Convertible economy

Inspiration

Our thinking was based on the fact that solutions currently proposed are all at a government level. Governments pledged to support the society and the economy during this crisis, unlike in previous crises. It is now time to become active citizens and contribute to social and economical innovation. From that perspective, funding is a challenge. Overriding the fact that this should normally come from the government and the banks is difficult, yet not impossible. Just as we transfer our energy and thoughts to medical personnel, we can actively assist our economy via different hubs that are well supported and regulated by the government.

What it does

This project is a suggestion on how local businesses can be supported by the community in alternative ways and under the current circumstances. It aims to provide an idea for alternative and quick response finance hubs for businesses, especially in the food sector. The solution suggests that economy stakeholders other than the government and banks can assist in creating growth by fueling a “convertible” economy, i.e. an economy that transforms according to the state of the economy. To do so, various types of incentives can be introduced based on a tax allowance structure not only at a country, but also at a pan-european level. It is considered that this solution could also underpin the EU’s fiscal policy and rules.

How I built it

The current situation under the COVID-19 crisis was analysed and it was identified that despite all the suggestions and media discussions, there are still problems to be overcome. The most important is that economies are still not adaptable and not ready to face unprecedented situations. Thus, it is essential to build in resilience, and open new growth paths during the various crises that arise. As a result, the brainstorming process was focused on finding ways on how economy stakeholders (other than the government and banks) can assist in creating growth and transforming companies into adaptable businesses, which is what is required to overcome the crisis that we are currently falling into.

Challenges I ran into

Mostly related to the various aspects of the implementation of the convertible economy. What was described in the beginning of the hackathon as a convertible economy was only a theory, but practically a lot more thinking was required to determine implementation methods and resources that the project will require. What we consider as the most difficult part in the implementation phase is actually the changes that alternative funding will bring to fuel growth for businesses in trouble.

Accomplishments that I'm proud of

The idea of a "convertible" economy. This is defined as an economy that is adaptable to every situation and economic cycle. It allows businesses to transform their activities and continue earning or growing, albeit with a reduced rate, or go back to their previous model, or even use a mix of activities on a continuous basis and boost their growth and resilience. The convertible economy is developed as more and more conversions are implemented on a rolling basis.

What I learned

One idea can be the spark of a greater model that can be adapted and used to promote innovative working ways. Indeed, in the case of convertible economy, the focus is on building up resilience against various crises and fueling growth via alternative finance hubs. Which, from what we learnt, is (possibly) the solution to every crisis.

What's next for Convertible economy

It is clear that the project would need to be developed by a newly-formed entity that would promote the convertible economy. We are convinced that implementation may be hard given the context and, as such, it is important to find supporters to further develop the ideas and propose a concrete plan in every aspect. This project is a multi-stakeholder project and it requires initially legal advisory resources. Subsequently pro-active engagement with policy makers will be required throughout the implementation phase.

Built With

• experience
• ideas
• msword
• prezi