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Integrating the socially responsible economy into
       mainstream policy: an adaptive approach
       Alberto Cottica - September 2010




lunedì 4 ottobre 2010
Public authorities don’t get the socially responsible
       economy. They need to learn about it.




lunedì 4 ottobre 2010
How do public authorities learn?




lunedì 4 ottobre 2010
The learning authority in theory

       • a new issue gains importance in the eye of the public opinion.


       • politicians include it in electoral platforms.


       • elected representatives embed it into law.


       • new law is enacted as policy by the executive branch.




lunedì 4 ottobre 2010
And this assumes...

       • alternative courses of actions can be identified, discussed and selected
         already in the democratic debate phase.
                                                fal se!
       • the electorate has effective means to enforce their pact with its
         representatives.
                            fal se!
       • Law enactment is “linear”.

                                fal se!




lunedì 4 ottobre 2010
The learning authority in practice

       • inertia


       • windows of opportunity


       • technocracy


       • “short circuit” feedback loops


       • information asymmetries and risks of regulatory capture




lunedì 4 ottobre 2010
Effects of policy are unpredictable even in principle




                agents + networks + evolution
                        = emergence



lunedì 4 ottobre 2010
Adaptive policy making:
     shaping the fitness landscape
lunedì 4 ottobre 2010
Adaptive policy

       • cautious                    • contextual


       • macroscopic                 • reversible


       • incremental                 • accountable


       • experimental                • sustainable

                                     te out comes
                        DON’T  dicta
                                enable  inputs
                           DO
                                BE HU   MBLE
                             =


lunedì 4 ottobre 2010
A research proposal

       • build a model


       • plug in data


       • check for attrition points


       • superimpose model and data




lunedì 4 ottobre 2010
A life cycle of environmental policy in Italy

       • DISCONFORT (1970s -1980s): as the environment is pushed onto the political
         agenda, existing institutions are recruited to deal with it


       • CONCENTRATION (1980s-1990s): ad hoc laws and organizations are created.
         High visibility of the issue.


       • DILUTION (2000s): ad hoc organizations decline, environmental concerns
         integrated into mainstream policies (sometimes only as lip service).

                                         general ized?!?
                           Can   this be            del of
                                      result : a mo
                          Ex pected                   rities
                                        public  autho
                         learni ng for

lunedì 4 ottobre 2010
Plug in data

       • Look for similarities between the socially responsible economy story and the
         the stories from which our model is derived


       • Emphasize qualitative and historical evidence




                                                        nders tanding
                                        lt: a d eeper u
                          xpecte d resu               ble eco  nomy
                        E
                                       ally re sponsi
                          of th e soci



lunedì 4 ottobre 2010
Social innovators: a possible point of attrition

       • recent (4-5 years)


       • far from the low-cost social care picture


       • advanced technology and coordination skills: competitive


       • global scaffolding structures

                                                           ers t hink
       • attention from EU policy makers
                                                 olicy mak
                                      ith h ow p
                         ot fi   t w              econ omy!
             Do   es n                      ocial
                             bout     the s
                           a

lunedì 4 ottobre 2010
Finally: superimpose data and model

       • what has worked elsewhere and might work here?


       • what has worked elsewhere but is unlikely to work here?


       • manage metaphors, avoid toxic ones


                                             : an array of
                             ected   result
                         Exp                     hacks
                                daptive  policy
                              a
                                                and b enefits
                              asizing   costs
                        emph


lunedì 4 ottobre 2010
lunedì 4 ottobre 2010
Three levels of policy

                hardest
                          • Constitutional architecture (Common
                            Law vs. civil codes)                   Be aware
                                                                    of this

                          • Policy style (competitive vs.
                            monopolistic in the provision of
                            public goods)




                          • “Policy hacks” (local changes in
                            policy)
                easiest                                           act here
lunedì 4 ottobre 2010
Why public authorities don’t get the socially
       responsible economy

       • EMERGENT: no one in charge, no clear political representation


       • OUTSIDE THE PREVAILING ECONOMIC PARADIGM: moving outside the
         framework of textbook economics politically risky


       • FRAMED AS A LOW-COST REMEDY TO MOUNTING HEALTH CARE AND
         WELFARE COSTS: but its protagonists don’t always see themselves that way


