have tried to assemble a contribution from father below. He's very happy if people edit out anything that doesn't
fit. Whatever makes for a booklet that feels OK to Dr Yunus.
Is someone like Khalid
Shams there to help you finally put the conributions together? The Great Advocacy is a lovely type of book.
I am still wondering about title such as
Innovating Collaboration - 2009 Year of Yes We Can
-A Future Capitalism Fieldbook with Muhammad Yunus, End Poverty Networkers and Friends of Microcredit
Three entries from Journal of Norman Macrae: Diary of a Microeconomist 1943-2009
Entry 1 - After Royal Automobile Club lunch on Future Capitalism
with Dr Yunus
James’ London 2008, Feb15)
Importance of Muhammad Yunus
The Nobel Peace Prize for 2006 was controversially awarded in Oslo to
a "banker for the poor" in once basket case Bangladesh. Since the microcredit system pioneered by this Doctor Muhammad
Yunus really has raised record millions of Bangladeshi women from the world’s direst poverty, Yunus was greeted on his
recent visit to London largely by the misunderstanding Left. But as an octogenarian economist, I also
had lunch with him and thrill fully to his stated aim to "harness the powers of the free market to solve the problems
of poverty", and his brave belief that he can "do exactly that". This apparent appearance of a viable system
of banking for the poor has important implications. We had better start by examining how microcredit almost accidentally came
START IN A STARVING VILLAGE
terrible famine year of 1974, Dr Yunus (who had attained his doctorate in economics in a fairly free market American university)
was back at his 1940 birthplace of Chittagong, Professor of Economics at the university there. He took a field
party of his students to one of the famine threatened villages. They analysed that all 42 of the village’s small businesses
(tiny farm plots and handcrafts) were poverty-trapped by moneylenders. To be productively free, they needed
to borrow a ridiculously tiny total of $27 on reasonable terms.
First thought was
to give the $27 as charity. But Yunus reflected: a social business dollar that needed to be entrepreneurially paid back from
careful use in an income generating activity can be much more effective than a charity dollar which might be used only once
and frittered away. All of those first 42 loans were fully repaid, and lent back, and after 9 years further experiments Yunus
in 1983 founded his Grameen (which means Village) Bank. Its priority was to make loans that were desperately needed by the
poor instead of the usual banking priority to make loans to the rich who could provide collateral against what they happened
to want to borrow.
In the next 24 years, Grameen provided $6 billion of loans to
poor people with an astonishing 99% repayment rate. In 2007, it had seven million borrowing customers, 97% of them women (who
tend to be the poorer sex in rural Islamic societies) in 73000 villages of Bangladesh. Microcredit banking
networks have now reached 80% of Bangladeshi’s poorest rural families and most of Grameen’s own borrowers have
risen above the absolute poverty line.
When a Grameen Bank manager goes to a
new village, he has entrepreneurially to search for poor but viable borrowers. He earns a star if he achieves 100% repayment
of loans, and another star if he attains achievement of the 16 guarantees that all customers are asked to pledge, ranging
from intensive vegetable growing through attendance of all children at school, to abolition of dowries. A branch with five
stars would often transfer to ownership by the poor women themselves. A branch with no stars would be in danger of closing,
so borrowers tend to rally round with suggestions, such as which unreliable repayers to exclude.
As early as 1996, a breakthrough income generator was the franchise of telephone ladies. They borrowed enough to buy
a cheap mobile phone from a Grameen subsidiary. They would draw fees for phoning to see if more profitable prices for crops
were available in a neighbouring village, and from anybody who wanted to hire the phone to contact the outside world. This
is a job that could only become important in a microcredit setting; the owner of a mobile phone in richer suburbia would not
find many customers to hire her set. The apparently small change of the mobile telephone lady has compounded the most extraordinary
end digital-divides consequence. Today Bangladesh is at the epicentre of mobile partnerships, one of which is cheerfully
known as http://bankabillion.org
Children have always been at the core of Yunus visions of sustainability investment.
So it was fitting that the innovation strategy of Future Capitalism began with a co-brand designed to improve the nutrition
of poor children in the villages of Bangladesh. This social business was formed with the large French food multinational
called Danone. Grameen-Danone test marketed to find what sorts of fortified yogurt Bangladeshi children would like. Although
Danone at first wanted large plants with refrigerated systems, Grameen won the debate to make then small plants who bought
local milk and very cheap local distributors who knew which families had children who might buy the cheap yogurt fresh. Danone
had to agree not to pay any dividend from the sales of the yogurt in Bangladesh so as to keep the price cheap at a few US
cents per cup, but its $1 million investment remains returnable, it has learnt a lot about sales of a new product in poor
countries, and immense goodwill is multiplying round Danone branding as the lead global corporate benchmark of Future Capitalism
Future Capitalism partnering ( http://futurecapitalism.com ) is a leading idea for networked economies whose time has come. Yet my view is that Grameen will soon be seen as central
to an even more critical free market choice : what future of banking will people everywhere want? In this 2008, conventional
bankers to the rich have trotted in panic behind the American giants who grossly mislent on subprime mortgages, and then sold
these loans on in "securitised", and exploding and even "derivitavised" packages to weaker funds and banks
who have frantically tried to disguise from their shareholders and from themselves how unmarketable and worthless some of
these assets are. If all bank statements in early 2008 had been utterly and appallingly honest, runs by depositors out of
them could already have accelerated out of control. Such banking crises are likely to recur before and after next January
when a new American president takes office. Across the Atlantic, Britons should remember that our prime minister in 1929 was
our last previous dire right wing Labour Scot, and that he had to coalesce in 1931 with a Baldwin who was as deaf as today’s
Cameron to why it is better to widen budget deficits in a slump.
