Principles of dealing with changing world order. By-Ray Dalio

Hello Readers! Today I will discuss with you the summary overview of recently published book by legendary investor Ray Dalio as mentioned in the title.

Basically there are eight key determinants for any nation to check whether a particular nation is performing in an efficient way or what is the future ahead on very logical basis. Lets discuss all the key parameters one by one.

1.Education Standards. What are the education standards of that particular country. What is the percentage of literate population along with the quality of the education has been imparted. It is a very critical factor because it is the most important fundamental that determines whether a nation will succeed or fail.

In the context of India, our education system has significantly improved with various initiatives like promotion of Entrepreneurship in higher secondary sections, initiatives like skill India and learning by quality content creation done by various documentaries, web series and television shows like Shark Tank India.

2.Competitiveness:The competitiveness is generally measured on primary four factors like economic performance, business efficiency, government efficiency and infrastructure. In todays era in order to be relevant it is very important for every competitive country to heavily invest and optimize on these factors to succeed as a nation.

In Indian context we have improved on the above mentioned factors by focusing on digitalization of various bureaucratic requirements in order to reduce corruption along with increased focus on other parameters like innovation, welfare benefits and strong leadership which has intent and capability to undertake key reforms.

3.Innovation and Technology: It is very crucial factor which makes nation a rising superpower or declining power. Investment in current and futuristic technology is of significance because it helps in improving productivity of workers, enables optimum utilization of resource and helps in sustaining image as a global superpower.

In Indian Context we have made remarkable growth in the field of science and technology after independence like Green Revolution, Space Research, building world class Information Technology parks etc. On contrast still the degree of focus required has to be increased in order to be a developed country.

4.Economic Output: Economic output in very simple terms means what is the total amount and total value of goods and services produced in a well defined time frame generally an year. It is important because higher the economic output higher will be the per captia (individual) Income.

In Indian context, we have a very well established service sector bringing billions in government revenue each year but manufacturing sector was lacking behind. In order to overcome this weakness government has launched various ambitious schemes related to it like Make in India.

5.Share of World Trade: With the increasing global economic output as defined above it is a key parameter of global reputation that what is a nations share in worlds total production of goods and services.

At this point India has made remarkable progress but is still far behind the countries like China which is considered as world factory, hence a notable improvement has to be made when it comes to worlds share to global trade.

6.Military Strength: The economic interests can only be achieved by a profound and applicable Military Policy. Military might helps in providing safety of important trade routes, fight and win the war along with eliminating internal threats.

In Indian Context, Indian Armed Forces is battle hardened army with 12 lakh active servicemen, state of the art missile technology, strong values at the core and also a nuclear Weapon state. In order to succeed a strong security force is key objective we have achieved.

7.Financial Centre: A strong financial center means a center where massive volumes of financial transactions happen between buyers and sellers and these centers have the capability to impact the world. For example there are important financial centers like New York, Singapore, Tokyo etc.

India is trying to improve its financial center status by developing other cities and also improving the existing one that is Mumbai.

8.Reserve Currency Status: It means what is the amount of currency that a central bank of a country holds in which most of the global transactions in money happen. For example the United States Dollar is regarded as global reserve currency which every nations wants to have in billions.

India has very strong Reserve currency at 632 Billion dollars which makes it financially sound to the global shocks and surprises.

A final overview by graph from the book.