What the bleep is new economy ?

amour-et-argent

” L’économie n’est pas capable de saisir la complexité du monde par des modèles”

The economy is not able to grasp the complexity of the world only by models “

Olivier Blanchard

Que le script historique soit la transition par le phoenix- terre brûlée, ou par la métamorphose chenille-papillon, le résultat final sera le même, sauf que le premier exigera plus de temps et plus de sang”

Bertan Gülkok

0. Market-based debt economy

What it is:

A market-based economy is where goods and services are produced without obstruction or interference, and exchanged according to demand and supply between participants (economic agents) by barter or a medium of exchange with a credit or debit value accepted within the network, such as a unit of currency and at some free market or market clearing price. 

The sole intention is the maximisation of shareholders value.

It is boosted by creation of debt by the banking system.

We are now going to cruise through several new and different ways to create value and economical exchange. This document is a working document written by Bertan Gülkok, a 14 years old intern of UHDR UniverseCity. Thanks for your contributions and links (please post as comments) !

1. Circular economy

What it is:

The circular economy is a generic term for an industrial economy that is, by design or intention, restorative and in which materials flows are of two types, biological nutrients, designed to re-enter the biosphere safely, and technical nutrients, which are designed to circulate at high quality without entering the biosphere.

Where it started:

Historically, recycling was often part of the habits, but industrial revolution came by and institutionalized dumping waste.

Why it is new:

It is reconditioning waste, instead of disposal

Where it adds value:

Earth balance sheet

Which problems it can solve:

  • lower the amount of waste,

  • lower expences for treatment and disposal,

  • lack of resources.

Examples:

2. Knowledge economy

What it is:

The knowledge economy is the use of knowledge technologies (such as knowledge engineering and knowledge management) to produce economic benefits as well as job creation.

Where it started:

The phrase was popularized by Peter Drucker as the title of Chapter 12 in his book “The Age of Discontinuity, And, with a footnote in the text, Drucker attributes the phrase to economist Fritz Machlup and its origins to the idea of “scientific management” developed by Frederick Winslow Taylor. It was accelerated in the ninetees, after the rize of services, in the hope this would be the basics of future growth.

Why it is new:

Instead of concentrating on material issues and machinery, it’s the use and co-op of different knowledge to service the business innovation and sustainability. In this case, the machinery and value is the human brain.

Connecting people and workplaces via social connection (web etc…)

Where it ads value:

Improving communication, processes, and knowledge balance sheets.

Which problems it can solve:

  • activating the hidden knowledge of the companies teams

  • trouble shooting and creativity for innovation

  • business model- and service innovation

Examples:

  • Google, Yahoo, IBM

  • Wikipedia

  • Mindvalley.com

3. Social entrepreneurship – social economy (économie sociale et solidaire – ESS)

What it is:

Social economy refers to a third sector in economies between the private sector (business) and the public sector (government). It includes organizations such as cooperativesnonprofit organizations, and charities.

The social economy spans economic activity in the community, voluntary and social enterprise sectors. The economic activity, like any other economic sector, includes: employment, financial transactions, the occupation of property, pensions, trading, etc.

The social economy usually develops because of a need to find new and innovative solutions to issues (whether they are socially, economically or environmentally based) and to satisfy the needs of members and users which have been ignored or inadequately fulfilled by the private or public sectors.

By using solutions to achieve not-for-profit aims, it is generally believed that the social economy has a distinct and valuable role to play in helping create a strong, sustainable, prosperous, and inclusive society.

Successful social economy organisations can play an important role in helping deliver many key governmental policy objectives by:

  • helping to drive up productivity and competitiveness;
  • contributing to socially inclusive wealth creation;
  • enabling individuals and communities to work towards regenerating their local neighbourhoods;
  • showing new ways to deliver public services; and
  • helping to develop an inclusive society and active citizenship.

Defining the limits of the social economy sector is made especially difficult by the ‘moving sands’ of the political and economic context. Consequently, at any particular point in time organisations may be ‘partly in, partly out’ or moving within the various sub-sectors of the social economy.

There is no single right or wrong definition of the social economy. Many commentators and reports have consciously avoided trying to introduce a tight definition for fear of causing more problems than they solve.

Social entrepreneurship is the process of pursuing innovative solutions to social problems. More specifically, social entrepreneurs adopt a mission to create and sustain social value. They relentlessly pursue opportunities to serve this mission, while continuously adapting and learning. Social entrepreneurs act boldly, not constrained by resources currently in hand. They hold themselves accountable for achieving the social mission and use resources wisely. They draw upon the best thinking in both the business and nonprofit worlds and operate in all kinds of organizations: large and small; new and old; religious and secular; nonprofit, for-profit, and hybrid.

