In the current state of society, where sooner or later a new system will replace the existing one, it is crucial to analyze from an economic perspective which system offers a more suitable foundation for the growth and development of design. Choosing the future governing system of a country cannot be done without considering expertise, industry concerns, and collective well-being.
A historical analysis of design, including its periods of growth and decline, demonstrates that liberalism, with its emphasis on private ownership, a free economy, and industrial competition, has played the most significant role in the advancement of design. Everything that has contributed to the growth of design in response to human needs and desires as users has emerged within the framework of liberalism. In essence, the enhancement of quality of life, industrial growth, and technological advancement have all been driven by design.
The Role of Market Dynamics in the Growth of Design
The competition and development of services and products—which ultimately lead to an improved quality of life—are only possible when valuation and pricing are determined by the market. Design thrives in a dynamic economy because it holds value for both producers and consumers. In a liberal economy, the value of any product is defined in part by the role of design in its final cost.
This competitive valuation process encourages private industries, independent of government intervention, to continuously improve product quality.
Liberalism and design are both centered on growth and transformation, striving to replace existing conditions with more optimal alternatives. As a result, design finds a natural opportunity for exploration and refinement within a free-market economy.
In a competitive economy, differentiation is key to survival, and in the long run, design is the primary driver of this differentiation. As Friedrich Hayek, a prominent economist, stated, “Competition requires change,” and change stems from providing new solutions for modern consumers. Design has the power to facilitate these transformations within economic equations.
Capital: The Lifeline of Design
The growth of design is only possible in societies where capital flows freely among private enterprises. In any branch of design, without capital, failure is inevitable. Capital—one of the fundamental pillars of a free market—enables design to generate value for both the economy and the consumer. This reciprocal relationship helps enhance the overall quality of life over time.
The Dual Impact of Design in an Economy
1. Addressing human needs
2. Enhancing quality over time.
For example, in the past, automobiles were simply a means for faster transportation. However, over time, the quality of this transportation improved significantly. In both stages—product creation and subsequent improvement—design has played a crucial role in generating value.
Design as a Source of Profitability.
Design can serve as a major source of profitability for individuals and the economy. A designer can drive economic growth through creative solutions only when the market accepts their product, allows pricing mechanisms to function, and enables direct access to the final consumer. In such an environment, designers have the opportunity to develop better and more innovative solutions, leading to both higher profits and an improved quality of life for end users.
The Role of Government in the Growth of Design
From a political perspective, a system that fosters design growth within a free economy is one that minimizes interference in these market interactions. A government that maintains a lean structure and seeks economic solutions within the framework of the free market can provide the ideal foundation for the development of design.
A free economy is built on four fundamental principles:
1. Business success without government intervention
2. Creation of competitive advantages to generate value
3. Unrestricted flow of capital
4. Recognition of individual ownership
These elements are the essential prerequisites for the growth of design within a dynamic economy.
Conclusion
In a free economy, businesses must inevitably embrace design as a critical component of their growth and development. It is only through this approach that they can provide the best products and services to consumers. Comfort and well-being emerge from design within the framework of a free-market economy.
By: Majid Ahmadi Khoshbakht
CEO of MAKH
