Book Description
Within 20 years -- possibly far sooner -- China will have the world's largest economy. That will powerfully impact you: your job, your company, your economic future, and your country. In The Chinese Century, Oded Shenkar shows how China is restoring its imperial glory by infusing modern technology and market economics into a non-democratic system controlled by the Communist party and bureaucracy.
Shenkar shows why China's accelerating growth differs radically from predecessors such as Japan, India, and Mexico -- and how it will lead to a radical restructuring of the global business system. Discover why the U.S. is most vulnerable to China's ascent... how China's disregard for intellectual property creates sustainable competitive advantage... and how China's growth impacts every global business and consumer.
Above all, Shenkar shows what you must do to survive and prosper in "the Chinese Century."
· Cheap labor + millions of high-skilled professionals
· How China will sustain dominance in low-tech industries as it enters high-tech realms
· Building tomorrow's Toyotas and Sonys... faster and cheaper
· Chinese multinationals: learning from joint ventures, preparing to lead
· Leveraging Hong Kong, Taiwan, Singapore, and the "Chinese diaspora"
· Bringing together the world's most powerful pool of human resources
· $2 Rolexes, and beyond
· Piracy, counterfeiting, bootlegging, and stolen intellectual property
· From economics to geopolitics: counterbalancing America
· Previewing China's increasingly assertive foreign policy
Customer Reviews:
Disappointing overall.......2007-07-05
It is rarely that I have written less than a glowing review of any book dealing with the topics of globalization, outsourcing and the ilk. As someone who is intrigued by these issues, I have found all of my reads thus far to be riveting and educative. I wish I could I say the same about Oded Shenkar's book "The Chinese Century." I am afraid that was not the case.
The book suffers from some clear flaws. First and foremost is the fact that it focuses solely on one facet of the Chinese growth story, viz. exports and imports, and that too from a largely US-centric world view. For someone who is interested in understanding the different facets of the Chinese story and its geopolitical ramifications (as can be seen today in China's relations with Sudan, Iran, and Venezuela among others), this book clearly falls short.
Second, the tone adopted by the author is one of unbridled optimism regarding China's growth prospects. I, for one, do not necessarily share the same world view. No nation has been able to eat its cake and have it too. If you want to be a modern nation enjoying all the economic benefits that come out of a free market system, you also need to be a democracy that is built on the separation of powers between the executive and the judiciary, a free media and a vibrant middle class that is not afraid to speak up its mind. I am not sure China will be able to escape that painful transition at some point of time. The question is not "If", it is a question of "When". I would have therefore liked to see the author explain how China can make the transition from a communist nation ruled by a narrow clique to a modern nation without a democratic change thrown somewhere in between. I am afraid that he did not.
Finally to round off, I would also like to point out that the book suffers from typographical errors that are clearly unacceptable in a book published from Wharton School Publishing. Two examples, both from the same page (pg. 85 of the paper back edition) for the skeptics who need proof. "Finally, there is the potential liability and litigation cost when a safety-related product such as a break pad fails, and the legitimate manufacturer is implicated." Or, "The direct losses of U.S. IPR owners in copyrighted industries (such as movies) alone in China have been estimated at more than $1.8 annually." The proof reader probably needs to be told that it is not "break pads" but "brake pads" and that the losses to IPR owners are closer to $1.8 billion than $1.8!
Overall I am happy that the book finished at 187 pages. It's a disappointment though that not much of substance was said in those 187 pages.
Important Information!.......2006-12-31
"The Chinese Century" reminds us that our trade deficit with China is rapidly growing (up 20%/year from '01-'03), and also tells us that its composition is changing - the four highest categories in '03 were all technologically related (misc. manufactured articles, office machines and ADP equipment, telecommunications and sound-recording equipment, and electrical machinery). (Apparel/clothing and footwear were in 5th and 6th place, down from 2nd and 3rd in '99.)
Shenkar also imforms us that the Chinese are working to continue "moving up the food chain" via increasing the rate that overseas Chinese students return to China, increasing R&D spending within its organizations, and forcing overseas partners to provide valuable trade secrets. The percentage of American white-collar associated jobs lost in manufacturing has gone from 30% ('79-'89) to 35% ('90-'99), and is likely to increase further, shaking belief in the theorized overall benefit of job migration to more complex work, and the belief that education is good insurance against unemployment. (The unemployment rate for electrical engineers now is greater than the unemployment rate in general.)
China is often pilloried for violating intellectual property rights; Americans, however, should remember that the U.S. was also a major violator in the 19th century, and remained so until it emerged as a major producer of copyrighted/patented knowledge. Presumably China will follow a similar path. China is also attacked for not adjusting its exchange rate vs. the dollar - however, since its productivity-adjusted costs are about 12% that in the U.S., currency adjustment would not begin to solve the U.S.-China trade deficit. In addition, Americans need to remember that China needs to create 15 million new jobs/year to handle population growth, plus additional jobs to cover those lost due to closing ineffective government enterprises and rural residents wanting to move to its cities.
The book's avowed purpose is not on how to stop the tide of Chinese imports, but how to remain competitive. Unfortunately, its recommendations (more education) fall far short of what would be required, and are contradicted by its own material.
Yes, China is rising, BUT what must we do to survive and prosper in "the Chinese Century"?.......2006-11-05
It is obvious that China is rising and is impacting the rest of the world in an increasingly big way.
The value of The Chinese Century by Professor Oded Shenkar lies in its concise and vivid summary of China's rise and impact. As such, the author has achieved one of his goals he set out to achieve by writing this book.
However, the author clearly has not delivered what he promises to deliver in the Synopsis: "Above all, Shenkar shows what you must do to survive and prosper in "the Chinese Century"."
Indeed, as a business person, you might get even more dazzled after reading this book simply because this book gives you an academic snapshot of the China business scene (although with some vivid examples) rather than insights into and wisdom about what to do in order to succeed.
To know the latter, you have to read Dr Wei Wang's The China Executive: Marrying Western and Chinese Strengths to Generate Profitability from Your Investment in China.
Highly practical, The China Executive brings to light the highest essence of any business in the age of globalisation. It is also characterised by integration: integration of theory and practice, integration of analysis and intuition - integration, in other words, of all major concepts and ideas related to business. These include history, soceity, politics, economics and culture; management and leadership; operation, personnel, finance and marketing; organisation, market, industry and strategy; and human being, philosophy and humour.