Where it started:

Actually, has always existed, for example in Bali it is part of society.

Why it is new:

Before, companies had the sole reason of being to enrich the shareholder – it had no social role to play.

Where it ads value:

its breaks the capitalistic law of fighting for the money, it then is a big workshop where everybody can make money by their values.

Which problems it can solve:

Breaks the negative aspects of capitalism. Everybody has the choice of contributing to common good.

Examples:

  • Essilor

  • Trividend

  • GAP

  • Grameen Bank

4. Informal complementary economy and local barter

What it is:

Complementary economies are systems where exchange of goods and services take place, outside official circuits.

  • With complementary currencies : the products and servces are paid for with mutual or local currencies. Most of the time they are « soft currencies », and are tolerated by the government for their social added value. But there are « hard » complementary currencies, integrated in the accounting system, like C3 or WIR in Switzerland.
  • Black market : illegal trading, or outside balance sheets and accounting
  • Volunteer work : people working for the common good wiothout waiting any payments ; it’s a gift economy.
  • Barter : is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is distinguishable from gift economies in that the reciprocal exchange is immediate and not delayed in time. It is usually bilateral, but may be multilateral (i.e., mediated through barter organizations) and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, such as when the currency may be either unstable (e.g., hyperinflation or deflationary spiral) or simply unavailable for conducting commerce.

Where it started:

Between tribes, in original primitive populations

Why it is new: money is getting out of the exchange. It “bugs” the system based on currencies and interest.

Where it ads value:

It boosts exchanges through differentiating of currencies, and activates resources.

The possessing is getting in the background and the economy between people are on the foreground.

Which problems it can solve:

the lack of money and currency to buy products.

Examples:

C3, WIR, LETS, SEL, Bitcoin

5. Gift Economy:

What is it:

A gift economy, gift culture or gift exchange is a mode of exchange where valuables are given without an explicit agreement for immediate or future rewards.

Where it started:

İt always was present but unknown in the modern culture till the 21. Century.

Why it is new:

it’s an open source system from everybody, where everybody can access without paying for anything.

Where it ads value:

human knowledge and help is getting accessible for everybody. Humans can exchange knowledge via web.

Which problems it can solve:

excessive payment for information , which are already available. Help people who are in difficulty, without having them to pay you.

Examples:

Wikipedia, Thepiratebay.org, religion, charity, etc.

7. Performance or Functional Service economy

What it is:

Performance or Functional Service economy replaces the sales of a good into a service or integrated solution answering the same features, or more, whilst using less resources and energy, creating positive social and environmental externalities. Under some conditions, it is an exchange modality which allows a better integration of sustainable development to the economy.

Where it started:

Why it is new: payment by ideas and reforms.

Where it ads value:

Earth balance sheet thanks to much more sustainable and efficient products

Which problems it can solve:

people who are not able to do physical work, can occur to the economy.

Examples:

  • Safechem of Dow Chemicals

  • Agro-ecological service of Koppert

  • Crf. resources of Ellen Mc Arthur Foundation

8. Sustainable Development or Green Economy

What it is:

Sustainable development refers to a mode of human development in which resource use aims to meet human needs while ensuring the sustainability of natural systems and the environment, so that these needs can be met not only in the present, but also for generations to come.

Why it is new:

develops human without destroying its structure.

Where it started:

1970 in the agriculture business. The term ‘sustainable development’ was used by the Brundtland Commission, which coined what has become the most often-quoted definition of sustainable development: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Where it ads value:

human development jumps in the foreground (investment into human without destroying nature)

Which problems it can solve:

Examples:

9. Blue Economy

What it is: 

potential benefits in connecting and combining seemingly disparate environmental problems with open-source scientific solutions based upon physical processes common in the natural world, to create solutions that are both environmentally beneficial and which have financial and wider social benefits.

Where it started:

www.zeri.org founded by Gunther Pauli

Why it is new:

Where it ads value:

Which problems it can solve:

The book suggests that we can alter the way in which we run our industrial processes and tackle resultant environmental problems, refocusing from the use of rare and high-energy cost resources to instead seek solutions based upon simpler and cleaner technologies. The book aims to inspire entrepreneurs to adopt its insights, by demonstrating ways in which this can create economic benefits via job creation, reduced energy use, and more revenue streams from each step of the process, at the same time benefiting the communities involved.

