“The developed countries can only hope to maintain their standard of living, their standard of education, their leadership position, if they put to work productively the only resource in which they have a distinct advantage: their ability to keep young people in school for long years and to qualify them for knowledge work
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For the standard of living of the developed world can also be maintained only if it succeeds in mobilizing the labor resources of the developing world...”
Author Peter Drucker in his book (Drucker, P., Managing in Turbulent Times, New York, Harper & Row, 1980) put it very clear:
Once I read that, I cannot be precise, (it might have been second half of 1980s) I wrote in a piece of paper and pinned to my wardrobe. Then I looked at it and tried to discern:
How a young man from the developing world could take advantage of this?
Well, I decided to work for multinationals in the developing world.
That was totally contrary to Indians, Eastern European and Asians moving to the developed world.
I mentioned in the old thread "tax payer importation"
There will be a stamped to the emerging markets by people from the developed world.
What we have witnessed in the past decade or so: Americans moving to the Caribbean and Central America and Europeans going to Thailand is nothing compared the diaspora that is yet to come.
why that?
Unless rates rise to around 4%, which nobody is expecting over the rest of this decade, many pension plans will struggle to honour their obligations...The world’s six largest pension saving systems — the US, UK, Japan, Netherlands, Canada and Australia — are expected to reach a $224tn shortfall by 2050, a study by the World Economic Forum found in May. This figure included corporate, public and individual pensions.
There are big implications to this situation that will develop in the next 3 decades:
Implication Nr. 1. The contributions one pay today, is not put aside to wait for you to retire. It is spent straight away paying the pensions of those who are retired. Now for the worry part: If there are lots of robots doing work by around 2050 you should note that robots do not contribute to a pension fund.
Implication Nr. 2. If interest rates are not likely to climb, how will governments will cover the underfunded pension schemes? Probably by Quantitative Easing. Which in its turn lead to lower interest rates.
Implication Nr. 3. Your average politician is not going to bring this discussion to the table to the average member of his electorate. That means the average citizen will discover his fate when it will be too late.
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