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jerryking : undermining_of_trust   8

Opinion | The World-Shaking News That You’re Missing
Nov. 26, 2019 | The New York Times | By Thomas L. Friedman

** “Has China Won? by  Kishore Mahbubani

A new wall — a digital Berlin Wall — had begun to be erected between China and America. And the only thing left to be determined, a Chinese business executive remarked to me, “is how high this wall will be,” and which countries will choose to be on which side.

This new wall, separating a U.S.-led technology and trade zone from a Chinese-led one, will have implications as vast as the wall bisecting Berlin did. Because the peace, prosperity and accelerations in technology and globalization that have so benefited the world over the past 40 years were due, in part, to the interweaving of the U.S. and Chinese economies.

The messy, ad hoc decoupling of these two economies, driven by miscalculations by leaders on both sides, will surely disrupt those trends and the costs could be huge. We might want to talk about that.

Former Treasury Secretary Hank Paulson gave a speech here a year ago trying to kick-start that discussion. “For 40 years,” Paulson noted, “the U.S.-China relationship has been characterized by the integration of four things: goods, capital, technology and people. And over these 40 years, economic integration between the two countries was supposed to mitigate security competition. But an intellectually honest appraisal must now admit both that this hasn’t happened and that the reverse is taking place.” That reversal is happening for two reasons. First, because the U.S. is — rightly — no longer willing to accept China’s unfair trade practices. Second, because, now that China is a technology powerhouse — and technological products all have both economic and military applications........“after 40 years of integration, a surprising number of political and thought leaders on both sides advocate policies that could forcibly de-integrate the two countries across all four of these baskets.” the digital Berlin Wall took a big step up on May 17, when Trump blacklisted China’s Huawei.......Lots of Chinese tech companies are now thinking: We will never, ever, ever leave ourselves again in a situation where we are totally dependent on America for key components. Time to double down on making our own......similarly, U.S. manufacturers are thinking twice about building their next factory in China or solely depending on a supply chain from there.....this is the sound of two giant economies starting to decouple.....the State Department has been restricting visas for Chinese graduate students studying in sensitive fields — like aviation, robotics and advanced manufacturing ....
What to do?
Friedman is worried that by imposing more and more export and visa controls we will be cutting ourselves off from the access we need to the global investment pools, customers and collaborative scientists and engineers to maintain our technological lead.

I still believe that the most open systems win — they get all the signals of change first, they attract the most high-I.Q. risk-takers/innovators and they enrich and are enriched by the most global flows of talent, ideas and capital. That used to be us.....

China is our economic competitor, economic partner, source of talent and capital, geopolitical rival, collaborator and serial rule-breaker. It is not our enemy or our friend.

The only effective way to manage a relationship this complex is:
1) with an all-of-government approach. You can’t have the Justice Department doing one thing, the Pentagon another, the Treasury another, the trade negotiators another, the State Department another and the president tweeting another. And
2), we need as many Pacific and European allies as possible so it’s “The Whole World Versus China”
blacklists  books  China  China_rising  co-ordinated_approaches  decoupling  Donald_Trump  doubling_down  dual-use  economic_disengagement  economic_integration  espionage  future  Hank_Paulson  Huawei  miscalculations  new_tech_Cold_War  open_borders  security_&_intelligence  seismic_shifts  self-sufficiency  signals  students  supply_chains  technology  Tom_Friedman  undermining_of_trust  U.S.-China_relations  visa_students  walled_gardens  Xi_Jinping 
november 2019 by jerryking
Hyena capitalism receives a swift kick from the Unilever giraffe
25 February/26 February 2017 | FT| Robert Armstrong.

the rise in hyena capitalism — broadly, the emphasis on squeezing the maximum present return out of assets — is an effect of low economic growth. When the number of US workers was increasing and innovation was delivering faster productivity growth, there were lots of reasons to invest. Today it just makes more sense to focus on cost.....More generally, it may be that, since the financial crisis, spooked managements and, in the case of public companies, investors have become increasingly risk averse — more so than the state of the economy would justify. So money piles up on balance sheets, is paid as dividends, or goes to repurchase shares. Investment falls, despite the availability of cheap credit to fund new projects.
It also looks increasingly likely that the change in management incentive structures, in particular the increase in share-based incentives and shortening tenures for top executives, have made company leaders less inclined to invest. there is a risk that it could become self-reinforcing. Lack of investment affects not just future productivity, but also demand. At the extreme, if no one invests, no one earns and there is no growth. If companies are forgoing opportunities to invest, they are depriving the economy of customers with money to spend.
More insidiously, it could be that hyena capitalism undermines trust in the institutions and mores that makes corporate capitalism possible in the first place. If workers know they are regarded as dispensable cost centres, why should they commit to learning company-specific skills and procedures? Why not shirk instead? If the gains from corporate transformations go overwhelmingly to investors and financiers, why should voters support free market policies?
Capitalism needs both giraffes and hyenas. But in a time of modest growth, low productivity growth and rising inequality, one must keep an especially close eye on the hyenas.
CPG  Unilever  3G_Capital  private_equity  public_companies  consumer_goods  Kraft_Heinz  inefficiencies  capitalism  sweating_the_assets  undermining_of_trust  deprivations 
march 2017 by jerryking
North Korea: How Can the U.S. Respond to Sony Hack Attack? - WSJ
Dec. 20, 2014 | WSJ | By JONATHAN CHENG And JEYUP S. KWAAK.

