(This is the first instalment in a series on the trends that
led to the present financial crisis)
1. We all believe that the great
economically developed countries achieved prosperity through their genius in
economic management and their skills in business. They are also seen to be able
to govern their countries well.
2. They had developed various indices to indicate the level of prosperity they
had achieved. And gleefully they compared these indices, especially per capita
incomes and Gross Domestic Product, with those of the poor countries, to show
how competent they were in the management of their economies. The poor are poor
because they did not learn how to manage their countries. They should be
regarded as failed states.
3. The claim by the rich that they were good in management and governance is
only partly true. They did produce goods, provide services and they traded
domestically and internationally. But their wealth from these activities is not
as big as they made out to be. If the per capita and GDP are based only on
these real businesses they would not be as rich as they claim to be. Certainly
the United States and Britain would actually be nearly bankrupt.