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Could this be a Solution to Economic Crisis and the Future of Business?

The Importance of Philanthropy and The Rise of The Nonprofit Organisation

It takes an evolved individual to recognise that the only response that will solve this economic crisis is to give money away. The reasoning is simple; if you do not reinvest into the roots of society then its flower will surely whither.

There are any number of phrases and sayings that reinforce this, but a purely economic reasoning that underpins this is; if less money comes down from the top of the wealth pyramid than goes up, then there is going to be a ‘cash flow” problem.

The people at the bottom can’t create wealth or employment unless they are given something to work with, and if the governments print money it disappears in overhead, loan repayments and spiralling inflation, filtering upwards into the ‘safe’ commodity markets. Nature hates imbalance in all things and will always seek to achieve an equilibrium, the greater the imbalance, the bigger the impetus is to push back, which is why nonprofit organisations are the fastest growing sector in business today.

There is recognition here that there is significant pressure on decision makers in the private sector to provide substantial returns for their investors and this necessarily leads to questionable decisions being made. Banks who repackage high risk loans, energy companies who falsify oil reserves or cut corners with safety, food and drink manufacturers who bulk with addictive and harmful chemicals, you name it. The irony is that this does not necessarily represent greed as many of the share holders are pension funds trying to provide security for the old at the cost of a future for the young.

Nonprofits are free of these pressures, because of donations and accounting rules all transactions are transparent. Salaries are open to scrutiny and bonuses non excitant. Other businesses find that they prefer to deal with the nonprofit organisation as there are no hidden agendas a trust reputation relationship is easier to establish; equally there may even be the possibility of positive PR!

The lesson of the Chinese monkey trap is clear; the monkey is trapped by his desire to acquire the fruit and his inability to let go of it when it is in his grasp. It takes a lot of courage to trust and let go, by some it is called “a leap of faith”.

“Be the change you want to see

– Mohandas Mahatma Ghandi

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Why do People Fight Regulation?

In my work as a complex systems analyst I often wondered how it was that the systems I was analysing had become so complicated that they no longer functioned properly, or at all.

To me it seemed simple; you drew a big circle around the system, looked at what was going in, then examined what was supposed to be coming out. “The Big Picture”.

By doing this simple exercise I could surmise what ought to be in the circle and then compared this to what was actually in the circle. They almost never matched, as I had designed a system from scratch whereas the system that I was examining had evolved over time.

The problem with this evolution was that there were always unconnected systems, or two systems doing the same job and systems that used to fulfil a purpose but no one had thought to remove.

In the very worst cases a loop could be found, just like the one I have discovered in society today. In order to get the funds to set up a non profit organisation or company, most fund providers and investors require you to have a non profit organisation or company.

Volkswagon used to have a 1.9 diesel engine, wonderfully simple and easy to maintain. Client demand for power steering meant bolting on a pump, hydraulic clutch and brakes another, air conditioning yet another and when it came to put a turbo system to it, suddenly a whole redesign was going to be needed, because the engine was becoming less able to drive all these bolt ons and remain economical or cool at low revs.

The same thing occurs within bureaucracies and government designed system. The more laws and regulations that are generated, the harder the engine has to work in order to power the system overhead.

As these laws and regulations are created piecemeal, without considering the big picture, the tendency only to create more overhead and push the problem somewhere else rather than solving it.

When I first learned what function a politician or government representative performed, I assumed that it was to render their positions unnecessary. To create a just and equitable system that would require no further tinkering. The judiciary would be there to catch the occasional injustice or inequity that may occur within the system.

The major problem with this premise is that any politician within government needs to justify his or her own existence within the existing framework.

Mathematical logic shows that NP complete systems (where anything that it is possible to be computed, can be computed) with very few rules at all. Isaac Asimov showed us that only four laws would be needed for an effective social legal structure.

So why is it that we have so many laws and regulations when only a few are needed? These extraneous laws, this extra overhead is, quite literally, strangling society and the possibility for business growth.

I would say that now is the time that we need to have a serious look at our approach to regulation and our desire for control. For each control and every regulation are as a ratchet to a cog in clock, slowing it down until it can neither move backward or forwards.

“Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius — and a lot of courage — to move in the opposite direction.” – Albert Einstein


BBC News – Drought summit as rivers in England dry up

Nature has already has (nearly) completely linked water network through the means of the water table. Why are we obsessed with laying pipes sideways underground to do something nature already does for us? Solar powered boreholes straight to the clean mineralised water below obviates all the infrastructure and water treatment processes !!

BBC News – Drought summit as rivers in England dry up.


IS THE TIME RIGHT FOR MORE PHILANTHROPY AND CHARITY?

“See a need? Then fill it!”

Growing up in Cornwall, we were taught be our elders “Be more aware, I should not have to ask”.

This  is a fundamental principle that my organisation is promoting. We believe people are more likely to engage in the process when they are actively engaged in helping in something that ‘speaks’ to them on a personal level.

If we are to escape to fate of global economic collapse then people of every social strata need to accept that they have to help in the task of nurturing the roots of society: “If the roots remain untreated then the flower will surely whither”.

Either the problems that beset our world are everybody’s responsibility or it is nobody’s responsibility. It is now no longer sufficient to say that something is “Somebody else’s problem”, because very quickly it becomes nobody’s problem at all..

Perhaps it is now time for every individual to ask, “How can I make a difference?”, instead of taking the opposite view that “One person can’t make a difference”.

After all, how many people would it actually take to improve this world or even a small part of it?

There is an old challenge that springs to mind “Is there such a thing as a selfless act?”, perhaps the best way to find out is by trying to perform one.

A worthy challenge for anyone, anywhere and at any time.