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BRICS Bank Could Change the Game

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In full-fledged preparation for the official launch of BRICS New Development Bank (NDB) as an extraordinary highlight event during the July Summit under his chairmanship, Russian President Vladimir Putin has ratified an agreement on the establishment of a $100 billion BRICS pool of currency reserves, according to a document published early May on Kremlin’s official website.

Putin signed the federal law “On ratification of the Treaty establishing the pool contingent of foreign exchange reserves of the BRICS countries.” The federal law was first passed by the State Duma (Lower House) on April 24 after series of parliamentary deliberations and was finally approved by the Federation Council (Upper House) on April 29, 2015.

The agreement provides for the establishment BRICS pool contingent of foreign exchange reserves in order to provide financial support in the event of the partners of the BRICS problems with dollar liquidity in their domestic financial systems. This means that the $100 billion pool will maintain financial stability of the BRICS countries and allow for defenses against market volatility. The fund is meant to shield the BRICS against “short-term liquidity pressures” and promote greater cooperation between the five member countries.

On July 15 last year, in the city of Fortaleza (Brazil), BRICS members (Russia, China, Brazil, India and South Africa) signed an agreement to establish the $100 billion development bank, as well as a $100 billion reserve currency pool. China is set to provide the largest share of $41 billion to the pool, while Russia, Brazil and India will provide $18 billion each. South Africa is set to chip in the remaining $5 billion.

The headquarter is expected to be based in China’s Shanghai. The group agreed that India will preside as president on its first year. Russia, meantime, will be the chairman of the representatives.

Professor Georgy Toloraya, an Executive Secretary at the National Committee on BRICS Studies, in an interview with Buziness Africa notes the significance of BRICS bank as a catalyst to other international financial institutions, and explains further that “the Asian Infrastructure Investment Bank (АIIB) is a regional bank while the New Development Bank (NDB) is supposed to have a global outreach.”

“The AIIB is technically China-dominated and will center on projects, interesting to China. The New Development Bank (NDB) will have equal representation. Thus, it’s influence in changing the global financial architecture can be bigger. But competition is a good thing for these two banks as well,” the Executive Director wrote in an email comment to Buziness Africa.

He also recalls Russia’s suggestion to reform the international financial and economic architecture (including the International Monetary Fund) in the context of new developments in the world economy taking into account the legitimate interests of all the countries in order to create a more representative, stable and predictable system, reduce risks of destabilization of monetary and stock markets related to the massive cross-border movements of capital.

Toloraya points out assertively that an effort should be to create the road map of investment cooperation in the BRICS framework, conclude a multilateral agreement on the encouragement and protection of investments, and to single out areas for intra-BRICS cooperation and to develop cooperation in new technologies.

Contributing to this discussion, Professor David Shinn, who is an Adjunct Professor of International Affairs at The George Washington University’s Elliott School of International Affairs, argues in an email interview that “the BRICS New Development Bank is not yet functioning and it is not clear how the five original partners will share power. Other countries have been invited to join the bank, which could further alter the decision making process.”  

The idea is that the five countries contribute a total of $100 billion for an initial capitalization pool for the bank. Should some countries contribute more than others, it is safe to assume those countries will have more leverage than those who put in lesser amounts, the former U.S. Ambassador and now Professor argues, adding that “the devil is always in the detail.”

It is also important to remember that the bank is the first tangible result of the BRICS, five countries that have only one thing in common: at the time they joined BRICS they were the largest economies in their geographical regions. The Nigerian economy has now surpassed South Africa’s economy, so even this commonality is in question, he says.

“I don’t really see the BRICS New Development Bank as operating in competition with the Asian Infrastructure Investment Bank. There is much to be done in the developing world generally and Africa specifically that will accommodate both banks in addition to the contributions of the World Bank and African Development Bank. So long as the BRICS bank is run competently and follows international standards, I expect it will make a positive contribution. But first it has to open its doors and start making loans,” concluded Professor Shinn

According to the biographical history, David Shinn is an American diplomat and professor. He is currently an Adjunct Professor of International Affairs at The George Washington University’s Elliott School of International Affairs. He offers consultancy to the U.S. Government on the Horn of Africa and Sino-African relations. He served previously as an Ambassador to Ethiopia and Burkina Faso.

