Managing Globalization


Notes based on Managing Globalization in the age of Interdependence,
published 1995 by Pfeiffer & Company, San Diego, CA.

Introductory Quotation:

"In Managing Globalization in the Age of Interdependence, best-selling
author George C. Lodge, Jaime and Josefina Chua Tiampo Professor of Business
Administration at the Harvard Business School, tackles an issue of worldwide
proportions - the tensions created by globalization, the growing interdependence
of the earth\'s 5.5 billion people.
Globalization is the process forced by global flows of people,
information, trade, and capital. It is accelerated by technology, potentially
harmful to the environment - and at the present, driven by only a few hundred
multinational corporations. Lodge describes and analyzes the process on a truly
global level, looking at the relationships among the world\'s economic,
technological, political, and cultural aspects to provide more realistic
insights than purely management-based books on the subject.
Business in tandem with government must develop safe new institutions to
manage global tensions. And communitarianism, or collective leadership among the
world\'s peoples, he says, is the challenge of globalization."


Introduction:

"Globalization is a fact and a process. The fact is that the world\'s
people and nations are more interdependent than ever before and becoming more so.
The measures of interdependence are global flows of such things as trade,
investment, and capital, and the related degradation of the ecosystem on which
all life depends, a degradation that constantly reminds us that we are all
passengers on a spaceship, or, more ominously, a lifeboat" (p. XI)
"Globalization is a promise of efficiency in spreading the good things
of life to those who lack them. It is also a menace to those who are left behind,
excluded from its benefits. It means convergence and integration; it also means
conflict and disintegration. It is upsetting old ways, and challenging cultures,
religions, and systems of belief." (p. XI)
"In spite of many variations and differences, an ideological framework
can be composed so that globalization may serve the cause of humanity." (p. XV)


Structure:

The book is written in 5 chapters: The Phenomenon of Globalization, The
Collapse of the Old Paradigm, Global Leadership, The Basis for Global Consensus
and World Ideology: Variations on a Communitarian Theme.

Chapter 1: The Phenomenon of Globalization

"Globalization is the process whereby the world\'s people are becoming
increasingly interconnected in all facets of their lives - cultural, economic,
political, technological, and environmental." (p. 1)
"Japan typifies the Asian model in many respects. Its economy is
externally focuses; aims at gaining market share in the world economy through
exports. Most importantly, it is oriented toward strengthening its producers
rather than encouraging consumers." (p.10)
"Convergence is both forced and facilitated by global information
systems, televisions, faxes, fiber optics and the like." (p. 11)
"Americans have been ideologically averse to government involvement in
their lives, especially in the world of commerce, the domain of \'private
enterprise.\' The theory was that firms competed against other firms in open
markets … The Japanese and other cultures have shown that this view of the world
was not only unrealistic, but also a handicap. There, consortias of firms
cooperating with one another and with the government have emerged to become
fierce competitors" (p. 13)
"Globalization has clearly enriched the rich in the industrial worlds of
Asia, Europe and North America, but at the same time it has widened the gap
between rich and poor both within and among countries." (p. 23)

Chapter 2: The Collapse of the Old Paradigm

"The management of globalization and its tensions requires a global
consensus about purposes and direction." (p. 31.)
"The United States emerged from World War 2 all powerful and committed
to the establishment of a New World order. It took its economic supremacy for
granted…" (p. 38)
"It was not until 1993 - and then only at the urging of the Japanese
government - that World Bank economists reluctantly acknowledged that the East
Asian countries - Korea, Japan, Taiwan, Malaysia, Thailand and China - were
following a development strategy quite different from the one advocated by the
bank, one characterized by extensive government intervention…" (p. 44)
"Today the United States lacks an enemy, and there are four instead of
two centers of World Power: Japan, China, Europe and the United States. Asian
centers are growing fast; western ones are floundering." (p. 51)
"If the United States is to continue to organize collective leadership,
as many seem to want, it must strengthen itself and replace the old Cold War
paradigm with a new one." (p. 51)

Chapter 3: Global Leadership

"In spite of a substantially weaker economy and a more ambiguous moral
purpose, if any country is to lead the world into the twenty-first century, it
seems that it must be the United