Transcript Smart People

Wealth of the Nation:
The Missing Links
Suvit Maesincee
The Rich Nations No Longer Dominate Global Production
Share of Global GDP* %
The US and Britain took 50
years to double their real
incomes per head
75
Developed Economies
50
Today China is achieving
that in a single decade
Emerging Economies
25
1820
70
1913
50
73
2005
* At purchasing power parity
Source: The Economist Jan 21st-27th 2006
The Geopolitics of 2026
• By 2026 , China’s economy will be bigger than the US
• India’s will be much larger than that of any individual European country
•The press will be full of articles about “Asian Value’ and the “Beijing
Consensus”
•There will be a fierce global scramble for oil, water and skilled labor
•As economic might shifts from the north and west to the south and east, so
will the cultural power
•Ancient civilizations like China and India will become more self-confident
and will project their own ideas on to concept such as democracy, freedom
and the rule of law
Source: The Geopolitics of 2026, The Economist 2006
Asia Expected to Be a Bigger Part of World By 2015
Forecasted Share of World GDP 2015
100
80
Asia
60
40
Non-Asia
20
0
China
India
Other Asia
Source: The Economist December 2th, 2005, investaustralia.com
USA
Japan
Rest of the
world
Western
Total
EU
Three Clusters of Nations
Mature/Stable
Market Economy
Sustained
Economy
Survived
Economy
Stagnant/Chaotic
Economy
Suffered
Economy
Political Disorder
Source: Modified from Tanaka Akihiko
Mature/Stable
Liberal Democracy
Globalization like a force of gravity
• It is unavoidable
• It is better to think how to make use of it
• View it as an opportunity to speed-up the nation wealth
building process
Managing Flow
In an Era of Globalization, a Healthy Economy Relies on
Ability to Build Stock and Managing the Flow
Well
Poor
Low
High
Building Stock
Current Level of Stock
New Level of Stock
Wealth of The Nation Redefined
Wealth of the Nation =
Opportunities
Parameter
Openness
X
Strategy
Attractiveness
X
Capability
Competitiveness
Wealth of The Nation Redefined
Assumption
About
Environment
Assumption
About
Scope of Business
Assumption
About
Competencies
Global
Forces & Trends
Openness
•
•
Opportunities
Threats
Nation’s Competitive
Position
Attractiveness
Nation’s Competitive
Advantage
Competitiveness
•
•
•
•
Value Creation
Differentiation
Strengths
Weaknesses
Wealth of The Nation Redefined
Parameter
Openness
Attractiveness
Competitiveness
Scorecard
US Japan India Thailand
X
X
X
X
X
X
X
X
X
X
X
X
• Business Attractiveness
• Geographical Attractiveness
• Cultural Attractiveness
• People Attractiveness
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
•Comparative Advantage
•Competitive Advantage
•Competencies
X
X
X
X
X
X
X
X
X
X
X
X
• Free Flow of Goods &
Services
• Free Flow of Capital
• Free Flow of Talents
Wealth of The Nation Redefined
Openness
Openness
US
India
Attractiveness
Competitiveness
Attractiveness
Openness
Openness
Japan
Attractiveness
Competitiveness
Thailand
Competitiveness
Attractiveness
Competitiveness
Wealth of the Nation--The Missing Links
Sufficiency
Economy
Globalization
People
Centricity
Sustainable
Development
Wealth of the
Nation
Desired Wealth of the Nation
Nation-State
Company
People
Nation’s Competitiveness
Competitive Advantage
Competencies
In the Past
Nation 1
Nation 2
Nation 3
Nation-State
Vertical Tie-Up
Company
People
Horizontal Free-Up
From Now On
Globalization
Nation 1
Nation 2
Nation 3
Nation 1 Nation 2 Nation 3
Nation-State
Company
People
