The World Economy in 200 Yerars Time (Essay Sample)

THE WORLD ECONOMY IN 200 YEARS TIME
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It is amazing that given the economic crises that the world has experienced since the Great Depression, most futuristic movies that Hollywood makes are inspired by science fiction. It is equally surprising that outside the corporate sector, there is little speculation on the long term future of the world economy, less so when the scope of prediction stretches to 200 years. In light of current economic trends, ranging from environmental concerns and scarcity of resources to increasing human population and rising cost of production, it is possible to create a futuristic picture of the global economy. This essay predicts the way the world's economy will be functioning in two hundred years from now.
Scarcity of natural resources is the major factor that is likely to play a critical role in determining economic relations between countries in future. Presently, the developed world has an upper hand in economic relations because of its advanced industrialization level and technological superiority over the third world. However, future resource scarcity will shift the power base from Europe, China, and North America to Latin America and Africa, where most of the resources are yet to be exploited. Availability of cheap labor is also another factor that will make manufacturers shift their plants to third world countries. This will see third world countries overtake Europe and North America in industrial growth. In fact this trend is already a reality as more American companies move into China where labor is far cheaper than in the U.S.[Mats Lundahl, From Crisis to Growth in Africa (New York: SUNY Press, 2001), 25.]
The banking industry is another potential front that will see significant transformations. The ATM, which is today the face of technological innovation and automation of functions in the banking sector, will become obsolete together with the banking staff because hard currency and over-the-counter operations will be outdated. Mobile banking would have developed to a level where all business and money transactions will be electronic and will be conducted using hand-held gadgets. Similarly, the world will be so globalized that there will be no use of having different currencies. A single world currency, say the dollar, will be the only standard of measure. To regulate the circulation of the virtual currency, there will be a world central bank that will electronically monitor the value of virtual money in public possession. Employers will load money electronically to workers electronic bank accounts, and governments would have devised a system of deducting taxes automatically.[Ozlem Bak and Nola Stair, Impact of E-business Technologies on Public and Private Organizations: Industry Comparisons and Perspectives (New Jersey: GI Global, 2011), 105.]
The job market is also poised to witness tremendous changes. Concerned over the high costs of production, entrepreneurs will exploit technology to minimize the demand for human resources. Consequently, many people are likely to be out of employment as robots and automated machines take their place. Given the high levels of unemployment, governments will be forced to establish robust social welfare programs to provide essential services and needs to the public. This development is likely to lead to low levels of social and economic inequalities because society will not be truly capitalist, as governments will regulate the economy to ensure equitable distribution of resources. It is reasonable, therefore, to expect an end to free enterprise and emergency of welfare states.[Daniel Masys, "Effects of Current and Future Information Technologies on the Health Care Workforce," Health Affairs, 21, no. 4 (2002): 33.]