MSOD 619 Bookclub Discussion

The Lunettes

Why and how is our world changing (and do I like that)?

Each of the books we read presents unique, and sometimes opposing,

perspectives on how and why our world is changing:

1. Schumacher describes how communities and small organizations carry

out sustainable development. He argues that the negative impacts of
increased commercial consumption and rapid globalization can be
counteracted by Buddhist economics, which states that it is possible to
attain any given ends with the minimum amount of means (i.e. small
means can still lead to extraordinary, and very satisfactory, results).

2. Chua discusses the concepts of tolerance and democracy as

hyperpowers shape the global economy. The US’s reign as hyperpower
may come to a close as other countries begin to develop significant
power. Within this, can there be more than one hyperpower around the
world, and if so, can we live in a world with two or more hyperpowers?
What would such a world look like?

3. Stiglitz depicts how the inequality and opportunity gap is widening. The
top 1% in the U.S. are getting wealthier without creating new wealth for
others. He argues that without political and economic reform to reduce
rent seeking, the hardships for the middle and lower working classes
will continue to increase. In this, he criticizes the free flow of capital
as a negative component of globalization, which in turn impacts global
inequality.

4. Conversely, Wolf believes the world is becoming more interconnected

due to globalization and technology. Hand in hand with liberal
democracy, he speaks of the wonders of globalization, where human
beings across the board benefit. He believes that the the barrier to
equality lies, not in reversing globalization, but in changing politics and
the role of the nation state.

5. Baldwin argues that we are in the midst of a “Great Convergence” that

is changing the global economic landscape. Economically, The South is
catching up to the North, threatening to reverse the goal order that has
persisted since the early days of industrialization. Stable white collar,
high income jobs may no longer be guaranteed in the North, which
presents potential for power shifts that will transform the way that
 global economies and politics work.

6. Rifkin supports the idea of the Great Convergence, saying the

assumptions of capitalism are being challenged by technology and
behavior change. He illustrates that we are entering a third industrial
revolution, brought on by the influence of the internet of things and the
collaborative commons. These technologies, he argues, have the
potential to level the global economic playing field and localize
economies.

7. Klein discusses how globalization has increased power of corporate

brands (e.g. Nike has clothes but also own spaces). Unlike other
authors, he makes the argument that all the wealth from these global
changes in business and technology are really centralized in the hands
of a few large corporations and are not really benefiting people
globally.

We recognized significant complexity around these themes individually

prior to diving into the readings, but discussing them together elevated our
awareness to new levels. Our dialogue was driven by the individual books we
read, each of which used a different data-driven approach to explaining
current global phenomena. Coming together the share this information and
our interpretations, helped to illustrate the complexity of perspectives
surrounding globalization and industrial change. Many of us felt that our
books each left out something important. Whether it was Baldwin, leaving out
the social to focus on a economic-driven explanation, or Schumacher
omitting significant economic arguments, to focus on the cultural and
spiritual solutions, each book chose a specific lens which often left us
wanting a more comprehensive picture. Yet, when we brought these books
together to create that picture, we didn't find a neat answer to how we
should view today’s global changes. We were more informed, but we left our
conversation with a sense that there was more to discuss. This process left
us curious about our own perspectives, and more open to paradigm shifts we
might experience in China.

What role and how much influence do individuals and individual organizations
have in this evolution?

There is disagreement between the authors as to the role and influence

of individuals and individual organizations in our evolving world. Several
authors see individuals attaining greater power and autonomy in our
increasingly connected world. However, other authors note increased
globalization has left individuals seemingly powerless against rising
organizational powers.
 Several books highlighted the increasing importance of the role of the
nation state and other organizations. Stiglitz (2012) highlights the
accumulation of wealth and the resulting undercutting of the middle and
lower classes. With the top 1% continuing to recycle their wealth rather than
generate new wealth to distribute throughout society, there is a compelling
argument around individuals becoming increasingly less influential against
this hoarding of capital. Klein (2009) also makes a compelling argument
around the ability of corporations and mega brands to control all aspects of
the public sphere. With organizations extending beyond the products they
produce, they now have the ability to own public space, education through
the production of textbooks and sponsorships, and even individuals with the
rise of the sponsored athlete / individual.

