Connect with us
business-upskilling business-upskilling

Economy

Upskilling: Are million SME ready for marathons of exportability?

Published

on

Unimaginable new destinations are only at the end of untraveled roads; unless there is brand new map highlighting new paths, the governing leaderships on the revival of small medium enterprises on exports very little will ever change. Old systems served the past, no longer fit for the global-age, now, a new and revolutionary mindset differentiates successful economies facing futurism and disconnect ones facing populism. 


Simple test: On a scale 1-10, 10 ranks as high, below 9 ranks as failure.

Question: What level of understanding is there to articulate on the following hot topics?

“Trade-wars are proof of low quality exports and unskilled workforce, lingering delays compounds…”
“Export promotion agencies are from the past, each SME showcased as its own promotion center…”
“Government agencies lack digitization and global age marketing skills for not being their mandates…”
“Platform economies models based on free technologies are many steps above old thinking…”
“How Alibaba sold USD$39 Billion within 24-hours on November 11th 2019, still not a hot debate…”
“National mobilization of entrepreneurialism on digital platforms a survival strategy for nations…”

The absence of bold and open dialogue on midsize business economy whispers volumes:
What’s lacking advanced knowledge on digital platform economies, not the IT expertise but the mobilization of entrepreneurialism to make them creatively superior with real value offering and commercially profitable with pragmatism? What missing is “showcasing expertise” not some brochure or website but targeted profiling and value positioning to uplift national hidden talents as national wealth of innovative excellence to support manufactured goods from highly functional SME across the nations?

Until now such image positioning exposures and digital features exclusively available to only large multi-national organization as their mega budgets adverting agencies created dance on global platforms with logo-slogans for lead generation visibility. Suddenly, now the small businesses of the world are dancing under digital rain and under heavy pour of free technologies to allow such capabilities for small medium size operations. The gatekeepers, stakeholders and all the other policy makers must come to grip to this global age phenomena and demonstrate their appreciation with rapid deployments to increase exports and create foreign exchange to bring local grassroots prosperity and avoid populism.

What’s now needed are immediate placements of SME profiles on the free and powerful digital platforms to showcase the entire region or country each SME professionally showcased and highlighted with digital sorting and interconnectivity with global bounce to make them shine like a star.

Study Pentiana projects and deployment models: Most of the 200 nations, each with 1000 to 1,000,000 SME of varying capabilities, on digital platform economies with extraordinary powers to such abandoned masses of talents, craftsmanship and business expertise and with national mobilization of entrepreneurialism protocols they rise up. So what’s stopping?


The national hidden agenda: should we ignore our thousands or millions of small medium businesses? Should we just avoid open debates, discussions on conflicting points of views on global age of SME commerce? Should we just stay mum on all grassroots prosperity execution styles and prosperity affairs and await populism? Should just make trade-wars strategy as survival of exports and fights on nationalism? When will we get the courage to openly talk about quality ranking of exportable or upskilling working-citizenry to become masters of innovative excellence and when will we shift priorities and replace education by create armies of critical thinkers, with confidence to bring million trades for million SME and deal with wide open world with 200 nations?

Free technologies allow all that; but revolutionary ideas, demands revolutionary thinking and execution, like enjoying quality growth, these strategies call for national agenda and deployments under new thinking… “Firing the first person for incompetence for saying they have no new funding to change and firing the next person for disorganization for saying they are too busy and have no time to change”

The Crosscurrents of Today: No need to wait for the arrival of The Forth Industrial Revolution; jump today, to the first industrial revolution of mind, adopt free technologies now, immediately advance on digitization and free platforms with massive training and transformation on critical thinking. Without any time to waste nations in export predicaments should become ‘platform economies’ and become export champions by national mobilization of entrepreneurialism to match global demands with best quality and value creation for the 200 nations.

Facts of today: Fact One: The world can easily absorb unlimited exportable ideas in unlimited vertical markets. Fact Two: The well-designed innovative ideas are worthy of such quadrupled volumes. Fact Three: The entrepreneurial and hard working nations blessed with natural resources are capable of such tasks.

Realities of today: Anything and everything work-production-related is now global in nature, understand well on how to work and produce for the global-standards. Anything and everything technology-related is almost free, check pricelists and explore options and eliminate fears of robots. Anything and everything demanding global-age-skills-related is often critically missing, make lifelong learning mandatory across the region or nation. National mobilization of entrepreneurialism is a new art and science on digital platforms. Awaken the nation with digital platforms.