Undoubtedly, South Africa is a minority contributor to the total currency reserve pool (contingent reserve arrangement – CRA) but an equal contributor to the New Development Bank (NDB or BRICS Bank). With the CRA, the funds committed remain in possession of South Africa.

“The rhetoric is that South Africa’s voice in BRICS financial matters is not going to be compromised, despite being a minority contributor to the CRA, yet South Africa has been shut down in BRICS negotiation processes before and there is a strong tendency for this arrangement as well as the NDB, which will be headquartered in Shanghai, to be driven by China,” says Hannah Edinger, a Director at Frontier Advisory (a research, strategy and investment advisory firm that assists clients to improve their competitiveness in emerging market economies) headquartered in South Africa.

Similarly, Edinger further explains, the AIIB is China’s brainchild and one more initiative to give China a greater leadership voice in the region, given that reform of existing institutions such as the World Bank and broadly speaking global governance has been slow and not that reflective of China’s economic rise.

While focus of both the NDB and the AIIB will be on infrastructure project financing, I don’t think these two banks will necessarily go head to head in terms of competition. Even with the existing Asian Development Bank (ADB) in the region, there is room for co-financing of projects, given that in Asia the infrastructure funding gap is multiple trillions of dollars.

Underlining the high relevance of these two banks, Edinger told me that “in fact, India’s infrastructure deficit alone is already in the multiple trillions of dollars…. Current lending institutions in the regions are unlikely to fill this gap, and even when the NDB and the AIIB are at full lending capacity they might still not plug the deficit. Also, the NDB’s mandate will not only focus on Asia, but also on Latin America and sub-Saharan Africa. I think the challenge for both banks will be to find good projects.”

Alex Vines, a Director for the Africa Programme at Chatham House in London, explains to Buziness Africa that South Africa’s inclusion in the BRICS has been a way for the ANC government to leverage its foreign policy, and position itself within the emerging narrative on South-South cooperation and trade. Their support for the creation of a New Development Bank is a continuation of this, and although only Russia has ratified it so far, the South African’s are in the final stages of ratifications.

The Agreement on the New Development Bank that formerly established the bank at the VI BRICS summit in Brazil last year stated that each of the founding members will initially subscribe to an equal number of shares, indicating equal voting rights on those shares. The bank will invest primarily in infrastructure projects in both BRICS and non-BRICS countries, and the establishment of the first regional office in Johannesburg will give access to the African continent where infrastructure development needs are highest.

The establishment of the first regional office in Johannesburg will give a boost to South Africa’s attempts to market itself as the ‘gateway to Africa’, a position it has had difficulty maintaining against emerging regional hubs such as Lagos and Nairobi. The bank will also deepen the political relationship between China and South Africa.

“The NDB is the first tangible outcome from the BRICS organization, but the political relationship between China and South Africa extends outside the organization. China has become South Africa’s main trade partner, and South Africa is China’s largest partner on the African continent,” he wrote in an email to Buziness Africa.

Plans for the Asian infrastructure Investment Bank are still in their infancy, the MOU was only signed last October, but it looks like these institutions will complement, rather than compete with, each other.

Vines also said: “the establishment of the NDB was in part a reaction to under-representation in the existing international financial institutions, but it is unlikely that they will become direct competitors. It is estimated that the infrastructure investment requirement developing countries tops $1trillion per year, so there is plenty of room for new players in the marketplace, including the World Bank’s proposed Global Infrastructure Facility.”

In the case of the BRICS bank, Christopher Wood, a Researcher on Economic Diplomacy at the South African Institute of International Affairs (SAIIA), also explains in an email discussion recently…“China does not actually contribute more. All five countries are contributing $10 billion of callable capital to start with, giving them equal say in the decisions of the banks. Where China does contribute more is in the case of the Contingent Reserve Arrangement, which is a separate agreement that is a pool money that the five BRICS can draw on in times of financial crisis. The best way to think about the relationship between the two is that the BRICS New Development Bank is like the World Bank (providing funding for development projects), while the CRA is like the IMF (providing emergency funding in times of crisis).”

