Towards a New Economic Paradigm
We want those who balance profits with societal good and those who enable a new system to act in ways that lead to the best social and economic outcomes for everyone. In our theory of change,
we call this goal the Impact Economy
Three strategies to transition into an impact economy:
systemic change –
transfer of resources from old institutions to new
making capital good
Each of these activities will require a set of enablers- Social Entrepreneurs, Institutions and Businesses.
Social Entrepreneurs .
How do we unravel the New Economic Paradigm
Reverse Engineering the New Economic System
Several features of the economy must be considered. Three of them are:
The financial system
What will be the architecture of a new financial system to play a better role to serve the needs of society?
Forms of enterprises
What should be the form of business enterprises for wealth to be generated and aggregated at the bottom, in the hands of workers and customers?
Can they be ‘for profit’ and yet maintain their over-riding commitment to their social purpose?
Changing the paradigm
Even if we want a ‘new economy’, with new forms of institutions, the process of making the transition from what we have to what we want will not be easy. Existing institutions have the resources, which they were able to accumulate in the old economy. Their resources will be required now to build the new economy.
What should be the process of creating a new economy in which the ‘old’ and the ‘new’ work together?
How can we ensure that we do not waste the crisis of the pandemic to merely recover the institutions of the old economy rather than creating new forms of institutions?