Examples:

http://zeri.org/ZERI/The_Blue_Economy.html

10. Sharing Economy, collaborative economy, collaborative consumtion or coöperation capitalism, peer economy

What it is:

The sharing economy (aka the share economy, the shared economy, the mesh or the collaborative economy) refers to economic and social systems that enable shared access to goods, services, data and talent. These systems take a variety of forms but all leverage information technology to empower individuals, corporations,non-profits and government with information that enables distribution, sharing and reuse of excess capacity in goods and services.A common premise is that when information about goods is shared, the value of those goods increases, for the business, for individuals, and for the community.

Le capitalisme de coopération est encore un concept en construction. Il est, d’une part, celui qui rompt avec le système hiérarchique «top-down» et qui redonne aux salariés de tous les niveaux une latitude (une obligation?) d’être participant et inventif pour améliorer son propre travail. Plutôt que d’obéir à des ordres, de remplir une tâche, le salarié coopératif voit s’ouvrir sa liberté de manœuvre. Sa motivation s’élargit, comme la mise en commun des idées.

Le deuxième volet du capitalisme coopératif est lié à l’économie d’Internet et à son extension toujours plus grande. Le principe est celui du logiciel libre ou du Wiki: la mise en commun des informations pour que se construisent sur cette base le plus d’«applications» possibles. Plus on est de fous, plus on rit, voilà le truc des réseaux sociaux. La mise en commun donne libre court à l’échange et à l’invention de services nouveaux qui se greffent sur les anciens. Le tout grossit, attire de plus en plus d’utilisateurs, etc.

Where it started:

mid 2000’s in the social tech economy.

Why it is new:

money is not a big role, talents and goods are the new money.

Where it ads value:

in human capability

Which problems it can solve: lack of cash money

Examples:

  • Crowdfunding

  • Co-working

  • Carsharing

  • AirBNB

  • Fon

  • LendingClub

  • LiquidSpace

  • Lyft

  • Djengo or RelayRides

  • TaskRabbit

  • Yerdle

11. Swarm Economy

What it is:

From one employment per person to some five to ten ongoing projects per person. More than “working extra” or “having two jobs”, it is a definite end to the industrial economy. The end of fixed workplaces. People will work wherever they want, typically from cafés or other semisocial places. “Going to work” will not exist as a concept, with the exception of some service person-to-person jobs.

The end of fixed worktimes. People will not just work wherever, but also whenever they want – or however it fits together with the overall project team. Timezones will make sure that there will be no nine-to-five regime as people cooperate between Europe, North and South America, China, India, Australia, and so on, all at the same time. It means a massivedecentralization of the decisions taken to support the economy.

Where it started:

In a blogpost of Rick Falkvinge, on 1/9/2013.

Why it is new:

The notion of having several jobs is not new, but the notion of running several projects in parallel, some for fun, some for money, some for both, is quite new.

Where it ads value:

More fun in our lives, more money, more talent development, more teamspirit, more innovation, more personal entrepreneurship.

Which problems it can solve:

Scarcity of finances and personal revenue, specific problems and challenges can be dealt with in a decentralized way.

Examples:

12. Asset-based Economy

What it is:

Asset-based economy refers to a post-industrial macroeconomic state of capitalism in which growth is based largely on appreciation of equity assets, typically financial instrumentssuch as stocks, as well as real estate.

Where it started:

The term has been applied, often in a deragoratory sense, to the economic conditions in the United States in the 2000s, during the recovery from the bursting of the dot-com bubble.

Why it is new: speculating the growth of real estate and stocks without Manufacturing

Where it ads value: real estate and stocks

Which problems it can solve: short term need of cash

Examples:

– Real estate investment and leverage

13. Transition Economy

What it is:

A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a free market.Transition economies undergo economic liberalization, where market forces set prices rather than a central planning organization. In addition to this trade barriers are removed, there is a push to privatize state-owned businesses and resources, and a financial sector is created to facilitate macroeconomic stabilization and the movement of private capital.

Where it started:  

The process has been applied in China, the former Soviet Union and Communist bloc countries of Europe, and many third world countries and detailed work has been undertaken on its economic and social effects.

Why it is new: it s the change between to economic models.

Where it ads value: The transition process is usually characterized by the changing and creating of institutions, particularly private enterprises; changes in the role of the state, thereby, the creation of fundamentally different governmental institutions and the promotion of private-owned enterprises, markets and independent financial institutions

Which problems it can solve: it the solution for broken or corrupt states who are in the rebuilding phase.

Examples:

  • Fall of the iron curtain and catch up of East Germany
  • Transition Towns

14. Long Tail Economy

What it is:

The term long tail has gained popularity in recent times as describing the retailing strategy of selling a large number of unique items with relatively small quantities sold of each – usually in addition to selling fewer popular items in large quantities

Where it started:

between 2006 and 2008 in the tech and car business

Why it is new:

Where it ads value:

The distribution and inventory costs of businesses successfully applying this strategy allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The total sales of this large number of “non-hit items” is called “the long tail”.

