Across the United States, Europe, and much of the rest of the developed world, state interventionism is meant to lessen the pain of the current global recession and restore ailing economies to health. For the most part, the governments of developed countries do not intend to manage these economies indefinitely. However, an opposing intention lies behind similar interventions in the developing world: there the state’s heavy hand in the economy – State capitalism – is signaling a strategic rejection of free-market doctrine.
State capitalism is not simply an economic system. It is a political invention designed to ensure that market activity and wealth serve the interests of the state and those who run it. In times of crisis, state officials will use state-run companies and investment vehicles to defend state interests even at the expense of their economic performance.
What about the long-term viability of state capitalism in those places where they are exists? Are Russian, Chinese, or Gulf Arab state-owned enterprises becoming more competitive as part of some sort of “State Capitalism? There is no question that a growing number of these companies are competing with the world’s largest multinationals. Some of them are winning. Yet, if they are truly becoming more competitive, why do they still need the financial and political backing of their home governments? Could they compete as effectively without these advantages? If they are outgrowing the need for state support, does that not imply that this form of state capitalism is not sustainable and therefore not a viable long-term alternative?
In fact, if state capitalism is merely a developmental stage on a company’s path towards self-sustaining dynamism, what happens when powerful officials with a direct personal stake in their success resist the push to privatize them? State-owned companies are not known as leaders in innovation. Some of them become dinosaurs. But if they still generate revenue for powerful state officials or politically connected business leaders, they are unlikely to become extinct, even when they should.
Policymakers in the era of globalization have tended to focus on facilitating greater integration while ignoring critical vulnerabilities and risks in the global system. A noted economist, Ian Goldin, at Oxford University writes, if we do not take steps to address these weaknesses, we risk a backlash of protectionism, xenophobia and nationalism. Globalization remains at the center of today’s debates. Yet, despite much research and commentary, vital dimensions remain poorly understood. Recent decades of globalization have created a more interconnected, interdependent and complex world than ever witnessed before.
While global policy has focused on facilitating integration, the implications of growing interdependence have been largely ignored. The acceleration in global integration has brought many benefits, but it also has created fragility through increased vulnerability and exposure to global shocks, such as today’s financial crisis. The biggest challenge for politicians and policy makers is the need to balance the enormous benefits that global openness and connectivity brings with national politics and priorities. It also is a major concern for citizens, who are torn between the benefits of imported goods and services, and their worries about local jobs, the dangers associated with illicit flows, and other implications of more open borders. These concerns are universal and affect all societies.
The benefits of global integration have been associated with unprecedented leaps in human development indicators. Technological innovation has accelerated integration both virtually, through the development of fiber optics, the internet and mobile telephone, as well as physically with vast improvements in transport and infrastructure. The spread of people, ideas, trade and the inspiring education revolution has and will continue to offer enormous potential for poverty alleviation and economic opportunity.
Yet the downside to globalization is that of increased inequality between and within countries. And the second “side effect” is that the likelihood of increasing numbers of global shocks and crises is growing, as is the people vulnerability to them. Little is understood about the risks associated with large-scale system interdependencies. Well beyond purely the financial arena, new systemic risks loom large in areas such as climate change, water and food insecurity, pandemics, resource scarcity, antibiotic resistance, bioterrorism, cyber security and supply chain vulnerability which are the few among the many.
The fragility of the system as a result of these new vulnerabilities now challenges the very core of the benefits that globalization has produced and is a fundamental challenge to national governments, business leaders and global institutions. Unless the world can find an appropriate balance, there is a significant risk that the failure to manage globalization will lead to a backlash of protectionism, xenophobia and nationalism.
This crisis requires an extraordinarily deep level of reflection by global leaders and by society at large. To turn our backs on globalization would severely undermine economic growth, poverty reduction and global cooperation. If the benefits of globalization are to continue to outweigh the risks that rapid integration exacerbates, understanding systemic interconnections and building multi-stakeholder responses are vital. Redesigning global risk governance mechanisms to take these interconnections into account and to enable cooperation is a major but necessary undertaking.
The bad news is that the tidal wave of globalization has brought unprecedented and new systemic risks. The good news is that this phase of globalization has brought the means to meet the downsides by raising levels of wealth and opportunity, and vitally increasing the collective knowledge and connectivity. The opportunities for cooperative solutions have never been greater, particularly if we are to address the major challenges of the 21st century.
Yet to harness these opportunities, what is needed is an intellectual revolution, a citizens’ mobilization, and a fundamental leadership and institutional shift. Politicians and policymakers are right to worry about today’s significant economic woes. But if we ignore the bigger crisis emerging at the core of globalization, and jump from one crisis management to the next, we do so at our peril.
