Me and Farjano have ruthless debate about economic philosophy becuz this is what guides 'GDP outcomes' but we don't have a dispute about these following core areas needing to be in place for economic activity to flourish.
1. Infrastructure. Roads-Airport-Ports are critical lifelines for transportation of goods/products/equipments/materials to various areas of the nation. This is also is fundamental when investors work out 'time/speed of production' as infrastructure availability/access is a key measurement. Remember time/speed is critical component as it can drive up costs of investors to produce and reach it's markets either locally/globally. People movement is another fundamental reason these is needed.
Value of investment is also linked to these being in place or else 'investors losses' increases when it's in short supply like Mogadishu, as they crowd around the few roads putting pressure on land and infrastructure availability and resulting in high prices. The house itself is made of raw material that is cheap, so that's not the issue. It's the land shortage especially around roads that is in short supply.
2. Electricity penetration is another fundamental backbone that has to be in place not just for investors but even for locals. As electricity penetration is limited it drives up land prices because it's may not be connected to near-by electricity and hence house prices shoot up the roof as the overwhelming people want land and electricity and will create a bidding war which is not good economic indicator of that market place, no-one will invest as it will mean overpaying for property that is essentially not worth what it's selling for all due to poor 'electricity' coverage in the city.
It's also important to have this lifeline since the market place is connected to internet and will impact on trading if it's missing. It's also needed for heavy machinery and factories if your manufacturer locally/globally. It's needed in all aspects of the economy from homes to schools to hospitals to government, without it the nation not only goes into dark age but no power means the economy stops. No economist can overlook this key lifeline to ensure they measure what sort of energy output is needed to support the market and it's future economic growth indicators needs to answer electricity growth at the same time, as one with the other is not possible.
3. Comms infrastructure is also needed like telephone-internet as most business-trade-work cannot happen without Communication infrastructure in place and it's coverage level has to be high at all times in the market
4. Water which is always needed not just for farming-livestock but urban water needs for cooking-drinking-showering, etc.
5. Banking infrastructure that sits n monitors market and supports the borrowing n lending of local ventures to create start ups and increase employment and create supply chain net effect thru growth in services and employees responding to new start ups
Roads-Ports-Airports-Comms-Water-Bankingthis sits right at the top of any economic model as 'infrastructure' for the market place. Govt sits above it and directs policy/taxation/regulations into those key areas so the peopleand market can grow and develops in these huge people employing industries as hospitality-cafes-restaurants-shops-trades-professional-technology. It also watches rural sectors fishery-livestock-farming to ensure production continues but this is linked at all times to urban market consumption and global market consumption so in order for them to incease rural activity it has to be justified locally and globally which need someone to 'scan' the market locally/globally for less 'supply chains' the rarer the supply chain the better the returns, once the supply chain is to much, the production of that economy is going under 'derivative valuing' which is not on the producing economy benefit.
So the economic philosopy that is quite standardly accepted is consumption need to increase for production to be warranted and justified and the only way to do that is thru investors-govt linking up and identifying the industries and the govt preparing the workforce thru good education facilities or else that is govt problem not an investor one as the human capital is missing for any investment decision. Taxes-regulations are only secondary matter and where me and Teeri differ as I prefer a more employee policy to ensure growth in the middle as he feels no restrictions is needed and market will adjust itself, where-as I have yet to see any demonstration of that. Having the wealth to high and closed off to 1% doesn't incease consumption. He won't need to buy a house-vehicle-increase his spending-utilities dont grow either he wont pay more then once across every industry, where-as a middle engine will pay across every single industry and hence creating growth for other businesses and allowing for new ones to begin operation as the consumption is increasing.
Consumption = Production and then within the consumption market you want 'strong spending power' now 'weak one' and this depends on that human capital and if it's factory 2 dollar a week worker or highly skilled rare in the market worker. Skilled and Unskilled employee will determine their spending power and hence will dictate over-all economic indicators, if that base doesn't specialize and develop a skill in market need and rare, the returns are not on the host nation side but on the investor side only.
