Saturday, July 01, 2017

The value of ideas: Individuals above the state

France has started out a new Government. But it is not the usual "in " and "out" kind of replacement , which take place regularly in that country.As far as the latest news report, both the traditional left and somehow the traditional right, lose huge amount of votes and legislators, to make them both a secondary forces within the political landscape.A whole new set of ideas has arrived to the Elysee Palace. France like most of the key European countries, has been known for its particular approach to the welfare state solution.More so, in the case of France at the time of the unique currency , the Euro which depend upon market flexibility and a complementary public policies to support both as much as social needs, as business framework at the same time, to get gains in productivity and competitiveness,which no country in the euro zone can progress without. Germany understood this in 2003, when Chancellor Gerard Schroeder was in charge of Government and implemented key reforms, heavily critized at that time, but making a turning point for the welfare state approach which have been fully validated years later with the lowest unemployment .Thus, unemployment in Germany; seems to be less than a problem, keeping in mind the skill of Current Government to stay the course.- The value of such reforms, very alike to the approach of former President of Spain Felipe Gonzalez in the mid seventies ,while getting his country ready for being accepted in the European economic community; were that in both cases, it came from leaders who made their way to government againts the idea of market flexibility , the role of incentives for improving competition, and about markets power to créate wealth, well above the ability of the State to do so. Markets strenght and free Enterprise to créate wealth, are not a new idea, but it is that european countries embrace it to keep the pace of prosperity. France has arrived just in the right time, to join such a formidable forcé already in march .- But what are the real new ideas to count on?.The world is moving toward the technology age, side by side with knowledege , wide spread information to make decisions, and different requirement for human capital to have more flexible labor skills. The multipurpose labor forcé requirement ,cames out directly from the incresing role of automatization, robotics and fast changes in market conditions, which do not left too much time ,to look for ways to keep innovation driven cost, in balance. Innovation, creativity, value added do not come out from the state anymore, nor from its protectorate status.They comes out from motivated individuals, who believe in what the can look for, because opportunites are available as long as they seek for them, given their talent endowment . The rule seems to be to adjust the State to open up the path of opportunities,which otherwise are hiden from being taken.- What it is new, is the more active role individuals have in their personal lifes.Social network has increased connectivity ;such as to make old Government programs and policies to be part not only of the constraints for the economy to be more competitive, but also for individual to be themselves.- How come that in Latinamerica, we are still on the wrong side of the history concerning the role of the State?.How come that with such an old and outdated idea about the big State as the solution, some latinoamericans are at risk of losing their liberties?. Actually there are different problems and different solutions, which neither government nor the state, are capable of solving them on its own.