Capitalism at the Crossroads

note: this post is in English because there are just too many thoughts running through my head that I have to get them all out quick!

In time for my previous goal set of reading at least 1 book a month, I have finally reading Capitalism at the Crossroads by Stuart L. Hart... many many thanks to Shirley and Rina, without whom I would never have ended up with the book in Taiwan (in brief, the book belongs to Shirley, who lent it to Rina at a conference but forgot to get it back when she was in Singapore, which Rina brought to Guangzhou but forgot to pass it to Li Zhen who was going to Rotterdam, which Rina passed to me to bring to Taiwan because Shirley might drop by sometime to visit family before starting work but didn't in the end cos she found a job too soon.. phew! :p)

anyway, I say finally also because I had previously started on the book in Singapore last year but never continued it when I got to Taiwan... so it's been a long journey with this book, and thankfully that journey is now complete! :)


I have to say this book is a must read, especially for those interested in innovation, sustainability and business models... I won't go into the details (because you deserve to discover them on your own) but here's a brief about the contents, followed by some of my thoughts...

The book's main proposition is that in today's world, Multi-National Companies (MNCs) are the entities best equipped to deal with the world's sustainability problems, because they have the resources, the technology and the scale to create products/ services that meet the triple bottom line of: Economic impact, Social Impact and Environmental Impact..

While most companies today already know that sustainability or CSR initiatives don't have to come at the expense of profits and market share, the book emphasizes the huge potential for MNCs to positively impact the community, address environmental issues AND strengthen their own long term corporate sustainability by looking towards the Base of Pyramid (BoP) , the 4 to 5 billion people at the base of the economic pyramid, people considered too poor to do business with... The author argues that the BoP is the pristine consumer base where
1) most other competitors have not penetrated
2) people there do not have pre-conceived notions about using certain products
3) people in rural communities often get bullied by suppliers, who charge more because these villages have little say...

To illustrate the potential based on these 3 points, the average household in the city would probably be used to using fluorescent lightbulbs and would not be inclined to switch to LED lighting which costs more upfront but lasts way longer and is more environmentally friendly... if an MNC is able to create, through R&D, a simplified and cheaper version of LED lighting designed FOR the poor (perhaps powered by solar panels), the poor family in a rural village could possibly welcome it as an alternative to consistently spending money on matches and candles bought from shops which do not enjoy enough economies of scale to bring prices down..

The book offers many other case studies of MNCs that have succeeded as well as failed in trying to reach the BoP... it also highlights the pitfalls that MNCs can fall into, especially if MNCs only view this simply as a means of marketing their products without integrating and engaging the locals in order to build new business models, co-invent products and services and design new channel distribution models which move from within the community, and which in the process help improve overall living conditions in those very communities...

All in all, the book offers many exciting ideas and perspectives different from most of what is taught in school, simply because what has been expounded mostly so far is an economic model focused on those at the top of the economic pyramid, where infrastructure, education and means of marketing and communication already exist to facilitate the introduction of new products and technology...

You can find out more about the BoP Protocol at http://www.bop-protocol.org

While I haven't mentioned very much about technology and innovation, it is a very crucial aspect for companies to drive sustainability from within... It was very interesting to see case studies highlighting concepts such as "Cradle to Cradle" (designing the product till the end of its lifecycle, possibly where it's construction materials are designed to be recycled after its use to generate other products) as well as "Creative Destruction" (innovating new technology which destroys the need for existing technology which the company depends on now, thus opening up a whole new market space)

Personally, the role of technology struck a chord in me... Having come from an engineering background (and from a stream where I did learn about product design), I kept wondering...

What if our students actually were exposed to this concept right from within our education?

If technopreneurship is such a relevant topic still, why do we not learn about such ideas within our courses of product design, of Engineers & Society, of Engineering Innovation and Design and so on?

Why are we still so unaware of some of the research projects (within Singapore and around the world) which are addressing such sustainability ideas?

If it's a requirement for engineering students to take some modules from Business, Science or Humanities, and this requirement stems from the need for more broad-based thinking, why do we not marry sustainability, management and engineering to create modules which spark ideas and guide thoughts about the impact an engineer (in an entry-level position, within a large corporation etc) can bring through technology?

And just as it was mentioned in the book that MNCs also have the largest resistance in cultivating such revolutionary innovation in both technology and business models management (due to size, structures, habits etc.), I wonder what's the solution to the seemingly ever-present situation where education in our institutes lags one or a few steps behind addressing the challenges and problems the world faces right now...

