Wikipedia

Draft:Diamond Economics



Diamond Economics is an economic framework developed by Cynthia Reynolds, focusing on regeneration, inclusivity, and circularity. It seeks to transform traditional linear economic models into regenerative, circular systems that benefit people, communities, and the environment. This approach emphasises the importance of maintaining resources at their highest societal value, promoting long-term societal well-being over short-term financial gains. Diamond Economics applies systems thinking and aims to transition economies from linear models of extraction and consumption to regenerative, circular systems that benefit people, communities, and the planet.

Origins and Development

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Diamond Economics emerged from a decade-long project initiated by Locals.Global, a United Nations Environment Assembly accredited organisation based in Norway, dedicated to influencing global policy and creating actionable tools for local impact, registered as an official partnership with the United Nations, supporting the Sustainable Development Goals (SDGs). Diamond Economics was developed and conceived by Cynthia Reynolds and is a follow-up to a partnership event with the European Economic and Social Committee with the Circular Economy Coalition at the World Circular Economy Forum in 2024.

The concept emerged from an evolving discourse on sustainability and economic transformation, incorporating influences from various disciplines, including ecological economics, systems thinking, and innovation economics. Through Locals.Global's affiliation with international institutions and forums, Diamond Economics aims to bridge the gap between global policy and local action by providing concrete tools that foster economic resilience, social equity, and environmental regeneration.

See Influences (below)

Framework and Methodology

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At the heart of Diamond Economics is the DREAM Framework, a comprehensive tool designed to preserve resources at their highest societal value. The framework provides a structured approach to understanding and transforming economic systems by focusing on five key elements:

  • Domains (Where): The various contexts where circular systems operate, including geographic, industrial, societal, and digital domains.
  • Resources (What): The tangible and intangible assets that flow through the economy, including materials (biological and technical), energy, human labour, skills, knowledge, and financial capital.
  • Events (When): Processes or shifts that influence the generation, maintenance or degradation of the societal value of resources within the system.
  • Agents (Who): The individuals, organisations, and communities responsible for driving economic change and generating, maintaining or degrading the societal value of resources.
  • Mission (Why): The guiding purpose that aligns all actions, ensuring that resources are maintained at their highest societal value aligning purpose and profit.

The DREAM Framework offers a clear pathway for analysing and transforming economic systems, providing insights into how resources are distributed across different domains and how agents can act to promote long-term sustainability.

The Four Lenses

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Diamond Economics also employs Four Lenses to evaluate and guide decision-making and systemic transformation:

  • Systems Thinking: This lens highlights the interconnectedness of economic activities, encouraging a holistic view that recognises the broader social and environmental impacts of economic decisions. It facilitates an understanding of how different parts of the system interact and influence one another.
  • Innovation: Focused on creative problem-solving, this lens challenges traditional economic models by seeking new ways to generate value. It encompasses both technological innovations and the development of new business models and organisational structures that foster regeneration and equity.
  • Inclusivity: This lens ensures that economic transformation benefits all sectors of society, especially marginalised communities. It prioritises the involvement of diverse voices in shaping the future economy and strives for a more equitable distribution of resources and opportunities.
  • Governance: Effective governance is critical for guiding the transition from linear to circular systems. This lens emphasises transparency, accountability, and collaboration across sectors, ensuring that economic systems remain inclusive, regenerative, and fair at all levels.

Together, the DREAM Framework and the Four Lenses offer a robust methodology for fostering sustainable economic systems that balance ecological regeneration, social equity, and innovative growth.

Diamond Economics is versatile in its application, providing tailored solutions for sustainable development and economic resilience across various contexts. It plays a significant role in the Global South, helping regions vulnerable to external shocks and environmental degradation create self-sustaining economies. The framework emphasises circularity, social equity, and resilience, fostering long-term prosperity through Transition-to-Transformation Roadmaps.