In the case of the CRA, South Africa does have a very small voice, but it’s not so important in this type of organization. The only decisions that will be made will be over whether to release funds to a country that requests help, and this would usually be an easy decision to make, based on hard economic evidence, according to Wood.

There are challenges to overcome. Researcher Wood thinks that “the bank’s short term challenges will be logistical, completing basic things like hiring staff, building internal operational procedures, and so on. Once this is completed, two larger challenges will present themselves. First, making a decision on what projects to fund, which will involve answering difficult questions on what type of projects the bank prioritizes, where it most wants to operate, and what role political priorities might play. Second, would be in building relationships with existing funders, like the World Bank and AIIB, to assure the BRICS bank doesn’t have to bear all the risk of the projects it gets involved in.”

On the other hand, Wood does not think China’s position in both the AIIA and BRICS bank indicates it wants to dominate the global space of these institutions, but certainly indicates it wants to play a bigger role. Traditional institutions are still dominated by developed countries and reforms that would give a bigger voice to countries like China have been very slow. In the Asian Development Bank, for example, the US and Japan each have more than twice as much voting power as China. The new institutions represent China’s frustration with the lack of reform and the persistence of a voting structure that doesn’t reflect its growth into a global superpower.

Chris Weafer, a Senior Partner with Macro Advisory, a consultancy advising macro hedge funds and foreign companies looking at investment opportunities in Russia, said in comments published recently that “within this new group, Russia certainly has a role because the country is the world’s biggest energy exporter and, on aggregate, the world’s biggest minerals exporter. Neither China nor India could sustain their current high pace of growth without either direct materials imports from Russia or, indirectly, from the global marketplace.”

He says “that alone justifies a seat at the BRICS table. Beyond that, Russia is already one of the largest consumer markets in the world and is, on a per capita and per household basis, the largest in the emerging market world.”

The idea to set up BRICS bank was first proposed by India and that topped the agenda at the summit of the group in New Delhi in March 2012. India believes a joint bank would be in line with the growing economic power of the five-nation group. The bank could firm up the position of BRICS as a powerful player in global decision-making. India believes that a BRICS bank could, among others, issue convertible debt, which would arguably be top-rated and can be bought by central banks of all BRICS countries. BRICS countries would thus have a vessel for investment risk-sharing.

The BRICS countries collectively represent about 26% of the world’s geographic area and are home to 42% of the world’s population. The BRICS consumer market is the largest in the world and is growing by $500 billion a year. Since the start of April, Russia has assumed the presidency of the BRICS group, taking over the position from Brazil. The next BRICS summit will take place in Ufa, the capital of Russia’s Volga republic Bashkiria, on July 8-10, 2015.

MD Africa Editor Kester Kenn Klomegah is an independent researcher and writer on African affairs in the EurAsian region and former Soviet republics. He wrote previously for African Press Agency, African Executive and Inter Press Service. Earlier, he had worked for The Moscow Times, a reputable English newspaper. Klomegah taught part-time at the Moscow Institute of Modern Journalism. He studied international journalism and mass communication, and later spent a year at the Moscow State Institute of International Relations. He co-authored a book “AIDS/HIV and Men: Taking Risk or Taking Responsibility” published by the London-based Panos Institute. In 2004 and again in 2009, he won the Golden Word Prize for a series of analytical articles on Russia's economic cooperation with African countries.

Economy

Explainer: African Leaders Should Accelerate Industrialization Without Short-Haircut Processes

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At the end of their four-day deliberations, African leaders and participants have issued a joint statement relating to the future of economic diversification and industrialization in Africa. The summit provided the opportunity to take stock of the progress made during the year on the drive towards industrialization, it also provided a policy dialogue platform to firmly recommit to accelerating structural transformation. 

Convening in Niamey, Niger, the Extraordinary Summit on Economic Diversification and Industrialization, the ministers and participants collectively, in a the report, suggested that the key policies and regional integration issues should be drastically addressed to support industrialization in Africa, reminding further that Africa is widely seen as a future investment and development frontier given its extraordinary economic potential in Africa.

