The Sovereign Economic Model - Political considerations

The Sovereign Economic Model - Political considerations

When I was developing the core economic concepts of the Sovereign Economic Model ( I was focused exclusively on the economic theories on how to strengthen the economy.

But slowly it dawned to me, that it implicitly contains  many political elements, not because of my personal political inclinations, but because economic control implies also political influence.

As with any type of sovereignty, it means the country controls processes within its borders.

In economic terms, economic sovereignty means a country controls the money flows within a country. When someone else outside a country controls food, medicines, electronics, industrial production, energy, media, military hardware, land ownership and other main businesses it means a country is not in charge, is not sovereign.
Therefore the Sovereign Economic Model implicitly tries to reverse such external control, though state capitalism,import substitution, market regulation, industrialization and tries to move the economic control levers back to the country and its people.
The Sovereign Economic Model also has a more long-term view of the well-being of the economy, in terms of independence, self sufficiency and stability while capturing and retaining the wealth created in the country.

It is obvious that increased competition is not a welcome concept for many of the largest international industry players and countries with such industries. It is therefore criticized, despised and ostracized both in media and academia by most economic experts and stakeholders.

It is sad to see that only a few countries like China, Russia, India(partially), Iran and few others are capable of having sovereign economic policies, while others willingly or unwillingly gave up economic control of their country, which is economically negatively impact their economies in the longer term.

Add comment