About economic development

The starting considerations are relevant to the history of the economy:  over the centuries, we can see the transition from a subsistence economy to an economy of accumulation and eventually to an economy based on  consumption; we must now create an economic system that balances the needs of consumption and investment.

In addition, in some historical periods, we had a local view of the economy while in other times there has been a wide interdependence of the various economies througout the world : the world since the second half of the nineteenth century until the early twentieth century was no less globalized than today’s world, and probably the same can be said for the Roman Empire from fist century before Christ to the second century after Christ. It is now essential to achieve integration between the local dimension and global dimension.

Some further considerations and details:

1. The evolution of economic systems based on the integration of the local economy and the global economy, in the long term, makes essential to adopt appropriate land management tools and standards that help to provide, manage and adjust, if necessary, the market mechanisms.
2. Today there are mathematical tools (quantitative methods, statistics, etc.) and information systems that allow quite a complete knowledge and availability of all the information and data related to an economic system.
3. The same tools allow various calculations and simulations that can enable us to prepare ourselves so we can react in the best way to unforeseen events.
4. As regards the infrastructures or other capital projects, it is possible to create an integrated information system, based on shared data, and a series of management protocols that use the information system itself. In this view we can manage the project as a system, minimizing the costs of uncertainty.

In conclusion we can say that:

1. it is required a transition from a short-term vision (whose upper limit is the electoral cycle, four to  five years) to  medium-term (corresponding to the duration of human life) and long-term vision (that takes into account the permanent interests), in a perspective of centuries and not years.
2. Today, unlike in the past, there are information, management and control tools that allow us to also address long-term problems in a rational manner. The enormous capacity of information systems and communications network can and should be used for human development in all its aspects.
3. On the other side, we must nor forget that the “black swan” is waiting for us. We must be prepared to react properly to any unforseen event, that can have either positive or negative implications.