Solutions of today: What deployment ready strategies are in place for National Mobilization of Entrepreneurialism on platform economies necessary to uplift midsize economy?  How will Chambers of Commerce of the world on digital platforms start to showcase members and what positive energy will it create when the 11,000 chambers with 45 million members come into action? When hidden national talents boosted, “showcased” and entrepreneurialism rises across the nation, when women entrepreneurs come in the play, and 5000-10,000 SME in the game how much exportability will all this create? Without any high level roundtables discussions with bold and open dialogue the export problems will only grow, market opportunities missed and smarter nations getting far ahead. 

Creating marathons of exportability & innovative excellence: These programs and solutions are resoundingly different and extremely novel and focused on combative, tactical formats delivered exclusively in powerful and dramatically engaging styles to owners and founders of small and midsize enterprises. Such concepts are deluxe integration of rich contents and global experiences that creates positive impact within the enterprise. Around the world, political leadership and bureaucracies need organizational capacity to fathom such revolutionary thinking; otherwise chaos will become uncontrollable.

Roundtable discussions are always a good start.

Naseem Javed is a corporate philosopher, Chairman of Expothon Worldwide; a Canadian Think tank focused on National Mobilization of Entrepreneurialism Protocols on Platform Economy and exportability solutions now gaining global attention. His latest book; Alpha Dreamers; the five billions connected who will change the world.

Continue Reading
Comments

Economy

Rebalancing Act: China’s 2022 Outlook

Published

on

Authors: Ibrahim Chowdhury, Ekaterine T. Vashakmadze and Li Yusha

After a strong rebound last year, the world economy is entering a challenging 2022. The advanced economies have recovered rapidly thanks to big stimulus packages and rapid progress with vaccination, but many developing countries continue to struggle.

The spread of new variants amid large inequalities in vaccination rates, elevated food and commodity prices, volatile asset markets, the prospect of policy tightening in the United States and other advanced economies, and continued geopolitical tensions provide a challenging backdrop for developing countries, as the World Bank’s Global Economic Prospects report published today highlights.

The global context will also weigh on China’s outlook in 2022, by dampening export performance, a key growth driver last year. Following a strong 8 percent cyclical rebound in 2021, the World Bank expects growth in China to slow to 5.1 percent in 2022, closer to its potential — the sustainable growth rate of output at full capacity.

Indeed, growth in the second half of 2021 was below this level, and so our forecast assumes a modest amount of policy loosening. Although we expect momentum to pick up, our outlook is subject to domestic in addition to global downside risks. Renewed domestic COVID-19 outbreaks, including the new Omicron variant and other highly transmittable variants, could require more broad-based and longer-lasting restrictions, leading to larger disruptions in economic activity. A severe and prolonged downturn in the real estate sector could have significant economy-wide reverberations.

In the face of these headwinds, China’s policymakers should nonetheless keep a steady hand. Our latest China Economic Update argues that the old playbook of boosting domestic demand through investment-led stimulus will merely exacerbate risks in the real estate sector and reap increasingly lower returns as China’s stock of public infrastructure approaches its saturation point.

Instead, to achieve sustained growth, China needs to stick to the challenging path of rebalancing its economy along three dimensions: first, the shift from external demand to domestic demand and from investment and industry-led growth to greater reliance on consumption and services; second, a greater role for markets and the private sector in driving innovation and the allocation of capital and talent; and third, the transition from a high to a low-carbon economy.

None of these rebalancing acts are easy. However, as the China Economic Update points out, structural reforms could help reduce the trade-offs involved in transitioning to a new path of high-quality growth.

First, fiscal reforms could aim to create a more progressive tax system while boosting social safety nets and spending on health and education. This would help lower precautionary household savings and thereby support the rebalancing toward domestic consumption, while also reducing income inequality among households.

Second, following tightening anti-monopoly provisions aimed at digital platforms, and a range of restrictions imposed on online consumer services, the authorities could consider shifting their attention to remaining barriers to market competition more broadly to spur innovation and productivity growth.

A further opening-up of the protected services sector, for example, could improve access to high-quality services and support the rebalancing toward high-value service jobs (a special focus of the World Bank report). Eliminating remaining restrictions on labor mobility by abolishing the hukou, China’s system of household registration, for all urban areas would equally support the growth of vibrant service economies in China’s largest cities.

