global supply chain

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pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

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1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, labour market flexibility, labour mobility, LNG terminal, low cost carrier, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, Plutocrats, plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

Financial investors in New York and London and the capital pools they deploy in Asia, Swiss and Singaporean commodities brokers and the resource deposits they control in Africa and Latin America, Silicon Valley and Bangalore programmers and their global customers, German and American carmakers and their factories from Mexico to Indonesia—these are all cross-border circuits connected by way of supply chains. It is not countries as a whole that ascend value chains but such circuits of people who are attached to global nodes. Gradually, places such as garment production centers in Dhaka and Addis Ababa begin to feel almost detached from their own country even as they become key drivers of its growth; they belong as much to the global supply chain as to their nation. So synchronized are global supply chains that they serve as a seismograph of our amplified connectivity. Like earthquakes causing equally powerful aftershocks, the financial crisis of 2008 contracted world trade five times more severely than it did world GDP. First the credit crunch created a demand shock, meaning a huge slump in purchases of durable goods. Then the adjustment in inventories cascaded horizontally as the velocity of trade in most goods slowed in unison, shrinking industrial production cycles from Germany and Korea to China.

This trend is playing out around the world from East Africa to Southeast Asia as dynamic new regional federations take shape through common infrastructures and institutions. North America too is growing into a truly united supercontinent. Third, the nature of geopolitical competition is evolving from war over territory to war over connectivity. Competing over connectivity plays out as a tug-of-war over global supply chains, energy markets, industrial production, and the valuable flows of finance, technology, knowledge, and talent. Tug-of-war represents the shift from a war between systems (capitalism versus communism) to a war within one collective supply chain system. While military warfare is a regular threat, tug-of-war is a perpetual reality—to be won by economic master planning rather than military doctrine.

Supply chains are the complete ecosystem of producers, distributors, and vendors that transform raw materials (whether natural resources or ideas) into goods and services delivered to people anywhere.*7 Whether you are awake or asleep, scarcely a moment of our daily lives—sipping morning coffee, driving a car, talking on the phone, sending an email, eating a meal, or going to the movies—doesn’t involve global supply chains. And yet as universal as they are, supply chains are not things in themselves. They are a system of transactions. We do not see supply chains; rather, we see their participants and infrastructures—the things that connect supply to demand. What we can see, however, by tracing supply chains link by link is how these micro-interactions add up to large global shifts. We are witnessing the full consequences of Adam Smith’s free markets, David Ricardo’s comparative advantage, and Émile Durkheim’s division of labor: a world where capital, labor, and production shift to wherever is needed to efficiently connect supply and demand.


pages: 354 words: 92,470

Grave New World: The End of Globalization, the Return of History by Stephen D. King

9 dash line, Admiral Zheng, air freight, Albert Einstein, Asian financial crisis, bank run, banking crisis, barriers to entry, Berlin Wall, Bernie Sanders, bilateral investment treaty, bitcoin, blockchain, Bonfire of the Vanities, borderless world, Bretton Woods, British Empire, capital controls, Capital in the Twenty-First Century by Thomas Piketty, central bank independence, collateralized debt obligation, colonial rule, corporate governance, credit crunch, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, debt deflation, deindustrialization, Deng Xiaoping, Doha Development Round, Donald Trump, Edward Snowden, eurozone crisis, facts on the ground, failed state, Fall of the Berlin Wall, falling living standards, floating exchange rates, Francis Fukuyama: the end of history, full employment, George Akerlof, global supply chain, global value chain, hydraulic fracturing, Hyman Minsky, imperial preference, income inequality, income per capita, incomplete markets, inflation targeting, information asymmetry, Internet of things, invisible hand, joint-stock company, Long Term Capital Management, Martin Wolf, mass immigration, Mexican peso crisis / tequila crisis, moral hazard, Nixon shock, offshore financial centre, oil shock, old age dependency ratio, paradox of thrift, Peace of Westphalia, Plutocrats, plutocrats, price stability, profit maximization, quantitative easing, race to the bottom, rent-seeking, reserve currency, reshoring, rising living standards, Ronald Reagan, Scramble for Africa, Second Machine Age, Skype, South China Sea, special drawing rights, technology bubble, The Great Moderation, The Market for Lemons, the market place, trade liberalization, trade route, Washington Consensus, WikiLeaks, Yom Kippur War, zero-sum game

Frattini, ‘The fiscal effects of immigration to the UK’, Economic Journal, 124:580 (2014), pp. 593–643. CHAPTER 9: THE DARK SIDE OF TECHNOLOGY 1.Although it is worth noting that we may be close to reaching the physical limits of miniaturization: quantum mechanics suggests life could become a lot less certain. 2.The phrase ‘mass production’ wasn’t coined until the 1920s. It originally referred to the Ford Motor Company. 3.For a useful summary of the evolution of global supply chains, see R. Baldwin, Global Supply Chains: Why they emerged, why they matter, and where they are going, Centre for Trade and Economic Integration Working Paper CTEI-2012-13, Graduate Institute, Geneva, 2012. 4.Lord Reith, director general of the BBC between 1927 and 1938, was keen to deliver to his audience ‘All that is best in every department of human knowledge, endeavour and achievement … The preservation of a high moral tone is obviously of paramount importance.’ 5.Winston Churchill appeared to thrive on alcohol in ways that would likely be unacceptable today, yet he was rarely criticized.

Where David Ricardo’s comparative advantage applied, countries would have ended up specializing in some areas and exiting from others.10 In other words, there would have been both winners and losers in the US labour market, even if overall economic activity had ended up at a higher level (labour standards across the region would also have ended up higher, one reason why TPP’s demise comes at considerable cost).11 Where global supply chains were formed, specialist production would have been concentrated in some countries, and would have disappeared from others: again, there would have been labour market disruption even if the pie had increased in size. Meanwhile, countries integrated into Asian supply chains that had not signed up to TPP would have found themselves excluded from those supply chains in the future: for them, the playing field would not so much have been levelled, but rather tilted dramatically against them.

Larger and more efficient aeroplanes able to travel vast distances led not only to a dramatic increase in the number of holidaymakers prepared to travel to far-flung places, but also allowed produce from all over the world to appear on our plates, whatever the season. Yet without the information technology revolution, it is difficult to imagine that the world would have experienced anything like the degree of globalization witnessed since the 1980s. At a stroke, the nineteenth-century coordination problem – which led to a concentration of industrial activities in a limited number of areas – was removed. Global supply chains took over. Apple could design its iPhone in California, yet make it in China, courtesy of FoxConn. BMW could build its Minis in Oxford, yet have the engines made in Brazil. JP Morgan could package up US sub-prime mortgages, knowing that the bundles it had assembled could then be distributed to Norwegian pension funds. Distances hadn’t changed, of course, but technology gave the impression that the world was shrinking.


pages: 518 words: 147,036

The Fissured Workplace by David Weil

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accounting loophole / creative accounting, affirmative action, Affordable Care Act / Obamacare, banking crisis, barriers to entry, business process, call centre, Carmen Reinhart, Cass Sunstein, Clayton Christensen, clean water, collective bargaining, commoditize, corporate governance, corporate raider, Corrections Corporation of America, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, declining real wages, employer provided health coverage, Frank Levy and Richard Murnane: The New Division of Labor, George Akerlof, global supply chain, global value chain, hiring and firing, income inequality, information asymmetry, intermodal, inventory management, Jane Jacobs, Kenneth Rogoff, law of one price, loss aversion, low skilled workers, minimum wage unemployment, moral hazard, Network effects, new economy, occupational segregation, Paul Samuelson, performance metric, pre–internet, price discrimination, principal–agent problem, Rana Plaza, Richard Florida, Richard Thaler, Ronald Coase, shareholder value, Silicon Valley, statistical model, Steve Jobs, supply-chain management, The Death and Life of Great American Cities, The Nature of the Firm, transaction costs, ultimatum game, union organizing, women in the workforce, Y2K, yield management

From the beginning of his tenure, Lenny pursued a “value-enhancing strategy” focused on shifting production and related activities away from the company via outsourcing.51 Indicative of this effort, Hershey outsourced elements of production of its chocolate liquor—the chocolate core of products like Kisses—to other companies, leaving only final reassembly steps to its own facilities and workforce. As a further extension of that strategy, the company announced its “global supply chain transformation” in February 2007. The official objective of the three-year program could not be a clearer statement of fissuring as applied to supply chain strategy. “The transformation program will result in a flexible, global supply chain capable of delivering Hershey’s iconic brands, in a wide range of affordable items and assortments across retail channels in the company’s priority markets.”52 The plan entailed further reducing the number of Hershey’s own production lines, “outsourcing production of low value-added items” to other companies, and building a new production facility in Monterrey, Mexico.

This included a more aggressive stance toward the Bakery, Confectionary, Tobacco, and Grainmillers Union, which represents Hershey’s workers. In 2002 the breakdown in negotiations over wages and benefits led to a forty-four-day strike. Although the parties settled the strike, the longer-term effort to reduce jobs continued. 52. See “Hershey Announces Global Supply Chain Transformation,” PR Newswire, February 15, 2007 (http://www.prnewswire.com/news-releases/hershey-announces-global-supply-chain-transformation-57933727.html, accessed July 21, 2012). 53. In addition to corporate documents and contemporaneous accounts, this section is based on Cleeland (2009). 54. Weekly stock price increases outpaced the Dow Jones Industrial Average consistently from 2002 through the first half of 2007. Both Hershey and the Dow Jones tracked downward throughout the depth of the recession from the latter part of 2007 through the beginning of 2010.

Locke, Richard, Matthew Amengual, and Akshay Mangla. 2009. “Virtue out of Necessity? Compliance, Commitment and the Improvement of Labor Conditions in Global Supply Chains.” Politics and Society 27, no. 2: 319–351. Locke, Richard, Greg Distelhorst, Timea Pal, and Hiram Samel. 2012. “Production Goes Global, Standards Stay Local: Private Labor Regulation in the Global Electronics Industry.” MIT Political Science Department Research Paper No. 2012–1. Locke, Richard, Fei Qin, and Alberto Brause. 2007. “Does Monitoring Improve Labor Standards? Lessons from Nike.” Industrial and Labor Relations Review 61, no. 1: 3–31. Locke, Richard, and Monica Romis. 2007. “Improving Work Conditions in a Global Supply Chain.” Sloan Management Review 48, no. 2: 54–62. MacDuffie, John Paul, and Takahiro Fujimoto. 2010. “Why Dinosaurs Will Keep Ruling the Auto Industry: The Complexity Revolution.”


pages: 323 words: 90,868

The Wealth of Humans: Work, Power, and Status in the Twenty-First Century by Ryan Avent

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3D printing, Airbnb, American energy revolution, assortative mating, autonomous vehicles, Bakken shale, barriers to entry, basic income, Bernie Sanders, BRICs, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer age, creative destruction, dark matter, David Ricardo: comparative advantage, deindustrialization, dematerialisation, Deng Xiaoping, deskilling, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Erik Brynjolfsson, eurozone crisis, everywhere but in the productivity statistics, falling living standards, first square of the chessboard, first square of the chessboard / second half of the chessboard, Ford paid five dollars a day, Francis Fukuyama: the end of history, future of work, gig economy, global supply chain, global value chain, hydraulic fracturing, income inequality, indoor plumbing, industrial robot, intangible asset, interchangeable parts, Internet of things, inventory management, invisible hand, Jacquard loom, James Watt: steam engine, Jeff Bezos, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph-Marie Jacquard, knowledge economy, low skilled workers, lump of labour, Lyft, manufacturing employment, Marc Andreessen, mass immigration, means of production, new economy, performance metric, pets.com, price mechanism, quantitative easing, Ray Kurzweil, rent-seeking, reshoring, rising living standards, Robert Gordon, Ronald Coase, savings glut, Second Machine Age, secular stagnation, self-driving car, sharing economy, Silicon Valley, single-payer health, software is eating the world, supply-chain management, supply-chain management software, TaskRabbit, The Future of Employment, The Nature of the Firm, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, transaction costs, Tyler Cowen: Great Stagnation, Uber and Lyft, Uber for X, very high income, working-age population

New technologies are replacing certain workers, from clerks to welders, and will replace more in the future, from drivers to paralegals. Machines are becoming defter and software is becoming cleverer, and these improvements are increasing the set of human tasks that can be cheaply automated. At the same time, the digital revolution has supercharged a second force: globalization. It would have been nearly impossible for rich Western firms to manage the sprawling global supply chains that wrapped around the world over the last twenty years without powerful information technology. And while China and other emerging markets might have become better integrated in the world economy even without companies such as Apple scattering production across the globe, such growth would have been much slower and less dramatic. Instead, global employment grew by over one billion jobs over the last generation, with most of the growth occurring in emerging economies.11 Workers there are, on the whole, less skilled than those in the rich world, and their incorporation into the global economy has been felt more keenly by workers in middle-skill manufacturing or back-office jobs than by white-collar professionals.

Assembly-line techniques dramatically reduced the cost of goods such as cars and televisions, in the process turning them into basic consumer goods rather than the playthings of the very wealthy. Electrification upended all sorts of industrial processes, and also gave us electric light, telephone calls and rock music. The digital revolution is no exception to this pattern. The web causes hardship for publishers precisely because it is so good for news consumers, who now enjoy access to massive amounts of information at very low cost. The global supply chains enabled by information technology have been hard on some workers but very good for shoppers as a whole, who now enjoy cheaper electronics, clothing and toys as a result. One marvels at the pure, massive consumer surplus generated by something like Wikipedia. When I was a kid, there were still people who would knock on your door to try to sell you encyclopedias, and school essays often needed to be written in a library, where you could easily turn to the Britannica on the shelves or dig through the card catalogue, looking for just the right source.

But property rights have been secure enough to satisfy lots of multinational firms, who have been willing to contract with Chinese companies or invest directly in the Chinese economy. Yet the role of foreign capital points to a second force at work in China’s rise, without which Chinese liberalization would have generated far more meagre returns. Over the last generation, technological change enabled explosive growth in global supply chains. Supply-chain trade has had far-reaching consequences for global development. Success in export markets once required economies to develop an entire suite of capabilities. To export electronics or cars, South Korea and Japan needed to build an entire, high-quality supply chain domestically: they needed lots of firms capable of designing and manufacturing components, and well-organized corporations capable of planning and coordinating the design, production and sale of complex goods.


pages: 238 words: 73,824

Makers by Chris Anderson

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3D printing, Airbnb, Any sufficiently advanced technology is indistinguishable from magic, Apple II, autonomous vehicles, barriers to entry, Buckminster Fuller, Build a better mousetrap, business process, commoditize, Computer Numeric Control, crowdsourcing, dark matter, David Ricardo: comparative advantage, death of newspapers, dematerialisation, Elon Musk, factory automation, Firefox, future of work, global supply chain, global village, industrial robot, interchangeable parts, Internet of things, inventory management, James Hargreaves, James Watt: steam engine, Jeff Bezos, job automation, Joseph Schumpeter, Kickstarter, Lean Startup, manufacturing employment, Mark Zuckerberg, means of production, Menlo Park, Network effects, profit maximization, QR code, race to the bottom, Richard Feynman, Richard Feynman, Ronald Coase, Rubik’s Cube, self-driving car, side project, Silicon Valley, Silicon Valley startup, Skype, slashdot, South of Market, San Francisco, spinning jenny, Startup school, stem cell, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, supply-chain management, The Nature of the Firm, The Wealth of Nations by Adam Smith, transaction costs, trickle-down economics, Whole Earth Catalog, X Prize, Y Combinator

In the mid-1800s, Manchester was at its peak. England grew hardly any cotton, but Manchester was called “Cottonopolis.” Bales of raw cotton came in by sea from far-off lands and were transformed by miraculous machines—combing, tight weaving, and precision dyeing—into thread, cloth, and finally clothes. Then those goods were sent off through the same channels to markets around the world. It was a glimpse of the future: global supply chains, competitive advantage, and automation made a once-unremarkable city the center of the global textile trade. Impressive as the new manufacturing machines were, the supply networks that fed them were equally important. Bigger, more efficient factories needed more and cheaper raw materials—not just cotton from Egypt and the Americas, but dyes and silk from Asia and eventually mineral resources such as iron ore and coal.

Manufacturing has now become just another “cloud service” that you can access from Web browsers, using a tiny amount of vast industrial infrastructure as and when you need it. Somebody else runs these factories; we just access them when we need them, much as we can access the huge server farms of Google or Apple to store our photos or process our e-mail. The academic way to put this is that global supply chains have become “scale-free,” able to serve the small as well as the large, the garage inventor and Samsung. The non-academic way to say it is this: nothing is stopping you from making anything. The people now control the means of production. Or, as The Lean Startup author Eric Reis puts it, Marx got it wrong: “It’s not about ownership of the means of production, anymore. It’s about rentership of the means of production.”