In short, if you, as a business person, want to know what to do (as well as how to think) in "the Chinese Century", buy and read The China Executive.
Current and Comprehensive.......2006-10-15
Author Oded Shenkar provides up-to-date information, specific
details, and perspectives about the current and future ascension of
China. It is and will affect us locally and globally. This book
focuses on generalities and will be helpful to those who plan on
doing business in China or want to learn more about the "macro"
affects of the PRC's growing influence. Perhaps too obvious to state
(again) is China's coming economic, political, and military role in
our world. By now, this concept is cliche. Yet the question is
relevant, and now, moreso than ever before. The "Chinese Century"
largely focuses on the next 100 years. Surpassing the U.S.
economically, is predicted to happen within the next twenty years.
Many American companies have been complacent and industry leaders
were caught of guard by China's massive growth. Lackadaisical?
fixed, mind-sets? Competitors in neighboring countries (e.g. Korea)
started losing out to China in the 1990s.
Some of the common questions and discussions that Shenkar addresses
are: "How will China's economic ascension will affect its region and
the entire world?" "How will it impact and transform the U.S.
economy?" "How will it change you?" The author notes the transition
of the American economy to a service-sector economy.
Domestically, the more challenging aspects for the CPC and Chinese
society are how to lessen and/or resolve the Income Gap between
Eastern cities and rural areas (and within these cities themselves).
Those in the eastern China are living in a radically different world
than those inland. Both of these groups are aware of the differences
between them as status symbols, faster-paced life, and incessant
conspicuous consumption propel attitudes, the economy, and egos.
There is quantifiable alienation between the "have-nots," who
outnumber the "haves" by hundreds of millions. Confrontations over
water and land-use, and eminent domain, are frequently reported.
Stealing Intellectual Property:
The Chinese can produce - but they cannot create. "Creativity" and
"ingenuity" are the new buzzwords of the government. Creativity may
or may not happen. If it is ever achieved to some degree, it will
take time (generations) and will require changes to the cultural
mindset and education system.
Implementing Foreign Policy Interests:
The U.S. acts upon its own self-centered interests like many dominant
nation-states. America's economic might promotes its diplomatic and
trade interests in the international world. Often these strengths
reinforce and complement one another when pressuring countries to "go
along" with the current administration in Washington, regardless of
who is in power.
The Chinese may do this too, if they choose to "go international."
I believe Chinese foreign policy will become more direct and
unilateral.
Economic might brings diplomatic, political, and potential military
might (if China continues its high military spending). Westerners
should realize that there's no motivation nor reason for the Chinese
people to want the values and beliefs of liberal democracies of the
West. To think they would, is culturally-centric arrogance.
Corruption:
Corruption exists in many countries of the world. In China it's an
epidemic from the bottom ranks to the highest levels of society. It
has to be dealt with. Even reducing it may take more than one or two
generations. Morality is also an issue. Hu Jintao recently outlined
the "8 honors and 8 shames" in 2004. Meant for the Chinese people,
but specifically geared towards party members. It's a general and
idealistic message. Will it be followed? This reinforces the fact
that rampant corruption, greed, and selfishness is a primary obstacle
to economic and political stability. Throughout East Asia
competition outweighs cooperation in business and social
interactions.
What will China be like when it has the economic power to promote its
interests?
The Chinese understand and realize they are "producers." They are
not "creators." They're not "individuals." However - if - they ever
become creative, adaptable, and individualistic, beware.
Incidentally, anyone who thinks that a market-based economy promotes
or is conducive to forms of "democratic representation" is completely
misinformed. The pairing of these two is the exception, not the
rule.
The U.S. derides Cuba for it authoritarianism and refuses to do
business with Cuba, while at the same time it's in bed with China,
which is far more brutal, oppressive, and venal.
A good book. Recommended.
Insightful and well-written .......2006-05-31
China is a quickly rising economy on the world stage and many liken it to another Japan on the horizon. However, there are as many differences as there are similarities between the rise of the Chinese economy and the rise of Japan, South Korea, Taiwan, or Hong Kong. These differences are critical if you are going to understand the impact this will have on the American and world economy. What is the legacy of China's history and how is that impacting their current economy? How is China dealing with (or not dealing with) the problem of piracy and bootlegging of legitimate products on the world market and how will that affect their position on the world market stage? The author deftly covers opportunities and challenges in the China market and in United States Chinese market. The Chinese Century is highly recommended for anyone who wishes to understand the Chinese market and the implications of that market for the United States.
Average customer rating:
- Occasionally insightful, but generally uninspired
- Important book
- What we should have learned in school about the world...
- Very informative reading
- Debunking the global warming myth!
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Why Geography Matters: Three Challenges Facing America: Climate Change, the Rise of China, and Global Terrorism
Harm de Blij
Manufacturer: Oxford University Press, USA
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ASIN: 0195315820 |
Book Description
Over the next half century, the human population, divided by culture and economics and armed with weapons of mass destruction, will expand to nearly 9 billion people. Abrupt climate change may throw the global system into chaos; China will emerge as a superpower; and Islamic terrorism and insurgency will threaten vital American interests. How can we understand these and other global challenges? Harm de Blij has a simple answer: by improving our understanding of the world's geography. In Why Geography Matters, de Blij demonstrates how geography's perspectives yield unique and penetrating insights into the interconnections that mark our shrinking world. Preparing for climate change, averting a cold war with China, defeating terrorism: all of this requires geographic knowledge. De Blij also makes an urgent call to restore geography to America's educational curriculum. He shows how and why the U.S. has become the world's most geographically illiterate society of consequence, and demonstrates the great risk this poses to America's national security. Peppering his writing with anecdotes from his own professional travels, de Blij provides an original treatise that is as engaging as it is eye opening. Casual or professional readers in areas such as education, politics, or national security will find themselves with a stimulating new perspective on geography as it continues to affect our world.