It was, however, acknowledged that it was held at the backdrop of a completely uncertain global landscape owing to the prolonged effects of the coronavirus pandemic, the pressing challenges posed by climate change and the Russia-Ukraine conflict that have disrupted the global supply chains with huge consequences globally and more fundamentally on African economies.

According to the summit reports these circumstances have revealed the extreme fragility of African economies against external shocks and reinforced the need for structural changes necessary for the acceleration of productive transformation through a determined shift towards sustainable and resilient industrialization in the years and decades ahead, the statement says.

The summit highlighted the role governments and other non-government actors play in addressing the constraints to industrial development, strategies for countries to re-invigorate the role of development finance institutions to promote industrial financing while drawing lessons from existing challenges, strategies for the countries to deal with global issues such as climate change in their efforts to industrialize, and reflected on the experience on industrial policy, design, implementation and monitoring its new industrial strategies. 

Ms. Aissata Tall Sall, Minister of Foreign Affairs and Senegalese Abroad and the current Chairperson the Executive Council, underscored the critical role of the private sector in supporting innovation in high-potential areas such as agriculture, agro-industry, health, education, infrastructure, and especially energy, which remains a crucial issue in advancing industrialization. 

She observed that “this decision has a high strategic significance because the aim of the industrialization and productive transformation process in our countries is to improve their capacity to take advantage of the many human and natural resources that the continent has to offer. Indeed, the industrialization of Africa can unlock the continent’s potential for inclusive growth by expanding access to the economic opportunities thus created to all segments of the population, especially women and youth. In addition to these challenges, all of which are important, there is the issue of mobilizing domestic resources to finance our economies, as well as the fight against illicit financial flows that encourage tax evasion and corruption.”

Massoudou Hassoumi, Niger’s Minister of Foreign Affairs and Cooperation emphasized on the urgency for inclusive industrialization that harness the demographic divide of the youth, which he noted would also sustainably address issues of irregular migration, manipulation and recruitment into outlawed groups.

He added that “industrialization and economic diversification are therefore a lasting economic legacy that we must leave to the younger generation, because it is a solution to the challenges of the moment, especially those related to insecurity. In this regard, it is important to reiterate the African position for a fair and equitable transition to defend the right of our countries to exploit their available resources such as gas, alongside their efforts to develop the energy mix.” 

To accelerate the progress made in operationalizing the African Continental Free Trade Area, Moussa Faki Mahamat, Chairperson of the African Union Commission restated the need to conclusively address the structural challenges that hinder the optimal functioning of the common market. 

“The major challenge here is to be able to strengthen trade between African countries that are more open to the outside world through agreements that have already been signed and that manage the bulk of their trade. It is therefore a matter of developing the capacity to successfully transform our productive structures with a view to increasing the complementarity of intra-African trade. It would also be necessary to ensure convergence by reducing the major gaps between Member States and between the Regional Economic Communities in terms of development and level of integration. The AU Commission’s State of Integration in Africa 2022 report has highlighted the reality of such gaps,” according to Moussa Faki Mahamat.

Africa possesses 60% solar irradiation in the world, 70% of cobalt global production and significant reserves of other battery minerals, world class carbon sink assets in our forests and peatlands, huge green hydrogen potential, which Antonio Pedro, UNECA Acting Executive Secretary noted can position the continent to become a powerhouse and a globally competitive investment destination for multi-sectoral investments combining climate action, job creation and industrialization. 

“As we drive industrialization, we also need to realize that industrialization is not an event, but it is a process, and a long one at that. And, of course, we should be mindful that industrialization is not the business of Ministries of Industry alone. Instead, the implementation of true industrial policy requires a whole of government and beyond approach and action. It requires aligning industrial, trade and other sectoral policies and putting science technology and innovation at the centre to ensure that we remain globally competitive beyond our initial endowments and comparative advantages,” noted Antonio Pedro.

To rally the support of the private sector, Dr. Amany Asfour, started the commitment by the AfroChampions Initiative to mobilize the private sector to enhance the public-private partnership as the continent moves from commitment to action on industrialization and trade. Empowering the private sector through market-based solutions and resolving finance barriers remains critical.