People should do only what they do best, he said, and trade with others who make other specialized goods. No one person or town should try to do it all, since a society can do far more collectively with an efficient division of labor—comparative advantage plus trade equals growth. What was good in the eighteenth century is even better in the twenty-first, now that specialists have access to global supply chains for their commodity input materials and global consumer markets for their niche output products. Nearly thirty years ago, two MIT professors, Michael Piore and Charles Sabel, predicted this transition in a book titled The Second Industrial Divide. They argued that the mass-production model that defined twentieth-century manufacturing economies (the “first industrial divide” between people and production) was neither inevitable nor the end of innovation in making things.


pages: 128 words: 38,187

The New Prophets of Capital by Nicole Aschoff

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3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, American Legislative Exchange Council, basic income, Bretton Woods, clean water, collective bargaining, commoditize, crony capitalism, feminist movement, follow your passion, Food sovereignty, glass ceiling, global supply chain, global value chain, helicopter parent, hiring and firing, income inequality, Khan Academy, late capitalism, Lyft, Mark Zuckerberg, mass incarceration, means of production, performance metric, profit motive, rent-seeking, Ronald Reagan, Rosa Parks, school vouchers, shareholder value, sharing economy, Silicon Valley, Slavoj Žižek, structural adjustment programs, Thomas L Friedman, Tim Cook: Apple, urban renewal, women in the workforce, working poor, zero-sum game

Global and grassroots environmental groups focused their energies on getting states, networks of states, and intergovernmental bodies like the United Nations to implement restrictions to stop companies from dumping toxic waste in streams and rivers, clear-cutting forests, and belching exhaust into the atmosphere. Over the past decade and a half, this state-centered focus has shifted to a consumer-centered focus as fears stoked by globalization have changed the frame of environmentalism. In the age of global supply chains, free trade agreements, and capital flight, states have increasingly come to be seen as incapable of protecting their citizens from big global problems like ozone depletion, climate change, and biodiversity loss, and even more tractable problems, like controlling hazardous waste flows or regulating toxic substances in consumer goods.14 But while processes of globalization have delegitimized states and made citizens feel disconnected from the protective embrace of their respective governments, they have also helped to forge new, global identities based on feelings of “world-citizenship.”15 Westerners in particular have become uneasily aware of their power as consumers in shaping and driving global value chains.

States, aside from the big players, appear weaker than ever (with less autonomy, power, authority), and their ability to tell corporations what to do is limited by their need for economic development and their membership in international bodies like the World Trade Organization that explicitly prohibit most environmental restrictions. On the flip side, transnational corporations are stronger than ever. One giant company, like Unilever or Walmart, affects millions of people around the world every day through its global supply chains. Free markets don’t exist, but maybe corporations are still the best, most sensible, way to heal the planet. They have reach, influence, and an unrivaled ability to coordinate action quickly. In Mackey’s story an enlightened corporation with a positive mission that honors all its stakeholders can heal the planet. He says that a company can create a virtuous cycle of production and consumption that will stand the test of time if it treats its suppliers, its workers, and its community and the environment right.

The probusiness environmental message of the 1987 Brundtland Report, in combination with the weakened power of states to control the actions of corporations, have pushed big environmental NGOs to change their stance toward corporations over the past decade and to focus on the marketplace as the most viable lever of change.32 As Gerald Butts, CEO of World Wildlife Fund Canada, explains about WWF’s decision to partner with Coca-Cola: We could spend fifty years lobbying seventy-five national governments to change the regulatory framework for the way these commodities are grown and produced. Or these folks at Coke could make a decision that they’re not going to purchase anything that isn’t grown or produced in a certain way—and the whole global supply chain changes overnight.33 Big environmental groups may criticize neoliberalism and transnational corporations, but these days their strategic agendas look very similar to those of companies like Whole Foods and Walmart. The state is viewed as a suspect, ineffective force, while the firm becomes the key vehicle for change. In light of these global trends, doesn’t it make sense to expand eco-business practices and scale up the Whole Foods model?


pages: 477 words: 135,607

The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger by Marc Levinson

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air freight, anti-communist, barriers to entry, Bay Area Rapid Transit, British Empire, call centre, collective bargaining, conceptual framework, David Ricardo: comparative advantage, deindustrialization, deskilling, Edward Glaeser, Erik Brynjolfsson, full employment, global supply chain, intermodal, Isaac Newton, job automation, knowledge economy, Malcom McLean invented shipping containers, manufacturing employment, Network effects, New Economic Geography, new economy, oil shock, Panamax, Port of Oakland, post-Panamax, Productivity paradox, refrigerator car, South China Sea, trade route, Works Progress Administration, Yom Kippur War, zero-sum game

A country cursed with outmoded or badly run ports is a country that faces great obstacles to finding a larger role in the world economy. If Peru were as effective at port management as Australia, the World Bank estimated, that alone would increase its foreign trade by one-quarter. If it cannot be, it will receive the maritime equivalent of branchline service on a single-track railway. The big containerships that link national economies in the global supply chain, carrying nothing but stacks of metal boxes, will pass it by.16 Global supply chains were not in anyone’s mind in the spring of 1956. Over the next half century, freight transportation developed in ways that could not have been imagined by the dignitaries watching the Ideal-X take on those first containers at Port Newark. Perhaps the most remarkable fact about the remarkable history of the box is that time and again, even the most knowledgeable experts misjudged the course of events.

A few years later it added a plant in Taiwan, along with a large cadre of Taiwanese women who sewed Barbie’s clothes in their homes. By the middle of the 1990s, Barbie’s citizenship had become even less distinct. Workers in China produced her statuesque figure, using molds from the United States and other machines from Japan and Europe. Her nylon hair was Japanese, the plastic in her body from Taiwan, the pigments American, the cotton clothing from China. Barbie, simple girl though she is, had developed her very own global supply chain.1 Supply chains like Barbie’s are a direct result of the changes wrought by the rise of container shipping. They were unheard-of back in 1956, when Malcom McLean placed his first containers on board the Ideal-X, and in 1976, when high oil prices brought sky-high freight costs that stifled the flow of world trade. Until then, vertical integration was the norm in manufacturing: a company would obtain raw materials, sometimes from its own mines or oil wells; move them to its factories, sometimes with its own trucks or ships or railroad; and put them through a series of processes to turn them into finished products.

With modern communications and container shipping, the retailer could design its own shirts and transmit the designs to a factory in Thailand, which used local labor to combine Chinese fabric made from American cotton, Malaysian buttons made from Taiwanese plastics, Japanese zippers, and decorations embroidered in Indonesia. The finished order, loaded into a 40-foot container, would be delivered in less than a month to a distribution center in Tennessee or a hyper marché in France. Global supply chains became so routine that in September 2001, when U.S. customs authorities stepped up border inspections following the terrorist attack that destroyed the World Trade Center in New York, auto plants in Michigan began shutting down within three days for lack of imported parts. The improvement in logistics shows up statistically in reduced inventory levels. Inventories are a cost: whoever owns them has had to pay for them but has yet to receive money from selling them.


pages: 327 words: 90,542

The Age of Stagnation by Satyajit Das

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9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Albert Einstein, Alfred Russel Wallace, Anton Chekhov, Asian financial crisis, banking crisis, Berlin Wall, bitcoin, Bretton Woods, BRICs, British Empire, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, disintermediation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, happiness index / gross national happiness, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, labour mobility, light touch regulation, liquidity trap, Long Term Capital Management, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, Mikhail Gorbachev, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, passive income, peak oil, peer-to-peer lending, pension reform, Plutocrats, plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Ronald Reagan, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game

By the nineteenth century, England, Spain, Portugal, the Netherlands, Italy, France, and Germany had established major colonies in Asia, Africa, and the Americas, built upon what English naturalist Alfred Russel Wallace termed “the unblushing selfishness of the greatest civilized nations.”1 The objective was to strengthen economic and political power by controlling key resources and strategic trading routes, and to deny these advantages to sovereign rivals. Over time, the colonies came to resemble modern global supply chains. In a thoroughly contemporary twist, Britain even outsourced the management of its colonies to private interests, the British East India Company. Colonialism provided access to low-cost raw materials, fueling the growth and prosperity of the Old World. It provided cheap labor, often in the form of slaves, and new markets for the products of the colonial powers. Portuguese explorer Vasco da Gama was exultant at being able to buy pepper from indigenous traders in the East Indies for 3 ducats a hundredweight, knowing it would fetch 80 ducats in Venice.

One-off events were important. The Y2K software problems fueled the development of India's software industry. The new economy was centered on China, now the world's factory, exporting around 50 percent of its output. It imported resources and parts that were then assembled or processed and shipped out again. Smaller emerging economies, especially in Asia, became integrated into new Sino-centric global supply chains. Consultant David Rothkopf highlighted the uneven balance of power within emerging markets: “Without China, the BRICs are just the BRI, a bland, soft cheese that is primarily known for the whine [sic] that goes with it…”8 China was now the largest purchaser of iron ore and other metals, and one of the biggest purchasers of cotton and soybeans. It produced more than half the world's steel and cement.

The additional earnings were not related to the creation of genuine value or increased productivity. They were the result of greater risk-taking, underwritten by the government, in institutions that were seen as too big or too important to fail. In effect, they were the beneficiaries of large, hidden transfers from other parts of society. Increased international trade, improvements in transport and information technology, and the development of global supply chains further altered the structure of labor markets, increasing inequality. Businesses in developed economies lowered costs by outsourcing labor-intensive production to low-cost locations, retaining the more profitable operations requiring higher skills. This allowed the firms to increase their earnings at the expense of workers. Cheaper goods and services and increased consumer choice came at the cost of displaced workers in developed countries.


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Earth Wars: The Battle for Global Resources by Geoff Hiscock

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Admiral Zheng, Asian financial crisis, Bakken shale, Bernie Madoff, BRICs, butterfly effect, clean water, cleantech, corporate governance, demographic dividend, Deng Xiaoping, Edward Lorenz: Chaos theory, energy security, energy transition, eurozone crisis, Exxon Valdez, flex fuel, global rebalancing, global supply chain, hydraulic fracturing, Long Term Capital Management, Malacca Straits, Masdar, mass immigration, megacity, Menlo Park, Mohammed Bouazizi, new economy, oil shale / tar sands, oil shock, Panamax, Pearl River Delta, purchasing power parity, Ralph Waldo Emerson, RAND corporation, Shenzhen was a fishing village, Silicon Valley, smart grid, South China Sea, sovereign wealth fund, special economic zone, spice trade, trade route, uranium enrichment, urban decay, working-age population, Yom Kippur War

When Molycorp hits its stride at the end of 2012, it expects to be processing 20,000 tonnes a year of oxide, in what it calls its “mines to magnets” strategy. Molycorp also owns a rare-earth processing facility in Estonia, one of only two such plants in Europe. The United States is keen to see a steady supply of strategically critical materials coming from its own mines or from friendly nations. “Diversified global supply chains and multiple sources of materials are required to manage supply risk,” the Department of Energy noted in its December 2010 report. “This means taking steps to facilitate extraction, refining and manufacturing here in the United States, as well as encouraging additional supplies around the world.”2 Industry expert Jack Lifton of Technology Metals Research says that whatever actions the United States takes, the focus must be on the security of the U.S. supply chain for rare earths, and their availability.

It is the main supplier for a variety of rare-earth elements and other scarce metals such as antimony, tungsten, mercury, carbon (graphite), and bismuth.1 That gives it enormous weight in any discussion of what happens next. The United States, Europe, Japan, and India are all big consumers of various commodities and in some cases—such as coal, conventional oil and shale oil/gas in the United States, and coal in India—have substantial supply capacity. But none will dominate global supply chains in the way that China seems likely to do, over the next 20 years. This presupposes, of course, that there is no social implosion in China that leads to a splintering of the country into coastal, hinterland, northern or southern empires. The major long-term task of the expected new team of Xi Jinping and Li Keqiang when they take over as president and premier in 2012–2013 will be to manage continued high economic growth without any further breakdown in social harmony.

Expansion of the Pilbara iron ore region in Western Australia, where BHP Billiton, Rio Tinto, Fortescue Metals Group, and Hancock Prospecting could lift combined output to almost 1 billion tonnes a year by 2020. Chinese and Japanese groups are major investors. 17. The Mount Weld rare earths mine, Western Australia. Along with Molycorp of the United States, Lynas Corp. is considered the most likely of the many rare earth miners outside China to get finished product into the global supply chain. 18. The brine-based lithium deposits of the “Lithium Triangle,” where Bolivia, Chile, and Argentina meet. Salar de Atacama in Chile is the most productive salt pan, but Bolivia has high hopes for its Salar de Uyuni. 19. The Belo Monte dam in Brazil, due for completion after 2015. Hydropower is a big contributor to Brazil’s energy mix, but Belo Monte raises environmental hackles in the same way as China’s Three Gorges Dam and the various Upper Mekong dam projects. 20.

Frugal Innovation: How to Do Better With Less by Jaideep Prabhu Navi Radjou

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3D printing, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Albert Einstein, barriers to entry, Baxter: Rethink Robotics, Bretton Woods, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, cloud computing, collaborative consumption, collaborative economy, Computer Numeric Control, connected car, corporate social responsibility, creative destruction, crowdsourcing, Elon Musk, financial exclusion, financial innovation, global supply chain, income inequality, industrial robot, intangible asset, Internet of things, job satisfaction, Khan Academy, Kickstarter, late fees, Lean Startup, low cost carrier, M-Pesa, Mahatma Gandhi, megacity, minimum viable product, more computing power than Apollo, new economy, payday loans, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, precision agriculture, race to the bottom, reshoring, ride hailing / ride sharing, risk tolerance, Ronald Coase, self-driving car, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, six sigma, smart grid, smart meter, software as a service, Steve Jobs, supply-chain management, TaskRabbit, The Fortune at the Bottom of the Pyramid, The Nature of the Firm, transaction costs, unbanked and underbanked, underbanked, women in the workforce, X Prize, yield management, Zipcar

Bayer Technology Services, which is part of Bayer, is leading a consortium of 25 corporate and academic partners from nine European countries to accelerate the development and adoption of modular F3 factories in the chemical industry. Adapt R&D R&D engineers also need to take full advantage of digitised and flexible supply chain assets and processes when designing products. Three conditions should be in place: Products must be factory-agnostic; in other words, it should be possible to produce them in any factory in the manufacturer’s global supply chain. For instance, John Deere, a US agricultural and construction machinery manufacturer, has an operating model, Design Anywhere Build Anywhere (DABA), which allows it to shift production quickly and seamlessly from one factory to another, depending on relative capacity. R&D should use fewer, more standard components so they can be assembled faster on the shop floor. R&D should adopt techniques such as modular design and design for postponement so that products can be mass customised cost-effectively, either at the factory or at the point of distribution (or, even better, at the point of consumption).

One successful example is La Ruche qui dit Oui (The Hive that says Yes), a French online marketplace for local, sustainable food producers targeting mainstream consumers. La Ruche’s nationwide network of over 500 “hives” brings together a critical mass of local customers, giving them direct access to locally produced fresh, seasonal and ecofriendly foods. By cutting out the middleman, La Ruche’s network connects 50,000 members directly to over 2,500 small farmers. Large corporations and big-box retailers run global supply chains that deliver economies of scale that are increasingly unsustainable (such as selling bananas all year around). Collective buying platforms, by contrast, focus on large-scale localisation by supporting small-circuit supply chains that reduce time and distance between production and consumption, and are thus more sustainable environmentally, financially and socio-economically. Crowdfunding platforms that finance new ventures Platforms like Kickstarter, Indiegogo or KissKissBankBank enable lone inventors to raise funds to start and scale up an enterprise.

., Caterpillar to Expand Manufacturing and Increase Employment in the United States with New Hydraulic Excavator Facility in Victoria, Texas, Caterpillar press release, August 12th 2010. 7Wong, H., Potter, A. and Naim, M., “Evaluation of postponement in the soluble coffee supply chain: A case study”, International Journal of Production Economics, Vol. 131, Issue 1, May 2011, pp. 355–64. 8O’Marah, K., chief content officer, SCM World, and senior research fellow at Stanford Global Supply Chain Management Forum, interview with Navi Radjou, March 11th 2014. 9Beasty, C., “The Chain Gang”, Destination CRM, October 2007. 10Morieux, Y., “As work gets more complex, 6 rules to simplify”, TED Talk, October 2013. 11Lopez, M., CEO, Lopez Research, interview with Navi Radjou, March 28th 2014. 12O’Connell, A., “Lego CEO Jørgen Vig Knudstorp on leading through survival and growth”, Harvard Business Review, January 2009. 13“The Return to Apple”, All About Steve Jobs: http://allaboutstevejobs.com/bio/longbio/longbio_08.php. 14O’Connell, op. cit. 15Francis, S., CEO, Flock Associates, and former head of Aegis Europe, interview with Jaideep Prabhu, January 27th 2014. 16This case study is adapted from an original version that appeared in French in L’Innovation Jugaad, published by Diateino in 2013.


