“Humanity & Economy, a contraction in terms?”

The term economy derives from the Greek “to manage” and while the economy plays a vital role in the wellbeing of humanity, it isn’t well managed. Why? Is there a human default in play? And how can we initiate a change for the better?    

Even before the failed capital investment, of the otherwise brilliant physicist Isaac Newton, economists were busy gathering data and compiling theories about the economic trajectory. Though economics is by and large an arithmetic curriculum. It appears that human factors have a profound influence on the way we manage our economy. I turned to the quotes of the Greek philosopher Aristotle, in search of some answers as to why we are still unable to manage what is so important to our wellbeing, the economy.    

Let's start with the good news. According to a report by NICK K. LIOUDIS, there was a period of near-ideal political conditions that existed in the world, between 1871 -1914,  During this period, Governments worked very well together to make the system work, but this all changed forever with the outbreak of the Great War in 1914. Setting aside the disruptors of war it appears that collaborative arrangement between Nations and enterprises tend to reflect positively on the economy.   

This in itself is indicative that under certain bilateral conditions Global integration could be a fertile ground for economic stability.  The question is what are the conditions that would enable such a situation?  The collaborative aspect between diverse economies is an important precondition to an amicable integration of diverse interests. It means that rather than thriving for the ultimate, unconditional superiority, realizing that coexistence is the cause to follow.

One example of an imposed economic superiority was the agreement at Bretton Woods in 1944-45. Though there were many positive aspects to this agreement, the underlying agenda was to tie all currencies to the USA Dollar, thus retaining a financial and economic control with the US Treasury. It is difficult to project what might happen to the mitigating circumstances in the future. All we can do is to plan our next step based on our current assessment of a situation. One example of the inability to project into the future is the massive confusion around BREXIT. Things that should have been considered years ago are still being debated. So much so that even a second referendum is being considered. Important aspects of this political-economic move are only gradually coming to light. 

In Europe, the economic Gordian knot will be extremely difficult to untangle. The discrepancy in value output between various EU members is likely to be debated over a long period of time. Unless Europe’s citizens are willing to consider major restructuring IE: Some kind of a “Give in” the Economic structure of the EU will implode.

 To give in can mean various things: Giving up, surrendering, donating, being generous and being forced to give in. In general, giving in is not a voluntary act. People are made to look after themselves first and secondly to ensure the security of wellness and that means even less giving. 

The Clan mentality still prevails. From the cradle, throughout life, we chose our options according to an embedded Darwinian code. We process options and impressions, evaluate, adopt or reject them according to our knowledge and expectations.  Throughout our lifetime, the clans we become part of, either by coincidence or by choice, influence the way we feel and act upon economic situations.  Our community’s acceptance of values has a profound impact on the choices we make. But when it comes to representing an affirmative point of view the self-preservation instinct prevails across continents. The more common resolve of a conflict situation is giving in to pressure. 

 Possessiveness is a Human trait. The need to gain more beyond the initial need to feed seems to grow infinitely. These innate drives fuel the economy since the beginning of civilizations. In the process of this exponential expansion, we eventually come up against the neighboring clan that is equally eager to gain by expansion. Here is where the battle for superiority takes place. There are of course various ways to gain superiority but inevitably this leads to conflicts and some time to devastating wars.This has some inevitable consequences. It instigates, it infuriates and it fuels jealousy. Most of our primary objectives are based on “how we can get to the next level of more”. The occasional affirmation that we have achieved more can easily lead to believing that we are indeed superior.

Having to restrain ourselves from the natural drive to acquire more turns out to be an effort but in some cases, the threat of losing motivates to collaborate. The total absence of the need for more would have dire consequences on our lives. Apathy would settle in. We would have no desire to mate, no will to fight, to win or to recover from losses. We would not engage in competitive sports or in any other competition for that matter.

Striking a balance between this innate need for “more” and what our good conscience tells us to do is indeed a challenge. The economy isn’t what economists are defining. An economic forecast is merely a reflection of what the drive for more left behind including the wastage.

