Monday, March 24, 2014

qOSTW – Arcadia case

Here below I want to show the use of qOSTW to deepen the understanding of a problem
The presented analysis should be treated only as a didactic example. I do not undertake the in-depth and thorough analysis myself, because I lack the expertise; I can only put my expertise into OSTW model and to analyze this model.

The state before globalization.
The Arcadia System has closed borders so most of its internal relations are closed within the borders. The legislative and executive authority (LEA ) of Arcadia system is the decision-making center.
Contact with the environment is realized through input/output controlled subsystems, controlled by LEA .
Within the Arcadia system processes take place, which execute a series of changes. Behind these internal processes there are changes in the subsystems of the Arcadia system, or changes in relations that link the subsystems.
If this sequence of changes is accepted , LEA does not need to take any actions. However, if that sequence of changes is not accepted , the LEA can start corrective or compensating processes for the process that causes unacceptable sequence of changes. LEA is the center of decision-making, so it has the power to launch these processes .

The Arcadia system has an unifying factor. One of the components of this unifying factor is money – the oxygen circulating with the blood in the veins of the economic system. The more oxygen circulates, the more subsystems can do, have oxygen = money needed for operating. The Arcadia system is booming .

LEA manages the money supply to match the amount of money to the number of economic processes. Both, hyperventilation and hypoxia are harmful to the health of the population of Arcadia.

A state within globalisation.
The Arcadia system has open borders so part of its internal relations is part of the external orders with external centers of power. The LEA decision center  of Arcadia system is becoming less able to respond to unacceptable changes, as a sequence of changes affecting Arcadia comes from the outside, where LEA has no power.
The Arcadia loses identity (that supported it in taking care of the national interest); becomes a part of external orders. The Arcadia  system has too few resources to compensate for adverse effects, Arcadia has no chance for the correction. The power, so the ability to correct harmful processes, is placed in an external system, or the supersystem, that realizes its goals.
Low amount of money circulating in Arcadia, means a lower standard of living of its people and the smaller capacity of the state to meet residents’ needs, which by their nature should be fulfilled by the State (corrective function of the State, which ensures that the system Nation as a whole was healthy, so that no subsystem changed into a cancer nor to parasitize on a healthy tissue of the nation).
One of the external orders for Arcadia in the globalization era is the order aimed at profit maximization, which requires cutting costs.

What happens without borders, examples:
·        Workplaces (and therefore purchasing power, income taxes) wander where there is cheap labour. Money flows out.
·        Arcadia lost workplaces so it lost production capacity it is flooded with goods from the outside. Money flows out to manufacturers.
·        Foreign owners of the means of production still left in Arcadia, thanks totax havens’ take out untaxed money. Owners’ profit money flows out.
Conclusions: Our Arcadia loses money, the oxygen needed for business processes, the standard of living of the inhabitants dramatically decreases, because the system must be balanced. A higher standard of living can be maintained only through the supply of expensive money from the outside; it is a shift of the problem in time, because this money will flow out together with the interest.
External decision-makers make decisions favourable to their beneficiaries at the expense of others.

Globalization is good for the strong and the rich ones. Polarization between the rich and the poor increases. The middle class size decreases and declines impact of the middle class’ onto the legislation
The poor overwhelmed by the struggle for survival do not have the time, energy, funds to fight by democratic means. They fight when poverty exceeds the limits of tolerance, but then the fight takes hallmarks of a civil war or revolution.