Final Thoughts

Sitting in Beijing, waiting for my fractured femur to heal, has given me many hours to reflect on the long anticipated “Cal Poly Business Tour”. Nonetheless I find myself conflicted about exactly what meaningful insights I should take away from this experience.

First and foremost I was very much struck by the generosity and hospitality of our many hosts. Indian and Chinese based companies in particular seemed very eager to make us feel as welcome and comfortable as possible, and in this regard conveyed to me an invaluable message on the importance of rolling out the red carpet for every guest, no matter the size of their title or thickness of their wallet. This is a practice that the Western business community needs to appreciate and emulate in coming years if they are to keep pace with those in developing nations.

I prepared the entire year for this trip. In fact, it was the sole reason that I decided to enroll in the Cal Poly MBA program. In light of this I was slightly disappointed at the level of seriousness and devotion to business studies that were presented. At times I felt as if I had signed up for the “Cal Poly Shopping Tour”. Aside from this there were very few analogues drawn to the relevant materials we had learned throughout the year (aside from the Suzuki visit which was wonderful in light of Dr. Olsen’s Lean Management class). I was also disappointed that we did not get to see any state run enterprises in China and the that the majority of the firms visited were not foreign companies at all, merely foreign divisions of American (and one European) multinationals. There are exceptions however (Big Bazaar, Airtel, Hip Fung, ect) and in these instance I think the most cross-cultural learning was accomplished.

Just what was this cross cultural learning? More than anything I am surprised at the similarities between different nations and political systems, particularly when it comes to large countries. I am still in China, and aside from the language and food, Beijing could really be any large city on the planet. The same malls, the same cars and traffic, the same types of television programs. China’s communist system has done an astounding job of providing the basic tools and benefits of capitalism to an overwhelming number of people. India, despite its chaotic and lively nature (not to mention the most authentic style of democracy anywhere on the planet) has a citizenry in pursuit of the very same goals (jobs, cars, nice clothes, ect). In Dehli and Mumbia one can see that in a few years time the colorful yet squalid street stalls will soon be replaced by sanitized air-conditioned shopping malls. As sad as I personally consider this to be, it is the future…it’s what the people want… and through hard work and perseverance on the part of many people this “progress” is what is coming their way despite the failings and flagellations of their inefficient political system.

Of course there are many poor people in these nations as well, as a trip to the county side will surely unveil (I do wish that this would be included on future trips as it would provide some contrast). However anyone who has visited America’s rural south can attest that even the most “developed” of large nations posses a disenfranchised rural population that is deprived of the same types of opportunities and education that are present in the larger and more wealthy cities.

It makes me really start to think that politics is an unnecessary diversion, a game played by the elite for the benefit of the masses that has no more bearing on the actualities of daily life than a game of chess between two old men sitting on the street corner. Perhaps the future of business will evolve to a point where the power of multinationals will supersede that of nation states. Many great thinkers have put forth this idea as a culmination of humanity’s long progression out of feudalism. (Marx and others didn’t stop there, believing that something else was in store after this period of “high capitalism”). I am starting to believe that the world has already reached this tipping point, the more I travel and see the extent to which globalization and the federated free market has standardized diverse cultural norms, desires, and practices throughout the planet the more I believe that our generation is poised on the cusp of a great turning point. Add to this the critical challenges posed by the irreversible destruction of the environment and climate change and the case for an inescapable shift in power is quite strong.

The advent of this change gives me great hope and excitement for the future. I believe that I may have a great opportunity to use the many skills that I have been accumulating through my 27 years, not only for person gain though business enterprise, but in the pursuit of a greater common good. In my opinion anything that lessens the power of national governments and brings the people of earth closer together in the certainty that the world belongs to them is a positive. Thus international business, with its ability to diversify and harmonize the minds of everyday people, is a powerful platform for change; though it may be only a stepping-stone unto something else.

