The Daily Drucker, February 20: Management and Economic

Development
It can be said that there are no "underdeveloped countries" there are only "under-
managed" ones.

Management creates economic and social development. Economic and social

development is the result of management. It can be said, without too much
oversimplification, that there are no "underdeveloped countries." There are only
"under-managed" ones. Japan a hundred and forty years ago was an
underdeveloped country by every material measurement. But it very quickly
produced management of great competence, indeed, of excellence.

This means that management is a prime mover and that development is a

consequence. All our experience in economic development proves this. Whenever
we have only capital, we cannot achieve development. In the few cases where we
have been able to generate management energies, we have generated rapid
development. Development in other words, is a matter of human energies rather
than of economic wealth. And the generation and direction of human energies is the
task of management.

ACTION POINT: What impact does your company have in the developing world?
Are your activities there raising the managerial standard of local companies?