The Mapungubwe Institute for Strategic Reflection (Mistra) is pursuing the application of the ‘blue economy’ concept, as it believes the concept presents opportunities to explore workable pathways to a more inclusive and sustainable socioeconomic landscape.
The blue economy is based on 21 principles, most of which are modelled around the sustainability of nature.
The concept came about as a project to find 100 leading nature-inspired technologies that could affect the economies of the world, while sustainably meeting basic human needs, such as potable water, food, jobs and habitable shelter.
Mistra knowledge economy and scientific advancement faculty head Velaphi Msimang says it is Mistra’s view that, with regard to reducing poverty, unemployment and inequality, the currently dominant business models are unlikely to lead to the achievement of the targets set out by the National Development Plan.
Further, compared with the green economy concept, the blue economy does not require subsidies or related business models for it to work.
Mistra hopes to apply this concept to any sector of the economy that deals with natural resources and whose exploitation often creates unintended social, economic and environmental burdens.
“Industries that generate products from processing natural resources have the opportunity to multiply their cash flow streams and better immunise their business models from uncertainties and the volatile characteristics of the markets. Communities located near such activities can also participate in the supply chains that support this ecosystem without the need for anchor firms to employ them directly,” Msimang explains.
Mistra will be pursing the application of this concept in the form of a small team of executives from public and private sectors and is also open to exploring related collaboration with all interested entities.
Mistra is facilitating the pursuit of specific applications of the concept in partnership with relevant stakeholders, such as with representatives from energy and chemicals group Sasol and the Department of Science and Technology.