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Doughnut Economics: Seven Ways to Think Like a 21st-Century Economist by Kate Raworth

3D printing, Asian financial crisis, bank run, basic income, battle of ideas, Berlin Wall, bitcoin, blockchain, Branko Milanovic, Bretton Woods, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, clean water, cognitive bias, collapse of Lehman Brothers, complexity theory, creative destruction, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, David Ricardo: comparative advantage, dematerialisation, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, energy transition, Erik Brynjolfsson, ethereum blockchain, Eugene Fama: efficient market hypothesis, experimental economics, Exxon Valdez, Fall of the Berlin Wall, financial deregulation, Financial Instability Hypothesis, full employment, global supply chain, global village, Henri Poincaré, hiring and firing, Howard Zinn, Hyman Minsky, income inequality, Intergovernmental Panel on Climate Change (IPCC), invention of writing, invisible hand, Isaac Newton, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, land reform, land value tax, Landlord’s Game, loss aversion, low skilled workers, M-Pesa, Mahatma Gandhi, market fundamentalism, Martin Wolf, means of production, megacity, mobile money, Mont Pelerin Society, Myron Scholes, neoliberal agenda, Network effects, Occupy movement, off grid, offshore financial centre, oil shale / tar sands, out of africa, Paul Samuelson, peer-to-peer, planetary scale, price mechanism, quantitative easing, randomized controlled trial, Richard Thaler, Ronald Reagan, Second Machine Age, secular stagnation, shareholder value, sharing economy, Silicon Valley, Simon Kuznets, smart cities, smart meter, South Sea Bubble, statistical model, Steve Ballmer, The Chicago School, The Great Moderation, the map is not the territory, the market place, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas Malthus, Thorstein Veblen, too big to fail, Torches of Freedom, trickle-down economics, ultimatum game, universal basic income, Upton Sinclair, Vilfredo Pareto, wikimedia commons

I then hopped to the very different island of Manhattan, spending four years at the United Nations on the team writing the annual flagship Human Development Report, while witnessing barefaced power games block progress in international negotiations. I left to fulfil a long-held ambition and worked with Oxfam for over a decade. There I witnessed the precarious existences of women – from Bangladesh to Birmingham – employed at the sharp end of global supply chains. We lobbied to change the rigged rules and double standards governing international trade rules. And I explored the human-rights implications of climate change, meeting farmers from India to Zambia whose fields had been turned to bare earth because the rains had never come. Then I became a mother – of twins, to boot – and spent a year on maternity leave, immersed in the bare-bum economy of raising infants.

Thanks to the scale of global income inequality, responsibility for global greenhouse gas emissions is highly skewed: the top 10% of emitters – think of them as the global carbonistas living on every continent – generate around 45% of global emissions, while the bottom 50% of people contribute only 13%.43 Food consumption is deeply skewed too. Around 13% of people worldwide are malnourished. How much food would it take to meet their caloric needs? Just 3% of the global food supply. To put that in context, 30%–50% of the world’s food gets lost post-harvest, wasted in global supply chains, or scraped off dinner plates and into kitchen bins.44 Hunger could, in effect, be ended with just 10% of the food that never gets eaten. From these examples it is clear that getting into the Doughnut calls for a far more equitable distribution of humanity’s use of resources. A third factor is aspiration: whatever people consider necessary for a good life. And one of the biggest influences on our aspirations is how and where we live.

London: Allen Lane, p. 136. 44. Acemoglu, D. and Robinson, J. (2013) Why Nations Fail: The Origins of Power, Prosperity and Poverty. London: Profile Books. 45. Goodman, P. (2008) ‘Taking a hard new look at Greenspan legacy’, New York Times, 8 October 2008. http://www.nytimes.com/2008/10/09/business/economy/09greenspan.html?pagewanted=all 46. Raworth, K. (2002) Trading Away Our Rights: women workers in global supply chains. Oxford: Oxfam International. 47. Chang, H-J. (2010) 23 Things They Don’t Tell You About Capitalism, London: Allen Lane. 48. Ferguson, T. (1995) Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems. London: University of Chicago Press, p. 8. 49. BBC News 2 April 2014. ‘US Supreme Court strikes down overall donor limits’. http://www.bbc.co.uk/news/world-us-canada-26855657 50.


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The Great Surge: The Ascent of the Developing World by Steven Radelet

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Admiral Zheng, agricultural Revolution, Asian financial crisis, bank run, Berlin Wall, Branko Milanovic, business climate, business process, call centre, Capital in the Twenty-First Century by Thomas Piketty, clean water, colonial rule, creative destruction, demographic dividend, Deng Xiaoping, Dissolution of the Soviet Union, Doha Development Round, Erik Brynjolfsson, European colonialism, F. W. de Klerk, failed state, Francis Fukuyama: the end of history, Gini coefficient, global supply chain, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), invention of the steam engine, James Watt: steam engine, John Snow's cholera map, Joseph Schumpeter, Kenneth Arrow, land reform, low skilled workers, M-Pesa, megacity, Mikhail Gorbachev, off grid, oil shock, out of africa, purchasing power parity, race to the bottom, randomized controlled trial, Robert Gordon, Second Machine Age, secular stagnation, Simon Kuznets, South China Sea, special economic zone, Steven Pinker, The Wealth of Nations by Adam Smith, Thomas Malthus, trade route, women in the workforce, working poor

• The fastest-growing region for mobile broadband penetration is Africa, which leapt from 2 percent penetration in 2010 to 20 percent in 2014.5 THE GLOBALIZATION OF TRADE AND FINANCE—AND VACCINES When working well, global integration provides families and businesses in developing countries with more choices, options, and opportunities for progress. For poor people living on subsistence incomes, the availability of cheaper goods boosts their effective income. Whatever income they have goes further. At the same time, integration creates new markets for exports that can accelerate growth and raise incomes. Global supply chains allow firms to specialize more narrowly, build expertise in specific areas, and sell goods and services into larger global markets, all of which helps create jobs. Telecommunications technologies allow developing countries to provide services—such as backroom accounting or call centers—that didn’t exist a few decades ago. Integration of capital markets allows firms to attract financing from abroad that they might not find at home.

Similarly, horticulture producers in Uganda and Kenya rely on air transportation to fly fresh-cut flowers grown in greenhouses located near their airports to markets in Europe, where the flowers can be sold on the streets the next morning. FIGURE 7.3: AIR TRAVEL IS MUCH CHEAPER Real Cost per Mile in the United Sates Source: “Annual Round-Trip Fares and Fees: Domestic,” Airlines for America. More important, cheaper airfares mean that people can move much more easily, and with them ideas and knowledge. Global supply chains benefit from managers and engineers connecting on the internet and by cell phones, but also from the ease with which people can move from one city to the next for planning and problem solving. Businesses are much more connected and integrated because people can move so easily. Inexpensive airfares also have been crucial to the growth of tourism. It took Theodore Roosevelt four weeks to get to Kenya to begin his famous safari for the Smithsonian Institution in 1909.

These investments will become even more important in the face of climate change and other environmental stresses that threaten to reduce agricultural productivity in the future. More extensive trade, and the skills and technologies that come with it, will continue to be a major driver of growth in the decades to come. In a more globalized world, businesses in developing countries will look for opportunities to specialize, find niche markets, and integrate themselves into global supply chains. Financial and insurance markets need further development, since access to finance remains a major constraint for many businesses, especially small ones. In many countries, considerable scope remains for reducing tariff and other trade restrictions. In others, limited amounts of protection may be helpful in some circumstances, especially if tariffs are time limited and applied in sectors where firms can become competitive quickly.


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The Story of Stuff: The Impact of Overconsumption on the Planet, Our Communities, and Our Health-And How We Can Make It Better by Annie Leonard

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air freight, banking crisis, big-box store, blood diamonds, Bretton Woods, California gold rush, carbon footprint, clean water, Community Supported Agriculture, dematerialisation, employer provided health coverage, energy security, European colonialism, Firefox, Food sovereignty, Ford paid five dollars a day, full employment, global supply chain, income inequality, Indoor air pollution, intermodal, Jeff Bezos, job satisfaction, liberation theology, McMansion, new economy, oil shale / tar sands, peak oil, Ralph Nader, renewable energy credits, Silicon Valley, special economic zone, supply-chain management, the built environment, trade liberalization, trickle-down economics, union organizing, Wall-E, Whole Earth Review, Zipcar

They haven’t yet completed their analyses on the health and environmental impacts of electronics from several years ago, and a new crop of products has already been introduced.55 On top of that, what makes telling the full story truly impossible is the secrecy the industry mandates, claiming their processes and materials are proprietary. That mentality is reflected in the title of a book by former Intel CEO Andy Grove: Only the Paranoid Survive.56 It is impossible to know the exact locations where all the components of a laptop were drilled for, mined, or made, because of the increasingly complex supply chain of the electronics industry, which the UN reports has the most globalized supply chain of all industries.57 But we do know that all the problematic mining practices described in the chapter on extraction—for gold and tantalum, as well as copper, aluminum, lead, zinc, nickel, tin, silver, iron, mercury, cobalt, arsenic, cadmium, and chromium—are involved. The brand name company—Dell, HP, IBM, Apple, etc.—may have little immediate knowledge of, or even control over, how materials are derived or components are made, because these companies outsource to hundreds of other companies all over the world that provide and assemble the pieces.

But ultimately, we must remember—as Allegheny College political science professor Michael Maniates says—the choices available to us as consumers are limited and predetermined by forces outside the shopping market. Those forces can best be changed through social and political activism.20 Trucks and Container Ships and Planes, Oh My! Ships, trucks, roads, planes, and trains are needed to move Stuff along this globalized supply chain. The transportation infrastructure consumes enormous quantities of fossil fuels and spews out waste, but these are some of the most hidden of externalized costs in consumer goods, and most people are completely unaware of them. Even those shoppers who are aware of the source of the materials in products, the ones who know to ask whether diamonds fueled violence in Africa or whether the cotton fields in Turkey used pesticides, rarely know what to ask about how goods are transported.

United Parcel Service, or UPS, has launched trucks with hydraulic hybrid technology that are supposed to “increase fuel efficiency by 60–70% in urban use and lowers greenhouse gas emissions by 40%, compared to UPS’s conventional diesel delivery trucks.”41 Not to be outdone, FedEx has peppered its fleet with hybrid electric vehicles that decrease particulate emissions by 96 percent and go 57 percent farther on a gallon of fuel than a conventional FedEx truck, reducing fuel costs by more than one-third.42 DHL has launched its own version of carbon offsets, offering customers the ability to tack on a 3 percent extra fee that DHL promises to invest in “green projects like vehicle technology, solar panels and reforestation.”43 Nice as those efforts sound, they don’t get to the crux of the problem, which is this set of massive global supply chains (as long as ten thousand miles, according to some experts44), the consumer demand for more cheap Stuff delivered faster and faster, and the economic rules governing the whole show, which make it more profitable to make Stuff on the other side of the planet than close to home. With all of the above in mind, let’s look at the retail distribution of the same three items we zeroed in on last chapter.


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The Great Convergence: Information Technology and the New Globalization by Richard Baldwin

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3D printing, additive manufacturing, Admiral Zheng, agricultural Revolution, air freight, Amazon Mechanical Turk, Berlin Wall, bilateral investment treaty, Branko Milanovic, buy low sell high, call centre, Columbian Exchange, commoditize, Commodity Super-Cycle, David Ricardo: comparative advantage, deindustrialization, domestication of the camel, Edward Glaeser, endogenous growth, Erik Brynjolfsson, financial intermediation, George Gilder, global supply chain, global value chain, Henri Poincaré, imperial preference, industrial cluster, industrial robot, intangible asset, invention of agriculture, invention of the telegraph, investor state dispute settlement, Isaac Newton, Islamic Golden Age, James Dyson, knowledge economy, knowledge worker, Lao Tzu, low skilled workers, market fragmentation, mass immigration, Metcalfe’s law, New Economic Geography, out of africa, paper trading, Paul Samuelson, Pax Mongolica, profit motive, rent-seeking, reshoring, Richard Florida, rising living standards, Robert Metcalfe, Second Machine Age, Simon Kuznets, Skype, Snapchat, Stephen Hawking, telepresence, telerobotics, The Wealth of Nations by Adam Smith, trade liberalization, trade route, Washington Consensus

In particular, the pre-and post-service jobs tend to go to (or stay in) cities in G7 nations. This smile curve is also consistent with the trend called “servicification” of manufacturing since the total value being added in what looks like the manufacturing sector (the fabrication stages) is falling while the value being added in what look like service sectors is rising. SOURCE: Baldwin, “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going,” Centre for Economic Policy Research, Discussion Paper No. 9103, August 2012. Figure 18. Today, most Apple products are designed in California and Apple handles the marketing, distribution, after-sales service, and many add-on services via its App Store, iTunes, etc. The fabrication stages, by contrast, are mostly done in China and organized by unrelated companies like Foxconn.

Someone has to be in charge of getting each task done, so the next level is “occupations,” defined as the individual workers performing the task (often with the help of machinery). In most production processes, workers are placed close to other workers, which defines the third natural grouping: stages. In most cases, the second unbundling (which is to say offshoring) concerns stages of production, not occupations or tasks. SOURCE: Richard Baldwin, “Global Supply Chains: Why They Emerged, Why They Matter, and Where They Are Going,” in Global Value Chains in a Changing World, ed. Deborah K. Elms and Patrick Low (Geneva: World Trade Organization, 2013). Figure 11. The Specialization versus Coordination Tradeoff Deciding how to organize production is impossibly complex in the real world—that is, in the world of Mein Herr’s one-mile-to-the-mile-map world.

It seems likely, therefore, that the cost of moving ideas internationally will continue to fall. Communication Technology (CT), however, is only one half of the ICT revolution. The other half concerns Information Technology (IT). As the discussion about production unbundling in Chapter 6 makes clear, both IT and CT affect the course of offshoring, but they work in opposite directions. When thinking about the future of global supply chains, we must speculate about the possibility of truly revolutionary IT developments. One such possible development relates to computer-integrated manufacturing (CIM). This is not futurology. It has already had a big impact. It has already produced a tectonic shift in manufacturing in high-wage nations—moving manufacturing from a situation where machines helped workers make things to a situation where workers help machines make things.


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GDP: A Brief but Affectionate History by Diane Coyle

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Asian financial crisis, Berlin Wall, big-box store, Bretton Woods, BRICs, clean water, computer age, conceptual framework, crowdsourcing, Diane Coyle, double entry bookkeeping, en.wikipedia.org, endogenous growth, Erik Brynjolfsson, Fall of the Berlin Wall, falling living standards, financial intermediation, global supply chain, happiness index / gross national happiness, income inequality, income per capita, informal economy, John von Neumann, Kevin Kelly, Long Term Capital Management, mutually assured destruction, Nathan Meyer Rothschild: antibiotics, new economy, Occupy movement, purchasing power parity, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, Silicon Valley, Simon Kuznets, The Wealth of Nations by Adam Smith, Thorstein Veblen, University of East Anglia, working-age population

Achieving a higher standard of living with fewer demands on natural and labor resources will help ease price pressures and continue this decade’s good news on inflation,” wrote the Dallas Fed’s economists in 1998.4 The promises of “mass customization” they dangled before their readers’ eyes in 1998 are coming to pass, including TV shows on demand so viewers, not schedulers, determine the evening’s viewing; or clothing made-to-measure for the midmarket many, not just the wealthy few. Separate statistical headaches arise from the increasing complexity of the economy, due to the fact that most goods are now “made” in global supply chains. The components will be manufactured in a number of countries, shipped around the world to be assembled in one place, and shipped back out to their destination markets. This is true of goods as apparently simple as a shirt or as sophisticated as an iPhone.5 China, of course, has been the main country of assembly in these global chains, but other Asian countries and their Latin American competitors Brazil and Mexico have been gaining ground.

See financial intermediation services indirectly measured Fitoussi, Jean-Paul, 118, 139 Fleming, Alexander, 63 Ford, Henry, 45 France, 8–9, 103 Frank, Robert, 112 free market ideology, 93 Friedman, Thomas, 95–96 Gagarin, Yuri, 47 Geary-Khamis dollars, 52 Genuine Progress Indicator (GPI), 116, 137 Georgiou, Andreas, 1–2, 4 Germany, 17, 41–42, 71 Ghana, 32, 53, 94, 107 Gilbert, Milton, 15, 50 globalization, 93–94 global supply chains, 125 Golden Age, 43, 56 Gosplan, 29 government expenditures (G), 27–29 government role in economy, 14–17, 19–21, 23, 63–66, 77–78. See also fiscal policy; monetary policy; policy and politics government services, 38–39 Great Depression, 12–13, 119, 121 Greece, 1–5, 72, 73, 138 Greenspan, Alan, 83, 88, 94, 102 Gross Domestic Product (GDP): adjustments and reforms of, 92, 117, 136–38; availability of country data on, 78; calculation issues in, 2, 32–34, 52–54; circular flow model of, 26–27, 27f, 57, 63; complexity of, 24–25, 28–31; concept of, 4–5, 24–31 (see also purpose and meanings of); country comparisons of, 42; criticisms of, 5, 14, 104, 110–11; future of, 121–40; GNP vs., 25; “gross” component of, 25, 30; HDI correlated with, 73–74; importance of, 1–6, 42, 135–36; information gathering for, 33, 37, 51–53, 137–38; international comparisons of, 48–57; issues facing, 121–35; loans influenced by, 3; origins of, 7, 16–18, 119–20; postwar, 43–45, 43t, 62–63; purpose and meanings of, 5–6, 92, 121, 136, 138–40 (see also concept of); recommendations concerning, 136–40; revisions of, 36; spending-income relationship in, 30, 33–34; statistical patterns in, 3; well-being and welfare correlated with, 111, 117, 136; well-being and welfare not measured by, 5, 14, 40, 91–92, 111–14, 124–25, 136, 140 Gross National Product (GNP), 15–16, 25, 115–16 Guevara, Che, 68 Haldane, Andrew, 99, 101 happiness, 5, 6, 110–13, 136, 137.


