Are You an Imperialist?

I got called an agent of capitalist imperialism the other day. This wasn't the first time. It's probably my own fault.

Business Law Journal staff photo.

It begs the question, though: why do I care about corporate law reform in other countries? Am I just acting out a sublimated desire for Anglo-American legal hegemony on the rest of the world?

Just Say No

I'm in the throes of studying for my Anti-Trust final. As I go back over my notes, outline, and the cases in the book, I can't help but be struck by the government's tenacity in enforcing the law. The DOJ can't just smack a company for violating the anti-trust laws. It has to prove the allegations in court and the judicial branch isn't shy about restraining the executive. But the DOJ and FTC just keep coming back for more.

Why didn't I think of that?

This may seem normal to us but it's a hard balance to strike. One of the hardest challenges facing poor countries is how to create institutions that will enforce the law and not just cater to the whims of whoever's in power. When you don't have "robust" institutions, you have a lot of corruption and exploitation. How do you create a group of people who are more-or-less incorruptible when the entire environment is rife with corruption?

"Lost", Fu Manchu, and Corporate Governance

I'm one of those "Lost" fans that can't help themselves. The writers keep throwing out so-called explanations that just make less sense than the original nonsense but persist. I just want some closure.

Since I'm not a complete idiot, I realize the "Lost" writers will deny me that basic human need. So I'm forced to find meaning in my addiction through alternate means.

In the most recent episode, "Lost" reminded me of a bit of comparative corporate governance insight buried in the show's convoluted storylines. If you think this is a stretch, bear with me for just one second.

Optimism & Jugaad

A newly released pole quantifies the optimism I mentioned in my earlier post on India. The Mint has a basic recap here. For a full copy of the survey conducted by London's Legatum Group, look here.

The Mint piece mentions jugaad, which is a Hindi word meaning basically "a quick and dirty fix." It's analogous to our "Yankee ingenuity" or the "can-do spirit" but implies a bit more in the way of obstacles.

I heard about jugaad from a number of people while I was in India. Its implication can vary widely. Some people use it positively, like Yankee Ingenuity. It can also be sardonic as hell.

Hopefully, the optimists win out. The Legatum survey suggests that entrepreneurs are nearly unanimous in wanting a more responsive and less corrupt government. As this constituency becomes more powerful, that may well come to pass.

Also, IBM is extending its start-up partnership program to India. That should give India start-ups some necessary infrastructural support and access to clients they currently lack.

European Disunion

Only a few weeks ago it seemed like Greece's EU friends would take care of it. That idea fell through, though, and now Germany and France are squabbling over whether to bring the IMF in to deal with the problem. As if things weren't bad enough on the Continent, Portugal's debt was downgraded with exquisite timing.

Germany's reluctance to bankroll a Grecian bailout is pretty understandable. Athens routinely cooked their books when times were good, and the Greek public is throwing fits over cuts to a posh welfare state they couldn't afford to begin with. Add to the Greeks' own bad behavior the fact that Germany is essentially the keystone for all of Europe's economy these days and you can comprehend why Germans might be getting a little frustrated.

These troubles highlight just how weak the EU is as a political institution. EU member states must beg their sister states for help--the equivalent of Florida having to go directly to New York every time it wanted to repair hurricane damage. Despite all the regulations coming out of Brussels, the EU is still more of a confederation than a real union. During the EU elections last year, I kept hearing a weary sort of optimism from Europeans about the future strength of the EU. The Grecian Dilemma (sounds like a Ludlum story about hair dye) casts more cold water on that dream.

Red Tape Indian-Style

Certain times in history belong to specific places. Chicago in the 1890s, New York in the '50's, Paris in the '20s; where all the varied currents in the world seem to come together in one spot and define a moment. Right now the moment belongs to the BRICs; Brazil, Russia, India, and China.

To visit India now is heady stuff. In Mumbai they are repaving the airport's runway with a gang of women using hand tools and baskets full of gravel on their heads. But the airport is busy with new low-fare airlines, and increased middle class air travel is pushing that expansion. An Indian wine industry is gaining real traction.

Our generation is the last to know a pre-reform India--a country that derided its own stagnant economy as the "Hindu rate of growth." There was nothing inherently Indian about the poverty, though. It was the country's forty-year experiment in socialism that held it back. Rampant protectionism, planned economies, and a self-propagating bureaucracy strangled an economy that, at independence in 1947, was one of the developing world's most vibrant and industrialized. Now the restraints are falling away.