COMMUNITIES-BASED ECONOMY. We didn’t change mind, but the name

We re-named Inclusive Growth with COMMUNITY-BASED ECONOMY https://www.dhirubhai.net/groups/4682884, but we didn’t change vision, objectives and means to attain the Inclusion, which remains the ultimate goal to achieve. How to do it in changing times is the real question.

The suddenly blew up of Covid-19 changed the context. Gradually, the virologists are leaving the room to the economists who have the task to design, plan and implement the necessary measures to Restart and/or Rebuild.

Under the circumstances, each one and everybody have been hoping that something will change for better. It is hard to think that it will happen.

The future is the projection of the past: in the history there have been devastated periods by calamities: from wars, to epidemies, earthquakes, floods and so on. The day after any event, people tried to apply the lessons learned, but very little happened because, as it has been said, the road to hell is paved by good intentions; moreover, methodology matter, namely the risk to build something on a wrong foundation. Without digging new foundations, the next event there shall be another disaster with negative consequences similar to the earthquake's effects when the houses are built without respecting the good construction practice. It isn’t by chance that Japan is more equipped to face the quake and has been ready to face the Pandemic crisis.

However, despite any scepticism there isn’t a choice, but to look forward and re-set the development’s algorithm.

It seems that the proposals worked out for Post Coronavirus Recovery have assumed the situation before Covid-19 as normal and acceptable, but this isn’t the case. In fact, when we measure the progress achieved in getting the objectives of the UN 2030 Agenda, the related evaluations have shown poor results that have anticipated the non-accomplishment of the goals.

It should be noted that above context emerged from the analyses and evaluations made by the same Establishment that issued the rules of the game [1] : World Bank, UN, EU, IMF, OECD and insiders C. Lagarde, Elisabeth Rhine, C. Sanchez-Paramo, etc., signifying that when we are going to project the future, we should assume that the financial capitalism is broken [2]. [3].

Over the past decades Finance has continued to dominate the the business' world and this is quite understandable bearing in mind that the financial leverage is important and sometimes essential for the development of whatsoever activity.

But the problem is: which finance? Financialisation creating virtual affluence instead of real wealth?

Currently, Finance although having a dominant position, it is not a constant but a variable of the development’s equation and therefore can be reshaped with appropriate revisions to achieve the objectives.

The data emerging from everyday reality have shown that the capitalist algorithm is no longer accepted by both the ordinary people and professionals & entrepreneurs involved and engaged in the system; not to mention the situations in the developing regions facing massive migrations and an ever-increasing inequality among people.

Solidarity has been perceived as a response to accumulation, but the related algorithm hasn’t yet been proposed. Under the circumstances whatsoever proposal should emerge from an objective analysis of the economic trend, to understand the gap between the financial narrative homologated to the dominant power and the real economy.

In this perception, it is time for a great re-set of the development finance’s algorithm. Accordingly, the Community-Based Economy Group welcome conversations, comments and reporting on the Post Corona Virus matter. As we know, each one and every country has been facing the situation and it will be of upmost interest to share what both governments and private sector do intend to project the future.

Ascanio Graziosi, Founder & Owner COMMUNITY-BASED ECONOMY

1. [1] World Bank annual meetings (October 2018), https://www.devex.com/news/world-bank-s-jim-yong-kim-weighs-in-on-africa-s-industrialization-92820)
2. “The development finance needs to rely on a combination of funding sources, https://ec.europa.eu/commission/sites/beta-political/files/soteu2018-investment-outside-eu-communication-644_en_0.pdf
3. From a letter sent to OECD, “Politically-motivated approach, guided by finance ministries,” risked eroding the whole system, https://www.devex.com/news/donors-in-the-dark-on-unprecedented-private-sector-critique-94295
4. In a recent conference the U.N. Deputy Secretary-General Amina Mohammed said: “If national and international financial systems don’t change, the Sustainable Development Goals will not be achieved”, https://www.devex.com/news/un-report-financial-systems-must-change-or-sdgs-will-fail-94605
5. From a talk of the former MD of IMF and now President of the ECB. Mrs Christine Lagarde “After ten years from Lehman Brothers default the finance system changed a little bit”.
6. Only around 15% of the money flowing from financial institutions actually makes its way into business investment. “The rest gets moved around a closed financial loop, via the buying and selling of existing assets, like real estate, stocks, and bonds”, https://evonomics.com/rewrite-the-rules-of-the-economy-tim-oreilly/
7. The interview released by Elisabeth Rhyne informs us about the microfinance idea: The Past, Present and Future of Financial Inclusion, https://impactmoney.net/impact-investing/interview-with-elisabeth-rhyne-the-past-present-and-future-of-financial-inclusion/
8. A race against time to end extreme poverty, - https://www.dhirubhai.net/pulse/improbable-poverty-race-ascanio-graziosi/
9. OECD, “Politically-motivated” approach, “guided by finance ministries risked eroding the whole system” https://www.devex.com/news/donors-in-the-dark-on-unprecedented-private-sector-critique-94295
10. [2] https://www.dhirubhai.net/pulse/why-capitalism-broken-ascanio-graziosi/
11. [3] https://www.dhirubhai.net/pulse/why-poverty-mission-failed-ascanio-graziosi-1c/