Biodiversity/Security Nexus

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Nano-Meta Model

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Global South Focus

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Diamond Economics addresses the unique challenges faced by the Global South by promoting models of development that balance environmental stewardship with social justice. It emphasises the importance of locally adapted solutions that leverage indigenous knowledge, foster equitable access to resources, and build community resilience in the face of economic and ecological crises.

Through its adaptable roadmaps, Diamond Economics offers a practical framework for transitioning traditional economies toward more regenerative, equitable, and resilient systems, with a clear focus on sustainable long-term development.

Global Impact

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Diamond Economics is gaining recognition as a transformative framework that aligns with global efforts to combat climate change, promote equity, and achieve the United Nations Sustainable Development Goals (SDGs). Its emphasis on inclusivity and regeneration makes it particularly valuable for addressing the unique challenges faced by the Global South. By fostering collaboration between governments, businesses, and communities, Diamond Economics aims to build resilient economies that can thrive within planetary boundaries.

The framework development was presented in partnership with the European Economic and Social Committee in conjunction with the World Circular Economy Forum in 2024, in collaboration with the Circular Economy Coalition. Its development is part of a broader 10-year project led by Locals.Global, which integrates global policy influence with local, implementable tools designed to create real-world impact.

Criticism and Debate

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While the Circular Economy model has gained significant attention for promoting sustainability, critics have noted that its focus on technical solutions often overlooks the social dimensions of economic transition/transformation. Critics of the Circular Economy argue that it fails to adequately address issues such as social equity and inclusivity, particularly in terms of the distribution of costs and benefits between the Global North and Global South. Much of the discourse around the Circular Economy centres on the technical aspects of closing material loops and reducing waste, while neglecting the human and social implications of these changes. Critics argue that the model sometimes fails to account for issues such as social equity, inclusivity, and the uneven distribution of both costs and benefits, particularly between the Global North and Global South.

Diamond Economics addresses these gaps by integrating social equity at the core of its mission. One of the key distinctions of Diamond Economics is its emphasis on a just transition—ensuring that the shift to circular systems benefits all sectors of society, particularly marginalised communities that are often overlooked in traditional economic models. This is achieved by incorporating frameworks like the EU Social Economy Action Plan[1] (SEAP), which aims to build inclusive, socially-driven economies alongside the more widely recognised EU Circular Economy Action Plan[2] (CEAP). By prioritising social enterprises, cooperatives, and community-led initiatives, SEAP ensures that the economic transformation supports not only environmental sustainability but also social cohesion and empowerment.

Diamond Economics also goes beyond the common circular economy discourse by actively bridging the Global North and South in its vision for a just transition. While many circular economy frameworks are largely driven by the Global North, where the focus is often on reducing consumption and innovating new technologies, Diamond Economics brings attention to the unique challenges faced by the Global South. The framework advocates for equitable development paths that respect local cultures, leverage indigenous knowledge, and address global economic imbalances. This is crucial for fostering a regenerative global economy that uplifts rather than exploits vulnerable regions.

Another point that sets Diamond Economics apart is its commitment to bridging theory and action. While many economic models and frameworks remain at the theoretical level, Diamond Economics actively works to implement local, actionable tools that create real impact. This dual focus on policy influence and practical implementation is what enables Diamond Economics to foster tangible change in both local and global contexts. By aligning global policy frameworks with local initiatives, Diamond Economics ensures that high-level ideas are translated into actionable strategies that benefit communities on the ground.

Despite these strengths, challenges remain. Critics of Diamond Economics question whether its ambitious goals can be achieved at scale, particularly in economies still deeply entrenched in linear, extractive practices. There is also debate about the level of political and financial support required to implement such a comprehensive framework across diverse global regions. However, supporters argue that by integrating social and environmental imperatives and by fostering collaboration between the Global North and South, Diamond Economics provides a more holistic and realistic approach to achieving long-term sustainability and equity.

