Creative Economy 🎨
Creative Economy is driven by Creative industries which have cycles of creating, producing, and distributing goods and services that use creativity and intellectual capital as primary inputs.
They comprise a set of knowledge-based activities that produce tangible goods and intangible intellectual or artistic services with creative content, economic value, and market objectives.
- United Nations Conference on Trade and Development(UNCTAD) 20221
When we look at any asset we first perceive its utility in our minds. This utility translates into value. An Economy deals with the supply, distribution, and consumption of assets with a perceived value. An asset can be something physical like “Sofa”, “Coffee” etc. An asset can also be something creative or abstract like “Jewellery Design”, “Computer Code”, “Music”, “Video Advertisement” etc.
While existing political economies work well with physical assets, they don’t seem to work as well for creative assets whose existence is more abstract. Physical assets are distributed via systems in the physical world and come under the territory of one Nation State or another. Creative assets are best captured by digital mediums and the internet acts as the de-facto distribution channel for these creative assets. Today, there is no way to bind the ownership of creative assets to Nation States. Internet native distribution demands Internet native ownership and monetization to enable the creative economy to unlock its full potential.
Foundation for New Age Markets
Creative Assets are an outcome of a combination of Human Creativity and Intellectual Capital. Both of these truly belong to an individual and are not something regulatory bodies or centralized institutions can control or own.
Due to network effects of the Internet, markets are evolving to become more “Creative Asset Centric” rather than “Institution Centric”. The advent of cryptocurrencies enables any creative asset to create a free market for itself independent of any middleman or institutions. For example, today a music artist can release their music as an NFT without bringing production labels in between, with ownership staying with the artist. We are starting to get rid of institutions as middlemen and are limiting them to be used as distribution channels.
Creative Assets and Emotional Development
Apart from services around Emotional Development being a creative asset, there is a special link between creativity and emotional welfare, which make these a special kind of creative asset. Creative Assets are the output of an individual creator or a group of creators. A creative asset’s impact is a direct reflection of its creator’s creative faculties.
Measuring Impact of Creative Assets
While creativity is something that is subjective and immeasurable, we can definitely measure the impact a creative asset produces on a society. This impact can be horizontal or vertical:
-
Horizontal Impact: This is measured by the number of unique individuals from various interest groups a creative asset manages to engage.
-
Vertical Impact: This measures how much attention a creative asset captures on average per individual.
Measuring these will enable us to design new economic models that let’s us derive and assign value to a Creative Asset. These models, called Tokenomics, that distribute value via tokens will govern the creation, exchange, and consumption of value in a way that aligns the incentives of all parties involved. This value will propagate across all sub-societies and also be exchangeable for various services from NGS. Our Tokenomics will thus, take into account the emotional maturity of a creator and hence incentivize and encourage emotional inquiry and development of the society as a whole.
Abundance Based Economies
There's infinite abundance when we have closed loop systems. Where no output is really waste, but an input for another process. When we design systems and societies with only closed loops we reach a stage of infinite abundance.
Abundance is a Natural Condition
All of us are born into abundance. As we grow we undergo experiences that bind us to certain concepts more than others. This makes us feel certain things can only be done one in certain ways. This is how we start perceiving scarcity in every aspect of our life. Our collective sense of scarcity manifests into how our economies operate.
Any asset gains value because of an underlying utility that we perceive in our minds collectively as a society. This is what creates demand for the asset which eventually translates into a value. When we bind ourselves to particular assets and their underlying utility we create scarcity around them.
-
One asset can have infinitely many utilities. Gold can be used as a currency, as decor, as a conductor, and for infinite other utilities. It is our minds that limit us on the utility an asset can have.
-
One utility can be satisfied by infinitely many assets. As a society for a currency, we can use gold, silver, fiat (USD, INR, GBP etc), Bitcoin, Ethereum, and an infinite other assets. It is we who limit ourselves from finding alternative assets to satisfy a utility.
As a society, we should be free to explore an infinite number of asset-value combinations and run economies around each of these combinations. When a middleman interferes and promotes certain asset-value combinations more than others it creates a sense of scarcity in the society. Today Nation States are this middleman. When a Nation State limits all utilities to one currency bound to its reserves it creates an artificial scarcity in the economy. If we shift our order to Network States we can recover these infinite asset-utility combinations. Each Network State or each sub-society within a Network State can be used to experiment with a new set of asset-utility combinations.
Back to “State of Nature”: New Gaia Economy
All sub-societies within the New Gaia State together will create a superset economy (”New Gaia Economy”) that will run on abundance instead of scarcity.
The NGC aims to use the Creative Economy as a framework to create custom economies around their own asset-utility combination. Each of these economies will also have their own culture and will exist independently as a sub-society within the NGS or as a Network State. Making Creative Economy as the foundation would limit the nature of assets to creative-assets. This is necessary in order to avoid conflicts with the existing order of Nation States. Nation States have their own way of dealing with physical assets but fail to deal with creative assets giving sufficient room for NGC to come in.
Linking Creative Assets to Physical Assets
While the NGC would initially focus on creative assets (Emotional Development Services, Multimedia Content, Digital Marketing etc.), it can potentially also expand into Physical Assets via loyalty models and custom ownership laws. It is our understanding that any physical asset first exists in the idea form as a creative asset. This should make it possible to re-invent our laws around ownership of physical assets to make them an extension of creative assets. The world of physical assets can evolve from a scarcity-driven world to an abundance-driven world.
An Open Economy
Bringing abundance into the world of physical assets will remove notions of scarcity around our basic necessities. Removal of scarcity would imply a drastic reduction of costs around utilities that can satisfy our basic needs. This can potentially lead to a situation where all basic needs(physical and emotional) can readily be satisfied at both individual and at a societal level.