The Global Phenomenon - PART 3 ISOEconomics / Isokratic Econommics
With economic globalisation we are witnessing economics of scale without a major element. The element of politics of scale. We are already in the early stages of witnessing multinationals dictating policies to governments. In the absence of a matching political system of scales, the economic globalisation will inevitably lead to perhaps the destruction of globalisation. I believe globalisation has much to offer to human development. Therefore I believe a political system of scales is absolutely necessary. Isokratia and Iso-Economics, I believe can offer the politics of scales required for the enhancement of human life around the globe.
That is why I strongly believe, that some sort of market control and intervention, in a preventative form or another, is an absolute necessity. Indeed I believe, it has become apparent requirement, for the present day market capitalist system. Furthermore due to the human input, I believe preventative forms of market control and regulations, will always be a necessity. Otherwise, the handful of advanced economies, or even global giant corporations, the leading players of the newly formed global economy, along with the economic super powers of the new era, will repeatedly disturb the markets and hinder development.
Through the opportunistic profiteering, such organisations or groups, will be constantly bringing, both the collapse of small economies, as well as the economic model of boom and bust, within national economic frontiers. This in turn, threatens the global economy, as the effects are felt around. If you like we are already witnessing such events.
I believe that unless measures are taken, and balances imposed, that is exactly where we are heading. Such course of inaction will be the biggest threat, for the collapse, of the free capitalist system. I like to make a parenthesis here and say that, perhaps the label capitalist system, is not as appropriate as that of the free market. I believe it so, for the capitalist system is no longer what it used to be, a few hundreds years ago.
The system has evolved and developed and at least in the western advanced economies it has gone through a metamorphosis. I believe that the capitalist or free market system will continue to evolve. We are already hearing the academics using various labels; Such as American capitalism and socialist capitalism and so on. Skills and know how, can set individuals in business with the minimum of capital. Know how expertise, can attract the entire capital one needs.
The free market system no longer requires, an absolute capital input to enter the market. If you like, capital in many of today’s areas, is no longer the main factor in determining a market entrance. The classic example here is that of Bill Gates and his Microsoft Company. Bill gates input, which gave him entry, and rise to the biggest corporation in the world, was not capital, but know how skills. Bill Gates know how, was the factor that won him the world market.
We know there are many, many others, who became small medium and large market players with their skills and knowledge input, being the major and determining factor, whilst the capital input was secondary or of minimal importance. However, this is only a parenthesis and this book of thoughts is not the right place to indulge in the analysis of the new form of capitalist system.