A lesson in how to
run village businesses and not to handle bank crises comes also from Japan. When I wrote my first
book on Japan’s economy nearly 50 years ago, Japan had about two dozen lightly
taxed exporting multinationals who bought their components marvelously cheaply. The car factories bought their ball bearings
from tiny village firms, and the banks attached to Toyota etc kept on lending even when some peasant’s first bearings
did not past muster but gradually propelled him to work with or under a brighter neighbouring peasant whose products did.
That seemed inefficient to American experts and in the early 1960’s I had a translated debate on Tokyo television
with an American who said that such slack banking would ruin the country. I rejoiced as Japan then quintupled
its living standards in the next twenty years and its banks became temporarily the most powerful and prosperous in the world.
The crash came when in the late 1980s American business schools convinced Japanese factories that components must be bought
just-in-time. The big banks turned to financing suppliers who could do this (which were not those striving to be cheapest).
Banks lent mainly to new firms who could provide collateral which meant to richer ones. Once they were lending mainly to the
rich they blew up such a bubble that the nearest golf course to Tokyo was said to have a greater land value
than the whole state of California. When this bubble burst, all the banks had bad debts, which the government helped
them to hide so Japanese living standards stop rising fast since circa 1989. This is the threat to the whole rich world today.
Entry 2 - Published in The 2024 Report – a concise Future History,
1984 - by Norman & Chris Macrae
The View from 1984 on whether going global and practicing economics will systemise sustainability networks, or
By 2005, the gap in income and expectations between the
rich and poor nations was recognised to be man's most dangerous problem. Internet linked television channels in sixty-eight
countries invited their viewers to participate in a computerised conference about it, in the form of a series of weekly programmes.
Recommendations tapped in by viewers were tried out on a computer model of the world economy. If recommendations were shown
by the model to be likely to make the world economic situation worse, they were to be discarded. If recommendations were reported
by the model to make the economic situation in poor countries better, they were retained for 'ongoing computer analysis'
in the next programme.
it will then be easy to see this as a forerunner of the TeleComputing (TC) conferences which play so large a part in our lives
today, both as pastime and principal innovative device in business. But the truth of the 2005-2010 breakthrough tends to irk
the highbrow. It succeeded because it was initially amplified by a rather downmarket television reality programme. About 400
million people watched the first programme, and 3 million individuals or groups tapped in suggestions. Around 99 per cent
of these were rejected by the computer as likely to increase the unhappiness of mankind. It became known that the rejects
included suggestions submitted by the World Council of Churches and by many other pressure groups. This still left 31,000
suggestions that were accepted by the computer as worthy of ongoing analysis. As these were honed, and details were added
to the most interesting, an exciting consensus began to emerge. Later programmes were watched by nearly a billion people as
it became recognised that something important was being born.
These audiences were swollen by successful telegimmicks. The presenter of the first part of the
first programme was a roly-poly professor who was that year's Nobel laureate in economics, and who proved a natural television
personality. He explained that economists now agreed that aid programmes could sometimes help poor countries, but sometimes
most definitely made their circumstances worse. When Mexico was inflating at over 80 per cent a year in the early 1980s , the inflow to it
of huge loanable funds made its inflation even faster and its crash more certain. The professor set Mexico's 1979-1981
economy on the model, pumped in the loaned funds and showed how all the indicators ( higher inflation, lower real gross domestic
product and so on) then flashed red, signaling an economy getting worse, rather than green, signaling an economy getting better.
..The professor then put the model back to mirror the contemporary world of 2005, and played into it various nostrums that
had been recommended by politicians of left, right and centre, but mostly left. The dials generally flashed red. Then the
professor provided another set of recommendations, and asked viewers who wished to play to tap in their own guesses on the
consequent movement of key economics variables in the model. Those who got their guesses right to within a set error were
told they had qualified for a second round of a knock-out economic guesstimators' world championship. Knockout competitions
of this sort continued for viewers throughout the series of programmes.
In the second part of that first programme, the presenters dared to introduce two political decisions
into the game. They said that government-to-government aid programmes had been particularly popular among politicians during
the age of over-government, but there was growing agreement that government-to-government aid was the worst method of hand-out.
