Why Today’s Problems Could Get Worse, and What We Might Do About It [Part II of III]

Getting capitalism and democracy working for all

Photo by Yarenci Hdz on Unsplash

Introduction

Today’s private progress has coincided with growing public peril.

We can break this phenomenon down.

Part II: Framing the Solution Space

In general, public outcomes are driven by incentives, capabilities, and power relationships among individuals, firms, and government.

Coupling individuals’ incentives more tightly with the global public good would be the single most effective and principled way to better address global issues.

Coupling individuals’ incentives with achievement of the global good could also reduce firms’ problematic and growing power over government, addressing both issues in a single stroke.

Appendix A: Game Theoretic Representation of Emerson’s Power-Dependence Dynamics

Illustrative model parameters

Model solution

Things to note in this model

Appendix B: Framework of Political-Economic Parameters Predicting Pursuit of (Public) Outcomes

Key parameters predicting pursuit of the public good

Appendix C: Populated Framework of Political-Economic Parameters

Key parameters predicting pursuit of the public good, populated

Notes:

Global strategy & governance professional in financial services, former regulator of “vices.” JD/MBA (Toronto), MSc Economics (LSE).

Global strategy & governance professional in financial services, former regulator of “vices.” JD/MBA (Toronto), MSc Economics (LSE).