THE EUROPEAN UNION IN A TIME OF RENAISSANCE

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THE EUROPEAN UNION IN A TIME OF RENAISSANCE

• Marc LUYCKX GHISI
• Dean of Cotrugli Business Academy

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CHAPTER 1BUSINESS IN A TIME OF DEEP
TRANSFORMATION
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P. Drucker Transformation

• Every few hundred years in Western History there
  occurs a sharp transformation.
• Within a few short decades, society rearranges
  itself its worldview (paradigm), its basic
  values, its social and political structures, its
  arts, its key institutions.
• Fifty years later there is a new world.
• Peter DRUCKER Post Capitalist Society.
  Butterworth Heinemann, 1993, 2001, p.1.

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One of the most fundamental shifts

• We are living through one of the most
  fundamental shifts in History a change in the
  actual belief structure of Western Society. No
  economics, political or military power can
  compare with the power of a change of mind. By
  deliberately changing their images of reality,
  people are changing the world.
• Willis HARMAN Stanford Research Institute
  (1997), Founder of the World Business Academy

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Transformations five levels

• Humanity is in danger of collective death
• End of the Patriarchal values (CCC)
• End of modernity---Transmodernity post secular,
  flat, tolerant, new level of responsibility and
  consciousness.
• Knowledge society as a turbo of change
• Crisis of all institutions. EU transmodern
  structure

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Transition to Transmodern
Death ?
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Confronting the anguish of change
Acceptation of the Transformation
Cloud of deep transformation of our world
societies
PSYCHOTIC Everything changes
NEUROTIC There is NO change
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TRANSMODERNITYFIVE LEVELS OF CHANGE
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• Humanity is in danger of collective death
  although we have money and technology
• End of the Patriarchal values (Command, control)
• End of Modernity. Transmodernity the best
  of premodern and modern. post secular, flat,
  tolerant, new level of resp. consciousness.
• Knowledge society as a turbo of change
• Crisis of all institutions.

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The Iceberg of TRANSMODERNITY
Level 5 Credibility gap of all Institutions is
increasing
dramatically
Level 4 The knowledge society post-capitalist
society (Drucker)
Level 3 End of Modernity REASON Only Truth,
Science, Violence, Pyramids, Control
Level 2 End of Patriarchal myths, sacred and
values
Level 1 Danger of Collective Death
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Level 2 END OF PATRIARCHAL VALUES
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From Matrilinear to Patriarchal

• MATRILINEAR(-3500)
• Woman Goddess,
• snake her power
• SACRED LIFE tree, blood, birth
• Sexuality Pleasure
• Power life giving
• Beauty art Creativity

• PATRIARCHAL
• God the Father
• women infer sin.
• SACRED Violent DEATH, blood, cross
• Sex pleasure impure
• Power to kill
• Ascetism is better

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END OF COMMAND AND CONTROL

• Every LEADER will have to shift his approach, and
  the political structures towards post patriarchal
  values
• respect for the environment,
• Importance of human relations
• Fostering the joy of creation,
• contact with nature, link with the cosmos,
• Interiority, spiritual dimension

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A NEW WOMAN-MAN RELATION

• In every couple around the world, we see a hidden
  transformation of the relation. Hence... some new
  conflicts!
• This means that women and men are obliged to
  redefine their roles and behaviours.
• Few structures are able to help couples in this
  unexplained transition. SILENCE.

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LEVEL 3 END OF MODERNITY
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Multi level changes...

• Structures From pyramids to void circle
• Status of rational thinking
• Status of Spiritual aspiration (religion) in
  public.
• Status of truth real tolerance.
• Status of Science and tech.
• Status of political violence beyond war
• Status of body, intuition, ethics, esthetics...

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0. Pre-Modern to Modern Pyramid to Pyramid

• PRE-MODERN

• MODERN

GOD
REASON
Economist
Clergy
Government
Government
Men
Men
Women
Women
COSMOS object
COSMOS sacred
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1. From Modern to Transmodern From Pyramid to
void cercle

• MODERN

• TRANSMODERN

Men part of COSMOS
Cultures
Centre is empty
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2. STATUS OF RATIONAL THINKING

• Rational thinking has been a liberation struggle
  against medieval obscurantism.
• It has become now, like a mental prison.
• Rationality is loosing its divine status. And is
  only one way to think.
• Other ways of thinking like intuition, connection
  to the cosmos, gain credibility.

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3. STATUS OF SPIRITUAL ASPIRATION IN PUBLIC

• For evident reasons modernity has taken distance
  from religions.
• But in doing this, it has progressively
  marginalized religions and spiritual aspiration
  as outdated.
• This negation of such an important human
  dimension is in crisis.
• Probably disinction but not separation.