Customer Reviews:
Occasionally insightful, but generally uninspired.......2007-08-29
I would describe this book as the rambling--but occasionally insightful--musings of a thoughtful scholar. Unfortunately, many, if not most, of Blij's arguments are not made from a geographic perspective. For instance, his chapter on the European Union rambles on for page after page about the history of the EU from the European Coal and Steel Community, to the European Economic Community, to the European Community, and, finally, to the European Union. That's not to say that's not and interesting and important history lesson for people who are unfamiliar with EU history, but its not geographic! I was hoping for a book of theories explaining human events using reasoning built on spatial orientations or location. Why Geography Matters had some of that, but Blij could have, in my view, omitted much of the voluminous background information. Doing some would have made his book more concise and allowing his genuine insights to be featured more prominently.
And for what its worth, the book could have used a better editor. For instance, on p.160 it refers to "South Ossetia" as a Russian Republic instead of North Ossetia. I noticed a couple errors like this.
Perhaps, I would be more positive about this book if its last chapter hadn't been the low point. The chapter on Africa had absolutely nothing original to say (AIDS is bad, we need to do more to stop it; colonization and slavery were bad too; Africa has been plagued by bad leadership; etc.).
Important book.......2007-08-28
This is an exceptional and needed introduction to Geography and how it relates to world problems.
What we should have learned in school about the world..........2007-05-27
This is essential reading for anyone who should have a sound foundation of knowledge to back up one's social commentary, but doesn't. Geography can be understood and used to understand our world with great clarity. Everyone who watched Al Gore's movie should read this book if only to know that Harm de Blij has been explaining geographic issues for decades better than nearly anyone.
The US Department of Education needs to buy and issue a copy of this book to every teacher in America.
Very informative reading.......2007-05-13
This is definitely a quality work in the field of Geography with an emphasis on Politics i.e. GeoPolitics. However, it is important to point out a couple of incorrect facts I found while reading this work.
1. On page 190 we have the statement, "On an aircraft carrier off the coast of California, President Bush declared "mission accomplished.", regarding the war in Iraq. If you read the speech that President Bush gave, you will find that he never uttered the words "mission accomplished." The author just regurgitated this line from the biased print media i.e. The NYTimes, Time, Newsweek, etc... Intuitively, if you think about it, George Bush, assigns the mission to the military and after assigning the mission to the military he is not going to turn around and say good "mission accomplished. That is what the military's response, will be, to the President, after they have completed the mission. This is reflected by the fact that the military hung a banner up on the aircraft carrier that said "Mission Accomplished."
2. On pages 193-194 The author states. "The American invasion severly damaged the city, which was for months afterward, and remains as of this writing, without a reliable water supply, power, medical facilities, or schools." It is very true that much of the infrastructure in Iraq is severly damaged, but the author has tried to blame this on American firepower and it is simply not true. The precision guided weapons our U.S. forces utilized were excellent at avoiding collateral damage. The truth is more damning for the Saddam regime. THE INFRASTUCTURE DAMAGE WAS CAUSED BY 30 PLUS YEARS OF NEGLECT ON THE PART OF THE BAATH PARTY AND NOT AMERICAN MILITARY MIGHT. Also, the military planners who provided for getting the infrastructure back online, after the war, grossly underestimated the level of the existing infrastructure of Iraq, before the U.S. military even set foot inside the country.
Overall I recommend this work, but it cannot be given five stars due to these errors.
Debunking the global warming myth!.......2007-03-08
This is an excellent book based on scientific fact debunking the "global warming" myth.
I highly recommend this book.
Product Description
China is now the world's fourth largest economy and growing very fast. India's economic salience is also on the rise. Together these two countries will profoundly influence the pace and nature of global economic change. Drawing upon the latest research, this volume analyzes the influences on the rapid future development of these two countries and examines how their growth is likely to impinge upon other countries. It considers international trade, industrialization, foreign investment and capital flows, and the implications of their broadening environmental footprints. It also discusses how the two countries have tackled poverty, inequality and governance issues and whether progress in these areas will be a key to rapid and stable growth.
Customer Reviews:
From the perspective of one of the Giants.............2007-05-20
This is a report by the World bank (and a think tank) to study the impact of the growth of China and India on other countries in the World.
Provides a good insight into the China and India story:
(a) Sorry, China and India are not Giants. Though they house 38% of world population they account for 6.4% of World GDP (yes, purchasing power parity is not useful in evaluating your impact on other countries since size of trade and exchange rates are more important than price levels).
(b) Sorry, this will not change even after sustained growth in the next decade. India would grow from being 1.7% of World economy to 2.4% in 2020 (okay, 3.2% if you are optimistic). China would grow from 4.7% now to 7.9%.
(c) Sorry, India is not a dominant player in providing services to the world. India's export of services is just 1.8% of global trade in services.
(d) Sorry, IT just accounts for 6% of India's service revenue. Nope, it is a myth to believe growth in IT sector would transform Indian economy. It did not. It may not.
(e) Nope, energy economists don't need to worry. India accounts for just 3.4% of global oil usage. In the next ten years any hike in oil price is more likely to come from supply side hitches than from increased demand for oil in India or China.
(f) Nope, US current account deficit is not due to China's import barriers or an undervalued currency. US is just not saving enough.
(g) Nope, China and India are not competing head on for their products. The top 25 exports of China and India have only one product in common! (Yes sire, refined petroleum).
(h) Nope, Dhirubhai Ambani alone is not enough to reform our textiles industry. Our textile exports is $ 10 billion a year. Wal Mart alone buys $ 18 billion textiles from China. Did you know one major impediment is the delivery time from India to US? Yes, 24 days!
(In passing, the economists say that the movie industry in India is not known to produce world class movies; though one did come recently: "Bend it like Beckham"! Apologies Mani Ratnam, economists do not know as much about movies as about GDP!)
Have we handled our economy well? We made some mistakes in the way we managed our economy.
(a) We started with one major disadvantage. Inequality.
(b) Economic growth is rarely balanced. It often results in enhancing inequality.
(c) There are good inequalities (differences in income and wealth because some earned more than others) and bad inequalities (lack of access to education or credit to pursue an economic activity). Good inequalities are necessary to maintain incentive for growth. Bad inequalities prevent people from escaping poverty.
(d) We got our philosophies mixed up. Instead of attempting to eliminate bad inequalities by providing access to opportunities for the poor, we went after good inequalities by suppressing incentive for economic growth.
(e) We restrained firms from freely pursuing economic activity (by reserving several activities for the State or for small enterprises and by introducing a license raj that required government permission to start or expand a business).
