5.0 social systems are designed to foster capability and they are rooted in relationships. These systems, whilst often relatively light touch and inexpensive when compared with their industrial predecessors, require particular economic conditions to take root, to grow and to be sustained. I call these conditions and requirements the Social Economy. The foundational economic principles that must be used specifically to govern social investment and social institutions include: • A new broad definition of resource blending time, skills, relationships, private and public funds and an emphasis on relationships and reciprocity. • Surplus cannot be extracted but must be re-invested. This rule will support the growth of proven, effective employee ownership models such as Buurtzorg and values-based state models. It will prevent extractive ownership models where institutions for the most vulnerable (children in care, old people) are assets owned and flipped for profit within private equity structures. • Primacy of learning over audit — change will continue in our societies and social systems must be built to evolve. Evolution requires an infrastructure to share learning therefore resources currently dedicated to assessment and monitoring (up to 80 % of welfare budgets) can be redirected to shared learning.
Hillary Cottam, Welfare 5.0