Anyhow… I digress…

Patience!… overall this trip has taught me to hold my tongue when I want to scream at the ignorance and arrogance that are encountered everyday in life. The pain of traveling with a fractured leg is nothing compared to the pain of listening to someone who is sure of themselves, possessed of authority, and blatantly wrong. In the business world I will undoubtedly be subject to many, many managers and colleagues who believe they are a gift of the gods though in reality they are something a bit less. Yelling and screaming at them will not only hurt my position, but in reality it does not mirror the clam and balanced demeanor that I would like to show to the world. The speaker MCK really drove this home, and I am still deeply impressed by the level of calm, professional, peacefulness that he was able to convey.

I am still in China… I am still learning many lessons. My thoughts are still whirling and business and social opportunities present themselves to me at every turn. The world is still very big even though it is getting smaller on the daily. I am grateful that this trip provided a springboard with which I was finally able to propel myself from the safe and sleepy world of Coastal California, to live and learn and perhaps one day bring back home something of value to share with those in America who taught me so much.

Sterling Seagrave : Lords of the Rim

For my final book review I choose to read Lords of the Rim by Sterling Seagrave. I opted to read this book mainly because i had read another book by Mr. Seagrave, The Soong Dynasty, not too long ago and found it to be extremely interesting. The Soong Dynasty related the story of the Soong family, one of the most influential clans in modern Chinese history and their rise to power aided in no small part by American companies and connections. The book showed that America's deep connection with China was not a recent occurrence, and that the ground work for the Sino-US relationship had been laid in the the both positive and negative events of the 19th and early 20th centuries.


In his newer book, Lords of the Rim, Seagrave explores the economic and political power of overseas Chinese, in particular their domination and control of the Pacific Rim area. He takes a relatively big chance by going back to the 11th century BC to begin his the narrative. Spanning three thousand years of history thoroughly is impossible to do with one volume, in addition glossing over many areas of history implies that the author did not do thorough research into many subject areas to which he is trying to relate. Still, the purpose for his huge scope is most likely to give the reader a small glimpse of the massive history of expatriate Chinese and their unbelievably extensive and successful experiences in moving about the globe. In this Seagrave is successful as the western reader can scarcely identify with a cultural group that has a history of the same length, let alone one that has been able to diversify and relocated as well while retaining an intact identity.


Though Seagrave uses a sensationalistic style in relating the adventures and intrigues of many of his characters, he does have some valuable analysis interwoven with the tales of mayhem, greed, murder, and betrayal. In terms of value for modern business leaders, Seagrave makes the important point that these expatriate Chinese are one of the foremost forces to be reckoned with as they posses both the resources and the knowledge to operate in both worlds. Thus if one were to be able to ally with them and harness their skills and powers, no easy task as this group can to some extent be extremely secretive and wary of outsiders, one would have an important advantage in dealing with China directly. Seagrave makes and important point that the influence of many of the expatriate group is especially strong in the south of China, where he theorizes the Beijing government may find its greatest challenges in terms of unrest and rebellion in the future.


Seagrave seems to enjoy playing up the rivalry between the north and South Chinese, portraying the north and militaristic, idealistic, and always suspicious of the wealth loving, intelligent, opportunistic and slightly corrupt South. The archetype of a combination business man/pirate is extolled in examples such as Zheng Zhilong , the father of Zheng Chenggong (Koxinga), who was loyal to his government (Ming) but also took advantages to raid and pillage where he could. (Reminds me more than a little bit of Sir Francis Drake) It is true that most overseas Chinese do come from the South, and that many of the criminal organizations associated with overseas Chinese, such as the Sānhéhuì or Triads, are known to have originated in Southern China. A closer look however reveals that most of these organizations were at first political, the Triads for example sprang out of the Tiandihui (Heaven and Earth) society of the 1700s that was formed to fight against the Manchu occupation and restore the Ming dynasty. Thus is would be unfair to say that the purposes of all Southerners relate to wealth. To apply environmental determinism to the argument, the north in contrast may be less adept at trading and wealth creation due to the fact that the northern reaches were colder and less accessible thus Northern people historicaly had less good to trade. Regardless, Seagrave's over-simplification of the complex differences and animosities between North and South China leave something to be desired.

