wealth of the nation: the missing links wealth of the nation: the missing links suvit maesincee
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Wealth of the Nation:Wealth of the Nation:The Missing LinksThe Missing Links
Wealth of the Nation:Wealth of the Nation:The Missing LinksThe Missing Links
Suvit Maesincee
The Rich Nations No Longer Dominate Global Production
* At purchasing power paritySource: The Economist Jan 21st-27th 20061820 70 1913 50 73 2005
Share of Global GDP* %
Emerging Economies
Developed Economies
The US and Britain took 50 years to double their real incomes per head
Today China is achieving that in a single decade
25
50
75
The Geopolitics of 2026
• By 2026 , China’s economy will be bigger than the US
• India’s will be much larger than that of any individual European country
•The press will be full of articles about “Asian Value’ and the “Beijing Consensus”
•There will be a fierce global scramble for oil, water and skilled labor
•As economic might shifts from the north and west to the south and east, so will the cultural power
•Ancient civilizations like China and India will become more self-confident and will project their own ideas on to concept such as democracy, freedom and the rule of law
Source: The Geopolitics of 2026, The Economist 2006
Asia Expected to Be a Bigger Part of World By 2015
Forecasted Share of World GDP 2015
Asia
Non-Asia
Total = 45%
Source: The Economist December 2th, 2005, investaustralia.com
0
20
40
60
80
100
China
Other Asia
India
Japan
USA
WesternEU
Rest of theworld
Total
Three Clusters of Nations
Political Disorder Mature/Stable Liberal Democracy
Mature/Stable Market Economy
Stagnant/ChaoticEconomy
Source: Modified from Tanaka Akihiko
SufferedEconomy
SufferedEconomy
SurvivedEconomy
SurvivedEconomy
Sustained Economy
Sustained Economy
Globalization like a force of gravity
• It is unavoidable
• It is better to think how to make use of it
• View it as an opportunity to speed-up the nation wealth
building process
In an Era of Globalization, a Healthy Economy Relies on Ability to Build Stock and Managing the Flow
Man
agin
g F
low
Building Stock
Low High
Well
Poor
Current Level of Stock
New Level of Stock
Wealth of The Nation Redefined
Wealth of the Nation =
Opportunities Strategy CapabilityX X
Openness Attractiveness CompetitivenessParameter
Wealth of The Nation Redefined
Openness
Attractiveness
Global Forces & Trends
Global Forces & Trends
Nation’s Competitive Position
Nation’s Competitive Position
CompetitivenessNation’s CompetitiveAdvantage
Nation’s CompetitiveAdvantage
• Opportunities• Threats
• Value Creation• Differentiation
• Strengths• Weaknesses
Assumption About
Environment
Assumption About
Scope of Business
Assumption About
Competencies
Wealth of The Nation Redefined
Openness
Attractiveness
Competitiveness
Scorecard
• Free Flow of Goods & Services• Free Flow of Capital• Free Flow of Talents
• Business Attractiveness• Geographical Attractiveness• Cultural Attractiveness• People Attractiveness
•Comparative Advantage•Competitive Advantage•Competencies
Parameter US IndiaJapan Thailand
X
XX
XXXX
XXX
X
XX
XXXX
XXX
X
XX
XXXX
XXX
X
XX
XXXX
XXX
US India
Japan Thailand
Openness
Attractiveness Competitiveness
Wealth of The Nation Redefined
Openness
Attractiveness Competitiveness
Openness
Attractiveness Competitiveness
Openness
Attractiveness Competitiveness
Wealth of the Nation--The Missing Links
Globalization
SustainableDevelopment
SufficiencyEconomy
Wealth of the Nation
PeopleCentricity
Desired Wealth of the Nation
Competencies
Competitive Advantage
Nation’s Competitiveness
People
Company
Nation-State
Nation 1 Nation 2 Nation 3
Nation-State
Company
People
In the Past
Vertical Tie-Up
Horizontal Free-Up
• Vertical Free-Up• Horizontal Tie-Up
Nation 1 Nation 2 Nation 3
From Now On
Nation 1 Nation 2 Nation 3
