Towards the Circular Economy

Towards the Circular Economy



Circular Economy in reuse of

  • Metals
  • Plastics
  • Paper and Paper Board
  • Glass
  • Rubber
  • Wood/Timber/Construction Composites
  • Textiles
  • Organic Waste/Food/Agricultural/Biological




Key points

  • Keeping materials longer in the economy through reuse, re-purposing or recycling could reduce 33 per cent of the carbon dioxide emissions embedded in products.
  • Circularity requires a significant bridge between trade in goods and trade in services.
  • Increased recycling could reduce demand for primary resources, leading to both risks and opportunities in developing countries dependent on the extraction of natural resources.



Linear production is a familiar cycle. Resources are extracted and transformed into goods and services, sold and used, after which they are scrapped. This model has underpinned the expansion of the global economy since the industrial revolution.

It has linked material prosperity to the extraction of resources, yet has often overlooked the undue pressures placed on the environment and has rarely considered the cost of handling, scrapping and disposing of used materials, some of which are hazardous to human health. As the global population increases, incomes rise and nations strive to eradicate poverty, demand for goods and services will necessarily grow. The aim of achieving Sustainable Development Goal 12 on responsible consumption and production requires changing the linear production model. The concept of a circular economy and practice therefore merits close attention, as it can open new opportunities for trade and job creation, contribute to climate change mitigation and help reduce the costs of cleaning and scrapping in both developed and developing countries.

A circular economy entails markets that give incentives to reusing products, rather than scrapping them and then extracting new resources. In such an economy, all forms of waste, such as clothes, scrap metal and obsolete electronics, are returned to the economy or used more efficiently. This can provide a way to not only protect the environment, but use natural resources more wisely, develop new sectors, create jobs and develop new capabilities.

Each year, 1.3 billion tons of garbage are produced by 3 billion urban residents.1 This is the end point of a linear economic flow that starts with manufacturing, which uses 54 per cent of the world’s delivered energy, especially in energy-intensive industries such as petrochemicals, cement, metals and paper.2 Each year, 322 million tons of plastic, 240 million tons of paper and 59 million tons of aluminium are produced in the world, much of which goes to export markets and is not recycled.3

A rusty container or an obsolete mobile telephone are only two examples of the many products that end up being discarded, along with their transistors, metal structures and complex plastics. Each component requires a great deal of energy, time, land and capital to be produced and, even as the products become obsolete, their components often do not. The potential value of metals and plastics currently lost in electronic waste may be €55 billion annually.4

As the supply of recycled, reused and re-manufactured products increases, such products are maintained for longer in the economy, avoiding their loss to landfills. Food losses could be halved through food- sharing and discounting models that reduce fresh food waste. Access to efficient home appliances could be increased through leasing instead of sales. Organic waste could be recovered or transformed into high-value protein through the production of insect larvae.

Benefits such as these could be gained by both developed and developing countries; the potential economic gains are estimated at over $1 trillion per year in material cost savings.5 Several economies are already exploring circular strategies, including Brazil, China, India, Kenya, the Lao People’s Democratic Republic, Morocco, South Africa, Turkey, Uruguay, VietNam and the European Union.6 India and the European Union stand to gain savings of $624 billion and €320 billion, respectively.7

The effects of increased recycling on global value chains are an important area for research. For example, a circular model for metals implies an increase in the re-purposing, reuse and recycling of such materials. This can transform end points of the value chain, such as junkyards and dumping sites for metals, into new reprocessing hubs that supply metals to markets. This growth trend in recycling markets may be desirable from an environmental perspective, yet could reduce demand for primary resources, requiring an adjustment in employment, logistics and scal structures in countries dependent on the extraction of natural resources.8 At the same time, growth in the recycling, re-purposing and reuse of materials could support the emergence of regional reprocessing and recycling hubs and open new opportunities for the commodities and manufacturing sectors. Greater circularity could reduce the depreciation of physical capital in the economy, increasing overall wealth in societies. The specific benefits that developing countries could obtain by adopting formal circular economy strategies is a new subject for research, and further studies and data are needed.


Circularity can change trade patterns and improve the utilization of idle capacity

Circular models could help countries grow with resources already available in their territories. This may imply a reduction in international trade, yet the 140 million people joining the middle class each year guarantee growth in overall trade.9 Such growth may occur not in goods but in services such as access-over-ownership models.10 In addition, increased circularity can change production patterns, improving asset utilization rates and producing value chains based on recycling and re-manufacturing centres close to where products are used. This could lead to fewer transport-related losses, quicker turnarounds between orders and deliveries, lower levels of carbon dioxide emissions and the creation of jobs that cannot be offshored.

Some countries have trade surpluses in physical goods and others in immaterial services. Trade therefore results in a net transfer of materials from one region to another as seen, for example, in trade patterns between China and the United States. The United States imports many goods from China but does not export nearly as many finished goods in return. However, nearly 3,700 containers of recyclables per day are exported to China; in 2016, such exports amounted to 16.2 million tons of scrap metal, paper and plastics worth $5.2 billion.11


Key Terms:

  • Circular Economy
  • Cradle to Cradle
  • Closed Supply Chains
  • Industrial Ecology
  • Reverse Ecology
  • Blue Economy
  • Regenerative Design
  • Performance Economy
  • Natural Capitalism
  • Bio-mimicry
  • Doughnut Economics



From Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union




Circular Economy System Diagram




From Towards the Circular Economy: Accelerating the scale-up across global supply chains



Comprehensive Concept of Circular Economy


From Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union


From Taking the Circular Economy to the City Level


Please see my related post:

Resource Flows: Material Flow Accounting (MFA), Life Cycle Analysis (LCA), Input Output Networks and other methods

Stock Flow Consistent Input Output Models (SFCIO)

Stock Flow Consistent Models for Ecological Economics

Jay W. Forrester and System Dynamics


Key Sources of Research:

Ellen MacArthur Foundation






Circular economy booklet

 Ellen MacArthur Foundation







Economic and business rationale for an accelerated transition

Ellen MacArthur Foundation


Volume 1




Opportunities for the consumer goods sector


Ellen MacArthur Foundation


Volume 2





Accelerating the scale-up across global supply chains

Volume 3


Ellen MacArthur Foundation






Towards the Circular Economy: Accelerating the scale-up across global supply chains

World Economic Forum

Prepared in collaboration with the Ellen MacArthur Foundation and McKinsey & Company

January 2014


rethinking value chains to boost resource productivity




Circular Economy in Cities

Evolving the model for a sustainable urban future


Towards a circular economy: A zero waste programme for Europe

DG Environment

Minsk, 8 October 2014





Transitioning IKEA Towards a Circular Economy: A Backcasting Approach

Claudia Szerakowski

Master’s Thesis in Industrial Ecology





Circular Economy Industry Roundtable:




Sustainable Supply Chain Management and the transition towards a Circular Economy: Evidence and some Applications.

Genovese, Andrea and Acquaye, Adolf and Figueroa, Alejandro and Koh, S.C. Lenny






Are you ready for the circular economy? The necessity of an integrated approach.





Barriers & Drivers towards a Circular Economy

Literature Review A-140315-R-Final

March 2015


The Circular Economy Powered by Cradle to Cradle®




 Towards a Circular Economy

Venkatachalam Anbumozhi Jootae Kim




Circular Economy

European Commission






Business Sweden






Oliver Wyman




Transition towards a circular economy: The case of the Metropole region Amsterdam

Jacqueline Cramer

Ambassador Circular Economy





The Circular Economy – a new sustainability paradigm?

Geissdoerfer, Martin1,2†; Savaget, Paulo1; Bocken, Nancy M.P.1,2; Hultink, Erik Jan2






SS8: Circular economy and decoupling




Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union


May 2017




The European Economy: From a Linear to a Circular Economy

Florin Bonciu










The opportunities of a circular economy for Finland

October, 2015




Circular economy

A review of definitions, processes and impacts














Report on State-of-the-Art Research in the Area of the Circular Economy


Sylvie Geisendorf

Felicitas Pietrulla ESCP Europe Campus Berlin




A Wider Circle? The Circular Economy in Developing Countries





A safe and just space for humanity


Kate Raworth




Doughnut Economics: seven ways to think like a 21st century economist

Kate Raworth


Taking the Circular Economy to the City Level






Mapping the Political Economy of Design

Dr. Joanna Boehnert

Research Fellow
Centre for the Evaluation of Complexity Across the Nexus University of Surrey




A circular Economy





Rethinking Sustainability in Light of the EU’s New Circular Economy Policy

JULY 03, 2018





Resource Efficiency & Circular Economy Project






by Andrew McCarthy, Rob Dellink, and Ruben Bibas







A European Strategy for Plastics in a Circular Economy





The New Plastics Economy

Rethinking the future of plastics






MARCH 2017








May 2018





The circular economy: Moving from theory to practice

McKinsey Center for Business and Environment Special edition,

October 2016





Renewable materials in the Circular Economy

April 2018




A Review of the Circular Economy and its Implementation

Almas Heshmati

Sogang University and IZA




Rethinking finance in Rethinking nance in a circular economy

Financial implications of circular business models







The Circular Economy in International Trade







Circular economy:
a commentary from the perspectives of the natural and social sciences





Circular by design

Products in the circular economy






Ellen MacArthur Foundation


The Hidden Geometry of Trade Networks

The Hidden Geometry of Trade Networks


From The hidden hyperbolic geometry of international trade: World Trade Atlas 1870–2013



Key Terms:

  • Trade Networks
  • Complex Networks
  • Preferential Attachment
  • Positive Feedback
  • Fractals
  • Power Laws
  • Hyperbolic Geometry
  • Economic Geography
  • Regional Trading Blocks
  • Bilateral Trade
  • Multilateral Trade
  • Free Trade Agreements
  • Metabolism of a City
  • Metabolism of a Nation
  • Metabolism of the World
  • Industrial Ecology
  • Social Ecology
  • Growth and Form



From The hidden hyperbolic geometry of international trade: World Trade Atlas 1870–2013

Here, we present the World Trade Atlas 1870–2013, a collection of annual world trade maps in which distance combines economic size and the different dimensions that affect international trade beyond mere geography. Trade distances, based on a gravity model predicting the existence of significant trade channels, are such that the closer countries are in trade space, the greater their chance of becoming connected. The atlas provides us with information regarding the long-term evolution of the international trade system and demonstrates that, in terms of trade, the world is not flat but hyperbolic, as a reflection of its complex architecture. The departure from flatness has been increasing since World War I, meaning that differences in trade distances are growing and trade networks are becoming more hierarchical. Smaller-scale economies are moving away from other countries except for the largest economies; meanwhile those large economies are increasing their chances of becoming connected worldwide. At the same time, Preferential Trade Agreements do not fit in perfectly with natural communities within the trade space and have not necessarily reduced internal trade barriers. We discuss an interpretation in terms of globalization, hierarchization, and localization; three simultaneous forces that shape the international trade system.

