China put on test

An extraordinary city in southern China is testing this great country’s ability to deal with democratization.

Wukan, a fishing village of approx 20,000 inhabitants have been robbed of their land. Industrial development need more land and local government confiscate land without proper compensation.

Protest have been going on for days, local politicians have fled town and police has sieged the city blocking food supplies.

This situation is delicate for Chinese officials dealing with both national and international reactions.  We should all follow their actions.

Anders from Gjøvik, Norway 

Nobel Peace Prize 2011 to three visonary women with a devotion

A joint support to womens role in peace activism and political change processes.  An excellent choice though different in nature:  The price to Gbowee and Johnson-Sirleaf is for achievements in Liberia that goes some year back.  Johnson-Sirleaf has grown into an important statesman worthy of this recognition.

Gbowee stood up to become an important leader for women’s rights, social justice and human rights.  She led and inspired a movement and became an instrumental peacemaker with unconventional methods in the reconciliation process in Liberia.

The youngest Nobel Peace Prize winner ever, 32 years old Tawakkol Karman also represent a similar female force, standing in the middle of a fight for democratization in Yemen, of which the outcome is still uncertain.  But she speaks with a universal voice that is strong in an Arab context that need modernization.

As was the message of Johnson-Surleaf: “Women of the world, find your voice and use it!”

Anders, from Gjøvik, Norway 

Globalization – Where are we heading?

As we write 2011 into the history books, it’s time to do some book keeping;

• What have we learned?
• Where are we heading?

Globalization is progressing at an escalating beat, but is the DJ sleeping behind the turntable?  Where is the conductor?  Is Obama keeping the beat?    In Europe, for a while we got the impression that Merkel & Sarkozy had taken upon themselves to get harmony and rhythm back into the Euro, and re-establishing order in the rave party down in Greece.

It is evident that not only the Greecs have been partying with borrowed money.  How far will the debt crisis take us into recession?  The present debt structure in the US and Europe for sure will have lasting geopolitical effects on the world, and this in the long run, should be good.  On the other hand, it might be a bumpy ride to get there – the Nirvana of a globalized, democratic world.

Estimated foreign holdings of U.S. Treasury securities have more than quadrupled since 2001. Some experts worry about the geopolitical consequences of foreign governments investing so deeply in U.S. Treasuries. But the investments also tie the fortunes of foreign governments more closely to those of the United States.

As with foreign holdings of US Treasury securities, the countries are getting more and more integrated, inter-related and inter-dependant.  But most countries have not been able to modernize their political thinking on how to adopt to this new reality.

Foreign departments and international bodies need serious upgrading.  The EU might be forced to push more central power into Brussels, and there are no doubt that institutions like the World Bank, IMF and UN need a fundamental re-boot, shake-up and modernization to become the tools we need to manage the brave new world.

Anders, from the cold beach of Kapp, Norway 

10 Countries that try to be next China

The constant race for cheaper labour cost have had one destination for the last two decades – China.  This is about to change.

Most of South East Asia together with India have ambitions to capture the market for labour intensive business development.

Click the illustration for an interesting list of countries.

Anders, from an autumn coloured Norway.

 

Rome for sale

The final crunch of the Roman Empire is also a story of how democracy can turn a country into a brothel.  Democratically elected Berlusconi has run the country into ruin while filling up his private and company accounts.  It is more than a joke.  It is a tragedy.  Now people in Italy need to wake up.

Reverse colonization or globalization?

 

For a decade, the country has consistently spent more than they have earned, and we all know where that takes us.  What we do not know, is what really happens when Italy is on its knees, and China is called in to rescue.  Now that is an interesting new situation.

For an interesting view, look to Financial Times correspondent in Rome, Guy Dinsmore: Financial Times on Italy

Are we at the beginning of “reverse colonization of Europe”  Mr Tremonti has been asking. No Mr. Tremonti, this is globalization as a two-way street.  But the road has not been taken before, so we are up for some real new learning.

Anders, Gjovik, Norway 

World Metropoles – Istanbul Must-Dos

Istanbul Must-Dos — National Geographic’s Ultimate City Guides.

