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1. Bringing practitioners, scholars, and the community together to help families throughout the world to become economically self-reliant. Brigham Young University Marriott School http://selfreliance.byu.edu

2. Providential Living, Environmental Stewardship and Economic Self Reliance By Donald L. Adolphson BYU Romney Institute of Public Management & Center for Economic Self Reliance Marriott School of Management Prepared for BYU Education week August 20, 2004

3. AGENDA • Introduction • Living within our Means • Principles of Self Reliance from the Scriptures and Modern Day Prophets • Waste and Prosperity • A Broad Framework for Economic Self Reliance • Brainstorming about Economic Self Reliance

4. Donald L. Adolphson, PhD • B.A. in Math, U.C. Berkeley, 1962-1966 • M.S.,PhD. Computer Science & Applied Math. U of Wisconsin, 1966-1970 • Professor, Graduate School of Business, University of Washington, 1970-1981 • Professor, Marriott School of Management, BYU, 1981-Present (1981-1996, Dept. of Bus Mgnt. 1996-2004, Romney Inst. of Public Management) • Faculty Advisory Committee for the Center for Economic Self Reliance (CESR) 2003 - Present

5. Education for Eternity • The uniqueness of BYU lies in its special role – education for eternity - … This means concern .. Not only for the ‘whole man’ but also for the ‘eternal man’ …. [BYU] has a double heritage – the preserving of knowledge of men and the revealed truth sent from heaven” President Spencer Kimball, 1968

6. The Future of BYU • “I am both hopeful and expectant that out of this university … there will rise brilliant stars in drama, literature, music, sculpture, painting, science, [management], and in all the scholarly graces. [BYU] can be the refining host for many such individuals who will touch men and women …” Spencer W. Kimball

7. Pursuit of Truth • “We do want BYU ever to become an educational factory. It must concern itself not only with the dispensing of facts, but with the preparation of its students to take their place in society as thinking, thoughtful, and sensitive individuals, who … come here dedicated to love of God, pursuit of truth and service to mankind.’ – Spencer W. Kimball

8. A Comprehensive Framework for Economic Self Reliance • Economic Self Reliance goes beyond sound money management • Economic Self Reliance goes beyond individuals and families

9. What ESR is • Economic self reliance is the ability of an entity to sustain economic well-being. • Entities may be individuals, families, communities, states, regions, or nations • Economic self reliance is an intermediate end • ESR facilitates entities pursuing their vision of the good in life.

10. What are the elements or ESR? • An entity that is self reliant has the ability to • garner the surplus resources that create well being • structure economic life to be (relatively) invulnerable to economic shock • Self Reliance = f (surplus generation, economic vulnerability)

11. Four Components of Economic Self Reliance • Philosophy and attitude of individual work and initiative • Creation of tangible resource stocks • Creation of intangible resource stocks • Control of known and probable risk (and also to anticipate and prepare for unforeseen risks)

12. Living within our Means: Two Perspectives • “We have a lot of things – cars, boat, four wheelers etc. but we pay for them with cash, and are refinancing our home mortgage to get it down to a 15 year mortgage.” • “We are stewards over all earthly goods, are accountable to God for the way in which we use those earthly goods which come to us.”

13. Relevant Scriptures • Deuteronomy 8:11-18 • D&C 59: 12-21 • D&C 104: 11-18 • Alma 30:17

14. Gift of the Good Land; Deut 8: 7:18 • God reminds the Israelites that he led them to a good land water and wheat and barley and oil olive and honey and brass and iron • Israel prospered in this good land and declared that “My power and the might of mine hand hath gotten me this wealth • God chastises the Israelites to “remember the Lord thy God: for it is he that giveth thee power to get wealth”

15. All Things for Benefit & Use of ManD&C 59:18-21 • Yea, all things which come of the earth, in the season thereof, are made for the benefit and the use of man, both to please the eye and to gladden the heart;Yea, for food and for raiment, for taste and for smell, to strengthen the body and to enliven the soul.And it pleaseth God that he hath given all these things unto man; for unto this end were they made to be used, with judgment, not to excess, neither by extortion.And in nothing doth man offend God, or against none is his wrathkindled, save those who confess not his hand in all things, and obey not his commandments.

16. The Lord’s Way:D&C 104 Stewardship & Accountability • 11 It is wisdom in me; therefore, a commandment I give unto you, that ye shall organize yourselves and appoint every man his stewardship;12 That every man may give an account unto me of the stewardship which is appointed unto him.13 For it is expedient that I, the Lord, should make every man accountable, as a steward over earthly blessings, which I have made and prepared for my creatures.14 I, the Lord, stretched out the heavens, and built the earth, my very handiwork; and all things therein are mine.

17. The Lord’s Own WayProviding for His Saints • 15 And it is my purpose to provide for my saints, for all things are mine. 16 But it must needs be done in mine own way; and behold this is the way that I, the Lord, have decreed to provide for my saints, that the poor shall be exalted, in that the rich are made low. 17 For the earth is full, and there is enough and to spare; yea, I prepared all things, and have given unto the children of men to be agents unto themselves.

18. The Lord’s Way:Caring for the Poor • 18 Therefore, if any man shall take of the abundance which I have made, and impart not his portion, according to the law of my gospel, unto the poor and the needy, he shall, with the wicked, lift up his eyes in hell, being in torment.

19. Korihor’s Way (Alma 30:17) • … there could be no atonement made for the sins of men • every man fared in this life according to the management of the creature; • therefore every man prospered according to his genius, • and that every man conquered according to his strength; • and whatsoever a man did was no crime.

