Difference between revisions of "Scenario 4- Innovation for the greater good"
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'''2011-2015'''<br> | '''2011-2015'''<br> | ||
In the beginning of 2011, the emotion across the world markets was gloomy. The second dip had hit the market and the fear was that Japanese episode of deflation and continued recession will recreate itself in the developed world. Governments in USA and EU were struggling to get the economy back on track. When the focus of the governments was on reviving the economy, on the other hand, the world was facing climate change disasters which were getting stronger year on year with little being done in this area. Many whistleblowers were drawing attention towards the nearing peak oil situation. Amidst these crisis situations, China was the new sun rising on the horizon. The Chinese government was disposing its vast reserves of dollars in return of investments all around the globe and yuan was appreciating steadily. The appreciating yuan in-turn was assisting US economy in making its imports competitive. The government in US and European countries was discussing and debating the new reforms and regulation that needed to be put in place for sustainable economic growth in future. After heated debates and protest by banking heavyweights, the government arrived at a possible solution. As a result, the developed world witnessed re-regulation of the financial markets, demerging of huge banks into its specialized components of retail banking, merchant banking and securities. The taxation laws and accounting rules were altered to clamp down on tax havens and transfer mispricing. The proposed policy reforms and restructuring was a splendid example of government led innovation towards building a sustainable society. <br> | In the beginning of 2011, the emotion across the world markets was gloomy. The second dip had hit the market and the fear was that Japanese episode of deflation and continued recession will recreate itself in the developed world. Governments in USA and EU were struggling to get the economy back on track. When the focus of the governments was on reviving the economy, on the other hand, the world was facing climate change disasters which were getting stronger year on year with little being done in this area. Many whistleblowers were drawing attention towards the nearing peak oil situation. Amidst these crisis situations, China was the new sun rising on the horizon. The Chinese government was disposing its vast reserves of dollars in return of investments all around the globe and yuan was appreciating steadily. The appreciating yuan in-turn was assisting US economy in making its imports competitive. The government in US and European countries was discussing and debating the new reforms and regulation that needed to be put in place for sustainable economic growth in future. After heated debates and protest by banking heavyweights, the government arrived at a possible solution. As a result, the developed world witnessed re-regulation of the financial markets, demerging of huge banks into its specialized components of retail banking, merchant banking and securities. The taxation laws and accounting rules were altered to clamp down on tax havens and transfer mispricing. The proposed policy reforms and restructuring was a splendid example of government led innovation towards building a sustainable society. <br> | ||
'''2016-2020'''<br> | '''2016-2020'''<br> | ||