Proposal- Why not celebrate 170th birthday of
The Economist with an open learning version of
Norman Macrae's Pro-Youth Economics Curriculum - Entrepreneurial Revolution?
2013 year of MOOC
|1972 year that The Ecinomist's pro-youth editor first sees experiments of youth sharing knowhow on a digital
network and launches Entreprenurial Revolution to map, value, invest net generation's 3 biullion new jobs|
Keynes ended his life's opus "General Theory" with: Now that we know that the
world will increasingly be ruled only by economics, what values do we need to design into economics?
This was arguably the most important maths question ever posed although Einstein and Von Neumann
also worked on synergetic quesries.
- Choose the right values and economists ill help people design
futures that most of our human race wants most,
- Choose the woing values and economists (and other ruling professions)
will be perfect at destroying human futures
Keynes chose to answer his question : make sure your
system designs are pro-youth - ie investing in next generation's productive potential to improve the human lot out of every
Macrae Foundation www.NMfound.net
www.microeducationsummit.com & www.considerbangladesh.com NMfound education and journalism projects since 2008; www.worldclassbrands.tv a NM found leadership valuation project since 1988
Nicholson Lane Suite 404 N.Bethesda MD 20852Tel 301 881 1655 email email@example.com
that logic my father (Norman Macrae) The Economist's editor of pro-youth economics for most of te sceond half of the 20th
century, proposed the genre of Entreprenurial Revolution in The Economist to integrate debates of the most exciting goals
the 21st century could be born with immediately after his life-changing introduction to youth sharing knowledge around a digital
network in 1972.
A secondary question of deep mathematical priority is : having chosen the value that you
wish man-made systems to be ruled round, what other values correlate positively and which values have negative correlations
(ie can only destroy the value you chose to compound the future round)?
Here are some positive and negative
associations with pro-youth economics. What this means is if you find yourself being governed by a system that stimulates
any of the columnised behaviours and mindsets you are likely to be spun around all of the ones in the same list.
Multiplies goodwill, transparency
and sustainability of all communities.
|Mutiplies badwill, hidden conflicts and exponential loss of sustainability
starting with places that already have the least resources for youth to grow up safe and smart|
and optimistically explores for next gamechanger toward win-win-win
Spends ever more money chaining peoples
to lose-lose-lose and rules over fear of change even while claiming to celebrate progress
bottom-up and open wherever media innovation offers a choice
|Gives away the commons to ever more big brother-
command and control, and divide and siloise|
Thrives on linking in all the positive emotional
intelligences- love hope trust happiness
|Breeds such emotional cancers as hate , distrust, depression and loss
inspires cross-cultural self-confidence before adolesence
Economics -man-ruled global system design - spirals exponentially in one of 2
opposite directions. There is no halfway answer to the question: what futures do you wish for the human race to invest in?
For that reason we urgently recommend that Keynes Last Question should also be introduced in through open worldwide curriculafitted for every grade from 3rd (8 years up).
Since 1984 we have been mapping which education entrepreneurs
agree with this need - rsvp firstname.lastname@example.org to share searches that map the left-hand journey throigh the 21st C and the most exciting goals humans conceive of co-producing.
In 2010 we have a million times more collaboration technology than when man raced to the moon. LET IT BE www.worldeconomist.net
|www.worldeconomist.net nobody who calls themselves an economist can afford not to explore social business modelling. This
is because its models represent investment banking in the next generation while standard mba models and wall street models
represent "the big" of past generations. Social business models value questions that were literally unthinkable
before digital technology. For example, before digital cash, the developing world was one where over half of youth would grow
up never to use a bank account because non-digital transaction records cost more than the transaction sizes they start trading
with. Whether your country chooses digital banking regulations that are pro-youth or anti-youth will likely explain more peoples'
growth or destruction over the next decade than any single innovation challenge. Help include youth's voice in this debate
at http://innovations.ning.com The most entrepreneurial dialogues I have so far found on digital cash come from Japan and what I call
the ABC regions - Africa, Bangladesh, China - where do practice labs of digital cash entrepreneurs excite you most |
Opportunity of Economics- to design futures peoples want; the risk of economics to destroy futures peoples want
most exciting newspaper journalist of last 75 years - believe my
dad was - download leaftet on norman macrae - since he died in 2010 I search as hard as anyone for a modern contender! almost from adam smiths first words came the warning - keep economics free
to be all the peoples subject - not a few top-down experts- Today's nightly news is being monopolised by experts in
destroying youth's futures - this web welcomes ideas on how to return democracy, youth and diversity to economics, but norman
also suggested a simpler way may be to choose one practice area (market sector) whose future you are passionate about questioning-
what could its most exciting purpose be for the whole human race to unite round co-producing? email@example.com
download leaflet - Entrepreneurial Revolution -Norman Macrae's celebration of purpose of internet generation since 1972
|Most Exciting Pro-Youth Purpose || Case - you tell us rsvp firstname.lastname@example.org|
| Most Exciting Investment Banks|| The 2 Bangladesh Banking systems representing 15 million
poorest village mothers -download norman's last article (2008) on how to learn from hi-trust banking so as to prevent quintuple dip recession thru 2010s|
Exciting USA Companies|
Interface - even a carpet manufacturer can profitably lead by planning to get to zero
wholefoods- promotions most loved by employees mainly create a doubling of million jobs supported in
developing world every 4 years thanks to al at http://wholeplanetfoundation.org
| Most Exciting Universities|
resourced MIT - greatest job creating alumni network in world
Lowly resourced - south africa free university movement
of mandela partners organised by www.taddyblecher.com
| Most exiciting broadcaster|| www.africa24tv.com searching 40 industries and hi-trust industry leaders african continent needs to be self sufficient in|
exciting economic models|| Japan - created most win-win models of world trade ever seen including revolution in
manufactiring quality and start up of whole asia pacfific region|
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SAVE EUROPE IDEA 1 - Ideas welcomed by
Why not issue Euro2 by printing 5% more euros but inxex
Euro2 to a basket of worldwide countries with the lowest youth unemployment
The only banks allowed to start loan chains with euro 2 invest in people's productive lifetimes
, not property or conspicuous competition, they have a track record of 95% + payback of loans as well as minimal use of lawyers
and collateral in their relationships with small enterprises. We believe the EU's project Jasmine has the knowledge to select
banks with this pedigree.
In the future, when Euro2 is invested in large corporations, the board must havethe transparency to
measure goodwill as auditing a multi-win model
these win-win-wins celebrate a combinatorial pattern
owners are not interested in short-term extraction but long-term win-win-wins
turnover of employees is low because employees
trust the organisation is investing in their working lifetimes
of company is aligned with what youth vote the greatest responsibility for the sector to be
societies trust the company to live up to not destroying natural or human capital , and not causing any cross-cultural conflicts
these companies demand that business partners show their own goodwill auditing so that no
risks are compounded at boundaries between organisations -the most essential innovation a networked world needs
every profession to transform its rules round to be sustainable
a network of companies does exist - they eschew phony capitalism and call their values conscious capitalism
metric of goodwill was proven by eu intangibles research 2000 -2003 to be missing; this research showed that corporations
that did not do this audit would compound risk unseen; brussels ended funding of this research saying politicians believe
that adopting this audit is not an issue that gets votes and won't be until we have at least 3 european enrons in on year.
