Originally published May 30, 2009, at Peak Oil Entrepreneur.
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Mr. Heinberg,
I read with great interest the email exchange between you and Rob Hopkins, posted at Hopkins’ website on May 27. You bring up a number of interesting points which I would like to address.
You open the conversation thus:
Now, the reason we all see it necessary to transition away from fossil fuels is that if we don’t, dire things will happen. But what if it’s actually too late to prevent some of those dire things from happening, and they occur during our Transition period and process?
Indeed, what if they do? Mr. Heinberg, I fear your epiphany is too little, too late.
Back in 2005/2006, when I was still publishing Adaptation, I tried repeatedly to raise this very warning flag. It was obvious to me then that the effects of peak oil would be felt by individuals on the ground as a financial catastrophe and that this would almost certainly bring long-term preparations to a screeching halt. In Will Fear of Money Destroy Preparations? I wrote:
My personal great concern over collapse is the economic hardship that awaits us all, and that is even now peering over the horizon. We will all face economic problems much sooner than we will face blackouts; we will lose our jobs and our homes long before the lights go out.
Addressing these issues is, for me, priority. They also require discussing economics, markets, and money. Each time I attempted to broach the subject on the mailing lists, I was generally ignored, or occasionally met with hostility. I tried to establish a separate mailing list to keep economic issues off the main lists so as not to offend anyone. No one joined.
In time I began to get the picture. The subject of money was taboo among the list participants, so taboo that it was beyond discussion even in the context of a massive planetary die-off.
Back in 2005/2006 there was still plenty of money and time to spend on community-level mitigation against the financial emergencies now plaguing the developed world. The analogy I used then was that we should be building a sliding board down the cliff and worry about planting a garden at the bottom later. What the relocalization movement has been doing all along is trying to build a sustainable garden at the bottom of the cliff without realizing their efforts aren’t going to spare anyone splatting their guts out as we all go over the edge together. But no one wanted to hear it. The comments at the end of the link to my article are pretty typical of the response I got.
It’s probably too late now to build a sliding board. And I have heard no reports of relocalization/transition efforts being of any use to people who’ve lost their jobs, their retirement savings, who find themselves under crushing debt.
You went on to say:
bq. Obviously, what Transition and PCI have been advocating (community gardens, local currencies, etc.) are in fact at least partial solutions to these very problems, but so far we have discussed them in terms of proactive efforts to keep the problems from happening, or to build a better world in the future. Should the growing presence of these problems affect how our solutions are described (to the general public, to policy makers, or among ourselves) and/or how they are implemented?
My own feeling is that the growing presence of these problems should cause you to jump up like your pants were on fire and quickly start brainstorming ways to phase national currencies out of community-level economic networks; and, to replace them with something more stable that will naturally become obsolete during the decades it will take permaculture consciousness to become the norm.
You continued:
I think the best way for me to continue the conversation would be to respond to specific points you [Rob Hopkins] made.
“Is it possible to design a bottom-up emergency response plan that is effective?”
If not, then I think that we (that is, those of us who desire to see an orderly, decentralized transition process) may be in danger of being written off as irrelevant at some point — perhaps in just a few months’ time.
There is already a significant subset of peak oil aware people who wrote off relocalization/Transition Towns a long time ago. Personally, I rarely try to keep up with developments because I don’t see how either is of immediate value.
You wrote:
I think communities are going to be left mostly to their own devices, once the efforts of national governments begin to fail — and fail they will. So how will communities get by? Who will help them organize their response to an almost complete economic shut-down, so that families still have food, water, shelter, sanitation facilities, work, and health care? I think anyone who can offer tangible help will be regarded with some respect.
You mean no one at PCI or TT has thought about these things until now? This is really... gosh, this is bad news. Relocalization has missed the mark even more profoundly than I thought.
You wrote:
It’s worth asking: What is Transition actually capable of doing to respond to an unprecedented economic crisis? In the most cynical assessment, it consists essentially of a lot of well-meaning local activists wanting to envision a better future. These are not the sorts of people to engage in serious emergency response work, nor do they have the support mechanisms to enable them to do it.
. . .
If what we are proposing to do can only succeed if we have a decade or so of “normal” economic conditions during which to grow our base, train more trainers, and deploy our methods, then . . . it may indeed be too late. But if we can adapt quickly and thereby strategically help our communities adapt, the result may be beneficial both to communities and to those who are organizing Transition efforts.
. . .
