Review: Collective Intelligence–Creating a Prosperous World at Peace

5 Star, Best Practices in Management, Change & Innovation, Democracy, Information Operations, Information Society, Intelligence (Collective & Quantum)
097156616X
Amazon Page

Available Free Online, Hard-Copy 12 April 2008, March 20, 2008

FREE ONLINE: http://www.oss.net/CIB

Mark Tovey (ed)

This book is the first of a series of books from the Earth Intelligence Network, a 501c3 Public Charity incorporated in Virginia. As with all our books, it is available free online for inspection, digital search, and Creative Commons re-use at no cost.

We are of course very proud of the hard-copy and of being able to offer it on Amazon, and the 55 contributors, all volunteers, hope you will buy a hard-copy both for its ease of hand-eye coordination and exploitation, and to support our work in creating public intelligence in the public interest.

Here are ten other books I as the publisher personally admire, that lend credence to our proposition, hardly original in concept but uniquely documented in this book, that We the People are now ready to self-govern at the zip code and line item level.

Smart Mobs: The Next Social Revolution
The Wisdom of Crowds
An Army of Davids: How Markets and Technology Empower Ordinary People to Beat Big Media, Big Government, and Other Goliaths
One from Many: VISA and the Rise of Chaordic Organization
Wikinomics: How Mass Collaboration Changes Everything
The Tao of Democracy: Using Co-Intelligence to Create a World That Works for All
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People
Revolutionary Wealth: How it will be created and how it will change our lives
The Wealth of Networks: How Social Production Transforms Markets and Freedom

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Review: The Handbook of Large Group Methods–Creating Systemic Change in Organizations and Communities

5 Star, Change & Innovation, Democracy

Larrge GroupSomething May Be Missing, But World-Class Original Merits Appreciation, March 19, 2008

Barbara Benedict Bunker

I agree with the reviewer who notes that something may be missing (other slices of large group imagination and so on) but what I see in this book is a 5 star original updating the first original work. I am also impressed by the manner in which the author-editors have engaged a total of 49 collaborators.

Despite its size this is an easy to read and appreciate book, and in my own limited experience within this literature, stands in a class by itself.

Key Point: Must recognize and engage ALL stakeholders, including those that may be “external” to “the system” but are either inputs or outputs or victims, etc.

Key Point: This literature has developed from the 1960's focus on the social psychology of organizations, to the social psychology of networks.

Key Point: Many Small Groups = a Large System (susceptible to whole systems methods) = Future Search and Shaping.

Key Point: Real time strategic change is now known as whole-scale change (I am reminded of Kirkpatrick Sale's seminal work, Human Scale

Five methods for planning the future:
+ Search Conference
+ Future Search
+ Whole-Scale Change
+ ICAA Strategic Planning Process
+ Appreciative Inquiry

This book was published before Jim Rough's pioneering work at the Center for Wise Democracy or Tom Atlee's Co-Intelligence Institute. See:
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People
The Tao of Democracy: Using Co-Intelligence to Create a World That Works for All

Large Group Methods (LGM) is very ably presented by the authors and collaborators as being ideal for working with diverse groups that have different cultures, structures, and priorities. I am reminded that we live in a world dominated by pyramidal organizations that still believe in top-down elite “command and control,” and this book is therefore a revolutionary handbook for enabling bottom-up sense-making and localized social resilience.

Key point: whereas the first book focused on methods, this book focuses on challenges, the challenges rather than the methods are driving the practices.

Here are my fly-leaf notes. Some books I read to learn in depth, others I read to learn what I do not know and persuade myself the authors are essential future consultants. This is such a book. In my lifetime I cannot learn what these 49 collaborators articulate so capably.