Europe has now suffered far more than that - the reason auditing goodwill hasn't been adopted is that it conflicts with the
way big bankers, and the politicians they lobby, reward themselves - but that's what youth needs in any country that is to
invest in pro-youth economics;
research shows that hi-trust goodwill
auditing will also conflict with
- companies whose marketing spend huge ad budgets so that image is more important
than reality but that's what youth needs;
- leaders who outsource the risks
their company knows most about but that is what youths futures need
when they invest in community-replicated service franchises, they do the sort of due diligence
reported by investors in social impact bonds at the EU conference november 2011 and the issue of Euro2 calls for a complete
Europe-wide portal of such franchises being accessible for all Europeans to see at communal and individual levels of transparency
and entrepreneurial empowerment. Where countries have public broadcatsers they should be given first rights to reporting god
news from this portal
Our journal welcomes nominations of organisations whose business model includes transparent
goodwill auditing carried out at the same performance cycles as cashflow auditing but reported in terms of what exponential
trajectory the company si compounding into the future - sustainable up because no conflicts are entering into the multi-win
model, at risk of turning exponentially down as conflicts are appearing and not being resolved by leadership and company-wide
video of inauguration of yunus as youth's favourite
economist at London School of Economics http://www.youtube.com/watch?v=V2lXpKq_Jqw&feature=youtu.be
The famous economist, Maynard Keynes, became a very concerned person at the end of his life. Would economics
end up as a schizophrenic discipline? His general theory proved that the world would increasingly be ruled only by economics.
Power can be used to good or bad ends, and the latter could be the fate that fatal conceits of macroeconomists globalised.
Between 1843 and 1943 the centenary biography of The Economist shows that economists were united around trying to
improve the human lot by improving productivity of youth out of every community. After world war 2, western economists increasingly
hired themselves out to political chicanery, often accidentally being sponsored by the big gets bigger, the speculative more
speculative, or the political more bossy, or the media man who values perceptions over realities. By the end of the 20th
C , like Gandhi’s decent Englishmen who ruled the Raj in the 1920s most guru economists did not understand how many
conflicts their top-down models were destroying people’s productive lifetimes and sustainability of communities at the
The bad news and the good news of being ruled by the world’s greatest maths mistake
(badwill economics instead of goodwill economics) is that only by changing the maths can the extraordinary power of networking
technology spread sustainability solutions and youth employment through all the world’s communities. We have entered
the 2010s with Moores Law doubling every year or two the errors of disinvesting in youth, as well as the last few years window
of opportunity for reversing the human race’s trajectory back to a sustainable world.
MOST EXCITING TIME TO BE ALIVE
us in mapping how to connect every community In making 2010s youth’s most productive decade.
Where can you click to see 10 times more economic community models that you could transfer
to maximise youth's productivity anywhere that matters most to you and yours? My father chronicled this forbidden question over
60 years including 40 at The Economist. http://normanmacrae.ning.com/forum/topics/norman-macrae-books-surveys His last 2 tips would be to consider bangladesh's first 40 years as a free nation and to celebrate african idols. We can also search by vital practice areas such as:
creating and pro-youth educators
professionals who value multi-win models in ways that are simple enough for all to celebrate
workers who want everyone to be able to afford the most productive life
Nigeria Flying Doctors Dr Ola Orekunrin
|Nigeria and region : Rapid response urgent medical||The story of how and why a London-Nigerian girl fell in love with healthcare and flying. By 25 Ola was
west africa’s first flying doctor. As she says when your passion leads you to do something visibly worth spending your
life on - the first followers that celebrate you are absolutely pivotal. MIT wants to start up a female entrepreneurs course and alumni net around her.|
those who design hi-trust media or tech or invest in youth's most exciting goals
Genius Economist of 2010s: Informally Congress Votes, Wash DC Sept 2010
Home of 2010s Microceonomics Survey- Youth’s 30 most exciting worldwide
upcoming conferences where survey will
be present Oct2011 Atlanta 1200 JobCreation Brainstorm; Oct 2011 Media Literacy 1000 youth and parents Bethesda; Oct2011; MIT Hi-tech for developing economies; Nov2011 Spain 15th microcreditsummit
|e11.1 Literacy and cross-cultural confidence
of every girl and boy by adolescence |
e11.2 Financing freedom of every girl and boy to find their own income generating competence either by staying
on to secondary schools designed round this goal are by offering valuable work experience from the productivity and sustainability
viewpoint of the adolescent
e11.3 Changing the process of education from examination to inquiry – New Zealand has a 27 year long lead in this
that 10 million Chinese parents also celebrate – see www.thelearningweb.net
e11.4 Help world citizen
schools cross-culturally report what millennium goals their young people (and parents) vote for. Clarify which demographics
identify the most differentiated goals and help educators evaluate where these diverse views are opportunities and risks.
Launch a wiki to focus on risk mentoring networks
e11.5 Starting every university year in every region with a statewide job creation brainstorming
by and for youth celebrated by that place’s best businesses and the most joyful principals
e11.6 Identify –and celebrate - ever
peer to peer educational model that works on action learning contexts eg Oz's 10000GirlsTestBanks. ( Yes You Can help youth value the experience of what you can teach is also what you have the most flow to practice)
e11.7 Using open course ware
so that university models that create the most jobs are celebrated – it is fortunate that MIT is the leading host of
open course ware, if viewed as a nation would be 11th in creating jobs, and has the www advice of Tim Berners Lee.
free university models –funding apprenticeships of those with capacity and will to serve the most life critical needs
in the places where poverty museum races are most needed -eg we
can End Nurseless Villages by making training nearly free for any industrious girl who would love to have nurses knowhow
e11.9 Informalise professional knowhow value exchanges at community levels- eg
mobilize a social business job agency owned by semi-retiring nurses and that region’s old people from which ambulance
chasing lawyers are constitutionally excluded
e11.12 Adapt tv quiz shows such as BBC’s mastermind to specialist subjects
limited to re-investigating what we know about learning – for example what team of Gandhi, Montessori and Einstein discovered.
