INTERNATIONAL FUTURES FORUM 1998

SUMMARY

New rules for a new economy
Nowhere to hide in the global nervous system
Choice and the common good
Regional polarisation and fragmentation
Highly leveraged impacts
The changing boundary of the individual

The global economy appears to be becoming increasingly unstable. Among the forces for growing instability are the changing nature of the economy, the growing economic importance of intangibles (information, knowledge, relationships and experience) and the evolution of the 'global nervous system', made possible by the spread of information and communications technologies.

A significant change, as a result of the dual impact of these two forces, is the crucial role of the individual. Success or failure in the new economy may be determined less by institutional and organisational actions, and more by those of individuals. The potential for effective action at the systemic level may almost disappear, to be replaced by the cumulative effects of activity at the molecular level, the individual. Individuals will be more informed and independent; they will be more exposed, with more expected of them, without the 'protective buffer zone' of many Institutional frameworks.

New rules for a new economy

Our mental models are still anchored in the industrial era. We are using mechanistic frameworks and inappropriate measures to try to understand the new economy. We still see time as linear instead of parallel; resources as finite instead of renewable; choices as either or, not both and; management systems about counting instead of flow channelling; skills and knowledge about degrees and exams and not adaptability and awareness. The new rules are far from clear but the ability to integrate them will be akin to adopting the role of surfer instead of dam builder.


Nowhere to hide in the global nervous system

The levels of integration in the global economy are such that actions and ideas develop a momentum of their own. Amplified and echoed through multiple feed back loops, statements and actions are instantaneously visible; responses can be immediate and orchestrated; impacts and implications irreversible. For good and ill, regions, communities, companies and individuals all face exposure in this way: boundaries are porous, marketplaces world wide, competition everywhere and nowhere. Survival of the fittest through specialisation appears the dominant philosophy, but what of survival of the planet, the system in its entirety?


Choice and the common good

The pressures of instability are being felt at every level, as is the demand for new responses to the changes: global system; national, regional and local community; the individual. The challenge is that old rules no longer seem to apply. The results of actions, policy decisions and inputs to the system cannot be foreseen and often the outcomes are the opposite of those intended - further reinforcing the sense of instability and unmanageability of the system. Concepts such as the nation state and traditional forms of society and the common good - and with them systems such as tax and social security - may disappear as the demand for choice combines with the ability to manage systems at 'the molecular level'.


Regional polarisation and fragmentation

On a regional level, the intense competition to survive is likely to lead to increasing specialisation, protectionism and the development of niche economies - the rules of which may be developed to suit the local community or region. Thus, integration of the overall system may run parallel to fragmentation of the rules by which different parts of the economy operate. Lack of clarity about moral codes of conduct in addition to changing economic frameworks will increase the complexity and raise the stakes to find effective responses.


Highly leveraged impacts

The high levels of system integration mean that the global economy and the systems within it - financial, communication, health, social security etc - are increasingly exposed and vulnerable to abuse and misuse at every level. The impacts of actions and threats to the system - whether real or virtual in all senses of the words - reach far beyond the immediate location of the event or attack. Individuals, small groups or significant subsets of societies can impose their views and needs with enormous effect - for good or ill.

The changing boundary of the individual

Our ability to manage systems at the 'molecular level' places greater emphasis on individual choice and responsibility. Both are enabled by the growing levels of in-built intelligence in our surroundings, which provide a flow of real-time information and knowledge on which to base decisions. The ability of the individual to absorb and manage these new found complexities, freedoms and responsibilities will be crucial in defining wider social structures. Inability or unwillingness could result in loss of self control and fundamentalism: the ability to do so could mark the beginning of the real shift to the new economy.