World Economic System

Introduction

  • How does the world economic system function today between the developed countries “in their own benefit and interest” and developing counties and emerging market countries.
  • Fisheries Agreements EU/West Africa: From total added value about 95% remains in European countries and 5% in Mauritania.
  •  Sports shoes and Hand embroidered Lady's Silk Evening Dress from emerging economy markets: In these deals from the total added value, about 80% goes to the European/USA economy and 20% to the emerging economy markets such as China, India or Brazil.
  • Production and Export Subsidies of about yearly 500 Billion US$ for Agricultural Products in USA/Europe: Due to production and export subsidies of the industrial nations people in Africa and in other developing countries have been prevented even from producing agricultural products to meet their own demand for food.

If you want to read more about "World Economic System" then, please click below "Short Version".

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Short Version

World Economic System

mary

I think, the main reason for the present finance and economic crises, the increasing unemployment in the developed countries, the misery of the developing countries and the poverty on earth, has been the exercise of the economic theories of Adam Smith.  Formulated in 1760, his theories serve as fundamentals of the world economic system. In these fundamentals the human beings are, for me not comprehensible reasons rather intentionally encouraged to act in their own benefit and interest.  

It has been illustrated which economic goals " in their own benefit and interest " did the interested Potentates of Great Britain achieve in India and China with use of World economic system of Adam Smith, wars, violence, imperialism, exploitation etc.

India's world trade share reduced from 22,6% in year 1700 to 3,8% in year 1952. China had similar fate in the world trade as India. China and India became developing countries. Reality shows that the development of today's 2,5 billion people, that means 40% of humanity, was set back by centuries.

The following examples show how our world economic system between the developed countries "in their own benefit and interest" and developing countries and emerging countries functions today.

Fisheries Agreements EU/West Africa: EU has been making Fishing Rights Agreements with West African countries. For example according to such an agreement EU pays Mauritania 108 million US$/Year. The sales value of the fish caught from the coasts of Mauritania is about 2.2 billion US$/year. In other words from this total added value about 95% remains in European countries and 5% in Mauritania. Since these big EU-Trawler ships fish there now, most of these fishermen have become jobless. Every year increasing numbers of young people from West coast of Africa try, mostly in unsafe boats, to reach European shores. Due to the use of inefficient boots, no one knows exactly how many have lost their life on the ocean. But figures are in thousands.

Sports shoes and Hand embroidered Lady's Silk Evening Dress from emerging economy markets: These products are produced in the emerging countries and are exported to Europe/USA. In these deals from the total added value, about 80% goes to the European/USA economy and 20% to the emerging economy markets such as China, India or Brazil.

Production and Export Subsidies of about yearly 500 Billion US$ for Agricultural Products in USA/Europe: The prices of such exported agricultural products to the African and other developing countries are lower than production costs in the developing countries. Due to production and export subsidies of the industrial nations people in Africa and in other developing countries have been prevented even from producing agricultural products to meet their own demand for food.

Under this world economic system world-wide there is a small group of economic winners with enormous income and assets. The difference between rich and poor is increasing tremendously with all the inherent dangers, which we know from world history.

According to me, it will lead us most probably to failure, in case instead of being equipped with today's  knowledge, technology and possibilities of development, the traditional path of wars, violence and exploitation of others etc. is being chosen.

Please read "Network of all forms of existence" and "Functional power" to find out how all different forms of existence (Human beings, animals, plants etc) interdependently are interconnected to each other. For your positive development you can read "Qualities - generating values" and "Human development".

To know how under the prevailing forms of world economic system and globalisation, you can help to remove poverty in the developing and emerging market countries, please read "My solutions - which is your way?"

If you want to read my thoughts about World economic system in detail, please click below "Detailed Version". 

