The End of Power

by Naim, Moises

  36. Ibsen Martinez, “Romancing the Globe,” Foreign Policy, November 10, 2005; on the Korea example, see Akshita Nanda, “Korean Wave Now a Tsunami,” Straits Times, December 13, 2009.

  37. The Anholt-GfK Roper Nation Brands Index (2012), http://www.gfkamerica.com/newsroom/press_releases/single_sites/008787/index.en.html.

  38. Sam Dagher, Charles Levinson, and Margaret Coker, “Tiny Kingdom’s Huge Role in Libya Draws Concern,” Wall Street Journal, October 17, 2011.

  39. Georgina Adam, “Energy—and Ambition to Match,” Financial Times, March 10, 2012.

  40. Global Security Forum, “Changing Patterns in the Use of the Veto in The Security Council,” June 2012, http://www.globalpolicy.org/images/pdfs/Tables_and_Charts/Changing_Patterns_in_the_Use_of_the_Veto_as_of_March_16_2012.pdf.

  41. “Copenhagen Summit Ends in Blood, Sweat and Recrimination,” The Telegraph, December 20, 2009.

  42. Joshua Chaffin and Pilita Clark, “Poland Vetoes EU’s Emissions Plan,” Financial Times, March 10–11, 2012.

  43. Elmer Plischke, “American Ambassadors—An Obsolete Species? Some Alternatives to Traditional Diplomatic Representation,” World Affairs 147, no. 1 (Summer 1984): 2–23.

  44. Josef Korbel, “The Decline of Diplomacy: Have Traditional Methods Proved Unworkable in the Modern Era? Worldview, April 1962.

  45. Moisés Naím, “Democracy’s Dangerous Impostors,” Washington Post, April 21, 2007; Naím, “What Is a GONGO?” Foreign Policy, April 18, 2007.

  46. Another example concerns Transdniestria; see “Disinformation,” Economist, August 3, 2006.

  47. Cited by Naím, “Democracy’s Dangerous Impostors.”

  48. On ALBA, see Joel Hirst, “The Bolivarian Alliance of the Americas,” Council on Foreign Relations, December 2010.

  49. Joe Leahy and James Lamont, “BRICS to Debate Creation of Common Bank,” Financial Times, March 2012.

  50. On minilateralism, see Moisés Naím, “Minilateralism: The Magic Number to Get Real International Action,” Foreign Policy, July–August 2009. For Stephen Walt’s response, see “On Minilateralism,” Foreignpolicy.com, Tuesday, June 23, 2009, http://walt.foreignpolicy.com/posts/2009/06/23/on_minilateralism.

  CHAPTER EIGHT

  1. Interview with Paolo Scaroni, Barcelona, June 2010.

  2. Data for bank concentration are quoted from Bloomberg’s Financial Database (retrieved August 2012).

  3. Jeremy Kahn, “Virgin Banker,” Bloomberg Markets, May 2012.

  4. James Mackintosh, “Top 10 Hedge Funds Eclipse Banks with Profits of 28bn for Clients,” Financial Times, March 2, 2011.

  5. Mark Gongloff, “Jamie Dimon Complains More, As JPMorgan Chase Losses Eclipse $30 Billion,” The Huffington Post, May 21, 2012.

  6. Bob Moon, “Kodak Files for Bankruptcy,” Marketplace (NPR), January 19, 2012, http://www.marketplace.org/topics/business/kodak-files-bankruptcy; Lilla Zuil, “AIG’s Title as World’s Largest Insurer Gone Forever,” Insurance Journal, April 29, 2009.

  7. Carola Frydman and Raven E. Sacks, “Executive Compensation: A New View from a Long-Term Perspective, 1936–2005,” FEDS Working Paper No. 2007–35, July 6, 2007.

  8. John Challenger’s comments were reported by Gary Strauss and Laura Petrecca in “CEOs Stumble over Ethics Violations, Mismanagement,” USA TODAY, May 15, 2012, and the percentage of CEOs ousted before retirement is from a Conference Board survey cited by David Weidner in “Why Your CEO Could Be in Trouble,” Wall Street Journal, September 15, 2011.

