The Necessity for Faith - The Secret Sources of Wealth & Poverty

21st Century Sustainable Hybrid Organizations - another White Board by O'Steven

Economies are governed by thoughts and they reflect laws of the mind rather than the laws of nature. George Gilder, a techno sage and entrepreneurial innovator teaches that a crucial law of mind is that belief precedes knowledge.

He argues that new knowledge does not come without a leap of hypothesis, and a projection of the intuitive imagination. You can't fully see anything new from an old place and the old saw of "look before you leap" provides only for the continual elaborations and refinements of old ideas that comprise the bulk of scholarship.

Instead it is the...."leap, not the look, that generates the crucial information; the leap through time and space, beyond the swarm of observable fact, that opens up the vista of discovery."

Thus, creative thought necessitates an act of faith and the believer must trust her or his instincts, imagination and the spontaneous notions of the mind, enough to test them in the rough and tumble reality of the marketplace.

Crucial to this creative process is the sensitivity to others responses, which is another key aspect of love. Creative thought needs to be open to change and surprise and there must be a process of divorce and rejection. Unless wrong ideas can be abandoned, no one will risk commitment to them in an uncertain world, and progress will be halted.

The essential laws of creative thinking are summed up as faith, love, openness, conflict and falsifiability.

The essential laws of economic progress and innovation are faith, altruism, investment, competition, and bankruptcy which also happen to be the rules of capitalism. Capitalism is successful only as it laws accord with the laws of the mind. It is able to fulfill human needs when it is focused on giving, which depends on the sensitivity to the needs of others. It is open to faith and experiment because it is open to competition and bankruptcy. Wrestling in the marketplace capitalism accumulates the capital gains not only of its successes but also of its failures, capitalized in new knowledge.

"The dynamics of economic growth thus consist of the fundamental process of all growth and development in nature and thought: a largely spontaneous and mostly unpredictable flow of increasing diversity and differentiation and new products and modes of production."

"The key thing to notice about this process is that most of its motive activities take place beyond the view of the statistician. It is a personal and psychological drama that decides whether a person dares to borrow and take risks to carry out an innovative idea that all statistics show will probably - like two-thirds of all new businesses in America - fail within five years. Chance is the foundation of change and the vessel of the divine."

"Peirce has shown that chance not only is at the very center of human reality but also is the deepest source of reason and morality. In his posthumous volume, Chance, Love, and Logic, he wrote: 'The first step in evolution is putting sundry thoughts into situations in which they are free to play..The idea that chance begets order is the cornerstone of modern physics,' and, he might have added, biology as well. "

"Peirce argues, therefore, that both evolution and progress, whether in science or in society, are dependent on "a conceived identification of one's interests with those of an unlimited community: a recognition of the possibility of this interest being made supreme, and hope in the unlimited continuance of intellectual activity.....Logic is rooted in the social principle..." Pierce's mathematical doctrine of chances leads him to see that all human creativity and discovery require the transcendence of narrow rationality and an embrace of religious values."

"It interests me to notice," wrote this great logical philosopher, "that these sentiments seem to be pretty much the same as that famous trio of Charity, Faith, and Hope, which in the estimation of St. Paul, are the finest and greatest of spiritual gifts." They are the gifts that work together to free mankind from the bondage of power and the dead hand of the past and open us to the possibilities of the divine."

"Success is always unpredictable and thus an effect of faith and freedom. God is the foundation of all living knowledge; and the human mind, to the extent it can know anything beyond its own meager reach, partakes of the mind of God."

"A thinker who shrinks from paradox and conflict is nearly prohibited from innovation as problems and crises are in themselves the new frontier; are themselves the mandate for individual and corporate competition and creativity; are themselves the reason why we can't afford the consolations of planning and stasis."

"This belief will allow us to see the best way of helping the poor, the way to understand the truths of equality before God that can only come from freedom and diversity on earth. It leads us to abandon, above all, the idea that the human race can become self-sufficient, can separate itself from chance and fortune in a hubristic siege of rational resource management, income distribution, and futuristic planning. "

"Our greatest and only resource is the miracle of human creativity in a relation of openness to the divine. It is a resource that above all we should deny neither to the poor, who can be the most open of all to the future, nor to the rich or excellent of individuals, who can lend leadership, imagination, and wealth to the cause of beneficent change."