What Seagrave does make a good point in clarifying however is the face that the goals and motivations of the overseas Chinese communities do not align very well with those of the current Chinese government. This could be especially troubling to the CCP in light of the extreme financial and political clout that overseas Chinese posses throughout the globe, most notably in areas such as the USA and Canada, regions in which China is eager to find both investment opportunities and build a good reputation. Reputation in particular is something that is very important in Chinese culture, it remains to be seen what, if anything Beijing will attempt to do silence the vocal voice of dissent from expatriate Chinese organization around the globe.


Overall, Seagrave's account of the rise and continued success of overseas Chinese is highly entertaining and enjoyable to read. Though is may not give the reader any real tools in dealing with members of the expatriate Chinese community, it does give some insight into the conditions and circumstances that led these people to success. The book has too broad of a scope to be of real value to a business leader and would be best used as a way unwind on the flight to or from China. In contrast to The Soong Dynasty, which seems to be well researched and insightful, this book attempted to evoke strong feelings in the reader without really providing the necessary justification for provocation. I rate it 6/10.

Asssignment: Book Report 2 "Elephant and the Dragon"

I’ve recently read the Elephant and the Dragon: The Rise of India and China and What it Means for All of Us by Robyn Meredith. While it was a fast and easy read, I think that it would be better taught to students on a high school level, as it would hold the most power to influence people who view these countries as mysterious, far off entities and are struggling to come to terms with the importance of these nations in the modern world. I do not consider myself to be an expert on either china or India (not even close) yet I was somewhat disappointed with the limited depth and breadth that Meredith achieved in her analysis.

Meredith begins her account detailing the rise to power of the modern governments of the world’s two most populous nations with a cursory, if somewhat slanted, historical briefing about the two countries. While it would be impossible to give a truly accurate historical accounting of the Communist revolution, the turbulent Mao years, Zhou Enlai’s revolutionary charisma, and Deng Xiaoping’s subsequent economic genius; then move on to explain all of post-colonial India, the Gandhi clan, and Nehru’s struggles for reform (All in one book you say?) in even ten volumes, Meredith does indeed try to do it in just a few pages.

She at first says Mao “wasted no time transforming a nation into his version of an egalitarian communist utopia”, citing collectivization of farming which began in 1955. She completely leaves out the years before Mao’s reforms from 1949-1955 in which moderate land reform and mixed public and private enterprise actually made the country much more stable and profitable than previous KMT regime for a short period of time. A Chinese professor of mine once explained that had Mao died after five years he would have been great, after 10 mediocre, however he died after more than 25 years in power and had plenty of time to become insulated and unaware of both the damage of his policies and the extent of his neuroses. Moving to the end of Mao’s reign she glosses over the complex series of event and figures that shaped and enable’s Deng Xiaoping’s eventual rise to power and the variety of reasons for which he viewed practicality as China’s new dogma, instead suggesting that he was merely waiting in the wings for his time to strike. This is primarily a “business, economics, and policy” category of text so I won’t be too picky about how I judge it; but let’s just say that Meredith is no history professor.

Detailing the rise of power in India and China, Meredith pays little attention to the fact that until about 200 years ago (around the time the industrial revolution finally got rolling) these two countries were responsible for the vast majority of economic output in the world. China and India led the world in exports (silk, spices, house-wares, ect), goods that had long been coveted by Europeans as being vastly superior to anything that they could produce domestically. Viewed in this respect, the current development of these two countries is not so much a “surpassing of the West”, but a return to prominence after a century or two of stagnation, brought about mainly by the need to “modernize”. I believe that this is very much how the residents and leaders of these nations would like to view the situation as well. This is just a small example of the pervasive ethnocentrism that is evidenced even in the book’s title, after all who is exactly is she refering to as “all of us”?

Meredith does at end give readers some good advice, she calls on Americans to create less debt and save more money, as do the Chinese. This is more than just a little bit portentous considering the massive economic collapse that we are currently suffering. Of course our government and current economic theory tell us that we have to spend more to get out of the crisis, hence the lowering of interest rates, government spending, incentives packages to buy yet more garbage…. “Produce! Consume!“ ect, ect. Spend your way out of debt? Does that really sound right to a logical mind? Is that what your grandmother would tell you to do?

