Development

Transforming value chains: competitiveness, inclusion, environmental protection

Some people claim that value chains are the way they are because there are no other ways of structuring and functioning. This does not correspond to reality as value chains emerge from a number of factors that change with time and evolve according to the relationships that are established among the diverse involved actors. As it is often the case, the best positioned actors impose their interests to the rest expressed in the way the chain they lead is structured and functions. That there are no better options is a falsehood installed to discourage transforming attempts.

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Do not run after concentrated savings; de-concentrate them and enhance its allocation

A critical factor to boost economic development is the magnitude of national savings and its allocation. When those savings flight out of the country or turn to financial speculation, their capacity to propel national production gets sterilized. In addition, if the savings that remain in the country concentrate in financing powerful actors while deferring the rest, the result is a burdensome underutilization of the national productive potential. Solving this situation requires adjusting the approach strategy: it does not help to run behind concentrated savings but instead de-concentrate them, retain them within the country, and enhance its allocation.

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The power to impose

In the global, national, or local markets, the most powerful actors subordinate the rest to their own interests: big ones abuse the medium-size ones, the latter abuse small ones and almost everybody the planet. Abuses are not occasional incidents but a foundational part of a merciless and destructive way of functioning based on the power to impose.

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