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Detailed Version

Index

Index

1. World Economic System

Adam Smith - Wealth of Nations

1.1 International Institutions

1.2 Governments/Medium Business community/Multinational Companies (MNCs)

Fisheries Agreements EU/West Africa

Hand embroidered ladies' silk evening dresses from India

Relocating Production of sports shoes to emerging-economy markets 

Produktion-and Export Subsidies for agricultural products in USA/Europe

1.3 Rich

Superrich, middle class millionaires and millionaires

1.4 Middle Class

1.5 Poor

2. Dangers in this development

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1. World Economic System

1. World Economic System

There is a long tradition of Trade between countries and continents. Long back, the people of Indus civilization (2600-1900 B.C.) and the Sumerian civilization and later Assyrian civilisation (2000-1600 B.C.) are known to have had trade relations. Tthe world-renowned  "Silk Route", from the Mediterranean to East Asia (through Egypt, Persia, India, China), was used to transport spices, silk, glassware, chinaware, gold and gemstones for trade.

Adam Smith - Wealth of Nations

The fundamentals of our modern world economic system originated in the 18th century A.D. These were published by Adam Smith in 6 volumes of "The Wealth of nations". With a few alterations this seminal work has established itself as today's  free world economic system. In the last about 250 years a lot of literature has been produced about this system; I would not like to go into details, but let me consider only 3 postulates of this system.

Adam Smith writes:

1. In a free economy every body should act in his own interest and benefit. This approach will boost the economic well being of all other human beings. The maximum economic development of the individual will assure a maximum economic development of other human beings. This will be made possible by the so-called "Invisible Hand".  The general feeling of sympathy between individuals brings this "Invisible Hand" into operation.

2. In "The Wealth of Nations" Adam Smith encourages every county to trade in a free world economic system, enter into a contest and compete with one another. To bring the highest economic development of humanity, he proposes that each country specialises itself in certain products and the rest of the needs should be fulfilled through trade.

3. Adam Smith writes: In the natural process of development each developing country will first of all invest in agriculture, later in business and last of all in  international trade.

As an example let us observe the above written World Economic System based on the development of Trade between UK and India during the period from the 17th to the 20th century. Let us go through the main events one by one.

1. Till the 17th century A.D. India was one of the leading world supplier of textiles, and various sorts of spices etc.  In the 17th century China and India were the leading global economic nations. At that time the percentage of world trade of China + India was about 45%,  approximately as much as USA + Europe today. Products with great demand in Europe, like fine silk, cotton textiles, chinaware, spices etc., were produced in simple factories and exported.

2. The basic principles of world economy "The wealth of Nations" was published in 1776.

3. As described above, the British waged war with the  Portuguese and French in India in the 18th and 19th century. The "East India Company" equipped with their own army established themselves from 1757 - 1857 as colonial masters of all of India. After that India was put under the British throne.

4. About 1700-1760 the total volume of raw cotton imported by the British textile industry was 1-2 million British Pounds/year, from 1780 it increased to 8 million Pounds/year and then in 1780-1820 jumped to 33 million British Pounds/year. Reason: Great Britain brought knowledge of textiles production from India, developed it further and instead of India, Great Britain started to produce for the world. Due to this people in India became jobless. The agriculture community of Great Britain and later Europe/USA moved towards an industrial community.


With violence, wars and imperialism, what economic goals
did the interested Potentates of Great Britain achieve?

The following table shows the percentage share of India in world trade. Between 1700 and 1820 India lost about 7%. Till 1947 India was ruled by British and fell back to be a developing country. Its World trade share reduced from 22,6% in 1700 to 3,8% in 1952.

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1700 1820 1890 1952
CHINA 23,1 32,4 13,2 5,2
INDIA 22,6 15,7 11,0 3,8
JAPAN 4,5 3,0 2,5 3,4
EUROPE 23,3 26,6 40,3 29,7
USA 0,0 1,8 13,8 28,4
RUSSIA 3,2 4,8 6,3 8,7

The table above shows that China had similar set backs in world trade as India. Is it possible that it was due to opium addiction? And who brought opium to them? Were they not the same potentates from Great Britain as mentioned earlier?

Were not the above actions under point 1 postulate of Adam Smith - that
"In a free economy every body should act in his own interest and benefit".
supplemented with violence, unfairness and exploitation fully implemented?

Reality shows that the development of today's 2,5 billion people, that means 40% of humanity, was set back by centuries.

What happened further to our world economic system? 