Meredith’s advice and analysis, while accurate and sound in some respects (the need for greater education in America for instance), fail to present any really groundbreaking ideas or perspectives to help America deal with the looming power of China and India. For instance she whines about losing jobs to off-shoring; this is hardly a new complaint and has been addressed countless times by media pundits and protectionists of all types. Ironic, as previous chapters discussed how it was protectionism that held both India and China back before their respective economic reforms. She does not however, actively engage in calling for protectionist measure to be enacted to solve the problem, arguing instead that we should become better educated, build more infrastructure and somehow shift the entirety of our governmental and business practices (sure.. in a country where it takes 11 years and five lawsuits to build a bridge – The SF bay bridge reconstruction, begun in 2002 was supposed to be done in 2007… now its supposed to be 2013… we shall see. Let’s not even begin to talk about the budgeting mess on this project. Compare this to China which can effectively re-build an entire city in four years for the Olympics while bridges of this caliber, such as in Hong Kong, go up practically overnight.)

It will take America more than the economic rise and development of India and China to motivate them into changing anything. As we have learned in our IHRM class recently (best class I’ve taken in grad school so far) unless people can see a clear and visible need for change, no change will occur. In the United States people still are not convinced that change is necessary. Even given the current economic collapse, there is still a majority in the government and business communities (most from an aging, greedy, and decrepit post-war generation that really doesn’t know any better) who believe our way is the best way, and want to continue our government and business practices in the same manner that they have “always” been done. It may be that the self-imposed ideological isolation of the Cold War is still taking its toll on the minds of our leaders. Until the rise of China and India hit these people where it hurts nothing will be done. Of course by then it will be a little too late (probably already is) as the growing momentum of the “Elephant and Dragon” will carry India and China far above and beyond the failing inertia of the decaying western world.

On fear....

Why is it that people are so easily scared?
Everyone knows that the concept of instilling fear is central to the effectiveness of terrorism. This has held true over many centuries and is not unique to our present circumstance. Terrorists count on the fear generated by their actions to cause much more chaos than the actions themselves. People run and they hide, taking their gold with them into their tiny holes in the ground (usual tract homes built during the last consumption frenzy aka. market bubble) and cause all sort of chaos in both the stock markets and society at large.
We have been likewise warned about the power of fear since birth. Cartoons and childrens' books tell us that our fears can't hurt us if we cease to be afraid. It is one of the central wisdoms drawn from many folk tales, religious tracts, and the cliche' quotes of politicians long dead. Examples are too numerous to count. The Bible: "Though i walk through the valley of the shadow of death, I shall fear no evil", Pop culture : "The shadow knows what fear lurks in the hears of men", and the ever popular FDR: "We have nothing to fear but fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance."

SO ARE WE STILL AFRAID EVERY FIVE MINUTES???
Has the message not sunk in? It is odd that with both scary movies and terrorism at all time highs, accurate and developed psychological models to describe function and action of fear on our bodies are still not available. We do not fully know why we are afraid because fear is an irrational construct. Yet time and time again people approach this irrational beast with methodical planning and diligence, looking at and assessing their fears when they plan their vacations, build their relationships, and make critical life choices.
My initial reaction when i heard of the Mumbai attacks was selfish. I naturally assumed that we would no longer we traveling India due to the inevitable whining and complaining (desiptie these things being verboten on the sylabus) of students and their parents.
I am glad i was wrong.
We are no longer in High school people... your parents cannot and will not be able to help you in the board room should you ever get there so why oh why are they making your decisions now? I must say that I am quite pleased and even pleasantly shocked at the way the Administration has handled this difficult situation. It is difficult to address the irrational (yet somewhat legitimate) concerns of an angry group of parents when they hear their precious offspring are going to be carted into the war zone for a field trip. However to cancel the trip after having us read Fareeds Zakaria's admonitions on the dangers of giving into fear would be ....perhaps hypocritical?
I am very sorry for those of you who have fear. Think of this as the perfect opportunity to get a handle on it. We will in our lives constantly be faced with task of making the right decisions. To make good, ethical, and honorable choices is not easy... it is very very difficult. It takes courage, which is of course the ability to manage fear. If we cannot conquer our fear on these little issues? how will we face the really tough one that are sure to present themselves in the future.

