Why The Global Economy Needs Redesign

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The world community has reached the most challenging historical stage when the lack of a unified strategy is the most severe problem for the future of humanity. Conflicting long-term plans of different countries show that states have failed to move to a sustainable and balanced model of development of the entire world.

As part of our work to improve strategic enterprise management systems, we have created a multi-layered system of integrated tools to enhance global economic management. We will show you ways to improve the world through strategic management.

A FRAGMENTED SYSTEM OF SILOED ECONOMIES

The current economic system, combining the politicised and corrupt relations between countries and enterprises, is covered with layers of political, economic, criminal and cultural channels and barriers. No nation can make serious decisions about the world’s destiny without significant influence from people who manage capital on a global scale.

However, capital-affected solutions are inherently antithetical to global stability, as instability and inequality are sources of unfair distribution of wealth. Decision-makers focus on growing their wealth, contradicting sustainable development, which seeks to reduce concentration and imbalance.

The destructive direction of modern trends is not a property of nature but stems from the existing defective system. Under the imposed international economic architecture, humanity fails to move from direct, multi-level and exhaustive competition to long-term programmes to improve the environment, quality of life, sustainability and balanced development worldwide.

The flawed definitions of such concepts as value and gross national product, and fragmentation of the global economic system have a significant negative impact on people. Misplaced priorities and goals lead to imbalances and crises, conflicts, trade, cold and wars.

Global and local financial markets do not create but merely redistribute value. The comparative ease of moving financial resources is not an advantage of the current system but rather a consequence of its inefficiency. It is only a mechanism for compensating for the grave deficiencies of the current economic system. This mechanism has many adverse side effects in the form of crises and huge unproductive losses for maintaining, for example, a global financial infrastructure.

If humanity can create a tool for a fair and balanced distribution of value across space and time, such spontaneous and inefficient market redistribution may disappear. Imagine that a specific management system can coordinate and directly manage value creation plans while optimising the distribution of productive forces. That can eliminate various imbalances, such as market bubbles and other negative phenomena. If this is a reality, the need for intermediaries to fill the gaps caused by natural market mechanisms will either disappear or take on a completely different scale.

One of the main problems and internal contradictions is the limited responsibility, combined with the policy of unlimited profitability. This approach needs to be corrected, as this combination is a source of imbalance and contributes to corruption, sometimes even under the pretext of protecting market mechanisms or overcoming a crisis.

I mean the cases when governments compensated the losses of financial institutions and enterprises under the pretext of fighting the crisis (programs of quantitative easing, etc.). They do this with the resources of society and thus each person. At the same time, these enterprises have not created sufficient reserves for such cases, spending funds for consumption and business growth, which partially contributed to the crisis phenomena and imbalances.

The primacy of profit, rather than development activates the worst traits of human nature, and corruption is not the worst. The impact of the primacy of profit on the speed of meeting market needs and imbalances is far from being balanced by the desire to create such imbalances for profit.

Therefore, the existing economic system does not lead directly to the development and balanced satisfaction of human needs but to the creation of Frankenstein. Some parts of this economic organism do not operate as a whole, because they have different interests, fuelled by advertising and other ways to increase demand. All this leads to the fact that the modern economy has many drawbacks — the main of these problems we will consider below.

GLOBAL ARCHITECTURE WEAKNESSES

All the deficiencies in the DNA of the modern economic system make countries, enterprises, and people have live within the wrong architecture of the world economy. Architecture does not have a valid and inclusive mechanism for meeting the needs of people around the world to overcomie challenges and building an attractive future for our planet.

Today, there is no tool to develop a shared global vision that is credible and thus contributes to global consensus. Some clubs (such as the famous Bilderberg Group) are building themselves as a world government, but they are not even close. They have no sufficient leverage to make and implement any decision at the global level. Their soft power is weak, causing strong resistance and extreme reaction lags. Modern technology can reduce response times by hundreds or thousands of times.

The propper architecture will not work out on its own. Instead, the architecture is just a reflection of the internal features embedded in the core.

If you force a change, the current economic DNA inevitably rebuilds the architecture to fit the internal features of the system. Just as the visible world forms itself based on the properties of matter. Thus, any attempts to create supranational institutions to improve the world cannot do it radically and for a long time.

These attempts do not address the negative features of human nature that influence the formation of new socio-economic systems, nor do they change the nature of economic relations.

Furthermore, this predetermines the failure of this work. The essence of economic relations between people, which I am talking about, is the main focus of the Noosphere Project. This work can become a real advancement to the radical modernisation of human civilisation.

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GLOBAL STRATEGIC RISKS

It is not just the architecture and core of economic relations that matter. The modern system has many other drawbacks. The current trends lead us to the worst dystopian nightmares, and this is not just a figure of speech. Look around and note how the world around you has changed.

The most visible symptoms are global pollution and other critical environmental problems. Is it worth mentioning that some countries communicate in the language of threats and are considering full-scale nuclear exchange, which is scientifically proven to have no winners?

Modern global institutions (for instance, IMF and UN) and so-called democratic and so-called totalitarian governments are so keen on their mutual dance of death that they cannot even think about creating an architecture of global governance for sustainable and balanced development.

If such powerful forces cannot do it, others who care about the world, not private interests, will do it. Everyone can contribute to this work.

HOW TO CHANGE THE WORLD FOR THE BETTER

Most of the strategic failures that have already occurred in the world are inherent in the DNA of modern global society, which is not a given of nature. We can change this because man has a mind, the most sophisticated tool to change the world. However, the change of DNA of human civilisation is not to create the next initiative or the interstate agreement. This complex and multi-layered task requires significant effort. 

This interdisciplinary effort should focus on the main drivers of change capable of impacting the world. Who are these powerful masters of the world? It is you and me. They are the economic actors from governments to corporations and small businesses to every employee who creates value through products or services. Nevertheless, they all depend on one actor in this performance – the consumer.

Changing consumer behaviour is a tectonic shift in human civilisation and real hope for the future of the planet. The Noosphereum Project also touches upon these issues to a large extent. Stay tuned.

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