The excessive role played by governments in poor countries was one of the barriers to their economic advance, and a main destroyer
of their people's freedom. Could anyone have thought it would be wise to give aid to President Mbogo?
In consequence, the most successful economic aid programmes
had been those operated through the International Monetary Fund, which imposed conditions on how borrowing governments should
operate. The professor showed that IMF-monitored operations in most years had brought more green flashes from the model than
red. But this involved IMF officials - often from the rich countries - in telling governments of poor countries what to do;
and one of the objectives of this town meeting of the world was to diminish such embarrassments.
The first questions to be asked in the next few programmes,
said the compilers, were 1) which countries should qualify for aid? ; and having decided that, 2) up to what limits and conditions?
; and 3) through what mechanisms? They promised that later programmes after the first half-dozen would examine how any scheme
could be used to diminish the power of governments and increase the power of free markets and free people.
Entry 3 - View During Congress Trillion
, last quarter 2008)
How to Avert A Great
Depression Through the Hungry 2010s?
Answer, By Making All Banking Very MuchCheaper
If banks in rich democracies had been truly competitive institutions, at least one of them somewhere would have seized
the main opportunity created by the computer. This main opportunity was to make all deposit-banking vastly cheaper than ever
before. By this cheapening it should make such banking hugely more profitable. Then further competition would search for the
cheapest ways to guide all the world’s saving into the most profitable (or otherwise most desirable) forms of capital
investment, thus enriching all mankind.
Instead, during 2008 the total losses of banks in rich democracies – in North America, West Europe and Japan – soared into trillions of
dollars. Fearful for their solvency, these banks virtually stopped lending. The issuance of corporate bonds, commercial paper,
and many other financial products largely ceased. Hedge and insurance firms also crashed. Mankind is thus threatened in the
2010s with its longest great depression since the hungry 1930s.
Why? The strange answer seems to be that other happy consequences of modern technology promised
to make this cheapening even faster. Call centres in Bangalore vastly undercut the middle class salaries of Midland bank clerk who until the 1950s expensively
answered clients’ questions in their branches in the City of London. Cheap mobile phones kept village ladies in once miserable Bangladesh as fully in touch with market
prices as is the chief research officer of the First National Bank of Somewhere in California. His weekly salary is still 1000 times greater
than the previous annual earnings of that village lady. The cost-effective way of running the old Midland or First National then seemed to
be to cut its total salary cost by something like 99%. This did not please Western welfare governments, or the decent chief
executives of the old Midland or First National bank.
Awaiting the sensation of a short sharp shock
From a cheap and chippy chopper
on a big black block
– WS Gilbert in The Mikado - why it is uncomfortable to work in an industry which needs 99%
Western welfare governments have long preferred to run their banks in high cost cartels, and even invented reasons
why this seems to be moral.Their deposit-banks have usually kept in cash only 10% of the total amount
deposited with them. If 11% of depositors suddenly feared that their banks might go bust, this could accelerate a run that
would send them bust indeed. Governments therefore thought that depositors would be less fearful if they were assured that
the banks were officially and tightly regulated. Actually, this mainly meant that the banks had to hire ever more expensive
lawyers so as to escape any crippling consequences from this regulation. The attached quote shows that Samuel Pepys understood
this fact of life in his Diaries of July 21, 1662.
I see it is impossible for the King to have things done so cheaply as do other men
– Samuel Pepys on
discovering an important commercial fact of life in his Diary, 21
The decent bosses of the deposit banks felt that the best
way of avoiding sacking nine tenths of their staffs was by competing with a very different sort of financing called merchant
banking whose earnings and bonuses were far more generous than those given to their own staff. These merchant banks were of
peculiarly differing pedigree. In London, it was assumed that they could best be run by families like Barings who had done the job for over
200 years. In the 1990s, Barings went totally bust because one of its hired traders bet much of its money on a hunch that
a bad earthquake in Japan meant that the shares of Japanese banks and insurance companies would become more profitable. In Zurich, merchant banks felt it most moral
to keep the accounts of their depositors totally secret, especially if these accounts were being used to defraud their own
countries’ tax authorities. In 2008 those secretive banks were then defrauded. In Wall Street, Goldman Sachs and Lehman
Bros bid up their annual bonuses to millions of dollars for each partner. In 2008 even Goldman Sachs made a loss and Lehman
Bros went bust.
A former chairman of the Federal
Reserve argues that “fearful investors clearly require a far larger capital cushion to lend unsecured to any financial
intermediary now”. He therefore thinks that taxpayers money should be ladled into them to make those investors less
fearful. This seems far more likely to make depositors intermittently more terrified and cause any depression into the 2010s
to linger on and on.
In the 1930s, the chief economic adviser to the
government of Siam was called Prince Damrong. I try always to remember it
– quote from former director of International Monetary Fund.