(Technical reference – see Grounded Theory for the communications protocols for completely re-examining any conventional
e11.13 Host a dragons den or shark tank but for social businesses designed to solve gaps in actioning millennium goals
e11.14 Host “The Apprentice”
not with Donald Trump bu for the first world bank leader that wants to coordinate beyond Aid projects
e11.15 The Queen Elizabeth worldwide schools
project- invite essays from children around the world as to whether there is a more exciting way for the 10 biggest corporate
spenders on the Olympics to spend promotional monies than the many billions they will spend on tv advertising round London
e11.16 Vote for 3-5 most exciting banking models microcreditsummit participants have ever come across. Develop a Q&A presentation on each model that is online and everyone knows where
to discuss. Viralise through youth and womens network until this is anumber 1 bookmark on web
e11.17 Provide one bookmark
for ongoing debate of what are we are learning between the battle to bank the first billion people by mobiles between the
2 opposite sides; those who want this race to be won by worldwide community and open ownership; those who want the race to
be won by one group of owners who appropriate the value of such an infrastructure for themselves
e11.18 Clarify what other life critical service
areas are in parallel mobilise a billion races, and link them in at same bookmark as the bankabillion debate – see eg
www.bankabillion.org Help these MicroSummits to celebrate action network partnerships that connect MicroCredit & MicroTech
and one other Micropractice area:
e11.19 MC & MT & MicroEnergy – eg microenergycredits.com and ashdenawards.org
e11.20 MC & MT & MicroAgriculture
–eg India’s EAGRI
e11.21 MC & MT & MicroHealth
e11.22 MC & MT & MicroFamilyHome
e11.23 MC & MT & MicroDisasterRelief
e11.24 MC & MT & MicroProfessions
e11.25 MC & MT & egov
e11.26 MC & MT & CommunityOwnedMarketChannels
e11.27 Map where places’
youth have a chance to develop because they have type 2 stockmarkets : being those (The Economist first advocated as essential
to sustainable global finance in 1972) that take intergenerational savings of that place and invest in that place’s
e11.28 Vote for every future capital
city’s favourite youth social action portal starting with such benchmarks as Paris danonecommunities.com and New York’s
e11.29 3000+ peoples summits and demonstration festivals; in addition to microcreditsummit
make a shortlist of most exciting peoples productivity events any capital has ever staged. Reference – hosts of open
space technology have convened many hundred such events each geared to entrepreneurial revolution of one urgent practice context
e11.30 To accelerate sustainability
of Asia pacific www century (The Economist 1976-2075), celebrate where partnership triads of china, and a bottom-up microcredit
business modeler and a corporate innovate a new trillion dollar market place around a revolution in affordability
promotion - for fall 2011 we wanted to celebrate the actions of 10000girl in Australia - here are some notes on what they are action networking and why
Come to a one day Life Planning Workshop or set up a GIG (Girl Investment Group) and;
[ ] Review or create clear
inspiring life goals (a plan for the future)
[ ] Have a minimum 3-6 months
wages saved up as an emergency fund (savings)
[ ] Have sufficient and relevant
insurance in place (insurance)
[ ] Ensure you’re happily challenged in your career (personal growth)
[ ] Be learning to plan, save and invest toward a self-funded future (financial security)
[ ] Share with a like-minded peer group (inspiration)
[ ] Meet local financial service professionals (professional support network)
[ ] Be contributing to our broader economic prosperity and wellbeing (sense of community)
The July-December 2011 10thousandgirl Events Calendar has been announced with programs running in Canberra, Bathurst, Orange, Young,
Dubbo, Tamworth, Armidale, Singleton, Newcastle, Alice Springs, Barkley Tablelands, Sydney, Wagga Wagga, Albury, Wodonga,
Ballarat, Bendigo, Geelong and Melbourne. Register now or contact us to put your town on the map in 2012.
Why is this necessary?
1) Women earn less than men; 2) are more likely to have interrupted careers because
of child raising and caring responsibilities; and 3) live longer so need to save more for retirement. Women in Australia can
expect to earn $1m less than men in their working lives. Globally, 1% of the world’s women own land. SOURCE: Australian Financial Literacy Foundation, National Centre for Social and Economic
Modeling (NATSEM), International Center for Research on Women (ICRW)
VALUETRUE NOTE ON THE WORLDS GREATEST MATHS ERROR
Why would parents destroy the future productivity of their children by billing them
for national loans, banking bailouts, laws designed to make things like health and land ever more costly, extraction of natural
and human resources, celebrating on nightly news big organisations that are compounding conflicts and unseen risks.?
Quite simply the answer
is that there is a ruling species of macroeconomist and metric professions that are committing the world’s greatest
maths error. Their economics isn’t economical by any commonsense valuation of the word, and however big the systems
they hide their failures in, the core problem is they compute trust wrongly every quarter causing it to exponentially compound
distrust, and multiply risks.
In older days, when the telex was the fastest way to communicate
measurements around the world, something accountants called goodwill was only a minor item in a market’s valuation of
companies. Today it is the vast majority. The error’s core spins round the fact that accountants didn’t have any
way of valuing goodwill when I first worked at one of the big 5 global consultants in the 1980s, and then defined goodwill
wrongly. Monopolizing this error was aided and abetted by professors who believed that defensive strategy is smart whereas
it’s the least innovative (and most value destructing) ideology ever to have been examined on.
Goodwill is correctly defined when governance
of a company transparently builds multi-win models of trust-flow between all whose futures are impacted by the company. Instead
today’s global accountants compute scores that actually go up the more of a multi-lose model is built until trust in
the whole thing (whether it’s a bank or anything else) bursts. Hundreds of multibillion dollar have burst almost overnight
and its always our children that pick up the tabs. And yet the problem is far worse than individual corporate failures as
we can see when a virus from Manhattan’s Wall Street simultaneously destroys trust in banking systems in over 50 countries
around the world
The good news is: change the world’s greatest maths error and we parents
may be just-in-time to get back to helping youth to create jobs and renew communal sustainability now that we have millions
times more powerful technology to communicate around. Moreover, when microcreditsummit
2010s Microceonomics Survey- Youth’s 30 most exciting
You are invited to help continuously improve this survey at www.worldeconomist.net
Two types of improvement are
identifying an exciting project we didn’t know about
helping re-map the structure that helps celebrate connectivity
between such basic human rights areas of banking, health, education, water, food, energy, homes and what makes the 2010s the
most exciting time to be alive.
Today’s information technologies are more than a million
times more powerful collaboratively than the 1960s – if we chose to invest youth’s productivity in evolutionary
fit millennium goals then the race to poverty museums everywhere can be far more exciting than the 1960s race to the moon
One behavioural matter involves how microeconomics is used to condition mindsets, as well as lead decision-making.
We defer to Adam Smith whose purpose integrated hi-trust mediating as well as mapping multi-win valuation models that help
leaders and societies communally invest in next generation’s productivity and sustainability out of every community.
If you read the 1943 centenary biography of The Economist (1843-1943) you will see a century-long journal
of this purpose – one which along the way intervened so that the English Constitution was transformed beyond centre
of slavemaking and colonization to mediating commonwealth. On reading this book, my father (Norman Macrae’s) 67
years of celebrating investigations of economics changed the journal to the world’s favourite newspaper – offering
scripts for debating what to empower the next generation to action. By 1984, he was developing a microeconomics quiz of how
the first internet generation could transform the world if only those who owned the world’s most productive assets openly
participated in funding youth’s most productive futures. By 2010, he saw the most valuable social business media ion
the world as being that informally linked in by those who propagated the exciting goals that microcreditsummit planted from
its 1997 origin. He died a quarter before these videos www.grameeneconomics.com of two thirds of US Congress ;positively debating microcreditsummit’s
vision as you can see from the youtubes featured.
