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Robin Murray Methods And Tools July 2009
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Robin Murray Methods And Tools July 2009

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  • Better learning across boundaries – e.g. bolsa familial or grameen bank (something we support via SIX)… or more targeted networks like SHAK
  • Transcript

    • 1. The Social Economy and the Crisis
      Robin Murray, Julie Caulier-Grice & Geoff Mulgan
      Lisbon 15th July 2009
    • 2. From the micro economics of social venturing
      To the macro economics of social innovation and the global economic crisis
    • 3. 5 propositions
      Proposition 1
      The present crisis is about a long wave transition from the 20th century paradigm of mass production, to what? to the 21st century paradigm of the distributed digital economy?
    • 4. TURNINGPOINT
      Bubble
      Golden Age
      1793–97
      GreatBritish leap
      Canal mania
      1848–50
      Railway mania
      The Victorian Boom
      London funded global marketinfrastructure build-up(Argentina, Australia, USA)
      Belle Époque (Europe)
      “Progressive Era” (USA)
      1890–95
      The roaring twenties
      Europe1929–33
      USA1929–43
      Post-warGolden age
      Telecom mania, Internet emerging marketsand NASDAQ
      Sustainable global knowledge-society ”golden age”?
      2000/7–?
      The historical record: bubble prosperities, recessions & golden ages
      DEPLOYMENT PERIOD
      INSTALLATION PERIOD
      1771Britain
      1829Britain
      1875 Britain / USAGermany
      1908 USA
      1971 USA
      Each Golden Age has been facilitatedby enabling regulation and policies for shaping and widening markets
    • 5. MATURITY
      SYNERGY
      FinancialBubble
      Market saturation and social unrest
      Technologicalexplosion
      Golden Age
      FRENZY
      TURNING POINT
      IRRUPTION
      Crash
      Institutionalrecomposition
      The sequence of propagation has four phases and a break
      20 – 30 years
      20 – 30 years
      INSTALLATION PERIOD
      DEPLOYMENT PERIOD
      Degree of diffusion of the technological revolution
      Time
      big-bang
      Nextbig-bang
    • 6. Proposition 2
      Strong social and technological tides which provide the basis for the expansion of the social economy
    • 7. i) Intractable Problems. Widespread recognition that the big issues not solvable with business as usual.
    • 8. But the social economy is particularly well suited to tackle these issues and is the source of many innovations in these areas.
    • 9. ii) Insistent voices, active lives.
      The rise of expressive culture - the post modern citizen actively searching for identity, meaning and self improvement , individually and collectively through social movements
    • 10.
    • 11. iii) Digital economy reconfiguring production around the user. The Lego principle. Households become designers, processors and assemblers. The house becomes an office/recording studio/learning lab/doctors’ surgery/power station. Rise of distributed systems and the support economy
    • 12.
    • 13. Platforms – from the linear to the multi-nodal
    • 14.
    • 15. Proposition 3
      Social economy can become an innovative driver of economic transformation in the deployment period – social Schumpeter
      Can do so only if conditions transformed in each part of the social economy and their inter-relations
    • 16. The social economy
    • 17. State. Innovation episodic and centralised. Requires transformation of public finance and systems of accountability related to it
      Grant economy. Seed bed of innovation but fragile economically
      Market 55,000 social enterprises in UK. Requires new mediating institutions
      Households: conditions for participation
    • 18. Proposition 4
      Crisis in macro economic policy. Battle against recessions being fought with weapons of the last war.
      4 differentiated counter-cyclical policies required that focus on investment and creating conditions of next wave
    • 19. A) short and medium term investments that can be rapidly introduced
    • 20. B) Factor Four innovations for services faced by cuts (e.g. Elderpower in Maine)
      C) Innovative use of resources freed up by the market – people/land/buildings/ideas + encouraging initiatives insulated from the market (exchange systems/local food/volunteering)
      D) Regulatory changes creating conditions for SI
    • 21. Proposition 5
      The coming years are a critical moment of danger and possibility.
      Danger from crisis (debt overhangs and credit shortage/unemployment/cuts to grant programmes & social services
      Possibilities: 1930s, Argentina, favellas
    • 22. Conclusion
      Just as 1930s crisis generated alternatives based on mass production model (Soviet, social democracy, fascism) so current crisis suggests alternatives based on distributed digital economy
    • 23. References:
      Eric Beinhocker, The Origin of Wealth, Random House, 2007
      Bill Ivey, Arts Inc, University of California Press, 2008
      Francois Jegou and Ezio Manzini, Collaborative Services: social innovation and design for sustainability, Poli Design 2008
      Jim Maxmin and Soshana Zuboff, The Support Economy
      Carlota Perez, Technological Revolutions and Financial Capital, Edward Elgar 2002
      Walter Stahel, The Performance Economy, Palgrave 2006
      Robin Murray
      robinmurray(AT)blueyonder.co.uk
      Julie Caulier-Grice
      julie.caulier-grice(AT)youngfoundation.org
      Geoff Mulgan
      geoff.mulgan(AT)youngfoundation.org

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