Progressing Good Outcomes

Ian Davis of McKinsey has written a thought provoking article to crystallize thinking on the nature of Government participation in context of the bail outs taking place to save national economies. I have interpreted the article in the context of Learning Organizations.

An unregulated economy tends to be driven by short term reasoning. By its very nature such reasoning is based on the linear assembly of Cause and Effect. It is now evident that it progresses the eco-system to a melt-down. Only the Government can balance short term interests with long term thinking to address the underlying factors at play like an abused environment, natural avarice of those in power, social welfare, depleting resources, etc.

Balanced Government participation is particularly important for developing economies. In them Government participation has tended to follow the ‘bad outcome’: policies that restrict much needed flexibility. With their head start in Government participation, guided by greater coordination and transparency to emerge the reality that lies beyond Cause/Effect reasoning, the developing economies can progress to safely exploit the known drivers of their growth, namely productivity gains, technology adoption, and cultural and institutional changes. The balance they achieve will protect them from the capitalist danger of a meltdown as well as the more imminent one of social instability.

It becomes clear that the philosophy of Learning Organizations must permeate Government thinking. Only this is capable of emerging the reality that lies beyond Cause/Effect reasoning. As discussed in my last blog, the potent philosophy of Learning Organizations is today rendered powerless because of its dependence on personnel energy. Without reliable means for learnng the ‘bad outcomes’ of government participation and erosion of investor confidence are more likely.