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 Aggregation of to produce Sorting, grading, air-dried rubber manufacturing rubber ADS ribbed smoked packing or RSS sheets (ADS) or export of RSS sheets (RSS) 1
18/09/2017 Research in Myanmar is lagging behind Little or no access to input, The public extension service only Cheating on both sides when technical and business services minimal outreach grading ADS and advice Information flows predominantly informal and seldom reach small farmers Smoking of ADS Production of Domestic Tapping of Aggregation of to produce Sorting, grading, air-dried rubber manufacturing rubber ADS ribbed smoked packing or RSS sheets (ADS) or export of RSS sheets (RSS) Production technology Grading of RSS done visually, antiquated with no incentive to not linked to national or upgrade international standards The traditional approach sees the … Research in Myanmar is lagging behind Little or no access to input, The public extension service only Cheating on both sides when technical and business services minimal outreach grading ADS and advice economy Information flows predominantly informal and seldom reach small farmers Smoking of ADS Production of Domestic as a Tapping of Aggregation of to produce Sorting, grading, air-dried rubber manufacturing rubber ADS ribbed smoked packing or RSS sheets (ADS) or export of RSS sheets (RSS) machine Production technology Grading of RSS done visually, antiquated with no incentive to not linked to national or upgrade international standards 2
18/09/2017 The complexity approach sees the … Research in Myanmar is lagging behind Little or no access to input, The public extension service only Cheating on both sides when technical and business services minimal outreach grading ADS and advice Information flows predominantly informal and seldom reach small adaptive farmers economy system Smoking of ADS Production of Domestic Tapping of Aggregation of to produce Sorting, grading, air-dried rubber manufacturing complex rubber ADS ribbed smoked packing or RSS sheets (ADS) or export of RSS sheets (RSS) as a Production technology Grading of RSS done visually, antiquated with no incentive to not linked to national or upgrade international standards Transformational economic change From solving … to enabling and problems … shaping economic evolution Network image source : CC autofunk.dk 3
18/09/2017 Multiple spheres of evolution Physical Technologies methods and processes for transforming matter, energy and information from one state into Economic Technologies another melding physical and social technologies together under a business or organisational strategy Social Technologies methods, designs and arrangements for organising people 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 Meta Societal framework conditions, guiding decisions about fundamental economic alternatives Macro Economic framework conditions Meso Targeted interventions to address temporary and persistent patterns of underperformance 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. 4
18/09/2017 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 5
18/09/2017 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 6
18/09/2017 Rubber sector: intervention examples Meso level Example: Invest in generation of new knowledge and strengthening of 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 7
18/09/2017 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 8
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