Peace, Development & Poverty Eradication Through Globalization – An Inventor’s Vision. ©
Globalization offers unimaginable opportunities to resolve all difficult Conflicts, Environment, Development, Unemployment, Hunger and Poverty issues.
Obviously the above cited issues can’t be addressed without the active intervention and support of global industry. Any problem in the world could be innovatively addressed by global industry. Take the case of US refusal to sign Kyoto treaty: global companies can bypass the US government and introduce energy efficient technologies and products in US market to reduce green house gas emissions. Direct US government support & participation would have been preferred but not essential to achieve cleaner environment and CO2 reduction targets.
Globalization can bring Peace, Development and Security in the world and also remove Poverty,
Hunger and Unemployment in underdeveloped countries - source of all conflicts and double the rate of global economic development.
Reduced agricultural subsidies and defense expenditure in developed countries could release over $1000b annually enough to ensure double digits growth in all developing countries including China and India. It is simpler to convert high tech defense technologies to commercial applications so there will not be any substantial job losses while reducing tax rates due to reduced expenditure on defense and agricultural subsidies shall directly benefit all in the developed countries including the multinational companies.
Economists are always apprehensive of high growth rate and unsure of development projects. Leaders having engineering degrees govern China and this has primarily resulted in relentless high growth compared to Indian government dominated by economic background. Europeans economists are envious of the high positions held by their counterparts in India including the Prime Minister. China could have grown at even faster rates had some inventor been head of the China government.
Manmohan Singh government has not sternly dealt with the situation of RIL, allocated over 30 oil and gas fields for 5 years when market price of crude petroleum was in $12 to $20 range and production cost may be just $2 to $4 per barrel but is not seriously interested in operating them, particularly the significant gas reserves which could have been used to generate cheap and low emission electricity. RIL has in fact back down on contracts to supply gas to NTPC projects. Power crisis in India in terms of high cost, high T&D losses and shortages is attributable to bad contracts, mismanagement, timid governance and lack of innovation. Hopefully globalization would soon address these also.
This is just an
illustration of how Indian economic development and progress has frozen at around six percent level for over a decade when so call liberalization or economic reforms began, fluctuations are primarily due to monsoon which largely determines food production accounting for a quarter of Indian GDP - it is debatable Indian government was in control all these years which is further illustrated in the following paragraph.
Economic reforms in India so far are aimed at unreasonably enriching few companies at the cost of competition and profits charged to consumers. The Economic Times, December 14, 2005 edition gives a figure of all loans advanced to farmers are $22b only at present whereas manufacturing and industry got over $250b
though GDP contribution of both sectors is identical- 23%. The former supports 700 million rural population but the later has not created additional job in 10 years. Even the non-performing bank loans to manufacturing and industry are $40b.
BSES was under declaring energy sales in Mumbai for 10 years. Last year BSES, presently Reliance Energy spent $80 million less on purchase of electricity, sold 1600 million more units of electricity though tariff reduction was 8.5% yet earned $200m profits serving a part of Mumbai city compared to year 2000-01. Liberalization as such is only in government files.
At recent “Water Convention” it was discovered all big Indian corporate led by RIL were keen to enter Water & Sewerage opportunities but none has the competence and experience otherwise nothing prevented them from taking over water and sewage business in free economies to learn the business.
Very few Indian companies are interested in globalization that is competing on technologies and low profit margins. They are like Indian real estate developers who make money in speculations of the market. A five star hotel was developed after 10 years
- the developer was primarily interested in acquiring prime land cheaply. The same applies to oilfields too. RIL is not interested in reasonable profits from oil and gas recoveries but waiting for prices to go beyond $100 to $200 per barrel and then subcontract work may be to Exxon or BP.
Low economic growth in India and poor countries is the reluctance of industry to operate at low margins of profit and invest in R&D to reduce cost of product and services. RIL involved in everything -textiles, petro-chemicals, oil explorations, refining, telecom, IT, biotech, contract farming, even water and sewerage now has yet to take its first patent.
Developed world could out source their food-grains requirements to developing countries like India, which could double food-grains production in a few years. India alone can feed EU or USA. Such outsourcing will have little impact on EU and US economies but shall create huge economic impact in India or other developing countries both in accelerating GDP growth and removing hunger & poverty.
Developing countries including India would welcome relocation of EU/US farm and food production factories for outsourcing food to developing countries
and who generally oppose entry of foreign players in food sector. Food and agriculture GDP of India shall exceed $600b that is present GDP figures or rural economy shall equal urban economy as early as 2010.
The opportunities for global multinational players generated in all developing countries shall be over $2000b annually to serve rural economy in power, transportations, machinery, home products & appliances and development of infrastructure.
Globalization shall promote introduction of millions of dormant technologies, which could not be developed due to small market size or preference of industry for high profit low risk businesses like RIL cases already stated. Companies shall learn from China’s success in operating at high volume and low profit margins. This alone shall significantly boost global economic growth.
Success of US economy is largely attributed to its IPR polices that support Techno-entrepreneurs like Bill Gates in competition with mightiest multinational IBM in 80’s. Globalized patent regime shall offer opportunities to Techno-entrepreneurs of the developing world to serve global market and compete with global
giants.
World could be on way to globalization addressing all critical environment issues without waiting for US government to fall in line. All environment issues in US could be addressed by introduction of innovative green technologies. Soon US too shall join the race to remove poverty, hunger and unemployment in developing world that will ensure peace and progress to every human on earth.
Ravinder Singh*
Inventor & Consultant.
(* Ravinder Singh is a WIPO awarded inventor)
December14, 2005.
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