's wrong. I don't like this that doesn't work. But the challenge is to say okay then what because critique is easy, but proposition is so much more constructive and useful and valuable and who knows you can come up with an idea that then becomes part of donut 3.0. So what we're going to do is Richard is going to now put in the chat box, a link to a Google Doc, and if everybody clicks on that. It will take you here. This Google Doc will open up, and you'll see 45 identical pages with this framework on that I just presented to you. When you go into a breakout room because Richard will give you a breakout look for the number that you're in. If you happen to bring breakout room nine.  So as a group, you could use this somebody could share their screen that sometimes helps if you want as a group, or you can all work on it individually. Add your proposals in here. Everybody can type in it, or you could say one or two people in the group, you type you do the typing capture the group's ideas and make sure you're listening to what everybody's saying. You've got 20 minutes as a group to come up with some great ideas. And then when we come back in plenary, I'm going to just ask again in the chat books I'm going to ask people to share back your best ideas from each of the quadrants so we won't be undertaking everything but share back the ones you think this really should be in donut 3.0. And all of these slides will be saved on the ubiquity university website so they'll be all accessible to everybody afterwards. Okay, so I'm going to share my screen. And I believe Richard is going to now give us chat breakout rooms to go into. You've got 20 minutes. Okay, I see that everybody's coming back for the breakout rooms. Amazing. So, I hope you've had good discussions. The first thing we're going to ask actually is, was that the right amount of time. We, this is the first session we're running in this whole masters and in this course. If you have a view, you want to write the chat box. Yeah, that was just the right amount of time or actually we need longer or less. It'd be great to hear that right now. Oh, lots of opinions coming. This is great. There were some issues with typing. Not everybody could type on the. Okay, I'm sorry to hear some people are having trouble typing. Yeah, that was our, our challenge. We couldn't, we couldn't access it. And yet some people could that's curious. Okay, is a great feedback. Thank you. We several people say five minutes more maybe. I believe Google. Okay, maybe there were too many people, maybe we had too many people accessing the one document at the same time that might be what's going on. It's true. I have never done this exercise with 300 people before. We're, we're, we're, we're blowing a fuse on the system for all great reasons but thank you that's really, really good feedback. So maybe next time we'll do 25 minutes. Thanks folks. Excellent to have this feedback. Okay, let's dive into. Just, just briefly, if I might, this is Ian. What we did, we actually created a Word document with the, with the, with the four quadrants and then we've captured the notes. I've got that as a screen grab but the way the chat box is working in this zoom call, I can't just drop it in there. Right. Okay, got it. Or maybe if there's a way you could add it to that Google Doc or something if we could keep it on record, that'd be great. Thanks, Ian. Okay, so what I'm going to do again because there's so many people it would be lovely to hear back from each of the groups but that would literally take us through to the next three hours. So what I'm going to do, ask folks again, we're going to use the chat box. I'm going to ask you to pull out the most powerful ideas so we can, we can all see the chat box it goes streaming past. Decide which of your ideas that you're going to share here, the ones that you really think if there's going to be a new donut, they should be in it. Okay, so I'm going to ask first of all, let's just start with ideas for the visual and the narrative. So if you had a really great idea for something visual that should be changing here, or something around the narrative that should be changing here. Anyone from your group? It'd be great to hear that. Do you want us to talk or to write, sorry? To write, I'm afraid. Otherwise, it would be so nice to hear voices, but then there'd be 300 voices. So if you could, if you could write in a chat box, add explicit examples of what the safe zone looks like. That's a great point because what the donut currently does is highlight where we don't want to be. It tells us about overshoot at the planet. It tells about people falling short. What it doesn't actually name clearly is what it's like to be in that green space. Show the interrelations. I love that point. So many people when they first see the donut, they say, yeah, but everything's in its own box, and it's all interconnected. And that's absolutely true. If when you see the donut, the first thing you want to do is pick up a pen and draw so many lines on it that it turns into a bowl of spaghetti, you've absolutely got the idea. Everything is interconnected. But of course, if we try to draw on top of this diagram how everything is interconnected, it would all be so utterly interconnected, it would be impossible to see. So I think of it as layer upon layer. We're actually only just beginning to understand how everything is interconnected. So we're the beginnings of doing that. Are the SDG icons? Yeah, maybe you could ask the SDG icons or indeed add icons instead of just words. Make it three-dimensional, Martha says. I think three-dimensional is a great invitation. So many people have said, okay, there's two dimensions, but donuts are three-dimension. So what's the third dimension? And to me, actually, that is the big question. And I invite everybody to meditate on that. If this had a third dimension of uplift, what would it be? Some traditional economists would say, well, there's economic growth. And I say, are we really going to give away the third