Rogue Economics

We all know "Rogue Economics" exist. The illegitimate sort of businesses that provide towards the economy. But I did not realise - it simply did not occur to me - that Globalization was much to blame; atleast that's the argument put forward by Loretta Napoleoni, that Globalization helped "black markets and criminal markets but also gray areas that aren't regulated" flourish!

Now, I'm a big advocate of Globalization - I call it "a vision" without boundaries - and I must admit that it's a little hard to digest that perhaps what the author of "Rogue Economics: Capitalism's New Reality" is saying might just be right.

In the search for a "smaller world" we have created a world with limitless exploitative opportunities that bring about new challenges but along the way provide few solutions. We're getting closer through technology but still remain far apart when it comes to regulation.

"Seventy percent of the fish we eat is black market, fished in violation of international laws. Our ignorance makes us unwilling partners in crime. Rogue economics is turning the global market into our worst nightmare... ...One example is the sex trade. After the collapse of communism, women from the former Soviet bloc were desperate. Unemployment went from virtually zero to 80 percent after the wall fell. So the women became prostitutes or sex slaves in the West. Also, the supply of labor in the West doubled as people came from the East. That led to a deflationary situation around the world in which interest rates fell and banks became more aggressive, looking for more and higher returns. Investment banks were hardly regulated; nearly everything was allowed." - Lorretta Napoleoni Newsweek

But how I see it, Globalization has made the world just alittle easier to access. With it has come big challenges, however, regulation will always lag, not just because the world is changing at breakneck speed, but also because with everybody getting big on "Power" it will be hard to negotiate solutions that are not perceived as being on equal footing.

Thus in this new world order, unfortunately, idealism has no place and Rogue Economics will continue to thrive whether we like it or not - just like the big Environment issue - it's there, it's in your face, So? ... Fact of the matter is, these things take years and years or even decades to reach any agreement. Also, I believe it'll be rather difficult to rally for regulation in certain practices without encountering some sort of backlash.

I wish we didnt have the rogue economics, but it's part and parcel of Globalization (capitalism at it's Peak)... there is no escape!