Influences

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Diamond Economics draws from established frameworks and approaches that focus on sustainability, regeneration, and inclusive economic transformation. Its foundational concepts are informed by the principles of the circular economy, systems thinking, and regenerative cultures.

Key frameworks influencing the development of Diamond Economics include:

  • Circular Economy: Insight from Walter Stahel, The Circular Economy: A User's Guide (2019)​; and Ken Webster, The Circular Economy: A Wealth of Flows (2017)​ underpin the focus on resource management and circularity within economic systems.
  • Systems Thinking and Innovation: Influenced by thinkers like Donella Meadows, Thinking in Systems: A Primer (2008)​ and Mariana Mazzucato, Mission Economy: A Moonshot Guide to Changing Capitalism (2021), the framework emphasises interconnected systems, innovation, and mission-driven approaches to societal challenges.
  • Regenerative and Inclusive Approaches: The work of Daniel Wahl on regenerative cultures, along with Elinor Ostrom's research on commons governance and Christopher Alexander's design patterns, shapes the focus on long-term resilience and inclusive economic design.

Other influences include Kate Raworth, Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist (2017) and Sandrine Dixson-Declève et al., Earth for All: A Survival Guide for Humanity (2022), which guide the framework's alignment with social and environmental boundaries, especially regarding equity between the Global North and South. Additionally, Otto Scharmer, The Essentials of Theory U (2018)​ and Richard D. Lewis, When Cultures Collide work on cross-cultural communication further inform Diamond Economics' emphasis on adaptive, inclusive, and collaborative economic practices.

About Cynthia Reynolds

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Cynthia Reynolds is a Canadian societal entrepreneur, recognised for her leadership in circular economy development. Based in Norway, she founded and convenes the Circular Economy Coalition and serves as an advisor to the European Union's Shared Green Deal. Cynthia is an active member of seven EU Circular Economy Leadership Groups and sits on the Strategic Foresight Board for the Circular Economy Alliance and founder Locals.Global.

An autodidactic polymath, Reynolds developed the Diamond Economics framework, along with its digital assets and an innovative platform for collecting data through living case studies. Reynolds has been recognised for her contributions to the circular economy, including being named one of the Top 100 Women Social Entrepreneurs[3] by Euclid Network in 2022 and the Transformative Partnership Award[4] in 2024. She is also a Fellow of the Royal Society of Arts (RSA), underscoring her dedication to fostering social progress through creative and innovative approaches. Reynolds has focused her work on guiding economic transformations by developing tools to make complex concepts more accessible.

Background and Origins

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Diamond Economics is the culmination of decades worth of research and development emerging from a global discourse on the circular economy, sustainability, and economic transformation. Cynthia’s work, including her leadership in establishing Circular Regions, laid the foundation for Diamond Economics. This framework evolved through a series of international collaborations, events, and partnerships focused on circular systems and social equity.

