This presentation describes the role of governments in entrepreneurship. Some good examples are China Taipei, Red China, Malaysia, Singapore and USA. Governments are traditionally seen as very poor in business management. (I think it still is.) But Taipei and Singapore did very well in its role. To a large extent, Red China and its Central Bank are making direct investments not only in currencies, bonds and financial instruments but directly in commodities and businesses. And we should admire the Chinese officials for their courage and risk taking.

1. Jorge U. Saguinsin
Ateneo Graduate School of Business
Government
Entrepreneurship

2. Government
Entrepreneurship
The new challenge to
politics and governance

4. Seems to be a
contradiction; will
government entry into
entrepreneurship produce
results?

6. Governments fare poorly
as business managers!
(governed by outdated
administrative code books)

7. A PHL GOCC - Napocor – losing
billions – even millions by the hour!

8. Look at flag carriers and
state run businesses –
disincentive and unfair
competition to private
sector

10. Central planning in
USSR and China

11. USSR Central Planning of
Economy – it failed!

12. Central Planning

13. Characterized by huge
losses, government
subsidies, and decline in
productivity

14. Government’s roles are to:
• Regulate
• Provide policy direction
• Provide the ecosystem
conducive to entrepreneurship

15. Collective farming in Russia
caused decline in farm productivity

16. China’s state run
businesses

17. Is China’s foray into global
business good or bad?

20. Chinese government
investment is a driving
force in its economic
global dominance

21. China’s central banks and
its investments in business

22. Government Centers of
Excellence
There are bright young
passionate technocrats
who run their units well;
and are world class

23. Examples of successful
government entrepreneurship:
• Malaysia
• Singapore
• Taiwan
• New York City EDC
• Reagan and Bob Clinton
regime in US

24. Singapore – Century 21
campaign led by Koh Bon
Wee – overseer of Singapore
Telecom, Singapore Airlines
and Development Bank of
Singapore

25. “I think that the government’s
recognition that more
entrepreneurship is needed for the
continued development of the
economy is good..” xxx … for your
development then, your relevance
depends on whether you are more
creative and more innovative” - Koh

28. Malaysia – Mustapa
Mohamed, Minister of
Entrepreneurial
Development

29. “We were charged with
promoting entrepreneurship
throughout the country. But
neither I nor my senior staff
had any idea what
entrepreneurship was” -
Mustapa

32. Taiwan - K. T. Li (father
of Taiwan Economic
Miracle)

34. “The greatest advantage I had
as economic affairs minister
was I never had a course on
economics” - Li

35. Li’s achievement for
Taiwan:
• per capita GDP of $10,000 (up
from $130)
• inflation rate of only 2.2% for
the past 50 years;
• fifth biggest foreign reserves
• highest GNP growth (9%) of any
country for the last 60 years

36. Li’s 5 Broad Principles
• The starting point is population control
• Never print money you do not have
• The government job is to make people
rich (not fight poverty alone)
• Timing is more important than
ideology
• Create and honour the entrepreneurs

37. The best economic policy
ever invented
“common sense”

38. The best policy
“Keep bright people out of
the government. Keep them
in private sector where they
can do good”

39. Charles Millard in
New York City
Economic
Development Council

40. Responsible for the Silicon Alley
and New York City Discovery Fund

43. Responsible for the Silicon Alley
and New York City Discovery Fund

44. “A little bit of money”

45. “First do no harm”

46. President Reagan –
Reaganomics though
controversial probably saved
USA from economic
stagnation

47. President Ronald Reagan

48. Important piece of
legislation – Kemp Roth Act

49. Jack Kemp and Pres Reagan (a
football player and an actor) brought
back USA to progress

50. Important provisions of Kemp Roth
Act
Main features of the Act are:
1.Reduction of tax rates by 25% over three
years;
2.Accelerated depreciation deductions;
3.Indexed individual income tax parameters;
4.Exclusion of income of two earner married
couple by 10 %;
5.Reduction in windfall profit taxes; and
6.Expanded provisions for employees stock
ownership plans.

51. President Bob Clinton

52. Bob Clinton and US economy:
Bill Clinton on Budget Economy
Longest Economic Expansion in US History
In February 2000, the United States entered the 107th consecutive month of
economic expansion -- the longest economic expansion in history.
22.2 million new jobs have been created since 1993, the most jobs ever created
under a single Administration -- and more new jobs than Presidents Reagan and
Bush created during their three terms. 91 percent (19.9 million) of the new jobs
have been created in the private sector, the highest percentage in 50 years.
Unemployment is down from 7.5 percent in 1992 to 4.0 percent in June 2000, and
in April the unemployment rate was the lowest in over 30 years. The
unemployment rate has fallen for seven years in a row, and has remained below
5 percent for 34 months in a row.
The poverty rate has fallen from 15.1 percent in 1993 to 12.7 percent in 1998.
That’s the lowest poverty rate since 1979 and the largest five-year drop in poverty
in nearly 30 years.

53. US Budget Deficit under
Clinton (with tax cuts)

54. GDP per capita growth in US (note
the cresting at time of Reagan and
Clinton)

55. Reference:
The New Entrepreneurial Age by Larry
Farrell, 2011, Brick Tower Press

56. Credits
Presented and Prepared by:
Prof. JORGE U. SAGUINSIN
Ateneo Graduate School of Business

57. Now blogging on:
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