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Shock therapy in the Eurasian continent to overthrow a subsidy bill in cities such as Rome, Vienna, Bonn
MIRACLE SATURDAY
By Wendell W. Solomon Islands
Warning word 3000 July 28, 1992, for "Moscow News" and World Bank Chief Economist
These jointly owned public goods are, for example, the savings of a lifetime of engineers, doctors, teachers, technicians and other workers. In the particular case of the sale of these assets to private hands, careful calculation of costs is also necessary to minimize the loss of savings workers and female workers. Causing the insolvency of the group and ethnic distribution has to be avoided.
Disposal of joint ownership of public assets to legal persons also requires the development of civil law and business, including the development of the courts and the training of lawyers.
If a-Hey Presto approach not, someone would have to subsidize the earnings and pensions of more than 300 million people, young and old, while The courses in auditing, accounting and finance, marketing, administration, business economics, banking, insurance, commercial law and taught ...
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This story begins near the church of Nicholas the Miracle-Worker Leo Tolstoy street. Near it, in a parking lot where foreign car, the men were trying to achieve his miracle.
rare even Something for Moscow, the temperature had dropped overnight to 38 degrees below zero. Dramatically, brightly colored American, British, French and German owned by Citroën, Ford, Peugeot Volkswagen, and Volvo refused to start. The winter had made foreign cars daunting piles of metal.
Few foreigners morning first noticed a man at work. He had placed a tray of coals, a saving of a summer picnic under the motor its maroon Volvo ... I knew I could heat the engine oil lightly to help to slide pistons in the cylinders. A British experience came his miracle working as a technician in Norway.
Many people seeking a miracle to prevent further shortages, rising prices and riots in East Europe and the Commonwealth of Independent States. Thinking about the figures he had seen U.S. in July 1992 President George Bush had expressed his own way, "do not know if there is enough money in the world to solve Russia's economy. "
Every worker has his miracle experience. Matthew warns-XV-14
"And if the blind lead the blind, both shall fall into the ditch. "
To make a broader social miracle possible, which experience could be used? We check out Asia? The spirituality of modern Europe originated in Nazareth in Asia ...
EAST STAR
Asiaweek magazine's editors saw it and took our great socio-economic problem on July 24, 1992. They had an observation to the expertise available in the East
"China's leaders know what might happen if prices rise too fast. They wrote the book on creating special economic areas as laboratories for free market reforms, which can then be applied to the rest of the country. "
And to the east of China is Japan - whose star experiences American companies even study. There, a century ago, Japan began the intensive search for knowledge. Inceptional the promise of the office in 1868, the ruling Japanese began to join several Japanese territories declared -
"Knowledge is requested for all the world, so that the welfare of the Empire may be promoted. "
With the need to take over several provincial Shoguns and unite Japan, the age of 16 years led the Meiji Emperor quick study and emulation of the practices in Europe.
Between the times of Pythagoras and Newton, although many people had been locked inside the country, Europe served as a testing ground for an ethic of Asia. It happened to be one that was challenged and cosmopolitan detachment. In this spirit was established Western Europe was no longer the day of Saturn and the day of Thor in the week or glorified the wisdom of stoic prisoner who broke away from the world. The lighting of the prison predicted solitary was replaced by the 'madness' in I/17-29 Corinthians first, exemplified for example, a prayer called the Lord's Prayer contains no insulation "I" or "Me."
In East Asia, Japan had raised a popular transition from the Age of European Enlightenment. Y in 1890, universal primary education was adopted as a goal in Japan. Through the study of Europe's success in education, Japan had begun to think in life in terms of progress in community-based and community involved Europe. In particular, the emperor tried to prepare the Japanese to use not only the perimeter of the storm and typhoon mounted volcanic islands, but also the whole world as a cosmopolitan wealth of experience from which to select and discard best National disadvantages.
What was the outcome of this experiment?