(f) We prevented efficient allocation of resources (by protective trade policy that perpetuated advantage to existing players, by a directional tax policy, by state control of all funding and by restrictive labor laws).
(g) On the other hand, we did not provide access to education or market driven micro finance delivery to the poor to acquire human capital to escape poverty.
(h) End result: We did not grow enough; but the inequality went up. The poor did not benefit from economic growth at all.
(i) Since our political system depended on popular support, political administrations "blamed" a variety of targets (businessmen, upper caste, land holders, foreign hands) for the failure to eradicate poverty and used the resultant "popular anger" to consolidate their power base.
(j) Thank God we had a crisis in 1991. Debt service rose to 21% of receipts. Interest burden rose to 20% of expenditure. We ran out of spendable currency. No one was willing to lend.
(k) Prime Minister Narasimha Rao went beyond curing the immediate disease. Rao government cut back industries reserved for State; removed licensing requirements; devalued rupee; allowed current account convertibility; removed quotas and reduced tariffs; and lifted restrictions on foreign investment.
(l) Fortunately the reform process, despite vigorous debate, has developed sufficient consensus to stay on track in succeeding administrations.
(m) We have some more miles to go:
(1) We need to provide access to education and credit to facilitate people escape poverty. Spending money on rural infrastructure alone will not kill "bad inequality". If this is not done, India would continue to be a miracle of "jobless growth" and political consensus for reform would evaporate diluting growth prospects. Equality is not just a nice thing to do; it is essential for going after growth.
(2) We need to get "government" out of "business" even more. Subsidies will have to reduce. Buredensome state enterprises cannot be funded by public expenditure. Bad loans in banks will have to reduce. Regulatory rigidity in labor market will have to reduce.
(3) We need to step up "governance". We need to step up government effectiveness and bureaucracy quality.
(4) We need to manage our "balance sheet" well. We cannot be an economy whose liabilities are in "high cost equity" (FDI and portfolio investments) and whose assets are in "low yield reserves". This asymmetry is expensive.
China has one advantage over us. An early start. China has built a strong manufacturing base with an eye on the global market (40% of its GDP is from exports vs 15% for us). However, in the end, China has one disadvantage. In China the State is determining who will pursue economic activity and who will not by its "hukou" system (license to live in special zones) and "TVE system" (town and village enterprise owned by local governments with limited authority to retain and reinvest super profits). This was useful in creating "private firms" in a socialist economy.
However, this past success is going to be a millstone for China in the future. A very large population got left out in the growth process (though inequality is not as sharp as in India because the inequality in landholding prevented growth in agriculture from reducing inequality in India). Building political consensus to the reform process is going to be even toughter in China when the ability of the government to maintain control over the population reduces. This may hamper growth.
India has a higher chance of sustaining and growing political consensus for reforms because it has developed mechanisms to let differing voices debate vigorously before building consensus. The pace is slow but the traction is firm.
It is nice to think that Left leaders Prakash Karat and Sitaram Yechury, with their wisdom and ability to disagree, may help India build the consensus on a firmer track and perform better than China!
Book Description
Andre Gunder Frank asks us to ReOrient our views away from Eurocentrism--to see the rise of the West as a mere blip in what was, and is again becoming, an Asia-centered world. In a bold challenge to received historiography and social theory he turns on its head the world according to Marx, Weber, and other theorists, including Polanyi, Rostow, Braudel, and Wallerstein. Frank explains the Rise of the West in world economic and demographic terms that relate it in a single historical sweep to the decline of the East around 1800. European states, he says, used the silver extracted from the American colonies to buy entry into an expanding Asian market that already flourished in the global economy. Resorting to import substitution and export promotion in the world market, they became Newly Industrializing Economies and tipped the global economic balance to the West. That is precisely what East Asia is doing today, Frank points out, to recover its traditional dominance. As a result, the "center" of the world economy is once again moving to the "Middle Kingdom" of China. Anyone interested in Asia, in world systems and world economic and social history, in international relations, and in comparative area studies, will have to take into account Frank's exciting reassessment of our global economic past and future.
Customer Reviews:
Fascinating, albeit incomplete.......2005-03-31
ReOrient is one the most important works of the last decade in that it not only challenges a dominant perspective in Western social science but it also refutes author's and his colleagues' earlier arguments. Andre Gunder Frank lays down two central arguments in ReOrient which complement one another: 1) the "rise of the West" did not happen due to any internal factors but was predicated on American silver and Asian market; 2) Asia in general and China in particular was the center of global economy until the 19th century. Thus, Frank aims to destroy the bases of Eurocentrism in social sciences.
Frank argues that Europe was not an important figure in world economy until the 19th century. Asians were more productive and competitive than Europeans and Asia remained at the center of global economy until the industrial revolution. Throughout this period European nations constantly had trade deficits with Asian nations, particularly with China and India. An indication of this European trade deficit was that gold and silver were never less than two-thirds of total European exports (p. 74). New World silver was for this reason very important for the Europeans; it helped them cover their trade deficits with the Asians and become a more active player in Asian economy. Thus, Frank contends that American silver bought Europeans a ticket in the "Asian productive and commercial train, which was steaming ahead on an already well-established track," (p. 115).
One of Frank's original arguments regarding the superiority of the Chinese economy vis-à-vis the European economy in the 15th to 19th century is the different effects on these economies of the influx of New World silver. To make his case, Frank utilizes Fisher's famous quantity-price equation which maintains that an increase in the amount of money in an economy will result in increases in the prices of goods unless it is matched by an increase in quantity of goods (p. 154). Frank then demonstrates that whereas American silver caused substantial increases in the price of goods in Europe, it did not have any remarkable inflationary effect on the Chinese economy. For this to happen, Chinese production must have increased parallel to the increase in the amount of silver. This means that the massive arrival of new American money stimulated production more in Asia than in Europe (pp. 157-8). According to Frank, this situation attests to higher productivity of Chinese economy compared to European economy. Thus, Frank refutes the orthodox Eurocentric "hoarding" argument on China which assumed that the Chinese used American/European silver by and large in non-economic and unproductive ways, primarily as jewelry: "Asians earned this money first because they were more industrious and more productive to begin with; the additional money then generated still more Asian demand and production," (p. 177).
