Category Archives: Economics

#Boao Forum for Asia Synopsis: World’s Largest Communist Party ‘Saviour of Global Capitalism’!

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Filed under Economic Development, Economics

Don’t Steal My Sunshine: Why Entrepreneurs Must Defend Entrepreneurship

The 2000s and 2010s have seen two distinct macroeconomic changes which have had profound consequences for the place of entrepreneurship in global society. The first such development – the mass adoption of Internet-enabled information technology – drastically reduced the barriers to entry to large sectors of the economy by enabling the creation and expansion of partially or totally virtual markets. The second development – the worldwide financial crash of 2007, an event which is arguably still ongoing – reduced the capacity of both the public and private sectors to provide secure and reasonably remunerated employment, prompting a new generation to leap into the sea of business.

The cultural shift in favour of entrepreneurship these occurrences have produced is – viewed from a long-term perspective – nothing short of remarkable. Entrepreneurs – formerly looked upon as a questionable breed – are seen as cool and worthy of emulation. Startups, co-working spaces and business incubators – which until recently were specialist terms – have made their way into the everyday language of commerce and beyond. Young adults who would have naturally gravitated towards long and decorated careers in government or traditional large companies are shunning these safe options in record numbers.

However, there is a serious threat to this otherwise encouraging picture: certain corporations are adopting the language, garb and grammar of entrepreneurship for their own nefarious ends. Such companies are particularly noticeable in poorly-regulated economies, where the the jargon of corporate social responsibility (‘CSR’) is liberally sprayed around to mask the grim reality of market failure perpetuation.

This is deeply concerning, because sections of the general public are all too inclined to dismiss anyone with so much as a balance sheet on their laptop as a socio-economic parasite. All too often, they are not differentiating between the honest entrepreneur – a figure who has the potential to upgrade their community and their country by both financial and non-financial means – and companies which increasingly do not even serve the narrow demographic of their shareholders, let alone wider society, with anything approaching a conscience.

Therefore, entrepreneurs must do what no one else is willing to do for them: distinguish themselves from corporations which produce significant negative externalities; gouge the taxpayer by engaging in rent-seeking behaviour; or treat legitimate, fair and proportionate tax requests like artefacts of magical realism. The price of not doing so – at a time of rationally indefensible economic inequity – may be nothing less than the perceived legitimacy, if not the practical mechanics, of the market economy itself.

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True Romance: China Eclipses United States in Ultimate #Hyperpower Index! #ValentinesDay

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Filed under Culture, Economic Development, Economics

This Could Be Rotterdam, Or Anywhere: Why Brexit is Meaningless

The period since the 23rd June 2016 referendum on the United Kingdom’s membership of the European Union has been marked by both intense introspection and speculation about the future, but the recent news that Eurostar is to launch direct high-speed rail services between London and Holland – the first train to Amsterdam will depart St Pancras on 4th April 2018 – provides us with the starkest evidence yet that Brexit is a legal construct – not an economic reality.

This is not to deny the likely and profound economic consequences that may stem from the UK’s eventual departure from the EU. These are already all too real, even at a stage when such an event remains, as yet, hypothetical.

However, the new Eurostar routes concretely illustrate a point that both sides of the Brexit debate have pretty much completely missed: namely, that nation states are not now the key organising principle of much contemporary economic activity. As the ‘Tokyo prophet’ and McKinsey doyen Kenichi Ohmae noted is his 1995 classic The End of the Nation State: The Rise of Regional Economies, the nation state unit is in many contexts of little analytical usefulness. Abstract concepts such as ‘the Italian economy’ or ‘the Russian economy’ can serve to obfuscate the fact that Milan and Moscow have far more in common with Munich (and each other) than they do with Messina and Mikhaylovka respectively.

Instead, it makes much more sense to talk of region states, which is precisely the reality that the new links between the United Kingdom’s cosmopolitan capital city and its nearest Dutch counterparts reflects. The Eurostar-connected metropolises of London, Paris and Brussels are already to some degree a shared economic space, and Amsterdam – whose air travel market to and from London is presently at the 1994 level of that between London and Paris – will doubtless soon join this zone.

Moreover, the rise of the region state is not primarily policy-driven. Instead, it is essentially a function of technology and economic opportunity; ceteris paribus, there are brighter prospects in an urban area of millions of consumers and access to world markets than in a provincial town, or even a string of provincial towns.

Naturally, the nation state still has a vital role to play in providing goods and services – particularly public ones – that region states which increasingly fund these same nation states do not yet have the administrative capacity to supply. Indeed, the pressing need for basic economic equity has not gone away, and should be seriously and comprehensively addressed.

But Brexit or no Brexit, the processes of economic globalisation are here to stay, and will in fact only intensify. Attempts to stifle these trends by bureaucratic asphyxiation are beyond misguided – they are ultimately futile.

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Filed under Economic Development, Economics, Political Science, Technology

Is Anti-Globalisation the New Xenophobia?

The population of mediolana.com with tasty content galore continues apace with an essay which answers precisely the above question. Back To The Classroom: Why Blaming Globalisation Is The New Xenophobia is now live at our core web presence, and also – a first, this – comes in Facebook note format. See you after the clicks!

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Filed under Economics, Education

Property-Owning Democracy Latest: Economic System ‘Breaking at the Seams’!

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Filed under Economics, Parenting, Political Science

Dollar Shave Club: Emerging Economic Bloc ‘Could Dump World’s Reserve Currency!’

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Filed under Business, Economic Development, Economics, Finance