Chapter 10 - Reviving Capitalism

Abstract

This chapter brings a brighter side of the world economy by showing how the world economy can improve if resources can be redirected to productive ends. Reorientation has to begin with changes in policies, away from demand-driven and activities with “absolute” outcomes to supply-driven and activities with “relative” outcomes. Policy and resource reorientation is discussed in relation to different global issues: oil and peace, welfare policies, and rebalance between real and nominal sectors. A further discussion focuses on the commercialization of technology, especially in relation to pricing strategy. Global alliances may improve individual groupings, but foresight is needed in looking at the next phase of the global contours. While there can be pitfalls, the economy of Canada has been singled out as a case study of a promising economy, while the groups of Eastern European countries can be the next “newcomers” in global development if conditions are ripe.