Transformational Economic Change Complexity, economic evolution, - - PDF document

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Transformational Economic Change Complexity, economic evolution, - - PDF document

18/09/2017 Transformational Economic Change Complexity, economic evolution, and institutions Marcus Jenal, Mesopartner mj@mesopartner.com The RSA House, London, 15 September 2017 Smoking of ADS Production of Domestic Tapping of


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Transformational Economic Change

Complexity, economic evolution, and institutions Marcus Jenal, Mesopartner mj@mesopartner.com The RSA House, London, 15 September 2017

Tapping of rubber Domestic manufacturing

  • r export of RSS

Production of air-dried rubber sheets (ADS) Aggregation of ADS Smoking of ADS to produce ribbed smoked sheets (RSS) Sorting, grading, packing or RSS

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Tapping of rubber Production of air-dried rubber sheets (ADS) Aggregation of ADS Smoking of ADS to produce ribbed smoked sheets (RSS) Sorting, grading, packing or RSS Domestic manufacturing

  • r export of RSS

Little or no access to input, technical and business services and advice Production technology antiquated with no incentive to upgrade Cheating on both sides when grading ADS Grading of RSS done visually, not linked to national or international standards Research in Myanmar is lagging behind The public extension service only minimal outreach Information flows predominantly informal and seldom reach small farmers Tapping of rubber Production of air-dried rubber sheets (ADS) Aggregation of ADS Smoking of ADS to produce ribbed smoked sheets (RSS) Sorting, grading, packing or RSS Domestic manufacturing

  • r export of RSS

Little or no access to input, technical and business services and advice Production technology antiquated with no incentive to upgrade Cheating on both sides when grading ADS Grading of RSS done visually, not linked to national or international standards Research in Myanmar is lagging behind The public extension service only minimal outreach Information flows predominantly informal and seldom reach small farmers

machine as a economy

The traditional approach sees the …

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Tapping of rubber Production of air-dried rubber sheets (ADS) Aggregation of ADS Smoking of ADS to produce ribbed smoked sheets (RSS) Sorting, grading, packing or RSS Domestic manufacturing

  • r export of RSS

Little or no access to input, technical and business services and advice Production technology antiquated with no incentive to upgrade Cheating on both sides when grading ADS Grading of RSS done visually, not linked to national or international standards Research in Myanmar is lagging behind The public extension service only minimal outreach Information flows predominantly informal and seldom reach small farmers

The complexity approach sees the …

as a complex economy adaptive system

Transformational economic change

From solving problems … … to enabling and shaping economic evolution

Network image source : CC autofunk.dk

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Economic Technologies melding physical and social technologies together under a business or organisational strategy Physical Technologies methods and processes for transforming matter, energy and information from one state into another Social Technologies methods, designs and arrangements for organising people

Multiple spheres of evolution

Beinhocker, Eric D. The Origin of Wealth: Evolution, Complexity, and the Radical Remaking of Economics. Boston, MA: Harvard Business School Press, 2006.

Multiple levels of evolution

Meso

Targeted interventions to address temporary and persistent patterns of underperformance

Macro

Economic framework conditions

Meta

Societal framework conditions, guiding decisions about fundamental economic alternatives

Micro

Allocation through markets, hierarchies & networks

Esser, Klaus, Wolfgang Hillebrand, Dirk Messner, and Jörg Meyer-Stamer. Systemic Competitiveness: New Governance Patterns for Industrial Development. London: Frank Cass, 1996.

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Rubber sector: intervention examples

Physical technologies Example: Use design thinking and participatory research to develop new smoke house technologies and improve rubber

Rubber sector: intervention examples

Social technologies Example: Develop capabilities of actors to come together and identify problems and potential solutions in the sector

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Rubber sector: intervention examples

Social technologies/meta level Example: Strengthen the participation of women and other marginalised groups like migrants in the development dialogue

Rubber sector: intervention examples

Meso level Example: Connect research and teaching with rubber sector demand by immerging students into small rubber farming

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Rubber sector: intervention examples

Meso level Example: Invest in generation of new knowledge and strengthening

  • f the research capabilities

Rubber sector: intervention examples

Meso level Example: Strengthen the capability of extension research and training providers to respond to changing needs of farmers

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Achieving transformational economic change

  • Actors need to become aware of how change

happens, and their role in it

  • Strengthen actors’ capability to engage in,

collectively discover and continuously shape economic evolution

  • Trust building through formal and informal

means essential

  • The process needs to be transparent and

participatory

Resources

  • Rethinking Systemic Change – economic evolution and institutions. By Marcus

Jenal and Shawn Cunningham. https://beamexchange.org/resources/861/

  • The Origin of Wealth. By Eric Beinhocker. http://amzn.eu/j8zIam9
  • Complexity Economics: A Different Framework for Economic Thought. By Brian
  • Arthur. http://samoa.santafe.edu/media/workingpapers/13-04-012.pdf
  • Understanding the Process of Economic Change. By Douglas North.

http://amzn.eu/8w5fIad

  • Systemic Competitiveness: New Governance Patterns for Industrial Development.

By Klaus Esser et al. http://amzn.eu/3E3SFb3

  • Shaping Inclusive Markets – How Funders and Intermediaries can Help Markets

Move toward Greater Economic Inclusion. By Harvey Koh, et al. http://www.fsg.org/publications/shaping-inclusive-markets