Economic Development and the Rise of the QR Code - Part 2

In 2010, the IFC (International Finance Corporation) on behalf of the G-20, issued a call to the private sector “to put forward its best proposals for how public finance can maximize the deployment of private finance on a sustainable and scalable basis.”

By engaging the 22 public sector agencies of the U.S. government that support trade and by incorporating the services of the U.S. AMS, ISF, ECA and C-TPAT processes, Correlation* provides a best-in-case solution. 

“Tell the old salesman that I don’t have time for his ‘great ideas. I’m fighting a battle right now.”

Correlation,* the principal product of The Following Sea (https:Thefollowingsea.com/) uses education, visualization, chatbots and a country’s own, organic resources to achieve global scaling of excellence in a way that shares prosperity among vendors, seller/exporters, buyer/importers, and all parties to a global trade transaction.

“Fair Winds and Following Seas”

Correlation* is used to teach Lenders, Insurers and SMEs how to successfully engage in global trade. We are inspired by Carlos Honorato

who at ProChile taught entrepreneurs to export the native products of Chile to 13 countries. The German mittelstand exports to an average of 6 countries (including Russia), whereas U.S. SMEs, which rarely export, are successful in exporting to an average of 2 countries, namely Canada and Mexico. 

With Correlation*, the principal product of The Following Sea (https://the followingsea.com/), the buyer and seller use distinctive QR or Quick Response Manifests and QR encoded invoices representing both what was ordered (P.O.) by the buyer and what was manufactured and shipped by the seller, along with modern communications and finance tools to effect secure payment/acceptance/settlement of domestic and global trade transactions. 

Geolocation

Geolocation, EDI and logistics

are used to determine the actual location of shipments against their related POs, cargo manifests and the actual geolocation of the transporting truck, aircraft or vessel (s) on which goods are laded.  

At the time of shipment, the distinctive QR encoded manifests would be used by the freight forwarder to clear the U.S. AMS (Automated Manifest System) and ISF (Importer Security Filing System) processes. 

Settlement/Payment/Acceptance 

Payment/Acceptance/Settlement are, as usual, determined by the underlying terms of the sales agreement or contract and the seller and buyer respectively create QR encoded manifests and invoices that can be embedded as a Non Fungible Tokens (NFTs) 

using Blockchain

Embedding the QR code in NFT bind the QR code to a public contract and provide visibility and authentication for the contract.

The Role of Banks

The role of banks in future will be to become the local Trade Services Utility or TSU; to match the QR encoded manifest of the shipper with the QR encoded P.O. of the buyer and to cover political and commercial risks with credit insurance. Once a match is established, it becomes the basis for the paying bank’s payment/acceptance/settlement of the underlying transaction, in accordance with the terms of the underlying agreement/contract. 

The Role of Freight Forwarders and Customs House Brokers

Logistics and the supply chain are so critical to economic success and TIVA (Trade in Value-Added Product):

today that the roles of culture, freight forwarders, customs house brokers and politicians:

must be integrated into the global trade finance process. 

Only one U.S. politician to my knowledge, who has successfully driven the economic development of her state while considering all these developments:

Innovation and Violence

The full automation of trade settlement and payment, which has not yet been achieved, provides an extraordinary advantage to any nation by expediting and empowering its SMEs to engage in global trade, in economic development. 

The failure to achieve this innovation as well as mediocrity, incompetent leadership and violence have predictable results:

Colombia

Bûcha, Ukraine

Vertical Integration, Chatbots; Swords, Plowshares and Pruning Hooks

Such chatbots 

as that provided by Farmster, empowers the local farmer to sell directly to global markets by using simple, affordable communication tools. In the process, the gaping disparity 

affecting Juan Valdez on the altiplano of Colombia, who gets the equivalent of USD 200 for a bag of coffee and Starbucks or CocaCola (Keurig) get USD 10-11,000 for the same bag, after washing, sorting, roasting, bagging, advertising - is eliminated! Innovation, competence and relevance are the alternatives to violence:

Kenya

Thousands of farmers in Kenya are benefitting from access to Farmster’s chatbots:

and realize what Paul Kagame partially achieved over the “Killing Fields” of Rwanda - by obtaining a fairer price by having Rwandan farmers simply wash their coffee beans. 

SCF and DD

With Correlation*, Supply Chain Finance and Dynamic Discounting are applied to the basic agreement between buyer, vendors and seller/exporter so that they all benefit. Sellers (vendors/manufacturers/farmers) benefit through the early payment of their invoices through SCF and Dynamic Discounting, while the buyers benefit by getting a discounted price on goods purchased. 

The ICC’s Incoterms continue to describe the roles of all parties to a trade transaction and provide the basis for resolving trade disputes through arbitration, just as it always has.  

Global trade is not a disorganized Wild West Show. It is a well-crafted and disciplined process based in law, International Commerce Terms and contractual agreements. 

Leadership and the Moral of the Story:

Strategy and Potted Plants

“If you haven’t read hundreds of books, learning from others who went before you, you are functionally illiterate – you can’t coach and you can’t lead. 

History lights the often-dark path ahead; even if it’s a dim light, it’s better than none. If you can’t be additive as a leader, you’re just like a potted plant in the corner of a hotel lobby”: 

James Norman Mattis, General (retired) The Corps of United States Marines.

Impediments

On the eve of celebrating our nation’s independence, we are reminded by the cost of gasoline (petrol in Europe) and food (the cost of hot dogs is up 46% from last year), how dependent we all are on global trade and that our economic independence is a myth. 

The exists a concerted and protracted superficiality of thought in America reminiscent of the selfish and self-centered characters of The Great Gatsby:

and an anti-climate change, anti-green energy cult, which results in what the IFC in its 2010 report identified as the primary reason for the lack of SME participation in global trade, because of the lack of access to financing. These impediments and Ageism are vigorously assaulted by Correlation*:

*@William A Laraque Correlation 2013 All Rights Reserved

Next: Return of The Great Gatsby