| INSIGHTS AND TRAJECTORIES In light of the Prosperity Formula, the evolution from Hunter-Gatherer societies to later models reveals dramatic insights: Social Cohesion Is Crucial: High Social Integration (Si) is a common factor in the longevity of successful organizational structures. It fosters resilience and adaptability. Balance Between E, Si, and I: Societies that balance these three components better will prosper and be more sustainable. Organizational Resilience: Achieved not through economic strength but thanks to high Si and low I. Technological Development Depends on Social Structures: Technological advancements are limited by societies' organizational structures. For example, the complexity of modern technology requires a stable, cooperative, and trusted environment provided only by structures belonging to the Ltd-era. IMPLICATIONS FOR SMALLHOLDERS Most smallholders live in traditional villages and operate under an outdated, uncompetitive village organizational structure. This is akin to using a Morse machine in the age of smartphones; once valuable, now it hinders progress and perpetuates backwardness. The village structure creates insurmountable economic and social challenges in the modern Ltd-era environment. The Prosperity Formula offers practical insights and directions for smallholders to create a prosperous future: Enhance External Integration (E): Adopting modern agricultural practices, like farmers in developed countries, and engaging in broader trade networks has been the primary path to prosperity in Western countries. However, this path failed in developing economies due to a lack of infrastructure and a prerequisite for substantial investment by farmers. Money spent on this path is typically lost without creating a meaningful impact. Strengthen Social Integration (Si): By fostering a strong sense of community and mutual support. Minimize Internal Disintegration (I): By implementing fair resource management and conflict resolution practices. Together: An integrated approach where the community simultaneously increases its E and Si and decreases its I, similar to what the Kibbutz model has done. THE NEXT STEP
Given the historical trajectory of human organizational societies, what can we expect as the next step in this evolution? To answer this, we must consider the current global challenges and see the Prosperity Formula's “opinion” on those issues. For example, let’s take three global problems reflecting many societies: Poverty, particularly among smallholders in developing economies; Social disintegration, which appears in the form of loneliness, increasing isolation, and mental health issues in urban areas and; Economic inequality is reflected in the growing gap between the wealthy and the poor. Now, using the Prosperity Formula, we address those seemingly unrelated problems with one potion, which is best if mixed and applied simultaneously: Integrating Urban and Rural Models: Combining the economic efficiency of Ltd-era corporations with the social cohesion of traditional villages could involve creating urban co-housing communities with shared resources and solid social bonds. In rural areas, this can take the form of urban Kibbutz communities. Technological Advancements: Utilizing technology to enhance External and Social Integration and minimize Internal Disintegration. For example, digital platforms and networks can facilitate trade, provide social support, and manage social disagreements. Sustainable Practices: Emphasizing sustainability in all aspects of life, from agriculture to urban planning. This includes adopting practices like permaculture and renewable energy. FRAMEWORK FOR A BETTER SOCIETY The Prosperity Formula (Prosperity = f (E + Si) / I) provides a framework for analyzing and identifying necessary changes in organizational structures to achieve desired results. While situations and environments may vary, prosperity is always attained by increasing the numerator (E + Si) and minimizing the denominator (I) in the formula. Since the formula deals with relative rather than absolute numbers, there is no upper limit to an organization's prosperity. Conversely, failing to balance these factors can lead to disintegration, poverty, collapse, and ultimately, the organization's disappearance. The Kibbutz structure exemplifies an organizational model that effectively increases the numerator (E + Si) while decreasing the denominator (I) with minimal investment, making it highly suited to achieve and sustain prosperity. The Kibbutz Model Case Study: The model provides a valuable blueprint for future organizational structures. Its emphasis on social cohesion and economic cooperation has allowed it to thrive and succeed for over a century, even in highly unfavorable environments. Modern societies can benefit by adopting similar principles and structures, increasing community resilience and reducing poverty. Here are some actions smallholders can take to instantly improve their livelihoods by increasing their E and Si and decreasing their I: Adopt Cooperative Models, where resources and profits are shared among members. Engage in Collective Bargaining (i.e., economy of scale) to improve trade terms and market access. Invest in Community Building through mutual support networks, social events, shared spaces, etc. CONCLUSION By embracing the Prosperity Formula, we better understand the root causes of organizational successes and failures. The formula teaches us that all organizations are affected by the same factors, where two factors (E and Si) are fully controlled and managed by the community and one (I) to a large extent. This provides a deeper meaning to the statement: strength builds from within. The historical evolution of organizational structures, from hunter-gatherers to villages, Ltd-era, and the Kibbutzim, reveals that a balance of External Integration and Social Integration, coupled with minimized Internal Disintegration, is crucial for long-term prosperity. This formula underscores that true prosperity can't be achieved only through economic gains but must foster solid social bonds and minimize internal conflicts. The Prosperity Formula provides a roadmap for creating more cohesive and resilient communities that are better prepared to face modern challenges like global poverty, social disintegration, and economic inequality. I began this journey, which sometimes took me sideways, to understand the root cause of poverty so we can better address it, thus creating prosperity where today only poverty and hardship grow. It is imperative to remember the following: * An organization's structure predetermines its ability to develop technologies and business models or to harness the potential of existing ones. * Due to its social-organizational structure, the Prosperity Formula predicts that the village model has built-in structural disadvantages that make it inferior to modern Ltd-era organizational structures (including that of the Kibbutz). * From a historical organizational perspective, the village structure has served its purpose for human societies. However, maintaining it now will cause its residents more pain than happiness, as poverty will persist. Ultimately, these communities must either dissolve into cities that enhance Ltd-era organizations or transition into Ltd-era rural communities with higher economic and social integration levels, such as the Kibbutz. In Israel, with the appearance of the superior Kibbutz models, all communities with village structures shifted to either becoming cities or remaining rural communities with far more intensive economic and social integration. This supports the validity of the Prosperity Formula and once again poses Israel of the early 20th century as a blueprint for what we can expect in other developing countries. Finally, we have the knowledge and ability to lead a well-planned change process and thus eradicate poverty instead of letting many decades pass with much more suffering before reaching its well-known end. Mega-disruptive innovations stem from introducing novel, innovative social-organizational structures; now that we have the blueprint, formula, models, principles, and historically proved-working examples of executing such innovation, we should act, not react. Those components, together, present a roadmap for any organization, including impoverished rural communities, to improve themselves to higher levels. By designing and transforming organizational structures, we can transform poverty into prosperity. From then on, riding poverty is not about technology or funds but merely sheer will, as the Israeli pioneers proved possible in 1910. Empowering Communities. By embracing the Prosperity Formula, we can empower communities to thrive. This approach highlights the importance of social bonds and collective efforts in achieving long-term prosperity. It underscores the unbreakable link between economic growth and the sense of belonging and togetherness, which, when nurtured, fosters enduring prosperity. As we look to the future, remember that we hold the power and knowledge to create better societies. By focusing on economic and social integration, we can build a world where all enjoy prosperity and happiness. | 
