. JSB Vol 1(3) October 2011/ISSN2045-1083 Page 28 ‘Global Village’ Networking
Economy – CHRIS MACRAE
Through Free Tertiary Education
South African Case
Imagine a world in
which the most valued professionals are those who help masses of people (from infancy onwards) optimalise productivity and
sustainability of their lifetimes. What is known is that the first 145 years of The Economist magazine was an editorial search
not for an abstract excellence but the social action of optimalising productivity opportunities of all the peoples. This is
also integral to the way the word „entrepreneur‟ was coined in France. And when Keynes tutored his last classes
of students at Cambridge it was core to the Hippocratic Oath he required of the professional economist. In his last years,
Keynes became concerned with the risky conclusion of his general theory „increasingly only economics will rule the world‟
(see Norman Macrae‟s Sunshades in October 1963).
If the people who had assembled at the first Microcredit Summit
1997 had been asked to vote: once we have identified the handful of most economic microcredit models, do you expect it will
be found that the role of educators will have been integral in all of these models? I wonder if the majority would have said
In any event, the family and friends of Norman Macrae are determined that The Foundation that bears his name will
value spaces where educators and microeconomists work with each other joys as well as empowering youth‟s millennium
goals. We welcome portraits of microeconomists and educators that countries‟ peoples celebrate most.
To open this
series Lesley Williams in Johannesburg profiles one of her greatest heroes Dr Taddy Blecher in South Africa. Currently about
10,000 entrepreneurs linkin their own lifes‟ works through 40 cities (www.the-hub.net). It is fortunate that what members
of (and visitors to) African hubs value most is in Lesley‟s charge to facilitate and build - coming as her family tree does from
the lands and community cultures of Mandela and Gandhi.
South Africa has a desperate need for education. More than 5 million youth
are unemployed and 85% do not have access to education. Only 1 in 100 first year primary school goers are averaged to graduate
from college. Tertiary education is not an option due to poverty and any form of entrepreneurship is mostly for subsistence living. JSB Vol
1(3) October 2011/ISSN2045-1083 Page 29
Dr Taddy Blecher1 is considered to be South Africa‟s pioneer in free education. He is co-founder and
CEO of Maharishi Institute, offering students conscious-based education where they can access intellectual, emotional, physical,
and spiritual growth. He believes that every human being is a genius waiting to happen. Inspired by the experience of his
own family where his father shifted the course of the family in one generation moving from hardship to seven academic degrees
and providing the best education to all his children. He believes that there are brilliant children throughout the country
who lack opportunities and mentorship. Free tertiary education was first pioneered in South Africa through setting up the
CIDA City Campus. The non-profit, private higher education institution contributes to the social and economic development
of the country by providing access to quality higher education and skills development for financially disadvantaged students.
Students pay €35 for the first year and €15 a month in the following three years, about 7% of what they would pay
at other universities. They also contribute to the running of the university by helping with cleaning, maintaining computers
and working in the administration offices. As part of their degree, students are required to return to their communities during
the holidays. A pay-it-forward philosophy allows lessons learnt to be shared within their communities of origin. While some
teach, others mentor teenage orphans responsible for looking after younger siblings. Often the first members of their families
to go to university, graduates then step into a life that was previously out of reach.
1 Dr Taddy Blecher
is also the founder or co-founder of Invincible Education Group, Branson School of Entrepreneurship (with Sir Richard Branson),
CIDA City Campus, and CIDA Empowerment Fund, all dedicated to empowering the youth of South Africa through education. His
model has also inspired the founding of TSIBA (Tertiary School in Business Administration) with campuses in Cape Town and
Eden, situated in the heart of the rural village Karatara.