References

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  1. ^ "SEAP - European Commission".
  2. ^ "COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS a new Circular Economy Action Plan for a cleaner and more competitive Europe". 2020.
  3. ^ "Top 100 Women in Social Enterprise 2022 Introducing Women Trailblazers". 4 March 2022.
  4. ^ "Transformative Partnership Award › Collective Leadership Institute".
  5. ^ https://circulareconomy.europa.eu/platform/sites/default/files/2024-09/2024-09-19-how-the-circular-economy-can-revive-the-sdgs-schr%C3%B6der-barrie.pdf
  6. ^ Smart City Expo World Congress (2019-12-13). Circular Economy & Innovation in Waste Management. Retrieved 2024-10-06 – via YouTube.
  7. ^ "Circular Regions – Cynthia Reynolds". is4ce.org. Retrieved 2024-10-06.
  8. ^ "Cynthia Reynolds on Circular Regions - P2P Foundation". wiki.p2pfoundation.net. Retrieved 2024-10-06.
  9. ^ Circular Regions (2020-09-28). Main Stage & Cities and Regions track - CIRCULAR @ Oslo Innovation Week (OIW2020). Retrieved 2024-10-06 – via YouTube.
  10. ^ "A multi-stakeholder Circular Economy". The Innovation in Politics Institute. Retrieved 2024-10-06.
  11. ^ Circular Regions (2020-09-28). The Power of Networks - CIRCULAR @ Oslo Innovation Week (OIW2020). Retrieved 2024-10-06 – via YouTube.
  12. ^ Circular Berlin (2021-05-03). Circular Hubs across Europe: Cynthia Reynolds, Founder of Circular Oslo & Circular Regions. Retrieved 2024-10-06 – via YouTube.
  13. ^ Circular Regions (2021-03-22). Circular Regions Launch - circularregions.org. Retrieved 2024-10-06 – via YouTube.
  14. ^ ECESP Circular Economy (2023-01-26). #EUCircularTalks: From local to global: how procurement could drive a just transition. Retrieved 2024-10-06 – via YouTube.
  15. ^ admin (2022-06-07). "Signing of MoU with Circular Regions, Norway". Retrieved 2024-10-06.
  16. ^ "Speakers | ICEF-2022 | India Circular Economy Forum". 2021-11-07. Retrieved 2024-10-06.
  17. ^ "Oslo Circular Economy - Oslo Runway".
  18. ^ "Cynthia Reynolds". European Circular Economy Stakeholder Platform. 2022-09-16. Retrieved 2024-10-06.
  19. ^ "Cynthia Reynolds". Euclid Network. 2022-03-01. Retrieved 2024-10-06.
  20. ^ "Locals.Global - SMART CIRCULAR REGIONS & COMMUNITIES - United Nations Partnerships for SDGs platform". sustainabledevelopment.un.org. Retrieved 2024-10-06.
  21. ^ Padalkina, Dina (2021-05-04). "Circular Hubs across Europe - what you missed". Circular Berlin. Retrieved 2024-10-06.
  22. ^ "#EUCircularTalks: The role of cities to boost the circularity of food systems". Nordic Circular Arena. Retrieved 2024-10-06.
  23. ^ OECD (2020-03-31). List of stakeholders consulted during the policy dialogue (Report). Paris: OECD.
  24. ^ "Tech Show London reveals Mainstage agenda featuring leading tech luminaries". Techerati. 2024-02-26. Retrieved 2024-10-06.
  25. ^ "Circularity4All: a hierarchy for resource use and regional ecosystems". WCEF2024. Retrieved 2024-10-06.
  26. ^ "discussion event on Critical perspectives on circular economy – FINI, Fakulteta za industrijski inženiring". www.fini-unm.si. Retrieved 2024-10-06.
  27. ^ Casapu, Ioana; Dippon, Mathis (2021-07-19). "Circling back to the benefits of a Circular Economy". The Innovation in Politics Institute. Retrieved 2024-10-06.
  28. ^ "Circular Regions - Circular Economy Coalition | Department of Economic and Social Affairs". sdgs.un.org. Retrieved 2024-10-06.
  29. ^ ECESP Circular Economy (2022-03-10). CEStakeholderEU Conference 2022 - Workshop 2D – Extended Producer Responsibility Schemes. Retrieved 2024-10-06 – via YouTube.
  30. ^ "Circular Cities and Regions Initiative - Webinar Series". canadiancircularcities.ca. Retrieved 2024-10-06.
  31. ^ "#EUCircularTalks: The role of Network Governance and circular economy hubs in the EU circular transition". Holland Circular Hotspot. Retrieved 2024-10-06.
  32. ^ "#EUCircularTalks: Accelerating circular behaviours: How can digitalisation help us? – Twin Revolution". 2022-09-08. Retrieved 2024-10-06.
  33. ^ "ECESP Annual Conference Workshop: Economic incentives". European Circular Economy Stakeholder Platform. 2020-09-25. Retrieved 2024-10-06.

External linke

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