01.26.08

Creative Capitalism.. the speach and some discussion

Posted in funds, economics at 5:26 pm by Andrea McGrath

This morning I watched the video of Bill Gates talk at Davos this past week (see here). His theme was ’creative capitalism’ - stretching the reach of market forces to help the poor - and the growing understanding among us all that ”when change is driven by proper incentives you have a sustainable plan for change…” Worth a watch…

And in one of the many responses to Bill Gates speach - Bill Schambra of the Bradley Center of the Hudson Institute sponsored a discussion on January 30th on the potential of “creative capitalism” with a panel which included William Easterly (Brookings Institution and New York University) Eugene Steuerle (The Urban Institute) and Allen Hammond (World Resources Institute). Attached here is the transcript.

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12.28.07

What to measure

Posted in Uncategorized, economics, India at 3:11 am by kevindjones

This is my response to Shana Ratner, whose work I admire, on what to measure. I have a house in Sonoma California. I noticed today two shops that seem to be doing well. one was consignment furniture, another was consignment couture; people selling their furniture and their high end, glittery gowns and things. I think, in light of the wonderings about recessions, peering under rugs for canaries in the mine, that those two shops numbers (number of consignment sellers, avg. dollar of items sold, throughput of retail stock, etc. factored against new car sales, by price, and new home sales, by price, factoring in time on the market for home sales and slicing in forclosures or other signs of housing distress,and then doing a similar slice by price and item in local newspaper classified ad line sales from individuals those are measurements that would be meaningful and that would let me know whether, for example, i’d want to start a competing newspaper here, or some other business. i believe in measurement where there is an outcome that results in more money flowing or more perception of trends and value over time. i believe in measuring soft things, like you do in a failing community’s assets. in social enterprise, it’s been mostly academic hand jive. additive friction without additive value. measurement should increase the flow of value, not be a net cost.

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11.04.07

There’s Nothing Philanthropic about a Social Stock Exchange

Posted in exchanges, economics at 11:36 am by Samantha Beinhacker

I have been musing about what “philanthropy” means– partly triggered by a piece Lucy Bernholz has written, and in a recent conversation, she thoughtfully suggested that we need to alter the understanding of what philanthropy, traditionally, means, and to consider all the engines that fuel the giving practice.

People need to stop equating “giving” with “social good.” In fact, philanthropy is just a piece of the larger pie of many aspects of social good and the exchange of capital.

The goal of the Social Stock Exchanges that we’re blogging about (and there are other types out there!) is quite clear: this is not a ‘philanthropy’ free cash model. The “social” is in the social-value created by social entrepreneurs and businesses, not in getting free money from the public.

This may be controversial– or maybe not. I’d like to hear your views.

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10.28.07

The Economic Naturalist

Posted in Story Index, information hubs, economics at 11:07 am by Samantha Beinhacker

This morning I stumbled upon an essay by Robert H. Frank, an economist at the Johnson School of Management at Cornell University, and author of “The Economic Naturalist.”

He argues that the study of economics is dismally taught and dismally understood. He suggests that rather than teach all the “horrible equations and graphs,” an alternative method should be deployed– that of storytelling and narrative. He writes: “The form in which ideas are conveyed is important. Perhaps because our species evolved as storytellers, the human brain is innately receptive to information in narrative form.”

Frank asks his students to pose an interesting question based on something they’ve observed or experienced, and then they must use basic economic principles to explain it– in no more than 500 words. Most students present answers invoking the “cost-benefit” principle which says that a rational person should only take actions whose benefits outweigh their costs. Read more from Frank here.

Basic economic principles, he says, are not rocket science. They are accessible to most children (and perhaps even to those of us who are desperate to come up with methods to value the impact of the social capital market!).

This method, “the economic naturalist” principle, harkens back to the field of biology that uses Darwinian principles to interpret the traits and behaviours of living things.

My take-away over coffee this morning is, as Frank writes: “… in light of the low bar established by traditional courses, there seems little risk in trying something different.”

What shall we try?

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