Masharashi Institute‟s response to the desperate need
for education is to provide two educational programmes. Students begin with a two-year foundation programme before they can
start their business degree. The aim is to bridge unemployable youth into education and entrepreneurship by teaching 25 essential
life skills including: maths, English, digital literacy, leadership and self-development. This is followed by a three-year
internationally accredited BBA degree. By building a Sustainable Education Loan Fund, the Institute will become a self-sustaining
entity which funds the tuitions of degree students by having them participate in a „learn and earn‟ programme;
entering in his/her JSB Vol 1(3) October 2011/ISSN2045-1083 Page 30
first year, the student receives a bursary loan
from the Institute worth €1,200. The second year is further funded by a €1,700 bursary. In their third to fifth
year, when doing their business degree, the students are employed by Invincible Outsourcing, a call centre company that is
governed by the Institute and enables the students to pay back their bursaries. The loans paid back fund a new student enrolling
in the programme, ensuring its continuity.
By employing the students, they gain valuable work experience that will
in turn make them more attractive to the labour market and increases their chances of immediate employment after graduation.
Capable students are allowed to take up basic positions in the call centre after training in the requisite skills of a call
centre agent. As the students develop their skills set, they will be allowed to take up more challenging positions in the
centre. Once they have successfully mastered these skills, junior supervisory experience will be available to students who
so desire. Students get real life, practical experience in a closely monitored and trained environment, ensuring a professional
facility and passionate-quality service for clients. Students receive part of the revenue as reward for their experience,
and the surplus generated from the call centre goes to the schools to finance the tuition of future students. This funding
model supports growth of the institute and provides capital to replicate it across Africa and the world.
income of the students are dramatically increased as the starting salary of a BBA student is approximately €7.200 per
annum in South Africa and €14.400 for an MBA graduate. Life time earnings are therefore expected to mount up to €650.000
per person. Currently Maharashi Institute is educating 200 students, meaning a total of €1.6 million earnings in starting
salaries is earned, or €100 million in lifetime earnings altogether. The Institute aims at increasing their student base
to 1.800 in the next two years.
Transcendental Meditation (TM) is an integral part within the educational programmes
offered by CIDA City Campus and Maharashi Institute. TM is a simple, natural, effortless procedure practised for 20 minutes
twice a day while sitting comfortably with the eyes closed. It is the most widely practised, most researched, and believed
the most effective method to reduce stress and develop one‟s full potential. Transcend means „to go beyond‟:
beyond thought, to a silent reservoir of energy and creativity within. The meditation will help the students in clearer thinking,
improved health and a greater sense of self-awareness.
As Dr Taddy Blecher says, „The economics of greatness
is that every person who is great can develop a generation of greatness‟. We need to change JSB Vol 1(3) October 2011/ISSN2045-1083
mindsets by creating attitudes of self-belief. This is how we make an economic democracy.
For more information,
Lesley Donna Williams
Comments and questions welcome: email@example.com.
ELA BRAC Uganda
Empowerment and Livelihoods
BRAC only entered Uganda in 2006. With partners like mastercard its adult microfinance programme has
been scaling fast. Encouragingly so too has its ELA programme for youth (mainly girls).
The Empowerment and Livelihood
for Adolescents (ELA) programme started in Uganda in 2008. There are now hundreds clubs for vulnerable Ugandan teenage girls
and young women. The programme provides a safe place for them to socialise and take part in group activities as well as a
forum for life-skills training.
The programme uses the life-skills course themes offering 10 storybooks for use in
the clubs as teaching tools. The stories are based on recent life accounts from the girls themselves which we asked them to
share or life experiences of those in their society and write them down. Their writing was later used as interactive stories
to discuss at clubs.
