Inquiries into the Nature of Slow Money

1. Slow Money: A New Paradigm for Sustainable Investing

"We must bring money back down to earth."

A new economic vision. Slow Money represents a fundamental shift in how we think about and use capital. It seeks to steer investment towards local food systems, organic farming, and enterprises that enhance soil fertility and community vitality. This approach contrasts sharply with the dominant paradigm of fast money, which prioritizes short-term gains and often ignores long-term environmental and social costs.

Principles and practices. Slow Money advocates for:

• Investing in small, local food enterprises
• Prioritizing soil health and biodiversity
• Fostering direct relationships between investors, entrepreneurs, and communities
• Balancing financial returns with social and environmental benefits

By reconnecting capital with the land and the people who steward it, Slow Money aims to create a more resilient, sustainable, and equitable food system.

2. The Soil-Food-Capital Connection: Investing in Local Food Systems

"If we cannot grow food without causing unnecessary harm, not just to fellow humans but to all beings, how long can we expect our false progress to last?"

Soil as foundation. The health of our soil is intimately connected to the health of our food systems, economies, and communities. Industrial agriculture, driven by fast money, has led to widespread soil degradation, loss of biodiversity, and the decline of rural economies. Slow Money seeks to reverse this trend by directing capital towards enterprises that build soil fertility and support local food systems.

Key focus areas:

• Organic and regenerative farming practices
• Small and mid-sized food enterprises
• Local distribution networks
• Farmers' markets and CSAs (Community Supported Agriculture)

By investing in these areas, we can create a more diverse, resilient, and sustainable food system that nourishes both people and the planet.

3. Reconnecting Investors with Their Communities and the Land

"Relationships are being rent asunder, relationships are under siege, and the market offers as compensation the only thing it can offer, a lowest-common-denominator, one-size-fits-all, to-a-hammer-everything-looks-like-a-nail solution: economic growth."

Rebuilding connections. The modern financial system has created a vast disconnect between investors and the real-world impacts of their investments. Slow Money seeks to bridge this gap by encouraging investors to engage directly with local food enterprises and the land that sustains them.

Strategies for reconnection:

• Place-based investing in local food systems
• Participatory investment models (e.g., CSAs for investors)
• Educational initiatives to increase food and finance literacy
• Community-supported enterprises and cooperatives

By fostering these connections, Slow Money aims to create a more engaged and responsible form of investing that benefits both investors and their communities.

4. Beyond Profit Maximization: Nurture Capital and Patient Investing

"Slow money is patient capital on the opposite of steroids."

A new investment ethos. Nurture capital represents a fundamental shift from the "extractive" model of traditional venture capital to one that prioritizes long-term sustainability and community well-being. This approach recognizes that true wealth creation must account for social and environmental factors, not just financial returns.

Key principles of nurture capital:

• Focus on long-term sustainability over short-term profits
• Acceptance of "appropriate" rather than maximum returns
• Consideration of social and environmental impacts
• Support for businesses that enhance community resilience

Patient investing allows for the development of enterprises that may not offer explosive growth but contribute significantly to local economic vitality and ecological health.

5. The Violence of Fast Money and the Need for Economic Deceleration

"Fast money does violence to the web of relations on which the health of communities and bioregions depends."

The hidden costs of speed. The relentless pursuit of fast profits and economic growth has led to numerous social and environmental crises. This "economic violence" manifests in the form of environmental degradation, community disruption, and the erosion of cultural diversity.

Consequences of fast money:

• Soil depletion and loss of biodiversity
• Rural economic decline
• Cultural homogenization
• Increased wealth inequality
• Climate change and ecological instability

Slow Money proposes a deliberate deceleration of economic activity, focusing on quality over quantity and long-term sustainability over short-term gains. This approach seeks to heal the wounds inflicted by fast money and create a more balanced and resilient economy.

6. Redefining Fiduciary Responsibility in the Age of Ecological Crisis

"We need to discover new ways of thinking and speaking that can put economics in its place."

A new understanding of value. Traditional notions of fiduciary responsibility focus almost exclusively on maximizing financial returns. In the face of global ecological and social crises, this narrow definition is no longer sufficient. Slow Money proposes a broader concept of fiduciary duty that includes responsibility to the environment, local communities, and future generations.

Elements of expanded fiduciary responsibility:

• Consideration of long-term environmental impacts
• Support for local economic resilience
• Preservation of cultural and biological diversity
• Intergenerational equity

This redefinition challenges investors and financial professionals to think beyond conventional metrics and consider the broader implications of their investment decisions.

7. Food as Ground Zero: The Battleground for a Sustainable Future

"Food is Ground Zero."

The centrality of food. Our food system lies at the intersection of economic, environmental, and social issues. It is both a major contributor to global crises and a potential solution. By focusing on transforming our food system, we can address many of the most pressing challenges facing humanity.

Key battlegrounds in the food system:

• Soil health and carbon sequestration
• Biodiversity preservation
• Rural economic revitalization
• Public health and nutrition
• Food security and sovereignty

Slow Money sees food as the ideal starting point for reimagining our economy and our relationship with the natural world. By investing in sustainable food systems, we can create a model for a more regenerative and equitable economy.

8. Terroir vs. Globalization: Preserving Cultural and Biological Diversity

"The War on Terroir acts out violence of a less newsworthy kind—the intentional and unintentional violence of a global economy that unsettles communities and degrades the land."

Celebrating uniqueness. Terroir, the unique characteristics imparted to a product by its local environment, stands in stark contrast to the homogenizing forces of globalization. Slow Money champions the preservation of local distinctiveness in food, culture, and economic systems.

Aspects of terroir to preserve:

• Local food varieties and traditional production methods
• Regional culinary traditions
• Small-scale, place-based enterprises
• Indigenous knowledge and practices

By supporting enterprises that embody terroir, Slow Money seeks to counter the erosion of cultural and biological diversity driven by global industrial capitalism.

9. The Earthworm School of Investing: Learning from Natural Systems

"If we are going to make such understanding real, then we are going to have to make it real in the world of finance."

Biomimicry in finance. The Earthworm School of Investing proposes that we look to natural systems, particularly soil ecology, for guidance in redesigning our financial systems. This approach emphasizes the importance of diversity, interconnectedness, and cyclical processes in creating resilient economies.

Principles of earthworm investing:

• Focus on nurturing rather than extracting
• Emphasis on building fertility (both financial and ecological)
• Recognition of the value of "invisible" work (like that of soil microorganisms)
• Patience and long-term thinking

By aligning our investment practices with natural processes, we can create financial systems that enhance rather than degrade the ecosystems on which we depend.

10. Towards a Main Street Exchange: Reimagining Financial Markets

"We need a market that rewards humility and promotes patience and invites the participation of all those individuals who will sleep better at night knowing that some of their dollars are swirling around cyberspace a little bit slower."

A new financial infrastructure. The Main Street Exchange represents a radical reimagining of financial markets, designed to support local, sustainable enterprises and foster community resilience. This concept challenges the dominance of global stock exchanges and their focus on rapid growth and maximum profits.

Key features of the Main Street Exchange:

• Emphasis on local and regional investments
• Support for small and medium-sized enterprises
• Integration of social and environmental criteria in listing requirements
• Mechanisms to reward long-term holding and discourage speculation

By creating alternative financial structures that align with Slow Money principles, we can begin to shift capital flows towards more sustainable and equitable economic models.

Last updated: October 30, 2024