Frustrated? Confused? Annoyed? This one's for you.

1. Impact Investment
for the Confused, Frustrated, Overwhelmed, and Annoyed.
Friday, March 30, 2012

2. A productive financial economy requires people who have relevant
knowledge, are capable of forming relationships, have adequate physical
health and live in an environment that supports life.
Knowledge, trust, and health aren't sufficient to create financial wealth,
but they're necessary inputs.
Financial
Knowledge
Social
Environment
Friday, March 30, 2012

3. (While I've arranged them in a pyramid here, the
Knowledge, Social, and Environmental aspects are all at
the same level of importance. They enhance each others'
emergence and protect each others' degradation, but if I
had better skills I'd draw some sort of swirl here.
Unfortunately, my drawing skills are limited.)
Knowledge
Social
Environment
Friday, March 30, 2012

4. However we all live within the context of
balancing "love" - the drive for unity, vs.
"power" - the drive for self-actualization (per
Adam Kahane, "Power and Love")
Financial
Love Power
Knowledge
Social
Environment
Friday, March 30, 2012

5. Financial assets are "tangible." Cash.
Property, Plant, and Equipment. Intellectual
Property. These asset are things you can
make contracts over and trade.
Tangible Financial
Love Power
Knowledge
Social
Environment
Friday, March 30, 2012

6. Knowledge, Social, and Environmental assets are intangible. It is not
possible to describe them precisely enough to create a tradeable
contract with them. They are subject to 'network effects'. (cf.
Baruch Lev, "Intangible Assets" and "Winning Investors Over")
Financial
Love Power
Intangible
Knowledge
Social
Environment
Friday, March 30, 2012

7. Traditional Finance measures tangible assets.
Traditional
Finance
{ Tangible
Love
Financial
Power
Knowledge
Social
Environment
Friday, March 30, 2012

8. Traditionally, we have built intangible assets
using philanthropic means (including
government wealth redistribution).
Financial
{
Love Power
Intangible
Knowledge
Traditional Social
Philanthropy
Environment
Friday, March 30, 2012

9. So this is the Traditional Picture.
Unfortunately this has led to some serious
problems, particularly environmentally.
Traditional
Finance
{ Tangible Financial
{
Love Power
Intangible
Knowledge
Traditional Social
Philanthropy
Environment
Friday, March 30, 2012

10. Let's turn everything on its ear, shall we?
Financial
Love Power
Knowledge
Social
Environment
Friday, March 30, 2012

11. If we begin with the assumption that
financial health requires the existence of
knowledge, social and environmental assets,
we can look at the economy in a new way.
Financial
Love Power
Knowledge
Social
Environment
Friday, March 30, 2012

12. The Philanthropic regime preferentially focuses on an empathetic drive for unity.
The "Political" regime empowers individuals' opportunities for self-actualization.
And, in between, the drives are balanced, creating opportunities for economic productivity.
Financial
Love Power
Knowledge
Social
Environment
Philanthropic Productive Political
Friday, March 30, 2012

13. Impact Investment is the regime where
investment focuses not only on the creation Impact
of tangible assets but also on the creation of Investment
those intangible assets that perpetuate a
{
sustainable economy that fulfills the needs of
people to survive and thrive.
Financial
Love Power
Knowledge
Social
Environment
Philanthropic Productive Political
Friday, March 30, 2012

14. Impact
Investment
{
Traditional
Finance
{ Tangible Financial
{
Love Power
Intangible
Knowledge
Traditional Social
Philanthropy
Environment
Philanthropic Productive Political
Friday, March 30, 2012