From Black to Blue

Professor Gunter Pauli says that an economy reaches sustainability when it is ensured that people's basic needs are met by using what is locally available. Focusing on this, he developed a new business model to supply high quality goods at cheap prices to the market. Pauli proved in practice that this business model can bring about many advantages besides business profits. He first developed the model in 1994, when he was taking part in the preparatory work for the Kyoto Protocol on climate change at the request of the United Nations.

In the last 20 years, Pauli has implemented almost 200 projects and created thousands of jobs. He proved that a business which carries out such a number of projects and provides employment can still be competitive in the international market and keep increasing their profits. It was contrary to the traditional model, where large corporations want to increase their production by seizing cheaper labor, taking advantage of the supply chain that allows a timely delivery of standard products. This traditional model leads to an increase in unemployment and widens gaps in society.

What Pauli's model says is that individuals and enterprises should adapt to the changes in their environment by further developing their original business ideas, and creating more businesses that have a positive impact on society. If a business seeks to achieve its full potential, it can create more interconnected businesses, which would increase the total positive benefits. Pauli proved it in practice with a coffee business. A business that mainly sells coffee started using grounds from its coffee to grow mushrooms, and made animal fodder out of the waste that came from the mushrooms. It brought two additional sources of income to the coffee business.

Besides additional sources of income, it also increases the cash flow of the local economy. It increases employment and boosts the purchasing power of residents, which helps the sales of other businesses.

When financial capabilities improve, there will be fewer funds allocated for social care in the public budget, and more will be available for construction and development projects. Almost 90 percent of the value added to the price of food products comes from international and domestic transportation. If food products are produced locally, it will remove the costs associated with transportation and allow for high quality products to be delivered at cheaper prices.

The mushrooms grown by using...