Exploring how localization might be the key to both environmental sustainability and personal well-being
The Economics of Happiness examines the hidden costs of globalization and the benefits of localization
For some reason, I’m fascinated with people’s “happiness” — what creates it, what diminishes it, and how our economic systems influence our collective sense of well-being. When I first saw the trailer for “The Economics of Happiness,” I knew I had to watch the full documentary to better understand the relationship between our global economic structures and our personal fulfillment.
This thoughtful film presents a provocative thesis: that the economic globalization which has defined our world for decades may be undermining not only our environmental health but also our social cohesion and individual happiness. More intriguingly, it suggests that the solution might lie in a concept called “localization” — bringing economic activity back to a human-scale, community-oriented model.
In this post, I want to explore the central arguments of the documentary and consider what they might mean for how we structure our economies, communities, and personal lives in the future.
The Hidden Costs of Globalization
According to the documentary, economic globalization—the integration of national economies through trade, investment, and capital flows—has led to an unprecedented expansion in the power of multinational corporations and financial institutions. While this has created wealth for some, it has come with significant costs that often go unacknowledged in mainstream economic discourse.
These costs include:
- Environmental degradation — Global supply chains requiring long-distance transportation contribute heavily to carbon emissions and climate change
- Cultural homogenization — Local traditions, languages, and practices are increasingly replaced by a uniform global consumer culture
- Economic instability — Interconnected financial markets spread risk throughout the system, as evidenced by the 2008 global financial crisis
- Psychological distress — Competitive, consumption-driven lifestyles lead to increased stress, anxiety, and social isolation
Perhaps the most profound insight of the documentary is that globalization hasn’t just changed our economic systems—it has fundamentally altered our relationship with ourselves, our communities, and the natural world.
Voices for a New Economic Paradigm
What makes “The Economics of Happiness” particularly compelling is its diverse chorus of voices from across six continents. The documentary features perspectives from renowned thinkers and activists including:
- Vandana Shiva — Environmental activist and food sovereignty advocate
- Bill McKibben — Author and founder of 350.org
- David Korten — Economist and author of “When Corporations Rule the World”
- Juliet Schor — Economist and sociologist exploring work-life balance
- Samdhong Rinpoche — Former Prime Minister of Tibet’s government in exile
Despite their different backgrounds and perspectives, these voices converge around a common thesis: that our current economic model is neither environmentally sustainable nor conducive to genuine well-being. They argue that two emerging crises—climate change and peak oil—leave us with little choice but to reimagine our economic systems.
Watch the trailer for “The Economics of Happiness” documentary
The film suggests that the path to both ecological preservation and human happiness may require us to fundamentally reconsider what we value and how we structure our economic lives.
Localization: An Alternative Path Forward
The central solution proposed in the documentary is what its creators call “localization”—a shift toward more self-sufficient, community-oriented economies built around several key principles:
- Food localization — Producing food closer to where it’s consumed through urban gardens, farmers’ markets, and community-supported agriculture
- Local businesses — Supporting small, locally-owned enterprises that keep wealth circulating within communities
- Local energy production — Developing decentralized renewable energy systems adapted to local conditions
- Local currencies — Creating complementary currencies that encourage local trade and relationships
The film argues that these localized approaches create not only more resilient environmental systems but also healthier communities and more meaningful human connections. By bringing production closer to consumption, localization could potentially reduce our environmental footprint while simultaneously increasing our sense of belonging and purpose.
The Psychological Benefits of Localization
One of the most fascinating aspects of “The Economics of Happiness” is its exploration of how economic systems affect our psychological well-being. The documentary suggests that localization could help address several factors that contribute to modern unhappiness:
- Strengthening community bonds — Local economies create more opportunities for meaningful human connection in an increasingly isolated world
- Providing meaningful work — Smaller-scale, more diversified local economies often offer work that feels more purposeful and less alienating
- Reducing status anxiety — Local economies may be less driven by status competition and conspicuous consumption
- Reconnecting with nature — Localization inherently involves a closer relationship with the natural environment
While globalization promised efficiency and abundance, the documentary suggests it may have inadvertently created a world of disconnection. Localization, by contrast, offers the possibility of rebuilding the social fabric that gives life meaning.
Policy Changes for a Localized Economy
The film acknowledges that shifting toward more localized economies would require significant policy changes at national and international levels. Some of the proposed policy reforms include:
- Re-regulating international trade and finance — Placing limits on speculative capital flows and reorienting trade rules to favor local production
- Reforming subsidies — Redirecting subsidies from global corporations and industrial agriculture toward local businesses and sustainable farming
- Internalizing environmental costs — Ensuring that the prices of goods reflect their true environmental and social costs
- Supporting local culture — Protecting cultural diversity through policies that limit corporate media concentration
These policy changes would aim to level the playing field between global and local economies, allowing for a more balanced approach that preserves the benefits of international exchange while prioritizing local resilience.
The Growing Localization Movement
Perhaps the most hopeful aspect of the documentary is its portrayal of the already-growing movement toward localization happening in communities worldwide. From urban farming initiatives in Detroit to local currency systems in the UK, people are beginning to experiment with alternative economic models that prioritize well-being and sustainability over growth and profit.
Some examples of localization in action include:
- Transition Towns — Communities working to build local resilience in the face of climate change and peak oil
- Community-supported agriculture — Direct partnerships between farmers and consumers that share both risk and abundance
- Local business alliances — Networks of independent businesses collaborating to keep wealth in their communities
- Time banks and skill shares — Alternative exchange systems that value everyone’s time equally
The documentary suggests that true transformation doesn’t always come from the top down. Often, it emerges from the grassroots—from individuals and communities creating the world they wish to see.
Conclusion: Reimagining Happiness in a Local World
After watching “The Economics of Happiness,” I’m struck by how thoroughly it challenges our conventional thinking about progress and development. It invites us to question whether bigger, faster, and more global is always better—or whether there might be wisdom in the local, the small-scale, and the human-sized.
What’s particularly compelling about the localization vision presented in the film is that it doesn’t require us to choose between environmental sustainability and human well-being. Instead, it suggests these goals are inherently aligned—that the same economic transformations that might help us address climate change could simultaneously help us create more meaningful, connected lives.
While a complete transition to localized economies may seem idealistic, the documentary makes a convincing case that we can begin to implement these principles now, through both individual choices and collective action. By supporting local businesses, growing more of our own food, engaging in our communities, and advocating for policy changes, we can start building a more resilient, happiness-oriented economy today.
Join the Conversation
Have you experienced the benefits of “going local” in your own life? What challenges do you see in transitioning to more localized economies? Share your thoughts and experiences in the comments below!