Author Archives: Arturo Duran

White Paper: Spiral Dynamics and the Evolution of Human Values

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This white paper outlines the core concepts and stages of Spiral Dynamics, incorporating deeper insights into Clare W. Graves’ theories and the dimensions of collective impact and personal behavior at the Coral stage. By understanding and applying these principles, individuals and organizations can foster growth and adaptation in an ever-changing world.

Spiral Dynamics is a psychological and social model that maps the evolution of human consciousness and values. Developed by Don Beck and Chris Cowan, it builds upon the pioneering work of psychologist Clare W. Graves. This model describes how human values and worldviews evolve in response to changing life conditions, reflecting an ongoing process of adaptation and development.

Clare W. Graves’ Theories

Clare W. Graves’ theories form the foundation of Spiral Dynamics. He proposed that human values are based on a set of psychological mechanisms that evolve over time, enabling individuals to cope with their environment. Rather than having a fixed linear structure, Graves’ model is dynamic, with each new level emerging over time, encapsulating and including the previous ones.

Understanding Memes in Clare W. Graves’ Spiral Dynamics

In Clare W. Graves’ theories around Spiral Dynamics, a “meme” refers to a distinct value system or worldview that characterizes a particular stage of human development. These memes are not mere trends or internet jokes, as the contemporary usage of the word might suggest, but rather deeply ingrained sets of beliefs, motivations, and ways of thinking that shape how individuals and societies operate. Graves identified these memes as a series of developmental stages, each representing a more complex and adaptive way of dealing with the world compared to the previous one.

Each meme in Spiral Dynamics is represented by a color and reflects a particular set of priorities and values. For instance, the “Beige” meme is associated with basic survival instincts, focusing on food, water, and shelter. The “Purple” meme encompasses tribal and familial bonds, emphasizing safety and belonging within a close-knit group. As one progresses through the stages, memes become increasingly sophisticated, addressing more complex societal and existential issues. For example, the “Orange” meme is characterized by entrepreneurial and achievement-oriented values, while the “Green” meme prioritizes community, equality, and ecological awareness. Understanding these memes provides valuable insights into human behavior and societal evolution, helping to explain why different people and cultures prioritize certain values and ways of living over others.

The Eight Memes in Spiral Dynamics

  1. Beige (Survival Sense): Focus on basic survival needs such as food, water, and shelter. This is the most primitive level, concerned with the instinctual drive for survival.
  2. Purple (Kin Spirits): Emphasis on safety and security within a tribal or family context. Values traditions, rituals, and the guidance of elders.
  3. Red (Power Gods): Dominance and power-driven, where individuals seek to assert themselves, often through aggressive or heroic actions. This meme is characterized by egocentric behavior.
  4. Blue (Truth Force): Focus on order, stability, and adherence to rules and traditions. This meme values discipline, duty, and the belief in an absolute truth or higher authority.
  5. Orange (Strive Drive): Individual achievement and success-oriented, emphasizing competition, innovation, and rational thinking. Values progress, autonomy, and material success.
  6. Green (Human Bond): Community and consensus-driven, with an emphasis on equality, environmentalism, and social responsibility. Values relationships, harmony, and shared decision-making.
  7. Yellow (Flex Flow): Systems thinking and integration, where individuals see the world as a complex, interconnected system. Values flexibility, knowledge, and the ability to adapt to changing conditions.
  8. Turquoise (Global View): Holistic and transpersonal perspective, where individuals see the interconnectedness of all life and focus on the well-being of the entire planet. Values global awareness, spiritual growth, and the integration of diverse perspectives.

The Ninth Meme: Coral

Higher integration and complexity,

Coral represents a further stage of consciousness beyond Turquoise, characterized by:

  • Integration of Complexity and Simplicity: A deep understanding of complex systems and the simplicity within them, recognizing the intricate interconnectedness of life while also valuing straightforward solutions.
  • Transcendence of Duality: Moving beyond binary thinking to embrace paradoxes and multiple perspectives simultaneously.
  • High Fluidity and Flexibility: Greater adaptability in thought and action, with the ability to shift between different value systems as needed.
  • Emphasis on Being: Focusing on presence and awareness, connecting deeply with the essence of existence.
  • Synthesis of Individual and Collective: Balancing individual autonomy with collective well-being, where personal growth and communal harmony are interdependent.
  • Global and Cosmic Awareness: Expanded responsibility and awareness that includes cosmic or universal considerations.

Collective Impact Dimension in Coral

  1. Unified Vision: Pursuing a shared vision for societal and planetary well-being, integrating goals across sectors.
  2. Collaborative Leadership: Facilitating cooperation and shared responsibility among diverse groups.
  3. Systemic Solutions: Addressing root causes with holistic approaches considering interconnected systems.
  4. Shared Metrics: Using common metrics for coordinated efforts and shared accountability.
  5. Continuous Communication: Maintaining open channels for alignment, learning, and strategy adaptation.

Personal Behavior Dimension in Coral

  1. Self-Transcendence: Aligning personal actions with higher values and transcending ego.
  2. Ethical Integrity: Upholding high ethical standards in all aspects of life.
  3. Emotional Intelligence: Demonstrating empathy, self-regulation, and social skills.
  4. Mindfulness and Presence: Practicing mindfulness and staying present.
  5. Sustainable Living: Adopting sustainable lifestyles and minimizing ecological footprints.
  6. Empowerment and Service: Empowering others and engaging in acts of service.