One of the few big banks to make a profit
in 2008 was the Grameen Bank (which means Village Bank) in that once basket-case country called Bangladesh. The sole staff in a branch
serving several villages was once a woman student. It is now more usually someone who has learnt to use the computer in the
How to create cost-cutting
banks? Learning from Dr Yunus and those who have exponentially sustained community rising microcredit seems to be the best
way forward worldwide women and USA Congressmen can get. http://www.results.org/website/article.asp?id=3709
As a child, Norman Macrae bumped into
Peter Drucker. It was dinner time at the British Embassy in Stalin’s Moscow where Norman’s father was a consulate.
Both Norman and Peter’s experiences of the 1930s determined their love of writing up for big management stories
of why and how entrepreneurial systems are born micro. The teenage Norman studied economics from an Indian correspondence
course whilst waiting to fly RAF planes out of Bangladesh in world war 2. He then went up to Cambridge as part of the last student
generation to be lectured by Keynes. He married the daughter of the British Raj judge who was tutored for 25 years in change
by Mahatama Gandhi –Kenneth Kemp went from being the Mumbai judge who imprisoned Gandhi in the 1920s to helping write
up the legalese of India’s Independence in the 1940s.
Norman went on to Deputy Edit
The Economist for 4 decades. He enjoyed reporting system change before it exponentially compounded - including in 1962 the
exponential rise of Japan, and between 1976-1984 The Entrepreneurial Revolution trilogy. The latter provided a microeconomics
map of how to transform - and sustainability invest - through the end of the Industrial era whilst cross-culturally uniting
the generation destined to be worldwide. In 2009, Norman remains reasonably optimistic: Yes Human Beings Can End Poverty - if we choose
to collaborate and celebrate this as our generation’s defining goal.
--- On Sun, 4/1/09, Mostofa Zaman wrote from Dhaka:
From: Mostofa Zaman Subject: Today's
Meeting with Muhammad Yunus To: firstname.lastname@example.org Cc: "spencer" peloquin@ "rachel"
"Alexis "Peter R, "Peter B Date: Sunday, 4 January, 2009, 7:30 PM
I have met Muhammad Yunus
today at his office and tried to report him on what we have achieved in few months back. Yunus has read the booklet draft
and he would love to edit it slightly and he asked me - it that ok to do it? It was "YES" from me to
Is the name of the book?
Micro Guide to 5 Collaborations to End Poverty and Sustain
Anyway, the one aspect I was talking with him is the contents of the booklet
1. Forward by Yunus [ 1 page]
2. Preface by Chris [1 page]
3. A shorts induction on
Grameen [2 pages]
4. 5 Collaborations [20 pages] you have provoided
5. Article on Yunus by Norman Macrae
6. List of Webs on Yunus/Grameen [ 1 page] it will be helpful for the readers
7. List of books
on Yunus/Grameen [1 page] ditto
8. If possible, we can quote from Yunus Speeches on the 5 collaborations
Besides, I was speaking on Clinton Global Initiative University 2009.
27 Update NY Collaboration Cafe youth leaders update Dr Yunus at 15 minute meeting in Manhattan
Jan 26 one of the world's poorest bank debriefs JP Morgan
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Needs to Know First About Economics
Economics designs peoples futures but this depends
on what logics are analysed- here are the logics The Economist used in the early 19080s when it discussed how the net gneration
could be the most productive time for youth
nation/place cannot sustain growth unless its capital is structured so that family's savings are invested in their next generation's
productivity. Norman Macrae's 1954 book on The London Capital Market provides chapter and verse. Historically it
was timely as London's industrial revolution had planted most of the developed world's laws and financial instruments. Futurewise
this book became a source for Norman's forty years of leadership challenges including 3000 editorials. THese became branded
in the 2 genres of entrepreneurial revolution and future history of the net generation genre which he focused on from 1972.
They script in practical details most of the changes that economists would need to make to historic rules if globalisation
is not to collapse the worldwide financial system of 2010s
Norman framed his
writings on future purposes huan most wanted around the idea that The Net Generation to 2024 would face change on a scale
never previously experienced by our human race. To prevent risks and celebrate job creating opportunities Norman proposed
in his 1984 book (The 2024 Report) that the world should unite around youth's most exciting millennium goal. He explained
why economics would design the most popular futures if the goal was chosen as racing to end poverty everywhere. Reasons
included: its possible, its exciting, it creates jobs post-industrial generation will need to design around collaborative
technology, it can empower youth to joyfully unite cultures as we become borderless (more connected than separated), it aligns
economics principles with nature's exponentially (compounding) rules of evolutionary selection which are community-up and
We are shocked how few people know of the main
findings of the renowned economist Maynard Keynes- increasingly only economics riles the world and the greatest risk to the
future working lives of our children comes from elderly macroeconomists who hire themselves out to the biggest who want to
Historically when faulty systems
of macroeconomists ruined civilisations they fell one by one. But Einstein took Keynes logic further and hypothesised that
the first generation to become more connected than separated by technology would be subject to a final exam. Now if we let
erroneous macroeconomists rule whole continents of nations will collapse.