As you say, many people will be focused on questions like:
“how can I remortgage the house so as to reduce my payments”, “how can I reduce my overheads by switching to a different home phone provider” and “how secure is my job”, rather than “how am I going to store rainwater”, “how am I going to dig up my garden” and so on.
If we can address people’s very real economic concerns, we will be offering tangible benefit. What are some strategies for saving money? Get family and friends to move in with you. Find ways to cook with less fuel (solar cookers are only one of many strategies there), use less water (gray-water recycling with or without re-plumbing your house), ditch your car, share stuff, repair stuff, make stuff. How to live happily without x, y, and z. How to live more happily and healthily than ever on a fraction of the income.
The big question on everyone’s mind is: How can I get by once I’ve lost my job (or now that I’ve lost it)? Learning how to raise capital and form cooperative ventures that benefit the community (and are therefore worthy of community support) could be a life-saver. Also: how to set up barter networks, how to make community currencies work for you.
Mr. Heinberg: Nowhere, once, in this entire exchange, is even a tiny mention of engaging the business community to help.
I can’t speak to what goes on in England, but Mr. Heinberg, you have got to get your people to engage with the small business community here in the U.S. No one knows short- and long-term scenario planning and prioritization like a small business owner. No one knows how to work with limited or no funds better than an entrepreneur who’s bootstrapped a venture into profitability. No one can design and execute a resilient economic network like a sole proprietor; no one can figure out how to squeeze return on investment — monetary, energy, time, or otherwise — better than someone who has to measure these things for herself on a weekly basis. The things with which you now seem to be wrestling are everyday fare for a small business owner.
Peak oil is the cause of economic problems such as we are currently experiencing; economic problems manifest as financial problems, which are by definition business problems. Locking business people out of the discussion can only hurt your efforts — we have the missing pieces to make relocalization work. I can’t speak for other business owners, but almost everything you’ve discussed here is something I’ve tried to bring to the table, only to be met with hostility.
Activism can only go so far. Activism relies on donations, which in turn rely on someone, somewhere, making money from business activities. At some point relocalization must move from the activism stage to the self-sufficiency stage, generating its own income, and — if the term is to live up to its own definition — supporting relocalized economic activity in the community. I understand "no money" is an appealing vision to many relocalizers, but until national governments collapse so thoroughly that there is no longer a national currency, some amount of money will be necessary to pay taxes on the land housing permaculture gardens and the like. Money will remain a requirement for the foreseeable future; ignoring this reality dooms relocalization efforts, as you seem to be realizing at the moment.
I am certainly happy to see someone with as large an audience as you have bringing such issues to public attention. I wish you the best of luck as you move forward, and again, I urge you to engage with the small business community.




Comments
Engaging small businesses is indeed very important. The predominant energy to get things done has always come from entrepreneurs and this will always be so. When the financial crisis has played out many old businesses will have been replaced with new ones but the human spirit will always find ways to carry on even in great hardship. Reading about the accounts of bad times in the past can be instructive as well as considering the ‘normality of life’ in places so much worse off than we are. Long term energy descent planing is good but I agree that developments are likely going to overtake plans. I also do not believe that emergency relief organizations such as FEMA will have much to offer on the scale of need that might arise. These organizations were formed to assist a small percentage of the population in an emergency on the backdrop of an otherwise healthy economy and functioning society.
Jct: Local currency compatible with the internationan Time Standard of Money is the solution. When the local currency is pegged to the Time Standard of Money (how many dollars/hour child labor) Hours earned locally can be intertraded with other timebanks globally!
In 1999, I paid for 39/40 nights in Europe with an IOU for a night back in Canada worth 5 Hours.
U.N. Millennium Declaration UNILETS Resolution C6 to governments is for a time-based currency to restructure the global financial architecture. See my banking systems engineering analysis at http://youtube.com/kingofthepaupers
As a former small business owner, I find your comments prescient and brilliant. I was also a fan of “Adaptation”. I believe that part of the problem is the spiritual hegemony that closeted new- agers like Hopkins have over the PO movement. Hopkins is more interested in applying for grants from the elites, and offering warm and fuzzies to their rank and file which avoid grappling with the real on the ground issues that must be confronted. For my money, the respect accorded to Rob Hopkins and Transition Towns is the greatest misallocation of intellectual resources ever engaged in by the Peak Oil Movement (obvious apologies to Jim Kuntzler)
Thanks you guys, I really appreciate the positive feedback. The issue of nuts-and-bolts, mom-and-pop business is more critical than any I can think of regarding relocalization and peak oil preparations. It has long disturbed me that such a gulf exists between business relocalization organizations such as BALLE and ILSR on one hand, and PCI/TT on the other. Of course, I can only speak to what goes on in the States — TT is based in Great Britain, and having never been there I don’t feel qualified to comment on happenings there.