How easy it is for us a century leap forward. . . Listen a news report said Japan's trade surplus with the rest of the world increased by 50% during the first six months of 1992, compared with the previous year. More than a third of the same trade surplus was gained at the expense of other countries that inherits directly from the European Age of Enlightenment - United States.
However, we know that the surface of the Japanese archipelago of four main islands and several thousand hills, adds to the area unless the U.S. currency the state of California.
While little David grew, what the nation's largest state doing?
WESTERN STAR
U.S. Soldier, President Dwight D. Eisenhower knew of the need to move. He had this to say: "Our real problem, then, is not our strength today, but rather the vital necessity of action today to ensure our strength tomorrow. "
Previously, as Commander Allied Forces during the war, Eisenhower had responded to President Franklin D. Roosevelt, who knew that the challenge of leadership in the broad spectrum of national and international. He said: "We defend and we build a way of life, not only to America but to all mankind."
It still says most of his vision when we learned that Roosevelt echoed the aspiration, so different from what the mercantilist thought -
"The money changers have fled from their high seats in the temple of our civilization. You can now restore that temple to the ancient truths. "
And even on the other side of the gap U.S. policy, Roosevelt's Republican counterpart exhibited a similar stand in the leadership when he agreed to visit Moscow during the war as a presidential envoy. He Wendell L. Willkie, also brings out the link of the productive forces is paradoxically
"This is the weakness that people reach dictators and concentrated government power. Only the strong can be free. And only the production can be strong. "
Although "money changers" in contrast to "production" for the generation of these two leaders, various events were to follow. American - privileged son of the Age of Enlightenment - Had become the occupying power in Japan and had broken Japan's leading commercial farms. At the same time, the counterpart of U.S. farms remained full and rich.
What else a chance to enjoy this good fortune?
Influential U.S. households had inherited type money fortunes of many a European principality of age would have envied. The heads of these households Americans were now able to invest in the recognition of the Muses and the wise and avoid a new problem - the headache of leadership.
Among the scholars that released that headache was Milton Friedman. His monetarism, if you query an encyclopedia entry for brevity, focused on promoting economic growth through the regulation of money supply in the economy of a country. Innovation, productivity, and economic strength would follow automatically - do not bother with a new U.S. leadership.
What went into the official thinking was in some sense a return to mercantilist 17 and 18 century France and England. These advertisers offer support to mercenaries, merchant houses and despots Colonial to see economic growth only in the interface of commodity exchange traders, and especially in negotiating the price of money days of gold bullion. English playwright Thomas Dekker (1572-1632) had explained in the hyperbole -
"A mask of gold hides all deformities. "
Both mercantilist and monetarist gave comfort and assurance to those who hold wealth money saying that the attributes used were the key levers of life. When this fetish was projected across television in modern times, she pounced on the United States with a fever well as that of King Midas they coveted the golden touch until he began to turn their food and their loved ones in gold frigid.
Haunted by the projection of brightness such as monetarism, U.S. productivity began to fall after the war. Families that had become heirs of U.S. wealth had reached these circumstances life when separated from the innovators of the United States. To illustrate the gap between the planners of the U.S. trade strategy and innovators, take an example.
Sony bought the rights to use the transistor to an American concern for just $ 25,000. Innovation after innovation was used by consumers Japanese electronics industry, which took over U.S. companies in the U.S. market itself on the radios, tape recorders, televisions, stereo high high quality, and video.
In two famous articles published in 1983 in REVIEW OF THE ATLANTIC, Harvard University, Robert B. Reich noticed trend and said:
"More than 65 percent of the seats on the boards of Japanese manufacturing companies are occupied by people who are trained as engineers, more or less the same percentage of seats on American boards are made by people trained in law, finance or accounting. Therefore, in Japan, many problems that arise in business are seen as problems of engineering or science, so that technical solutions can be found ... "
"Entrepreneuralism paper is both cause and consequence of the faltering U.S. economy. benefits are the only paper available to professional managers who feel isolated on organizations designed for a form of production is no longer appropriate to make America into the global economy ... "
Book entrepreneuralism therefore has a self-perpetuating quality that, if unchecked, will lead the country to further decline. "
Just before Robert Reich rang the alarm, Thomas Peters and Robert Waterman had taken a book, "In Search of Excellence", which focused on a better organization. His book was widely read in U.S. industry and acclaimed. Some companies turned to focusing on more efficient organization, the case of Motorola and IBM are in the point. However, the overall pattern remained unchanged. America's wealth had fallen into a leadership position, but his leadership was abdicate.
