Power distance

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Part # 1: Economies with high power distance.
Part # 2: Economies with low power distance.

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Power distance

  1. 1. Power distance
  2. 2. Part # 1 Economies with high power distance. Part # 2 Economies with low power distance.
  3. 3. Part # 1 Economies with high power distance
  4. 4. Gap between the richest 10% and the poorest 10% of the population Place Gap Mexico 26:1 USA 16:1 Italy 11:1 Japan 10:1 Canada 9:1 UK 9:1 OECD on average 9:1 Germany 8:1 France 6:1 Nordic countries 5-6:1 http://www.oecd.org/document/14/0,3343,en_2649_33933_41533262_1_1_1_1,00.html
  5. 5. http://www.dni.gov/nic/PDF_2025/2025_Global_Trends_Final_Report.pdf Income distribution
  6. 6. Mid-1980s to late 2000s http://www.economicsofinformation.com/2011/05/inequality-is-growing-around-world.html
  7. 7. In the UK, the 1% of the population with the highest earnings earn 15% of all income in the UK. That makes the UK – by far – the most unequal country in Europe. http://youtu.be/IO-641S7N14
  8. 8. http://www.ted.com/talks/richard_wilkinson.html
  9. 9. Increase in income inequality in China http://issuu.com/0xfam/docs/oxfam-bp-working-for-few-political-/7?e=1574349/6403563
  10. 10. Reduction in income inequality in Brazil http://www.economist.com/blogs/dailychart/2011/11/focus?fsrc=scn/tw/te/dc/brazil
  11. 11. Low access to financial services in households in Africa http://www.weforum.org/pdf/AFCR09/AFCR09_full_report.pdf
  12. 12. http://a330.g.akamai.net/7/330/25828/20081021185552/graphics.eiu.com/PDF/Democracy%20Index%202008.pdf Several authori-tarian regimes in Africa
  13. 13. Severe income disparity is a very high global risk http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2013.pdf
  14. 14. Authoritarian regimes with high risk of political revolt http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=1777812562
  15. 15. http://www.eiu.com/index.asp?layout=infographics&info_name=infographic_democracy Democracy around the world Democracy
  16. 16. Freedom of the press 2014 http://www.freedomhouse.org/report-types/freedom-press Green = free Purple = Not free
  17. 17. Percentages of respondents who chose freedom of speech as the first national goal range from 36.6% in the Netherlands to 1.5% in Russia. Hofstede, Geert: Cultures and Organizations, p. 295.
  18. 18. The 7 countries with the most corruption http://www.transparency.org/cpi
  19. 19. Corruption perceptions index 2013 http://www.transparency.org/cpi
  20. 20. Work The boss is seen as the source of ultimate responsibility in business. Education Teachers are called gurus and are viewed as the source of all knowledge. Family The patriarch, usually the father, is considered the leader of the family. http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html
  21. 21. Within companies manual labour will only be carried out by the peon (roughly equivalent to a runner). It is not uncommon for the moving of a desk to take hours. This is because no-one in the office will carry out the task but the peon. http://www.kwintessential.co.uk/etiquette/doing-business-india.html
  22. 22. http://pewglobal.org/reports/display.php?ReportID=258 Religiosity and wealth
  23. 23. Is religion an important part of your life? http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1
  24. 24. Is religion an important part of your life? http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1
  25. 25. In France, hierarchy is important. http://www.bloomberg.com/news/2014-11-09/how-sanofi-boss-saw-story-end-in-60-hours-in-board-tussle.html
  26. 26. Richard Putnam’s work on the cities of Italy asked why the northern cities had prospered while the southern cities had decayed. His research showed this: Northern cities Based on wide, horizontal networks of trust and reciprocity. Southern cities Were in the vice grip of authoritarian hierarchies that squeezed out individual initiative and created distrust between citizens. Source: Gratton, Lynda: Hot Spots, p. 188.
  27. 27. It is estimated that the top 1.5% of the Roman empire controlled approximately 20% of total income. http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=7246320
  28. 28. At the time of Augustus, 1st century, as many as 35% of the people in Italy were slaves. http://en.wikipedia.org/wiki/Roman_Empire
  29. 29. There are about 27 million slaves in the world today Sources Kevin Bales: How to combat modern slavery. http://www.youtube.com/watch?v=HUM2rCIUdeI Bales, Kevin: Why there are 27 million slaves in 2010. http://bigthink.com/ideas/24524
  30. 30. Part # 2 Economies with low power distance
  31. 31. http://www.ted.com/talks/richard_wilkinson.html
  32. 32. http://www.ted.com/talks/richard_wilkinson.html The lower income inequality, the fewer social problems
  33. 33. http://www.ted.com/talks/richard_wilkinson.html
  34. 34. http://pasisahlberg.com/wp-content/uploads/2013/07/Jakarta-Talk-2013.pdf
  35. 35. The 10 countries with highest quality of democracy http://www.nccr-democracy.uzh.ch/news_events/image/Demokratiebarometer_Europa_D.pdf
  36. 36. http://www.eiu.com/index.asp?layout=infographics&info_name=infographic_democracy Democracy around the world
  37. 37. Freedom of the press 2014 http://www.freedomhouse.org/report-types/freedom-press Green = free Purple = Not free
  38. 38. The 5 countries with the least corruption http://www.transparency.org/cpi
  39. 39. Corruption perceptions index 2013 http://www.transparency.org/cpi
  40. 40. Is religion an important part of your life? http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1
  41. 41. Few religious people in Scandinavia, Japan, and UK http://www.gallup.com/poll/114211/Alabamians-Iranians-Common.aspx
  42. 42. Studies show that economic development initially leads to increased power distance due to urbanization and increased saving among the upper class. Over time, however, government policy, entrepreneurial activities, and technological change drive economic development and a decline in power distance. http://www.na-businesspress.com/jabe/coxweb12-6.pdf
  43. 43. Power distance http://www.na-businesspress.com/jabe/coxweb12-6.pdf GDP per capita
  44. 44. Further sources of inspiration http://jom.sagepub.com/content/early/2014/03/24/0149206314527131.full.pdf http://www.oecd.org/els/soc/top-earners-capturing-growing-share-of-total-income-in-many-countries.htm https://www.scribd.com/doc/35468260/Individualism http://www.slideshare.net/frankcalberg/3-ways-of-organizing http://www.slideshare.net/frankcalberg/power-to-the-people-34722633 http://topincomes.g-mond.parisschoolofeconomics.eu/ http://youtu.be/-S9MoeN8COI http://youtu.be/sqaa42gbqhA
  45. 45. Thank you for your interest. For further inspiration and personalized services, feel welcome to visit http://frankcalberg.com/ Have a great day.

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