We Are All Accountable To Secure Growth
Uncontrollable Challenges
The starting point towards implementing a real economic solution lies in the recognition that powerful demographic trends are tearing at the heart of our global economy, causing the economic uncertainty and conflict that we are witnessing in the world today.
These “Uncontrollable Challenges” now command a new economic order and provide the stimulus for the technology industry to deliver what the real economy participants demand, thereby expanding the global economy and creating sustainable economic growth for all.
The world is currently divided into 3 categories:
- High Income Countries (HIC)
- Mid Income Countries (MIC)
- Low Income Countries (LIC)
The HIC constituted 22% of the world population 35 years ago. Today, that number has drastically decreased to 15%. In contrast, the MIC and LIC now comprise 85% of the world’s population and are growing rapidly.
In the HIC, birth rates are low; the population is aging yet salaries remain high. This is an efficient and productive community challenged with low market demand.
In the MIC/LIC, birth rates are high, population is young and strong, but salaries are less than 20% of those in the HIC. This is a highly populated community challenged with low buying power.
The HIC cannot clone people, and cannot open the borders wider. The only and the strongest option for them is to build the buying power of the MIC/LIC, thus creating a vast new market for their products and services.
The only and the strongest option for the MIC/LIC is to commit to business excellence, thus achieving efficient and transparent operations through the adoption of new digital tools, thereby attracting national and international investments, and resulting in the increased buying power for the MIC/LIC.
DEMOGRAPHICS & ECONOMIC FACTS
HIGH INCOME countries
- Population is aging
- Birth rates are low
- High wages
- Production surplus
MID & LOW INCOME countries
- Population is young
- Birth rates are high
- Low wages
- Low buying power
- Large population
STRENGTHS & WEAKNESSES
| Strengths
| Weaknesses
|
HIGH INCOME
| • Enormous buying power • Vast experience • Well established service Industry
| • Low birth rate • High rate of aging • Excess capacity
|
MID INCOME
| • High birth rate • Low rate of aging • Young, low-cost labor force • Huge market potential
| • Medium buying power • Medium experience • Moderate infrastructure
|
LOW INCOME
| • High birth rate • Low rate of aging • Young, low-cost labor force • Huge market potential
| • Very limited experience • Lack of buying power • Weak experience • Lack of physical infrastructure |
EMPOWERING THE DIGITAL ECONOMY
The HIC cannot clone people, and cannot open the borders wider. The only and the strongest option for them is to build the buying power of the MIC/LIC, thus creating a vast new market for their products and services.
The only and the strongest option for the MIC/LIC is to commit to business excellence, thus achieving efficient and transparent operations through the adoption of new digital tools, thereby attracting national and international investments, and resulting in the increased buying power for the MIC/LIC.
Based on the recently concluded G20 Nations Case Study for Trade and Shipment Efficiency Assessment, 90.4% of the real economy participants do not have integrated systems and 94.5% of them demand new digital tools to increase their performance at the ground level.
The technology industry must come together and commit to deliver to the world these digital tools and build the buying power of the MIC/LIC, wherein, for every 1% increase in their buying power, the world’s GDP can increase around USD 400 billion.
The Digital Economy is the tool to connect our economies and to de-risk business transactions between nations. In this way, we can rebalance the world economy, resulting in enlarging the global economic “pie” instead of competing on the same one today.
This global demand for sustainable economic growth represents a formidable positive force for the E-Hub of the World whose unique structure, organization and setup will allow it to provide the required digital tools with continuous access at no cost to the end user.
“The cost of technology should not hinder the economic growth of the world”