A confusion of concepts & language at Davos

Davos First Thoughts: A confusion of concepts & language

Watching sessions at Davos and reading the various papers on the aspiration to bring about a new economy and a new form of capitalism, Socrates guidance from 2500 years ago is clearly needed.

What sort of economy is the world now living in? Is it 'unsustainable' or 'digital' or 'the Fourth Industrial Revolution'?

What sort of economy is the aspiration ? And what form of capitalism would be practised in that economy? Is it Stakeholder, Impact, Inclusive, Responsible, Sustainable with an upper case 'S' or sustainable with a lower case 's', Accountable, Integrated, Long-Term, Ethical or full of Purpose?

Does the world even need a new form of capitalism? Or just an altered system? is it just the absence of imagination that means that whatever is desired to come about has to be called capitalism?

And then what sort of thinking, behaviours and decisions are to be required and how will these be measured and compared? Is it ESG (the G of which always seems to me to be an odd bedfellow with the E and S, but what do I know?), or sustainable value creation, or sustainability, long-term decision-making, <integrated>, externalities, non-financial or pre-financial?

Are these all different words to mean essentially the same things?

In short, yes.

They are all code for 'some things which are not tangible are creating value or losing value and, so far, nobody has solved how to measure and compare them'.

Why is there such a confusion of concepts & language?

Because many people have accepted the challenge of trying to find solutions to a very big problem.

The problem is now so big and so real and creating so much fear, that it means that leaders, and indeed all of us, cannot look our children in the eye when we go home. Knowing what sort of mess we have created and will leave for them.

For anyone in a position of authority, leadership and influence, there is a sense of deep shame at the mess that this generation has created and simply does not know how to solve. Even Mr Trump feels it. He really does.

And being human and super-creative, confusion reigns when there is a need to be seen and known as the 'owner' of the solution.

The effects

The confusion is really not helping. In fact it is seriously hindering the probability of finding a solution.

And so, despite the will to bring about a change, a solution seems further away than ever.

The will to bring about a change in the system is though tangible. Watching the sessions it feels like Davos is about to go pop. If only......

Reasons for hope 1: A solution is not that far away

It just feels like it is.

Reasons for hope 2: Where to begin?

By following Socrates guidance.

The beginning of wisdom really is the definition of terms.

As Rethinking Capital will shortly have the opportunity to demonstrate. We hope.