The disparity between rich and poor countries is the most serious,
intractable problem facing the world today. The chronic poverty of many nations
affects more than the citizens and economies of those nations it threatens
global stability as the pressures of immigration become unsustainable and rogue
nations seek power and influence through extreme political and terrorist acts.
To address this tenacious poverty, a vast array of international institutions
has pumped billions of dollars into these nations in recent decades, yet despite
this infusion of capital and attention, roughly five billion of the world's six
billion people continue to live in poor countries. What isn't working? And how
can we fix it?
The Power of Productivity provides powerful and
controversial answers to these questions. William W. Lewis, the director
emeritus of the McKinsey Global Institute, here draws on extensive microeconomic
studies of thirteen nations over twelve years--conducted by the Institute
itself--to counter virtually all prevailing wisdom about how best to ameliorate
economic disparity. Lewis's research, which included studying everything from
state-of-the-art auto makers to black-market street vendors and mom-and-pop
stores, conclusively demonstrates that, contrary to popular belief, providing
more capital to poor nations is not the best way to help them. Nor is improving
levels of education, exchange-rate flexibility, or government solvency enough.
Rather, the key to improving economic conditions in poor countries, argues
Lewis, is increasing productivity through intense, fair competition and
protecting consumer rights.
As The Power of Productivity explains,
this sweeping solution affects the economies of poor nations at all levels--from
the viability of major industries to how the average consumer thinks about his
or her purchases. Policies must be enacted in developing nations that reflect a
consumer rather than a producer mindset and an attendant sense of consumer
rights. Only one force, Lewis claims, can stand up to producer special
privileges--consumer interests.
The Institute's unprecedented research
method and Lewis's years of experience with economic policy combine to make
The Power of Productivity the most authoritative and compelling view of
the global economy today, one that will inform political and economic debate
throughout the world for years to come.
- Findings : the global economic landscape
- Japan : a dual economy
- Europe : falling behind United States : consumer is king
- Korea : fo
- Brazil : big government is big problem
- Russia : distorted market economy
- India : bad economic management from democratic government
- Patterns : clear and strong
- Why bad economic policy around the world?
- New approaches
- So what.?