An important aspect of analyses is the view to the past. The shortest view we can have is 5 years back, when an estate bubble cracked in the USA. Bubbles were there also in the past, however, in this case we were the witnesses of a huge accumulation of funds in one part of economics with any carefulness of connection of big companies to the units with greater savings, greater market possibilites, greater control and at the same time with potential of big problems.
Every inharmonic part which occurs in economics results in the wave of events which are beside the normal. The result of such doing is that nobody expected, that something like this can crash. Why did it happen so and what parallels do we have to the future?
At first, we have already lived in the world of virtual reality for a long time, where money has a value which is not covered by gold or other tangible valuables. Secondly, people stopped thinking about the fact that one plus one are two. The present American business model booms, it enables to run a business on the land in the USA again, it is not necessary to export work abroad. A weakening American dollar helps to all of this because it enables to export the products with added value. High level of flexibility of American economics gives it a comparative advantage against the neighbouring world. Changes are happening there by speed of light.
Europe is afflicted by the sluggish structure of euroofficers who, as it seems, can decide neither fast nor right. The problems of countries such as Greece and of the whole rest of south Europe should already be solved long time ago by bankruptcy and the help which we have already “pumped” there several years should be invested to the meaningful projects for development of business and services, mainly in small and middle business sectors.
Why is it not so? Because such decisions are not popular. Because mentioned officers would not be sitting on their chairs. In other words, nobody is able to accept their responsibility rate for the thing that
is necessary to do.
Focus on young people should be a priority of the current power tops which in total blindness do not solve the reasons of high unemployment rate and do not rouse the interest of young people to work. Regulating and designing of prospective work possibilities should be one of the most important points of governmental agencies in the future. The present young generation is not dull, they only do not see the perspectives in things that are happening around us.
If we look detailed at the timing of changes in the USA and then at the steps accepted by the EU, we are finding out that the expected changes are approximately 2 or 3 years delayed. Even if so little would be sufficient. It would be enough, if an authority put in charge of the decision making would be more active and the bureaucratic officers would be replaced by young ambitious people.
Slovakia as fully integrated EU country does not have a chance to proceed differently from the EU rules. However, it is necessary to realize that in spite of that, we are the part of a large unit and it is necessary to look for common ways of problem solving in the framework of the whole union. Even the small member can change the direction. It needs, however, full sui juris and responsibility.
The integration of local economies in the framework of the whole means respecting the growth and at the same time also eventually decrease in the demand. Slovak economy which is significantly dependent on automobile industry does not have a chance in the future for real GDP rise on prejudice of investments, which we have in the country today. Manufacture of products which work is not with high added value is whenever relocatable to any country in surrounding. Our direction should go the way of own products with added value so that we do not have to be attacked by price war of competition.
We are a small country. It is hard to win recognition outwardly as well as internally. However, chances which we have are big. Let’s have a look at the Swiss. Their economy is for long decades healthy and flexible. What about following them? They make outstanding and unique Swiss watches, so well-known in the whole world and practically without competitor. Swiss chocolate is well-known on all continents, Swiss banks are well-known whereever in the world and many other products too.
Trends which we are expecting: a gradual relocation of cheap and low qualified production to countries with lower added value, stabilization of labour market and realization of high performance projects connected to skilled labour forces in the framework of EU. Geographic changes in economy will be very strongly influenced by global weather and changes which are waiting us in the nearest decades. We are convinced that very important point of the future development of separate economies will be the handling of production and cleanness of agrarian sector. Foodstuffs and their cleanness will be the highest priority.
“Slovak economy which is significantly dependent on
automobile industry does not have a chance in the
future for real GDP rise on prejudice of investments,
which we have in the country today.“