The New Economy
by Roger Martin | 10:26 AM February 27, 2012 In order to tackle its competitiveness challenges, America needs to harness the inherent creativity of its workforce. It is making progress in the right direction but needs to push the pace. Michael Porter has done us all a service in identifying that the wealth of modern economies comes from the productivity, innovation and high wages found in their clustered industries — those industries that are found only in certain geographic areas and trade most of their output outside their home areas, both nationally and internationally. Wages in these clustered industries (like pharmaceuticals or business services) are dramatically higher than in dispersed industries (like primary medical care or consumer services).
Fiverr.com co-founder Micha Kaufman The website Fiverr poses two immediate questions for its community of users: What would you do for $5 and what would you pay someone else to do for $5? And with a rapidly growing base of 600,000 service gigs, the answers to both appear nearly limitless. "When we looked at what was out there, we realized that there were options for people that were willing to work for as little as one cent," Fiverr co-founder Micha Kaufman told Yahoo News in a phone interview from Israel.
From Globalization to Glocalization
Alternative Exchange Systems
The elements of new economics? From the author of the Resilience Imperative January 23rd, 2013 An interview with Pat Conaty (main pic), one of the authors of the Resilience Imperative, by Naresh Giangrande of the Transition Network. This book examines the many elements from which resilient local economies can be built.
by Gar Alperovitz The very first book I wrote—my Ph.D. thesis, basically—was on the bombing of Hiroshima. An odd place to start. The puzzlement for me was why this country and its leaders, knowing there were alternatives—which is now established as fact—nevertheless went ahead with those bombings.
As the current state of financial system matures and reaches the development plateau, new forms of finance powered by technological changes and higher social and environmental awareness slowly begin to arise and set up the basis of a very different financial system. The map depicts the fundamental reconfiguration of the existing financial system which is moving away from the current model of vertically-integrated monoliths towards a financial ecosystem of firms that compete along different banking function, recreating a more distributed value chain of the industry. This alternative finance system was designed with the purpose to engage a debate and give a head start in mapping the new financial system that is currently emerging. <p style="text-align:right;color:#A8A8A8"></p>
The idea that we need a “new economy”—that the entire economic system must be radically restructured if critical social and environmental goals are to be met—runs directly counter to the American creed that capitalism as we know it is the best, and only possible, option. Over the past few decades, however, a deepening sense of the profound ecological challenges facing the planet and growing despair at the inability of traditional politics to address economic failings have fueled an extraordinary amount of experimentation by activists, economists and socially minded business leaders. Most of the projects, ideas and research efforts have gained traction slowly and with little notice. But in the wake of the financial crisis, they have proliferated and earned a surprising amount of support—and not only among the usual suspects on the left.
Copyright © 2003 by Arthur Warmoth & Skaggs Island Foundation [ Return to Sustainable Community Economics Home Page ] Complementary Economics and Sustainable Economies Arthur Warmoth, Ph.D. Sonoma State University Skaggs Island Foundation
There are periods of creative destruction when an old, dying order comes apart at the seams, opening up the space for a new order currently struggling to be born. That’s what the Austrian economist Joseph Schumpeter told us, mapping the cycles. And now here we go again. A decade or two from now, the "long year" straddling 2011 and 2012 will likely be seen as one of those pivotal transitions, like when the development of "breakthrough" steam engines fueled the Industrial Revolution.
Today, even as the incumbent patterns are fading, a new world is taking shape. It's a world that will flourish by the end of the century. But the transition from old to new will bring turbulence.