**1. Introduction**

One of the modern ways to test a new technology is to implement it in the developing world. Pyrolysis can be viewed as a lowtech technology suitable for these purposes. It was possible over the last 10 years to try to make many attempts to use the technology. It became very fast quite clear that the prime problem is not with the technology, but rather with the economic factors. A universal economic solution is needed. There should be no conceptual difference between the developing and the developed world especially now in the age of globalization. People tend to act economically similarly in any society with a certain variety that has to be incorporated in the general solution. There is no any fundamental advantage in a developed

country over the developing country in the age of globalization. In a stagnating region in a developed country the situation is even worse as in a developing country where people normally are not deprived of the hope of improvement. This text is based not as much on the academic studies as on 10 years of practical experience of the author of this discourse working as a development engineer in the field of the sustainable technologies. There is a strong believe that or there will be very much attention shown towards the complex economic solutions or there is no way the pyrolysis-based technologies will find the broad popular support.

## **2. Green economic defensive initiative**

If an investment in a technology is not profitable, any investments in this technology will be just a dream regardless of how much this technology is beneficial for the humanity. Of course, the state can get involved and finance the implementation of the technology, but for a limited period of time. The development of the technology is way more stable process when the technology grows naturally during its industrial implementation. Time works for the technology and the technology grows with time.

Newfoundland could have been a rich and economically self-sustainable territory, but nowadays if not the recent discovery of the shelf oil the province would have been just poor. This is the direct contradiction to the modern state of development of technologies and the availability of natural resources on the island. There are winds, waves and solar power for energy. There are ores on the island and the neighboring coast. There is carbon in the form of the very rich on vegetation sea shelf.

As always there is the discussion between professionals of different trades about the measures that could have been taken by the state to improve the situation, and where would have been the border between the state involvement and the wellorganized popular movement. How far the state must go in its endeavors to support and control is a very controversial topic. Internet grew out of the USA military technologies, but the leading USA corporations advocate for the free market development. Sweden is trying to exercise the tight political control over its development and is a success, but North Korea with its totalitarian control over everything is rather an economic failure.

The main problem with the governmental funding is that it is limited and quite often poorly selective. It relies on already existing sources of the national income and non-profit investments what excludes the possibility of self-propulsion. A solution without the idea of self-propulsion is the recipe for a failure in the long run.

In plain words, the task is to build a self-sufficient economy if not the closed cycle economy within the conditions of the global free trade economy with the orientation on the global markets. The contradictory in theory task is not a contradictory task in reality. Historically there are examples that rather support the claim [1]. The concentration of production in one spot in the global economy will automatically lead to the spill over of the production to other regions and to the migration of the labour force to this region thus rendering the idea of the closed economy unsustainable.

Possible solutions with the macroeconomic instruments for the local economy in context of the global sustainable development would be protection by currency, protection by import taxes and redistribution based on various economic features. All these solutions are secondary after the civil society is already in place. Without the civil society any investments in any production beyond the tradesperson level are impossible. These are macroeconomics topics.

### *On the Feasibility of the Closed Cycle Local Economy Based on Pyrolysis DOI: http://dx.doi.org/10.5772/intechopen.100230*

The discussion on this level of analysis comes every time the economic problem is out of scale of the microeconomic discussions.

The objective of this paper is to discuss the possibility of any solutions on the local level. An engineer is the key figure for the local solution. A cash generating product should be invented, costs of the production should be minimized. Additional problems should be considered, such as sustainability of production in the long run, suitable industrial organization, and many others.

The recent history knows a number of spectacular failures of companies and governments making investments in new technologies. There are a few examples to mention. There were some talks circulating in the professional environment concerning the German investments in the solar energy projects in the northern Africa. There were some articles in the media concerning Italian attempts to produce components of TV sets in Russia. Both projects failed because of the lack of interest of the local population. Definitely, the companies were bringing wealth to the local communities, but the population of the local communities felt that they were turning into the colonial deprived population. Direct resistance or very negligent fulfillment of duties are normally the outcome. In both cases the tremendous financial losses were the result.

What is absolutely necessary to do from the earliest point of the foundation of a new enterprise is to establish the proper relations with the local labour force and all active parties involved with the project. Here comes the engineer to the forefront as the leader of the working and the conveyer of the technical fulfillment of the project.

A possible solution for the involved participation of the local labour force could be industrial farming. This term is coined by the author of this discourse. The idea is straightforward and simple, though the technical and the organizational side of the project is a challenge. It was noticed that classical cottage economy was a possible economic solution in terms of the involvement of the local population in an economic activity. Small proprietors and at the same time producers develop positive attitude towards the means and the process of production as far as there is a demand for their product and the flow of cash allowing for the accumulation of wealth [2].

Economic studies based on the German reality clearly show that small productional units are no less efficient than big corporations. Studies based on the American reality show that small economic units have lower income per worker than big corporations. Putting all together it is possible to conclude that local productional units in junction with the centralized system of coordination, procurement, and sales is possible and necessary in order to compete successfully on the international markets. The centralized organization must take over such questions as labour education, sustainability of production and certification of production processes and produced goods, overcoming the barrier of the initial capital when required.

Let us take a hypothetical country with low industrial development for the ease of analysis. Let us say, we want to organize the solar panels production of energy in the form of the industrial farming, let say somewhere on the African soils with the idea of sales to the European Union. Clearly this idea with the modern development of energy transmission technologies makes little sense. The resistance in electric cables consumes most of the energy over the long distances. And actually, it is the plague of Canada, where the waterpower plants in the North of the country with all their potential find no consumers as all the consumers are far away in the South. Nevertheless, for the purposes of the economic analysis, this could be a proper example.

