A Future Perfect: The Challenge and Promise of Globalization

by John Micklethwait

  3. “Giving the Customer What He Wants,” The Economist, February 14, 1998.

  4. Jessica Mitford, The American Way of Death Revisited (New York: Alfred A. Knopf, 1998), p. 233.

  5. Ibid., p. 191.

  6. Ibid., p. 229.

  7. Matthew Bishop, “Privatising Peace of Mind: A Survey of Social Insurance,” The Economist, October 24, 1998, is the source for many of the statistics in the following paragraphs.

  8. Peter Peterson, “Grey Dawn: The Global Aging Crisis,” Foreign Affairs, January/February 1999, p. 46.

  9. “Reading, Writing and Enrichment,” The Economist, January 16, 1999.

  Chapter 6

  p. 347 1. John Kay and Leslie Hannah, “Myth of Critical Mass,” Financial Times, March 25, 1998.

  2. Robert Samuelson, “Corporate Power? It’s Actually Waning,” International Herald Tribune, May 28, 1998.

  3. Theodore Levitt, “The Globalization of Markets,” Harvard Business Review, May-June 1983.

  4. Quoted in Evelyn Iritani and Stuart Silverstein, “The World Makes Business Go Round.” Los Angeles Times, May 10, 1998.

  5. Nikhil Deogun and Jonathan Karp, “For Coke in India, Thums Up Is the Real Thing,” The Wall Street Journal, April 29, 1998.

  6. Paulette Thomas, “Minority Businesses Increase Cross-Ethnic Marketing,” The Wall Street Journal, April 21, 1998.

  7. Peter Schwartz and Peter Leyden, “The Long Boom: A History of the Future, 1980-2020,” Wired, July 1997.

  8. Nathan Myhrvold, “The Dawn of Technomania,” The New Yorker, October 20, 1997.

  9. Stephen Roach, “Where the Boom Busts,” Wired, July 1998.

  10. In November 1997, the editor of BusinessWeek, Stephen Shepard, wrote a long essay in which he accused “old economists” (including The Economist) of inventing a straw man by implying that new economists, such as his own magazine, had said that economics needed to be rewritten and that the new economy was a recipe for permanent bliss. Of course, he did not think that inflation was dead, or the business cycle extinct; merely that the speed limit for the U.S. economy should be raised. This argument only prompted a withering statistical attack from Paul Krugman in Slate (www.slate.com/dismal/97-12-18/dismal.asp). But Shepard was right to say that both sides have been prone to exaggeration.

  11. James Glassman and Kevin Hassett, Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market (New York: Times Books, 1999).

  12. One of the best debunkings of antiglobalist thinking is Gary Burtless et al., Globaphobia: Confronting Fears about Open Trade (Washington, D.C.: Brookings Institution Press, 1998), which has been very useful in this chapter.

  13. “White Man’s Shame.” The Economist, September 25, 1999.

  14. See charts in “The Strange Life of Low Tech America,” The Economist, October 17, 1998.

  15. Julio Laboy, “Clothiers in the Barrio to Japanese Teen Rebels,” The Wall Street Journal, April 8, 1998.

  Chapter 7

  p. 348 1. Lowell Bryan et al., Race for the World: Strategies to Build a Great Global Firm (Boston: Harvard Business School Press, 1999).

  2. General Electric finished first in Fortune’s list of the world’s most admired companies in 1998 and 1999.

  3. Leon Wynter, “Business and Race,” The Wall Street Journal, April 1, 1998.

  4. John Stopford, “Multinational Corporations Think Again: Organizational Reinvention Confounds Widespread Perception,” Foreign Policy, no. 113 (winter 1998-1999).

  5. Peter Drucker, “Management’s New Paradigms,” Forbes, September 5, 1998.

  6. John Lawler and Johngseok Bae, “Overt Discrimination by Multinational Firms,” Industrial Relations Journal, April 1998.

