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Date: 2024-04-17 Page is: DBtxt001.php L0700-CS-IC-Organizational-Capital

ECONOMIC CAPITAL / CREATED CAPITAL
INSTITUTIONAL CAPITAL
Organizational Capital
Without organization, without organizations, very little can be accomplished
Knowledge / Government / Rule of Law / Ethics / Culture / Security

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ORGANIZATIONAL CAPITAL
Organization is essential for efficiency
ENABLING ENVIRONMENT
The idea of an 'enabling environment' is fairly simple. Everything that is needed to facilitate constructive economic activity should be easy. The idea of rule of law is important in building a positive enabling environment in that there is clarity and certainty about the rules ... though the rules also should be equitable, fair and resonable.
TPB Note: Over a period of several decades, I worked in many different developing countries ... from A to Z ... from Afghanistan to Zimbabwe ... and in most of these countries setting up a 'formal' business is time consuming and expensive. By contrast setting up a business in places like the United States or the United Kingdom is very quick and very easy.
TPB Note 2: In my personal experience there are too many situations where the 'rule of law' has been gamed by the rich and powerful in ways that are truly unacceptable. There something wrong with the idea that major international companies have facilitated huge wealth accumulation by local rulers at the expense of their people as for example in Brunei (in the 1960s) where the Sultan of Brunei was thought to be the richest person in the world on top of some of the poorest people in the world as a result of arrangements with a well known international oil company.



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