Economics, equality and enterprise: recent reading + links

11 May

came_here_to_be_inspiredI’ve been struck recently how very significant trends and evidence seems to pass the social enterprise world: we’ve got our own voluminous waterfall of information, announcements, news, analysis and reports to cope with, so it can be difficult to get time to look at the contextual stuff too. And yet quite a bit of it is very interesting indeed – particularly how, at the same time as social enterprise continues to interrogate its relationship to mainstream capital (often through the vehicle of social investment), that same mainstream capital(ist) system is being questioned quite fundamentally by places like the FT and the IMF and the OECD, and other important initials. So there is a broad theme here of inequality, economics and their relationship to our world. And some other stuff I thought was interesting :0)

– Martin Wolf writes in the FT about how A more equal society will not hinder growth – he bases this on a note from the IMF (pdf) which, to quote Wolf, found that “societies that start off more unequal tend to redistribute more; lower net inequality (post- interventions) drives faster and more durable growth; and redistribution is generally benign in its impact on growth, with negative effects only when taken to extremes”. I think this (and Wolf’s further analysis) is fascinating – in a sense, at the heart of the social enterprise movement is a belief that business can reduce inequality, increase social justice, and help everyone prosper. The IMF might just be backing that up. And the analysis could not be more relevant in the UK where growth headlines don’t tell the full picture.

– There is more on inequality here (via @JeremyANicholls) on the Public Leaders Network: The 2014 budget fails to deal with the deeper issues of inequality in Britain which talks about the OECD pointing out that the austerity implemented may be having good overall economic effects in the short-term (as per growth headlines mentioned above) but be storing up trouble and cost in the medium to long-term.

– Stephen Miller, Senior Researcher at UnLtd, has been taking a look at neolilberalism and social enterprise on his blog. It explores the relationship of civil society and the social sector to business paradigms, and what effect the current financial / economic climate might have on social enterprise, social entrepreneurs, charities et al: “Is there a danger that good ideas are left on the roadside because they aren’t in vogue, or because they can’t generate substantial financial return?” and “There is an argument to be made that, actually, the retraction of the State from civil society just displaces dependence, rather than creating more independence”. Well worth reading part 1 too.

– More geekily / narrowly, I was interested to read David Ainsworth’s take in Civil Society on the new Social Investment Tax Relief and how it might play out – he points out that there might be some gift and loan scenarios that make it an exceptionally good deal for lenders….much more so than those getting the investment?

– There’s more good stuff from Martin Wolf on the Astra Zeneca-Pfizer smackdown: Astra Zeneca is more than the investors’ call He discusses how it creates questions about ownership, control and who should make decisions (newsflash: he thinks the employees might have a say….I wonder where that happens more currently? #socent) [via @JohnHitchin]

– Dan Corry’s RSA lecture on How do we drive productivity and innovation in the charity sector? also warrants a read. Some of it is fairly unsurprising ‘impact measurement organisation recommends impact measurement as important’ shocker, but there is some more interesting stuff there too even if (again) it assumes that importing private sector practice and theory is right (creative destruction etc). I think the part about feedback loops (which plays to why stakeholder involvement / accountability is so important) and how little collaboration we see is spot on – we’ve been involved in some really big collaborative projects of late. They are *hard* but also the most important things we are working on. Much else to agree and argue with here…

– Elsewhere, business leads government kicking and screaming into the future. As politicians tread water on the environmental challenges we face (across parties), business takes it seriously because they are thinking further than May 2015 (or indeed, 5 years after that). Latest example? Lloyd’s of London calling on insurers to take climate change into account (via M&S’ Mike Barry: @planamikebarry )

– Meanwhile, this wouldn’t be a blog about economics if it didn’t feature Piketty (review in the Telegraph of his book, Capital), who is so de rigeur as to already be a cliché. Piketty also argues that capitalism as it is leads to inequality, and that the evidence for this is overwhelming. The response from the right I’ve most enjoyed on this has been Janan Ganesh’s call for ‘rational optimism’ and the Conservatives introducing a property tax – an unlikely prospect, perhaps, but interesting reasoning on the way there.

– And then, today, Ha-Joon Chang (of 23 Things They Don’t Tell You About Capitalism fame) returns to a theme he has covered previously: how students are demanding a more plural economics curriculum, and how we should resist anyone saying that economics is a ‘settled science’. And he challenges the ‘economics can analyse everything’ trend we have seen in recent years. Read more in After the crash we need a revolution in economics teaching

– And a final non-economics, non-equality one, but one that will undoubtedly be more useful than the rest, and usable tomorrow! – 7 rules for meeting up. I love these. Now if I could just stick to them….

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One Response to “Economics, equality and enterprise: recent reading + links”

  1. milski360 May 11, 2014 at 7:02 pm #

    Great post Nick and thanks for the mention. This trend has also struck me recently (hence my current series of posts), and that was even before I’d heard of Picketty (whom is notable by his absence in current S.E. discussions). It’s a shame the main S.E platforms don’t feature more articles like this!

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