RAINBOW COLORS OF ECONOMY

By Aurangzeb Soharwardi

                          

Most interestingly the colors of nature has a significant link with the economy also as many experts have given different names to different types of economies of the world. Many books have also been written on these colors of economy.In his article,The seven colors of economy, published in Jordan times on  Jul 17,2017 , the writer Jawad Anani also highlighted the following aspects of these economies.

White Economy, on the other hand, is a new term whose coinage is attributed to Professor Douglas McWilliams, a British economist. In his book “The Flat White Economy: How the Digital Economy is Transforming London and Other Cities”, 2015, Professor McWilliams explains how London was able to compensate the loss of business that occurred after 2007/8, and the expected loss after Brexit, focusing on digital services like e-trade and e-speculation. The term “white economy” includes all sectors that involve the production, research, marketing and distribution of health-related goods and services. In Italy, it is composed of public and private components, because the Italian health system is a system composed of both components. The private component involves, in particular, manufacturing (the pharmaceuticals and medical devices and technologies industry), commerce (intermediaries, wholesalers and retailers) and services (private hospital services, health professionals and health spas). The public component relates to services provided by public hospitals, general practitioners and, more generally, all the facilities and professionals who make up the National Health Service.  In addition, the health sector interacts very widely with other sectors, such as: the supply of ordinary goods and services to facilities; ICT applied to health; university research and education activities; science and technology districts and start-ups.

A Black Economy ,black market, underground economy or shadow economy, is a clandestine market or series of transactions that has some aspect of illegality or is characterized by some form of noncompliant behavior with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution is prohibited by law, non-compliance with the rule constitutes a black market trade since the transaction itself is illegal. Parties engaging in the production or distribution of prohibited goods and services are members of the illegal economy. Examples include the drug trade, prostitution (where prohibited), illegal currency transactions and human trafficking. Violations of the tax code involving income tax evasion constitute membership in the unreported economy. The black market is distinct from the grey market, in which commodities are distributed through channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer, and the white market, in which trade is legal and official.. The black market is distinct from the grey market, in which commodities are distributed through channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer, and the white market, in which trade is legal and official A black market is where the activities of drug traffickers and pushers take place; stolen cars are stripped and sold in parts; or the attempt to outsmart the government tax system are made. One of the leading books on the subject was published this year by an Indian author  Arun Kumar. Its title is “Understanding Black Economy and Black Money in India”. A Repugnant Market is an area of commerce that is considered by society to be outside of the range of market transactions and that bringing this area into the realm of a market would be inherently immoral or uncaring. For example, many people consider a market in human organs to be a repugnant market or the ability to bet on terrorist acts in prediction market to be repugnant. Others consider the lack of such markets to be even more immoral and uncaring, as trade bans can create avoidable human suffering.

Green economy is a term which caught fire at the Earth summit that was held in Rio de Janeiro, Brazil, in 1992.The United Nations began to issue data on national income accounts after deducting the annual cost of environmental degradation from the actual rates of growth .You may call green national income accounts the net accounts after deducting the rate of depreciation in natural resources. It is interesting that the most zealous proponents of green economy are women. A leading reference on green economy is a book by a British European parliamentarian named Molly Scott Cato titled “Green Economics: An Introduction to Theory, Policy and Practice”, 2008.It is further defined as an economy that aims at reducing environmental risks, and that aims for sustainable development without degrading the environment. It is closely related with ecological economics. Therefore, blue economy is a part of green economy. During Rio+20 Summit in June 2012, Pacific small island developing states stated that, for them, “a green economy was in fact a blue economy

The Brown economy basically refers to the industries which cause high levels of pollution and gas emissions. Such industries are cement, iron smelting, quarrying and coal mining and coal-using production facilities. Lots of investments have been launched over the past 50 years to contain the left-overs, sludge, smoke and acids of such industries. However, the most interesting development is the recycling of leftovers.