From The hidden hyperbolic geometry of international trade: World Trade Atlas 1870–2013

When it comes to international trade, the evidence suggests that we are far from a distance-free world. Distance still matters1 and in many dimensions: cultural, administrative or political, economic, and geographic. This is widely supported by empirical evidence concerning the magnitude of bilateral trade flows. The gravity model of trade2–4, in analogy to Newton’s law of gravitation, accurately predicts that the volume of trade exchanged between two countries increases with their economic sizes and decreases with their geographical separation. The precision of that model improves when it is supplemented with other factors, such as colony–colonizer relationships, a shared common language, or the effects of political borders and a common currency5–7. Despite the success of the gravity model at replicating trade volumes, it performs very poorly at predicting the existence of a trade connection between a given pair of countries8; an obvious limitation that prevents it from explaining the striking regularities observed in the complex architecture of the world trade web9–13. One of the reasons for this flaw is that the gravity model focuses on detached bilateral relationships and so overlooks multilateral trade resistance and other network effects14.

Another drawback of the classical gravity model is that geography is not the only factor that defines distance in international trade. Here, we use a systems approach based on network science methodologies15,16 to propose a gravity model for the existence of significant trade channels between pairs of countries in the world. The gravity model is based on economic sizes and on an effective distance which incorporates different dimensions that affect international trade, not only geography, implicitly encoded on the complex patterns of trade interactions. Our gravity model is based on the connectivity law proposed for complex networks with underlying metric spaces17,18 and it can be represented in a pure geometric approach using a hyperbolic space, which has been conjectured as the natural geometry underlying complex networks19–22. In the hyperbolic trade space, distance combines economic size and effective distance into a sole distance metric, such that the closer countries are in hyperbolic trade space, the greater their chance of becoming connected. We estimate this trade distance from empirical data using adapted statistical inference techniques23,24, which allow us to represent international trade through World Trade Maps (WTMs). These define a coordinate system in which countries are located in relative positions according to the aggregate trade barriers between them. The maps are annual and cover a time span of fourteen decades. The collection as a whole, referred to as the World Trade Atlas 1870–2013, is presented via spatial projections25, Table S5, and trade distance matrices, Table S6. Beyond the obvious advantages of visualization, the World Trade Atlas 1870–2013 significantly increases our understanding of the long-term evolution of the international trade system and helps us to address a number of important and challenging questions. In particular: How far, in terms of trade, have countries traveled in recent history? What role does each country play in the maps and how have those roles evolved over time? Are Preferential Trade Agreements (PTAs) consistent with natural communities as measured by trade distances? Has the formation of PTAs led to lesser or greater barriers to trade within blocs? Is trade distance becoming increasingly irrelevant?

The answers to these questions can be summarized by asserting that, in terms of trade, the world is not flat; it is hyperbolic. Differences in trade distances are growing and becoming more heterogeneous and hierarchical; at the same time as they define natural trade communities—not fully consistent with PTAs. Countries are becoming more interconnected and clustered into hierarchical trade blocs than ever before.

Please see my related posts:

Networks and Hierarchies

Increasing Returns, Path Dependence, Circular and Cumulative Causation in Economics

Relational Turn in Economic Geography

Boundaries and Networks

Multilevel Approach to Research in Organizations

Regional Trading Blocs and Economic Integration

Increasing Returns and Path Dependence in Economics

Growth and Form in Nature: Power Laws and Fractals

Key Sources of Research:


The hidden hyperbolic geometry of international trade: World Trade Atlas 1870–2013

Guillermo García-Pérez  Marián Boguñá, Antoine Allard & M. Ángeles Serrano




Uncovering the hidden geometry behind metabolic networks


Molecular BioSystems · March 2012



The hidden geometry of complex networks





Deciphering the global organization of clustering in real complex networks

Pol Colomer-de-Simo ́n1, M. A ́ ngeles Serrano1, Mariano G. Beiro ́2, J. Ignacio Alvarez-Hamelin2 & Maria ́n Bogun ̃a ́1






Hidden geometric correlations in real multiplex networks


Kaj-KoljaKleineberg,1,∗ Mari ́anBogun ̃ ́a,1 M.A ́ngelesSerrano,2,1 andFragkiskosPapadopoulos






Emergent Hyperbolic Network Geometry

Ginestra Bianconi1 & Christoph Rahmede





The geometric nature of weights in real complex networks


Antoine Allard1,2, M. A ́ngeles Serrano1,2,3, Guillermo Garc ́ıa-Pe ́rez1,2 & Maria ́n Bogun ̃a ́




Network Geometry and Complexity

Daan Mulder · Ginestra Bianconi




Multiscale unfolding of real networks by geometric renormalization


Guillermo Garc ́ıa-P ́erez,1,2 Mari ́an Bogun ̃ ́a,1,2 and M. A ́ngeles Serrano




Topology of the World Trade Web

Ma A ́ngeles Serrano and Mari ́an Bogun ̃a ́



Patterns of dominant flows in the world trade web


M. A ́ngeles Serrano,1 Mari ́an Bogun ̃ ́a,2 and Alessandro Vespignani3,4





Clustering and the hyperbolic geometry of complex networks

Elisabetta Candellero and Nikolaos Fountoulakis





Hyperbolic Geometry of Complex Networks


Dmitri Krioukov, Fragkiskos Papadopoulos, Maksim Kitsak, Amin Vahdat, and Mari ́an Boguna






On Hyperbolic Geometry Structure of Complex Networks

Wenjie Fang


On Holons and Holarchy

On Holons and Holarchy


Key Terms

  • Holons
  • Holarchy
  • Hierarchy
  • Fractals
  • Holonomic
  • Holographic
  • Heterarchy
  • Parts and Whole
  • Networks
  • Matryoshka Dolls
  • Recursion
  • Nested Levels
  • Reflective Spheres
  • Hyper Sets
  • Boundaries



From The Holonic Revolution Holons, Holarchies and Holonic Networks. The Ghost in the Production Machine


A minor conceptual revolution has been under way for less than forty years now, beginning in 1967 with the publication of Arthur Koestler’s The Ghost in the Machine – a phantasmagorical book in terms of the breath and variety of its content – which formally introduced the concepts of holon and holarchy (the hierarchical ordering of holons).

Koestler’s idea is clear and simple: in observing the Universe surrounding us (at the physical and biological level and in the real or formal sense) we must take into account the whole/part relationship between observed “entities”. In other words, we must not only consider atoms, molecules, cells, individuals, systems, words or concepts as autonomous and independent units, but we must always be aware that each of these units is at the same time a whole – composed of smaller parts – and part of a larger whole.

In fact, they are holons.

By systematically applying the whole/part observational relationship, or the equivalent one of containing/contained, the Universe appears to us as a hierarchy of holons: that is, as a holarchy where, at each hierarchical level, the holons undergo the effects of the structural or operational variations of the subordinate holons and in turn produce variations in the behaviour of the superordinate ones.

The entire machine of life and of the Universe itself evolves toward ever more complex states, as if a ghost were operating the machine.

The concepts of holon and holarchy have since been used, especially in recent times, by a number of writers in a variety of disciplines and contexts, and these concepts are rapidly spreading to all sectors of research. Physics (Capra 1982), engineering (Babiceanu et al. 2005; Dani et al. 2004)), robotics, biology (Shafaei – Aghaee, 2008), organizational studies, management science (Zhang et al. 2003; Ng et al. 1996), business administration and entrepreneurship (Chirn – McFarlane 2001), production and supply chain systems (McFarlane – Bussmann 2000; Akturk – Turkcan 2000; Amiri 2006). Connected to these ideas are those of holonic networks, holonic and virtual enterprises, virtual organizations, agile manufacturing networks, holonic manufacturing systems, fractal enterprise and bionic manufacturing (Chapter 5)


This short essay, written from an economic-business point of view, has four objectives.

The first (covering the first two chapters) provides the reader with a brief but precise theoretical framework for understanding the meaning of the new terms that increasingly come up in business literature (outside Italy as well) and which refer directly or indirectly to the ideas of holon and holarchy. Connected to these terms are those of holonic network, holonic firm and enterprise, holonic manufacturing systems, holonic production, bionic production, fractal enterprise, and virtual enterprise, to name but a few.

Since I have observed that often the term “holon” has been improperly used, without any reference to the original sources, leading to models and conclusions that are absolutely inappropriate, I feel it is useful to provide the theoretical framework within which these terms can be properly used, considering not only Koestler’s definition but also the ideas of Ken Wilber, which are based on this notion.

I also feel it is useful to examine several fundamental classes of holarchies in order to show that the idea of a hierarchical order among classes of holons can be applied to a variety of contexts. In particular I have presented Koestler’s Self-organizing Open Hierarchical Order, Wilber’s Kosmos and Shimizu’s Autonomic Cognitive Computer as applications that illustrate the concept of a holon.

The second objective (presented in Chapter 3) is to extend the notion of holon while respecting its original meaning, in order to apply it to organizations.

Starting from the definition of organizations as systems whose organs are composed of individuals or groups of individuals, I have attempted to demonstrate two interconnected aspects: on the one hand, that organizations are holons that derive from a holarchy of organs (from their functionalities), and on the other that organizations can be formed by other holon-organizations – which I have labelled orgons – that are connected in a holarchy that I have called an orgonization.

When we observe the functionality and the function of its organs we see that an organization can be thought of as a macro system whose purpose is the attainment of a macro objective. It immediately follows that it can be compared to an Holonic Manufacturing System, or to an Autonomic Cognitive Computer; that is, to a holarchy of operators at different levels – each included in the other, so as to form parts of ever smaller size – each capable of pursuing part of the macro objective.

When there is a larger objective to achieve, rather than add levels to the organization we can form an organization of organizations, that is an orgonization with unique characteristics.

The third objective is to show (Chapter 4) how holons can be connected not only in the typical hierarchical structure – the holarchy – but, by stretching somewhat the original meaning, also in a reticular structure in order to form holonic networks in which the vertical ordering (above and below) is replaced by a horizontal one (before and after).

Within the holonic networks the holons maintain their autonomy and their whole/part relationship, which together characterize holarchies. However, for this reason the dominant feature is their horizontal systemic interconnections; each holon becomes a node of input-output interconnections between holons that come before and those that come after in the structure.

I have thus discovered that even holonic networks can be made up of orgons that form orgonic networks.

Since holarchies, orgonizations, holonic networks and orgonic networks are present everywhere – in firms and between firms, as well as in the economic system of which they are a vital part – it is useful to present a general survey.

Among the many types of holonic networks, I have chosen to examine the main sources of inspiration for those production systems referred to as the Holonic Manufacturing Systems, comparing these to those defined as Bionic and Fractal Manufacturing Systems. I have also considered the numerous forms of Inter- organizational Networks as well as the Holonic and Virtual Organizations.

The fourth objective (Chapter 5) is perhaps the most ambitious one, since I have tried to extend the holonic vision to the global production-economic system, or Production Kosmos.

Globally we are witnessing the continual and accelerated economic progress of mankind. There is an increase in the quantity and quality of needs that are satisfied and those still to be satisfied, and in the aspirations achieved and yet to be achieved. The increase in productivity and quality is unstoppable, and appears to guide the other variables in the system.