Which problems it can solve:

Examples:

  • Amazon

  • e-commerce

15. Co-operation Economy

What it is:

Co-operative economics is a field of economics, socialist economics, co-operative studies, and political economy, which is concerned with co-operatives

Where it started:

in international politics where left winged society decided that the world is a global co operative.

Why it is new: capitalism with the only intention of creating shareholders value leaves place to project-based and team-based entrepreneurship.

Where it ads value: human co working and social connectivity

Which problems it can solve: lack of something in some buisness

Examples:

  • Coöperative banks

  • Coöperative agriculture

  • Management buy-outs

16. Agorism, Counter-Economics, Economic secession

What it is:

A libertarian social philosophy that advocates the goal of the bringing about of a society in which all relations between people are voluntary exchanges by means of counter-economics, thus engaging in a manner with aspects of peaceful revolution.

The Counter-Economy is the sum of all non-aggressive Human Action which is forbidden by the State. Counter-economics is the study of the Counter-Economy and its practices. The Counter-Economy includes the free market, the Black Market, the “underground economy,” all acts of civil and social disobedience, all acts of forbidden association (sexual, racial, cross-religious), and anything else the State, at any place or time, chooses to prohibit, control, regulate, tax, or tariff. The Counter-Economy excludes all State-approved action (the “White Market”) and the Red Market (violence and theft not approved by the State).

Economic secession has been variously defined by sources. In its narrowest sense, it is abstention from the state’s economic system – for instance by replacing the use of government money with barterLocal Exchange Trading Systems, or commodity money (such as gold).

Where it started:

It was first proposed by libertarian philosopher Samuel Edward Konkin III in 1975, with contributions partly by J. Neil Schulman.

Why it is new:

Agorists consider themselves market anarchists, while many characterize it as a form of left-libertarianism.Agorists generally oppose voting for political candidates and political reform. Instead, agorists stress the importance of alternative strategies rather than politics to achieve a free society. Agorists claim that we can achieve a free society more easily and sooner by employing such alternative methods as educationdirect actionalternative currencies,entrepreneurshipself sufficiency, and most importantly “counter-economics“. Agorists consider their message to be scientific because science is an appeal to reason, which they believe is only possible in the Agora or free market. Agorists believe that State backed, regulated and funded science is illegitimate.

Where it ads value:

Which problems it can solve:

17. Ethical Economy

What it is:

http://www.digicult.it/digimag/issue-066/ethical-economy-the-new-redistribution-of-value/

Ethical Economy introduces to ethical economics and interprets the begin of a new, radically different economic system in which production is mainly collaborative and social, and in which the value is based on the quality of social interactions and relationships rather than on the quantity of productive time.

Where it started:

(Columbia University Press), written by Adam Arvidsson in collaboration with Nicolai Peitersen

Why it is new:

Where it ads value:

Which problems it can solve:

Examples:

18. Quantum economics

What it is:

Bank money is indisputably the starting point of Bernard Schmitt’s analysis. Referring to double-entry bookkeeping, he shows that the emission of money is an instantaneous event taking place every time a payment is carried out by banks. Since no positive asset can be created out of nothing, quantum economists maintain that, far from being a net asset, money is a purely numerical vehicle issued by banks in a circular flow defining its instantaneous creation and destruction. Money is therefore nothing more than a means of payment, a numerical vehicle through which payments are conveyed from purchaser to seller and whose existence in chronological time coincides with that of the payment it conveys: a mere instant.

Why it is new:

Where it started:

A school of monetary economic analysis developed by French economist Bernard Schmitt (* 1929 in Colmar, France), beginning in the 1950s in Dijon (France) and Fribourg (Switzerland).The origins of quantum economics can be traced back to the works of prominent economists of the past. Quantum economists refer to Adam Smiths distinction between money and money’s worth promoted in his Wealth of Nations and later taken up by David Ricardo and Karl Marx.

Where it ads value:

It could actually, if crossed with the “systemic economy”, be copy-pasted on the other value levels (knowledge, processes, emotional balance sheets). Whenever a question is posed, new solutions emerge, as with money creation. The best space to do so is collective intelligence workshops.

Which problems it can solve:

Examples:

  • Money creation by banks

19. Purple Economy

What it is:

Adapting the internal diversity of employees, and to the diversity and specificity of the external environment.

