An Economy of Connection - some thoughts after a Knowledge Wave

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An Economy of Connection- some thoughts after a
Knowledge Wave
vivian Hutchinson
Annual Meeting of Mayors Taskforce for
Jobs Christchurch 7 March 2003
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Good Times ?Whos got the jobs?
Good Times ?
figures good news for a Labour government
(although recovery started before Labour came
into power)
Our question whos got the jobs? JBL special
Statistics That Matter research on the last 4 and
half years
see clearly is the major concern young people
under 25 are not getting the jobs despite making
up up 40 of the unemployed, only making up 14
of the of the new jobs
This is a good Time to be working on employment
issues broken the 5 barrier ... now down to 4.9
official unemployment or 98,000 people had 4 and
half years of good job growth with 165,000 jobs
created since June 1998 over a third of the new
jobs gone to Maori pacific people
most people surprised to find two thirds of the
jobs are going to people aged 45 years and
over (my age group and up)
some regions doing very well most notably
canterbury (increase of 24 jobs) and Taranaki
(22) and Wanganui/Manawatu (20) but little
movement in Wellington, Nelson, Malborough, West
Coast and Southland
but that figure of young people most concerns us
here suggests to me that NZ businesses are
preferring to employ older workers who come with
their skill levels and work attitudes fully in
place. migration figures buy them in, rather
than grow the skills locally.
sectors interesting despite business lobbies
trumpeting this is a business-led recovery ...
the jobs are coming from the business of
people Health and community services increased
workforce by a third manufacturing only up by 1
both unemployment and skill shortages two sides
of the same problem businesses are not investing
in the next generation of their workers -
opportunities to grow their skills on-the-job.
politicians would be surprised to find out how
much of our current job creation is being funded
by the public purse
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Knowledge Wave
the national conversation
one of the most diverse group of established NZ
leaders gathered in one venue diverse actors,
artists, academics, farmers, fashion designers,
central local government leaders, small
business owners, corporate leaders, recent
immigrants and fifth generation NZers including
100 younger people from high school students to
under 35 yr olds identified as emerging
leaders beamed out to thousands on Sky digital TV
the closest thing we have to a national
conversation on ideas
will come back to the figures
some criticisms - elitist, expensive, too many
speakers talking at you, dont think the themes
went deep enough not enough opportunity for
conversation with each other. missed opportunity
for thinking together
2 weeks ago Knowledge Wave Conference chairperson
and most of the Taskforce core group in
attendance if going to address our goals ...
going to have to apply our best minds to the
job what is the leading edge thinking on our
social and economic challenges?
but still a Fascinating overview of NZs current
challenges much of what naturally bears on our
agenda as a Taskforce
heard a lot about how we need a better growth
strategy in order the economic goal of getting
NZ back into the top half of the ranking of OECD
countries by 2010 much made of proposals to cut
taxes, pay off debts, or to spend more on
promoting Nz overseas as a hot destination for
tourism or migration
Cullen may be running a Budget surplus but social
deficit. 59 of survey wanted more money spent
on education and social programmes like
health only 33 use surplus to cut taxes or pay
off debt
cheerleader of this message NZ Herald (also
major sponsor) Special newspaper supplement
Herald / Digipoll research showed NZers much
more concerned about our Social Statistics
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a social deficit
a social deficit
a social deficit briefing papers to incoming
government show one in four (26) Nz children
and one in six (16.5) working age NZers are
dependent on a benefit
a third of all Maori families two thirds of all
single parent families are below the unofficial
poverty line
our 4.9 unemployment rate takes our attention
away from the fact that 134,000 are still on an
unemployment benefit one in 12 NZers one in 6
young people still want a job and cant get one
you all know what this means in your communities
and neighbourhoods or you wouldnt be here
the same briefing papers told us that these
figures have remained at about the same levels
for the last ten years
This is what we need to apply our Knowledge
to of course everything is interconnected ... we
certainly do need to raise our economic
performance
but for most NZers looking at these social
statistics, getting back into the elite group of
the OECD seems a distant concern. the continuing
priority - to address the continuing economic and
social gaps that have opened up between our
neighbourhoods do need an authentic national
conversation on our social deficit and questions
of equity, opportunity, and distribution
Australian High court Justice Michael Kirby, when
he offered a motto to the Knowledge Wave
conference, when he said Economics is good - but
it is not enough its not an either/or
situation we have to do both the economic and
social concerns together.