SEOUL—U.S. President Barack Obama ’s warning on Friday of punitive action against North Korea following the cyberattack on Sony Pictures Entertainment raises a sticky question: what can the world’s leading military and economic power do to an isolated country that has successfully resisted decades worth of attempts to rein in its hostility?...However, engaging in any kind of cyber tit-for-tat with North Korea could undermine trust in the security of online banking and shopping services,
North_Korea  cyber_security  cyber_warfare  Sony  retaliation  sanctions  blacklists  economic_warfare  money_laundering  hackers  punitive  retribution  undermining_of_trust  cyberattacks 
december 2014 by jerryking
Inside a Twitter Robot Factory - WSJ.com
By
Jeff Elder
Nov. 24, 2013

fake accounts remain a cloud over Twitter Inc. in the wake of its successful initial public offering. "Twitter is where many people get news," says Sherry Turkle, director of the MIT Initiative on Technology and Self. "If what is trending on Twitter is being faked by robots, people need to know that. This will and should undermine trust."

Fake accounts thrive on Twitter in part because, unlike Facebook, FB -0.37% Twitter doesn't limit users to a single account, or require them to use their real names.

Twitter's terms of service prohibit "mass account creation," and the buying or selling of accounts or followers. Last spring, Twitter helped a research team apply a filter that, for a time, blocked 95% of new fake accounts.

A Twitter spokesman wouldn't disclose whether the company has continued to use the researchers' technique to identify and block suspect accounts.

While conceding that fakes are "a difficult problem, the Twitter spokesman said, "We have a variety of automated and manual controls in place to detect, flag, and suspend accounts created solely for spam purposes."
Twitter  fraud  counterfeits  undermining_of_trust 
november 2013 by jerryking
Turmoil ‘positive’ for family offices - FT.com
October 20, 2008| FT |By Bob Sherwood.

Mr Scott believes that the after-effects of the crisis will, in time, drive more clients to smaller independent asset managers because their trust in large investment banks has been undermined.

“As and when everybody reopens for business, it’s going to be an exciting opportunity for us. People are reassessing their institutional relationships, full stop. And we already have a significant number of new inquiries in our pipeline.”
decreasing_returns_to_scale  economic_downturn  family_office  reassessments  undermining_of_trust  wealth_management 
december 2012 by jerryking
Wendy Kopp: The Trouble With Humiliating Teachers - WSJ.com
March 7, 2012 | WSJ | By WENDY KOPP.

Making rankings public undermines the trust educators need to build collaborative teams.
teachers  teaching  Teach_for_America  Wendy_Kopp  rankings  high_schools  humiliation  undermining_of_trust 
march 2012 by jerryking
The Spirit of Enterprise - NYTimes.com
By DAVID BROOKS
December 1, 2011

Nations like Germany and the U.S. are rich primarily because of shared habits, values and social capital....People who work hard and play by the rules should have a fair shot at prosperity. Money should go to people on the basis of merit and enterprise. Self-control should be rewarded while laziness and self-indulgence should not. Community institutions should nurture responsibility and fairness.

This ethos is not an immutable genetic property, which can blithely be taken for granted. It’s a precious social construct, which can be undermined and degraded.

Right now, this ethos is being undermined from all directions. People see lobbyists diverting money on the basis of connections; they see traders making millions off of short-term manipulations; they see governments stealing money from future generations to reward current voters.

The result is a crisis of legitimacy. The game is rigged. Social trust shrivels. Effort is no longer worth it. The prosperity machine winds down....The real lesson from financial crises is that, at the pit of the crisis, you do what you have to do. You bail out the banks. You bail out the weak European governments. But, at the same time, you lock in policies that reinforce the fundamental link between effort and reward. And, as soon as the crisis passes, you move to repair the legitimacy of the system.

That didn’t happen after the American financial crisis of 2008.
bailouts  covenants  David_Brooks  Europe  locked_in  moral_hazards  euro_zone  European_Union  financial_crises  gaming_the_system  laziness  legitimacy  self-control  self-discipline  self-indulgence  self-regulation  social_capital  social_cohesion  social_contract  social_fabric  social_trust  undermining_of_trust  values 
december 2011 by jerryking

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