dimension just to more GDP rising? What could that be? What would that third dimension be? It's a great question. Include age and gender breakdown in indicators. And I would say include racial breakdown, include all sorts of different identity breakdowns that are important. Yes. Of course, if you were to zoom in on any one of these quadrants, then you'd precisely want to be including those breakdowns by identity to show that inequalities can be horizontal. And they happen across group identities. And it's really important to recognize those because they can be structural inequalities. Add an indicator on tree forest and tree planting. Interesting. So the planetary boundary scientists, I think, would say that's connected to land conversion. The extent to which land is being converted from its original coverage and the indicators they use there is forest coverage. Add a third dimension, the quality of life, dreams, feelings, connections. Absolutely. Actually, sometimes when I draw this, I draw it flat. In fact, I put a donut here, if you can see me in a little box. I put the donut flat and I think of a spiral rising. And I sometimes think of Manfred Max Neef has these beautiful fundamental human needs, which are about subsistence, but also connection, belonging, creativity, freedom. And it's as if those, I think, are what can rise. The donut does not create well-being for humanity. The donut, in a sense, creates the preconditions of well-being for humanity. But that well-being itself is much more intangible in experience. Okay, I'm going to invite next. This is a wonderful stream of ideas. I'm going to invite next. People to, if you've got any indicator or data changes that you think there's the wrong data or there's so much better piece of indicator or data that we could be adding in here. Someone said, life boy rather than the donut. Yes, that's a good point. It's a long story. We can tell that story. But why is it called a donut? Data is too slow. We need a crowdsourced aggregator. That's a great comment. And actually, the world, we are blessed with data like never before, right? The vast majority of people have an internet-connected phone in their hands. We can actually crowdsource people's generated data in real time. It's happening. If the internet of things is going to be useful for anything, let's make it useful for this. That we can actually have in real time a visualization of how humanity is rising or falling, is recovering and regenerating or still degenerating. An indicator about solidarity. I love that. I'm going to comment on the point. Somebody said an indicator about solidarity and art and culture. There's a really good reason why these are missing. And it's because I crowdsourced the social foundation from the world's governments, right? When they came out with the SDGs, I thought, well, the world's governments have agreed this. That's an incredibly credible internationally agreed source. And it means that I can present this to any government. In fact, I was invited to present the donut to the UN General Assembly. And it meant I could stand in front of them and say whose values are here? They're yours. This came from you. So these are your values I'm reflecting back to you. That's the strength of sourcing the SDG, the center of the donut from the SDGs. Now, the downside of that is that the world's governments didn't get everything. They talked about gender equality. They didn't specifically name racial equality. They didn't talk about art and culture. They didn't talk about community and solidarity. And here's why the SDGs actually came out of the Millennium Development Goals. And the Millennium Development Goals came out of the covenants of human rights and human rights coming out in the late 1940s actually were around some very specified individual rights. And so I think there's a legacy written into human rights to the NDGs to the Sustainable Development Goals, which overly focuses on individual claims and you can say do you have enough food and water and housing and education and income and work. These could all be claimed individually, except of course the ones that are in relation, gender equality, social equity, political voice, peace and justice, these are in relation to each other. But there's no mention here of community solidarity and connection. And I also agree that it needs to be added spiritual well-being and social well-being and that's something that one could crowdsource. Literally, you have to ask people what is your state of well-being that's subjective data that we could possibly bring in here. So many, so many wonderful ideas coming through here. Thank you. So many metrics, you have to what extent are people now bowling alone, as opposed to bowling in community, spending time in community, so many metrics we could bring in here. Okay, I'm going to ask if anybody wants to raise anything conceptual that hasn't already come up here. And I'm going to invite because now I'm opening the box, anything, the lids off, anything else, any wild, wild ideas that you think it should be added somebody says add a subtitle that explains what the donuts about. If anyone wants to come up with a subtitle, please do. I would, you know, it's always an interesting idea how do you explain what this thing is I say it might be a safe and just space for humanity. It's a compass that aims to meet the needs of all within the means of the living planet. If anybody on this conversation can come up with a better subtitle that would be just brilliant. The taste is the economic you'll ever enjoy. Yeah, the only donut that actually turns out to be good for us. That's what I often say. So how to show the dynamics and the pace. Thank you. This is static. This is a snapshot and actually this is a snapshot based on data from around 2014 2015. What matters is the direction we're going in. So yes, the next thing we want to do is show the dynamics. We could show, we could show these same red wedges but you could add an indicator that shows and it's getting worse or and it's coming better.  