It is natural to ask who activates and governs such phenomena. The answer is that they are self-generated and self-organized in the context of reticular holarchies and orgonic networks formed by production enterprises – or production organizations – that comprise the integrated process of global production.

On a continental scale, it makes sense to consider production in terms of networks of orgons in which, by choice or not, every firm that produces final consumption goods is linked at several levels to a number of other suppliers of materials, components, machines and other structural factors. We can easily observe that the large continental production networks – in North America, China, Japan, India and Europe – are not yet integrated but are becoming larger and increasingly connected, while other local networks are developing in other countries.

In order to understand how things are evolving in a context where there is a connection between firm and production organization we need a conceptual framework that does not limit our observations to the single production units, searching therein for the laws of survival, but one which, at least in principle, is able to explain how the large orgonic networks internally produce self-organization and self-development.

The theory of systems provides two particularly interesting approaches: one that considers firms as adaptive systems that operate according to local rules and that spontaneously and inevitably generate production networks understood as complex adaptive systems, and that which considers production organizations as holons that, given their arrangement in a multi-level holarchy, generate the production networks in which progress appears as the inevitable consequence of the holarchic ordering of the Economic-Production Kosmos.

This essay considers the second approach, presenting the holarchic model of the analysis of production networks. It assumes that in an economy based on knowledge, where the limits of time and space are tenuous, production must increasingly refer not to a single firm but to a system of firms (a super-organizational network) or to operational units (inter-organizational network) conceived of as an operative, information or cognitive network.

It truly appears there is a Ghost in the Machine, whose invisible hand produces growing levels of productivity and quality, increases the quality and quantity of satisfied needs and aspirations, and reduces the burden of work, thereby continually increasing the level of progress in the entire Kosmos.

It is useful to conclude with a bibliographical note.

The conceptual revolution begun in 1967 has not yet led to a relevant number of monographs. On the other hand, there is a substantial bibliography containing journal articles, papers presented at congresses, and opinions and documents from discussion forums. The Internet has been crucial for gaining access to recent material.




You may know of Russian Dolls – Nested Dolls.  They are known as Matryoshka Dolls.  I came across this russian paper investigating roots of dolls.

Eastern Roots of Russia’s most famous Toy

May I suggest that name/concept of these dolls could have originated from SAPTA MATRIKA (7 Divine Mothers) of Indian Hindu Tantra Philosophy.



A Brief History of Holons

Mark Edwards

This concept has a long and respectable ancestry. So much so that defenders of orthodoxy are inclined to dismiss it as “old hat” – and often in the same breath to deny its validity. Yet I hope to show as we go along that this old hat, handled with some affection, can produce lively rabbits.
(Arthur Koestler, 1967, p.45)


The idea of hierarchy and of their constituent part-wholes, or holons, has, as Arthur Koestler points out in the opening quote, a long and distinguished history. There are many philosophers who have proposed abstract systems for explaining natural and social phenomena. In pre-Socratic Greece Leuciddus and Deocritus developed the abstract concept of the atom and used it to develop a philosophy that could explain all observed events. Aristotle used hierarchy as the methodology for accumulating and connecting biological knowledge. Hierachy was perhaps the dominant way of viewing the connection between the natural, the human and the supernatural orders of being through the middles ages. In the 17th century Leibnitz proposed his “monad” as an irreducible unit for explaining not only the material world but the inner world of the soul.

In the early twentieth century there was a flurry of interest in holism and hierarchy that owed its genesis to the impact of Darwin’s evolutionary theory. I think the contribution of Jan Smuts in his publication of “Evolution and Holism” in 1926 is particularly important. Smuts was a soldier, a revolutionist republican, a lawyer, the Premier of the Republic of South Africa for several years (before the instigation of political apartheid), a globalist, and one of the founders of the United nations. writers of the UN founding charter. He also was a philosopher who saw the deep connections between the natural and social worlds and his concept of holism clearly influenced Wilber’s ideas in this area. Wilber quotes Smuts at the very beginning of his first major work that fully utilised the concept of hierarchy – “The Atman Project” – “Everywhere we look in nature we see nothing but wholes” (cited in Wilber, 1980). While all these various threads of ideas included the consideration of hierarchical networks and levels and orders of development it was not until the work of writer-philosopher Arthur Koestler that a fully theory of holarchy and holons was proposed.

Arthur Koestler – The father of Holon theory


The Ghost in the Machine


Some 35 years ago, in 1967, Arthur Koestler proposed the term “holon” in his book “The Ghost in the Machine”. Arthur Koestler was born in 1905 and died in 1983. During the 1930’s and 1040’s Koestler was a journalist who covered the Spanish civil war and World War II from the perspective of the ordinary people who were swept up in the great social tumult of those times. After the war he turned to turned to writing books in both fiction and non-fiction genres. He was one of the most widely read political novelists of all time. Koestler said that he wrote his novels, “out of my quarrels with the human condition”. His other non-fiction books, including, “The Ghost in the machine” were “attempts to analyse that same condition in scientific terms”.

Like Jan Smuts, Arthur Koestler led an extremely eventful life and he participated fully in some of the most important political and social events of his times. Again, similarly with Smuts, Koestler’s engagement with the events of the day included not only social action and participatory involvement at a personal level but he also lived a life of deep connection with the world of culture and inner experience. In the following quote from his book, “The Act of Creation”, Koestler is referring to the relationship between subjective and objective knowledge quests and it shows the awareness he had of both interior and exterior aspects of life.

Einstein’s space is no closer to reality than Van Gogh’s sky. The glory of science is not in a truth more absolute than the truth of Bach or Tolstoy, but in the act of creation itself. The scientist’s discoveries impose his own order on chaos, as the composer or painter imposes his; an order that always refers to limited aspects of reality, and is based on the observer’s frame of reference, which differs from period to period as a Rembrant nude differs from a nude by Manet.
Arthur Koestler, 1970, p. 253It is interesting to look at Koestler’s life in terms of Wilber’s Quadrants framework. He was a philosopher and held a rich interest in art and cultural concerns. He was active socially and for many years was involved in various social movements and was nominated for the Nobel prize for literature three times. His personal life was one of great behavioural involvement with the great dramas of revolution, war and social dislocation that characterised the early and middle twentieth century. He also explored the inner worlds of subjective experience and imagination and wrote some of the most memorable political novels of his times. Looking at his life it is clear that his great span and depth of involvements and experiences should be reflected in his philosophy and in the specific detail of the holon theory that he largely created.

Koestler’s Holon

The idea of the holon occupies a central position in Koestler’s thinking about the human condition. He developed the construct to deal with three central problems that he saw facing the social sciences of the post-war generation. First he saw the need for some model that could unite and integrate the reductionist and mechanistic worldview of the “scientific” and behavioural psychologies with the holistic and humanistic worldview of the Freudian, Rogerian and Gestalt psychologies. Second, he recognised the importance and relevance of evolutionary processes in the social sciences and wanted to provide some theoretical system that could apply evolutionary conceptualisations to both realms. Third, he wanted to develop a model of human social systems that was equally at home in analysing the micro-level of individuality and the macro-level of collectivity. He wanted to propose some basic model of explanation that was relevant across the great span of human activity and involvement.

Koestler acknowledged that his “holon” construct had, in fact, a very venerable and ancient ancestry in western philosophy. Several important philosophers including Leibniz and Hegel had drawn attention to the importance of such things as hierarchy and developmental levels. Koestler saw himself in a line of such thinkers who wanted to bring together different knowledge quests and schools of scientific endeavour instead of pursuing the ongoing specialisation in scientific knowledge that has characterised modern scientific schools. Holon theory was Koestler’s attempt at an integrative philosophy of science and he expected that the holon theory or something similar would form the basis for any truly holistic future scientific worldview. He approvingly quotes one Needham who said that, “The hierarchy of relations … will perhaps be the leading idea of the future”. So, the holon construct was no small thing for Koestler and it is clear that he regarded his holonic principles as a solid attempt at an integrative philosophy of human existence.

So what is a holon. The word is a combination of the Greek “holos” meaning whole, with the suffix “on” which, as in proton or neutron, suggests a particle or part. The holon, then, is a part-whole. It is a nodal point in a hierarchy that describes the relationship between entities that are self-complete wholes and entities that are seen to be other dependent parts. As one’s point of focus moves up, down, and/or across the nodes of a hierarchical structure so one’s perception of what is a whole and what is a part will also change.

The evolutionary holon

In introducing the idea of the holon Koestler quotes the story told to him by Herbert Simon, a Nobel prize winner, and called the ‘parable of the two watchmakers’. The parable goes like this:

There once were two watchmakers, named Bios and Mekhos, who made very fine watches. The phones in their workshops rang frequently; new customers were constantly calling them. However, Bios prospered while Mekhos became poorer and poorer. In the end, Mekhos lost his shop and worked as a mechanic for Bios. What was the reason behind this?

The watches consisted of about 1000 parts each. The watches that Mekhos made were designed such that, when he had to put down a partly assembled watch (for instance, to answer the phone), it immediately fell into pieces and had to be completely reassembled from the basic elements. On the other hand Bios designed his watches so that he could put together subassemblies of about ten components each. Ten of these subassemblies could be put together to make a larger sub-assembly. Finally, ten of the larger subassemblies constituted the whole watch. When Bios had to put his watches down to attend to some interruption they did not break up into their elemental parts but only into their sub-assemblies.

Now, the watchmakers were each disturbed at the same rate of once per hundred assembly operations. However, due to their different assembly methods, it took Mekhos four thousand times longer than Bios to complete a single watch.Koestler relates this story to show that the hierarchical organisation of systems is an inbuilt feature of life – biological life but also any complex evolving system. not only is the time needed for the development greatly shortened when hierarchical methods are used but there are also inherent benefits in terms of maintenance, regulation and restoration. Koestler sees the hierarchical ordering of life as such a fundamental aspect of development that he says (1967, p. 47),

We do not know what forms of life have evolved on other planets in the universe, but we can safely assume that wherever there is life, it must be hierarchically organised (emphasis in the original)Koestler wants to show two things with this parable. First, that complex systems will evolve from simple systems much more rapidly if there are stable intermediate forms than if there are not, i.e. if they are hierarchically organised. Second, and more importantly, he wants to show that the resulting complex systems will always be hierarchic and that hierarchy is the natural and ubiquitous outcome of the development of structural form. After establishing the universal importance of hierarchy to the development of complex systems Koestler went on to propose that these hierarchies could be analysed in terms of the stable intermediate nodes or forms through which their structure is defined. It was to these intermediate forms that Koestler conferred the new label of “holon”.