The girls are able to freely socialise and share each other‟s experiences, as well as find
support for dealing with personal challenges. The clubs act as both social spaces, where girls can win positive recognition
from their peers, and training venues for skills development courses. Each club organises daily team sports, such as netball,
as well as dancing and other recreational pursuits. JSB Vol 1(3) October 2011/ISSN2045-1083 Page 32
The clubs and the training courses are run and managed by the adolescents themselves. Two girls from each club
are selected and trained by BRAC supervisors to be adolescent leaders. They have to be at least 19 years old. These leaders
are responsible for management of all the clubs‟ activities and conducting the training courses. Training for the leaders
covers facilitation and life skills and is provided through:
Six days basic training
Six days training on conducting
One day refreshers (bi-monthly)
One day orientation
One day refresher for life-skills
Life Skills Training Course
The life skills training course is offered to all the girls
attending the clubs. The goal of the training is to equip adolescents with the necessary knowledge and skills to improve their
lives and to prevent early marriage. The objectives of this course are:
To coach adolescent girls to be conscious,
conscientious and confident citizens
To raise their awareness of relevant social issues such as gender imbalance, early
marriage and drug addiction
To enhance understanding of general health, hygiene, HIV/AIDS and reproductive health
develop leadership skills
To develop negotiation and conflict resolution skills
Income Generation Skills Training
Older girls, who are out of school, are able to choose a training course in one income generation activity that
is of interest to them. As many of the centres are in rural areas, the courses are mostly linked to agriculture. The following
types of courses have proven to be beneficial and appropriate for girls entering into microfinance for the first time:
training on cultivating local crops
JSB Vol 1(3) October 2011/ISSN2045-1083 Page 33
The courses are designed in the context of the
local economies and offer several options to each girl. In our experience, the adolescents are keen observers of market opportunities.
They are given training on basic market analysis techniques and are encouraged to select a business that suits them. BRAC
has found that a lack of financial literacy is a constraint to adolescent empowerment. So adolescents also receive training
in financial literacy before getting a loan. The three-day course includes savings, budgeting, financial services, financial
negotiation and earning money.
Appropriately Designed Microfinance
The key differences between ELA and
BRAC‟s regular microfinance programme are the targeted age groups and the average loan size. The average loan size of
ELA is much lower compared to a comparable loan cycle in the regular microfinance programme.
The unique features of
the adolescent microfinance programme are:
Credit officers who are female adolescents
Smaller first loan sizes
compared to adults
16 years is the minimum age for borrowers (in compliance with financial regulations).
a girl applies for a loan, a BRAC loan officer visits her business and determines its worth and her ability to pay back a
loan. Upon approval, the loan applicant will typically start with a loan between 50,000 Ush (US$20.83) to 100,000 Ush (US$41.67),
depending on her business. The girls who take ELA loans continue to receive support from their fellow ELA members and BRAC
mentors, and over time become eligible to borrow larger sums of money. ELA girls are starting food stall businesses selling
local Ugandan specialities, others are delving into jewelry, hairdressing or makeup businesses, cooking locally desired fast
foods. JSB Vol 1(3) October 2011/ISSN2045-1083 Page 34
Context: Microcredit Summit 2011 Workshops – "Empowering the Children of
Microentrepreneurs with Primary and Secondary Education, College Scholarships and Loans, and Financial Services for Their
Businesses", and "Microcredit and Job Creation".
Grameen Nursing College
The Goal of Ending
When I first met Muhammad Yunus, he inspired me with three action-oriented directions:
nothing is impossible, devil's in the contextual details, so often the greatest micro-entrepreneurial revolution involves
a macro and micro partnering jigsaw that cannot come together until youth and you search out one missing macro piece.
an illustration formed round the intricate partnerships of Grameen Nursing College and its exciting decade-long destination
of end nurseless villages. Dr M Yunus had travelled to Glasgow in 2008 because his close associate economist, Dr Zasheem Ahmed
had promised him some university partnerships. On arrival, Yunus bantered I hope the Scots are going to come up with an action
project not just a lot of theoretical economics even though it is extremely kind to be asked to give a lecture celebrating
the quarter of a century since Adam Smith wrote the Theory of Moral Sentiments.
Zasheem had been expecting that question.
[Sir] Glasgow Caledonian trains an awful lot of the nurses for the UK National Health Service (NHS). Why not ask the principal
to loan you its chief nurse educationist and start up the most practical womens‟ healthcare education and training institution:
Grameen Nursing College. You have thousands of secondary girl scholars in the Bangladeshi villages who would love to be trained
up as nurses and serve the growing number of Grameen rural health centres, eye hospitals, etc.
