Post 2 - Growth & Trade Challenges.
Global trade policies have failed. Trade is happening, yet the economy favours the elites, and the more developed countries.
The idea that Free and unregulated producing freedom and equality, has been proven wrong. It has been proven that they have actually increased inequality and monopolies. Exactly what one would expect from Unregulated markets.
2019, it was recognised that policy makers must ensure a level playing field, that is suitable, for evolving, business models. Technological diffusion (the innovation in start-ups) was decelerating, was very worrying too, as only a few companies led the way forward. This has sparked several debates, especially with the Big Tech companies.
2020: For the first time, growth policies were recognised as unsustainable, and this was eminent with India and China's growth slow down. The growth habits are again a cause for concern, there's more to life than GDP. Not everything that counts can be counted. Elites are not focused on what matters to ordinary people. GDP and maximising profits is being challenged, more meaningful measurement to replace GDP is not clear yet.
Why is this so important?
Opportunities and challenges are already present in the existing financial markets, and will have more impact as innovation in finance forges ahead.
There is a need for new social / economic policies to address both.
Protecting competition in a digital world - is it too late? One question is How to make the internet safe for democracy? Regulating the disruptors is an enormous challenge, that most governments are currently not equipped to manage. A great deal of effort, is needed in this arena - it's not only about audit and compliance. Auditing and Compliance is too late. It's the successful disrupters, companies, not governments that set policy sometimes, and then, it is too late to reel in. Privacy & consumer choice has already been eroded, dangerously, by the big tech companies.
Adequate Regulation to protect the consumer, and competition, will be one of the toughest challenges, faced in the digital world. With inequality, justice is eroded, rule of law breaks down, and conflicts are exacerbated.
Creating new social / economic policies for growth moderated by justice / equality encouraging opportunities for everyone, may be a solution.
In Cambridge, UK, half a century ago, economists discussed justice and its relationship with income inequality.
They wrote, and finding solutions for integrating ideas of incentive based growth, and preferences for equality. Anthony Atkinson, James Mirrlees, and John Rawl's "A theory of justice" showed how to integrate views about inequality, with their measurement.
Also, as more crises occur, due to climate change, and natural disasters, the poorest of the poor suffer the most, needlessly in some cases.
Mis-management of trade/movement & inadequate policies have exacerbated these crises, with simultaneous devastating incidents, displacing whole regions at a time.
There is a need to pre-empt conflicts, and crises. Global conflicts will result, if we carry on with the unsustainable, growth habit. Collaboration will help dissipate the impact of these as they arise, especially as food production, and moderate living environments, will decrease due to Climate change.
Cooperation between countries, at a unprecedented scale, is needed for a new age of volatility.
What needs to be done urgently?
New growth policies tempered equality, justice are needed to protect competition in a digital world. (Yesterday). There needs to be a way of measuring success of these policies and finding an alternative measure for prosperity, rather than GDP, will be helpful. Forums to encourage and enable that co-operation between countries need to be set up, inclusively to enable the policies to be created.
What needs to be done in longer term: Regulating the disruptors is an enormous challenge, that most governments are currently not equipped to manage.
3 Take-aways: What can i do to help, in my bubble?
- It starts in your bubble. Inequality is present everywhere. Try to find and create solutions, like community centres, clubs, places to encourage positive behaviours, are some of the ways you can do this. Opportunities are needed, most people want a way to improve their quality of life, with dignity, not charity.
- Feedback to regulators & companies alike. Help equip the governments to regulate the disruptors, and you will be doing your part in keeping the internet safe for democracy? Feedback what is acceptable / not acceptable to the regulators. Complain. Yes, complain, and complain, and suggest what you would like to see happen instead. Not only to the provider, but also to the regulators, in real and the virtual world.The w3.org is a great resource to learn more about this.
- Cooperation between countries, and citizens is needed for a new age of volatility. Educate yourself about other countries. Foster links abroad. If you already have links abroad, educate yourself and them, as to what challenges you both face. When it comes to making decisions about daily life, and following electoral campaigns, both parties will be aware of the challenges faced there too.
A big bounce-back, or a big bounce-forward?