Does Economic Efficiency Require Greater Inequality - Term Paper Example

 Does Economic Efficiency Require Greater Inequality? Economic efficiency in the modern age demands that the most efficient nation-states institute their models for efficacy and success in regards to global economics, however, this should be considered as a leadership initiative instead of a semantics based expression of inequality in regards to who leads the world to economic efficiency. International discernment of this type of thinking will be critical to ensuring the success rate of economic efficiency initiatives led and instituted by nations with a history of regional and global success. There are many variables in modern times that can impede the efficiency that nations seek in regards to economic efficiency. These variables require immediate and unified responses in order to prevent them from negatively affecting economic initiatives that have brought nations together in divergent regions and disciplines all over the world. Multiple comprisement factors that have facilitated division amongst nations have had a direct correlation on economic inefficiency in different regions around the world that may lead to a dramatic increase in this type of inefficiency in the future. Note the following: Many developing nations, for a host of reasons, may rapidly be falling out of favor with some of the world’s leading multinationals. That’s a worrisome prospect considering that Economic Efficiency 3 FDI flows have been the largest source of external financing for the developing nations over the past half decade. According to the World Bank, FDI flows accounted for 60% of total private flows to the developing nations over the 1995-99 period; last year, the share was nearly 70%. So if our hunch is right, and multinationals are on the verge of de-camping from a number of developing nations, many nations stand to lose a critical prop of external financing.This, in turn, could introduce a whole new and volatile dynamic to the global economy and to the world equity markets. Global Economic Forum, Global: The Bad News Bulls As you can see, any scenario that leads to a reconfiguration of global treaties and alliances has a highly probable chance of reducing economic efficiency on a region specific and global level. Diplomatic relationships and strategic continuity between nations in regards to economic initiatives will play an integral part in how efficient these economic endeavors are in the future. Reconfiguration factors pose significant threats to economic efficiency across the globe. Multi regional threat variances like nuclear proliferation, economic treaties and global terrorism are factors that have contributed heavily to the current reconfiguration of Economic Efficiency 4 economic allies and treaty initiatives. Also, it is important to note that danger and threat factors have the potential to facilitate a future where diverse regions across the globe will become more volatile over the temporal and short term periods. This has played into the regional and global strategies of formidable international powers like Russia and China who wish to close the disparity gap between themselves and United States of America in regards to global influence. This is validated by the following examples: Example One The new architecture came in the form of China’s proposed Free Trade Area with ASEAN countries, which invites each ASEAN nation separately to nego­tiate a bilateral FTA with China rather than leaving it to ASEAN as a whole to negotiate multilaterally with China. This individual negotiation strategy enabled Beijing to “divide and conquer” the ASEAN states, with the pro-China countries, such as Thai­land and Burma, moving ahead with separate deals and others like Malaysia and Vietnam going along because they feared Chinese retaliation. Dillon, Tkacik, China and ASEAN: ‘Endangered American Primacy in Southeast Asia’ China has exponentially increased its strategic options concerning its ability to dominate Economic Efficiency 5 the economic markets in Southeast Asia. The above quotes verify the fact that China seeks to reconfigure previously existing alliances and treaties that did not favor the interests of China. This reconfiguration can lead to catastrophic occurrences on a regional and global level, as the individual dealings that have become possible due to China’s efforts to expand its economic influence in the region does not ensure that precision will be guaranteed by a Chinese commitment to oversight duties over all participating member states. These duties will be necessary to prevent rapid deterioration of multiple economies due to inefficiency caused by member nation-states that are not experienced and or adept at maneuvering to market exertions on an individual basis. This is the type of worst case scenario that demands the type of oversight commitment that China has failed to make due to its potentially costly nature. It is imperative that these factors be articulated amongst the international community in order to prevent human rights atrocities and spikes in criminal actions due to poverty factors that often result from economic deficiencies. It is also important to note that the coalition formed by China suggests that they are using economic treaties to facilitate proxy war threat variances in the hopes of forcing economic and military concessions in strategic areas around the globe. The following example validates that Russia is definitely employing this strategy in their role as China’s strategic partner: Economic Efficiency 6 Example Two Alliance: The two countries’ increasing coziness is designed to earn Moscow much-needed hard currency and demonstrate its defiance of the U.S. Moscow – Russia and Iran cemented their ever-closer relationship Monday with a pair of agreements signed by Iranian President Mohammad Khatami and Russian President Vladimir V. Putin aimed a spurring more of the kind of military and economic cooperation that causes jitters in Washington. Reynolds, ‘Russia, Iran Reach Military, Economic Accords’ Example two clearly articulates the fact that Russia seeks to facilitate military gains through the synthesis and tandem force continuity of economic and military treaties and alliances. This approach brings multiple threat factors into focus simultaneously. These factors include proxy war actions of a conventional and asymmetrical nature in addition to the proliferation variables that become prevalent through Russia’s unholy alliance with a terrorist nation-state like Iran. These nations have needs (Russia/capital & Iran/technology) that have become catalysts for the technological and professional reciprocity that threatens the regional and global stability and security of countless nations all over the world. Economic Efficiency 7 Examples one and two prove that economic efficiency is often diametrically opposed to inequality. The strategic initiatives of Russia and China prove this fact. Also, These factors clearly answer the question posed by the title of this paper, as there are only a few nations capable of leading strategic initiatives geared towards maintaining and in some cases, improving economic efficiency while deterring the Chinese and Russian threats to regional and global economic efficiency. There is nothing about this strategy that suggests it leads to inequality, as this is a best case scenario where a few strong nations make the ultimate sacrifices for the good of the whole in regards to the members of the international community that are not properly prepared to facilitate economic efficiency for themselves economically. America and its allies have proven to be capable of providing the best options for economic stability that are not coerced through threat variables. This is in stark contrast to the strategy of Russia and China who would suggest that they can provide economic efficiency through initiatives that breaks up coalitions that have led to peace for decades (ASEAN) and enlists the economic assistance of terrorist nation-states like Iran who have openly challenged the right of nation-states like Israel to exist. Economic Efficiency 8 References Amoore, Louise., (2002), Globalisation Contested: An International Political Economy of Work., Manchester, UK: Manchester University Press. Barber, Benjamin R., (1995), Jihad vs. McWorld: How Globalism and Tribalism are Reshaping the World, New York: Random House. Barnet, Richard J., (1994), Global Dreams: Imperial Corporations and the New World Order, New York: Simon & Schuster. Global Economic Forum, (2001), ‘Global: The Bad News Bulls,’ [Online], Available via the Internet: http://www.morganstanley.com/GEFdata/digests/20010418-wed.html#anchor1 Heritage Foundation, (2005), ‘China and ASEAN: Endangered American Primacy in Southeast Asia, [Online], Available via the Internet: http://www.heritage.org/Research/AsiaandthePacific/bg1886.cfm Jones, Terrance., (2004), ‘American Warfare: Merging Dominant Stratagems’ Frederick, Maryland: Publish America, (2005), ‘American Warfare 2: The Counter Terror Primer’ Frederick, Maryland: Publish America Reynolds, Maura., (2001), ‘Russia, Iran Reach Military, Economic Accords,’ The Los Angeles Times, 13 Mar. Read More