The extent of damage that the current coronavirus pandemic is causing the world is mind-boggling. However, despite this massive damage, it offers us an unparalleled opportunity.
Right now, the whole world has to address a big question. It is not about how to get the economy running again. We know how to do that. The big question that we have to answer is: Do we take the world back to where it was before this coronavirus came? Is that a worthy goal? Or, do we redesign? The decision is entirely ours.
The pre-pandemic world was full of strife and threat of collapse. Until COVID-19 became the news, we literally were counting the days until the whole planet would be unfit for human existence due to climate catastrophe; we were under serious threat of massive unemployment created by artificial intelligence; and wealth concentration was reaching an explosive level.
Should we go back to that world? The choice is ours.
The coronavirus suddenly changed the context and calculus of the world. It has opened up audacious possibilities that never existed before. Suddenly we are at the tabula rasa — the blank slate. There has been so much destruction that we must rebuild. We can go any direction we want. What unbelievable freedom of choice.
Before we truly restart the economy, we must decide on what kind of economy we want. First and foremost, we have to recognize that we are the economy and “the economy” is a means. It facilitates us to reach the goals set by us. We should not forget for a moment that it is a system or tool made by us. It should not behave like a death trap. We must keep on designing and redesigning it until we arrive at the highest collective flourishing, resilience and happiness.
If at any point we feel that the economy is not taking us where we want to go, we should understand that there is something wrong with the software we are currently using, and we need to rewrite the code. All we have to do is to fix it. If we want to create a world of zero net carbon emission, we build the right metaphorical hardware and software to achieve it. If we want a world of zero unemployment, we do the same. If we want a world of shared prosperity and less astronomical concentration of wealth, we do the same. The power is in us. When human beings set their mind to get something done, they do it. Little is impossible.
The COVID-19 crisis offers us almost limitless opportunities to make a fresh start. We can start designing our system to create the results we want. Now is the time to reimagine the future.
One simple unanimous decision will help us tremendously: a clear resolve that we don’t want to go back to where we were.
We don’t want to jump back into the same frying pan in the name of recovery. We should not even call what’s next a “recovery.”
What should matter most as we create the future? Let’s put social and environmental consciousness firmly center stage for all decision-making.
Pursuing this offers the possibility of an economy that unleashes creativity, honors human dignity, celebrates the planet’s ability to sustain life and engenders happiness.
Governments’ efforts should concentrate on those measures that provide maximum social and environmental benefit to society. Future public policy ought to reflect our vision for the kind of world we want. And importantly, businesses will play a key role in achieving social purpose.
As we reimagine the future economy, I propose that we harness the engine of business to achieve social purpose. Let’s call this social business.
A social business seeks to maximize social benefit. It is a business created to solve people’s problems and address their needs. It is not a nonprofit, but it doesn’t enrich investors either. With whatever profit it generates, investors recoup their original investment and then all subsequent profits are plowed back into the business to create additional social benefit.
Encouraging social businesses doesn’t displace government programs that are needed urgently right now. And social businesses will take time to come to fruition and reach scale on par with the impact they can have.
To speed up the entry of social businesses, governments could create Social Business Venture Capital Funds. Special stimulus funds could be allotted to those wanting to take small businesses and transform them into a social business.
“If we fail in our response to this crisis and squander the opportunity, we will be heading for a calamity that is many times worse than what the coronavirus brought. This is our chance.” — Muhammad Yunus
Traditional companies could be encouraged to become social businesses themselves, take in social business partners, or establish a fund to seed the emergence of such ventures.
Social business investors and entrepreneurs are everywhere. Too often we don’t see them because economic textbooks don’t recognize their existence. Economics has become a science for profit maximization. But now is the time for an economics that can deliver a new future for capitalism. These investors and entrepreneurs exist all over the world.
Already there are giant multinational companies like Dannon, big social business funds, many talented CEOs, foundations and others with many years of experience in financing and running global and local social businesses.
Hardcore personal-profit makers have plunged into social business and found it uniquely rewarding.
We must act fast and design our plans right now, even while we are in the thick of the crisis. When the crisis subsides, there will be a stampede of old ideas. Strong cases will be made to derail the new initiatives. Some will protest untested policies. Others will merely seek the familiar. But now is the time for boldness. Let’s reimagine what’s possible and redesign our world.
If we fail in our response to this crisis and squander the opportunity, we will be heading for a calamity that is many times worse than what the coronavirus brought. This is our chance.
Muhammad Yunus is a 2006 Nobel Peace Laureate and the founder of Grameen Bank.