Economies/Markets Security’s effect on Economic Development by Joshua Konov, 2012

What economic/market security is? (Economies synonym of Markets) See: http://mpra.ub.uni-muenchen.de/34588/1/MPRA_paper_34588.pdf A market level of lend-ability reflects it’s (a market) security; the market conditions giving different size businesses and wealth level individuals compatibility in a balanced demand-tosupply marketplace. It is clear from financing prospective that businesses and individuals differ in their access to capital by the level of development of markets, whereas the more developed a economy/market is the easier access, the higher percentage of businesses and individuals have to the lower interest rate financing. Similar is the difference between developed and less developed countries/markets, whereas most developed ones have access to lower interest capital than the less developed markets. In the ongoing globalization and rising productivity of China, India, Vietnam and Brazil, the improving high technologies in manufacturing and communication, the depoliticization and the Internet, the enhancing role of market security is paramount to establish relative fair market competition thus to allow small and medium enterprises and investors fair competition. The transnational corporations are not any more in capability to maintain even marginal employment to developed or developing markets, therefore a shift from transnationals to SME is necessary to ensure and maintain acceptable level of employment – consumption to balance the market demand-to-supply, and thus to prompt and maintain long term market development. The role of the governments, in such a market environment, could expand by taking larger part of the markets, if small and medium enterprises could not pick up larger part of business in a fair market competition; thus considering the inept governmental approaches to prompt business and employment. (Even when social security and infrastructural expenses could be considered partially equitable, not just expenses as it has been considered, positive in certain percentage for market development) the probability of governments taking over is considered not positive, indeed. The abilities of private small and medium business and investment consist of more flexible and more adjustable to the market fluctuations, than these of the governments. Some of the market agents that could raise the markets security: • Limited Liability Corporate Laws enhanced into Unlimited such, particularly by incriminating wrongdoings by the decision makers • Business laws enhanced to establish relatively fair market competition on a global marketplace. • Contract laws enhanced to make contracts more liable and easily enforced by court. • Bonding and insurance enhanced over business contracts and transactions. • Market exchanges regulated under strict security laws for fair global investment. • The appointed laws enhanced to be globally enforceable. • International organizations: WTO, the WB and IMF to change from their lenders functions into controller of the global market balance of demand-to-supply.

International organizations to start funneling capital on market-by-market basis, toward expansion of environmentally friendly projects by using commercial banks on low interest rates. With the implementation of the appointed micro and macro economic enhancements the relative security will rise, thus the small and medium enterprises and investors will become more competitive, whereas by natural for the market means a more consistent economic/market development could be succeeded (it is not called economic growth). The higher market security will allow by natural means a lower interest rates lending, which is a necessary for market development under these new market conditions. By Joshua Konov, 2012 joshua.konov@gmail.com

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