Executive Pay: The Curious Case of Carlos Ghosn’s Arrest
February 12, 2025
What is the Pareto Principle ? The Pareto Principle was an observation of a famous Italian economist named Vilfredo Pareto. He was trying to analyze the distribution of income amongst the population of Italy. That is when he observed that 80% of the income generated went to 20% of the population. He then began observing […]
How the Economic Crisis Due to the Covid Pandemic Has Been Disastrous for the SMEs While the Covid 19 Pandemic has been hard on all, including businesses, individuals, and other entities, it has been nightmarish for Small and Medium Enterprises or SMEs. This is because the SMEs typically operate on a smaller scale when compared […]
Today, South Korea is one of the largest economies in the world. It is the 12th largest to be precise. However, the influence it has in global markets is significant. It is home to many multinational corporations which compete against the best in the world. For instance, American markets are flooded with Korean manufactured automobiles. […]
There has been considerable debate in the industry in the past as to whether Six Sigma projects are worth all the hoopla that has been surrounding it. For decades before this debate, Six Sigma was followed in a cult-like manner and organizations would never question the financial viability of the projects undertaken. However given the […]
Embracing Business Process Improvement program is the ideal way for Organizations to make that leap to the next level and build competitive edge. Implementing a BPI program gives the Organization several direct and indirect benefits and advantages. It helps the Organization get rid of the redundancies, reduce dependence upon people and eliminate wastage as well […]
Ever since the onset of the global economic crisis, there has been much talk about how globalization has reached its nadir and that the concept of an integrated global economy leading to prosperity has been discredited. The reason for this cynicism was that many commentators blamed globalization for causing the global economic crisis and plunging the world into a new Great Depression.
However, not all is lost since the emerging markets or the BRICS (Brazil, Russia, India, China, and South Africa) have more or less weathered the initial hiccups of the crisis though in recent months, they seem to be faltering mainly because of domestic reasons.
The point here is that these economies have used globalization to their advantage instead of being the victims of too much integration like the economies of the west. They managed to do this with some astute planning by insulating themselves largely from the worst effects of the global economic crisis.
The recent troubles with China and India along with Brazil and Russia are mainly due to internal dynamics and the policy responses that the governments have taken is to attract more global capital rather than turning away global capital.
The point here is that these countries want to be the beneficiaries of globalization rather than the victims and it is with this in mind that they are becoming competitive again. For proof of this, we need not look farther than India that has taken a series of bold reform initiatives in recent weeks known as the “Big Bang Friday” measures. Though these measures are not sufficient in totality, they go a long way in addressing some fundamental defects with the economy. Hence, the move to go in for reforms like opening up the retail and the aviation sector to FDI and slashing subsidies.
Hence, it cannot be said that globalization has had its day as is evident from the eagerness shown by these countries to attract global capital. Indeed, one can safely say that we might see a rebalancing of the global economy wherein global capital again finds its way to these BRICS as well to other emerging markets like Vietnam. This is the way forward for globalization and the direction of the emerging world order. Though the previous statement needs qualifiers since these economies are not completely out of the woods, one can still speculate about the drivers of globalization coming from the East in the future.
Finally, globalization while not being a total zero sum game is not a win-win situation either if the incentives are not in place. Hence, for globalization to succeed and flourish like the way it was during the heady days of the economic boom, governments in the BRICS have to ensure that they are open to global capital and they are reform minded as well. In conclusion, while the future of the global economy is still uncertain, the pointers available now indicate that the East might do well than the West in the coming years.
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