Emerging Sectors
By Joel Solomon on December 1, 2008 - 2:16pmIt's anybody's guess what our collective economic future will be. All bets are off as unimaginable tectonic shifts destabilize the very foundations of the market economy.
What was already a highly conceptual realm of blind faith for many, may scar current generations of citizens as our grandparents carried the memory of The Great Depression of the 30's. Will wealth placement return to a buried tin can in the back yard? Or currency and gold coins stashed under the mattress?
George Bush called for massive consumer spending to antidote the 9/11 market collapse. I hope Stephen Harper, Gordon Campbell, Gregor Robertson, Barack Obama, and many other political leaders, will call for massive investment in a solutions economy.
Emerging sectors need rapid development that retool society for lower resource waste; less toxics, habitat loss, pollution, meaningless consumption, oppressive working conditions; and fewer business angles that are about no more than money without tangible contribution. We need goods and services that empower, conserve, re-use, create good jobs, enhance community, contribute, build long term, promise a positive future to youth, allow creativity and ambition that are generative, call forth the best of human ingenuity, encourage collaboration, and conspire together towards the best of intelligent, constructive entrepreneurial output.
We can use natural resources more judiciously. We can have wealth of spirit, lifestyle, and community. We can bring forth and reward motivation, creativity, and genius. We can draw on the best thinking of every culture. We can achieve planetary health and sanity.
Disruptive times create opportunities for dramatic change. Emerging sectors that aim for sustainable systems need investment. Clean tech, biotech, communication, educational, and infrastructure tech, all include highly constructive elements. Enterprise that builds around social, environmental, and community profits alongside the financial is no longer radical or merely an idealistic dream. Examples are everywhere. Many have come to the realization and want to participate.
Capital must find understandable avenues and structures to be the fuel for transformative economy. Dozens of models are underway that pool capital to test and grow an asset class. Individuals and institutions of all kinds are hearing the demand for alignment of money with values.
Some new models will work. Some won't. Yet old models are collapsing all around us. Prudent investing is unclear. That means bold investors must step forward to capture the moment.
Invention of the solutions economy has high opportunistic potential. I predict 2009 will see many new structures and methodologies for how capital is placed. New industries will come into focus. Fortunes will be made by those who see the elements and formula for generative business models. Betting on peace, nature, and the long term future, will pick up millions of backers.
That's why Renewal is pouring our focus into investing for change.