On January 16, 2015, a predawn chill settled over an urban setting as if fashioned from a Hollywood film noir. First shift employees were about their business in the country’s busiest airport. Atlanta’s Hartsfield Jackson was already bustling with early morning travelers. Lively cacophonies of the happy chatter of concession stand attendants and visitors filled the brightly lit receiving areas. Steaming cups of latte warmed the hands of people scurrying to board curbside courtesy vans, waiting vehicles and noisy cabs. There was an unmistakable buzz in the air in anticipation of the first full day of the HOPE Global Forum 2015 in Atlanta.
President Bill Clinton and Atlanta’s son Ambassador Andrew Young were the keynote speakers at the event. A collection of noted and gifted friends from all over the world, spoke as one in their focus on HOPE.
The OECD (Organization for Economic Co-operation and Development) panel opened the forum. The panel discussion was hosted by Head of Multidimensional Country Reviews at OECD noted Jan Rielander. He held to rich discussions amongst an august panel who called for grass root remedies to global income disparities. Thought filled arguments reasoned the monetary and fiscal whys of overhauling global socio-economies while offering their remedies.
Facts presented from the Oxfam’s study on the prosperity disparity in advanced nations were sobering. Whether from South Africa or New York the collective of economic leaders spoke as one in expressing the need for all governments to make permeable the social membrane dividing income classes. It has grown into an agitated discussion that has become increasingly part of the global debate.
From HOPE to Davos
Brilliant blue skies served as a backdrop to majestic snow draped mountain peaks. A gaggle of hope-filled billionaires’ gathered in luxurious surroundings in a small Swiss Alpine skiing village. Financial and fiscal market makers from the world’s richest commerce participated in numerous paneled discussions about the state of global economies. Many attendants voiced an unadulterated mood of global economic optimism. Yet conversations that included IMF Managing Director Madame Lagarde centered on the mandate that that there must be redistribution of global wealth, for the sake of sovereign growth and survival.
It was discovered that a new debate on financial inclusion must exclude the rancid discourse defining this human condition…rather it should explore the what, when and where to remedies.
What should corporations and banks do to distribute quickly and efficiently money to communities in need.
When the debating ends the work of rebuilding economies of the poor should begin.
The growing surge of the poverty-stricken and the unemployed is a reality. The important framework of reconstructing the economic constructs that have trapped many in impoverishment must begin now.
Wherever the social economics refuses to mirror the plight of poverty should endure deep and lasting change.
It has taken generations to arrive at where the global economy is today. It will take generations to change the false self-perceptions of being and doing without.
In order to quickly assuage income disparities there must be Social Investment
The percentage of the globe living in crushing poverty is trending up. Middle-income families, the staple of the post WWII economy, are rapidly shrinking. Economists and wealth mangers agree that this is the dark reality of a looming global economic crisis, affecting everyone.
The great challenges that accompany the disparity in wealth distribution are not merely a moral hazard. The subject has become a mandate for social investment. Corporations as well as governments must devise methods of higher wages and availability of applied educations that serve economic growth. This uplifting of the impoverished should not only be mandated to underdeveloped nations. Rather advanced economies that have the appearance social awareness should assume the lead.
The fastest rode to economic self-destruction for any sovereign is to allow its populace to become too poor to contribute to its country’s well being. Nations’ resources can only survive and excel when its human capita has the ability to work and contribute to its trade and commerce. Without that money flow – liquidity traps emerge. A prime example of this is the struggling economies of southern countries within the Euro zone.
It is neither Keynesian nor Friedman economics. Equal distribution of wealth is common sense economics. It allows banks to grow, it allows countries to participate in lucrative fair trade agreements, and more important it assuages civil unrest.
The subject of the next OECD Global forum in Paris 2015 is “Responsible Business Conduct”.