Nation-State
Company
People
• Vertical Tie-Up• Horizontal Free-Up
GlobalizationGlobalization
Nation 1 Nation 2 Nation 3
Nation-State
Company
People
From Now On
e.g. Korean Wave
e.g. iPod
e.g. OLPC
• Unilateral• Bilateral• Multilateral
Nation 1 Nation 2 Nation 3
Nation-State
Company
People
Issues
• Local• Regional• Global
• Privatize• Commonize• Socialize
From Now On
People is the Key Development Energy for People is the Key Development Energy for the Nation’s Wealth Building in the 21th Centurythe Nation’s Wealth Building in the 21th Century
Empower People
Liberalize Potentials
Pursuit to Prosperity
People-Centric Development
Strategy
• Invest in People• Equal Opportunities• Entrepreneurial Culture• Distributed Creativity• Peer Production• Democratization of Information
EmpowerPeople
LiberalizePotentials
Pursuit toProsperity
Enabling Environment
Competitive Landscape
People is the Key Development Energy for People is the Key Development Energy for the Nation’s Wealth Building in the 21th Centurythe Nation’s Wealth Building in the 21th Century
• Optimal Openness• Attractive Sector • Dynamic Enterprise
• Predictable Environment• Macro-Stability• Infrastructure• Institutional Framework• Intelligence
• Smart People
• Citizen Centric Government
• Open Innovation Economy
• Knowledge Based Enterprise
People Centric DriversPeople Centric Drivers
Facilitation
Empowerment
Authority
Regulation
Citizen Centric Government
Open
Public Domain
Proprietary
Closed
Open Innovation Economy
Network
Skill/Speed
Scale/Scope
Hierarchy
Knowledge Based Enterprise
Innovational Task
Blindly Repetitive Task
InterchangeableSkill
Smart People
Non-Interchangeable
Skill
People Centric Wealth System
Competencies
Competitive Advantage
Nation’s Competitiveness
PeopleCompanyNation
• Capability• Integrity• Energy
Human Capital
SocialCapital
• Cohesion• Co-Creation• Co-Prosperity
Sufficiency Economy is the Foundation for Sustainable Development
IndividualSufficiency
Intra-Community Collaboration
Cluster/ InstitutionFormation
• Increased Income• Reduced Expenditure• Savings• Decreased Unproductive Habit• Initial Collaboration
• Extended Collaboration• Community-based Intelligence• Community Development Plan• Emerging of Basic Community- based Enterprises
• Cooperatives• Community-based Enterprises• Community Business
Sustainable Development
• Capability• Integrity• Energy
Human Capital
SocialCapital
• Cohesion• Co-Creation• Co-Prosperity
CorporateSufficiency
Intra-Industry
Collaboration
Cluster/ InstitutionFormation
• Increased Income• Reduced Expenditure• Savings• Decreased Unproductive Investment• Good Governance
• Local Collaborative Network• Industry-based Intelligence• Industry Development Plan• Emerging of Industry Norms and Practices
• Global Collaborative Network• Regional/Global Enterprises• Competitive Cluster
Sustainable Development
Sufficiency Economy is the Foundation for Sustainable Development
• Capability• Integrity• Energy
Human Capital
SocialCapital
• Cohesion• Co-Creation• Co-Prosperity
People Centric Wealth System
Competencies
Competitive Advantage
Competitiveness
People
Company
Nation
Transparency
Good Governance
Integrity
Dynamic
Strategic Intent
Energy
Wealth of the Nation Redefined
People Centric ROI =
Return on Intellectuals
Return on Integrity
Return on Intention
Capability
Integrity
Energy
Human Capital
+
+
The Links to Nation’s Wealth Building
GlobalizationGlobalization
SustainableDevelopment
SustainableDevelopment
SufficiencyEconomy
SufficiencyEconomy
Conflict VS. Complement
Promote VS. Block
Cause-EffectVS. Coincident
Sufficiency Economy as a Root of Nation’s Wealth Building
GlobalizationGlobalization
SustainableDevelopment
SustainableDevelopment
SufficiencyEconomy
SufficiencyEconomy
Wealth of the Nation
Wealth of the Nation
PeopleEmpowerment
PeopleEmpowerment