The Brain Economy

Although the concept of the Brain Economy might evoke associations with the Brain Drain and its economic impact, let me state right at the beginning that it is not directly related to that topic.

So, what is it then?

The Brain Economy focuses on the capacities and capabilities of the human brain. Attributes such as self-regulation, emotional intelligence, creativity, compassion, altruism, systems thinking, and cognitive flexibility are among the most prominently represented features. According to the OECD, these skills are of critical importance in a digital economy that relies heavily on good brain health. The title under which the economic impact of the lack of each of these factors is examined is named the Brain Economy. Considering that we are talking about a global economic loss of around 1 trillion dollars annually, the importance of this topic can be understood even better.

Stress is the human brain's capacity to respond to threats to its survival. Because everyone perceives it differently, it is subjective. However, there are certain conditions that tend to increase our susceptibility to stress, such as sleep deprivation, excessive working hours, or unhealthy lifestyles.

For instance, according to reports published by the World Health Organization (WHO) and the International Labour Organization (ILO), working 55 hours or more per week increases the risk of experiencing an adverse cardiovascular event by 35%, while working 35 to 40 hours per week reportedly increases the risk of death from ischemic heart disease by 17%.

One of the consequences of a stressed brain is said to be the disconnection of the orbitofrontal cortex, a region associated with decision-making. Neural circuits associated with emotional regulation and memory also shut down.

This finding supports why people working under excessive stress suffer negative impacts on their jobs and health due to rising levels of aggression and toxicity in their bodies.

Furthermore, work-related stress, alongside other negative habits such as a sedentary lifestyle and smoking, can lead to poor nutrition and elevated cholesterol levels, which are factors capable of causing cerebral infarction.

In corporate settings, the Brain Economy aims to reduce heart attacks and strokes, obesity and addictions, depression and anxiety disorders, as well as chronic stress and burnout syndrome.

According to data from consulting firm Gallup and the McKinsey Health Institute distributed by the Tec Institute, the benefits of positive leadership strategies and healthy working environments manifest as 66% fewer sick days, a 55% reduction in employee turnover, a 41% decrease in absenteeism, a 40% drop in defective production, and a 125% lower likelihood of burnout.

So, how do we manage the Brain Economy?

Here is the prescription!

According to WHO, a better working environment can be created through leadership and commitment—for example, by integrating mental health into employment policies (providing mental health and employment services to companies with fewer resources), by aligning labor laws and regulations with international human rights instruments, and by enforcing non-discrimination policies in the workplace.

Considering that the annual cost of mental illnesses and the resulting loss of workforce productivity to the global economy is 1 trillion dollars (source: WHO), sincere steps must be taken in this domain. Everyone—public institutions, corporations, and employees alike—must do their part, as it is critical for a sustainable future.