Friday, September 20, 2013

World Economy - 2012 onwards

The world economy is currently undergoing a radical change, possibly for the better. The traditional ways of trade, industry and commerce are changing. Privatization is taking place in certain key sectors. Governments are trying to concentrate on more important areas like defence, disaster management, social and cultural uplifting etc. However, the changes themselves are not taking place very fast. These are undergoing at a moderate pace.

Art and culture are getting industrialized. The world is undergoing a thorough cultural change, and when art and culture changes, everything else changes.  Now we have the notion that a poet or a dramatist is not only born, he can be groomed up into also; he can be made.

Technological changes are also taking place at a fast pace, though certain technological advancements are being assumed to bring some potential adverse effects on life and living.

The small artisans who were catering the local, or at the most the regional market are finding markets at far off places. Transport and communication has improved dramatically. Tele-communication is still advancing by leaps and bounds making the world a very closely-knit network. It has now become very easy to showcase ones' products at distant markets.

The small industries, which were, until the turn of this century, operating at a very small scale with moderate profit margins are attracting big investors. The small scale manufacturers are getting orders, which are thousand times bigger than what is was previously. Big players are entering into micro cottage industry sectors, which never had dreamt of entering the international market.

The basic and heavy industries are operating at a low ebb. There is comparatively less demand for steel and chemicals. Automobile industry will sooner or later get saturated. So unless new sectors are boosted up creating more income for the moderate and relatively weaker sections, the basic and heavy industries will continue to suffer. Real estate business will fail to get revived. But a real estate boom will no longer possibly be looked upon with great optimism by the experts. 

The whole money multiplier cycle needs to be energized with potentially prospective endeavours so that the whole economy gets charged up.

Investors are on the look out for new, prospective sectors, which promises a steady and secured flow of income.

Energy charges are rising fast. Need for renewable, cheaper sources of energy are necessary. Unless energy is made cheap, it is difficult to control cost-push inflation in a situation where demand-pull inflation is already having its daily share everywhere. Changes in lifestyle for less consumption, general awareness about the pollution of nature and its drastic changes, conservation of natural resources and more dependence on nature by curtailing artificial means of comforts and luxuries are needed the most. A mass realization about balancing the world economy with its natural resources will surely go a long way to remove the problems the world is facing currently and will ensure a much better tomorrow.

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