This is called the Blue Economy. According to the proponents of this economy, there is no such thing as useless materials. Everything can be input for new products. According to the World Bank, the blue economy is the “sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystem.” European Commission defines it as “All economic activities related to oceans, seas and coasts. It covers a wide range of interlinked established and emerging sectors.” The Commonwealth of Nations considers it “an emerging concept which encourages better stewardship of our ocean or ‘blue’ resources.”Conservation International adds that “blue economy also includes economic benefits that may not be marketed, such as carbon storage, coastal protection, cultural values and biodiversity.”The Center for the Blue Economy says “it is now a widely used term around the world with three related but distinct meanings- the overall contribution of the oceans to economies, the need to address the environmental and ecological sustainability of the oceans, and the ocean economy as a growth opportunity for both developed and developing countries.” A United Nations representative recently defined the Blue Economy as an economy that “comprises a range of economic sectors and related policies that together determine whether the use of ocean resources is sustainable. An important challenge of the blue economy is to understand and better manage the many aspects of oceanic sustainability, ranging from sustainable fisheries to ecosystem health to preventing pollution. Secondly, the blue economy challenges us to realize that the sustainable management of ocean resources will require collaboration across borders and sectors through a variety of partnerships, and on a scale that has not been previously achieved. This is a tall order, particularly for Small Island Developing States (SIDS) and Least Developed Countries (LDCs) who face significant limitations.” The UN notes that the Blue Economy will aid in achieving the UN Sustainable Development Goals, of which one goal, 14, is “life below water. A related term is blue growth, which means “support to the growth of the maritime sector in a sustainable way.” The term is adopted by the European Union as an integrated maritime policy to achieve the goals of the Europe 2020 strategy. A related term is blue growth, which means “support to the growth of the maritime sector in a sustainable way.” The term is adopted by the European Union as an integrated maritime policy to achieve the goals of the Europe 2020 strategy. A related term of blue economy is Ocean Economy and we see some organizations using the two terms interchangeably. However, these two terms represent different concepts. Ocean economy simply deals with the use of ocean resources and is strictly aimed at empowering the economic system of ocean. Blue economy goes beyond viewing the ocean economy solely as a mechanism for economic growth. It focuses on the sustainability of ocean for economic growth. Therefore, blue economy encompasses ecological aspects of the ocean along with economic aspects. In other words, everything, especially waste, can be reused to the benefit of human life. They defend blue economy as the main pivot of sustainable growth.

There is now the Grey Economy, which is the informal activity that the government is unaware of, or because the government allows it to operate free of regulations and taxes. An Informal Economy (informal sector or grey economy) is the part of any economy that is neither taxed nor monitored by any form of government. Other concepts that can be characterized as informal sector can include the black market (shadow economy, underground economy), Agorism (which  is a social philosophy that advocates creating a society in which all relations between people are voluntary exchanges by means of counter-economics, engaging with aspects of nonviolent revolution. It was first proposed by American libertarian philosopher Samuel Edward Konkin III (1947–2004) at two conferences, Counter Con I in October 1974 and Counter Con II in May 1975). system D. Associated idioms include “under the table“, “off the books”, and “working for cash”. The term is also useful in describing and accounting for forms of shelter or living arrangements that are similarly unlawful, unregulated, or not afforded protection of the state. ‘Informal economy’ is increasingly replacing ‘informal sector’ as the preferred descriptor for this activity. Counter-economics is an economic theory and revolutionary method consisting of direct action carried out through the black market or the gray market. As a term, it was originally used by American libertarian activists and theorists Samuel Edward Konkin III and J. Neil Schulman.

Red Economy. According to many authors, it refers to the communist-leaning economies where the state takes hold of production and distribution. The red economy is the byproduct of Fordism (named after Henry Ford), which favors mass production and considers environmental resources to be unlimited. To put it simply, the red economy is a linear business model of taking resources and producing waste. The core business is based on low production costs that rely on a globalized economy. The social or environmental concerns are not compatible with the business.

The Yellow Economy also known as the yellow economic circle,  is a system of classifying businesses in Hong Kong based on their support or opposition to the 2019–20 protests. Proponents of the yellow economic circle frequent “yellow shops” and boycott “blue shops”, the former supporting the protesters and the latter supporting the Hong Kong Police Force. Businesses affiliated with (“red shops”) or owned by (“black shops”) the Chinese Communist Party are also targets of boycotts and vandalism by protesters, which has led to the use of the alternate name anti-communist economic circle. Politically neutral businesses are labelled “green shops”. Yellow shops that have supported pro-democracy protesters since the 2014 Umbrella Movement are sometimes referred to as “golden shops . There are certain other concepts and terminologies associated with economies like ,

The Purple Economy is that part of the economy which contributes to sustainable development by promoting the cultural potential of goods and services. “The purple economy refers to taking account of cultural aspects in economics. It designates an economy that adapts to the human diversity in globalization and that relies on the cultural dimension to give value to goods and services.