Yunus jumped on the
partnering opportunity arranging a quick visit to two of the foundations whose global mission is branded "girl effect"
– Nike Foundation and the Buffett family‟s Nova. So the Grameen College partnership got assembled and started
up in under 12 months with first cohort of 40 girls belonging to Grameen microcredit borrowers‟ families from remote
Bangladeshi villages. The relationships in the villages, the partnerships with JSB Vol 1(3) October 2011/ISSN2045-1083 Page
universities, and funding from world‟s leading foundations make as near a perfect collaboration partnership
jigsaw as can be.
Indeed, Grameen‟s goodwill multiplies through hundreds of thousand village hubs and its direct
relationships with youth make it a fast performing partner for „girl effect‟ foundations around the world - witness
how Nike Foundation became one of the partners in starting up Grameen Nursing College.
Yet the partnering possibilities
are destined to grow and grow from communities up. Yunus‟ number one social business technology partnership - Grameen
Intel has a priority focus on what distant village monitoring can nurses, mobiles and world experts link in together relating
to life-critical moments in maternal and infant healthcare.
And yet none of this would have been possible without the
deep roots in the village. As well as Grameen‟s secondary scholarship programme, BRAC‟s original two rural networks
involved informal primary schools and para-retailers of medical knowledge who emerged out of the need to distribute the oral
rehydration solution that costs cents to make but needs the mother to know what to do to stop diarrhoea from killing her infant.
So yes Bangladeshi rural children grow up more interested in healthcare education practices than many; even so the end nurseless
village partnership looks like one that many world class microcredit networks have the grassroots trust multipliers and global
partnering action credentials to multiply.
The Grameen Nursing College is the type of initiative that I see as win-win-win
in every worthwhile way, though it will not resonate very much with those that worship the capitalist market economy!
I see it the Grameen Nursing College initiative has win 1 because it improves human capital by training rural girls; win 2
because they can work to improve the health in a society ... huge value; and win 3 is a huge reduction in the cost of doing
good health in a village, facilitates early intervention, etc.
Context: Microcredit Summit 2011 Workshop - "Why Integrating
Microfinance, Health Education, and Other Forms of Health Protection is Good for Your Clients and Good for Your MFI, and How
Can You Incorporate It?"
poland invites EU to
celebrate yunus microcredit
EU supports social business
European Commission president
business and promoting innovative methods of accessible finance are not only a matter of justice but also a concrete way to
help the poorest of the poor, European Commission President José Manuel Barroso has said.
He said social business
is also “a smart investment in our shared future. The European Commission will therefore continue its substantial aid
to microcredit projects across the globe.”
The European Commission president made the remarks after a meeting
with Nobel Laureate Prof Muhammad Yunus at his office in Strasbourg in France on Wednesday, said a statement from Yunus Centre
They talked about the role of the EU in promoting microcredit and social business across the world. Prof
Yunus thanked Barroso for his support for social business that could be a concrete way to solve social problems around the
The two also discussed the introduction of appropriate laws and regulations in the European Parliament that
would support social business.
After the meeting, Barroso told the press: "I would like to express the EU's recognition
for the successful work of Prof Yunus, whose tireless commitment deserves our profound respect.”
Yunus also attended
a session in the European Parliament. The president of the parliament interrupted the parliament proceedings to announce the
presence of Yunus as a distinguished guest. The parliament greeted him with a big applause.
Later, he was received by
Parliament President Jerzy Buzek in the latter's chamber. In a statement Buzek said: "Microcredit should be supported
around the world. I would like to welcome in particular the microcredit facilities in Bangladesh -- the native country of
Buzek, also former Polish prime minister, praised the concept of social business, pioneered by Prof
Yunus, and hoped to work on ways to help new partners connect with social business.
