The current financial crisis is mirrored in a crisis in the worldâ??s social institutions.
Shaped as siblings to the post war financial institutions, both first world welfare and third world development approaches are under threat: unaffordable, unable to meet the needs of billions, unable to tackle the deeper challenges of our century.
We have a once in a generation opportunity. From climate change to demographic change, from health to water, what is needed is a very different set of arrangements, which start from a local, person centred perspective, building a new set of capabilities, drawing on a wider set of resources and supported globally by a very different set of institutions.
Five shifts would make this possible. Each starts from the current post war paradigm and builds on the opportunities presented by technology, science, social innovation and new financial thinking already taking shape in many parts of the world.
From: A Needs Based Approach to A Capabilities Framework
First world public services and third world development approaches remain rooted in narrow definitions of need, a process that is negatively self-perpetuating as categories become a system of self-belief. This model must now be inverted to emphasise the assets of individuals and communities, and how these might be developed as positive capabilities. Three are proposed: the capability to form relationships; to work and to learn; to create sustainable environments.
From: Targeted Interventions to Openness
The nature of the challenges we face demands universal, preventative services, open to mass contribution as well as mass use. Limiting service use through targets is expensive (assessment uses up to 80 percent of the resources available in some EU contexts) and rarely reaches those most in need. From obesity, to sanitation, from ageing to climate change an aspirational approach is needed to encourage mass behaviour change. Inverting current logic, new approaches must encourage mass use to achieve positive social outcomes and prevent high cost palliative models.
From: A Financial Focus to A Resource Focus
Current systems are designed around narrow financial definitions. From London to Porto Alegre, Brazil new approaches are combining public, private and voluntary contributions; expanding a financial focus to include social contributions, thus expanding the resources available, to support communities globally.
From: Centralised Institutions to Distributed Networks
Current welfare and development models operate on highly centralised principles. It is now widely accepted that problem solving depends on combining local knowledge with expert technical know how. Fostering this collaboration depends on distributed institutions, which can radically change the nature of the relationship between the state and the individual, encouraging participation. This century must challenge ‘big infrastructure’ mindsets, investing instead in distributed networks and platforms, which can foster a citizen led approach.
From: Individual to Social Networks
It is increasingly understood that our lives are determined by our social networks: strong social bonds result in longer lives and healthier societies. This is a deep challenge for welfare and development institutions: responses need to be based around social networks – kinship and friends, as opposed to individuals – and designed to support, not supplant these informal bonds.
This article is published in partnership with the World Economic Forum