  7. One survey by McKinsey, taking in seventy-seven companies and six thousand managers, found fairly unanimous agreement. The most important resource is not capital, strategy, or R and D; it is talent.

  8. C. K. Prahalad and Kenneth Lieberthal, “The End of Corporate Imperialism,” Harvard Business Review, July-August 1998.

  9. Niraj Dawar and Tony Frost, “Competing with Giants,” Harvard Business Review, March-April 1999.

  10. “Out of the Shadows,” The Economist, August 28, 1999.

  11. Dawar and Frost, “Competing with Giants.”

  12. Adrian Wooldridge, “The World in Your Pocket: A Survey of Telecommunications,” The Economist, October 9, 1999, esp. pp. 23-27.

  13. Ibid., p. 24.

  14. The best description of GE’s culture is in Noel Tichy and Stratford Sherman, Control Your Destiny or Somebody Else Will (New York: Doubleday, 1993).

  15. Paul Doremus et al., The Myth of the Global Corporation (Princeton: Princeton University Press, 1998).

  Chapter 8

  1. “The frontier is the basic political institution,” argues Malcolm Anderson in his comprehensive guide to borders, Frontiers: Territory and State Formation in the Modern World (London: Polity Press, 1996). “No rule-bound economic, social or political life could be organized without them.”

  2. E. J. Hobsbawm, Nations and Nationalism since 1780: Programme, Myth, Reality (Cambridge: Cambridge University Press, 1990).

  3. Benedict Anderson, Imagined Communities: Reflections on the Origin and Spread of Nationalism (London: Verso, 1983).

  4. “The capitalism that exists there is like a Marxist’s dream come true. What you have is absolutely raw theft, I wouldn’t even want to call it capitalism.” p. 349 Marshall Goldman, a Russian scholar, quoted in Steve Liesman, “Surprise: The Economy in Russia Is Clawing out of Deep Recession,” The Wall Street Journal, January 28, 1998.

  5. “Private Propulsion,” The Economist, February 14, 1998.

  6. Warren Hoge, “Ah, Britain! The Light at the End of the Tunnel,” The New York Times, March 9, 1998.

  7. Manuel Castells, The Power of Identity (Malden, Mass.: Blackwell, 1997), p. 258.

  8. Paul Light, “Big Government Is Bigger Than You Think,” The Wall Street Journal, January 13, 1999.

  9. Ann-Marie Slaughter, “The Real New World Order,” Foreign Affairs, September/October 1997.

  10. Robert Cooper, The Post-Modern State and the World Order (London: Demos, 1996).

  11. Helene Cooper, “Holland Is Doing Its Best to Disappear into the New Europe,” The Wall Street Journal, March 6, 1998.

  12. “An Era for Mice to Roar,” The Wall Street Journal, February 25, 1999.

  13. Raphael Samuel, Island Stories: Unravelling Britain (London: Verso, 1998).

  14. Helliwell, How Much Do National Borders Matter?

  15. Brian Beedham, “The New Geopolitics,” The Economist, July 31, 1999.

  16. Peter Drucker, “The Global Economy and the Nation State,” Foreign Affairs, September/October 1997.

  Chapter 9

  1. See Adam Roberts, “Towards a World Community,” in Michael Howard and William Roger Louis, eds., The Oxford History of the Twentieth Century (Oxford: Oxford University Press, 1998).

  2. From the United Nations Charter.

  3. Poll by the University of Maryland Program on International Policy, quoted in “Idealism, Past and Present,” The New York Times, January 4, 1998.

  4. Marrack Goulding, “The UN Will Work If We Let It,” The New Statesman, May 8, 1998.

  5. Angus Reid/Economist poll, The Economist, January 2, 1999.

  6. Rudi Dornbusch, quoted in “Top CEOs Are Upbeat about Business,” International Herald Tribune, January 29, 1999.

  7. For a wider discussion, see “The New Cambridge Mafia,” Institutional Investor, September 1998.

  8. “Bitter Medicine: South Korea Played the Reluctant Patient to IMF’s Rescue Team,” The Wall Street Journal, March 2, 1998.