Among the recommendations of the minsters of the appointment of the African Union Champion for Sustainable Industrialization and Productive Transformation to provide political leadership, awareness and ensure effective implementation of Africa’s industrial development. And further considering endemic factors that have stifled the Africa’s economic transformation, it is important to reassess the continent’s capabilities in the face of external shocks. 

In this regard, it is important for the African Union members to set up innovative and inclusive institutions capable of designing and implementing effective industrial policies and processes that will advance socio-economic transformation, as stipulated in global and continental frameworks such as the African Union Agenda 2063, the United Nations Sustainable Development Goals and the Third Industrial Development Decade for Africa.

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Bregret Reigns Britain: Blaming Brexit over Economic Exigency?

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Sometimes I blunder that the UK is still a part of the European Union (EU). Whether when discussing a unified policy stance on sanctions targeting Russia or a common polity on sustainable energy strategies for a resilient future of Europe. Brexit may be a figment of the recent past, but its tremors are certainly not bygone. And the European cohesion, which should’ve been envied at a time when Russia is wreaking havoc on its energy security, seems ephemeral as Britain’s vexed relationship with the EU refuses to recede. However, amid the boiling economic crisis in Britain and the rest of Europe, public sentiments betray an inherent admission: Britain’s exit from the Union might have been a mistake. But the connotation of this public rhetoric is just as awry as the Brexit chatter leading up to the 2016 referendum.

The opinion of Britons has been notoriously fickle throughout history. But the outcome of the Brexit referendum was razor-thin at inception. Now, a stagnant economy; a revolving-door political leadership; and decades-high inflation are turning the tide against the championed narrative of the Conservatives. According to a recent opinion poll by YouGov – a leading market research and data analytics firm headquartered in Britain – 56% of the Britons surveyed concurred that leaving the EU had been a mistake. Only 32% believed that Brexit was a good idea. However, while many Brexit critics would jump onto this opportunity to bash the Tories, this perception is misguided, a product of frustration of an irate populace looking to blame something for their woes. And Brexit has been a notable feature of the ruling government.

Britain installed its fourth prime minister since 2016 last month. But the damage was already done a few months back. Britons were already reeling from soaring energy prices and acute food shortages. The economic slowdown was heralding an unfamiliar era of high-interest rates and unemployment. Then entered Liz Truss, the former prime minister who eschewed economic orthodoxy with her trickle-down tax-cut plans. Her disastrous stint in office – that barely lasted 50 days – tipped the pound into a free fall, sparked a liquidity crisis for pension funds, and sent government borrowing costs spiraling to harrowing levels. While the incumbent Prime Minister Rishi Sunak has managed to calm the turbulent economy, the wreckage is still visible in the mortgage market.

Earlier this year, mortgage rates in Britain typically remained below 2.5%. Since October, however, the average two-year fixed rate mortgage is hovering around 6.25% – slightly down from the peak of 6.65% on Oct. 20. The lowest two and three-year fixed rates are still above the 5% mark, according to Moneyfacts Group, a financial information company. Unlike the United States, British mortgages run for shorter terms. For instance, about 2 million mortgages in Britain would reach the end of their fixed terms by the end of next year, pushing many Britons to refinance at rates more than double their initial settlements. An estimated 1.6 million borrowers in Britain have variable mortgages, which track the central bank’s policy rate. Thus, as inflation keeps running ablaze, no respite seems on the cards. 

The annual rate of inflation in Britain has reached a multi-decade high of 11.1%. And at its last policy meeting, the Bank of England (BoE) – the central bank of Great Britain – hiked its interest rates by 75 basis points, taking the policy rate to 3% – the highest level since the financial crisis of 2008. Andrew Bailey – governor of the Bank of England – doubled down on his commitment to raising interest rates higher to deter double-digit inflation fuelled by pandemic-induced supply chain logjams and the mercurial energy prices triggered by the Russian retaliation against Western sanctions. While the logistics backlogs seem to be improving, the Russian dilemma shows no sign of resolution. And as the Western coalition prepares to implement a price cap on Russian energy supplies, economic difficulties would only worsen for the British citizenry.

