Building Economic Power Around The World In 2023
With today's challenges such as the COVID-19 pandemic, terrorism, war, recession, and increased inflation worldwide, building economic power around the world is hard to achieve, but is still very much possible.
Economic power is the capacity of nations, corporations, or people to raise their level of living. It lessens the power of any outside influence to restrict their freedom and promotes their freedom to make judgments that are in their own best interests.
Economic power includes a sizable portion of purchasing power. Economic power can be attained by nations, businesses, and people by increasing their income and consequently their wealth. This enables people to meet their requirements by acquiring more and better goods and services.
A product or service that offers the world a genuine benefit is the best method to boost revenue. Customers will pay the maximum price to obtain that benefit due to the rules of supply and demand. For a nation, it might entail producing cutting-edge machinery, offering inexpensive labor to produce consumer goods, or possessing an abundance of oil.
COPYRIGHT_WI: Published on https://washingtonindependent.com/building-economic-power-around-the-world/ by Katya Ryder on 2022-11-22T08:39:55.842Z
The most significant approach for nations to sustainably enhance their rate of productivity growth is to boost public and private investment in the skills of their people. Some governments routinely underfund the availability of top-notch education and skill development.
But with aging populations and technology disrupting both manufacturing, which developing economies have historically relied on to industrialize, and services, where a large portion of employment is concentrated in rich economies, policymakers worldwide need to take greater action.
Therefore, the committee urged nations to create a global framework to foster lifelong learning, which should include more robust and well-funded labor-market training and adjustment policies, expanded public employment services, and a basic level of social safety for all citizens.
Second, governments should modernize national labor laws and institutions in collaboration with employers' and workers' organizations. These have an impact on the availability and distribution of employment opportunities and pay, as well as the economy's overall aggregate demand and spending power.
The commission specifically advocated for a Universal Labor Guarantee, which would guarantee basic rights, an "adequate living wage" as outlined in the ILO's founding constitution 100 years ago, maximum working hours, and workplace health and safety protection to all workers, regardless of their contractual arrangement or employment status.
Furthermore, government policies should guarantee the collective representation of employees and employers through organized social dialogue as a public good and actively promote it.
To enhance gender equality in the workplace, regulations must encourage the sharing of unpaid care duties in the home, from parental leave to public services. In this sense, it is also crucial to promote female leadership and voice, get rid of workplace violence, and put pay transparency measures in place.
Third, nations should boost both public and private investment in labor-intensive industries that benefit society broadly. These include the care industries, the rural economy, sustainable water, energy, digital, and transportation infrastructure, as well as education and training.
Achieving the UN Sustainable Development Goals, according to the Business and Sustainable Development Commission, could result in $12 trillion in market opportunities in just four sectors by 2030, including food and agriculture, cities, energy and materials, and health and wellbeing, and up to 380 million jobs.
Making use of these opportunities could assist nations in making up for the consequences of automation and economic integration, which may displace jobs and possibly reduce demand.
How Will the COVID-19 Economic Recovery Play Out? World Bank Expert Answers
According to the World Bank's most recent Global Economic Prospects report, the global economy is entering a marked slowdown after a strong recovery in 2021 due to new threats from COVID-19 variants as well as an increase in inflation, debt, and income inequality that could jeopardize the recovery in emerging and developing economies.
As pent-up demand fades and global fiscal and monetary assistance is removed, it is predicted that global GDP would significantly slow from 5.5 percent in 2021 to 4.1 percent in 2022 and 3.2 percent in 2023.
The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory. Rising inequality and security challenges are particularly harmful for developing countries. Putting more countries on a favorable growth path requires concerted international action and a comprehensive set of national policy responses.
- World Bank Group President David Malpass
Economic power can be attained by increasing their income and consequently their wealth. This enables people to meet their requirements by acquiring more and better goods and services. A product or service that offers the world a genuine benefit is the best method to boost revenue.
These are the countries with the largest nominal GDPs worldwide for 2020, according to the International Monetary Fund:
- United States - 20,807.27
- China - 15,222.16
- Japan - 4,910.58
- Germany - 3,780.55
- United Kingdom - 2,638.30
- India - 2,592.58
- France - 2,551.45
- Italy - 1,848.22
- Canada - 1,600.26
- South Korea - 1,586.79
Four steps to a more sustainable world economy:
- Increase economic diversity.
- prevent the rise of inequality.
- Make the financial system sustainable.
- Enhance institutions.
Economic power for countries is typically assessed by looking at GDP per capita. This demonstrates the county's productivity in relation to its population. But it doesn't give the whole picture. Some economists advocate extending the definition of economic power to include factors like financial security, free time, longevity, and overall quality of life.
The four production elements - natural resources, labor, capital equipment, and entrepreneurship - are the key factors that affect a country's economic power if economic power is largely determined by the growth of GDP per capita. The potential for the economic power of a nation increases with the amount of access it has to these resources.
In building economic power around the world, one must look into the most powerful country which is the United States. The wealth of natural resources in the United States is what gives it its economic clout.
It boasts a large amount of fresh water and hundreds of acres of agricultural land. Natural gas, coal, and oil are all in great supply there. Two expansive beaches on its vast terrain serve as ports for trade.
The political, monetary, and linguistic systems of the United States are all one. This offers it a comparative edge over the European Union, which has the second-largest economy in the world.
It is more challenging to govern the EU's single monetary system, which is unified by the euro because the EU consists of 27 distinct member countries with various political systems and linguistic groups.