{"id":6321,"date":"2020-02-15T17:04:10","date_gmt":"2020-02-15T11:34:10","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=6321"},"modified":"2020-02-15T17:04:10","modified_gmt":"2020-02-15T11:34:10","slug":"world-economic-forum-in-economic-development","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/world-economic-forum-in-economic-development\/","title":{"rendered":"World Economic Forum in economic development"},"content":{"rendered":"<p><span style=\"color: #0000ff;\"><strong>Relevance: Mains: G.S paper II: International<\/strong><\/span><\/p>\n<p><a href=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-6322\" src=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019-1024x674.png\" alt=\"\" width=\"810\" height=\"533\" srcset=\"https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019-1024x674.png 1024w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019-150x99.png 150w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019-300x197.png 300w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019-768x505.png 768w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019-120x80.png 120w, https:\/\/triumphias.com\/blog\/wp-content\/uploads\/2020\/02\/weo-arrows-april-2019.png 1801w\" sizes=\"auto, (max-width: 810px) 100vw, 810px\" \/><\/a><\/p>\n<p><span style=\"color: #ff0000;\"><strong>Context: <\/strong><\/span><\/p>\n<ul>\n<li>The World Economic Forum (WEF) started in 1971 with the noble objective of improving the state of the world, but now serves as a platform for world leaders, billionaires, professionals at the top of the business pyramid, senior government ministerial delegations, and others, who gather to change the world.<br \/>\n\u2022 This is the 49th year of the congregation, which now resembles an ice circus. The messages from Davos drift like snowflakes, on the agendas of the developed world.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Background:<\/strong><\/span><\/p>\n<ul>\n<li>Social inequalities and the grim problems of stark and continuing poverty are at the epicentre of the new world.<br \/>\n\u2022 The latest Oxfam Report presented at Davos points out that 2,153 billionaires have more wealth than 4.6 billion people.<br \/>\n\u2022 The emergence of billionaires and oligarchs in different parts of the world coincides with increased poverty among the already poor people, especially children.<br \/>\n\u2022 These realities make observers question the tenability of stakeholder capitalism as a concept.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Characteristics of economic development:<\/strong><\/span><\/p>\n<ul>\n<li>One of the chief characteristics of economic development is the intensification of energy use.<br \/>\n\u2022 There is an unprecedented concentration of high energy density in all economic development strategies.<br \/>\n\u2022 The bulk of the energy continues to be generated from non-renewable sources.<br \/>\n\u2022 The developed world\u2019s, and China\u2019s, central objective is to capture energy-generating resources from across continents and put them to use to push GDP growth to greater heights. In the process, sustainability is becoming a casualty.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>How do we define energy?<\/strong><\/span><\/p>\n<ul>\n<li>In physics, energy is defined as \u2018work done\u2019 or, in other words, the force that moves all objects. It is important to understand the philosophical implications of one of the great laws of physics \u2014 the Laws of Thermodynamics.<br \/>\n\u2022 The first law states that energy can neither be created nor destroyed, it merely changes form and is always conserved.<br \/>\n\u2022 The second law states that when \u2018work is done\u2019, only a part of the energy is consumed, the balance is lost. The lost part is called \u2018entropy\u2019 and it is proven that entropy always maximises.<br \/>\n\u2022 This whole phenomenon also leaves behind inert material as waste. The higher the use of energy, the larger the amount of waste generated. Entropy, like time, is always unidirectional, it only goes forward.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Excess consumption:<\/strong><\/span><\/p>\n<ul>\n<li>Egregious consumption of energy by the developed world has been accompanied by the disposal of residual products (\u2018e-waste\u2019) on the shores of many African and Asian countries.<br \/>\n\u2022 As a result, the poor in the developing world are, unwittingly, drawn and exposed to toxic, hazardous materials like lead, cadmium and arsenic.<br \/>\n\u2022 Hence, the \u2018globalisation\u2019 phenomenon has turned out to be nothing other than exploitation of the developing world, with most countries being treated as a source of cheap labour and critical raw material.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Nordic Economic Model:<\/strong><\/span><\/p>\n<ul>\n<li>The \u2018Nordic Economic Model\u2019, which pertains to the remarkable achievements of the Scandinavian countries comprising Denmark, Finland, Iceland, Sweden, Norway, and allied territories.<br \/>\n\u2022 The total population of the Nordic countries is estimated at almost 27 million people. These nations are among the richest in the world when measured in terms of GDP per capita.<br \/>\n\u2022 They also have large public sector enterprises; extensive and generous universal welfare systems; high levels of taxation; and considerable state involvement in promoting and upholding welfare states.<br \/>\n\u2022 UN reports also indicate that the Nordic countries are the happiest countries in the world. The U.S., in contrast, is in 19th place.<br \/>\n\u2022 Taking the Nordic model as a template, there are some ingredients that could be part of a new \u2018enlightened global order\u2019. These should include \u2014 effective welfare safety nets for all; corruption-free governance; a fundamental right to tuition-free education, including higher education; and a fundamental right to good medical care.<br \/>\n\u2022 This also has to involve shutting of tax havens.<br \/>\n\u2022 In Nordic countries, personal and corporate income tax rates are very high, especially on the very rich. If a just, new world order is to arise, taxes everywhere should go up.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Holding companies responsible:<\/strong><\/span><\/p>\n<ul>\n<li>When it comes to the corporate sector, there are some new perspectives.<br \/>\n\u2022 In traditional business accounting, \u2018bottom line\u2019 refers to the financial year\u2019s profit or loss earned or incurred by the company on pure financial parameters.<br \/>\n\u2022 However, following vigorous debates, a new format has emerged under which a company\u2019s performance is measured through four \u2018Ps\u2019. The first is \u2018P\u2019 for \u2018profit\u2019.<br \/>\n\u2022 The second \u2018P\u2019 is for people \u2014 how the company\u2019s actions impact not only employees, but society as a whole.<br \/>\n\u2022 The third \u2018P\u2019 is for planet \u2014 are the company\u2019s actions and plans sensitive to the environment?<br \/>\n\u2022 The four \u2018P\u2019 is for purpose, which means the companies and individuals must develop a larger purpose than \u2018business as usual\u2019.<br \/>\n\u2022 Using big data and text analytics, a company\u2019s performance can be measured in terms of all the four \u2018P\u2019s and a corporate entity can be thus held accountable.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><strong>Conclusion:<\/strong><\/span><\/p>\n<ul>\n<li>Market capitalisation need not be the only way to measure the value of a company.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Mains: G.S paper II: International Context: The World Economic Forum (WEF) started in 1971 with the noble objective of<\/p>\n","protected":false},"author":1,"featured_media":3530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,18],"tags":[392],"class_list":["post-6321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-ii","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/6321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=6321"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/6321\/revisions"}],"predecessor-version":[{"id":6323,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/6321\/revisions\/6323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/3530"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=6321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=6321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=6321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}