Integration of Collective Impact and Personal Behavior

In the Coral meme, the integration of collective impact and personal behavior represents a mature, holistic stage of development. This stage emphasizes:

  • Synergy: Collective efforts create greater impact than individual actions alone.
  • Holistic Approaches: Recognizing the interdependence of personal growth and societal change.
  • Global Stewardship: Commitment to planetary stewardship, ensuring personal and collective actions contribute to sustainability.

Spiral Dynamics, based on Clare W. Graves’ theories, provides a framework for understanding the evolution of human values and consciousness. The nine memes, culminating in Coral, reflect the ongoing development of individuals and societies, integrating personal and collective dimensions to address complex global challenges. As humanity continues to evolve, embracing these advanced stages of consciousness can lead to more sustainable, harmonious, and impactful ways of living and working together.

 The Real Reasons Behind Gaddafi’s Demise: Assessing Libya’s Socio-Economic Policies

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Gaddafi’s social and economic programs: free electricity, interest-free loans, housing, support for newlyweds, education, healthcare, agricultural support, medical treatment abroad, car purchase subsidies, affordable fuel prices, economic stability, unemployment support, direct benefits from oil sales, financial support for new mothers, affordable bread, and the “BIG MAN PROJECT”

The assassination of Muammar Gaddafi, the former leader of Libya, in 2011 sparked widespread speculation about the motives behind his death. While political factors certainly played a role, it is essential to understand the socio-economic policies implemented by Gaddafi’s regime. This article aims to shed light on some of the initiatives introduced during Gaddafi’s rule and provide a balanced perspective on their implications for the Libyan population.

1. Free Electricity for All:
Under Gaddafi’s leadership, Libya provided free electricity to its citizens, eliminating the burden of electricity bills. This policy aimed to enhance the living standards of the population and alleviate financial pressures.

2. Interest-Free Loans:
In line with the state-owned banking system, Gaddafi abolished interest rates on loans, ensuring that citizens were not burdened by excessive debt. This initiative aimed to promote economic stability and empower individuals to pursue entrepreneurial ventures without the fear of high interest rates.

3. Housing for All:
Gaddafi pledged that he would not buy a house for his parents until every Libyan owned a home. This commitment to housing provision aimed to address the housing shortage in the country and ensure that every citizen had access to decent accommodation.

4. Support for Newlyweds:
Newly married couples in Libya received financial support from the government, enabling them to purchase their own apartments and start their families. This initiative aimed to encourage family formation and support the establishment of stable households.

5. Education and Healthcare:
During Gaddafi’s reign, education and medical treatment were provided free of charge to all citizens. This resulted in a significant increase in literacy rates, with 83% of the population becoming literate compared to the previous 25%. Similarly, accessible healthcare contributed to improved overall well-being and life expectancy.

6. Agricultural Support:
Libyans desiring a rural lifestyle received household appliances, seeds, and livestock free of charge, facilitating their transition to farming. This initiative aimed to promote agricultural self-sufficiency and empower individuals to pursue alternative livelihoods.

7. Medical Treatment Abroad:
In cases where medical treatment was not available in Libya, the state funded the expenses, including accommodation and travel, for citizens seeking treatment abroad. This policy ensured access to specialized healthcare services for those in need.

8. Government Subsidies for Car Purchase:
The Libyan government provided financial assistance by financing 50% of the price for citizens purchasing a car. This initiative aimed to enhance mobility and improve accessibility to transportation.

9. Affordable Fuel Prices:
Under Gaddafi’s rule, the price of gasoline was remarkably low, at $0.14 per liter. This subsidized fuel cost aimed to alleviate the financial burden on citizens and facilitate affordable transportation.

10. Economic Stability:
Libya boasted no external debt and held reserves of $150 billion during Gaddafi’s regime. However, these reserves were frozen worldwide following his demise. This economic stability contributed to a sense of security and prosperity for the Libyan population.

11. Unemployment Support:
To address the issue of unemployment, the government committed to paying the average salary for graduates unable to find employment. This initiative aimed to provide a safety net for individuals during their job search and mitigate the economic challenges associated with unemployment.

12. Direct Benefits from Oil Sales:
Part of the revenue generated from oil sales in Libya was directly linked to the bank accounts of all citizens. This policy aimed to distribute the wealth derived from natural resources more equitably among the population.

13. Financial Support for New Mothers:
Mothers who gave birth received a financial benefit of $5000, providing support during the critical period after childbirth. This initiative aimed to promote the well-being of mothers and infants.

14. Affordable Bread:
The cost of bread in Libya was significantly low, with 40 loaves priced at $0.15. This subsidized price ensured that basic food necessities were affordable and accessible to all citizens.

15. The “BIG MAN PROJECT”:
Gaddafi implemented an ambitious irrigation project known as the “BIG MAN PROJECT” to combat water scarcity in the desert region. This initiative aimed to ensure water availability for agricultural purposes, contributing to food security and economic development.

While these socio-economic policies implemented during Gaddafi’s rule had positive implications for the Libyan population, it is crucial to note that this article does not intend to provide an exhaustive analysis of Gaddafi’s regime or the circumstances surrounding his death. The purpose is to highlight some of the initiatives introduced and their potential impact on the lives of the Libyan people. It is essential to recognize the complex dynamics that shaped Libya’s political landscape during that period and the diverse perspectives surrounding Gaddafi’s rule.