WIDELY-DISPERSED ORGANIZATIONS
+ Defining and holding the vision
+ Tolerance for Ambiguity
+ Relationship-building

WHOLE-SYSTEM ENGAGEMENT WITH COLLABORATIVE TECHNOLOGY
+ 10% technology, 90% human interaction
+ Higher quality goals and strategies result
+ Faster decision making
+ Rapid global stakeholder alignment
+ Enhanced organizational readiness for implementation
+ New model for governance as well as participation

ORGANIZATIONS IN CRISIS
+ Focus
+ Timeline
+ Openness
+ Involvement
+ Preferences stimulate engagement
+ Seek coherence
– Directional
– Relational
– Task
– Contextual

POLARIZED AND POLITICIZED ENVIRONMENTS
+ LSG methods are more respectful of differences
+ Trust & Transformation
+ Multiple competing interests accomodated
+ Clearing the air
+ Working with tensions
+ Seven Principles
– Focus on common ground
– Rationalize conflict
– Manage conflict
– Expand individuals' view of the situation (beyond egotistic)
– Acknowledge history of group conflict and feelings
– Manage public airing of differences
– Reduce hierarchy as much as possible

COMMUNITIES WITH DIVERSE INTEREST GROUPS
+ Different from organizations, less structured, more ambiguous
+ Need sponsorship and sustainability of effort
+ Need representative planning groups from across the community
+ Skilled facilitators are essential
+ Conclude by recognizing, recording, and tracking commitments

WORKING CROSS-CULTURALLY
+ Be aware of what you do not know
+ Relationship-oriented, NOT “USA Work Before Pleasure”
+ Respect desire to maintain distance and privacy
+ Pace of decisions can be very slow
+ Respect desire to be part of a collective voice instead of an individual on the spot
+ Four Worlds
– North = intellect
– South = feeling
– East = intuition
– West = pragmatic
+ Conversations are for:
– Relationships
– Possibilities
– Action

EMBEDDING NEW PATTERNS
+ Patience
+ Respect self-organizing tendencies
+ Keep it simple

The resource section contains three additional contributions. The middle one, on graphics, captured my attention.

GRAPHICS:
+ Engage participants
+ Focus and ground energy of group
+ Provide space where participants feel heard
+ Bridge cultures
+ Surface unheard voices
+ Provide summative and integrative function
+ Provide continuity and enhance sustainability

I have personally witnessed the effectiveness of graphics at Nexus for Change and Bioneers. It is a hugely impressive technique for eliciting, capturing, and visualizing the disparate contribution of many individual minds. Those who are able to execute this function are gifted.

My eye was also caught by Covision's fast feedback cycle (bottom to top):
+ Ambivalence
+ Awareness
+ Understanding
+ MUTUAL Understanding
+ Alignment
+ Buy In
+ Commitment

The book ends with a reading list (part of what persuaded me it is better to engage these talents than try to replicate their knowledge), short bios of the very impressive collection of 49 collaborators, and a first-class index.

This is an important book. See also:
The Change Handbook: The Definitive Resource on Today's Best Methods for Engaging Whole Systems
The World Cafe: Shaping Our Futures Through Conversations That Matter
How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition
The Cultural Creatives: How 50 Million People Are Changing the World
One from Many: VISA and the Rise of Chaordic Organization
Collective Intelligence: Creating a Prosperous World at Peace

I am limited to ten links. See also Group Genius, Five Minds, Smart Mobs, Wisdom of the Crowds, Wealth of Networks, Revolutionary Wealth, Infinite Wealth, Wealth of Knowledge, Army of Davids, etc.

Review: Biocapital–The Constitution of Postgenomic Life

5 Star, Capitalism (Good & Bad), Change & Innovation, Country/Regional, Economics, Environment (Solutions), Nature, Diet, Memetics, Design, Survival & Sustainment, Values, Ethics, Sustainable Evolution

Amazon Page

Kaushik Sunder Rajan

5 of 5 stars.  Treasure Trove that Ends with USA-India Axis of Good

March 9, 2008

I've been struggling with this book, published in 2006, for months. Today I realized I could combine my notes with a handful of key index entries to create a more useful synthesis. I end with ten other books I have reviewed that augment this one.