  9. Nat Stoddard, “Expect Heavy CEO Turnover Very Soon,” Forbes, December 16, 2009.

  10. Per-Ola Karlsson and Gary L. Neilson, “CEO Succession 2011: The New CEO’s First Year,” Booz and Company special report in Strategy+Business, No. 67 (Summer 2012); see also Booz, Allen, and Hamilton, “CEO Succession 2005: The Crest of the Wave,” Strategy+Business, No. 43 (Summer 2005).

  11. Robert Samuelson, “The Fears Under Our Prosperity,” Washington Post, February 16, 2006, citing the work of Diego Comin and Thomas Philippon, “The Rise in Firm-Level Volatility: Causes and Consequences,” NBER Macroeconomics Annual 20 (2005): 167–201 (published by University of Chicago Press), http://www.jstor.org/stable/3585419.

  12. “The World’s Biggest Companies,” Forbes, April 18, 2012, http://www.forbes.com/sites/scottdecarlo/2012/04/18/the-worlds-biggest-companies/, and http://www.forbes.com/global2000/.

  13. Lynn, Cornered: The New Monopoly Capitalism and the Economics of Destruction; Lynn and Longman, “Who Broke America’s Jobs Machine?”

  14. Ghemawat, World 3.0: Global Prosperity and How to Achieve It, p. 91.

  15. Peter Wells, “Whatever Happened to Industrial Concentration?,” AutomotiveWorld.com, April 19, 2010; John Kay, “Survival of the Fittest, Not the Fattest,” Financial Times, March 27, 2003; John Kay, “Where Size Is Not Everything,” Financial Times, March 3, 1999.

  16. John Lippert, Alan Ohnsman, and Rose Kim, “How Hyundai Scares the Competition,” Bloomberg Markets, April 2012, p. 28.

  17. Ghemawat, World 3.0: Global Prosperity and How to Achieve It, p. 95.

  18. “Brand Rehab,” Economist, April 8, 2010; Oxford Metrica, Reputation Review, 2010, www.oxfordmetrica.com/.

  19. Luisa Kroll, “Forbes World’s Billionaires 2012,” Forbes, March 7, 2012, http://www.forbes.com/sites/luisakroll/2012/03/07/forbes-worlds-billionaires-2012/.

  20. Ibid.

  21. Rajeshni Naidu-Ghelani, “Chinese Billionaires Lost a Third of Wealth in Past Year, Study Shows,” CNBC.com, September 17, 2012, http://www.cnbc.com/id/49057268/Chinese_Billionaires_Lost_a_Third_of_Wealth_in_Past_Year_Study_Shows.

  22. Coase, “The Nature of the Firm.”

  23. This is a straightforward index but it does not capture, for instance, whether there are major differences in market share within this subset—that is, whether one or two firms are especially dominant. The Herfindahl-Hirschman Index, named after the economists Orris C. Herfindahl and Albert O. Hirschman, partially remedies this measurement flaw by giving extra weight to the biggest players. The US Department of Justice, for instance, uses this index to help determine whether antitrust action is warranted in a given field. For further discussion of this issue, see Hirschman, “The Paternity of an Index.”

  24. Scott L. Baier and Jeffrey H. Bergstrand, “The Growth of World Trade: Tariffs, Transport Costs, and Income Similarity,” Journal of International Economics 53, no. 1 (February 2001): 1–27.

  25. Economic and Social Commission for Asia and the Pacific Monograph Series on Managing Globalization: Regional Shipping and Port Development Strategies (Container Traffic Forecast), 2011.

  26. David Goldman, “Microsoft’s $6 Billion Whoopsie,” CNNMoney, July 12, 2012, http://money.cnn.com/2012/07/02/technology/microsoft-aquantive/index.htm.

  27. Thom and Greif, “Intangible Assets in the Valuation Process: A Small Business Acquisition Study”; Galbreath, “Twenty-First Century Management Rules: The Management of Relationships as Intangible Assets.”

