Democratic commitments to sustainable progression

Democratic commitments to progress for all have long been made. The necessary aims must include responsibility for environmental stewardship to ensure that a sustainable planet earth is passed down to succeeding generations. Commitments are also made to achieving universal human rights to freedom from the five giant evils of society: squalor, ignorance, want, idleness and disease. All people must also enjoy equal opportunities irrespective of race, gender, religion or belief, age, disability or sexual orientation, and societies must achieve some measure of social balance. Politicians have long made such heroic statements of intent, but actual achievement has fallen far short of those commitments. They can only be achieved by the effective operation of all three layers of the real economy, nominated here as the social-infrastructural, progressive-competitive and technological-revolutionary layers. Each layer is briefly outlined, together with the essential roles they must play in economic progression without destruction. Recognition of the interdependence of all humanity and the early stirrings of a rising rebellion against the status quo are noted.

Organisational systems and their coordination

Organisational systems come in many different formats and ownerships. The essential characteristic of any system is that it must have a system purpose which it exists to fulfil. For organisational systems, the various components, that is the people working in the system, must know and understand what that purpose is and their role in its fulfilment, as well as the system’s relationship with the macro system within which it operates. Such organisational systems are essentially dynamic, progressing through a system life cycle of essentially unpredictable stages, but with certain predictable changes occurring at each phase change. Effective system coordination depends on the coordinator fully understanding the system operations and how it relates to its various environments. System ownership is external to system operation and has no direct engagement with coordination and control. The importance is noted of real competition to systems serving the progressive-competitive economy and the failure of pretend competition being imposed on systems serving the social-infrastructural economy.

Systemic action for progression without destruction

The global imperative is for environmental stewardship, which will need to be led by the advanced nations of the world. Action must not be delayed till global agreement has been achieved. Less developed nations will not enjoy the freedom of action enjoyed by advanced economies when they were entering their growth phase, for example, by freely burning readily available fossil fuels. Advanced economies will need to assist less developed nations through this phase of global economic development. The social-infrastructural economy needs to be rebuilt by excluding operations which exist to maximise shareholder take. The progressive-competitive economy needs to be re-established by revising effective competition and breaking up monopolies and cartels. The technological-revolutionary economy needs to be refocused on the necessary sustainability revolution. Necessary actions are proposed including restoring progressive taxation of income and wealth, restraining organised money and completely displacing neoclassical belief.

Real people: engines of enterprise

Progression without destruction will only be achieved by real people working singly or together in organisational systems. Human motivation has been the focus of much empirical study, including Taylor’s deliberately misinterpreted work study or management science. Motivation is fairly well understood and was summarised in 1960 by McGregor under the headings Theory X and Theory Y, which updated the mid 19th century assumptions of economic man which is the core of neoclassical economics. It is far more nuanced than the simplistic ‘greed is good’ assumption of neoclassical belief. Empirical studies of intrinsic motivation and demotivation in the context of hierarches of human need, are reviewed and conclusions drawn regarding the roles of leadership and money and their impacts on human and organisational performance, nicely summarised by Wilfred Brown’s explanation in ‘Piecework Abandoned’.

Measures of real progression

Measuring progression without destruction relates specifically to the items identified in the previous chapter. Orthodox measures of economic progression still focus primarily on measures such as GDP and its growth, but GDP is itself full of flaws and anomalies, as well as being too easily fixable by relevant political-economic decision makers. Sustainable development goals which include reducing inequalities within and between member states have been identified and agreed by the United Nations, but their effectiveness is yet to be demonstrated. Further measures are identified including democratic protection and renewal which seem currently threatened in Anglo-America, the restraint of organised money and displacement of neoclassical belief. Tentative signs of such progression are noted, but they are yet to be confirmed.