Memenomics
* Dawlabani, Said. (2013). Memenomics – the next generation economic system. NY: SelectBooks, Inc.
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Review
By Kristian Stålne:
"Dawlabani’s book takes the Spiral Dynamics model as a framework for analysing the economic system. Spiral Dynamics maps out eight value systems or vMemes, where each of them has as its purpose to solve the problems of existence that it perceives. By doing so it creates a new set of problems that will trigger the emergence of and will be addressed by the next value system. The rise and fall of each value system is described in terms of six phases: Inquiry, Introduction, Growth, Maturity, Decline and Entropy, although the vMeme will still be present as the next higher stage emerges.
The values systems, or vMemes, are commonly referred to by
colors and here very briefly introduce along with approximate time when they first emerged in
human history (Beck and Cowan, 2006):
- Beige (100 000 BC), focusing on physiological survival needs in the dawn of humanity;
- Purple (50 000 BC), associates with magical thinking in hunter gatherer tribes;
- Red (7000 BC), affirming own needs and will to exploite and dominate others;
- Blue (3000 BC), traditionalistic absolutism and self-sacrificing obedience;
- Orange (1000 AD), modernistic and industrial with rationality and scientific objectivity;
- Green (1850 AD), postmodern with pluralism, multiculturalism and human connection;
- Yellow (1950 AD), a functional integration of the previous levels’ healthy aspects;
- Turquoise (1970 AD), identifies with the world as a holistic organism.
According to the Spiral Dynamics lens, the economic system can be seen as a consequence of
our worldviews and our value systems, which in turn is a function of life conditions, and vice
versa. Thus, the way the economy functions is a fundamental part of how we organize our
societies. Another characteristic is that one level transcends and includes the previous one and
that levels cannot be skipped, or rather should not be. This means that one should not try to
impose a more complex economic system, or governance, on a culture than what is consistent
with the life conditions and vMeme distribution of that culture.
The book focuses on the economic aspects of cultural development up to today’s capitalism and market liberalism, followed by a detailed description of the development of the US economy leading up to the financial meltdown of 2008 and finally a discussion on a solution and next step economic system referred to as functional capitalism.
The first part gives the economic historic background according to the Spiral dynamics, beyond the first Beige value system or vMeme:
- Purple – the gift economy of the hunter gatherers
The earliest form of economic activity took place in the form of bartering or gifting, which was an important if not necessary means of creating a peaceful existence between different tribes instead of pillaging and waging war against each other. The goods that were traded were food (from hunting and gathering as well as grain from early agriculture), artifacts, jewelry and precious metals.
- Red – the first civilizations and the emperor’s coin
As civilizations were born and grew to be complex and stratified, organized economic systems were created that allowed for exchange of goods and labor within the empire. The emperor would create money in the form of coins made of gold or another metal accompanied by laws to force the subjects to accept them as means of payment. We could refer to this as concrete money since they had an inherent value in the metal itself.
- Blue – nation states and national banks
Along with the birth of nation states, national banks and industrialization, the use of banknotes or paper money backed by gold became wide spread (although banknotes first were used in periods in China already one millennium before). Despite some initial bank runs, when people lose their confidence in the banknotes and want to trade it back for gold, this new and more complex abstract form of money was established in society (the complexity aspect is not discussed in Dawlabani’s analysis). With a stable currency that everyone trusted the new industrialized economy could flourish. Hallmarks of the Blue value system are trust, order, justice and stability, which are required preconditions for a functioning economy where you exchange goods, wages, and you can borrow and repay money, which paved the way for capitalism. This economic system was a huge step forward for society, but still one that showed several limitations, e.g. that the wealth of a state was dependent on the size of its gold reserve.
- Orange – market economy and capitalism
Gradually the western mindsets and economies shifted towards an Orange mode of thinking, meaning more individualistic, with less centrally controlled and regulated economies, and positivistic towards scientific and technological progress, and towards economic growth. In the USA in 1971 the currency was shifted away from the Bretton-Woods framework, thus releasing the dollar from its connection to the gold standard and making it a fiat currency, i.e. one where the government guarantees its value. The mindset was to a great deal captured by Ayn Rand’s objectivism, where man is (or should be) driven by reason and self-interest, and where the economic system in greatest extent should be removed from its constraints. In the beginning of the 80’s the Reagan administration started a long-going trend of deregulation towards a laissezfaire market economy where all trust was placed in Adam Smith’s invisible hand. This means that the individual’s self-interest is assumed to be good for the system as a whole, a trend that was continued by the head of Federal Reserve and Rand-disciple Alan Greenspan.
