tag:blogger.com,1999:blog-7930474554560608100.post5071512565871705715..comments2022-03-24T08:17:52.047-07:00Comments on Pandu Nayak's ruminations: Rising Above the Gathering StormPandu Nayakhttp://www.blogger.com/profile/13339144742641325684noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7930474554560608100.post-90529362160784608392007-08-26T09:15:00.000-07:002007-08-26T09:15:00.000-07:00a few thoughts:- creative destruction is fine as l...a few thoughts:<BR/>- creative destruction is fine as long as the creative process serves the same people the elements of whose economy it destroys. as a result of destruction "money can be freed up and directed to more innovative ones" but if those innovations happen to be halfway across the globe, the pain of destruction is not offset by the benefits of creation, at least not within the borders of a country. <BR/>- the four recommendations don't seem to address the challenges posed by globalization. is it ever good for any economy to downplay the importance of sound fundamental education? to suppress innovation? to reject talent? i'm not saying that these recommendations are bad; they simply don't address the core issue.<BR/><BR/>let me offer an alternative view:<BR/><BR/>firstly, i don't believe that globalization is a recent phenomenon. <BR/><BR/>- the forces of colonialism fostered their own brand of creative destruction, the destruction coming at the expense of the colonized, the benefits of creation going to the colonizers. <BR/>- in more recent decades, the economies of america, western europe, and japan have grown to benefit from the existence of each other. the forces of creative destruction have helped strengthen each of these economies over the past century by spurring the pace of innovation among them. <BR/><BR/>the key change in this picture has been the suddenness of the arrival of huge players like china and india. because of the opening of these economies, capital released by destruction in western economies has flown across borders to find new homes on the other side of the globe. <BR/><BR/>the violence of the resulting changes has come to resemble the effects of a dam-burst. releasing the pent-up energies of 2.3 billion people is bound to rock things severely. i would go so far as to venture that some changes for the worse (from an american perspective) are irreversible. the global economy has to find a new equilibrium. i won't claim to know what the world will look like when all this shakes out but i don't see any startling insights in the recommendations from the national academies.narayanhttps://www.blogger.com/profile/11425282019153096667noreply@blogger.com