Creativity is the New Economy

And that is the last thing bankers will understand.

Economists are theorist. Bankers are bureaucratic. New economy has to be revolutionised. And being very creative is the only way.

Now the years of virtual trade will soon be over. Speculations is the crucial idea of stock market and financial market that will soon destroying those market itself, if not has been destroyed already. The world is collapsing because of trade that lack fundamental structure of demand and supply. Greed has, until recently, become a formality to capitalism and failed. Fortunately, the system is too large and too complex to be sunken by the time this sin. Even the slow down already suffered it deadly. It will be a while until the system will be fully recovered from this turmoil that disrupted the economic flow. And it will be a while also for us, human, to forgot about it and begin to be overwhelmed with greed again.

Stimulus plans has been disseminated widely in a hope to quickly initiate the flow into its previous pattern. It will be such a waste since the river will soon no longer be there. The river is on the verge of transforming into several brooks. Mass market and the notion of “market” as we know it will soon be history. An effort to deliver the flow by quantity of liquidity will fail. We are witness a important phase transition of world economy system. It is the beginning of New Economy and the collapsing of the Old Economy.

The key to this resolution is controlled liquidity. although we might need a large amount of water to fill the rice field but that amount of water is demanded to be slowly regulated, not too fast and not too much. Otherwise, the rice will all drowned or we will soon run out of water. The water is required to be carefully regulated into the sub field and ensured that the amount of water is fully worth the spending, not too much and not too less. It is easy but too risk to be fast. More difficult is to be clever and slow.

But the most important issue is that we must have a rice field and the sub field that works. Even though the water is necessity but dying plants can not survive with water alone. Farmers need to replant the rice, old and new. Perhaps also they need to find alternated kind of plant that will survive in this different situation and stronger in the future draught.

Creativity establishes business systems and several business system evoke economy. There is no way to discuss about economy in such a society that lives without business. Business that derives from creative initiations usually bring diversity to the economic system. Earlier, only 10% of diversity is perhaps enough for the system. The majority 90% is mere a monotonous competition as we know a mass consumption.

But why we have to be more creative than we have ever been before.?

Because we start to get stuck. Normal monotonous business can not provide enough diversity of supply to our present day’s demand. The old economy can not roll over for the new market which consists of 4.5 billion population. Most of the famous and dead philosopher in economics lived between 1900-1960, of when the world consisted of less than 2 billion people at the time. Most of famous living philosopher in economics lived on the dead ones’ thinking. That is perhaps why we are having such a great problem.

Greater population has gradually change everything. Referring to the Thermo-Dynamic Universe, increasing of dynamic molecular population encourage the phase transition. This change the water from liquid stage into steam. World population is not only increasing its amount but also its speed. The market became so fluid with the help of technology and individuals has become extremely dynamic as it has never been before in the history. Those changes that may need days to evolve in the mid 90s’ can be accomplished in few hours in early 2000. Perhaps this phase transition is setting a new platform of substance stage to this global economics system.

One of the important aspect of the new economy plateau is diversity. One to one market is a norm. Internet allow this to be initiate easily. EBAY is a good example but only a beginning of new thing to come, once the market as we know it will be completely subside. We need products of ultimate diversity for a unimaginable diverse of client. Mass market is dissolving into hundred thousands of small niches. There will be no hope for one product that wins the entire market. The future is thousands of products for thousands of niche sections. The market itself may gradually disappear and the relation of supply to its demand will only be directly through the new medium.

Creativity originates design and design deliver such diversity the future market needs. Only when demand and supply corresponds, then, we can have business.

Banks and financial institutions normally play major role in creating liquidity in the business system. When time comes that liquidity is limited, the size of businesses is also limited as a direct consequence. As the size of businesses get smaller, the higher diversity of business is then required. Only creativity can structure this diverse small business, types and the product itself. Creative business sector will then deliver will 10 fold number of business with 5 times more potential of its diversity. If certain economy can increase creative business sector from 2% to 10%, their total economy structure would change dramatically and correspond to the this new changing global economic system. And survive this phase transition with minimum controlled liquidity.

Only then that they can get their economy across the New Economy threshold.

First published on THINKCRANK.wordpress.com on 22/02/2009 / 20:35

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