Has talent killed capitalism? In the traditional sense, absolutely! And that’s one the positive effects of globalization. Power in the ‘yes’ economy is moving increasingly in favor of the creative, small, quick-thinking, agile business, country or individual.
So, to say that the traditional sense of capitalism is dead isn’t overstating our current global environment. More precisely, the greatest philosophy that has fueled the world’s most successful economies is evolving. For the Huffington Post blog, Klaus Schwab founder and executive chairman of the World Economic Forum, writes that financial resources ruled capitalism until recently. The more capital a business could acquire, the more power it possessed, the more influence it could wield.
But things started to change with the advent of the Internet, which leveled the marketplace. The Information Age was born and information became cheap, and the bar to enter the marketplace lost tremendous value.
In my book, Globalization Opportunities and Implications: The ABCs to a global social revolution, I write, “The most important value of the information age [became] intellectual capital, much more so than financial capital. “
Shared value creation and powerful social networks are growing stronger, quicker, and faster than ever before. In this new environment, “capital is being superseded by creativity and the ability to innovate,” as Schwab has written. He continues, “If talent is becoming the decisive competitive factor, we can be confident in stating that capitalism is being replaced by talentism.”
This is no dream, either. The positive effects of what Schwab and I write about are shedding light in countries with economic growth, such as the Scandinavian countries, and in far eastern economies too. Check out our post on “What do Singapore and Congo (DRC) have in common?”
There really isn’t anything these countries have in common. Congo is a miserable failure, even though it’s resources are immense. From the perspective of the old capitalism paradigm, it should be prosperous, powerful – influential. Not so.
Singapore, however, has very little in natural resources among other old-school success indicators, but its gross domestic product is nearly 31 times greater than the Congo, its exports are just over 40 times greater than the Congo’s, and its per capita gross domestic product is nearly 200 times that of the Congo.
What’s fueling this? Creative, talented, socially responsible leadership.