Koester was a keen student of psychology and was well aware of the problems besetting the reductionist behavioural approaches to psychological theory. He was also conversant with the European schools such as the more holistic Gestalt psychology and he saw his holon theory as a way to move beyond the inadequacies of these contending models. He saw the great dehumanising effect of atomistic psychologies but also recognised the limitations of the holistic schools. As he puts it (1967, p.49)

in spite of its lasting merits, ‘holism’ as a general attitude to psychology turned out to be as one-sided as atomism was, because both treated ‘whole’ and part’ as absolutes, both failed to take into account the hierarchic scaffolding of intermediate structures of sub-wholes … the Behaviourist never gets higher that the bottom layer of stones, and the holist never gets down from the apex.Koester saw holon theory as a broad philosophy of science that showed a way out of the interminable and centuries-long debate over the relative merits of reductionism and holism.

Holons and holarchies

Koestler noted that in every order of existence, from physical to chemical to biological and social systems, entirely self supporting, non-interacting entities did not exist. And more importantly, that entities can be seen to lie in holarchical relationship with each other. He called systems of such entities Open Hierarchical Systems (OHS) and these have subsequently been called holarchies. Every identifiable unit of organization, such as a single cell in an animal or a family unit in a society, comprises more basic units (mitochondria and nucleus, parents and siblings) while at the same time forming a part of a larger unit of organization (a muscle tissue and organ, community and society). A holon, as Koestler devised the term, is an identifiable part of a system that has a unique identity, yet is made up of sub-ordinate parts and in turn is part of a larger whole.

Koestler’s holons were not thought of as entities or objects but as systematic ways of relating theoretical structures. In other words, holons were arbitrary points of reference for interpreting reality. To quote Koestler (1967, pg. 55), “Whatever the nature of a hierarchic organisation, its constituent holons are defined by fixed rules and flexible strategies” (emphasis in the original). So Koestler’s holons are posited and “fixed” only out of the relational rules and strategies that help us make sense of reality.

Because holons are defined by the structure of a hierarchy each identified holon can itself be regarded as a series of nested sub-hierarchies in the same way that a set of Russian dolls is an inclusive series of dolls contained within each other. Holons are, then, both parts and wholes because they are always parts of larger hierarchies and they always contain sub-hierarchies. Holons simultaneously are self-contained wholes to their subordinated parts, and dependent parts when seen from the inverse direction. Hence, holons can be seen as reference points in hierarchical series or holarchies.

Russian dolls

Koestler also recognised that holons are the representative stages or nodal structures that define the developmental hierarchies. As he says (1967, p. 61),

the different levels represent different stages of development, and the holons … reflect intermediary structures at these stages.It is this crucial stage-like characteristic of holons that Wilber takes up, expands and utilises in his spectrum model of human growth and later in his quadrants framework for describing Kosmic development. It is interesting to note that Koestler also recognised that the stage-like nature of hierarchies that existed in the inorganic world and in “the interplay of cohesive and separative forces in stable inorganic systems, from atoms to galaxies”.

So, we see that Koestler not only introduced the nomenclature of holons but he also described their place in developmental theory and saw how they could be used to overcome many of the philosophical problems that were plagued the social and psychological sciences of the early twentieth century. Even more than this, Koestler developed a very detailed set of holonic principles that actually defined a new theory of social development and general evolutionary theory. These principles are outlined in an appendix to “The Ghost in the Machine” and are titled “General Properties Of Open Hierarchical Systems (O.H.S.)”. Many of these principles have been taken up and expanded on by Ken Wilber in his holonic tenets but there are many that have not. Before comparing Koestler’s OHS properties with the twenty tenets of Wilber I will give a brief overview of how Wilber has adopted the holon and how it fills a central role in his most recent writings on Integral theory.

Ken Wilber’s Holonic Tenets

Sex, Ecology, Spirituality


Wilber adopted Koestler’s holon construct during, what Wilber has called, the phase-2 period in the development of his philosophy. This phase, which occurred around the late seventies and early eighties, is characterised by a focus on the spectral transcend-and–include nature of all developmental structures. It is no surprise that Wilber would be drawn to the holon as a construct given his developmental interests and particularly his revolutionary pre/trans theorem which is so useful to unravelling the boundary stages of growth. So, it was quite early on that the holon construct was incorporated into the basic theoretical scheme Wilber’s writings as a way of emphasising the hierarchical/holarchical nature of reality. To my knowledge, the first reference that Wilber makes to the holon construct is in his 1983 book, “Eye to Eye” but he may well have been aware of the term for some time. This was at least 15 years prior to the great expansion of his ideas that culminated in 1995 in the publication of “Sex, Ecology, Spirituality” (SES) which introduced the Four Quadrants of Kosmic evolution (Wilber’s Phase-4). From 1995 the holon and its various defining qualities have held an increasingly important position in Wilber’s writings.

Wilber holonic theory or as he refers to it “the twenty tenets” were first laid out in the opening chapters to SES. They provide the foundation for his mapping out of the All Quadrants, All Levels framework (AQAL). It is clear from the very beginning of SES that Wilber now regards the idea of the holon as the primary explanatory unit in his AQAL framework. This is conveyed in his famous statement that,

“Reality as a whole is not composed of things or processes, but of holons”.

This groundbreaking statement sets the holon construct at the very heart of Wilber’s whole explanatory endeavour. And, I believe, that this marks a major turning point in the history of Western philosophy of science and in our more general attempt to develop scientific explanations of social phenomena. The reason for this is because in clearly identifying the holon as the central unit of explanation Wilber provides a basis for connecting all fields of scientific and cultural knowledge.

Wilber’s AQAL framework and the Holon

As with Koestler, Wilber uses the holon theory to, “undercut the traditional argument between atomism .. and wholism”. For Wilber to incorporate holonic theory into the theoretical structure of the AQAL framework was easy at one level because both theories were founded on the idea of hierarchical inclusion. The difference between them was that Wilber’s AQAL framework was a way of seeing the whole developmental and evolutionary nature of all relative knowledge, experience and activity. Wilber took Koestler’s holon to its logical end and, placing within the AQAL framework, saw the holon as a way of analysing all aspects and domains of reality. The subtitle of SES is “The Spirit of Evolution” and to my mind the book is an attempt to bring evolutionary theory out of its traditional biological home and to apply to all levels of existence – from matter to spirit. Wilber does this through the identification of the holon as his core explanatory device. This is the absolutely crucial part that holons play in his model.

In taking up Koestler’s wonderful theory of holons, Wilber too has stressed the sliding and contextual, yet hierarchical, nature of holons. Wilber has creatively used the holon construct to highlight the holarchical nature of his AQAL framework. The framework is derived from an immense amount of scientific, cultural and experiential knowledge. In adopting the holon construct the AQAL model becomes more than just a new way of connecting existing fields of knowledge in a developmental overview. It is also a new way of looking at the referential “units” of that knowledge – holons. Built into the heart of the model is the concept that all developmental phenomena can be viewed as aspects of dynamic, holonic events that are nested within a holarchy of evolving/involving structural patterns.

The holons construct is so critically important to the utility of the Integral model because it enables the AQAL framework to be focused on any point in the holarchy or, to put it another way, it enables any developmental event to be analysed in terms of an Integral methodology. As such, the concept of the “holon” does away with the endless quest of trying to find the fundamental parts or wholes that constitute reality and it releases us from the basis mythologies inherent in materialistic, mentalistic, animistic, relativistic, or idealistic conceptions of reality. Quantum physics, that most advanced of all natural sciences, now overtly recognises the completely mythological nature of “matter” (Davies & Gribble, 1992), and of ideas that regard reality as simply permutations of solid substance, empty space, and linear time. The AQAL model, when it is used as an interpretive schema, extends this demythologising awareness across all explanatory systems (including itself) and brings to the fore the holarchic and developmental nature of reality. With the idea of a nested holarchy of holons, Wilber has opened a vision of reality that does not fall into the errors associated with various forms of reductionism, elevationism or relativisim. In bringing Koesler’s holon concept into his model, Wilber has not only opened up the possibility of a truly open-ended Theory of Everything but also a systematic theoretical approach towards any thing/process/event.

The holon – Integral theory’s unit of analysis

The development of the human, in both its personal and social forms, is the most complex phenomena that we yet know about in the Kosmos. To understand this process in any sort of detailed and valid fashion is, to put it mildly, a big task. It is my opinion that Ken Wilber’s Integral theory is the only philosophical/epistemological/theoretical framework that attempts to present a comprehensive understanding of the complex and multi-layered reality that we see about us. One of the most attractive central features of Integral theory is that it does not rely on ontological reductionism to simplify that complexity, as do many other branches of science. The neurologist and the medical specialist reduce the human to the biochemical with their unit of study being the chemical compound. The behaviourist reduces the human to physical action with their unit of study being the behavioural stimulus-response cycle. The cognitivist reduces the human to the world of behaviour and thought with their basic unit of explanation being the pattern of thought, belief or feeling. The evolutionist reduces it to reproductive advantage with the locus of explanation being the adaptive interaction between environment and phenotype. The sociologist reduces the human to the world of interpersonal relations and group dynamics with their focus of explanation being the social event. The humanist reduces the human to the world of being and identity with authenticity in word and deed being their centre of interest. The transpersonalist reduces, or more correctly elevates, the human to the world of spirit and finds explanation in the analysis of the mystical event.

All these disciplines simplify human complexity to find something of certainty, something that is true, something that will have lasting validity. And, in their own way, each of the main perspectives on human reality does contribute unique knowledge to the quest for understanding that so occupies us. As Wilber has often pointed out, all these contributions are partially correct. The human can be understood and explained through the study of the physical, the chemical, the animal, the social, the political, the cognitive, the existential, the spiritual, and the historical. Once this partiality is recognised, we are then faced with the problem of truly integrating the valid and the true of each and bringing them into some semblance of coherency. And the very first task that is required for this integrative endeavour to be successful is to identify a unit of analysis or explanation that does not privilege any of the units of analysis or explanation associated with partial views.

In my opinion it is one of Wilber’s greatest insights that he has been able to identity an explanatory reference point that avoids the ontological pitfalls that have so plagued all previous explanatory elements. In so doing Wilber allows Integral theory to transcend (and integrate) all the reductionisms of the partial views to boldly propose that the true locus of explanation does not reside in any particular level of reality and cannot be limited to any single domain of investigation. The basic unit of analysis for Integral theory is not the atom, or the molecule, or the mathematical unit, or the interpretive perspective, or the cognitive pattern, or the historical event, or the spiritual revelation. For Integral theory the unit of analysis, it’s basic point of explanation, analysis, reference and “measurement” is the holon. This is why students of Wilber work, if they are to understand what Integral theory/philosophy, the AQAL framework and IMP’s are truly about, will have to have a good grounding in holon theory.

The reductive research paradigm has been immensely successful for investigating physical and chemical phenomena. More recently holistic approaches like the various systems theories, humanistic disciplines, and developmental theories have been successfully applied to social phenomena. The holon, the “part-whole”, has a built in non-reductive perspective that allows for the simultaneous recognition that anything can be studied holistically and anything can be analysed reductively at the same time. This combination of holistic and reductive methodologies also introduces a new element and immensely important capacity for explanatory methodologies that utilise this part-whole focus of explanation. It now means that the various types of reductive science can now be carried out in relational context. The disciplines of physics, chemistry, biology, psychology, the humanities, sociology, theology, and cultural studies can now be pursued within a cross-disciplinary framework that connects and situates their disparate findings and truths instead of juxtaposing them. By allowing for both holistic and reductive methodologies, the holon framework introduces an integrative dimension of implementing those approaches that no other approach can claim. This new capacity lies at the heart of Wilber’s (2002) recent call for a revolutionary Integral Methodological Pluralism (IMP) – “a project of synthesis”.

