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Instead of fighting for market share, it’s time to grow the global market!

It is a time of change in the United Kingdom

by John Brian Shannon

A sea-change is upon the United Kingdom whether some have come to that full realization or not

The relationship between the UK and the rest of the world is beginning to change as the UK exits the European Union. Not only that, but the relationship between the UK and the other Commonwealth countries is changing. And while all of that is occurring, it is also a time of change in the postwar international order.

These changes are coming and we have no ability to stop them. What we do have though, is the ability to choose whether these changes are ultimately negative or positive for Britain.


The days of ‘Win-Lose’ politics are over

When every second country (seemingly) has WMD weapons, suddenly Win-Lose doesn’t work anymore. Do we really want to solve every issue between nations with nuclear weapons? Because eventually, that’s what it will come to.

It’s great if you ‘Win’. But then you ‘Lose’ because the fallout from large nuclear explosions travel around the Earth a few times per season and nuclear particles continue to exist in the environment for decades (some isotopes linger for 20,000 years) and as everyone needs to breathe the air, eventually you will inhale and, well, (do I really have to tell you this?) your lungs will filter the radioactive isotopes out of the air.

The ‘Winners’ of a WMD conflict will also become ‘Losers’ of that conflict within months. It’s nonsensical to consider nuclear war in the 21st-century.

All of which means, that in the final analysis, international hot points must henceforth be solved by the cool hand of diplomacy.


The days of fighting for Market Share are over

More than any other country, fighting for market share no longer makes economic sense for the UK, because every other country/corporation is likewise fighting for market share.

Larger countries with serious export expertise and fully developed and long-term foreign client relationships have a distinct advantage over a born-again United Kingdom re-entering the exporting world. Fighting for market share against far superior marketing superpowers like Germany and China is like paddling upriver in a hurricane, and good luck with that.

Rather than fighting for Britain’s slice of the pie, the UK should be the one country in the world that works to make the pie bigger for everyone! wherever free markets exist.

In that way, whatever global growth occurs will benefit all exporters equally — including Britain’s born-again export economy, because the UK will have as good a chance as any to capture some of that growing pie — as opposed to fighting companies well entrenched in foreign markets and trying to steal tiny percentages of their total market share. See the difference?

“Don’t fight a battle if you don’t gain anything by winning.” — Erwin Rommel

Rommel was right. And to adapt his truth to Britain’s new place in the world, fighting for market share in countries that are already well-served by European and Chinese exporters will gain British exporters very little and could create trade frictions between Britain and the European Union which is still the UK’s largest trading partner in the 21st-century. We don’t want that.


‘Win-Win and Growing the Market vs. ‘Win-Lose’ and fighting for Market Share

Win-Win political thinking and growing the global market is the best prescription for Britain’s economic future.

Countries with rapidly growing economies like the BRICS countries and many Commonwealth nations are the best places for Britain to concentrate its export efforts. By helping those countries to succeed more than they would have without the UK’s assistance, Britain can grow its export base by selling to people in rapidly growing developing nations enjoying their newfound discretionary income.

It’s all about rising Disposable Income in Developing Nations

The example of India is most poignant, because in that country the average discretionary income of citizens is doubling every five years; All Britain’s leaders must do now, is to work respectfully with Prime Minister Narendra Modi and his ministers to the end that British exports to India are welcome and that Indian exports to the UK are just as welcome. (It helps if both countries aren’t manufacturing and selling the same items, of course) If India sells toasters in both countries then Britain should sell kettles in both countries, if you take my meaning. The less overlap, the better.

A few years from now, when a larger percentage of India’s 1.5 billion population can afford to buy a new car, perhaps Indian companies will offer tuk-tuks, small cars and farm trucks for sale in India and the UK, while the UK sells family sedans and Landrovers in India and the UK.

Any other method of working to each country’s strengths — without stepping on each other’s toes — would also be profitable for companies of both countries. What matters is that whatever method is chosen works for companies in both countries.

With the right approach to rapidly growing countries and some standardized and respectful trade rules, the UK could help to grow the global pie, dramatically increase its own exports, keep good relations with exporting superpowers in Europe, China, and America, and be seen as a ‘White Knight’ to developing nations by playing a pivotal and ongoing role in helping them to build their economies.

That future is so much better than bickering over fractions of market share with other (and economically superior) exporting nations — the very countries that Britain depends upon in many ways.

Here’s to ‘Win-Win’ paradigms and growing the global economic pie; A plan that will work for the United Kingdom more than almost any other country — while preventing harm to Britain’s present and important trade relationships.

The world wants quality UK goods and services.

The world wants quality UK goods and services. The demand is out there. You should be too. Image courtesy of HM Government.

Why it’s Time to Lower Immigration from non-Commonwealth Nations

by John Brian Shannon

Well, ‘Brexit is Brexit’ as they say, and it looks like it’s going to take a while to finalize details between the UK and the EU. But no need to panic. Brexit will happen and the two sides will be legally divorced within 12-months.