Was the Gaddafi’s model a threat to the free market economics foundations of the US and Europe?
Is this a sign of the demise and downfall of the USA Empire ?

While it is true that Gaddafi’s socio-economic policies presented an alternative model to the Western capitalist system, it is important to approach the question of Western countries’ motives with caution. The decision to intervene in Libya and support the removal of Gaddafi was driven by a combination of factors, including geopolitical interests, regional stability concerns, and the desire to support democratic movements during the Arab Spring.

The Western countries, especially the United States, have historically pursued their national interests and prioritized their security concerns. Gaddafi’s regime had a complicated relationship with the West, marked by periods of hostility and intermittent cooperation. It is unlikely that the sole reason for Western intervention was solely based on fears that Gaddafi’s policies would undermine the “American Dream” or the social fabric of Western societies.

The intervention in Libya was justified on humanitarian grounds, as Gaddafi’s forces were accused of committing human rights abuses and suppressing opposition movements. The international community, including Western countries, was concerned about the potential for a violent crackdown on the Libyan population and sought to prevent a humanitarian crisis.

Additionally, Gaddafi’s support for international terrorism, involvement in regional conflicts, and strained relations with Western powers played a role in the decision to intervene. The Western countries saw an opportunity to support the Libyan opposition and facilitate a transition to a more democratic and stable government.

While Gaddafi’s socio-economic policies may have been viewed as a challenge to the Western capitalist model, it is unlikely that this was the sole or primary reason for Western intervention. The decision to intervene in Libya was influenced by a complex mix of political, strategic, and humanitarian considerations, rather than a direct threat to the “American Dream” or the social fabric of Western societies.

Elon Musk and Digital Mobile Voting

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The Future of Voting: Mobile Apps vs. Traditional Methods

IIn the digital age, where convenience often dictates innovation, the idea of voting through a mobile app, akin to banking apps secured with two-step verification, appears as a progressive step towards modernizing electoral processes. Imagine the ease—casting your vote from the comfort of your home, without the need to visit a polling station. The convenience is undeniable, much like having a personal teleportation device. But, as enticing as this sounds, several significant concerns arise, primarily revolving around security and the integrity of the democratic process.

Security Concerns with Mobile Voting

The primary concern with mobile voting lies in the potential for security breaches. Our phones, though integral to our daily operations, are susceptible to hacking and malware. The stakes in an election are immensely high, involving national or even global implications. A breach in voting security could mean manipulation of results, a risk not worth taking lightly. The idea of hackers, whether independent or state-sponsored, tampering with election results through a mobile app is a frightening prospect, capable of undermining the very foundation of democracy.

Comparing Security: Mobile Apps and Voting Machines

While mobile phones are used for a variety of secure transactions, including banking, the comparison with mobile voting isn’t entirely parallel. Banking systems are robust, protected by layers of security measures and continuously monitored for fraudulent activities. Despite this, banks still face security breaches, evidenced by the thousands of fraud cases reported annually. In contrast, traditional voting systems, despite their vulnerabilities and reported issues, are isolated networks, not connected to the internet, making widespread tampering more challenging.

The Argument for Traditional Voting Machines

Traditional voting machines, despite their perceived obsolescence, offer certain reliability. These machines are controlled environments—physically monitored and less prone to mass-scale hacking compared to software applications that could be downloaded by anyone with a smartphone. This physical security layer, while not foolproof, offers a semblance of control and manageability that a widely distributed mobile app might not.

Looking Forward: The Need for Robust Mobile Voting Solutions

The future might hold a place for mobile voting, provided there can be guarantees of security akin to those provided by the most secure financial institutions, enhanced with the most advanced cybersecurity measures available. Until such a time, the prudent course would be to improve and trust the traditional methods that have served us thus far.

In conclusion, while mobile voting presents an appealing picture of convenience and modernity, the security risks at present outweigh the potential benefits. The integrity of the voting process is paramount, and thus, a cautious approach, favoring secure, traditional methods is advisable until technology can assure absolute security in mobile voting systems.

AI-driven technology in the luxury sectors enables efficient, accurate, and personalized services for high-margin clients.

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Reading many articles about the use of AI in different verticals, one stood out to me: the impact of AI in the Travel Industry. The top 5% to 10% in the industry, akin to the fashion world, enjoy margins far beyond the rest. However, some at this level risk losing their edge by underestimating the power of AI.

There are always those called the #Bizosaurus (Business Dinosaurus, ( “EmpreSaurios” in Spanish) who still believe that technology will eliminate the personal touch in the travel industry. However, this perspective overlooks the critical role AI plays, especially in the high-margin luxury travel sector.

AI is essential because it enables the handling of processes efficiently, accurately, and swiftly—capabilities that human resources alone cannot match, especially with the increasing number of modifications and personalized requests from customers. For the top 5% of travelers, who expect impeccable and bespoke service, AI ensures their needs are met seamlessly.

Furthermore, many goods and services in this category of clients, who are not sensitive to price elasticity, continue to dominate the best margins. These clients expect their suppliers to provide the best and fastest solutions for everything. This means that luxury travelers demand cutting-edge technology and top-tier service, which AI can deliver, ensuring a superior customer experience.

Moreover, the innovations and high-level services developed for the luxury travel market often trickle down to the rest of the industry, transforming these exclusive services into a sort of #prêtàporter for the remaining 95% who are focused on competitive pricing and shrinking margins. This is akin to the fashion industry, where top designers leverage more advanced technology than the entire prêt-à-porter sector to deliver cutting-edge creations.