Holism, reductionism and pluralism

The holon is the holarchic (i.e. hierarchic plus heterarchic) reference point through which the various principles of the AQAL model can be applied. This is the real point behind Wilber’s first tenet of holons, “Reality as a whole is not composed of things, or processes, but of holons”. He is really pointing out here that holons permit an analytical holism that can evade the reductive errors that result from explanations that rely on some fundamental thing or process. Unfortunately the wording of this tenet suggests that holons themselves are building block composites that in some way fit together to make up Kosmic reality. But this is not at all Wilber’s intended reading for this tenet. The holon construct allows Integral theory and it’s AQAL methodology to step away from and the methodological battles engaged in by other disciplines and to avoid the reductive pitfalls that abound wherever science seeks to understand complex phenomena. The use of the holon as the means for applying Integral theory also allows the many other truths that have been uncovered by human knowledge quests to be honoured and rightfully situated within a non-reductive context. It is not just that the holon in conjunction with the AQAL principles can investigate systemic and elemental aspect of reality but that it can also, as Wilber says, “acknowledge, honor, and include all authentic modes of human inquiry ” (and their valid findings). In short, the full integration of the holon and the AQAL model enables Integral theory to overcome the traditional reductionist propensity to privilege very biased methodologies for gathering observations and experiences and very narrow modes of explanation for understanding them. As Wilber (2002) has recently said:

AQAL, then, is a metatheory that attempts to integrate the most amount of material from an integral methodological pluralism, thus honoring the primary injunction of an integral embrace: Everybody is right.

Everybody, i.e. all major theorists, philosophies and stores of cultural knowledge, are right (within context) and it is the holon construct that allows Integral theory to move without prejudice around these vast domains of human knowledge and pursue its agenda of holistic exploration and analysis. This process of acknowledging the validity and value of established personal and cultural knowledge quests can be viewed from a broader perspective than simply that of Wilber’s integral theory. Wilber has recently termed any such endeavour as Integral Methodological Pluralism (IMP). Integral theory is an example of such an approach to the investigation of events, experiences, and knowledge. But I believe that any such method will need to be based on the holon construct in some form because it is the only explanatory concept that can accommodate the three definitive criteria for an IMP.

Similarities and Differences

I have pointed out that Koestler has proposed a quite detailed set of holonic principles and shown that the holon construct has a very wide application. Wilber, in turn, has placed the holon construct firmly at the centre of his comprehensive integrative framework for connecting knowledge. Wilber has expanded holon theory into a new approach to understanding the relationship of many different knowledge domains. It should, however, be noted that Koestler provided Wilber with much more than just a new term to label the “building blocks” of his Integral theory/AQAL framework. Koestler’s principles of Open Hierarchical Systems (OHS) and Wilber’s twenty tenets are clearly very related and the following table shows the correspondences between the two types of holon theory.

Table 1: Correspondences between Koestler’s OHS principles
and Wilber’s twenty Holonic Tenets
Wilber’s Twenty tenets Koestler’s OHS principles*
1: Reality can be seen in terms of an endless series of holonic relations 1.3 Parts and wholes in an absolute sense do not exist in the domain of life. The concept of the holon is intended to reconcile the atomistic and holistic approaches. “The [holarchy] is open-ended in the downward, as it is in the upward direction”
2a: Holons have agency, individuality, deep autonomy. 4.1 Every holon has the … tendency to preserve and assert its individuality as a quasi-autonomous whole; 9.2 the holon’s agency is that which controls the part from the next higher level.
2b: Holons have communality, mutuality, and collective relationships 4.8 The canon of a social holon represents not only constraints imposed on its actions, but also embodies maxims of conduct, moral imperatives and systems of value.
2c: Holons have a capacity for self-transcendence, and active transformation into greater wholes 5.6 A holon on the n level of an output-hierarchy is represented on the (n+ I) level as a unit, and triggered into action as a unit. A holon, in other words, is a system of relata. which is represented on the next higher level as a relatum.
2d: Holons have a capacity for self-immanence, and the active integration of its parts 4.1 Every holon has the tendency to function as an integrated part of an (existing or evolving) larger whole.
4.1 a holon’s Integrative (INT) tendencies are inherent in the concept of hierarchic order and a universal characteristic of life. The INT tendencies are the dynamic expression of the holon’s partness.
3: Holons emerge creatively and indeterminately 8. Holons on successively higher levels of the hierarchy show increasingly complex, more flexible and less predictable patterns of activity. while on successive lower levels we find increasingly mechanised stereotyped and predictable patterns.
4: Holons emerge holarchically, i.e. through dynamics between hierarchy and heterarchy 6.1 Hierarchies can be regarded as ‘vertically’ arborising structures whose branches interlock with those of other hierarchies at a multiplicity of levels and form ‘horizontal’ networks
5: Each emergent holon transcends but includes its predecessors “A hierarchy of holons should rightly be called a holarchy”
8: Each successive holon level within a holarchy produces greater depth and less span 2.2 The number of levels in a hierarchy is a measure of its “‘depth”, and the number of holons on any given level is called its “span”.
12a: Evolution displays increasing complexity 8.4 Each upward shift is reflected by a more vivid and precise consciousness of the ongoing activity; and, since the variety of alternative choices increases with the increasing complexity on higher levels, each upward shift is accompanied by the subjective experience of freedom of decision. (“We find [holons] in an ascending order of complexity” )
Holarchies possess interiority and consciousness 8.6 Consciousness appears as an emergent quality in phylogeny and ontogeny, which, from primitive beginnings, evolves towards more complex and precise states.

* All direct quotes from “The Ghost in the Machine”

Table 1 shows the clear concordances between Koestler’s OHS principles and Wilber’s twenty tenets. I have pointed out these overlaps to show that Wilber’s extended use of the holon construct clearly builds on Koestler’s quite extensive and detailed explications of holon theory and that therefore the two models should be seen as a single continuum of development in the theory. Wilber has taken the foundational theorems laid down by Koestler and greatly extended their theoretical and practical application. As a whole holon theory needs to be seen as a new and very promising philosophy of knowledge that may well open up an entirely new and genuinely integrative understanding of the natural and social worlds and how they relate to each other.

There are several aspects of Koestler’s theory that have, as yet, not been explored by Wilber or any other Integral theory writers. These include the concept of holonic exchange/input-output systems which looks at the way holonic outputs are triggered and how holons scanners and filter inputs. Koestler’s concepts of “arborisation”, “reticulation” and “regulation channels” also show promise as ways of seeing how holons can relate to each other. There is also the issue of holonic health and how holons change and Koestler’s principles on holonic equilibrium, disorder and regeneration offer fertile ground for further study.

Holons and the Future

I noted earlier that Ken Wilber (2002b) has recently suggested some principles that define, what he calls, an Integral Methodological Pluralism (IMP). This idea refers to the broad characteristics of a discipline that can be considered to be an integral approach to a topic. Wilber maintains that any future over-arching model of knowledge will have posses the main principles that define an IMP. These principles are non-exclusion, enfoldment/unfoldment, and enactment. Wilber defines non-exclusion as follows:

Nonexclusion means that we can accept the valid truth claims (i.e. the truth claims that pass validity tests for their own paradigms in their own fields, whether in hermeneutics, spirituality, science, etc.) insofar as they make statements about the existence of their own enacted and disclosed phenomena, but not when they make statements about the existence of phenomena enacted by other paradigms. (2002b, ¶52)

This principle refers to the acceptance of partial but valid knowledge that has been gleaned by disciplines focusing on particular aspects of holons. Much of this knowledge has been the result of reductionist paradigms (disciplinary matrices/methodologies). The second principle, enfoldment/ unfoldment is defined as:

nonexclusion often discloses an unfoldment that is enfoldment: in any particular developmental stream, successive waves transcend and include their predecessors, and thus each wave is adequate, each succeeding wave is more adequate. (2002b, ¶73)

In short, in healthy unfolding, each wave is holistic, each succeeding wave is more holistic. (2002b, ¶81)

The unfoldment/enfoldment principle refers to the acceptance of the holistic and developmental nature of knowledge and methods. This principle relates to the idea that all knowledge bases and methods are connected and can illuminate each other. Wilber’s third principle, the Enactment principle is explained as follows:

Putting all of these modes of inquiry together, as an enactment and disclosure of turquoise cognition, results in what we are calling integral methodological pluralism, which embodies the more practical side of an Integral Post-Metaphysics (Wilber 2002a, ¶64)

phenomena are enacted, brought forth, and disclosed by practices, then we realize that what appeared to be “conflicting phenomena” or experiences are simply different (and fully compatible) experiences brought forth by different practices. (2002b, ¶89)

So enactment refers to the novel capacity of an IMP to situate and provide a new integrative context for all other partial approaches be they reductionist or holistic. It is precisely these three IMP capacities that are made available when the holon is seen as the unit of analysis for Integral theory. This leads to what Wilber calls Integral indexing or conferencing.

“AQAL indexing” (“integral indexing” or “holonic conferencing” [see below]) allows individual paradigms to be seated next to each other at the integrative table, in such as a way that each individual paradigm is honored and acknowledged. (2002b, ¶75)

Richard Slaughter, in an essay on the possibilities of an Integral Futures discipline, has pointed out that any futures studies practitionsers will not only need to understand the potentials and limitations of their own worldviews but will also need to be “proficient in exploring other perspectives” and the relationships that come out of the meeting of different perspectives. There seems to be an imperative here for scholars who deal with Big Pictures to take on the IMP framework. As part of this move, I would further add that the holon construct and holon theory may well be an essential aspect of any IMP. I say this simply because the holon framework presents a methodological basis for the IMP principles. The holon construct allows for the discriminative analysis of phenomena through non-exclusion, it allows for the inclusion of holistic and developmental through unfoldment/unfoldment, and it allows for the active discovery of insight and connective knowledge through its capacity to generate the enactment of integrative practices. The holon is the core unitary construct that will define any IMP approach to investigating, experiencing and analysing the human encounter with our world.


The holon construct and it associated theory has the potential to play a crucial role in the movement to combine and synthesise scientific and cultural knowledge about psychological and social realities. While there is a long tradition of attempts to derive a comprehensive philosophy for understanding human realities it is only with the 19th and 20th centuries contributions of evolutionary theory and developmental models of human growth that this synthesising project has really come of age. In many ways holon theory is the culmination of this integrative movement and its development comes at a time when such connective knowledge and holistic approaches are most needed. The global systems that threaten the development of healthy and sustainable social development require systemic and integrative modes of imagination and action. Holon theory as an example of an IMP provides the scope and insight that global crises demand.

