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Re: Criteria for Sustainability Loans (fwd)
From: Allan Savory <allans@igc.apc.org>
Subject: Re: Criteria for Sustainability Loans
Thanks Jeff. I will pass this on also to some people in funding foundations
who I have long tried to interest in using holistic decision-making as the
best way to distribute the funds they are required to do by law. The third
or non-profit sector is such an important sector of our economy and it could
do so much more if all funding was directed in a manner which as socially,
environmentally and economically sound - or to projects which were.
Millions today is wasted in projects it would take only a short while to
show have no hope of really helping society.
At 09:27 PM 2/24/97 +0000, Jeff Goebel wrote:
>I received many requests for the seven guidelines I use to determine
>sustainability for loans and any other decisions that one makes.
>These guidelines help me and others I work with to determine if my
>decisions are socially, economic, and ecologically sound.
>
>First, I want to put these guidelines in perspective. In order to use
>these testing guidelines, one MUST know we you are (present situation)
>and where you are going (your goal). The goal MUST reflect everything
>that is important to you and include your desired quality of life, the
>conditions necessary to produce your quality of life, and a clear
>understanding of the conditions required to create sustainability.
>You must also understand, clearly, your present situation.
>
>If you do not have these two points in mind to test your actions, how
>do you know if the decision will move you where you want or not? And
>of course, because the ecosystem is not a system in which we know all
>of the parts, like a computer system, it is critical that we have a
>method to periodically check and ensure that we are indeed achieving
>our desired goal.
>
>Only now that you have clearly defined your desired future outcomes
>and your present situation in terms of social, economic, and
>ecological conditions, you are able to make decisions. This is where
>I use the "testing guidelines" to assist me and others into making
>decisions that are simultaneously socially, economically, and
>ecologically sound.
>
>Here are the seven criteria. Some measure only the success or failure
>of one element of my goal (social, economic, or ecological) but
>assessed as a whole, these tests give me a great indication, along
>with my continuous monitoring, of whether I am obtaining the desired
>future outcome.
>
>Test 1: Future Resource Base (Land and Human)
>If you take this action, will it lead toward or away from the future
>resource base described in your holistic goal?
>
>Test 2: Weak Link 1-2-3
>1 - If you take this action, will you encounter or create a blockage
>to progress? (Human processes) 2 - Does this action address the
>weakest link in the life-cycle of this organism? (Biological
>processes) 3 - Does this action strengthen the weakest link in the
>chain of production? (Financial processes)
>
>Test 3: Marginal Reaction
>Which action provides the greatest return, in terms of your holistic
>goal, for the time and money spent?
>
>Test 4: Cause and Effect
>Does this action address the root cause of the problem?
>
>Test 5: Energy/Money Source and Use
>Is the energy or money to be used in this action derived from the most
>appropriate source in terms of your holistic goal? Will the way in
>which the energy or money is to be used lead toward your holistic
>goal?
>
>Test 6: Gross Profit Analysis
>Which enterprises contribute the most to covering the overheads of the
>business?
>
>Test 7: Society & Culture
>How do you feel about this action now?
>Will it lead to the quality of life you desire?
>Will it adversely affect the lives of others?
>
>This decision making process is successfully used in many settings.
>Many ranchers and farmers are using it to attain social, economic and
>ecological success. Some communities are beginning to use it. I led
>the Colville tribe (a nation by all practical definitions) in using
>this process to make financial decisions about $200 million of annual
>resources, which testifies to how powerful this process can be in
>making better financial decisions that are also socially and
>ecologically sound.
>
>Lending organizations would be incredibly successful if they began
>using this process to make financial decisions, not only from a social
>and ecological perspective, but also from a financial perspective. We
>have medium scale ranchers in our Kellogg funded project through
>Washington State University that made money in the cattle business in
>1996 using this process.
>
>This decision making model was developed by Allan Savory. If you want
>more specific information, you can contact me, the Center for Holistic
>Management or buy the textbook titled "Holistic Resource Management"
>by Allan Savory.
>
>> Date: Wed, 19 Feb 1997 18:20:21 -0800 (PST)
>> Reply-to: sustainnw-l@listproc.wsu.edu
>> From: David Fuller <sol3az@igc.apc.org>
>> To: sustainable-development@civic.net,
>> sustainable-development <sustainable-development@civic.net>,
>> sustainnw-l <sustainnw-l@listproc.wsu.edu>,
>> DEVEL-L <DEVEL-L@AMERICAN.EDU>, ECOCITY
<ECOCITY@SEARN.SUNET.SE>,
>> RURALDEV <RURALDEV@ksu.edu>
>> Subject: Re: Criteria for Sustainability Loans
>
>> Do any of the list participants have information regarding
>> sustainability-based criteria for lending agencies? Lots of projects are
>> being floated at the city, state and regional level that are sold as
>> "sustainable" but are often using the term as a flag of convenience.
>>
>> Are there any outcome or performance based standards being developed that
>> conform to generally accepted principles of sustainability for lenders to
>> hold project developers to?
>>
>> Many thanks in advance, for your help.
>>
>> David Fuller
>> Executive Director
>> Learning Village Project, Tucson, AZ, USA
>>
>> P.S. Please cc to my email address.
>>
>>
>>
>
>
Allan Savory
Center for Holistic Management
1010 Tijeras NW
Albuquerque, NM 87102
505)842-5252 (505)843-7900 fax
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