In summary, AI is not just a tool for cost-saving in the travel industry but a crucial element in delivering the exceptional service that luxury travelers demand, and in turn, setting new standards for the broader market. It enables businesses to meet the high expectations of their most profitable clients, who look for speed, efficiency, and innovation from their service providers.

Mexico Presidential Election brings complex social issues

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“False Consensus” & the “Majority Illusion” in the

Mexican Presidential Election

Overall, the implications of the “False Consensus” and the “Majority Illusion” in the Mexican Presidential election have profound consequences for democracy, social cohesion, and the well-being of the Mexican population. It is crucial to challenge these biases, promote inclusivity, and foster a more equitable and representative political landscape.

Since the Mexican Presidential election, there has been a growing phenomenon known as the “False Consensus” and the “Majority Illusion” among the middle and upper classes. These classes, which predominantly consist of the traditional elite, have been expressing disbelief and claiming that it is impossible that a popular woman could have won the election.

Similar to the situation in the United States during the 2016 Presidential election between Hillary Clinton and Donald Trump, there is a sense of disconnect between the perceptions of the middle and upper classes and the reality experienced by the majority of Mexicans. This divide is creating a false consensus among the privileged few, leading them to believe that their views and opinions are shared by the majority. ( I wrote about this in 2017 “FALSE CONSENSUS & The MAJORITY ILLUSION THE USA ELECTION“)

The “Majority Illusion” is prevalent among the middle and upper classes in Mexico, as they are convinced that their social circles and networks represent the views and values of the entire population. This illusion leads them to believe that their beliefs and preferences are more common than they actually are. It is a form of cognitive bias that distorts their perception of reality and prevents them from understanding the true diversity of opinions and experiences among the Mexican population.

The “False Consensus” effect further exacerbates this divide. As individuals overestimate the prevalence of their own features and beliefs in the population, they assume that the majority of the population shares their political affiliations and ideologies. In the case of the Mexican Presidential election, this has led to the false belief among some members of the middle and upper classes that the majority of Mexicans are against the popular woman who won the election. This erroneous perception overlooks the diverse range of voices and support that contributed to her victory.

Furthermore, “Pluralistic Ignorance” plays a role in reinforcing this false consensus. This social perception bias occurs when individuals incorrectly believe that a majority holds certain beliefs or opinions, even when they themselves do not share those views. This phenomenon is evident as some members of the middle and upper classes in Mexico accept as absolute truth the notion that the popular woman’s victory is an anomaly and that the majority of the population does not support her.

The impact of the “False Consensus” and the “Majority Illusion” in the Mexican Presidential election goes beyond simple misunderstandings or misperceptions. It has significant implications for the country’s social fabric and political landscape. The dismissal of the popular woman’s victory by the middle and upper classes perpetuates a sense of elitism and undermines the democratic principles of inclusivity and representation.

In conclusion, the “False Consensus” and the “Majority Illusion” are social phenomena that have emerged in the context of the Mexican Presidential election. The middle and upper classes, driven by cognitive biases and a distorted perception of reality, are claiming that it is impossible for a popular woman to have won. This false consensus overlooks the diversity of opinions and experiences within the Mexican population and undermines the principles of democracy and representation. It is crucial for all members of society to recognize and challenge these biases in order to foster a more inclusive and democratic Mexico.

The implications of the “False Consensus” and the “Majority Illusion” in the Mexican Presidential election are significant and far-reaching.

Undermining democratic principles: The belief among the middle and upper classes that it is impossible for a popular woman to have won the election undermines the principles of democracy and representation. It suggests a disregard for the will of the majority and perpetuates a sense of elitism, where the privileged few believe their views and opinions should prevail over those of the broader population.

Marginalizing diverse voices: The false consensus created by the middle and upper classes overlooks the diverse range of voices and perspectives within the Mexican population. It dismisses the experiences and aspirations of marginalized communities, reinforcing social inequalities and exacerbating the existing power imbalances.

Polarization and division: The “False Consensus” and the “Majority Illusion” contribute to polarization and division within society. By falsely assuming that the majority of Mexicans do not support the popular woman’s victory, it creates an “us versus them” mentality, deepening the rift between different social groups and hindering efforts to build a cohesive and inclusive nation.

Discrediting legitimate outcomes: The rejection of the popular woman’s victory based on the false consensus undermines the legitimacy of the electoral process. It fosters a lack of trust in democratic institutions and the electoral system, potentially leading to a sense of disillusionment and apathy among the broader population.

Stifling progress and change: The false consensus perpetuates a status quo that favors the interests of the middle and upper classes, hindering progress and social change. By dismissing the popular woman’s victory, it disregards the potential for new ideas, perspectives, and policies that could address the pressing issues faced by Mexico and its citizens.

Reinforcing gender biases: The disbelief in the popular woman’s victory further highlights the deep-seated gender biases and discrimination that persist in Mexican society. It sends a message that women are not capable of holding positions of power and influence, undermining the progress made in achieving gender equality and representation.

“Many ask why Banks in Chile are so profitable? “

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We charge you more because we can, we control your country…:

Many Banks have told me that when talking about what used to be the more admired democracy in LATAM for the right side of the political spectrum.