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our goals
goals and 100 outcomes
the second goal calls for a complete end to
unemployment - no matter what age - by the end
of this decade
these economic and the social purposes perhaps
best come together within the mission and goals
of the Mayors Taskforce for Jobs this is why our
goals talk about zero waste of people and not
the 4.9 waste of people and its not simply
rhetoric goals acknowledge that our communities
are based on livelihood and education and
employment is universally acknowledged as how
families get out of poverty
The Mayors first goal ask that every young person
under 25 in our communities has the opportunity
of work or training by 2005
we know that there is no parent in our
communities bringing up their child to expect
that they will not earn a living or make a useful
contribution yet this is the case for a large
number of New Zealanders and 1 in 6 young people
100 outcomes we say zero waste because we know
that Governance at the local and community level
is about 100 outcomes. Its about getting the
details right person to person
our economic goals ask us to get it right by
striving for the fullest possible employment and
the fullest creativity in our community our
social goals do ask us to get it right by
striving for fullest possible participation and
fullest levels of livelihood in our community.
these are the 100 outcomes we are asking
ourselves to deliver
Of course we are not going to return to the same
full employment world that many of us grew up in
the 50s and 60s ... but we know that if we
address work training and livelihood ... then so
many of our other social statistics will also
start to move
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Inclusion
inclusion
40 of unemployed in one age group we have a
systematic process of social exclusion taking
place
explain it away as winners and losers or blame
the victim as being useless or having an
attitude problem
If we dont address it then group starts to
display a combination of linked problems u/e and
low incomes poor skills poor housing, bad
health, high crime neighbourhoods family
breakdown
Healthy communities not just based on livelihood
but also on a spirit of INCLUSION The Mayors
Taskforce is essentially a strategy for
inclusion. if these are good times ...had best
job creation for 15 years need to make sure we
are bringing all NZers with us
Nothing new here - challenges been with us for
10-15 years something happening in our country
when the most impassioned speech at KnowWave
about closing the gaps between Maori and other
New Zealanders ... comes not from the politicians
or the few community reps on the stage ... but
from a corporate advertising executive interestin
g at KnowWave Kevin Roberts CEO worldwide of
SaatchiSaatchi - NZ and much of the developed
world practicing the capitalism of exclusion
rather than the capitalism of inclusion interestin
g ... from someone who is in the advertising
business which promotes exclusivity as a
marketing tool
SOCIAL INCLUSION (in governance terms) being
prepared to make the commitments and investments
necessary to ensure all people are within reach
of our common aspirations Livelihood is a basic
common aspiration our communities cannot afford
to relegate this basic human right to a
marketplace of winners and losers
SOCIAL INCLUSION is our capacity and
willingness to keep all groups within reach of
what we expect as a society
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Education and Exclusion
Education Exclusion
but bottom 20 are systematically falling behind,
and slipping to the worst in the Western
World Hattie we are the only country where their
standards are getting worse, not better
Good News top 80 of our students are very
competitive and performing to world-class
standards we are - and should be - proud of them
have extreme inequality in our education
system we debate it, we measure it (decile 1-10)
but seem unable to deliver anything different
what I most learned from KnowWave was the fact
that NZ is clearly practicing an education of
exclusion Prof John Hattie university of auckland
because our more successful young people are able
to be more mobile overseas (follow their
teachers ... the KnowWave Trust estimates have 1
million ex-patriate NZers) the average ability
of our stay-at-home workforce is decreasing.
the zero waste of NZers has to start in our
schools just cant cut off the bottom 20 and let
them drift while we concentrate on the success
stories weve got to start practicing the
education of inclusion.
a 1996 literacy study showed that 42 of working
NZers scored below the minimum literacy rate -
meaning they could not cope with the level of
reading required in todays workplace
a third of our students leave school at or before
the minimum leaving age with no school
qualifications a third of the unemployed have no
school qualifications
is it any wonder that this process of exclusion
starts to effect our economic performance?
