Beyond Pensions: A Radical Systems-Based Transformation of Present-Future Choice

Aging populations worldwide, fiscal deficits, growing sovereign debt, and slowing economies have combined to create and exacerbate what is widely known as the “pension crisis”, characterized by poverty among the elderly substantially due to inadequate retirement income. We argue that the roots of the crisis go much deeper than “pensions”, and involve a long-term secular shift from saving and capital formation to consumption, in the West. Cosmetic “solutions” to the pension crisis, such as delaying the retirement age, are ineffective. The “pension crisis” label itself impedes clear thinking about developing an effective and affordable solution. The core of the problem is the fact that present-future choice tilted to “present”, in the West, for decades. Higher saving, over a longer time horizon, invested at higher average returns, is the ultimate goal, and only one that offers true long-term transformative change. We propose an original, radical, systemic solution, based on an evolutionary social transformation¹1 ‘Evolution has achieved an extraordinary record of design, yet has taken an extremely long period of time to do so’?…?‘The exponentially quickening pace of the evolution of human-created technology, which picked up the pace from the evolution of life-forms’. (Kurzweil, 1999 Kurzweil, R. 1999. The Age of Spiritual Machines: When Computers Exceed Human Intelligence. New York: Viking. [Google Scholar]) of present-future choice toward increased saving; a proposal that addresses the roots of the pension crisis, not just the symptoms.²2 This paper is based in part on a longer study, Gerstenhaber et al., 2015 Gerstenhaber, M., Maital, S. & Buchnik, T. 2015. The Carob Tree: A Radical Evolutionary Systemic Solution to the Pension Crisis. Haifa, Israel: S. Neaman Institute, Technion. [Google Scholar]; an earlier version of the pension reform proposal outlined below can be found in Passig and Gerstenhaber (2014) Passig, D. & Gerstenhaber, M. 2014. A Possible Pension-savings Paradigm for a Sustainable Future: A Developed Country Case Study (UK). Journal of Organisational Transformation & Social Change, 11(3): 207–229. doi: 10.1179/1477963314Z.00000000030[Taylor & Francis Online] , [Google Scholar] and Gerstenhaber (2009) Gerstenhaber, M. 2009. Have You Ever Seen a Retired Tiger in the Jungle? Eradicating Pensioner Poverty: A Manifesto for Democratic and Responsible Capitalism. London: Ruscombe Press. [Google Scholar]. We contend that an effective pension allocation and accumulation system is a stable force for economic growth over time — but only when these significant capital investments are made directly in the real economy and take account of appropriate technological innovation. At the moment the bulk of global investment capital in the West is directed to short-term speculative activity in various financial markets, opportunistically taking advantage of historically low borrowing rates. We provide a macroeconomic simulation of our proposal, should it be adopted, comparing no-change and radical-change scenarios for the Israel economy, and urge scholars to carry out similar projections and analyses for individual OECD countries. We next show how an increase in national saving and capital formation can contribute to “rebalancing” the global economy, between low-saving Western nations and high-saving Asian ones. Finally, we outline our “four pillar” radical proposal, which leverages persistent long-run saving and investment, and illustrate its impact with some macroeconomic projections for Israel, comparing two scenarios, one with low national saving, the second with increased national saving. An achievable increase in the national saving rate, implemented through the tax system and accompanied by intelligent capital formation, can have enormous impact, it is shown, not only on elderly poverty but on society as a whole. In our plan, lower consumption demand through higher savings, is offset by higher capital formation, which has a larger employment and GDP multiplier.     

The Role of Social Capital in the Start-Up of Non-profit Organisations: The Case of Fondazione Welfare Ambrosiano

This article investigates how a start-up foundation can build its organisational social capital, meaning a network of strategic partnerships with other organisations based on trust relationships, in order to fulfil its mission. Based on a case study analysis of Fondazione Welfare Ambrosiano—an Italian foundation created in partnership with private organisations and local public institutions—we explored whether and how some characteristics of the social capital of the foundation’s members contributed to the organisational social capital. By applying Nahapiet and Ghoshal’s (Acad Manag Rev 23(2):242–266, 1998) social capital framework, we discovered that the social capital configuration of the founders and staff, linked to some characteristics of the foundation, had driven the development of the organisational social capital. Our paper contributes to an understanding of what constitutes the best configuration of social capital to allow a start-up foundation to take off.     

Social Capital in Emerging Democracies

Theorists have linked the creation of social capital to the development of the kind of robust civil society that underwrites the well formed and stable democracy. This understanding raises the problem of what is social capital in specific national contexts. A critical issue is whether and to what extent a model of social capital moulded to the EuroAmerican experience is applicable to the new democracies. Three arguments are made in the context of a review of the works of Putnam and Touraine. First, the question of social capital foundationally concerns not only the production of institutions and values but the conditions of production. Analysis thus needs to grasp not only the specifically social process of its creation, distribution, and institutionalization, but the political culture and economy that serve as its foundation. Second, theories of social capital created in the context of nation-state based production-centered political economy do not capture what is going on in an increasingly globalized and circulatory political economy. And third, theories of social capital centered on the United States and Europe are only partially applicable to the emerging democracies of Africa and the postcolony generally.