"The tale of human life is less the pageant of unfolding rationality and purpose envisaged by the Enlightenment than a saga of desert wanderings and brief bounty, the endless dialogue between mankind and God, between alienation and providence, as we search for the ever-rising and receding promised land, which we can see most clearly, with the most luminous logic, when we have the faith and courage to leave ourselves open to chance and fate. Reinhold Niebuhr summed up our predicament:"

Nothing worth doing is completed in one lifetime.

Therefore we must be save by hope.

Nothing true or beautiful makes complete sense in any context of history.

Therefore we must be saved by faith.

Nothing we do, no matter how virtuous, can be accomplished alone.

Therefore we are saved by love.

"These are the fundamental laws of economics, business, technology, and life. In them are the secret sources of wealth and poverty."

Wealth and Poverty by George Gilder

21st Century Hybrid Sustainable Organizations

Continuum of 21 Century hybrid organizations - where sustainable Leveraged Non Profits meet Social Businesses in the global marketplace. For further reference check out The Power of Unreasonable People - How Social Entrepreneurs Create Markets That Change The World by John Elkington and Pamela Hartigan and Creating a World Without Poverty - Social Business and the Future of Capitalism by Muhammad Yunus

Another White Board by O'Steven

Mana Deschisa & The San Patrignano Community

Mana Deschisa Leadership
Larisa Marshall Gigi Sara

In 2006, the founder of Europe's largest drug rehab community - The San Patrignano Community - of northern Italy, was named "Social Entrepreneur of the Year" at the World Economic Forum in recognition of the success of this community's recovery model.

Begun in Rimini, Italy in 1978 with 20 volunteers, the San Patrignano Community has been at work for over thirty years and helped rehabilitate more than 20,000 people to a drug free condition.

Like Mana Deschisa Romania, this thriving community has integrated traditionally separate structures - with business/non-profit/government/social welfare - all mixing together in new and innovative ways where rehabilitation meets economic sustainability and prosperity.

Here is a sumary of their wonderful work and you can find them at: www.SanPatrignano.org

Mission: (much like Mana Deschisa)

• To welcome and rehabilitate
• To offer this service completely free of charge
• To put an end to addiction
• To use professional training
• To provide support to families
• To collect sustainable economic resources through our activities
  

Treatment: as with any successful program, depends upon the individuals desire to work to change his or her life, while being integrated into society (not in a gated community) as they thrive with daily interaction in the local marketplace.

From its inception the founders believed that there was "a business solution to the drug addict's life." They realized early on that collaborative relationships with the external world were critical to the community's long term success.

Vision is now reality with dozens of professional training sectors (over 50) or industry clusters, cooperatives ranging from wine making to high-end furniture, and even state of the art publishing. The kitchen produces over 4,000 meals daily and the majority of food is produced by the community.

Members: They have over 1,800 members and over 150 volunteers, many of whom are former addicts. They also have over 200 professionals and consultants that contribute to the many activities which take place at San Patrignano, like legal assistance and medical care.

The success of the community now rests on more than the vision of one person and in the hands of all the members that perpetuate a myth and a vision of a collective awareness and altruism.

Adapted from Phelps Equine Word News Jan. 14, 2007

What an inspiration!
Cheers,
O'

Venture Philanthropy / Philanthro-capitalism

Mana Deschisa Romania 2000 - 2011 (click on picture for larger view)

For the past decade Marshall McKenna has been pioneering a strategic partnership with the for-profit marketplace as he expands the Mana Deschisa outreach to the homeless young adults of Romania.

Perhaps you are familiar with the term "social entrepreneurship", a notion that seems to be generating increasing interest in the overlapping spheres of business, philanthropy, missions and social-welfare here and abroad. It is also closely related to the concept of "venture philanthropy" or "philanthro-capitalism" as examined in several publications including The Economist.

