We all heard of quantitative easing monetary policy, helicopter money and inflation – every now and then talks of fiscal bubbles and so on. Particularly in economies not investing much in infrastructure, being assets of long term economic use. As everybody wants to invest in secure projects, properties being vulnerable to the cycles of economy, trends in demography or cost of energy, being risks not concerning the developers anymore, most of it just follow the “more of the same scheme”, inflationary to societies.
In case Institutional investors like e.g. insurances decide to invest in infrastructure, they are also bound to “more of the same” projects, lacking to anticipate changes or differences in surrounding circumstances or conditions precedent. New added value can never happen without Infrastructure Innovation. Our universities and research institutions educate new experts, develop new solutions, but very little gets financed into Implementations, wasting the Human Capital otherwise able to generate Qualitative Growth.
Recent trends in crowd funding raise hopes that prosumers will be empowered to make their own judgement on the society’s progress they would like to see happening by crowding up to finance disruptive and game changing innovations. To transform the world into a better place of Eco-Social Market Economy they want to see evolve able to create a reality that can secure their investments’ future value mark-up. Infrastructure Investments usually must sustain 35 to 50 years – so investing in “more of the same” today will most likely be impaired going forward to the detriment of its financiers and burden of ordinary people.
Innovating always means creating new added values. But Innovation can be incremental only or game changing, whereas in the latter case disruptive Innovation will outplace most of the incremental ones. The most popular example for such faith was Nokia – always incrementally innovating mobile phones, but gotten overleaped by smart phones out of the blue – so their then CEO commented bankruptcy by saying: “I don’t know, we didn’t do anything wrong, and yet we failed!” Yeah, it can turn out the biggest mistake not to do what could be done, as soon as somebody else did it.
In mature economies young high income individuals of the generation “Y” have already completely other values than their politicians can represent and therefore are developing own ideas of what they would like to see happening. Their participation in cyber-networking, asset sharing and crowd funding is an absolutely new trend, broadly underestimated by our governing regimes who try to blackmail it as right extremism.
Emerging economies will greatly benefit from Chinas Belt & Road initiative in the coming years. Hopefully it will not be executed the way the old world would like to take advantage of it. But from my own experience about the pace of Chinas modernization programs I’m pretty confident, that things will happen new ways before the old economies even noticing the differences. These raise great opportunities for entrepreneurial spirit to contribute towards a better world of Qualitative Growth outplacing deflationary Quantitative Growth “more of the same” systems, detrimentally damaging all habitat taking it hostage. The Belt and Road implementation will open many opportunities for science graduates from all the world if adventurous enough to pioneer to where the music plays – unless things become innovative at home. Chances are that the entrepreneurial talents will crowd-up to make it happen all over the world – crowd financing can seed changes political regimes do not incentivize in gross negligence by fear to lose power.
#CrowdFunding, #InfrastructureInvestment, #Belt&Road, #EcoSocialMarketEconomy, #HumanCapital