  9. One nice example of what might have happened is shown in Paul Krugman, “Let’s Not Panic—Yet,” The New York Times, August 30, 1998.

  p. 350 10. Michael Mussa, “The IMF: Responsive and Accountable,” Brookings Review, fall 1998.

  11. “Global Finance: Time for a Redesign,”
The Economist, January 30, 1999.

  12. Barry Eichengreen, “Capital Mobility,” The Milken Institute Review 1:1 (first quarter 1999).

  13. Allan Metzer of Carnegie Mellon University.

  14. Cited in “The Bailout Backlash,” U.S. News and World Report, February 2, 1998.

  15. Stanley Fischer, “On the Need for an International Lender of Last Resort,” speech delivered at the joint luncheon of the American Economic Association and the American Finance Association, New York, January 3, 1999 (posted at www.imf.org/external/np/speeches/1999/010399.htm).

  16. Martin Woolf, “Pegging Out,” Financial Times, January 20, 1999.

  17. Quoted in Judy Shelton, “Time for a New Bretton Woods,” The Wall Street Journal, October 15, 1998.

  18. Charles Kindleberger, Manias, Panics, and Crashes: A History of Financial Crises (New York: John Wiley and Sons, 1996).

  19. “White Man’s Shame,” The Economist, September 25, 1999.

  20. Quoted in “U.S. Has to Lead in Market Reform,” International Herald Tribune, February 6, 1999.

  Chapter 10

  1. The story of the rise of French cinema—and its subsequent defeat at the hands of Hollywood—is well told in Bill Grantham, Some Big Bourgeois Brothel: Contexts for France’s Culture Wars with Hollywood (Luton: University of Luton Press, 1999).

  2. Figures quoted in “Schools Brief: A World View,” The Economist, November 29, 1997.

  3. “The Mixed Feelings of Europeans,” The Economist, April 17, 1999.

  4. Paul Lewis, “Too Late to Say ‘Extinct’ in Ubykh, Eyak, or Ona,” The New York Times, August 15, 1998.

  5. Quoted in Benjamin Barber, Jihad vs. McWorld (New York: Times Books, 1995), p. 90.

  6. Paul Farhi and Megan Rosenfeld, “American Pop Penetrates Worldwide,” The Washington Post, October 25, 1998.

  7. Alessandra Stanley, “Italy Can’t Believe Its Ears: Movies Lose Their Voices,” The New York Times, September 16, 1998.

  8. Hal Lipper, “Will ‘Mr. Cat Poop’ Clean Up at the Box Office in Hong Kong?” The Wall Street Journal, April 13, 1998. This article sparked off something of a craze for alleged Chinese titles for Western movies, some of them even funnier but most of them fictitious.

  p. 351 9. Michael Medved, Hollywood versus America (New York: HarperPerennial, 1993).

  10. Douglas Blackmon, “Forget the Stereotype: America Is Becoming a Nation of Culture,” The Wall Street Journal, September 17, 1998.

  11. William F. Baker and George Dessart, Down the Tube: An Inside Account of the Failure of American Television (New York: Basic Books, 1998), pp. 206-7.

  12. Rana Dogar, “Changing Channels,” Newsweek, June 7, 1999.

  13. Richard Covington, “Local Bands Leapfrog Global Stars on the Charts,” International Herald Tribune, February 4, 1998.