He invited the Grameen Bank founder
to Poland to introduce social business to the business leaders in his country with an offer to organise the tour.
The government’s proposed bill to bring the `22,000-crore microfinance industry under the regulation
of a single entity — the Reserve Bank of India — has been widely welcomed, both by the industry and the public
at large. In fact, the biggest listed name in the industry welcomed the move and saw its shares jump by 20 per cent on the
day the proposed bill was announced. The government has invited comments on the bill from the public and will finalise it
after taking these into account. Bringing the industry under one regulator was a long-felt need because if each state has
its own rules and regulations, the situation can be pretty chaotic. The Reserve Bank deputy governor, Mr K.C. Chakrabarty,
had said a few days earlier: “If we don’t act under a common set of regulations (for the microfinance industry),
it won’t be practical to work. Five states having five different laws on the same subject will have practical difficulties
for the industry.” Till a Central law is in place, the Andhra-type situation can arise again, and this will nullify
whatever the RBI is trying to do to bring some order, he pointed out. AP is a classic example: the state government had passed
an ordinance that contained stringent regulations for the industry to follow. Not surprisingly, it was up in arms as it was
unable to collect crores of rupees from borrowers. The AP government, however, was not wrong to enact such an ordinance —
its move had followed complaints about the use of muscle power against those who had failed to pay back loans, and subsequent
suicides by borrowers who could not pay up. There was also a considerable amount of misuse of funds as borrowers in some cases
had used the loans to pay back others from whom they had borrowed money, something called “evergreening” in banking
terminology. This was far removed from the original concept of microfinance — as developed by its pioneer, Bangladesh’s
Nobel Prize-winning Grameen Bank founder Muhammed Yunus, popularly known as the father of microfinance. The industry was accused
of borrowing cheap from the banks and lending at exorbitant rates — of between 30 to even 60 per cent. It was not even
sure if the borrowers, who were predominantly women, were really made financially independent or were able to have a sustainable
business such as vegetable vending, which was the principal objective of microfinancing. It is to be hoped that the new bill
will also provide for the independent monitoring of end users of loans — as it is absolutely vital for the borrowers
to be made financially stable. Microfinance is in a way the device which can make possible “inclusive growth”
— the mantra of both the Reserve Bank and the UPA government. The argument that the microfinance industry had tried
to make was that it was being targeted by politically powerful moneylenders, who had a thriving business until the MFI firms
came along. There may or may not be any truth in this, and it is for the government to act against usurious moneylenders.
But this certainly cannot be used to justify the way some of the microfinance companies have behaved. This bill will hopefully
go a long way in regularising the industry and in laying down guidelines so that the industry is able to fulfil its true objective
— of helping the urban and rural poor as well as the disadvantaged. It gives the RBI the power to register microfinance
companies and set benchmark and performance standards for the entire industry to follow.
Canmicrocreditfuel jobs in crisis-hitEurope?
By Timothy Large -- Fri Jul 8, 2011
LONDON (TrustLaw) - Say "microcredit"
and many people think of small loans to the rural poor in developing countries -- basket weavers in Bangladesh, or dairy farmers
But advocates say if restrictive regulations
were lifted, it could just as easily help the unemployed in Europe, where a sovereign debt crisis and rising interest rates threaten to compound stubbornly high
It could help those with pitiful credit
scores and lack of collateral, who don't stand a chance of getting loans from traditional lenders, pull
themselves off welfare by starting their own businesses.
"Small credit is not new but it has sort of disappeared in many European
countries," said Maria Nowak, founder and former president ofAdie International, the biggest micro-finance institution (MFI) in Western Europe.
"And it's important to bring it back again because in fact the economy
is changing from an industrial type of economy towards a service-based economy. Of course you can't develop industry in small
production units but you can do it for services, and then microcredit becomes really important."
developed by Nobel Prize-winning Bangladeshi economist Muhammad Yunus, who founded his pioneering
Grameen Bank in the 1970s, micro-lending has become a global phenomenon.
