The world is changing and so is the economy. Throughout the world economic ecosystem there are many and varied local economic ecosystems. Within each of these are households, families and individuals trying to create their own niche, existence and lifestyle. We are each born into our own set of circumstances which impact on our opportunities. Collectively the economy is what we make it, but some have more influence than others.
The world economy is on the cusp of a level of change not seen since the creation of the modern world. The next generation will be living in a very different world. I am hoping it will be a better world, although like those looking ahead to the modern world in 1790, I am unable to describe it.
What I do know is that innovation will provide the opportunity for change, individuals will need to navigate their own path through the turbulence and governments will be required to proactively tend to their economic ecosystems. It will be a challenging time for governments, both individually and collectively. They will need to preserve the best in their societies, nourish new opportunities, prune the excess and weed out the damaging elements. To do this well they will need vision, time and money – there is no quick fix, no magic solution. It is a time for calm and reason, and I worry that an economically ignorant population will be fed fear and subsequently will be vulnerable to tyranny. Only those who are informed can help governments to make the right choices.
The modern economic ecosystem is like a rainforest – full of complexity and interdependence. It also shares a rainforest’s vulnerability to clear felling.
Austerity, Revolution and Economic Rationalism are all known to fail – we should learn from our history so we avoid repeating the worst of it.