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4. STATUS OF TRUTH

• MODERN
• Pyramidal
• Intolerant
• Rational truth
• Secular (France)
• Disenchanted
• NOT Responsible
• No conscious of whole

• TRANSMODERN
• Round table Hole
• Radical tolerance
• Truth existvoid
• Post secular
• Re-enchanted
• Collective responsibility
• New level of consciousness

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5. NEW ROLE OF SCIENCE TEC.

• Science Technology had received in modern
  times a divine status, because they were
  rational thus true. Now they have to be at the
  service of our survival in a sustainable future.
• Science was above ethics, value free ! Now ethics
  is back and citizens ask questions.
• Science was functioning in a offer economy
  (please consume what we invent !).
• Now science HAS to function in a demand economy
  (please be part of the solution !).

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5. SCIENCE

• And science is reinventing itself at full speed.
• And this happens through hard paradigm conflicts
  (Tomas Kuhn, Harvard)
• Back to a poetic approach to nature... (Ilya
  Prigogine, Nobel prize 1977).

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6. STATUS OF POLITICAL VIOLENCE

• Modernity has created the State as zone of
  internal NON-violence inside. But outside the
  borders, citizens are obliged to kill.
• Transmodernity has invented structures of
  non-violence between States The EU.
• But European Governments sell the EU as a
  market...

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7. STATUS OF INTUITION, ETHICS, BODY, SACRED,
DEATH...

• Many things are changing
• We see that intuition, ethics, esthetics, are
  really becoming important again.
• The very concept of sacred has transformed more
  in 40 years than in 2000 years!
• The way we see death and life after death is also
  changing completely...
• We see a reconnexion of body, mind, soul,
  intelligence...Towards Reenchantment ?

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CONSEQUENCE POLITICAL CHOICES (I)

• EU should be presented as the 1 Transmodern
  political project of the XXI century.
• Politicians should dear to say that we are like
  at the beginning of Renaissance...
• They should call people to reflect worldwide on
  the new sustainable structures of the future.

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CONSEQUENCEPOLITICAL CHOICES (II)

• The main world problems are political
• World hunger
• Education
• Water
• inequalitiy
• The money is there. It would cost 10 to 20 of
  what is spent for arms...

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CONSEQUENCE ECONOMIC CHOICES (I)

• Politicians and economist should have the courage
  to say that we are not anymore in the industrial
  capitalist period.
• We are already in the knowledge economy which is
  post capitalist (Drucker).
• But nobody dears to say the truth to the
  citizens. And they know it .... subconsciously.

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CONSEQUENCE ECONOMIC CHOICES (II)

• And this knowldege conomy (Lisbon Strategy of
  the EU 2000-2010), could be oriented towards
  sutainability and social inclusion.
• We can decide this. A debate is urgent and
  needed.
• But this presupposes that the economists and
  politicians wake up from the free trade
  industrial nightmare which is unable to lead to a
  sustainable world.

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THE DINOSAUR SYNDROM !

• We are in a time of rapid change.
• It is time to speak out and reflect together like
  in this Congress...
• Many structures will become dinosaurs, if they
  are unable to transform...
• Better create new structures without fighting the
  old ones.

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Policy and anguish

• Example war on terrorism. Seems to foster more
  anger and terrorism, and clash of
  civilizations. Exactly the opposite result.
• Like persecution of Christians
• Are politicians able to confront the changes?
• What is their mission today?

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Conclusion

• Where are you personally? Are you feeling this
  transition?
• Where are Croatian young business leaders? Which
  paradigm are they in ?
• Where does Croatia fit in the European
  discussion? Which paradigm?
• What is the future of Croatia? Transmodern?

 
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CHAPTER 2WHAT IS KNOWLEDGE ECONOMICS?(Level
4! )
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DEFINITIONS

• Data what is on the web, unorganised
• Information is already sorted by google.
  Overabundance.
• Knowledge is digested by human brain.
• Human brain and networks are the NEW TOOLS of
  PRODUCTION
• Wisdom, Knowledge are rare. Not enough.

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A new world...

1. New tool of production human brain
2. New CEO Enabling creativity and sharing, Caring
   for humans new human-centered management
3. New value creation process adding K to K.
4. New Trade from Free Trade to Free Sharing
5. New measurements qualitative intangibles
6. New strategy beyond war win-win not win-loose
7. New definition of Progress qualitative
8. Beyond patenting towards Open Source
9. Beyond pyramids towards networks
10. Capitalizing on cultural capital gender capital

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1. NEW TOOL OF PRODUCTION

• The tool of production is not anymore machine
  technol.
• It is human brain Networks sharing knowledge in
  order to create new K.
• This new tool of production is more important
  than capital and technol.
• Hence Post capitalist society!

