First
Word
The publication of the Wealth of
Modern Nations is a milestone in our voyage of discovery
- an intellectual quest into the creation of wealth.
It is a natural evolution
of the theme of our professional calling - the progression
of ideas and visions.
Wealth of Modern Nations
takes a different perspective on fundamental objectives
of state policy and enumerates in simple and succinct language
economic direction for developing nations.
As a guide to national
policy and polity, it is not a conclusion. Rather, it is
the beginning of yet another journey - the bringing together
of minds and minders to explore and chart a new direction
for developing nation states.
We do hope that you become
a full participant in this economic dialogue.
There are three sources of wealth
for the modern nation state. They are:
1 Geographical
2 Anthropoid
3 Abstract
Geographical wealth (third-tier
wealth) is located in the earth, the sea and the air. (We
will technically call wealth from the earth and sea, terraqueous
and that from the air, elemental). Agricultural produce,
minerals and oil belong to this category. This wealth is
basically material, exploitative and exploratory and its
marginal value lies in its rarity and exploratory difficulty.
Anthropoid wealth (second
tier wealth) is located in human intelligence, know-how,
ingenuity and skills. It is essentially applicative in nature.
The industrial revolution arose from this category and Adam
Smith's treatise "The Wealth of Nations" is an
analysis of this wealth.
In modern times, anthropoid
wealth would translate into technological innovation, sophisticated
financial instruments, systems development and intellectual
property. We will in this essay refer to this as Adam Smith's
second chapter while the industrial revolution is the first
chapter.
Abstract wealth (first
tier wealth) is dependent on the manipulation of the imagination
of others through the use of information and imagery. The
value of a thing no longer lies in the valuation of its
intrinsic properties and composite elements alone. It is
also resident in the imagination of third parties and whatever
qualitative value is attached, determines its overall value
| The
formula for Value is now Valuation x Evaluation |
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 |
The stock market operates
on the principle derived from this equation. For example,
the market capitalization of eBay, a company with virtually
no plants and machinery is $15.47 billion while that of
Peugeot with plants and machinery is $13.68 billion. The
value of Amazon.com or eBay and the like is based on the
evaluation of the idea and not the valuation of its plants
and machinery. The most valuable assets of eBay are its
name, logo and idea/concept. Thus, abstract things, intangibles,
are demonstrably proven to be more valuable than tangibles
and palpables.
Click here to view economic dispensation
table