My first impression of the book was soured by the absence of any mention of green chemistry, ecological economics, or ecology of commerce. I've known about citation analysis clusters since 1970, but I grow increasingly frustrated by the fragmentation of knowledge and the constantly growing barriers between schools of thought within political-legal, socio-economic, ideo-cultural, techno-demographic, and natural-geographic.

An important early distinction is between industrial-cost for profit capitalism and commercial speculative capitalism. Toward the end of the book I finally encountered the author's emphasis on national priorities, and I for one condemn all seeds that do not reproduce naturally. In agriculture, economy, energy, health, my bottom line is that anything that retards the eradication of hunger, poverty, sustainment, or individual and social health gains, is inherent against the laws of God and man.

Early notes include:

+ Information science plays huge role in genomics. I am reminded of the convergence in the 1990's among cognitive and information science, nano-technology, bio-technology, and earth science. I have a later note, “life sciences becoming information sciences.”

+ Although E. O. Wilson is not cited, the author is on a clear convergence in taking about how valuation is a vital aspect of getting it right. I think of India as IT rich and farm poor–they are allowing the aquifers to drop a meter a year because farmers can sell a tanker-full of water for $4, which is insane, and 2,000 farmers a year commit suicide in the face of drought and debt. Valuation is a critical national function.

+ This work falls within a new category of reading that I have been increasingly impressed by, “ethnographic,” or the study of localities and particularities to map global system that is not generic, homogenized, or blurred..

+ As the author does not cite Paul Hawken or Herman Daly, I draw the distinction between the author's focus on “natural capitalism” as of the privatization of biocapital and the patenting of gnomes, and the purer definition, of natural capitalism as one that understands the true costs over the lifetime of the materials being used including water (4000 liters of water Bangladesh cannot afford to export in a designer cotton shirt), and that makes the case for going green to create gold.

+ The author views biocapital as a combination of circuits of land, labor, and value; and biopolitics.

+ Life sciences are being “overdetermined” by speculative capitalism. I agree, and apart from India's symbiotic relationship with the US, I would like to see India develop a special relationship with Cuba and with the global academic community to take patents away from speculators and carpet bagging profiteers with no morality.

+ Technoscience changing laws (I am reminded that Google is now a suprnational entity that no government understands or regulates, something similar is happening in technoscience where Recombinant DNA technology is undermining the future of life.

+ Political economy is an epistemology.

+ Life, labor, & language–biology, political economy, philology central to the knowledge of and management of humanity.

+ VERY IMPORTANT: Game requires playing in FUTURE in order to stimulate and guide present. Visit Earth Intelligence Network to read about Medard Gabel's EarthGame that for $2M a year can offer this up across the ten threats, twelve policies, and eight challengers, with embedded budgets of all organizations (governments, corporations, international and non-governmental, and charitable foundations).

+ Market valuation buries ethics, defines “allowable” ethics. Author touches, and I really respect this, on the moral value of information. Later on in the book the author cites Michael Fischer on “ethical plateaus.”

+ The author addresses the “social lives” of biological materials and biological information (note: I violently oppose Google's biomedical information initiative–we may as well become their zombies). In this vein, “ownership” of any of the bio-information constrains seamless sharing, enhancement, and I would add privacy. [Easy answer: CISCO AON on individual recyclable server-routers so individuals control all the information–medical, financial, etc. at their point of creation.] If CISCO will not do this, then India needs to.

+ Useful detailed discussion of conflicts & costs of privatized information versus information as a public good. The author makes case for blurring of lines and avoidance of either/or binary approach. I've already solved this: information in the aggregate should be public, while individual instances are private. Simple example: average spare parts costs can be derived from the aggregate while protecting the individual prices paid by any one of the contributors. AON, not Google, is the key.

+ The author emphasizes that the genome data demands robust detailed medical history to be valued. He contrasts India bio-ethics versus US. Sidenote: computational ethics are just as crucial.