You can now read
over 40 surveys
by the microeconomist at The Economist who explained why macroeconomists were youth's worst nightmare and whose work
from 1972 clarified what sort of entrepreneurial revolutionaries
are needed if global financial collapse is not to be the outcome of the net generation
2011 Action Project - help us link 100 most entrepreneurial revolution writings of Norman macrae's life
and identify who wants to update one of these in new journal of social business
|RSVP email@example.com help us make links to 100 most entrepreneurial
revolutionary articles or nation's future economics scripts The Economist's Unacknowledged Giant Norman Macrae ever wrote 0 1984 the internet generation can be 10 times more productive : their most exciting decade 2010s depends on doubling knowledge around ending poverty
first 1 2008 consider bangladesh 2
1962 consider japan 3 1975 consider
asian pacific www century ->4 1975 americas 3rd century - Time review 5 1976 entrepreneurial revolution 6 1982 intrapreneurial now 7 1984 healtchare is compounding bust futures everywhere
8 every place's safest future for innovative youth and sustainable families is to have government controling
under 25% of how peoples earnings are spent http://oxbridge.tv/ 9 1972 - from 2012 global financial system will serially implode unless
we have redesigned a segment of sustainable capital markets being thoise that invest in every nations youths jobs
and what the net generation vote for as the next decades most heroic goals 10 the view from messina is the EU is
worth co-creating if only to end europe as epicentre iof world war http://www.youtube.com/watch?v=BU1qSQzTN7k 11 prince
charles in his be-fated japan tour |
Time review of dads 1975 survey in The Economist: America's future needs fewer clams more growth http://www.time.com/time/magazine/article/0,9171,913672-1,00.html
In the wake of the familiar crises of Viet Nam, Watergate and inflationary recession, can the American experiment
endure and flourish in its third century? This vexing question is tackled in special reports just published by two thoughtful
periodicals, the U.S. quarterly the Public Interest and the British weekly the Economist. Both journals raise fresh and unsettling
questions about the limitations of American democracy and freedom. However, in their prognoses for the next 100 years, they
diverge: the Public Interest has a generally pessimistic forecast for an America that thinks small and governs modestly; the
Economist foresees a country that can transcend its limits and grows wealthier.
to page 3 and 4 of article on survey of dads begfore his survey of asia pacific century
At the threshold of its third century, America is afflicted by a "drift from dynamism," which
threatens to allow the nation's global leadership to slip into "less sophisticated hands, at a perilous moment."
So concludes the Economist's deputy editor, Norman Macrae. A longtime expert on world economics and political affairs, Macrae,
52, first gained attention in the U.S. in 1969 by writing a penetrating survey on the American dilemmas of race and poverty.
Now he has produced a provocative if discursive report suggesting that the U.S. may be at the close of its industrial empire.
He argues persuasively that the U.S. can no longer hold onto its economic might unless it immediately undertakes a major new
drive for industrial growth.
America, which has held hegemony over the world from
1876 to 1975, may be losing its global influence for the same reason that British industry, dominant in the world from 1776
to 1876, decayed. The threat comes from "industrophobia"—the mood among intellectuals, ecologists, students
and others from the educated and monied classes, which view business as vulgar and dangerous. On U.S. campuses, he writes,
an "antigrowth cult is being taught to a generation of idealistic kids as if it was high moral philosophy or even a religion."
He scathingly criticizes these groups for delaying construction of the Alaskan pipeline.
The slowdown retarded U.S. economic growth and helped the Arab-dominated OPEC oil cartel grossly inflate oil prices and expand
its powers. Among the consequences: "The unemployment of black teen-agers in New York City has been pushed up -
every extra percent this goes up puts tens of thousands more brown men in Bangladesh, and several hundred
thousand Israeli families in greater danger."
Macrae is also angry about
American industry. The growth of U.S. output per man-hour in manufacturing in the past 25 years has fallen behind that of
other industrial nations because of a slowdown of U.S. investment in new technology's job creation capability. American businessmen,
like those in Britain, have succumbed to the rule of corporate bureaucrats. The spirit of entrepreneurship is broken.
Yet Macrae has great faith in America's potential to lead the world to vast new wealth.
Indeed, he harbors few of the conventional worries that the world is running out of resources. He does not think, for example,
that there will be an energy scarcity; alternative sources —nuclear, solar, geothermal, and others —will supply
man's needs. Nor does he expect a food crisis, because land can be farmed more efficiently now through new scientific methods
and the "green revolution" can be extended to most arable land. He downplays the famous "population explosion,"
claiming that the world's population growth has probably already dropped to 1.7% a year, which is the target of the United
Nations Secretariat for 1985.
perils in America's future will arise out of the modern offsprings of progress, claims Macrae. The most frightening possibility
is the rapid spread of atomic weapons into the hands of global terrorists. The major industrial countries must meet this predicament
by improving the living standards of the poorer nations, thereby increasing the commitment of all human beings to maintaining
an unwarlike status quo.
Modern Molds. For the U.S. to reassert its economic primacy
in its third century, argues Macrae, the nation will have to go back to its "longstanding, history-given, go-getting"
economic pragmatism. He calls for a return to the old incentive-filled free-market philosophy, but in modern molds. Americans,
he contends, must restructure their private companies and redesign their governmental bodies in order to free themselves from
the bureaucratic shackles that now stifle their growth. They must also broaden the types of community living in the nation
to include choices on the political right and left—meaning new concepts like puritan towns, local governments run on
contract by private businesses, and towns that emphasize full individual participation.
The prototype for new private corporations may be "confederations of entrepreneurs." Individual entrepreneurs
within a single corporation, he predicts, may soon be given even greater independence to run various departments in the company
or set up competitive ones. Within the immense federal and state governments, Macrae proposes a new form of market competition
called "performance contracts." By this method, citizens will vote regularly for the private contractors—garbage
collectors, transit companies and sewage disposal firms—that best deliver the services.
An unapologetic growth advocate, Macrae warns that America must crusade for economic expansion—by investing more,
loosening environmental restrictions and breaking bureaucracies. If the world's richest nation fails, he says, the consequence
may be that "half the world will remain hungry, and that half-world may blow us up."
Your City Publish a Special Issue of Yunus Journal of Social Business? When would be most exciting 2010s moment for your world
Help us map: Is your place replicating an economic system Adam Smith would celebrate?
Net Gen's Exciting 2010s
brings back Joy of Productivity to Economics- monthly nominations welcome firstname.lastname@example.org
|.||RSVP email@example.com if you are connecting knowledge-action-doubling projects around world’s most economical economists – eg journal
of pro-youth economics – part 1 : 1843-1988; part 2: 2011 on; publisher of intercapital youth ambassadors celebration
leaflets 2010 on ; peoples bbc & dd world service target 2012|
Global June 2010 The Economist debrief
The Unacknowledged Giant
Glasgow July 2010 : 25 Scots & Internationalists
debrief Yunus on Interdependence day
|Wash DC September 010 videos
of congress votes 1 2 3 ; discussions of world's most daring nations A B C || |
Dhaka oct2010 debrief of dr yunus-
norman macrae estate $300K sb loans...
