Davos-Klosters, Switzerland, 25 January 2019

With the 49th World Economic Forum in Davos-Klosters, Switzerland, closing today, it is evident that world leaders are seeking a better understanding of what the Fourth Industrial Revolution means, and the implications it will have on today’s economy. But, the reality is that the focus, in a roundabout way, is really tomorrow’s economy, and how it can be redesigned with a holistic approach in mind. The 20th Century top-down business approach, and the use of an economy’s GDP as a performance yardstick is already outdated, and what governments, world leaders and global influencers are considering is how they can reshape the economic structure so as to be inclusive, and cognizant of both the positive and negative external impact of economic activities. The current model is proving to be grossly inefficient, and lacks the faculty to address the merging crises such as environmental degradation, resource depletion and scarcity, exclusivity, rising inequality and mass migration that accentuates the current system’s unsustainability. In today’s economy, the disparity between the wealthy elite and the poor is far greater than it has ever been, with economic activities that involve the commercialization of natural resources and selling them off to the highest bidder with little to no regard for the long-term consequences. There is still a drive to improve economic growth for the benefit of the few, and to the detriment of the many. However, proposals for an adaptable, integrative and empowering economy have already been brought to the table. The objective is to have an economy that operates the way a network would, connecting people and organizations laterally, rather than vertically, and turns the passive consumer into the ‘prosumer’, someone who is integrated, empowered and who has control over the contribution they make to an economic ecosystem. The big question is whether or not world leaders, and global game changers are willing to invest in a transition from an outdated, and harmful, economic system, to a system that facilitates the nurturing of human and environmental well-being. The Inclusive Wealth Index is a tool developed by the United Nations and takes into account human and natural capital as the real global wealth driving development, which the GDP does not consider. The reductive category of “job” has been traditionally considered as roles which only create monetary value, but a new economic system take into consideration not only the monetary value of the individual’s activities, but also the social value proposition for the greater good of society, and the environment, as a whole. It will also acknowledge the importance of activities relating to physical and mental health, as well as integrated households whose economic performance will play a pivotal role in adding to the public good, but also to economic dynamism. The opportunity for the well-being economy paradigm is fast-emerging, and will require not only leadership development for a new wave of economic integration, but also a new way of leadership thinking. Leaders will have to rethink how they conduct business with each other, how their structures and policies impact their immediate and secondary environments, and most importantly, how their new business models and structures support the needs of life. and move away from the singular organizational benefit to how they can better serve their employees and clients as people, with the purpose of facilitating positive economic change. It is the responsibility of leadership, both at the national and organizational level, to reorganize and implement structures that promote an environment in which people, and life itself, can thrive.

“Be the change you want to see in South Africa so that as a collective we can grow our economy, care for our planet and leave the world better off than when we entered it.” Dawie Loots