Shift to a New Model of Capitalism

I don’t usually post on my blogs on Sundays. Not out of any religious sense. Just out of a sense that I don’t want to add to anyone’s reading list on what I hope to be a day of rest.

But today is different. I have been reading more and more people saying that this is a new moment. Wanted to weave the threads together.

Earlier this week, I read a blog post entitled “The New Capitalism” that referenced this document by Robert Peston on a BBC News blog:

Capitalism is changing in fundamental ways. For many years to come, what’s happening will affect the relationship between business and government, between taxpayers and the private sector, between employers and employees, between investors and companies.

Arguably the global economic crisis will turn out to be more significant for us and other developed economies than the collapse of communism.

A New Capitalism is likely to emerge from the rubble. And although it’s impossible to be precise about how the reconstructed economy will operate, parts of its outline are taking shape. What lies ahead can be determined from an understanding of what’s gone wrong with the existing model.

Thomas Friedman summed it all up in his column this morning in the New York Times, quoting Paul Gilding:

Gilding says he’s actually an optimist. So am I. People are already using this economic slowdown to retool and reorient economies. Germany, Britain, China and the U.S. have all used stimulus bills to make huge new investments in clean power. South Korea’s new national paradigm for development is called: “Low carbon, green growth.” Who knew? People are realizing we need more than incremental changes – and we’re seeing the first stirrings of growth in smarter, more efficient, more responsible ways.

In the meantime, says Gilding, take notes: “When we look back, 2008 will be a momentous year in human history. Our children and grandchildren will ask us, ‘What was it like? What were you doing when it started to fall apart? What did you think? What did you do?’ ” Often in the middle of something momentous, we can’t see its significance. But for me there is no doubt: 2008 will be the marker – the year when ‘The Great Disruption’ began.

You might recall my earlier post about Michael Mandel talking about the shift to the Intangible Economy, which talked about “the moment of truth.”

Whatever you call it, I do believe we are at an important moment, one of great opportunity. And I know that improved understanding of the economic and business implications of intangibles is part of the solution.