  28. Interview with Lorenzo Zambrano, Monterrey, Mexico, 2011.

  29. See The Gap Inc. and Inditex annual reports from 2007 to 2011.

  30. Data obtained from Zara’s corporate website: http://www.inditex.com/en/who_we_are/timeline.

  31. “Zara: Taking the Lead in Fast-Fashion,” Businessweek, April 4, 2006.

  32. “Retail: Zara Bridges Gap to Become World’s Biggest Fashion Retailer,” Guardian, August 11, 2008.

  33. John Helyar and Mehul Srivastava, “Outsourcing: A Passage Out of India,” Bloomberg Businessweek, March 19–25, 2012, pp. 36–37.

  34. Ben Sills, Natalie Obiko Pearson, and Stefan Nicola, “Power to the People,” Bloomberg Markets, May 2012, p. 51.

  35. Koeppel, Banana: The Fate of the Fruit That Changed the World; see also the company’s website (http://chiquita.com/Our-Company/The-Chiquita-Story.aspx) as well as the Chiquita Brands entry at the Funding Universe website (http://www.fundinguniverse.com/company-histories/Chiquita-Brands-International-Inc-C
ompany-History.html).

  36. Interbrand, “Brand Valuation: The Financial Value of Brands,” Brand Papers, http://www.brandchannel.com/papers_review.asp?sp_id=357; see also John Gapper, “Companies Feel Benefit of Intangibles,” Financial Times, April 23, 2007.

  37. Interbrand, “Best Global Brands 2011,” Brand Papers, http://www.inter brand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx.

  38. Saxenian, “Venture Capital in the ‘Periphery’: The New Argonauts, Global Search and Local Institution Building”; Saxenian, “The Age of the Agile”; Saxenian, “The International Mobility of Entrepreneurs and Regional Upgrading in India and China.

  39. John Maraganore, quoted in Glen Harris, “Bio-Europe 2007: As Big Pharma Model Falters, Biotech Rides to the Rescue,” Bioworld Today, November 13, 2007.

  40. Kerry A. Dolan, “The Drug Research War,” Forbes, May 28, 2004; “Big Pharma Isn’t Dead, But Long Live Small Pharma,” Pharmaceutical Executive Europe, July 8, 2009; Patricia M. Danzon, “Economics of the Pharmaceutical Industry,” NBER Reporter, Fall 2006.

  41. Quinn Norton, “The Rise of Backyard Biotech,” The Atlantic, June 2011, p. 32.

  42. Henry W. Chesbrough, “The Era of Open Innovation,” MIT Sloan Management Review, April 15, 2003.

  43. Michael Stanko et al., “Outsourcing Innovation,” MIT Sloan Management Review, November 30, 2009; James Brian Quinn, “Outsourcing Innovation: The New Engine of Growth,” MIT Sloan Management Review, July 15, 2000.

  44. “Outsourcing Innovation,” Businessweek, March 21, 2005.

  45. “Outsourcing Drug Discovery Market Experiencing Continued Growth, Says New Report,” M2 Presswire, July 4, 2008.

  46. Christensen, The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail, p. xi.

  47. Ibid., p. 233.

  48. These data are quoted from “Data on Trade and Import Barriers” at www.worldbank.org.

  49. The World Bank, “Doing Business 2011”; see also www.doingbusiness.org.

  50. Priyanka Akhouri, “Mexico’s Cinepolis Targets 40 Screens in India This Year,” Financial Express (India), January 1, 2010.

  51. Interview with Alejandro Ramirez, Cartagena, Colombia, January 2012.

  52. World Bank Group, “‘South-South’ FDI and Political Risk Insurance: Challenges and Opportunities,” MIGA Perspectives, January 2008.

  53. According to UNCTAD: World Investment Report 2012: “Flows to developed countries increased by 21 per cent, to $748 billion. In developing countries FDI increased by 11 per cent, reaching a record $684 billion. FDI in the transition economies increased by 25 per cent to $92 billion. Developing and transition economies respectively accounted for 45 per cent and 6 per cent of global FDI. UNCTAD’s projections show these countries maintaining their high levels of investment over the next three years” (p. xi).