But it has been slow to take off in Europe where regulations
don't favour MFIs.
"Europe has too many barriers, often well intentioned, to the development of small-scale entrepreneurship,"
said David Syed, a senior partner at law firm Orrick who has advised the United Nations on microcredit.
"I would very much like to see the harmonisation of rules governing microcredit
to promote a single and simple regulatory framework which protects the purpose of microcredit as a tool to assist the most
challenged layers of our population to come out of poverty through productive means."
That goal is reflected in the work of 20 law firms brought together by TrustLaw (www.trust.org/trustlaw), a legal news service run by Thomson Reuters Foundation, for a major study on the regulatory obstacles
to microcredit across the EU's 27 member states.
Led by law firms Orrick and Latham & Watkins, the consortium is working
on a country-by-country report to be published by TrustLaw later this year.
Paris-based Adie plans to take the report to the European Commission in November to advocate for sweeping changes
to regulations across Europe.
MONOPOLY ON LENDING
The European Commission estimates there are some 18 million micro-enterprises
in member states, employing 37.5 million people or about 30 percent of the overall workforce. Micro-enterprises contribute
1.1 trillion euros ($1.6 trillion) to the European economy.
A micro-enterprise is defined as a company employing fewer than 10 people,
while microcredit is a loan of less than 25,000 euros ($36,000).
Advocates of regulatory change point to the European Commission's new 10-year plan to boost economic growth and create
jobs, known as Europe 2020, as an opportunity to integrate microcredit into EU priorities.
Among the reforms MFI are calling for, Adie's Nowak
said it was vital to break monopolies on lending. In Germany, for example, only banks or specific financial institutions can
grant loans, meaning MFIs can only act as agents.
"The challenge is not to enter into competition with banks," she said. "It's rather to be a sort of
entry point for people who do not have access to banks
into the banking sector."
for a softening of usury rules capping interest rates on small loans, arguing that existing rates were "too low to make
the system sustainable".
Denmark, Finland, Germany, Hungary, Italy, Poland, Portugal, Romania, Spain and Sweden all have usury rules.
Nowak said other countries should follow France's example by allowing MFIs
to borrow from banks for the purposes of on-lending to micro-enterprises. Throughout much of Europe, MFIs can only lend out
of their own equity.
The TrustLaw report details a catalogue
of other obstacles facing micro-enterprises including complex registration procedures for the self-employed, few tax breaks
and little exemption from social insurance charges.
could be cool if we could get you, someone from romano prodi's team and someone at yunus bologna university as first
3 entrepreneurial revolutionries of yunus corresponding on good news out of Italy at Naila's good news portal that soft launchres
Apr 6, 2011 ...Sarkozy to take up Yunus issue withRomano
Prodi, former president of European Commission, has written to Prime Minister Sheikh Hasina,... www.headlinegrabber.com/R/Romano-Prodi-News/ - Cached
Apr 6, 2011 ...Romano Prodi, former president of European Commission,
has written to ... to reach an amicable solution in the Professor Muhammad Yunus issue. www.priyo.com › Yunus removed from Grameen Bank - Cached
...HEC Paris, including Valéry Giscard d'Estaing, Warren Bennis,
Dr. Mohammed Yunus, Romano Prodi, Robert Engle, Robert Badinter and José Manuel Barroso.... www.hec.edu › News › Homepage › Knowledge impact - Cached
a time and place on wednesday if your diary still works
I will see muhammad yunus while I am over in paris
next week and as publisher of the journal of social business I would like to have more info to explain all the connections
between france the country that supports him most and MIT - especially as it was France in 2005 that turned him mainly into youth's
networking technology partner for the poor in addition to a banker for the poor. Moreover my dad's main European co-correspondent
in Entrepreneurial Revolution during his 40 years at The Economist was Romano Prodi who President Sarkozy has recently
been asking to support Yunus and the G25 concept
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 firstname.lastname@example.org 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.