This post originated as a response to The 60 Minutes segment, “Out of India.” I remember seeing this when it first aired in 2004. India is the first developing country to achieve modern growth using a knowledge economy. Again, India’s growth is not only a product of its talent, but also its work ethic- its hustle- if you will. The more I reflect on this video, the more I see it as a preamble to a broad discussion on globalization.
Globalization has a negative connotation in circles on both the left and the right. The argument against globalization’s virtues is grounded on either the loss of US jobs, or the exploitation of developing countries. At the University of Montana, I ran with a crowd who abhorred the players in the WTO/World Economic Forum and turned to movements like the World Social Forum (WSF). The WSF has been held several times in Brasil, once in Kenya, Pakistan, Mali, Venezuela, and in 2004- Mumbai India. Well over 75,000 people attended the Mumbai WSF. Though not quite as compelling as Noam Chomsky speaking in Porto Alegre Brasil 2003, Joseph Stiglitz was a highlight speaker in Mumbai.
The movement originated as a response to the Washington Consensus and policies of the IMF and World Bank, which were seen as gouging the developing world. The premise of the organization is described as follows on the World Social Forum India website. http://www.wsfindia.org/ “The World Social Forum is not an organization, not a united front platform, but ‘…an open meeting place for reflective thinking, democratic debate of ideas, formulation of proposals, free exchange of experiences and inter-linking for effective action, by groups and movements of civil society that are opposed to neo- liberalism and to domination of the world by capital and any form of imperialism, and are committed to building a society centered on the human person.’”
However, globalization viewed closer to the center has many benefits as well as negatives. It’s difficult to determine the net impact. According to the 60 Minutes segment, “Out of India”, it is clear that globalization is improving the quality of life for millions- if not billions- of people in emerging nations like India and China. It is also allowing multinational corporations to enforce trade agreements that may override local governance and law. The verdict is still out concerning the benevolence of globalization, but its reality is undeniable. Polarization on the issue, like many issues, will not be beneficial moving forward. However, concessions on both sides of the argument are necessary to ensure the undeniable reality of globalization progresses for the benefit of multiple stakeholders.
Friday, March 19, 2010
Book Review: Billions of Entrepreneurs by Tarun Khanna
"Billions of Entrepreneurs- How China and India Are Reshaping Their Futures and Yours” written by Tarun Khanna is a laborious but informative read. Khanna speaks in great depth about China and India’s complementary strengths, and how “mutualism” between both nations can facilitate each other’s weaknesses. This contention is by no means new material. Fareed Zakaria also speaks to great depth on this concept in his book, "The Post American World." However, Khanna did go into depth in speaking about successful corporate leveraging of mutualism by America’s GE, China’s Huawei, and India’s Infosys.
Khanna reinforces the notion that the government is the entrepreneur in China. He describes the Chinese government as hierarchical and authoritarian, placing low priority on individual rights. He describes India as fervently democratic, often at the expense of efficiency. Moreover, Khanna contests that Indian entrepreneurs have little faith in the Indian government and try to avoid it at all costs. This, again, is not new information.
In addition, "Billions of Entrepreneurs" serves as a historic dialogue correlating similarities in both Chinese and Indian history. Khanna discusses the colonization of both countries by the British and other nations in the 18th, 19th, and 20th centuries. He explores the significant political revolutions of both countries in the mid-20th century: China’s 1949 Communist revolution and Mao Zedong; India’s 1947 independence and Nehru.
Khanna also discusses the use of hard and soft power by China and India respectively. Again, this is not a new topic. China leverages its solidarity and might to secure regions of long-term resource interests. It has used strong-arm tactics with many of its neighbors, and unflinchingly forms alliances with despotic regimes in Africa and Asia. Meanwhile, India’s private sector has leveraged its success in its knowledge economy to gain global economic relevance. India’s capital markets are also strong and act as a market-based mechanism to incentivize competion within the country.
Overall, Khanna’s "Billions of Entrepreneurs" is a book worth reading- especially for the uninformed reader. To his credit, Khanna includes a plethora of nuance topics and ideas that may be new to informed readers. However, given the key points and takeaways from Khanna’s book, he could have afforded to remove at least a third of the arduous historic and economic verbiage that an informed reader should already know.
Khanna reinforces the notion that the government is the entrepreneur in China. He describes the Chinese government as hierarchical and authoritarian, placing low priority on individual rights. He describes India as fervently democratic, often at the expense of efficiency. Moreover, Khanna contests that Indian entrepreneurs have little faith in the Indian government and try to avoid it at all costs. This, again, is not new information.
In addition, "Billions of Entrepreneurs" serves as a historic dialogue correlating similarities in both Chinese and Indian history. Khanna discusses the colonization of both countries by the British and other nations in the 18th, 19th, and 20th centuries. He explores the significant political revolutions of both countries in the mid-20th century: China’s 1949 Communist revolution and Mao Zedong; India’s 1947 independence and Nehru.
Khanna also discusses the use of hard and soft power by China and India respectively. Again, this is not a new topic. China leverages its solidarity and might to secure regions of long-term resource interests. It has used strong-arm tactics with many of its neighbors, and unflinchingly forms alliances with despotic regimes in Africa and Asia. Meanwhile, India’s private sector has leveraged its success in its knowledge economy to gain global economic relevance. India’s capital markets are also strong and act as a market-based mechanism to incentivize competion within the country.
Overall, Khanna’s "Billions of Entrepreneurs" is a book worth reading- especially for the uninformed reader. To his credit, Khanna includes a plethora of nuance topics and ideas that may be new to informed readers. However, given the key points and takeaways from Khanna’s book, he could have afforded to remove at least a third of the arduous historic and economic verbiage that an informed reader should already know.
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