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The Global Auction: The Broken Promises of Education, Jobs, and Incomes by Phillip Brown, Hugh Lauder, David Ashton

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active measures, affirmative action, barriers to entry, Branko Milanovic, BRICs, business process, business process outsourcing, call centre, collective bargaining, corporate governance, creative destruction, credit crunch, David Ricardo: comparative advantage, deindustrialization, deskilling, Frederick Winslow Taylor, full employment, future of work, glass ceiling, global supply chain, immigration reform, income inequality, industrial cluster, industrial robot, intangible asset, job automation, Joseph Schumpeter, knowledge economy, knowledge worker, labour market flexibility, low skilled workers, manufacturing employment, market bubble, market design, neoliberal agenda, new economy, Paul Samuelson, pensions crisis, post-industrial society, profit maximization, purchasing power parity, QWERTY keyboard, race to the bottom, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, sovereign wealth fund, stem cell, The Bell Curve by Richard Herrnstein and Charles Murray, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, transaction costs, trickle-down economics, winner-take-all economy, working poor, zero-sum game

Take one of the major North American producers of mobile phones that started with basic manufacturing in China but, realizing the potential, rapidly moved their Chinese operations up the value chain to include designing both hardware and software. The company now has over 3,000 research engineers working in China who design and develop products for the global marketplace. We were told how the company had initially invested in manufacturing as part of plans to expand its global supply chain, but when senior American executives realized there were many talented engineers, they rapidly moved into leading-edge R&D. A Chinese manager based in Beijing observed how they moved from “coding work” and “customization” to research “fundamental architecture development, so we’ve created a lot of IPR [intellectual property rights] here in China.” The speed at which transnational companies included China in their blue-skies research that may not have immediate commercial application can also be seen from the example of a major Korean electronics company.

These initiatives are intended to create a better system of checks and balances that recognizes the legitimate claims of all stakeholders—employees, managers, consumer, shareholders, and local communities—that must tackle the way companies excessively profit from the global auction at the expense of working families. There are other possibilities such as that proposed by Barry Lynn, where antitrust laws could be used so that no corporation controls more than a quarter of the American market. The sourcing of goods in the global supply chain could also be limited to only a quarter of products from any one country, which could lead to greater openness in the global economy with workers in many countries being able to gain from it.24 Justice: Beyond Human Capital A new bargain is also more than a matter of equalizing opportunities to join occupational elites even if, as we’ve argued, moving toward a level playing field in the competition for a livelihood is a key policy goal.


pages: 603 words: 182,781

Aerotropolis by John D. Kasarda, Greg Lindsay

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3D printing, air freight, airline deregulation, airport security, Akira Okazaki, Asian financial crisis, back-to-the-land, barriers to entry, Berlin Wall, big-box store, blood diamonds, borderless world, British Empire, call centre, carbon footprint, Cesare Marchetti: Marchetti’s constant, Clayton Christensen, cleantech, cognitive dissonance, commoditize, conceptual framework, credit crunch, David Brooks, David Ricardo: comparative advantage, Deng Xiaoping, deskilling, digital map, edge city, Edward Glaeser, failed state, food miles, Ford paid five dollars a day, Frank Gehry, fudge factor, full employment, future of work, Geoffrey West, Santa Fe Institute, George Gilder, global supply chain, global village, gravity well, Haber-Bosch Process, Hernando de Soto, hive mind, if you build it, they will come, illegal immigration, inflight wifi, intangible asset, interchangeable parts, Intergovernmental Panel on Climate Change (IPCC), intermodal, invention of the telephone, inventory management, invisible hand, Jane Jacobs, Jeff Bezos, Kangaroo Route, knowledge worker, kremlinology, labour mobility, Marchetti’s constant, Marshall McLuhan, Masdar, mass immigration, McMansion, megacity, Menlo Park, microcredit, Network effects, New Economic Geography, new economy, New Urbanism, oil shale / tar sands, oil shock, peak oil, Pearl River Delta, Peter Thiel, pets.com, pink-collar, pre–internet, RFID, Richard Florida, Ronald Coase, Ronald Reagan, Rubik’s Cube, savings glut, Seaside, Florida, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, spinning jenny, stem cell, Steve Jobs, supply-chain management, sustainable-tourism, telepresence, the built environment, The Chicago School, The Death and Life of Great American Cities, The Nature of the Firm, thinkpad, Thomas L Friedman, Thomas Malthus, Tony Hsieh, trade route, transcontinental railway, transit-oriented development, traveling salesman, trickle-down economics, upwardly mobile, urban planning, urban renewal, urban sprawl, walkable city, white flight, white picket fence, Yogi Berra, zero-sum game

It’s the urban embodiment of an evolution from warehousing to distribution to logistics that took less than twenty years and saw it rise from a necessary evil to the front lines in an eternal war on costs and the competition. You can trace the shift in this thinking through title inflation, a local consultant explained. “When I started in the mid-eighties it was the ‘warehouse manager,’ ” he said. “Then it was the ‘assistant manager of logistics.’ Today, it’s the ‘SVP for global supply chain,’ and he might sit on the board of directors.” He or she likely sits on the boards of companies that decided they were better at logistics than anything else, such as Walmart, which achieves “everyday low prices” with a pythonlike squeeze on its suppliers. Everyone else, it seems, moved to Memphis or Louisville to let FedEx and UPS handle it for them. But the flowering of the distribution center carried unforeseen consequences for both cities.

Neither a Chinese nor an American company, Lenovo is managed by tag teams of executives dispersed throughout the world. No one has ever tried to run a $16 billion company on Skype calls, e-mail, and the occa-sional Paris rendezvous until now. The company calls this “worldsourcing.” “It’s about leveraging the best people, processes, and costs, no matter where they’re located,” says Gerry Smith, the American running its global supply chain from Singapore. “I have staff in Shenzhen, Raleigh, Baddi [India], and Brazil. I’m a lonely figure in Singapore. I’m here because I have the best airport in the world; we don’t need a brick-and-mortar headquarters to make decisions.” Neither does anyone else. Consultancies like McKinsey and Accenture have long since jettisoned theirs, and scores of multinationals act like they already have.

While Kasarda was still a student in 1968, he advanced the heretical idea that the size and reach of international trade and multinational firms had already surpassed the ability of any one nation to control them. The balance of power had been reversed; from now on, corporations would dictate the terms. Today, this is so patently true we have Tom Friedman’s “Dell Theory of Conflict Prevention,” which presupposes that no two countries with pieces of the same global supply chain—such as China, Taiwan, and Dell’s—will ever tempt economic suicide by warring. One of the main drivers behind the rise of multinationals and what Vernon called “globalism” was air travel, which “shrank the Atlantic crossing from four days to seven hours,” he wrote. “It turned transatlantic tourism from a rich man’s indulgence into a middle-class need. It opened up the possibility for international consultations on a day-to-day basis not only between the officials of governments but also between the engineers, controllers, salesmen and strategists of private firms.”


pages: 459 words: 103,153

Adapt: Why Success Always Starts With Failure by Tim Harford

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Andrew Wiles, banking crisis, Basel III, Berlin Wall, Bernie Madoff, Black Swan, car-free, carbon footprint, Cass Sunstein, charter city, Clayton Christensen, clean water, cloud computing, cognitive dissonance, complexity theory, corporate governance, correlation does not imply causation, creative destruction, credit crunch, Credit Default Swap, crowdsourcing, cuban missile crisis, Daniel Kahneman / Amos Tversky, Dava Sobel, Deep Water Horizon, Deng Xiaoping, double entry bookkeeping, Edmond Halley, en.wikipedia.org, Erik Brynjolfsson, experimental subject, Fall of the Berlin Wall, Fermat's Last Theorem, Firefox, food miles, Gerolamo Cardano, global supply chain, Intergovernmental Panel on Climate Change (IPCC), Isaac Newton, Jane Jacobs, Jarndyce and Jarndyce, Jarndyce and Jarndyce, John Harrison: Longitude, knowledge worker, loose coupling, Martin Wolf, mass immigration, Menlo Park, Mikhail Gorbachev, mutually assured destruction, Netflix Prize, New Urbanism, Nick Leeson, PageRank, Piper Alpha, profit motive, Richard Florida, Richard Thaler, rolodex, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, South China Sea, special economic zone, spectrum auction, Steve Jobs, supply-chain management, the market place, The Wisdom of Crowds, too big to fail, trade route, Tyler Cowen: Great Stagnation, web application, X Prize, zero-sum game

Despite his Herculean efforts to duplicate the technology, Thomas Thwaites’s toaster looks more like a toaster-shaped birthday cake than a real toaster, its coating dripping and oozing like an icing job gone wrong. ‘It warms bread when I plug it into a battery,’ he told me, brightly. ‘But I’m not sure what will happen if I plug it into the mains.’ Eventually, he summoned up the courage to do so. Two seconds later, the toaster was toast. 2 Problem solving in a complicated world The modern world is mind-bogglingly complicated. Far simpler objects than a toaster involve global supply chains and the coordinated efforts of many individuals, scattered across the world. Many do not even know the final destination of their efforts. As a lumberjack fells a giant of the Canadian forest, he doesn’t know whether the tree he topples will make bed frames or pencils. At the vast Chuquicamata mine in Chile, a yellow truck the size of a house growls up an incline blasted into the landscape; the driver does not trouble himself to ask whether the copper ore he carries is destined for the wiring of a toaster or the casing of a bullet.

Orgel’s law tells us that economic evolution, with the playing field tilted by the new rule, ‘Greenhouse gases are expensive’, will produce entirely unexpected ways to reduce greenhouse gases. It’s probably a safe bet that cars would become more efficient, buildings would be built with more insulation and passive heating and cooling systems, and that we’d see more use of technologies such as nuclear, hydroelectric and even ‘carbon capture’ – preventing carbon dioxide emerging from a coal-fired power station. But what other changes we might see, who knows? Global supply chains might be reconfigured. Hundreds of millions of people might move to places where the climate or the geography allows a more energy-efficient lifestyle. Or world-saving ideas could emerge from even more unexpected sources. If there was some way to reduce the methane being belched out by cows and sheep – almost a tenth of the total contribution to greenhouse gas emissions – then that would be a huge achievement.


pages: 116 words: 32,712

Making a Killing: The Deadly Implications of the Counterfeit Drug Trade by Roger Bate

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global supply chain, interchangeable parts, RFID, supply-chain management

Individual pharmaceutical firms have also taken steps to resist counterfeit drugs. Many have begun to implement track-and-trace technology on their drugs to provide an effective “e-pedigree” to distributors and consumers. Some have experimented with using radio frequency identification (RFID) technology to check the e-pedigrees of drug shipments, although, in the United States, this is not yet required by the FDA.101 To help secure the complex, vulnerable global supply chain, many drug companies have implemented their own security measures. Pfizer announced in December 2003 that all distributors in the United States selling its products would have to purchase them directly from the company or from selected wholesalers.102 In September 2006, Pfizer announced that it would cease selling drugs to eighteen wholesalers in the United Kingdom and instead distribute drugs there only through UniChem.103 These moves are attempts to cut down the size of the secondary wholesale market, which includes sales among wholesalers.104 Other pharmaceutical firms will need to secure their own supply chains and alert the public when they become aware of counterfeit drugs.


pages: 118 words: 35,663

Smart Machines: IBM's Watson and the Era of Cognitive Computing (Columbia Business School Publishing) by John E. Kelly Iii

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AI winter, call centre, carbon footprint, crowdsourcing, demand response, discovery of DNA, Erik Brynjolfsson, future of work, Geoffrey West, Santa Fe Institute, global supply chain, Internet of things, John von Neumann, Mars Rover, natural language processing, optical character recognition, pattern recognition, planetary scale, RAND corporation, RFID, Richard Feynman, Richard Feynman, smart grid, smart meter, speech recognition, Turing test, Von Neumann architecture, Watson beat the top human players on Jeopardy!

VARIETY Over the past decade or so, computer scientists and mathematicians have become quite proficient at handling specific types of data by using specialized tools that do one thing very well. For example, a sales manager can employ data analytics software to reveal past sales trends and forecast future sales, using a specific tool for a specific data type. But that approach doesn’t work for complex operational challenges such as managing cities, global supply chains, or power grids, where many interdependencies exist and many different kinds of data have to be taken into consideration. What’s required is a holistic approach to data management and analysis. You have to be able to mash together different kinds of data and act on them with different kinds of tools. An early example of this approach is a project that IBM researchers in New York and Brazil completed on behalf of the city of Rio de Janeiro.


pages: 443 words: 112,800

The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World by Jeremy Rifkin

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3D printing, additive manufacturing, Albert Einstein, barriers to entry, borderless world, carbon footprint, centre right, collaborative consumption, collaborative economy, Community Supported Agriculture, corporate governance, decarbonisation, distributed generation, en.wikipedia.org, energy security, energy transition, global supply chain, hydrogen economy, income inequality, industrial cluster, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Isaac Newton, job automation, knowledge economy, manufacturing employment, marginal employment, Martin Wolf, Masdar, megacity, Mikhail Gorbachev, new economy, off grid, oil shale / tar sands, oil shock, open borders, peak oil, Ponzi scheme, post-oil, purchasing power parity, Ray Kurzweil, Ronald Reagan, Silicon Valley, Simon Kuznets, Skype, smart grid, smart meter, Spread Networks laid a new fibre optics cable between New York and Chicago, supply-chain management, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, too big to fail, transaction costs, trickle-down economics, urban planning, urban renewal, Yom Kippur War, Zipcar

The next day the New York Times and other newspapers around the county recounted what had happened in Boston, dubbing the event “The Boston Oil Party of 1973.”2 THE ENDGAME FOR THE SECOND INDUSTRIAL REVOLUTION Thirty-five years later in July 2008, the price of oil on the world market peaked at a record $147 per barrel.3 Just seven years earlier, oil was selling at under $24 per barrel.4 In 2001, I suggested that an oil crisis was in the making and that the price of oil might tip over $50 per barrel within a few short years. My comments were greeted with widespread skepticism and even derision. “Not in our lifetime” came the retort from the oil industry, as well as most geologists and economists. Shortly thereafter, the price of oil dramatically rose. When the price went over $70 per barrel in mid-2007, the price of products and services across the entire global supply chain began to rise as well, for the simple reason that virtually every commercial activity in our global economy is dependent on oil and other fossil fuel energies.5 We grow our food in petrochemical fertilizers and pesticides. Most of our construction materials—cement, plastics, and so on—are made of fossil fuels, as are most of our pharmaceutical products. Our clothes, for the most part, are made from petrochemical synthetic fibers.

Millions of people all over the world were more than happy to provide the goods and produce the services in return for our dollars. The global buying spree and the dramatic rise in aggregate output that accompanied it pushed up the demand for an ever-dwindling oil supply, resulting in a steep increase in prices on world markets. The sharp acceleration in the price of oil triggered price hikes across the global supply chain for everything from grain to gasoline, finally leading to a worldwide collapse of purchasing power when oil hit a record $147 per barrel in July 2008. Sixty days later, the banking community, awash in unpaid loans, shut off credit; the stock market crashed, and globalization came to a standstill. The upshot of eighteen years of living off extended credit is that the United States is now a failed economy.


pages: 565 words: 151,129

The Zero Marginal Cost Society: The Internet of Things, the Collaborative Commons, and the Eclipse of Capitalism by Jeremy Rifkin

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3D printing, active measures, additive manufacturing, Airbnb, autonomous vehicles, back-to-the-land, big-box store, bioinformatics, bitcoin, business process, Chris Urmson, clean water, cleantech, cloud computing, collaborative consumption, collaborative economy, Community Supported Agriculture, Computer Numeric Control, computer vision, crowdsourcing, demographic transition, distributed generation, en.wikipedia.org, Frederick Winslow Taylor, global supply chain, global village, Hacker Ethic, industrial robot, informal economy, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invisible hand, Isaac Newton, James Watt: steam engine, job automation, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Julian Assange, Kickstarter, knowledge worker, labour mobility, Mahatma Gandhi, manufacturing employment, Mark Zuckerberg, market design, mass immigration, means of production, meta analysis, meta-analysis, natural language processing, new economy, New Urbanism, nuclear winter, Occupy movement, off grid, oil shale / tar sands, pattern recognition, peer-to-peer, peer-to-peer lending, personalized medicine, phenotype, planetary scale, price discrimination, profit motive, QR code, RAND corporation, randomized controlled trial, Ray Kurzweil, RFID, Richard Stallman, risk/return, Ronald Coase, search inside the book, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, smart grid, smart meter, social web, software as a service, spectrum auction, Steve Jobs, Stewart Brand, the built environment, The Nature of the Firm, The Structural Transformation of the Public Sphere, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, too big to fail, transaction costs, urban planning, Watson beat the top human players on Jeopardy!, web application, Whole Earth Catalog, Whole Earth Review, WikiLeaks, working poor, zero-sum game, Zipcar

The labs are outfitted with various types of flexible manufacturing equipment, which includes laser cutters, routers, 3D printers, mini mills, and the accompanying open-source software. Setting up the fully equipped lab costs around $50,000.10 There are now over 70 Fab Labs, most in urban areas in highly industrialized countries, but many, surprisingly enough, are in developing countries where access to the fabricating tools and equipment creates a beachhead for establishing a 3D printing community.11 In remote areas of the world, unconnected to the global supply chain, being able to fabricate even simple tools and objects can greatly improve economic welfare. The great majority of Fab Labs are community-led projects managed by universities and nonprofit associations, although a few commercial retailers are beginning to explore the idea of attaching Fab Labs to their stores—so that a hobbyist can buy the supplies he or she needs and then use the Fab Lab to create the product.12 The idea, says Gershenfeld, is to provide the tools and materials anyone would need to build whatever they can envision.