World War Two brought  big economic problems due to lot of  expenditure on war. The western alliance that won the war made decisions at Breton Wood that affected the world. The new institutions, International Monetary Fund, World Bank and GATT (General Agreement on Tariffs and Trade) were installed and application of  free economy system was resolved.

After end of Soviet union in 1995, WTO - World Trade Organisation -  consisting of GATT, GATS (The General Agreement on Trade and Services) and TRIPS (Trade Related Aspects Of Intellectual Property) were launched. Irrespective of the situation of developing countries, the agreements regarding deregulation of markets for movement of goods, services and capital movements across the national boundaries were ensured.

The main players in today's globalisation and world economic system are the above mentioned international institutions, the governments of Western countries (or group of countries) and Multinational companies (MNCs).

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1.1 International Institutions

1.1 International Institutions

After execution of economic development of European countries, the IWF, World Bank and GATT (later WTO) were assigned by the developed countries to do the same job for the economic development of developing countries.

As is now realised, not much has been achieved. The results show that the liberalisation of the world wide markets has in reality not achieved much for the development of developing countries but has benefited the developed countries more, to the disadvantage of developing countries.

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1.2 Governments/Medium Business community/Multinational Companies (MNCs)

1.2 Governments/Medium Business community/Multinational Companies (MNCs)

Partnering with the medium business community and MNCs, today every country strives to create frameworks for creating as many jobs as possible. Due to the worldwide competion the main interest of the economy is, however, to achieve high profit and highest possible return on the investment.

Today the GDP, innovation strength, technological development and power of weapons is the dimension of the might of a country or a group of countries. This power is being used to push through one's  economic interests in the world.

Today the top 500 MNCs control about 50% of world GDP.

Today the medium business community/MNCs not only produce where the consumers are situated but mainly in countries where low wages, capital safety, and other factors exist with which maximum profits are ensured.

Simple products such as readymade garments or shoes etc.,  
or labour intensive components of industrial products (but as far as possible not the technologically sensitive products) are manufactured in emerging markets. This may be only for a certain  period of time. Competition and profit margins etc. are the deciding parameters to shift production in another land where  better general conditions are currently available. Research and Development remain in the developed countries.

What happens to the working people worldwide under this  frame work of world economy? Depending upon the sphere of activity and industry, the number of economically hard hit people in the world is on the increase. This is not only in emerging countries, due to inhuman working conditions and meagre wages, but also in the developed countries due to unemployment.

Please see few more examples given below illustrating how our world economic system functions today.

1. Fisheries Agreements EU/West Africa

Every year increasing numbers of young people from West coast of Africa try, mostly in unsafe boats, to reach European shores. This walk on the wild side was practiced by about 2000 people in the year 2000, in 2005 it had already more than doubled to 5000 and in 2007 it increased to more than 30,000. In 2008 the number of people landed alive just on Italian coasts was around 30,000 people. Due to the use of inefficient and unseaworthy boots, no one knows today exactly how many more lost their life on the ocean. The figures move in thousands. But why do they take such desprate risks?    

For decades EU has been making Fishing Rights Agreements with West African countries like Senegal, Mauritania, Guinea Bissau etc., which allow EU countries the rights of fishing on the west coast of Africa. According to such an agreement (duration 01.08.2006 - 31.07.2012) EU pays Mauritania 108 million US$/Year.

EU licenses these fishing rights to big European shipping companies from Spain, Portugal, France, UK, Germany etc. for fishing calamari, crustaceans, bass etc. and bring the fish to European coasts for selling. These shipping companies pay a small licence charge to Mauritania. Brussels subsidises these shipping companies for the equipment of the huge fishing ships, the Trawlers.

Until recently, the inhabitants of the west cost of Africa earned their living through fishing. Since these big EU-Trawler ships fish there now, most of these fishermen have become jobless. Reasons:

Firstly, their fishing boats can't compete with the joint trawlers of EU fishing fleet; secondly the coasts have been fished out. a result of narrow-mesh nets used by the commercial fishing fleets, which indiscriminately kill the grown and the young, the useful and the unwanted fish.

Now imagine the state of fisher families, who have now have to contend with food shortage, illness and other problems. What will young members of these families do? They search out others in similar situations and embark on the high seas, in the hope of finding a better life in Europe or die in the attempt.

According to European records, the value of the fish caught by their fleets from the coasts of Mauritania is about 2.2 billion US$/year. That is, 20 times the amount, of 108 million US$, paid to Mauritania annually.

In other words from this total added value about 95% remains in European countries and 5% in Mauritania.

2. Hand embroidered Lady's Silk Evening Dress from India

The import value in Europe of a lady's evening dress, hand embroidered in India with sequins and beads is 45 US$. The Wholesaler sells it to the Retailer for 90 US$ and the retailer sells it to the end consumer for 225 US$. That means from the total added value for the raw material and manufacturing of silk, the manufacturing of the dress and air transport, the Indian economy gets 45 US$ and for selling it the European economy gets 180 US$.

In other words from the total added value, about 80% goes to the European economy and 20% to the Indian economy. From this 45 US$ the workers and artisans who manufacture the silk and embroider and stitch the evening dress in India get a small fraction. The money they earn is not enough to provide full meals or get their children educated.

3. Relocating Production of sports shoes to emerging economy markets

American and European companies were involved in a hard competition. Most of these companies have kept R&D, Marketing & Sales and administration departments at home, relocating the production to countries with cheap wages. The business details are as below:

A pair of sport shoes for which you pay 145 US$ in a shop and which have been produced in China, India or Brazil have generally the following cost structure: 

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Material US$ 11.60
Wages US$ 0.58
Production overheads US$ 2.32
Producer`s margin US$ 2.90
Logistic costs US$ 7.25
<b> Earning in Emerging Market </b> <b> US$ 24.65 </b>
Advertising costs US$ 13.25
R&D costs US$ 14.50
Importer`s margin US$ 20.30
Retailers margin US$ 72.50
<b> Earning in developed country</b> <b> US$ 120.35 </b>

In other words, from the amount generated in the deal 17% remains in the Emerging market economy and 83% in the economy of the developed countries.

Do you think with these wages earned (US$ 0.58 from a sales price of US$ 145) it is possible for the workers to take care of the food, medical and educational needs of their families?

And what happened to most of the workers who used to produce these sport shoes in USA, Germany or any other developed country? The surplus personnel were laid-off. What hardships did these individuals and their families undergo during the jobless period?

4. Production and Export Subsidies for Agricultural Products in USA/Europe

The Governments of developed countries (USA/Europe etc.) have in the last years  paid an amount of yearly approximately 500 Billion US$ as Production and Export subsidies to their agriculturists. Through this the agricultural sector in USA, France, UK, Germany, Italy, Holland etc. could export their agricultural products to the world, including to Africa. The results:

  • The prices of such exported agricultural products to the African countries are very low. The farmers there can not compete with these prices with their own production with their hacks and ploughs. This way they get jobless and have livelihood distress.
  • Until a few years back Egypt was fully self-sufficient with its production of grains and other agricultural produce. Then the country was inundated with subsidised products exported from USA at dumping prices. For the domestic agriculturists it was no more longer cost-efficient to produce grain products. By and by the agricultural land was converted to the production of competitive fodder products and cattle raising, while food grains were imported. We know that for the production of I Kg meat one requires 10 Kg fodder. Now with the present world wide shortage of foodstuffs Egypt has to face big problems. According to media reports, people in Egypt  had to stand in queues und even resort to violence to snatch a loaf of bread.


For the last several years, negotiations between the authorities of the developing countries and industrial nations USA, EU etc. are being held under the WTO for abolition of export subsidies on agricultural products. There has been no success up till now because of resistance of industrial nations.

G8 has been similarly unsuccessful in finding a solution.

One can clearly see here that the above mentioned postulates of Adam Smith have been fully implemented.

What are the results?

I mean, the time is ripe (under the consideration of laws applicable for us in Europe, our principles and our ethic/moral values) to seriously take actions to remove miseries of hunger in the world. (Please read "solutions - your way").