Let’s analyze just data. comparing Canadian Banks with Chilean Banks since many are own by the same companies :

Canada Data :

To understand the ratio where banks in Canada make money based on the information you’ve provided, we need to compare the interest rates banks pay on deposits versus what they charge on loans. The interest rates banks offer for savings or deposits are the costs to the bank, and the rates they charge on loans represent their income. The difference between these rates is a key source of bank revenue, often referred to as the “net interest margin.”

Interest Earned on Deposits

  1. Standard Interest Range: 0.65% to 1.90%
  2. Smart Interest: An additional 0.50% for saving at least $200 a month (up to a balance limit of $200,000).
  3. Bonus Interest: A bonus interest rate of 3.35% for the first four months on new accounts (up to a balance limit of $1,000,000).
  4. Maximum Interest Potential: Up to 5.75%.

Average Personal Loan Interest Rates by Credit Score

  • Poor (500 to 579): 17.49%
  • Fair (580 to 669): 14.20%
  • Good (670 to 739): 9.85%
  • Excellent (740 to 900): 7.20%

Analysis

Banks make money on the spread between what they pay out in interest on deposits and what they earn on loans. The exact ratio can vary widely depending on the mix of loans and deposits a bank has, as well as the specific rates involved.

  • On Deposits: The bank’s cost can vary from as low as 0.65% to as high as 5.75%, considering all types of interests including standard, smart, and bonus interests.
  • On Loans: The bank’s income from loans can range from 7.20% (excellent credit) to 17.49% (poor credit).

Calculating the Ratio

To calculate a simple ratio of income to cost, we can consider the lowest earning rate on loans (7.20%) and the highest cost rate on deposits (5.75%).

However, a more accurate measure would consider the average loan rate and the weighted average cost of deposits, taking into account how much money is held in accounts with each interest rate. Given the vast range in loan interest rates and the potential for high deposit rates (up to 5.75%), the net interest margin can vary significantly.

Let’s proceed with a simplified calculation using the lowest loan rate (for excellent credit scores) and the highest potential deposit rate to get a conservative estimate of the bank’s interest margin.

Interest Margin Ratio=Lowest Loan RateHighest Deposit Rate=7.20%5.75%Interest Margin Ratio=Highest Deposit RateLowest Loan Rate​=5.75%7.20%​

Let’s calculate this ratio.

The simplified interest margin ratio, using the lowest loan rate (7.20%) and the highest potential deposit rate (5.75%), is approximately 1.25. This means that for every dollar the bank pays in interest on deposits, it earns about $1.25 in interest from loans to borrowers with excellent credit scores. It’s important to note that this is a very simplified analysis and actual bank profitability from interest can vary based on a multitude of factors, including the distribution of loans across different credit scores and the actual balances held at various interest rates for deposits. ​​

What when take a look at Chile :


To analyze the interest margin ratio for banks in Chile using the numbers you’ve provided, we’ll consider the interest rates banks pay (or equivalent financial metrics) and the rates they charge on loans.

Deposit Rates in Chile

From your description, it seems the focus is on the general interest environment rather than specific deposit rates offered by banks. However, the provided average value of 4.69% with a minimum of 0.32% and a maximum of 11.25% could serve as a proxy for the cost of funds or interest paid on deposits over time. For our purposes, let’s use the average rate of 4.69% as a stand-in for the cost of deposits, acknowledging this is a simplification.

Lending Rates in Chile

  1. Bank Lending Rate in 2023: Averaged 16.61%.
  2. Credit Card and Retail Loans: Averaged 42% over the last five years, with a high of 48% in 2023.

Analysis

For this analysis, we will compare the average cost of deposits (4.69%) to:

  1. The average bank lending rate in 2023 (16.61%).
  2. The average rate for credit card and retail loans over the last five years (42%).
  3. The high rate for credit card and retail loans in 2023 (48%).

This will give us an understanding of the range of interest margin ratios banks in Chile might experience across different types of lending.

Let’s calculate these ratios now.Error analyzing

The calculated interest margin ratios for banks in Chile, based on the provided data, are as follows:

  1. For the average bank lending rate in 2023 (16.61%) compared to the average cost of deposits (4.69%), the interest margin ratio is approximately 3.54. This means that for every dollar the bank pays in interest on deposits, it earns about $3.54 in interest from loans.
  2. For the average rate for credit card and retail loans over the last five years (42%) compared to the average cost of deposits, the interest margin ratio is approximately 8.96. This indicates that for every dollar paid in deposit interest, the bank earns about $8.96 in interest from credit card and retail loans.
  3. For the high rate for credit card and retail loans in 2023 (48%) compared to the average cost of deposits, the interest margin ratio is approximately 10.23. This suggests that for every dollar paid in interest on deposits, the bank earns about $10.23 in interest from these loans at the high rate.

These ratios illustrate the significant difference in potential profitability between traditional lending and credit card or retail loan products, with the latter offering substantially higher margins. ​

So how do Bankers explains the differences vs one an another ?

When comparing the interest margin ratios in Canada and Chile, several key observations stand out, reflecting differences in the banking landscapes and economic conditions of the two countries:

Canada’s Banking Environment

  • The interest margin ratio calculated for Canada, using a simplified approach and conservative estimates (the lowest loan rate for excellent credit and the highest deposit rate), was approximately 1.25. This suggests a relatively narrower margin between what banks earn on loans and what they pay on deposits.
  • The Canadian banking system is known for its stability and conservative lending practices. The relatively lower margin reflects a more regulated environment, where interest rates on loans and deposits are closer together, partially due to competitive pressures and a focus on maintaining financial system stability.