Third, the wider use of carbon pricing, for example, through an expansion of the scope and tightening of the emissions trading system rules, as well power sector reforms to encourage the penetration and nationwide trade and dispatch of renewables, would not only generate environmental benefits but also contribute to China’s economic transformation to a more sustainable and innovation-based growth model.

In addition, a more robust corporate and bank resolution framework would contribute to mitigating moral hazards, thereby reducing the trade-offs between monetary policy easing and financial risk management. Addressing distortions in the access to credit — reflected in persistent spreads between private and State borrowers — could support the shift to more innovation-driven, private sector-led growth.

Productivity growth in China during the past four decades of reform and opening-up has been private-sector led. The scope for future productivity gains through the diffusion of modern technologies and practices among smaller private companies remains large. Realizing these gains will require a level playing field with State-owned enterprises.

While the latter have played an instrumental role during the pandemic to stabilize employment, deliver key services and, in some cases, close local government budget gaps, their ability to drive the next phase of growth is questionable given lower profits and productivity growth rates in the past.

In 2022, the authorities will face a significantly more challenging policy environment. They will need to remain vigilant and ready to recalibrate financial and monetary policies to ensure the difficulties in the real estate sector don’t spill over into broader economic distress. Recent policy loosening suggests the policymakers are well aware of these risks.

However, in aiming to keep growth on a steady path close to potential, they will need to be similarly alert to the risk of accumulating ever greater levels of corporate and local government debt. The transition to high-quality growth will require economic rebalancing toward consumption, services, and green investments. If the past is any guide to the future, the reliance on markets and private sector initiative is China’s best bet to achieve the required structural change swiftly and at minimum cost.

First published on China Daily, via World Bank

Continue Reading

Economy

The US Economic Uncertainty: Bitcoin Faces a Test of Resilience?

Published

on

Is inflation harmful? Is inflation here to stay? And are people really at a loss? These and countless other questions along the same lines dominated the first half of 2021. Many looked for alternative investments in the national bourse, while others adopted unorthodox streams. Yes, I’m talking about bitcoin. The crypto giant hit records after records since the pandemic made us question the fundamentals of our conventional economic policies. And while inflation was never far behind in registering its own mark in history, the volatility in the crypto stream was hard to deny: swiping billions of dollars in mere days in April 2021. The surge came again, however. And it will keep on coming; I have no doubt. But whether it is the end of the pandemic or the early hues of a new shade, the tumultuous relationship between traditional economic metrics and the championed cryptocurrency is about to get more interesting.

The job market is at the most confusing crossroads in recent times. The hiring rate in the US has slowed down in the past two months, with employers adding only 199,000 jobs in December. The numbers reveal that this is the second month of depressing job additions compared to an average of more than 500,000 jobs added each month throughout 2021. More concerning is that economists had predicted an estimated 400,000 jobs additions last month. Nonetheless, according to the US Bureau of Labour Statistics, the unemployment rate has ticked down to 3.9% – the first time since the pre-pandemic level of 3.5% reported in February 2020. Analytically speaking, US employment has returned to pre-pandemic levels, yet businesses are still looking for more employees. The leverage, therefore, lies with the labor: reportedly (on average) every two employees have three positions available.

The ‘Great Resignation,’ a coinage for the new phenomenon, underscores this unique leverage of job selection. Sectors with low-wage positions like retail and hospitality face a labor shortage as people are better-positioned to bargain for higher wages. Thus, while wages are rising, quitting rates are record high simultaneously. According to recent job reports, an estimated 4.5 million workers quit their jobs in November alone. Given that this data got collected before the surge of the Omicron variant, the picture is about to worsen.

While wages are rising, employment is no longer in the dumps. People are quitting but not to invest stimulus cheques. Instead, they are resigning to negotiate better-paying jobs: forcing the businesses to hike prices and fueling inflation. Thus, despite high earnings, the budget for consumption [represented by the Consumer Price Index (CPI)] is rising at a rate of 6.8% (reported in November 2021). Naturally, bitcoin investment is not likely to bloom at levels rivaling the last two years. However, a downfall is imminent if inflation persists.