London Saint James Nov 2010 debrief
"Consider Bangladesh" with
Boardroom of The Economist
Nairobi Kenya & Trenton NJ December 2010 Debrief of Consider
with Ingrid Munro and Sam Daley-Harris
YUNUS.................................................................. The Economist with the
most exciting vision of what youth can network in 2010s is the economist the whole world needs to celebrate most: listen to
What will happen to nations - and indeed any community - which do not practice the main purpose
of economics as being exponentially regenerating? What is needed is bold investment in youth and youth's goals,
not the endless political bickering at the top of government that causes disinvestment in youth's future
If you look at when Yunus talks to national governments (relevant in USA before
and after he testifies to congress in Spring 2011 www.grameeneconomics.net )
he talks to india about union of Asian nations-
when he considered running for Bangladeshi presidency he came up with fine ideas kickstarting an amazing orbit : how bangladesh could collaborate in networking sustainability community
laborartories for poor half of india and china that would otherwise come last in their countries national strategies
His national strategy also inspires
wonderful ideas such as how to unite everyone in the greatest infrastructure project yet put into poor publics
ownership - Cox's Bazar (something 10 times more interesting to the region than the way singapore's national strategy was
sky & tele-ported from the 70s
His influence in developing Bangladesh has compounded over a third of a century
when his 1976 life changing wish to contribute to most vital services to the world's newest and poorest
100+ millions nation started with the goal of ending famine and then of ending poverty
compare this with my father's youth living in stalin's moscow seeing local friends at the embassy disappearing or
spending a summer at the adriatic port which was the last used by jews to flee hitler's europe, and navigating RAF planes
out of modern-day bangladesh as teenager before being the last youth lectured on economics by keynes at cambridge -
it was parts of the action learning needed to question convention wisdoms' blunders not to perpetrate the
- which is the enrepreneurial revolution role I believe journalists of economics can mutliply wordlwide value
(and job creation) investing across generations and through cultures interfacing of community and innovation
Everyone gains by knowing of the favourite theme of Milton
Keynes: “Increasingly the world is ruled only by economics. The danger arises when practical men, believing themselves
exempt from intellectual influence, are in fact slaves of historic rules which changing circumstances have
rendered defunct" – Norman Macrae (Sunshades in October, 1963)
the only journalist at the birth of the European Union at Messina; being the first NW journalist to consider Japan's strategy
in 1962 or celbrate Asian Pacific worldwide century in 1975; being the first journalist to nominate critical globalistion
debates on what to do expoenentially ahead of time: if you knew Berlin wall would fall in 1988 or the internet was coming
making peoples virtual lives and real lives productive multiplers of each other (by which we mean if you only do one of these
2 productibities you have zero productivity - ie the worst poverty trap of 21st ); being st james' s
first journalist of consider bangladesh
so my guess is that the free trade of worldwide nations if the 21st advances the human lot won't really involve
nations any more than alice in wonderland involved cheshire cats; it will go back to the 2 million global village hubs
In praise of schumpeter
The Economist runs several opinion columns whose names reflect their topic:
Schumpeter (Business) — named for the economist Joseph Schumpeter, this column was established on September 2009 and is written by Adrian Wooldridge. Bagehot (Britain) — named for Walter Bagehot
more on Schumpeter
11 June 2011 - Norman Macrae probably Europe's
senior economist dies nearing 87
this the bio the independent wrote on norman's retirement after 40 years at The
Economist in 1989
Norman was of the scottish entrepreneurial school - adam smith, james wilson ..; he repeatedly argued
that microeconomists needed to collaborate to overthrow the excesses of macroeconomists - help us co-edit this presentation;
his last article was written for Muhammad Yunus late 2009- probably the greatest entrepreneur of our epoch and the one most
likely to cheerlead 2010s as sustainability decade- see norman's 1984 on the 2 oppsoite endings that the netgen would spin; the Centre for Development has propsed that a wee foundation and archives rembering Noram be colected by universities in Glasgow -rsvp to them if you
chris.macrae @yahoo.co.uk wimbledon 12 June 2010
left is a concept logo for the Global and London Institutes of Social Business first annual fieldbook of cases
sponsored by lead networkers of YunusBook.com and London Informal welcoming panels of Yunus & Sustainability Olympics -your comments are welcomed chris.macrae @yahoo.co.uk washington DC 301 881 1655
source property rights asserted - city of Dhaka - en route to every sustainability capital and collaboration entrepreneur (coined 1976, Norman Macrae, then Deputy Editor of The Economist 1 2)
list system dynamics of goodwill, transparency, sustainability
multiplies not adds. Opportunity : the more positive trust of ever stakeholder the more communal surplus can be generated.
Risk : lose trust absolutely of any one group and zeroisation.
There are really only 2 energy relationship
system that organization designs spiral:
trust connects joy, courage, love (no fear) of purpose,
stimulating progress whole preserving core, openness. This flow is only possible if in every interaction of the system's potential
conflicts are hunted out and resolved; and there are no boxes separating vital information flows
connects despair, loss of hope, pessimism, passiveneness, lack of indomitable spirit need to help find solutions out of traps
for others as well as self,
However we must permit some gateway emotions which different culture may
name differently: anger if its not turned to hatred or aggression is what causes people to stand up and protect those with
the least and demand changes to laws and constitutions which may once have been perfectly right but are no longer valid. If
you see a child abused (physically or structurally) you should feel anger and convert it into leadership presence and interactive
Know the 3 C’s which open space innovation facilitators assume are
vital. Confusion is when top-down people insist one set of rules is 100% perfect,: this prevents seeing when the outside environment
has changed (or localities are more diverse than the top’s standard) and causes conflicts to enter into a once positively
energized system; conflicts once entered spread like wildfire producing a chaotic system ; by the time a system is chaotic
it is viciously spiraling reduction of goodwill
Integration in maths and in nature is a bottom-up mapping
process; ultimately a system that is governed only top-down is designed to collapse or worlds that are not deeply democratic
to trap people in poverty or all the risk the world can outsource.
On networks the biggest risks lurk and then compound at boundaries of partnering systems
rule if transparency systems is always demand openness of information unless you can prove that temporarily closed information
is needed. For example, If good are to defeat ill then the good cannot give their plans away to ill.
Most 20th century marketing and strategy involved closed unless we can prove we need to be open. If an
innovating involves a race to get patents that will then close out others, closed is understandable. However that doesn’t
means that patents have a place in the open source world that can multiply the value of knowledge. The father of computing
von neumann assumed that most patents would only last 3 months in an open networking age. His reasoning if you have true purpose
and 3 months lead across networks of partners in your purpose, that is something competitors cannot catch up with at lest
mot while your network keeps connecting unique purpose
Typically one non sustainable system in a network of
partners is the greatest risk to the whole network collapsing. This means that sustainable partners help SWOT each other-
requiring a higher order of transparency than all 20th century top-down professions ruled over
Nations are in 21st century one of the global markets of places. To keep increasing economic capacity,
their boundaries will need even more transparency than that we may demand of corporations or other systems
Transparency of job creating empower by bottom up systems is far more important than any macroeconomic plan a place
may forge. More accurately , macroeconomic plans will spin ever more destruction (inconvenenint truth instead of holistic
truth) unless integrated micro up.