Ashlee Vance, “3-D Printers: Make Whatever You Want,” Bloomberg Businessweek, April 26, 2012, http://www.businessweek.com/articles/2012-04-26/3d-printers-make-whatever-you-want (accessed August 23, 2013). 3. “Wohlers Associates Publishes 2012 Report on Additive Manufacturing and 3-D Printing: Industry Study Shows Annual Growth of Nearly 30%,” Wohlers Associates, May 15, 2012, http://wohlersassociates.com/press56.htm (accessed August 16, 2013). 4. Richardson and Haylock, “Designer/Maker.” 5. Irene Chapple, “Dickerson: Etsy Is Disrupting Global Supply Chains,” CNN, June 5, 2013, http://edition.cnn.com/2013/06/05/business/etsy-leweb-craft-disrupting (accessed June 28, 2013). 6. “A Brief History of 3D Printing,” T. Rowe Price, December 2011, http://individual.troweprice .com/staticFiles/Retail/Shared/PDFs/3-D_Printing_Infographic_FINAL.pdf (accessed November 2, 2013). 7. “Definition: Hacker,” Search Security, October 2006, http://searchsecurity.techtarget.com /definition/hacker (accessed October 15, 2013). 8.


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Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia by Anthony M. Townsend

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1960s counterculture, 4chan, A Pattern Language, Airbnb, Amazon Web Services, anti-communist, Apple II, Bay Area Rapid Transit, Burning Man, business process, call centre, carbon footprint, charter city, chief data officer, clean water, cleantech, cloud computing, computer age, congestion charging, connected car, crack epidemic, crowdsourcing, DARPA: Urban Challenge, data acquisition, Deng Xiaoping, digital map, Donald Davies, East Village, Edward Glaeser, game design, garden city movement, Geoffrey West, Santa Fe Institute, George Gilder, ghettoisation, global supply chain, Grace Hopper, Haight Ashbury, Hedy Lamarr / George Antheil, hive mind, Howard Rheingold, interchangeable parts, Internet Archive, Internet of things, Jacquard loom, Jacquard loom, Jane Jacobs, jitney, John Snow's cholera map, Khan Academy, Kibera, knowledge worker, load shedding, M-Pesa, Mark Zuckerberg, megacity, mobile money, mutually assured destruction, new economy, New Urbanism, Norbert Wiener, Occupy movement, off grid, openstreetmap, packet switching, Parag Khanna, patent troll, Pearl River Delta, place-making, planetary scale, popular electronics, RFC: Request For Comment, RFID, ride hailing / ride sharing, Robert Gordon, self-driving car, sharing economy, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, smart grid, smart meter, social graph, social software, social web, special economic zone, Steve Jobs, Steve Wozniak, Stuxnet, supply-chain management, technoutopianism, Ted Kaczynski, telepresence, The Death and Life of Great American Cities, too big to fail, trade route, Tyler Cowen: Great Stagnation, Upton Sinclair, uranium enrichment, urban decay, urban planning, urban renewal, Vannevar Bush, working poor, working-age population, X Prize, Y2K, zero day, Zipcar

Technology could fix all that, they argued, by stretching existing resources to deal with the first two problems and ratcheting down the excesses of industrial growth to deal with the third. If we replicated the logistics systems of global business and applied them to the very local problems of cities, it seemed, all would be well. As Colin Harrison, one of the architects of IBM’s smart-cities strategy explained it, “For much of the last twenty years, we instrumented the global supply chain. That hasn’t happened in city governments.”32 Remodeling cities in the image of multinational corporations requires three new layers of technology according to Arup, a global engineering giant. The first layer is “instrumentation”—the sensor grids embedded in infrastructure that measure conditions throughout the city, much as companies use GPS trackers, bar codes, and cash-register receipts to measure what is going on in their businesses.

His bio lauded many achievements, including leading the development of the first commercially useful MRI system in 1978, but also his “many failed innovations,” including an intriguing one named “magnetic bubble memories.”25 For Harrison, the weaving of SABRE-like information systems into everything was an inevitable historical process. “Over the last two decades,” he explained in 2011 at a conference in New York, “the planet became wired for transactions. The global supply chains that existed for centuries suddenly became instrumented,” fitted out with sensors that could track the movement of people, goods, and money. Manufacturers could track operations and sales worldwide, in real time. Suddenly, suppliers could tap into their customers’ mainframes to update delivery schedules. Consumers increasingly got glimpses of this new commercial apparatus, like the package-tracking services provided by carriers such as UPS and FedEx.


pages: 204 words: 58,565

Keeping Up With the Quants: Your Guide to Understanding and Using Analytics by Thomas H. Davenport, Jinho Kim

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Black-Scholes formula, business intelligence, business process, call centre, computer age, correlation coefficient, correlation does not imply causation, Credit Default Swap, en.wikipedia.org, feminist movement, Florence Nightingale: pie chart, forensic accounting, global supply chain, Hans Rosling, hypertext link, invention of the telescope, inventory management, Jeff Bezos, margin call, Moneyball by Michael Lewis explains big data, Myron Scholes, Netflix Prize, p-value, performance metric, publish or perish, quantitative hedge fund, random walk, Renaissance Technologies, Robert Shiller, Robert Shiller, self-driving car, sentiment analysis, six sigma, Skype, statistical model, supply-chain management, text mining, the scientific method

In organizations that somehow hired quantitative analysts but ignore them when important decisions come along, the nasty attitudes we’ve described often pop up. Quants, like most other people, respect others when they are respected. Analytical Thinking Example: Demand Forecasting at Cisco Forecasting customer demand is a problem for many firms, particularly in manufacturing.9 It is a particularly important issue for Cisco Systems, the market-leading provider of telecommunications equipment. The company has a very complex global supply chain, and doesn’t manufacture most of the products it sells. As Kevin Harrington, vice president of global business operations in Cisco’s Customer Value Chain Management organization put it: “Forecasting customer demand is, of course, a central part of supply chain management and a critical enabler of lean manufacturing. This discipline becomes ever more challenging in times like our own characterized by rapid changes in the macro-economy and volatile swings in supply and demand.


Design of Business: Why Design Thinking Is the Next Competitive Advantage by Roger L. Martin

asset allocation, Buckminster Fuller, business process, Frank Gehry, global supply chain, high net worth, Innovator's Dilemma, Isaac Newton, mobile money, QWERTY keyboard, Ralph Waldo Emerson, risk tolerance, six sigma, Steve Ballmer, Steve Jobs, supply-chain management, Wall-E, winner-take-all economy

Interestingly, RIM’s other competitors have had less success in the move to smart phones. “Apple realized the same thing we knew about Nokia and Motorola and all the others, which is that they were too successful and focused on feature phones (without e-mail and Web capability). They weren’t betting on the future,” says Lazaridis. “They were betting on their engine—their low-cost, high-volume, global supply chain juggernaut. They were missing the point. There will be no feature phones in the future. It will all be smart phones.” Long before the iPhone was even a rumor, Lazaridis was back to work creating the 3G Bold with a dramatically enhanced screen and the media-handling capabilities of an iPod. Next came the touch-screen Storm. Lazaridis recognized that a set of his customers wanted a touch-screen device, but felt that existing touchscreen technology lacked an essential element of the BlackBerry experience—the ability to separate navigation (scrolling to the desired message) from confirmation (opening the message).


pages: 223 words: 58,732

The Retreat of Western Liberalism by Edward Luce

3D printing, affirmative action, Airbnb, basic income, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, call centre, carried interest, centre right, cognitive dissonance, colonial exploitation, colonial rule, computer age, corporate raider, cuban missile crisis, currency manipulation / currency intervention, Dissolution of the Soviet Union, Doha Development Round, Donald Trump, double entry bookkeeping, Erik Brynjolfsson, European colonialism, everywhere but in the productivity statistics, Fall of the Berlin Wall, Francis Fukuyama: the end of history, future of work, George Santayana, gig economy, Gini coefficient, global supply chain, illegal immigration, imperial preference, income inequality, informal economy, Internet of things, Jaron Lanier, knowledge economy, liberal capitalism, Marc Andreessen, Mark Zuckerberg, Martin Wolf, mass immigration, means of production, Monroe Doctrine, moral panic, more computing power than Apollo, mutually assured destruction, new economy, New Urbanism, Norman Mailer, offshore financial centre, one-China policy, Peace of Westphalia, Peter Thiel, Plutocrats, plutocrats, precariat, purchasing power parity, reserve currency, Richard Florida, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, Snapchat, software is eating the world, South China Sea, Steve Jobs, superstar cities, TaskRabbit, telepresence, The Wealth of Nations by Adam Smith, Thomas L Friedman, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, Washington Consensus, We are the 99%, We wanted flying cars, instead we got 140 characters, white flight, World Values Survey, Yogi Berra

This was enabled by the relentless drop in the cost of transport. What steam did in the nineteenth century, aeroplanes, supertankers and mechanised ports did for the last third of the twentieth century. The explosion of communications technology in the twenty-first century is enabling Western companies to do precisely the same in the knowledge economy today. Companies’ ability to go offshore via diversified global supply chains is no longer confined to physical goods. In the short term it is not artificial intelligence the West should worry about. It is what Baldwin calls remote intelligence. In some respects it has already arrived. Over the last twenty years, India and the Philippines reaped the rewards of the telecoms revolution to create lower-skilled service sector jobs at call centres, and on technology helpdesks.


pages: 183 words: 17,571

Broken Markets: A User's Guide to the Post-Finance Economy by Kevin Mellyn

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banking crisis, banks create money, Basel III, Bernie Madoff, Big bang: deregulation of the City of London, Bonfire of the Vanities, bonus culture, Bretton Woods, BRICs, British Empire, call centre, Carmen Reinhart, central bank independence, centre right, cloud computing, collapse of Lehman Brothers, collateralized debt obligation, corporate governance, corporate raider, creative destruction, credit crunch, crony capitalism, currency manipulation / currency intervention, disintermediation, eurozone crisis, fiat currency, financial innovation, financial repression, floating exchange rates, Fractional reserve banking, global reserve currency, global supply chain, Home mortgage interest deduction, index fund, information asymmetry, joint-stock company, Joseph Schumpeter, labor-force participation, labour market flexibility, light touch regulation, liquidity trap, London Interbank Offered Rate, lump of labour, market bubble, market clearing, Martin Wolf, means of production, mobile money, money market fund, moral hazard, mortgage debt, mortgage tax deduction, negative equity, Ponzi scheme, profit motive, quantitative easing, Real Time Gross Settlement, regulatory arbitrage, reserve currency, rising living standards, Ronald Coase, seigniorage, shareholder value, Silicon Valley, statistical model, Steve Jobs, The Great Moderation, the payments system, Tobin tax, too big to fail, transaction costs, underbanked, Works Progress Administration, yield curve, Yogi Berra, zero-sum game

That would aid other developing markets that depend on low-cost labor to compete internationally, and it would raise the cost of Chinese goods to United States consumers considerably, so Americans would learn to do without their 72-inch TVs in many instances. That does not mean that the “jobs” supposedly “shipped” to China would return to high-cost, high-tax, and high-regulation localities in the United States.The development of global supply chains, “lean manufacturing,” and offshore production are responses to increased global competition and technologies that change factor costs while shrinking time and distance. Even doubling the value of the RMB in dollar terms would change none of that. On the other hand, removing Chinese savings and reserves from the global financial economy could be catastrophic. The same politicians who bang on about getting tough with China routinely vote for spending that depends on Chinese purchases of US Treasury debt.


pages: 252 words: 70,424

The Self-Made Billionaire Effect: How Extreme Producers Create Massive Value by John Sviokla, Mitch Cohen

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Cass Sunstein, Colonization of Mars, corporate raider, Daniel Kahneman / Amos Tversky, Elon Musk, Frederick Winslow Taylor, game design, global supply chain, James Dyson, Jeff Bezos, John Harrison: Longitude, Jony Ive, loss aversion, Mark Zuckerberg, market design, old-boy network, paper trading, RAND corporation, randomized controlled trial, Richard Thaler, risk tolerance, self-driving car, Silicon Valley, smart meter, Steve Ballmer, Steve Jobs, Steve Wozniak, Tony Hsieh, Toyota Production System, young professional

This is clearly a big issue for Target and other retailers struggling to protect their reputations, but it is most often addressed by looking at the best practices of best-in-class retailers or financial companies to understand how they prevent security breaches. Natural Producers would look at the problem at a higher level, namely, how does the structure of the global credit card system compromise security and is there a global change that could improve it? In the same way that Walmart is influencing the environmental footprint of its global supply chain, could Target change the security footprint of retail payments? In this way, companies shift their organizational focus from day-to-day minutiae to the larger purpose of what the organization is about and what foundational solutions it can offer. Questions at this level of scale are rarely posed at all, much less at all levels in corporate environments—another example of the ways that many large businesses constrain the collective imaginations of their employees.


pages: 234 words: 63,149

Every Nation for Itself: Winners and Losers in a G-Zero World by Ian Bremmer

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airport security, banking crisis, barriers to entry, Berlin Wall, blood diamonds, Bretton Woods, BRICs, capital controls, clean water, creative destruction, Deng Xiaoping, Doha Development Round, energy security, European colonialism, failed state, global rebalancing, global supply chain, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), Julian Assange, labour mobility, Martin Wolf, mass immigration, Mikhail Gorbachev, mutually assured destruction, Nixon shock, nuclear winter, Parag Khanna, purchasing power parity, reserve currency, Ronald Reagan, smart grid, South China Sea, sovereign wealth fund, special economic zone, Stuxnet, trade route, uranium enrichment, Washington Consensus, WikiLeaks, Yom Kippur War

In fact, Putin’s 2012 election bid has triggered angry demonstrations that took the media (and Putin) by surprise. Strife within so many important countries could inflict considerable damage on the global economy, with dire consequences for volatile and vulnerable states like Pakistan, which relies on Saudi, U.S., and Chinese help to keep its government afloat. Globalization faces a fundamental setback as global supply chains become unmanageable and a lot more borders appear within states. Local actors refuse to respect agreements signed at the national level that exploit their resources. In some cases, they seize assets and property owned by the state (pipelines, reservoirs, ports) or by companies based beyond their borders. This issue could also allow local political opportunists to exploit divisions of various kinds within states like Iraq, Syria, and the former Soviet republics of the Caucasus and Central Asia—states whose borders were established by outsiders ignorant of older ethnic, sectarian, and tribal boundaries or willing to ignore them for reasons of their own.


pages: 270 words: 79,992

The End of Big: How the Internet Makes David the New Goliath by Nicco Mele

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3D printing, 4chan, A Declaration of the Independence of Cyberspace, Airbnb, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, Apple's 1984 Super Bowl advert, barriers to entry, Berlin Wall, big-box store, bitcoin, business climate, call centre, Cass Sunstein, centralized clearinghouse, Chelsea Manning, citizen journalism, cloud computing, collaborative consumption, collaborative editing, commoditize, creative destruction, crony capitalism, cross-subsidies, crowdsourcing, David Brooks, death of newspapers, Donald Trump, Douglas Engelbart, Douglas Engelbart, en.wikipedia.org, Exxon Valdez, Fall of the Berlin Wall, Filter Bubble, Firefox, Galaxy Zoo, global supply chain, Google Chrome, Gordon Gekko, Hacker Ethic, Jaron Lanier, Jeff Bezos, jimmy wales, John Markoff, Julian Assange, Kevin Kelly, Khan Academy, Kickstarter, Lean Startup, Mark Zuckerberg, minimum viable product, Mohammed Bouazizi, Mother of all demos, Narrative Science, new economy, Occupy movement, old-boy network, peer-to-peer, period drama, Peter Thiel, pirate software, publication bias, Robert Metcalfe, Ronald Reagan, Ronald Reagan: Tear down this wall, sharing economy, Silicon Valley, Skype, social web, Steve Jobs, Steve Wozniak, Stewart Brand, Stuxnet, Ted Nelson, Telecommunications Act of 1996, telemarketer, The Wisdom of Crowds, transaction costs, uranium enrichment, Whole Earth Catalog, WikiLeaks, Zipcar

“I’m like an old lady in a chair, catching up on podcasts, watching old Hitchcock shows. I will do it for 13 hours a day.” And even after all those hours knitting, she is constantly sketching new designs or trading e-mail messages with 50 or more customers a day.34 I spoke with Maria Thomas, the former CEO of Etsy. She agrees that the promise of Etsy was to encourage “local living economies,” but she also noted the critical role of the global supply chain for most of the small businesses to be successful. Knitting scarves is possible because the wool might be grown on sheep in Lubbock, Texas, but shipped to China for processing and dye, and then shipped back to New York to be sold in a store.35 But even so, the rise of crafting requires businesses to stay small. If you’re knitting each scarf by hand, you’re not going to be able to sell an infinite number of them.


