Economic Growth and Sustainable Development

For years, easy money, printed in large amounts, flew from developed countries in form of “investments” towards the so called “emerging markets”.  A sort of trickle-down effect to balance the economic and the financial situation in the largest countries in the world. However, this also means investors and big brands are taking profits of the lack of regulations in the emerging countries. Therefore, save money on the workforce that does not have the same rights and stipends of the western workforce. This puts the workforce into a competition where wins who is accepting the lowest stipend and renouncing to the most privileges (and sometimes rights). But, it also means that companies are trying to grow by saving money on stipends instead of increasing their production efficiency. Consequently, this is a short-lived approach, in few years when the economic fundamentals in the emerging markets will improve, those companies will have to migrate to other countries and find fresh work-force to exploit. Unless factories start operating on a boat and keep moving towards cheap labour, this trend has to change. I believe that soon we will start seeing an effort towards highest efficiency and quality by automatising production. Unfortunately this may lead to further loss of jobs as robots will replace the already cheap labour. I know this may sound a little futuristic but I believe we will see this happening in few years. From an investment point of view I think robotic and microelectronic companies will do really well, no wonder google is already buying few of them.

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