The economy plays a crucial role in shaping various systems and institutions in our society. The current economic model, which prioritizes profit maximization, can have negative consequences on individuals and communities, compromising democracy and laws. Restorative economics offers an alternative approach, emphasizing community building, incorporation, and abundance.
Nwamaka Agbo, a restorative economic practitioner, believes that the economy acts as a framework for discussing equity and justice. Through community organizing, policymaking, and advocacy work, practitioners like Agbo are working to establish self-determined and prosperous communities.
Restorative economics invites different communities to come together and re-imagine new ways of becoming grounded. The initiative prioritizes community building over competition, incorporation over segregation, and abundance over insufficiency. However, the current economic and climate systems are facing a crisis point, with income inequality and climate disruption on the rise.
Communities of color and low-income individuals are particularly vulnerable to the wealth gap and discrimination. The extraction of labor and wealth by those in power has debilitated these communities for decades. The discrimination and racial gap have become converging catastrophes for those who have been enduring it for ages. In addition, corporate lobbyists, voter suppression, and laws such as Citizens United further compromise democracy.
The restorative economy aims to create an economic system that can heal the harm and restore communities, promoting a more prosperous country. It is essential for those in power to build equitable governance structures and frameworks to ensure marginalized communities have a say in important discussions. Without such efforts, democracy and humanity will continue to suffer.
The role of restorative economics
Restorative economics is essential in addressing the overwhelming income, status, and wealth inequality in society and the resulting climate disruption that threatens to collapse the economic structure. This approach focuses on reconciliation, accountability, and restitution to heal and develop communities, particularly those that have been exploited and dislocated.
Restorative economics can help decision-makers place marginalized communities in a better position by using restorative economic practices and policies. This will allow everyone to find opportunities and thrive with self-respect.
Communities have the power to create and shape an equitable economy, and the transition towards self-determined and communal prosperity through governance and shared community ownership. This approach relies on a mindset that reduces scarcity and creates abundance.
Restorative economics can play a vital role in eliminating the wealth gap that disenfranchises and disempowers the current economic system. It can create a new way to approach the economy that prioritizes investments of resources into impacted populations. Nwamaka’s focus is on constructing a transition that moves away from patterns of capitalism and economic oppression that have harmed and marginalized communities and placed wealth and power with selected individuals.
Restorative economics primarily focuses on:
- Building up communities: Moving away from an economic system that extracts resources and people from shared communities, and instead, focuses on regenerating and strengthening them.
- Community-controlled governance: Transforming a system where wealth and power dictate decisions, policies, and community governance to one where the community has a greater say and the system prioritizes improving the lives of the population, such as providing accessibility for people with disabilities.
- Prosperity for all: Shifting from an approach that prioritizes the accumulation and distribution of wealth among a few to one that supports shared prosperity by reinvesting community profits for the benefit of all.
- Inclusion: Moving away from a system that excludes certain individuals or groups from participating in the economy and governance, to models that provide meaningful participation and representation for all.
How restorative economics works
Restorative economics is a methodology and philosophy that uses community-governed and community-owned projects to bring people together and promote shared prosperity, as well as collective power.
“Restorative economics is not just about fixing problems, it’s about creating a new economic system that is more just, equitable, and sustainable for all.” – Dr. Gar Alperovitz, political economist and author
Restorative economics is a powerful tool for fostering cultural and political power for affected communities through progressive design, process, and beneficial outcomes. One key aspect of restorative economic is investing in human development and capacity building, which can help to promote justice and equity. A study by the Corporation for Enterprise Development found that communities of color have on average just 10 cents of wealth for every dollar of wealth held by white households. Restorative economics is a way to help close this gap and promote prosperity for all.
Bottom line
Restorative economics thinking addresses some of the most pressing and ingrained challenges within local communities. From affordable housing to the value of labor, it encompasses every aspect needed to create a community that grows and thrives together.
It is important to recognize the significance of restorative economics in addressing issues such as income inequality, climate disruption, and discrimination. This approach has the potential to transform the current economic system and provide equal opportunities for all, regardless of race, gender, or financial status.
Now is the time to take action and fully embrace restorative economics as a means to creating a more just and equitable society. Each of us can play a role in this transition by supporting community-governed and community-owned projects, investing in human development and capacity building, and raising awareness about the potential of restorative economics.
