Regenerative Community Action Network
RegenCAN & the
8 Forms of Capital
The 8 Forms of Capital framework draws inspiration from the permaculture ethos, emphasising the natural operation of dynamic systems and their potential synergy. This approach involves designing models for prosperity by concurrently engaging in multiple areas, steering away from a singular focus, such as financial gain. The key lies in cultivating positive feedback loops that amplify progress towards various goals.
For instance, individuals can develop skills beneficial to their community. This not only garners professional support but also prompts reciprocal services without charge. Intriguingly, the 7 types of well-being, encompassing various life dimensions, align with the 8 Forms of Capital.
Contrary to the belief that financial wealth guarantees happiness and well-being, studies reveal that the quality of personal relationships exerts a more significant impact on one’s state of well-being. Well-being, extending beyond the absence of illness, encompasses physical, mental, emotional, and social health factors. It is intricately tied to happiness and life satisfaction, reflecting an individual’s sentiments about themselves and their life.
The micro BLITZ Time Exchange adopts the 8 Forms of Capital framework to guide its members toward a holistic perspective on wealth. This choice is rooted in the understanding that an exclusive focus on monetary wealth can cloud judgment and hinder the development of a well-rounded approach to prosperity.
A balanced approach to well-being and prosperity proves transformative, enabling someone in indigence to construct a considerably improved life compared to a lottery winner lacking such equilibrium. Leveraging the 8 Forms of Capital framework, along with the dynamics of the FD+ Compact and the micro BLITZ Time Exchange, empowers indigent individuals to escape poverty and thrive.
Social Capital
Possessing numerous social connections and a robust network of individuals ready to offer assistance or support signifies a strong presence of social capital. An individual or entity endowed with ‘good social capital’ holds the ability to request favours, sway decisions, and communicate effectively.
The cultivation of social capital is not driven by a desire for financial gain or obtaining services without cost. Instead, it is rooted in one’s conduct and willingness to contribute, fostering a reciprocal environment where others are eager to assist because they recognise the merit. This dynamic is not a straightforward transaction; rather, it forms a social bond based on mutual respect and generosity.
Material Capital
Physical possessions and objects that individuals own represent a distinct form of capital. This encompasses everything from basic raw materials like timber to more sophisticated items such as computers, cameras, cars, houses, and various consumer goods. Essentially, any tangible possession falls under the category of material capital.
Financial Capital
Financial capital, a concept familiar to us, includes money, currencies, securities, and other instruments integral to the global financial system. It serves as our principal tool for facilitating the exchange of goods and services among individuals.
Living Capital
Permaculture design imparts principles and methodologies for the swift generation of living capital. It advocates for the sharing of the abundance found in living capital, emphasising its tangible elements like animals, plants, water, and soil, which constitute the essential foundation for life on our planet, as opposed to the more abstract ‘wealth’ represented by financial capital.
Intellectual Capital
Intellectual capital can be defined as a valuable ‘knowledge’ asset. The predominant emphasis within the present global education system revolves around augmenting intellectual capital, regardless of whether it proves to be the most advantageous form of capital for fostering resilient and flourishing communities. Conforming to societal norms, possessing intellectual capital is often perceived as the pathway to success. This perspective leads to a significant number of individuals exchanging money for the acquisition of additional intellectual capital.
Experiential or Human Capital
The optimal method for acquiring knowledge involves a harmonious combination of intellectual and experiential capital. Our experiential capital grows as we actively engage in organising community projects, constructing a strawbale house, or completing a permaculture design.
Spiritual Capital
Included in spiritual capital is your comprehension of yourself and your role in the universe. Cultivating spiritual capital involves opening doors through awareness and mindfulness with yourself and others. Engaging in moments of contemplation with nature and establishing connections with your surroundings serves as a pathway to accessing this wellspring of spiritual capital.
Cultural Capital
Cultural capital encompasses the collective internal and external dynamics of a community, including its art and theatre, the universally learned songs, and the capacity to unite in celebration of events like the harvest or religious holidays. It’s important to note that cultural capital is not something individuals can amass independently.
Why it Matters to RegenCAN Members
Reducing reliance on financial capital represents a significant stride towards resilience within a money-centric system. Consequently, it is crucial for both impoverished individuals and society to explore alternatives, extending beyond alternative currencies and local trade systems. By recognising, establishing, and valuing various forms of capital, we pave the way for the creation of a flourishing and socially equitable society.
