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Peter McManners T
he world is at the tipping point of massive change as the old politics and out- dated economics of the 20th cen- tury are replaced by the ideology of the 21st century. The detail of this new ideology has yet to be defined in any clear and accu- rate manner, but sustainability must lie at its core as the world struggles to find ‘Green Outcomes in the Real World’. For the tran- sition to commence, it is neces- sary to accept that the old sys- tems are no longer fit for purpose and must be replaced, thus allow- ing the redesign to commence in earnest.
The financial crisis exposed weaknesses
in global finance
sending the economists and cen- tral bankers into closed-door meetings to discuss a way for- ward. The priority has been to restore confidence, and with some success; there are many who believe that stability has returned to the global economy. Bolstering confidence in the system, without tackling the imbalances between debtor and creditor nations, is not a recipe for secure long-term financial
stability. The central
bankers are talking in reassuring tones, but their officials should be working very hard to find a way to fix the flaws in world finance. World politics is also at the start of a transformation. The old guard who have ruled the oil pro- ducing countries of the Middle East is being pushed aside as their own people rise up in the ‘Arab Spring’ rebellion. There is the prospect of greater freedom and prosperity as the old dictators are ousted, coupled with the death of Osama Bin Laden which could signal the end of a decade mired in mistrust between Islam and the West ushering in a new era of dia- logue and engagement. There are grounds for optimism, but also risks as stability is replaced by
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The time is right for optimism that governments will do the right things
concepts of sustainability start to drive political thought.
Will the death of Osama Bin Laden signal a new era of dialogue?
instability. The pessimists argue that the ideology of radical Islam will live on and grow stronger and that a new generation of hard men will take control. It is up to the world to think positively, to sup- port changes for the better and resist retrograde developments. The economy, politics and human attitudes are all in the melting pot for change. The pes- simism that comes from insta- bility and worries over high oil prices could be self-fulfilling and drag the world down with each country protecting its own future as best it can. It is also a time for optimism; the disruption and prospects for change could deliv- er a new world order in which the
The Sustainable Revolution is about multi-faceted complex interconnected change. Action in one area of policy requires a whole series of connected policy changes. Single-issue solutions are hard to find as sustainability is inextricably linked with econom- ics and politics. The financial cri- sis opened a debate on change in the management of the economy; the Arab Spring is opening up the debate of new political structures in the Middle East; the climate crisis is opening the debate about the nature of a sustainable society. This last debate has not got going with much real substance, because threats to the ecosystem are not seen yet as a crisis; but when atti- tudes change, as the predictions of the climate scientists play out in the real world, the ideology that will define of the 21st century can start to coalesce.
For business, there is a limit to the action that can be taken to lead the Sustainable Revolution. Business
leaders can seek to
understand the likely outcomes and position the corporation to exploit the opportunities. Meanwhile, betting on main- tenance of the status quo may deliver good bottom-line figures
in this year’s results; but the focus on results in the short-term will leave corporations vulnerable. The world stage is set for the Sustainable Revolution, as accept- ance grows that change is needed and the change cuts across all areas of policy, politics and man- agement of the economy. I accept that there are other possible scenarios of the future, but these are generally not attractive and some are deeply troubling. This is not a time for pessimism; the time is right for optimism, to assume that govern- ments will do the right things sooner rather than later, support- ed by public opinion moving in favour of investing in sustainable solutions. The big corporations have enormous influence
and
if sustainability is placed at the core of strategic thinking this will alter, not only the business land- scape, but will influence change in the world at large.
Peter McManners is a Visiting Fellow at Henley Business School and author of the books ‘Adapt and Thrive: The Sustainable Revolution’ and ‘Green Out- comes in the Real World: Global Forces, Local Circumstances, and Sustainable Solutions’. >
petermcmanners.com
Sustainable Business | June 2011 | 15
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