According to Schumacher (1973), man is enamored by giantism, but

because man is small, small is beautiful (p. 169). Looking at the very size and
the needs of man, mankind must consider the means: do they serve man or
destroy man? Schumacher (1973) asserts “People can be themselves only in
small comprehensible groups” (p. 80). We see potential in this quote for
individuals to have the ability to create localized change, which is also borne
out in the work shared by Ron Finley in his Guerrilla Gardner Ted Talk (2013).
Similarly, Klein (2009) highlights that individuals must push back through
social movements to ensure that they maintain their power in an increasingly
globalized society. Wolf (2004) goes further, emphasizing that the role of
individuals should ultimately be to regulate the powers of nation states and
other organizations, checking their growth and expansion in line with what
the population is willing to tolerate. Current events, such as the momentum
of student political groups in the wake of the Stoneman Douglas mass
shooting, provide an interesting case study in the relative influence of
individuals.

Overall, it is clear that depending on the lens one takes, or the level of
the system one is operating within, individuals and organizations can have
different roles and influence. Access to wealth and power make it easier for
any player - whether an organization or an individual - to have more influence
and ability to carve out their role. Civic engagement is an essential part of
keeping organizations in check and giving voice to the broader population in
an inequitable society. At the same time, organizations must have a moral
position, ensuring that their operating practices continue to - at a minimum -
fall in line with what society is willing to tolerate.

What evidence of “network” issues (a la Duncan Watt’s book) are in play?

What’s your evidence?
 Globalization is based on the global production network. From the
beginning of globalization, the expansion of the production network has
driven changes in the way that we interact with one another and consume.
The Great Convergence explains three phases of globalization, the movement
of goods, ideas and people (Baldwin, 2016). The movement of goods is based
on the steam engine, which enabled production of goods far from where they
were consumed, creating new connections (Baldwin, 2016). The same
occurred with the movement of ideas, which was enabled through the
network of modern communications technology. Finally, the movement of
people is evolving today, through rapid transportation and
telecommunications technology. Thus, in each phase of globalization, we see
a huge expansion of connections, and the evolution of the network as a
whole.

As these networks get more and more complex, it becomes

increasingly difficult to understand the impacts of the system. For example,
in her TedTalk, The Voice of China’s Workers, Leslie T. Chang (2012) speaks
about the complex and abstract relationship between Chinese factory
workers and the products they create. While there is a common narrative in
the US “equating Western demand to Chinese suffering,” Chang explains that
much of what we purchase in the west and elsewhere in the world is
improving the quality of life for people in China and perhaps most
importantly, they have agency and choice to work in the factories that make
these goods. Through her research in visiting these factories, she found that
workers really have no relationship with the products they make and at times
might not even know what the complete product is or is worth. What they do
know is that the factory affords them what they perceive to be a better life.
Chang says that, “Chinese workers are not forced into factories because of
our insatiable desire for iPods. They choose to leave their homes in order to
earn money, to learn new skills, and to see the world. In the ongoing debate
about globalization, what's been missing is the voices of the workers
themselves” (2012). As this example illustrates, in networks, “cause and
effect are related in a complicated and often quite misleading way” (Watts,
2003, pp 300) and we need to consider our assumptions when we think about
the effects of our actions.

All of these books highlight the network issue of the changing nature of
accountability, on an individual level, a corporate level, and a national level.
How do we make decisions effectively and ethically when the global network
is so complex and we do not have perfect information as consumers or
actors in the network? Networks are “both more vulnerable and more robust
than populations of isolated entities” (Watts, 2003, pp 302), so the impact of
an individual can be profound. As such, we think back to the discussion of
the role of the individual in global changes, we must also consider the ways
in which that role has been transformed through the development of a global
network. For instance, micro-bloggers express frustration around policy and
public safety in China and the government is responding in a timely manner
(Lan, 2011). Previously, individual action at the micro level had little chance
of making an impact quickly at the macro level, but today, thanks to the
increasing connectedness of the world, individual agency looks very different
than it did in the past. As a result the questions of accountability across
actors in the network, have become more complex, and contribute to the
challenges we face in responding to the impacts of globalization.

What role is China playing in all this?

Through our readings and discussions, we’ve found that China plays a
central role in this generation’s global transformation. China is emerging as a
formidable global power. due to their 1.4 billion inhabitants, unprecedented
economic growth (which is outpacing that of western economies), and move
to replace US and European international financial institutions (such as the
IMF) as a leading source of investment in other emerging economies (such as
Africa and South America). Meanwhile while wages, salaries, and vital public
services are declining in the US economy, the exact opposite has been
happening in China.

This shifting economic dynamic between the US and China is causing

many to rethink the capitalist assertion that liberal democracy and free
market capitalist systems are essential for sustained economic growth.
China’s economic system is described more as a socialist market economy.
China’ economy is subject to free market forces. While there is a capitalist
element in the Chinese system, in contrast to liberal democratic ideology,
free market capitalism does not run the economy. Given China’s previously
mentioned growth, and the aggressive investment in other emerging
economies, many are beginning to see the one party system as a viable
alternative to a western democracy. This dynamic also brings into focus the
contrasts between the individualistic worldview of western structures and
the collectivist worldview of the east.