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2 NEW CEO FUNCTION

• Old CEO command, control, capture
• New CEO
• enable the creativity of his human capital
  tool of Production
• Enable and creator of networks around his team.
  Cannot control networks!
• Care for the intangible assets brand

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2. CEO AND NEW MANAGEMENT

• Human capital is central because it is caring for
  the tool of production Please come back!
• Thus Management shifts 180 towards human
  centeredness more creativity-centred, gender
  culture centred.

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3. NEW VALUE CREATION PROCES

• INDUSTRIAL SOC.
• Add value to object
• From steel to car !
• Tool is Machine
• Humans are cost
• Management is machine-centered
• Machine is central

• KNOWLEDGE SOC.
• Create new K
• From data, info to K
• Tool is Human brain in Networks
• Humans are capital
• Management is Human-centered
• Machine is at service

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4. BEYOND TRADE (I)

• If I exchange an object against money, I loose
  the object. This is trade I win and I loose.
  Win-Loose logic
• If I exchange knowledge, I do not loose my
  knowledge. I win and you win. I am not trading
  anymore. I share. This is a win-win logic of
  sharing.

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4. BEYOND TRADE (II)

• INDUSTRIAL SOC.
• Free trade of objects
• Industrial structure
• Pyramids
• Unemployment
• Pollution
• Quantitative growth

• KNOWLEDGE SOC.
• Free sharing of knowl.
• Post-industrial-capitalist.
• Network value creation
• Self-creation of my job
• Immetrialization of prod.
• Qualitaitve growth

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5. A NEW SYSTEM OF MEASUREMENTS

• Intangible assets is a new concept invented
  by Karl Erik SVEIBY (Sweden)
• They are becoming more and more important in the
  knowledge society
• Because the knowledge society is about knowledge
  which is immaterial, intangible and qualitative.

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5. A NEW SYSTEM OF MEASURE. INTANGIBLE ASSETS
(I)

• Intangibles assets
• Know how,
• Reputation,
• Trust in the company,
• Structure of the company,
• Strategy (balanced scorecards)
• Relations with personnel,
• Relations with clients,

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5. A NEW SYSTEM OF MEASURE. INTANGIBLE ASSETS
(II)

• Relation with civil society
• Relation to environment
• Relation to our collective Future and
  sustainability
• But also quality of the Networks

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5. MEASURING INTANGIBLE ASSETS ?

• Stock exchange measurements are still looking at
  financial tangible assets (quantitative) but
  they increasingly look at intangible assets
  (qualitative).
• Today a company is measured more and more by its
  intangible assets.
• Example Mens Wear USA. World Business
  Academy, Spirit in Business.
• See also Neskey www.neskey.com

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5. Intangible indicators grow
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5. GROWING IMPORTANCE OF INTANGIBLE ASSETS (II)
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6. NEW BUSINESS STRATEGY/ WIN-WIN

• Old business strategy is warlike. Battlefield
  images are frequent. Patriarchal values dominate
  win-loose
• New business strategy much less violent,
  competition through collaboration is the new
  motto.
• Knowledge behaves like love!

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7. NEW DEFINTION OF PROGRESS

• The industrial modern defintion of progress is
  quantitative. More is better.
• This defintion is UNSUSTAINABLE
• The knowledge society implies a qualitative
  defintion of progress.
• Good new this allows a reorientation of our
  societies towards sustainability!!

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8. BEYOND PATENTING

• The whole of the industrial production system is
  based on secrecy and patenting. I have this
  technology and you have not. So I win!
• Information and knowledge always leak
• In the knowledge economy we will NOT be able to
  maintain secrecy, neither patenting.
• See generic medecines, I-Pod music etc,.

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9. BEYOND PYRAMIDS TOWARDS NETWORKS

• Pyramids are the normal structure of all
  organizaions.
• But knowledge is created only in networks. This
  is the form that could prevail in the XXIst
  century.
• Pyramids are all in crisis everywhere. In
  Govenrments, Military, Churches, NGO etc.

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10. CAPITALIZING ON CULTURAL AND GENDER CAPITAL

• Paradoxically culture and gender diversity
  becomes important as they feed creativity
• The knowledge management is thus potentially
  socially inclusive and sustainable
• The Lisbon strategy wsa thus excellent and
  forward looking.

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CONCLUSION NEW VALUES

• Underlying values needed in the industrial
  capitalist society are freedom, initiative,
  ceativity
• NEW Values are needed
• Freedom (of sharing)
• Solidarity, Caring, Respect
• Transparency
• Concern for the Common Good

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CHAPTER 3THE EUROPEAN UNION IS NOT A STATE
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History of the EU 1

• Monnet refuses Council of Europe 1949
• Monnet Adenauer May 9 1950.
• Coal Steel Treaty 1951.
• Failure of Community of Defense 1954.
• Treaty of Rome 1957.
• Single Act, Maastricht, Amsterdam, Nice.

