(An extract from Foreign Direct Investment 2020)
Historical Economist will point out many successes and failures which proves that diversification is more about tax revenue collection than increasing local opportunities and jobs. As the world became a more connected place, through electronic technological advances in intelligence, communication and transportation, worldwide competition destroyed mid-central opportunities and jobs. Today, economic drivers consolidate, in locations of the finish product, essential raw material inputs and employ, global communication and transportation strategies, in its distribution channels. The future must, therefore, adapt to the movement of highly educated, skilled and talented people, following the sustainable development, growth opportunities and their dependable jobs.
Historical Economist will point out many successes and failures which proves that diversification is more about tax revenue collection than increasing local opportunities and jobs. As the world became a more connected place, through electronic technological advances in intelligence, communication and transportation, worldwide competition destroyed mid-central opportunities and jobs. Today, economic drivers consolidate, in locations of the finish product, essential raw material inputs and employ, global communication and transportation strategies, in its distribution channels. The future must, therefore, adapt to the movement of highly educated, skilled and talented people, following the sustainable development, growth opportunities and their dependable jobs.
A Gold Rush and other short lived get rich
schemes, was powered by people’s recognition of a trade-able commodity, with
fluctuating values based on supply and demand. Pork skins and other consumables
were once in that class, until its raring became standard and markets were
flooded, driving prices too low to be a long-term investment. Mining towns and
extractive industries grew economically as the raw material extracted value was
taxed to fund development services; security, healthcare, education and
infrastructure. However, many such communities failed because the tax revenue
from natural resources, dried up, with no effort to create more taxpaying
opportunities and jobs.
Much was made of the industrial revolution,
rather than the ideas, invention and innovation, as production ramped up and
prices allowed a larger middle class. Advances in the electronic technological
field created the circuit board, which also fueled computer hardware and
mathematical software, and the internet connecting the world. Such a cheap
global communication tool, widely available, allowed consumers to talk directly
to manufacturers, firing intermediaries, the local retailer and middleman.
Intelligence, on available raw materials, process products and transportation
routes, became easy to find, shorting the traditional distribution channel and
further reducing prices.
Natural resources, within a nation’s economic
territory, currently drives development and investment in downstream
operations, for example; Oil & Gas discovery, would drive nearby Refinery
and Chemical manufacturing. This and other downstream opportunities and jobs
will benefit the nation’s tax collection, depending on the raw material
international price and product availability. Hence, a raw material producing
nation already is dependent on global competitive forces, needing its
communication and transportation strategies to sell its products. Diversifying
into other revenue streams will, therefore, require the discovery of more
natural occurring raw materials, such as industries and sectors driven by
globally competitive ideas from the nation’s enterprising people.
Government policies must and will be modified
to diversify its tax revenue, to fund, deliver wellness and healthcare,
training and education, and vital social services, to its population. Getting
its people ready to compete globally, for the best opportunities and jobs, will
be at a cost which must be continuously funded. Tracking, monitoring and taxing
this service sector in a foreign country, will require an honor system, a
strong dependence on patriotism, and Government to Government negotiated
contracts. Clearly benefiting the nation’s stay-at-home productive workers
(police, nurses, teaches and maintenance operators), with free quality
security, healthcare, education and social services throughout life.
Rationale
T.A.J & Associates Company Limited uses this occasion to comment on topics that have been covered, both academically and by the mainstream media, to add its opinion and point out investment opportunity, not to invoke any social action.