These differences in worldviews can also shape perceptions about the

impact of globalization on emerging economies. Many arguments in the
Western World hold that globalization exploits workers in emerging
economies, increases inequality, and lessens economic and labor standards.
However, the proponents of globalization looking at the same data will
factually argue that by all measurable standards such as health, wealth, and
education, world inhabitants are better off today than at any other point in
history. China is often held up as a prime example for both arguments. Chang
illustrates the dynamics of the both of these arguments in her TedTalk on
Chinese factory workers. Eric X. Li’s TedTalk, A Tale of Two Political Systems
provides more economic data to further illustrate the often unacknowledged
benefits that have come from China’s growth. Li teaches us that "80% of the
of the world's poverty alleviation happened in China" in a 30 year period
(1981- 2008), and as a result the Chinese today have a more hopeful outlook
on their future than Americans (Li, 2013).

Thinking about the different opinions of globalization that exist at both

micro and macro level, we are left considering what we really know of the
“reality” of China. How is our view of China’s role in the global economic and
political spheres shaped by the lenses we have acquired over time? How will
these views be challenged as we receive more information on the “reality” of
China?

What specific questions do you have about doing business/consulting in

China?

In addition to the broad questions about China that are articulated

above, our group had the following specific questions about doing business
and consulting in China:

• Based on what we know about the Chinese ethical values including

protocols, hierarchy, and authoritarianism, how do Chinese businessmen
and women perceive the role of an external consultant?

• How does the US being a perceived Hyperpower impact Americans

consulting with a rivaling, and past, Hyperpower such as China?

• What does wealth and opportunity look like in China with a one party
system? How does China’s value of full employment impact society? Are
there areas of opportunity we see that cannot be implemented because
the Chinese government regulations are different from the U.S.?

• As China opens up to the global economy, how are their traditional ways
of working being challenged by new perspectives? What are the big
shifts that have happened recently? Are there areas of tension regarding
outside views that we should be aware of?

• How is the current political relationship between the U.S. and China
viewed? What is the popular opinion on the actions of the current U.S.
administration? In what ways are these dynamics impacting business,
trade and country relations?
 • The Voicethread stated that China intentionally maintains full
employment; is this true and does unemployment play into society?

• How does a non democratic approach to government impact the

experience of doing business in a country?

Group Participation

Our group consisted of Tori, Roxey, Lauren, Sammi, Lindsay Y., Isabelle,
Hannah and Caroline. We each participated in our respective book clubs and
then came together to discuss all the books as a group. We did pre-work by
sharing summaries of our books via Google Docs. We came to the meeting
having read the summaries, and then spent our time together discussing the
questions. We each
individually wrote quick
thoughts on the questions for
this assignment on a shared
spreadsheet, and used that to
guide our conversation as a
whole group. At the end of
the call we split up the
questions and partners took
each of the questions and
finalized the responses based
on the group conversation.
Included is a screenshot of
our whole group meeting.
 References

Baldwin, R. (2016) The Great Convergence. Boston: The Belknap Press.

Chang, L.T. (2012, June). Leslie T. Chang: The voice of China’s workers [Video

file]. Retrieved from

http://www.ted.com/talks/leslie_t_chang_the_voices_of_china_s_workers

Chua, A. (2007) Day of Empire: How Hyperpowers Rise to Global Dominance--

and Why They Fall)

Finley, R. (2013, February). Ron Finley: A Guerilla Gardner in South Central LA

[Video file]. Retrieved from

https://www.ted.com/talks/ron_finley_a_guerilla_gardener_in_south_central_la?

language=en

Klein, N. (2009). No Logo. New York: Picador.

Lan, Y. (2011, July). Yang Lan: The Generation that’s remaking China [Video

file]. Retrieved from http://www.ted.com/talks/yang_lan

Li, E.X.: (2013, July). Eric X. Li: A Tale of two political systems [Video file].

Retrieved from http://video.ted.com/talk/podcast/2013G/None/EricXLi_2013G-

480p.mp4

Rifkin, J. (2014). The Zero Marginal Cost Society. New York: Palgrave

Macmillan.

Schumacher, E.F. (1973). Small is Beautiful. New York: Harper.

Stiglitz, J. (2012). The Price of Inequality. New York: W. W. Norton.

Wolf, M. (2004) Why Globalization Works. Yale University Press.