This esaay is under development or draft one
Divided World - History
Three Triangle Model
World (people) is divided in to countries, industries and communities.
Three entities can be defined as:
- Countries have fixed geographical bounderies, while industries and cultural communities are borderless.
- Country is made up of citizens or residents , holding travel and other documents like passport, residency IDs and so on. One is required to pay taxes and meet certain residency obligations, based on national laws
- Industries provide products and services.
- Member of cultural community; belong to certain race or tribe; Mother tongue or competence in certain languages; Follow certain religion or faith; and so on
- World is filled with these three entities, who grows to build large empires and decay. Each has been represented by a triangle, three corners representing three great forces geography, politics, and economics.
These three entities are highly dependent on each other:
- Country and State are synonymous terms that both apply to self-governing political entities. Countries may be divided up into these smaller units to make managing their land and the affairs of their people easier. For example, a country may be divided into provinces, which, in turn, into municipalities; and so on. Provinces and State are are often used interchangeably. Country can be represented by its government which includes regulatory authorities.
- Industry refers to any general business activity or commercial enterprise. Traditionally, industry means the aggregate of manufacturing or technically productive enterprises in a particular field like the automobile industry or the steel industry. Here we include trade, agriculture, manufacture or service in general.
- The group of people having same identity or who connect well together socially or mentally, is called community. A community is an assemblage of populations interacting with one another. They can be small, larger or more extended communities such as a national community, international community and virtual community. The sense of connectedness through religion, languages and culture, leads to formation of social networks, comprising a community. Community development may involve sfoundations, governments, non-government organisations (NGOs), universities or social agencies.
- One cannot separate economics, political science, and history. These three fields can not be separated or compartmentalized, obscuring the close interconnections between them.
- For ruling the country, any government needs people's support and cooperation. Government needs support of industry to generate wealth and provide goods, services and employment to people. Government is dependent on tax paid by people and businesses for its operational expenses and social welfare programs.
- Any business needs government approval to operate and depends on consumers to buy their good and services. It is people who run these businesses as workers or owners (except fully owned foreign firms). Businesses target their marketing campaigns using preferances of different communities.
- All communities made up of people, need governments permission to carry out their activities. All community activities will need resource support from government and business.
Empires, which has swallowed all the states, have been the dominant international organization in world history. This is in contrast to a federation, which is an extensive state voluntarily composed of autonomous states and peoples. An empire rules over territories outside of its original borders.
Empire-building refers to the tendency of countries and nations to acquire resources, land, and economic influence outside of their borders in order to expand their size, power, and wealth. In business, empire-building is the practice of enlarging sphere of authority or attempting to acquire greater power.
- Countries, businesses and communities all wants to extend power of influence and establish power centres as far as you can.
- Countries adopt trade, allies, colonialism, annexation and slavery to expand. Similarly business use joint ventures, acquisitions and take over tactics are used. Religions goes about converting people of other faiths. One community imposes their ideas on another community.
- Big size gives overall optimizaion and helps them to grow bigger still.
- Different strategies are: negotiate with equal; create fear on weakness and make them cooperate; divide members and penetrate the other group; make other groups weaker financially or resource wise to facilitate yake over; kill people or organizations; and hostile take overs.
- Globalization, Internationalization and global value chains are just empire building.
Politics - a power game
Politics is a power game. Leaders will change completely after power and their earlier views need not be taken seriously. They are dictated by people who brought them to power.
All Societies have following types of people:
(1) Silent or Indifferent majority: For them it does not matter whoever rules. They will be from diverse background and affiliations.
(2) Illiterate majority (not bothered to understand or analyse facts) who can be bought with goodies or emotional speeches or attractive celebrities
(3) Aggressive minority (power thirsty), who want to grab political power
(4) Influential minority (with wealth and other resources) who are king makers from behind the scene
No type of government is perfect. It is difficult to have an ideal democracy. (Greek call it pebble logic.) Still democracy works for many countries.
Ruling Throne is on four legs:
(1) Economic/Financial power brokers (with wealth and influence);
(2) Social big shots involved in religion, race, tribe, caste and community orgnizations;
(3) Media, celebrities/crowd pullers and publicity brokers (How ruler is seen by people); and
(4) Military/Law-order/Civil/administrative and Professional services.
Rulers have to balance these, many times using divide and rule principle.
- History, is that story of how Countries, businesses and communities evolve (grow and decay) over time.
- Countries, industries and communities, change in size, composition and all over time.
