Global Business and Cybernetic Neocolonialism (A Non Mainstream Approach to Impossible Trinity of Globalization)

Abstract

In this paper I wish to suggest that « obsession» of a transition economy with competitiveness and trade openness, together with « hands off» sort of economic policy, may hardly lead an-infant economy‖(a transition economy) towards-real incomeconvergence and caching up with mature developed economy on her long-run development path. Moreover, such an obsession may have deflationary impact upon an economy defined as «factordriven economy, let alone on an « aid-driven economy». However, I point out that in time of extant and particularly future globalization of the world economy no country is (will be) in a position to enjoy own economic development strategy. I conclude that a virtual-market state is devoid of both political and economic sovereignty and therefore becomes a slave of cybernetic neocolonialism. The impossible trinity of globalization: globalization-political independence-economic independence is an issue to be resolved by new world economic order and the economist's worldwide if the world prefers to enjoy common benefits of achieved technological progress. I propose that such a successful solution requires a new economic theory and policy..