+ I like, very much, the India public sector laboratories. I firmly believe that all health and education should be free, a public good similar to public safety.

+ Biocapital is complicated by context, distance, culture, financial, and technical variances among the competing parties.

+ I credit the author with this but I may have drawn it out: if we now see the value of collective intelligence, why are we having so much trouble seeing the value of collective intellectual property (the Creative Commons not-with-standing)?

+ Biopolitics centers of life (citing Foucault), accounting for and taking care of the population at large are central.

+ Political ecologies at all levels, gifting versus indebtedness, unions as a factor. UNIONS as a major factor. Vision fundamental. Direct links among ideology, capital, and locality.

+ Excluded populations (e.g. HIV not eligible…) can cause them to be consumed populations.

This is a deep complicated book hard for the lay reader (which I am), so to do it justice, I am resorting for the first time to a short list of key terms from the index that more represent the content:

belief systems
bioethical issues
biopolitics
biotechnology industry
capitalism, biocapital as new phase
diseases and illnesses
drug development marketplace
economic issues, multiple forms of currency
ethnographic research
genomics bioethics and industry
global market terrains
hype, capitalism
information ownership
intellectual property
life sciences
market value and non-market value
patient-in-waiting
populations, classification of
production issues
promissory biocapitalist futures
public domain issues
research issues
social issues
speed issues
temporality issues
therapeutic development
value access to
vision, commercial value

This is a pretty spectacular book, and someone did a great job across the board in presenting it.

Other books I would recommend:
Ecological Economics: Principles And Applications
The Ecology of Commerce
The Future of Life
Plan B 3.0: Mobilizing to Save Civilization, Third Edition
The leadership of civilization building: Administrative and civilization theory, symbolic dialogue, and citizen skills for the 21st century
How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition
The Wealth of Networks: How Social Production Transforms Markets and Freedom
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People
Collective Intelligence: Creating a Prosperous World at Peace

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Review: The Philosophy of Sustainable Design

5 Star, Change & Innovation, Complexity & Catastrophe, Consciousness & Social IQ, Decision-Making & Decision-Support, Nature, Diet, Memetics, Design, Strategy, Survival & Sustainment, Values, Ethics, Sustainable Evolution

Amazon Page

Can Be Considered “Ref A” or the Prime Directive, March 9, 2008

Jason F. McLennan

I came late to bioneering, after I was inspired by Herman Daly's Ecological Economics: Principles And Applications, Brian Czech's Shoveling Fuel for a Runaway Train: Errant Economists, Shameful Spenders, and a Plan to Stop them All; and everything by Paul Hawkin, but especially The Ecology of Commerce.

I have had an interest in the intersection of global science, sustainable political and social and economic orders, and the vulnerability of the nation-state in the face of growing complexity for some time, and many of my other reviews focus on these literatures, as well as the literatures of collective intelligence, global assemlages, wealth of networks, localized resilience, and so on.

I make mention of that broader literature to add emphasis to my view that this book is one of the most extraordinary I have ever encountered. I made a mistake when I first got it months ago and put it sight unseen into my “hard and dense, save for intercontinental trip.” This book is not hard, not dense, and it is both easy to read and intellectually elegant. I can easily see this book as the single mandatory first year or summer pre-reading at any level–undergraduate or graduate–along with contextual books such as:
High Noon 20 Global Problems, 20 Years to Solve Them
Plan B 3.0: Mobilizing to Save Civilization, Third Edition
The Future of Life
The leadership of civilization building: Administrative and civilization theory, symbolic dialogue, and citizen skills for the 21st century and
Collective Intelligence: Creating a Prosperous World at Peace

The sixteen chapters and five appendices are elegant–concise, clear key points, short, just the right mix of photos (including color in a center spread) figures, and text.