Another historical fact Frank uses to demonstrate the superiority of Asian economies over European economies is the per capita production in these two economies in the 16th to 19th century. Using the estimates of such prominent historians as Braudel and Bairoch, Frank shows that in 1750 Asians accounted for 66 percent of world population but produced 80 percent of total world output; by contrast, Europe, which constituted 20 percent of world population then, produced only part of the remaining 20 percent. This again means that on average "Asians must have been significantly more productive than Europeans in 1750" (p. 173). As in the fist case, Franks' reasoning is simple, but smart and convincing.
After all these economic comparisons, Frank concludes that the Europeans did not "create" the world economic system but "purchased" an existing one with American silver. He therefore asserts that "the rise of the West" must be derived from the prior and contemporaneous development of "The rest," (p. 224).
Prospects:
The principal importance of ReOrient lies in its demolishing the bases of Eurocentrism in theories that explain "the rise of West" with factors that are internal to Europe. These theories attributed European economic development to Europe's exceptionality in such factors as rationality, religion, science, and geographic location. Yet Frank demonstrates that Europe did not have any inherent superiority in the 15th through 18th century vis-à-vis Asia and Asian nations were at least as much rational, industrial, capitalist, and dynamic as the European ones. Thus, there was no European "head start" or "exceptionality" that would necessitate the creation of a European hegemony over others. It was American silver and Asian market that allowed the "rise of the West". As such, Frank's arguments change the central question to be dealt with regarding the rise of the West. The critical question is no more why it was the West that rose in the 15th century -because it did not-, but why and how the West rose in the late 18th and early 19th century. As Frank argues, the new question is not about a mere difference in time but begs a qualitatively different answer.
What makes ReOrient particularly important is that it not only destroys the myth of "European exceptionalism" but it also uncovers and refutes the Eurocentrism in the critics of these theories as well. Frank argues that such important critics of capitalist world economy as Marx, Braudel, and Wallerstein could not escape the Eurocentrism embedded in the theories they criticized either. While Marx viewed Asian nations as stagnant, traditional and inferior; Wallerstein assigned an insignificant role to Asia and the Mediterranean in the making of his modern world-system (p. 45). Frank views these arguments as mere assumptions and refutes them in two ways: first, he tries to demonstrate that Europe did not have any inherent superiority in the 15th through 18th century vis-à-vis Asia; second, Frank argues that Europe owe its future "rise" to its borrowing from and integration to a well-established Asian economy. Thus, Frank demonstrates that Europe did not create a world system and incorporated more and more of the rest of the world as Wallerstein argued, but rather integrated itself to the Asian market and "climbed up on the back of Asia," (pp. 4, 30)
Problems:
Unfortunately, Frank's novel theorizing turns out to be at the expense of some conceptual clarity. Frank's approach to world economy and modes of production renders such important concepts like world system and capitalism ambiguous. Frank argues that there has always been "one world economy/system" and it had its "own structure and dynamic," (p. 139). In Frank's view, existence of any trade relations between regions of the world create a world system. Thus, Frank equates global trade with world system. However, until the 18th century trade was highly regionalized and most regions had miniscule contacts with others. Frank himself notes that Europeans' role in Asian trade before the second half of the 18th century was insignificant and Europe accounted for only one percent of Asian nations' international trade (pp. 178-85). Thus, if we define world-system as a global economic system in which most parts of the world are economically dependent on one another, I will have to side with Wallerstein who argued that such a system did not exist until the 19th century ("The Rise and Future Demise of the World Capitalist System", in The Essential Wallerstein, p. 74). Indeed, although unintentionally, Frank also provide support to this point when he notes that Europeans were the first to "operate in all markets simultaneously or systematically to integrate its activities between all of them," (p. 177). As such, there has been only one world-system so far and -unfortunately- it has been a European one.
A subsequent problem that results from Frank's bias towards holistic analysis is his search for single centers in world economy. Frank argues that the entire world economy was "Sinocentric" until the 19th century (p. 117). However, I have doubts regarding China's central role in economies of European and Middle Eastern countries in any period of history. Throughout the 16th and 17th centuries the Ottomans and Persians were more central to Middle Eastern economies than were the Chinese. Similarly, in the same period the British and the Dutch were more central to European economy than the Chinese. I therefore tend to agree with Pomeranz who later stated that the pre-1800 world was "a polycentric world with no dominant center," (The Great Divergence, p. 4).
Another shortcoming in Frank's book is that he cannot adequately account for the "rise of the West" in the late 18th and early 19th centuries. His argument is that Asian economies were altogether facing a Kondratieff B-cycle in the first half of the 18th century and this allowed Europe to finally outdo the Asians. He therefore asserts that "the fall of Asia" preceded European political and military intervention in Asian nations (pp. 266-8). The first problem one might have with this argument is that it is impressionistic and allows little room to human agency. A more fundamental problem that I have, however, is that Frank's account does not consider the possibility that the Asian economic decline in the first half of the 18th century could have been a temporary problem and Asian economies could have easily recovered if it were not for European military intervention. Indeed, Frank himself reports that average annual exports from Asia by both Dutch and British East India companies declined in the decades of 1730s and 1740s "but recovered in the 1750s," (p. 270). Frank also notes that throughout the 18th century the balance of trade between Britain and China was constantly in China's favor and the British could reverse this situation only through forced opium trade in the 19th century. Thus, contra Frank, I believe that Asian economic problems in the 18th century were not insurmountable and "the fall of Asia" was indeed a European creation. As such, we still do not have a satisfying answer as to why Europe outdid the Asians by 1800.
How Asia Once Won (And Could Again).......2002-01-23
Andre Gunder Frank wrote ReOrient to demonstrate that the present Western predominance in the world economy is fairly new. It began when Europe gained control of the New World's natural resources, particularly silver, and used it to "buy a ticket on the Asian train" (Gunder Frank's apt metaphor).
Gunder Frank also speculates that East Asia's present economic growth and potential will eventually help it regain economic hegemony in the not too distant future.
A New Frame in Which to View World History.......2001-05-18
I confess. I was Eurocentric. Despite a degree in International Economics from an east coast school known for its School of Foreign Service, I firmly believed Max Weber that the Protestant work-ethic was the source of western prosperity. I also believed in American exceptionalism. Frank's book cured me of both those false notions.
