The two factors that drive Network Society to yield 9 times more global human potential
We have been asked to outline the methodology we used in our previous post 'Global Wisdom lifts human potential from 2.5% (Industrial Economy) to 23.5% (Network Society) … and ultimately 57.5%'. This post provides an additional explanation which includes key graphics and supporting articles.
Two factors drive human potential
There are two factors that have a significant impact on global human potential - (1) Productive work time, and (2) Productive Knowledge participation rate. Industrial Economy achieves low values and, as a result, realises less human potential. Network Society achieves higher values and achieves realises higher human potential.
Productive Knowledge creates prosperity
"Productive Knowledge is the leading explanation for past prosperity and the leading predictor of future prosperity. It is the social accumulation of things made productive in teams, organisations and markets. This accumulation usually takes decades and relies upon the physical and information tools of the “Information Age”.The article "Productive Knowledge is the pathway to global or country prosperity … and predicts your countries future!" and Rethinking Productive Knowledge – break it out of ‘physical’ prison and achieve ‘virtual’ prosperity . Individual countries have a Productive Knowledge ranking. The higher the ranking the higher the incomes and the higher the prosperity.
Productive Knowledge participation rate
Human potential is realised when people are able to participate and contribute in Productive Knowledge and drive prosperity. If people can not participate and contribute to Productive Knowledge, then they survive, but do not contribute to human potential.
The first step - Country potential
An Ernst & Young survey concluded that 28% of a workers time is productive. This is summarised in the article "Survey reveals how people spend time and attention in the Information Age … Wisdom Networks could more than double, triple or quadruple productivity". This article provides a break-down of a study by Ernst and Young in Australia that arrives at the 28% productive work time figure. It also details time lost to travel and "Information Age" process, wasted meetings etc. Travel being a by-product of need to travel to where "Productive Knowledge" is organised. With a Physical approach, people must move the the Productive Knowledge. With organisation as a means of organisation, knowledge is unavailable beyond the organisation boundary.
If 66% of people work in a country, then the limit to human potential in a country is 18% using an Industrial Economy structure. With a Network Society in a country, then the human potential of the country lifts to 57.5%. The additional amounts are a result of an increase in productive time from 28% to 75% from workers, and an additional countribution of 8.75% from the community (or crowd).
The Second Step - Global Potential
14% of people (1bn of 7.1bn) live in developed economies. This means that the developed world using an Industrial Society structure contributes 2.5% to human potential (assuming developed countries realise 18% of human potential).
Objective benchmark of developing vs developed
In our calculations, we have assigned no contribution from the developing world. The Productive Knowledge participation rate is assumed to be 14%. This should be consistent with the definition of developing country. It may be reasonable to make a valued judgement about some minimal participation in Productive Knowledge by people in developing countries.
Industrial economy structure unable to realise human potential
In a society that uses an Industrial Society model, the developing world is required to spend decades and trillions of dollars following a specific development path before they can utilise or contribute to Productive Knowledge. However, all these people are connected and a Network Society offers a fast and effective path for these people to participate and contribute to Productive Knowledge virtually and create prosperity for themselves and their country.
Network Society can realise human potential - lifting productive work time ...
Wisdom Networks lift Productive Time from 28% to 50-75%. We have assumed 75%. A review of the time study above reveals where the productive time can come from. This means country potential lifts from 18% to 57.5%. The articles 'Society Sustainability achieved by lifting potential output from 18.2% (Information Age) to 57.5% (Network Society)' and 'Survey reveals how people spend time and attention in the Information Age … Wisdom Networks could more than double, triple or quadruple productivity' provide a detailed explanation. If Network Society is adopted across the developed countries then human potential contributed by the developed world lifts to 8.1%.
... and lifting the Productive Knowledge participation rate (with the internet)
A Network Society enabled by the 30 "Global Wisdom" networks can enable participation and contribution in Productive Knowledge from people connected to the internet in developing countries. The inclusion of developing world users (1.9bn users or 26% of the global population) lifts global human potential to 15.4% (almost doubling the contribution from the developed worlds 8.1%). The complex and expensive and decades long physical approach to Productive Knowledge is bypassed using a virtual approach that simply organises Productive Knowledge using a cloud app, people and their devices.
More human potential as people are connected to the internet ... and Productive Knowledge
A further 4.2bn people remain to be connected to the internet. This contributes a further 34.0% to human potential which would lift potential contribution under a Network Society model to 57.5%. This is 21 times greater than the Industrial Economy model that organises Productive Knowledge in the developed world. This is summarised in the article 'Global Wisdom lifts human potential from 2.5% (Industrial Economy) to 23.5% (Network Society) … and ultimately 57.5%'.
Sensitivity analysis ... still likely to result in a Technological Singularity
The key drives of the outcome are the amount of Productive Work Time (28%) and those able to participate and contribute to Productive Knowledge. A Network Society simply lifts Productive Work Time (from 28%) and the number of people that can participate and contribute to Productive Knowledge (from 14%).
Changing the assumptions of Productive work time (from 28%) and Productive Knowledge participation rate (from 14%), may result in different outcomes. However, even the most conservative of assumptions result in a Network Society lifting human potential 3x fold which would constitute a Technological Singularity.
Implications for economic development
There are significant implications for the process of economic development. Human prosperity may now be a function of (1) Productive work time, (2) Productive Knowledge participation rate, and (3) the Productive Knowledge ranking of the country in which the person lives. Economic Development needs to focus on these three elements. Global Wisdom aims to lift all three factors in a short timeframe at a fraction of the cost of physical approach to economic development.
The objective is prosperity. Productive Knowledge creates prosperity. Investments in the status quo do not.