Why in News: Earlier epochs of growth were driven by land (feudal era), minerals (industrial age), and creativity/innovation (knowledge economy). Today’s fragmented and attention-driven world demands a new model — the affection economy.
Introduction
- Economic epochs have always been defined by the resources or drivers of power they prioritized. In earlier times, land, minerals, or industrial production determined prosperity.
- Later, creativity and innovation underpinned national and global dominance.
- In the 21st century, however, as societies become fragmented, divided, and attention-driven, the defining driver of power and influence is shifting towards care, connection, and belonging.
- This transformation marks the rise of what can be called the affection economy.
Features of the Affection Economy
1. Community & Connection
- Success depends on how skillfully one nurtures bonds of kinship, trust, and cooperation.
- Communities are the building blocks of social and economic success.
2. Soft Power & Belonging
- Countries increasingly invest in strategies that build attachment and belonging.
- Examples: UAE’s “Dubai Life, Dubai Buy,” Australia/New Zealand’s community appeal, and Germany’s social solidarity.
3. Corporate Examples
- Reliance Stadium in India builds a sense of community and collective pride.
- US companies built global platforms like Apple and Google by creating consumption communities.
4. Technology & Social Capital
- Digital networks determine the influence of nations and companies.
- Social capital (trust, reciprocity, cooperation) is now central to prosperity.
Challenges of the Affection Economy Erosion of Social Capital
- As Robert Putnam highlighted in Bowling Alone, civic disengagement and declining community participation weaken democracy and collective action.
- This undermines the very foundation of the affection economy, which thrives on trust and cooperation.
Digital Isolation and Alienation
- Over-dependence on virtual spaces and social media, especially post-Covid, has reduced real-world communities.
- This fosters loneliness, reduces empathy, and creates fragile digital belonging instead of genuine connection.
Rise of Extremism and Radicalization
- Fragmented societies with weakened bonds create fertile ground for alienation-driven extremism, lone-actor violence, and polarization.
- Affection economy requires trust, but radicalization thrives on mistrust.
Limits of Soft Power
- Nations may be respected but not loved (e.g., China’s global projection).
- Similarly, even countries with large networks (like the US) face ceilings due to internal isolationism and social divides.
Exclusivity and Inequality of Belonging
- Affection economy risks being exclusionary, where only certain groups or privileged classes enjoy belonging, leaving others alienated.
- This may reinforce inequality rather than reduce it, undermining legitimacy.
Future Outlook of the Affection Economy
1. Integration of Technology with Human Belonging
- Digital innovation must move beyond efficiency to foster real trust and community, blending artificial intelligence with human empathy.
2. Soft Power through Care and Connectivity
- Nations that invest in cultural diplomacy, diaspora engagement, and global solidarity will gain sustainable influence, not just material dominance.
3. Revival of Social Capital
- Rebuilding civic engagement, trust, and cooperation will be central to strengthening democracies and ensuring inclusive development.
4. Stakeholder-Centric Corporations
- Businesses will need to go beyond profit and build communities of consumers, employees, and partners anchored in shared identity and purpose.
5. Indian Civilizational Ethos as a Guiding Model
- Principles like Vasudhaiva Kutumbakam (“the world is one family”) position India to lead globally by combining technology with belonging, empathy, and inclusivity.
UPSC Relevance
GS Paper 1 (Society):
- Social capital, community belonging, and changing nature of human relationships
GS Paper 3 (Economy):
- Changing paradigms of prosperity and wealth creation beyond material resources.
Mains Practice Question
Q.“The decline of social capital is as much a threat to democracy as economic inequality.” Critically examine in the context of the emerging ‘affection economy’