Tuesday, November 3, 2015

Intelligent Sustainable Economy

fractal fluidity
The global economy is perhaps the single largest man-made system in existence. It is more unified than language but more consistently damaging than religion. It may also be the most impactful system in place, even with all other human endeavors combined. If properly incentivized, it can steer humankind into sustained survival and take us to unimaginable places.

But currently, our economic system is a barrier to progress. It is a patch work of outdated incentive models and it is reactive. There is not sufficient transparency and is sometimes filled with meaningless metrics. Take the GDP for example; it measures national activities without regards to the benefit of those activities. Practically speaking then, a man-made disaster may even register positive on the GDP scale. So the public is extremely misinformed about what is going on in the GDP and similar data.

Our economic model does not have to be a barrier. It is also impossible to change our current economic model overnight. What must occur, as one economist (Andrew Fynn) had pointed out, is a fluid exchange system gradually introduced into redirecting the economic incentives, giving credit to where it is due and transforming market trends. To do this, as Mr. Fynn rightly suggested in his presentation to the 2015 Disruptive Innovation Festival, we would need to introduce a new “intelligent sustainable-designed hybrid economy” that is grassroots by nature and filters up best practices from implementing "Fractal Fluidity" to net balance incentives. Leaving the economics aside to the real economist, I want to add that transparency of metrics is an important factor in implementing better predictive outcomes allowing us to better steer the world towards sustainability. While Big Data has made this possible, open access and open participation, along with meritocracy and rapid incremental solution-prototype developments, should be built into the intelligent economic model. It will be a few years before we can get there. But here's to hope.

(The 2015 Disruptive Innovation Festival is ongoing from November 2 to 20th. It’s set to GMT so if you are in the United States, be sure to account for the time difference.)

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