Thieves of State. Why corruption threatens global security. Sarah Chayes.2015. ISBN 9780393246537.  This is quite the book. It was suggested to me by David Mouton and I am glad he did.  The author details how various corrupt governments today ( Afghanistan, Egypt, Tunisia, Nigeria for eg)  have been seized by kleptocracies so that the national revenue flows into the hands of the ruling few. She also shows how the individual living in these places gets caught between the religious right and the corrupt administration to the point that uprising seems the only option. Especially galling is that the Western powers and NGOs seem to always align with the corrupt administration, so the West is seen as part of the problem.   She makes a very good case ( and worked in several of these countries on this) , the the West should be very concerned about dealing with corrupt administration/systems that are in all intents criminal in nature..  That is if thee West is interested in helping these populations have any alternatives to violence.  She has some pretty good dirt on the CIA and US State department as well.  Of course she also shows how the control of the US govt by Wall Street interest was not that short of being criminal.

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How Asia Works. Success and failure in the world’s most dynamic region. Joe Studwell.2013. ISBN 9780802193476.  An all encompassing, insightful book.  The structure is simple . Compare the NE Asian successes ( Korea, Japan, Taiwan, China ),  to the SE Asian disasters ( Philippines, Indonesia, Malaysia, Thailand, India) ignore unique nation states like Hong Kong, Singapore,  then extract behaviors that seem to lead to economic powerhouse countries.   Then discuss each country a little more deeply to unpack their individual  successes, failures and on-going weaknesses.  Along the way  blow holes in the prevailing World Bank and IDB ” economic wisdom” .  The  author has little regard for most economists and after reading the book I am inclined to agree.  He does indicate that economic history is a useful pursuit in this analysis.   I saw many of his observations “operating” in our recent Asia /Africa trip.  Even though this is well before the Chinese stock market meltdown, much of his analysis indicated the inevitability of it.  The text is easy to read, well organized and will consume you.  No wonder Bill gates endorsed it.

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The Sustainable Organization. A paradigm for a fairer society. Miguel Reynolds Brandao & Nadia Morais. 2015.  A very thought provoking rethink on how organizations could change to a more sustainable model.  I have reviewed the background research for the 99% movement , Alex Ohanians story how  youth can create the future and Bruce Thorntons belief in the EUs slow inevitable decline. all here in this blog.

Brandao has taken a more analytic view of  organizational structure, reward systems and their impact on the world order.  He details the world wide executive compensation inequity ( absent somehow for Sweden and Norway) . He posits a new index  the SORG , that powerfully communicates the impact of an organization on the world/community which is well beyond P&L statements and GDP.   This could be like catnip to Millenials.

This is a useful viewpoint, one that is worthwhile for academics to pursue further. Plus I suggest you read it to stimulate your thoughts and responses.  I can see this as worthy of a TED talk, and also at Davos.  The book may be one that Bill Gates would recommend as it fits with his recent recommendations.

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Global Catastrophes and Trends. The Next fifty Years. Vaclav Smil.. 2008. ISBN  9780262195867. At first this seems like a weighty book to go through. However the widely read, and acknowledged expert author  ( Resident of Manitoba)  has just the right style to weave anecdote, research and analytic data together to create a compelling read.  It may be more for the Economist vs People magazine reader, but if you care about the planet and what may or may not occur bases on the numbers and the trends, a very needed read.   E.g. 9/11 killed about the same numbers of people as those who die in the  every two weeks because of medical  errors in the hospital, or every four weeks from car accidents.  Extrapolate what would happen if the money spent daily to  “prevent” another 9/11 addressed hospital error? And  car accidents and medical error continue. while 9/11 happened once.   Or that Russia kills so many adult makes due to chronic alcoholism and related events ( car crashes etc)  that their population will decline by 25% by 2025?  Read this book and you will have a completely different view of of the 6 pm news broadcast.