  14. Paulette Thomas, “Minority Businesses Increase Cross-Ethnic Marketing,” The Wall Street Journal, April 21, 1998.

  15. Nathan Gardels, ed., The Changing Global Order (Oxford: Blackwell, 1997).

  16. Michael Elliott, “Killing Off Kipling,” Newsweek, December 29, 1997.

  17. Robert Hershey, “Americans Abroad Learn Studies Can Be a Bargain,” The New York Times, March 1, 1998.

  18. John Seabrook, “The Big Sell Out,” The New Yorker, October 20, 1997.

  19. Farhi and Rosenfeld, “American Pop Penetrates Worldwide.”

  20. “Coming to Hillingdon,” The Economist, February 17, 1996.

  Chapter 11

  1. Robert Frank and Philip Cook, The Winner-Take-All Society (New York: Free Press, 1995), p. 2.

  2. These statistics, like many subsequent ones about Silicon Valley, come from Joint Venture: Silicon Valley Network’s 2002 Index.

  3. AnnaLee Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Mass.: Harvard University Press, 1994).

  4. Homa Bahrami and Stuart Evans, “Flexible Recycling and High Technology Entrepreneurship,” California Management Review 37:3 (spring 1995).

  5. Stan Liebowitz and Stephen Margolis, “The Fable of the Keys,” Journal of Law and Economics, October 1990.

  6. Stan Liebowitz and Stephen Margolis, Winners, Losers, and Microsoft: Competition and Antitrust in High Technology (Oakland: Independent Institute, 1999).

  7. The number of millionaires comes from a speech by John Heilemann, October 7, 1999.

  8. Andrea Adelson, “After a Computer Age Windfall, Workers Reinvent Their Lives,” The New York Times, May 30, 1999.

  9. David Case, “High Tech Embraces ‘Offshore’ Employees,” Wired, March 1998.

  10. Andrew Tanzer, “Silicon Island,” Forbes Global Business and Finance, June 1, 1998.

  p. 352 11. Krishna Guha, “India’s On-line Meritocracy,” Financial Times, October 25, 1999.

  12. Visit by Lucy Jones on behalf of authors, spring 1999.

  13. Candice Goodwin, “Orkney, Where a Software Developer May Safely Graze,” Daily Telegraph, June 2, 1998.

  14. Such a man was David Filo, cofounder of Yahoo! See Po Bronson, The Nudist on the late Shift (New York: Random House, 1999).

  15. Tamara Jacoby, “The African-American Absence in High Tech,” The New Republic, March 29, 1999.

  Chapter 12

  1. Quoted in Rosabeth Moss Kanter, World Class: Thriving Locally in the Global Economy (NewYork: Simon and Schuster, 1995), p. 45.

  2. Anthony Sampson, Company Man: The Rise and Fall of Corporate Life (London: HarperCollins, 1995).

  3. Joann Lublin, “More Toasts, Less Sleep,” The Wall Street Journal, November 19, 1998.

  4. Trinh Quang Do, “A Letter from Vietnam,” Stanford Business, March 1998.

  5. Paschal Zachary, “Yanks in Vogue,” The Wall Street Journal, ]une 8, 1998.

  6. Anthony Spaeth, “Get Rich Quick,” Time, April 13, 1998.

  7. James Bates, “Watch the Money,” Los Angeles Times Magazine, January 31, 1999, p. 33.

  8. Samuel P. Huntington, The Clash of Civilizations and the Remaking of World Order (New York: Simon and Schuster, 1996), p. 57.

  9. Manuel Castells, The Rise of the Network Society, vol. 1 (Malden, Mass.: Blackwell, 1996), p. 232.

  10. David Ewing, Inside the Harvard Business School: Strategies and Lessons of America’s Leading School of Business (New York: Times Books, 1990), p. 30.

  11. “The Hottest Campus on the Internet,” BusinessWeek, October 20, 1997.

  12. “The New Stars of Finance,” BusinessWeek, October 27, 1997.

  13. Nina Munk, “The New Organization Man,” Fortune, March 16, 1998.

  14. Nancy Ann Jeffrey, “Sleep: The New Status Symbol,” The Wall Street Journal, April 2, 1999.

  15. Sue Shellenbarger, “Families Are Facing New Strains as Work Expands across the Globe,” The Wall Street Journal, November 12, 1997.

