Saturday, September 21, 2013

Sustainable capitalism

The number and complexity of Human value-chains and "techno-ecosystems" surrounding humanity driving its daily operations is increasing. Through these, capitalism triggered replacement of nature's ecosystems, making multiple life-forms extinct. Food, the final frontier for mans dependency on nature will begin to be produced in factories shortly further accelerating this process till only humanity and its techosphere alone survive - impact on society and environment be damned. Oh! God forgive humans. They know not what they do.

Adam Smith and his followers taught us that selfishness operating through markets allocates natural resources to present and future needs of humanity. But the greed of empire-builders does this in unsustainable ways due to focus on here and now totally ignoring the impacts on far and later. The short-termism promoted by stock markets is incrementally destroying the stability of natural equilibria resulting in increasing frequencies of natural disasters. But nay-sayers are seen opposed to "progress" (as many understand it).

Capitalism's value-chains and "techno-ecosystems" are not even able to allocate natural resources to present and future needs of humanity in an equitable and fair manner yet. But voices asking for yielding of further power to the markets seem to grow stronger despite this. Supermen (Kings), Committees of smart men (Communism), Invisible hands (Capitalism) have failed to provide a system for managing this allocation in a fair and equitable manner. But humanity is wedded to antiquated institutions like nation-states (whose flimsiness is visible in the volatility of exchange rates and related havoc) and ineffective multi-lateral institutions like IMF, UN, etc. Should'nt this be the first item to change about the world? Maybe we need an fair and equitable algorithm to do the allocation.