The US Federal Reserve sweats caution about searing gains in prices and soaring wage figures. And it appears that the fed is weighing its options to wind up its asset purchase program and hike interest rates. In March 2020, the fed started buying $40 billion worth of Mortgage-backed securities and $80 billion worth of government bonds (T-bills). However, a 19% increase in average house prices and a four-decade-high level of inflation is more than they bargained. Thus, the fed officials have been rooting for an expedited normalization of the monetary policy: further bolstered by the job reports indicating falling unemployment and rising wages. In recent months, the fed purview has dramatically shifted from its dovish sentiments: expecting no rate hike till 2023 to taper talks alongside three rate hikes in 2022.

Bitcoin now faces a volatile passage in the forthcoming months. While the disappointing job data and Omicron concerns could nudge the ball in its favor, the chances are that a depressive phase is yet to ensue. According to crypto-analysts, the bitcoin is technically oversold i.e. mostly devoid of impulsive investors and dominated by long-term holders. Since November, the bitcoin has dropped from the record high of $69,000 by almost 40%: moving in the $40,000-$41,000 range. Analysts believe that since bitcoin acts as a proxy for liquidity, any liquidity shortage could push the market into a mass sellout. Mr. Alex Krüger, the founder of Aike Capital, a New York-based asset management firm, stated: “Crypto assets are at the furthest end of the risk curve.” He further added: “[Therefore] since they had benefited from the Fed’s “extraordinarily lax monetary policy,” it should suffice to say that they would [also] suffer as an “unexpectedly tighter” policy shifts money into safer asset classes.” In simpler terms, a loose monetary policy and a deluge of stimulus payments cushioned the meteoric rise in bitcoin valuation as a hedge against inflation. That mechanism would also plummet the market with a sudden hawkish shift.

The situation is dire for most industries. Job participation levels are still low as workers are on the sidelines either because of the Omicron concern or lack of child support. In case of a rate hike, businesses would be forced to push against the wages to accommodate affordability in consumer prices. For bitcoin, the investment would stay dormant. However, any inflationary surprises could bring about an early tightening of the policy: spelling doom for the crypto market. The market now expects the job data to worsen while inflation to rise at 7.1% through December in the US inflation data (to be reported on Wednesday). Any higher than the forecasted figure alongside uncertainty imbued by the new variant could spark a downward spiral in bitcoin – probably pushing the asset below the $25000 mark.

Continue Reading

Economy

Platform Modernisation: What the US Treasury Sanctions Review Is All About

Published

on

Image source: home.treasury.gov

The US Treasury has released an overview of its sanctions policy. It outlines key principles for making the restrictive US measures more effective. The revision of the sanctions policy was announced at the beginning of Joe Biden’s presidential term. The new review can be considered one of the results of this work. At the same time, it is difficult to find signs of qualitative changes in the US administration’s approach to sanctions in the document. Rather, it is about upgrading an existing platform.

Sanctions are understood as economic and financial restrictions that make it possible to harm the enemies of the United States, prevent or hinder their actions, and send them a clear political signal. The text reproduces the usual “behavioural” understanding of sanctions. They are viewed as a means of influencing the behaviour of foreign players whose actions threaten the security or contradict the national interests of the United States. The review also defines the institutional structure of the sanctions policy. According to the document, it includes the Treasury, the State Department, and the National Security Council. The Treasury plays the role of the leading executor of the sanctions policy, and the State Department and the NSS determine the political direction of their application, despite the fact that the State Department itself is also responsible for the implementation of a number of sanctions programmes. This line also includes the Department of Justice, which uses coercive measures against violators of the US sanctions regime.

Interestingly, the Department of Commerce is not mentioned among the institutions. The review focuses only on a specific segment of the sanctions policy that is implemented by the Treasury. However, it is the Treasury that is currently at the forefront of the application of restrictive measures. A significant part of the executive orders of the President of the United States and sanctions laws imply blocking financial sanctions in the form of an asset freeze and a ban on transactions with individuals and organisations. Decrees and laws assign the application of such measures to the Treasury in cooperation with the Department of State and the Attorney General. Therefore, the institutional link mentioned in the review reflects the spirit and letter of a significant array of US regulations concerning sanctions. The Department of Commerce and its Bureau of Industry and Security are responsible for a different segment of the sanctions policy, which does not diminish its importance. Export controls can cause a lot of trouble for individual countries and companies.

Another notable part of the review concerns possible obstacles to the effective implementation of US sanctions. These include, among other things, the efforts of the opponents of the United States to change the global financial architecture, reducing the share of the dollar in the national settlements of both opponents and some allies of the United States.

