I apologize for posting much these last weeks. I have been quite busy reading journals on Global Value Chains, Deviant Capitalism, Black Market Trade and theories on Global Political Economy. While this has driven me nuts… it has also made me pay attention to the field of Business History.
Business history is not the history of Capitalism and it is also not the history of entrepreneurship. The research in this field is mostly controlled by an European institutionalist approach. And in the latest decades, it has gained more insights from economic and business studies that are highly afflicted by neo-marxist approaches of the 20th Century. So, if you are interested in learning about this particular area of research here is the info for a good article on the topic that may get you also interested, and provide you with further bibliography.
Twentieth Century Flick: Business History in the Age of Extremes
Priemel, Kim Christian (2012)
Journal of Contemporary History vol. 47 (4) p. 754-772
.Full Text (PDF)
Globalization of knowledge is what I define as the process by which actors conceptualize and interconnect ideas in a global scale. In the past, the globalization of knowledge required initially an extensive research in books, magazines and other print resources of ideas that could be connected in order to create a larger image of the field being studied. Later, these ideas were linked and related one to another in the creation of conceptual maps that looked very similar to the nets of spiders in whiteboards. Later, these ideas were interconnected and global conclusions, hypothesis and thesis arised from the evaluation of information.
However, with the advent of technology these complicated and extenuating research process have been shortened and made much more efficient. Now, these interconnections and global images of our research are almost done automatically by computers.
The following video has a great example on how the past and present of the Globalization of Knowledge looked like. I hope you will enjoy watching it as much as I did,
This are great news for those of you interested in reading and learning more of the ideas that enabled a revolutionary development of new understandings on Economics and Human Action.
“Murray Rothbard had long dreamed of an Austrian academic journal. In 1986, his dream came true. The Mises Institute published it, and it changed everything. Now they can be conveniently read on your digital device!
The individual issues have been nearly impossible to find, until now. Today you can own the entire set, learn from the pioneering articles that Murray and his co-editors saw as crucial, and see what gave the modern Austrian movement its scholarly momentum.”
GET THEM HERE
By 2011 the BRIC economies had some of the highest rates of income inequality adjusted to the Human Development Index among developing nations. At the same time, the BRIC countries had consistently had the highest GNP growth versus the previous 10 years among developing nations. How is it that there is not a parallel growth of the Human Development of its citizens? The answer and one of the biggest challenges for the BRIC countries is the fact that a large amount of the GNP is distributed among small elites that control their market economies.
Economists and investors such as O’Neill, Krugman and others largely emphasize the expected growth of the BRIC economies as indicators of where to invest their money. Unfortunately, they have not paid the same interest to what many other economists consider important: the human development of the people. Fortunately, there are still some economists who since the decade of 1970 paid a lot of attention to the issues of freedom and equality. Economists leaded by Milton Friedman, the Economics Nobel Prize of 1976, argued that economic policies should be focused in the freedom of its citizens as a primary value. To them, stressing equality per se could lead to economic inefficiency as well as it would put in risk Freedom itself. However, the same economist argued that it was necessary for developing economies that the government took a central role in poverty alleviation in order to keep the pace with the economic growth of its economies. Unfortunately, this poverty alleviation is not being done in the BRIC countries and the economic difference between the poorest and the richest continues to grow. Since the 60s, a large group of economists emphasized the negative effects of not paying attention to a free and equal development in emerging markets; economists like Friedman and Hayek wrote a lot in this regard and even recently Elinor Ostrom’s ideas, who won the Nobel Prize in Economics in 2009, are still not listened by those who have forgotten the importance of good governance economic policies.
India is the country in which this income inequality versus human development is more pronounced. Currently, India occupies the position #93 with an IHDI of 0.392 and the country has descended in the rank many positions since the last decade. Inequality in the earnings among Indians has doubled over the last two decades, making it one of the worst performers among developing economies. Why? This is again the result of the failed attempts by the Indian government to combat corruption, bad administration and under-payments and also of the unawareness of foreign investors.
The fact that foreign investors have no interest in securing the welfare of the Indian people is a problem. To them, the investment opportunities of this specific BRIC country are of value until they find a better economy to move their money to. However, the real stakeholders are not the foreign investors but the Indian Government and its groups of interest who should aim to secure the welfare of all of its citizens now that they have a chance. While the growth of this economies will continue the effect it will have in such unequal societies will result in some of the worst rates of poverty and hunger ever seen in history. By 2025 India will be the most populous country in the world but also, it will have 268 million people (20.3%) living still with less than US$1.25 a day as reported by economists in the World Bank. The Indian government should go aligned with the current trade liberalization in order to support higher productivity in the private sector and to exploit its comparative advantage of having a labor-intensive industry to foster the production of goods and services.
National Geographic is running a wonderful website on Globalization, the international exchange of goods, services, cultures, ideas, has brought increased wealth for many and transformed forever the way humans interact. But while its roots may be in commerce, globalization‘s effects can be very personal.
Advances in communication and transportation have created a rich, unprecedented mixing of cultures throughout the world. But there is a drawback. As international travel, economic migration, and the global spread of music, films, and literature bring more people than ever into intimate contact, human diversity is vanishing.
A shared language is perhaps the most profound expression of group identity and a critical tool for passing cultural knowledge from one generation to the next. But globalization is about integration. Whether by choice, by circumstance, or under duress, thousands of cultural and linguistic traditions are disappearing as their new generations adopt dominant national and global languages.
Workers, from wealthy consultants to unskilled laborers, are also on the move as never before. Some migrants are encouraged by host countries or regional agreements; others avoid official avenues and often live a shadowy, parallel existence once they arrive. Immigration is high, but it is economic migrants—seeking work more than a new homeland—who define our age.
Read more from them here: EarthPulse by National Geographic
A new blog has been born for those of you interested in learning and discussing the principles of Capitalism. The title of the blog is “Laissez Faire: The Uncompromised Case for Capitalism” and is going to be written by Don Watkins and Yaron Brook from the Ayn Rand Institute. The blog aims to discuss the philosophic ideas that shape economic policy.
I invite you start following it and to start commenting their articles. Indeed, this is great news for the spread of Objectivism, the Philosophy of Ayn Rand!
Social Media of Laissez Faire