It might turn out to be a good agreement, it might turn out to be a bad agreement, or negotiations might go so awry that the UK leaves without any agreement; In which case WTO rules would automatically apply until superceded by bilateral agreement.

Which wouldn’t be too bad actually, because with no time constraints to worry about post-Brexit, and with no concern about loss of face for politicians (on account of missing the Brexit deadline) powerful industries on both sides of the English Channel could then push their respective governments to create a number of à la carte bilateral agreements pursuant to their sector. Secondary and tertiary industries would then follow the lead of the powerful primary industries.

Eventually, every CEO would be heard by their respective government, and elected representatives on both sides would be compelled by their own political self-interest to present their case to the other side — a very pure way of streamlining trade between Europe’s (by then) newly divorced economies.

Whichever way it goes, in approximately 12-months Britain will be alone in the world save for its Commonwealth partners which it hasn’t cherished enough over the past 86-years, but it’s not to late to change that.

In fact, now is the time for the UK to take huge strides forward with its Commonwealth partners and begin to deliberately favour them over non-Commonwealth nations, especially in regards to trade and immigration.

“The latest net migration statistics show that in the year ending December 2016, net migration to the UK was 248,000.” — Migration Watch UK

The majority of immigrants to the UK since 1999 came from eastern Europe and the benefit for British employers is that these workers accept low-paying jobs and (although it is unethical and in some cases illegal; regardless, it still happens) that a farm or factory could replace all UK-born workers and on the next week hire immigrants who work for far lower wages. This can save companies significant amounts of money especially in the case where the UK-born employees have years of seniority and full benefit plans.

(Want to save 25% on your annual labour expenditure? Fire everyone below the level of General Manager and fill those positions with immigrant workers. Sure, it may be hairy for a while until the newcomers learn their jobs, but think of the money you’ll save! Even with having to pay significant severance pay to UK-born workers that have seniority, and maybe a bit of ‘hush money’ — over time the company will show better profits. If you think this hasn’t been done, you’re naive in the extreme. Whether it’s legal or not, whether it’s ethical or not, or whether it’s the ‘right thing’ for Britons to do to their own countrymen and countrywomen is a completely different matter)

In the end it hurts the UK economy, although it helps UK businesses to earn higher profit, but much of the money earned by the immigrants is sent to their families in eastern Europe or wherever they migrated from.

The name for these kinds of transactions is ‘foreign remittances’ and billions of pounds sterling leave the UK economy for foreign nations every year. That money is gone and is never returning.

The amount of wealth leaving the UK every year via foreign remittances is astonishing and may total as much as £20 billion annually (or more) and as the accounting is imprecise it’s almost always found (years later) that the estimates were extremely low.

The UK is one of the Top-Ten foreign remitting countries in the world

UK - Remittance flows from Britain 2015 - Pew Research
Although foreign remittances are only estimates, at least $24,878,000,000 in remittances were sent from the UK to other countries in 2015. Image courtesy of Pew Research.

In some countries with heavy remittances from the UK, the amounts are so large that certain developing nations receive up to 6% of their GDP via foreign remittances, and the UK is one of the top-ten foreign remitting countries in the world.

Think how much money Britain’s governments (Labour and Conservative) have allowed to leave the UK via foreign remittances over the past quarter century…


Wouldn’t it be smarter to lower immigration from non-Commonwealth nations?

Why, yes it would. It would be much smarter.

Commonwealth nations have historic links with Britain and it looks better when former colonies (and new Commonwealth members that were never colonies of Britain) are faring well thanks to British largesse.

Following is a short list of UK benefits if immigration from non-Commonwealth nations is replaced by Commonwealth nation immigrants:

  • Tens of billions of pounds sterling will no longer leave Britain annually to be used by non-Commonwealth countries
  • Foreign remittances from the UK would go to Commonwealth nations instead of non-Commonwealth nations
  • Commonwealth nations might choose to source more military equipment, machinery, etc. from the UK
  • Commonwealth nations with boosted foreign remittances are more likely to stay within the Commonwealth
  • Immigrants to the UK from Commonwealth nations are more likely to understand the British worldview
  • Commonwealth immigrants are more likely to integrate well into British society
  • Commonwealth nation citizens will have a better opinion of the UK and of Britons
  • Commonwealth nation economies will see a corresponding economic benefit
  • UK GDP would increase, as would GDP in the other Commonwealth nations
  • Commonwealth nations would become politically strengthened
  • Commonwealth links between businesses are likely to increase
  • Links between Commonwealth citizens are certain to increase

And that’s just the short list.

Yes, billions of pounds sterling will still leave the UK but at least it will be going to Commonwealth member nations that have a similar worldview to Britons and are nations that are more likely to support British policies instead of opposing them.

If the money is going to leave anyway, the smart money would arrange to keep it ‘in the family’ with countries that don’t have adversarial relations with the UK.