My own feeling is that the PO/relocalization movement in the US is so dominated by academics and activists that few of them have the experience of exchanging value for value. Only within academic and activist circles does sustaining value come free for the asking. The communities that would supposedly be helped by relocalization cannot simply ask for what they need and expect it to appear. This is not how economies work — relocalized or not — and neither is it how ecosystems work.
Unfortunately peak oil awareness is centered around organizations like PCI & TT. If these orgs don’t engage the small business community — where the vast majority of people earn their living, or not, as things deteriorate — their efforts will be for naught and the descent will be a lot more traumatic than it has to be.
Hi Paula,
First, let me say that we strongly share your assessment that Transition and relocalization efforts need to both engage the business community and figure out how to sustain their organizing efforts without the need for donations. In fact, I would take it a step further: Local organizers not only need to find means of self-financing, they have the much bigger challenge of financing the actual energy and food projects that need to be quickly and effectively implemented.
Both PCI and TUS have been in dialogue with BALLE and other business groups. And for PCI’s part, we are trying to uncover and disseminate promising models. If you have suggestions for people or groups to contact, I’d be glad to hear them.
Second, I’d like to caution you to be careful of generalities and assumptions about people like Richard Heinberg and Rob Hopkins, and the Transition Towns and relocalization movements.
If you assume that this exchange was the first time that Richard or Post Carbon Institute have ever thought about crisis and the need for individuals and communities to respond, it makes me wonder if you’ve read any of Richard’s books or articles. For good or bad, there is no such thing as a focused Relocalization effort. So while I’m disappointed to hear that you had a bad experience interacting with others, it does not necessarily mean that others engaged in this important work don’t share your views or engage in the activities you recommend.
best,
Asher
Hi, Paula.
Speaking as someone who is doing his best to reach out to the business community, I want to point out that there is a big difference between saying that it is a good idea to reach out and actually having people want to hear your message. In the tone of your post, it sounds (to me) like you think that your suggestion would be easy and why haven’t TT and PCI just been doing it?
I’ve given talks on peak oil to both big business (Sun, eBay, AutoDesk), medium business (regional insurance companies, regional banks, private equity firms) and small business as well as environmental and community groups. I work with business people all the time and attempt to bring peak oil into the conversation. I am preparing for a presentation to a board member of one medium-sized company right now. Believe me, it’s a lot of work even to get a hearing.
In my experience, it is significantly harder for the business community to hear the message of peak oil because the dominant paradigm they work with (successfully thus far) is that of substitution. They think that as energy prices rise it is only a matter of time until the high price brings forth some sort of new energy source or other change that will allow growth to continue.
This paradigm is throughout the business community. At some level (and I’m not speaking for Richard or Asher or anyone else), perhaps the reason groups like TT and PCI are engaged with the audience they are is because, in fact, that’s the most likely place they can achieve some progress.
There is one other factor that hinders business people from talking about peak oil even if they accept the idea of it and that is the fear of the instant shunning that would occur if they were to challenge the paradigm of growth that business adheres to. In fact, the other people in a business might think it is their fiduciary responsibility to remove anyone from the team that doesn’t appear to be working for more production, more sales, more profit. How could they have the shareholders’ best interest in mind if they don’t think growth can continue? Toss him out if he says anything other than he is committed to higher sales — he’s going to hurt the share price!
Small business may more receptive than business in general but in my experience business people do not like to hear that growth can’t continue.
Of course it’s worth bringing up the role of business could play but take it from someone in the trenches: it is significantly more difficult to educate business people on peak oil than other areas of our society.
-André Angelantoni
PostPeakLiving.com
Asher & André, thanks much for your comments. I’m very happy to have some dialogue going about these issues.
Asher — I think you misunderstand the role of entrepreneurs and small business owners in a community. These folks don’t generally see themselves as organizers, nor do they have the resources (especially time) to take on the challenge of financing energy and food projects. The return on investment in these situations — in terms of time, money, energy, or otherwise — is VERY negative, and serves to drag down whatever survival scheme an individual entrepreneur may be pursuing. This is not in the best interest of either the individual or the community.
Community organizing — that is, local-level centralization — can serve some purposes, but decentralization is what’s going to create local-level economic diversity resilient enough to ride the slide somewhat intact. Individual entrepreneurs need to be encouraged and empowered to start their own ventures as they see fit, not corralled into committees and consensus-building groups.
