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‘How boosting small businesses will help soften disruptive effect of machines’, by Lorenzo Fioramonti, 15.08.2017

GovInn’s Director Lorenzo Fioramonti published ‘How boosting small businesses will help soften disruptive effect of machines‘ in the Business Day.

In the award-winning book Rise of the Robots, futurist Martin Ford argues that automation will lead to widespread job losses, not only in the traditional blue-collar sectors, but also among white-collar workers. Conventional production chains and large industries have indeed invested massively in automation in the past few years. A study by McKinsey shows that many companies recovering from the 2008 financial crisis have replaced retrenched workers with machines, thus leading to “jobless” recoveries.

Read the full article here: https://www.businesslive.co.za/bd/opinion/2017-08-15-how-boosting-small-businesses-will-help-soften-disruptive-effect-of-machines/

“Trump leaves citizens a job to do”, Op-ed on Business Day, 23.11.2016

Lorenzo Fioramonti in his latest contribution to Business Day wrote:

“The election of Donald Trump to the White House has been a cold shower not only to many Americans but also to myriad intelligent individuals committed to social transformation and justice the world over. Many know very well that the mainstream neoliberal approach to economic development and politics, as well as the current version of globalisation, has created injustices and tensions. We also know that political systems, not only in the US, are rigged to favour special interests, corporate giants and lobbying, which often is the euphemism for legalised corruption. Yet we found it paradoxical that a man who embodies the most vicious aspects of global capitalism and a natural disrespect for social welfare and the working class can be viewed as the man of change.”

Please read the whole contribution here.

 

2015 Africa Prosperity Summit: “Promoting Wealth and Wellbeing”

Legatum InstituteAn interesting event for those who, like us at GovInn, are researching new economic governance.
The 2015 Africa Prosperity Summit: Promoting Wealth and Wellbeing, promoted by the Legatum Institute with the support of the Ford Foundation, is taking place in Dar Es Salaam, Tanzania, on 20-21 May 2015.

 

The conference will focus on four key themes:

  • How data can promote shared prosperity
  • Stoking African innovation: ways and means
  • Business values for prosperity
  • Personal safety and national prosperity

Keynote Speakers

  • Zeinab Badawi, Chair of the Royal Africa Society
  • Marieme Jamme, CEO of SpotOne Global Solutions
  • David McGinty, Team Manager of Human Development Innovation Fund

Registration closes on 20 February 2015.
For more information on how to take part in the summit check the Legatum Institute website

About the Legatum Institute

The Legatum Institute is an international think-tank and educational charity. Its aim is to promote prosperity by revitalising capitalism and democracy. The Legatum Prosperity Index, our signature publication, ranks 142 countries in terms of wealth and wellbeing.

Redistribution the only way to stop the downward spiral – Business Day 21.01.2015

Business Day 21.01.2015This week on Business Day, South Africa’s leading business newspaper, GovInn director Lorenzo Fioramonti -drawing conclusions on Piketty’s research – discusses why redistribution is the only way to tackle inequalities in South Africa and worldwide: will the WEF listen?

“One does not need a doctorate in economics to recognise that SA is one of the most unequal societies in the world. We see it every day, when we drive through our cities and across the country, when we go shopping or take our kids to school.

While inequality is a fact of life (we are different people, with different capacities, interests and aspirations), it becomes a social malaise if it exceeds certain levels. And each society should democratically decide which degrees of inequality are acceptable.”

“Such a level of inequality also reinforces violence, frustration and crime.

In SA and elsewhere, economic growth has been employed as a magic wand to avoid a serious debate on inequality. The belief that the economy can grow infinitely and at a sustained pace has been comforting to the ruling elites, as this means the pie will continue expanding without the need to redistribute its shares.

Indeed, allowing the rich to become richer has been often presented as a precondition for the economy to excel for the benefit of all.

Nowhere has this been as evident as in the justification of the stellar salaries of top managers of private and public corporations.

The reality, however, is that this “trickle-down” vision of economic development is largely a dogma, as Piketty has now confirmed with his data.
Moreover, he finds no correlation between the pay cheques of “super managers” and the performance of the companies they lead.
In his view, the only thing that explains these skyrocketing salaries is the fact that managers can easily influence the scale of their remuneration, often with the support of complacent boards of directors, while common workers cannot.

Read full article on Business Day

Private sector must address challenges of the 21st century

THE Corporate Governance Index 2014, which GovInn released last week in partnership with the Institute of Internal Auditors of SA, provides a worrying snapshot of the state of business performance in SA.

The index finds that the leadership skills, accountability and overall conduct of public and private corporations have worsened over the past year. GovInn director Lorenzo Fioramonti comments on the perilous relationship between economic and political powers on Business Day, South Africa’s leading business newspaper.

If public officials take bribes to favour a few at the expense of the public good, then it is worth asking: where does the money come from? And the answer usually is: from business.

The simplistic juxtaposition between corrupt government and virtuous business does not pass the reality check.

Read the full article here