In an accelerating fashion, democratic capitalism is producing a problematically different outcome than it has traditionally. Historically, democratic capitalism came to prominence as a political and economic combination because it generated a beneficial positive-sum game featuring rising standards of living for the vast majority of its citizens.
More recently top end talent has garnered so much of the fruits of economic growth that the vast majority of the populace has stopped advancing economically. Given that top-end talent represents such a small proportion of the electorate, there is likely to be a challenge to the current form of democratic capitalism from the vast majority of the electorate who will become increasingly disenchanted with their prospects for economic advancement.
Talent itself, pension and sovereign wealth funds and governments must collaborate to right the ship of democratic capitalism to ensure that it remains the dominant form of political/economic organization in the years and decades to come.
Enjoy Robert L. Martin at the 6th Global Peter Drucker Forum in Vienna, Austria.
Roger L. Martin is the Institute Director of the Martin Prosperity Institute at the Rotman School of Management and the Premier’s Chair in Productivity & Competitiveness. From 1998 to 2013, he served as Dean. Previously, he spent 13 years as a Director of Monitor Company, a global strategy consulting firm based in Cambridge, Massachusetts, where he served as co-head of the firm for two years.
Rogers research work is in Integrative Thinking, Business Design, Strategy, Corporate Social Responsibility and Country Competitiveness. He writes extensively and is a regular contributor to : Harvard Business Review’s The Conversation blog, the Financial Times’ Judgment Call column, and the Guardian Sustainable Business. He has written several Harvard Business Review articles and published eight books e.g. The Design of Business (HBRP, 2009) and The Opposable Mind (HBRP, 2007).
In 2013, Roger placed 3rd on the Thinkers50 list, a biannual ranking of the most influential global business thinkers, moving up from 6th in 2011 and 32nd in 2009. In 2010, he was named one of the 27 most influential designers in the world by Business Week.
This content was first published at druckerforum.org.
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