By 1976 my father (Norman macrae) -probably the last student of economics
mentored by Keynes- was writing at The Economist why the next half century would see the net generation
tested - he called upon the genre of Entrepreneurial Revolution (ER) networkers to sort out the greatest innovation
challenge economics - and so the human race - will ever face .
The opportunity of 10 times
more productivity for the net generation (with million times more collaboration technology than man's 1960's race to moon)
THREAT is preventing the threat of collapsing continent-wide
system of value exchange. By 2020 the (exponential track impacting future) sustainanbilyty of every village around the globe
will likely be lost or won
How could we be experiencing record youth unemployent when we are living in a time
of a million times more collaboration tech than a generation ago? According to research by Entrepreneur networks started at
The Economist in 1976, we are 36 years off track in compounding 2 unustainable systems whose follies multiply each other
that caused by non-economic media which also distracts us with glossy images and
soiundbites instead of future realities and integrated cross-cultural and inter-generational understanding - full briefing here
World's biggest maths error compounded by macroeconomists and all global professions
with a ruling monopoly - see below
Discuss: what does everyone need to know about the way economists think and behave. Understand 2 opposite
segments of E : The Unacknowledged Microeconomist and the Fatally Conceited.MacroEconomist
- because economics will incresingly rule the world, the greatest danger to the futures of youth is elderly macroeconomists
where fame maks them compete to superpower over peoples
historic significance of capitalism is precisely a society in which exchange has become a more important source of power than
threat**** in his book economics as science
Von hayek- given the fatal conceit in my profession, I really think you shouldn't be doing this - awarding
me a first Nobel Prize in economics
speech and everything about the future you want, NOW depends on enough people knowing how to play the value exchange game
- and why that isnt exactly what the game of monopoly teaches - an exchange is where each side says I wants something from you so let's work out what I
can do for you and purposefully improve on this over time through hi-trust communal feedback
debate difference between true capitalism and phoney capitalism
agree on a picture like
that on the right- we have seen cases where one of the 10 coordinates shown felt the system had betrayed their greatest
trust, and so zeroised the organsaition or network (even ones that accountants had been reprorting record profits ahd $100
start discussing multi-win models - see our 4 favorites from 36
years of debates with entrepreneuruial revoltionaries
choose say 12 markets whose future
purpose is most vital to sustaining your children - and use media to agree what the greatest human purpose and corresponding
mkilennium goals are that need investing in to fee each market and youth's working lives in serving the most valuable purpose
get those (including all parents?) who save across generations to throw out speculators from banking systems
and capital markets - eg next time there is a bailout (which means taking your childrens money to refinance a bank) wipe out
shareholders; let them set lawyers on old managers and any politicians their pr's lobbied; keep savings accounts safe; restructure
bank so that it invests in youth productivity and sustaining communities not bubbles, and not trapping people in debt
Goodwill explains up to 90% of value impacts of any organsaition in a networked economy- yet no nation
yet requires that organisations it licences to audit goodwii. 20 years of research has proved the following reciprocal relationship
- the purposeful question" who would uniquely miss what if your organsaition did not exist?, has the reciprocal
question why let your organisation contnue to exist if it has broken my life-crtiical trust it promised to serve
valuetrue capitalism maps how each side win-win-win from other sides communal purpose over time -this goes
back over 250 years to the criteria of free markets adam smith demanded freedom of speech questioned - he talked
about the transparency of community markets where a rogue trader might fool some of the people but not for long and not for
too big to fail! - the journal of social business edited by adam smith scholars at his alma mater Glasgow University
advises people of any other tongue how to build up from adam's hi-trust ideas to such constructs as sustainable global vilage
networking first mapped by schumacher (another keynes alumni) - we have a library of free articles for you to choose and translate
phoney capitalism spins a monopoly, a non-free maket - one side rules by
saying I want to take more and more from all of you- esentially this is what rules when global accountants audit only how
much one side has profited/extracted withouth how much has it sustains other sides- phoney capitalism can only result in exponentai
meltdown becuase so much has been extracetd from system that its unsustainable for human lives or for nature or for both
Mobile Planet's Center of Entrepreneurial Revolution? globalgrameenisborn
· socialbusinessdecade · yunus69birthdaylondoncreativelabs.avi · yunusyouth...