The table below shows the present economic and illiteracy situation in USA, Canada, Australia, few European countries, Middle/South America, Asia and Africa

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A few more details:

  • Statistics issued by UNCTAD, united Nations Conference on Trade and Development, handbook statistics, show that the world's GDP in 2005 rose to 70 trillion US$. On other hand it is also known that worldwide approx. 50% of this amount is being spent yearly for military and armaments, security, drugs, violence and criminality, unemployment, corruption, health damage, environmental damage etc.
  • Today's financial market crisis reveals that the world total credit risk amounts to about 65,000 Billion US$. Where this will end, no body at present knows.
  • Today 94% of the money circulating daily in the world financial markets is not for the exchange of goods and services. Above 30,000 Billion US$ change hands over and over again for speculative reasons to earn higher yields.
  • About 75% of world trade is accomplished by 15% of the world population of developed countries. In contrast 40% of the world population living in the poorest countries have a share in world trade below 3%.
  • Purpose of economy is to develop products which serve humanity and create new jobs. To fulfil this aim, the companies require money. Originally this was the purpose of creating the stock exchanges. 96% of the sales on the world stock exchanges are today speculations. Only 4% of the money exchanged there creates new jobs.


Under this world economic system the humanity has been divided into rich, middle class and poor.

How do they differ from one another? How do they live?

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1.3 Rich

1.3 Rich

In London a person with an earning of 1-3 million US$/year can feel rich.

Also Rich are those who have a minimum assets of 3-5 million US$. The self occupied property is not included in this amount.

In 2006 there were 9 million rich worldwide, millionaires in US$ terms. The rich are further divided in three groups - super rich, middle class millionaires and millionaires. 

The 9 million included about 3,000,000 US citizens; 700,000 Germans; 600,00 Japanese; 500,000 British; 400,000 Russians; 350,000 Chinese; 270,000 Italians; 270,000 Emirates; 260,000 French; 250,000 Canadians; 200,000 Swiss; 190,000 Austrians; 160,000 Australians; 120,000 Brazilians and 120,000 Indians.

2/3 of the millionaires live in north America, Europe and Australia.

The millionaires of the world had a total private disposable net worth in 2006 of about 36,000,000,000,000 (36,000 Billion) US$.

That would mean that these rich (about 2% of humanity) will own about 50% of world's private assets.

Super rich, middle class millionaires and millionaires  

Super rich are millionaires who have private assets of between 30 million till more than 50 billion US$. In 2007 there were about 100,000 such.

According to various economic-publications the number of billionaires  has increased from 400 in 2004 to 900 in 2007. In 2013 there are 1300 billionairs in the world. In 2016 there are about 1800.

From the 900 billionaires in 2007, there were 410 US citizens, about 50 Germans and 50 Russians. The emerging market countries like China and India are also advancing. In between China has also more than 20 billionaires. In India there were 35 billionaires.

In 2013 there are about 350 Americans billionaires, 125 Russians, 115 Chinese, 55 Germans, 50 Indiansand so on. India is a country where today the majority live with an income (PPP value)  of less than 2 US$/day. It is a country where 50%  live either on the road sides or in slums in the big city of Mumbai..

In 2007 the total private assets of these 900 billionaires amounted to about 3.3 trillion (3,300,000,000,000) US$.

The middle class millionaires have private assets of 5-30 million US$. The rest are millionaires with assets less than 5 million.

Between 2005 and 2006 the private assets of top 400 rich American business people increased by 120 billion US$. That means a net income saving of 300,000,000 US$/year. To this income bracket belong also some top managers of American MNCs.

Of course many rich world-wide use their money for helping other human beings to some extent. But seeing that the number of the poor in the world is increasing it looks that the money is being spent for other purposes. Few examples:

  • Billions and billions US$ are spent as investment for buying property.
  • Billions of US$ are invested in ancient arts (old artists, antiques etc.)
  • London's big store Harrods offers shoes studded with rubies for a price of 2 million US$.
  • Hand embroidered Topaz dresses, priced a million US$ a piece are on sale.
  • A mobile telephone made out of gold and studded  with diamonds is available for sales in Germany for a price of approximately 280,000 US$. A cheaper one is also available for approx. 230,000 US$. Many millionaires give these as gifts to their children on graduation.
  • A mechanical watch made by artisans is available for 600,000 US$.
  • Many times, the supper rich get together on private or rented ships for the weekends. Cost for the weekend: 1 million US$.
  • A new Indian billionaire gave as birthday present to his wife an aeroplane worth about 80 million US$.


And so on.

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1.4 Middle Class

1.4 Middle Class

Between the rich and the poor is the middle class with a corresponding income. The middle class in the developed countries and developing countries is different. In the developed countries the vast majority of the people belong to the middle class. In the European Union a person is poor when his earnings are less than 60% of the respective national average. In Germany the lowest income of the middle class is about 14,000 US$/year/person and in US about 11,000 US$/year/person. Below this income a person is classified as poor (in USA and Germany each about 15%). In Germany these people are entitled for state's assistance.

In China as well India about 33% of people belong to the middle class. The lowest income of the middle class (or the highest income of the poor) in these countries is 720 US$/year/person (basis: purchasing power parity, a basket of similar products costing the same in different countries. This purchasing power parity means that a person living in the Unites States had to exist with an income of 720 US$ per year).

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1.5 Poor

1.5 Poor

Even today about 50% of humanity earn less than 2 US$/day/person, that means 60 US$/month (purchasing power parity. This purchasing power parity means that a person living in United States had to exist with an income of 60 US$ per month).

Today about 15-20% of China's population have an income less than 1 US$/day and about 50% less than 2 US$/day. India has approx. 35% of the population earning  less than 1 US$/day (these are considered as being extremely poor) and about 60 - 70% who earn less than 2 US$/day (purchasing power parity).

The situation of the poor in other parts of South Asia, like Pakistan, Bangladesh, Afghanistan; or East Asia like Vietnam, Cambodia etc. is still worse.

As the GDP list shows, the economic situation of people in some south American countries is better. But where do the rest, countries like Bolivia, Nicaragua, Haiti etc. stand?

For the African countries like Kenya, Ethiopia, sierra Leone and Tanzania we only need to watch TV, to see the poverty in which above 90% of the human beings live.

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2. Dangers in this Development

2. Dangers in this development

As we can see, world-wide there is small group of economic winners with  unknown income and assets. The difference between rich and poor is increasing tremendously with all the inherent dangers, which we know from world history. Few Highlights:

  • Definitely most people in the Industrial world and a small percentage in the new emerging countries are economically, Educationally, and health wise better off.

But now the relocation of production from USA and West Europe to low wage countries in East Europe, China, India etc. is underway.  This means unemployment, social insecurity, increasing disparity between the rich and others in the Industrial nations. In the low wage countries, unfair low wages are being paid. Result: probably world wide Social unrest, increased backlash and polarisation of society into political right/left groups.

  • In 1970 a manager in USA used to earn about 26 times as much as an industrial worker. In 1999 it was 475 times more.
  • In Germany if a sales woman in a bakery earns 26,000 US$/year today, a managing director of a big bank makes about 19 million US$/year which means 720 times more.
  • A woman in India working on a construction site working about 12 hours a day, a child under the arm and a basket full of stones on her head, earns 24,000 Indian Rupees/year i.e. 1,600 US$/year (purchasing power parity).
  • About 10 million children per year die in the world today before they reach an age of 5 years.
  • Wars take place, mainly due to economic reasons, in which thousands  lose their lives. Violence has taken on totally different dimensions, e.g. destruction of the World Trade Centre, war in Afghanistan and Iraq, and a form of terrorism that believes in killing the self to kill others.

I request you to read the three postulates of Adam Smith once again. The potentates have literally put into practice the postulates that Adam Smith had declared as economic rules which are till today legally anchored in our world economic system.

As mentioned earlier about Great Britain and India in the 19th century, the potentates of that time acted fully according to postulate 1 of Adam Smith regarding self-interest and maximum possible self-benefits. And what were the results? Do you remember what you read?

Today we can see how the world-wide the finance and economic crisis developed through practicing postulate 1 of Adam Smith.

Where is the general sympathy between human beings which should have made the "Invisible hand" function?