The publisher has been criminally remiss in failing to load the varied items that Amazon allows, such as the table of contents. I am increasingly disenchanted with publishers and of the view that Amazon should get into the book publishing business, sending digital copies to FedExKinko's, helping authors self publish (full disclosure: BOTH Fred Smith at FedEx and Jeff Bezos at Amazon blew me off–these guys are simply not serious about innovation).

Preface: Philosophical Beginnings
Chapter 1: The Philosophy of Sustainable Design
Chapter 2: The Evolution of Sustainable Design
Chapter 3: The Principles of Sustainable Design (Biomimicry)
Chapter 4: The Principles of Sustainable Design (Human Vitality)
Chapter 5: The Principles of Sustainable Design (Ecosystem/Bioregional)
Chapter 6: The Principles of Sustainable Design (Seven Generations)
Chapter 7: The Principles of Sustainable Design (Energy/True Cost)
Chapter 8: The Principles of Sustainable Design (Holistic Thinking)
Chapter 9: The Technologies and Components of Sustainable Design
Chapter 10: Shades of Green–Levels of Sustainability
Chapter 11: Productivity and Well-Being
Chapter 12: Greening Your Organization
Chapter 13: Green Economics
Chapter 14: The Sustainable Design Process–Holistic Thinking
Chapter 15: The Aesthetics of Sustainable Design
Chapter 16: The Future of Architecture
Appendix A: The Green Warrior Reading List
Appendix B: Who's Who in Green Design
Appendix C: The Phases of Green Design
Appendix D: The Elements of Green Design Methodology
Appendix F: The Principles of Sustainable Design–Summary

I put this book down with several thoughts:

1) Enormously impressed with the University of Oregon in Eugene, to the point of trying to get my oldest to take his computer and creative skills there.

2) Profoundly delighted with the deep philosophical underpinning that one finds throughout the book, without pretense or pomposity.

3) The one appendix I would have liked to see that is not there is the one entitles: Green to Gold–Bottom-Line Dollar Savings Over Time, and then a whole range of the elements of sustainable design by climate zone.

This is an extremely satisfying book to read. My last throught: it's time to write the Operating Manual for Spaceship Earth. Read more about this at Earth Intelligence Network. This book by Jason McLennan is a perfect model for what the larger systems book should strive to be.

See also the literatures under panarchy, resilience, sustainability.

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Review: Panarchy–Understanding Transformations in Human and Natural Systems

4 Star, Change & Innovation, Complexity & Resilience, Democracy, Stabilization & Reconstruction, Survival & Sustainment, Values, Ethics, Sustainable Evolution

PanarchyMixed Feelings–Mix of Brilliance and Gobbly-Gook, March 8, 2008

Lance H. Gunderson

On balance, Resilience and the Behavior of Large-Scale Systems (Scientific Committee on Problems of the Environment (SCOPE) Series) is the better book but this one is the thicker heavier more math-laden pretender–the problem is they have their own citation cabal, and while the bibliography is much broader and deeper than the above recommended book, there are too many gaps and an excessive reliance on obscure formulas that I have learned over time tend to be smoke for “I don't really know but if I did, this is the formula.

Also published in 2002, also with 20 contributors, this book lost me on the math. As someone who watched political science self-destruct in the 1970's when “comparative statistics” replaced field work, foreign language competency, and actual historical and cultural understanding, and a real-world intelligence professional, I'd listen to these folks, but I would never, ever let them actually manage the totality.

The book is the outcome of a three year effort, the Resilience Network as they called themselves, and there are some definite gems in this book, but it is a rough beginning. Among other things, it tries to model simplicity instead of complexity, and continue to miss the important of true cost transparency as the product and service end-user point of sale level, and real-time science that cannot be manipulated by any one country or organization (Exxon did NOT make $40 billion in profit this year–that is a fraction of the externalized costs, roughly $12 against the future for every $3 paid at the pump–that level of public intelligence in the public interest in missing from this book).

