"Central Banking in an Era of Quantitative Easing"

This paper compares central banking in the era of Bagehot's Rule (1873) and the current era of quantitative easing (QE) and zero (or near-zero) interest rate policy (ZIRP) to suggest that our analytical frameworks need updating. It also proposes some rules for emerging-market central banks to follow today. Bagehot's Rule—that in a financial crisis, the central bank should lend freely against good collateral, and at market interest rates—can no longer apply in an age when the gold standard has been abandoned, hard budget constraints have disappeared, and the national perspective of central banks limits their ability to regulate a shadow banking system that is global in nature. Central banks in reserve currency countries have used QE and ZIRP because the political will to stem excess consumption and raise taxation is lacking. Central banks in emerging markets might avoid the domestic collective-action traps that the deficit countries have fallen into by applying a systems-wide analytical perspective. This would involve privileging diversity, imposing a strict limitation on concentration, the promotion and regulation of the commons, and increased taxation.Bagehot's Rule; Quantitative Easing; Zero Interest Rate Policy; System-Wide Analysis to Central Banking Policies

Philanthropy: Current Context - Issues, Actors and Instruments

This report attempts to provide an overview of philanthropy and the 'philanthropic ecosystem' that has evolved over the recent decade. Special focus of the report is on international development philanthropy. It is relatively broad in scope and aims to be of use for all practitioners in the fundraising and philanthropy field. However, it cannot claim to be exhaustive and to cover each one of the examined topics sufficiently. Its aim is to raise questions and provide a basis for discussion first and foremost.The special focus on international development philanthropy brings certain challenges with it, as it is a topic that is not easily summarised in a couple of bullet points and conflicting opinions are as present as in any discussion that deals with the interaction of the developed and developing world, and especially the emancipation of the developing world from the 'North'

A Systemic Design Method to Approach Future Complex Scenarios and Research Towards Sustainability: A Holistic Diagnosis Tool

This article aims to frame the role of Systemic Design (SD) as an alternative design model for the future of design for sustainability, by defining and assessing a structured process to execute Holistic Diagnosis (HD), an innovative context framework. Taking as its background a deep understanding of the design for sustainability and systems thinking concepts that frame SD as a field where HD is rooted, multiple case-study analyses were performed. HD demonstrates its ability to overcome the design boundaries in different fields such as industrial production, local communities, and policy-making, thereby providing a more in-depth understanding of complex environments with an iterative process: assess, research, collect, visualize, and interpret. This framework is a relevant tool for designers to address problem framing in complex scenarios to obtain future sustainable solutions with an innovative and transdisciplinary approach, thereby promoting a horizontal dialogue among all involved component

The Global Risks Report 2016, 11th Edition

Now in its 11th edition, The Global Risks Report 2016 draws attention to ways that global risks could evolve and interact in the next decade. The year 2016 marks a forceful departure from past findings, as the risks about which the Report has been warning over the past decade are starting to manifest themselves in new, sometimes unexpected ways and harm people, institutions and economies. Warming climate is likely to raise this year's temperature to 1° Celsius above the pre-industrial era, 60 million people, equivalent to the world's 24th largest country and largest number in recent history, are forcibly displaced, and crimes in cyberspace cost the global economy an estimated US$445 billion, higher than many economies' national incomes. In this context, the Reportcalls for action to build resilience – the "resilience imperative" – and identifies practical examples of how it could be done.The Report also steps back and explores how emerging global risks and major trends, such as climate change, the rise of cyber dependence and income and wealth disparity are impacting already-strained societies by highlighting three clusters of risks as Risks in Focus. As resilience building is helped by the ability to analyse global risks from the perspective of specific stakeholders, the Report also analyses the significance of global risks to the business community at a regional and country-level