According to the Office for Budget Responsibility (OBR), a fiscal watchdog group in Britain, inflation-adjusted disposable income is projected to slump by circa 7% over the next two years under the government’s new budget plan. Introduced as the “autumn statement,” the 55 billion pound ($65.4 billion) budget virtually reversed every plan by Ms. Truss. Mr. Jeremy Hunt – the new chancellor of the Exchequer – has frozen the annual taxable income threshold until April 2028 rather than having those bands adjust to the inflation rate. Consequently, the top tax rate of 45% would now be applicable on earnings starting from £125,140 instead of the current level of £150,000. The government has also raised the windfall tax rate on energy firms from 25% to 35% until March 2028. Hence, economists believe that aggressive rate hikes coupled with such steep tax increments could trigger a brutal recession – perhaps the most debilitating since the 1930s.

So blaming Brexit for the economic turmoil battering Britain is not an accurate depiction of the public sentiment regarding Brexit. And it is chiefly because the throes of the British economy are tricky to quantify under a defining rubric. 

True, the UK is struggling with labor shortages. But this issue is not entirely driven by Britain’s inability to replace workers from Europe, who left after Brexit. A substantial portion of workers are Britons, who left during the pandemic and never returned to the labor force. Many started their own businesses; some settled into the groove of remote work. 

Admittedly, Britain’s sluggish growth further worsened when investments diverted to other epicenters of commerce in Europe after Brexit. Britain is the only member of the Group of Seven (G-7) advanced economies with an economy smaller than its pre-pandemic level. Recently, India replaced Britain as the world’s fifth-largest economy; Paris supplanted London as Europe’s highest-valued stock market, according to data published by Bloomberg. But Britain’s productivity has been in decline since 2009; public funding has been in the dumps ever since austerity policies were implemented in the aftermath of the 2007 financial collapse. High-interest rates are visibly hurting the domestic outlook of the British economy. But it is mainly because people were so conditioned to the ultra-low interest rates over the past decade that their perspective is dovishly askew.

Nonetheless, the British government has the incentive to structure a trade mechanism with the EU. While the hardliner Conservative MPs who voted Sunak into the office would definitely resent (and veto) an intimate relationship – like that enjoyed by Switzerland and Norway – with the single market, a settlement of disputes revolving around the hybrid trade status of Northern Ireland is imperative to Britain’s economic revival. Yet, if the Labour Party manages to topple the Tories in the next general elections, a closer alignment with Brussels should be in the vanguard. Because while Britain’s economic debacle might not be entirely Brexit’s unraveling, the UK cannot resurface without improving relations with Europe in an openly hostile neighborhood with a bleak future.

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Economy

Global Recovery: Mobilize SME, Digitize Economies and Commercialize Exportability

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Like an open book, all such deployment ideas are already available for last many years to allow immediate mobilization of any national small medium business economy. On the world stage, as a recovery, nations can digitize on fast tracks any selected sectors of economies and get ready to dance on global digital platforms. Nations can become examples on creating superior exportable goods and services while commercializing innovative ideas on the global stage. There are no secrets on how to achieve all this, but there are huge secrets why it is still not being done despite all the economical struggles?

How to capture opportunity losses; the biggest tragedy of any disconnected economic progress is watching the world ‘continuously’ advancing, consuming and growing, while nations ‘persistently’ despite extraordinary resources abandoned, talented citizenry only herded and left as spectators, trade associations, chambers and government agencies remain disconnected. Therefore, needed are precise world-class goals, as national symbols of unity, diversity and tolerance. So, what are the top missing rules to mobilize a nation on economic development fronts and what is stopping?

How to grow economic development? The fastest way is via right meaningful collaborations, alliances and brokering of deals, the fears of communications must be eliminated, the trepidations of opening global markets is just a mindset issue but not having bold open dialogue on fast track vibrant programs is a killer. Establish, define and articulate a long term agenda and drive like a formula car.

