In the last two years
the world has seen an
intensification in the
search for sustainable
development and
socially responsible
business. A series
of events, from demonstrations
at the WTO meetings
in Seattle expressing
dissatisfaction with
the effects of economic
globalization, the terrorist
attacks on the WTC in
New York on “9-11”,
corporate financial
scandals such as Enron,
WorldCom and Ahold,
to the collapse of the
Argentinean economy
and the Internet bubble,
have extended this search
from western social
and environmental circles
to mainstream economic
and business circles
across the globe. According
to Hazel Henderson,
a leading thinker on
economics and development,
the traditional economics
profession is in a state
of crisis.
She writes:
“Now that globalization
of markets has followed
the erroneous dictates
of narrow and often
faulty economic paradigms
targeted toward per-capita
averaged GDP growth,
we are confronted with
their growing “externalities.”
These include the costs
in wider poverty gaps
and social exclusion,
but also in continued
erosion of non-money-based
local livelihoods and
cultures as well as
the extinction of other
species and ecosystem
disruption. We witnessed
such impoverishing
of millions in Thailand,
Indonesia and the other
“tiger economies” during
the Asian meltdown,
as well as in Russia,
Mexico, Brazil, and
Argentina. Too often,
luring people from their
traditional ways and
communities into monetarized
urban areas where
promises of “development”
and the advertised “good
life” has proved
unsustainable and led
to such human tragedies.
Today, with the global
sharing of experiences,
more pragmatic development
can be country-specific,
employing multiple strategies
more fitted to culture,
knowledge, geography,
ecological and social
assets.
‘Softer’ values
This criticism is recognized
by an increasing number
of mainstream economists,
who are “defecting” their
orthodoxies, such as Joseph
Stiglitz, Jeffrey Sachs,
Amartya Sen, George Soros,
and Paul Krugman to
cite those who are well
known. They are helping
expand the horizons of
the economics profession
toward a more modest,
inclusive and inter-disciplinary
stance. Leading universities
and institutions like
the
World Bank
are stepping up research
on alternative development
indicators, accounting
for ‘softer’ values such
as environment, social
values and
general
well being of the
society with a long term
time horizon. These efforts
reflect much of what the
notion of Gross National
Happiness is all about.
In response to the scandals
in corporate governance
and the increased call
for truly responsible
business leadership, the
western business community
is also exploring alternatives.
Corporate social responsibility,
corporate citizenship
and business ethics
feature the agenda of
business leaders today.
For example, in April
2002 leading business
people founded the
Spirit
in Business Network
(SiB) to discuss similar
issues of transforming
corporate capitalism into
a sustainable system which
incorporates material,
social, environmental
as well as spiritual values
in day-to-day business
practices, so as to turn
business into an agent
of world benefit.
SiB
is developing a set of
indicators that measure
companies’ ability to
contribute to these higher
goals.
Dialogue in new economic
design
In conclusion, one can
say that the entire fundament
of the mainstream western
development model, based
on capitalism and free-market
enterprise, is called
into question. The alternative
is far from clear.
How
to quantify and measure
these ‘softer’, intangible
values? How to design
an economic model based
on principles of life
and well being? More meetings
and research are needed.
The GIH Project aims to
connect and bring together
all those who have something
to offer to this dialogue.
