Combining authoritarianism with public care

Two types of geoeconomics paths are embraced in the world:  liberalism and authoritarianism. America and most of the European nations are pitched in following liberal democracy within their shore and spreading it outward. Authoritarianism is mainly seen in the Eastern part of the globe.

Today geoeconomics does not condone pure liberal economy or unadulterated command economy. A synthesis of these two is the newest trend in geoeconomics where authoritarian philosophy is mixed with public care. China and Russia are the main proponents of this blend. Countries such as Brazil and South Africa are slowly transforming into this milieu. Let me pinpoint few of the plus points of this combo, which I observed in China.

1. Control at the centre and care at the periphery is what Chinese Communist Party stood for from early Fifties of the last century. Under Mao it was public cantered ideology that brook no challenge to the central authority and at the same time plugged on to foster community based economic development.

2. Confucianism was avidly followed within the societal norms insisting on loyalty and public good. Taoist philosophy was also implemented at even keel. In the Chinese culture blending yin and yang was sought after in working life as well as in home environment. Needless to say, quietening the public and providing public utilities at affordable price were the hallmarks.

3. Tiananmen Square protests ending in massacre of the protestors in the year 1989 opened the eyes of the authorities who gradually toned down harsh policies regarding pubic venting of their feelings. A via media was found in organizing  local meetings where many fundamental issues facing the public in their day to day life were  aired, discussed and recommendations were drawn and later submitted to the higher level authorities who in turn submitted these with suggested solutions to the Central Committee of the Chinese Communist Party.

4. Chinese play Wei Chi whereas Chess is played globally. Chess deals with the concept of defeating the opponent. Wei Chi intends to get domain control making the contestant to withdraw rather than taste the sour defeat. Here lies the theme: persuade the opponent to concede and improve his prospects thereafter. Hiking it upwards Wei Chi is entertaining as a game and at the same time enlightening the players on their mental development.

5. Finally, the people to people interactions lead to scientific and technological development. Soft on the weakest is the central focus. Beginning from the manufacture of low technology products the scheme gradually elevates the people to engage in medium and later to high-tech industry. Once again there is oversight by the central authority, who use iron fist clothed in a velvet glove.

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

Bury the hatchet and then bury the weakest

This is a classic manoeuvre executed in military as well as in business strategy. It relates to a move towards settling matters with an existing enemy who is emerging victorious and finishing off an ally who is on the verge of defeat.

President Donald Trump came with a shocker recently trying to bury the hatchet America and Russia had for the last few decades resulting in both countries incurring immense loss in terms of opportunity cost in geoeconomics. Russia has the resources America has the technology. If both countries join in their hips to work together in the aftermath of the Soviet Union the situation would have been a win-win one.

Saner counsel did not prevail then. After almost 35 years later Trump is seized and possessed with the Latin dictum “unus pro omnibus omnes pro uno” that means “one for all, all for one” in simple English. Trump is a deal maker and he wants to befriend Russia to get out of the morass America is in the Ukraine contest. Trump knows that the Ukraine conflagration is a black hole wherein previous administration tossed more than 300 Billion USD in cash and armaments.

Imagine the degree of growth this quantum of capital could have elicited if it was invested within the country. Leveraging this capital infusion into US economy would have strengthened the geoeconomics position of America in a big way, not to mention the upping of living standards domestically.

The second limb in this business strategy is to bury the ally who is on the cusp of collapse. Ukraine must and should be buried to improve the prospects of America Russia détente on the one hand and preserve and defend the geoeconomics power spectrum of America on the other.

Burying the hatchet with Russia can have an unexpected winnings this time from China. As Russia and China are fast becoming inseparable duo in the global economics arena and especially in the Arctic zone Trump is quickly moving towards burying the weakest amongst the trio Ukraine as the best course of action. Recent spat between Team Trump with Volodimir Zelensky in the White House Press Conference was meticulously planned and executed to convey this message not only to the globe but to the Western European nations who still root for confrontation with Russia with backstop on America!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist

 

 

Navigating business strategy amid geoeconomics

Business strategy itself is a complex area and when pitted against geoeconomics it is confusion confounded.  However, there is always light at the end of the tunnel. To get there we need the fundamentals straightened. Let me explain briefly the topics business, strategy and geoeconomics.

Business relates to any undertaking carried out by a state, state sponsored entity or privately incorporated company or firm that seeks to create, deliver and capture value in a chosen sector.

Strategy is all about selecting the right ways to achieve proposed ends utilizing available means. A significant point in the evolution of strategy is how it functions in the concept, policy and strategy syndrome. Please note that everything begins with a concept, in this case it is the business concept that begets policy. Once a set of business policies is identified then it begets the business strategy as a final outcome. Formulation of any strategy must lead to the execution part of it and thereafter evaluation enters the scene in order to determine success or failure of business strategy.

Geoeconomics is the bedrock that influences how a strategy is formulated, executed and evaluated.

Navigating business strategy amid geoeconomics pre-empts moves and manoeuvres that are to be made by companies & firms after conducting astute analysis in terms of international relations between and amongst allies and enemies.

One good illustration is how European firms are failing to get their acts together in the US-China rivalry on the one hand and Global West-Russia confrontation on the other. German car industry is an apt example that is struggling to reconcile its goals and objectives with the geoeconomics environment prevailing amongst the three major powers:  America, China and Russia.

Look forward to your point of view on my take!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist