World Economic System


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 Approaches?"

When you want to know more about this subject, please read my book. To find details about my book please click here at "Home"

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