Isn't that what we want to see what's going up what's going down are we indeed coming back within and eliminating that human shortfall. That is totally possible as a project as the world's data gets better which it's going to do. This is going to become more doable. I'm just really enjoying reading all of these ideas. Moving by region by culture. In fact, I think you could layer over so many cultural variations on this and that's of course what people have started doing taking it making it for their own culture. When people downscale the donut to a city or a community. We said go ahead, rename, relabel what what what makes you thrive what really matters to you add things in. The first, the first downscaling of the donut happened in a neighborhood in Quasula Natal in South Africa. Cox dad and Franklin neighborhood and they said the youth of the neighborhood added in fun. They added in a segment for fun.  I thought that was just brilliant. Okay, I'm loving all these these ideas that are coming in please keep them coming. This is how ideas change right this is how ideas keep evolving, and we are indeed planning on making an evolution and we will crowdsource it and if you're interested in actually being part of that. If you sign up to the newsletter of donut economics dot org, economic section that you would find out when we launched that project and when we say we want to crowdsource the best ideas but this is phenomenal ideas coming through here. I'm going to move us along. I'm going to take us now towards the final ride of today. We've got another half hour together and actually a little bit more than that which is great. And I just wanted to pull back we've had such a fantastic exploration of whether or not we can get at the donut and how we want to evolve this donut think of it continually is evolving because it is. And I'm going to pull us back to here. Welcome to the first economics lecture in a university somewhere in the world. And we know that for decades past. I know how this first lecture is going to begin, because it's the same way that it's always begun. Here's the supply and demand curve we're going to teach you how to derive supply and demand we're going to talk about the market and how prices bring markets into balance. And now we're suddenly talking about price like we always did. And for me, this is a what if moment what if instead of putting that up on the board, the professor were to say, here's the donut. What kind of economy will bring us into the donut because after all economics. When we go back to the ancient Greek, it means the art of household management. I think that seriously what is the household it is obviously our planetary household. Xenophon began economics at the level of a literal household his estate. And then he took it to the level of a city. Adam Smith took it to the level of a nation and asked what makes one nation thriving another for, and it is our duty to raise our sites again and take it from the household to the city to the state to the nation to the planetary the household is the whole, the whole planet. And those are our planetary boundaries. And then if if economics is the art of my household management in for whose interests, the interests of all humanity and the living world and all those who are living here with us. And how do we do that and the social foundation specifies the needs of humanity. And I think one of the things the donut needs to do better is specify the needs of all other living beings which I think it doesn't do well enough yet. If we began an economics degree anywhere in the world like this, with this is the first slide, we know that every single conversation every single lecture that follows on would be different. And guess what the masters of regenerative action actually is that degree might not be an economics degree. It's bigger than that it's about regenerative action but we're starting here with the concept of the donut. And I want to just lead us into where from donut economics point of view where would we go next. If you start with a donut, what kind of concepts what kind of images and understandings of the economy would we then follow on with. And the first diagram that I draw after introducing the donut is never supply and demand.  It draws on ecological economics, comments thinking feminist economics. And what it aims to do is to say listen. It's obvious. The economy is a social construct it's embedded in society because it's just made up of relationships between humans that we have invented. And the beautiful thing about that is that we can also reinvent them. And society is embedded in the rest of the living world humanity draws on earth's materials and puts out a stream of waste into the living world think of Herman Daley's diagram. And we need to make sure that square is not banging on the edge of the circle but it's thriving within and we are based in a river of solar energy without which nothing. Thank you some. There's the big picture, but then let's dive in and look inside the economy. And in the framing of donut economics we went to simplify it and say look, there are four fundamental ways that humanity organizes to meet for our wants and needs. And some of the ways we can call of it is market household state in the commons. And in the context of economic economics says welcome to the economy is a plan to move what it actually does is bring us straight to the market.  