How to bring nature into economics | Ranjit Barthakur | TEDxRoyalGlobalUniversity

Key Concepts

• Natureomics: A subject created by the speaker, emphasizing the interdependence between nature and economics, aiming to integrate nature's value into economic frameworks.
• GDP (Gross Domestic Product): The conventional economic metric, criticized for solely valuing products and services monetarily, thereby overlooking nature's intrinsic and economic contributions.
• Green Development Index/Green Domestic Product: Proposed alternative economic indicators that would explicitly account for and value natural capital and ecological services.
• The Economics of Biodiversity: A book by Sir Partha Dasgupta, which provides detailed insights into the economic value derived from biodiversity, exemplified by pollination services.
• The Natural Wealth of Nations: A forthcoming book by the speaker, intended to establish a comprehensive valuation framework for nature, building upon and critiquing Adam Smith's original "Wealth of Nations."
• LEVWAC: An acronym representing Land, Energy, Waste, Water, Air, and Carbon, proposed as a holistic framework for understanding and managing natural resources, with an emphasis on community involvement.
• Project Karmayogi: A government initiative focused on training Indian Administrative Service (IAS) officers, with the aspiration of integrating Natureomics into its curriculum.
• Ecology is Economy: A fundamental principle articulated by the speaker, asserting that a healthy economy is inextricably linked to and dependent on a thriving ecological system.

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Speaker's Background and Passion for the Northeast The speaker, Ranjit, expresses a profound love for the Eastern Himalayas and every state within the region, including the Brahmaputra, Nagaland, Manipur, Mizoram, Arunachal, Sikkim, and Assam. He recounts his privilege in opening the Tata Institute of Social Sciences (TISS) in the region many years ago, finding immense joy in witnessing graduates arrive in their traditional "colors of home," which further deepened his affection for the vibrant culture. He identifies himself and everyone as a "product of nature," challenging anyone to identify something they use, eat, or where they sleep that is not derived from nature.

Critique of Nature's Undervaluation in Modern Economics Ranjit highlights a critical issue: nature is not respected because it is not valued, and it is not valued because the world's material focus prioritizes monetary worth. He points out that national economics primarily relies on GDP (Gross Domestic Product), which measures products and services by their monetary value, completely ignoring ecological contributions. He laments the absence of a "Green Development Index" or "Green Domestic Product," which would account for nature's value.

He illustrates this with a personal anecdote: when valuing his home in Guwahati, the appraiser only valued the building, dismissing the numerous trees and plants on his property as "of no use," thus assigning them no monetary value. This experience underscores the systemic failure to recognize nature's economic worth.

Introduction and Development of "Natureomics" Driven by this observation, Ranjit created the subject "Natureomics," which he defines as the interdependence between nature and economics. He notes a societal gap where, despite having students of art, law, games, and music, there is a distinct lack of "students of nature." He passionately states, "Ecology is economy. Without ecology, there's no economy," emphasizing that economic prosperity is impossible without a healthy ecological foundation.

Supporting Evidence and Collaborations To further develop Natureomics, Ranjit collaborated with significant figures:

• Sir Partha Dasgupta: Author of "The Economics of Biodiversity," who shared a study conducted at Walmart in the US. This study revealed that a single butterfly's pollination services contribute to 23% of Walmart's value (through apples, flowers, fruits, nuts). Furthermore, bees and butterflies collectively account for 35% to 60% of the turnover in the food section, demonstrating the immense, yet often invisible, economic contribution of biodiversity.
• Critique of Adam Smith: Ranjit points out that Adam Smith's "Wealth of Nations" (17th-18th century) laid the foundation for modern economics by focusing on land, labor, capital, and organization, which form the basis of GDP. However, Smith's framework conspicuously omits nature.
• Validation from Experts: Ranjit consulted Lord Nick, an economist from the London School of Economics, and two Nobel laureates, who affirmed the necessity of valuing nature. This led to the concept of a new book, "The Natural Wealth of Nations," which aims to create a framework for valuing nature to make it a central part of economic discourse.
• Previous Publications: The speaker mentions earlier books in the "Natureomics 1, 2, 3" series, including one on solar energy written 15-20 years ago with a young man from Nagaland named Tenzen, highlighting a long-standing commitment to these ideas.

The LEVWAC Framework To provide a structured approach to valuing nature, Ranjit proposes the "LEVWAC" framework. This acronym stands for:

• Land
• Energy
• Waste
• Water
• Air
• Carbon This framework is intended to encompass all aspects of the natural world, with the crucial addition that it must be "run by community," emphasizing local involvement and stewardship.

Current Initiatives and Future Aspirations Ranjit outlines several initiatives to promote Natureomics:

• 13th Natureomics Forum: For the first time in India's history, this forum will be held simultaneously across four prominent institutions: IIT, Royal Global, Cotton University, and Guwahati University. The forum aims to bring together teachers, students, corporates, legal professionals, and indigenous communities. A key objective is to ensure active participation, including providing translation methods for indigenous people, rather than just attendance. The goal is to secure the endorsement of these institutions, making Natureomics a recognized and sought-after field of study and application.
• Project Karmayogi: Ranjit expresses hope that Natureomics will be incorporated into Project Karmayogi, an initiative chaired by Mr. Ram Duray under the Prime Minister's office. This project trains current and new IAS officers, and its inclusion would integrate Natureomics into the core training of future administrators.

Conclusion and Main Takeaways Ranjit concludes by offering four guiding principles for life: acquire knowledge, try and get some money, and have fun, enjoying oneself. His overarching message is a call to fundamentally shift our economic perspective to recognize, value, and integrate nature's indispensable role, moving beyond a purely monetary GDP-driven worldview towards a sustainable, ecologically conscious future.