Postulate 2 has functioned fully in the world. Knowledge has been produced in developed countries, retained there and as far as possible used for self advantage. Later, the other countries got on the path of development and acquired the knowledge to produce low technology products. Jobs in the developed countries got lost. The developing country becomes one day a developed country and the vicious circle starts again. This is the result of "getting in competition with one another"

Apart from that has "Specialisation" functioned? As we know today in Egypt and elsewhere in the world people are using violence against one another for a piece of bread, because Egypt specialised itself in meat products and other countries in other products.

Postulate 3 (In the natural process of development each developing country will first of all invest in agriculture....) has not functioned in Africa. The African countries get subsidised food products from the developed countries, so that it is not cost-efficient to grow their own.

Now different people will say that exploitation, conflicts among human beings as well as wars among countries have always been there: these people are right. Others will claim that riches and poverty have always existed: these people are also right.

During the time of feudalism in the whole world there was the farm labourer; normal citizen; master; lord; sovereign; king; emperor. A minority of lords; sovereign etc. were rich but the rest of humanity on earth was uniformly poor.

History shows also that the human beings at some point revolted against this situation. As we know there were revolutions and many conflicts on this account. History shows also that at such times the wrath of the people destroyed these firmly established dynasties and kingdoms.

The strategies of people with development in the negative direction can be put  as follows:

  • Enhance the riches of their own country or group of countries at the cost of other countries
  • Make sure that their own weaponry and military are better than that of others
  • In case personal geopolitical or economics interests are involved and the other concerned country or countries do not cooperate, then employ various negative methods to destabilise the region and, if necessary, attack, destroy and make them submissive.

The earth today has the capability to provide adequate food, clothing, shelter and other necessities of life to human beings. Energy needs can be increasingly met by wind and solar power etc.; even the expected  water shortage may be tackled with the technology of desalination of sea water. The normal needs of the human beings can thus be fulfilled, but not their greed. 

Today generally the life achievement of a person is measured in terms of the money and power one has gained during one's life time. The basic ground of our decisions is mostly money. Naturally, a few have a lot of money and feel they buy the joys of life with that. But how does it fare in the acquisition of real happiness? Have we tried to see what high grade of real joy we can all have by together achieving development in the positive direction?

Although no one  wants to face violence, humans have used violence over and over again.

Since today's weapons are highly destructive, do we want to bring the human race to an end? Or do we want to go on the path of freedom, truth, responsibility, comprehension, tolerance, respect, compassion, love and to achieve oneness in this diversity?

In case we human beings equipped with today's knowledge, technology and possibilities of development want to choose the traditional path of wars, violence, exploitation of others, would not nature one day react massively?

Human beings do not exist on earth since long. Scientists can sing for us blues of creatures who vanished from earth because they did not act according to the laws of nature. Humanity may disappear the same way, leaving no trace that it ever trod the surface of this beautiful planet.


We know that the animals have shortage of resources, are afraid of one another, have existential fear and use violence among their own genera as well as against other living beings.

Did perhaps the animal world at that time tolerat our development? Perhaps the aim was to have a creature which will help the animals to come out of this "must aggressive behaviour"? What do these animals think today about the species Homo sapiens, when they see that we kill each other as well as them?

And do those who believe that God created us ever wonder what God must think today about His creation?

Irrespective of what the animal world or our God eventually think about us, I think it makes sense that we should exert ourselves to create a world with dialogue without violence/wars and exploitation of others.

How can a globalisation and a world economic system be conceived that overcomes today's drawbacks? What else should be done? Is any solution possible?

Before we do that, I suggest you read how each form of existence is interconnected in a complex network to other forms. What is that power that makes every unit of this diversity function? How do we develop qualities that help each one of us produce, with every action, material values (money, property, other ownerships etc.) and immaterial values (freedom, truth, love etc.) for oneself and others? How does every individual achieve a unique development in his/her life?

For that please read "Network of all forms of existence", "Unity in all Forms of Existence",  "Qualities generating values" and "Global Human Values Development". 

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Network of all forms of existence: How have the different forms of existence been developed and how do they function?
Unity in all forms of Existence - an invisible Power
Globalisation: How has the humanity developed itself since the 15th. century up till now?
Qualities generating values: How do the qualities, behaviour and values of human beings get developed?
Human development: How every human being has a unique development? How does his behaviour influence his own development and the development of other human beings in this global world?
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