World Economic Forum – 2012 Davos, Switzerland

January 28, 2012

By Padmini Arhant

Warm Greetings to world leaders in politics, economics, social, environment and humanitarian organizations attending the world economic forum in Davos, Switzerland.

The global economy is frail with complexities demanding solutions in cognizance of specific and general needs for revival.

Economic meltdown could be attributed to myriad sources and identifying the root causes would enable policy restructuring to stimulate and sustain growth in the interim and beyond.

Capitalism is by far the viable economic system provided the free market functionality confined to building economy without intervention in politics.

While Capitalism governance triumphs in weakening legislations aimed at consumer protection, fair pricing for affordability as well as balanced trade practices in national and international domain.

Government regulations for this purpose are met with resistance as intrusion in private sector.

Free market economy with free pass on all economic activities without checks and balances led the economy to a near free fall in recent history.

The current economy on the precipice due to flagrant dismissal of reforms combined with institutional failures to deliver the required outcome.

Economic model promoting globalization with two monetary authorities – The World Bank and International Monetary Fund (IMF) facilitated the collapse of modern economy in the developing and developed region.

Modern economy under prudent economic i.e. fiscal, trade and monetary policy had better prospects to vitalize agricultural, service and industrialized economies through self-sustenance and international trade.

World Bank and IMF set up to gain forceful entry into economies under globalization auspice derailed progress denying independent strategies to address problems confronting individual economy.

The mandatory membership with World Bank and IMF lending enforced untenable terms and conditions on borrowers subjugating nations for unlimited access to resources including the heads of the state appointment across the globe.

World Bank and IMF debtors share similar economic woes and struggle to amortize debts in a systemic abusive deal involving collaterals directly undermining sovereignty and binding generations with liability.

From European contagion to Sub-Saharan Africa existence dilemma  – World Bank and IMF together play a major role in exacerbating financial crisis and implementing austerity measure to public detriment – bringing mainstream to main street protest.

World Bank interference in environment policy to control the governments pledged $100 billion towards carbon emission reduction is vehemently opposed given the organization’s trajectory in funds mismanagement.

Capitalism would thrive in the absence of shadow government split into three categories:

They are banking, transnational corporations and defense industry.

Banking industry speculative trade and selective justice against speculators sparing political campaign donors viz. prominent investment banks or equity management firms responsible for U.S. housing market slump depriving millions ownership and shelter along with euro zone calamity expose the network between politics, judiciary and economics.

Transnational Corporations – infringement upon overseas markets threatens disadvantaged demography livelihood through governmental pressure endangering small medium enterprise and entrepreneurships at lower economic strata.

Mega Corporation stakes in developing and emerging economies is a gateway to monopoly.

Likewise, in national turf – the big corporations bidding on merger and acquisitions suppress the free market elements to emerge and compete effectively against powerful establishments.

Energy Sector – Regarded the behemoth in containing alternative energy output using solar, wind and hydro projects.

They are instrumental in waging wars to maintain vested interests in oil and natural gas enriched territories around the world.

Wars also generate energy demand against inadequate supply boosting oil prices at peak.

Defense Industry – wars are lucrative with ammunition proliferation and investments in innovative stockpiles among warring factions confirming profit – the motivational factor from economic standpoint and the other dimension being global dominance to retain status quo.

Energy and Defense industries are influential forces in congressional and Presidential election.

United States Supreme Court decision on Citizens United is carte blanche to Corporations undermining democratic electoral process.

Unless the outcome reversed, the trend jeopardizes election results legitimacy and credibility.

Politics and economics fusion exceeding normal boundaries evidently is not the government of the people, by the people and for the people.

Another extenuating component of finance industry with pervasive impact on global society is tax havens and unaccounted funds in overseas bank accounts.

Swiss banks – USB and Credit Suisse Societe Generale – The leading purveyors of secret bank accounts accepting funds from illicit means essentially legalizing money laundering is crippling economies with Vienna convention granting impunity to offenders predominantly representing the political and privileged class in the society.

Swiss government neutral position and opposition to warfare is severely compromised in the approval of banking operation in semblance with the former Bank of Credit and Commerce International engaged in illegal assets holdings.

International objection to BCCI violation of banking law precipitated closure ending financial impropriety.

Banks in Switzerland, Singapore, Cayman and Cook Islands…transferring offshore accounts to onshore is imperative to alleviate burden on taxpayers in the developing and developed economy.

Credit Suisse Societe Generale compliance in this regard with United States is praiseworthy and applying same standards to other nations would eliminate preferential treatment perception.

Switzerland as a democratic society could set an example in returning national wealth to all nations deprived of revenue in income taxes or transactions pertaining to national or state contracts.

Market economy in republic governed democracy would comprise relevant regulations to safeguard customer rights, competitiveness for price and quality, business incentives to secure guaranteed returns and job preservation, logical tax reform with unaccounted money recovery,

Corporations leading economy rather than national and international politics would delineate economic leaderships in monitoring growth with necessary policy adjustments for better results.

Prohibiting corporations and corporate donations in election campaigns is critical for democracy to prevail.

Public sector streamlining bureaucracy and remaining focused on civil society development would improve efficiency.

Politics and economics on parallel mode refining methods, supplementing ideas and complementing productivity would enhance performance without hindrance in defined goals.

Capitalism in the present format is heavily invested in political power neglecting ethics and economy.

Profiteering on economic and military warfare is proved counterproductive.

Changing course to benefit humanity at large is the rational approach to resolving economic crisis.

Market economy guided by pragmatism and ingenuity with moral code as the catalyst is the promising future.

On that optimistic note,

Wishing success to world economic forum 2012 in Davos, Switzerland!

Peace to all!

Thank you.

Padmini Arhant


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