77. Keep waiting please

Dear Gerard,

In the previous article (No. 75), I said that next time I would give details of a successful investment we are involved in. I will really do this next time, when then is more certainty about the start of this project. This time I will answer a question from one of our readers. This reader asked about our vision for entrepreneurship. Obviously, vision is the basis for entrepreneurship, but this differs by sector and region. Current developments worldwide are not very positive: war in Syria and Iraq, civil war in the Ukraine, several wars in Africa, etc. The high unemployment rate and the differences between rich and poor, increase the chances of social unrest in the Western world. Addressing these issues is essential and must be supported. Demographic development will also be of great importance. Eastern Europe (including Bulgaria and Romania) has been suffering from population decline as is Japan and much of Western Europe and the impact is already visible in Germany.

Another important issue is the current level of bureaucracy in the Western world (except the U.S.), which is on a par with Eastern Europe. The question must be asked: is Western democracy the best way of living?
After the breakup of the Soviet Union, the Western model was superior to communism and dictatorial regimes. But after the crisis of 2007-2011, Western democracy which is focused on the free market mechanism and capitalism, is in need of adjustment. The welfare state in Western Europe has become too extensive. Almost anyone can buy a house and a car due to excessive lending. Where will all this lead?

The crisis has brought us to a “feet back on the ground” situation. For those who are unemployed, this is unwelcome, but one thing is certain – there are many areas for improvement, we have to innovate more, and do more together to keep our society intact. The crisis can be disastrous for those directly affected by the loss of work, but important structural changes will occur. We must do more for the weak, we must ensure that our children are given opportunities for further development and older people must provide more for their pensions. The question is whether the current democratic environment and political establishment has an answer. In the current democratic landscape, an aging population will support policies that suit only them and that must be addressed. The current form of democracy is certainly preferable to communism and dictatorships, but it is not the best way of living. However, we must not fall into the trap of ultimate democracy. A new form of democracy has to be designed to respect the interests of the young, the elderly, the weak and of entrepreneurs as well. This adjustment is essential to the success of the next generation, who should get the future they deserve.

Regards,
Jan Stam