Flow/Fund Theory and Rural Livelihoods

The concept of social metabolism and its relation with ecological distribution conflicts is a key theme in the work of Joan Martinez-Alier and the Barcelona school. It creates a bridge between the fields of ecological economics and political ecology. Following Georgescu-Roegen’s fund-flow theory of economic production, the present chapter has the objective to illustrate with a case study at the commodity frontier of the Andes-Amazon region in Peru, the relation between material flows and ecological distribution conflicts. The systemic and participatory approaches we have adopted can facilitate the prevention of social conflicts. Decision-makers should be aware of different perspectives hold by diverse social groups and their relation with the biophysical reality, and acknowledging them as part of social metabolism studies.