Read our full vision paper here.
Many recognize the need to reconstruct the economy in a way that can bring prosperity to all, now and in the future, by simultaneously generating material wealth, health and conserving nature. Until now, this reconstruction captured the need to transform the economy to address key long term challenges – hunger, poverty, inequality – and avert long term crises – including climate change and biodiversity loss.
Before COVID-19, reconstruction was important and urgent but still optional. The COVID-19 pandemic has left the economy so damaged, that it needs to be reconstructed with massive government intervention. In addition, it shows the need for an economy that is much more resilient in the face of the accumulating crises we already face and the new challenges the 21st century will bring.
We believe the answer lies in realizing an impact economy, a market economy that provides the values, information and incentives that optimize the common good and enables people to pursue their own preferences, ideas and projects to satisfy their needs and have a positive impact on society.
A fast rising number of social enterprises, impact investors and traditional businesses are paying attention to their impact on society and aim to use their business models and investment for the common good. The challenge is how to upscale existing practices and movements to a systemic level. To realize the impact economy, we need to broaden the group of businesses that aim to realise impact and deepen the integration of impact into businesses. This requires developing the enabling institutions:
- A culture that provides shared purpose and values of an impact economy
- A cohesive architecture for the impact economy
- Universal and standardised measurement, valuation and reporting of impact
- Availability of high quality and preferable real-time information and data on impact at low cost
- Government regulation and policies that require transparency and incentivize positive impact
The COVID-19 pandemic is a human tragedy in terms of lives lost, destroyed and diminished that nobody has wanted. Given that is has happened, we should use this window for change to rise from the ashes wiser and stronger, as a Phoenix. We invite you to join us in building an impact economy.