• Vertical Tie-Up
• Horizontal Free-Up
• Vertical Free-Up
• Horizontal Tie-Up
From Now On
Nation 1
Nation 2
Nation 3
Nation-State
e.g. OLPC
Company
e.g. iPod
People
e.g. Korean Wave
From Now On
Nation 1
Nation 2
Nation 3
Issues
Nation-State
• Unilateral
• Bilateral
• Multilateral
Company
• Local
• Regional
• Global
People
• Privatize
• Commonize
• Socialize
People is the Key Development Energy for
the Nation’s Wealth Building in the 21th Century
Empower People
People-Centric
Development
Strategy
Liberalize Potentials
Pursuit to Prosperity
• Invest in People
• Equal Opportunities
• Entrepreneurial Culture
• Distributed Creativity
• Peer Production
• Democratization of Information
People is the Key Development Energy for
the Nation’s Wealth Building in the 21th Century
Empower
People
Competitive
Landscape
Liberalize
Potentials
• Optimal Openness
• Attractive Sector
• Dynamic Enterprise
Pursuit to
Prosperity
Enabling
Environment
• Predictable Environment
• Macro-Stability
• Infrastructure
• Institutional Framework
• Intelligence
People Centric Drivers
• Citizen Centric Government
• Open Innovation Economy
• Knowledge Based Enterprise
• Smart People
Citizen Centric Government
Authority
Regulation
Facilitation
Empowerment
Open Innovation Economy
Proprietary
Closed
Open
Public Domain
Knowledge Based Enterprise
Scale/Scope
Hierarchy
Network
Skill/Speed
Smart People
Blindly
Repetitive Task
NonInterchangeable
Skill
Interchangeable
Skill
Innovational
Task
People Centric Wealth System
Nation’s Competitiveness
Competitive Advantage
Social
Capital
• Cohesion
• Co-Creation
• Co-Prosperity
Human
Capital
• Capability
• Integrity
• Energy
Competencies
Nation
Company
People
Sufficiency Economy is the Foundation for Sustainable
Development
Sustainable
Development
Cluster/
Institution
Formation
IntraCommunity
Collaboration
Individual
Sufficiency
• Cooperatives
• Community-based
Enterprises
• Community Business
Social
Capital
• Cohesion
• Co-Creation
• Co-Prosperity
Human
Capital
• Capability
• Integrity
• Energy
• Extended Collaboration
• Community-based Intelligence
• Community Development Plan
• Emerging of Basic Communitybased Enterprises
• Increased Income
• Reduced Expenditure
• Savings
• Decreased Unproductive Habit
• Initial Collaboration
Sufficiency Economy is the Foundation for Sustainable
Development
Sustainable
Development
Cluster/
Institution
Formation
IntraIndustry
Collaboration
Corporate
Sufficiency
• Global Collaborative
Network
• Regional/Global
Enterprises
• Competitive Cluster
Social
Capital
• Cohesion
• Co-Creation
• Co-Prosperity
Human
Capital
• Capability
• Integrity
• Energy
• Local Collaborative Network
• Industry-based Intelligence
• Industry Development Plan
• Emerging of Industry Norms
and Practices
• Increased Income
• Reduced Expenditure
• Savings
• Decreased Unproductive
Investment
• Good Governance
People Centric Wealth System
Competitiveness
Nation
Transparency
Dynamic
Competitive Advantage
Company
Good Governance
Competencies
People
Integrity
Energy
Strategic Intent
Wealth of the Nation Redefined
Human Capital
Return on Intellectuals
Capability
+
People Centric ROI =
Return on Integrity
Integrity
+
Return on Intention
Energy
The Links to Nation’s Wealth Building
Globalization
Conflict
VS. Complement
Sufficiency
Economy
Promote
VS. Block
Sustainable
Development
Cause-Effect
VS. Coincident
Sufficiency Economy as a Root of Nation’s Wealth
Building
People
Empowerment
Globalization
Sufficiency
Economy
Sustainable
Development
Wealth of the
Nation