Wealth of the Nation: The Missing Links Wealth of the Nation: The Missing Links Suvit Maesincee.

Wealth of the Nation:Wealth of the Nation:The Missing LinksThe Missing Links

Wealth of the Nation:Wealth of the Nation:The Missing LinksThe Missing Links

Suvit Maesincee

The Rich Nations No Longer Dominate Global Production

* At purchasing power paritySource: The Economist Jan 21st-27th 20061820 70 1913 50 73 2005

Share of Global GDP* %

Emerging Economies

Developed Economies

The US and Britain took 50 years to double their real incomes per head

Today China is achieving that in a single decade

25

50

75

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

Asia

Non-Asia

Total = 45%

Source: The Economist December 2th, 2005, investaustralia.com

0

20

40

60

80

100

China

Other Asia

India

Japan

USA

WesternEU

Rest of theworld

Total

Three Clusters of Nations

Political Disorder Mature/Stable Liberal Democracy

Mature/Stable Market Economy

Stagnant/ChaoticEconomy

Source: Modified from Tanaka Akihiko

SufferedEconomy

SufferedEconomy

SurvivedEconomy

SurvivedEconomy

Sustained Economy

Sustained Economy

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

In an Era of Globalization, a Healthy Economy Relies on Ability to Build Stock and Managing the Flow

Man

agin

g F

low

Building Stock

Low High

Well

Poor

Current Level of Stock

New Level of Stock

Wealth of The Nation Redefined

Wealth of the Nation =

Opportunities Strategy CapabilityX X

Openness Attractiveness CompetitivenessParameter


Openness

Attractiveness

Global Forces & Trends

Global Forces & Trends

Nation’s Competitive Position

Nation’s Competitive Position

CompetitivenessNation’s CompetitiveAdvantage

Nation’s CompetitiveAdvantage

• Opportunities• Threats

• Value Creation• Differentiation

• Strengths• Weaknesses

Assumption About

Environment

Assumption About

Scope of Business

Assumption About

Competencies


Openness

Attractiveness

Competitiveness

Scorecard

• Free Flow of Goods & Services• Free Flow of Capital• Free Flow of Talents

• Business Attractiveness• Geographical Attractiveness• Cultural Attractiveness• People Attractiveness

•Comparative Advantage•Competitive Advantage•Competencies

Parameter US IndiaJapan Thailand

X

XX

XXXX

XXX

X

XX

XXXX

XXX

X

XX

XXXX

XXX

X

XX

XXXX

XXX

US India

Japan Thailand

Openness

Attractiveness Competitiveness


Openness


Openness


Openness


Wealth of the Nation--The Missing Links

Globalization

SustainableDevelopment

SufficiencyEconomy

Wealth of the Nation

PeopleCentricity

Desired Wealth of the Nation

Competencies

Competitive Advantage

Nation’s Competitiveness

People

Company

Nation-State

Nation 1 Nation 2 Nation 3

Nation-State

Company

People

In the Past

Vertical Tie-Up

Horizontal Free-Up

• Vertical Free-Up• Horizontal Tie-Up


From Now On


Nation-State

Company

People

• Vertical Tie-Up• Horizontal Free-Up

GlobalizationGlobalization


Nation-State

Company

People

From Now On

e.g. Korean Wave

e.g. iPod

e.g. OLPC

• Unilateral• Bilateral• Multilateral


Nation-State

Company

People

Issues

• Local• Regional• Global

• Privatize• Commonize• Socialize

From Now On

People is the Key Development Energy for People is the Key Development Energy for the Nation’s Wealth Building in the 21th Centurythe Nation’s Wealth Building in the 21th Century

Empower People

Liberalize Potentials

Pursuit to Prosperity

People-Centric Development

Strategy

• Invest in People• Equal Opportunities• Entrepreneurial Culture• Distributed Creativity• Peer Production• Democratization of Information

EmpowerPeople

LiberalizePotentials

Pursuit toProsperity

Enabling Environment

Competitive Landscape

People is the Key Development Energy for People is the Key Development Energy for the Nation’s Wealth Building in the 21th Centurythe Nation’s Wealth Building in the 21th Century

• Optimal Openness• Attractive Sector • Dynamic Enterprise

• Predictable Environment• Macro-Stability• Infrastructure• Institutional Framework• Intelligence

• Smart People

• Citizen Centric Government

• Open Innovation Economy

• Knowledge Based Enterprise

People Centric DriversPeople Centric Drivers

Facilitation

Empowerment

Authority

Regulation

Citizen Centric Government

Open

Public Domain

Proprietary

Closed

Open Innovation Economy

Network

Skill/Speed

Scale/Scope

Hierarchy

Knowledge Based Enterprise

Innovational Task

Blindly Repetitive Task

InterchangeableSkill

Smart People

Non-Interchangeable

Skill

People Centric Wealth System

Competencies


Nation’s Competitiveness

PeopleCompanyNation

• Capability• Integrity• Energy

Human Capital

SocialCapital

• Cohesion• Co-Creation• Co-Prosperity

Sufficiency Economy is the Foundation for Sustainable Development

IndividualSufficiency

Intra-Community Collaboration

Cluster/ InstitutionFormation

• Increased Income• Reduced Expenditure• Savings• Decreased Unproductive Habit• Initial Collaboration

• Extended Collaboration• Community-based Intelligence• Community Development Plan• Emerging of Basic Community- based Enterprises

• Cooperatives• Community-based Enterprises• Community Business

Sustainable Development


Human Capital

SocialCapital


CorporateSufficiency

Intra-Industry

Collaboration

Cluster/ InstitutionFormation

• Increased Income• Reduced Expenditure• Savings• Decreased Unproductive Investment• Good Governance

• Local Collaborative Network• Industry-based Intelligence• Industry Development Plan• Emerging of Industry Norms and Practices

• Global Collaborative Network• Regional/Global Enterprises• Competitive Cluster

Sustainable Development

Sufficiency Economy is the Foundation for Sustainable Development


Human Capital

SocialCapital


People Centric Wealth System

Competencies


Competitiveness

People

Company

Nation

Transparency

Good Governance

Integrity

Dynamic

Strategic Intent

Energy

Wealth of the Nation Redefined

People Centric ROI =

Return on Intellectuals

Return on Integrity

Return on Intention

Capability

Integrity

Energy

Human Capital

+

+

The Links to Nation’s Wealth Building




SufficiencyEconomy

SufficiencyEconomy

Conflict VS. Complement

Promote VS. Block

Cause-EffectVS. Coincident

Sufficiency Economy as a Root of Nation’s Wealth Building




SufficiencyEconomy

SufficiencyEconomy



PeopleEmpowerment

PeopleEmpowerment

Wealth of the Nation: The Missing Links Wealth of the Nation: The Missing Links Suvit Maesincee.

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Transcript of Wealth of the Nation: The Missing Links Wealth of the Nation: The Missing Links Suvit Maesincee.