Thursday, April 15, 2010

Running out of productive capacity

The unprecedented use of capital and financial innovation, maybe an indicator of the fact that the capacity of the current economic structure to produce growth has almost run out.

Let's say you have a certain capacity to run. Utilising that capacity at the lower levels is easy. As you move towards the higher end of utilising that capacity, the effort (mental determination) required is greater and greater. But beyond the limit of that capacity no amount of effort (mental determination) can do it.

Towards the fag end of the capacity of an economic structure, we see an unprecedented use of capital (and financial innovation) to drive growth. And then comes the collapse, where no amount of financial innovation can drive the growth anymore because the productive capacity of the economic structure have been exhausted.

I think the current economic structure will have to undergo restructuring to Build new and additional productive capacity. Much like the runner who failed to reach his objective, must go back and work at building a new level of capacity.

How much growth the next cycle will produce, would depend on how deep this restructuring is.

Thursday, April 8, 2010

Hazaroon Khwahishein Aisi...


For years I have met and heard of countless NGOs and Voluntary groups that have done excellent work for a while and then disappeared or been confined to limited geography or both. For years I have watched many a well intentioned people work hard and achieve little. For years I have watched people intending to do good never get started. For years I have seen people overwhelmed with compassion lurch into action, only to give it all up in frustration (in equal haste).

In the few smallish initiatives that I have engaged myself with, I have seen how much time it can take to do the many insignificant things that need to be done in order to get some small amount of significant things done. I don't mean to demean the small contributions one can make. I only yearn for a better way to make a bigger impact without killing oneself with overwork and frustration.

The oft stated reason for slow progress and limited impact of voluntary initiatives - lack of funds, is not a problem that is likely to go away any time soon (probably never). Resorting to building a revenue model around the 'services / value' provided by these initiatives doesn't always provide the remedy.

But more importantly lack of funds is not the heart of the problem; the real reason could be the limited extent of the relationships these organisations have, the lack of a wider network that can be used to reach both the benefactors and the potential beneficiaries. Without it, even the benefit a revenue model can bring in remains unrealised.

So on an unlikely day it occurred to me- to create a network of voluntary individuals and groups that could all draw upon each others resources to make a bigger better faster impact. Because while building large organisations can take (and use up) a lot of resources (funds) creating larger networks can be done at much lower costs using the internet. It is a way in which voluntary organisations can grow the extent of their relationships. It is a way in which individuals can make small (human sized) contributions which can be aggregated with the contributions of other individuals to make a bigger (giant) impact.

The idea is simple. A website that carries a directory of volunteers, donors, voluntary organisations, causes, projects etc. becomes the exchange for collaboration amongst the groups and individuals, enabling them to undertake projects that can deliver a bigger better faster impacts.

This initiative can help create a market place (for lack of a better word) where donors, volunteers, organization and all can come together to exchange what they can offer to a cause. It can be a place where organisations connect with other complementary organisations to help take their work further faster. And so on.

It won't be the first time that internet would be used for such a purpose. And I am sure this won't be the first or the only such project. Does it matter? No. Because all such efforts can again be aggregated in a network of networks over the internet to deliver even bigger benefits.

This project is large in scope and big in potential. I take strength from the belief that I can count on your support. It really is Our project for Our times.

Let's begin.