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Connection
connection
major studies done on how connection makes a
difference a major US study of young people
shows independent of race, ethnicity, family
structure and poverty status, young people who
have a sense of connection with parents, schools
and community are healthier than those who are
not
connection outs a deeper face to the concept of
social inclusion about us turning up and being
present in the lives of younger people having
healthy linkages with whatever young people care
about
Healthy communities built on something deeper
than inclusion built by actively fostering
CONNECTION you can only keep up the systematic
exclusion of a whole group of fellow NZers if
you have no real sense of connection to them this
is what has to change.
This keeping in touch pays off You could even
say there is an economics of connection an
economics that certainly stacks up in the
long-term
take the financial costs of young people NOT
beinng in employment or education British study -
into the long-term financial costs of young
people 16-18 not being in education, training or
employment at 97,000 Pounds each Mahareys office
looked at these figures and translated them to NZ
context. Estimate 10,000 young people in NZ in
this age group. if in education or training long
term savings to NZ taxpayer in excess of 1
billion in terms of income support, health care,
loss of tax revenue and other costs
... so the long-term economics of staying
connected with these young people is not to be
laughed at! equal to Maori land claims
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Putmans address book
Putmans address book
SOCIAL CAPITAL defined as connections among
individuals - social networks and the norms of
reciprocity and trustworthiness that arise from
them
Putman gave examples of how we are losing our
social capital at the moment and how you can give
this social capital an economic value
at Knowledge Wave foremost intellectual
proponents of the economics of connection -
Professor Robert Putman popularised concept of
social capital
Putman and the address book at end of five year
college education their address book has more
capital value than their degree.
made me consider should we give all young
people on our training schemes an address book
and do everything we can to help them grow their
social connectivity as much as specific skills
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Design for connection
design for connection
Would you do a better job than the existing
agencies?
Sweden - local authorities obliged to take
responsibility for young people up to age 18. -
They draw up a personal plan which is reviewed
every 10 weeks. - Emphasis on no-one falling
through the cracks Denmark carrot and stick if
refuse to work with local authority, their income
support is effected emphasis on Connection and
reciprocity
Ive been sitting with a strategic question over
the last year If Steve Maharey suddenly turned
around and made local authorities responsible for
the positive employment and training outcomes of
all young people under 25 in their area ... how
would you design it? (Okay ... imagine Steve gave
you all the resources you would need to do it...)
best practice studies overseas ... while
researching a case for a Taranaki project focused
on young people UK redesigning their transitions
programmes come up with a model actually called
Connexions system to emphasise being in
relationship with the young people
Knowledge Wave OECD John Martin Director of
Employment, Labour and Social Affairs what
works? a lot didnt really work and are just
political palliatives
OECD conclusion what works are strategies for
activation of the unemployed not work schemes
but regular interventions and case management
designing individual pathways into participation,
training and employment you cant intervene, you
cant case manage, you cant activiate unless you
are also connected
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The Business case
the business case
Not just rhetoric. Tindall Foundation in
partnership with Jobs Research Trust to get in
behind Mayors projects catalysed at least 1
million of projects and hundreds of young people
into employment or training Rodger is here
today see website for examples
In wrap-up speech to the Knowledge Wave,
Warehouse founder Steven Tindall spoke of his
support for the Mayors Taskforce for Jobs
Called employment Catalyst ... want to be a
catalyst for social entrepreneurship recognise
that the answers are not going to be found with
the usual suspects
These questions of designing for connection and
inclusion are starting to become better
understood by many of New Zealands leading
businesses looking to get away from the
capitalism of exclusion... by the guy who
designs their ads a major reason for the business
council partnership with the Mayors Taskforce
communities with high youth unemployment not
good communities to do business in Inclusion and
connection is good for business
NZ Business Council later this month to launch
their industry guide to youth employment the
business case for getting involved in youth
employment issues Tindall describes it as
addressing the disconnect between businesses
and the skills, energy and perspectives that
young people can offer. the disconnect is
obvious - one in eight NZ companies are saying
that skill shortages are limiting their capacity
to expand - one in six young people are out of
work or training - businesses have to get
involved!
