#Crimea: The Purpose Economy

The following extract derives from a development strategy proposal written from Simferopol, Crimea in 2003

In 1996, I wrote a position paper for the Committee to Re-elect the President (US.) The paper broke new ground in matters worth mentioning here.

Overall was a warning about leaving more than a billion people in the world to live in poverty. Poverty is a dangerous human condition, and will rarely endure long before explosive consequences result.

One key point of the paper was that we are now entering only the third age of human civilization in recorded history. The first age was agrarian, where agriculture was the primary method of economic sustenance. This phase of human development allowed people to end nomadic lives of hunting, gathering, and always on the move from one place to another for the purpose of survival. We learned to plant crops, cultivate fields, domesticate animals, and settle in one location to grow food and take care of basic physical survival needs. Once past the need to constantly move around to seek food, we were able to settle down and create more permanent living situations. This in turn allowed the first villages, the first permanent fixtures that gave rise to all of human civilization. This phase continued through most of our history, gradually being refined and improved such that we developed towns, small cities, larger cities, and ultimately, empires. Larger cities and empires were relatively recent developments, within the past five thousand years.

Then, about three hundred years ago, a revolution took place which ultimately transformed human civilization around the world. This was second phase of civilization, the Industrial Revolution born from Western culture. Machines were invented and developed to do much of the production work required of men or animals for thousands and thousands of years. New machines were created to make clothes, plow fields, reap crops, process food – and of course make war. The Industrial Revolution created the Industrial Age, in which many of us and our ancestors have lived for at least three centuries. It allowed the development of larger cities, new nations, the disappearance of old empires and creation of new ones. It also created considerable culture shock regarding news ways of life as contrasted with how we lived for thousands of years prior.

During only the past thirty years, another revolution has begun. This is the Information Revolution, the third phase of civilization, now giving rise to the Information Age. This age is characterized by rapid, efficient exchange of information as being the basic economic factor for human survival, whether individuals or nations. Any person or group of people excluded from access to common information will be at a disadvantage serious enough to be a risk to survival. Further, the Information Age is, by its very nature, highly technical. The education and training required to participate may be beyond the grasp of billions of people in the early phase, leaving them at serious economic disadvantage. Thus some people can be excluded from the emerging Information Age, and we come to the problem of the digital haves and have-nots. Those who have access and opportunity to participate in the Information Age can expect a much higher chance of survival than those who do not have such opportunity. Following my 1996 paper, this concept became known as the “digital divide”, a problem to which the US has now addressed tens of billions of dollars.

A second key point was the consideration of what will happen with those people who are excluded from economic development, doomed to live in poverty with little hope of escape. In the Industrial Age, the agrarian economy did not simply disappear. In the Information Age, the agrarian and industrial economies will not simply disappear. Agrarian, industrial, and information economies will co-exist because all are integral to our collective survival. Still, agrarian and industrial economies will recede to secondary importance as measured by level of income, and those who must rely on the older economies for income will be comparatively worse off than those in the leading economic system, information.

In order for economic development to take place in any given location, the very first thing required, before anything else can possibly happen, is information. This information includes first and foremost where to look for the necessary resources to do anything. If new businesses are needed, knowing they are needed and finding funding for them are two very different things. The first step is to locate possible capital resources in order to move forward, and this step is no more and no less than information. Once resources are located, the next step is what terms and conditions are involved in obtaining those resources -- more information. Once this is known, paperwork must be completed, business plans made, market research and due diligence conducted, and all of this compiled and forwarded to the appropriate parties. Again, nothing more than information. In fact, most of the work involved between identifying a need and solving the problem is information acquisition and management: getting and developing information. Neither agrarian nor industrial economies are possible otherwise. Fast, reliable and efficient exchange of information is essential. Information has now become a critical factor in determining whether any business or economic activity succeeds, or fails. Information and technology specialists are essential to keeping information flowing, and their value is such that they are generally paid more money for work than agriculture or industrial workers. Information workers manage symbols: writing computer programs, compiling and analyzing numbers, and so on. This is the life blood of national economies and the global economy. Nations with inferior information and communication systems suffer more economic difficulties than those with superior systems.

So the question arises: what happens to those people left out of the information world? Even agrarian and industrial economies are becoming more and more dependent on efficient communication and information. Technology has improved the efficiency of both those economies by replacing human workers with machines. Possibly these displaced workers simply are not needed, nor those people who are already excluded from the information world. Possibly the world can get along just fine with a billion less people. All of us are not needed for a sustainable global economy. In fact, a sustainable global economy can probably be achieved more easily with a smaller human population. In which case, the question arises: who will be disposed of? Are human beings disposable?

This is a tricky question. Except in the case of self-defense, if for any reason we answer "Yes", regardless of what that reason is, we are in effect agreeing with the proposition of disposing of human beings. Whether disposal be from deprivation or execution, the result is the same for the victim. If we agree that sometimes, for some reasons, it is acceptable and permissible to dispose of human beings, actively or passively, the next question is "Which people?" Of course I will never argue that one of them should be me, though perhaps it should be you. You respond in kind, it cannot be you, but maybe it should be me. Not only can it not be you, it also cannot be your spouse, your children, your mother or father, your friends, your neighbors, but, maybe someone else. Naturally I feel the same way. Maybe we come to an agreement that it shouldn't be either you or me, or our families and friends, that can be disposed of, but perhaps someone else. While we are debating this -- passionately and sincerely, no doubt -- a third party comes along and without warning disposes of the both of us, or our families, or our friends. And there is the trap we have fallen into, because whether or not we approve of our or our families' and friends' demise is irrelevant. It is fair because we accepted the principle of human disposability. We just didn't intend that it be us who are tossed, but if we or our families and friends die, it is in accordance with principles that we ourselves have accepted and so must live and die by.

Once a nation or government puts people in the position of defending their own lives, or that of family and friends, and they all will die if they do nothing about it, at that point all laws, social contracts and covenants end. Laws, social contracts and covenants define civilization. Without them, there is no civilization at all, there is only the law of the jungle: kill, or be killed. This is where we started, tens of thousands of years ago.

By leaving people in poverty, at risk of their lives due to lack of basic living essentials, we have stepped across the boundary of civilization. We have conceded that these people do not matter, are not important. Allowing them to starve to death, freeze to death, die from deprivation, or simply shooting them, is in the end exactly the same thing. Inflicting or allowing poverty on a group of people or an entire country is a formula for disaster.

These points were made to the President of the United States near the end of 1996. They were heard, appreciated and acted upon, but unfortunately, were not able to be addressed fully and quickly due primarily to political inertia. By way of September 11, 2001 attacks on the US out of Afghanistan – on which the US and the former Soviet Union both inflicted havoc, destruction, and certainly poverty – I rest my case. The tragedy was proof of all I warned about, but, was no more tragedy than that left behind to a people in an far corner of the world whom we thought did not matter and whom we thought were less important than ourselves.

We were wrong.

Copyright Terry Hallman People-Centered Economic Development 2003 - From a Proposal for Economic Development for the Tatars of Crimea

P-CED established in the UK as a profit-for-purpose business the following year: The new 'bottom line' was to put human needs before profit:

Re-imagining capitalism - the new 'bottom line'

I read more recently of the Purpose Economy

"The agrarian economy lasted 8,000 years. The industrial economy dominated for 150 years. The information economy emerged 50 years ago. What will be next? In his new book, The Purpose Economy, leading social entrepreneur Aaron Hurst predicts that purpose will supplant information as the core driver of our economy, exploring everything from how to move markets in the Purpose Economy to maximizing purpose in your career."

Already there are 100 lectern clinging experts in this Purpose Economy which is already taking to the lucrative conference circuit  

In stark contrast, the pioneers are left for dead, along with those they fight for.

"Whether these kids live or die, is of little. if any, concern to Mafia "

The letter in which this comment may be found, calls for support for a 'Marshall Plan' and was sent to USAID and the Council on Foreign Relations in February 2008, when the latter was chaired by Joe Biden and Barack Obama was a member. It ended:

"Thank you for your time and attention to this. I and others will look forward to hearing from you. I hope we continue to realize ever more fully that outside the box and inside the box have only a box in the way. We outside the box know quite a bit of what’s going on, many times in exquisite detail, perhaps in ways that those inside the box can’t quite as easily access if at all. We are grossly underfunded in favor of missiles, bombs, and ordnance, which is about 100% backwards. Now, with even the US Pentagon stating that they’ve learned their lesson in Iraq and realize (so says top US general in Iraq ten days or so ago) that winning hearts and minds is the best option, I and others shall continue to think positive and look for aid budgets and funding spigots to be opened much more for people and NGOs in silos, foxholes and trenches, insisting on better than ordnance, and who understand things and how to fix them. We can do that. We can even do it cost-effectively and with far better efficiency than the ordnance route. Welcome to our brave new world. Except it’s not so new: learn to love and respect each other first, especially the weakest, most defenseless, most voiceless among us, then figure out the rest. There aren’t other more important things to do first. This message has been around for at least two thousand years. How difficult is it for us to understand?"

How difficult indeed,