Finally, because of mercantilism, which took over U.S. trade policy daily to reduce friction Sony, Honda, Sanyo, and other companies YKK Japan began the transportation of U.S. factories and learned to operate a U.S. workforce.
- Therefore, evasion was started again. The famous writer HG Wells had once said: "Every time Europe looks across the Atlantic to see the American Eagle, is observed only the back of an ostrich. "
EXPERIENCE OF MIRACLES
If we try to measure the Gross National Product (GNP) in U.S. dollars, we find Japan increased its per capita GNP of about $ 50 for the year 1945 the figure of $ 27,000 for 1992. Japan has overtaken the United States (22,000 dollars), Canada (21,000 dollars), Germany (21,000 dollars), France (21,000 dollars). If you try to fix it we find that Japan increased its average GDP at current prices during the past 47 years by 14.3% per year (treat this as a constant figure on your calculator, if you have a computer handy.) Who else has experience in development of this type?
Philip Kotler, a known trafficker of the U.S. market, provides useful analysis. Not for him the role street vendors or capitalism. The marketing-oriented analysis of modern industrial production. His own words are below.
TARGET INDUSTRIES
Japan need to rebuild the nation to control its balance of payments, creation of export and to manage its economy back to health, led Japan to consider the selection of certain targeted industries for growth ... target industry is not an industry that Japan identifies as worthy of full support deemed necessary to be a strong sector in the country and to help them become and remain competitive internationally.
PROPELLER-The Government of Japan
During 1949-1955, Japan together institutional instruments that were to catapult the economic big leagues. Undoubtedly, the central entity in the institutional structure of the MITI (Ministry of International Trade and Industry), which entered into force in 1949. Even the title is significant. The inclusion of international trade is indicative of the Japanese intention to focus resources exploitation international markets.
MITI worked closely with many other government agencies including the Ministry of Finance and the Development Bank of Japan.
At the core of MITI functions are separate but related elements
1. The establishment of objectives and priorities of the economy Japanese
2. The development of the economy (physical) and institutional (commercial) infrastructure
3. Selection of target industries
4. Funnelling the necessary capital to engage in specific industries and
5. To encourage industries to maturity target
6. The development of means to regulate all forms of competition in the Japanese economy
7. Control the flow of foreign investment in Japan
8. Management institutional environment.
Mainly through the auspices of MITI, Japan has designated a number of industries for development and consolidation. These industries were helped by financial, fiscal, and compatible with the technology and were protected from foreign competition in the domestic market ... (Philip Kotler is written with co-authors in full WORLD EXECUTIVE DIGEST, September, 1985.)
Fueled by the industry-MARKETING AND foreign grants
Compared with Japan, South Korea and Taiwan, if the marketing-driven industry develops, Eastern Europe and the Commonwealth of Independent States have some advantages - and some disadvantages. Let's take the first advantages -
(A) States that already have a developed science potential teachers more than Japan, South Korea or Taiwan. Some states also have more scientists, engineers, technicians and skilled workers;
(B) Some states have more foreign language specialists from the countries that the Japanese trade concerns and other foreigners began, most countries also have in common geographic and cultural boundaries with many others for rapid and cross-border trade.
(C) Most countries with more mineral resources.
