- Spawning new manufacturing plants and construction activity to boost jobs and income.
- Increasing consumer demand and elevating individual buying power.
- Opening a vast new global market for the various regions of the world.
- Increasing the competitiveness of millions of SMEs by connecting them to global markets, which will make them more bankable.
- Providing the tools to achieve business excellence that attracts investment funds from the private sector, focusing on developing new enterprise zones to help build competitive clusters in new industries.
- Providing an early warning system for cargo security while lowering the cost of cargo security and customs compliance while speeding up customs clearance.
- Increasing capacity utilization throughout the logistic pipeline especially through ports and border crossings.
- Lowering carbon footprint by reducing multimodal freight congestion at high volume ports on highways and other logistics check points.
- Speed disaster relief response with a global real time information system on the availability of all materials needed for emergencies.
The world, watches as powerful forces of change are gathering and with that sweeping havoc and turmoil across all regions of the globe. Even as nations attempt to recover from the global financial crisis they find themselves engulfed in uncertainty and unrest. This is currently most pronounced in the European and Middle Eastern regions where the largest outburst of migration since the Second World War has further emancipated the economic problem.
Whilst significant efforts have been made by authorities to address the issues of the Global Financial Crisis, these efforts have been concentrated around regulatory and compliance areas, which lead to a further exacerbation of the problems related to the access to finances and engendering the overall self-reliance of countries.
Several global economic authorities including the International Monetary Fund (IMF) and the World Bank (WB) continue to issue dire warnings about the global economic crisis, warnings that highlight the inflated asset prices, increasing levels of debt and the lack of real income growth all of which remain to this day unaddressed.
Since 2008, the Federal Reserve has increased their money supply by USD 3.1 trillion by so raising the USA’s total debt to USD 17.5 trillion amounting to USD 127 trillion of unfunded liabilities. This condition continues to have profound consequences on the rest of the world.
This is just one example where most Governments have reached the limit in their ability to increase the money supply as the mountain of debt incurred since the Global Financial Crisis has placed their economies in a catastrophic state.
The world’s governments and regulatory authorities are now beginning to realize that in order to remedy the present financial challenges and achieve sustainable global economic growth, it is not enough to introduce billions of dollars in stimulus packages or to impose new laws, policies, sanctions and controls.
Moreover, the lack of demand has placed a high emphasis on financial engineering, which comes at the cost of growing the real economy thus impairing sustainable economic growth. This caused developing and emerging economies to have landed import and export costs that are nearly twice as high as the developed country average. The foregoing results in lost market opportunity, and places a major burden on business competitiveness in the global market realm. So where do we start?
Any tangible global solution must be grounded on demographic trends that are being witnessed today; in high-income countries where fifteen percent of the world population lives, birth rates are low, the population is aging, and there is excess production capacity in nearby saturated markets. Meanwhile in mid income countries representing 45% of the world’s population, birth rates are high, population is young, yet salaries are merely 20% of those in high-income countries.
Go into a café in Paris, London or New York twenty years ago and you would notice that nearly half the tables had children sitting with adults. Today, you would be lucky to see 10% of these same tables having children. The above was onset by aspirational lifestyles and first world socio-economic pressures that have greatly endangered the two income family, as women choose to give birth later in life or not at all thus causing the replacement rate to slow down. And unless the replacement rate is at least 3.6% the HIC proportion of world population will continue to decline.
Which is why high-income countries need to find new market outlets for their overflowing output, and since the mid/ low income countries represent vast new market opportunity for this expansion it would relieve this abundance. In order to achieve the former, a means must be found to build the buying power of the mid / low income countries since that would ignite a spark in regional trade throughout the world. A question remains; how can we connect together the world’s economies in a mutually beneficial way?
We must focus on increasing trade within the real economy of manufacturing, agriculture and the service industries that support them by means of improving trade. Trade, is the primary engine that drives the global economy and hence, by boosting trade we could expand these markets and create millions of new jobs around the world during the process.
