September 2011

There are certain conditions that communities seem to meet when they work effectively. Work in this area won Elinor Ostrom the 2009 Nobel Prize in economics for showing that groups of people are capable of managing common resources when certain conditions are met.

These conditions are:

1. The group and its purpose are clearly defined
2. The group have the authority to manage its affairs
3. Costs and benefits are equally shared
4. Decision-making is by consensus
5. Misconduct is monitored
6. Sanctions start out mild and escalate only as needed
7. Conflict resolution is fast and fair
8. The relationship of the group with others is appropriately structured.

This summary is taken from a New Scientist article (August 27th 2011). You can see the press conference featuring Elinor Ostrom here. 

To be read in conjunction with the worst case scenario.

The best possible scenario is of course that all the projections are false. Populations do not grow. People do save for retirement. There will be no energy, water or food scarcity. The economy recovers stability and grows. There are no new demands on the health service. Climate change turns out to be an exaggerated illusion.

Failing that of course, a shared understanding of these issues emerges. Brave politicians sketch out a vision of what life could be like in 20 or 30 years if we do nothing. They define an alternative vision of a new world that actively addresses these issues. Their political success lights the blue touch paper on a global political movement.

It becomes politically acceptable to define targets to achieve real social change – to seek to eliminate poverty, eliminate avoidable personal ill health and to encourage sustainable consumption. The aim is to protect and improve lifestyles. This is not a time of sack cloth but simply a change – a different way of thinking and living.

All the strategies that can be used to achieve real change are brought into play. If we need regulation, legislation or new taxes they are used. They may not be necessary but the objective has priority not political prejudice. In fact, other more effective methods are actively encouraged. New collaborative forums are set up for businesses to grow markets in addressing these issues. The financial services sector co-ordinates action to help people save for the long term and to remove poverty because it is constraining market growth.

The energy sector collaborates to create a new, balanced and sustainable approach to the market. FMCG companies and retailers lead a global programme to collaborate on resource efficient product design. They actively encourage consumers to re-use products or share product use across communities. Across every sector new markets are identified that simultaneously address global problems and make money doing it. This doesn’t reduce competition. It just means long-term marketing becomes collaborative. The bigger the market, the better for all.

Many of the ideas and initiatives come from employees, communities and customers. There is a huge growth in informal collaborative action to achieve real change and to transform neighbourhoods. Local people have real power. 

In the state, the rule is freedom within a framework. Provided there is a shared focus on basic rights, responsibility and real long term change, government is light touch. It becomes a catalyst for informal power to the many. The few are free to innovate and reward themselves within a framework. They are constrained by regulation and legislation only if their actions are at the expense of others.

Public services are genuinely designed for citizens as customers. Politicians finally admit that the old health service principle of free for all at the point of use is not sustainable. A basic health service for all is provided. It is part funded by those who can pay for more. Education understands the learning style of each child and tailors learning to help them achieve their potential. 

There is massive innovation – dominated by informal networks. Underlying themes include local innovation to change communities, global communities of interest to achieve real social change and open innovation to create new products and services that improve lives. The next stage of shared human evolution has begun.