Chile’s Banking Environment

  • In Chile, the interest margin ratios calculated were significantly higher, with ratios of 3.54 for traditional bank lending, 8.96 for the average rate on credit card and retail loans over the last five years, and 10.23 for the high rate in 2023. These higher ratios indicate a much larger spread between the interest banks earn on loans and what they pay on deposits.
  • The higher ratios in Chile can be attributed to several factors, including potentially higher operational costs, risk premiums due to economic volatility, and a different regulatory environment. Credit card and retail loans, in particular, show exceptionally high interest rates, reflecting the higher risk and possibly higher default rates associated with these types of lending.

Effective Multibenefit Marketing

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When an exceptional product, service, or solution fails to gain momentum, the challenge often lies in its marketing strategy. This predicament is notably prevalent across industries like food, travel, and financial services, where the competition is fierce and consumer expectations are high. The secret to overcoming this hurdle is rooted in multibenefit marketing – a comprehensive approach that showcases the various advantages your offering brings to the table.

To dissect the issue, it’s crucial to scrutinize the benefits your product or service provides. This analysis isn’t merely about listing features; it’s about understanding how these features translate into functional, symbolic, and experiential benefits for your customers. For instance, in the food industry, a product might not only offer the functional benefit of nutrition but also the symbolic benefit of sustainability and the experiential benefit of unique flavors. Similarly, travel services can highlight the practicality of hassle-free planning, the prestige of exclusive destinations, and the joy of immersive experiences. Financial services can promise the efficiency of transactions, the status of premium offerings, and the peace of mind that comes with expert advice.

If your offering is struggling to make an impact, it’s time to reevaluate your marketing approach. Are you effectively communicating how your product or service meets various customer needs and desires? By emphasizing the multifaceted benefits, you can appeal to a broader audience and enhance your product’s attractiveness. This strategy not only distinguishes your offering from competitors but also addresses the diverse motivations behind customer choices, increasing your likelihood of success.

In essence, if you find your groundbreaking product, service, or solution languishing in obscurity, consider whether your marketing effectively highlights its multiple benefits. This approach could be the catalyst you need to capture the attention and hearts of potential customers, propelling your offering to the success it truly deserves.

So how you got here?

Many will tell you that if you build an amazing product it will sell by itself, but many companies have found that it requires not just an amazing product but then the effort of the Marketing Team to position that product, specifically, tangible, in several categories. During my time as head of Marketing in several industries from Food, Technology and Financial Services, I always used a rule for those programs and assigning spending to it, even before you can think on what media, where , etc.. you have to make sure you define this 3 benefits :

– Functional Benefits: Practical advantages like time-saving, cost reduction, or problem-solving. For instance, a car’s good mileage or a software’s user-friendly interface.

– Symbolic Benefits: The status or identity the product confers on its owner, making them feel successful, eco-friendly, or part of an exclusive group. Examples are the elegance of an Apple product or Patagonia’s eco-conscious image.

– Experiential Benefits: The feelings or sensations experienced during use, such as joy, comfort, or nostalgia. Disneyland’s immersive entertainment and the comforting aroma of cinnamon rolls are prime examples.

EVEN MORE NOW

In today’s competitive market, successful brands understand that effective marketing transcends mere product promotion. It involves a holistic approach that encompasses multiple types of benefits to resonate deeply with consumers.

This strategy is not confined to any single industry but is applicable across various sectors, including Food, Travel, and Financial Services. I have been involved in those three, so my take of how it will look my definition of targeting.

Food Industry: Take, for example, a gourmet restaurant that sources its ingredients locally. The functional benefits here include the freshness and quality of the food. Symbolically, it communicates a commitment to community support and environmental sustainability, enhancing the diner’s perception of contributing to a greater cause. The experiential benefit comes from the unique dining experience, where the story of each dish adds to the overall enjoyment and satisfaction of the meal. This multifaceted approach not only attracts customers looking for a high-quality meal but also those who value environmental sustainability and community support.

Travel Industry: In the travel sector, a luxury tour operator might offer packages to exotic destinations. The functional benefits include comprehensive travel planning, comfortable accommodations, and personalized itineraries. On a symbolic level, it conveys a sense of exclusivity and achievement, appealing to the traveler’s desire for prestige and social status. The experiential benefits are found in the immersive experiences offered, from private tours of hidden gems to exclusive access events, providing travelers with memories that last a lifetime. This blend of benefits appeals to a wide range of travelers, from those seeking convenience and comfort to those desiring unique and enriching experiences.

Financial Services: A wealth management firm provides another excellent example. Functionally, it offers sound financial advice and investment strategies. Symbolically, being a client of a reputed firm can signify financial success and security. The experiential benefit comes from the personalized service and the sense of confidence and peace of mind that comes from knowing one’s financial future is in good hands. This combination of benefits attracts clients not just for the financial expertise but for the prestige and personalized experience as well.

The most effective marketing strategies are those that offer a blend of functional, symbolic, and experiential benefits. By appealing to a broad spectrum of consumer needs and desires, brands can differentiate themselves in a crowded marketplace. Whether it’s the food we eat, the places we travel, or the way we manage our finances, the value of a product or service is greatly enhanced when it’s marketed through a multi-faceted lens. As businesses continue to evolve, so too will the art of marketing, always with the goal of creating deeper connections with consumers.

