Si Economics Hub

We need very different approaches to economics and business to help us move beyond the linear paradigm that fails to capture the true value created and exchanged. This starts with systems thinking and understanding the economy as a complex adaptive system, but not end there. We need to over time have this feed through to creating full cost accounting systems for the economy and businesses. Our guides to complexity economics explore this theme: https://lnkd.in/dyuvFY_8

The resilience approach is about turning a crisis into an opportunity by seeing it as the potential to develop new capacity. For a resilient community, a change is a learning opportunity, for a fragile community change is a crisis to be avoided. This is the concept of “antifragility" - a term developed by Nassim Nicholas Taleb - which refers to a property of systems that increase in capability to thrive as a result of disturbance, mistakes, shocks, or failures. How might we develop economic systems that are both resilient and antifragile?

This graphic from Doughnut Economics Action Lab (DEAL) illustrates the importance of distributed networks of production and exchange as a new basis of economic organization. https://lnkd.in/dxzmcVn

Looking at and understanding the economy as a network is key to moving beyond an industrial age logic to economics and taking a more systems approach. This video from Si explains the idea of the "Networked Economy" https://lnkd.in/eEq2Aih9

Eric Beinhocker presents on "The economy as a complex and evolving system" https://lnkd.in/eqv9sTR6 He argues how decades of research and the 2008 financial crisis has exposed severe shortcomings in the orthodox neoclassical economic model and raised questions about policies and political ideologies that derive from that model. Eric makes the case that the economy is not the static equilibrium system of traditional theory but is in fact a “complex adaptive system”. He discusses what that perspective means and how such an understanding radically changes our notions of how the economy works and how it might be made to work better for more people. Eric also closes with some thoughts on implications of this perspective for politics, policy, and the future of capitalism.

Systems mapping has huge relevance and value for helping us to move away from equilibrium models and towards looking at the economy as a complex adaptive system. Learn more about system mapping on the Si website here: https://lnkd.in/e29cC6BC

Shifting away from a heavily analytical approach towards a systems thinking approach to economics based more on maps and network visualizations is an important change that needs to come about in our understanding of economies. Just one of the topics we are exploring in our hub: https://lnkd.in/eNgXfwnu

The guide, "Wellbeing Economy Policy Design Guide, How to design economic policies that put the wellbeing of people and the planet first" emphasizes that developing a Wellbeing Economy requires not only new policies but also a shift in how we relate to and govern the economy. The guide stresses the importance of meaningful participation and holistic thinking, with the aim of co-producing outcomes with communities and stakeholders. It acknowledges that this is a first iteration and invites ongoing collaboration to continue building the Wellbeing Economy. Source: https://is.gd/nPrrqe

The economy as a complex and evolving system: https://lnkd.in/eJPYtAXF This presentation by Eric Beinhocker makes the case that the economy is not the static equilibrium system of traditional theory but is in fact a “complex adaptive system”. He discusses what that perspective means and how such an understanding radically changes our notions of how the economy works and how it might be made to work better for more people. Eric also closes with some thoughts on implications of this perspective for politics, policy, and the future of capitalism.

Moving beyond our current industrial age paradigm to economics will require us to develop new full-cost accounting frameworks - to account for not just the intended consequence but also the negative externalities. Full cost account is just one of the topics we are exploring in our hub: https://lnkd.in/eNgXfwnu