  54. Aykut and Goldstein, “Developing Country Multinationals: South-South Investment Comes of Age”; “South-South Investment,” www.unctad.org; Peter Gammeltoft, “Emerging Multinationals: Outward FDI from the BRICS Countries,” International Journal of Technology and Globalization 4, no. 1 (2008): 5–22.

  55. Interview with Antoine van Agtmael, Washington, DC, May 2012.

  56. “Mexico’s CEMEX to Take Over Rinker,” Associated Press, June 8, 2007.

  57. Clifford Kraus, “Latin American Companies Make Big US Gains,” New York Times, May 2, 2007; Frank Ahrens and Simone Baribeau, “Bud’s Belgian Buyout,” Washington Post, July 15, 2008; Peter Marsh, “Mittal Fatigue,” Financial Times, October 30, 2008.

  58. Graham Bowley, “Rivals Pose Threat to New York Stock Exchange,” New York Times, October 14, 2009; Jacob Bunge, “BATS Exchange Overtakes Direct Edge in February US Stock Trade,” Dow Jones Newswires, March 2, 2010.

  59. “Shining a Light on Dark Pools,” The Independent, May 22, 2010.

  60. Nina Mehta, “Dark Pools Win Record Stock Volume as NYSE Trading Slows to 1990 Levels,” Bloomberg News, February 29, 2012.

  61. Venkatachalam Shunmugam, “Financial Markets Regulation: The Tipping Point,” May 18, 2010, www.voxeu.org.

  62. Institutional Investor, Hedge Fund 100 (2012).

  63. Bloomberg Markets, February 2012, p. 36.

  64. Gary Weiss, “The Man Who Made Too Much,” Portfolio.com, January 7, 2009.

  65. Mallaby, More Money Than God, pp. 377–378.

  66. James Mackintosh, “Dalio Takes Hedge Crown from Soros,” Financial Times, February 28, 2012.

  67. Ibid.

  CHAPTER NINE

  1. “Latin America Evangelism Is ‘Stealing’ Catholic Flock,” Hispanic News, April 16, 2005.

  2. Diego Cevallos, “Catholic Church Losing Followers in Droves,” IPS news agency, October 21, 2004.

  3. Indira Lakshmanan, “Evangelism Is Luring Latin America’s Catholics,” Boston Globe, May 8, 2005; “Hola, Luther,” Economist, November 6, 2008; Carlos G. Cano, “Lutero avanza en America Latina,” El País, July 30, 2010.

  4. Hanna Rosin, “Did Christianity Cause the Crash?” The Atlantic, December 2009.

  5. Pew Forum on Religion and Public Life, “Spirit and Power: A 10-Country Survey of Pentecostals,” October 2006.

  6. Edir Macedo, quoted in Tom Phillips, “Solomon’s Temple in Brazil Would Put Christ the Redeemer in the Shade,” Guardian, July 21, 2010.

  7. Alexei Barrionuevo, “Fight Nights and Reggae Pack Brazilian Churches,” New York Times, September 15, 2009.

  8. Richard Cimino, “Nigeria: Pentecostal Boom—Healing or Reflecting a Failing State?” Religion Watch, March 1, 2010.

  9. Pew Forum on Religion and Public Life, “Global Christianity: A Report on the Size and Distribution of the World’s Christian Population,” December 2011.

  10. Ibid.

  11. Pew Forum on Religion and Public Life, “Faith on the Move: The Religious Affiliation of International Migrants,” March 2012.

  12. Larry Rohter, “As Pope Heads to Brazil, a Rival Theology Persists,” New York Times, May 7, 2007.

  13. Diego Cevallos, “Catholic Church Losing Followers in Droves,” IPS news agency, October 21, 2004; see also “In Latin America, Catholics Down, Church’s Credibility Up,” Catholic News Service, June 23, 2005.

  14. “The Battle for Latin America’s Soul,” Time, June 24, 2001.

  15. Allen, The Future Church, p. 397.

  16. “Pentecostals Find Fertile Ground in Latin America,” BBC Radio 4 Crossing Continents, bbc.co.uk.

