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About the “Fair” Sharing of Economic Value Added
Periodically, economists put on the table a remarkably interesting (and disputable, as well) topic, that of model for sharing the value added between labour and capital. The subject is present both on the work table of theoretical scientists and on that of researchers interested in the social justice echo of the income/wealth distribution inside the society (like Piketty, for example). In this intervention, I am interested not in the social justice considerations on the evoked topic, but in a very “ideologically free” approach. More exactly, I shall discuss the possible fair sharing of the value added between labour and capital (as main production factors) from the perspective of economic sustainability. This is distinct from economic optimality or economic fairness, although, as it is well-known, there is a so-called trade-off between equity and efficacy as impact of economic distribution. Without any doubt, the social justice angle of the topic is of multiple interests (including the scientific one) but, as said, this perspective will be postponed for the moment. More
On the Minimal Wage, with Responsibility
The syntagm “minimal wage” used instead the syntagm “minimum wage” is intentioned and requires a little bit of explanation. “Minimum wage” is used in the labour legislation, and signifies the lowest level of the administratively established nominal gross monthly wage in the economy, warranted in paying. In fact, what the law establishes is not the minimum level, but the minimal one. What is that meaning? The minimum wage is the actual wage in the real economy, and thus a wage level generated by the labour market. As a consequence, the minimum wage can vary from time to time and also, of course, it can vary related to the administratively established “minimum wage”, but never below the last. As the administratively established wage must be fixed (at least until the next normative changing), it seems be clear now why this wage must be called minimal but not minimum wage. More
Operational Research of the Libyan Civil War and the EU Neighborhood Policies
The European Neighborhood Policy (ENP) concerns the European Union's (EU) relations with 16 of the Eastern and Southern Neighbors. It is a key element of the EU's foreign policy. The political and economic point of view, segueing into security, focuses on stabilizing the region. Essentially, it is an EU external relations body, aiming at developing and stabilizing these countries. The EU offers financial support to ENP countries if they meet conditions for positive change in countries (political and economic reforms, etc.). The actions of the ENP are fourfold: The Eastern Partnership, the Southern Neighborhood, the Cooperation with Countries along the EU's external borders, and cooperation with neighboring countries. More
The Regional Resources of Ukraine and New Opportunities for Economic Development Until 2030
The heterogeneity in the development of the Ukrainian regions leads to rhetoric which states that there are regions which "feed the whole country", but there are also regions which are "eternal dependents". Such rhetoric is extremely dangerous, because it generates a separatist mood. Every region of Ukraine is important and unique – each makes a unique contribution to the overall prosperity of the country. Now in Ukraine there is a situation where the regional development takes place as a competitive struggle between regions for resources (foreign investments, transfers from the state budget, labour resources, etc.), and not as a co-operation. On the one hand, competition supports the strengthening of capacity of the local community, and, on the other, it worsens cooperation between them and prevents the synergy effects from their interaction. More
MIND(s that filled) THE GAP(s)
The Market for Ideas initiated an editorial project in which “international business and economics” students, besides being consumers of quality information, become (co)producers of this “good”. The concept aims for a quadruple gap-filler, with young people, from all over the world, story-telling, in a non-“homework”, but “freestyle” manner, on the value and values of entrepreneurship. More
The Year of Tolerance
My country, the United Arab Emirates, recently celebrated its National Day, marking the celebration of the 48th anniversary of its founding. The UAE strides forward with wisdom and perseverance, under the leadership of the President, HH Sheikh Khalifa bin Zayed Al Nahyan and his brothers their highnesses the members of the Federal Supreme Council, Rulers of the emirates, and following in the footsteps of its founding father, the late Sheikh Zayed bin Sultan Al Nahyan. Through the hands of its loyal daughters and sons, the United Arab Emirates concentrates on pillars of the country’s growth and development, attaining developmental, cultural, economic, political and social achievements. More
Mutating Mindsets and Contagious Behaviours (Part I): An Overview of the Coronavirus Outbreak and Its Insights for Economic Theory
It is no longer a secret that the new coronavirus outbreak is the most significant issue troubling mankind at the moment, generating a level of panic and uncertainty with powerful effects on all level of society, politics and the economy. What began as a biological curiosity in the city of Wuhan in China soon spread throughout the rest of the world through the travels of infected individuals and the virus’ extremely contagious nature. By the time its characteristics and potential lethality became more obvious to authorities, the virus (“baptized” SARS-CoV-2, the “author” of the COVID-19 disease) had already spread outside of China and the Asian continent. The disease it causes is not yet fully understood and how it came to be is still unclear, though scholars tend to agree that the virus was initially confined to a few species of animals before making the jump to humans in China. More
The Economists Need Skin in The Game
The concept of economic crisis encompasses quite different situations (from either a causal perspective or a consequentialist one), from a conjunctural transient state all the way to a real blockage of the economic system. For this article, we shall presume that the phrase ‘economic crisis’ is used correctly, by indicating a dysfunctionality, either of structural or functional nature, in the economic process or system concerned (for example, the national economy of Romania). Economists throw the phrase left and right with a grave face, which does not bode well for ignorant people. More
How Did Horses Become a Luxury?
Horses were domesticated in ancient times and the history of our companionship rivals that of civilization itself. The bond has been celebrated throughout all forms of art. Horses have been used as tillers, as war machines, as means of transportation, as athletes or actors, but also as faithful companions. We even know of famous horse from history – Alexander the Great’s horse Bucephalus, Caligula’s horse – Incitatus – whom he had planned to name consul, El Cid’s Babieca, Napoleon’s Marengo and recently Sergeant Reckless (a small Mongolian mare, that was an actual US Marine sergeant, trained to be a pack-horse during the Korean War and awarded several honors), or Roy Rogers’ Trigger – underscoring the proverbial and proven loyalty of horses and their need for respectful handling. More
Lithuania during the Centennial Celebration of Independence
As Romania’s representative to Lithuania, I have the privilege to have firsthand experience in how this Baltic nation is celebrating the hundredth anniversary of its independence. In fact, to be as precise as possible, Lithuania celebrates a century since the restoration of its state, since its first documentary mention was done by a Christian monk, Saint Bruno, on 9 March 1009. His canonization came as a result of his martyrdom in Lithuania, while spreading the Christian faith. More
Romanian Priorities and the Presidency of the Council of the EU
This week, the authors launched a White Paper on the Romanian Priorities and the Presidency of the Council of the EU. As Romania’s term at the Presidency of the Council of the EU is approaching at the beginning of 2019, many are still left wondering what does it mean for our country to hold this position? We argue that both the opportunities and challenges of this position are linked to the broader context in which Romania and the European Union function today. More
Make Education Relevant Again!
“The times they are a-changin’” and, along with them, the people’s needs and desires are changing as well. This is reflected in many ways throughout the economy, but perhaps the most interesting example we can ponder are the transformations that have occurred in labour markets. For instance, the place of the “pinsetter” of yesterday has been taken over by robots. Also, the fresh milk that used to be delivered upon our doorstep by the milkman is now part of history, as the supermarkets situated just around the corner have superseded him. However, these mutations in the labour market are not new. As time passes, new technologies inevitably replace some jobs while creating others. Coupling these transformations with the expansion of the division of labour, we can observe that, for most of the history of the modern period, jobs become better paid, and the general standard of living rises. At least this is what happened until now, but things seem to be changing. More
