Shifting the Paradigm of Capitalism is the most essential way to solve the global problems we are now facing.
Five Paradigm Shifts of Capitalism need to be achieved.
The First Paradigm Shift
From Operationalism Economy to Complexity Economy
The modern economic system is becoming more and more a “complex system;” it is becoming more and more a “living system” or “organic system.”
As a result, the “operational” strategy that used to be effective in a “mechanical system” is no longer effective to cope with this “organic system,” and therefore “financial engineering” and “risk minimization” is no longer functional after the global economic crisis. We need to learn how to cope with the new economic system as a “living system” or “organic system.”
The Second Paradigm Shift
From Knowledge Economy to Empathy Economy
In the age of so-called “knowledge capitalism,” many CEOs believe that intellectual property as “knowledge capital” is the most important thing. But in fact, the important thing is not only “knowledge capital” but also “relation capital,” “trust capital,” “brand capital,” and “cultural capital.”
And the most important thing that exists in these forms of capital is “empathy among people.” So today’s “Knowledge Economy” is evolving into an “Empathy Economy.”
The Third Paradigm Shift
From Monetary Economy to Voluntary Economy
In this age, many economists believe that only the Monetary Economy is the economic principle that supports capitalism. But that is not true. There is another economic principle that has been supporting capitalism throughout history: the “Voluntary Economy.” That is the economic activity driven by people who want to satisfy their minds, without asking money for their activity. In the Internet age, the Voluntary Economy is becoming more and more influential in society. Many web communities promote the Voluntary Economy, for instance, the Linux community and the Wikipedia community.
The Fourth Paradigm Shift
From Beneficiary Economy to Participatory Economy
Until now, there has been a deep dichotomy between “consumers ” and “producers” in the economic system. But in the age of the Internet revolution, consumers (people) can easily collaborate with producers (companies) in the web community and create new products and services that directly reflect their real needs. Consumers can participate even in the process of designing, producing and distributing new products or services. This will result in the shift from the Beneficiary Economy to the Participatory Economy.
The Fifth Paradigm Shift
From Unlimited Growth Economy to Global Environment Economy
No explanation is needed for this paradigm shift, yet almost all countries are still chasing “Unlimited Economic Growth,” in spite of it being merely an illusion.
What is the meaning of achieving these Five Paradigm Shifts of Capitalism? They help Capitalism mature. In Mature Capitalism not only “Visible Capital” such as monetary capital, but also “Invisible Capital” like knowledge capital, relation capital, trust capital, brand capital, culture capital and empathy capital will be valued, together with the “Invisible Trade-off” between the present generation and future generations. The Five Paradigm Shifts will create a new kind of Capitalism called “Invisible Capitalism.”
