A passage of thoughts on Governance in the Global Economy inspired by G8 and G20

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Thoughts on Governance in the Global Economy
By Fation Ceka
Exponential times, such as today, make globalization as tangible a concept as it never felt before.
The dynamics of international markets have expanded corporate borders making the once
existing barriers lose their purpose, unifying economies across the planet. Countries such as
Albania, where the local economy is directly influenced by foreign markets, feel the impact of
global economies deeply.
Considering the penetration of the world’s economies in internal domains and that being
achieved by large modern firms being transformed to global networks that work across borders,
globalization has changed fundamentally the way countries interact economically. World
financial markets have given birth to what essentially a single global market. Outsourcing and
migration has unified and radically transformed the labor market. Geographic distances have
been and keep shrinking continuously as communication and transportation keep transforming
their evolutionary path. As a result, those evolutions have redefined the boundaries that define
nations. This is a result of the whole transformation of all economic, and not only, channels in
the global economy.
Continuous transformation, growth and evolution of different types of interactions has brought
about a hybrid of viable relationships amongst finance, trade, environmental sustainability,
economic growth, social progress and of course governance that are treated as a unit. This
relationship and transmission of information between the above is an efficient way and an
indispensable asset of modern global firms.
Those new rules and transformations in the unified global interactions create new demands on
the shoulders of institutions and policies of global economic governance. If we would like to
analyze more in depth the details and the importance of those demands on policies and the inter-
relations that they have, we would find the connections of the grid amongst trade, finance,
poverty reduction and development and of course economic, social, environmental and
governance issues.

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Just a better and clearer division of labor amongst global institutions is no longer sufficient as the
overlapping of domains of responsibilities bring confusion, bureaucratic competition and
interagency coordination are not to be thought of as the most effective ways of addressing the
overlaps in existence.
Global cultural shifts are related to globalization and the present time of minimization of
geographical distances mentioned above have revolutionized not only globalization but also
demographic and economic growth. An increase from non-traditional cultural expressionists
from regions except western and western-like economies, have brought interlaced cultures and
economies. Cultural shifts and transactions of information globally have minimized the cultural
differences. This does not take out of the table the importance of the need to respect individual
perspectives on environment, nature, community and individualism. The goals of such policies
should respect and be determined by different cultural perceptions of what the most effective
ways on bringing modernization and progress are.
Of course the assymmetry between global reality and governance cannot be denied and the need
for mechanisms of global governance to change in order to support all the mentioned concepts is
a move that would strengthen economies. As part of change and realization of better structures,
summits of any nature should not only include representatives of common fields but also a
representation of a unified group that would consider all points of views and support a global
economy not only by exchanging views but by making better policies as an urge to better
cooperate and be more efficient.
Those changes and the high inclusion of the business world in the global economic governance
may be a shift of power and existence of chaotic anarchy in the way governments analyze and
apprehend the new information.
The economic crisis of the previous years was the best possible way for both businesses and
governments to realize the importance of the rules of the game and how their cooperation should
bring about the well being of both. As far as global economic governance should be following
transitions, the role of policy makers is to keep the action and reaction movements and their
difference in time as close as possible.

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During the present times, the observation of less developed countries has showed a high
development rate in technology which directly relates to other fields. This is happening at a
much greater pace than the development rates of developed countries. This is explained by the
fact that less developed countries use technologies invented by others, saving R&D high costs
and gives the opportunity of high accelerated growth. This revolutionizes the way step by step
development works as markets don’t use technologies when they are invented but once they have
the monetary capabilities they invest in the latest advancements in technology. By doing so, a
previously primitive market can get into direct competition with advanced markets. Of course the
need for change in legislations is always needed and the cooperation of governance seeking
transitional reforms as far as radical changes happen is an undeniable need.
The advantage of Albania and other countries sharing the same or similar values in GDP, GNP &
PPP is the high accessibility of new technologies and the ease to penetrate international markets.
Profit Margins might not be high during the time of regional conduction of business but the
opportunities of working and creating a business in such a country and practicing international
trade is a great opportunity into creating the fundamentals in the region and together with
developing ones firm also developing the region. This means higher than average social
progress, economic growth and regulation makers more ready to change implementing up to date
governance for the firm.
Low cost of labor in the services sector has brought me high ROI and Gross Margins and my
compensations towards my team are considered to be high ones compared to my competitors.
The team is composed by a well diversified group working in Albania and whenever needed
outsourcing jobs to professionals in Greece, Kosovo and Montenegro. This gives me the
opportunity to have clients globally and by having a business in a developing country and
outsourcing whenever needed, minimizing the costs.
I see great opportunities into business and as far as the global economy pushes governance into
serving the fundamental needs of its existence, there will always be evolution and the need of
reattachment and reconsideration of certain issues that characterize the group of issues that have
to be dealt with as a “package” of interrelations. I also see great opportunity in my region as
developed routes of communication create opportunities for small business to develop with high
paces and work internationally without the need of being a well established multimillion firm.