MORE ABOUT WHERE VALUING NETGEN CAME FROM
- in the 1990s I was working with big 5 accountants;
I argued for a missing audit they needed to do as regularly as their monetisation audit; I called this how goodwill modelling
multiplies value around a gravitational purspoe ewhise gials all sides want to progress over time; it turns out that in knowlege
scetors over 90% of the future is bayesian predicatbale on quality of goodwill relationships-3 yeras before andersen crashed
I usd this model to warn them that if they stoped multiplying conflicts around true and fair they would be zeroised by society-
I didnt succeed in getting my advice to be acted on but at that time unseen wealth publications made by brookings and georgetwon
had just been banned by the incolimng bush adminsitration - who didnt like to be told that without the second aidt risks would
compound unseen- every collapse USA has seen a hand in during 2000s (and viralised to other nations since 2008) can be traced
to this mathenatical error
what can be done about this mess
-debate difference between true cpaitalism and
choose say 12 markets hose future purpose is most vital to sustaining your children - and use
media to aggree what the greatest huan purspose and corresponding mkilennium goals are that need investing in
thse who save across generations to throw out speculators from bankiing systems - eg next time there is a bailout (which means
taking your childrens money to refinace a bank) wipe out sharehilers; let them set lawyers on old managers and any politicians
their pr's lobbied; keep savings acconts safe; restructure bank so that it invests in youth productivity and sustaining communities
not bubbles, and trapping people in debt
-if you do this today's millions times more coalbration technology than
a generation ago can make the next decade the most productive time and joyful for youty and everyine to be alive instead
of the most dismal time where natios led by old macroecnomist put youth out of work
DO YOU KNOW...
Q: Original Purpose of Economics? A The Scotland of the 1750s was at the end of a first
generation to have found their country taken over by England's
Empire., So Adam Smith was motivated to start writing
about how to design systems so that peoples could could look forward to their next generation sustaining more productive lives
than they had had ... 7 quarters later keynes general theory issued humanity's greatest challenge- economics as a systems
science had reached the state that only economics rules the world ... more
Q: What do the man-made systems that rule the world look like? A Purposeful
value exchanges composed round 5 main flows of how productively peoples lives are used and 5 main demands human beings
make as co-workers, customers, owners, stewards of the globe, stewards of society at the village level - more
Q: Why can't human race in 21st C be sustained with choice of economics made by 20th C biggest
banks and govs etc? A Long Story: ER alumni are in their 37th year of offering debating scripts eg1 on wht some industrial age systems after world war 2 were designed to be too big to exist as the
first net generation became more connected than separated by geographical borders ... What is known is that 2010s is most
exciting decade to be an entrpreneur because our impacts define what will be possible for all our childrens' children more
World Class Brands are in 25th year (as a subnetwork of Norman Macrae's Entrepreneurial Revolution)
of helping sustain the most purposeful organsiations or markets in the world. Core to any charter of purpose is a quiz
revolving round this question- who would uniquely miss what if this didn't exist?.
From this Q&A's list of trust-flows, economics maps how to connect producers
and demanders of the exchange in multi-win models of purpose. Henceforth, potential conflicts with this goodwill
model are audited and resolved at every cycle so that unique purpose is celebrated to lead the future by
continuously multiplying the most value and trust. This model provides the simplest benchmark around all exponential
impact metrics of sustainability investement can be calculated and the transparency of all multi-win models are webbed
around pro-youth economics. Questions welcomed email@example.com washington dc hotline 1 301 881 1655
Microfinance Focus, November 4, 2011: Professor Muhammad Yunus was invited to deliver
a key note speech during the G20 Young Entrepreneurs Summit held in Nice, France. Professor Yunus addressed an audience of
more than 400 entrepreneurs from all G20 countries. In his speech, he shared his personal entrepreneurship experiences, his
faith in young entrepreneurs to be the pillars of society and the need to include poor countries in the discussion process
in making global decisions.
Professor Yunus being an entrepreneur himself started off creating the Grameen Bank that
provides microfinance services to the poor who had little access to financial provisions. From that, he ventured into a wide
number of social businesses such as Grameen Nursing College, Grameen Eyecare Hospitals, Grameen Shakti, etc.
always considered young entrepreneurs to be the most effective solution for the future. He said “In my opinion, G20
YES is a fabulous initiative, gathering so much energy and momentum from all over the world. Because of their creativity and
leadership, provided that they commit to share the value they create, these 400 young entrepreneurs in this room can change
Professor Yunus is also a member of the Millennium Development Goals (MDGs) Advocacy Group, advising
the Secretary General of the United Nations. Hence, he believes that the next generation of youths should be handed over the
process of the MDGs as soon as possible. He believes that entrepreneurs will have a key role to play in fulfilling the MDGs,
if they are committed to the social value created by their companies, and social business can be part of the solutions.
his speech, he added that the G20 needed to broaden its scope to deal with the current world crisis. It can no longer remain
a political forum with economic agendas. The G20 needs to create a social agenda as well. Professor Yunus proposes that ‘social
business’ should be brought to the agenda of G20, as one of the concrete and effective solutions to be considered for
immediate implementation so as to guide capitalistic investment towards social value and jobs creation, rather than sheer
profit maximization strategies. A social business is a cause-driven business where profits stay within the company for its
Lastly, Professor Yunus concluded that the G20 should be expanded into the G25, where poor countries
from each continent should be included in the global agenda which they are part of. He added that “Their problems are
inter-related with others, and their proposals of solutions should be considered by the most economically advanced countries
in making global decisions. A G25 would be a big step toward ensuring that global social issues are raised, and MDGs implementation
is fully shared on the global agenda. And finally, because fighting poverty together is the only way to bring long lasting
peace in this world.”
inquiries chris macrae info @worldcitizen.tv us tel 301 881 1655 ; us office 5801 nicholson lane
suite 404, North Bethesda, MD 20852 USA - skype chrismacraedc
Mapping is a process of discovery. Crucially maps are only as usable as updating correctness of bottom
up information. Think of your own use of a map. You look for the "you are here arrow". You want to be directed to
somewhere/someone you dont know how to get to; you want your return vist to be safe as well as a value multiplying win-win.