Sustainability win-win-win (compound exponentials)
In networked age it is possible not only to go above zero-sum (eg provide more value when both customer and supplier
are gaining from each other) but to value multiply. Compound exponentials are the consequence of systemic value multiplying
– they spin one of tow ways sustainably up, or crashing down.
When value dynamics of
an organisation is to do with people’s service stamina and knowledge transfers, value multiplying auditing needs as
much cyclical focus as any other audit including cash-flow. When we network systems together this becomes even more crucial.
Typically a single organization spins 10-win or 10-lose through 5 interconnected double lops of productivities and demands
: employee, owners, customers, societies, the world’s requirement that a global market values sustainability by being
responsible only for its greatest compound risks. When you fully interface 2 such system, the dynamic tends
to 100-win or 100lose. We have seen multiple occasions of rapid networking collapse in the 00’s
the limit globalization will design one of 2 endgames;
that where bad will networks
win (the big brother scenario) which means the top will serially compound crashes onto local communities until people at those
localities are not sustainable
that where goodwill multiplying networks win
It was estimated in 1984 that:
The difference between globalizing round goodwill designs versus badwill designs by 2024 has consequence if 10 times
more or less health and wealth to share around
It was modeled that micro up integration is the style
of governance that goodwill multi=lying systems use to integrate every locality communally into global
was identified in 1970s by Schumpeter (and probably the 1930s by the duo of Gandhi and Einstein) that the overarching goal
of the networking generation that will enable goodwill networks to overcome badwill ones is uniting the race to end poverty
All the scenarios on which the 1984 model were built exist to be openly questioned and SWOTted by context.. On the
timelines used we are way behind the curve of goodwill winning out over badwill. You can take simple but tragic examples of
this . In recent wars badwill payers have been repeatedly more effective at networking even though they had 10 to 100 ties
less resources than the supposed good powers.
|.Norman Macrae must be turning in his grave, except I think he's still alive||.yes his friends & family hope so: 1 2- Norman's pick of microeconomists worth trusting the world to|
|.Keynes was probably only half right when he said increasingly only economics theory rules the world||.Nature's
system designss are double-looped not top-down; the latter's globalisations can be gamed as wall street's ruinous first
decade of C21 showed us; to be ruled just by one number (of how much has one most powerful side taken from everyne
else) is the perfect maths for compounding exponential destruction -not what sustainability investment leaders should be benchmarking|
|.The value of the brand is in integrity of its trust connections||.20th C maths -from Einstein to
Von-Neumann shows that above zero-sum value multiplies by integating micro up contexts and interfacing
systems into collaboration networks|
chris.macrae @yahoo.co.uk washington DC 301 881 1655
A curious history of microeconomics
1700-2000 by half century
1700 one of the first banking scams of modern times occurred. Consequence: the people of Scotland went bust and were subjected
to hostile takeover by England.
Around 1750 Adam Smith started writing up microeconomics with the intent that no nation
of the future should suffer Scotland's fate. In 2008, the 250th anniversary of his book on moral sentiments was celebrated
at Glasgow University with Nobel Laureate Muhammad Yunus keynoting. Next Adam wrote up other community transparent
frameworks including "free markets" and was joined by some French alumni who celebrated the idea that man could
be productively free once assets were transferred from those who were chaining the people to poverty. The word entrepreneur
By the early 1800s , Industrial Revolution was spinning and the English also sent up their tax accountants
to Scottish landowners with the rules that sheep make more profit each 90 days than people. More than half of all Scots emigrated
becoming one of the first nations of worldwide peoples. To try to reconcile the English colonial virus, entrepreneur Scot
James Wilson came down from Hawick to London; booted out vetsed interest MPs from parliament and founded The Economist in
1843 to be a severe and transparent test of how ledaership decision-maing was made.
In the 1860s, James died before
his time less than a year into a project based in Calcutta where he was trying to reform Raj Economics. His son-in-law Bagehot
took up the challenge of reforming the English Constitution. This seeded the beginning of the end of English superpower as
well as the start up of an initially more benign American superpower
1900s The Industrial collonisation mischiefous
need for other lands' resources needed 2 European wars to finally put it to rest, and on both sides of The Atlantic this
was a depressing half century but one that emerged with some rich nations in tact and with a new socio-economic phenomenon
taking over democracy's social and economic dialogues: tv broadcast media.
By 1976 it was clear to entrepreneurial revolutionaries
http://erworld.tv/ that huge advertising buidgets were spinning a new polution to Adam's true and fair integration of free markets. Moreover
technology was in sight of connecting one generation locally to globally through networks. It was predicted that the coming
wars between micropeconomics and macroeconomics would now determine the sustainability not just of separate nations but of
the whole planet as well as whether peoples compounded 10 times more economics systems linked to ending poverty. Alternatively,
the depressing system endgame would hastily pursue an era of Big Brother crashes. If you are reading this towards the
end of decade 1 of 21st C , you may next want to see the invitation on the right to the most exciting game humanity has ever
conceived or played.
you like to join us for the fourth quarter of the most exciting game on earth?
The game has
no balls but each of the quarters takes courage and stamina being about an eight of a century long. The game is ending poverty
and it involves a survey in which we collaboratively check results of 2 listings. The first list comprises a top 100 whose
items are either productive jobs that the world’s poorest can learn to sustainably generate income and/or
innovations that repair the broken system that compounded local poverty in the first instance. The second listing provides
benchmarks to places where you can see the first listing items and how to replicate them.
game began three eights of a century ago with the birth of the world’s poorest nation. Miraculously the peoples gravitated
around 2 of the most trustworthy microeconomists who focused on three primary sources of joyous productive agency during the
first quarter: village nurses, teachers and bankers. The latter may seem to richer nations to be a most
curious breed. They were transparently dedicated to serving 1) investments in the people’s productivity, 2) maintaining
safe deposit accounts, 3) compounding sustainability investments. They don’t ask for personal bonuses. Today nearly
half a million of these microprofessionals are passionate about their community service and proud that as many as 20 million
female microentrpreneurs have blossomed.
During the second eighth of the century villages all
over the nation made progress on the top 100 listings. And in the third quarter they were linked in by the internet so they
could enjoy sharing each other’s action learnings and open source them worldwide. Now we have several
millioon microprofessionals around the world and over 100 million of the very poorest female heads of household are sustainably
transforming what used to be the poorest and most structurally deprived places to be born or raised. By any human measure
this is generating the most exciting goals any millennium or twelve year challenge has identified.
you want to join in start by helping us progress the attached 100 listings. Every four months people will
meet to improve its details and links. Join us or send us a delegate from your social network or file an entry so we can connect
all the game’s greatest news. The worldwide roadshow starts in Dhaka on June 29, aims to be in Berlin in November and
Kenya in March 2010, and go where young people in particular are most excited by the game until micro economics communal sense
sustains our planet and poverty museums connect the worldwide.
