Which Management Style Will China Adopt? – Nathan Richter and Stephan Richter – Harvard Business Review

This is a thoughtful and interesting blog article from the Harvard Business Review. It’s worth a read. Check it out!

Which Management Style Will China Adopt? – Nathan Richter and Stephan Richter – Harvard Business Review.

Personally, I wanted to scream at the simple dichotomy proposed here between US best practice and German best practice. What about US corporations copying Japanese best practice?

For me, whilst the article touched a number of important themes, it was seriously over-simplistic. It ignored the contextual factors that China is facing.

At the end, the article recognized its own weakness recognizing that the solution for large state-owned corporations will be very different to large privately owned enterprises.

I also found the article arrogant and failing to recognize the input from leading economists. For example, in recent years the US economy has been dominated by financial services, rather than more traditional industries. Similarly, the German model of export led growth has been artificially propped up by the Euro and many observers believe that German export growth is no longer sustainable.

In contrast, China has five thousand years of history and for me it is quite conceivable that China will go her own way and generate a new gold standard with her own management style.

Any thoughts?

English: The People's Republic of China (green...

English: The People’s Republic of China (green) and its claimed territory (lighter green). Русский: Китайская Народная Республика (зелёный). ‪中文(简体)‬: 中华人民共和国(深绿色)及其宣称拥有主权的地区(浅绿色)。 ‪中文(繁體)‬: 中華人民共和國(深綠色)及其宣稱擁有主權的地區(淺綠色)。 (Photo credit: Wikipedia)

 

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Why world trade growth has lost its mojo | Gavyn Davies – FT

Current members of the World Trade Organisation.

Current members of the World Trade Organisation. (Photo credit: Wikipedia)

This is an important, MUST=READ article from highly respected, macro-economist, Gavyn Davies, writing in his FT blog. Check it out!

Why world trade growth has lost its mojo | Gavyn Davies.

For me the analysis and conclusions are worrying, Let me share some of my concerns.

Firstly, it seems that there are trends towards more protectionism. As a passionate believer in free markets and global trading, this disturbs me.

Secondly, Europe’s weakness because of Germany‘s economic policy has had a deep impact on World trade.

Thirdly, the developing World is suffering a severe slow-down in trade in 2013.

Fourthly, and most alarming is that world trade may well have been permanently damaged by the austerity policies of political leaders in Washington, London and Berlin. [the article cites the views of Nobel Prize winning economist, Paul Krugman]

Regular readers of this blog will know that I have picked up a trend to “white-wash” austerity, as if it never happened. Let’s be clear. The slow-down in World trade has severely impacted the lower and middle classes in both the developed and developing World most severely; meanwhile, the seriously wealthy have seen financial markets rebound strongly since 2008.

Personally, I still believe that there is room for enormous demand-side, fiscal policy to stimulate investment and create jobs.

Any thoughts?

 

 

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