       • SEEN AS THREATENING: open source software competes successfully with
         business on previously very profitable markets (Linux, Apache, MySQL,
         PHP...). Open hardware is in its way. What’s next?




lunedì 4 ottobre 2010

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Integrating the socially responsible economy into mainstream policy: an adaptive approach

  • 1. Integrating the socially responsible economy into mainstream policy: an adaptive approach Alberto Cottica - September 2010 lunedì 4 ottobre 2010
  • 2. Public authorities don’t get the socially responsible economy. They need to learn about it. lunedì 4 ottobre 2010
  • 3. How do public authorities learn? lunedì 4 ottobre 2010
  • 4. The learning authority in theory • a new issue gains importance in the eye of the public opinion. • politicians include it in electoral platforms. • elected representatives embed it into law. • new law is enacted as policy by the executive branch. lunedì 4 ottobre 2010
  • 5. And this assumes... • alternative courses of actions can be identified, discussed and selected already in the democratic debate phase. fal se! • the electorate has effective means to enforce their pact with its representatives. fal se! • Law enactment is “linear”. fal se! lunedì 4 ottobre 2010
  • 6. The learning authority in practice • inertia • windows of opportunity • technocracy • “short circuit” feedback loops • information asymmetries and risks of regulatory capture lunedì 4 ottobre 2010
  • 7. Effects of policy are unpredictable even in principle agents + networks + evolution = emergence lunedì 4 ottobre 2010
  • 8. Adaptive policy making: shaping the fitness landscape lunedì 4 ottobre 2010
  • 9. Adaptive policy • cautious • contextual • macroscopic • reversible • incremental • accountable • experimental • sustainable te out comes DON’T dicta enable inputs DO BE HU MBLE = lunedì 4 ottobre 2010
  • 10. A research proposal • build a model • plug in data • check for attrition points • superimpose model and data lunedì 4 ottobre 2010
  • 11. A life cycle of environmental policy in Italy • DISCONFORT (1970s -1980s): as the environment is pushed onto the political agenda, existing institutions are recruited to deal with it • CONCENTRATION (1980s-1990s): ad hoc laws and organizations are created. High visibility of the issue. • DILUTION (2000s): ad hoc organizations decline, environmental concerns integrated into mainstream policies (sometimes only as lip service). general ized?!? Can this be del of result : a mo Ex pected rities public autho learni ng for lunedì 4 ottobre 2010
  • 12. Plug in data • Look for similarities between the socially responsible economy story and the the stories from which our model is derived • Emphasize qualitative and historical evidence nders tanding lt: a d eeper u xpecte d resu ble eco nomy E ally re sponsi of th e soci lunedì 4 ottobre 2010
  • 13. Social innovators: a possible point of attrition • recent (4-5 years) • far from the low-cost social care picture • advanced technology and coordination skills: competitive • global scaffolding structures ers t hink • attention from EU policy makers olicy mak ith h ow p ot fi t w econ omy! Do es n ocial bout the s a lunedì 4 ottobre 2010
  • 14. Finally: superimpose data and model • what has worked elsewhere and might work here? • what has worked elsewhere but is unlikely to work here? • manage metaphors, avoid toxic ones : an array of ected result Exp hacks daptive policy a and b enefits asizing costs emph lunedì 4 ottobre 2010
  • 16. Three levels of policy hardest • Constitutional architecture (Common Law vs. civil codes) Be aware of this • Policy style (competitive vs. monopolistic in the provision of public goods) • “Policy hacks” (local changes in policy) easiest act here lunedì 4 ottobre 2010
  • 17. Why public authorities don’t get the socially responsible economy • EMERGENT: no one in charge, no clear political representation • OUTSIDE THE PREVAILING ECONOMIC PARADIGM: moving outside the framework of textbook economics politically risky • FRAMED AS A LOW-COST REMEDY TO MOUNTING HEALTH CARE AND WELFARE COSTS: but its protagonists don’t always see themselves that way • SEEN AS THREATENING: open source software competes successfully with business on previously very profitable markets (Linux, Apache, MySQL, PHP...). Open hardware is in its way. What’s next? lunedì 4 ottobre 2010

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