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History of the EU 2

• Under Delors 1985-1995
• social policy social fund for poor citizens
• devpt Policy for the ACP (Lomé)
• regional policy solidarity/ poor regions
• Environment policy overarching all !
• Cultural policy no very rich!
• abolition visas ( Schengen)
• Foreign Policy Defense security P

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History of the EU 3

• 1999 Commission is killed by the European
  Parliament.
• Hence period of Retreat and fear
• 2000- 2005 is Free Market period, although
  obsolete concept.
• 2006- 2010 Transitions and dangers?

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EU Today and tomorrow

• 1950-1985 heroic pioneers times
• 1985- 1999 EU with a meaning
• 1995- 2005 Market orientation
• 2003 Constitution better but not enough!
• The commission has too much power,
• European Parliament has too little power.
• 2005 return to Meaning of EU dream.
• More spirit, ethics, responsibility, solidarity

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US and EU DREAMS 1

• American Dream
• Politics
• Modern State (1800)
• Independance
• War death penalty
• Science Technol.
• Always good
• Modern approach

• European Dream
• Politics
• Transmodern (2010)
• Non-violent pact
• No war negotiation
• Science Technol
• To be monitored
• Transmodern approach

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US and EU DREAMS 2

• AMERICAN DREAM
• Business
• is Gods blessing
• Transmodern Busin.
• Economy
• Freedom Propriety
• Free Trade as religion

• EUROPEAN DREAM
• Business
• Burden of proof on B
• Transmodern Busin.
• Economy
• Freedom Social
• Sharing in networks

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US and EU DREAMS 3

• US DREAM
• Environment
• Against our freedom
• National approach
• Burden on consumer
• Human rights
• National approach
• Integration process
• By indentification

• EU DREAM
• Environment
• Sustainability is norm
• World Consciousness
• Precaution principle
• Human rights
• Global transnational
• Integration process
• on diversity

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US and EU DREAMS 4 (Rifkin)

• AMERICAN DREAM
• Work
• Life for work
• Time efficiencydoing
• More efficient
• National identity
• God given mission
• Death Instinct
• Consume without care
• No care for survival

• EUROPEAN DREAM
• Work
• Work for life
• Quality of life, being
• Less efficient
• Multi level identity
• Our common survival
• EU Life project
• Non-violence project
• Also towards nature
• Global ethics

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EU dream and citizens

• Are citizens aware of the EU dream?
• Are Europeans not too skeptical?
• Are they aware of the transmodern quality of
  their dream?
• Are the EU governments getting the dream?

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The EU is the first transmodern entity

• Alliance of non-violence between States
• Modernity has invented the State non violence
  inside national territory
• In a global world we need non violence between
  States. Success of EU model.
• EU Member States do not recognize EU as
  transmodern. A duck!

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Paradigm shift in F Policy
Premod Modern Trans Trans -
1. State Empire State Post Sta EU Anarchy
2. Foreig Policy Conquer Econom interests F pol internal Anarchy
3. Power Land Capital Knowled Manipul
4. Interfe Colonies No/trade YES HR Maffias
5.Nat. Interest Imperial State Com. Good Relig. Expans.
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Paradigm shift in F Policy
Premod Modern Trans Trans -
7.Border Extend Fixed Porous Paradig
8.Securit Relative Deterr. Sharing NewCon
9.Religio Pope 1 Separe Distingo Clash
10.Secr strategy Strategy NO Pseudo
11.Gove Force Econom Honest Manipul
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Consequences for BUSINESS in the XXIst century?

• From State towards post state diplomacy
• Inside the Union Internal of Foreign Pol?
• Outside the Union?
• Explain the EU logic?
• Invent a post-Clausewitz Foreign Policy?
• Invent a new Defence Policy?
• How to relate to modern and premodern?

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Some good Books

• Peter DRUCKER Post capitalist society, Harper
  Business, New York, 1993.
• Verna ALLEE The future of knowledge Elsevier
  Science, 2003, USA.
• Harvard Business Review on Knowledge management.
  2006. Book with 8 articles.
• David ROONEY (Australia) Handbook on the
  Knowledge economy 2005.

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Good Books (II)

• Jeremy RIFKIN The European Dream when Europes
  vision of the future is silently eclipsing the
  American dream Penguin 2004.
• Ray ANDERSON Mid Course correction 1998.
  www.chelseagreen.com (Interface)
• World Business Academy www.worldbusiness.org
• Neskey on intangible measurements
  www.neskey.com

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Some good Books III

• Jeremy RIFKIN The European Dream when Europes
  vision of the future is silently eclipsing the
  American dream Penguin 2004.
• Ray ANDERSON Mid Course correction 1998.
  www.chelseagreen.com (Interface)
• World Business Academy www.worldbusiness.org
• Spirit in Business www.spiritinbusiness.org
• Neskey on intangible measurements
  www.neskey.com