 The stock exchange, GDP figures or any other economic indicators only summarize what has happened in economic terms, in various regions. The idea that heightened production to meet consumer demand enables more people to enter the cycle of “having more,” is an illusion. In reality, the dynamics of “the more” contributes to currency devaluation and inevitably to inflation. One of the key functions of a Government is to curtail this stampede for more and promote growth measures based on productivity and future needs. But this isn't happening simply because of the innate need for more is endemic.      

 Conventional marketing is an opportunistic trait. This isn’t an attempt to justify marketing practices which in fact are earning themselves a bad reputation. In reality, there is no need for marketers to create demand. Once there is a product or a service that promises appeasement of the need for "more" demand will happen automatically. This continuous drive for more is the major impetus for product development and industrial expansion. As long as there is a need for more, the economy will accelerate. Creating sales frequency has its effect on product quality and availability. Because in order to induce sales products and services must be both available and affordable. Marketers are capitalizing on the innate need for more by creating sales frequency and making the purchasing easier. In essence, all intuitions including governance, are driven by the same innate need for more.  

 Advancing management leadership. Working within the familiar parameters, may not be sufficient to maintain a balanced economy. The marketplace is an ever-changing environment. It doesn’t wait for anyone. Change happens when the coordinates align, whether we are ready for it or not. If we wait for events to coincide with what we can manage, we may miss an opportunity to find an effective solution for an imminent change. Change represents an opportunity that should not be overlooked. The only chance to identify the ever-shifting coordinates of the economic landscape is to have a wide range of options that include the economic models of other countries.  

 Abandoning exploitation tactics.  Ethics and integrity should not take the back seat for the sake of solving immediate economic issues. While change is a continuous challenge the earned trustworthiness blatant exploitation can become a costly loss of trustworthiness. “Taking care of me first”. We asked ourselves who can intervene in restoring a productive balance between our personal goals and the business we represent?  Inventive management propagates an equilibrium between the corporate vision and the mitigating economic circumstances. 

Companies tend to focus their attention on the demand in the marketplace. That means that there is already an environment where products and services are competing on a relatively small differentiation such as pricing. Many businesses are focusing their marketing effort on maximizing the combination of availability and awareness disregarding the option of developing entirely new features.  

 Connectivity is a key commercial accelerator. Negotiating amicable collaboration internally as well as externally is important. In order to achieve meaningful progress, commercial infrastructure needs to correlate and intertwine. That means that the top management as well as heads of departments and the annexed collaborators, need to hook up and engage with one another while at the same time recognizing the diverse parameters of responsibilities.   Everyone is looking for something. And when a new proposition becomes available growth will be an inevitable consequence.   

Considering unconventional exploratory strategies.    In any given market brand value increases with perceivable product and service differences. These may not be the features customers expect right away but they should be ultimately relevant. Early adopters will popularize what seems to be odd at first. This has been the case in the past and it is sure to be the case in the future. Instead of a single feature, search for a fundamental point of view that could inevitably become a continuous source of relatable innovations.  Once proven to be useful people will look for variations of the unique idea. The end results of a collaboration between an inventive marketing team and investors usually culminate in a profitable "a first in the market position."

At the outset of a project the terms of engagements need to be clear. Transparency is often limited to information about incomes and revenue but when an enterprise is about to embark on a strategic operational shift, moral transparency is of vital importance. What needs to be shared at what point in time is an important contribution to the success of a project. Administration & progression need to coexist in an amicable relationship that your business can sustain. 

The Octopus versus Moray Eel strategies. Octopus Marketing: As an intelligent and agile creature the octopus can adapt itself to changing situations. It has the capability to absorb process and decipher information before determining its next move. With its long tentacles, the octopus can reach several niches at the same time. The octopus is a highly adaptable creature that can change shape and color according to the situation it finds itself in. In diverse marketing situations, the octopus strategy has proven to be an advantage over Moray Eel strategy. The moray eel is confined to existence out of a crevice in the rock. Unable to operate in unfamiliar territories, the moray eel depends on the current to float by fish it can hunt within reach. When such an opportunity arises the moray eel is quick to extend its double jaw far out and strike.

