Emerging Alternative Practices of a Degrowth Inspired Food Production and Consumption Initiative in Central and Eastern Europe – Lessons Learned from a Hungarian Case Study

An insightful observation of modern ecological and socio-economic crisis draws attention to the failure of an economic model guided by the rules of neoclassical economics. A foundational declaration of ecological stress induced by the “Limits of Growth” was issued by the Club of Rome in 1972. Since this primary observation period, ecological problems have become decisively worse and better understood, with resulting devastation increasing in scope when also considering social and economic crisis in the 2000s. The market centered neoclassical logic for economics became dominant in the 19th century. This economic dogma has not only governed economic activity but consequently impacted social relationships and behavior, spawning a market centered society. Across the globe in recent decades civic resistance movements have appeared as oppositional forces to previously accepted definitions of economy and society. New complimentary research has attempted to quantify and elaborate alternative movements in greater detail in order to legitimize transition pathways the scattered groups personify. This research attempts to contribute to the growing body of academic work which identifies organizational logics which can achieve meaningful social, environmental and economic sustainability. It is argued that such organizational logics can lead to a higher level of well-being than in scenarios where profit-maximizing is prioritized.

Multiple theories have been established to outline sustainability goals. It is often the case that sustainability theories intend to smooth over the problems embedded within neoclassical economics by encouraging a more “enlightened” model of practice, essentially fixing neoclassic economic problems with existing market tools from its own neoclassical toolbox. This text argues that the failure of the neoclassical approach goes beyond its conceptual framework, and that a different paradigm is required to reach a better balance between society, economy and environment. Fortunately, alternative economic theories have arisen which provide a firm basis to find more sustainable pathways. One of them which has had the greatest influence on this text is Karl Polanyi’s substantive economy (Polanyi, 1997). Karl Polanyi (1997) developed the idea of the substantive economy which refers to the relation of how people can interact with their social, material and natural environment. He outlined that before the market economy became dominant, various forms of institutionalization of economy existed driven by different types of logic. These different types of institutional mechanisms are reciprocity, redistribution, market exchange and householding. He also argued that the dominance of one institutional logic concerning the relation between society and its natural and material environment can become socially and ecologically harmful.

Building on Karl Polanyi’s substantive view of economy this paper aims to explore what kind of institutional logics are present in a degrowth (Liegey et al., 2013) inspired social entrepreneurship. The paper explores how an organization can thrive with different goals beyond profit-maximization, and the practical possibility for integrating activities in a substantive way. The targeted social entrepreneurship case study subject called “Cargonomia” operates with reciprocal activities, redistribution and market exchange as well as with the aim to achieve a socially, environmentally and economically sustainable form of functioning. Based on degrowth principles or how to implement serene and democratic transition toward more social and environmental justice, more well-being, conviviality and autonomy, this project brings together local sustainable organic food production, low-tech “Do It Yourself” transport systems, self-management, direct trade, and reciprocity economy. Cargonomia is a cooperation between mainly three social entrepreneurships and cooperatives offering a space in the city center of Budapest for local organic food distribution, cargo bike sharing and distribution, and also a multifunctional open community space for meaningful activities (incubator for social and green entrepreneurship, repair cafe, action research center, headquarters of the organisation of the 5th International Degrowth conference, participatory democratic open cafe, e.g.). These diverse activities offer a great opportunity to analyze different types of horizontal organizational logics. It is suggested that the holistic degrowth approach to a diversity of complementary activities plays an impactful role in the resilience of this project, and others with similar goals.

In addition to presenting the practices of the case study subject, this paper highlights the challenges and limitations for such organizations, especially how they can survive while trying to present alternatives to the neo-classical economic system. One of the biggest obstacles faced by such organizations which do not operate led by traditional market logics is survival on the pathway to transition. The paper aims to identify how resilience mechanisms built within the Cargonomia model assist in allowing the initiative  to discover and occupy "new innovative space" with different meaning and function, within a dominant surrounding economic and societal model. The paper reveals how the alternative institutional logics utilized can help in forwarding transition within the present political and economic context. Based on the identification of its activities,  and the members’ relation to their natural and environmental surrounding, along with a summary of the core values of Cargonomia and a description of its limitations, this paper seeks to better characterize the Cargonomia model, and its strengths and limits in an interdisciplinary research format driven by the three co-authors.