It is not by accident, I believe, that the two founders of holon theory have both come from outside of academia. One from the world of journalism and real politic and the other from the world of contemporary spirituality and the human potential movement. Out of their visionary thinking these two writers/philosophers have forged a new approach to seeing the breadth and depth of reality and the challenges that are inherent in it. Koestler and Wilber’s lives and writings are very different but also in a deep way very complementary. One comes from the experience of war and revolution in continental Europe while the other comes from a secluded life of inner journeys. One writes fiction as a way of wrestling with the world of human suffering the other writes non-fiction as a way of mapping out the potential for life. One is immerses himself in the psychologies and philosophies of the western tradition and the other follows contemplative paths of Eastern spirituality. Together they bring a new vision to how we and our realities are connected to each other. In the chapter which introduces the neologism “holon” for the first time, Koestler quotes the writer L.L. Whyte who said that, “fertile vistas may open out when commonplace facts are examined from a fresh point of view.” In my view the holon, and its associated theoretical principles, will open up the richest and most crucial fields of scientific and cultural endeavour in the 21st century.


Koestler, A. (1967) The ghost in the machine. London: Arkana

Wilber, K. (1995) Sex, ecology and spirituality: The evolution of spirit. New York: Shambhala.

Wilber, K. (2002) Excerpt B: The Many Ways We Touch -Three Principles Helpful for Any Integrative Approach

Please see my related posts:


Levels of Human Psychological Development in Integral Spiral Dynamics

Multilevel Approach to Research in Organizations

The Great Chain of Being

Boundaries and Networks

Hierarchy Theory in Biology, Ecology and Evolution

Networks and Hierarchies

Consciousness of Cosmos: A Fractal, Recursive, Holographic Universe

Truth, Beauty, and Goodness: Integral Theory of Ken Wilber

Boundaries and Relational Sociology

Reflexivity, Recursion, and Self Reference


Key Sources of Researches:




Holon (philosophy)





Holons and Holarchy of Arthur Koestler


Arthur Koestler





The Holonic Revolution Holons, Holarchies and Holonic Networks. The Ghost in the Production Machine

Piero Mella




Holons and agents

A. Giret





A Brief History of Holons

Mark Edwards






The Holonic View of Organizations and Firms


Rolf Sattler


Eastern Roots of Russia’s most famous Toy

Water | Food | Energy | Nexus: Mega Trends and Scenarios for the Future

Water | Food | Energy | Nexus: Mega Trends and Scenarios for the Future




Facts and Figures

  • Agriculture accounts for 70% of global water withdrawal. (FAO)
  • Roughly 75% of all industrial water withdrawals are used for energy production. (UNESCO, 2014)
  • The food production and supply chain accounts for about 30% of total global energy consumption. (UNESCO, 2012)
  • 90% of global power generation is water-intensive. (UNESCO, 2014)
  • Global water demand (in terms of water withdrawals) is projected to increase by 55% by 2050, mainly because of growing demands from manufacturing (400% increase). More than 40% of the global population is projected to be living in areas of severe water stress by 2050. (UNESCO, 2014)
  • Power plant cooling is responsible for 43% of total freshwater withdrawals in Europe (more than 50% in several countries), nearly 50% in the United States of America, and more than 10% of the national water cap in China. (UNESCO, 2014)
  • By 2035, water withdrawals for energy production could increase by 20% and consumption by 85%, driven via a shift towards higher efficiency power plants with more advanced cooling systems (that reduce water withdrawals but increase consumption) and increased production of biofuel. (UNESCO, 2014)
  • There is clear evidence that groundwater supplies are diminishing, with an estimated 20% of the world’s aquifers being over-exploited, some critically so. Deterioration of wetlands worldwide is reducing the capacity of ecosystems to purify water. (UNESCO, 2014)
  • It typically takes 3,000 – 5,000 litres of water to produce 1 kg of rice, 2,000 litres for 1kg of soya, 900 litres for 1kg of wheat and 500 litres for 1kg of potatoes. (WWF).
  • While almost 800 million people are currently hungry, by 2050 global food production would need to increase by 50% to feed the more than 9 billion people projected who live on our planet (FAO/IFAD/UNICEF/WFP/WHO, 2017).


From Background paper for the Bonn 2011 Nexus Conference: THE WATER, ENERGY AND FOOD SECURITY NEXUS





From How Shell, Chevron and Coke tackle the energy-water-food nexus

We know how important food, water and energy are to our daily lives, but what happens when we fail to value them as critical, interconnected resources for our economy?

In the summer of 2012, the U.S. was affected by one of the worst droughts in recent decades. Eighty percent of U.S. farms and ranches were affected, crop losses exceeded $20 billion and unforeseen ripple effects followed.

With corn crops withering from the lack of rainfall, prices for food and livestock feed supplies rose, as did ethanol, predominantly sourced from corn. Numerous power plants had to scale back operations or even shut down because the water temperatures of many rivers, lakes and estuaries had increased to the point where they could not be used for cooling. Household, municipal and farm wells in the Midwest had to be extended deeper into rapidly depleting aquifers to make up for the lack of rainfall, draining groundwater supplies and demanding more electricity to run the pumps. It is estimated that consumers will feel these ripple effects for years to come — over the next year alone, this impact could result in personal costs up to $50 billion.

Now more than ever, our infrastructure is built on an interlinked system for the production and use of energy, water and food. Water is needed for almost all forms of energy production and power generation, energy is required to treat and transport water, and both water and energy are needed to produce food.

This interconnection, or energy-water-food nexus, underscores the global challenges that we face as a society. The growing global population, increased wealth and urbanization will continue to stress energy, water and food supplies. Climate change and unsustainable development practices will exacerbate them. In preparing for a population that could top 10 billion by 2050, according to U.N. estimates, in the next 15 to 20 years alone we will need 30 percent more water, 45 percent more energy and 50 percent more food.

Consvation International’s Business & Sustainability Council (PDF) examined the corporate risk and opportunities related to the energy-water-food nexus. The nexus is still new in the minds of many corporations, but CI sees several examples of companies broadening their strategies to build synergistic solutions.

Shell shines the spotlight on the pressures from the energy-water-food stress nexus in its 2013 report, “The New Lens Scenario.” The company is using scenario planning to test and collaborate on the design of synergistic solutions to tackle these interlinked resource constraints. In British Columbia, Shell collaborated with the city of Dawson Creek to build a reclaimed water facility that virtually eliminated its need to draw on local freshwater sources for the operation of a natural gas venture. It also worked with the World Business Council for Sustainable Development and the University of Utrecht to develop a new methodology that could more accurately estimate the amount of water needed to generate energy from different sources — oil, gas, coal, nuclear and biofuels — using different technologies and in different locations.

In Kern County, about 100 miles from Los Angeles and home to Chevron’s largest California oil field, Chevron partnered with the Cawelo Water District to provide much needed water to local farmers for agricultural use. Water is a significant byproduct from steam flooding, a technology employed to extract thick, viscous oil out of the ground. For every barrel of oil, 10 barrels of water are produced, about 700,000 gallons per day. Chevron reclaims about one-third to generate new steam, and provides most of the remaining treated water to the Cawelo Water District to distribute to 160 farmers to irrigate 45,000 acres of crops, such as almonds, grapes, pistachios and citrus. This innovative solution is critical to creating a more sustainable local water supply and helping Kern County growers keep agriculture thriving in the region.

Since 2005, The Coca-Cola Company has set an ambitious water security commitment for its beverages and operations. In order to meet its goal, it implemented a series of technical and natural solutions in nearly 400 community water projects in more than 90 countries. These community water partnerships include rainwater harvesting, drip irrigation, agricultural water efficiency improvements and protecting watersheds. The company has taken an even broader perspective, enhancing the ability of watersheds to absorb threats associated with the uncertainties around climate change, and increased demands for water, energy and food from a burgeoning population.

Ensuring energy, water and food security on a global level requires equal consideration of the interdependency among all three systems and the underlying natural capital that supports them.

CI believes that addressing the stress nexus requires collaboration among government, business and civil society. Public-private partnerships offer an innovative way to leverage expertise and financing in order to pilot practical, scalable and collaborative solutions. The Sustainable Landscape Partnership being piloted in Indonesia with support from CI, USAID and the Walton Family Foundation looks to understand integrated approaches to build local economies while reducing deforestation and ensuring food and water security.

Lack of data specific to the nexus is currently a limiting factor in building solutions. Improved frameworks to price natural resources such as water will be critical — one reason CI is engaged with WAVES and the TEEB for Business Coalition. CI is also piloting a game-changing monitoring system called Vital Signs in Africa to provide near real-time ecological and social data and diagnostic tools to guide agricultural development decisions and monitor their outcomes. As we continue to pilot models that demonstrate resiliency of landscapes, open platforms for information sharing will generate innovations and efficiencies.

Combined together, this integrated approach will be critical to fully understanding where critical nexus interactions lie, where they are most susceptible and how we can meaningfully make better decisions, for this generation and the next.


Please see my related post:

Jay W. Forrester and System Dynamics

Art of Long View: Future, Uncertainty and Scenario Planning



Key Sources of Research:



World Water Development Report 2014

UN Water


Nexus in the Media



Tools and Databases




The Energy-Water-Food Nexus: The Emerging Challenge to Sustainable Prosperity






The Food, Water, Energy Nexus

Published on Thursday, 20 March 2014


Asian Development Bank




How Shell, Chevron and Coke tackle the energy-water-food nexus





Understanding the Stress Nexus

Shell International




The Energy | Water | Food Nexus

Conservation International




Energy-water-food stress nexus

Royal Geographical Society

Energy-water-food stress nexus




A review of the current state of research on the water, energy, and food nexus






The Water–Energy–Food Security Nexus: Towards a practical planning and decision-support framework for landscape investment and risk management


Livia Bizikova
Dimple Roy
Darren Swanson
Henry David Venema
Matthew McCandless







Tracing the water-energy-food nexus: description, theory and practice.

Leck, Hayley, Conway, Declan, Bradshaw, Michael and Rees, Judith A.


Geography Compass, 9 (8). pp. 445-460. ISSN 1749-8198






United Nations University




Tools for analyzing the water-food-energy-ecosystems nexus

Compiled for UNECE by the Energy Systems Analysis group of the Royal Institute of Technology (KTH), Stockholm

September 2015





Energy -Water-Food Nexus

D.L. Keairns, R.C. Darton, and A. Irabien





Understanding the Energy-Water Nexus

Matthew Halstead
Tom Kober
Bob van der Zwaan

September 2014





“Towards sustainable synergy between water, energy and food”













Nina Weitz, Claudia Strambo, Eric Kemp-Benedict, Måns Nilsson







Water, Food and Energy












A bottom-up approach to the nexus of energy, food and water security in the Economic Community of West African States (ECOWAS) region

Prof. Subhes Bhattacharyya
Mr. Nicola Bugatti
Mr. Hannes Bauer





Understanding the Nexus. Background Paper for the Bonn2011
Conference: The Water, Energy and Food Security Nexus.

Hoff, H.


Stockholm Environment Institute, Stockholm.




