Rethinking current economics
The great thing about Africa is that not only are the most transformational ideas likely to come in response to her challenges, African economies are still quite young, and thus best-placed to implement this newer vision of capitalism, and global commerce.
David Harlley is a founding partner and CEO of an impact investment venture firm called Third Way Capital and a fellow of the first IE Africa Center Gurus and Griots program.
David grew up in Accra, Ghana, and moved to Canada to pursue an undergrad in mechanical engineering. After a shift into the worlds of venture capital and alternative assets, he co-founded Third Way Capital where he now serves as CEO. Third Way Capital makes long-term impact investments in African SMEs.
written by David Harlley
I have spent the last few years thinking about the many problems associated with capitalism and why they exist or persist. One of my conclusions is that business schools often teach a form of business that exacerbates wealth inequality, reduces competition (i.e., increases wealth concentration), and emphasizes the interests of stockholders at the expense of other stakeholders. This has all become quite mainstream knowledge more recently, especially after the onset of COVID-19 and the ensuing economic recession. I believe that IE is one of merely a handful of universities in the world that is already bucking this trend of narrow, profit-centric thinking or “growth at all costs” economics. But we can always do more. Currently, my ideas for re-organizing economies are focused on employee ownership, improved anti-trust enforcement, and a stronger focus on the creation and strengthening of small businesses.
They say that when the poorest person in the city is taken care of, you can be sure that you have a system that truly works for all. With this perspective, the African population currently represents that poorest person. Solutions that come out of Africa are likely to be the kinds of solutions that will serve the whole global community and improve the livelihoods of the greater majority. The great thing about Africa is that not only are the most transformational ideas likely to come in response to her challenges, African economies are still quite young, and thus best-placed to implement this newer vision of capitalism and global commerce.
I was born in Accra and grew up in Ghana but have spent most of my professional life in Canada. Given that I straddle the worlds of Africa and the West, I have a good vantage point from which to contextualize the ailments of the current western dominated global economy. I would like to contribute to the thinking around re-shaping it for the frontier economies of Africa and other members of the non-western global majority. What we build this time will have to be wiser, more sustainable, and better for everyone.
The preceding sections capture what I spend my time thinking about. What I spend my time doing is related. I am a founding partner and CEO of an impact investment venture firm called Third Way Capital. Our firm’s mission is to contribute to addressing the lack of capital in the small to medium enterprise (SME) sector of economies in Sub-Saharan Africa. We do this by taking minority ownership stakes in high-growth SMEs, and providing these firms with technical support and strategic guidance. We aim not only to help these businesses grow, but to help them grow sustainably with an awareness of the ways in which their activities can negatively impact society and the environment. We also aim to instill in them a keen awareness of the potential of business to bring incredible value to individuals, communities and socio-economic systems. That is how we see impact.
David maintains a blog Good Business where he writes and curates content around re-thinking current economics.