Page 7, “Observation: In every example of crisis and regional development we have studied, both the natural system and the economic components can be explained by a small set of variables and critical processes.” This rang all of my alarm bells. If I did not have total respect for what the authors and funders are trying to do, that sentence alone would have put this book firmly into my idiocy pile.

I just do not see in this book the kind of understanding of the ten high-level threats to humanity interaction with one another, such as can be seen free online or bought via Amazon, A More Secure World: Our Shared Responsibility–Report of the Secretary-General's High-level Panel on Threats, Challenges and Change, nor do these distinguished practitioners of their own little “club” see the strategic coherence of identifying ten core policies from Agriculture to Water that must be harmonized at every budget level, nor the irrelevance of anything we do unless we can persuade the ten demographic challengers with an EarthGame online that delivers real-time science and near-real-time cost-benefit analysis.

I find several of the authors to be a bit too cavalier in their dismissal of the contributions of economists, ecologists, and others.

Theories of change and next cycles are useful. Concepts of cascading change and collapsing panarchies are good. Log number of people in Figure 4.1 is very good.

In discussing adaptive response to change these learned scholars appear to have no clue of what is possible in delivering neighborhood level granularity of data for online social deliberation and models for gaming. There are early light references to deliberative democracy, but right now these folks have models in search of data in search of players. I did like the discussion of the larger model for levels of discourse, but WikiCalc and EarthGame are a decade ahead of this book's contents (which I hasten to add, was started in 1998 and published in 2002).

Table 11-1 on page 310 was so useful I list its row descriptors here, Factors and Adaptation and Possible Effect on Resilience (the latter not replicated here.

Factors:
Biota
Diversity-spacial
Diversity-production strategies
Energy sources
External resources
Mental models
Population structure
Savings
Scale
Technology

This is no where near the 10-12-8 model at Earth Intelligence Network, but I see real value here, and the need for a cross-fertilization. The fatal flaw in this book is that they confuse the failure of expertise with the failure of democracy–if we can achieve electoral reform and eliminate the corruption inherent in most governments, and certainly that of the US government which is broken and “running on empty” while every incumbent sells their constituents out to their party or special interests, it would be possible to connect data, change detection, alternative scenario depiction, and deliberative democracy at the zip code level.

Gilberto Gallopin, Planning for Resilience, is alone worth the price of the book, in combination with above and the closing summary, which is also a real value. My final note: too much gobbly-gook (to which I would add, “and no clue how intelligence-policy-budget connections are made and broken.

The key to eradicating the ten high level threats to humanity, among which environmental degradation is number three after poverty and infectious disease, is not better science–it is better democracy, participatory democracy, combined with moral capitalism. Below are a few titles to help make this point.

These 20 contributors are all part of a future solution, but they cannot be allowed to drive the bus.

See also (apart from my many lists):
Running On Empty: How The Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It
Breach of Trust: How Washington Turns Outsiders into Insiders
Vice: Dick Cheney and the Hijacking of the American Presidency
The Battle for the Soul of Capitalism
Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage
The Philosophy of Sustainable Design
The New Craft of Intelligence: Personal, Public, & Political–Citizen's Action Handbook for Fighting Terrorism, Genocide, Disease, Toxic Bombs, & Corruption
Collective Intelligence: Creating a Prosperous World at Peace

Review: Here Comes Everybody–The Power of Organizing Without Organizations

5 Star, Change & Innovation, Complexity & Resilience, Consciousness & Social IQ, Democracy, Intelligence (Collective & Quantum)
Here Comes
Amazon Page

Five for Synthesis & Explanation, March 2, 2008

Clay Shirky

I was modestly disappointed to see so few references to pioneers I recognize, including Stewart Brand, Kevin Kelly, Joe Trippi, and so on. Howard Rheingold and Yochai Benkler get single references. Seeing Stewart Brand's recommendation persuaded me I don't know the author well enough, and should err on the side of his being a genuine original.

