28. Activity Networking and Block Integration of the Economy

I like to compare the monitoring and control of the economy to a mighty ship passing through the drake passage!We have to leverage what we have with great effectiveness and efficiency to control this juggernaut to maximize our benefits.

One of the most important function in maintaining the health of the economy is the flow of money.

Consider how unfathomable and elaborate the infrastructure is in maintaining the flow of data in the internet– all the fibres, cables, switches and routers, satellites and servers etc., The underpinning major element is the hard wiring of fibre optic cables connecting all the internet-connected machines.

Consider how complex out human anatomy is and all the actions by a human, are coordinated by major systems like skeletal, muscular and central nervous systems. Out of all these constituent systems, consider how complex and painstakingly-detail are the designs of the central nervous system!

Consider how the water and sewage systems are designed for a major city in the current times. The network of pipes of various sizes, the pumping stations, treatment plants etc., are designed to operate with utmost efficiency with almost zero breakdowns and multiple fail-safe options.  

Consider how the electricity grid is operating to power a nation – how elaborate and detailed the national grid is, with almost zero maintenance and aiming 100% uptime for 24 x 7 x 365!

The flow of money has to be treated the same way to ensure that the fruits of a well run economy percolates to one and all and is not merely a tool to stratify the society on a class basis as haves/have-nots and the in-betweens!

The most efficient flow of money can be achieved when all the major forces involved act with the mind-set of an altruist with the motto– “Let all of us prosper and be happy”!

Who/What are these major forces? If I consider a fictional iron-clad/3-pillored (democracy, regency and theocracy) constitution, the following are some of the major forces

• ·       The national strategic objectives and goals

• ·       The central planning commission

• ·       The central bank

• ·       The ministry of finance

• ·       The banks and the banking network with their infrastructures – hard and soft

• ·       Controlling and monitoring units

• ·       Automations where relevant

• ·       Trying to be a 100% digital economy with transparency and integrity

• ·      A strong sense of guiding spirituality that espouses the virtues of a being selfless and showing compassion and good will – at both the individual and group sense.

• ·       Sharp operational focus on activities and blocks

  
  

If we double-tap on the last bullet point, we may come across more interesting observations that will enable us to achieve the larger-than-life goal of an economy whose running benefits all.

What is the scope of this exercise?

The scope can be the smallest realm of the nation that will receive strong focus under this economic program. It can be a borough or a major city or a district or a province etc. For each of this scope element, the nation has to commit its best resources that have the eyes for the details and for the process efficiencies/effectiveness. The resources can be the human powered roles such as block development officers (BDO), economic professors from local universities, financial experts, leaders of the major business houses, mayors, district collectors, corporators, MPs and member of legislative assemblies etc., Other resources include – infrastructures related to education, power, water, internet, security, residence, roads, parks and amenities besides good transport connectivities.   

What are the activities that we are talking about?

We are talking about the sum-total or SIGMA of all the activities that generate the local GDP. Please refer to my article (https://www.mayoan.com/economy/23.-importance-of-micro-entrepreneurial-activities) for some special considerations. These activities can happen in –

• ·       Major organizations

• ·       Local business houses

• ·       Local SMBs

• ·       Food establishments

• ·       Micro ventures

• ·       Charity organizations

• ·       Local banks and financial institutions

• ·       Schools and universities

• ·       Health institutions

• ·       Etc.,

What is the baseline study needed?

Before we attempt to improve any system, we need to base line it with some fundamental parameters and then chart out the as-is and to-be courses. Please note that the journey may also have many intermediary to-be stages.

Some of the fundamental parameters can be:

• ·       Employment data

• ·       Salary data

• ·       Job class data

• ·       Population distribution data in the various job classes

• ·    Data on revenue and spending for systemically important institutions and the major nodal organizations

• ·      Data on the sources and deployment of funds from the actors of the local economy with a focus on decent coverage of local interests

• ·     Flow of money in the local economical context (instead of money flying out directly to more “important” destinations)

• ·      The powerhouse sectors/industries/organizations/shops& establishments and its analysis in the local economy

• ·      Data on local residency and floating population

• ·      The role of corporate social responsibility and its importance

• ·     Government guidelines and other performance data to suggest helpful guiding tips to improve and/or aid local businesses (KPIs, KRIs and KCIs expected to be shown in visual dashboards and in other modes that get more visibility)