A model of production and exchange is proposed as an alternative to both market-oriented policy and social welfare policy. New patterns of social coordination at work form the basis for a new form of production output value: conducive value. This value is developed in both workers and consumers, activates skills and capabilities, and transforms customers from passive recipients to active users. It broadens the definition of economically valid social activity and it will help to resolve the unemployment dilemma arising with (...) globalization. The article observes that the flexibility demanded by neoliberal, market-oriented policy is antithetical to the flexibility of creative production, which builds on horizontal interaction at work and in exchange, thereby facilitating the creation of social relationships and social capital. In that, it constructs bridges between the new policy and models of social policy which form its platform and enhances the chances for effective democracy in society. (shrink)