Certainly the book reads well, and for someone like me who reads a great deal, I found myself recognizing thoughts explored by others, but also impressed by the synthesis and the clarity.

A few of my fly-leaf notes:

+ New technologies enable new kinds of groups to form.

+ “Message” is key, what Eric Raymond calls “plausible promise.”

+ Can now harness “free and ready participation in a large distributed group with a variety of skills.”

+ Cost-benefit of large “unsupervised” endeavors is off the charts.

+ From sharing to cooperation to collective action

+ Collective action requires shared vision

+ Literacy led to mass amatuerism, and I have note to myself, the cell phone can lead to mass on demand education “one cell call at a time”

+ Transactions costs dramatically lowered.

+ Revolution happens when it cannot be contained by status quo institutions

+ Good account of Wikipedia

+ Light discussion of social capital, Yochai Bnekler does it much better

+ Value of mass diversity

+ Implications of Linux for capitalism

+ Excellent account of how Perl beat out C++

Bottom line in this book: “Open Source teaches us that the communal can be at least as durable as the commercial.

Other books I recommend:
Out of Control: The New Biology of Machines, Social Systems, & the Economic World
Tools for Thought: The History and Future of Mind-Expanding Technology
The Virtual Community: Homesteading on the Electronic Frontier
Smart Mobs: The Next Social Revolution
The Revolution Will Not Be Televised : Democracy, the Internet, and the Overthrow of Everything
The Wealth of Networks: How Social Production Transforms Markets and Freedom
Wikinomics: How Mass Collaboration Changes Everything
Group Genius: The Creative Power of Collaboration
Blessed Unrest: How the Largest Movement in the World Came into Being and Why No One Saw It Coming
Collective Intelligence: Creating a Prosperous World at Peace

There is of course also a broad literature on complexity, collapse, resilience, diversity, integral consciousness and so on.

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Review: Creating a World Without Poverty–Social Business and the Future of Capitalism

5 Star, Change & Innovation, Future, Peace, Poverty, & Middle Class

World Without PovertyOther Side of C. K. Prahalad's Fortune at the Bottom, February 13, 2008

Muhammad Yunus

I realized close to two years ago, after reading C. K. Prahalad's The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits (Wharton School Publishing Paperbacks), that I wanted to be intelligence officer to the poor instead of to a president, and that I needed to create the field of public intelligence (decision support for everyone at no cost). I strongly recommend that the two books be read together. See my review of that book. See also John Bogle's The Battle for the Soul of Capitalism as well as William Grider's The Soul of Capitalism: Opening Paths to a Moral Economy. Natural Capitalism, Capitalism 3.0, Green to Gold, Cradle-to-Cradle, all book titles, are converging with Social Entrepreneurship and Social Business as well as unconventional Global Assemblages.

This book, the last that I read during a power outage lasting most of the day, really rocked me. Apart from the fact that the author has labored anonymously for three decades before being propelled into the public consciousness with his well-served Nobel Peace Prize (a prize that Prahalad should be considered for as well), everything in this book resonates with the path the 24-founders of Earth Intelligence Network have chosen.

The author's Nobel presentation, “Poverty is a Threat to Peace,” is at the back of the book, and has since been validated by the UN High-Level Threat Panel in A More Secure World: Our Shared Responsibility–Report of the Secretary-General's High-level Panel on Threats, Challenges and Change.

The author not only lent to the poor, he lent to beggars at no interest with no schedule, and proved conclusively that the poor and beggars are “credit worthy” by virtue of “being alive.” He also pushed technology to rural areas.

By page xvii I have goosebumps and a glorious feeling that good stuff is happening faster and bigger than most realize.

The author notes early on that unfettered capitalism creates sccial problems rather than solving them. He suggests most compellingly that social business fills a gap left by government, foundations, and multilateral institutions.