Last but by how little -
(D) In many of these countries, Marx, with several generations rabbis of his ancestry, helped create a strong congregational "Us." In modern times in Japan fostered community spirit factory to combat the alienation that affects American industrial sociology. Thus, Japan was able to turn every day in the factory in a teach-in to increase productivity and overall success. People who come to play an important role in the development of participatory management include Kaoru Ishikawa Japanese and activists from several people that meet at the headquarters in Tokyo, Japan Union of Scientists and Engineers. Acknowledge a debt to U.S. W. Statistical Edwards Deming University New York, who contributed in 1950 to Japan participatory management system of quality. In this sense and, finally, the work of a large number of Americans and William Ouchi (UCLA) and Olga Crocker (Windsor) who have studied Japanese participative management at a technical level are available in the literature and would useful in the selection of suitable skills for the historic challenge.
The list of disadvantages of these nations is long. Not to grow weary and postpone the task, let's look at the resolution of two issues in its agenda.
(1) These countries must develop their marketing. For many engineers at the machine, this requires going back to the classroom. The current system in which the engineers have worked is based on the macro-planning of production and distribution. However, as is required to market training for staff on the ground. For example, business development on a scale in the country's founding companies, associations and owner for the marketing, retail, wholesale, storage, handling and road transport, both for the needs home and export markets. Please note that business development can not occur without the injection of expensive fixed capital and working after the creation of banks credit due to lack of risk capital, an operation known as the World Bank.
(2) These countries have to make private property stand out. If a large volume of assets was sold in another country with a market economy, careful timing would be used by professional asset managers to not market values decrease suddenly.
Although the term state capitalism in academic discussion occurs, assets in these countries do not belong a big business tycoon. These public goods jointly owned by waiting, for example, the lifetime savings of engineers, doctors, teachers, technical and other workers. In the particular case of the sale of these assets to private hands, with care costs is also necessary to minimize the loss of savings of workers and women. Causing the insolvency of the group and ethnic distribution has to be avoided. Disposal of joint ownership of public goods (sobstvennost obshestvennaya ') to legal persons also requires the development of civil law and business, including the development of the courts and training lawyers. If an approach Hey Presto, no, someone would have to subsidize the incomes and pensions of more than 300 million people, young and old, male and women, while courses in auditing, accounting and finance, marketing, management, business economics, banking, insurance, and commercial law are taught, and while the macro-planned factories, farms, land, apartments, hospitals, universities and schools are valued by the auditors at market prices or a method of reallocating the savings in these same assets, and sold to buyers.
Even if the major foreign buyers in case of factories and farms to materialize, national output would at least continue at the previous level so as not to allow others a bill for the subsidies from abroad? There has been speculation about size of that bill as we know annual grants and July 1992, USA President George Bush put it this way: "I do not know if there is enough money in the world to solve Russia's economy. "
In case of failure, an operation of "big bang" in the Eurasian continent to overthrow A bill to grant in cities such as Rome, Vienna, Bonn, Paris, London, Dublin, Glasgow, Madrid, Lisbon, Brussels, The Hague, Copenhagen, Stockholm, Oslo. Now I just realized, the land barriers have gradually faded. That has made a number of these cities no more than one week road trip from Nicholas Church the miracle worker, the patron saint of Moscow. St. Nicholas is called Santa Claus in the West for the children who come down the chimney to make many Christmas gifts miraculously come true. Now, if you happen to be a mom or dad who want a miracle about this church, if you choose the star of Star East or west route?
Document History
Published in Colombo by the Rev.. Graeme Muckart WM of the Church of Scotland in July 1992.
Text sent by Wendell W. Solomon Lawrence Summers, chief economist of the WB, from Colombo via fax Metalix 580 private postal agency Washington 721 Fax 202-4776391 IBRD July 28, 1992.
Telex on the subject TW 886-2-7761549 started and faxes from 1 May.
Communications IBRD received by Wendell W. Solomon
(A) E package of documents, DHL, forwarder waybill No.: 756 176 536 744 556 072 SPS on August 7, 1992, sent by Etienne Pierart Department: 824, Div: 11 Room: 0-4137, the World Bank.
(B) Letter from the same date according to research firm Pierart Etienne.
(C) Letter of 30 November 1992 Reference No: D28811 (3), 10/19/92, World Bank under the RS Julita firm principal.
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