Anatomy of a buzzword: the emergence of ‘the
water-energy-food nexus’ in UK natural resource debates

Rose Cairns

Anna Krzywoszynska*





Understanding the Nexus of Food, Water, and Energy

AT Kearney





A quick scan

Water-food-energy nexus

Stijn Reinhard, Jan Verhagen, Wouter Wolters and Ruerd Ruben




The Circular Economy and the Water-Energy-Food Nexus





The global food – water – energy nexus






Water Food Energy Climate Nexus

World Economic Forum





Development of Pardee Rand Water Energy Food Security Index






Review of the Current State of Research on the Water, Energy, and
Food Nexus

Aiko Endo, Izumi Tsurita, Kimberly Burnett,
And Pedcris M. Orencio



Mitigating Risks and Vulnerabilities in the Energy-Food-Water Nexus in Developing Countries

Sustainability Institute





Gabriel Collins, J.D.
Baker Botts Fellow in Energy & Environmental Regulatory Affairs
June 2017




Managing the food,water,and energy nexus for achieving the
Sustainable Development Goals in South Asia

Golam Rasul





The Water-Energy Nexus and Urban Metabolism – Connections in Cities

Steven Kenway

January 2013



Thinking about Water Differently
Managing the Water–Food–Energy Nexus






Walking the Nexus Talk:
Assessing the Water-Energy-Food Nexus
in the Context of the Sustainable Energy for All Initiative






The 15 projects that will take on the food-water-energy nexus









Food, Water and Energy Nexus in India




The Food-Energy-Water Nexus

(GEO/NRSM 595)

University of Montana




Water–food–energy nexus with changing agricultural scenarios in
India during recent decades

Beas Barik1, Subimal Ghosh1,2, A. Saheer Sahana1, Amey Pathak1, and Muddu Sekhar






The Energy–Water–Food Nexus at Decentralized Scales

Lucy Stevens and Mary Gallagher, Practical Action, UK





Making governance work for water–energy–food nexus approaches

By Andrew Scott




Food, Water and Energy: Know the Nexus





Global Trends 2030: Alternative Worlds
a publication of the National Intelligence Council







A publication of the National Intelligence Council





Global Trends





Understanding Water- Energy-
Food Nexus from Mountain Perspective

David Molden, Aditi Mukherji, Golam Rasul, Arun Shrestha,
Ramesh Vaidya, Shahriar M. Wahid and Philippus Wester




Regulating the water-energy-food nexus: Interdependencies, transaction costs and procedural justice




Innovating at the food, water, and energy interface




The Water-Energy-Food Nexus. A New Approach in Support of Food Security and Sustainable Agriculture


Stock Flow Consistent Input Output Models (SFCIO)

Stock Flow Consistent Input Output Models (SFCIO)


SFCIO  = SFC + IO Models

SFC = Stock Flow Consistent

IO = Input Output

Stock Flow Consistent Input Output Models (SFCIO)


Integrating Varieties of Modeling Methods

  • Monetary Input Output Models
  • Physical Input Output Models
  • Stock Flow Consistent Models
  • System Dynamics Models


For integrating:

  • Physical Flows (Resources and Products)
  • Monetary Flows



From Ecological Macroeconomic Models: Assessing Current Developments





From A stock-flow-fund ecological macroeconomic model




From Stock-Flow Consistent Input–Output Models as a Bridge
Between Post-Keynesian and Ecological Economics

One effort to explicitly represent the dynamics of debt, finance, and other monetary factors has been the post-Keynesian stock-flow consistent (SFC) approach. At the same time, input–output (IO) models have been widely used to investigate sectoral interdependencies within the real economy, while environmentally extended input–output models have been used to analyze the relationship between the economy and ecological subsystems. However, the role of monetary dynamics has been left relatively unexplored in IO models (Caiani et al., 2014). This paper proposes a synthesis of elements from both SFC and IO models with insights from ecological economics to provide an avenue for investigating the interrelations between the monetary economy and the physical environment.


From Stock-Flow Consistent Input–Output Models as a Bridge
Between Post-Keynesian and Ecological Economics

By combining SFC models and IO models, financial flows of funds can be integrated with flows of real goods and services. Lawrence Klein, who developed large scale macroeconomic models typified by the FRB-MIT-Penn model, has noted the natural synergies between the National Income and Product accounts, the IO accounts, and the FF accounts (Klein, 2003). The approach of combining both SFC and IO models with ecological macroeconomics affords one method to unite those accounts, as suggested by Klein, and to simultaneously model monetary flows through the financial system, flows of produced goods and services through the real economy, and flows of physical materials through the natural environment. Models of this type may provide additional tools to aid macro economists, ecological economists, and physicists in the task of understanding the economy and the physical environment as one united and complexly interrelated system, rather than as a colloidal agglomeration of artificially separated analytical domains. These modes of analysis are required to study pressing problems such as climate change, which are neither purely economic, nor purely environmental, nor purely physical, but rather are all of the above (Rezai et al., 2013).



Please see my related posts:

Accounting For Global Carbon Emission Chains

Stock Flow Consistent Models for Ecological Economics




Key Sources of Research:


A stock-flow consistent input–output model with applications to
energy price shocks, interest rates, and heat emissions

Matthew Berg1, Brian Hartley2 and Oliver Richters3


Stock-Flow Consistent Input–Output Models as a Bridge
Between Post-Keynesian and Ecological Economics


Matthew Berg (The New School for Social Research)
Brian Hartley (The New School for Social Research)
Oliver Richters (International Economics, Oldenburg University)

October 7, 2015




Integrating Energy Use into Macroeconomic Stock-Flow Consistent Models

Presented by
Oliver Richters





The role of money and the financial sector in energy-economy models used for assessing climate and energy policy,

Hector Pollitt & Jean-Francois Mercure


Climate Policy, 18:2, 184-197



Ecological Macroeconomic Models: Assessing Current Developments

Lukas Hardt a,⁎, Daniel W. O’Neill



Ecological macroeconomics: Introduction and review





A stock-flow-fund ecological macroeconomic model

Yannis Dafermos a,⁎, Maria Nikolaidi b, Giorgos Galanis c





Potential Consequences on the Economy of Low or No Growth – Short and Long Term Perspectives

J. Mikael Malmaeus a,⁎, Eva C. Alfredsson



Growth, Distribution, and the Environment in a Stock-Flow Consistent Framework∗

Asjad Naqvi†

February 6, 2015




Foundations for an Ecological Macroeconomics: literature review and model development

Tim Jackson, Ben Drake (SURREY), Peter Victor (York University), Kurt Kratena, Mark Sommer (WIFO)




Towards a Stock-Flow Consistent Ecological Macroeconomics

Authors: Tim Jackson (SURREY), Peter Victor (York University), Ali Asjad Naqvi (WU)

March 2016


Consistency and Stability Analysis of Models of a Monetary Growth Imperative

Oliver Richtersa, Andreas Siemoneitb

a Department of Economics, Carl von Ossietzky University Oldenburg,
b Berlin,


Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)

Measuring Globalization: Global Multi Region Input Output Data Bases (G-MRIO)


A special issue of Economic Systems Research published in 2013 discussed currently available GMRIO data bases.  There are two strands of research in development and use of these databases:

  • Trade flows and global supply chains
  • Environmental Impacts of Economic Growth, Trade and Globalization



  • IDE JETRO Asian IO Tables
  • EORA
  • OECD Inter-Country Input-Output (ICIO) tables
  • GRAM (Global Resource Accounting Model )
  • World Input-Output Database (WIOD).
  • Global Trade Analysis Project (GTAP)


Another recent development is development of Trade in Value added databases analyzing trade flows of intermediate goods and fragmented global supply chains and production networks.  These projects are currently underway at the time of writing of this post.

TIVA Databases

  • NA TiVA Project
  • The OECD-WTO TiVA database
  • APEC TiVA initiative


There are also EE- GMRIO (Environmentally extended GMRIO) discussed else where in a related post.


GMRIO Databases



The Global Resource Accounting Model (GRAM) is a multi-regional input-output model (MRIO), which currently distinguishes between 62 countries and one ‘rest of the world’ region and 48 industrial sectors per country or region. The heart of the model is made up of OECD data on bilateral trade flows and input-output tables for 1995 to 2010. Combined with additional data sets, such as CO2 emissions and material extraction, the model enables production-related variables to be attributed to end consumption.




Arnold Tukker & Erik Dietzenbacher
Published online: 21 Mar 2013
This review is the introduction to a special issue of Economic Systems Research on the topic of global multi regional input–output (GMRIO) tables, models, and analysis. It provides a short historical context of GMRIO development and its applications (many of which deal with environmental extensions) and presents the rationale for the major database projects presented in this special issue. Then the six papers are briefly introduced. This is followed by a concluding comparison of the characteristics of the main GMRIO databases developed thus far and an outlook of potential further developments.



Bo Meng , Yaxiong Zhang & Satoshi Inomata
Published online: 21 Mar 2013
International input–output (IO) tables are among the most useful tools for economic analysis. Since these tables provide detailed information about international production networks, they have recently attracted considerable attention in research on spatial economics, global value chains, and issues relating to trade in value added. The Institute of Developing Economies at the Japan External Trade Organization (IDE-JETRO) has more than 40 years of experience in the construction and analysis of international IO tables. This paper explains the development of IDE-JETRO’s multi-regional IO projects including the construction of the Asian International Input–Output table and the Transnational Inter regional Input–Output table between China and Japan. To help users understand the features of the tables, this paper also gives examples of their application.




Arnold Tukker , Arjan de Koning , Richard Wood , Troy Hawkins , Stephan Lutter , Jose
Published online: 21 Mar 2013
EXIOPOL (A New Environmental Accounting Framework Using Externality Data and Input–Output Tools for Policy Analysis) was a European Union (EU)-funded project creating a detailed, global, multi regional environmentally extended Supply and Use table (MR EE SUT) of 43 countries, 129 sectors, 80 resources, and 40 emissions. We sourced primary SUT and input–output tables from Eurostat and non-EU statistical offices. We harmonized and detailed them using auxiliary national accounts data and co-efficient matrices. Imports were allocated to countries of exports using United Nations Commodity Trade Statistics Database trade shares. Optimization procedures removed imbalances in these detailing and trade linking steps. Environmental extensions were added from various sources. We calculated the EU footprint of final consumption with resulting MR EE SUT. EU policies focus mainly on energy and carbon footprints. We show that the EU land, water, and material footprint abroad is much more relevant, and should be prioritized in the EU’s environmental product and trade policies.




Robbie M. Andrew & Glen P. Peters
Published online: 21 Mar 2013
Understanding the drivers of many environmental problems requires enumerating the global supply chain. Multi-region input–output analysis (MRIOA) is a well-established technique for this purpose, but constructing a multi-region input–output table (MRIOT) can be a formidable challenge. We constructed a large MRIOT using the Global Trade Analysis Project (GTAP) database of harmonised economic, IO, and trade data. We discuss the historical development of the GTAP-MRIO and describe its efficient construction. We provide updated carbon footprint estimates and analyse several issues relevant for MRIO construction and applications. We demonstrate that differences in environmental satellite accounts may be more important than differences in MRIOTs when calculating national carbon footprints. The GTAP-MRIO is a robust global MRIOT and, given its easy availability and implementation, it should allow the widespread application of global MRIOA by a variety of users.




