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ECONOMIC CAPITAL
MAIN MANAGEMENT FOCUS FOR LAST TWO CENTURIES
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THERE ARE 3 MAIN SEGMENTS OF ECONOMIC CAPITAL
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Financialization has been a major driver of economic wealth in the last fifty years. It has been enabled by impressive improvements in all sorts of technologies. Financialization has been good for investors but not for most of the world's people.
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Buildings
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Infrastructure
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Production
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Logistics
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Working Capital
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Physical capital has enabled the progress associated with the industrial revolution over the past two centuries. Energy has been essential for economic progress and especially fossil fuel and steam, also materials like steel and concrete. These elements of the modern world need to be reworked so that economic benefits are not diminished because of issues like the climate crisis.
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Knowledge
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Education
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Institutions
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Security
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Culture
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Intangible capital has also been an enabler of modern progress and productivity. Knowledge is foundational and has been growing exponentially in recent years. More knowledge requires more education and there has been a massive increase in education around the world ... but still not enough. Government and rule of law and important, and investment in culture adds significantly the socio-enviro-economic performance.
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