One view (more here) subscribed to by many Scots, French,
Indians and Bangladeshi is that the practices economics and entrepreneurship were open planned since 1700 with the goal of
ending poverty. But each time local peoples integrated some progress, more macro or global systems took over the media and
other political ways that learning, communications and measures were powered over by colonial and ruling classes. This resulted
in nations crashing and wars being fought. You night want to question the legitimacy of this view because if it is correct
its logics would say that now this generation is becoming more globally connected than locally separated we are breaching
ma’s final deadline on all sustainability challenges. According to the maps of worldwide sustainability investment racing
to compound the end of poverty is the same game as preventing those who in richer places from crashing their systems into
Blog extracts; 2
Nobel Prize winners worth trusting your future to : Krugman and Yunus
Financial Times regrets the only journalist economists
to have provided any relevant alerts to wall street meltdown were:...
How can people save themselves from banks
and macroeconom ists? Please send ideas for our (b)log of economists and others who monoploise rules that are worth one second
of a sustainability's MBA's time while learning to communalise sustainabiluty's deep contextual flows by doing.
Washington DC bureau tel 301 881 1655 info@w orldcitizen.tv
- mapping the choice of opposite exponential outcomes of globization since 1984
|| old web
|| discuss which members of congress may get micro in time to hekp Obama Yes We Can || How come that Einstein advised all human futures need ever
more micro metrics but 2000s economists went macro
Right now we
are interested in helping facilitate what may be the impossible -name one of the 10 trillion dollar
global markets with most consequence (exponentially
up or down) on future of humanity - eg core banks by which we mean banks who are central to financial functions of nations
or world markets- which 10 people - Dr Yunus
? Obama? PM Gordon Brown? Mandela (or african elder), Manmohan Singh , S.American eg Jorge Quiroga former president of
Bolivia, Larry Summers? Geithner? Youth representative? the central banker of Estonia, who of China? - would
you most like to huddle in a debate of what would be the most sustainable design of this future market and once they had a
conversation starter open sourced this for debate everywhere
For most of the planet’s people, microcreditsummit 1 2 are the most successful knowledge sharing alumni which network economy has so far. What would like
to see as the next 10 MICROsummits ?
Suggestions from elsewhere
Wednesday, November 24, 2010
NM1 There cannot be a greater job creation stiumulus than realising SB stockmarkets
9:02 am est
Are Nobel Economists economical? nd other forbidden questions of the joy of economics
8:27 am est
norman macrae party speech leaving The Economist (1988) after 40 years:in the 1970s the Swedish Nobel prize committee had been getting into controversy with its choices so around 1977
it thought it would poll about 50 university business schools. This was fine except for the univesrity in Japan which
doesnt have business schools. This university felt it had to nominate a foreigner who had written someting about entrepreneurship
that had been translated into Japanese... and so it was that Japanese univesrity which I had never heard of nominated
me for a Nobel. Now alas of the 4 million people then in the world, I expect there were only two who thought this was
a sensible idea. One was me; the other was presumably the vice chancellor of the quite unpronouncable Japanese university.
Still I spent the next few months eagerly accepting invitations to lecture in sweden and on the day of the announcement hung
around our room with the tape machine looking nonchalant with a transistor in my ear. In the event they gave the prize
to some American called Apfelstrudel or something who had invented business schools or written a very succesful book on management
So I thought, ah well, perhsps
next year if I am very tactful. Then that Wednesday The Economist proofs with a note on the Nobel came over my desk.
The note said: The Nobel Committee for Economics has always been pretty dumb, but this year it doesnt realise that
the diference between economics and so-called management science is:
A) Kick in the groin
B) Kick in the
C) Kick in the groin & left uppercut
And anyway if they pick anybody to pick Apfelstrudel is
another kick in the groin.
So I thought oh dear they will think I wrote this with the sourest of grapes. Then I
rang Sarah Hogg and said "about the Nobel piece - and she interjected yes, you must promise not to change a word of it.
Its by our new economics corerspondent. and he's by far the brightest chap we have ever had, so even if you disagree
with it you must promise not to change a word. He's by far our brightest chap. You understand. So I said, as one always
did, Yes Sarah. And now the punchline. I suspect this was just about the first thing young Rupert (Pennant-Rhea) ever wrote
on the paper. And I've never quite forgiven him.
Monday, November 8, 2010
8:44 pm est
In praise of schumpeter
The Economist runs several opinion columns whose names reflect their topic:Schumpeter
) — named for the economist Joseph Schumpeter
, this column was established on September 2009 and is written by Adrian Wooldridge
- Gentlemen, a depression is for capitalism like a good, cold douche. (To economics students, recorded by
RL Heilbroner, The Embarrassment of Economics, 1996)
- Innovation is the market introduction of a technical or organisational novelty, not just its invention. (Theorie
der wirtschaftlichen Entwicklung, 1911)
- I felt it my duty to take,and to inflict upon the reader, considerable trouble in
order to lead up effectively to my paradoxical conclusion: capitalism is being killed by its achievements.
- However, if Marx had not been more than a purveyor of phraseology, he would be dead by now.
and prophets do not usually excel in professional learning, and their originality, if any, is often due precisely to the fact
that they do not.
- Part I, Chapter III, pg.21
- As a matter of fact, capitalist economy is
not and cannot be stationary. Nor is it merely expanding in a steady manner. It is incessantly being revolutionized
from within by new enterprise, i.e., by the intrusion of new commodities or new methods of production or new commercial
opportunities into the industrial structure as it exists at any moment.
- Part I, Chapter III, pg.31
one thing, to predict the advent of big business was considering the conditions of Marx's day an achievement in itself.
- Part I, Chapter III, pg.34
- The opening up of new markets, foreign
or domestic, and the organizational development from the craft shop and factory to such concerns as U. S. Steel illustrate the same process of industrial mutation-if I may use that biological term-that incessantly revolutionizes the
economic structure from within, incessantly destroying the old one, incessantly creating a new one. This
process of Creative Destruction is the essential fact about capitalism.
- Part II, Chapter VII, pg.83
emerge in the process of creative destruction in which many firms may have to perish that nevertheless would be able to live on vigorously and usefully if they
could weather a particular storm.
- Part II, Chapter VIII, pg.90
- Nothing is so retentive
as a nation's memory.
- Part II, Chapter VIII, pg.100
- Want and effective demand are not the same thing. If they were, the poorest nations would be the ones to display the most vigorous demand.
- Part II, Chapter X, pg.114
- It is quite possible that future generations
will look upon arguments about the inferiority of the socialist plan as we look upon Adam Smith's argument about joint stock companies which, also, were simply false.
- Part III, Chapter XVII, pg.196
capitalist process shapes things and souls for socialism.