I would suggest it is not the role of relocalization groups to finance anything. It is their role to facilitate networking and information exchange among entrepreneurs so that they may find a niche that requires attention, and develop a personal action plan to fill that niche in a way that is both ecologically and economically sustainable.
Please note, that’s what sustainability means. If a venture or project can sustain the environment, but not the individuals involved, it cannot be considered sustainable. The danger here is that in presenting a set of responses to peak oil that are clearly not sustainable economically and financially, (nor socially appealing, but that is another post) the very entrepreneurs who would otherwise form the foundation of a sustainable local economy will instead fulfill their financial obligations in unsustainable ways out of immediate need.
As for Mr. Heinberg, I have read nearly everything he’s ever written including his book about lost golden age myths. And I have had this beef with his work since day one. “Relocalization” as it currently stands is a plan for what everyone should do after we reach the other side of the black forest, without addressing the fact that there is a black forest to pass through first. Heinberg’s emails to Hopkins state this pretty clearly. I have not made any generalizations that Heinberg has not made himself.
And again, I have to return to this:
“I think communities are going to be left mostly to their own devices, once the efforts of national governments begin to fail — and fail they will. So how will communities get by? Who will help them organize their response to an almost complete economic shut-down, so that families still have food, water, shelter, sanitation facilities, work, and health care? I think anyone who can offer tangible help will be regarded with some respect.”
To me this is an astonishing admission of failure. Hello! Haven’t you all been doing anything besides drafting resolutions, attending conferences and putting up websites?? To quote Jon Stewart, this is not a fucking game. The economic crisis now upon us has been in full, clear view since the peak oil preps movement started in earnest almost 10 years ago. It is shameful that only now, at this late stage, has someone made it acceptable to ask how civil infrastructure might function without money.
And it is especially galling to me personally since I have been attempting to raise these very questions from the outset, only to have them met with hostility and rejection from the very people who plant their flags in Heinberg’s camp.
André — there are huge numbers of business people interested in peak oil. There is a rather large body of literature discussing its financial implications and the like, as I’m sure you’re aware. These books sell millions of copies collectively, and yet none of this readership seems to cross paths with relocalization activists. Why is this? Where are these folks?
I have no doubt it’s incredibly difficult to get a hearing. Few business people have time to set aside to engage such a dire subject without there being some actionable response they can take, and metrics for measuring the success of their actions. I’ve never heard your particular presentation, but in all the years I’ve been involved with peak oil stuff I’ve come across exactly one workshop intended for small business owners.
I would propose that PCI (again, I can’t speak to TT specifically because I’m not so familiar with it) and similar groups engage the audience they do is because they have an ideological commitment to progressive politics. From what I have seen, folks engaged with relocalization, as it currently manifests, view peak oil as a means to their political ends which include things like getting rid of money, commerce, and capitalism; “consensus,” whatever that’s supposed to mean; “intentional communities” and the like. There is little room in all of this for ideas that don’t conform to this prefab ideal. That might’ve been dandy for the politics of energy ascent, but it doesn’t apply anymore, and rejecting any potentially workable response on ideological grounds is frankly stupid. Unfortunately, typing the words “peak oil” into Google brings up nothing but this ideologically hued presentation of the subject, with few exceptions.
There is more I could say but I am running late. But I do want to point out one thing — instead of approaching business people to “educate” them, why not invite them to share their expertise? Why not say, look we’re trying to figure out how to finance the local water system entirely with community investment do you have any ideas? Why not say, listen we’d like to build a local electrical grid run entirely on rooftop solar, how do we go about selling such an idea? You might find doors open more easily.
Paula,
Your comments are valid but I really must insist that you give those of us in the trenches a little more credit. We understand it’s not a ____ game but honestly, you are coming off to me like an armchair quarterback when you mention there are lots of books on the topic and that we stop trying educate business people and instead “ask them to share their expertise?”
The natural question for them to ask in response is “why do you want me to take time out of my busy schedule and share my expertise?” Without describing the magnitude of the problem all the mitigation actions that make sense (to me) for a peak oil future will sound “nuts” to the business person because we are dealing with an out-of-context problem.
So education is a vital component before a) they will share their considerable expertise and b) they will tailor their recommendations so that they are appropriate for a post peak future. In my experience, these people simply have not been reading the peak oil books the “activists” have been reading — these books don’t even enter their world for consideration.
