5.2 Paradigm shifting

You'll explore how new assumptions and mindsets shape policies and societies, including examples of paradigm shifts in economic theories over time.

What constitutes a paradigm shift? What cycles does a paradigm shift go through?


The concept of a paradigm shift was coined by Thomas Kuhn in his book The Structure of Scientific Revolutions to describe how scientific knowledge develops and changes over time. A paradigm is defined as the set of assumptions, values and beliefs, concepts and theories that shape a body of knowledge. A paradigm is shared by a group of experts within a domain at a certain point in time. Different domains, such as science, economy, society, technology and health, have all undergone paradigm shifts, changing what we know about the world and how we organize our societies.

Systems thinkers have an expanded understanding of paradigms and paradigm shifting. Donella Meadows (1999) sees paradigms, or mindsets, as the place from which a system—its goals, power structure, rules and culture—arises. The shared idea in the minds of society, the great big unstated assumptions, constitute that society’s paradigm, or deepest set of beliefs about how the world works.

Paradigms are harder to change than anything else about a system, but as Meadows argues, there’s nothing necessarily physical or expensive or even slow in the process of paradigm change. Even though societies resist challenges to their paradigm more than they resist anything else, a paradigm change can happen in a millisecond. All it takes is a new way of seeing.

Is a new paradigm shift in economics on the horizon?

In their article “Paradigm Shifts in Economic Theory and Policy”, Laurie Laybourn-Langton and Michael Jacobs (2018) argue that Western economics underwent two major paradigm shifts in the 20th century: first from the laissez-faire paradigmto the post-war consensus and “Keynesian” economic policies aimed at balancing the economy, and then from the post-war consensus to neoliberalism.
According to the article, current conditions bear similarities to previous periods of paradigm shift: The financial crisis of 2007-2008 was a similar shock to the global economy as the stock market crash of 1929 and the oil price hikes of 1973. The economic crisis has continued for over a decade. Jacobs and Laybourn-Langton also explain the rise of populism as a consequence of this crisis.
The article states that there is more pluralism in academic economics than a generation ago, and many prominent economists are criticizing the foundations of prevailing theory and policy. Mainstream economic institutions, such as the OECD, the World Bank, and the World Economic Forum, have also started to talk about the need for sustainable and inclusive growth. Numerous think tanks, organizations, and student movements are also calling for a fundamental reform of economic policy.

Quiz

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How paradigms change

The phases of scientific revolutions


figure

5.2.1. The cycle of paradigm change.

Case study

Amsterdam’s City Doughnut

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Changing societies

Pointing out the anomalies


So, how do you change whole societies? Meadows says that the key is the anomaly stage, as described by Kuhn.

‘In a nutshell, you keep pointing at the anomalies and failures in the old paradigm, you keep speaking louder and with assurance from the new one, you insert people with the new paradigm in places public visibility and power,’ Meadows writes. She recommends not wasting time with reactionaries but rather connect with active change agents and with the vast middle ground of people who are open-minded.

Meadows also says that there is a leverage point even higher than changing a paradigm: ‘That is to keep oneself unattached in the arena of paradigms, to stay flexible, to realize that no paradigm is “true”, that every one, including the one that sweetly shapes your own worldview, is a tremendously limited understanding of an immense and amazing universe that is far beyond human comprehension.’ (1999, 19)

Even though there is no certainty in any worldview, paradigms can be useful tools. Radical creatives can choose whatever paradigm will help achieve their purpose (Meadows 1999). The humble state of ‘not-knowing’ is a point where radically new things start to happen.

The iceberg

Everything that we cannot see but still need to change


Systems change and paradigm shifts require more than what we can see. The iceberg (see Figure 5.2.2.) is a visual tool to help us notice and work on the deeper structural blind spots and barriers to systems change. It helps us understand the underlying factors and less obvious dynamics and structures that influence human behavior and can cause problems. 

Icebergs are famous for being much bigger underneath the water than what is seen over its surface.  Instead of focusing on problems as something that needs to be quickly solved, it’s important to approach them as a symptom of something larger.

According to Otto Scharmer, we live in a time of massive institutional failure, collectively creating results that nobody wants. The cause of this collective failure is that we are blind to the deeper dimension of transformational change. This blind spot exists not only at the institutional level but also in people’s everyday social interactions. 

The most efficient factors that provide the deepest impact on system-level change tend to be invisible. So we really need to reach out and examine the mindsets, assumptions and values that influence us unconsciously. Questioning society-level issues means questioning things about ourselves. We need to look at ourselves—our inner worldpreferably in dialogue with others.

5.2.2. The iceberg.

Reflection

Your iceberg

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From sustainability to regeneration

Shifting the paradigm for businesses—and for the whole society


Regeneration has become a new buzzword in the field of sustainable innovation. Businesses, entrepreneurs and other actors are increasingly noticing the value of going beyond sustainability and leaning into regeneration. This is seen as a paradigm shift that aims to create a deeper and wider impact and a fundamental shift in business practices.

A leading thinker in regenerative design, Daniel Christian Wahl, sees this paradigm shift as a transition from doing things to nature to designing as nature, where people learn how to participate appropriately in the life-sustaining cycles of the biosphere (Wahl 2016).

A key difference between conventional sustainable development and emerging regenerative development is that the latter is based on a more holistic worldview that sees humans and economies as an intrinsic part of nature. Another key difference is that regenerative approaches start from potential instead of problems because problem-solving dictates a future based on past and present problems rather than being open to the entire range of possibilities. Regeneration is based on what is called ‘living systems thinking.’ It emphasizes the collective capacity to evolve toward increasing states of health and vitality over time. It focuses on learning how to think like natural systems so that people can shift their role as humans from a species that destabilizes and degrades to a species that revitalizes the living systems we inhabit (Gorissen, Bonaldi, Haerens & Rato 2024; see also Gibbons 2020).

According to Gorissen et al. (2024), thinking about place in concrete terms is the best starting point for the relearning described above, because it’s the right scale for most people to think and care about. Place offers a communal ground for people across diverse ideological spectra. Place is what people share in common, and working at the scale of local communities, cities, and bioregions is where individual and collective behavior can make a difference.

Real-life activity

Your doughnut economy

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Keywords

Paradigm shift, paradigm, pre-paradigm, normal science, priority of paradigms, anomalies, crisis, scientific revolution, mental shortcuts, human independence, economic growth, progress, creative impulses.

References

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