As people celebrated the beginning of the New Year
2013, I was glancing through the world economic situation report that prospects
a risk of synchronized global downturn in 2013-2014[1].
This is not good at all! In pursuance of various recovery/survival strategies,
the world seems to be desperate for a working solution; a solution that can
stand the test of time, but …
"The question is whether we're going to start
taking the steps now to avoid the really big jumps that are in store if we
don't do something now." - David Suzuki
The quote above by David
Suzuki gives an impetus to
this article, not only to fulfill my desire to contribute a solution in such
challenging times but also to add my voice to that of others who want to
realize a better tomorrow.
Undertaking a spirited fight against the challenges of
today does not mean picking up guns and fighting the current systems/institutions;
it rather means pushing forward ideas and solutions of extraordinary nature
that they cannot be flouted... ideas that will raise the question “why didn’t I
think of that before?” ideas that will not be replicas of the existing systems,
but rather challenge their flaws and further go ahead to provide working
solutions. I have in this article proposed three main items that I believe
require critical attention. This is our task as leaders of tomorrow; a task
that if well done will lead to the realization of a sustainable social and
economic development.
#1 Understanding the impact of institutions on
our behavior in all aspects and acting upon it
Like genes influence our behavior, Institutions are
characteristically human and tend to be transmitted the same way in every
society. Group membership and
instruction, status, role and interpersonal relationships are the chief means
by which the sociocultural environment exerts its influence on individual
development. In every social
structure there are a variety of distinguishable positions such as doctor, teacher, carpenter,
parent, student, child, and so forth. Each contributes in some way to the total
group functioning and is given a certain social status. Status brings with it
both privileges and responsibilities. Parents shape the personality development
of a growing child by administering various rewards and punishments; society
enforces its basic rules of behavior by conferring and withdrawing the
privileges of status[2].
Leaders of tomorrow either emulate or are motivated by
the actions of the present leadership. It is supposed that the existing
institutions of all kinds are responsible for creating their future leaders.
The world is currently challenged by several issues that range from simpler
concerns in our homes that amalgamate into global concerns of sustainability
and development. These concerns have become more eminent in the last half
century[3];
during which it is also notable that we have greatly progressed in both
technology and institutional development. The sustainability of the
technologies and institutions has been the goal of most researchers in the last
two decades.
Yusuf Bangura[4],
in his paper “Economic Restructuring, Coping
Strategies and Social Change: Implications for Institutional Development in
Africa” criticizes the contradiction between the institutional set-up itself
and wider society. He mentions that it’s necessary to look more closely at the
sets of values and relationships that anchor institutions in social systems. He discusses coping strategies and
issues of social change, and attempts to develop a framework that relates the
crisis in social relations with problems of institutionalization. This
framework would provide a general layout that would fit in most of the
scenarios other than what is exhibited in Africa alone. Developing countries in
particular have a lot more to learn as their institutions are still young and
some are not even existent.
These institutions if designed appropriately should
foster a sustainable economic and social development. The main question is how
to design these institutions to achieve the greater good of the world at large.
A sustainable economic and social development means efficient utilization of
resources, environmental considerations, and above all a general system or
institution that takes consideration of the needs of the future generations.
The economy is normally influenced by the social systems and needs of society.
To attain any progress in anything, efforts should be turned to society; and an
understanding of the behavioral needs of society will ensure that no mistakes
are made in the making of any economic decisions for example. Social
institutions for example can be channels through which people are psychologically
motivated to propagate sustainable social environments. Orienting these
institutions to influence people behavior in a way that leads to a socially and
economically sustainable environment would be the ultimate achievement of
mankind in the 21st Century. No social or economic order is secure
if it fails to benefit the majority
of those who live under it[5].
#2 Creation of resilient economic and social
institutions
“Education is a human right with immense power to
transform. On its foundation rest the cornerstones of freedom, democracy and
sustainable human development.” - Kofi Annan, UN
In the early stages of every person’s growth and
development, education becomes key in contributing to the general behavior of
that individual. Both at schools and at home (family),
a child learns new ways to do things and gathers knowledge all throughout that
time. If anything goes wrong at this stage, then it may not easily be corrected
in the future stages. This is the only opportunity the older population uses to
inculcate characters that they desire to see in the future. Educational
institutions have a high stake in directing our social, economic and political lifestyles. Designing these
institutions to create a generation that will be mindful of its actions
relative to the needs of future generations, will not only foster economic and
social development but will also secure the future
of humanity.
Living in a society that is faced by several
challenges; a society that is run by institutions; a society that keeps
evolving by the tune of the institutions’ goals means that we have to turn to
these institutions ( be it political, social or economic) to put in place
systems that will foster a sustainable economic and social development.
During the Rio+20 conference (2012)[6],
the main themes of concern for fostering global sustainability were creating a
green economy and restructuring our institutional framework. A green economy is
pro-environment and would be in line with global warming solutions; further
confirming our signature on earth. Restructuring of institutional frameworks on
the other hand is key to ensuring that the created environment is in capable
hands. They note seven critical areas; Jobs, Energy, Cities, Food, Oceans,
Water and Disasters as the main focus for sustainable livelihoods. All these
concerns affect the core values of our institutions and their realization must
be rooted to resilient institutions.
Advocating for strategies aimed at supporting a
process of institutionalization that would lead to effective rules, predictable
transactions and viable incentives for institutional actors would need to
address three main issues. The first concerns questions of livelihood, social
polarization and multiple identities. The second relates to the role of culture
in social development and institution-building. The third issue concerns the
role of social forces in disciplining institutions, (Bangura, 1994).
