Convergence and Quality of Life

Dr. Michael Berry, in his morning notes today writes about an issue that has come to my attention in a different way.

He writes:

Today there are two geopolitical / sociological blocs in the world. The Cold War may be over but the Resource Wars are just being joined. These two blocks are not geographically connected but instead are connected by a history their per capita quality of life. They are the West, comprised of Europe, North America, Japan and Korea (which we shall call Advanced) and the Emerging World (which we shall call Emergica).

It has come to my attention that an economic group beyond the BRICS has begun to form, Primarily containing Russian and India with technical support from UK and others in what Dr. Berry calls ‘Advanced’ nations. This block is forming mainly due to financial issues driven by the what must be now viewed as the imminent collapse of the US dollar.

In 1995 Vito Tanzi wrote:

Corruption … is far more widespread and universal than previously thought. Evidence of it is everywhere, in developing countries and, with growing frequency, in industrial countries … Prominent political figures, including presidents of countries and ministers, have been accused of corruption … In a way this represents a privatization of the state in which its power is not shifted to the market, as privatization normally implies, but to government officials and bureaucrats.

These bureaucrats are the ones that are making deals and breaking deals that are pushing the alternative agendas that Russia, China, India and the ‘Emergica’ that Dr. Berry writes are seeking new solutions.

The events of Egypt and Libya and the total difference with which they are being handled by NATO and the UN are clear examples of how this ‘privatization’ is going on and being managed.

Further from Vito Tanzi in 1998:

Corruption reduces public revenue and increases public spending. It thus
contributes to larger fiscal deficits, making it more difficult for the government
to run a sound fiscal policy.

It is this very lack of ‘sound fiscal policy’ that is the root cause of much of the pain felt in the world right now from the fallout of the financial crisis.

The rot has set in and because of its clear detection by many world governments they are taking steps to ensure that their economic futures are not determined by ‘Advanced’ leaders as Tanzi sees them…

I would love to read your views of these issues, please do comment.

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