There is a small group of business people I’ve met who have read the books. It is an even smaller group of people who believe that technology won’t save the day (because in their view it always has in the past). When I finally find a business person who has read the books AND believes that oil might be a real problem, they tell me in very frank conversations that there is simply no way they are going to stick their neck out in front of their peers in case the thesis is wrong and technology comes to save the day.
However, I am open to suggestions and I haven’t read your website so perhaps you are a better communicator than I and are having more success. Can you please point me to real-world instances where you have been successful with your recommended strategy?
-André
André — hopefully this will not come across as abrupt, I have only a short amount of time at the moment but wanted to respond.
You wrote: The natural question for them to ask in response is “why do you want me to take time out of my busy schedule and share my expertise?” Without describing the magnitude of the problem all the mitigation actions that make sense (to me) for a peak oil future will sound “nuts” to the business person because we are dealing with an out-of-context problem.
Do you see you’ve just described a perfect opener for broaching the peak oil issue with a business person?
“Why do you need my expertise?”
“My group is concerned about the potential effects of peak oil on the world economy. We are trying to build X as a mitigation against these effects, to protect the local economy against increased brittleness. We thought your experience with X would help our project be successful.”
When I finally find a business person who has read the books AND believes that oil might be a real problem, they tell me in very frank conversations that there is simply no way they are going to stick their neck out in front of their peers in case the thesis is wrong and technology comes to save the day.
Well what are you asking them to do exactly?
Can you please point me to real-world instances where you have been successful with your recommended strategy?
Clearly if I’d had any success approaching the relocalization scene about money issues, Richard Heinberg would not now be asking: “What is Transition actually capable of doing to respond to an unprecedented economic crisis?”
As far as I’m concerned, the bottom line remains unchanged: By any metric that matters to everyday people on the ground, PCI/TT and similar groups have really not accomplished very much, not in the US at any rate. I think this warrants discussion, and evidently Heinberg & Hopkins think so too, or they wouldn’t have opened their conversation to the public.
Paula,
"Do you see you’ve just described a perfect opener for broaching the peak oil issue with a business person?"
Of course I see that and have used it on occasion in the past. But it doesn’t get very far.
I believe that you are underestimating how difficult it is even to mention peak oil to many business people without their eyes rolling. It doesn’t matter how earnestly I’m asking people for their time as long as “peak oil” is somewhere in the sentence.
I’ve found it easier to get a little further when I say the topic is “high energy prices” but at some point the topic eventually has to turn to the severity of the situation or the much-vaunted expertise of the business person is completely worthless: if they don’t understand the magnitude of the problem, they will generate solutions that aren’t nearly up to the task before us and often will make suggestions that will make the situation worse. It’s a waste of everyone’s time.
If the person doesn’t clearly understand that we are about to undergo a paradigm shift, they simply aren’t much use, in my experience.
I recommend that you get out there and start having conversations and then report back on what works. Right now you are stating very obvious approaches that all share one common property: their success rate is very low. It’s as though you’re trying to tell sales people how to sell but you have never sold successfully before. Anyone can give advice, but I tend to listen to people who have a track record of success before I alter my behavior. If you are an entrepreneur, go show us how it’s done and believe me we will listen. I apologize if this occurs to you as rude but until you get out there and demonstrate some success your advice just isn’t worth very much.
Personally, I’m taking (and creating) every opportunity I can to speak to people open to the topic, which currently is something like 1 in 20. Perhaps eventually, just like climate change, enough people will be discussing peak oil that a tipping point arrives. I have no illusion that this tipping point will arrive in time; however, perhaps we can be ready to share our knowledge when the telephone starts to ring.
Best regards,
André
Andre — As a small business owner, and one of the few that truly gets the magnitude not only of peak oil but of the decline of industrial civilization in general, I find it pretty discouraging that you are more interested in arguing than in having productive dialogue.
There’s a million things I could say but it seems clear to me that you are not interested in brainstorming new strategies and techniques that might actually get everyone a bit further.
If you are ever interested in doing so, please know that you are cordially invited to join my Peak Oil Entrepreneurs group at LinkedIn. It’s a small group of very high-caliber entrepreneurs, business people, scientists, activists, NGO and government reps from all over the world. And yes, both PCI and TT are represented there. I certainly wish you the best of luck.
I apologize if I’ve come off as argumentative. However, I’ve been doing this a while and I’m trying to tell you what hasn’t worked. You can choose to accept this input from “the field personnel” or you can get frustrated when you hear something you don’t like.
I should note that it doesn’t mean that these actions won’t work forever because eventually reality will very definitely alter world views and this will provide an opening. I might pop over to your group and contribute. Thank you for the invitation.
Best regards,
Andre’