One reflection I make here is that the economic system seems to be lagging after the philosophical, scientific and technological revolutions. According to Dawlabani the Orange economic system starts to dominate first in late 20th century, several centuries after the industrial revolution and enlightenment, which is typically associated as being Orange in integral settings. Still, this may be accurate since also value systems dominating in a population do lag behind this way, and that the economic system should be at least somewhat aligned with this.
The period from the 80’s to 2008 can be characterized as a gradual shift away from the Blue regulatory, stable and industry and work output-related Main street economy to an Orange, market-driven, growth-oriented and speculative Wall street economy. Here the brightest minds of the country were busy, not curing cancer or inventing new clean energy sources, but creating innovative financial instruments that had less and less to do with the real economy of Main street, i.e. with creating jobs and relating to the real value of e.g. houses. One of the above mentioned deregulation was the abolition of the Glass-Steagall Act that made it possible for commercial banks insured by the taxpayers to take part in risky speculations. When the housing bubble burst in 2008 it threatened to make the entire economic system collapse, which was avoided by the great bailout of the banks by the new Obama administration. But since then no real revolution or transition to a new system has been seen.
- Green – equal distribution and democratization of information
So what is Dawlabani proposing as a solution and way forward for the American economy after this Orange collapse? Perhaps an economic system based on the Green 6th level value system?! Well, not really.
The characteristics of the Green value system are introduced quite
briefly in accordance with two themes:
Human bond and equal distributions, which is obviously about the unequal wealth distribution and the 99 percent that has been frequently discussed after the financial crisis. The theme is not very elaborated and is dismissed by Dawlabani rather sweepingly: The European Union is a good example of a system that champions Green economic policies as evidenced by their bloated social welfare programs. Green vMeme corporate practices have helped bring equality in pay to the worker, but that same system has taxed those corporations at such a high rate that innovation is often stifled. This system can unfairly burden a whole culture and bring it to the brink of financial disaster. (Dawlabani, 2013, p. 61)
The democratization of information, the second theme, is given considerably more attention and contains an interesting discussion on how the internet of things and the non-scarce nature of information have connected us globally and given us access to free information and paved way to open source collaborations. This has had consequences for the economy, e.g. in the media industry, where newspapers and magazines have gone out of business, peer-2-peer sharing of media, new business models such as crowdfunding have emerged and even gift based models (which could possibly be seen as purple mode economics).
Still, there is no consistent and functioning Green vMeme economic system described or discussed here. Shouldn’t the Green economic system, whatever that is, have its cycle with all its phases? Shouldn’t stages not be skipped?! Instead of elaborating on a green system as a solution to the orange problems, Dawlabani moves on and proposes a Yellow system, which he refers to as Functional Capitalism.
- Yellow – functional capitalism
This value system is often characterized as being a synthesis of the healthy versions of all previous value systems, such as Orange emphasis of progression and applying scientific advances, Green concern for fair distribution and the environment, and Blue order and stability and so forth. Here one strives to integrate all perspectives rather than to see them as being in conflict with each other.
No such system exists yet on a national level. However, Dawlabani gives some concepts or design principles such as Natural Design, a Yellow concept based on insights from previous value systems adapted to the life conditions at hand, and Distributed Innovation, an application of Natural Design in the knowledge economy, that are practiced by the two companies Whole foods and Google that can serve as inspiration and example of economy at the Yellow level. The notion of Conscious Capitalism, as stated by Whole foods’ CEO John Mackey, is described as integrating healthy aspects of Orange and Green values after an elaborate version of the triple bottom line: People, passion, purpose, profit and planet. And fueled with renewable energy.
Dawlabani also discusses key politicians, economists and media personalities that are at that level in order to support the transition from Orange to Yellow.
Concluding, the struggle between the Blue and Orange value systems in the American economy I see as the most detailed and initiated part of Dawlabani’s analysis. The previous two value systems, Purple and Red, are only briefly discussed and serves as a historic background, it would be great to have that more elaborated and related to other sources than the Spiral Dynamics framework itself. The Green value system, however, is in my view oversimplified. In order to integrate values at a higher level, the lower ones need to be accurately understood and described. And the key to do that, I believe, is to acquire a deeper understanding of the life conditions and problems that are associated with the Green value system and created by the Orange systems." (http://integral-review.org/issues/vol_12_no_1_stalne_orange_capitalism.pdf)