youll hear later today City Care in this city as
an example contract services to local authorities
in Auckland Chch 500 staff but an ageing
workforce in as traditional labour intensive
work has 80 apprentices now committing to take on
20 young long-term unemployed each year
And Unions ... This meeting has seen the CTU
sign-up also to a partnership with the Mayors
taskforce
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Two main strategies
Two main strategies
so far ... partnerships include mayors
councils government govt depts business unions
/ some community groups ... think wider future as
a civil society movement youth groups / church
groups more
Two main strategies 1. setting cultural goals
for employment and training 2. asking local
agencies to raise their game. on these issues
Mayors Taskforce operates mainly through
partnerships significant point - not to stand on
the outside and criticise but get in there and
ask what can we do together
1. cultural goals are the zero waste of people
goals already spoken of they are about what for
rather than how to they are stretch
goals (even more of a stretch as we get closer to
the 2005 date). not expect the people in this
room to do it by themselves our success totally
dependent on the partnerships we weave and our
success in getting a wide buy-in to the cultural
goals and setting our best minds and hearts to
the tasks
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Raise the Game
oz national taskforce
A charter for the human rights of young people
(distribute copy here)
two years ago Australians did a major taskforce
on youth employment and transition issues in 2001
Our capacity to reach these goals is also totally
dependent on the second point asking the
existing players to raise their game. again ...
cant just do this from the outside and throw
rocks at agencies that arent performing have to
get in alongside them
talk about partnerships all the time but rhetoric
not matched by real progress or real
change partnerships just become an elegant
reperformance of the status quo
shown this to local youth workers and funding
agencies could have been written here in
NZ similar remarks to PM Taskforce in 1994 ...and
we have been repeating for 10 years working
together is the missing ingredient need a change
in culture on how we do things
cultural and paradigm shifts agencies to work
together integrated support networks focused and
collaborative partnerships
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Tamihere at Knowledge Wave
Tamihere at Knowledge Wave
really pleased that Tamihere spoke up at
Knowledge Wave pleased that a voice from the
community sector is around the cabinet
table speech very much like saying the emperor
has no clothes not going to put up with
business-as-usual
Tamihere knows that, like education, the welfare
system needs fundamental change
community workers are very familiar with his
arguments 15 agencies and one family and we need
to make more sense of it at the local level
Tamihere had his own version of the
dis-connect failure by state agencies to
solve the problems of poverty and welfare
dependency actually results in the allocation of
greater resources to those agencies when they
have already proven themselves poorly adapted to
solving the problems (the speech is on JBL
Website)
we have an appalling understanding of
partnership we can do the dance - put out the
press release - take the photo opportunity but
lets not change business-as-usual
Again, the economics of dis-connection here makes
no sense whatsoever John will no doubt be
familiar with the 1998 Manukau report on the
direct and indirect costs of every young
unemployed person under 25yrs Ernst Young
estimated 58,760 for each and every young
person the existing disconnection of young
unemployed people ... already costing us a great
deal of money
I dont agree with all his conclusions or
recommendations, but agree with his call. to talk
about it. we do need much more of a national
conversation about just where welfare is going No
avoiding it ... this taskforce has to get
involved!