  16. McKinsey and Company, “The War for Talent: Report to Participating Companies. March 1998,” p. 17.

  17. Robert Reich, The Work of Nations: Preparing Ourselves for the Twenty-first Century (New York: Alfred A. Knopf, 1991).

  18. Castells, Rise of the Network Society, p. 415.

  p. 353 19. Kanter, World Class, p. 219.

  20. Joel Kotkin, “Business Leadership in the New Economy: Southern California at a Crossroad,” La Jolla Institute Report, July 1998, p. 8.

  21. Kanter, World Class, p. 161.

  22. Christopher Lasch, The Revolt of the Elites and the Betrayal of Democracy (New York: W. W. Norton, 1995), pp. 33, 47.

  Chapter 13

  1. Louis Uchtelle, “The Middle Class: Winning in Politics, Losing in Life,” The New York Times, July 19, 1998.

  2. Clay Chandler, “Bull Market Bypasses Many Americans,” International Herald Tribune, April 8, 1999.

  3. Bethany McLean, “Wretched Excess,” Fortune, September 7, 1998.

  4. Celestine Bohlen, “After Moscow Elite’s Binge, Hangover Time Has Come,” The New York Times, September 8, 1998.

  5. Michael Reid, “Disorders
of Progress: A Survey of Brazil,” The Economist, March 1999.

  6. Michael Phillips, “Dhaka on the Potomac,” The Wall Street Journal, August 24, 1998.

  7. Maggie O’Kane, “She Is Just Three and Suffers from a Plague That Kills Millions—The Plague of Debt,” The Guardian, May 11, 1998.

  8. Robert Fogel, cited in Ron Suskind, “Misery Amongst Plenty,” The Wall Street Journal, special millennium section, January 11, 1999.

  9. The prime resource for poverty statistics is the UNDP’s Human Development Report (Oxford: Oxford University Press for the UNDP, 1999).

  10. Raymond Baker and Jennifer Nordin, “A 150:1 Ratio Is Far Too Lopsided for Comfort,” International Herald Tribune, February 5, 1999.

  11. Larry Elliott, “Why the Poor Are Picking Up the Tab,” The Guardian, May 11, 1998.

  12. Michael Cox and Richard Alm, Myths of Rich and Poor (New York: Basic Books, 1999).

  13. Jim Rohwer, Asia Rising (London: Nicholas Brealey, 1995), p. 127.

  14. Maria Carmen de Mello Lemos, “The Cubatao Pollution Control Project: Popular Participation and Public Accountability,” Journal of Environment and Development 7:1 (March 1998).

  15. David Malin Roodman, The Natural Wealth of Nations: Harnessing the Market for the Environment (New York: W. W. Norton/Worldwatch, 1998), p. 19.

  Chapter 14

  p. 354 1. Quoted in “U.S. Has to Lead in Market Reform,” International Herald Tribune, February 6, 1999.

  2. Quoted in Alan Cowell, “Annan Fears Backlash over Global Crisis,” The New York Times, February 1, 1999.

  3. Frances Williams, “Globalization Bad for Your Health, say UN Agencies,” Financial Times, June 10, 1999.

  4. Emma Rothschild, “Globalization and Democracy in Historical Perspective” (Working Paper, February 1999), p. 6.

  5. Keynes, Economic Consequences of the Peace, p. 11.

  6. “Letter from Nantahala,” The New Yorker, March 15, 1999.

  7. Ian Buruma, Anglomania: A European Love Affair (New York: Random House, 1999), p. 190.

  8. Julia Preston, “Unrest in Mexico Breeds Resentment of Outsiders,” The New York Times, February 14, 1998.

  9. Research by Peter Bergen for his book Holy War Inc.

  10. Ibid.

  11. Peter Beinart, “Greens Flip over Turtles,” Time, April 27, 1998.