  17. Indira Lakshmanan, “Evangelism Is Luring Latin America’s Catholics,” Boston Globe, May 8, 2005.

  18. On the rise and advantage of evangelicals, see André Corten, “Explosion des pentecôtismes africains et latino-américains,” Le Monde Diplomatique, December 2001; and Peter Berger, “Pentecostalism: Protestant Ethic or Cargo Cult?” The American Interest, July 29, 2010.

  19. Alexander Smoltczyk, “The Voice of Egypt’s Muslim Brotherhood,” Spiegel, February 15, 2011; see also John Esposito and Ibrahim Kalin, “The 500 Most Influential Muslims in the World in 2009,” Edmund A. Walsh School of Foreign Service, Georgetown University. (Sheikh Dr. Yusuf al Qaradawi, head of the International Union of Muslim Scholars, is ninth on the list.)

  20. Harold Meyerson, “When Unions Disappear,” Washington Post, June 13, 2012.

  21. For data in trends in union membership in Europe, see Sonia McKay, “Union Membership and Density Levels in Decline,” EIROnline, Eurofound Document ID No. EU0603029I 01–09–2006 (download at http://www.eurofound.europa.eu/eiro/2006/03/articles/eu0603029i.htm), and J. Visser, “Union Membership Statistics in 24 Countries,” Monthly Labor Review 129, no. 1 (January 2006), http://www.bls.gov/opub/mlr/2006/01/art3abs.htm.

  22. Alasdair Roberts, “Can Occupy Wall Street Replace the Labor Movement?” Bloomberg, May 1, 2012.

  23. For further information on Stern, see Harold Meyerson, “Andy Stern: A Union Maverick Clocks Out,” Washington Post, April 14, 2010.

  24. Steven Greenhouse, “Janitors’ Un
ion, Recently Organized, Strikes in Houston,” New York Times, November 3, 2006.

  25. On China’s labor movement, see David Barboza and Keith Bradsher, “In China, Labor Movement Enabled by Technology,” New York Times, June 16, 2010, and Edward Wong, “As China Aids Labor, Unrest Is Still Rising,” New York Times, June 20, 2010.

  26. Richard Sullivan, “Organizing Workers in the Space Between Unions,” American Sociological Association paper, January 17, 2008.

  27. OECD, “Development Aid: Total Official and Private Flows Net Disbursements at Current Prices and Exchange Rates” (Table 5), Paris, April 4, 2012, http://www.oecd-ilibrary.org/development/development-aid-total-official-and-private-flows_20743866-table5.

  28. Giving USA Foundation, Giving USA 2011: The Annual Report on Philanthropy for the Year 2010, www.givingusareports.org.

  29. These numbers are quoted from annual reports of the Foundation Center, available online at www.foundationcenter.org/findfunders/.

  30. James M. Ferris and Hilary J. Harmssen, California Foundations: 1999–2009: Growth Amid Adversity, The Center on Philanthropy and Public Policy, University of Southern California.

  31. Again, see Foundation Center at http://foundationcenter.org/findfunders/.

  32. Mauro de Lorenzo and Apoorva Shah, “Entrepreneurial Philanthropy in the Developing World,” AEI Online, American Enterprise Institute, December 12, 2007; Michael Jarvis and Jeremy M Goldberg, “Business and Philanthropy: The Blurring of Boundaries,” Business and Development Discussion Papers 9, World Bank Institute, Fall 2008.

  33. Raj M. Desai and Homi Kharas, “Do Philanthropic Citizens Behave Like Governments? Internet-Based Platforms and the Diffusion of International Private Aid,” Wolfensohn Center for Development at Brookings, Working Paper 12, October 2009.

  34. Moyo, Dead Aid.

  35. Tom Munnecke has also weighed in on the subject of “micro-philanthropy”: see Tom Munnecke and Heather Wood Ion, “Towards a Model of Micro-Philanthropy,” May 21, 2002, givingspace.org.

  36. Jacqueline Novogratz, quoted in Richard C Morais, “The New Activist Givers,” Forbes, June 1, 2007, http://www.forbes.com/2007/06/01/philanthropy-wealth-foundation-pf-philo-in_rm_0601philanthropy_inl.html.