Back in April, when I meant to post this, I was
telling myself that I must get back to forecasting the rise of a fourth sector,
and explaining how and why it can improve America’s functioning and well-being.
American, as a society and a system, has long
had three major sectors: civil society’s community- and home-based sector(s),
government’s public sector, and business’s private sector. Having these three
has enabled America to be successful for over two centuries, more so than other
three-sector societies, and far beyond what anyone could accomplish with
far-older one- and two-sector systems.
But these three no longer suffice if we are to
continue advancing. We need a fourth (commons?) sector. We should start enabling
its emergence as the next step in long-term social evolution (à la TIMN). Doing
so will improve our society’s complexity as well as simplify its functioning —
a reorganization that will make everybody happier and healthier.
As I was musing about this back then, along came
new papers by renowned theorists and activists reiterating the three-sector
framework and urging ways to make better use of it. Today six months later,
they are not so fresh, but they can still serve as foils for my continuing campaign.
So let’s take a look:
• Samuel
Bowles and Wendy Carlin’s “The coming battle for the COVID-19 narrative,” in a
specialized journal (see URL below), dated April 10, 2020. The authors are
renowned complexity scientists affiliated with the Santa Fe Institute (SFI).
[https://voxeu.org/article/coming-battle-covid-19-narrative]
• Otto Scharmer’s “A New Superpower in the
Making: Awareness-Based Collective Action,” at a blog he heads, dated April 8,
2020. As a futurist based at MIT, Scharmer writes mostly about organizational
and economic trends and prospects.
[https://medium.com/presencing-institute-blog/a-new-superpower-in-the-making-awareness-based-collective-action-83861bcb9859]
• Henry Mintzberg, Dror Etzioni, and Saku
Mantere’s “Worldly Strategy for the Global Climate,” Stanford Social
Innovation Review, Fall 2018, pp. 42-47. Mintzberg, a famed organization
theorist, is based along with his co-authors at McGill University in Canada. He
writes mainly about the roles of the “plural sector” — his term about what are
mostly community-based civil-society actors.
[https://pdfs.semanticscholar.org/2246/bc715c531f724b404a4fcdd53f25504ee9b6.pdf]
The first two articles are
motivated by institutional failures in responding to the Covid-19 health
crisis, the third by wide-spread failures to come up with a world-wide strategy
to deal with global climate change.
All three make similar points: Modern societies
have civil-society (“people”), government (public), and market (private)
sectors — i.e., they have three-sector systems. Policymakers keep over-emphasizing
the public and private sectors as sources for policy options. But today’s
health, environmental, and other crises require including civil-society actors
as well. Better ways must be found to enable all three sectors to work
together, as complements rather than substitutes.
It's good to see the three-sector argument being
revived in these articles. But, from a TIMN perspective, it’s a very old
argument. It would help our society if policymaking conformed to it in the near
term, but it offers little new and effective for the long-term.
Bowles & Carlin’s three-sector framework:
Their article makes good sense regarding what framework to use for addressing
and resolving complex policy issues. Their paper illuminates that concern with
solid reasoning as well as two elegant charts (best I’ve seen lately) about how
government, market, and civil-society actors and their sectors may work
together. In their words:
“COVID-19, for better or
worse, brings into focus a third pole in the debate: call it community or civil
society. In the absence of this third pole, the conventional language of
economics and public policy misses the contribution of social norms and of
institutions that are neither governments nor markets — like families,
relationships within firms, and community organisations.”
“No combination of
government fiat and market incentives, however cleverly designed, will produce
solutions to problems like the pandemic. What we call civil society (or the
community) provides essential elements of a strategy to kill COVID-19 without
killing the economy.”
“These examples underline
an important truth about institutional and policy design: the poles of the
institution space — at least ideally — are complements not substitutes.
Well-designed government policies enhance the workings of markets and enhance
the salience of cooperative and other socially valuable preferences.
Well-designed markets both empower governments and make them more accountable
without crowding out ethical and other pro-social preferences.”
And their title is quite right: “a narrative
battle is coming” — indeed it is already going on. Who wins it will matter for
whether we end up with a two-, three-, or prospective four-sector framework.
But far more illumination is needed than they have provided so far.
Scharmer’s more-or-less three-sector vision:
In observing how people — people, not government or business — are responding
to the pandemic, Scharmer is heartened to see “the further awakening of a
movement taking shape across the planet … the activation of a deep and widely
held longing for profound societal and civilizational renewal.” As a futurist, he
heralds the continued emergence of “the new superpower in the making — the rise
of a new pattern of collective action that operates from an awareness of the
whole: Awareness-Based Collective action (ABC)” on a planetary scale.