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The Next Convergence. The future of economic growth in a multispeed world. Michael Spence. 2011. ISBN 9781429968713. The author is a Noble winner in economics and a well respected world economist He really looks at the differences of growth and hyper growth between developing  and advanced economies.  He clears away much of the useless dialoge and posturing among politicians and makes  strong case for what has happened and what has to happen.  Again we see that the US is not doing what it should to fix its own house in infrastructure, education and unemployment. Until it does it is acting as an anchor on its own and the world’s economies.  After you read this clearly written book, you will understand  much more what is going on and how countries are mis/behaving.   He also reiterates much of the warnings that are found in Why Boomers Bail.

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Grand Pursuit. The story of economic genius. Sylvia Nasar. (A Beautiful Mind) 2011. ISBN 9780684872988. A  book on a  large scale it takes us from the time of Dickens through to present day. I am fearfully ignorant of economics having found it hard to find a logical thread in which books to read and which theories to follow. Nasar builds the story being true to context and the lives that shaped these brilliant men and women, while maintaining a middle ground of opinion. ( I am sure radical liberals and socialists alike will disagree with me)  She is able to clearly position the growth of modern economics as these scholars built upon each others work (sometimes) while dealing with vast changes and upsets. I was most intrigued with how the Soviets were able to seduce many of these academics during and after WW II.  Worth anyone’s time to read this well written and clear book.

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Seizing Our Destiny. 2012s best communities to live, work, grow and prosper in. Robert Bell, John Jung & Louis Zacharilla 2012. ISBN 9781477635797. Published by www.intelligentcommunity.org.   If you want to find out how Quebec has been able to devastate BC’s gaming industry, read this book.  (Its also likely that Federal and Provincial funds were used) . Seven cities are detailed as to how they have been able to be innovative and grow jobs when others are losing them.  The cities described include Quebec City, Riverside California, Saint John NB, Stratford  On., Oulu FIN,  and Tuichung City, Taiwan.   None of these are big cities in their respective countries but they have been able to grow against the world trends.  And it is all because they understand that it needs process, structure and people to make it work.  So simple it is brilliant.  A small but insightful book , great for  short trip.   The five attributes of Intelligent cites are:

1. Broadband connectivity (Low cost fiber optics – as a community utility)
2. Knowledge workforce – which needs to be developed and supported
3. Digital inclusion. Policies and funding to ensure the have nos can also be included
4. Innovation.  Just like it is a needed in business, cities need it too to build the businesses needed
5. Marketing and advocacy. Some hire a city manager skilled in economic development = tell the story skillfully

During one of our many discussions with Chinese expatriates while we were traveling together in China, this one about trade delegations was most disconcerting and surprising.

One fellow commented , “I do not let Chinese trade delegations into my plants in Canada.”  I asked why.  He had learned from colleagues that Chinese trade delegations to Canada were rarely about  finding new business ventures. Rather it was about getting subsidized to free travel and high living for the participants while traveling, plus they are charged to take pictures/evidence of everything to take back.

One other fellow agreed, ” I saw these guys take pictures of my plant, the equipment, our layout, the supplies area, the power substation outside, right up to the power lines leading to the plant.  After they left, they never responded to any of my emails or calls about any potential for business.  This happened to friends of mine as well.   Later I heard that CSIS is very concerned about how much espionage is being carried out by these trade delegations and that many Canadians, including city Mayors and Councils are unwitting contributors to this”

The first responded, ” I had a mid level employee  retire to China and he was approached to play a role with Chinese companies talking to their local /state governments and banks officials . He would dress up in a good suit and get taken to lunches with these officials . He was held up as a major Canadian investor interested in the projects and often his presence was enough to get the approvals needed for these big projects to go ahead.  The officials gained great face on being visited by dignitaries.

These Chinese companies and local officials will invite foreign trade commissions over to China as show ponies to impress the locals.  The trade commission folks never find out their true purpose is to gain prestige for others, not business.  If the Chinese govt really wanted foreigners to do business locally, they would remove the byzantine rules and barriers that are thrown up, ”

Hearing this I fear that many Canadian govt officials are being lead around by the nose with invitations to come to China. One could even call these boondoggles unless a lot of homework is done.  We are very trusting and innocent in this style of business.  Better that Canadian companies went to India if anywhere . IMHO.