This is an evolving global phenomenon and can simply be defined as any person or organization that utilizes earned income strategies to pursue social objectives, simultaneously seeking both a financial and social return on investments. There is even an emphasis on a "triple bottom line" that includes:

1.) a favorable financial return on investments
2.) a strategic community impact
3.) and a better community and environmental quality of life

This includes not-for-profit sector people and organizations (like Mana Deschisa and Open Hand) with a strong problem solving and results orientation doing the following:

• diversify income revenues using market means to generate surpluses that can be applied to ministry operating budgets while addressing long term sustainability and consistently producing collateral benefits like employment opportunities, vocational training, etc.
• linking the felt needs of disadvantaged communities with strategic for-profit economic development initiatives
• creatively fulfilling the mission and vision of the ministry while utilizing non-traditional avenues that sensibly balance risks / rewards
• selectively borrowing and implementing strategic ideas and tools from the for-profit global marketplace
• establishing problem solving networks via supportive multi-national partnerships with private sector individuals and corporations

This includes members of the for-profit private sector that are thoughtfully examining how business fulfills social and community responsibilities, and who are doing the following:

• imagining how to responsibly integrate social and environmental values into business and investment practices in ways that complement the marketplace and produce measurable returns
• incorporating philanthropic and community development practices into their business strategies
• creating profitable partnerships with not-for-profit organizations through cause related marketing, social marketing, joint venture projects, etc.
• complementing their disciplined "market labor" with meaningful volunteer "gift labor" benefiting the disadvantaged and underprivileged citizens and children of the world

The ultimate purpose of these combined efforts between the not-for-profit and for-profit worlds is to generate sustainable smart growth while transforming and impacting the lives of everyone involved.

Due to persistent and ongoing financial challenges and responsibilities of operating a growing, dynamic ministry, Marshall and the Romanian leadership of Mana Deschsia wear many hats; one as directors of the outreach to the homeless young adults and another as business and commercial investment managers for social entrepreneur's seeking profits in Romania through foreign direct investments of venture capital.

Marshall and his indigenous staff speak the language, understand the culture and needs of the local communities, know the value of property and commercial buildings, and have successfully negotiated many profitable commercial real estate projects in the past decade. In turn they have secured properties and land for their outreach to the homeless while developing the necessary expertise and professional connections with local banks, lawyers, agents, public administrators and governmental authorities. They have an impressive track record of making profitable investments for a growing list of international investors who see great development opportunities in Romania.

In return for Marshall and his colleagues successful management efforts in these joint ventures (selecting land for purchase, negotiating, executing and securing local construction management, etc.) a percentage of the profits are designated for the Mana Deschisa ministry. This revenue stream in combination with donations and gifts are exactly what is needed for sustainable growth and financial long-term stability.

Ultimately local jobs are created, along with vocational training for the former street folks as they earn a living wage in anticipation of becoming mature and responsible adult citizens. Mana Deschisa currently employees some of their "students" in the commercial real estate and construction opportunities launched in cooperation with various venture capitalists.

Contact Marshall today at manadeschisa@yahoo.com for more info on ways to get involved.

Social Entrepreneurship

Here is an excerpt from Paul Hawken's book Blessed Unrest.....

"Google - the $ 1 billion Google Foundation addresses poverty, disease, and climate change but has forsaken nonprofit tax status under IRS regulations in order to put money anywhere it wishes, whether in for-or nonprofit enterprises. The Google Foundation can make money, lose money, donate money, or invest money, whatever it takes to accomplish its social mission."

"Social Entrepreneurship - In the past decade, critics of the environmental movement have taken it to task, citing the worldwide collapse of ecosystems as proof of its ineffectiveness. What may be happening is the opposite. Although the momentum of damage and exploitation continues to accelerate in both the social and environmental arenas, the activity addressing it is increasing exponentially and has broken out of its traditional institutional boundaries. Emblematic of this shift is the growth of social entrepreneurship, which refers to activist who use entrepreneurial methods to address systemic social problems. Social entrepreneurs are innovative risk takers who use ideas, resources, and opportunities to tackle problems and produce social benefit. Although they can work in both the for-profit and nonprofit realms, their success is measured by social profit; monetary criteria are used where applicable to gauge the sustainability of their programs.

The practice of social entrepreneurship extends back to the public health movement during the Industrial Revolution and would include such notables as Florence Nightingale, Susan B. Anthony, and M.K. Gandhi. The greatest single practitioner of social entrepreneurship has been Bill Drayton of Ashoka. The best-known practitioner of social entrepreneurship is Muhammad Yunus, the creator of microfinance and microcredit, the founder of Grameen Bank in Bangladesh, and the winner of the 2006 Nobel Peace Prize. Despite the recent publicity, the work of most social entrepreneurs remains largely unnoticed."

In our own Rhino tribe we are cheering on Marshall McKenna and the Mana Deschisa Romania ministry as one of the leading edge pioneers of social entrepreneurship in Eastern Europe. More on that soon. Well done Marshall!