Transitioning to Purpose-led Economy — Part 1
The recent lockdowns imposed by most governments around the world to their citizens were at first described as a great opportunity to pause and reflect. During that period, it appeared that the global economy really didn’t reward the care sector and amplifies how vital it is to have great healthcare systems and education systems: two tenets of any modern society.
The period was also a unique opportunity for nature to return where it had been driven out. Dolphins reappeared close to the French Riviera beaches in the Meditteranean Sea, the Venice lagoons became crystal clear, and clean air was back in many cities around the world.
For a while, we almost forgot that more than 8 million people die from Air pollution yearly.
For a while, we almost forgot that biodiversity is alarmingly in danger.
For a while, we almost forgot that 50% of wetlands area has been lost already
For a while, we almost forgot that half of the great barrier reef is dead.
For a while, we almost forgot that marine plastic pollution has increased 10 fold since 1980.
For a while, we almost forgot that more than 37,400 species are threatened with extinction including 41% of amphibians, 26% of mammals, 34% of conifers, 14% of birds and 36% of sharks & rays.
For a while, we almost forgot that so-called developed countries created a generation of workers made dependent on opioids, subject to burn-out when they are not struggling to find low-paid jobs highly demanding.
Let’s acknowledge it, our global economy far from being enlightening is broken: In Western companies, 87% of people are disengaged at work, Millenials stay only 2 years on average with one company, ‘burn out’ syndrome and related professional induced stress disorders cost €617B in Europe per year. At the same time, every tenth of a degree of temperature increase can potentially wipe out trillions of euros of assets and push several hundred million people into poverty.
However, it is also true that the world as a whole is improving: more and more people lifted out of poverty, the percentage of the world population becoming educated keeps growing rapidly and global awareness of social issues has never been so present. For instance, world hunger has reached its lowest point in 25 years, life expectancy has increased by 38% between 1960 and 2018, the percentage of the world’s population that is educated continues to grow rapidly, and global awareness of social issues has never been higher. I highly recommend Factfulness by the late Hans Rosling for those doubting.
How to explain so many improvements on one hand but so much social misery and a sick environment on the other hand?
The answer lies in the design of our current economy. This economy is fueled by growth measured by GDP which depends too heavily on the population consumption as reported here and there. This economy has stretched the planetary boundaries and a new way to measure economic growth or should we say society growth is now necessary.
Human beings in Western economies are today decoupled from their vital environment and a holistic approach is required to bring back the vital balance between Human and Nature.
A purpose-led economy is an economy where every participant defines its activities by a purpose or a raison d’etre. Purpose guides those participants in making the right decisions: those that maximize the positive Social and Environmental impacts on the Environment and Human Beings.
Is such an economy possible? Are there examples?
Part two arrives next week…
