The need for a different state of mind
By Michael Smith (Veshengro)
A succession of global economic crises, provoked by a dysfunctional financial sector, national, as well as regional, co-dependencies of debt and currencies fluctuations, have demonstrated that we cannot count on the invisible hand to steer markets. They no longer behave as they should. A call for a new form of capitalism replacing the neo-classic approach has highlighted alternatives such as conscious capitalism.
The underlying question is one of trust. We don’t trust the systems we have built, we know that we cannot create what is best for the world within the existing structures, and we are afraid of stepping outside of the existing boundaries of what is known and established. We don’t trust in our own ability to create.
Futurist and systemic thinkers have demonstrated to what degree we are unable to develop solutions while at the same time recognizing all unintended consequences of such solutions.
While it is questionable if the current financial system was created without an understanding of the extent of its implications, it is safe to assume that in an increasingly complex world, we will be less and less able to foresee the consequences of the actions we will take. We have entered into a mode of experimentation, yet we have not admitted this and continue pretending what we do is responsible action.
What we need is to assume a different state of mind. The French expression “état d’esprit” reflects this better, a state of Spirit rather than a state of (mental) mind. A state in which we are connected with the world, where we are in resonance with the world, so that we can create from within that source of unlimited potential, what is right for the large good. Everything we were taught and told has resulted in a fundamental disconnection from this Source, resulting in a situation where we – the most evolved race on the planet – feel like victims caught in overwhelmingly powerful and complex system within which we at best survive. It is us who have created these systems and it is us who will need to adapt or replace these systems to create something that is adequate for all living members of our planet. There are some major obstacles on this path, power, survival instincts and fear not the least of them, yet unless we – as a human race – overcome these, we will continue co-creating a world that serves only a very small minority, while destroying our habitat and creating suffering for a large majority of our fellow global citizens.
Conscious capitalism is one of many expression of such an elevated state of Spirit. It redefines the role of business beyond serving solely the shareholders as defined in the agency theory and Friedman’s claim that “the business of business is business”. It expands business’ role to serve society and the planet by embracing a more holistic and balanced responsibility towards all stakeholders. Supporting this claim, some demand that organizations become “a human community of belonging”.
We must, especially, get away from the boom and bust cycle of capitalism and come to a constant economy. One that has jobs enough and where products are – once again – made to last.
The fact is that the constant economy, more than likely, will have more jobs available than our current model, especially with everything being, early 21st century, Made in China, rather than in England, the USA, or elsewhere “at home.”
Repairability of products will also bring back the service industry of menders of whatever product, from proper shoe and boot mending (something which is getting rare in the UK), to repairing everything else.
As I have already outlines in my previous article on the need for a new economy (here) the systems that we have know in the recent times, and the major one still in existence, the market capitalism one and the state capitalism one, the latter which was also referred to as the socialist model but which was nothing of the kind, both systems have failed us. We need a new system or a very old one with new methods.
The financial sector too must be reigned in and overhauled and brought back to its senses in the way that banks were, once upon a time.
In the 19th century a bank could not – and that was legally governed – lend more than around 75% of its deposit base and mutual societies and -bank were governed different still. None could ever overextend itself and thus, in those days, primarily, our money and everything was secure, in a way.
That is not to say that there were not rogues among the bankers that did break the rules but, per se, the rule was that you could only lend a percentage of the money that you had in your vaults. And this money was REAL money and not something that just existed on paper in the form of IOUs. Time we returned to that kind of economy and financial sector and, in fact, it is well time.
Time for a new beginning by going back to the old, the very old...
© 2011