Erik Dietzenbacher , Bart Los , Robert Stehrer , Marcel Timmer & Gaaitzen de Vries
Published online: 21 Mar 2013
This article describes the construction of the World Input–Output Tables (WIOTs) that constitute the core of the World Input–Output Database. WIOTs are available for the period 1995–2009 and give the values of transactions among 35 industries in 40 countries plus the ‘Rest of the World’ and from these industries to households, governments and users of capital goods in the same set of countries. The article describes how information from the National Accounts, Supply and Use Tables and International Trade Statistics have been harmonized, reconciled and used for estimation procedures to arrive at a consistent time series of WIOTs.




Manfred Lenzen , Daniel Moran , Keiichiro Kanemoto & Arne Geschke
Published online: 21 Mar 2013
There are a number of initiatives aimed at compiling large-scale global multi-region input–output (MRIO) tables complemented with non-monetary information such as on resource flows and environmental burdens. Depending on purpose or application, MRIO construction and usage has been hampered by a lack of geographical and sectoral detail; at the time of writing, the most advanced initiatives opt for a breakdown into at most 129 regions and 120 sectors. Not all existing global MRIO frameworks feature continuous time series, margins and tax sheets, and information on reliability and uncertainty. Despite these potential limitations, constructing a large MRIO requires significant manual labour and many years of time. This paper describes the results from a project aimed at creating an MRIO account that represents all countries at a detailed sectoral level, allows continuous updating, provides information on data reliability, contains table sheets expressed in basic prices as well as all margins and taxes, and contains a historical time series. We achieve these goals through a high level of procedural standardisation, automation, and data organisation.




Thomas Wiedmann & John Barrett
Published online: 21 Mar 2013
The impressive development in global multi-region input–output (IO) databases is accompanied by an increase in applications published in the scientific literature. However, it is not obvious whether the insights gained from these studies have indeed been used in political decision-making. We ask whether and to what extent there is policy uptake of results from environmentally extended multi-region IO (EE-MRIO) models and how it may be improved. We identify unique characteristics of such models not inherent to other approaches. We then present evidence from the UK showing that a policy process around consumption-based accounting for greenhouse gas emissions and resource use has evolved that is based on results from EE-MRIO modelling. This suggests that specific, policy-relevant information that would be impossible to obtain otherwise can be generated with the help of EE-MRIO models. Our analysis is limited to environmental applications of global MRIO models and to government policies in the UK.







From Economic Systems Research

Volume 26, 2014 – Issue 3: A Comparative Evaluation of Multi-Regional Input-Output Databases


Daniel Moran & Richard Wood
Published online: 14 Jul 2014

In this paper, we take an overview of several of the biggest independently constructed global multi-regional input–output (MRIO) databases and ask how reliable and consonant these databases are. The key question is whether MRIO accounts are robust enough for setting environmental policies. This paper compares the results of four global MRIOs: Eora, WIOD, EXIOBASE, and the GTAP-based OpenEU databases, and investigates how much each diverges from the multi-model mean. We also use Monte Carlo analysis to conduct sensitivity analysis of the robustness of each accounts’ results and we test to see how much variation in the environmental satellite account, rather than the economic structure itself, causes divergence in results. After harmonising the satellite account, we found that carbon footprint results for most major economies disagree by<10% between MRIOs. Confidence estimates are necessary if MRIO methods and consumption-based accounting are to be used in environmental policy-making at the national level.


Satoshi Inomata & Anne Owen

Published online: 11 Aug 2014

This editorial is the introduction to a special issue of Economics Systems Research on the topic of intercomparison of multi-regional input–output (MRIO) databases and analyses. It explains the rationale for dedicating an issue of this journal to this area of research. Then the six papers chosen for this issue are introduced. This is followed by a concluding section outlining future directions for developers and users of MRIO databases.


Please see my related posts:

Accounting For Global Carbon Emission Chains

Development of Global Trade and Production Accounts: UN SEIGA Initiative

Stock Flow Consistent Models for Ecological Economics



Key Sources of Research:


The World Input‐Output Database (WIOD): Contents, Sources and Methods

Edited by Marcel Timmer (University of Groningen)

With contributions from:
Abdul A. Erumban, Reitze Gouma, Bart Los, Umed Temurshoev and
Gaaitzen J. de Vries (University of Groningen)
Iñaki Arto, Valeria Andreoni Aurélien Genty, Frederik Neuwahl, José
M. Rueda‐Cantuche and Alejandro Villanueva (IPTS)
Joe Francois, Olga Pindyuk, Johannes Pöschl and Robert Stehrer
(WIIW), Gerhard Streicher (WIFO)

April 2012, Version 0.9




Analyzing Global Value Chains using the World Input-Output

Bart Los (University of Groningen)
with Marcel Timmer (Groningen), Gaaitzen de Vries
(Groningen) and Robert Stehrer (wiiw Vienna)

BBVA Foundation – Ivie Workshop, October 30, 2017, Valencia


An Overview on the Construction of North American Regional Supply-Use and Input-Output Tables and their Applications in Policy Analysis

Statistics Canada
Anthony Peluso
U.S. Bureau of Economic Analysis
Gabriel Medeiros
Jeffrey Young
U.S. International Trade Commission
Ross J. Hallren
Lin Jones
Richard Nugent
Heather Wickramarachi

Working Paper 2017-12-A





The Global MRIO Lab – charting the world economy,

Manfred Lenzen, Arne Geschke, Muhammad Daaniyall Abd Rahman, Yanyan
Xiao, Jacob Fry, Rachel Reyes, Erik Dietzenbacher, Satoshi Inomata, Keiichiro Kanemoto, Bart Los, Daniel Moran, Hagen Schulte in den Bäumen, Arnold Tukker, Terrie Walmsley, Thomas Wiedmann, Richard Wood & Norihiko Yamano


Economic Systems Research, 29:2, 158-186–charting%20the%20world%20economy.pdf






Erik Dietzenbacher, Manfred Lenzen, Bart Los, Dabo Guan, Michael L. Lahr,
Ferran Sancho, Sangwon Suh & Cuihong Yang


Economic Systems Research, 25:4, 369-389




OECD Inter-Country Input-Output (ICIO) Tables, 2016 edition



Trade in Value Added





The Global Resource Accounting Model (GRAM)
a methodological concept paper

Stefan Giljum a, Christian Lutz b, Ariane Jungnitz b

a Sustainable Europe Research Institute (SERI), Vienna, Austria
b Institute for Economic Structures Research (GWS), Osnabrück, Germany

April 2008





Thomas Wiedmann & John Barrett


Economic Systems Research, 25:1, 143-156




Erik Dietzenbacher , Bart Los , Robert Stehrer , Marcel Timmer & Gaaitzen de


Economic Systems Research, 25:1, 71-98,



System of Environmental-Economic Accounting 2012— Applications and Extensions



Calculating Trade in Value Added


Prepared by Aqib Aslam, Natalija Novta, and Fabiano Rodrigues-Bastos1

July 2017



World Input-Output Network

Federica Cerina, Zhen Zhu, Alessandro Chessa and Massimo Riccaboni

July 1, 2015




Making Global Value Chain Research More Accessible

Lin Jones, William Powers, and Ravinder Ubee1

U.S. International Trade Commission, Office of Economics

October 21, 2013


On the Measurement of Upstreamness and Downstreamness in
Global Value Chains

Pol Antras
Harvard University and NBER
Davin Chor
National University of Singapore

October 30, 2017






Norihiko Yamano and Nadim Ahmad





Arnold Tukker & Erik Dietzenbacher


Econ omic Systems Research, 25:1,1-19



Erik Dietzenbacher , Bart Los , Robert Stehrer , Marcel Timmer & Gaaitzen de


Economic Systems Research, 25:1, 71-98




A review of recent multi-region input–output models used for consumption-based
emission and resource accounting

Thomas Wiedmann




World Input-Output Network

Federica Cerina, Zhen Zhu, Alessandro Chessa, Massimo Riccaboni




A Network of Networks Perspective on Global Trade

Julian Maluck, Reik V. Donner





Konstantin Stadler, Kjartan Steen-Olsen & Richard Wood


Economic Systems Research, 26:3, 303-326,%20Steen-olsen,%20Wood_2015_Unknown_the%20‘%20Rest%20of%20the%20World%20’%20–%20Estimating%20the%20Economic%20Structure%20of%20Missing%20Regions%20in%20Global%20Multi.pdf



“Trade, Environment, and Growth: Advanced topics in Input-Output Analysis”*

Professor: Erik Dietzenbacher (U. Groningen)

March 9-13, 2015





Wassily Leontief and the discovery of the input-output approach



Networks of value added trade,

Amador, João; Cabral, Sónia


ECB Working Paper, No. 1931, ISBN 978-92-899-2179-4,



Arnold Tukker , Arjan de Koning , Richard Wood , Troy Hawkins , Stephan
Lutter , Jose Acosta , Jose M. Rueda Cantuche , Maaike Bouwmeester , Jan Oosterhaven ,
Thomas Drosdowski & Jeroen Kuenen


Economic Systems Research, 25:1,50-70–%20Development%20and%20Illustrative%20Analyses%20of%20a%20Detailed%20Global%20Mr%20Ee%20SutIot.pdf




The World Input-Output Database (WIOD) project

Robert Stehrer

OECD-WPTSG meeting

November 18, 2009 – OECD, Paris



The World Input-Output Database (WIOD): Construction, Challenges and Applications

Abdul Azeez Erumbana, Reitze Goumaa, Bart Losa,b, Robert Stehrerc, Umed
Temurshoevb, Marcel Timmer a,b,*, Gaaitzen de Vries

Paper prepared for World Bank workshop
“The Fragmentation of Global Production and Trade in Value Added”,
June 9-10, 2011.


The World Input-Output Database: Content, Concepts and Applications.

Timmer, M. P., Dietzenbacher, E., Los, B., Stehrer, R., & de Vries, G. J.


GGDC Working Papers; Vol. GD-144).



Measuring Global Value Chains with the WIOD (World Input-Output Database)

Marcel Timmer

Groningen Growth and Development Centre
University of Groningen
(presentation at OECD conference,
Paris, 21 September, 2010)




Global value chains, trade, jobs, and environment: The new WIOD database

Hubert Escaith, Marcel Timmer

13 May 2012


Wassily Leontief and the discovery of the input-output approach

Olav Bjerkholt






Guillaume Daudin (Lille-I (EQUIPPE) & Sciences Po (OFCE), Christine Rifflart, Danielle
Schweisguth (Sciences Po (OFCE))1

This version: July 2009




An Anatomy of the Global Trade Slowdown based on the WIOD 2016 Release

Marcel P. Timmer, Bart Los,
Robert Stehrer, and Gaaitzen J. de Vries

December 2016