About my previous read and my current read

I finished "The Book of Five Rings" the same day I started reading it... wasn't too long in terms of content but like most books that touch on zen, messages can be short but extremely powerful... I felt it was a very thought-provoking book, and constantly reminded me of my times training in martial arts some years back... I think I will get more out of the book if I knew more about Zen teachings, or had someone or something to guide me through in terms of the deeper contexts and messages within the statements... so all in end, it was an enjoyable read though unfortunately I do not feel like I have fully been able to interpret its deeper teachings...

nevertheless, I have moved on to a new book: "Capitalism at the Crossroads" by Stuart L. Hart

It actually belongs to Shirley, who lent it to Rina who didn't manage to return it back.... and Rina didn't actually manage to read it till now so I borrowed it after learning from Shirley that it's with Rina (phew what an explanation haha)

anyway, the sub-title reads "Aligning Business, Earth and Humanity" so the book essentially looks at sustainable development and the role businesses can and should play in enabling it... not only does it introduce concepts, but it also explains these through actual case studies and interactions with corporate leaders...

Should be an interesting read, and I'm happy to be able to start learning more in this field!!

My latest read - The Book of Five Rings

I was clearing up the files and folders in my laptop, and came across an ebook I got quite some years back.. I don't even remember who passed it to me...

The book is titled "The Book of Five Rings" or "五輪書" or "Go Rin No Sho" written by the samurai warrior Miyamoto Musashi in 1645.

In general, it presents his teachings on sword-fighting strategy and Zen philosophy but like Sun Tzu's "Art of War", it's applicability extends into life and all forms of competition (including businesses).

in any case, should be an interesting read.. update and thoughts after I am done :)

Another book finished!

I have (finally) finished my book "The Shock Doctrine" by Naomi Klein... it's been quite an intense read, with the author tracing through history and approaches by various institutions across the world as nations seek to embrace capitalism and free markets.

I've never studied or read much details about free markets or the role of governments before this but I have to say the book is quite an eye-opener, especially right now after the US elections (and the various promises on the future and attacks on Bush made by Mr Obama) and now as global economies start melting down.

There's a lot of content in the book, which I won't be divulging... but it's all presented in an easy-to-follow flow... it starts off first talking about research into torture tactics and its translation into a step-by-step guide used by the CIA and many other institutions around the world. Using the principles from torture and shock tactics, the author draws the link between such individual actions and collective actions taken by governments and institutions in a bid to speed up implementation of the free-market model as expounded by the University of Chicago Economic Faculty, a model which is a brain child of Milton Friedman, famed Economist.

The book looks at how true democracy and people rule have rarely prevailed in the bringing in of 'free markets', and how this particular model works on the basis of true non-intervention in the market. This ultimately suggests that the government should not interfere with market forces even in areas such as health-care, education and infrastructure. Rather, governments should focus on de-regulation and let market forces take over. Due to the rather drastic nature of such a market model, the author argues, through examples in Latin America, South Africa, China, Middle East, post-Soviet Poland and Russia, of how such measures have been forced into implementation by coups, violence, dictatorships and pressure from the IMF and US government.

The book also takes an extensive look at the US economy under the Bush administration in terms of out-sourcing contracts and functions to private companies, and the role that the Iraq war has played in the creation of new, super-wealthy individuals and companies while local Iraqis watch helplessly as their country and wealth get pillaged openly. Looking at the current state of the US economy with recession fears widespread, a huge and growing national debt, established banks and auto companies falling like bricks, one does start to wonder about the approach towards 'free market'.

Finally, the book looks at how natural disasters such as the Asia tsunami in 2004 and Hurrican Katrina in the US have paved the way for erasure of old life and presented an opportunity for 'free market'-hungry institutions to push through the debris and rebuild their ideal models from scratch, at the expense of improving the lives of thousands of affected citizens.

Some might say that the book makes for perfect conspiracy theories, and leads one to doubt the motives behind governments and supposed-impartial global institutions. Nevertheless, the book offers hope too as we look at countries who have rebuilt themselves from the ashes and chaos from this particular economic model. It also highlights how with information moving across the world faster, people are more cautious and aware should similar measures be forced onto them.

Personally, I find it heartening that governments are starting to question again the meaning of free markets, and the role that governments, the IMF and World Bank have in ensuring stability in their own nations and around the world. While the answers will probably take quite a while to sort out, we can only hope that current fears of 'de-regulation' and certain 'free market' models will not drive us to the extreme of severe protectionism and control.

