The Distributed Economic Accelerator

No economy can prosper without, at the minimum four types of infrastructure networks for energy distribution, globalized communications and financial systems, as well as a complex system for transportation. The largest world economies are complex globalized and centralized. The centralization of the economy is reflected in the centralization of the infrastructures and the silo organization (vertical hierarchies) which more or less isolate each infrastructure from the other. The silo type of organization is also found in government and to some extent in the world of business.

The Silo type of organization has been inherited from the Euclidian-Newtonian traditional western scientific way of grasping the world around us. In this traditional scientific way of thinking if every large problem is cut in small pieces and the issues in each small peace is resolved then somehow the large problem is resolved. This is true due to the law of approximation. However this logic will breakdown in complex systems where approximation does not work anymore and synchronization between the different parts cannot be maintained. New scientific theories have been developed for complex systems and chaotic environments. The synchronization breakdown phenomenon is well evidenced when the silo world is subjected to catastrophic events. This synchronization breakdown can also be seen in the business world in the case of launching extremely complex new products when the parts are designed by a multitude of subcontractors. The results are long delays and sharply increased costs.

The western economies were not started by the Silo type governments. The process took hundreds of years and it started from the bottom up in a distributed manner. The political power and taxes may have been centralized, but the business activity enjoyed much freedom and started in small nodes with increasingly complex exchanges between the nodes which gave rise, step by step, to the network infrastructures we know today. Centralized infrastructures tend to concentrate wealth and power at the top, with increasing poverty at the bottom, whereas, distributed infrastructure will distribute the fruits of development more evenly and in particular towards the bottom. Centralized infrastructure and industrialization helped the migration towards the cities, whereas, distributed infrastructure will help the reverse migration out of the cities, because wealth can be generated throughout the country. With this diffusion of wealth throughout the country the democratic process will be improved because the citizens will regain the ownership of their life by participating in political structures which are closer to themselves.

The infrastructure models which are offered to developing countries are copies of the western models without taking into account that the other infrastructures are non existent or not mature enough to synchronize. So generally the developing countries were burdened with huge projects, for which they could only absorb, at best, a small amount of the economic fruits, and which fruits benefitted mostly the top. This is why we are proposing the Model of “The Distributed Economic Accelerator”.

The Distributed Economic Accelerator relies on developing in parallel and synchronizing the 4 Infrastructure Legs of Development:

  • the Distributed Sustainable Energy,
  • the Local and regional transportation,
  • the Resilient global communication network,
  • the Distributed Microfinance.

The key to success is for the 4 Infrastructures to be implemented at the same time and with good synchronization.

The Distributed Economic Accelerator does not envision large projects, with negative economic and ecological impacts, but thousands or millions of small or micro projects implemented at a high pace and well synchronized. The extremely great number of projects will have an immediate economic effect on the developing Nation and will naturally synchronize supply and demand to minimize inflationary pressure. Because the wealth will be more evenly distributed the democratic process should be improved and the reverse migration will lower the high crime rates of megacities.

Contact us to design your “Distributed Economic Accelerator” at nesterenko@protectiontotale.com.

 
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