Does anyone remember the simplest findings of einstein and jon von neumann. Einstein proved
that to innovate more value you need to go more micro in what you model; von neumann showed that there is more value to be
networked by interfacing safe flows across systems instead of ruling over separation of boundaries. There isnt a single
global metrics profession that gets these mathematical -and natural - principles right. Unless we change this global
markets will cycle through ever greater collapse and more and more communities will lose sustainability. Mapmaking is that
critical an idea to what the net genration will achieve in 2010s; but its also one that children from primary age up can action
learn. Its simple. Its just that it works the other way round from top-down people's fatal conceit.
It explores how to make the invisible principles and practices of real wealth creation
visible, and therefore useable. Our planet needs case studies underline the search for new win-wins that build ‘system
integrity’ Trust-flow is the unseen wealth to invest sustainability in. Tranpsarently mapped it develops
a goodwill gravity tyhat invites with roleplayer in a community to multiply goodwill while sustaining their own cashflow..
Trust is not some vague, mushy, abstract warm-hearted sentiment. It is an economic powerhouse – probably just as economically
and socially important as oil. The point is, there are specific things you need to do to get trust flowing, just as
there are specific things you need to do to get oil flowing. And like oil trust has a dark side. Right now, the world is awash
with the carbon emissions which threaten the stability and sustainability of its ecosystems. Right now, the world is also
awash with the ‘carbon emission’ of trust – mistrust. Indeed it may well be that our ability to tackle the
one issue – the threat of environmental catastrophe – depends on our ability to tackle the other issue: how to
generate, deepen, extend and sustain trust.>br>But what is the best way of doing this? One thing is for sure. You don’t
build and sustain trust via some sentimental exercise of goodwill to all and sundry. There are three very simple principles
at the heart of effective trust generation. First, trust is generated via win-win relationships. It’s virtually
impossible to generate or sustain trust without mutual benefit for those involved. But beneficial outcomes are not enough
in themselves. For trust to be built and sustained, both sides need to signal a demonstrable commitment to finding win-win
ways forward. Such a commitment may require real changes to what we say and do. Second, real ‘win-wins’
are hardly ever purely financial or material. You don’t build trust simply by walking away with more cash in your pocket.
Trust works at all the dimensions and levels of human exchange. Yes, it’s about financial and material rewards. But
it’s also about purpose (what people want to achieve). It’s about politics with a small ‘p’: the use
and abuse of power, the crafting and application of rules of fair play. And it’s about emotions: the sometimes overwhelmingly
strong emotions, both positive and negative, that are generated when people deal with other peopleWhat’s constitutes
a ‘win’ – a sense of real improvement – is therefore highly specific. It depends absolutely on the
details of who the parties are, what they are trying to achieve, in what context. Building trus, therefore involves discovering
these specifics. Just as oil doesn’t flow out of the ground, get refined and pump its way into motor vehicles automatically
and without effort, so identifying and doing what is necessary to get trust flowing requires dedicated, skilled effort. It
requires a disciplined, structured process, not a vague sentiment.
3) Third, even if we do steps 1) and 2) there’s
still a good chance it won’t succeed. Why? Because it ignores an invisible third factor. In the real world, purely two
way bilateral relationships don’t exist. There is always a third party whose interests or outcomes are affected by what
the other two parties do but who is not a party to the contract. The environment is a case in point. Producers and consumers
may both benefit from buying and selling to each other – but what happens if, in doing so, they destroy the environment
they both depend on?
This raises a hugely important question. When two parties pursue win-wins and build mutual
trust, are they doing so in a way which creates a win and builds trust for the third party at the same time? Or are they simply
pushing the problems – and the mistrust – further down the line on to this third party? Building vigorous, healthy
networks of trust is a different kettle of fish to ‘you scratch my back and I’ll scratch yours’
win-win conspiracies. It requires a Map of all the key relationships plus careful consideration of knock-on consequences.
It requires a different perspective.
