Economic Development Futures Journal

Thursday, July 10, 2003

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Capital in the New Economy...

As you develop new economy opportunities, remember this point:

"In the new economy, capital works in real time, moving rapidly through global financial networks. From these networks, it is investd in all kinds of economic activity, and most of what is extracted as profit is channelled back into the metanetwork of financial flows. Sophisticated infromation and communication technologies enable financial capital to move raoidly from one option to another in a relentless global search for investment opportunities. Profit margins are generally much higher in the financial markets than in most direct investments, hence, all flows of money ultimately converge in the global financial networks in search of higher gains."

Source: The Hidden Connections, by Fritjof Capra.

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