After blaming Big Government, Big Business, and Big
Tech for a “massive institutional failure connected to these issues,” he asks: “Should
health and healthcare — or core parts of it — be organized by a different type
of enterprise, one that is driven by a social mission instead of profit?” In
reply, he calls for “rethinking the framework of public health in terms of the
planet: putting planetary health and well-being first in our framing of what a
good healthcare system is trying to do.” In his view, this means creating “new
types of societal innovation infrastructures” — new learning infrastructures,
democratic governance infrastructure, and economic infrastructures.
His proposal is not clear about the details, and
it’s not explicitly a three-sector view. But it is in keeping with his
long-standing quest to transform capitalism and society — specifically, to
“upgrade our operating systems” by evolving toward “Capitalism 4.0” or
“Operating System 4.0.” For our society has become so complex “you cannot solve
‘4.0 challenges’ with response mechanisms that are rooted in operating systems
2.0 and 3.0.”
Personally, I don’t cotton to his terms and
categories, but his framework is quite TIMN-ish in nature. As I wrote years ago
(2016), “his view maps imperfectly but surprisingly well onto TIMN —
particularly in his ideas about progressions, about sectors adding together,
about the old persisting with the new, and about heading toward a revival of
the commons.”
[Source: http://twotheories.blogspot.com/2016/05/organizational-forms-compared-my.html]
Unfortunately, this recent article says nothing
about that last point, which might have made it into more of a four- than a
three-sector vision about the health crisis.
Mintzberg, Etzioni, and Mantere’s three-sector
framework: They summarize their triform argument very
concisely right up front:
“Progress in dealing with
the problem of climate change will require that the institutions of government,
business, and community work, not in isolation from each other, let alone at
cross purposes, but by reinforcing each other’s efforts through consolidation.”
They then categorize various climate-strategy
initiatives “by sector … because the public, plural, and private sectors seem
to favor different processes.” Of these processes, “orchestrated planning” is favored
in the public sector, “autonomous venturing” in the private sector, and
“grounded engagement” in the “plural sector.”
In their definition, “The plural sector includes
those formal and informal associations that are neither publicly owned by
government nor privately owned by investors. Some are owned by members, such as
cooperatives, while others are owned by no one, such as the Sierra Club and the
Girl Scouts.” It’s a sector whose associations are often led by “social
entrepreneurs.” In other words, it is mostly a civil-society sector.
In addition to showing that different
climate-change initiatives may involve different sectors, and different
combinations of sectors, Mintzberg and his colleagues urge that these sectors
and their actors work together, not alone and especially not at cross purposes. Indeed, what they urge is entirely in
accord with TIMN dynamics:
“By contrast, when the
three sectors work together, to constructively reinforce each other’s efforts,
they can together generate an ascending spiral of consolidation. …
“Each activity can thus
spawn more activities in the other sectors as well as in its own, so that,
together, they can feed this ascending spiral of consolidation. Perhaps more
significantly, there can also be constructive networks of consolidation, as the
organizations of the three sectors interact with each other in many different
ways—alliances, partnerships, joint ventures, and so on. …
“In any event, addressing
the problem of climate change will likely require that each of the sectors
attends to what it does best, in conjunction with the other two. In general,
communities engage, governments legitimize, and businesses invest. We believe
that this is how healthy societies progress.”
Preferring the term “worldly” to “global,” they note
that new narratives and mindsets are needed: “A worldly mindset can prepare
actors to appreciate their differences, and thereby work together towards
consolidated ascension, from group to globe.”
[The remainder of this
drafted-in-April post feels as though it may be mostly copy-pasted from earlier
posts. Oh well, the points still fit here. I’m too tired to be entirely new and
nonredundant right now.]
Limits of the three-sector framework:
As these papers show, today’s policymakers, politicians, and media pundits, not
to mention social theorists, mostly behave as though our society, our system,
has only two sectors that matter: the public sector and the private sector. Our
leaders have long relied on a two-sector framework to propose fixes for
America’s mounting health, education, welfare, environmental, and other
domestic problems. Some proposals call for more government programs, others for
more privatization, a few for better public-private collaboration.
By now, this two-sector framework is deeply entrenched
and tribalized. It is also just plain wrong-headed. It wasn’t true in the past.
It will be even less true in the future. For it neglects two other sectors that
belong in the framework: one very old, and still occasionally recognized, as
these papers set out; the other so new its prospective emergence is barely
discernible today.