It tells us that the skills and the traits we value a competition and self interest and knowing the price of everything and ever calculating and optimizing and being efficient. Of course, even in the space of markets. This is not the way that humanity can or should interact. The market is only one way we interact with each other then economics will say well of course the market doesn't provide everything we need no way because markets are incredibly powerful. There's just two floors. One, they only work for those who could pay the rest they ignore, and they only value what's my priced the rest they exploit. So there's a pretty major flaws. Now, we also need state and in relation to the state stepping in and providing public goods and setting the regulations for all. Then we also have a set of identities we may be a public servant, a teacher, a doctor, a civil servant, you may be a resident of a nation or a city. You may be voter, a protester. All of these are crucial roles that we can play in relation to the state 20th century economics obsessed with the ideological boxing match between these two. Are you a free market less a fair capitalist or are you a state loving socialist and that boxing match back and forth between the two between the US and the USSR. Measuring GDP right everything that happens in that band is measuring GDP captured there monetized, but it completely misses to fundamental sources of our well being. The household, where we all begin every day, where you may be a parent a partner a relative a child a neighbor a carer. The parents economy, the caring economy the cooking washing cleaning sweeping that goes into raising the kids and doing it all again tomorrow. That is what gets labor, fresh and ready to show up in the market but it's completely missing from the picture. It took feminist economists to bring this in in the 1970s the work of Marilyn wearing Nancy Faulbury many others following Peggy Antrobus has done some phenomenal work in this area too. The household, but also the comments so neglected many people even economists say the comments what's that it took Ellen Ostrom, the political scientists to make us from remind us of the comments. The comments where people come together not through the market or the state, but as a community, as a group of people who want to co create something that they value it could be a garden on the corner of your neighborhood block it could be Wikipedia on the World Wide Web. It may have no money changing hands, but it's something that people was a steward together as a resource and Ostrom made us realize that the tragedy of the Commons that we were told in the 1960s may actually turn out to be a triumph when people come together they can be volunteers and shares and co creators and stewards, creating a set of shared rules and practices that they will follow to create value that otherwise would not exist. So all of these are essential roles we could play and then you can see there are financial flows in the middle here and of course finance should be in service to these forms of economy. My friend and ally Hunter Lovens always talks about making finance in service to the economy in service to life. So how could we redesign finance so that actually in service to enabling all of these forms. So these multiple identities they've become so clear over the last year there's one thing that COVID has taught us is that when market spaces are physically shut down due to the need for physical distancing. First of all the state steps in, and everybody suddenly remembers who the essential workers are whose work is essential. What is essential in life. And also the household steps in the caring, the childcare, the homeschooling, the tending to the ill the looking after the neighbors. Sometimes with joy, and sometimes it's been a great a place of intensity and domestic violence because of the pressure that's been put on the household over this past year. And the common step in connecting as a street. Are you okay. Let's run a food bank let's volunteer let's look out for each other and one of the things that many people worldwide say they don't want to lose after COVID crisis passes is that sense of a we that sense of solidarity that people were saying was missing from the social foundation. How can we bring it in. How can we keep it in our economies how can we structure market and state and household and comments and respect the space for all of these identities, because we all weave in and out of these every day. We all inhabit these identities in our economic and social lives. So just to celebrate that. I want to invite everybody to share in the chat box, some of the many social and economic roles that you weave together in your life it could be roles that you've played today you could have been a parent, a teacher, somebody shopping at working caring volunteering just in this very day. In the chat box and let's just have a lovely cascade of humanity, experiencing all these roles in our lives. parent teacher researcher Karen mediator coach street gardens fantastic volunteering co creating amazing mother activist. Exactly, we all weave these this is part of our lives and yet we've so really name it. Naming is powerful words are powerful pictures are powerful that's, let's commit to naming these roles and recognizing them as all essential part of our identities. A healthy economy is one that will enable us all to move in all of these spaces. Loving all of this dog parent. Fantastic that's connecting with the rest of the living world cookie Baker dog walker activist volunteer mentor snake rescuer Wow, we got some good humanity on this call step mom home member volunteer dreamer. Thank you partnership fantastic. Okay, keep on sharing. I'm going to move us on to the next idea that I want to share before we end today. This is how can we get into the donor. We've seen this overshoot and shortfall. We need to turn this around as Ed said to Jim when they first met, it's not enough to be sustainable we need to regenerate mate. So we need to turn around the dynamics of our global economy and I think there are two fundamental dynamics that we need to bring into practice at the level of the global economy the level of nations and cities and businesses and communities in neighborhoods to dynamics that we need to transform one. We need to be become regenerative by design and distributed by design. Let me say a little bit more about that we have inherited linear degenerative industrial structures. We take us materials make them into stuff we won't use it for a while and then we throw it away. And