ONE OF THE GREAT CRITICISMS THAT HAS that always confronted the World Economic Summit in Davos each and every year is that its pronouncements sounds so grandiose and global when in fact little, if anything, concrete seems to come from all that talk and collaboration. We need evidence, the kind that is supposed to emerge when connected minds and collaborative intelligence get together and map out a way forward. Proof of what is possible is far more important to the billions in this world than mere projections of what could be.
In numerous and provocative dimensions this is what billionaire and elite rebel Nick Hanauer has been prodding his peers to do: get real. Yet he understands that financial reform will prove impossible without political renewal. As long as the political spectrum remains as rigid and ideologically fixed as it has shown in recent decades, any sense of change in world finance won’t find a willing partner in transformation politics.
Hanauer points out that many of the greatest democratic movements occurred far away from the apex of power, in regional areas where citizens successfully mobilized on issues ranging from pensions to affordable health care. Often the reason is not merely due to the dynamic resources of those pressing for change, but the demoralizing inflexibility coming from party central – all parties.
“The politicians just don’t get it, and haven’t for years,” he observes. “The Right screams for growth and the Left keeps calling for fairness – and they both just keep losing legitimacy.”
It’s really not in the nature of government to innovate, except on rare occasions. Governments have historically been viewed as providing stability, maintaining the status quo, but that has become precisely the problem in the modern era. Political parties remain entrenched, making renewal all but impossible. In such a setting, how will they take risks, thinking radically outside the box, or even take the lead from outside forces. It’s true that governments around the world became far too easily influenced by free market ideologies, but that has now left both politics and capitalism as appearing unable to solve our greatest problems. While political leaders in places like Davos acknowledge that financial inequality has become one of our greatest challenges, they see no desire for change from the financial order and so remain mired in their redundancy. The status quo no longer works because far too many people are being left out of the wealth being generated.
Not even a year ago, the Coordination of National Digital Strategy of Mexico launched a program called “Innovation Agent.” They invited leaders from within both government and capitalism and asked them to think of the great global challenges in the way average people would see them. Over the course of time the organizers easily spotted the true innovators from both sectors and were amazed at how they worked together to formulate solutions.
Yet the success of the exercise wasn’t so much predicated upon the ability of the participants to start thinking like average people as it was the freedom the innovators felt once removed from the stifling orthodoxies and ideologies of both politics and business. The business innovators showed remarkable dexterity, not only in admitting corporate failures but of the need for governments to take on a more equitable leadership role. And the politicians? Once they were freed from partisan constraints, they were far more effective in designing collaborate solutions that showed promise.
Participants in the exercise acknowledged that in order to build governments and businesses that truly apply themselves to the challenges before the world they must get out of being isolated from citizens in general. Innovation didn’t come for the participants until they were willing to entertain the possibility of destroying the old paradigms and partisan leanings.
To succeed in reforming both politics and business we must find some way to get them outside of their comfortable confines and into communities where the greatest kinds of innovations play out. The governing and corporate sectors have come to be exclusively defined by three general terms – size, money, and power. Until they both work together to change that perception, it will only be a matter of time, as Hanauer repeatedly claims, until everything collapses due to irrelevance.