The Issue of State Capitalism
Me first, then you
When my children were younger, I bought them some educative computer games called “Me and my world”. The children could choose to let a young fellow go around and discover his world. Clicking on items that were passed on the way would open information on history, nature, mathematics etc. The children really liked it and could spend hours working by themselves discovering more and more as they played along. It is the title of the game that always intrigued me. “Me and my world.” As if you are alone with no others around. That is what I often think when I observe people around me, going their way. It could be on the street, in the traffic, in the office, anywhere. They are in their own world, not observing what is going on around them, strictly concentrating on their own activities, whatever they do. They don’t only take any notice of others; they in fact don’t seem to care about them. In fact, they seem to think that only themselves matter, not others, as if we don’t live in a so-called interdependent world. They think: “Me first, then you.” I observe it in the traffic, in the bank, in the shop etc. Waiting and allowing others to go their turn doesn’t come to their mind. In the process they offend others or worse, they create obstacles for everybody else, including themselves, to move on. We experience this in traffic every day, when drivers overtake left, right and centre while there is a jam further down the road. While doing so they offend everybody else waiting in line and on top of that block oncoming traffic, increasing the jam. Instead of helping the situation they make it worse. Maybe their offensive behaviour will help them move on, but for how long and at what cost? They are in their own world, not realising that with a little more patience, respect, some assistance, giving some space to others, they will in fact make a positive difference and help not only themselves but others too. This applies in every walk of life, not only traffic. It applies to the workplace and in the business as well. We are not alone and while getting out of our own small world, seeing the bigger picture, realising that we depend on one another will help a long way in achieving results. As long as we don’t see beyond our own little world, we will continue getting the results we always used to get, not necessarily the best.
So, it is important to open our eyes, see beyond our immediate environment, look around, observe, widen our vision and learn to see thing differently, try to see things through the eyes of another person.
When we stick to the way we see things we will continue doing things in the same way, getting the same results all the time. For example: If we see competition as a threat to our business, we will be defensive. We will not talk to others doing a similar business, them, keep information to ourselves. We may even go to the extent of frustrating, discouraging and boycotting them. As a result, we will remain isolated in the sector, not learn from others, not get essential information, face similar hostile competition in return and so on.
What would happen if we would turn this example around? We would not see competition as a threat but instead as an opportunity, a healthy factor in the free market, a stimulus to produce better quality and provide better services, an opportunity to join hands and face common issues together. Now we would do things differently as well. We would not deal with competition as a threat but as a welcome development. We would try to always be a step ahead, assuring our place in the market. We would make sure our quality stands out and that our services our focused on the clients needs. We would be creative in our marketing strategies. We would welcome meeting people in the same industry and discuss how to tackle common problems, join hands and form an association for the better of the sector. And if you really have a passion for your business, you should not worry about competition at all. You will always try to find ways to improve and to develop new designs, new products, new ways of doing things. By the time the competition is trying to copy what you are successful in, you will already have moved on to a next level. Those who copy are always a step behind and usually don’t reach the same quality. Customers will keep coming back to you to see what new products or designs you have on offer. Admitted, it requires you to be on your toes and never sit back, but that is why you are in business in the first place.
Another reason why it is important to communicate with the competition and to create a dynamic network is to make sure that all in the same sector adhere to certain quality standards. Because if there are some that produce similar items that don’t work or break down easily or are even dangerous, then that is harmful for the entire sector. So, get together and be a leader in your sector is my advice.
I would like to leave you this week with the following assignment. Choose an issue in your business that you know needs some improvement. Then, try to work out how you see it, how you are dealing with it and what the results have been so far. Having worked this out, now try to turn things around. Try and see the issue from a different perspective and think of ways to deal with the issue from this new perspective, how you could do things differently from now on. And finally try and imagine the results you would get, when you would do things differently.
My suggestion: don’t stick to the ways you have always seen and done things. Open your world and your horizon. See things differently. You may get better results indeed.
Ton Haverkort
ton.haverkort@gmail.com
HOT MUSIC TABLE – MAY 2022
Tafoukt Theater on theatrical and artistic tour in Europe and Africa
With the support of the Ministry of Foreign Affairs, African Cooperation and Moroccans Residing Abroad – Department of Moroccans Residing Abroad, Tafoukt Creation Space will tour Spain, France, Italy and other countries Europeans during the month of June 2022 and in Senegal thereafter.
The Moroccan community will have an appointment with Amazigh theatrical performances (Aferziz), that is to say (Bitter Melon), produced as part of the support for the localization of theatrical troupes by the Moroccan Ministry of Culture. And in partnership with the Royal Institute of Amazigh Culture. At the same time, the Tafoukt Theater will present shows to the children of Moroccans around the world through the musical piece Argana operetta, followed by meetings with the children, in addition to presenting a variety of concerts, and the Tafoukt Creation space as part of social works on a special theatrical and musical program for the benefit of Moroccan prisoners in a penitentiary center, Ponent Lleida, Catalonia, Spain.