that is what has been pushing us over planetary boundaries. We need to turn down earth's life supporting systems taking again and again from the timber from the hills, earth's materials, and then throwing our wasting again and again as the atmosphere into the lakes and rivers and into the soil. It's time to transform this. We need to bend those arrows around so we create a circular or cyclical economy that regenerates life sources so that we work with and within the cycles of the living world, so that we come back within them so that we have the power to have the hair and restoration to be done, so that we belong again on planet Earth. Some examples of those, just a few examples from cities this time. So Oslo has gone car free in the city center get rid of the fossil fuel transport. Let's have trams and bicycles and people walking and actually let's bring humanity so even though they're working on getting rid of fossil fuels and tackling climate it ticks every box in the social foundation space for people connection community solidarity. Circular construction in Amsterdam Amsterdam has committed to be 100% circle economy by 2050, even though nobody knows what that means it's brilliant it's a moonshot far too far away let's be 50% circle by 2030. Let's write circularity into building regulations and construction now so this district in Amsterdam called Bikeslotterham, Dutch colleagues on the call I know you'll laugh at my pronunciation. Bikeslotterham is an experimental circular living lab in Amsterdam where everything that happens there has to be part of circular design because this has to be learned, experimented, succeed and fail but it's all learning. How can you use materials that have been reused and how can you use them so that they'll be used again and again repurposed recreated refurbished revalued. And then the sponge city, the concept of cities that are recognizing that water is not something to be held outside to concrete over to block off because that ain't going to work, especially in an era of climate change. They recognize that the city has an ecosystem and must act like a sponge. The city can be in China has created a water park on the edge of the city. In the dry season it's an amazing water park for people to travel through in the wet season it becomes a floodland absorbing the Lord water from the city. And then Medellin in Columbia, the river in this city used to be treated as a very handy industrial sewer carrying away all that waste that humanity's making. And then they recognize that the city is part of the ecosystem in which it's a place.  There are some examples of regenerative by design but also we've inherited economies that are divisive by design through laws and regulations through histories of colonialism to ownership through privilege. They tend to capture value and opportunity in the hands of a few this is certainly true at the global level. Over the past decade, the number of billionaires in the world has doubled from 1000 billionaires to 2000 billionaires, and it's risen even more in the COVID crisis. But we know within every nation there are structures that drive value and opportunity into the hands of a few. There's no way we can get the whole of humanity out of the hole in the middle of the donut. There's a world that's deeply unequal because those with wealth will be continued to overshoot, and those without will continue to fall short. There's only way to rebalance that is to create a far more equitable world. So we need to move from divisive design to distributive design. The dynamics of our economies need to be distributive so that value and opportunity and power are shared far more equitably with all who co created and that turns out to be everybody. These are the places that are actually aiming to practice distributive design. In the city of Preston, one of the UK's top exports at the moment is the impressive inspirational transformation that's happening in Preston Preston was going to have a massive shopping center built. They were believing that somebody was coming outside from the outside with incoming investment was going to rejuvenate the city. The money never canceled the money never came. They realized nobody was coming to rescue them. And so Matthew Brown a councillor in Preston said right if nobody's come from the outside, we're going to have to use what we've got here. We've got institutions in this city that are called anchor institutions because they're anchored here. We've got city administration schools, hospitals, universities, museums. How are we using the money to buy all the goods and services that we need every day? What if we use that procurement power to buy locally to buy small scale to buy from firms that are owned by their employees or cooperatively to buy from enterprises that are committed to distributive design themselves. And this is part of what's known as community wealth building. And through this Preston is reinvesting and regenerating its own city from within. In Vienna, a city where more than 60% of people in that city live in housing that is social housing. It's affordable. It's owned by the city or city run corporatives. Why, because Vienna decided a long time ago that housing is a human right, so that that land and housing should be owned by the city. And that makes it affordable. It's high quality. It's city center. It's normal. It's different to the story that we all know in so many other cities where housing is incredibly expensive, owned by a few people who often don't live in the city at all, and treat housing not as a human right with an investment luxury that they can read a return from and take that rent. Utterly different ownership creates utterly different dynamics. The city of Seattle in the US was one of the very first to say we're going to pay a living wage $15 an hour. People laughed and said, if you pay $15 an hour no one will be able to afford to go to restaurants anymore. It turned out that even the wait staff in restaurants could now afford to go to restaurants