Book review: China's Megatrends

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  • 1. Book Review: Chinas Megatrends: The 8 Pillars of A New Society Prepared by Daisy Zheng November 2010 Excellence through Culture,Talent,and Change

2. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Agenda 1 General Introduction 3 2 The 8 Pillars of A New Society 6 3 About Tjitra & associates 15 2 3. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change General Introduction 3 4. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Author: John & Doris Naisbitt 4 - We were in search of Chinas Megatrends.We were aware that we were looking at a country undergoing great change in a very complex way,with each region and each city moving at different levels and at different speeds. - What we found was of much greater dimension and importance than we had expected.China is creating an entirely new social and economic system.In the next decades China will not only change the conditions of global economics,the Chinese model challenges the Western democracy as the only governing model capable of reducing poverty and providing the social and economic rights required. by John and Doris Naisbitt Famous works: Megatrends.Ten New Directions Transforming Our Lives.1982 Megatrends 2000.Ten New Directions for the 1990s.1990 Global Paradox.The Bigger the World Economy,the More Powerful Its Smallest Players.1994 Megatrends Asia.Eight Asian Megatrends That Are Reshaping Our World.1996 High Tech/High Touch.Technology and our Accelerated Search for Meaning.2001 Mind Set! Reset Your Thinking and See the Future.2006 China's Megatrends:The 8 Pillars Of A New Society.2010 etc. 5. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Chinas Megatrends:The 8 Pillars of A New Society 5 Looking for patterns that form the picture of the new China,John and Doris Naisbitt and the 28 staff members of the Naisbitt China Institute in Tianjin found what was of much greater dimension and importance than the economic rise of China:China is creating an entirely new social and economic system.It is creating a political counter model to Western modern democracy fitting to Chinese history and society just as America created a model fitting to its history,society and values more than 200 years ago. Most of those who look at China with interest,fear,reprobation,courtesy,hope or simple curiosity,see the future and sustainability of China as adapting to the Western economic and value system.But what is the scenario from a Chinese point of view? With an inside out approach,China's Megatrends explains what enabled China to change in only 30 years from a nation of poverty and backwardness to become the third largest economy of the world,beat Germany as export champion,and challenge America as the most competitive.China has reinvented itself as if it were a huge enterprise,developing a company culture which fits the demands of the enterprise and its people on the path to modernity and wealth. 6. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change 6 The 8 Pillars of A New Society 7. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Emancipation of the Mind 7 The destructive forces of the Cultural Revolution had to be turned into constructive energy for building a new China.The transformation has to start with allowing people to reclaim their own thinking.The liberation of minds from indoctrination to emancipation was the first and most important pillar of the transformation of China. Deng encouraged the whole nation to step out of the field to see the mud on their feet. Science and technology is the number one kind of productivity Everybody has an equal right to higher education Emancipation of the mind opened the door for Chinese people to think for themselves and make their own decisions, and reawakened the Chinese entrepreneurial gene and opened the eyes of the people to all kinds of business opportunities. To establish national-level, high-tech industrial parks, modeled after the high-tech parks around Boston in the US, with favorable policies to encourage the creation of new, innovative companies (1992). To revitalize Chinas state-owned enterprises through various strategies, such as healthy enterprises would carry a sick one, privatization in gradual process, invite global players to help handle non-performing assets, etc.. Context-oriented leadership: The leaders believe in the power of the right process, adapt well to change, process information through interaction, align themselves through engagement, and implement their ideas through the people. Particularistic culture: Chinese believe we should decide what is best for ourselves on the basis of our own needs, while the other countries should decide for themselves. Communicating on web: a new preference for some Chinas high-ranking officials, which brings more human touch in politics. 8. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Balancing Top-Down and Bottom-Up 8 The most important,most delicate and most critical pillar on which the sustainability of the new Chinese society rests is balancing its top-down and bottom-up forces.Keeping the equilibrium is the key to Chinas sustainability,and it is the key to understanding Chinas political self-concept.The evolving Chinese dynamic of top-down government directives and bottom-up citizen initiatives is shaping a new model we callvertical democracy. Strongly influenced by Confucius, Chinese believe that the social order and harmony are foundations of freedom. Over the last 30 years, CPC has changed from an arbitrary top-down autocracy to a functioning one- party leadership with strong bottom-up participation, in order to adjust flexibly as conditions and circumstances require. Slowly China has established its vertical democracy. It aligns very well with Chinese context-oriented leadership style: a leader sets a frame and leaves it to the people to work out the details. Chinas bottom-up initiatives have developed rapidly throughout the entire society - Various arrangements are being created for tapping into the opinions of ordinary citizens - Experts from different areas are invited to speak on study-meetings organized by President Hu - Central government started to reduce government intervention and micromanagement of operations - etc. Clean government is an important aspect of the investment environment, Chinese are fighting in the hard battle against corruption. Education has been given the first priority to ensure and strengthen the quality of bottom-up initiatives. 9. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Framing the Forest and Letting the Trees Grow 9 In the vertical democracy that China is creating,the vision and the goals are being shaped in a top-down,bottom-up process.The government frames the policies and priorities within which citizens create their own roles and their own contributions to the whole,forming a structure that allows and benefits from diversity while sustaining order and harmony. One overall economic frame was to reach modest wealth by the year 2010, but no detailed definitions of single steps were given. It allowed balancing bottom-up and top-down, which makes the frame flexible and adjustable to achieve maximized benefit. Principle raised up by Deng in 1978, Science and technology are the primary productive force and Intellectuals, are part of the workers class, changed the attitude toward business and education, and highly motivated young people to receive higher education and establish the bright future for themselves as well as for the whole country. The main contradiction between the growing material and cultural needs of people and the backward social production became the new political frame. It allowed balancing socialist principles with the materialistic demands of modernization. Beginning in 1980, China established special economic zones to import foreign goods and know-how, which opened the door for urgently needed foreign investment and technology. Meanwhile, a number of high-tech industrial development zones is established in different cities, which allowed Chinese entrepreneurs and scientists to operate with astonishing freedom and support. A scientific Growth Development Model was presented in 2007, which means China officially confirmed the shift from focusing on economic growth to enhancing the quality of living and the recovery of the environment. Three Presents was announced in 2002. It declares CPC must presents: - The development of Chinas advanced productive forces - The development of Chinas culture - The fundamental interests of the majority of the people in China 10. Book Review:Chinas Megatrends / Nov.2010 Excellence through Culture, Talent and Change Crossing the River by Feeling the Stones 10 The metaphor of crossing the river by feeling the stones reflects the attitude of the Chinese leadership at the beginning of the journey to a new China.In place of inflexible directions and goals,this mind-set allowed the country to feel its way,to allow trial and error,not to fear risk, to experiment,and to find the best way byseeking the truth from facts. China has used pilot projects to find out what works and doesnt work. Legal norms, insurance, institutions, education models, investment models, and even cultural interests are tested and must prove their value before they are adopted countrywide. No other country has used the method of trial and error so intensively for its development as China. Signpost for economy: - President Dengs concept of Let some cities get rich first made certain regions into huge economic laboratories, and also one of the first big stones in crossing the river. - Learning to use internat