- Part III, Chapter XIX, Section I, pg.220
- Nothing is so treacherous as
- Part IV, Chapter XX, Section I, pg.235
- To realize the relative validity
of one's convictions and yet stand for them unflinchingly is what distinguishes a civilized man from a barbarian.
- Part IV, Chapter XX, Section III, pg.243
- In economic life competition is never completely lacking, but hardly ever is it perfect.
- Part IV, Chapter XXII, pg 271
trouble with Russia is not that she is socialist but that she is Russia.
- Part V, Chapter XXVIII, pg.404
- This civilization is rapidly passing away, however. Let us rejoice or else lament the fact as much as everyone of us likes; but do not let
us shut our eyes to it.
- The March into Socialism, pg.419
.written spring 2008 after hosting 30
alumni St James Lunch Feb 15 with Dr Yunus as Guest of Honour
THE IMPORTANCE OF DR YUNUS
The Nobel Peace Prize for 2006 was controversially awarded in Oslo to
a "banker for the poor" in once basket case Bangladesh. Since the microcredit system pioneered by this Doctor Muhammad
Yunus really has raised record millions of Bangladeshi women from the world’s direst poverty, Yunus was greeted on his
recent visit to London largely by the misunderstanding Left. But as an octogenarian Thatcherite, I also
had lunch with him and thrill fully to his stated aim to "harness the powers of the free market to solve the problems
of poverty", and his brave belief that he can "do exactly that". This apparent appearance of a viable system
of banking for the poor has important implications we had better start by examining how microcredit almost accidentally came
START IN A STARVING VILLAGE
Bangladeshi’s terrible famine year of 1974, Dr Yunus ( who had attained his doctorate in economics in a fairly free
market American university) was back at his 1940 birthplace of Chittagong, Professor of Economics at the
university there. He took a field party of his students to one of the famine threatened villages. They analysed that all 42
of the village’s small businesses (tiny farm plots and retail market stalls) was indeed going bust unless they could
borrow a ridiculously tiny total $27 on reasonable terms.
First thought was to give the $27 as charity. But Yunus lectured that a social business
dollar that had to be paid back from careful use in an income generating activity, was much more effective than a charity
dollar which might be used only once and frittered away. All of those first 42 loans were fully repaid, and lent back, and
after 9 years further experiments Yunus in 1983 founded his Grameen (which means Village) Bank. Its priority was to make loans
that were desperately needed by the poor instead of the usual banking priority to make the safest loans to the rich who could
provide collateral against what they happened to want to borrow.
In the next 23 years, Grameen provided $6 billion of loans to poor people with an
astonishing 99% repayment rate. In 2006, it had seven million borrowing customers, 97% of them women (who tend to be the poorer
sex in rural Islamic societies) in 73000 villages of Bangladesh. Microcredit had by then reached 80% of Bangladeshi’s poorest
rural families and over half of Grameen’s own borrowers had risen above the absolute poverty line.
When a Grameen bank manager goes to a new village, he has entrepreneurially
to search for poor but viable borrowers . He earns a star if he achieves 100% repayment of loans, and another star if he attains
achievement of the 16 guarantees that all customers are asked to pledge, ranging from intensive vegetable growing through
attendance of all children at school, to abolition of dowries. A branch with five stars would oftenb transfer to ownership
by the poor women themselves. A branch with no stars would be in danger of closing, so borrowers tend to rally round with
suggestions, such as which unreliable repayers to exclude.
An early income generator was the profession of telephone ladies. They borrowed
enough to buy a cheap mobile phone from a Grameen subsidiary. They world draw fees for phoning to see if more profitable prices
for crops were available in a neighbouring village, and from anybody who wanted to hire the phone to contact the outside world.
This is a job that could only become important in a microcredit setting; the owner of a mobile phone in richer suburbia would
not find many customers to hire her set. Village garment-makers were soon exporting clothes to far countries which made free
trade by the importing countries important. One special desire of Yunus was to improve the nutrition of poor children in the
villages of Bangladesh, and he formed a social business with the large French food multinational called
Danone. Grameen-Danone test marketed to find what sorts of fortified yogurt Bangladeshi children would like. Although Danone
at first wanted large plants with refrigerated systems, Grameen won the debate to make then small plants who bought local
milk and very cheap local distributors who knew which families had children who might buy the cheap yogurt fresh. Danone had
to agree not to pay any dividend from the sales of the yogurt in Bangladesh so as to keep the price cheap at
a few US cents per cup, but its $1 million investment remains returnable and it has learnt a lot about sales of a new product
in poor countries.
Will such Social Businesses spread as far as Yunus hopes? I doubt this. Great leaps like Microsoft’s invention
of good software are often made by small but initially hugely profit making small businesses. But it is easy to see a Grameen-Microsoft
social business providing software suitable for poor countries where even adults are often illiterate. My view is that the
Grameen experiment may prove to be most important for what might be called its macroeconomic impact. When more formal banking
for the rich is intermittently in crisis, this may be happening now. In this 2008, conventional bankers to the rich have trotted
in panic behind the American giants who grossly mislent on subprime mortgages, and then sold these loans on in "securitised",
and exploding and even "derivitavised" packages to weaker funds and banks who have frantically tried to disguise
from their shareholders and from themselves how unmarketable and worthless some of these assets are. If all bank statements
in early 2008 had been utterly and appallingly honest, runs by depositors out of them could already have accelerated out of
control. Such banking crises are likely to recur before and after next January when a new American president takes office.
To judge from the protectionist economic nonsense at least two of the three candidates have talked in the primaries, a tyro
president would be quite liable to bumble such a crisis into an even a 1929-1933 type of world slump. Britons should remember
that our prime minister in 1929 was our last previous dire right wing Labour Scot, and that he had to coalesce in 1931 with
a Baldwin who was as deaf as today’s Cameron to why it is better to widen budget deficits in a slump.
A lesson in how to run village businesses and not to handle bank
crises comes also from Japan. When I wrote my first book on Japan’s economy nearly
50 years ago, Japan had about two dozen lightly taxed exporting multinationals who bought their components
marvellously cheaply. The car factories bought their ball bearings from tiny village firms, and the banks attached to Toyota
etc kept on lending even when some peasant’s first bearings did not past muster but gradually propelled him to work
with or under a brighter neighbouring peasant whose products did. That seemed inefficient to American experts and in the early
1960’s I had a translated debate on Tokyo television with an American who said that such slack banking
would ruin the country. I rejoiced as Japan then quintupled its living standards in the next twenty years
and its banks became temporarily the most powerful and prosperous in the world. The crash came when in the late 1980s American
business schools convinced Japanese factories that components must be bought just-in-time. The big banks turned to financing
suppliers who could do this (which were not those striving to be cheapest). Banks lent mainly to new firms who could provide
collateral which meant to richer ones. Once they were lending mainly to the rich they blew up such a bubble that the nearest
golf course to Tokyo was said to have a greater land value than the whole state of California.
When this bubble burst, all the banks had bad debts, which the government helped them to hide so Japanese living standards
stop rising fast since circa 1989. This is the threat to the whole rich world today.