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The End of Growth. Adapting to our new economic model. Richard Heinberg. 2011 ISBN 9780865716957.  This author makes way too much sense. The recent  Rubin book started us off with a strong argument that we will not be able to continue with oil fired growth much longer.  Heinberg analyses much more than declining low cost oil – he addresses declines in energy, water, food,  fertilizers, arable land, and more, including geographic issues. In this he builds a very compelling case, even stronger than Rubin, that we are between a rock and hard place. Then he points out how our brains are hard wired to take the pleasure today , and not the little pain that would prevent big pain in future, giving present govts quite  headache in coping with us.   I appreciated that he goes on to lay out various ways we could mitigate what we have done and are doing.  There is much here for anyone to chew over and make long term decisions. A very extraordinary thorough  book relevant to our times and  those of our children/grandchildren.  I recommend this one to anyone who cares about the future.

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Image by reg_nordman via Flickr

Why China Will Never Rule The World. Travels in the two Chinas. Troy Parfitt.  2011. ISBN 9780986803505. Troy contacted me to look at his book.  He warned me that it was controversial and Amazon would publish it in Sept.   I enjoy a good travelogue like this one. He is a Canadian history teacher who taught for 10 years in Taiwan and is now back in Canada.  He is just a regular person like us all with no “hidden interests or agendas”.  The book was prompted by a growing disconnect he saw between his experiences in China and the “roaring noise” he heard in the media that China was on a roll, that this was their era and they were on their way to a global hegemony.  So he took a total of three months to travel through China and the Taiwan to “live” in  the two Chinas, talk to regular folks, and see if there was this groundswell.  He took the routes of the residents, eschewed the tourist trails and essentially went native, with the record button turned on.   The time was just before the ’08 Olympics.  This was an eye opening trip for him. He used his history background to link the past to the present and  the future.  It is an easy read, well written and annotated with a style that allows you, the reader to build your own opinions from the views that Troy brings back.

I do not want to spoil the book for you, but I now agree with Troy’s thesis – China can not “rule the world”. The countries behavior is too tied into past history ( they can never forgive a slight – eg America backing the S Koreans, despite pouring billions into China during WW II, and now supporting Taiwan. The other slights are the Europeans and Americans having the opium wars.) China will not  forgive and forget and then move forward.  Revenge for these and other events will eventually come.  The behavior of Chiang Kai Chek and Mao was driven more often by revenge than anythng else.

From this book I take away that:

• China will never move to a democracy (Communism “fits” the Confucian culture. too well).
• When the leaders feel they have the US in a tight situation (Eg Move to sell their US bonds, or cripple their IT) they will move against Taiwan, even tho’ very few Taiwanese wish it.
• Hong Kong will slowly lose the freedoms they have now and will never get the vote ( When I was over there I heard over and over again that the plan was for Shanghai to eclipse Hong Kong as a financial centre).
• The “media” in China present the opposite of the truth until it becomes a “cultural truth”
• The educational system predicates against graduating students who can think for themselves, putting them well behind “western ” abilities
• The emerging wealthy  middle class will not give power to the 800 million poverty stricken peasants, preferring to transfer wealth to Western investments
• The West will continue to mess up in dealing with this country, since they will never understand the basis of Chinese decisions. The West will be played like a harmonica (Like they are being played in Pakistan)
• Religious freedom will never come to the country, persecution will continue
• Copyright protection will not take place in China, they are too good at copying everything.
• It will continue to be one of the most polluted countries ever and a growing global contributor.
• The concept of losing face is mostly a ploy to ensure that the country is not called out for its blatant acts.
• The leadership will continue to take advantage of the Chinese people. Corruption will always be there.
• We should watch to see what plays out in Africa with the heavy Chinese investment.

I liked it and suggest this is a good one for the “skeptical” reader. You can see how the the authors becomes quite emotional in his  responses through the description of his initial openness and the resulting experiences. I particularly enjoyed his use of  Orwell’s 1984 commentary.

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