My favorite world metropolis’ a must for the global citizen;

• São Paulo, Brazil
• New York, USA
• Istanbul, Turkey
• Moscow, Russia
• Paris, France
• Colcutta, India
• Shanghai, China
• Singapore

Check out National Geographic’s Must-dos in Istanbul on the link above.

Anders, from a rainy and cold Gjøvik, Norway 

China – 20 years of “goldrush”

Two decades of very low labour cost
Business owners willing to take a fair risk have enjoyed two decades of spectacular development in China’s urban areas since the early 1990-ies.  Most companies spent the better part of the first decade to build quality and profitability, then they had a decade to harvest good results.

 Now starts the challenge

Too many companies rushed into China either too late, or choosing a location too close to a metropolis.  They are now facing numerous challenges:

• Escalating labour cost
• Shortage of skilled labour
• Labour migration from blue collar to white collar
• Escalating cost of operation

Too often you will find a low tech Western company located in a high tech Chinese environment, left with very few options but to move again.

The second wave in China

After the initial euphoria in board rooms across the world, they now have to start the hard work:  Where to move next?  And way too often that is followed by an even more important question:  After having scaled down our HQ – Who should be doing the next move?

Make sure your company does not get trapped in this dead-end road, where bridges have been burnt making your next move really challenging.

Companies still having their joystick connected now move in two directions;

• Further inland in China
• Out of China and into:  Philippines, Vietnam, India and Indonesia

Which of these two ways depend on their first experience in China.  If well established, and been able to build a profitable business, a move further inland might be a good option.  Companies that came too late, or never where able to get real control of their Chinese subsidiary, often choose to move out.

If you want to discuss your strategy in China, in Asia or globally, do not hesitate to contact us:

Globalization4U or thomassen.me

Anders, from a wet Norwegian summer, Gjøvik, Norway

Happy Eid ul-Fitr

The month of Ramadan comes to an end, and at Globalization4U we wish all Muslim friends a happy Eid ul-Fitr.

"Let us love. Let us be loved" Eid wishes from Blue Mosque, Istanbul

Had the pleasure to explore the fabulous Sultan Ahmed Mosque or the “Blue Mosque” in Istanbul again this summer with my wife.

The author and wife in the Blue Mosque, Istanbul.

A joyful Eid ul-Fitr!

Anders, from the sunny shores of Lake Mjøsa, Norway 

Exiting opportunities in globalization

There are many proverbs trying to convey the message:  Do not follow the crowd!

Opportunities are easiest found when walking the opposite direction, as Peder reports in his most resent blog:  ”Yes They Can”    This is good reading, and an excellent case to study well.

Globalization as a concept is far more complex than just outsourcing jobs to cheaper labor countries.  It offers structural changes that will reshape our societies into something better.

Good management reading with a similar message to Peder can be found in the poem “The Road Not Taken” by Robert Frost:

Two roads diverged in a yellow wood,
And sorry I could not travel both
And be one traveler, long I stood
And looked down one as far as I could
To where it bent in the undergrowth;

Then took the other, as just as fair
And having perhaps the better claim,
Because it was grassy and wanted wear;
Though as for that, the passing there
Had worn them really about the same,

And both that morning equally lay
In leaves no step had trodden black
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I
I took the one less traveled by,
And that has made all the difference. 

Anders, from the shores of Lake Mjøsa, Kapp, Norway 

World leaders still not used to globalization

Globally connected media networks and instant distribution of news have created a new framework for news, businesses and politics we better get used to.  Both House Speaker John Bohner as well as President Obama seems they’ve forgotten this new situation.

Devastating consequences might be the result of their political deadlock.

A fragile world economy fueled with fear is not the right backdrop for another political discussion of the US magnitude.

With China defending their currency value and Europe defending their Euro, with a global stock market ever more volatile and nervous, we are about to see a beautiful whiplash effect.  Globalization have made the world market an amplifier in the present situation, and amplitudes risk running wild.

August 4 global drop on all major stock exchanges. Whiplash about to start.

We better get used to the new metrics and mechanics of globalization sooner rather than later.

Anders, from a wet Norwegian summer in Gjøvik, Norway.