New Eco-System

Posted on December 16, 2017, 10:55 am
4 mins

The global economic power would certainly be able to obtain a substantial reduction of poverty, environmental pollution, and social discrimination. However, the economic capital as the basis of this power (production resources, raw material, labor force, investment capital) has to be used by the organizations to strengthen their market position, to gain profits and to expand their economic standing to be competitive in the long run and offer cost-efficient jobs.

The global financial and economic crises in the past decades have also indicated that the present global economic system is missing a reliable set of values. A few have benefited from overheating financial markets; many others have lost much or all. The global economic system is neither stable enough nor designed to solve problems. It will rather create additional problems. Right now, each currency is based exclusively on the confidence in the financial system issuing it (so-called Fiat currencies, derived from the Latin fiat lux – “let there be light”) and has no “intrinsic” value. With declining trust in the financial system, the affected Fiat currencies will also lose value.

At the same time, promoting and achieving sustainable social goals is not a value that is reflected in the Gross Domestic Product (GDP, sales value of all goods and services produced) in an economic area. When calculating GDP, social business, social investment, volunteering, assistance, CSR activities, and the waiving of fair trade profits are not taken into account. Thus, the worldwide standard for economic value creation ignores at least one third of the available potential.

The so-called social capital of every society (all resources of a society which can be used to effect changes) cannot be used to solve the problems described at the beginning in a sustainable way without sustainable economic financing. Know-how, personal workforce, experience with aid projects, existing structures for aid projects and private assets can only be used in the long term to solve the basic problems in the world if for them an own global, socio-economic system is created.

In this new, additional economic system, the socio-economic potential of the society is used to achieve socio-economic value (so-called social economic impact, briefly speaking ”seimpact”) and socio-economic capital.
This seimpact is assessed and measured to develop a socio-economic creditworthiness that is securitized by generating money. Thus, this money is not only based on economic performance or achieved profit but also on socio-economic performance and a sustainable seimpact.

A socio-economic system generates socio-economic capital when the economic activity uses the social capital of the society in order to satisfy the basic needs of people in a sustainable way and is achieved with democratic co-determination, with market-economy corrections (e.g. competition) and the individual pursuit of development and happiness. Thus, the basis of socio-economic capital is social capital. However, only its use in its own economic environment (a socio-economic system) makes it accessible, usable and efficient for solving problems while allowing for sustainable economic growth