In my opinion a great deal of what is wrong with the world we live in can be laid at the door of the approach that some people choose to adopt to exchange.
As Robert Louis Stevenson once said: \”Everybody lives by selling something.\”
We all survive and try to prosper by transacting goods, services and favours for money or for other goods, services or favours. Each transaction involves an exchange. But how many truly involve fair exchange?
[box type=\”shadow\”]\”Don\’t go around saying the world owes you a living. The world owes you nothing. It was here first.\”
– Mark Twain[/box]
Supply and demand theory
Supply and demand theory dictates that, in a genuinely open market scenario you can, on the whole, expect fair exchange to prevail.
Unfortunately, though, not every transaction or exchange takes place in a completely open and transparent market – and, thanks to some unscrupulous people, unfair exchange is widespread.
Value perceptions
So what is fair exchange?
It\’s about there being a healthy balance between give and take. It’s about ensuring that all parties to a transaction feel satisfied that they have received fair value for what they have given.
By this you will gather that fair exchange is not something that can be scientifically computed. Whether an exchange is fair or not depends on the perceptions of the transacting parties.
In transactions conducted by entities such as corporations or governments things become more complex. Not only the transacting parties but all stakeholders in the transaction need to perceive fair value.
Natural abundance vs scarcity
If, like me, you believe that there is a natural order of abundance on earth, then it makes sense that there should be no incentive for anyone to deviate from the principle of fair exchange.
The problem stems from a widespread scarcity mentality.
In other words, the mentailty that reasons: \”There is only so much to go around and if I cannot secure at least my share, someone else will get it and I could end up with nothing\”.
Self perpetuating
The scarcity mentality leads to a manipulation of the natural order and an artificial imbalance, which becomes self perpetuating as greed (the desire to have more than one really needs) sets in.
The polarised \’have\’ and \’have not\’ society that results spawns criminal elements that engage in corrupt dealings and even the complete antithesis of \’fair exchange\’ – outright theft.
A simple solution
A simple (yet immensely challenging) solution to the many problems we experience on earth is for all of us to adopt an abundance mentality and promote the concept of fair exchange.
When you have an abundance mentality, you start to attract everything you need. You give freely in the knowledge that what goes out comes back. You start to live a life characterised by fair exchange, others become influenced to respond accordingly and the world becomes a better place!
Relevance to life coaching
At New Insights we teach the principle of fair exchange to our trainee coaches, primarily for three reasons:
– We want them to appreciate the intrinsic power of this concept and to promote fair exchange in all their dealings with their clients.
– We want them to understand that they should never undervalue themselves or the service that they offer.
– We know that when two parties are in a win-win relationship, they will go to great lengths to protect, extend and expand that relationship – so it’s good for them, good for business and good for society.
At the heart of it
At the heart of the principle of fair exchange is a principle that all the great teachers on this planet have attempted to impart to us.
Treat others the way you would like them to treat you!
Great timing Bill. I was thinking of this only yesterday. A well written piece. Thanks for sharing this.
In our home ‘Treat others as you want to be treated’ is our family philisophy. We aim to guide, instruct and correct our children using that single principle as the pointer. Our children don’t have a hundred different rules to remember – they just have the one. And if they succeed in that, all other expected behaviours fall into place.
Simple yet powerful!
This is very true. Once one realise that you do not need to have more (posess more) than what you really need, you clear your own view to better understand what a win-win means.
Fair value will definitely leave everyone satisfied and to be satisfied with one’s life (all the things one is involved with), is the ultimate. My wish is for more people to really understand the principle of win-win…
Thanks for a great article!
My pleasure. Striving for a win-win result in any transaction is a very honourable and immensely rewarding pursuit!
Let me take it in the context of the wildcat strikes that are sweeping through many of our mines, not only mines but also many other industires. These are of major concern to all of us because they affect directly or indirectly all of us. I have worked on mines for over 30 years and I believe some of my observations hold true in many cases.
We live in a world of exchange of goods or services for a living for everyone. We live by exchanging what we have for what we need through the medium of currency. Workers exchange their skills, strength and time for money. In an ideal world such exchange must be as fair as possible, ie each party has to be convinced that the trade is fair, they are getting a fair exchange for what they offer. This would do away with unnecessary wildcat strikes caused by lack of understanding of each party’s position.
What leads to a wildcat strike is a situation where one party (workers) believe the exchange is one sided; ie it only benefits the employer. I have reason to believe that generally most employees want to offer a fair portion of their side in exchange for money and that most employers operate in a strictly ethical environment that is not bent on exploiting their workers. So, both sides are theoretically right in this regard. So, where does it all go wrong???
I believe that the pivotal area that is lacking is
TRANSPARENCY OF INFORMATION. Of course there is confidential infornmation that cannot be shared but most useful information that can be shared with employees is still regarded as confidential and emploers do not share with them, to their detriment! The great question is what is confidential and what is not confidential? If salaries of CEO are so much in public domain, then there is very little that is confidential and employees have to be well informed for their understanding so that they do not have unnecessary questions that create a lot of distrust. South Africa has been too long in an era of “do as told” instead of “do because”. This mindset is now costing us dearly. Many countries, the world over that have been fortunate to avoid the do as told mindset have far less strikes and not to mention wildcat strikes.
You walk around in the work places of many advanced countries and you marvel at how much the workers understand their work both technically and conceptually. They fully undertand the big picture of what the company is doing and where their own contribution fits in. Most companies give their employees a short course on bussiness awareness as part of their induction.
This creates a feeling of ownership and motivation to protect the interests of the company and optimise its performance. The employees are also given some form of budgeting and financial control skills. This comes as a cost to the company but it pays off in the long run by instilling a spirit of understanding and trust between workers and employers. When workers are given skills to basically understand the micro and macro economics of the company, they are in a better position to understand the difference between fair and unfair exchange of services between themselves and the company. The basic budgeting skills protect them against unscrupulous money lenders that prey on their hard-earned earnings every month with interests of up to 50% and over. No matter how much one earns, with interests of this magnitude, no one can survive. If someone’s gross salary is R9600.00 but nets R4000.00 then there is clearly something overly wrong with financial control because this is what leads to the further problem of approaching the money lenders. COSATU would be doing us a major service if they would push for the banning of uncertified money lenders as well.
Hi Reuben.
This is fascinating commentary on a very specific example of exchange as it relates to an important segment of the South African economy – thank you for your thoughts.
You highlight transparency of information as being of critical importance. I see that as part of the communication process between transacting parties and could not agree more that good communication lies at the heart of any attempt to conduct fair exchange!
An excellent article Bill. Thanks for sharing this piece of wisdom.
🙂
That’s an inspirational message Bill, I hope and trust that it will start with me and the rest will follow
Let’s all start together!
Wow,thank you Bill . I am reminded of one the popular scriptures -in Luke 6:38 “Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.”
Treat others the way you would like them to treat you! How simply it sounds – yet how difficult to comprehend that we are responsible for what we get. The giving part would be seamless if we could get that we are responsible for how much we have been receiving or not receiving as it were.
Thanks for your comments Nomase
The most profound statement of all, Bill, is your final one. The world is far too self centred and self absorbed. It needs to replace its desire for immediate gratification with a desire for wisdom, enlightenment, patience, acceptance, love, respect, empathy, kindness and compassion and a realisation that true and authentic happiness lies within, not in any external form (fair or unfair). It is when giving is performed without expecting anything in return, that this world will experience a real transformation.
Thanks Karen!