Theoretical and Applied Economics
No. 9 / 2013 (586)
Underdevelopment's gravitation
As it is shown by the global statistics, underdevelopment has a stronger gravitational pull than development. There is no other explanation for the constantly high ratio of the population finding themselves bellow the line of income standards and quality of life accepted as normal by the civilized world. The realm of poverty absorbs, as if by force of gravity, the most part of the planet's inhabitants within its sphere of influence.
We have no genetic explanation, while geography is also unconvincing in attempting an answer. History perpetuates myths. Anthropology puts forth the founding folklore. Sociology doesn't go beyond measuring the surface.
Against general belief, the state of the world experiences shuffles in the long term whose causal explanation is not all too clear. The rule of change proves confusing within the framework of rationality, while its ethical aspect marginally structures behaviours. In consternation, fleeing from the norms seems to have been the winner throughout history. Breaking ranks appears as an option, which when emotionally accepted for bearing the risk of failure in progressive contexts, often leads to the prize of an innovative horizon.
Operations regulated by the global framework do not lead to the same result that everyone expects. Addition and multiplication are the methods of calculation which make sense for the conservation of the power obtained by subtracting and dividing global wealth. Cynicism is intrinsic to the system of calculation. People either use, or are being used by the system. Except that some can create the system, with the others being naturally a part of it.
The gravitational law of development operates for large masses or for unleashed energies. The understanding of the positioning in the development's universe is proven to be a calculation problem in which only the rule of will functions. The explanation is unbeatable in terms of order. From a social point of view the configuration of the world is unequal, while being utopian at the individual level, with freewill being irrelevant to the law of large numbers.
What is certain is that the energy necessary to escape the gravitational pull of underdevelopment and to enter an evolutional trajectory dependent on the gravitational pull of development is unintelligible in economic terms. Attempting to judge reality within the framework of political perspectives will only lead to the confusion of correctitude. Alterity in policy does not appear to strive toward breaking the precepts of mainstream theory.
The group of the seven developed nations is the expression of the state of segregation in the universe of wealth. Beyond the materiality represented by the development of G7 there's the extended space which is specific to dark matter and energy, in economic terms the Physics suggestion having the consistency of poverty. We could say as such that dark matter and energy are being deduced from the effects of the emergence of the countries which, by joining G7, make up G20. Of course, the perception of the G13 differential is the critical interface of what is the much more expansive G189 to the solidity of the developed nations group. The Scruton-Fergusonian expression of the west and the rest, which does not completely define the G7/G189 ratio, exhibits the segregationist ethos of wealth and poverty in the structure of the world.
In geopolitical terms the mainstream theory proves to be the reverse of its logical suggestions: the perverted vehicle of the status quo conservation of societal structures. The reality is that the world remains stratified, with development laid on the over enlarged pedestal of underdevelopment. The Smithian idealism of the wealth of nations did not displace - in a relativistic statistical way at least - the all-encompassing reality of the wealth and poverty of nations, to use the Landesian word of warning.
Built today on the neoliberal axioms of the Washington Consensus, the leading vision generates development parsimoniously. In time development occurred only where there had been non-liberal behaviours and decisions. In the area where underdevelopment needs to be overcome, the policies built on the main theory generate slowdown effects in reaching the distinct development milestones.
The unexpected effects of the economic crisis reveal the fact that the natural interactions in the human actional field trigger a virus escaped from the laboratories of ideologies centred on the power of wealth. The constitutive values of the modern world are thus redefined in terms of prevalence, even though it's rather a case of dependency on a vertical of geopolitical arrangements. Justice is no longer fulfilled as freedom, because progress and tolerance have meaning only for power, as an equivalent of wealth. With governance having become corporate, efficiency interrupts the supply of equity.
Conceiving a development strategy in the context of neoliberal constraints is not a theme of Economics, regardless of the amount of inspiration and dedication put into its resolution. The present structure of the world turns development into a geopolitical problem of the global order. Development is today the number one political issue whose solving must be achieved while acknowledging the closest of encounters with the apocalypse.
In this context, the reality of the deepening disparities between the developed and the developing nations which have adopted the vision of the Washington Consensus is shown to be a source for the collapse of peaceful coexistence.
Contents
- The impact of accounting information on managerial
decisions – Empirical study conducted in the hospitality
industry entities in Romania
Sorin BRICIU
Carmen SCORŢE
Ioana MEŞTER
- Exchange rate volatility effects on export
competitiveness. Romanian Case
Anca GHERMAN
George ŞTEFAN
Adriana FILIP
- Do investors consider composite leading indicators?
Time series evidence from emerging countries
Mert TOPCU
Ulas UNLU
- Can Member States
unlock the national competitiveness
through export market share effects?
Angela Cristina POPA
Călin CANTEMIR
- Innovation – a national priority, supported
by the regional development agencies
Elena ENACHE
Cristian MOROZAN
- Pros and cons of using derivatives
Ramona GOGONCEA
Ioana-Diana PAUN
- Harmonization process in defining
small and medium-sized enterprises.
Arguments for a quantitative definition
versus a qualitative one
Maria-Mădălina BUCULESCU (COSTICĂ)
- Financial stability between liberalization
and regulation
Cristian IONESCU