because they were being paid well enough. Cities like Stockton in California have trialled the universal basic income. These are experiments that in one place show that it can be done. It's not a laughing stock. It's actually a possible future. And these can then spread. And then let's end with the city of Bogota in Colombia. Public space given over to cars. Why would you do that? Let's give it over to a park turning a car park into a people's park, a space for community and that solidarity and art and culture and connection that we want to see in the social foundation. A space for people to meet in the neighborhood people like themselves are people not like themselves. And that's what makes you say I belong here and I live here and I like it here. So those are some examples of distributed by design and there's going to be so many more coming in future weeks. So let me just pull back. We began with 20th century economics with supply and demand with rational economic manner the goal of endless growth. And I hope in this process and in this whole course we are debunking this because that is not where we want to start. Let's start with the whole economy embedded in society in the living world, recognizing that we of humanity we are the most social of all mammals and we are deeply interconnected. And the goal is for all people to thrive in the donut.


K-7 returns. Enter a K-7, form a United States secret agent who operated in 22 countries, on land, on sea, and in the air, brings you a story of today. We take you to secret agent K-7's headquarters. This is K-7 speaking. Send in Miss Patricia Norwood for assignment. At what? Miss Norwood reporting for assignment. Miss Norwood, I've called you because your superior, Agent Z, has disappeared. He was supposed to report to me early last evening. When he failed to appear, I checked on his movements. I find he dropped out of sight nearly 36 hours ago. I intend to investigate personally. However, since you have worked with Z, you know his methods. I want you to investigate in your own way. Call on L-6 if you need help. I suggest you begin by searching Z's room. Keep me informed. Following K-7's suggestion, Pat led herself into Z's hotel room a few minutes later. Everything looks just as it did when I was here, talking with Z-Day before yesterday. A telephone. I wonder... Hello? Miss Norwood? Yes. This is Miss Norwood speaking. This is L-6. K-7 instructed me to meet you here. Where are you, L-6? Downstairs in the hotel lobby. Shall I wait here? Yes. Yes, I'll be down in a few minutes. Let's see. Here's something in the waste paper desk. What's in note? Have lead on men who are tapping wires. Meet me at same place as yesterday. This note must have come from one of Z's outside contacts. I wonder... I'm gonna try to get in. A man going through Z's desk. Put up your hands. For you, Madam Judge. I want you to answer that question. Who are you? And what are you doing here? That is my business. Don't reach for your gun. Oh! I've got to stop him. Hello? Operator? A man called me. Yes, yes, a minute ago. From the lobby. Put him on. Hurry. Miss Norwood? L-6. Yes. A man. He's laying with... with here. He's running downstairs. Follow him. Don't let him out of your sight. He's just gone through the lobby. I'll follow him. Hello? Operator? Operator, get me... get me a doctor. I'm... I'm crazy. A few hours later, as it was growing dark, the man whom Pat encountered in Z's rooms reported to another sinister character. These rooms are watched, so I couldn't search them. There was a girl there. She had the gun. A shopper. You are sure you got away without being followed? She couldn't follow me. I tell you, I'm sure I hit her. Good. Good. The girl must have been Agent Z's assistant, Miss Norwood. She works with him. Well, that takes care of both of them. They are out of the way. It is unfortunate you couldn't bring the girl here. Yes. Tell me what you're going to do with this special agent. Keep him here until we have a chance to get him out of the country. All right. You can go. Meet me here with the car in two hours. I expect several important conversations tonight. We leave at nine. As the man left the building, Pat, her bandaged arm and a sling waited outside. With her was L6. There's the man coming out of the building now. Can you see him? He's in the shuttle. It's him. It's the lame man. See him. Hey! Take hands off me! What do you want? Who are you? Hold him. I'll get his gun. He's not going to get a chance to use it this time. You? You're here? Yes. Yes, I'm very much here. Your shop hit me in the arm. All right, L6. Take him to Case 7 for questioning. I'm going in and search this building. Pat knew there was some link between the lame man and Z. Even though injured, she was determined to follow the lead at once. She entered the darkened building. It was one of the older office buildings of the city. No lights in here. I wish I had a flashlight with me. Nothing on this floor. All the offices are dark. Flaps upstairs. It's darker here than it was below. There's a light under the door at the end of the hall. There must be someone. There is someone in there. He's gone into the next office. Perhaps this door... It's unlocked. I have a glass of water. There you go. So, you are thirsty, Mr. Special Agent. It might interest you to know that the girl who works with you was shot this afternoon. You shot Pat? You don't like that so well, do you? Are you telling me the truth? It was an unfortunate affair. Limpi went to your rooms to search them. He surprised her there. Erigul, if anything has happened to Pat, you will face the firing squad. I'll see to that. You forget. You are my prisoner. Don't try to move. Pat, look out! I am sorry I had to knock the gun out of your hands, Mademoiselle. Pat, are you all right? She seems to have only her left arm free to use. The man you call Limpi sort of that. Yes, he told me. He will be interested to know that his bullet struck your arm. Pat, you shouldn't have come here alone, not with one arm bandaged. And I, Mademoiselle, am interested to know how you found this place. I followed Limpi. His shot on McBray's my arm. I followed him here and then went to a doctor. I see. Such bravery should be rewarded. Perhaps it will be later. Now turn around.  