Lessons From Earth:

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Lessons From Earth Experiences Which Can
Guide Lunar and Asteroidal Development Charles
O'Dale Senomix Software Inc.
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From a Private Sector Perspective - The business
of space resources is new - The environment is
not - Products will be sold to the same markets
on Earth - Operating in the same social
framework - Many of the same challenges will be
faced So, what can be learned from past
experience?
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The Private Sector is Good at Being Efficient -
Most effective model of human co-operation
today - Also very good at being Inefficient -
Resolution of imposed inefficiency is often the
greatest benefit from private sector
corporations.
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Consider Restrictions Placed on Business -
Workplace safety - Pollution regulation -
Typically imposed by external organizations -
Government - Unionized employees / public
pressure - Businesses do not tend to introduce
inefficiencies - They add costs / distract from
business But inefficiencies can improve business
and society
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Private Sector Approach to Problem Solving -
Business is told which inefficiency to overcome -
Not how to overcome it - Solutions are left to
market forces for resolution - Consider
pollution reduction in automobiles - Emissions
standards declared by Government - Businesses
were directed to meet them - The result? -
Catalytic converters / cleaner fuels / better
engines
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The Inefficiency Remains in Place, but... -
Business stands to gain from finding better
solutions - Most effective / least expensive
solutions prevail - Available solutions and
technology get better - Over time, an ideal
solution emerges on its own merits - Government
social objectives achieved - Without the need for
constant oversight - Using the abilities of the
private sector - To resolve social / regulatory
problems
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Establishing Claims for Resources - On Earth,
claims involve - Physical surveying, claim
markers - Registration, territory definition - An
outline of the business - There is also a
transfer of risk from grantor - Presence of a
resource not always certain - Finding the
resource is expensive - Attempting to detect
marketable quantities - Made easier with modern
technology - But initial geology is still often
an educated guess
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As a Result of the Discovery Process - The
business discovers the resource (or not) - They
have also demonstrated significant effort - If a
business is going to expend that effort... -
They're likely to use the information gained -
An authority granting the claim is assured
that the resources found will be used - A
concern for targets of economic stimulation -
Such as space
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Is There a Transfer of Risk in Space? - Remote
sensing from Earth can detect resources -
Resource mass and location are often the draw -
Not necessarily the purity or concentration -
Little doubt of economic viability - Surveying
can be done remotely - For claim marker
Landing of a NEAR-type craft - Spending a few
million dollars to secure billions
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Does This Demonstrate Intent / Ability to Use? -
Has the claimant expended significant effort? -
Want to avoid - Land grabs - Gadflies - Unlikely
claims - Everything a 'gold rush' could face -
Should a threshold of difficulty be
established? - Matching the relative effort
required on Earth
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Adding an Inefficiency to Space Claims - Why not
add a human component? - A recognized claim would
be established by - Having a human visit the
location of interest - Deliver a recognized claim
marker - Return in good health - Would indicate
ability to use resources - At a minimum, claimant
had ability to reach resources - Demonstrates
intent of use - Willingness of planning, effort
and expense for claim
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Demonstrates Intent of Use - It takes resources
to send a person to an asteroid - Just a fraction
of that required for full development - Only
those who intend full use would bother - Creates
an inefficiency to benefit business - A hurdle is
put in place - Claims will only be made by
serious claimants - Streamlines the claims
management process - Only legitimate claims with
reasonable expectation of being pursued would
be filed
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Creates a Social Benefit Through Inefficiency -
The 'space authority' is stating requirements for
claim - Not stating how it is to be
accomplished - As with emissions reductions in
automobiles - Human spaceflight can be made a
part of commerce - Implementation is not
restricted - Invention, innovation, cost
reduction can be employed - Over time, reducing
cost and complexity - Emissions reductions
introduced cleaner cars - An inefficient claims
process can stimulate a human presence in space
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Oversight Still a Problem - No declared owner of
space resources - Who is the authority who can
grant claims? - Looking to the private sector -
Is a self-policing trade organization the
answer? - Instead of direction from Government -
Charge a corporation with responsibility for
oversight
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Leave Management to the Experts - Define the
rules / inefficiencies to be followed - Leave the
organization to find the best solution - Follow
the example of Medical / Legal / Engineering -
Self-policed groups for essential services -
Complex workplace rules - Responsible for
membership conduct - A space authority could
certify off-Earth business - Ensure rules of
conduct are followed
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Follow the Example of Property Rights on Earth -
Tenants of a property know best how to use it -
Property rights free that knowledge for use -
Results in more effective land use - Rather than
a 'command economy' approach - Who better to
finalize claims / disputes in space? - Many
non-traditional issues to resolve - Involve
those who - Use the resources - Know the issues
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Resource Use and Common Heritage of Mankind -
Core idea Space resources belong to all
people - All people should benefit from their
use - There are ways around the issue of
ownership - Leases, etc. without distinct
property owners - This avoids 'ownership' but
does it benefit humanity? - What do people gain
from this inefficiency? - Is the spirit of CHM
being exercised? - What have previous solutions
been?