From social movements to cloud protesting: the evolution of collective identity

This article develops a conceptual framework for understanding collective action in the age of social media, focusing on the role of collective identity and the process of its making. It is grounded on an interactionist approach that considers organized collective action as a social construct with communicative action at its core [Melucci, A. 1996 Melucci, A. (1996). Challenging codes: Collective action in the information age. Cambridge, MA: Cambridge University Press.[Crossref] , [Google Scholar]. Challenging codes: Collective action in the information age. Cambridge, MA: Cambridge University Press]. It explains how micromobilization is mediated by social media, and argues that social media play a novel broker role in the activists' meaning construction processes. Social media impose precise material constraints on their social affordances, which have profound implications in both the symbolic production and organizational dynamics of social action. The materiality of social media deeply affects identity building, in two ways: firstly, it amplifies the ‘interactive and shared’ elements of collective identity (Melucci, 1996 Melucci, A. (1996). Challenging codes: Collective action in the information age. Cambridge, MA: Cambridge University Press.[Crossref] , [Google Scholar]), and secondly, it sets in motion a politics of visibility characterized by individuality, performance, visibility, and juxtaposition. The politics of visibility, at the heart of what I call ‘cloud protesting’, exacerbates the centrality of the subjective and private experience of the individual in contemporary mobilizations, and has partially replaced the politics of identity typical of social movements. The politics of visibility creates individuals-in-the-group, whereby the ‘collective’ is experienced through the ‘individual’ and the group is the means of collective action, rather than its end.     

Social Work Education: Ensuring Its Viability into the Future

The most common type of employer for social workers is a private, nonprofit, or charitable organization (34.3% of all social workers); however 41% of social workers work for the government when combining together federal, state, and local governments (The George Washington University Health Workforce Institute, Profile of the social work workforce, http://www.socialserviceworkforce.org/resources/profile-social-work-workforce, 2017). Given these organizations focus on individuals who are indigent, have serious behavioral health challenges and are typically covered through Medicaid and/or Medicare, ensuring social workers know how to supervise within public sector limitations while simultaneously being steeped in compliance related material, such as medical necessity, is vital to their success. However, most social work schools fail to offer targeted classes in these areas, often leaving graduates to learn from those with little or no formal training in key subject areas. While it may appear that addressing these concerns is relatively simple, there are many obstacles to doing so, including faculty having a lack of familiarity with new content and a distrust of public mental health systems (Hoge et al., in Clin Supv 30:184, 2011). Establishing a core set of public sector-based knowledge areas that build on the Council on Social Work Education nine competencies should be a priority, as otherwise social work education and its future utility may be drawn into question (Council on Social Work Education, Educational policy and accreditation standards for baccalaureate and master’s social work programs, https://www.cswe.org/getattachment/Accreditation/Accreditation-Process/2015, 2015).     

Contemporary Afro and two-sidedness: Black diaspora aesthetic practices and the art market

This paper examines the cases of five mid-career artists with Afro origins – Ghada Amer, Julie Mehretu, Wangechi Mutu, Yinka Shonibare, and Kara Walker – using interviews and other data provided by the artists, dealers, curators, contemporary art historians, and a collector. Such a variety of voices follows Negri [2009. Art and Multitude: Nine Letters on Art, Followed by Metamorphoses: Art and Immaterial Labour. Translated by E. Emery. Cambridge, MA: Polity], who suggests a two-sidedness of art as activity and commodity. Black diaspora aesthetic practices – double consciousness, associated with both Du Bois Du Bois, W. E. B. 1903. The Souls of Black Folk. http://www.bartleby.com/114/100.html. [Google Scholar] [1903. The Souls of Black Folk. http://www.bartleby.com/114/100.html] and Gilroy [1993. The Black Atlantic: Modernity and Double Consciousness. Cambridge, MA: Harvard University Press], and post-black, linked to Golden [2001. Freestyle. New York: Studio Museum in Harlem] – are addressed as part of an evolution of multiple identities. This is about how these artists negotiate the social structure they find themselves inhabiting and encountering to create meaning. These artistic phenomena, as commodities dictated by the circulation of capital, draw attention to the contemporary art market. The management of artistic relationships between artists and their dealers emphasizes what Granovetter [1985. “Economic Action and Social Structure: The Problem of Embeddedness.” American Journal of Sociology 91 (3): 481–510], [1992. “Economic Institutions as Social Constructions: A Framework for Analysis.” Acta Sociologica 35: 3–11] calls social embeddedness, the interdependence of economic and non-economic actions.     

Dimensions of Capacity in Nonprofit Human Service Organizations

The purpose of this paper is to present and develop a firmer grasp of the underlying dimensions of organizational capacity in nonprofit human service organizations. The paper draws on the resource-based view of the organization (Barney et al. in Journal of Management 37:1299, 2011; Wernerfelt in Strategic Management Journal 5:171, 1984), which recognizes that organizational attributes and capabilities facilitate performance. Interviews were conducted with 66 executives in moderate sized, human service organizations to discuss factors that influence performance. Findings suggest that human, financial, and social capital all contribute to organizational performance. Executives emphasized the quality of people associated with the organization including the role of the board of directors in supporting performance. Many respondents also believed that maintaining healthy and dynamic external relationships was critical to success.     

Human Capital,Social Support,and Economic Well-being among Rural,Low-income Mothers: A Latent Growth Curve Analysis

The purpose of this study was to better understand human capital and social support in the long-term economic well-being of rural, low-income mothers in the US. Three waves of data from a multi-state, longitudinal investigation tracking the well-being of rural families, known as “Rural Families Speak,” were used to test two latent growth curve models of economic well-being. Results indicated that human capital alone is not a good predictor of economic well-being over time for this sample. A model of economic well-being that includes both social support and human capital provides a better fit for these data. Findings suggest that social support is a key contributor to long-term economic success for this sample. Implications for public policy are presented.