My arms. If you hurt her, I... Put up your hands, Farragault. You're under arrest. Who are you? I said put your hands up. Take his gun, Miss Norwood. I've got it, K7. Untie Agent Z. First take the ropes off my wrists, Pat. They're loose. I've been working on them. All right. They're coming. And that does it. It feels good to get them off. Pat, how bad is that arm of yours? Not bad, Z. It's a flesh wound. Now, Z, who is this man Farragault? What is his game? Tapping telephone lines, K7. He taps the long-distance telephone lines between several nations and listens to the diplomats' talk. And he sells the information he hears. His biggest business has been between two closely associated nations. Neither of these countries trusts the other. Farragault listens to the instructions each send to their diplomats and the democracies and reports to the other. I followed my lead to this building. It was trapped. Oh, incidentally, he's been double-crossing both of them. I have not acted against this country. You have no charge to police against me. No serious charge.  And here, spies face the firing squad. Look out. He's edging toward the door. You won't take me. Agent Z reporting, K7. I've just returned from the hospital. Farragault will live. He's under police guard. The man who worked with him has signed a complete confession. In it, he swears that Farragault has spied against this country. There's enough evidence to convict him. The case is closed. It is a known fact that in these days of unrest in Europe, telephone lines between nations are consistently tapped. Those who rule by force and intrigue have many secrets to guard, lest their own people and the world learn of their injustice. Listen for my next story. This is K7 speaking.


Okay today, we're going to talk about something that Maria's been getting a lot of questions asked on and that is Can I just sub out the whole contract? I? Know it may seem silly to a lot of people out there But surprisingly enough we've been getting that question asked so much that Apparently the rumor reel is going around and telling people that they can get a contract Sub about the whole thing and make money and we are here to dispel any rumors Any myths any misconceptions again this industry can be Very convoluted, but it doesn't help when people spread misinformation, and so my job here is to rebut that information that people are spreading and Put back into place or put back into your brains the correct information So that you when you're going out there and you're doing things and you're talking to folks You don't sound like an idiot pretty much right? We want you to have all of the facts so that you can make the correct decisions because again If you know how to play the game, and you know the rules of the game Then you can be successful But if someone is giving you the wrong rules, then how can you even have a possible chance at winning the game? I don't want to see you get in trouble. I don't want to see you on front page news or in your local news right talking about this contractor Took a deal brokered the whole deal, and he violated 52.2.9 52.2 19th-4 Limitations on subcontracting so today we're going to talk about The fact that no you cannot subcontract an entire contract So let's look at 52.2 19-4 Limits on subcontracting this is the part of the regulations that talks about how it is you're supposed to handle it When you get a contract from the government, how do you handle performing a certain percentage of that work now? Let's note that This does not apply to unrestricted solicitations nor does apply to some contractors So again, if it's not a small business set aside of any sorts or If you are a subcontractor that got a big contract then this does not apply to you It only applies if you are a prime contractor on a some sort of Set-aside type of project right whether it be small business woman on a day whatever what not so again That's when this thing comes into play Now the limits of subcontracting very simple It says if you provide a service you have to perform 50% of the work That's it. So if you provide a first service, you've got to perform 50% of the work If you provide supplies now This one's a little bit trickier if you provide supplies and it says other than from non-manufacturer of supplies You've got to do 50% of supplies now if the government puts out a quote for let's say for iPads or for 14 CDs or laptops the case may be That doesn't apply to you because you are this other than non-manufacturer So you're a non-manufacturer so again in that particular instance You could sell them the supply you could resell right a product and not be part of that 50% So that on the supply side that kind of goes out the window because it was very few of us are actually manufacturing That comes into play when you are actual manufacturer and let's say you are making a search for the government Then in that case you'd have to make 50% of the shirts But if you are reselling some a product that's actually off the shelf type of product This goes out the window So again, mostly it's gonna apply to people in services. So who are those people in services? We're talking about janitorial right logistics Okay transportation that kind of stuff those are services Okay, if you have if you do accounting right or if you do legal services or if you do Financial services right so those are all services that fall into 30% Construction construction is a little bit trickier Construction there's essentially there's two criteria if it's general construction which falls under the prefix of 236 You've got to self-perform 15% of the work if it's specialty construction, which falls in the prefix of 238 Then 25% of the work is what you have to perform specialty trades or your trades like air conditioning