It is a myth that in order to develop, countries must replicate Silicon Valley. As Meg Ryan of HP explained Silicon Valley is unique and is "almost an ecosystem" of creativity, venture capital and culture. The effort to replicate Silicon Valley in Moscow, Kuala Lumpur and Santiago has failed. This is despite Russia having some of the most educated and talented software designers in the world. I worked with Alex Avakov at  CSI/Banktrade when he created a relational database that launched a technological revolution in trade finance back-office operations. Alex is a refugee from Russia as are many of the most talented software engineers...in New York. I worked with a young woman who had a PhD in nuclear physics from Moscow University. She went from making a pittance to making over $200,000 a year...in NY. That was a lot of money back in 1999.

My point is that it is not necessary for countries to grow their economies by replicating the success of Silicon Valley. In fact it is not advisable to do so. Rwanda is a fine example of a country which has achieved extraordinary growth without trying to duplicate the success of Silicon Valley and high tech. Rwanda has respected its culture. After a million people were killed there in its genocide, Paul Kagame led Rwanda to extraordinary growth. How this was done is the topic for another article. In this one I want to concentrate on "low tech." 

Low tech can be as transformative as high tech for the purpose of economic development. I will provide a specific example but wish to first make the central point of this article. Economic development is the result of creating a native, organic entrepreneurship that is unique to each country. The extent and degree to which this entrepreneurship is transformed from mom and pop enterprises to micromultinationalsand then multinationals, results in economic growth and job development. Why? Because national economies can then participate in the estimated $85 trillion in trade flows in goods, services and financing that will prevail on this planet by 2025.

 

Do not be dissuaded by the fact that I do not have a PhD. PhDs have taken copious notes during my classes on international trade. I gave these classes at some of the most expensive private colleges and at some of the best public colleges in the U.S. My expertise is solely based on my education and application of my education. I have been involved in international business and trade finance since I was seven years old and my education continues because you can learn something new in international business and trade every day. I have applied my trade as a business development team leader at the finest trade finance banks in the world and as a business development officer at the U.S. Ex-Im Bank. 

 

A PhD is too often an excuse to stop learning and I never accepted this excuse or bought into this arrogance. It has taken time to write a book which challenges the high pay checks and pay grades of the ingrained and embedded "community development" community of the world.

 

Back to low tech. I now provide one simple but transformative "low tech" example. The integration of distributed energy, efficient GE gas engines, cogeneration and LED lighting results in extraordinary energy savings in large buildings. This is amply demonstrated in some very famous, large buildings in NYC. Coupled with rooftop solar energy, the savings would be even greater. Naturally, this can be implemented in every country that has a high rate of insolation. Many emerging markets, including Ukraine and many other countries that are near the equator do. (Ukraine is not). Ukrainian engineers have calculated that the country has enough insolation to provide for half its energy needs. Ukraine needs to talk to Germany.

 

I have been asked to write a book on global economic transformation and development and so I have. I wanted to have the backing of a prestigious university because that's what it takes to connect with you emotionally today; prestige. 

 

Stephen Pitt-Walker and I have the formula for the economic transformation of the globe. We have written a manual to prove it and are writing the book.