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Robin Murray Methods And Tools July 2009


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Robin Murray Methods And Tools July 2009

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