Internal Strengthening Revisited: Economic Growth vs The Forever War

Economies worldwide are working to recover from the effects of Covid. Beyond removing barriers to individual freedoms many have seen the need to revitalize their flagging commercial trade. Even as schemes of finance and programs to create solid economic change are being formulated, it is aggravated by the continual capitulation of the Western world, through the instigation and creation of yet another forever war.

A forever war that seeks to cut off most of the world from its most trusted trade partner in Eastern Europe. Another forever war that seeks to bifricate the world along ideological lines that are only shared among a few Western states. In fact, the curious history of the West with Eastern Europe and the Balkans has been one of mistrust and continual flagellation–even for those states that have joined the European Union.

And while the world does not appreciate being pulled into another Forever War, (even if only ideologically); under mountains of sanctions, they are forced to endure the predictable routine of accusation coupled with divide and rule tactics. The truth is that The constant destabilization of the global economy is precipitated by the usual suspects –even as the world seeks to battle back from a pandemic.

But retardation of the economic process comes in many ways beyond the grist of socioeconomic trolls. Many developing nations continually lose their competitive edge through local government agencies that do not act effectively or efficiently for the growth of industries and The local economy. The prevalence of bribery in local registration and regulation offices in the global south makes its local industries highly uncompetitive, unstable and inefficient.

Nations whose industries dominate the globe, often have the distinction of allowing its industries to grow and obtain the necessary paperwork, registrations and access to opportunity that it needs to be successful. Without knowing it, many nations have agents of destabilization within their own agencies slowing the growth and progress of the entire nation. It is not without cause that many developing economies are stuck–always still developing.

The official requiring bribes in a registry office may be standing in the way of an enterprise that could rocket the nation into an agribusiness powerhouse and the agent refusing to approve paperwork because a company president is not from her tribe may be hindering the very company that has the capacity to transform the city into a multibillion dollar international tech hub.

The truth is that it is not always clear which businesses will become the winners. And when local officials sit on paperwork and approvals they act to destroy and deflate their own economy. Even as outside actors seek to destabilize sovereign nations, internal actors do the same. According to data from the IMF, nations with perceived lower levels of corruption have 4 percent higher revenues than those that do not. Corruption of this level robs local government of tax revenues and the possibility to improve infrastructure and access, because business is hindered by shortsighted actors seeking small money or beset by petty differences, willing to cut millions if not billions from their own economy.

We are left to ask if certain nations, now in cue, would need to visit the IMF or solicit predatory Western investment management corporations for gigantic loans or forgiveness, if they were able to become competitive in the world market? According to Financial Sector Deepening Africa, a UK, Nairobi-based NGO, short-term government bonds financed by these institutions make up nearly 20 percent of national GDP in African states. Would nations be facing scarcity in certain areas if their local systems worked consistently to help local business and see that they grew beyond local needs, to reach the world? Without consistent national production and with the proliferation of these Vulture Funds, which earn an ROI that is 3-20 times their investment on Soveriegn debt, according to the Africa Development Bank; many nations like Sri Lanka, Ghana and Pakistan are being strangulated by the West’s inflation.

In the absence of consistent commercial production and the levity to scale and increase capacity for companies, nations become forever borrowers. A 1 billion Sri Lankan sovereign debt bond once maturing at 74 on the dollar in June now matures at 39 cents, according to a report by Reuters. According to a report by Monthly Review Online, 81 percent of Sri Lanka’s foreign debt was owned by U.S. and European Financial Institutions. When developing economies acquire fiat debt from companies managing 10-15 trillion dollars in fiat, they become slaves of the system. And this does not bode well in a world system that has largely been under the influence of actors that launch forever war scenarios and periodic system destabilizations to maintain advantage.

While we can laud the accomplishments of Dangote, Safaricom and Infosys, these enterprises are alone among a towering multinational elite which gives them minority status and restricts even their opportunities for growth and diversification. In short, they can be pushed around without the support of south-south corporations to allow for greater market share and revenue. Many are big fish in their local ponds, but minnows in the international ocean.

While many big players are revamping international monetary and trade mechanisms and reconsidering international business alliances, the corollary to this is that developing nations and ambitious states must also scour their agencies for agents of retardation and business destabilization.

The future of these states depend on their competency to advance business actors on the local and national level. The business ecosystem can provide a nations greatest support mechanism. Empowered, financially secure citizens serve as the base for economic growth and national stability.

Growth requires all stakeholders working vigorously together to create a stable, lucrative domestic product. Regional alliances are critical to enhance trade and forsake antiquated squabbles over land, identity and proximity to international wealth. Its time to move from proximity, to ownership. It’s time the global south became its own engine of growth and engaged with viable partners that further its agenda.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.