Tourism-Oil-Gas-Gold are only 'secondary' industries it doesn't generate much employees or is seasonal and or ends up like an 'ogligarchs' economy and dead market since they are not going to spend more then once in each industry is quite consistent since their wealth pool is to small n contained to a few not spread to the many to warrant business response or investment and why socialist policy is the most 'logical' stance to take and create regulations around that purpose is paramount or else an ogligarchy is emerging from unrestricted market
1. Infrastructure. Roads-Airport-Ports are critical lifelines for transportation of goods/products/equipments/materials to various areas of the nation. This is also is fundamental when investors work out 'time/speed of production' as infrastructure availability/access is a key measurement. Remember time/speed is critical component as it can drive up costs of investors to produce and reach it's markets either locally/globally. People movement is another fundamental reason these is needed.
Value of investment is also linked to these being in place or else 'investors losses' increases when it's in short supply like Mogadishu, as they crowd around the few roads putting pressure on land and infrastructure availability and resulting in high prices. The house itself is made of raw material that is cheap, so that's not the issue. It's the land shortage especially around roads that is in short supply.
2. Electricity penetration is another fundamental backbone that has to be in place not just for investors but even for locals. As electricity penetration is limited it drives up land prices because it's may not be connected to near-by electricity and hence house prices shoot up the roof as the overwhelming people want land and electricity and will create a bidding war which is not good economic indicator of that market place, no-one will invest as it will mean overpaying for property that is essentially not worth what it's selling for all due to poor 'electricity' coverage in the city.
It's also important to have this lifeline since the market place is connected to internet and will impact on trading if it's missing. It's also needed for heavy machinery and factories if your manufacturer locally/globally. It's needed in all aspects of the economy from homes to schools to hospitals to government, without it the nation not only goes into dark age but no power means the economy stops. No economist can overlook this key lifeline to ensure they measure what sort of energy output is needed to support the market and it's future economic growth indicators needs to answer electricity growth at the same time, as one with the other is not possible.
3. Comms infrastructure is also needed like telephone-internet as most business-trade-work cannot happen without Communication infrastructure in place and it's coverage level has to be high at all times in the market
4. Water which is always needed not just for farming-livestock but urban water needs for cooking-drinking-showering, etc.
5. Banking infrastructure that sits n monitors market and supports the borrowing n lending of local ventures to create start ups and increase employment and create supply chain net effect thru growth in services and employees responding to new start ups
Roads-Ports-Airports-Comms-Water-Bankingthis sits right at the top of any economic model as 'infrastructure' for the market place. Govt sits above it and directs policy/taxation/regulations into those key areas so the peopleand market can grow and develops in these huge people employing industries as hospitality-cafes-restaurants-shops-trades-professional-technology. It also watches rural sectors fishery-livestock-farming to ensure production continues but this is linked at all times to urban market consumption and global market consumption so in order for them to incease rural activity it has to be justified locally and globally which need someone to 'scan' the market locally/globally for less 'supply chains' the rarer the supply chain the better the returns, once the supply chain is to much, the production of that economy is going under 'derivative valuing' which is not on the producing economy benefit.
So the economic philosopy that is quite standardly accepted is consumption need to increase for production to be warranted and justified and the only way to do that is thru investors-govt linking up and identifying the industries and the govt preparing the workforce thru good education facilities or else that is govt problem not an investor one as the human capital is missing for any investment decision. Taxes-regulations are only secondary matter and where me and Teeri differ as I prefer a more employee policy to ensure growth in the middle as he feels no restrictions is needed and market will adjust itself, where-as I have yet to see any demonstration of that. Having the wealth to high and closed off to 1% doesn't incease consumption. He won't need to buy a house-vehicle-increase his spending-utilities dont grow either he wont pay more then once across every industry, where-as a middle engine will pay across every single industry and hence creating growth for other businesses and allowing for new ones to begin operation as the consumption is increasing.
Consumption = Production and then within the consumption market you want 'strong spending power' now 'weak one' and this depends on that human capital and if it's factory 2 dollar a week worker or highly skilled rare in the market worker. Skilled and Unskilled employee will determine their spending power and hence will dictate over-all economic indicators, if that base doesn't specialize and develop a skill in market need and rare, the returns are not on the host nation side but on the investor side only.
Tourism-Oil-Gas-Gold are only 'secondary' industries it doesn't generate much employees or is seasonal and or ends up like an 'ogligarchs' economy and dead market since they are not going to spend more then once in each industry is quite consistent since their wealth pool is to small n contained to a few not spread to the many to warrant business response or investment and why socialist policy is the most 'logical' stance to take and create regulations around that purpose is paramount or else an ogligarchy is emerging from unrestricted market
