The world's greatest economic event is happening three times faster than history
In short: We are currently witnessing a shift in global industrial power that dwarfs the Industrial Revolution. This transition from West to East isn't just a trend; it is an unprecedented transformation of two-thirds of the human population, creating a 'supercompetitiveness' that threatens the stability of traditional Western economies.
Professor Douglas McWilliams argues that the current industrialization of emerging economies represents the most significant economic event in history. When measured against the Industrial Revolution—the previous benchmark for global change—this modern shift is estimated to be nine times more widespread and occurring three times as fast. This velocity creates unique policy challenges because it places extreme pressure on the trading performance of established Western nations, particularly those already struggling with economic instability. McWilliams uses the United Kingdom as his primary case study for these observations. However, he notes that his conclusions apply equally to other European nations. He also suggests these findings are relevant to the United States, albeit to a lesser degree.
To maintain competitiveness, McWilliams suggests that Western economic policy must pivot toward two specific constraints: inflation and cost competitiveness. The goal is to break a 'dangerous cycle' currently affecting weaker European economies by targeting these pressures directly. This strategy is framed within the context of a massive demographic shift where two-thirds of the world's population is moving from starvation to moderate prosperity, fundamentally altering global demand and supply dynamics. This lecture was delivered on January 24, 2013. It serves as the fourth installment in a specific series of talks. The presentation builds directly upon three preceding lectures given by the professor.
A critical component of this transition involves the supply of primary resources like minerals, food, water, and energy. While experts suggest that supplies will remain sufficient to meet global needs, the pervasive nature of new industrialization means higher real prices will likely be required to fund necessary investments. Specifically, minerals are expected to see significant price increases. For Western economies to survive this 'supercompetitiveness,' they must navigate a world where resources are abundant but increasingly expensive to extract and distribute. Technical experts were consulted to analyze the outlook for these essential commodities. Their findings indicate that energy might be the only resource not subject to inevitable price hikes. This analysis confirms that higher costs are necessary to justify required infrastructure investments.
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Sources
- Summary by Intellect · source: How to make Western Economies more Competitive - Professor Douglas McWilliams
- Also: How to make Western Economies more Competitive
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