Why should the UK be adding to the GDP of non-Commonwealth nations, when it could be adding to Commonwealth nations GDP?

The UK is a member of that august organization and membership itself implies that each member should favour other members.

Commonwealth governments, big business and consumers should always try to shop at Commonwealth businesses first, before trying anywhere else. If something can’t be found for sale in your own nation, then try to purchase it in another Commonwealth nation. If it can’t be found at all, then maybe it’s time for another Commonwealth member nation businesses to pool their resources and build/sell that product.

The UK should cut immigration from non-Commonwealth nations and simultaneously make it one order of magnitude easier for Commonwealth nation citizens to immigrate to Britain.

While the total immigration levels might stay the same, the definite bias should move quickly towards Commonwealth nations and NAFTA countries.

Commonwealth citizens should have UK visas fast-tracked after Brexit, MPs argue (The Telegraph)

Up to 200,000 immigration applications from Commonwealth and NAFTA nations should be accepted each year via a simple online form, a successful criminal records background check, and payment of an immigration fee of £100 per year.


One for all, and all for one!

Instead of strengthening people and nations that have no interest for or against the UK, Britain should quickly move to support Commonwealth members and NAFTA countries.

In this way, countries that are pulling for the Britain’s success will be rewarded by Britain — and vice versa.

The UK should respectfully request NAFTA associate membership the moment Britain formally leaves the EU. And within 5-years, all other Commonwealth nations should make the same request of NAFTA.

That’s how you Build a Better Britain, Build a Better Commonwealth and Build a Better NAFTA!

Money… Money Changes Everything!

by John Brian Shannon

At this moment in UK history, more money is needed to fund the NHS, schools, roads, railways, airports and other national infrastructure, Trident, foreign aid — and to fund 500 million sterling worth of renovations to the House of Commons.

Money is certainly the problem, as more money would solve all of those issues and many more.

Unfortunately, some governments ‘rob Peter to pay Paul’ but with little change in the total amount of revenue actually collected by the government.

  • In some cases, a socialist (Labour) government will raise more revenue by raising taxes. Let the wailing begin!
  • In other cases, a conservative (Conservative and Unionist) government will cut expenditures via fiscal and budgetary belt-tightening. Groan!

Which is why governments everywhere are always on the hunt for more money.

But are they? Are they really on the hunt for money? Are they really trying to increase revenue? Or do they automatically hit their default mode every time a budget crisis looms?

Some observers think that governments dismiss attempts to increase revenue via increased trade with other nations too quickly and move to their particular default mode.


Where Could the UK Find 1.3 Billion Consumers Wanting to Buy British Goods?

Well, India, for one. And they’re a Commonwealth nation. Ta-Da! See? It’s sooo simple.

All the UK government must do is to reach out to India’s leaders (especially post-Brexit, but nothing stopping them from getting started now!) in the interests of ramping-up trade by at least one order of magnitude.

Why should India purchase trillions of rupees worth of goods from non-Commonwealth nations when they could purchase them from the UK?

Why does India purchase their aircraft carriers from Russia, their fighter-bombers from Russia, other significant navy ships from Russia, and billions worth of goods from China, the southeast Asian nations, and the United States?

A century ago, Great Britain’s trade relations with India were booming. Shipyards couldn’t build ships fast enough to keep up with the annual increase in trade.

Who dropped the ball?

Heads should roll for allowing that relationship to falter — a relationship of prime importance to both the UK and to India!


Never Mind Playing the ‘Blame Game’ There’s No Time!

UK Trade With India

Instead of UK government departments fighting each other for funding, the government should work to ramp-up trade with India to increase Britain’s GDP by 5 per cent.

We need to get a piece of that rapidly growing and rapidly modernizing economy, and thereby add five per cent to Britain’s annual GDP.

Yes! More money will solve all of Britain’s spending problems… but it isn’t going to fall out of the sky and land in the Treasury building by itself!

Someone! Anyone! Perhaps the Prime Minister or the Foreign and Commonwealth Secretary (or both) along with the Queen should invite Prime Minister Modi of India and his high officials to London, for an unprecedented and long overdue re-look at the macro relationship between the two countries to see how increased trade could improve the economies of both nations, and how each nation can play to their own strengths and work to offset each other’s weaknesses.


Instead of UK Government Departments Fighting Each Other for Funding – Increase the Available Revenue Pool for All Departments

Companies fight over ‘market share’ because that’s what companies do. And it is often a vicious competition.

However, governments have an unparalleled advantage here because they can increase the overall size of the market — which, using this metaphor, relates to UK GDP.

By dramatically ramping-up trade with India the government could increase GDP by five per cent, easily meet the spending requirements of all departments and still have the economic clout to run balanced budgets indefinitely.

This so badly needs to be done that Brexit is a side-show by comparison, although without Brexit it would be difficult to enter into new trade arrangements with any non-EU country.

In summary, Brexit is merely the means to an end — an end with a much stronger economy for both Britain and India, and a stronger Commonwealth partnership.