These three simple, basic steps do not happen automatically. They need to
be worked at. The territory needs to be deliberately Mapped and explored. What’s more, there are obstacles in our way
– mental and practical obstacles that need to be cleared. Prevailing economic theories about ‘rational economic
man’ for example, deny the need to commit to win-win outcomes. Instead, they promote supposedly ‘rational’
(i.e. narrowly selfish behaviours) which actively undermine trust The same theories insist that the only valid measure of
human benefit is money, thereby excluding from consideration many of the biggest opportunities for improvement. Meanwhile
many vested interests do not want to extend the circle of trust to third parties and complete networks because their positions
of power depend on their ability to take advantage of the weaknesses of these third parties. That’s another job for
Mapping: helping to identify and mount such obstacles. The potential benefits of doing so are unthinkably huge. They
start with a simple negative: the relief that comes from when you stop banging your head against a brick wall. Mistrust breeds
wasteful, wealth destroying conflict that tends to feed on itself. Anger and hatred engender anger and hatred. Simply easing
or stopping the terrible waste of mistrust would transform prospects for many millions of people. We desperately need to find
ways of doing this. Then there are the positive benefits. Understanding the real nature of human wealth – all those
dimensions of purpose, ‘politics’ and emotion as well as money and material comfort – means we can start
being human again; human in the way we think, and act. What’s more, many of these intangible benefits won’t cost
a penny. They’re there for the taking, if only we puts our minds to it. But there’s more, because trust is
also an economic superpower in its own right. In the pages that follow we will show conclusively that material and financial
riches are also dependent on trust. In fact, we will argue the case for going one step further. We will say that material
and financial riches are a by-product of trust: the visible fruits of invisible, intangible human exchange. Once you understand
that sustainable cash flows are a by-product of sustainable trust flows, your understanding of what makes a successful business
is transformed. Separately, each of these three fruits – reducing the waste of conflict, unleashing the potential
intrinsic benefits of human exchange, and energising the sustainable creation of material wealth – are massive in their
own right. Put them together and they represent a vast new continent of opportunity. As we said, this book is addressed
to entrepreneurs and system innovation revolutionaries. Wherever you happen to be, whatever the change you want to make
is, the principles explored in this book apply. The wish to change and the will to change are not the same as being able to
change successfully. For that you need to understand your territory. You will need new Maps
a continental or worldwide search solutions on job creation that can be replicated across communities been organised before
this EU launch of Nov 2011?
While alumni of entrepreneurial economics have always valued job creation searches- we know
of no clear evidence that this has been top of mind in the way that continental-wide government has operated since 1984 even
though it was scripted by The Economist's Unacknowledged Giant as the number 1 question the first net generation would need
to mediate if sustainable futures and humanity's most needed millennium goals are to be served
what's different about nov 2011 is 4 top directorates of the EU have nailed their future reputation to this search
Tom Ashbrook: You're
talking about, writing about the end of the EU, the end of the common currency.
Paul Krugman: it's
unthinkable except that continuing down the current path is unthinkable. Spain is actually the epicenter. The Spanish government
did nothing wrong. Spain was running a budget surplus before the crisis. It had low levels of debt. But it had a monstrous
housing bubble, as did a lot of places, largely financed by the way by German banks which were lending to Spanish banks, which
then lent on. And when the housing bubble burst you were left with a severe, extremely severe recession, and so the answer
has been government austerity which just makes the slump deeper.
The alternatives to a breakup of
the euro have to be Europe-wide solutions. And so the solution, if there is one, involves accepting a higher rate of inflation
for Europe as a whole and that particularly means higher inflation in Germany. --Paul Krugman
are Spain's alternatives here? Well, if they still had their currency, their own currency, the answer would be devalue, let
the peseta drop, Spanish exports would become a lot more competitive, they'd be well on their way to recovery. They don't
have their own currency, so people are saying: Well, you have to do all this stuff to stay within the Euro. At some point
you say: Well, you know if your answer to our problem is just ever more suffering, ever more you know... 25 percent, 50 percent
youth unemployment. If that's your notion of a solution, then maybe although it would be a very terrible thing to have the
Euro breakup, maybe that's better than what we're doing. So that's becoming a real possibility now.
to a breakup of the euro have to be Europe-wide solutions. And so the solution, if there is one, involves accepting a higher
rate of inflation for Europe as a whole and that particularly means higher inflation in Germany. Talk to the Germans about
this and of course they go crazy, but you have to say to them: What is your answer? What you're doing right now is just a
path to the collapse of the euro with enormous damage and radicalization and a lot of things that you don't want to see happen
in Europe happening.
TA: If the Germans can't take their foot off the brakes, they're just intrinsically
and against history and everything else, Weimar, if they can't do it, what happens?
PK: Then Europe
breaks up and... No, I mean I think it's that stark. It really is, it really is that extreme because you know it's one of
those things, you can't be saying that, but then you say: Well, let's talk this through. You know, let's as it said in the
original edition of the Godfather - Let us reason together. Right? What are the ways that this can work out? And the current
path is not one that can work out.
It's like an irresistible force hitting an immovable object. On the one hand it's
unthinkable that they'll allow the euro to fail because the euro is a terribly important thing, it's not terribly important
economically, it would have been better off if they'd, if they had never done it, but now that it has been done, for it to
fail is a defeat for the European project, the whole project of bringing peace, democracy, integration to a continent with
a terrible history. So it's unthinkable that they'll allow it to fail, but it's also unthinkable that the Germans will accept
moderate inflation which is the only solution any of us have been able to come up with. So one of two impossible things is
going to happen. Your bet.