A couple points I'd like to add to Frank's thesis explained in other reviews.
1) I work for one of the major trans-Pacific ocean shipping companies. The company was founded in California in 1848 and sold to the Singapore government in 1997. (Shipping going East)
2) US-bound shipments are full of manufactured goods. Asia-bound ships are filled with wastepaper or are largely empty. The West continues to produce nothing that Asia really wants. Where in times past, most of the Asian-bound shipments from England and the Netherlands were boats filled with silver and gold, today we "ship silver" to Asia in the form of electronic fund transfers. Given the trade deficit the US alone has with China and the rest of Asia, it seems only a matter of time before the Chinese start buying Manhattan and US assets the way the Japanese did in the 1980s.
3) Frank's book adds an interesting background to the history of the Roman Empire. After subjugating Europe, Rome moved eastward under Constantine the Great. First, Constantinople provided a more defensible position for the New Rome (indeed where the western capital - Rome -- fell in the 5th century, the eastern capital - Constantinople -- continued until the 15th century, despite being "on the way" as it were for invading Huns and other invading armies). But perhaps more importantly, all the commercial action was centered in the East. Moving the capital eastward took it out of the backwater of Italy and moved it closer to the overland trade routes with the Asia).
4)That the East was far wealthier than the West can again be seen in microcosmic perspective during the 4th Crusade. Western soldiers had never imagined a city as wealthy as Constantinople. When they saw it they had to have it. The West, especially Venice, did to Constantinople in 1205 as the British did to Bengal in 1857 and the Americans have been doing to the Native Americans since they got here. They took by force, not by superior ethic, religion, tradition, or racial superiority.
The book itself, despite its "must read status" and historical importance, is very poorly written and highly repetitious. If you read the concluding few pages, you will have the main points of the argument. Read the rest of the book if you want the details. And Frank provides plenty of detail, footnotes, references, etc.
All in all, this book is important for understanding the world's past as well as the contours of the future. I wonder how long it will take for the pendulum to swing back to Asia. Chinese-US relations are getting interesting, aren't they?
A fundamental book for the 21st century.......2000-12-04
Since Kondratieff (1970s) discovered economy was affected by up and down cycles that could be traced back across centuries, historians studied the structure of economy at different stages of World history, the succession of hegemonic states in the West, why a certain state became the hegemon and why others failed, etc... Apparently innocent, those questions concerned preservation of US supremacy, how to maintain and prolonge it, who were the possible challengers and when and where could a clash emerge.
The revolution brought by Franck is to destroy Eurocentric views adopted since 1800 bit by bit to reveal how the economic system has been working since the last 2000 years and especially the last 500 years. What it shows is that the global economy was centered around China until 1800 AD, that the main economic players of those 2 millennia were China, India and Japan assisted by Russia, Persia and the Ottoman Empire. The West was only minor and it is only because we achieved the conquest of the Americas and the exploitation of its silver deposits that we obtained a ticket in the global economy and gradually rose to proeminence. Britain was global hegemon from 1800 until 1914, displaced by the United States from then until present. Some forecasts predict that Chinese economy could outpace the US between 2013 and 2049.
Author detailed and argumented study is confirmed by current reality. 4 of the 5 largest foreign currency deposits are already in East Asia: Japan, China, Taiwan, Hong Kong. While US current account balance is at -$393 billion and EU current account balance is at -$14 billion, Japan current account balance is at $128 billion, Russia is at $30 billion and China is at $17 billion. Philippines, Thailand, Malaysia, Indonesia are all in positive waters. Most strategic technological monopolies are in Japan (Blindside from Eanmon Fingleton, 1995). 9 of the 10 largest harbours in the World are East Asian, leaving Rotterdam as the single exception. 70% of the World software production is in India. Most of the largest national GDP annual growth are in East, South-East and South Asia, making US robust growth of the last decade look pale and Europe's 2-3% definitly meaky.
The book is fundamental because it explains the basics of this Asian economic advantage, how post-1800 Westerners could delude themselves while their ancestors (Adam Smith being the most famous) dedicated pages of study to record and analyse why Asia was so superior to the West in almost everything and why the West has risen and is maybe falling beyond again (Only a blind could not notice that 1/3 of all US supermarket shelves are filled with Made in China or that the content of high-tech products is mostly Made in Japan, Taiwan or Korea and that Pokemon, Nintedno and Playstation are kids favorite).
An essential book for anyone to understand the global economy, to have an acurate look on current situation and evaluate the decisions made in the West to face Asian return to global power. A Chinese proverb says: There are no failures, only experiences. And another one: The 10.000 miles trip begins with one step. Make the first step of the next millennium and buy this book.
One of the best books of this century.......2000-11-19
Gunder Frank have really helped to open up the eyes of people, who have long gotten used to reading books and literary works written with Eurocentric bias. He conclusively proves that Europe's success was nothing unique, and that Europe was the lesser of the many players in world economics, technology, and industry until about 1800 AD. China, India, Central Asia, South-East Asia, and the Middle East were those main players of the global trade, spanning from 1500 BC to 1800 AD. These above five regions also had the world's highest standards of living, most advanced technology, greatest industrial and commercial enterprises, best art forms, literature, philosophy, and musical styles, and also the most sophisticated government and best infrastructure in roads, bridges, canals, river and seaborne transportation from 5000 BC to 1800 AD. Special note must also be made, about the vast contributions of the Native Americans of the New World to world agriculture, medicine, metallurgy. Also the role that Native American gold and silver played in helping Europe to become a player in the global trade, by giving Europe with the purchasing power to purchase Chinese silks, tea, porcelain, and other goods, Indian cotton textiles, and South-East spices and gems, should be noted. Gunder Frank provides ample proof in his arguments and successfully disproves long held Eurocentric ideas about the origins of the modern economics, commerce, and industry. Gunder Frank's work is an eye-opener to all. This book should be read by every person, willing to learn about world history. I must also say that in the 1800's and 1900's however, it was Europe which played the most significant role in moving the science, technology, industry, trade, and commerce of the world forward and to greater new heights, just as the other six regions of the world have done in the past.