Zakaria Book Report

Overview : Hey it’s a pretty good book!

Complex historical phenomena are not easily broken down into neatly summarized segments, fit for mass consumption. It is even more difficult to link these intricate webs of interaction into a coherent linear narrative that can be published in a “New York Times” best-seller format. Fareed Zakaria however seems to have managed this task beautifully in his new book “The Post American World”. As a history major, desensitized to slogging through hours of dense and dry historical analysis, I rarely give credence to books that are designed for popular consumption. While some of this attitude is certainly nothing more than intellectual snobbishness, I usual feel that is extremely difficult, if not impossible, to capture even a glimpse of the countless levels of correlation and inter-connectivity that stand behind what Zakaria and others term “paradigm shifts” While the use of this term itself has become almost cliché (in no small part due to the number of business authors who misuse it), Zakaria is able to do an incredible job of summarizing the well-studied events and people in the past few centuries while at the same time capturing a very decent picture of the driving forces behind them.

Zakaria is by no means flawless at this process and there are many places in which he glosses over or downplays significant factors. This is especially true when he is discussing the Middle East. Zakaria may want to purposely downplay his analysis of this area due to his Muslim heritage. However, I think that sections describing both the British administration of the area and the current American difficulties in the region, were simplified to the point of being non relevant to his argument. In fact these weak points would be perfect areas for critics of Zakaria’s point of view to attack.

Significance….
Zarakia attempts in this book to convince Americans that we should not fear greater immigration, the “rise of rest”, and the inexorable trends toward increasing global inter- connectivity. By doing this he argues (locking our nation into a defensive closed and hostile land, aka. “Fortress America”), we are robbing ourselves of some of the most vital sustenance to America's one and only remaining global advantage: Creativity. Rather, the country should position itself to be an international mediator and knowledge broker, using its leverage on the global stage to facilitate trade, cooperation and collective progress between countries. Zakaria calls this the “Bismarck” example, maintaining that only America has the power become the world’s “fair broker”.

This book has made me feel more patriotic than I have in YEARS. While much is heard regarding the degradation of America’s public school, declining math scores, and tales of derangement and decrepitude from all corners of society, we very rarely hear the things that we ARE good at. Innovation, research, ingenuity, persistence, good will, the list of positive American attributes that Zakaria brings to his book is long. But far from merely patting the American public on the back, he is able to clearly analyze and articulate the primary reason for Americas inability to translate these positive national attributes into tangible gains on the world stage.

And The Reason IS…
The US Government. More specifically Washington D.C., and the decrepit, ignorant, and
provincial partisans who run it. Historians have long been cynical enough to step beyond the idolatry of the ancient and creaky two-party system that America lauds as “democracy”. If our type of dysfunctional democracy is the brand that America wishes to export, the world will be in grave danger should it actually adopt it. Despite the clarity of this knowledge, history professors, in conjunction with all other educators, seem to fall all over themselves in their desire to get young people involved in politics… to “get out the vote”. If the vote is for one dysfunctional backward politician over another, red over blue, may we ask why? More importantly, if willing and capable politicians are not able to make forward progress due to the dysfunction of the system itself, can the system even be changed by voting? Can our system act upon itself in a democratic manner, evolve and change itself? This cynic thinks it is not likely, however lest this digress into a diatribe regarding the American political system, I will end by saying the Zakaria has come to the very heart of the grave danger that is facing our nation.

If we are not able to oust these graying relics of the Victorian Era from our government
and institute policy based on rational progress rather than manipulated popular opinion, we will most certainly be known to history as a nation that went extinct because it could not adapt. An overly rigid bureaucracy has been the cause of the destruction of many great empires… the Romans most notably come to mind. If political systems are not able to shift and evolve over time they are not able to survive. American “democracy” is not different in this regard and America would do well to take a lesson from China which in 1979 was able successfully adapt its political ideology and open itself to more capitalism. If China had not hybridized it would have followed the Soviet Union into quick oblivion. What America has not yet learned is that the forces that worked on the destruction of the Soviet empire are also at work on its own. With the “rise of the rest” global hegemony has become a dream made impossible, regardless of ideology.