The document proposes a new economic framework called Unity in Diversity (UDI-ism) as an alternative to capitalism and planned economies. UDI-ism aims to internalize externalities by including social costs (Tier 2 costs) in pricing through methods like pollution taxes. This would incentivize choices that minimize total direct and social costs (UDI costs), better aligning private gains with public welfare. The system would also dampen boom-bust cycles through longer time horizons imposed by Tier 2 stakeholders. All parties, including investors, communities and customers, could benefit under this approach.

1. UDI-ism or Unity in Diversity Stephen Lee October 2004 An Alternative to Capitalism and Planned Economy?

12. UDi-ism (Unity in Diversity) Tier 1 Costs (Direct Costs) UDI Cost = Tier 1 Cost + Tier 2 Cost * Best UDI Decision Tier 2 Costs (Public Good) Decision is not optimal if Tier 2 costs are ignored

14. How Boom and Bust Cycles Can be Moderated by UDI-ism 3 Incentive Structures Scales = Economic Health Years Tier 1 Short-term Profit Only

15. How Boom and Bust Cycles Can be Moderated by UDI-ism 3 Incentive Structures Scales = Economic Health Years Central Planning

16. How Boom and Bust Cycles Can be Moderated by UDI-ism 3 Incentive Structures Scales = Economic Health Years The UDI profit motive would also dampen the boom and bust cycle of markets because the Tier 2 costs are typically long term and corporate governance would be influenced by Tier 2 stakeholders, i.e., States and residents who contribute Tier 2 capital in return for UDI capital ownership UDI Profits