Acquisition Warfare: A Proposal for a Unifying Concept

Excerpt from the Proceedings of the Nineteenth Annual Acquisition Research SymposiumThe ongoing debate in the United States over defense acquisition reform highlights the complexity and evolution of the national security ecosystem. That complexity, explored using a first order system dynamic model, indicates that defense acquisition reform may be a so-called “super wicked” problem. Solutions to super wicked problems form a new class of solutions than traditionally found in the literature for defense acquisition reform. This paper asserts that defense acquisition reform is a super wicked problem and that adoption of an ecosystem model from the program office’s perspective will yield new insights into ecosystem dynamics. Additionally, American adversaries, principally China and Russia, have used a variety of tactics and operations in systemic campaigns targeting the liminal space within the defense acquisition ecosystem. This paper proposes the unifying concept of acquisition warfare to better describe the set of adversary actions and how they disrupt the ability of program managers to successfully deliver their programs, not just systems, uncompromised within cost, schedule, and performance constraints.Approved for public release; distribution is unlimited

China and India - a Note on the Influence of Hierarchy vs. Polyarchy on Economic Growth

This note tries to apply two versions of Sah and Stiglitz's "The Architecture of Economic Systems: Hierarchies and Polyarchies" model (SandS) to highlight some important differences between the development paths of India, the largest democracy, and China, the largest of the few remaining communist ruled economies. It argues that the original SandS model is applicable to private organisations but not to governments, to which a revised model is applied. It is the reliability of the government's decisions and the ability of the investor to rely on them that the modified SandS model tries to capture. As a communist country, China is as centralized as a huge polity of its size can be. A decision of the central authorities, a contract or promise confirmed by Beijing, can be relied upon. This provides a degree of security to the investor that his contract will be honoured and she will not be dispossessed. In the Indian federation the investor has to assure herself that all authorities involved agree to support her project, because any agency that has any say may be able to derail it. These differences are accounted for by the adjusted Sah and Stiglitz model. These differences affect not only the total quantity of investments but also their composition. Clearly, no claim is made or implied that the models introduced below provide the explanation for the differences in the development paths of these two Asian giants in the past few decades. They merely add a new perspective to the economic systems dimension of the development process.Hierarchies vs. polyarchies; Indian development; China's development

The role of socio-technical experiments in introducing sustainable Product-Service System innovations

This is the pre-print version of the chapter published in 2015 by Springer in the book “The Handbook of Service Innovation” (edited by Renu Agarwal, Willem Selen, Göran Roos and Roy Green). The final publication is available at Springer via http://dx.doi.org/10.1007/978-1-4471-6590-3_18Product-Service System (PSS) innovations represent a promising approach to sustainability, but their implementation and diffusion are hindered by several cultural, corporate, and regulative barriers. Hence, an important challenge is not only to conceive sustainable PSS concepts, but also to understand how to manage, support, and orient the introduction and diffusion of these concepts. Building upon insights from transition studies (in particular, the concepts of Strategic Niche Management and Transition Management), and through an action research project, the chapter investigates the role of design in introducing sustainable radical service innovations. A key role is given to the implementation of socio-technical experiments, partially protected spaces where innovations can be incubated and tested, become more mature, and potentially favor the implementation and scaling up process

Public Procurement of Innovation Diffusion: Exploring the Role of Institutions and Institutional Coordination

The role of the public agency as a pacer of private sector innovation has been emphasised over the recent years, especially in the context of the EU. The general ambition has been to encourage public agencies to actively stimulate private sector innovation by requesting innovation instead of procuring currently existing products. This has also triggered an increased interest among researchers and practitioners to identify examples of best practice where public agencies have successfully procured innovation. Rather than addressing this demand-oriented perspective this paper focuses on the public agency as an adopter of private-sector innovation, and how this mechanism can contribute to innovation in general. The theoretical point of departure is diffusion theory, with an emphasis on the role of institutions as identified in systemic approaches to innovation studies. A particular concern of this paper is those institutions that hinder or enable adoption of an innovation in an organisational context. The paper draws on an explorative case study looking at the introduction of a new catheter into the English National Health Service supply chain and its diffusion among NHS trusts in England. Different institutional factors are identified which have had an affect on the adoption and diffusion.public procurement; innovation diffusion; institutions; England