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Model for Common Resources on Earth - Alaska
Permanent Fund Corporation - State resources
belong to all residents - Thus, all residents
should directly benefit - At least 25 of state
taxes are placed in the fund - Directed to
income-producing investments - Earnings
distributed to residents via annual cheque -
Citizens of Alaska see a direct benefit -
Business provided with clear title to
resources - If space resources belong to all of
humanity - Could a means be found to benefit all
people?
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Create a Space Dividend Fund - Follow Alaska's
example of enabling clear title - While
delivering definite benefits to all residents -
Instead of delivering a cheque - Create an
organization to direct the funds to where they
would do the most good - How could 'the most
good' be determined?
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Copenhagen Consensus Project -
www.CopenhagenConsensus.com - A pragmatic,
politically-minimized project to - Identify the
most pressing concerns for humanity - Identify
how resources would best be allocated - For
implementation, follow private-sector examples -
Gates Foundation - To exercise the spirit of
CHM - Why not establish a corporation to 'do the
most good'?
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What Good Will Space Development Do For Earth? -
With an Earth Dividend Fund - A distinct benefit
is waiting to be used - An unlimited pool of
capital directed to world benefit - Areas of
human difficulty not adequately addressed - Dealt
with directly - Use the efficiency and capital
of the private sector - Deliver many permanent
social benefits
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Recent Social / Business Success 802.11b /
Wi-Fi - Suddenly appeared, instantly
successful - How did this happen? - Radio
spectrum is tightly regulated - General
summary - Wi-Fi operates in unlicensed
spectrum - Wasn't usable when first licenses
drafted - 1985 spectrum opened for
communication use - When a common standard was
created in 1999 - Was very useful to many people
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Convergence of Technology and Regulation - Rules
in early 1900's could not have taken digital
technology into account - Not all spectrum was
immediately usable - Regulation of spectrum
able to grow with technology - We shouldn't
expect predictions to be correct - Unlike
radio spectrum... - All space resources will
be available at once - Regulation may not grow
with technology - Create a regulatory
foundation to grow with tech.
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Attempts at Flexible Frameworks Today - For
guidance, watch current and emerging examples -
FCC adapting to digital technology - From
spectrum ownership to digital commons - U.N.
Security Council adapting to 21st Century -
These will provide real-world examples of -
Essential organizations - Well-intended but
outdated frameworks - Struggling to adapt to a
great deal of change - Will show stumbling
blocks to watch out for - Examples of how
flexibility may be legislated
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Conclusions Steps for the SRR - Proposed
topics for discussion - Identify a mechanism
for claims - Based on terrestrial mining
experience - Establishing a threshold of
difficulty / intent of use - Identify candidate
models for a governing authority - Perhaps a
group accountable to and directed by resource
businesses
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Conclusions Steps for the SRR - Consider
different means of interpreting CHM - Produce a
mechanism which benefits humanity - Not
just focused on resource ownership - Identify
mechanisms for adaptable regulation - Follow
changes in the world today - Identify stumbling
blocks and role models