September 11th. a personal journey

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September 11th, a date that now carries the weight of two decades, floods my thoughts with an overwhelming surge of memories. A decade ago, on this very day, the world was shaken to its core, leaving an indelible mark on my soul.

I recall that crisp Tuesday morning, ten years past, as I embarked on a journey from Boston to Toronto. The early hours saw me boarding a flight at Logan Airport, a time when Air Canada shared the terminal with United Airlines. Amidst the bustle of travelers, adorned in the light attire of summer, destined for destinations like Los Angeles, an eerie sensation gripped me.

Yet, in the depths of my semi-conscious state, I found myself drifting back in time, to a fateful day twenty-seven years prior. It was a day when news echoed of Salvador Allende’s fall in Chile, a democratically elected leader brought down by the merciless hands of a military “coup d’état.” In my youthful fervor, I held onto a fervent belief that Latin America was in need of leaders who could carve their path through the democratic process, champions of justice and architects of a brighter future for all.

In the wake of that seismic event, my youthful heart ached deeply. Like countless others across Latin America, the demise of Salvador Allende etched an indelible scar across my very being. The names and faces of that movement, which had intertwined with my life, resurfaced in my mind as I stood on the precipice of my flight. Enveloped by the whir of engines and the hum of anticipation, my thoughts cascaded through the corridors of time, a torrent of emotions intertwining past and present.

My ventures didn’t stop there, for destiny seemed to have a penchant for intertwining my path with the ebb and flow of nations.

The evening of November 9, 1989, forever etched in history as the night the Berlin Wall crumbled, holds a deeply personal significance for me. I was present during those tumultuous days, from November 6th to the 11th, navigating a business trip that had abruptly transformed into a front-row seat to history in the making. As I stood amidst the fragments of a divided world giving way to unity, I couldn’t help but reflect on the surreal journey that had brought me to that moment.

In January 27, 2008, I found myself in Jakarta, Indonesia, a witness to the seismic shift that saw Suharto’s regime crumble under the weight of change. My role as the head of the Polaroid Corporation in the country meant I was not merely an observer; I was a participant in the unfolding narrative of transformation. This, after three years of residing in the dynamic landscape of China, where each day presented its own tapestry of experiences and insights.

Yet, the tapestry of my life is woven from threads that span even further. Cast your gaze to March 23, 1994, and you will find me in Tijuana, Mexico, in the company of Luis Donaldo Colosio, who I met in Philadelphia in 1989. Little did I know that our encounter would be a poignant marker in my journey, as Colosio’s presence would forever be intertwined with a momentous period in Mexican history.

These instances, though disparate, form a connective tissue that binds the chapters of my life. They are not mere episodes but rather windows into the transformative power of human events. Through them, I’ve witnessed the collapse of walls both physical and metaphorical, the rise and fall of leaders, and the pulse of change reverberating across nations.

As I reflect on these experiences, I am reminded that life is a mosaic of moments, each contributing its hue to the larger canvas. The events I’ve encountered have imprinted upon me a profound understanding of the fluidity of existence and the resilience of the human spirit. From the fall of walls to the ascent of new beginnings, my journey has been a testament to the enduring force of change and the unwavering human capacity to adapt, evolve, and be present in the midst of history’s unfolding tapestry.

“Escaping the Illusion: Embracing Conscious Reality in a Common-Sense World”

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From a young age, I’ve immersed myself in a wide range of texts, devouring knowledge from diverse sources that led me to venture into the hidden corners of the digital universe. In this ever-expanding realm, I’ve uncovered an intriguing paradox that governs our perceptions—a phenomenon echoed by the insights of Deepak Chopra. In 2017 I wrote an article about the False Consensus and the Majority Illusion.

The Worldview Trap: Deepak Chopra adeptly highlights the subtle and often invisible snare that ensnares us all—the confines of our worldview. This intricate mosaic shapes our perception of reality, rooted in the dual foundations of self-identity and the physical world we perceive. Yet, concealed within our worldview lie unwelcome remnants: scars of past experiences, outdated conditioning, and unresolved wounds.

The Concealed Cage: More elusive than these unwelcome tenants is a subtler, yet profound, confinement. Our worldviews function as limited models of reality, akin to the agoraphobe’s fear of open spaces, limiting our access to the full spectrum of human experience. Just as the agoraphobe’s world is confined to the walls of their home, our self-imposed worldviews imprison us, obscuring the most vital facet of authentic reality—the boundless realm of pure consciousness.

Transcending the Egoic Lens: In this era of practicality and empirical reasoning, we’re ensnared by the allure of the tangible—physical entities that we see, touch, and interact with daily. However, as Deepak Chopra emphasizes, true liberation emerges when we transcend this egoic lens. Our familiar “I” consciousness, entwined with a mere sliver of the infinite field of consciousness, becomes the gateway to infinite possibilities. It’s a choice to shatter the shackles of common-sense reality and embrace a broader understanding—one that perceives not just a world of tangible “stuff,” but a boundless field of consciousness.

Embracing Conscious Reality: As we stand at this crossroads, the path toward liberation beckons. It’s a journey where we dismantle the constraints of our self-imposed worldview, daring to explore the uncharted territory of consciousness. Like a traveler voyaging into the unknown, we relinquish the comforts of the familiar for the exhilaration of expanding horizons. To embrace conscious reality is to unlock the treasure trove of existence—an existence that extends far beyond the limitations of the common-sense world.

