In this digital age, where rapid change aligns with the evolving dynamics of geopolitics and our ways of life, I embarked on a journey to find practical solutions for efficient capital deployment in both developed and developing markets.
My inspiration was drawn from the 'Plug and Play' concept of Dell Computers, an idea that revolutionized its industry years ago. The financial architecture I propose is not entirely new; it comprises various components that are already accepted and recognized by global capital markets. It embodies the principle of "Share the Risk, Share the Prosperity," promoting the meaningful and fair deployment of resources for all involved.
A significant objective of this proposal is to bridge the gap between developed and emerging markets, fostering a world built on shared values of fairness, equity, respect inclusivity, and diversity. I propose that the G7 establish a bond issuance agency where participating nations share the repayment risk, facilitating low-cost, long-term bond issuances based on their inherent credit ratings.
These bonds would be sold in global institutional capital markets, leveraging the notion of governments acting as catalysts to mobilize private capital. Drawing from several capital market structures in the USA and EU, I have integrated various components into this bond architecture to offer numerous benefits for investors.
The capital deployment strategy relies on the principle of risk syndication, ensuring that each project is structured as listed bonds in the EU. This promotes good corporate governance, transparency, institutionalism, and accountability through a diverse ecosystem of global capital market players. This approach aims to bridge developed and developing markets, enabling emerging market project sponsors to learn advanced capital market methodologies—teaching them to fish rather than merely providing the fish.
The proposed agency seeks to unify the G7 and emerging markets, incorporating best practices from structured finance, project finance, securitization, insurance, risk mitigation, risk syndication, and compliance. It is a non-concessionary, profit-oriented entity designed to prevent wealth transfer from one nation to another.
I have proposed multiple safeguards to protect G7 taxpayers from shouldering the burden of defaulted projects. On the contrary, this financial architecture has the potential to benefit the treasuries of participating nations, imposing a minimal financial burden on their public debt management.
This agency will address numerous global issues, including economic stimulus, job creation, refugee movements, poverty alleviation, and increased investments in ESG-impact investing. It aims to provide equal opportunities for capital deployment across all global markets, regardless of their development status.
The plight of refugees seeking better lives elsewhere is a pressing issue. If these individuals are given hope, jobs, prosperity, and freedom in their homelands, they would likely choose to stay and thrive there. This agency seeks to reverse the current tide of displacement by increasing prosperity and access to capital, offering a tangible solution to this global challenge.
Would people be willing to leave their countries if they had prosperity and freedom at home?
I believe they would prefer to visit other countries for entertainment or business purposes rather than as refugees. My goal in developing this financial architecture is to demonstrate how significant issues can be addressed using existing structures and concepts. By occasionally shifting our perspectives, we can find innovative solutions to complex problems.
My objective with this proposed architecture is to create win- win solutions without losers. The Prosperity Bonds Agency model aims to connect developed and developing markets through enhanced corporate governance for financing and developing projects that support a shared future founded on freedom, respect, prosperity, and security.
We face challenging times, and our civilization is at a crossroads. While some foresee a multipolar world, I believe we must find alternative ways to avoid global conflicts and foster hope and prosperity instead.
Can we find alternative ways to bring hope and prosperity to humanity instead of resolving our issues through wars?
The future hinges on whether we uphold constitutional republics, liberties, and democracies or succumb to dark regimes and autocracies. Practical and pragmatic solutions are essential. This financial architecture is my contribution, but it requires collective effort to safeguard and advance the world we share.
What does the future hold for us? Are we headed towards a world of constitutional republics, liberties, and democracies, or one under the control of autocracies?
We must come together to identify and implement real, practical solutions rather than fixating on issues that, in hindsight, may appear illogical when viewed from the perspective of the next 50 years. I believe in a world of abundance rather than scarcity. Our current way of life, built on the post-WWII rules-based global order, is at risk. Only by creating a more inclusive and fairer world can we preserve and build upon the achievements of the past.
Under the leadership of the US, NATO, G7, and similar mechanisms, we have avoided another world war, achieved significant advancements in lifespan, healthcare, science, and inclusivity, and maintained peace and prosperity. Critics may argue otherwise, but the internet's invention and the global GDP's growth are testaments to the collaborative efforts of the US, EU, G7, NATO, and other organizations.
I encourage those with opposing views to consider what the world might have been like under the leadership of the Soviet Union or China over the past 80 years instead of the US, EU, and other Western nations.
Creating a better future for the next generations is crucial. Everyone desires a better life for their children, peaceful living, and freedom. Spreading prosperity is key to achieving these goals. Fair wealth distribution addresses social injustices, crime, and public disorder. By providing hope and opportunities, we can foster peaceful, just societies and greater access to global capital.
Can we create more inclusivity by providing better opportunities for global capital access? I believe we can.
In my view, the term "geopolitics" is outdated. I would like to coin a new term here The world is shifting towards "Valuepolitics," where people unite based on shared values and future goals, transcending geographical boundaries. This concept will shape political analysis in the coming era, as individuals worldwide seek democracy, liberties, and rights regardless of their governments.
People advocating for democracy, liberties, and rights are unified in their desire for a better future, regardless of their current governments or locations. I believe the Prosperity Bonds Agency will contribute to "Valuepolitics" becoming the new term instead of geopolitics. In this digitally borderless age, we have the opportunity to create a better humanity by uniting with those who share our values and aspirations for a better, freer world, all while preserving our national identities and nation-states.
We must shift our perspective and approach towards so-called conflicting opinions that arise from the current geopolitical system.
The same applies to the definition of the Economy, traditionally focused on managing scarce resources.
Could it be time to redefine the economy based on abundance?
Economists should consider this perspective, focusing on efficient and inclusive resource distribution to positively impact global societies. This task belongs to economists, but my two cents on the issue is to incorporate the concept of "distributing abundant resources in more efficient and inclusive ways to create equitable solutions and positive global impacts" when formulating a new definition of the economy.
I have been inspired by great leaders such as President George Washington, President Mustafa Kemal Atatürk, Alexander Hamilton, President Andrew Jackson, President Ronald Reagan, Giuseppe Garibaldi, Gilbert du Motier Marquis De Lafayette, and Emperor Marcus Aurelius.
Their contributions have paved the way for our current way of life. I encourage readers to learn about these great men, as understanding their achievements underscores the importance of preserving and advancing our world for future generations. Their legacies inspire us to create a more equitable and inclusive world, fostering economic prosperity for all. When prosperity is not shared, economic hardships affect everyone. This applies to countries, individuals, and companies. Prosperity is achieved through hard work, but when it is not shared, liberties are restricted, and the consequences spread faster than the initial creation of wealth.
Sharing prosperity unlocks freedom and liberty, creating a more joyful life for everyone. My proposal aims to demonstrate that we can achieve widespread prosperity without burdening anyone, providing opportunities for those willing to strive for their dreams.
I am hopeful that this financial architecture will inspire similar initiatives by the USA, EU, G20, or multilateral financial institutions, as the model is replicable and scalable.
Hoping for a peaceful and more equitable world,
H. Burak Erten