Indeed, such major powers as Russia and China have seriously considered the risks of being involved in a global American-centric financial system.

The course towards the sovereignty of national financial systems and settlements with foreign countries is largely justified by the risk of sanctions.

Russia, for example, is vigorously pursuing the development of a National Payment System, as well as a Financial Messaging System. There has been a cautious but consistent policy of reducing the share of the dollar in external settlements. China, which has much greater economic potential, is building systems of “internal and external circulation”. Even the European Union has embarked on an increase in the role of the euro, taking into account the risk of secondary sanctions from “third countries”, which are often understood between the lines as the United States.

Digital currencies and new payment technologies also pose a threat to the effectiveness of sanctions. Moreover, here the players can be both large powers and many other states and non-state structures. It is interesting that digital currencies at a certain stage may present a common challenge to the United States, Russia, China, the EU and a number of other countries. After all, they can be used not only to circumvent sanctions, but also, for example, to finance terrorism or in money laundering. However, the review does not mention such common interests.

The text does propose measures to modernise the sanctions policy. The first one is to build sanctions into the broader context of US foreign policy. Sanctions are not important in and of themselves, but as part of a broader palette of policy instruments. The second measure is to strengthen interdepartmental coordination in the application of sanctions in parallel with increased coordination of US sanctions with the actions of American allies. The third measure is a more accurate calibration of sanctions in order to avoid humanitarian damage, as well as damage to American business. The fourth measure is to improve the enforceability and clarity of the sanctions policy. Here we can talk about both the legal uncertainty of some decrees and laws, and about an adequate understanding of the sanctions programmes on the part of business. Finally, fifth is the improvement and development of the Treasury-based sanctions apparatus, including investments in technology, staff training and infrastructure.

All these measures can hardly be called new. Experts have long recommended the use of sanctions in combination with other instruments, as well as improved inter-agency coordination. The coordination of sanctions with allies has escalated due to a number of unilateral steps taken by the Trump Administration, including withdrawal from the Iranian nuclear deal or sanctions against Nord Stream 2. However, the very importance of such coordination has not been questioned in the past and has even been reflected in American legislation (Iran). The need for a clearer understanding of sanctions policy has also been long overdue. Its relevance is illustrated, among other things, by the large number of unintentional violations of the US sanctions regime by American and foreign businesses. The problem of overcompliance is also relevant, when companies refuse transactions even when they are allowed. The reason is the fear of possible coercive measures by the US authorities. Finally, improving the sanctioning apparatus is also a long-standing topic. In particular, expanding the resources of the Administration in the application of sanctions was recommended by the US Audit Office in a 2019 report.

The US Treasury review suggests that no signs of an easing are foreseen for the key targets of US sanctions. At the same time, American business and its many foreign counterparties can benefit from the modernisation of the US sanctions policy. Legal certainty can reduce excess compliance as well as help avoid associated losses.

From our partner RIAC

Continue Reading

Publications

Latest

Development5 hours ago

Naftali Bennett Highlights Tech and Trade, Bridge-Building and Climate Change

Prime Minister Naftali Bennett of Israel used his address to the Davos Agenda 2022 to highlight the role of digital...

Green Planet12 hours ago

The Meeting Point between Pandemic and Environmental

Humans in the Anthropocene Humans are born from history, on the other hand, history is born from human life. Currently,...

Africa Today13 hours ago

Lithuanians Pave Way for EU’s Legal Migration Initiatives with Sub-Saharan Africa

The European Union is facing a shortage of specialists. The reality of demographic characteristics and the labour market dictate that...

Reports15 hours ago

Nearly half of City GDP at Risk of Disruption from Nature Loss

Cities contribute 80% to global GDP – but they also account for 75% of global greenhouse gas emissions. Integrating nature-positive...

USA China Trade War USA China Trade War
Americas18 hours ago

Sino-American confrontation and the Re-binarized world

Americans performed three very different policies on the People’s Republic: From a total negation (and the Mao-time mutual annihilation assurances),...

Reports20 hours ago

Labour market recovery still ‘slow and uncertain’

As the COVID-19 pandemic grinds on and global labour markets continue to struggle, the latest International Labour Organization (ILO) report,...

South Asia22 hours ago

India’s open invitation to a nuclear Armageddon

Army chief General Manoj Mukund Naravane said that “India was not averse to the possible demilitarisation of the Siachen glacier...

Trending