Conclusion: In the intricate tapestry of our existence, the threads of false consensus, the majority illusion, and the common sense reality trap are interwoven. However, as Deepak Chopra’s wisdom illuminates, there is a path toward emancipation. By acknowledging the limitations of our worldviews and embracing the vast, unbounded field of pure consciousness, we not only break free from the illusion but also step into a reality that transcends the ordinary. Let us embark on this transformative journey—a journey that leads us to perceive, understand, and experience reality in its most profound and expansive form.

How to Protect Beneficial Microorganisms from HUMAN ACTIVITIES

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I was this week at a Mining Conference in Antofagasta, Chile. For those that do not know in this area is located Chuquicamata the world’ largest copper, gold and molybden open pit mine, in terms of excavated volume. It is located in the north of Chile, just outside Calama, at 2,850 m above sea level.

Among many great presentations and an a Fireside Chat with me and my friend Osvaldo Pasten a figure in the Mining industry and from the region; but then one expositor called my attention, the CEO of Domolif, Pamela Chavez took the audience over a trip inside our body and how with so many contaminants we are killing all those living good bacteria that is part of the human body ecosystem. So this is what I learn and remember, plus some of the conclusions we came with in the after conference meeting and conversation, especially with Lab Director at Domolif, PHD Valeria Garcia.

MICROBIOTA

The human body is a remarkable ecosystem teeming with a diverse array of microorganisms, collectively known as the microbiota. These microorganisms, particularly the “good bacteria,” play a vital role in maintaining our overall health and well-being. Unfortunately, human activities have inadvertently put these beneficial microorganisms at risk. Pollution with heavy metals, silica dust, and other contaminants can have detrimental effects on the delicate balance of the microbiota. In this article, we will explore the impact of human activities on these microorganisms and suggest ways to protect and improve their survival for the benefit of human health.

The Importance of Beneficial Microorganisms:

Beneficial microorganisms, especially those residing in our gut, play crucial roles in various bodily functions. They aid in digestion, bolster the immune system, produce essential vitamins, and even influence our mental well-being. Their presence is vital for maintaining a healthy gut and overall body function.

Human Activities and Microbial Destruction:

  1. Pollution with Heavy Metals: Human industrial activities have led to the release of heavy metals like lead, mercury, cadmium, and arsenic into the environment. These metals can find their way into our food and water sources. When ingested, they can disrupt the balance of the gut microbiota and reduce the abundance of beneficial bacteria, leading to potential health issues.
  2. Silica Dust Exposure: Certain occupations, such as mining, construction, and manufacturing, expose workers to silica dust, which can be inhaled and ingested. Silica dust exposure has been linked to alterations in the gut microbiota, affecting the diversity and composition of beneficial bacteria.
  3. Pesticides and Chemicals: Widespread use of pesticides and chemicals in agriculture and other industries has raised concerns about their impact on the microbiota. These substances can have unintended effects on beneficial microorganisms, potentially leading to imbalances in the gut ecosystem.
  4. Antibiotics Overuse: While antibiotics are essential for treating bacterial infections, their excessive and improper use can harm beneficial bacteria. Antibiotics do not discriminate between harmful and beneficial microbes, leading to a decline in the diversity of the gut microbiota.

Protecting Beneficial Microorganisms:

  1. Reducing Pollution and Contaminant Exposure: Governments, industries, and individuals must work together to reduce pollution and minimize exposure to heavy metals, silica dust, and other harmful contaminants. Stricter regulations and sustainable practices can help mitigate their impact on both the environment and the microbiota.
  2. Promoting Organic Farming and Bio-fertilizers: Organic farming practices can significantly reduce the use of synthetic pesticides and chemicals. By avoiding the use of harmful agrochemicals, organic farming is generally more environmentally friendly and has a less detrimental impact on the microbiota when consuming organically grown produce. Additionally, the adoption of bio-fertilizers, which are derived from natural sources like compost, manure, and beneficial microorganisms, can enrich the soil microbiota, fostering healthier plant growth and reducing the need for chemical fertilizers that can harm the microbial balance.
  3. Responsible Antibiotic Use: Healthcare professionals and individuals alike should exercise caution when using antibiotics. Only use antibiotics when prescribed by a qualified healthcare provider and follow the prescribed dosage and duration strictly. Antibiotics should not be used for viral infections.
  4. Probiotic and Prebiotic Consumption: Including probiotics (live beneficial bacteria) and prebiotics (nourishment for beneficial bacteria) in the diet can help maintain a healthy gut microbiota. Fermented foods like yogurt, kefir, and sauerkraut are excellent sources of probiotics, while foods rich in fiber, such as fruits, vegetables, and whole grains, serve as prebiotics.

Conclusion:

The symbiotic relationship between humans and beneficial microorganisms is essential for our health and well-being. Unfortunately, human activities, such as pollution and improper antibiotic use, can disrupt this delicate balance. By taking proactive measures to reduce pollution, promoting sustainable practices, transitioning to organic farming and adopting bio-fertilizers, and making conscious choices about antibiotic use, we can protect these valuable microorganisms and pave the way for a healthier future for both ourselves and the environment. Remember, the well-being of the microbiota is intricately linked to our own well-being, and protecting them is a step towards safeguarding our health.