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Everything that happens in the world these days because of economic and political decisions. Money and wealth runs the world and those that control the most wealth have the strongest say in the direction of the world.
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With the advent of multi-nation global corporations this means the top ten most powerful economic nations and the top 1000 largest global corporations who control over 40% of the global wealth of the human race.
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The reality of economics is that developed countries are flat out trying to balance bloating budgets. The highly developed economies of western nations have directed to the developing of increasing consumerism and consumption. The United States and Europe are excellent examples of populations where the expensive tastes in the motor vehicle, energy consumption, electronics and property has resulted in massive increases in import costs and led to massive budget defecits and current account deficits. Simply, the developed world is spending beyond its means.
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In contrast, the developing world has been bleeding from corruption and increasing in massive debt through consistent government budget defecits. Developing countries have themselves created such bad debt risks that a credit crisis has occurred for many poor countries adding to the collapse of many essential services creating the current health crisis in parts of Africa and Asia.
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What all of this means is that developing countries are less inclined to provide economic aid, when they themselves require it. Developing nations have become the greaters consumers of credit and therefore making its harder for poorer nations to borrow.
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Unless something fundamentally changes, the economic reality is that the imbalances of the world will only get worse, not better.
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Economic model |
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An economic model is a financial plan that is based on some economic understandings and theories as well as some consistent financial basis. For nations and the world, this means being able to measure the wealth of economies in terms of their Gross Domestic Product (GDP) and the generally accepted financial accounting methods of global financial authorities in terms of the World Bank, IMF and the World Trade Organisation as well as ISO (International Standards Organisation) and the United Nations.
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The importance of an economic model is that it provide a framework by which individuals can discuss and analyze assumptions and make best recommendations on their views of the optimum course of action. As economics is all about unlimited needs and scarce means, an economic model is also a balance of how resources are to be applied.
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Global social and political goals that have an economic impact
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In defining the 2015 Millennium goals of the United Nations and in defining the 2025 UCADIAN economic and political plan there are certain milestones that carry with them an economic impact. For instance, what percentage of transport vehicles will be super energy efficient by 2025? What will be the average electricity consumption demand of a person in Botswana in 2025? And how can the nation accommodate such demands? What will be the goal unemployment and workforce participation rate in Germany in 2025? How will such a high employment goal and participation rate be possible?
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An economic model to achieve the goals of humanity
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In order to achieve the economic goals of humanity, the present economic problems of nations need to be solved each by their own unique situation. In other words, for the United States to play an increased role in economic aid, the economic plan for the United States must be met whereby significant government budget surpluses are deliverable and the current account defecit is 0. In such a situation, the United States would have billions of available dollars to provide to poor nations.
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This is therefore the purpose of the UCADIAN economic model, to provide a sound economic plan for the next twenty years whereby:
* the real wages of workers increase in value by at least double or treble;
* that government budgets are consistently in surplus or balanced;
* that there is 100% education
* that there is 1 to 3% unemployment in developed nations and 3 to 5% in developing nations;
* that the current account defecits of all nations are minimized to balance net wealth.
* that the debt ratio of all governments is less than 15%
* that the debt ratio of all nations is less than 20%
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Models