While the book is missing a sense of shared information and a global Range of Gifts Table that anyone, from individual to foundation, can use to make precision contributions and interventions, it is very easy to see how this book and Yochai Benkler's book, The Wealth of Networks: How Social Production Transforms Markets and Freedom as well as How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition and all come together with Prahalad's vision and my own of public intelligence in the public interest.

The author recognizes, as Alvin Toffler and others have pointed out, that all of our institutions are failing. I recommend books I have listed and reviewed on how complex societies collapse. I would venture to say that the US Government, with 27 secessionist movements, is collapsing from a mix of political and economic corruption compounded by cultural arrogance, but most importantly, because the government is stuck in the top down elite driven secret information Weberian model, and the government has failed to empower all local communities and all individuals with bottom up resilient adaptable information sharing capabilities.

The bookm draws a stark contrast between the World Bank which measures loans given out, and the Grameen Bank, which measures outcomes at multiple levels including kids staying in school.

As I read about a social business, I envision every village as its own business.

The author addresses and dismisses Corporate Social Responsibility (CSR) as insufficient. He calls for proactive collaborative engagement with potential customers in the five billion poor, and I am instantly reminded of the Business Week cover story of 20 June 2005, on the power of mass volunteer collaboration.

The author focuses on women, mothers, and their children. This tallies with Michael O'Hanlon and Ralph Peters, both of whom regard the education of women as the single best investment bar none.

The author took several steps beyond his pioneering micros-cash loans. He created social networks of those being helped, and he froze payments or interst and did whatever necessary to get defaulters back on track without penalty. This guy is the Mother Teresa of micro-economics!

Today self-help groups of around 20 can apply to the National Bank for Agriculture and Rural Development for group loans.

His integrity is without peer. Interest over the life of the loan would never exceed the loan itself.

He prefers social business to charity because charity encourages corruption (in my own experience, 50% of every AID or contractor dollar goes toward corruption or fraud).

He observes that social business does not have conventional metrics, but it provides meaning and opportunity, and I observe in my own note, it lowers the “true costs” of virtually everything it touches.

Featured in this book, the middle half, is the French company Danone, and the joint venture to create a yogurt for the poor children, ultimately being delivered in a bio-degradable cup that converts into fertilizer.

The last chapter is on information technology for the poor. I personally envision free cell phones for each village, then for each neighborhood, and finally for each household, monetizing the transactions and the real-time knowledge.

The author concludes that we need new social value metrics and even a Social Dow Jones Index. This is the opposite of what I have been thinking about ever since Paul Hawkins taught me about “true costs.” Now that Scanback allows a person at the point of sale to photograph a bar code and send it to Amazon to get their price, the channel is open to send back water content (4000 liters in a designer shirt from Bangladesh cotton), fuel content, child labor hours, and tax avoidance status).

The last note is one I want to present to a Fortune 50 Assets Management firm. Danone is to be admired and respected for committing to a sccial business, and it found a solution that permitted it to engage without letting down its investors: it created a new fund explicitly advertised as 90% traditional and 10% social business, and it was over-subscribed instantly.

On page 25 are listed 25 distinct Gameen companies. On pages 58-59 are Sixteen Decisions that alone warrant the Nobel Peace Prize. What these sixteen decisions do for the beneficiaries of micro-cash loans is nothing less than a socially-inspired form of the Ten Commandments, focused on creating health people in a healthy family within a healthy community.

A few other exceptional books:
The leadership of civilization building: Administrative and civilization theory, symbolic dialogue, and citizen skills for the 21st century
How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition
Society's Breakthrough!: Releasing Essential Wisdom and Virtue in All the People

I am increasingly uncomfortable with the fact that all the books I am reading and reviewing are in English. I have read a few in English stemming out of India and elsewhere, and I am beginning to feel a very deep vacuum that needs to be filled. I envision 100 million volunteers using Telelanguage.com to educate the poor one cell call at a time, but I now also see an urgent need to translate and make available non-fiction literature in other languages, easily retrievable in micro-text for micro-cash.