pages: 903 words: 235,753

The Stack: On Software and Sovereignty by Benjamin H. Bratton

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1960s counterculture, 3D printing, 4chan, Ada Lovelace, additive manufacturing, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, algorithmic trading, Amazon Mechanical Turk, Amazon Web Services, augmented reality, autonomous vehicles, basic income, Benevolent Dictator For Life (BDFL), Berlin Wall, bioinformatics, bitcoin, blockchain, Buckminster Fuller, Burning Man, call centre, carbon footprint, carbon-based life, Cass Sunstein, Celebration, Florida, charter city, clean water, cloud computing, connected car, corporate governance, crowdsourcing, cryptocurrency, dark matter, David Graeber, deglobalization, dematerialisation, disintermediation, distributed generation, don't be evil, Douglas Engelbart, Douglas Engelbart, Edward Snowden, Elon Musk, en.wikipedia.org, Eratosthenes, ethereum blockchain, facts on the ground, Flash crash, Frank Gehry, Frederick Winslow Taylor, future of work, Georg Cantor, gig economy, global supply chain, Google Earth, Google Glasses, Guggenheim Bilbao, High speed trading, Hyperloop, illegal immigration, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invisible hand, Jacob Appelbaum, Jaron Lanier, John Markoff, Jony Ive, Julian Assange, Khan Academy, liberal capitalism, lifelogging, linked data, Mark Zuckerberg, market fundamentalism, Marshall McLuhan, Masdar, McMansion, means of production, megacity, megastructure, Menlo Park, Minecraft, Monroe Doctrine, Network effects, new economy, offshore financial centre, oil shale / tar sands, packet switching, PageRank, pattern recognition, peak oil, peer-to-peer, performance metric, personalized medicine, Peter Eisenman, Peter Thiel, phenotype, Philip Mirowski, Pierre-Simon Laplace, place-making, planetary scale, RAND corporation, recommendation engine, reserve currency, RFID, Robert Bork, Sand Hill Road, self-driving car, semantic web, sharing economy, Silicon Valley, Silicon Valley ideology, Slavoj Žižek, smart cities, smart grid, smart meter, social graph, software studies, South China Sea, sovereign wealth fund, special economic zone, spectrum auction, Startup school, statistical arbitrage, Steve Jobs, Steven Levy, Stewart Brand, Stuxnet, Superbowl ad, supply-chain management, supply-chain management software, TaskRabbit, the built environment, The Chicago School, the scientific method, Torches of Freedom, transaction costs, Turing complete, Turing machine, Turing test, universal basic income, urban planning, Vernor Vinge, Washington Consensus, web application, Westphalian system, WikiLeaks, working poor, Y Combinator

This “thing” is ultimately indistinguishable from (if not reducible to) the traces that it produces about itself and its various relations with the world that brought it into being.16 The SPIME is then a kind of meta-diagram that precedes the object's manufacture, couches its real physical life in the world, and outlasts its recycling; it is the “thing” defined as an artificial temporal instance of digital-physical relations from beginning to end. The politics of the SPIME motivates interest in making global supply chains deeply transparent, and in principle more accountable and sustainable. The hope is that if any interested User can “read” the complete biography of a thing, measure all of the conditions of its appearance, use, and disappearance now captured as extensible metadata, then the politics of its chemical and mineral origins (as discussed in Earth chapter) or factory labor conditions, or nutritional authenticity, or post-use death cycle might become more legible currencies of everyday material culture. From other highly controlled perspectives, such transparencies are common in global supply chains but are guarded proprietary sources of competitive information, not public platforms (see the discussion in the Cloud chapter on Amazon and Walmart).


pages: 777 words: 186,993

Imagining India by Nandan Nilekani

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affirmative action, Airbus A320, BRICs, British Empire, business process, business process outsourcing, call centre, clean water, colonial rule, corporate governance, cuban missile crisis, deindustrialization, demographic dividend, demographic transition, Deng Xiaoping, digital map, distributed generation, farmers can use mobile phones to check market prices, full employment, ghettoisation, glass ceiling, global supply chain, Hernando de Soto, income inequality, informal economy, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, knowledge economy, labour market flexibility, land reform, light touch regulation, LNG terminal, load shedding, Mahatma Gandhi, market fragmentation, mass immigration, Mikhail Gorbachev, Network effects, new economy, New Urbanism, open economy, Parag Khanna, pension reform, Potemkin village, price mechanism, race to the bottom, rent control, rolodex, Ronald Reagan, school vouchers, Silicon Valley, smart grid, special economic zone, The Wealth of Nations by Adam Smith, Thomas L Friedman, Thomas Malthus, transaction costs, trickle-down economics, unemployed young men, upwardly mobile, urban planning, urban renewal, women in the workforce, working poor, working-age population

The rise of the market economy has also been instrumental in driving a demand for better education, access to IT and better infrastructure across economic classes to take advantage of economic growth. Abhijit Banerjee remarked to me how villagers have begun to oversee public road works in their areas. “Old men will sit by the side of the road, watching the contractors,” he says, “and if they mess up on the tarring and levelling, they make them fix it.” In the long term, world markets also have the power to improve governance standards. The integration across industry sectors with global supply chains has brought in international scrutiny and standards for local businesses, such as in food safety laws. It is also driving governments to respond to supply chain inefficiencies, which are bringing in reforms in agriculture, port and highway infrastructure, and a push toward less draconian controls in manufacturing. Across these sectors, openness is weeding out both government apathy and inefficiency.

And as businesses broaden their involvement into sectors such as education and health, it is providing an alternative to state systems. For instance, a villager without access to a good government school is able to access either a rural private school or education provided by a long-distance tutor through one of Sriram Raghavan’s IT kiosks. Group-based entitlements—in education, employment and infrastructure—are also becoming less difficult to sustain as the private sector expands and the country links itself with global supply chains in infrastructure and labor. Dr. Madhav Chavan, cofounder and director of the NGO Pratham, tells me, “Workers in Bombay are refusing to join unions on minimum wage, since they can negotiate directly with a company and get jobs at higher incomes.” This is creating broader support for markets and economic reforms and is also slowly bringing down the strength of interest groups such as teachers unions in schools and of unionized employees in the public sector.


pages: 387 words: 110,820

Cheap: The High Cost of Discount Culture by Ellen Ruppel Shell

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barriers to entry, Berlin Wall, big-box store, cognitive dissonance, computer age, creative destruction, Daniel Kahneman / Amos Tversky, delayed gratification, deskilling, Donald Trump, Edward Glaeser, fear of failure, Ford paid five dollars a day, Frederick Winslow Taylor, George Akerlof, global supply chain, global village, greed is good, Howard Zinn, income inequality, interchangeable parts, inventory management, invisible hand, James Watt: steam engine, Joseph Schumpeter, Just-in-time delivery, knowledge economy, loss aversion, market design, means of production, mental accounting, Pearl River Delta, Ponzi scheme, price anchoring, price discrimination, race to the bottom, Richard Thaler, Ronald Reagan, side project, Steve Jobs, The Market for Lemons, The Wealth of Nations by Adam Smith, Thomas L Friedman, trade liberalization, traveling salesman, ultimatum game, Victor Gruen, washing machines reduced drudgery, working poor, yield management, zero-sum game

Siva Yam, president of the U.S.-China Chamber of Commerce, summed matters up with some reluctance “As long as consumers are looking for the lowest possible costs,” he said, “[regulations are] not going to have a long-term impact.” ROUGHLY 25 PERCENT of the global workforce is now Chinese. Given such enormous firepower, China inevitably sets the norm for wages and working standards in the global supply chain. American corporate interests have chipped away at those standards and wages in order to maximize profits and influence, and to serve their shareholders. The chronic disregard for workers’ rights in China’s foreign-invested private sector threatens wages and working conditions around the globe, including the hard-won gains of American workers. Labor scholar Robert Bruno, a political economist at the University of Illinois, has observed that most Americans tend not to think of themselves as “workers.”


pages: 358 words: 106,729

Fault Lines: How Hidden Fractures Still Threaten the World Economy by Raghuram Rajan

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accounting loophole / creative accounting, Andrei Shleifer, Asian financial crisis, asset-backed security, assortative mating, bank run, barriers to entry, Bernie Madoff, Bretton Woods, business climate, Clayton Christensen, clean water, collapse of Lehman Brothers, collateralized debt obligation, colonial rule, corporate governance, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, currency manipulation / currency intervention, diversification, Edward Glaeser, financial innovation, fixed income, floating exchange rates, full employment, global supply chain, Goldman Sachs: Vampire Squid, illegal immigration, implied volatility, income inequality, index fund, interest rate swap, Joseph Schumpeter, Kenneth Rogoff, knowledge worker, labor-force participation, Long Term Capital Management, market bubble, Martin Wolf, medical malpractice, microcredit, money market fund, moral hazard, new economy, Northern Rock, offshore financial centre, open economy, price stability, profit motive, Real Time Gross Settlement, Richard Florida, Richard Thaler, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, school vouchers, short selling, sovereign wealth fund, The Great Moderation, the payments system, The Wealth of Nations by Adam Smith, too big to fail, upwardly mobile, Vanguard fund, women in the workforce, World Values Survey

And the public’s anxiety gives them the license to bring out all their pet projects, all the favors to special interests, and all the schemes their ideological leanings and political connections predispose them to. Similarly, as we have seen, the Federal Reserve, though ostensibly independent, has a very difficult task. It is extremely hard to ensure rapid job growth in an integrated, innovative economy where firms use recessions to refocus on becoming more productive or to strengthen their global supply chains, shifting jobs elsewhere. Moreover, the new technologies employed in hiring allow firms the luxury of waiting to fill positions. The sustained easy monetary policy that is maintained while jobs are still scarce has the effect of increasing risk taking and inflating asset-price bubbles, which again weaken the fabric of the economy over the longer term. If the United States cannot tolerate longer bouts of unemployment, but those bouts are here to stay, we risk going from bubble to bubble as the Federal Reserve is pressured to do the impossible and create jobs where none are forthcoming.


pages: 534 words: 15,752

The Sushi Economy: Globalization and the Making of a Modern Delicacy by Sasha Issenberg

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air freight, Akira Okazaki, anti-communist, barriers to entry, Bretton Woods, call centre, creative destruction, Deng Xiaoping, global supply chain, haute cuisine, means of production, Nixon shock, Saturday Night Live, Silicon Valley, special economic zone, telemarketer, trade route, urban renewal

During the travels of tuna, one sees value added and subtracted as it changes hands: Tuna begins as a natural resource, becomes a good when its quality is graded, is enhanced by expert labor when selected and prepared by a chef, and can be marketed as an experience when served at a restaurant that offers diners a moment of exotic simplicity. At each stage, players get more information about the product they own, all while diminishing its life span through further exposure to air—a delicate juggle of swapping knowledge of its worth for the ability to realize some of that value. With sushi, unlike technology or clothing or most things moved along global supply chains, the product can never sell itself. Freshness demands more. Due to nature’s fiat, every piece is different and bears no trail of ownership; by the time the actual quality of a cut of fish is known, it is sitting on somebody’s tongue, usually with a touch of soy sauce—too late for anyone to reassess its price. Sushi-grade fish can be only as good as the last person to own it says it is. The connections, then, between people who deal in fish are proxies for provenance, vouching for the thing itself.


pages: 329 words: 85,471

The Locavore's Dilemma by Pierre Desrochers, Hiroko Shimizu

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air freight, back-to-the-land, British Empire, Columbian Exchange, Community Supported Agriculture, creative destruction, edge city, Edward Glaeser, food miles, Food sovereignty, global supply chain, intermodal, invention of agriculture, inventory management, invisible hand, Jane Jacobs, labour mobility, land tenure, megacity, moral hazard, mortgage debt, oil shale / tar sands, oil shock, peak oil, planetary scale, profit motive, refrigerator car, Steven Pinker, the market place, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, Upton Sinclair, urban sprawl

Globally-imported ingenious agricultural heritage systems Glaeser, Edward Global food supply chain history of human body transformations and initiatives for local Globalization critics of of food supply chain Globally-imported ingenious agricultural heritage systems (GIAHS) Gould, David Government food purchasing intervention leaders managed food and food security run reserves Gráda, Cormac Ó Grades (food) Graff, Gordon Grain(table) Battle for Grain ( ) government-purchased producing states reserves Grapes Great grandmother Great Leap Forward Greater Toronto Green cities Green peas, ripening periods Greenbelt Greenhouse gas emissions air freight consumer behavior and production transportation seasonality and storage transportation mode load Gros Michel bananas Gross Domestic Product (GDP) Haiti Han China Hardy, Thomas Harrison, Harry Harte, William Hawaii Hayes, Peter Health Healthy, Hunger-Free Kids Act Height nutrition and Herbal remedies Herbert, Claude-Jacques High-yield agriculture History, of food agriculture global supply chain of government intervention local food initiatives meatpacking Hitier, Henri Hobby gardening Hobson, John Atkinson Hoefner, Ferd Holden, Patrick Homogecene Hongerwinter 1944–1945 Hoover, Herbert Horse Association of America Howe, Frederic Clemson Huber, Peter W. Human body agribusiness and changing evolution of Human intellect Hundred Years War Hunger See also Famine; Food shortage Hunter, William Wilson Hurst, Blake Hybridization Imperfections Imports rice urbanization and India Initiatives, local food economic depression and history of support wartime(photo) Inner cities Innovation Integrated Regional Information Networks Intermediaries Invasive species Invisible hand Irish potato famine Jacks, Graham Vernon Jacobs, Jane Japan famine in World War II and Jefferson, Lorian P.


pages: 262 words: 83,548

The End of Growth by Jeff Rubin

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Ayatollah Khomeini, Bakken shale, banking crisis, Berlin Wall, British Empire, call centre, carbon footprint, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, decarbonisation, deglobalization, energy security, eurozone crisis, Exxon Valdez, Fall of the Berlin Wall, fiat currency, flex fuel, full employment, ghettoisation, global supply chain, Hans Island, happiness index / gross national happiness, housing crisis, hydraulic fracturing, illegal immigration, income per capita, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, labour mobility, McMansion, Monroe Doctrine, moral hazard, new economy, Occupy movement, oil shale / tar sands, oil shock, peak oil, Ponzi scheme, quantitative easing, race to the bottom, reserve currency, Ronald Reagan, South China Sea, sovereign wealth fund, The Chicago School, The Death and Life of Great American Cities, Thomas Malthus, Thorstein Veblen, too big to fail, uranium enrichment, urban planning, urban sprawl, women in the workforce, working poor, Yom Kippur War, zero-sum game

In my first book, Why Your World Is About to Get a Whole Lot Smaller, I detailed how soaring fuel prices will change the dynamics of international trade by dramatically increasing transoceanic transport costs. In a world of triple-digit oil prices, distance costs money, pure and simple. Connecting cheap labor in Asia with rich consumers in North America makes all kinds of economic sense when oil is $20 a barrel. But when oil prices escalate, it’s less profitable to ship most goods across the Pacific. Changes in transport costs are radically rerouting global supply chains, bringing many of them much closer to home. Hauling iron ore from Brazil to feed Chinese steel factories and then shipping the finished product back across the Pacific to North America isn’t economically viable when oil prices are trading in the triple-digit range. Instead, we could see iron ore from Labrador loaded on trains and shipped to factories in Rust Belt cities such as Pittsburgh, Cleveland or Hamilton, Ontario.


pages: 523 words: 111,615

The Economics of Enough: How to Run the Economy as if the Future Matters by Diane Coyle

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accounting loophole / creative accounting, affirmative action, bank run, banking crisis, Berlin Wall, bonus culture, Branko Milanovic, BRICs, call centre, Cass Sunstein, central bank independence, collapse of Lehman Brothers, conceptual framework, corporate governance, correlation does not imply causation, Credit Default Swap, deindustrialization, demographic transition, Diane Coyle, disintermediation, Edward Glaeser, endogenous growth, Eugene Fama: efficient market hypothesis, experimental economics, Fall of the Berlin Wall, Financial Instability Hypothesis, Francis Fukuyama: the end of history, George Akerlof, Gini coefficient, global supply chain, Gordon Gekko, greed is good, happiness index / gross national happiness, Hyman Minsky, If something cannot go on forever, it will stop - Herbert Stein's Law, illegal immigration, income inequality, income per capita, industrial cluster, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Jane Jacobs, Joseph Schumpeter, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour market flexibility, light touch regulation, low skilled workers, market bubble, market design, market fundamentalism, megacity, Network effects, new economy, night-watchman state, Northern Rock, oil shock, Pareto efficiency, principal–agent problem, profit motive, purchasing power parity, railway mania, rising living standards, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, South Sea Bubble, Steven Pinker, The Design of Experiments, The Fortune at the Bottom of the Pyramid, The Market for Lemons, The Myth of the Rational Market, The Spirit Level, transaction costs, transfer pricing, tulip mania, ultimatum game, University of East Anglia, web application, web of trust, winner-take-all economy, World Values Survey, zero-sum game

They have brought about a dramatic restructuring of industry and work. They’ve created the diversity of the modern city and workplace, bringing many people into contact daily with a much wider variety of others than ever used to be the case. And there are much larger geographical distances in production too, due the fact that economies have become more open to trade and investment, and that companies are more likely to be part of a global supply chain. THE CHALLENGE OF BUILDING TRUST There are, then, a number of ways in which the technology-driven structural changes in the economy have been simultaneously increasing the importance of trust or social capital and making it more fragile. At the heart of this tension is the way so many people of so many different backgrounds, expectations, and habits are now in contact with each other.


pages: 402 words: 98,760

Deep Sea and Foreign Going by Rose George

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Admiral Zheng, air freight, Airbus A320, Albert Einstein, bank run, cable laying ship, Captain Sullenberger Hudson, Costa Concordia, Edward Lloyd's coffeehouse, Exxon Valdez, failed state, Filipino sailors, global supply chain, Google Earth, intermodal, London Whale, Malacca Straits, Panamax, pattern recognition, profit maximization, Skype, trade route, UNCLOS, UNCLOS, urban planning, William Langewiesche

