The degeneration of financial business is the dark side of the capitalism that had ups and downs since A. Smith shared his idea. After September 2007, a date that marked the beginning of the world crisis that is still ongoing, there wasn’t a real change in doing finance, but just the introduction of new regulations and restrictions to the financial markets, which have produced poor effects and even a negative impact (austerity); in some way, it looks like a dog eating the queue. It has been assumed to solve the world economy’s problems with financial engineering, keeping the technicality approach instead of changing the approach;under the circumstances it is hard to think to sort out from unemployment and poverty.
Two decades ago it has been campaigned the Globalization as a way to a prosperous world, although, at least in our view, the real question is what we call the “financialisation” of the economy, or too much liquidity floating around in search of off-shores instead of investing in the real economy.
From this point, there should be a move from Credit-Based Economy to Community-Based Economy, investing in the real economy and particularly in small-medium sized business, which are the backbone of countries’ economies and create opportunity and jobs; for more click FINANCIAL INCLUSION, Give people a job not a loan: https://www.amazon.co.uk/Financial-Inclusion-Give-people-loan-ebook/dp/B01ENJP37S/ref=sr_1_1?ie=UTF8&qid=1489340579&sr=8-1&keywords=financial+inclusion+ascanio+graziosi
The paradox of current trend in the emerging economies is in the fact that the financial providers are both undercapitalized and need to change the style of management.
We have proposed “JAMBO” FUND FOR AFRICA, which objective is twofold: provide assistance and money, the former without the latter being inconsistent. The FUND aims at pooling resources to finance viable projects: everybody says that! But, JAMBO will do it within the UN Agenda for SDGs and in the framework of Basel III Committee; somebody said that, but then we will find out that there isn’t above reasoning behind. Summing up, we have elaborated from the recent issues on theme of development finance and matched it with our extensive field experience and expertise.
The author, launched “JAMBO” RISK FUND FOR AFRICA: https://ascaniograziosi.net/2017/02/14/jambo-twofold-objective/