National mobilization of SME entrepreneurialism is a step by step methodology, if there is still no progress after a decade, which only raises serious questions about available skills to lead such a charge. Similarly, 50% mobilization of the qualified SME if allowed to dance on global digital platforms creates productivity, performance and profitability and therefore brings foreign exchange to improve national grassroots prosperity. If local economic development teams do not openly engage, adapt and utilize available blueprints and related mobilization expertise little or nothing will happen.

This is not about good or bad management; this is about core competency to move national economies towards pragmatic progress, particularly, when national mobilization of entrepreneurialism is already an entrepreneurial movement. This is far apart from the traditional bureaucratic procedural paperwork and especially in most cases not necessarily new funding dependent rather execution hungry and deployment starved. In most cases, the lack of knowledge on the global age demands and transformation of digital platforms, that leaves the SME behind. Study more why will population-rich-nations lead knowledge-rich-nations?

Matter of choice: Unless immediately exercised the required departmental tests and measure capabilities matching right mindset and speedy execution requirements, just piling up degree-holders and highly preferred staffing without precision is in reality what is destroying economic development.  So, choose economic progress or choose bad HR, the economic recovery has no time to waste. Explore new options on how to acquire mastery on such affairs. What level of efficiency is required to become a productive nation to cope with the consumption hungry world?

Furthermore, to play in global commerce, the global age speed of communication acts as a power of progress rate. There is no room for departmental responses to take days, weeks and months, but must face global age demands as a thriving 24x7x365 living world waiting for immediate response. What will it take to create a LIVE economic development recovery program of highly integrated departments? What levels of expertise are required to start deployments of such thinking? Better understand how other nations are doing, study a new world of G20 and national mobilization of small medium business economies

Capitalism is not failing; it is economic development. Unless mandated differently, the circus will go on. The skills gaps are not about lack of degrees; rather, global age experiences to understand how the pyramid of global consumption works, how to open new markets and how to produce real value to stand up to the global age of competitiveness. Skills are not about degrees, but now translated into global age skills as art of communication, presentation and global age level understanding of diversity, tolerance and entrepreneurial mindsets.

Why blind leading blinds; why high priced and fancy studies on SME always select ‘access to finance’ as the mother lode problem but they critically lack centricity of entrepreneurialism as such studies are academic driven. Hence the biggest disconnect, SME founders are not interested in loans but sales. Sales are more about value creation and globally accepted production standards to cope with global age competitiveness, where they do not require consultants rather developed skills to become better executives and better producers. They need help but not the loans, they need skills and knowledge and not the procedural and conflict resolution compliances. They know too well what to do but need to know how to do it better. Cookie cutter complex forms and rubber stamping will never do the trick, they need entrepreneurial dialogue, but not from academia but real entrepreneurs. They strive for meritocracy and not bureaucracies.

No, this is not an academic study but an entrepreneurial response to grand economic failures by the majority of nations on up-skilling SME and re-skilling manufacturers at national digitized levels. Furthermore, failing to understand the difference between the job seeker and job creator mindsets is the first step to get eliminated from any serious dialogue on the subject of SME economic recovery. Failing to articulate on the national mobilization of entrepreneurialism is the second step to get eliminated from any economic development activity as a whole. Study more on Google.

Proof is mandatory; when it takes 10 days to debate, strategies and finalize a national mobilization programs, and when it takes 100 days or organize digital platforms to deploy 10% to 50% selected SME on digital platforms and 1000 days to turn around small medium business economies so why still there is no show after last 5 or 10 years. If there is nothing wrong, why are the restless citizens marching in protest? Why are economies openly collapsing and what is stopping them to correct the course and how much it has to do with core competencies at the source of economic development? Is it possibly now a time for the first industrial revolution of the mind

Next key steps: What can current teams learn and what can they deploy within 90 days in any sector or any national economic realignment. How can they be framed as a customized national mobilization of entrepreneurialism model? How can they select and identify 5K to 50K SME and get them ready for a digital platform? How can they start intense programs to up skill and re-skill all layers of the economic departments to become a global age expert and start thinking of future applications and methodologies of economic growth? What does it take to acquire mastery on national mobilization of entrepreneurialism within a specific SME sector or across the nation? The rest is easy.  

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