On the World
Observation / Economic Strategists
NEVATHIR
November 6, 2018
Globalisation and market structure produced global oligopolies like CPU/GPU vendors and machinofacturers, web search engines, social networks, and OS for modern surveillance gadgets. The market power of global oligopolies makes owner nation's economy considerably stronger with edges ranging from technological leadership, network externalities, partisan legal/regulatory protection, to raw benefits derived from capital ownership.
Since the number of nations is much greater than the number of global oligopolies in a given market, the nationality of these oligopolies often reflects economic strategists' national design, rather than the workings of free-market capitalism. South Korea, Taiwan, and China became Silicon Valley's powerful allies not because capital favored particular nations, but because these nations favored particular forms of capital, often to the extent of winner-take-all.
If the ownership of global oligopolies and national economic power much depend on the mastery of economic strategy, it's wise and reasonable that successful nations embrace great economic strategists against foreign competition.
Others that overlooked economics witnessed national wealth eroded by inflation, real GDP weakened close to stagnation, or people's prospects crushed under the tyranny of crony capitalism or authoritarianism. The fight against poverty was largely successful, but the global struggle for social-economic status left many aspiring nations in dystopia.
Not to raise the standard for success too far above decent levels, the history of Taiwan Economic Miracle that produced TSMC, Foxconn, Largan Precision Co., Ltd., etc., though less glamorous than Samsung or Microsoft, provided great examples how a nation may not only elevate itself out of poverty, but also provide good life for mass employees, shareholders, and supply chains.
Technology and machinofacture partnership with USA under well-architected industrial parks with great infrastructure and human capital certainly made enormous strategic sense during the Cold War. The strategy allowed Taiwan-made products to outcompete rivals on global markets with excellent quality.
Ironically, strategic successes were quickly downplayed and gave way to the success stories of genius corporate directors and executives for popular anchoring. Great businessmen and businesswomen deserve every credit, but belittling economic strategists proved short-termism for Taiwan uprising compared with prospering South Korea, Hong Kong, or Singapore.
Once global oligopolies are established, it's extremely difficult for outsiders to enter the challenge that requires tremendous production capacity, technological leadership, and great talent pools. Belittling economic strategists costs long-term sustainability for corporations like Acer with mediocrity for decades. Great businessmen and businesswomen became known to be not that great, for the public, a situation great businessmen and businesswomen would like to avoid at formidable cost.
Taiwan Economic Miracle could not have existed without great economic strategists that people began to forget about. The future of economy depends on the wisdom of society.