ECONOMIC OPERATING INFRASTRUCTURE

Economic Operating Infrastructure: A key economic transformation leverage point

Creatively-developed, values-based economic operating infrastructure (EOI) gives rise to a powerful strategy to accelerate transformation to well-being economies. Like their better-known physical infrastructure analogs of bridges, electrical systems, and airport terminals, EOIs connect and provide flows of critical elements of any economic system. EOI consists of the core ideas, institutional structures, mechanisms, and design of economic production, services, and provisioning.  This infrastructure isa still poorly recognized, but indispensable, foundation of economic systems that define the production processes and goals of an economic system. 

The design of an economy’s EOI embeds and promotes a set of values and principles. A powerful impediment to economic transformation is EOI designed for the dominant neoliberal values, which are associated with endless growth, maximized (financial) wealth, (free) market primacy, and selfish individualism.  Wellbeing EOI builds on values of stewardship, regenerativity, collective value, subsidiarity, connectedness, and equitable markets.  EOI offers numerous high-leverage intervention points to speed transmission of these distinctive values at the base of wellbeing economies. 

Until recently, debate over economic systems was framed by three options that arose in the 19th century:  capitalism, socialism,and communism.  Each is founded in a distinct set of values that give rise to distinct processes and goals.  Particularly since the financial crisis at the beginning of this millennium, a wide range of new labels has arisen including regenerative-, feminist-, circular-, buen vivir-, and donut economics.  Despite their confusion of labels, these new approaches reflect a distinct set of values and principles and produce distinct processes and goals. 

Moving towards wellbeing economies means developing new infrastructure that supports wellbeing in its broadest sense.  The Bounce Beyond team in collaboration with Catalyst 2030 has identified eight core types of economic infrastructure that need to be developed and propagated broadly to provide a strong base of support wellbeing economies: 

  

Narratives: Economic narratives or stories provide an overarching framework for the emergence of other types of infrastructure, framing the role of economic activity in the world. Wellbeing narratives provide the rationale and organizing structure for emerging new economies, and will support and direct the activity of the entire infrastructure.  E.g. Cultural Shift Campaigns; Narrative Research 

Economic Governance: Next economy governance forms create structures and relationships that provide a framework that portrays what is and is not economically feasible in a given context. They are, in a sense, the structure and power relationships embedded in  the narrative.  E.g. Pre-Competitive Agreements; Multi-Stakeholder Governance 

Financing: Financing can be described as methods for funding economic activity. Wellbeing economies will contain approaches to financing that drive the economic system to evolve to support planetary and societal flourishing, not simply wealth maximization.  E.g. Crowdfunding; Social Stock Markets 

Metrics: NEI metrics are equitable, responsible, and holistic indicators of success for economic production and investment. The selection of appropriate metrics ensures that economic exchanges and action are appropriately guided and positioned.   E.g. Business Standards; Investor Impact Measures

Markets: Markets, along with currencies, are mechanisms that support economic exchanges, so they hold much of the financial investment within the infrastructure. Ways for buyers and sellers of next economies products to connect are being developed with a range of new technology platforms that provide the possibility of scale with low interaction costs.  E.g. Platforms; Communities; Product-consumer Direct Exchange 

Currencies: Wellbeing-oriented currencies provide an alternative to today’s dominant form--fiat or government issued currencies. Alternative currencies can allow for greater local self-sufficiency and stable local or regional markets, or build in values of equity and economic stability, e .g., through local or crypto-currencies. Amongst the myriad of crypto-currencies, there are some models that have designed next economy principles into the way they work, others that allow for entirely alternative ways of exchange like timebanking.  E.g. Seeds, Berkshares , Regiogeld (Germany)

Business Structures:  Wellbeing economy Business Structures - arrangements for organizing entities for economic production -  ensure that economic exchange and production represents the interests of all stakeholders, including employees, as well as shareholders, as well as the interests of nature and others who may not have immediate input into the business.  E.g. B-corps; Cooperatives

Products and Services: In wellbeing economies the products,  services, and provisioning need to reflect the core values, particularly around issues of regenerativity, equity, and ensuring collective value.  Thus, they need to limit and address the negative impacts of human economic activity on each other and the surrounding natural systems on which we all depend. These Products and Services will also enable the economic system to function within planetary boundaries.  E.g. Zero Waste; Financial Products