Thursday, May 01, 2008

Decentralization

How does your Light shine in the Halls of Avarice? Thailand wants a Cartel of Rice, and the other major Exporters may be expected to go along, all in the interest of maintaining the current price of Rice on the World market; a Price which has tripled within the last year. My attitude says this is outrageous, but my economic sense states this may be one of the most advantageous economic options available to the World. It might do more to equalize Wage rates in the World, than any other effort attempted in the last decades. China, India, and Indonesia will obviously capitalize and modernize their Rice production because of the Gain to be realized, and the Philippines would finally drain and convert much of their Wetlands and Swamp to Rice production. The nascent Fertilizer industries of these nations would be quickly developed, and the disease-producing sections of Rice-producing Countries would adopt Drainage policies which would effectually control Swamp-borne diseases. The final real advantage could be bringing Agriculture back as a viable alternative to City-concentrated industrialization; a spread of Population back to the Land could be accomplished while maintaining the quality of life and opportunity for Residents.

My leave-taking from the operational Thought of this Post came easily after reading this article. The Theme immediately became the impulse of Decentralization currently in force throughout the economy. The major Drive behind this impulse resides in the failure of major companies to fulfill a Labor-generation facility. The major companies were simply not incorporating the level of Student cadres entering the Labor market over the past 30 years. Graduates perforce had to generate their own Work opportunities. This Necessity combined in recent years with the growing Costs of Transportation, maintaining a national Sales network, regional outlets of national networks being given greater autonomy, and the ease of Credit. Small business suddenly became the Wave of the Future. The Power continues because of the ability of Small Business to keep Operational Costs low. The main Threat to Small Business is an old Threat, which is the ability to keep Accounts Receivable current. It is the mainstay of their Credit foundation, and has yet to endure a severe Recession.

Small Business holds an advantage with its ability to quickly alter the Product line it offers, with a traditional orientation focused on the Product Necessities of the Consumer. Niche location is an important part of the Small Business Construct, where the new Entrepreneur can identify an unfulfilled capacity in their own Location. I am an Age-Disadvantaged Individual, else I might take a flyer at opening a new Bakery is my current small town, currently serviced only by formula Baked Goods provision of national Grocery chains. I have often contemplated the potential practicality of establishing a Salads Shop, where a variety of Salads (30, full Meal or a la carte with Speciality Dressings) would be constructed in both Individual and Family sizes as you wait (did you notice fat old men concentrate on Food ideas?). The major idea behind all Small Business must start with the Savings to be gained by minimization of normal Chain integration Costs. lgl

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