Book Description
China's new economic surge is a surprise to all, but this ancient land remains a myth to both foreigners and Chinese. Get the inside story from a Chinese journalist/consultant about China's business, society, and politics under globalization and capitalism. This revised volume gives an insider's analysis on what's behind China's surge and its implications to the world. It covers key global issues such as manufacturing and job transfers, Chinese multinationals vs. global giants, and changing production, trade and investment trends, as well as evolving international relations.
"China's Global Reach" explores:
- The ever-increasing influence of foreign multinationals (15 plus case studies);
- National and business competition;
- The ever-expanding power of Chinese multinationals (15 plus case studies);
- Global job and manufacturing transfers;
- The rise of Chinese consumers vs. opportunities;
- China's political-economic reform;
- Changing global production and economic map;
- Comparative studies on China, US, Europe, Japan and India;
- Evolving international relations;
- Convergent movement of global civilizations; and
- And more - including an afterword by Andre Gunder Frank!
"China's Global Reach: Markets, Multinationals, and Globalization" is a straightforward and timely analysis of a changing world in relation to a fast-developing China. It is a book perfect for professionals, investors, policy makers, educators, and students, as well as for anyone who questions how the world will move ahead to the next stages.
Customer Reviews:
revealing and decent.......2006-08-16
Author Gu is a brave fellow. He offers straightfoward info and analysis on what is really inside Chinese business and political world. He is highly critical of the Communist ills that continue to cause hellish problems for China and foreign operations inside. Other than this abusive bureaucratic power, Chinese people are very diligent and creative. But the key is to get rid of the overextended bureaucratic power, as so claims by Gu.
This book is a must read -- it is a rare book that reveals the inner workings of the Chinese bureaucratic system. This new edition is very nice, which is sharply revised and expanded. (Five stars for his new edition)
powerful development lessons .......2006-08-03
Author George Zhibin Gu is a high-profile Chinese journalist whose powerful newspaper pieces are widely read. This book is a must read. The reason for my recommendation is simple: This book summarises the key lessons from a fast-changing China under globalization and capitalism.
These lessons are powerful. First, an open society is a must in order to gain true development. Second, having foreign involvement is a key driving force for China's quick development in this era. Third, a truly meaningful development must depend on individual private initiatives other than government bureaucracy.
This book gives rather straightforward analysis on what is behind China's new development. It gives tremendous information on foreign multinationals and investors doing biz inside. Furthermore, it gives huge info on how this foreign involvement affects China's society, government and economy. In particular, it is extremely open about the ills of the Chinese bureaucracy. To overcome bureaucratic barriers, it emphasizes the need for greater private initiative as well as openness, among other things.
Also, the book talks about the ever-increasing influences of China's surge on global development. It gives very insightful analysis on a changing global production, investment, and trade map, as well as manufacturing and job transfers, among other issues.
The book also offers much practical advice on doing biz in China. Numerous case studies are presented, including both successes and failures.
must read.......2006-07-29
This book is for all readers. Not to mention other things, it contains several dozen case studies on global multinationals doing business in China, like Wal-Mart, P&G, Intel, HSBC, Bank of America, Ford, Siemens, BP, Unilever, Sony, GE, GM, Morgan Stanley, and Microsoft. (Amazingly, this revised and updated volume gives most current info on China -- even events happened in May 2006 are contained here.)
It also gives huge info on emerging Chinese multinationals. All the leading Chinese companies such as Haier, Huawei, TCL, Lenovo, China Telecom, Baosteel, China Oil, Sinopec, CNOOC, and Ping An are studied here. Furthermore, comparisons are made between the Chinese companies and their international counterparts. These discussions are straightforward, covering both strengths and weaknesses.
Its scope is rather wide: the author aims to identify key factors behind global development: causes, effects, and consequences. He offers vast info and analysis on a changing global production, investment and trade map, which involves all nations, rich or poor. Interesting comparative studies involve US, Canada, Europe, India, Japan and China. Above all, he pinpoints opportunities and challenges under globalization.
Also it is highly critical of the abusive Chinese bureaucratic power. Gu claims that China's fundamental weakness is with this overextended, self-appointed bureaucratic power. Vast info and facts are presented to support his statement.
He is a high-profile newspaper commentator/consultant that adds much color to his discussions. The book's key strengths come from the fact that the author has vast first-hand experiences, so that he gives countless insider's stories. Its style and presentation is very reader friendly and straightforward, but its analysis is overpowering.
Book Description
This book tells the story of China's emergence as a major economic power and the huge impact this will have on world business. Over the last five years Peter Nolan has conducted a major investigation into Chinese industry, its economic structure, and the opportunities for growth in the future. As one of just four world experts invited by the Chinese Government to consult on their application to joint the World Trade Organisation he has worked closely with the heads of Chinese industry and with many foreign multinationals operating in China. China and the Global Economy is an executive summary of the opportunities for business in one of the largest markets in the world, by one passionate about its possibilities for the future.
Book Description
This book will become an important tool for those who wish to understand China's new role in the global trading system, to take advantage of the new opportunities for investment in China, or simply to gain a better understanding of what former President Clinton called a "once in a generation event."
Customer Reviews:
A useful guide.......2004-02-05
China surpassed Japan in 2003 to become America's 3rd largest trade partner, after Canada and Mexico. Indeed, it won't be long - a couple of years at most - before China overtakes Mexico's position. In addition, China is already the world's 4th largest merchandise trader after the US, EU and Japan, and one of the top leading overall (merchandise plus services) trading nations of the world. By the end of this decade, perhaps before then, China will take over Japan's place as the world's 3rd largest overall trader in both merchandise and services - an astonishing performance for a country which practically did zero trade with the rest of the world only 25 years ago.
Policy-makers and businesspeople everywhere, and in America especially, need to sit up and listen to the sound, balanced, non-partisan, and cool-headed analysis by one of the world's leading experts on China and its role in the global trading system. And his name is Nicholas Lardy of the Brookings Institution.
How to integrate China into the Global Economy ?.......2002-11-25
Globalization is the hot topic and major concerns for every government and enterprises in 2002.
How China can integrate into the Global ecomony ?
And How Hong Kong can still alive when facing the competition with China in 2003?
Mr. Zhu Rongji (Prime Minister of China) has spoken to all elite people and officials when trip to Hong Kong in November, 2002.