Our society used to regularly recognize three
major sectors — besides the public and private sectors, Americans also
recognized that their society’s functioning depended on the vitality of civil
society’s home- and community-based sector(s) and their arrays of voluntary
groups, social clubs, charitable associations, and activist NGOs. When not
acting alone, they would often assist public- and private-sector actors with
all sorts of local issues. Indeed, this sector used to have a well-regarded, albeit
lesser place in policymaking circles. And for decades, lots of theorists and
activists have called for better recognition of civil society and its
sector(s), often by new names — e.g., “social sector” (Drucker), “third sector”
(e.g., Salamon; Rifkin), “people sector” (Mintzberg).
But lately, especially nowadays, this sector’s
significance is acknowledged mostly as an afterthought. If its policymaking value
could be recognized anew in Washington — if a three-sector framework were truly
put back in play, as these papers urge — that would help. But this is no small
goal, given the power, profit, and privilege, as well as inertia and tribalism,
that are overwhelmingly concentrated in the dominant two-sector framework.
It usually takes a crisis to illuminate civil-society’s
importance — the papers at hand are correct to emphasize this, and to call for
correctives that would revitalize the three-sector framework. But many other efforts
have urged likewise in the past, and so far not little if anything has changed.
The Covid-19 crisis has presented a new opportunity — but political trends and
rhetoric in Washington just continue to harden around the two-sector framework.
It will take more than this singular health
crisis to prompt deep reform. Other motivating crises, including disruptive
climate change, will have to come to the fore as well, and all these crises
will have to be rethought, not in isolation but as interrelated and
interactive. By then, people may begin to see that what’s needed is not a
revitalized three-sector framework, but steps toward constructing a four-sector
framework.
Need for a four-sector framework:
Hence my key point: The three-sector framework these paper’s tout will inevitably
prove insufficient — it would be better to start moving toward a four-sector
(quadriform) design.
For long-term evolutionary reasons (i.e., TIMN),
our society has grown so advanced, so complex, that adjusting the two-,
three-sector framework will not work well for resolving what have become our
most critical, crisis-riven social problems: health, education, welfare, the
environment, and related insurance matters. They are now too immense,
complicated, burdensome, and interrelated to fit any longer into a two- or
three-sector framework.
For reasons I will keep explaining and exploring
in future posts, including with points I’ve held back, our society’s complexity
is moving into a phase where it will have to add a next / new / fourth sector
in order to progress further. Developing such a new sector is not an idle
add-on suggestion; it is a looming evolutionary imperative, drawn from the arcs
and archives of history (i.e., TIMN).
Best I can deduce, a particular set of matters —
namely, health, education, welfare, the environment, and related insurance
matters — form the bundle that will make sense to aggregate and migrate into a
new sector. None are being addressed well by either government or business
actors, and they are too big and complex now for civil-society actors to
handle. What may explain why they can, and should, be viewed as a bundle is
that they all concern collective and individual care, broadly defined to
include social, economic, cultural, and environmental care — people care, life
care. The cross-cutting purpose is to assure that people can do their best for
themselves, for their families, neighborhoods, and communities, and for the
common good of society. That’s a purpose that would suit a new “commons
sector.”
Consolidation of such next/new/fourth sector may
take decades to unfold, and may seem too far-out for immediate tasking. But it
is not too early to begin considering its creation, identifying the advantages
it can bring, and figuring out how to move relevant actors and activities
(e.g., hospitals, schools) into it.
As has occurred with the long historical evolution
of the prior three sectors (including the particular forms of organization,
property, and information that each requires), this fourth sector will, in
time, become as distinct and independent as the civil-society, government (public),
and market (private) sectors are from each other. As noted above, my current sense
(though I keep looking for alternative prospects) is that it will be a
care-oriented “commons sector,” constructed around yet-to-be-identified
information-age network designs that enable massive sharing, consisting of
yet-to-be-identified organizational entities designed for collective
cooperation (not like independent corporations designed for stand-alone
competition), probably entirely non-profit, with properties commonly held in
enormous trusts. It will not exist entirely apart from civil society, but
rather in conjunction with that realm. It will not be part of the government or
market realms, though it will co-exist with them. It will mean that societies
have advanced from triform to quadriform systems.
I could go on (and will in future posts). But
hopefully this is enough for now to indicate that a more radical narrative is
needed than these three papers offer. They may appear to be saying something
new. But from a TIMN perspective, they aren’t; they’re just reiterating and
shuffling around old three-sector ideas.
What’s increasingly needed are quadriform ideas
and arguments that can appeal to policymakers, so they at least start to wonder
about the growing necessity and potential benefits of moving toward a
four-sector framework.