Transformative Economies: what does it mean?

The idea behind the concept of  “Transformative economy” is an innovative approach that seeks to radically change traditional economic paradigms. The goal is to create a system that is not exclusively profit-oriented but places central emphasis on people’s well-being, environmental respect, and social equity. This approach focuses on empowering local communities, circular economy, environmental sustainability, and social justice.

A key point of transformative economy is the concept of co-creation. People are not just passive consumers but active participants in the production and distribution of goods and services, so that economic processes have a positive impact on multiple levels, from the environment to individual well-being.

Examples of Transformative Economy

1. Commons: Resources such as water, forests, and knowledge are collectively managed through participatory governance models that ensure fair and sustainable distribution, as seen in water resource management projects in many local communities.

2. Solidarity Economy: Networks of cooperative enterprises that prioritize fair labor and wealth redistribution, such as many agricultural cooperatives based on principles of social equity and environmental respect.

3. Circular Economy: Production models that promote waste reduction and material reuse, such as projects that regenerate raw materials from waste, eliminating the concept of waste itself.

4. B-Corps: Companies committed to high social and environmental standards, such as Patagonia or Natura, which integrate positive impact into their business mission.

5. Ethical Finance: Banking systems that favor ethical investments and sustainable projects, such as Banca Etica in Italy, which funds initiatives with social and environmental goals.

Since 2022, the Rethinkable Festival has focused on transformative economies, placing the need to rethink traditional economic models at the center of its agenda. Through workshops, roundtables, and interactive sessions, the festival has explored how the economy can be a tool to address global challenges such as climate crisis, social inequalities, and depletion of natural resources.

The festival provides a space to discuss alternative practices such as circular economy, ethical finance, and solidarity economy networks, encouraging active participation in creating sustainable solutions. In line with the principles of transformative economies, Rethinkable is committed to spreading ideas that shift attention from profit to collective well-being and social justice, promoting systemic change that is inclusive and environmentally respectful.

Through these discussions and practical activities, the Rethinkable Festival invites participants to reflect on their role in building an economy that can serve as a lever for cultural, social, and ecological transformation.

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If you want to deepen your knowledge of transformative economies, there are various online resources available in English:

1. The Center for the Advancement of the Steady State Economy (https://steadystate.org) provides resources and discussions on sustainable economic models, including circular economy and the principles of steady-state economics.

2. Social Economy Europe (https://www.socialeconomy.eu) is a platform that documents practices of social and solidarity economy and aims to promote a global agenda for a post-capitalist society.

3. Utopia (https://utopia.org) explores topics related to circular economy and transformative economies, aiming to promote sustainable practices and avoid greenwashing.

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Bibliography:

1. Latouche, Serge. “Farewell to Growth”. Polity Press, 2009.
2. Geissdoerfer, Martin, et al. “The Circular Economy – A new sustainability paradigm?” Journal of Cleaner Production, 2017.
3. B-Corp. “B Impact Assessment: A Guide for Businesses”. B Lab, 2021.
4. Klein, Naomi. “This Changes Everything: Capitalism vs. the Climate”. Simon & Schuster, 2014.
5. Raworth, Kate. “Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist”. Chelsea Green Publishing, 2017.