Hong Kong is facing the highest un-empolyment percentage in 2002 and it is over 8% of the total population now.
How to make Hong Kong can be rapid changing in the next decade? There are no industrial development as before due the higher costs than other provinces in China. So China will give them more pressure when getting the orders from Oversea's markets.
Reckon you can see the speeches of " Zhu Rongji " in his last trip to Hong Kong.
China and Hong Kong are the Business Partners since 1983.
But now they are the competitor in every business development.
So how Hong Kong can stay alive when facing the Global economy?
Hong Kong can only run their own way and don't let China copy their old ways.
Although it is not easy to go the new way, it is their own choice.
Don't think too late and must run from this minute.
E-commerce and E-business development is the only way to go and reckon it can work more faster than China's doer.
Hong Kong should be forgotten your doer's way and think to re-enginnering in your business structures and models.
Hard work is the old fashion for Hong Kong now.
New Fashion is the new ideas and new models when stepping into the E-business.
Hope Hong Kong's government can bring up all the elite people to come across the crisis of economy and deflation in the next decade.
Book Description
Includes a Foreword by Joel L. Naroff, PhD,
President, Naroff Economic Advisors, Inc.
Chief Economist, Commerce Bank
"Over the past century, Americans' images of China have fluctuated wildly from victim, to heroic fighter, to Communist fanatic. We have loved them and feared them. And now, as Sara Bongiorni shows in vivid personal terms, we are in a new phase where it is a little of both. China has become an economic giant that can step on our toes, but that we must embrace."
-John Maxwell Hamilton, Dean and Hopkins P. Breazeale Foundation Professor Manship School of Mass Communication, Louisiana State University
"When the writer resolves to forgo Chinese imports for one year, she leads her lively family in a fascinating experiment that requires surprising feats of will power and ingenuity. The family's adventure through the maze of modern America's consumer life is both thought provoking and delightful to read. Those little 'Made in China' labels will never seem the same again."
-Mark Fabiani, former White House special counsel and media/political consultant
"Breaking up is indeed hard to do, as Sara Bongiorni proves in this winning memoir of her household's one-year boycott of Chinese products. Equal parts Erma Bombeck and economics, A Year Without 'Made in China' is that lively miracle-a crash course in globalization that is also consummately entertaining."
-Danny Heitman, columnist for The Advocate (Baton Rouge)
"A funny and engaging story about one family's experiment in our global economy. The Bongiorni family does without sneakers, sunglasses, and printer cartridges, but develops a dogged creativity and much needed sense of humor. The myriad moral complexities in the relationship between American consumers and Chinese factory are evident in each shopping trip."
-Pietra Rivoli, PhD, Professor, McDonough School of Business, Georgetown University and author, The Travels of a T-Shirt in the Global Economy
"You will never go shopping the same way again! It's impossible to read Sara Bongiorni's book and not be captivated by the complexity and challenge of her task, and to then try it yourself for a day and fail miserably at it by lunchtime. This is the rare book that makes you think about how big global issues actually hit home, and it will have you discussing those issues with your friends."
-Chuck Jaffe, Senior Columnist, MarketWatch host, Your Money (www.yourmoneyradio.net)
Customer Reviews:
loved it!.......2007-10-18
Funny as all get out! I love this family. This book reads like a comic thriller. It will resonate with anyone who's ever bought anything made in china.
fascinating; could not put it down.......2007-10-17
I really enjoyed this book for what it was. I was very surprised upon seeing other reviews; i thought they would all be 4s and 5s! One person said that 'maybe women enjoy this writing style, but as a guy I don't.' maybe that is true, because i loved it. She does not make any pretense about this being a political statement... it is a memoir! Very enjoyable read.
Please do not waste your time reading this book (and use your time to do something productive).......2007-10-15
A Year Without Made In China fell extremely short of my expectations. There was a wonderful opportunity that this book had to take a great topic and explore all the different implications that a boycott on Chinese products could have on our lives. The author COULD have explored the topic of China's economic stranglehold on middle America, or the social justice issues tied implicitly to cheap Chinese products, or the future our country is headed towards based on American dependence on Chinese goods, or the effects of globalization on labor market issues, or the political ramifications of what a boycott on a much larger scale could be, or the environmental impact from the production of all the cheap Chinese goods...
The list could go on and on about what this book COULD have been about. The sad fact is that this book is largely a whine-fest about how hard it is to have to boycott China.
The author doesn't even have a good reason for doing it either. No underlying reason or drive or ethic or anything other than lets see what happens. This would be forgivable if it wasn't for the incredible absence of anything that could be thought-provoking.
I don't want to sound too harsh, I just want other people to not expect a wonderful examination of our dependence on Chinese goods, because that is not what they are getting with this book.
Make better use of your time and read the NYTimes recent series on China, or get China Inc. You'll learn a lot more and probably walk away better equipped to understand issues related to China's increasingly large role in global affairs.
Perfect Holiday Gift if you can not buy Chinese toys due to to recall fears.......2007-10-07
I think my title says it all. I gave it as a gift to a Danish friend who taught me 10 years ago that Legos are Danish, so is Hans Christian Anderson. Buy books, not toys for this Holiday season. This is a smooth narrative, easily readable during a long flight or unexpected lay overs at air ports.
Good idea - Very bad book !!.......2007-10-07
Sara's idea & experience is very interesting and could have let to a very good book if only she had been able to describe the inner thoughts of her family during this "year without any new chinese products".
She lacks writting skills to make it interesting. The characters (her husband and kids) are not real characters. She's the only one talking about her.
It could have been a great book.
Despite these writting issues, another point that makes Sara's book uninteresting is that she didnt take the experiment to its extreme, which is taking all chinese made products out of her life & family life.
On the first few pages, we understand it's going to be a "no additional chinese products, but we keep the ones we have" kind of experiment.
The real question of interest is : Can we live without chinese made products at all ? She didn't cover this question. She answered somehow to the question : Can we stop buying additional items for 12 months.
Not good enough.
This book is of no interest to me.
Average customer rating:
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GLOBAL BIG BUSINESS AND THE CHINESE BREWING INDUSTRY (Routledge Studies on the Chinese Economy)
Y GUO
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Books:
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- The Next Great Globalization: How Disadvantaged Nations Can Harness Their Financial Systems to Get Rich
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