We are amidst trepidatious times with the cataclysmic signals that are pointing to a prolonged recession coupled with inflationary and deflationary divergence and the imminent national sovereign debt crisis. The US interest servicing ratio exceeds that of the department of defence’s budget and money printing only exacerbates the problem that fractional banking presents in my view! This will enable the end to end application of the concurrent innovation paradigm which is downloadable at the end of this article!
In an effort to counter these forces that are detractors in the progression of gross domestic product and other leading an/or lagging indicators a new economic tool is required, one that specifically as I asserted in this article – of which I share a snippets below:
Calls for a greater emphasis on not only fiscal policy but microeconomic and structural reform to ignite the levers of innovation and inter-sectoral collaboration between all entities in the economy. Structural policies that support innovation frameworks, expansionary conditions at the firm level, employment opportunities (at a cross border and global level) as well as vested interest in amplifying a dynamic business sector is paramount to boosting productivity and driving the right environmental conditions for prosperity. Instead of engaging in trade wars with nations; nurture capabilities and cross pollinate business models. Instead of creating red tape, enable co-creation and serendipity and trust based framework (all the big fours, consulting firms, technology incubators, innovation bodies and consumer sovereignty groups will agree that this will collectively drive choice, diversity and competition). Find and nurture market creating opportunities to a) offer product and services that was previously unaffordable or otherwise unattainable b) leveraging business models and value chains that focus on collective profitability and growth c) generate for and by local markets to drive global outlooks d) generate local jobs to fuel economies (and facilitate the mobilisation of labour between countries) and ultimate scale up the nations collective abilities to drive breakthrough growth! These are the real tools of the networked economy in this day and age!
Mohit (Max) Bhanabhai appreciative insights in ‘Yearning for more economic policy innovation for monetary policy is a blunt tool in the past and one has to focus on the future by falling forward always’
What will this new tool look like? In simple terms, it is about creating a collaboration environment where all stakeholders on any given stakeholder plane can come together to firstly appreicate the input that every individual has in any given system (participation) – refer to the graphic below for a conceptual model.
Secondly, they need to embrace an ‘open-mindset’, one that traverses the mystery of the middle problem that I articulate in brief in the second graphic below:
Whilst this will be no easy task, it needs to exist amidst what I call an environment wherein the A team can effectively be the B team and vice versa such. For clarity, I depict a visual below: