New economies

Our enterprises owe a large part of their efficiencies and profitability to economies of scale and replicated structures.

We have shaped the world and ordered it's resources to meet these needs, and so far we have had relatively few problems.

We have however, been ignoring the externalities that do not appear on the balance sheet - environmental and social factors.

These place more finite limits on our activities than our bankers and financiers. Water or power shortages, civil unrest and an unpredictable climate can play havoc with the most carefully planned supply chain.

A downturn ithe conomy is seen as very bad news for business, and society on the whole. No value is ever placed on the 'services' provided by the planet, such as clean air and a steady climate, so we have no idea of what we are currenlty losing and how much it may it will cost us in real terms in the future.

As resources become scarcer and wage costs rise we need to look beyond mere economies of scale to create value for our shareholders.

It is only by looking for new ways of doing business that are globally profitable but locally and environmentally adapted that we can continue to operate successfully in the long term.

It is time to get wise to these new opportunities, partnerships and resources before our competitors do.

Submitted by inanna on Thu, 2005-08-04 11:43.