The colonisation of single industries within a coloniser by an economic colony - PART 3 ISOEconomics / Isokratic Econommics
Turkey versus Germany. Turkey has for long been a German economic colony because of close distance, and because of both low cost labour and raw materials. NAK was the world’s leader in printed fabrics covering all sections of industry. At one stage though operating 24 hours production shifts, deliveries quoted by NAK, were minimum six months from day of order. Then investment started to flow into Turkey. Ironically such initial investments were from Germany itself, though other countries came in later.
Eventually the Turkish fabric industry, produced equal quality as the Economic masters the Germans but at less than half the price. Even more cleverly Turkey mobilised the vast low cost labour market to set up production of the ready to wear garments. This move offered big transport savings as the raw material in the form of fabric can be deliver directly to the make up factories in Turkey instead of having to travel through Europe and back to Turkey.
The result was the destruction of the German fabric industry. Giants such as NAK closed down, whilst others alike in order to survive move production to Turkey. An economic colony at least in one industry, rose up and destroyed the coloniser’s industry and taken it over. A small transformation through the struggle for Iso-Economics.
Today’s advanced economies all incorporate economic colonialism ( others label it economic imperialism) in one form or another. These economies rely heavily on economic colonialism to secure cheap goods and low-cost raw materials, from the so-called third world, undeveloped and developing countries. Economic colonialism comes without a concern for global economy.
As we see the economic colonisation is not necessarily always negative and in a way it is also rather necessary for the raising of the poor and undeveloped countries. Economic colonisation does not have to have the shape and character of an imperialistic nature. Investing a low cost labour economy it can be a win – win situation for both the coloniser and the colonised. This is what Iso economics will be supporting and encouraging. The win- win situation where both parties gain.
All these turmoil if seen from a long-term prospect points to the fact that this reliance, of advanced economies on the low cost economic colonies, make their own economies artificially fuelled. Yet, the advanced economies have so far failed to see that their economies are based on artificial means or foundations.
Because low-cost resources, including human resources, labour and raw materials cannot last for ever, eventually countries around the globe will become economically strong enough not to rely on the few advanced economies like the group of seven (now group of eight), as we know them today. Some years ago I foresaw China to be a front-runner. It happened in 1999. China has become another member of the group of seven economic powers. One member with Iso-economic sharing. Which country is next?
Soon others will become economic powers of their own. Soon others will be as strong as, if not stronger than some of the group of eight. Russia with all its economic devastation is laying the foundations. Once they begin building up their economy, it will not be long before they become an economic supper power; for they have many of the elements needed, such as technology and natural resources.
The EEC is already banging on Russia’s doors. Another country with high potential to become an economic power is Turkey. Once Turkey joins he EEC, (which is just a matter of time as I understand it), it will put Turkey on the highway to economic advancement. Even now the investment flow is gaining momentum in Turkey. This investment, matched with natural resources and geopolitical positioning, will enable Turkey’s economy to make leaps, not steps, towards becoming an economic power.
15th July 2002 23.35
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