Paving the way towards a more sustainable and resilient future

On the eve of the World Economic Forum Annual Meeting in Davos, there is great anticipation about how this year’s theme, “Resilient Dynamism”, will be reflected in sessions, conversations and concrete outcomes. It is not enough to simply talk about what’s needed in the world today. In this time of unprecedented change – and increasingly global challenges – it is essential to develop models, policies and interventions that actually pave the way towards a sustainable future.

Collaborative consumption is an ideal example of how the nature of business is changing in ways that are both resilient and dynamic. Collaborative consumption (also known as the sharing economy, and part of the broader circular economy) is the reinvention of old market behaviours – renting, lending, swapping, bartering, gifting – through new technology platforms that can identify and redistribute assets among people on an unparalleled scale. Many businesses in this space, such as Airbnb (accommodation), TaskRabbit (skills and services) and RelayRides (transportation) are growing quickly, yet I believe we are still at the beginning of a much larger phenomenon that will ultimately see collaborative consumption as one of the mainstays of global economic activity.

In my role as a Young Global Leader, I lead a working group focused on the sharing economy and its role vis-à-vis the future of business. I believe it is imperative to find solutions to help put the world on a sustainable future path. We cannot handle ever-growing production in a world of finite natural resources. Cities and governments around the world are finding it harder to provide for their citizens. Meanwhile, individuals and communities are rediscovering that meaning and value do not reside in “stuff”. Collaborative consumption addresses these trends directly and simultaneously:

• Economics: greater efficiency and resilience
• Environment: better use and/or reimagining of the resources we have
• Community: forge connections and social fabric among individuals and groups
• Technology: leverage the trust and efficiency of network technologies to create new models of social commerce

By focusing on access (to assets, services and information) rather than ownership and harnessing the power of new technologies, collaborative consumption enables us to “do more with less”, unlock latent sources of value, forge relationships, promote qualitative growth and spur dynamic innovation.

The benefits of collaborative consumption accrue to basically every part of society: governments, companies, communities and individuals. In particular, public leaders who embrace the potential sharing-based models stand to gain a great deal. Cities and countries struggling with urbanization, jobs creation, local economic development, environmental degradation or civic ennui can use collaborative consumption as a tool to achieve these ends.

Similar to how eBay revolutionized the marketplace more than a decade ago, Airbnb has enabled thousands of local micro-entrepreneurs to create livelihoods and increase local investment – without tax hikes or spending cuts. Collaborative consumption businesses don’t seek to split the pie differently; rather, they aim to bake a bigger (and more delicious) pie.

Of course, certain bottlenecks remain in order for for the sharing economy to thrive: policies need to be drafted, revisited or updated, and more robust mechanisms for gauging trustworthiness and reputation should be developed. However, as we look at critical drivers and trends today – and head to Davos to discuss them further – collaborative consumption could easily hold one of the keys to the future of business and collective well-being.

Author:  April Rinne, @aprilrinne, is a rising expert on collaborative consumption and the collaborative economy, and leads the YGL sharing economy working group. She is also an expert in microfinance, financial innovation for development, water and sanitation, and policy-making for new business sectors.She was named a Young Global Leader by the World Economic Forum in 2011.

Photo Credit: www.collaborativeconsumption.com

Sources: http://www.collaborativeconsumption.com/spreadables_downloads/CC_Spreadables_Charts/CC_Chart_The_Complete_Picture.jpg