electrical and Plumbing and then general construction will be you know the big boys, right? So when they give you a big project and you've got to do multiple trades in that project That falls under 236 and it's only 15% of work. So you could essentially Sub out the majority of the work now Eric what does this mean right? How do I look at this stuff? So the way that you look at this is essentially If you get a contract Let's say two hundred thousand dollars Right and it's a service contract a janitorial contract if you get a contract for two hundred thousand dollars janitorial contract then You cannot award More than a hundred thousand dollars of that contract to subcontractors So if you get a contract for two hundred thousand janitorial You cannot award more than a hundred thousand dollars of subs now in your hundred thousand dollars up here Can be your profit? management overhead So in your hundred thousand dollars can be your profit if you got a 20% profit Right now it takes your eighty thousand dollars of actual work that you've got to do if you take out your management cost Maybe it's 40,000 worth of work together makes sense So again you technically inside of a 200,000 on a contract There's gonna be some management and there's gonna be some profit. So what we what we do is here Right if we say this is our fine line up here Inside and you're gonna say you're the prime You get to you know inside of your 50% you're allowed to put your profit in that 50% Right, so it's not that you have to do a hundred thousand dollars worth of actual work But you cannot sub out more than a hundred thousand dollars to a subcontractor So again when you look at it just think of creative ways in which you can meet this goal the other thing That you're allowed to do which I think is something a better strategy So I'm a visual person Okay So you got a box now, let's say You want it to Let's say you're the prime and you're gonna you have a company that's gonna do all the work for you, right? You prime you've got a company. They're gonna do all this work for you.    Whatever case, baby You're like Eric, but I've got a company. They're gonna do everything for me. I don't have to do anything I don't have to think right? Okay. Perfect. However, because of the regulations and the rules You have to perform 50% of the work What I tell people that we've done in the past which You know, I highly suggest that people do is if you've got to perform 50% of the work Then what I would say is take if there's if you know, there's gonna be one two three four Folks one two three four, so the sixteen people working on this job How many people do you need to do 50% of your work eight? So what I would do is I would hire I Would literally hire eight people onto my contract So I would go off but hire eight people onto my contract to do this work And so now what do you have you've got eight people That you put on your payroll that are gonna manage this project and then you have eight people Right from the subcontractor that is going to do their 50% of work And that's one way that we can get around hitting that 50% goal is that we just take the people from the Who was essentially who has employees we put them over here on our payroll, right using a payroll company and Now we've satisfied our 50% requirement. So that's another way which you can hit your 50% goals Right is to take those people and putting them over here And that's a way that you can hit those goals and that goes for construction as well So it's anything in construction down here If we're looking at it and we're saying okay and construction I've got to do 25% of work here, right? So you got to do 25% of work Well, if you figure on the job, you're gonna get 15 to 20% profit that right here mostly is gonna be Pretty much all profit. It's gonna cover that 15 to 20% Right. So again, you can technically sub out the bulk of the work And you just got to make sure the numbers make sense, right? You could but if they're if you have a shortfall then you could do the same approach here, which is taking The employees from the subcontractor putting them on your payroll just for the period of that project And that will allow you to make a plan. I Know a question that people are gonna ask because I've been asked this question before What about 1099s? 1099ers and the answer is no a 1099 is not an employee a 1099 is technically a contractor So again, that doesn't work in this scenario. You have to put them on your payroll a 1099ers a contractor So again a 1099 for the purpose of the IRS is what they are someone that's not employed by your firm that This goes against the whole point of self-performing work You have to perform it with your own labor your own staff your own employees. So 1099ers do not count towards self-performing and Adhering to the limitation subcontracting that does not work So I just wanted to come on and share this with everyone and dispel some of these myths that we've been hearing out there Perpetuating amongst the GovCon world and community and I and it and I understand it Listen, you know, you're getting your information from here. You're getting information from over there You're getting from your cousin. You're getting it from Ray Ray them and all these people that May not have already done the level of contracts that it takes to have had to meet these types of obligations So again, if you're dealing with really, you know much smaller type of vehicles It probably doesn't come into play because if you're doing a 30,000 on a contract and you've got a self-perform 75% 30,000 it's really not that big of a deal But when you start getting up to larger larger contracts If you let's say on a $200,000 deal, that's a hundred thousand dollars worth of work And for a lot of people that can be challenging. Okay. Hey, thanks so much Just wanted to come on today and talk about that Maria brought it up to me and I wanted to address it to everyone out there and kind of put this to rest and Hopefully answer some questions for you guys. Thank you