Moray eel marketing is based on collaboration with allied in the same marketing environment. It banks on protectionism and close relationships within the administration. That way the Moray Eel can enjoy certain privileges in a designated market.  What is being regarded as a home turf advantage can turn into a disadvantage in an exceedingly global economy. Moray Eel is facing formidable challenges when it decides to explore marketing opportunities abroad.

What do Moray Eel and Octopus have in common?  Both are pretty smart creatures. Both use disguise techniques to attract prey. Both seek shelter to protect their vulnerable bodies. Can a Moray Eel become an Octopus? Grown-up Moray Eels who have attempted to leave their dwellings and establish themselves elsewhere rarely succeed.

The importance of Octopus mentality for the future. 

Taking full advantage of what upcoming talents have to offer.  

? Octopus mentality should be a consideration for companies that are aware of

   the growing interdependence in the global economy. 

? Rules must follow the people’s needs. If they don’t, there will be replaced.  

? Unbiased and a tolerant set of mind are the pre-conditions to crossing

  economic and cultural barriers. 

? One way to avert the Moray Eel trap is to start a rigorous exchange program.

? Such an exchange will also expand commercial and administrative

  possibilities across the board.

The need to readjust the balance between administration and innovation is one of the key issues that proactive management needs to instill.  “Business as usual” will be challenged. What happens at top managerial levels happens to most of us as individuals. The moment we encounter obstacles we abandon the pegged strategies.  By and large, people are reluctant to relinquish processes and embark on a new business mantra. People don’t like ambiguity. People like recognized and proven methods and processes.  

 The outgoing position. People have different outgoing positions based on their understanding of a situation. The outgoing position determines a person's point of view, valuations, and it influences the decisions. The outgoing position is an essential part of forming an opinion and forging ahead with projects. Expanded knowledge and new information may influence one's outgoing position. In marketing, the outgoing positions between marketers and customers are quite different.  Marketers are given a set of information intended to persuade customers to believe in certain advantages.    Consumers want to believe that the choice they made will fulfill their expectations. These contradicting positions can lead to disappointments.  

Most companies would rather take the chance of having to replace products that did not meet customer’s expectations instead of setting up innovative R&D departments that forge into deeply rooted outgoing positions of customers.

The consequences of striving for supremacy.  We are social beings but equality is not part of the social code.  Those who propagate equality hope that achieving equality will ultimately be to their advantage.      

We cease on any opportunity to achieve superiority in order to counter the inferiority ridden sub-consciousness within us. Striving for supremacy releases a considerable amount of energy. The question is how we direct it.

 Wealth distribution The wealth distribution discrepancies between capital and labor isn't a phenomenon of the 19th nor the 21st Century. It is as ancient as civilization itself. The reason for this discrepancy can be attributed to the inequality of values between what is fungible and accumulates value exponentially and what is in the process of being made. The 19th – 20th Centuries enabled the entrepreneurial middle class to thrive. Fueled by the emergence of industrialization and to some extent governed by democratic principles, it was possible for ambitious people to advance themselves through education and become members of the wealthier. The deeply rooted drive for supremacy continues to cause the imbalanced distribution of wealth. Since biblical times supremacy was rewarded with gaining disproportionate wealth advantage.  Time changes but the fundamental psychological mapping remain very similar to the one we inherited from our ancestors. Rulers protected their supremacy and the vast underprivileged population faced economic uncertainties. Hard labor, burdened by taxations, doomed to have no protective social status continue to be the fate of the majority.   The disparaging capital wealth distribution followed these emerging societies in a similar constellation.         

So what influence does the acquired knowledge and sophistication have on the imbalanced economy? The concern of our own wellbeing still overrides all other considerations. The democratic principles have been widely accepted as the better system of governance but the enclave mentality has not been replaced with a deeply felt sense of equality or justice. It seems that the more knowledgeable we get, the more questions emerge. Logic is still subservient to primordial instincts of survival, which are driven by fictitious fears.