The Orange Economy: Creative Economy The creative industries refers to a range of economic activities which are concerned with the generation or exploitation of knowledge and information. They may variously also be referred to as the cultural industries (especially in Europe (Hesmondhalgh 2002, p. 14) or the creative economy (Howkins 2001), and most recently they have been denominated as the Orange Economy in Latin America and the Caribbean (Buitrago & Duque 2013). Howkins’ creative economy comprises advertising, architecture, art, crafts, design, fashion, film, music, performing arts, publishing, R&D, software, toys and games, TV and radio, and video games (Howkins 2001, pp. 88–117). Some scholars consider that education industry, including public and private services, is forming a part of creative industry. There remain, therefore, different definitions of the sector (Hesmondhalgh 2002, p. 12)(DCMS 2006). The creative industries have been seen to become increasingly important to economic well-being, proponents suggesting that “human creativity is the ultimate economic resource” (Florida 2002, p. xiii), and that “the industries of the twenty-first century will depend increasingly on the generation of knowledge through creativity and innovation” (Landry & Bianchini).

 Mzansi Golden Economy (MGE) is a strategy to reposition the cultural industries in South Africa.  The MGE strategy opens up the arts, culture and heritage sector to effectively and comprehensively contribute to economic growth and job creation. The Minister of Arts and Culture has declared 2013 as the year of MGE. Some of the projects that DAC has initiated and is implementing are; Cultural Events, Sourcing Enterprise, Public Art, Touring Ventures, Art Bank, NACISA and Cultural Observatory.

Silver Economy is the system of production, distribution and consumption of goods and services aimed at using the purchasing potential of older and ageing people and satisfying their consumption, living and health needs. The silver economy is analyzed in the field of social gerontology not as an existing economic system but as an instrument of ageing policy and the political idea of forming a potential, needs-oriented economic system for the aging population. Its main element is gerontechnology as a new scientific, research and implementation paradigm

A Circular Economy (also referred to as “circularity”) is an economic system aimed at eliminating waste and the continual use of resources. Circular systems employ reuse, sharing, repair, refurbishment, remanufacturing and recycling to create a closed-loop system, minimizing the use of resource inputs and the creation of waste, pollution and carbon emissions. The circular economy aims to keep products, equipment and infrastructurein use for longer, thus improving the productivity of these resources. Waste materials and energy should become input for other processes: either a component or recovered resource for another industrial process or as regenerative resources for nature (e.g., compost). This regenerative approach is in contrast to the traditional linear economy, which has a “take, make, dispose” model of production.

A Virtual Economy (or sometimes synthetic economy) is an emergent economy existing in a virtual world, usually exchanging virtual goods in the context of an online game, particularly in massively multiplayer online games (MMOs). People enter these virtual economies for recreation and entertainment rather than necessity, which means that virtual economies lack the aspects of a real economy that are not considered to be “fun” (for instance, avatars in a virtual economy often do not need to buy food in order to survive, and usually do not have any biological needs at all). However, some people do interact with virtual economies for “real” economic benefit.  The transactions are done through , CryptocurrencyDigital currency , Virtual currency , Electronic money.

The Knowledge Economy is an economic system in which the production of goods and services is based principally on knowledge-intensive activities that contribute to a rapid pace of advancement in technical and scientific innovation as well as accelerated obsolescence. The key element of value is the greater dependence on human capital and intellectual property for the source of the innovative ideas, information and practices. Organizations are required to capitalize this “knowledge” into their production to stimulate and deepen the business development process. There is less reliance on physical input and natural resources. A knowledge-based economy relies on the crucial role of intangible assets within the organizations’ settings in facilitating modern economic growth.    

Cognitive-Cultural Economy or cognitive-cultural capitalism is represented by sectors such as high-technology industry, business and financial services, personal services, the media, the cultural industries. It is characterized by digital technologies combined with high levels of cognitive and cultural labor.

Attention Economyis an approach to the management of information that treats human attention as a scarce commodity and applies economic theory to solve various information management problems. According to Matthew Crawford, “Attention is a resource—a person has only so much of it.” In this perspective Thomas H. Davenport and John C. Beckdefine the concept of attention as: Attention is focused mental engagement on a particular item of information. Items come into our awareness, we attend to a particular item, and then we decide whether to act. (Davenport & Beck 2001, p. 20).

Post-scarcity Economy is a theoretical economic situation in which most goods can be produced in great abundance with minimal human labor needed, so that they become available to all very cheaply or even freely. Post-scarcity does not mean that scarcity has been eliminated for all goods and services, but that all people can easily have their basic survival needs met along with some significant proportion of their desires for goods and services. Writers on the topic often emphasize that some commodities will remain scarce in a post-scarcity society.

After understanding all such colors of Economy , more and more analysis can be made to develop further mechanisms of regulations too as the color signifies what is happening in the economy through its characteristics and economic indicators.

 

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2 Responses

  1. May 24, 2021

    […] a physical form as in coins and notes, or may exist as a written or electronic account. It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative […]

  2. May 24, 2021

    […] the positive side, there are great advantages to bartering. As mentioned earlier, you do not need money to barter. Another advantage is that there is flexibility in bartering. For instance, related products can be […]

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