Nearly 60 years ago, the introduction of the cargo container significantly reduced the cost of trade, thereby fueling several decades of economic growth and prosperity. Today, we must again return to history in order to develop a mechanism that allows us to maximize trade by investing in 21st century technological advancement.
The problem can hence be summarized as follows: The HIC have an aging population, low birthrates, declining work force and excess production capacity. While The LIC and MIC have high birthrates, a youthful and an increasingly educated work force, a large market place but low incomes. All of which proves that the HIC, the LIC and MIC are complimentary to one another.
Lets us shed more light on this issue. These demographic issues are not academic. Leaders in the HIC are deeply concerned about these issues that seem to be out of their control. In the meantime, the larger MIC are redefining the boundaries of their political and economic influence by transitioning from low value production to high value production with an increase in domestic consumption while the LIC are witnessing an increasing amount of disturbance which is onset by their day-to-day frustration.
This increase in conflicts worldwide only favors the armaments manufacturers and continues to spread misery and poverty all the while aggravating the economic problem even further. These issues touch each and every one of us; they affect our families, our sons and our daughters.
So why don’t our leaders discuss these deep seated issues? Why does the media not rail against them? The reason is that our leaders do not have the solution. There must be a means to address this issue.
Rebalancing the global economy is not about creating trade barriers and tariffs, in fact it is about defying those barriers that limit trade. It is about protecting citizens of the world from increasing conflicts and the diminishing standard of living if the economic crisis continues.
In the past, the HIC have turned to the easiest and swiftest ways to grow their economies through what is called Financial Engineering. Financial engineering encompasses everything from mergers, acquisitions and derivative trading to collateralized loans.
While employing easy credit and ascending stock market strategies can undoubtedly fuel growth, it only enriches a small elite of people and does not pave its way down to all levels of society. The recurrent reliance on this approach has lead to market crashes through the dilution of asset values accompanied by a heavy hand of compliance and regulation which hinders the growth of real businesses, particularly SMEs.
Sustainable growth can thus only be reached through the expansion of the Real Economy. Real Economy includes all the industries that are involved in the manufacturing and servicing the food we eat, the clothes we wear and the materials that we need to build our cities.
Expansion of the real economy as noted has reached a halt in the HIC. An issue that highlights the need to rebalance the Global Economy so that the HIC could work to increase the buying power of the MIC and LIC and in turn grow its real economy. This process requires the optimal allocation of the world’s resources and works to everybody’s advantage. As the HIC have high value products and services to sell and need a new and growing market, which proves that by helping the LIC the process would lead to mutual gains since increasing the manufacturing power of low and mid value products in LIC would lead to the creating of more job opportunities in turn increasing the buying power of people that will eventually turn to HIC for goods and services that they need.
In order to help achieve this real economy participants in all areas of the world need to have the proper tools that allow them to increase efficiency and productivity. The Solution therefore, lies in the deployment of Soft Infrastructure, which will give more power to the Digital Economy. The foundations of the Soft Infrastructure are: Technology: The Multiple Dimension Digital Economy Application System (MDDEAS) is an open platform technology that has been tested and validated by prominent public and private organizations from around the world.
Global Network: A worldwide Network of trusted financial, technological and insurance firms that are equally distributed among four global regions. Selecting these firms will be through a transparent process that gives each firm an equal opportunity. Then, these firms will serve as “gateways” to deliver the DEP to businesses around the world.
Rapid Global Deployment: The deployment process will be fast-tracked through the participation of organizations from the public and private sectors each doing what they do best. By so creating a unique business model that will ensure the ongoing maintenance of the DEP, which will be provided to end users free of cost. This business model will include Four Benchmark Trade Lanes (BTL) that will trigger the deployment of the DEP around the world within an eighteen months period.
The responsibility for a better tomorrow depends on us, all of us. Each one of us must be productive in forming dynamic communities leading that lead to economic prosperity.
So far more than 75% of the world’s citizens through their representatives including pan regional organizations, IGOs, NGOs, and industrial associations have joined together under a global public/ private partnership to unleash the required tools expanding on today’s technology to increase trade efficiency, which will boost world trade and flourish global markets.