Thus, the public will have an appointment with the artists, performances and concerts of the Tafoukt Theater in Spain on June 03, 2022 at the Auditorium Tivoli in El Vendrell, on June 04, 2022 at the Civic Center of Torreforta in Tarragona, on June 05, 2022 at the Civic Center de Balafia in Lleida, and on June 07, 2022 at the Salle Théâtral de la prison de Ponent in Lleida, then in France on Saturday June 11 and Sunday June 12, 2022 in Paris, Saturday June 18, 2022 in Strasbourg, Sunday June 19, 2022 in Nancy , then in Italy on Friday June 24, 2022 in Verona, Saturday June 25, 2022 in Padua and Sunday June 26, 2022 in Bologna, The program will also include other offers in Luxembourg, Belgium, Germany and Switzerland, ongoing programming with a group of partners.
Digital technologies qualify green development!
By Chen Mingliang
Technological advancements have greatly been contributing to the betterment of human life. We can witness how building a carbon free economy, using advanced technologies, developing digital talent, and driving social sustainability are improving the quality of life. High-tech companies like Huawei are leading the charge to accelerate the journey toward digitalization, intelligent transformation, and low carbon emissions by increasing investment in talent, scientific research, and innovation to reshape its foundational technologies.
The journey of digitalization, intelligent transformation, and low carbon emissions enables the digital economy. A digital economy is, first and foremost, a green economy. Digital technologies qualify green development and play an indispensable role in addressing environmental challenges. Huawei focuses on leveraging its ICT strengths to enable the digital transformation of all industries and ultimately brings digital to every person, home, and organization for a fully connected, intelligent world.
A foundation for a digital economy is well-developed ICT technologies. ICT technologies directly create value and drive immense indirect value by transforming other industries. ICT technologies can help improve organizational and social productivity, leading to even greater social benefits as they see wider adoption in the industrial, agricultural, financial, and transportation sectors, among others. Through our ICT technologies, we are committed to minimizing our environmental impact in manufacturing, operations, and over the entire lifecycles of our products and services. Innovative products and solutions help industries reduce their energy consumption and emissions and contribute to the circular economy. We are exploring applications of 5G tailored for over 20 industries and creating a safe working environment for mines, steel mills, machine industries, precision manufacturing, and others.
When ICT technologies expand and the digital economy grows, cyber security related issues will be questioned. Cyber security and privacy protection are a top priority at our company, and we continue to invest and remain transparent in both areas. We have launched the HiSec 3.0 solution, which supports intelligent analysis, dynamic detection, all-round defense, and intrinsic trustworthiness. With this solution, we provide customers with accurate, fast, and stable security defenses and help them build a resilient security network.
Digital skills and literacy are essential to the development and sustainability of the digital economy and also for a better understanding and utilization of ICT technology. To assure the viability of digitalization, Huawei is cultivating the talent ecosystem by designing various corporate social responsibility activities.
Since 2008, Huawei has launched or sponsored multiple talent development programs and competitions at the global, regional, and country levels, including scholarship programs, Seeds for the Future, Huawei ICT Academy, Huawei Developers Training, Huawei Cloud Developer Institute, Women in Tech, and Technology for Education (e.g., DigiSchool, DigiTruck, and SmartBus). We have already invested more than US $150 million in these programs as part of our commitment to local ICT talent development, and 1.54 million people from over 150 countries have benefited from them.
Huawei in Ethiopia. “In Ethiopia for Ethiopia”
Thanks to the Ethiopian people’s support, Huawei has been rooted in Ethiopia for more than 22 years. These years, more than 3700 jobs are offered, and 70% of them are local employees, and served more than 64 million people to be connected. We have been working in the Ethiopian telecom market for the past 10 years along with our partners. On May 9th,2022, 5G was successfully launched by Ethio Telecom and Huawei is honored to be the strategic partner to provide the state-of-the-art 5G solution to all Ethiopian people.
And we work tirelessly to create more employment and boost the economies of countries and regions by hiring locally, investing locally, procuring locally, and establishing research facilities locally.
Huawei’s business in Ethiopia is built on the principle of “In Ethiopia for Ethiopia.” Our company was recognized as a Top Employer 2022 in Ethiopia and Northern Africa by the Top Employers Institute in January. In addition, the Ministry of Revenue awarded the gold taxpayers’ medal in 2020 and 2021. We are grateful for the support of people from all walks of life.
Rather than focusing on business, we are also committed to participating in a variety of corporate social responsibility (CSR) activities, such as the well-known seeds for the future program, which has been running since 2017, and the UNESCO-Huawei open school projects, which were launched last year. We are also working to develop ICT talent in Ethiopia. We launched a talent development program through our Huawei talent online program; an ICT training center was established at Addis Ababa University, in which we invested more than US $2 million, with a capacity to train 2,000 students over three years. In addition, we established 42 Huawei ICT Academies in 42 private and public universities. Every year, a handshaking forum is held with the goal of promoting jobs to graduate students and others. And we have a long-standing commitment to train and certify new graduates and equip them with the latest trends in the industry like Datacom, Artificial Intelligence, Storage, LTE, Bigdata, Wireless LAN and others.
We will contribute more to this inspiring and thriving country in the future.
Chen Mingliang is CEO of Huawei Technologies Ethiopia P.L.C.
