The current coronavirus pandemic has tested the health systems and economies of most countries and all are grappling with two major issues: containing the crisis and initiating economic recovery. There is talk globally about the falling GDP and the collapse of economies. Typical discourses are around providing bailouts, fiscal stimulus, enhancing social protection, and a relook at taxation policies. While these measures are immediately needed, one has to also ask if the current economic model is flawed and explore other alternatives.
The narratives around the world show how the consumption- driven market economy has taken away everything that can be sustainable. A paradigm shift from a ‘for-profit’ mindset to that of a ‘for-benefit’ is necessary. A new economic order that draws on the ‘for-public’ DNA of the government, the efficiencies and profit mandate of the corporate world, and the social conviction and commitment of the non-profit sector is needed. While this sounds challenging, the Covid crisis has shown how this change is desirable. What will be required is the pol i t ical wil l and leadership.
Political leadership should accept the responsibility to be ‘different’ and not be dictated by mere electoral or political considerations. They need to stay focussed on creating a facilitatory eco-system, along with the appropriate legal, policy and taxation architecture. The need is for a deeper recalibration of consumption patterns and lifestyle priorities. Industry captains need to have the courage to move beyond shareholder pressures and their own personal interest.
They need to consciously take on the mandate of focusing on the quadruple bottomline of planet, people, profits and peace. NGO leaders need to prepare themselves with the intellectual and emotional bandwidth to be the initiators of change. Finally, what can really allow this new economy to emerge will be the leadership that each of us show. Instead of making excuses about how small our contributions will be or how large and unsolvable the problem are, we need to come to terms with our own priorities. We need to demonstrate leadership in everyday life – whether as a consumer, voter, employee, or as a shareholder in a corporate entity. Making such a large-scale conscious shift demands enlightened leadership of a high order. Unless capitalism gets grounded in compassion, equity, fairness and justice for all stakeholders, sustainability will just remain a fashion statement. It is in this movement, away from mindless ‘profit maximisation’ for the shareholders to ‘benefit optimization’ for stakeholders, that a sustainable World Economic Order lies.
Dr R BALASUBRAMANIAM
Author and social sector leader and visiting professor at Cornell University, USA, and IIT-Delhi