In first or original article about this, I focussed on Japan itself.. Why Japan is or was reference point for sagging economy.. What are the japan's issues and what could be some creative solutions from my side to solve this problem.
In this one I will try to jott down my views about one part of the west which is also called Europe.. or some times we call it PIGS with love. and then there is rest of the Europe excluding PIGS.. Primarily composed of countries like Germany, France, UK etc..
So, what was the driver for growth for Europe in past and present (if any..). I think in past, key to Europe's success was Industrial revolution supported by Colonial era from of 18th and 19th Century.. Then came devastation of World Wars in early part of 20th Century.. Which essentially devastated most of the Europe and especially Colonial Super powers.. It literally shifted wealth from Europe to North America. Once World Wars were over, some of the countries really worked hard and really leveraged their core expertise and knowledge.. Germany is one such example.. it was left in rubbles after world war II. Still it prospered as it has to prove back their dominance in any field other than military. But mostly rest of the Europe lagged and continued to bleed..
Some great countries like Britain and France, took mostly services route and lagged in industrial leadership other than few niche areas. Many other countries like Italy, Portugal, Spain etc.. didn't find any key area to prosper.. also.. most of these countries were small in sizes and they literally stuck to their culture and language to such a extent that it was difficult to do any significant trade with them.. Many of these countries relied primarily on Tourism and services for their livelihood.. With no real manufacturing growth it was dependent on rest of the world's growth and success.. If rest of the Europe or World grew exponentially they grew to certain extent.. if Rest of the Europe or World hit recession, these countries hit major recession.. Resulting in slow but definitive demise in their real national power and growth engine..
Then came final nail in the coffin in form of CDO by great minds of New York/Jersey.. After 9/11, our great leaders like Bush/Cheeney and Mr. Greenspan tried to grow US by going to war both in Middle east and in economic front.. This led to world's biggest property bubble which took many of these empty economies of Europe initially up and then down when it bursted.. In Europe, Germany literally took US role of lending and fueling this bubble and then forcing these countries to accept IMF conditions to pay itself back..
Okay.. If you have read my previous article about Japan.. I feel that conditions are literally opposite here in Europe. As European's are addicted to more vacations and less work.. They thought they will be rich forever whether they work or not.. Irrespective of how much loan they take to feed themselves.. there will always be some one to rescue them or most likely they won't even reach to this bad condition.. Now, Euro made matter even worse.. It tied individual countries to rest of the Europe that it literally made it impossible for them to fail ALONE...
So what are the solution to this mess in Europe.. is there any??? Let us take a shot at them.. First of all, let us divide Euro.. and make Something like Peuro (PIGS Euro) for the countries who don't take care of their Pig--gy bank accounts.. Kick these Pigs out of Euro.. There will be some blood or may be lot of blood every where in Europe but it will be just one time instead of current slow death by slow bleeding mode.. Then, ask these countries to do what they can do best.. I can't think of anything else other than tourism.. These PIGS should really work hard on educating their population in different languages like English (or may be not), Chinese, Hindi/Telgu/Tamil etc. Also, instill some more hospitality culture in population and over emphasizing on how important these guests are to their nation..
Lastly, they should fix their labor problems.. Employees are paid to work.. not to take vacation.. Easily cut all the benefits and vacations and holidays to Half of what it is right now.. Let them work hard.. one are the days of free lunches.. hey.. may be start some exchange program with Japan so both the sides can benefit from each other's strengths and Weakness..
In this one I will try to jott down my views about one part of the west which is also called Europe.. or some times we call it PIGS with love. and then there is rest of the Europe excluding PIGS.. Primarily composed of countries like Germany, France, UK etc..
So, what was the driver for growth for Europe in past and present (if any..). I think in past, key to Europe's success was Industrial revolution supported by Colonial era from of 18th and 19th Century.. Then came devastation of World Wars in early part of 20th Century.. Which essentially devastated most of the Europe and especially Colonial Super powers.. It literally shifted wealth from Europe to North America. Once World Wars were over, some of the countries really worked hard and really leveraged their core expertise and knowledge.. Germany is one such example.. it was left in rubbles after world war II. Still it prospered as it has to prove back their dominance in any field other than military. But mostly rest of the Europe lagged and continued to bleed..
Some great countries like Britain and France, took mostly services route and lagged in industrial leadership other than few niche areas. Many other countries like Italy, Portugal, Spain etc.. didn't find any key area to prosper.. also.. most of these countries were small in sizes and they literally stuck to their culture and language to such a extent that it was difficult to do any significant trade with them.. Many of these countries relied primarily on Tourism and services for their livelihood.. With no real manufacturing growth it was dependent on rest of the world's growth and success.. If rest of the Europe or World grew exponentially they grew to certain extent.. if Rest of the Europe or World hit recession, these countries hit major recession.. Resulting in slow but definitive demise in their real national power and growth engine..
Then came final nail in the coffin in form of CDO by great minds of New York/Jersey.. After 9/11, our great leaders like Bush/Cheeney and Mr. Greenspan tried to grow US by going to war both in Middle east and in economic front.. This led to world's biggest property bubble which took many of these empty economies of Europe initially up and then down when it bursted.. In Europe, Germany literally took US role of lending and fueling this bubble and then forcing these countries to accept IMF conditions to pay itself back..
Okay.. If you have read my previous article about Japan.. I feel that conditions are literally opposite here in Europe. As European's are addicted to more vacations and less work.. They thought they will be rich forever whether they work or not.. Irrespective of how much loan they take to feed themselves.. there will always be some one to rescue them or most likely they won't even reach to this bad condition.. Now, Euro made matter even worse.. It tied individual countries to rest of the Europe that it literally made it impossible for them to fail ALONE...
So what are the solution to this mess in Europe.. is there any??? Let us take a shot at them.. First of all, let us divide Euro.. and make Something like Peuro (PIGS Euro) for the countries who don't take care of their Pig--gy bank accounts.. Kick these Pigs out of Euro.. There will be some blood or may be lot of blood every where in Europe but it will be just one time instead of current slow death by slow bleeding mode.. Then, ask these countries to do what they can do best.. I can't think of anything else other than tourism.. These PIGS should really work hard on educating their population in different languages like English (or may be not), Chinese, Hindi/Telgu/Tamil etc. Also, instill some more hospitality culture in population and over emphasizing on how important these guests are to their nation..
Lastly, they should fix their labor problems.. Employees are paid to work.. not to take vacation.. Easily cut all the benefits and vacations and holidays to Half of what it is right now.. Let them work hard.. one are the days of free lunches.. hey.. may be start some exchange program with Japan so both the sides can benefit from each other's strengths and Weakness..
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