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Public Service
need to raise our game - culturally - on public
service Missing ingredient in partnership is
our capacity to work together Missing ingredient
is the skills of co-operation, co-ordination and
collaboration skills of sharing power across a
number of agencies
public service
public service become defined by not how much you
protect your patch and privileges but by how much
you offer leadership to the task by working well
with a whole variety of groups and organisations
who share your public purpose
Yes, like John, ask for a national conversation
on the future of welfare but goes deeper than
that I believe it goes to the heart of what we
may mean by public service
90s a dark decade government depts redefined
themselves as businesses community groups
redefined themselves as contractors fellow
citizens became fellow consumers lost a
generation of co-workers
ut not just in government departments (Donna
Awatere Huata is perhaps the most recent example
of this) sense of entitlement that just seeps up
through organisations you start off doing good
work / then you think something is owed to you /
your lifestyle needs become more important than
the people or mission you are serving
wasnt all bad many good changes at this time as
well lost a deeper conversation with one another
about what it is to be a public servant. rise of
cynicism and self interest and sense of
entitlement in both public sector and in
community organisations
of course the general public noticed thats why
there was such a public outcry when Christine
Rankin and Winz bosses hired a plane to fly to
the Wairekei ..resort
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what we ask of each other
what we ask of each other
The Labour govt has done a great job in calling
for a change of culture in public service ...
Taskforce seeing some evidence of this Public
service wont raise its game by political
dictate not necessarily question of management
or different performance targets or reporting
structures
change culturally change by what we are prepared
to ask of each other a question of an
old-fashioned word - character every example of
cynicism and self-interest had another New
Zealander sitting next to them that didnt speak
up whole plane-load of people who didnt speak up
sorely in need of a public conversation on just
what we mean by public service We need to ask the
question just what is it serving? To me, Public
service is the ability to get in the room and ask
yourself the questions what is the public
purpose here? What value am I adding here for the
common good?
Mayors can speak up we can ask to more from each
other this taskforce started because seven mayors
said we are going to ask for more from ourselves
and each other
you are in a unique governance position to ask
for more Taskforce is a door for different
agencies to work together The Mayoral call to
raise the game amongst your local community
agencies and local government departments may be
the most effective tool you can offer the public
purpose of this Taskforce
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Coda
Coda unreasonable goals
and when we are better connected to our young
people and their transition into working adults
then we need to be prepared for the fact that
they will actually ask more of us
and when we are better connected to our young
people and their transition into working adults
then we need to be prepared for the fact that
they will actually ask more of us
asking more of each other brings us back to
connection we cannot ask more of each other
unless we are connected in a real way
theyll ask us to make sure that there are the
opportunities available to them when they leave
school or finish their training.
Back to the Knowledge Wave ... The final session
included a presentation from the younger
emerging leaders to the rest of us
the cultural goals of this taskforce speak of the
sort of NZ we want to live in the zero waste of
New Zealanders is the sort of vision that we
need our best minds and hearts working on. and
part of our leadership task today is to keep a
national conversation going about these goals and
how they will be achieved.
not unlike most young people I know ... they had
obviously become tired and perhaps a little
suspicious of the TV personalities, celebrity
sportspeople and elite corporate
cheerleaders telling them nothing is impossible
surround yourselves with inspirational
people and go for unreasonable goals
Well, yes we are!. It would have been great if
the KnowWave conference had ended with a unified
call to get in behind the goals of the Mayors
Taskforce theres inspiration here ... and
theres a certain unreasonableness about our
expectations
In their final presentation to the
conference they turned these messages back on
their elders by asking do YOU have inspiration
in your lives? are YOU going for unreasonable
goals?
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Mind Map
overview / mind-map

• The economics of connection
• manukau report
• british report
• Rubert Putman social capital

Social inclusion and connection Kevin Roberts
capitalism of exclusion the US study and
connection

• The Mayors Taskforce as a strategy for inclusion
• setting community goals for employment
• asking agencies to raise their game

good times and who has got the jobs? Knowledge
Wave social statistics
Tamihere on welfare reform experience from
Australia transitions report - human rights
charter wholistic approach experience from
connections and changemakers framework the
taranaki initiative adding governance and making
it local
economy - manangement of household we need to get
our household in order an economy of inclusion
and connection and thinking towards the next
generatuion a civil society movement
the culture of public service and trust cynicism
and self-interest the ceg story in community and
state it changes culturally not by performance
targets by what we are prepared to ask of each
other MTFjobs as a way of asking people to raise
their game
harry potter defined not capacities but choices
choices for a common good
working together is the key missing
ingredient taskforce as door for central and
local govt working together tindall as a catalyst
for social entrepreneurship and inclusion of
business mandate