Institutions should be designed to mediate the transformation of coping
capacity into adaptive capacity through combining vulnerability and resilience
approaches to foster sustainability of set goals. Converting institutions into
bridges between several stakeholders will help to combat existing tensions and
challenges[7]
Economic institutions should be designed in such a way
that they call for innovativeness and creativity that would propel the world in
an economically sustainable situation. In this regard, rewarding innovative and
creative individuals; and above all excellence that brightens the future of
tomorrow’s generations is crucial to not only creating sustainable economic and
social institutions but also, the environment at large.
#3 Re-institutionalization as the ultimate strategy
Innovation requires courage and intelligence, but not
permission… (Anonymous)
Victory is an integral of successes and it means that
we have overcome a difficulty or
a threat to success. Such victory is what counts more and recognition of
contributors to this is not only motivational but also starting point for other
members of society.
Ernst and Young[8],
in their latest issue” leading corporate sustainability issues in the 2012
proxy season” identify that a confluence of factors including social topics,
economic, political and environmental related developments are essential in
fostering sustainability. They propose several channels to highlight these
challenges and critical among them is enhancing dialogue among shareholders and
improving disclosure in key areas addressed by key shareholders’ proposal
topics. This is proposed as a robust sustainable approach to tackling the
latest concerns in most of our already established institutions.
Fox et
al[9],
in the article “Changing Human Behavior and Institutions toward 21st Century Paradigms - a Theoretical
Construct”; applauds economic growth in relieving poverty levels for the last
60 years and note that the quality of policies and institutions matters in
achieving this. Also, they note that there is no single recipe for growth;
solutions should be context-specific with several shared points of resemblance.
It’s from this that I borrow the concern of designing institutions to be more
particularly specific at the smallest level but all aim at the general
objective of fostering sustainable economic and social development. For example
starting at the family level to inculcate responsible and sustainable behavior
to the younger generation and then proceeding to schools, local communities,
and large institutions such as universities and finally spread out to global
extents. Designing these institutions with specifically appropriate approaches
sharing a similar agenda would be in line with sustainable livelihoods.
The economic institution reforms in South Africa after
1814 British conquest saw a boost in agricultural production, a factor that was
responsible for South Africa’s enhanced economic development up to later times
including today. Some of the institutional re-designs undertaken were improving
the food marketing system, awarding prizes for agricultural innovation and
reforming the labour law institutions that governed the employment of the black
population[10].
This shows the positive changes that result from directed institutional changes
as well as rewarding courage.
Towards the end of 2012, the government of Japan
started to opt for aggressive economic stimulus options to elevate the country
out of the economic valley it has witnessed over the last one and half decade.
This is the brain work of some of the newly elected political figures (Abe
Shinzo) and he is targeting a re-adjustment of the existing institutions
(economic and social). Some economic analysts like Jim McCaughan[11] suggest that Japan needs to do more
than this to achieve long time economic sustainability. He proposes
restructuring of the economic institutions, opening out to international
markets and financial reforms. For a country that faces problems of a declining
population (plus a considerable percentage of aged population); looking back to
change how institutions work is possibly one of the main strategies to ensuring
social and economic sustainability.
The motivation that results from rewarding innovation
is the mother of bigger inventions that challenge our ordinary thinking. We
need to get out of this comfort zone and realize that the world is being
challenged daily, and needs a dynamic population that challenges uniform
thinking and goes ahead to create or put forward alternative options. Among
these several options, sustainable economic and social options can be rooted.
In conclusion, fear of the unknown always affects our
decision making. Many people out there prefer to “play it safe” because they
are afraid of making any changes in their lifestyles. This kind of thinking or
behavior will not lead us to sustainable social and economic development beyond
the 21st Century. In
societies where people who rise above the ordinary are not recognized, then few
will rise again! And if we badly want to create positive change, then we should
remember that – courage is not
the absence of fear, it’s rather the judgement that what you want is more
important than what you fear… (Anonymous)
Bibliography
[1] United Nations (DESA)
World Economic Situation and Prospects 2013, <http://www.cnbc.com/id/48195283/ IMF_ Downgrades_Global_Economic_Forecast >(accessed 2013/1/11)
[2] Kinder. N. C, Effects of
Institutions on Human Behavior, Yale-New Haven Teachers Institute, Curriculum
Unit87.05.03, 1987
[3] <http://www.sustreport.org/background/history.html >(Accessed 2012/12/17)
[4] Bangura. Y, Economic
Restructuring, Coping Strategies and Social Change: Implications for
Institutional Development in Africa, UNRISD, Geneva, 1994
[5] Ban Ki Moon, Achieving
Sustainable Development and Promoting Development Cooperation, United Nations
Publications, ISBN: 978-92-1-104587-1, New York, 2008.
[6] Rio+20, The Future We Want,
United Nations Conference on Sustainable Development, United Nations, http://www.uncsd2012.org/index.html,
June, 2012
[7] Berman. R, Quinn. C, and
Paavola. J, The role of institutions in the transformation of coping capacity
to sustainable adaptive capacity, Sustainability Research Institute (SRI),
School of Earth and Environment, University of Leeds, Leeds LS2 9JT, UK, 2012.
[8] Ernst and Young, leading
corporate sustainability issues in the 2012 proxy season, <http://www.ey.com/Publication/vwLUAssets/2012_proxy_season/$FILE/2012_proxy_season.pdf>
(accessed on 2012/12/20)
[9] Fox,
William M, Changing Human Behavior and Institutions toward 21st
Century Paradigms - a Theoretical Construct, Academic journal article
from ETC.: A Review of General Semantics, Vol. 56, No. 2, 1999.
[10] Liam B, Which institutions
matter for economic growth, <http://www.voxeu.org/article/which>
institutions –matter -economic-growth >Sept 2007
[11] BBC Business News, 11th
January 2013, <http://www.bbc.co.uk/news/business-20981874> accessed
January 17, 2013
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