We are involved in an external crisis that we do not belong to. We all had this thought, once at least. When suddenly we had to cope with this unpredictable trend, which even specialists could not foresee we felt to be overwhelmed by an external presence, something too big for us.

But what does “external” mean? What is the edge? It is natural and understandable, whenever we have to respond to a threat, to react by reinforcing the group cohesion, by targeting an external enemy and by defining our identity(ies) around close certainties. Does this really help, or it is now the time to change the binomial close-far (or internal-external, with top down or bottom up?

Let’s clarify, we are living in the globalization era, allowing us to drink Guatemala coffee, to invest capital in China and buy Swedish kitchens. As customers and investors we can influence the other side of the planet, no matter if we are aware of this, or not. Individual choices produce global effects, beyond the geographical, temporal or cultural borders we can easily overcome.
Nevertheless, focusing on crisis, we hardly speak about individual choices. Causes and solutions seem to be matter of “top levels” like bank trusts, international organisations and governments.

But at lower levels, “at bottom” there is a working engine fed by small traders, farmers, households, craftsmen. And a civil society, of producers and consumers. The two levels are not in counterposition but any comprehensive overview of the economic system can’t disregard to include both of them. The World Bank and the market place near home the blackberry and the bread brownbag.

This is something the Nobel Prize winners George Akerlof and James Heckman did not forget.

During the 2009 Edition of the Trento Festival they will analyse the macroeconomic effects of individual behaviours. John Talbott, of the Anderson School of Management, will lecture about financial crisis and bottom-up economics while Euclides Mance, consultant of the Brazilian Government will highlight the role of networks of solidal economy to respond to the crisis; Leonardo Becchetti (Banca Etica), Monica Di Sisto (Fairwatch) e Paolo Nerozzi (PD) will explain how by reshaping our patterns and behaviours as customers and investors we could contribute to change the economy.

We are no more speaking about niche topics. The players are, therefore, much more than the expected: not only managers with tight and tie but also bakers in apron. And we are in between.

No special recipes to start. Indeed we need to change such basic rules that allowed a small group of “few” to achieve terrific easy money by damaging many people but, moreover, we must be able to make them be applied. Tito Boeri states that we are not arguing about the pattern but we are trying to fine tune it to find its point of equilibrium and sustainability, made by rules, assessments, controls and responsible behaviours.

As the old saying goes, every cloud has a silver lining. From the lower point (While scraping the bottom) of the crisis we have the opportunity to push a cultural turning point by recognising the key role of actual actors (not only recipients) of the bottom up economy. With effective tools and structures. We are speaking about fair trade, microfinance, slow food, Solidarity Purchasing Groups, bio agriculture, social responsibility of enterprises. Tools which are both effective and sustainable, before being ethically preferable.

The demand of fair economy is increasing as testified by the raising number of personnel of a major Italian Ethical Bank which is doubled in a few months.

So, why can’t we teach it at University level what does it mean ethic finance, sustainable consumption, equal economy stressing the links affecting economic, social and environmental development. No more GDP RoE and Nasdaq only, we can use indicators like ISU to gauge and take into consideration respect of human rights, and environmental preservation, rates of employment and education and screening legal and illegal transactions

To get out from the crisis, we do not look for short term and temporary solutions neither, as above said, to change the system through autarchy, protectionism and anti globalisation. On the contrary, a glance on the world is the answer. By waving small webs they will steady grow, instead of speculative transactions changing the world with a mouse click.

Think globally, act locally, is a known refrain for new entrepreneurs. Although by acting locally we affect the global economy. Even if we don’t like it we must take it into consideration. Please, don’t worry: in this global puzzle, under shared rules, nobody will steal our identity.

The Festival of Economics – Trento, May 29th - June 1st, will debate issues of globalisation and identity, specific and multicultural realities, growth and crisis as essential components of the economic history of recent decades. Experts and scientists of international fame will debate these issues and involve the public in the 2009 Festival of Economics. For additional information on the festival, visit the website 2009.festivaleconomia.eu. (Author: Andrea Dalla Palma)