There is no question that local peoples of Africa are well organized in terms of their local cultures for the purposes of solving of the local problems arising out

of the state of the local development. But the existing patterns are not suitable for any investments in any complex production. Any investments are not secure, no appropriate technical stuff, and there is no mechanism to secure the return on the investments made. All these missing parts are still to invent in order to secure any growth of the local wealth and stabilization of the local society as the whole.

There is a need for a sustainable product, a product that can be sold repetitiously for profit in the long run without the disruption of the local investment patterns. In case of an African scenario everything has to be done pretty much from the scratch. Sale markets have to be found and a product for these markets invented, local labour markets invented and the payments for the labour invented and better in the manner of the appropriate solution in the long run. The technological process suitable for the local reality should be put together and suppliers found. In other words, no sustainable development without the sustainable economic and industrial organizations. No sustainable economic and industrial organizations without the sustainable product.

In the developed countries the situation is not so much different. Though the exchange markets are in place it does not mean that the local economy effectively protected. It can be overwhelmed by businesses from much stronger or cheaper economic regions and suffer from flight of labour and businesses. It can suffer from the local social immobility being unable to initiate a new production up to the standards of the global economic and technical development. Even if all the necessary economic institutions are in place a new sustainable product has to be found and the sustainable production has to be organized.

Any commercial production is dependable on the cash inflow or the revenue created through the sale of a commercial product. The product that can be sold in the long run is central to the process. Existence in the long run means that markets accept the product, its revenue covers all the expenses, and its production does not disrupt the social and natural environment.

There are always concerns about the saturation of the existing markets. There is always a fear that to introduce a new product to the existing markets or to increase the already existing volumes of goods for sale is almost impossible. There is the perception that the modern markets are contracting and not expanding. The counterargument would be the assessment of the global markets by the coverage of the global markets with the existing supplies. From this prospective the global markets exhibit an enormous potential for growth. The growing population is outstripping the globally available resources. The majority of the global population is in poverty. Definitely, everything that can close the gap is feasible in theory. In praxis this means that or a new product finds its markets without contributing to the global problem of shortage like jewelry or the global shortage coverage analysis can validate the future existence of the product. The proposed sequence of analysis from the sustainable product, to the organization of production is: labour involvement and remuneration, labour education and social impacts. Technical aspects—the organization of the production itself, the system of provision, storage and delivery. Business solution—financing, marketing, and sales.

Stepping aside from the proposed sequence of analysis the first question to discuss is the protection of the profit pro unit of the product sold of the production in question. The latest trend in the economic development is the protection of the local producers by means of the local currency. This method has very much potential und fully recognized by certain members of the European Union. The main exchange currency of the European Union is euro. Some countries like Check Republic keep their own currencies for the local circulation. The floating rate of exchange of currencies allows bringing in balance the imports and exports of a nation. The buildup of a stack of currency of one country by another country will immediately trigger

at least in theory the adjustment of the exchange rates thus rendering the deficit or surplus in the balance of trade impossible. As the result the national industries as a whole are protected from the foreign competition and the imports match the exports.

At this point many professional people may wonder what kind of protection and from what it would be. It is quite clear that the material wealth is determined mainly through the availability of material resources and productivity of labour. But, first of all, we are living less and less in the world with the dominant material culture in terms of the material production. Alone the video games with the whole army of the support personnel working in the virtual reality prove the point. And besides this, it is about the protection of the sustainable balanced development. The developed industrial centers may produce cheaper and better. This leads to the depletion of the local financial power, regional stagnation and the flight of labour and businesses. The introduction of the local currencies leads to the immediately less efficient production but gives the opportunity for the local economic powers to grow. Maybe it is not so evident when one looks at the USA, but when someone looks at Africa next door to Europe one sees an absolutely different picture. In the States there are very strong agglomerations of the national industries and the rest are most of the time thinly populated areas. In Europe, it is reach western European states and just over the border—poverty.

The national economic strategy based on the idea of the global technological leadership is pretty much impossible for the majority of the nations. What is absolutely possible is to be not worth than the rest of the world and sometimes even better. There are ways to protect the local industries, pay for the trade deficit, learn from the rest of the world and even go forward and contribute to the world's development as the provider of the new ideas. Let us call the strategy the economic defensive initiative. If these strategy is based on the local renewable resources it has the right to be called the "Green economic defensive initiative".

In other words, with the local currency as the mechanism of redistribution that makes local prices cheaper than the foreign goods at the expense of the local economic efficiency, there is a chance that there will be no flight of the local industries and labour out of the region. The protection of the local industries by means of other economic institutions is not necessary. The facilitation by such means as well-developed infrastructure is not a bad idea. An alternative to the protection by currency would be direct transfers paid by the federal government to regions to sustain their local economic development.

It is still quite unclear how to introduce the scheme imitating the national local currency in a community or even a territory. So far with only a few experiments on the go it is too early to say to what extent the scheme may work. In an African remote local community, it is possible to introduce something like a local currency with the clearing center somewhere in a Western bank. Actually, RBC bank of Canada was ready to help out to run the scheme for any community, for an African, Latin American or East European. The support was to be provided for the financial operations of an enterprise and extended for the individual accounts of the labour involved.