Latest Read

My latest book acquired is The Shock Doctrine by Naomi Klein...

In THE SHOCK DOCTRINE, Naomi Klein explodes the myth that the global free market triumphed democratically. Exposing the thinking, the money trail and the puppet strings behind the world-changing crises and wars of the last four decades, The Shock Doctrine is the gripping story of how America’s “free market” policies have come to dominate the world-- through the exploitation of disaster-shocked people and countries. Click here to read more...

Here, you can also find a short video about Naomi Klein's research on disaster capitalism...



Hopefully the book proves to be an interesting read...

Book Review and thoughts...

Having finished the book "Jihad - The Rise of Militant Islam in Central Asia" sometime last week, this post is a summary of my thoughts about the issues highlighted in the book.

In General
The book is an interesting read, especially for those interested in the history of the region, in foreign policies and the power play among neighbouring states, and in the evolution of people's mindsets about Islam. What makes it an even more captivating read is that information is presented in a relatively un-biased way. The author presents facts from bureaucrats and militants alike, he presents facts from the history of these nations and their interactions with each other, he presents information about the different branches of Islam. All these coming from a Muslim and a journalist with years of experience in the region lends credibility and also removes possibility of the information being mis-interpreted in a negative way. (you get this with some books written about Islam by non-Muslims)

Collaboration VS Self-interest in Power Play of Countries
The author makes a very clear point that countries such as the US, Russia, China, Pakistan, Turkey etc all have keen interest in the Central Asian states. This is largely due to the huge reserves of oil and natural gas that these states are sitting on. While international aid has been extended to the Central Asian states and some states are making an effort to draw in foreign investment, these moves have yet to translate into real economic and social reforms that benefit the average citizen on the streets due to overriding presence of corruption. The author also points out that much of these aid and investments are not conditional on reforms taking place, and this reflects the gap between the profit-driven and self-interest mindsets that exists as opposed to the a bigger-picture and socially responsible mindsets that are needed.

The author presents a lot more points regarding the power play between states interested in the region, as well as the self-interest attitudes of governments within the Central Asian states themselves so I won't reveal them all.

Something that really struck me was the difficult balance facing states and governments in today's highly globalised world. These institutions generally pursue the concept of globalisation, especially since it facilitates so much of our trade, investments and economies today. Yet at the same time, there exists the 'general understanding' of a non-intervention policy outside of our own countries, which in basic terms simply means that as my neighbour, you are free to comment on what's happening in my house but you don't shouldn't take any action or interfere too much since it's not your house, even if my actions may be causing you discomfort.

There's no better example of this difficulty than that of the financial crisis happening right now. As the melt-down of Wall Street in the US sends shockwaves through the global community and governments and banks scramble to take action, we see how on one hand, the IMF is calling for a coordinated approach among European nations and on the other hand, Ireland and Germany have gone ahead with their own stands and actions. So on one hand, we can see how it makes sense that these countries are acting to protect the interests of their own people, and on the other hand, we see how sensitive it is when there are expectations (in the union) to make a collective stand for the greater good.

'What counts above all is coordination and the will not to act each for himself as we have seen a little bit in some European cases.'
INTERNATIONAL MONETARY FUND CHIEF DOMINIQUE STRAUSS-KAHN

So while globalisation has taken off, along with the flourishing of trade laws, global governing bodies and international standards, we are still struggling with the other doors that globalisation opens up. How do we manage the safety and interests of our own countries while taking a consistent stand on the actions of other countries whose actions impact us? If trade and economic relations are such key drivers for the opening of a country's doors to the world that they can easily become the trump card for placing pressure for positive change, why then has the concept of social responsibility still only remained within the sphere of companies and businesses instead of being extended between states? instead of something driven together by both government and companies?

Book Review!!

After getting hold of some discount vouchers at the book store, I treated myself to a book shopping spree...

Unfortunately, the 4 books were only enough to last me 3 days... but here's a quick review anyway...

A Child Called 'It' by Dave Pelzer

This is one amazing account of a boy's will to survive. Set in the 70s, it depicts the horrors of the author's childhood between the ages of 5 to 12 as he suffered, survived through and escaped from terrible abuse under his mentally deranged and alcoholic mother.

