Tuesday 25 February 2014

Pursuit on People and Planet, will push the Prosperity Index




 
 









 












It has been over 5 years since the great financial crisis had hit the global causing enormous damage and economies have battled through to survive by way of printing money and deficit financing. However if you look back there is nothing much to pride about as we are still fighting between expanding debt and collapsing growth. 

"A fundamental characteristic of any economy, as Economist Minsky wrote in 1974, "is that the financial system swings between robustness and fragility and these swings are an integral part of the process that generates business cycles."

However a business-cycle recession can respond to monetary and fiscal policy in a more or less normal fashion; but if you are at the event horizon of a collapsing debt black hole, monetary and fiscal policy will no longer work the way they have in the past, or in a manner that the models would predict.

Every individual country is working hard to find their own path to get away from the trap of expanding debt and contracting growth. The challenge lies in finding a model beyond the Keynesian and look for normal business growth which can help to service the accumulated debt and move towards prosperity. 

How do you reconcile the competing forces of insufficient growth and too much debt?

Keynesian theory prescribed deficit spending during times of business recessions and the accumulation of surpluses during good times, in order to be able to pay down debts that would inevitably accrue down the road. The problem is that the model developed by Keynesian theory begins to break down as we near the event horizon of a black hole of debt.

Inorganic models of growth are not going to help the cause for recovery as we see central bankers and governments pursuing unconventional methods to arrest the slide, but struck between the devil and the deep sea. 

Slithering through with organic growth can only bring stability and sustainability in the longer run and make economies sail through rough phases with lesser impact. The organic growth of a country can come from natural circumstances like energy resources or an equable climate or land conducive to agricultural production or it can come from developing an educated populace. There are many sources of potential organic growth: energy, tourism, technology, manufacturing, agriculture, trade, banking, etc

Looking through the future we can spot some of the innovations which can change rapidly the way the business will be done. Bio technology, 3D printing, Circular Economy, Mobile technology, Digitization and Robotics are some of the new found revolutions which can alter the way the global economies will do the business in the future. These impact innovations can change the lifestyle of the people and reorganize the global equilibrium. 

The demographic profile will be a disadvantage to the G7 countries and they may use technology and robotics effectively to increase output in the absence of productive manpower and to service the aging population. On the other hand countries with favorable demographics like India and South Africa needs to balance between technology and manpower and increase output to sustain growth and prosperity. 

Circular economic model can also be a major impact revolution by bringing down output cost substantially through regeneration with a lower turnaround time.
We have some game changing innovations which can help countries to achieve organic growth and it’s for the respective economies to break out from conventional policies and invest on these new found innovations.

We have been insistingly our customers to be proactive on conserving natural resources and we along with one of our client have come out with a green initiative package called “Planet Affinity”.

 Here we have bundled products which can provide:

·         Water Solutions through Ozone Technology
·         Energy Solutions through Solar
·         Lighting Solutions through LED
·         Clean Solutions through Garbage Management at Source Point
·         Health Solutions through Organic Home Farming
·         Safety Solutions through Home Security

Planet Affinity will promote responsiveness among people to contribute towards green environment and preserving the planet for the future generation. While there are challenges on the commercialization of the concept,we are quiet confident of making the stake holders share the extra burden on the incremental capital cost and get their pay back in the longer run through lower revenue expenditure and of course the emotional value that it can bring in terms of preserving the natural wealth for the future generations will far over-weigh the financial burden.
Organizations in pursuit of new ideas can only bring profitable business models like for example

If buildings can generate and store their own power and contract with third parties to
install and manage everything with no upfront investment, that can be a major game changing innovation which can save the nature to a great extend

Parking, lighting , electric vehicle charging stations — are attracting scores of companies, from global superpowers to disruptive start-ups

The environmental impacts of business – air pollution, biodiversity loss, ecosystem degradation and water scarcity – are threatening the ability of our finite stock of natural capital to deliver Sustainable Growth. The challenge for sustainable business is to identify growth models that result in reduced environmental impact

Excellence has no finish line and breaking the boundaries on delivering value to customer is the core for sustainability. 

The next level of value proposition will come through individual customization and technology will support the cause for producing lower volume at lower cost model. 

Let the purpose and profit work  together to bring peace to people......

1 comment:

  1. Pursuit on People and Planet will Push the Prosperity Index

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