Yves Bernaert’s Post

Our social innovation work is rooted in theories of the policy environment in Africa, which shapes the context of what we can innovate around and what we can't. Because of that, we must always interleaf across our work analyses of the policymaking culture in our principal jurisdictions. it is in that context that we have been intermittently working on a new theory about how economic crises play out on the continent (no matter how brilliant an entrepreneur or innovator you are, if your work is future-oriented, you won't win against 100% currency depreciation). Here is a very crude and early draft essay outlining one such theory we are building: the "boiling frog syndrome" explanation of why crises in African economies drag on for longer than most conventional analysis would suggest. Using Ghana's current economic challenges as inspiration, we argue that economic decision makers tend to invest less decisively in trying to escape future trends even when relatively apparent. Naturally, they may also invest less in uncovering trends. They endure uncertainty with more stoicism. The effect is that things unravel, sometimes catastrophically, in slow motion, hence the boiling frog metaphor. Analysts not familiar with this reality, especially those operating from overseas, often put unnecessary store on the projections of self-interested policy actors. Economic recovery narratives thus become overoptimistic, at least over operative time horizons. This is very early work, which will be refined over time with readers' feedback shared publicly or by DM. https://lnkd.in/dXDEMUx8

Imagine Canada has shared a new report Journey to Impact: Unlocking Purpose through Social Finance, which presents findings of research aimed at advancing social innovation and social finance in Canada. https://ow.ly/WBab50QjAyo

#Degrowthers advocate cutting investment as a way to reduce the use of precious resources, which is exactly what the #UKGovernment has been doing for the last 40 years. #Degrowth #UKPolitics #Economy https://lnkd.in/eK_Ucxtc

"As Arthur Lewis, some 70 years ago, explained: The central problem in the theory of economic development is to understand the process by which a community which was previously saving and investing 4 or 5 per cent of its national income, converts itself into an economy where voluntary saving is running at about 12 to 15 per cent of national income… We cannot explain any ‘industrial’ revolution until we can explain why saving increased relatively to national income." I often feel that there are laws imposed on us that we are not fully aware of, and once these laws are revealed, it takes one or two generations of effort to change them. https://lnkd.in/eA3vyW-t

Title: ** Economic Independence: A Path for Developing Nations** Introduction: Economic independence is a pivotal goal for developing nations striving to chart their own course toward sustainable growth and prosperity. This article explores key strategies and challenges faced by these nations in their pursuit of self-reliance. Diversification of Industries: One fundamental aspect involves breaking away from over-reliance on a narrow range of industries. Developing nations must invest in diversifying their economies to reduce vulnerability to external shocks. Investment in Education and Technology: Building a skilled workforce is paramount for economic independence. Developing nations should prioritize education, emphasizing science, technology, engineering, and mathematics (STEM) fields. By fostering innovation, these nations can enhance productivity and compete globally. Reducing Dependency on External Aid: While foreign aid can be beneficial, overreliance can hinder economic independence. Developing nations should focus on creating self-sustaining economic models, reducing vulnerability to foreign aid conditions. Fostering a Vibrant Domestic Market: A robust domestic market is a cornerstone of economic independence. Developing nations should promote policies that encourage local consumption, stimulate SMEs, and create an environment conducive to business growth. Sound Fiscal Policies: Implementing sound fiscal policies is essential for economic stability. Developing nations should strive for responsible budgeting, debt management, and transparency in financial governance. This builds confidence among investors and international partners. Trade Balance and Regional Collaboration: Achieving a balanced trade profile is crucial for economic independence. Developing nations should actively participate in regional trade agreements, fostering collaboration with neighboring countries. By leveraging regional strengths, nations can enhance economic resilience. Environmental Sustainability: Long-term economic independence requires a commitment to environmental sustainability. Developing nations should prioritize green technologies, renewable energy sources, and sustainable agricultural practices. A balanced approach ensures resilience against ecological challenges. Conclusion: Economic independence for developing nations is marked by strategic decisions, sustainable policies, and collaborative efforts. Through diversifying industries, investing in education and technology, reducing reliance on external aid, fostering a vibrant domestic market, implementing sound fiscal policies, engaging in regional collaboration, and embracing environmental sustainability, these nations can pave the way for self-reliance and long-term prosperity.

How can government catalyse the £ billions held in private capital to help finance the public’s priorities in #housing, #NetZero, #education and more? The London School of Economics and Political Science (LSE)’s Grantham Research Institute on Climate Change & the Environment latest report, 'Investing in our future: Practical solutions for the UK government to mobilise private capital for economic, environmental and social policy priorities’ shows how. Written by the brilliant Sarah Gordon – Visiting Professor in Practice at the LSE – the report draws on extensive discussion with policymakers, regulators, social investors and financial services players to present a route-map for directing #privatecapital towards a #sustainable, prosperous and #inclusive future. “The case studies and proposals in this report provide concrete evidence of the power of blended finance to deliver solutions to some of the UK’s most pressing challenges. In particular, they show how an outcomes-based approach can deliver both a highly effective use of taxpayers’ money and lasting benefits in social housing, education, health and other sectors.” Michele Giddens OBE, Founder and Co-CEO, Bridges Fund Management Ltd. (NB. The report also features the valuable work our not-for-profit subsidiary Bridges Outcomes Partnerships is doing to support refugees and other vulnerable individuals and communities… 👀) #blendedfinance https://lnkd.in/ePr6fT2X

Time to embrace the major global shift from the 1970 Milton Friedman doctrine espousing that: “The Social Responsibility of Business is to Increase Its Profits". Over 50 years ago, Friedman contended that a company has no social responsibility to the public or society; its only responsibility is to its shareholders. Fitch’s recent (January 2024) confirmation of South Africa well below investment grade inter alia because of infrastructure challenges, unreliable electricity supply and high inequality requires a business sector and #CorporateGovernance paradigm shift towards Social Impact Investment as part of #CorporateStrategy and Strategic Objectives. My Take: The now-aging light touch language in South Africa’s 2016 King IV Code on Corporate Governance that encourages Governing Bodies towards “stakeholder-inclusivity” and “stakeholder-centricity” falls far short of the required #CollectiveAction and deeper Social Compact needed to address critical problems like social inequality and the ever-imminent risk of community-level social unrest that continues to destroy the foundation needed for business to prosper.

The affluent are diversifying with investment migration through residency and citizenship programs to mitigate geo-political risks and secure options for their families. Check out this insightful piece I prepared with Hubbis on investment migration.

Expanding Horizons: Investment Opportunities for African Development Finance Institutions and Banks in the Caribbean and Latin America - https://lnkd.in/gW-4m6UF - By Ryan Elcock With today’s global economy and geopolitical landscape, marked by shifting power dynamics, there is a need for economic certainty and resilience. Although the looming economic crisis has many countries on edge; the Global South, particularly Africa, Latin America, and the Caribbean, finds itself presented with unique opportunities for