Where it started:

In 2012 a work piloted by Diversum, with Unesco, Medef, OCDE, in Paris

Why it is new:

It concentrates on cultural value and diversity.

Where it ads value:

To common good,  knowledge, processes- and emotional balance sheets

Which problems it can solve:

– General problem-solving

– Adapting to local markets

– Access to hard & soft skills

Examples:

– Carrefour including local suppliers in their offer

– Essilor Internationbal diversifying their R&D over several countries for a better connexion with local markets

– Universal Music Group – Vivendi, with 60% of their sales by local artists

– Lafarge adapting their offer to local indian market

20. Systemic Economy

What it is:

An economical paradigm where 2 aspects are crossed: the notion of ecosystem of stakeholders (instead of linear models), and the notion of value balance sheets on 7 levels (instead of only one value measuring balance sheet: 7D-Value algorythm).

The projects, companies or ventures are all based on contributing to “common good” (instead of only to shareholders value).

Why it is new:

It allows mapping and activating of (underused) resources within the ecosystem to contribute to the projects. We can do more with more, and cut the “austerity” and scarcity vicious circles.

Where it started:

Invented in Belgium by UHDR UniverseCity following research and experimentation, and publications by Michel de Kemmeter

Where it ads value:

On 7 levels: earth balance sheet, material and financial, processes, emotional value, communication, knowledge, common good.

If every person and /or company would care 10% more about common good, the results will be exponentially higher up to a multiple (2x or more progress). It’s thanks to the dynamics of systems.

Which problems it can solve:

Systemic problems can now be solved with systemic thinking and working. Offering linear solutions to systemic problems most of the time will worsen the situation (cfr austerity measures in western world). With this 3D-thinking, we now have the means to understand how things are connected to each other and how the value flows in the systems.

Examples:

  • The Danone-Grameen ventures

  • Djengo

  • Sharebox

  • Google

  • Wikipedia

  • and actually most of the new emerging economical solutions and business models

Further tendancies to look into:

•   Activist shareholders demanding tangible evidence of ‘shared value’

•   Agile competitors creating new business models to capitalize on a growing desire among consumers for collaborative consumption rather than outright ownership

•   Development of a number of growth-metric alternatives – the Happy Planet Index, Bhutan’s Happiness Index, the Ethical Markets Quality-of-Life Index – that better acknowledge and reflect levels of community and environmental wellbeing

•   The emergence of technologies and platforms that enable rapid crowd-based fundraising, micro-loans and community-based currencies that bypass banks altogether

•   Growing broad-based support for investments that produce social and environmental benefits as well as financial returns, necessitating a rethink of how we define ‘value’

•   The explosion of MOOCs (massive open online courses) via Khan University, Udemy and strategic alliances that threaten the revenue streams of traditional universities

•   Increasing pressure on insurers – and their clients – and risk as significant weather events wreak havoc on communities and cost shareholders dearly (the World Bank released a report late last year warning of ‘a cascade of cataclysmic changes’ if the global community fails to act on climate change.

Together such activities reflect two things: a refusal to accept the status quo, and a desire for a more human-centred, sustainable economic system.

– Breakthrough Capitalism

– Prosperous Communities

– Impact Investing

– Collaborative Consumption

– Hyperconnectivity

– Alternative measures of success

– Alternative financing

– Conscious Capitalism

– B-Corporations & B-Business

– Attention Economy

– Economie citoyenne

– Economie Humaniste

– Flow Economy

 

Bertan Gülkok

Michel de Kemmeter

UHDR UniverseCity

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3 thoughts on “What the bleep is new economy ?

  1. This is my page about a new theory macroeconomic conception monetary system ,and any contribute are well accepted :(exposed in the note, i wrote about this on “riodialogues”:I suppose a new rule for Central Bank: when one of the central bank have a new emission of money whith each rate the same bank print corrispective quantity of money of the rate ,out of budget,and give this quantity to compense the monetary mass at a pubblic commission that use for pubblic necessity etc etc…we resolve three problem :pubblic necessity,pubblic budget,and market crisis,;for example : the C. B. have a emission of hundred billion unit and fix a rate of 3% and give this money to commercial bank,at the same moment print 3 billion and give these to pubblic commission that spend for pubblic problem……at the end the commercial bank retourns 103 millions and the C.B .budget is ok ..whithout problem of failure of monetary mass….) http://www.facebook.com/pages/Teoria-della-compensazione-della-massa-monetaria/137335536277534 more in “Bozza espositiva” in the note of the page.

  2. It is really a nice and helpful piece of
    info. I’m satisfied that you shared this helpful info with us. Please stay us up to date like this. Thanks for sharing.

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