- All well grown empires have to dacay after some time, to be replaced by new empires. Nothing can be permanent or can last long
- Every one fights to win and if you do not, your opponent will and will subjugate you.
- History is written by winners. Loosers are responsible for war and all related problems. Winners are heroes and loosers are villains.
- In the end of competition and wars, two or three may become dominant players, dividing the other smaller ones to their allies
- To avoid dictatorship or bullying by one biggest guy, it is good to have minimum of two big players. This will sort of provide checks and balances for overall system.
- Every one needs other one. So, some temporary stability will be established.
Political Economic Geography (PEC Triangle)
All activities in the world can be represented by 6 small triangles, which function based on three concepts Politics; Economics; and Geography.
No economy without people in place (and thus politics), and no place and people without economy. Economic geography is the study of the location, distribution and spatial organization of economic activities across the world. Geography focuses on industrial location, resource distribution and other quantitative methods. Now economic geography contains social, cultural, and institutional factors, which are linked to political economy. With spatial thinking to international trade theory, and trade itself is dependent on political economy, Political Economic Geography is born. Since 1980s, geographical political economy, an approach prioritizing commodity production over market exchange was a popular topic.
An economic system is a system of production and exchange of goods and services as well as allocation of resources in a society. It includes the combination of the various institutions, agencies, entities and consumers that comprise the economic structure of a given community. Economic practices/relations are multiple, always incomplete, no stable rationalities or principles of agency.
Economic systems are commonly segmented by their ownership structure and property rights and by their dominant mechanism of resource allocation. Economies that are combine private ownership with market allocation are called "market capitalism", and economies that mix private ownership with economic planning are called "command capitalism". Likewise, systems that mix public or cooperative ownership of the means of production with economic planning are called "planned socialism", and systems that combine public or cooperative ownership with markets are designated as "market socialism".
Today the dominant form of economic organization at the global level is based on market-oriented mixed economies.
In a capitalist economic system production is carried out for private profit, decisions regarding investment and the use of the means of production are determined by business owners in the marketplace. The means of production are owned primarily by private enterprises and decisions regarding production and investment determined by private owners in capital markets. Capitalist systems range from laissez-faire, with minimal government regulation and state enterprise, to regulated and social market systems, with the stated aim of ensuring "social justice" and a more equitable distribution of wealth
Geography plays a part in determining an area's economy. The geography of the world economy is changing. The new world economy is marked by competition between local clusters becoming global clusters or global value chains and global cities. The economy is in part breaking its links with territorially and politically constituted entities and creating spaces of its own. The reach of national governments ends at their external borders, which have largely ceased to constitute crucial boundaries to the transfer of money, goods, technology, and knowledge.
Along with its geography, the world economy's governance patterns are in the midst of a process of change: beyond classical international organisations like the IMF, global regimes like the WTO; global clubs like the International Stability Forum; globally operating firms, organising transnational production and trade networks; and, internationally active NGOs, negotiating with multinational corporations over social and ecological standards, are growing in significance – shaping the dynamics of the global economy. Against this background of growingly dense global inter-dependencies and transnational interactions in the world economy weare forced to readdress the issue of whether and to what extent economic development can be formulated and shaped by political means.
Activities and Groups in PEC Triangle
These activities or groups drive Economy. Politics and geography regulate and affect economy
- People needs are: basic; luxury items; and cultural items.
- People are divided in to 3 classes: worker; owner; and regulator.
- Nation is administrated by ruler to control ruled subjects and organizations.
- Society divided based on birth (tribes/race); religion and belief system; and native or alien.
- Business is made up of Consumer; Trader; and Producer
These three players are present in all three sectors: agriculture; manufacturing; and services.
- Internationalization has 3 components: Global firms; Alliances and Trade blocks; and World agencies such as UN, World bank and so on.
History or Evolution of Globalization
- The modern system of free trade, free enterprise and market-based economies, actually emerged around 200 years ago, as one of the main engines of development for the Industrial Revolution.
- Free trade formed the basis of free enterprise for capitalists and up until the Great Depression of the 1930s was the primary economic theory followed in the United States and Britain.
- But from a global perspective, this free trade was accompanied by geopolitics making it look more like mercantilism. For both these nations (as well as others) to succeeded and remain competitive in the international arena, they had a strong foundation of imperialism, colonialism and subjugation of others in order to have access to the resources required to produce such vast wealth.
- However, as businesses saw their profits diminish, economic liberalism was revived, hence the term “neoliberalism”.
- Globalization, Internationalization and global value chains are just freedom for businesses to expand beyond borders.