20. The Arm of Flesh:Spencer W. Kimball • “Few men have ever knowingly and deliberately chosen to reject God and his blessings. Rather, we learn from the scriptures that because the exercise of faith has always appeared to be more difficult than relying on things more immediately at hand, carnal man has tended to transfer his trust in God to material things. (Spencer W. Kimball, Ensign, June 1976)

21. The Arm of Flesh (Continued) • Therefore, in all ages when men have fallen under the power of Satan and lost the faith, they have put in its place a hope in the ‘arm of flesh’ and in ‘gods of silver, and gold, of brass, iron, wood, and stone, which see not, nor hear, nor know’ (Dan. 5:23)—that is, in idols. This I find to be a dominant theme in the Old Testament. Whatever thing a man sets his heart and his trust in most is his god; and if his god doesn’t also happen to be the true and living God of Israel, that man is laboring in idolatry. (Ensign, June 1976)

22. Brigham Young’s Theory of Wealth • “The riches of the kingdom or nation do not consist so much in the fulness of its treasury as in the fertility of the soil and the industry of its people.” [Young, 1998 Priesthood Manual]

23. Three Sources of Wealth Identified by Brigham Young • Fertility of the soil • Industry of the People • Fulness of the Treasury

24. God’s Currency - Energy • Systems Ecologist Howard T. Odum, founder of Energy Systems theory, recognizes that energy is God’s currency, just as money is man’s currency • “Everything which we regard as being of real value has to be produced and maintained by work processes from the [physical] environment, sometimes helped by people and sometimes not”. H. T. Odum

25. Three Categories of Sources of Wealth • Natural Capital (Fertility of the Soil) – any work done for the benefit and use of man, independent of human interaction • Human Capital (Industry of the People) – any work done for the benefit and use of man by humans without the exchange of money • Financial Capital (Fulness of the Treasury) - any work done for the benefit and use of man by humans with the exchange of money

26. Financial Capital Natural Capital Human Capital Natural Capital Human Capital Financial Capital Relationship between Types of Capital CONVENTIONAL PERSPECTIVE ALTRENATIVE PERSPECTIVE

27. Nature’s Economy Informal Economy Formal Economy The Three Economies

28. Providential Living: A Public Sector Example, Three Economies • Curitiba Brasil is widely recognized as the most livable city in Brasil • This happened because of three decades of visionary leadership committed to principles of Providential Living • The catalyst for this transformation was an architect named Jaime Lerner

29. Jaime Lerner – 3 Time Mayor of Curitiba, Governor of Parana, Brasil Jaime Lerner1990: United Nations Environmental Award, awarded by the United Nations Environmental Program (UNEP) 1990: Annual Prize of the International Institute for Energy Conservation (IIEC) 1991: Scroll of Honor, Habitat, 1991 1991: Tree of Learning, IUCN, 1991 1996: Child and Peace Award, UNICEF 1997: Thomas Jefferson Medal, University of Virginia 2000: Prince Claus Fund Award, the Netherlands (2000) 2001: Pioneer 2001, International Council for Caring Communities (ICCC-USA) 2001: 2001 World Technology Award for Transportation, National Museum of Science and Industry, UK

30. Jamie Lerner as Mayor, Curitiba • Commitment: Invest in people and environment and not to spend money he didn’t have • Or • The familiar pioneer motto, ‘Fix it up, wear it out, make it do, or do without,” describes well the philosophy they used to lead Curitiba

31. Innovative Policies and Practices • Flood Control • Cleaning Fishing Bays • Rural Self Reliance • Lighthouse Libraries • Inviting New Industry • Transportation System

32. Bus Stop in Curitiba Brasil

33. Brigham Young on Waste • “Never let anything go to waste. • Be prudent, save everything, and what you get more than what you can take care of yourselves, ask your neighbors to help you consume. … • Never consider that you have enough around you to suffer your children to waste a crumb of it.

34. Brigham Young on Waste (Con’t) • If a man is worth millions of bushels of wheat and corn, he is not wealthy enough to … sweep a single kernel of it into the fire; • let it be eaten by something and pass again into the earth, and thus fulfill the purpose for which it grew. • Remember it, do not waste anything, but take care of everything.“

35. Providential Living: A Private Sector Example – Interface Inc. “Am I guilty of intergenerational tyranny, the most severe case of taxation without representation? …am I a thief too? He answered his own questions by declaring himself a plunderer of the earth and a legal thief, citing tax laws that encourage waste

36. Innovative Policies and Practices • Definition of Waste: Any input which doesn’t add value to the company • Design of Shanghai Factory – pumping fluid through several machines • Transformation of a Carpet Selling Company to a Floor Covering Service Company – Solenium • Attempts to Measure Company in “God’s Currency”

37. God’s Currency - Energy • Systems Ecologist Howard T. Odum, recognizes that energy is God’s currency, just as money is man’s currency • “Everything which we regard as being of real value has to be produced and maintained by work processes from the [physical] environment, sometimes helped by people and sometimes not”. H. T. Odum

38. God’s Currency vs. Man’s Currency • Financial Accounting methods track money – man’s currency – through organizations created by man • Environmental Accounting methods track energy – God’s currency – through ecosystems created by God

39. Three Steps to Building A Strong Economy • A Conservation Ethic • Technology that Supports Conservation of Valuable Resources • Entrepreneurism to Bring Innovation Conservation Products and Services to the Marketplace

40. All Things for Benefit & Use of ManD&C 59:18-21 • Yea, all things which come of the earth, in the season thereof, are made for the benefit and the use of man, both to please the eye and to gladden the heart;Yea, for food and for raiment, for taste and for smell, to strengthen the body and to enliven the soul.And it pleaseth God that he hath given all these things unto man; for unto this end were they made to be used, with judgment, not to excess, neither by extortion.And in nothing doth man offend God, or against none is his wrathkindled, save those who confess not his hand in all things, and obey not his commandments.

41. Comments, Questions, Ideas? • Thank You!