The box is then shipped to a foreign port that has signed up to the CSI, where foreign officials working harmoniously with US Customs identify and scan containers using ‘non-intrusive inspection equipment and radiation portal monitors’, in the words of the GAO. While the box is sailing safely onwards, updates on its progress are electronically transmitted to the United States. If further doubt remains about the level of risk it poses, upon arrival the container is screened with more non-intrusive inspection equipment and detained or set free to furnish an American home or fuel an American car. It is a beautiful vision of a safer global supply chain. For now, it is still only a vision. According to the Implementing Recommendations of the 9/11 Commission Act, enforced in 2007, a system to scan 100 per cent of all US-bound cargo had to be in place by July 2012. Six foreign ports signed up to the 100 per cent requirement, and by February 2012, five had dropped out. It was too expensive and too difficult, said Salalah, Southampton, Busan, Hong Kong and Puerto Cortés, leaving only Qasim, a port in Pakistan.


pages: 308 words: 84,713

The Glass Cage: Automation and Us by Nicholas Carr

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Airbnb, Airbus A320, Andy Kessler, Atul Gawande, autonomous vehicles, Bernard Ziegler, business process, call centre, Captain Sullenberger Hudson, Checklist Manifesto, cloud computing, computerized trading, David Brooks, deliberate practice, deskilling, digital map, Douglas Engelbart, drone strike, Elon Musk, Erik Brynjolfsson, Flash crash, Frank Gehry, Frank Levy and Richard Murnane: The New Division of Labor, Frederick Winslow Taylor, future of work, global supply chain, Google Glasses, Google Hangouts, High speed trading, indoor plumbing, industrial robot, Internet of things, Jacquard loom, Jacquard loom, James Watt: steam engine, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Kevin Kelly, knowledge worker, Lyft, Marc Andreessen, Mark Zuckerberg, means of production, natural language processing, new economy, Nicholas Carr, Norbert Wiener, Oculus Rift, pattern recognition, Peter Thiel, place-making, Plutocrats, plutocrats, profit motive, Ralph Waldo Emerson, RAND corporation, randomized controlled trial, Ray Kurzweil, recommendation engine, robot derives from the Czech word robota Czech, meaning slave, Second Machine Age, self-driving car, Silicon Valley, Silicon Valley ideology, software is eating the world, Stephen Hawking, Steve Jobs, TaskRabbit, technoutopianism, The Wealth of Nations by Adam Smith, turn-by-turn navigation, US Airways Flight 1549, Watson beat the top human players on Jeopardy!, William Langewiesche

“March of the Machines,” 60 Minutes, CBS, January 13, 2013, cbsnews.com/8301-18560_162-57563618/are-robots-hurting-job-growth/. 26.Bernard Condon and Paul Wiseman, “Recession, Tech Kill Middle-Class Jobs,” AP, January 23, 2013, bigstory.ap.org/article/ap-impact-recession-tech-kill-middle-class-jobs. 27.Paul Wiseman and Bernard Condon, “Will Smart Machines Create a World without Work?,” AP, January 25, 2013, bigstory.ap.org/article/will-smart-machines-create-world-without-work. 28.Michael Spence, “Technology and the Unemployment Challenge,” Project Syndicate, January 15, 2013, project-syndicate.org/commentary/global-supply-chains-on-the-move-by-michael-spence. 29.See Timothy Aeppel, “Man vs. Machine, a Jobless Recovery,” Wall Street Journal, January 17, 2012. 30.Quoted in Thomas B. Edsall, “The Hollowing Out,” Campaign Stops (blog), New York Times, July 8, 2012, campaignstops.blogs.nytimes.com/2012/07/08/the-future-of-joblessness/. 31.See Lawrence V. Kenton, ed., Manufacturing Output, Productivity and Employment Implications (New York: Nova Science, 2005); and Judith Banister and George Cook, “China’s Employment and Compensation Costs in Manufacturing through 2008,” Monthly Labor Review, March 2011. 32.Tyler Cowen, “What Export-Oriented America Means,” American Interest, May/June 2012. 33.Robert Skidelsky, “The Rise of the Robots,” Project Syndicate, February 19, 2013, project-syndicate.org/commentary/the-future-of-work-in-a-world-of-automation-by-robert-skidelsky. 34.Ibid. 35.Chrystia Freeland, “China, Technology and the U.S.


pages: 363 words: 94,139

Jony Ive: The Genius Behind Apple's Greatest Products by Leander Kahney

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Apple II, banking crisis, British Empire, Chuck Templeton: OpenTable, Computer Numeric Control, Dynabook, global supply chain, interchangeable parts, John Markoff, Jony Ive, race to the bottom, RFID, side project, Silicon Valley, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, the built environment, thinkpad, Tim Cook: Apple

Explaining that Jony had no interest in the business side of Apple—just as he had hated the business side at Tangerine—the designer concluded, “He just wants to focus on ID.” “All I’ve ever wanted to do is design and make; it’s what I love doing,” Jony told one interviewer. “It’s great if you can find what you love to do. Finding it is one thing but then to be able to practise that and be preoccupied with that is another.”7 As the master of Apple’s global supply chain, Tim Cook was, in fact, much the logical successor. In just thirteen years, Cook had constructed a complex apparatus that allowed the company to build superb gadgets—albeit of Jony’s design—at unparalleled speed, volume, efficiency and profitability. Cook might not possess Jobs’s charisma, but he was a logistics titan who had been effectively running the company ever since Jobs had gone on his most recent medical leave.


pages: 323 words: 95,939

Present Shock: When Everything Happens Now by Douglas Rushkoff

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algorithmic trading, Andrew Keen, bank run, Benoit Mandelbrot, big-box store, Black Swan, British Empire, Buckminster Fuller, cashless society, citizen journalism, clockwork universe, cognitive dissonance, Credit Default Swap, crowdsourcing, Danny Hillis, disintermediation, Donald Trump, double helix, East Village, Elliott wave, European colonialism, Extropian, facts on the ground, Flash crash, game design, global supply chain, global village, Howard Rheingold, hypertext link, Inbox Zero, invention of agriculture, invention of hypertext, invisible hand, iterative process, John Nash: game theory, Kevin Kelly, laissez-faire capitalism, Law of Accelerating Returns, loss aversion, mandelbrot fractal, Marshall McLuhan, Merlin Mann, Milgram experiment, mutually assured destruction, negative equity, Network effects, New Urbanism, Nicholas Carr, Norbert Wiener, Occupy movement, passive investing, pattern recognition, peak oil, price mechanism, prisoner's dilemma, Ralph Nelson Elliott, RAND corporation, Ray Kurzweil, recommendation engine, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Skype, social graph, South Sea Bubble, Steve Jobs, Steve Wozniak, Steven Pinker, Stewart Brand, supply-chain management, the medium is the message, The Wisdom of Crowds, theory of mind, Turing test, upwardly mobile, Whole Earth Catalog, WikiLeaks, Y2K, zero-sum game

Their business is about storing value, wagering on the future, and then using contracts to leverage present expectations against future realities. They may make a lot of money without creating any tangible value, but they do help create liquidity in markets that need it and force a bit of planning or austerity when something is going to be in short supply. However, new technologies and global supply chains are turning formerly seasonal commodities into year-round products. And consumers’ decreasing awareness of seasons is changing what we expect to find at our local market and when. This longer now of both supply and demand cycles is doing to many commodities traders what twenty-four-hour cable did to the evening news: in a world of constant flow, the ability to compress time becomes superfluous.


pages: 309 words: 95,495

Foolproof: Why Safety Can Be Dangerous and How Danger Makes Us Safe by Greg Ip

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Affordable Care Act / Obamacare, Air France Flight 447, air freight, airport security, Asian financial crisis, asset-backed security, bank run, banking crisis, break the buck, Bretton Woods, capital controls, central bank independence, cloud computing, collateralized debt obligation, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, currency peg, Daniel Kahneman / Amos Tversky, diversified portfolio, double helix, endowment effect, Exxon Valdez, financial deregulation, financial innovation, Financial Instability Hypothesis, floating exchange rates, full employment, global supply chain, hindsight bias, Hyman Minsky, Joseph Schumpeter, Kenneth Rogoff, London Whale, Long Term Capital Management, market bubble, money market fund, moral hazard, Myron Scholes, Network effects, new economy, offshore financial centre, paradox of thrift, pets.com, Ponzi scheme, quantitative easing, Ralph Nader, Richard Thaler, risk tolerance, Ronald Reagan, savings glut, technology bubble, The Great Moderation, too big to fail, transaction costs, union organizing, Unsafe at Any Speed, value at risk, William Langewiesche, zero-sum game

Science is relatively unequivocal that climate change should intensify hurricanes, worsen droughts and fires, and increase periods of intense rainfall. And as global temperatures have risen, so has the economic toll of record-breaking environmental catastrophes, from Katrina and Sandy in America to devastating wildfires in Australia in 2009 and the floods that crippled Thailand and disrupted global supply chains in the fall of 2011. But climate change could not explain Sandy’s destructive toll. After all, it wasn’t even a hurricane by the time it came ashore, having been downgraded to a “post-tropical cyclone.” The principal reason for Sandy’s devastating impact is that millions of productive, affluent people live and work in a place that is inherently dangerous. To understand this, you have to go back in time.


pages: 445 words: 105,255

Radical Abundance: How a Revolution in Nanotechnology Will Change Civilization by K. Eric Drexler

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3D printing, additive manufacturing, agricultural Revolution, Bill Joy: nanobots, Brownian motion, carbon footprint, Cass Sunstein, conceptual framework, continuation of politics by other means, crowdsourcing, dark matter, double helix, failed state, global supply chain, industrial robot, iterative process, Mars Rover, means of production, Menlo Park, mutually assured destruction, New Journalism, performance metric, reversible computing, Richard Feynman, Richard Feynman, Silicon Valley, South China Sea, Thomas Malthus, V2 rocket, Vannevar Bush, zero-sum game

As for mining, APM naturally consumes and produces a different mix of materials (no need for the iron and chromium in stainless steel, no need for lead and tin in solder) and as it happens, the most useful elements—including carbon, nitrogen, oxygen, and silicon—are not at all scarce. On grounds of performance and cost, even common structural materials will be subject to widespread displacement, and with them, most mines. (Chapter 11 explores questions of APM-based product performance, cost, and resource requirements in greater depth.) Today, trade builds global supply chains that lead from mines and wells to smelters and refineries, to materials processing plants, to networks of factories that shape and assemble components to make final products. As we will see, with APM-based technologies it would be natural for these long, specialized supply chains to collapse to a few steps of local production, progressing from common materials to simple chemical feedstocks; from simple feedstocks to generic, microscale building blocks; and then from generic components to an endless range of products, much as printers can be used to arrange generic pixels to form an endless range of images.

The Power Surge: Energy, Opportunity, and the Battle for America's Future by Michael Levi

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American energy revolution, Berlin Wall, British Empire, Carmen Reinhart, crony capitalism, deglobalization, energy security, Exxon Valdez, fixed income, full employment, global supply chain, hiring and firing, hydraulic fracturing, Induced demand, Intergovernmental Panel on Climate Change (IPCC), Kenneth Rogoff, manufacturing employment, oil shale / tar sands, oil shock, peak oil, RAND corporation, Ronald Reagan, Silicon Valley, South China Sea

BP, BP Statistical Review of World Energy 2012 (London: BP, June 2012). NOTES FOR PAGES 134–138 • 237 82. Daniel J. Cordier, “Mineral Commodity Summaries, U.S. Geological Survey (USGS),” January 2012, minerals.usgs.gov/minerals/pubs/commodity/rare_earths/mcs-2012-raree.pdf. 83. For information regarding Canada, see Cordier, “Mineral Commodity Summaries.” 84. Marc Humphries, “Rare Earth Elements: The Global Supply Chain,” Washington, D.C., Congressional Research Service, June 8, 2012. 85. Michael Allan McCrae, “Substitution Hurts Rare Earth Demand,” October 2, 2011, http://www.mining.com/substition-hurts-rare-earth-demand/. 86. Lee Levkowitz and Nathan Beauchamp-Mustafaga, “China’s Rare Earths Industry and Its Role in the International Market,” Washington, D.C., U.S.-China Economic and Security Review Commission, November 3, 2010, 7. 87.

Future Files: A Brief History of the Next 50 Years by Richard Watson

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Albert Einstein, bank run, banking crisis, battle of ideas, Black Swan, call centre, carbon footprint, cashless society, citizen journalism, commoditize, computer age, computer vision, congestion charging, corporate governance, corporate social responsibility, deglobalization, digital Maoism, disintermediation, epigenetics, failed state, financial innovation, Firefox, food miles, future of work, global supply chain, global village, hive mind, industrial robot, invention of the telegraph, Jaron Lanier, Jeff Bezos, knowledge economy, linked data, low skilled workers, M-Pesa, mass immigration, Northern Rock, peak oil, pensions crisis, precision agriculture, prediction markets, Ralph Nader, Ray Kurzweil, rent control, RFID, Richard Florida, self-driving car, speech recognition, telepresence, the scientific method, The Wisdom of Crowds, Thomas Kuhn: the structure of scientific revolutions, Turing test, Victor Gruen, white flight, women in the workforce, Zipcar

Students are busy pushing organic, seasonal, slow food and food-miles agendas to catering giants such as Sodexho and Armamark Corporation. However, while these students are full of idealism for eco-eating, they (and we) are finding out the hard way the practicalities of global economics. Sourcing local ingredients from a multitude of small suppliers is time-consuming and expensive compared to hiring a single company with a global supply chain. But, like they say, principles aren’t principles until they cost time and money. 194 FUTURE FILES Buying an organic tomato in a supermarket is all very well, but if the tomato has been grown using child labor in Zimbabwe and then flown from Harare to London by a company owned by a corrupt politician it’s not ethically produced, is it? Thus sustainable agriculture will move to center stage and people will become genuinely concerned about the CO2 emissions created by their food.


pages: 349 words: 95,972

Messy: The Power of Disorder to Transform Our Lives by Tim Harford

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affirmative action, Air France Flight 447, Airbnb, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, assortative mating, Atul Gawande, autonomous vehicles, banking crisis, Barry Marshall: ulcers, Basel III, Berlin Wall, British Empire, Broken windows theory, call centre, Cass Sunstein, Chris Urmson, cloud computing, collateralized debt obligation, crowdsourcing, deindustrialization, Donald Trump, Erdős number, experimental subject, Ferguson, Missouri, Filter Bubble, Frank Gehry, game design, global supply chain, Googley, Guggenheim Bilbao, high net worth, Inbox Zero, income inequality, industrial cluster, Internet of things, Jane Jacobs, Jeff Bezos, Loebner Prize, Louis Pasteur, Marc Andreessen, Mark Zuckerberg, Menlo Park, Merlin Mann, microbiome, out of africa, Paul Erdős, Richard Thaler, Rosa Parks, self-driving car, side project, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, Steven Levy, Stewart Brand, telemarketer, the built environment, The Death and Life of Great American Cities, Turing test, urban decay, William Langewiesche

And in the summer of 2015, Amazon discovered that it was selling a magazine produced by and promoting the murderous group Daesh, better known to Westerners as ISIS.37 Embarrassing episodes are an almost unavoidable by-product of the messy way in which Amazon lets third parties hawk their goods on the Amazon website. As the designer Tim Maly comments, “Amazon isn’t a store, not really. Not in any sense that we can regularly think about stores. It’s a strange pulsing network of potential goods, global supply chains, and alien associative algorithms with the skin of a store stretched over it, so we don’t lose our minds.”38 Amazon’s experiments with third-party sellers began with Amazon auctions—“That didn’t work out very well,” admits Bezos39—and then Z-shops, and finally Marketplace. Marketplace drove Amazon’s own category managers crazy because they found themselves undercut on their own website by third-party sellers; meanwhile it leads to the never-ending risk that a third-party seller will do something embarrassing—such as sell pro-rape T-shirts—on the Amazon site, right beneath the Amazon logo.


pages: 364 words: 99,897

The Industries of the Future by Alec Ross

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23andMe, 3D printing, Airbnb, algorithmic trading, AltaVista, Anne Wojcicki, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, bioinformatics, bitcoin, blockchain, Brian Krebs, British Empire, business intelligence, call centre, carbon footprint, cloud computing, collaborative consumption, connected car, corporate governance, Credit Default Swap, cryptocurrency, David Brooks, disintermediation, Dissolution of the Soviet Union, distributed ledger, Edward Glaeser, Edward Snowden, en.wikipedia.org, Erik Brynjolfsson, fiat currency, future of work, global supply chain, Google X / Alphabet X, industrial robot, Internet of things, invention of the printing press, Jaron Lanier, Jeff Bezos, job automation, John Markoff, knowledge economy, knowledge worker, lifelogging, litecoin, M-Pesa, Marc Andreessen, Mark Zuckerberg, Mikhail Gorbachev, mobile money, money: store of value / unit of account / medium of exchange, new economy, offshore financial centre, open economy, Parag Khanna, peer-to-peer, peer-to-peer lending, personalized medicine, Peter Thiel, precision agriculture, pre–internet, RAND corporation, Ray Kurzweil, recommendation engine, ride hailing / ride sharing, Rubik’s Cube, Satoshi Nakamoto, selective serotonin reuptake inhibitor (SSRI), self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart cities, social graph, software as a service, special economic zone, supply-chain management, supply-chain management software, technoutopianism, The Future of Employment, underbanked, Vernor Vinge, Watson beat the top human players on Jeopardy!, women in the workforce, Y Combinator, young professional

