Typically, monetary polarization has been a problem facing many inhabitants of the world. In general physics, polarization is the magnetic attraction of unlike poles. But in monetary policy, it is derived as a way of exploitation of special materials, based on the weaknesses of others.
For long, geo-political and structural reforms have taken centre stage in what seems to be a race for power. But to give it to you straight, it’s not. It’s all about the Dollar Bills, and before you start thinking otherwise, it’s not a crime for it to be that way.
Our world has always been defined as such an ideal system with perfectness stored in some corner or the other. Sure, there are some who are good-willed, but then there are those who need to survive and that’s where George Washingtons come in.
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Needs over wants!
Whether it’s working at a coffee shop or serving as a public official, you need money and you do what you do for earning a living or earning way more than someone else’s, no offence.
The needs are what we align ourselves with, not our wants. For example, nobody would jump inside a volcano just to see what it’s like. You would put in other considerations like perhaps, the lack of breathable air, or maybe the hundreds of thousands of degrees of molten lava which can burn through a rock.
Nations across the world used to be the same. Needs over Wants! Sure there were mid-income economies, but not k-shaped recoveries.
Now, to be honest, capitalism really helped this case and was an efficient vehicle for letting economies serve their own fiscal purposes without foreign interference. Every city in most nations had a purpose and was optimistic looking to a sustainable financial system, even then. But what went wrong?
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The rich nations eating up the poor?
With the rise of defence mechanisms and global insecurity, World Powers (self-proclaimed), rose to the challenge and made it a point to serve a broader purpose in the world, in some cases doing other people’s jobs for them, which was only bad on the “other people’s” part.
This way, the only magnetized nation for capital were the world powers, whereas the other side of the pole was only attracting more troubles with mounting debt. In basic terms, the rich get richer and the poor get poorer.
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But who actually are the rich? The nations, the nations who give a fine amount of investment, only to get back even greater profits.
A report by the World Bank charted that in 2015, China`s earnings exploded with its robust trade and highly strategic relations between them and the African continent.
There were more imports from Sub-Saharan Africa (SSA) to China than there were exports which were deemed as a goodwill gesture at the time, but in reality, a majority of those imports were fuel and metal commodities, still in the primary process of production with a perishable price.
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Whereas, the exports, despite their decrease consisted largely of manufactured goods and machinery which always sold at a profitable value. This way, data can be cherry-picked to show what great service is actually being done to less-advantaged areas, like SSA.
But on the other side of the aisle, circumstances are rather different. In a nation like Brazil, the poverty rate has risen to 19.80%. And South America, as a continent, like Africa, is facing similar issues.
Like a sponge, their income is soaked away, only to be eaten by a different type of world power and not, wealthy nations, thereupon Wall Street.
More exploitation for the poorer regions
Corporations all across the world have made it their goal to devote money to the poor, only to take it back with interest themselves as time passes by, therefore known as corporations, and not NGO’s.
A report labelled ” Insights into African Capital Markets”, highlighting this very issue, saying, ” Chinese and Indian companies continued to be significant investors into Africa during 2014. In addition, investment by the United Arab Emirates has been on the increase in recent years and accounted for 6% of total capital expenditure.”
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With the increase in global warming problems and supply chain scarcity, especially due to the pandemic, deserted areas with less access to privileged industries are facing a growing challenge to protect their commodities.
I believe that at this rate, we will see diminished and negative growth in poorer regions from where these natural gifts are being extracted. Furthermore, the increase in positive deflation for corporations and world powers will surely lead to unstable and unsustainable living standards.
Now, some may argue that this is just a way of fueling distrust amongst strong trading partners. But it’s not. Its economics. It’s how the world works. It can cause wars, but so can rockets and destructive equipment.
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The author is Head of the Department for Social Sciences at TMUC, Pakistan, and an economist specialising in Newtonian Gravity Model Economics. The author can be reached at sarinashirazi5@gmail.com. The views expressed in the article are the author’s own and do not necessarily reflect the editorial policy of Global Village Space.