How to get from me to our team

The author, an FT contributing editor, is chief executive of the Royal Society of Arts and a former chief economist at the Bank of England.

The world is more diverse and interconnected than ever – economically, culturally, ethnically, generationally. This is mainly the result of the post-war explosion of goods and money, people and information. For a long time, the benefits of globalization were taken for granted and largely supported by politicians.

Those days are gone. The question now being asked is whether the increase in wealth and connectivity is the cause of fragility rather than prosperity, both economic and social. This is an important point of departure between progressives (who emphasize goodness) and populists (who emphasize fragility). They all have a point.

There is no ecosystem in the world that is not inspired by the abundance of different species. The complexity of forests and oceans explains its abundance. In the social sciences, the diffusion of ideas, cultures and practices in different communities has been a source of innovation and power for many years.

However, this is a double-edged sword. A rainforest or ocean is vulnerable to intruders such as humans looking for timber or fish. If cultures conflict instead of in harmony, different communities show the same weakness.

Any complex system faces this, but it can be sustained by strengthening relationships and trust – what Harvard political scientist Robert Putnam calls social capital. The decrease in working capital over the years, by Putnamhas tipped the scales decisively towards weakness. Today’s open, connected economy is rooted in fragile, disconnected societies. Neither can it grow like this.

One policy response is to reform the economy, tightening restrictions on the cross-border movement of people, goods, technologies and knowledge. Even though economists (like me) tell us that doing so would slow economic growth, because these policies address the insecurity that many people feel, it is not surprising that they are gaining support – especially around immigration and trade.

But there is another – less expensive, less researched – way to achieve the same goal: calling for social policy instead of repeating economic policy. Financial capital can be the golden thread woven into all government policies, from health to housing, education to land development.

Many organizations already run programs to promote social cohesion and prevent bad behavior. US Senator Chris Murphy has developed a national strategy for public relations. But no country has yet established a national policy of social cohesion with similar goals and challenges.

A good map of the sector is important – often, policies are carried out in the dark and social information is limited. What is needed first is a new set of national accounts, which focus on social issues. The latest research is Raj Chetty, who has created very small maps of social capital, provides an overview of what is possible.

Good moral relationships are formed at an early age. As indicated by Chetty et al, the network created in youth is the key to unlocking the upward movement. But our current educational system is often more about socialization than integration. This calls for a rethinking of education and extracurricular activities, and the ways in which education is delivered, so that communication with people becomes a priority rather than an afterthought.

Then, unplanned urbanization has contributed greatly to the Balkanization of the region. In the future, public cooperation must be at the heart of spatial planning. LSE Professor Richard Sennett has suggested sociable housing, connecting disparate communities through disparate settlements, social spaces and better public spaces. There are already examples in Japan, Scandinavia and elsewhere.

Social development is built on a strong social foundation – religious organizations, youth groups, community centers, parks, sports and recreation centers, libraries and museums. However, the cost of infrastructure development is relatively low compared to physical and digital infrastructure. Re-prioritization and refunds are delayed.

If citizen confidence is to be rebuilt, new governance is also needed. Citizens’ groups and judges are active in building trust and cooperation in different communities. However, they are far from democracy. Going back to the early Greek model of democracy, people-led coalitions can play a major role in the local community.

In addition, popular media and social networks are an important means of communication and, to a large extent, social distancing. Many countries are enacting laws to prevent cyberbullying. But little is being done to support the positive aspects of the internet while promoting social cohesion. Public service broadcasters and regulators have an important role to play in this process.

Finally, any change (even policy) requires leadership. The office of the President or the Prime Minister, which has the responsibility of preventing the unity of the people through policy, should be closely connected with the governments.

In The UpswingPutnam showed how society was formed in the first half of the 20th century, before the end of the second. We can repeat this success through international programs of social cooperation that speak directly to the insecurity that many feel. This would signal a radical shift in capitalism itself – towards a “social capitalism” that can bridge disparate, progressive and populist communities, me and us.