The Lost Boy by Dave Pelzer

This is the sequel to A Child Called 'It' and talks about his life as a teenager between 12 and 18 years growing up under the care of different foster homes and parents. The book depicts his struggles of fitting in with society, something he has never learnt as an abused child. Despite his terrible childhood, he is still constantly drawn to his mother and father in his quest for answers to the kind of life he had to deal with. The author also never fails to talk about his learning points and his determination to survive and do good in life.

A Man Named Dave by Dave Pelzer

The last book in the trilogy describes Dave in his adulthood as he starts his career in the air force. Determined to become a pilot, he works through countless challenges, starting as a cook and working his ass off before he got to where he wanted to be. As an adult, he has to deal with issues such as career, future, managing a relationship, marriage, fatherhood, divorce, while constantly still on a quest to get closer to his family and to find the answers to his childhood. In this book, he learns to forgive the atrocities committed by his mother onto him, he learns to love and open up and he finds his place in the world through a career as a speaker and helper around child abuse related issues.

All in all, the three books are written in an extremely real way... it's very real because the author reveals his emotions and thoughts in the way someone at that age would really do so... so it's not written from the perspective of "this happened back then and I reacted so" but more of "This is happening now and this is what I am thinking right now"... the issues brought up are also extremely real and pertinent, yet the author doesn't go overboard in self-pity or expounding the evil that he has witnessed in his life... Definitely a very inspiring set of stories that shows the power of love and the human spirit...

p.s. There's another book that I have bought and finished reading but the nature of that book is so different from this series by Dave Pelzer that I will save that book review for next time :)

Another book review

Yesterday was Saturday... after settling some AIESEC stuff in meeting, I got really restless in the room in SMU... so cold and so bright... just made me wanna get out of there into some light or temperature that was more natural...

anyway, so I headed to the nearest book store, hunted around for something good to read and bought this book

"the curious incident of the dog in the night-time" by Mark Haddon

the book has been around for quite a long time now so I won't be surprised if most of you have already read it...

But for those who haven't, definitely a book I would recommend, simply because of how uniquely and differently the story is told... it's written in 1st person perspective, by a 15 year old boy who is autistic.. he struggles with emotions and deeper meanings, and he thrives with rules, processes, logic, math and literal meaning...

I think the story's very real and Mark Haddon did a great job of getting the reader to sink into the world of an autistic child... it's a point of view that that most of us never consider so reading this book definitely challenges one's views...

by the way, Mark Haddon has another book titled "A Spot of Bother"... I'm thinking to get hold of that one as well...

And like I was telling Pui, I do think I need to read slower... cos now I am out of books to read again...

New Books!

Went to Borders bookstore today and finally used my book voucher...

and bought two books!


For One More Day by Mitch Albom

Mitch Albom was the author who brought us Tuesdays with Morries and The Five People You Meet in Heaven...

Both are very much about life's little lessons and appreciating life, so this one is not that different... but it's told from a very different perspective as compared to previous two...

But all in all, still a very heartwarming story with a message about relationships between a mother and a son...

(if you are wondering, yes I have finished the book. Couldn't help myself!)

Freakonomics by Steven D. Levitt and Stephen J. Dubner

I haven't started on this book yet but I think it might be in similar style as The Tipping Point by Malcolm Gladwell... The authors take different real life scenarios and explores the implications and cause and effects within these scenarios...

Read a few pages once some months back... and definitely looks interesting...

will update once I have finished the book!

The Tipping Point

Amidst all the busy-ness with AIESEC and all, I managed to take some time out to finish reading The Tipping Point by Malcolm Gladwell.. this is the same guy who brought is Blink! and in similar fashion, he presents very thought-provoking way of looking at our environment and at changes...


The excerpt below is taken from http://www.gladwell.com/tippingpoint/

1. What is The Tipping Point about?

It's a book about change. In particular, it's a book that presents a new way of understanding why change so often happens as quickly and as unexpectedly as it does. For example, why did crime drop so dramatically in New York City in the mid-1990's? How does a novel written by an unknown author end up as national bestseller? Why do teens smoke in greater and greater numbers, when every single person in the country knows that cigarettes kill? Why is word-of-mouth so powerful? What makes TV shows like Sesame Street so good at teaching kids how to read? I think the answer to all those questions is the same. It's that ideas and behavior and messages and products sometimes behave just like outbreaks of infectious disease. They are social epidemics. The Tipping Point is an examination of the social epidemics that surround us.

I would definitely recommend this book! So much implication on how to do marketing, or to communicate with people, or to generate hype... not that it's meant to be taken as a guide book... but well.. if you're looking for something to challenge conventional thinking, THIS is the book to read...