Accelerate Your Socio-economic Development: An Eccentric Bi-Circular Model and Solution

Monthly Journal of the Sharjah Chamber of Commerce & Industry, pp. 36-38, April 2000; pp. 44-48, May 2000; pp. 43-44, June 2000; pp. 42-44, July 2000

59 Pages Posted: 23 Feb 2004  

Viswanatha Sankara Rama Subramaniam

Intellectual Consultants

Abstract

PART - 1: BACKGROUND TO DESIGN A MODEL

Backed by my assignments with international Socio-Economic development institutions, and accredited scholarly associations, I developed a thirst to design a practical model to accelerate the pace of development of the third world nations.

The world is divided into many categories, and the prime classification is the Economic bracket, as Developed or Developing or Under developed. In the history, we are yet to see a country in the developing and under-developed category, moving upward into a developed category.

This stagnated condition of the world nations was correctly identified and questioned by the Nobel Laureate in Economics (1979), Sir. Arthur Lewis (1915-1991. St.Lucia/UK. Princeton University, New Jersey, USA) as Is the dependence of the developing country world growth on that of the developed world inevitable?. Using this question, as a base, this paper is prepared and presented in two parts.

As described by the Nobel Laureate, the constraints on a break-even growth of the developing world are, their rate of population expansion, non-homogeneity of their industrial infrastructure, competition versus their economy of operation, and low demand for raw-materials among themselves.

Part-1, is providing adequate background to develop a model towards an Economic Management guideline, to make this linkage more eternal than inevitable. This part comprehensively attempts to identify the factors to create a pre-condition to overcome these constraints among the developing world.

The starting strategic approach is to strengthen the inter-group relationship, through the development of social infra-structure, in order to utilise their productive capability. Then to smoothen the inter-country differences, through appropriate techno-commercial upgrade, in order to improve their linkage, and co-operative efforts.

Social infrastructure is developed through an upgrade in tangible economic satisfaction, and intangible social comfortability of individuals, to motivate domestic savings as well as to improve the quality of domestic human potential, which cumulatively contribute towards the national development. The techno-commercial infrastructure upgrade is achieved through methods to promote domestic investments and domestic technology. Both these are maintained and monitored by the optimum infrastructure mix.

From a productive angle, Gross National Product is an aggregate of each national sector products, which is the net of their resource productivity and the productivity constraints. Techno-commercial systems assist to reduce the effects of these constraints, develop the technology, and optimises the resource utilisation. These aspects in turn, create cost/wastage reduction, remove excess holding, reinvestment opportunities and motivate domestic innovations and skills.

But, these logical steps are vicious to implement. Hence, it is necessary to simulate a mathematical model, solve and interpret the results into implementable decisions. Through these inferences, this paper provides a lead to Part-2, for designing a mathematical model and its solution.

PART - 2: MODEL DESIGN AND SOLUTION

Backed by my assignments with international Socio-Economic development institutions, and accredited scholarly associations, I developed a thirst to design a practical model to accelerate the pace of development of the third world nations.

Part-1 provided a lead towards creating the pre-conditions to solve the constraints envisaged by the Noble Laureate (1979) Professor Arthur Lewis (1915-1991. St.Lucia/UK. Princeton University, New Jersey, USA) in his Noble prize paper in Economic Science, towards the possible de-link of the growth of developing countries from that of the developed world. The strategic preconditions identified were the infrastructures, made up of intangible Social Comfortability and tangible Economic Satisfaction. Smoothing the inter-country difference is possible through a Techno-commercial normalisation, to optimise the resource utilisation, limiting the constraints, and balancing the Sector Productivity in a Micro level. These fine tuning is expected to promote domestic savings through group motivation and cost reduction, and pave way for domestic investment leading towards productive environments and strengthening of the domestic technology.

These in turn promote local innovations, research and development and domestic skill optimisation. But the implementation of these steps assumes a vicious dimension. Hence a mathematical modelling, simulation of the situations and solution interpretation should be followed.

In this part-2, the model is developed in the form of two intersecting circles, one linking the domestic savings with the domestic investments, and the other linking the domestic human potential with the domestic technology. The former representing the external entrepreneurial activity is designated as Exogenous, and the latter involving internal productive activity is designated as Endogenous. A geometric approach is used to solve these two intersecting circles, aiming towards the central objectives, namely, integrating the Exogenous and Endogenous aspects, upgrading the socio-economic status, and enlarging the qualitative and quantitative outputs.

The inference derived from the geometric solution indicate that, the attempts to accelerate the pace of socio-economic development should be to encourage equal efforts in both the domestic investments through domestic savings, and utilisation of domestic skills for the domestic technology, updating towards the latest world developments. This will synchronise the Endogenous and Exogenous aspects of socio-economic development, at any given level. Any attempt to upgrade the existing Endogenous aspect only or Exogenous aspect only, is bound to create an unfavourable disturbance in this synchronisation, and it should be immediately re-synchronised. The qualitative and quantitative dimensions of the economy could be improved by expanding the operating dimensions in the Endogenous and Exogenous aspects, in equal magnitude.

The past and current experiences of the developing and the developed world support this model solution.

This model development and solution process has attempted to provide enough reasoning, to the philosophy and methodology to accelerate the rate of Socio-economic development, in line with the remarks by the Greek mathematical philosopher Pythagoras, whose geometric concepts are used in this paper. Also this is a pioneer attempt to use the Geometrical methodology, which according to the English philosopher Thomas Hobbs, is the only science to please the Gods to bestow the best on mankind, which could be nothing other than an accelerated Socio-economic development. Since the total approach is based on strong foundations and practical experience guidelines, it should be applicable to the development criteria for all the nations in the world, and establish an ever-lasting Peace and Prosperity in the new Millennium.
==========================================================================
CONCEPTS DERIVED:

01. DOMESTIC INVESTMENTS THROUGH DOMESTIC SAVINGS - EXOGENOUS CIRCLE. (INDIVIDUAL/CORPORATE/GOVERNMENT, EVEN THOUGH FOREIGN TO START WITH)
02. DOMESTIC HUMAN POTENTIAL TO MAN THE DOMESTIC TECHNOLOGY - ENDOGENOUS CIRCLE. (LATEST TECHNOLOGY MODERATED TO SUIT LOCAL ENVIRONMENTS)
03. SYNCHRONISE EXOGENOUS AND ENDOGENOUS CIRCLES & OPTIMISE THEIR DIMENSIONS.

Universallly Applicable to All Developed/Developing/Under-Developed Nations.

(These Concepts and the Inferences are supported with a number of Geometric derivations, Bibliography, Diagrams, International Experience supports, Opinions of the viewers, Schematics and Slide show in the Author's Website.)

Keywords: Social Development, conomic Development, Development Acceleration, Geometric Model

JEL Classification: A13, B41, C51, C52, C61, D78, F43, M21, O11

Suggested Citation

Subramaniam, Viswanatha Sankara Rama, Accelerate Your Socio-economic Development: An Eccentric Bi-Circular Model and Solution. Monthly Journal of the Sharjah Chamber of Commerce & Industry, pp. 36-38, April 2000; pp. 44-48, May 2000; pp. 43-44, June 2000; pp. 42-44, July 2000. Available at SSRN: https://ssrn.com/abstract=483104

Viswanatha Sankara Rama Subramaniam (Contact Author)

Intellectual Consultants ( email )

Alwarkurichi
Tirunelveli District
Tamil Nadu
India

HOME PAGE: http://drvsrs.com/store/page1.html

Paper statistics

Downloads
133
Rank
176,720
Abstract Views
2,192