In response, the Kenyans created an entire banking system using mobile phones and scratch cards. Thus, by frugal innovation, the country leapfrogged over the creation of a traditional banking system, at least as it exists in much of the rest of the world. While many of the world’s economies have stagnated since the economic crisis in 2008, Africa’s have continued to grow at a fast pace. With this growth, Africans are increasingly both the founder-entrepreneurs as well as a part of global supply chains. More and more of Africa’s technology-savvy youth are entering the workforce and starting their own companies or working remotely for Asian, American, or European companies. This is changing the nature of Africa’s relationship with the rest of the world as its connections shift from being rooted in philanthropy and development aid to being rooted in business. Jeremy Johnson is one of America’s brightest young entrepreneurs.


pages: 366 words: 94,209

Throwing Rocks at the Google Bus: How Growth Became the Enemy of Prosperity by Douglas Rushkoff

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3D printing, activist fund / activist shareholder / activist investor, Airbnb, algorithmic trading, Amazon Mechanical Turk, Andrew Keen, bank run, banking crisis, barriers to entry, bitcoin, blockchain, Burning Man, business process, buy low sell high, California gold rush, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, centralized clearinghouse, citizen journalism, clean water, cloud computing, collaborative economy, collective bargaining, colonial exploitation, Community Supported Agriculture, corporate personhood, corporate raider, creative destruction, crowdsourcing, cryptocurrency, disintermediation, diversified portfolio, Elon Musk, Erik Brynjolfsson, ethereum blockchain, fiat currency, Firefox, Flash crash, full employment, future of work, gig economy, Gini coefficient, global supply chain, global village, Google bus, Howard Rheingold, IBM and the Holocaust, impulse control, income inequality, index fund, iterative process, Jaron Lanier, Jeff Bezos, jimmy wales, job automation, Joseph Schumpeter, Kickstarter, loss aversion, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, market fundamentalism, Marshall McLuhan, means of production, medical bankruptcy, minimum viable product, Naomi Klein, Network effects, new economy, Norbert Wiener, Oculus Rift, passive investing, payday loans, peer-to-peer lending, Peter Thiel, post-industrial society, profit motive, quantitative easing, race to the bottom, recommendation engine, reserve currency, RFID, Richard Stallman, ride hailing / ride sharing, Ronald Reagan, Satoshi Nakamoto, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, social graph, software patent, Steve Jobs, TaskRabbit, The Future of Employment, trade route, transportation-network company, Turing test, Uber and Lyft, Uber for X, unpaid internship, Y Combinator, young professional, zero-sum game, Zipcar

But consider for a moment the sorts of activities the wealthiest Americans or most satisfied retirees engage in enthusiastically: brewing craft beers, knitting, and gardening. If there’s really not enough work to go around and there are so many extra people to employ, we can always farm in shifts. Those with a penchant for global conquest can still work overtime and become legendary by solving the real problems of our society: topsoil depletion, global warming, slave populations, and energy production, to name just a few. They can track the entire global supply chain of the products everyone is using and root out the parts that place an unfair labor burden upon certain people. (A low-cost smartphone that requires workers to dig for rare metals in dangerous mines is not a low-cost smartphone.) Some of these problems will be mitigated simply by taking our emphasis off this relentless quest to employ more people the old way. Once we’re no longer worried about growing the economy mainly to create more jobs, we will be free to consider tackling real challenges, like the poor global distribution of crucial resources and the stultifying debt of developing nations.


pages: 344 words: 93,858

The Post-American World: Release 2.0 by Fareed Zakaria

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affirmative action, agricultural Revolution, airport security, anti-communist, Asian financial crisis, battle of ideas, Berlin Wall, Bretton Woods, BRICs, British Empire, call centre, capital controls, central bank independence, centre right, collapse of Lehman Brothers, conceptual framework, Credit Default Swap, currency manipulation / currency intervention, delayed gratification, Deng Xiaoping, double entry bookkeeping, failed state, Fall of the Berlin Wall, financial innovation, global reserve currency, global supply chain, illegal immigration, interest rate derivative, Intergovernmental Panel on Climate Change (IPCC), knowledge economy, Mahatma Gandhi, Martin Wolf, mutually assured destruction, new economy, oil shock, open economy, out of africa, Parag Khanna, postindustrial economy, purchasing power parity, race to the bottom, reserve currency, Ronald Reagan, Silicon Valley, Silicon Valley startup, South China Sea, Steven Pinker, The Great Moderation, Thomas L Friedman, Thomas Malthus, trade route, Washington Consensus, working-age population, young professional, zero-sum game

It employs 2.1 million people, more than GM, Ford, GE, and IBM put together. It is legendary for its efficient—some would say ruthless—efforts to get the lowest price possible for its customers. To that end, it has adeptly used technology, managerial innovation, and, perhaps most significantly, low-cost manufacturers. Walmart imports about $27 billion worth of goods from China each year. The vast majority of its foreign suppliers are there. Walmart’s global supply chain is really a China supply chain. China has also pursued a distinctly open trade and investment policy. For this among many reasons, it is not the new Japan. Beijing has not adopted the Japanese (or South Korean) path of development, which was an export-led strategy that kept the domestic market and society closed. Instead, China opened itself up to the world. (It did this partly because it had no choice, since it lacked the domestic savings of Japan or South Korea.)


pages: 327 words: 88,121

The Vanishing Neighbor: The Transformation of American Community by Marc J. Dunkelman

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Affordable Care Act / Obamacare, Albert Einstein, assortative mating, Berlin Wall, big-box store, blue-collar work, Bretton Woods, Broken windows theory, call centre, clean water, cuban missile crisis, dark matter, David Brooks, delayed gratification, double helix, Downton Abbey, Edward Glaeser, Fall of the Berlin Wall, Filter Bubble, Francis Fukuyama: the end of history, George Santayana, Gini coefficient, glass ceiling, global supply chain, global village, helicopter parent, if you build it, they will come, impulse control, income inequality, invention of movable type, Jane Jacobs, John Markoff, Khyber Pass, Louis Pasteur, Marshall McLuhan, Martin Wolf, McMansion, Nate Silver, Nicholas Carr, obamacare, Occupy movement, Peter Thiel, post-industrial society, Richard Florida, rolodex, Saturday Night Live, Silicon Valley, Skype, Steve Jobs, telemarketer, The Chicago School, The Death and Life of Great American Cities, the medium is the message, Thomas L Friedman, Tyler Cowen: Great Stagnation, urban decay, urban planning, Walter Mischel, War on Poverty, women in the workforce, World Values Survey, zero-sum game

—Cassandra Bissell, my date to the 1996 Amherst Central High School prom, December 20, 2013, as posted on Facebook It is one of the great unremarked ironies that Bowling Alone was released within months of another best seller, Thomas Friedman’s The Lexus and the Olive Tree.1 Now considered a quintessential exploration of “globalization,” the New York Times columnist’s turn-of-the-twenty-first-century exposé shined a spotlight on how new information technology, global supply chains, and huge multinational corporations have integrated Americans into a new post-Cold War economic system. Though no one has seemed to notice, Friedman’s observation cut right at the heart of Putnam’s central argument. If Bowling Alone was arguing that Americans were becoming more isolated, The Lexus and the Olive Tree contended that we were actually becoming more globally connected. Putnam’s and Friedman’s books are rarely juxtaposed because their respective observations emerged from entirely different schools of literature.


pages: 386 words: 91,913

The Elements of Power: Gadgets, Guns, and the Struggle for a Sustainable Future in the Rare Metal Age by David S. Abraham

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3D printing, Airbus A320, carbon footprint, clean water, cleantech, commoditize, Deng Xiaoping, Elon Musk, en.wikipedia.org, glass ceiling, global supply chain, information retrieval, Intergovernmental Panel on Climate Change (IPCC), Internet of things, new economy, oil shale / tar sands, oil shock, reshoring, Robert Metcalfe, Ronald Reagan, Silicon Valley, South China Sea, Steve Ballmer, Steve Jobs, telemarketer, Tesla Model S, thinkpad, upwardly mobile, uranium enrichment, Y2K

But these supply lines are precarious, and our increasing global demands will soon stress them further. Our high-tech, green society is built on a wobbly foundation. Many have written about the economic and social effects of our international supply lines. Articles on abuse and mistreatment of workers in sweatshops and factories now abound in the press. Business journals examine which countries profit from the globalized supply chain of our electronic gadgets. Even coverage of the world’s electronic waste, burned in Africa and Asia, has now entered the global discussion. This book builds on those reports by examining the supply chain of the hidden rare metals that make modern life possible. These metals permeate our lives, allowing buildings to soar and our televisions to show vibrant colors. And because these metals are critical in green technology as well, they are the seeds of our sustainable futures, but, as a society, we know very little about them.


pages: 351 words: 93,982

Leading From the Emerging Future: From Ego-System to Eco-System Economies by Otto Scharmer, Katrin Kaufer

Affordable Care Act / Obamacare, agricultural Revolution, Albert Einstein, Asian financial crisis, Basel III, Berlin Wall, Branko Milanovic, cloud computing, collaborative consumption, collapse of Lehman Brothers, colonial rule, Community Supported Agriculture, creative destruction, crowdsourcing, dematerialisation, Deng Xiaoping, en.wikipedia.org, European colonialism, Fractional reserve banking, global supply chain, happiness index / gross national happiness, high net worth, housing crisis, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), invisible hand, Johann Wolfgang von Goethe, Joseph Schumpeter, market bubble, mass immigration, Mikhail Gorbachev, Mohammed Bouazizi, mutually assured destruction, Naomi Klein, new economy, offshore financial centre, peak oil, ride hailing / ride sharing, Ronald Reagan, Silicon Valley, smart grid, Steve Jobs, technology bubble, The Spirit Level, The Wealth of Nations by Adam Smith, Thomas L Friedman, too big to fail, Washington Consensus, working poor, Zipcar

It is produced by a global web of collaborative value creation, including people with design ideas in Cupertino, California, and tens of thousands of others throughout the value chain processing the raw materials from around the world, manufacturing the core components and building blocks in Asia, assembling the components in China, and shipping and distributing the products through Apple stores in consumer markets. The ratio of work to nature is much higher than in the case of the apple that we harvest in our backyard. What gets lost in translation throughout this journey to a global division of labor is meaning. Meaning emerges from seeing one’s own connection and contribution to the whole. But being underpaid in Asia as I assemble a product for the global supply chain of, say, the iPad—what meaning and purpose can I derive from that? Very little. Today’s challenge of reinventing labor does not concern only the issues of jobs and living wages. It also concerns the issue of meaning, that is, of relinking work (jobs) with Work (passion and purpose). THE JOURNEY FROM 0.0 TO 3.0 As depicted in table 3, the role of work and labor has changed profoundly throughout history.


pages: 386 words: 91,913

The Elements of Power: Gadgets, Guns, and the Struggle for a Sustainable Future in the Rare Metal Age by David S. Abraham

3D printing, Airbus A320, carbon footprint, clean water, cleantech, commoditize, Deng Xiaoping, Elon Musk, en.wikipedia.org, glass ceiling, global supply chain, information retrieval, Intergovernmental Panel on Climate Change (IPCC), Internet of things, new economy, oil shale / tar sands, oil shock, reshoring, Robert Metcalfe, Ronald Reagan, Silicon Valley, South China Sea, Steve Ballmer, Steve Jobs, telemarketer, Tesla Model S, thinkpad, upwardly mobile, uranium enrichment, Y2K

But these supply lines are precarious, and our increasing global demands will soon stress them further. Our high-tech, green society is built on a wobbly foundation. Many have written about the economic and social effects of our international supply lines. Articles on abuse and mistreatment of workers in sweatshops and factories now abound in the press. Business journals examine which countries profit from the globalized supply chain of our electronic gadgets. Even coverage of the world’s electronic waste, burned in Africa and Asia, has now entered the global discussion. This book builds on those reports by examining the supply chain of the hidden rare metals that make modern life possible. These metals permeate our lives, allowing buildings to soar and our televisions to show vibrant colors. And because these metals are critical in green technology as well, they are the seeds of our sustainable futures, but, as a society, we know very little about them.


The Metropolitan Revolution: How Cities and Metros Are Fixing Our Broken Politics and Fragile Economy by Bruce Katz, Jennifer Bradley

3D printing, additive manufacturing, Affordable Care Act / Obamacare, British Empire, business climate, carbon footprint, clean water, cleantech, collapse of Lehman Brothers, deindustrialization, demographic transition, desegregation, double entry bookkeeping, edge city, Edward Glaeser, global supply chain, immigration reform, income inequality, industrial cluster, intermodal, Jane Jacobs, jitney, Kickstarter, knowledge economy, lone genius, Mark Zuckerberg, Masdar, megacity, Menlo Park, Moneyball by Michael Lewis explains big data, Network effects, new economy, New Urbanism, Occupy movement, place-making, postindustrial economy, purchasing power parity, race to the bottom, Richard Florida, Shenzhen was a fishing village, Silicon Valley, smart cities, smart grid, sovereign wealth fund, the built environment, The Death and Life of Great American Cities, the market place, The Spirit Level, Tony Hsieh, too big to fail, trade route, transit-oriented development, urban planning, white flight

And we have been reminded of this fact as a nation in just the past few years—that just as cities are a source of strength, they are often vulnerable to the shocks and disruptions of our modern world. When Superstorm Sandy barreled up the East Coast of the United States, making a direct hit on New York City, economic activity and commerce felt its impact all over the world. When Bangkok flooded in 2011, many global supply chains ground to a halt. Cities themselves are weakened by vulnerabilities in individual communities within the city. When one part of the city loses connection to a critical system, the stability of the entire region can be threatened. But examples of innovation happening all over the world give us good reason for optimism. In London’s rundown East End, the site of the 2012 Olympic Games, stadiums are giving way to schools, arenas are being converted into affordable housing, and thousands of new jobs are slated to come to the neighborhood.


pages: 651 words: 135,818

China into Africa: trade, aid, and influence by Robert I. Rotberg

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barriers to entry, BRICs, colonial rule, corporate governance, Deng Xiaoping, energy security, European colonialism, failed state, global supply chain, global value chain, income inequality, Khartoum Gordon, labour market flexibility, land reform, megacity, microcredit, offshore financial centre, one-China policy, out of africa, Pearl River Delta, profit maximization, purchasing power parity, RAND corporation, Scramble for Africa, South China Sea, special economic zone, structural adjustment programs, trade route, Washington Consensus, zero-sum game

This will require the implementation of reforms that foster scale economies, export diversification, and climbing the value chain. Going forward, African countries should focus on engaging the Chinese to work with African firms to enhance value-added production, both in natural resources to create backward and forward linkages domestically and in other (non–natural resource related) sectors to enable Africa to participate more effectively in global supply chains. Notes 1. Puri Lakshmi, “A Silent Revolution in South-South Trade,” World Trade Organization (Geneva, 2004), available at www.wto.org/english/tratop_e/dda_e/symp04_ paper7_e.doc (accessed 25 February 2008). 05-7561-4 ch5.qxd 9/16/08 4:14 PM Page 108 108 harry g. broadman 2. Harry G. Broadman, Africa’s Silk Road: China and India’s New Economic Frontier (Washington, D.C., 2007). 3.


pages: 421 words: 120,332

The World in 2050: Four Forces Shaping Civilization's Northern Future by Laurence C. Smith

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Bretton Woods, BRICs, clean water, Climategate, colonial rule, deglobalization, demographic transition, Deng Xiaoping, energy security, flex fuel, global supply chain, Google Earth, guest worker program, Hans Island, hydrogen economy, ice-free Arctic, informal economy, Intergovernmental Panel on Climate Change (IPCC), invention of agriculture, invisible hand, land tenure, Martin Wolf, megacity, Mikhail Gorbachev, New Urbanism, oil shale / tar sands, oil shock, peak oil, Pearl River Delta, purchasing power parity, Ronald Reagan, Ronald Reagan: Tear down this wall, side project, Silicon Valley, smart grid, sovereign wealth fund, special economic zone, The Wealth of Nations by Adam Smith, Thomas Malthus, trade liberalization, trade route, UNCLOS, UNCLOS, urban planning, Washington Consensus, Y2K

To be sure, routes are shorter across the Arctic Ocean, but the travel speeds, owing to the danger of ice, are lower.368 If the region’s emerging regulatory framework demands that only polar-class ships be allowed in, then those vessels will cost considerably more than ordinary single-hulled ships. And how attractive will a short, unpredictable shipping season really be for today’s tightly scheduled global supply chains? What about the relative lack of emergency and port services, environmental liability for oil spills, or fees charged by Russia and Canada should they reaffirm their positions that the Northwest Passage and Northern Sea Route are not international straits?369 Might the Suez and Panama canals lower their prices in response to the new competition? There are many other factors controlling the profitability of transnational shipping lanes besides a shorter geographic route, available for an uncertain few weeks to a few months out of the year.


pages: 717 words: 150,288

Cities Under Siege: The New Military Urbanism by Stephen Graham

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airport security, anti-communist, autonomous vehicles, Berlin Wall, call centre, carbon footprint, clean water, congestion charging, creative destruction, credit crunch, DARPA: Urban Challenge, defense in depth, deindustrialization, digital map, edge city, energy security, European colonialism, failed state, Food sovereignty, Gini coefficient, global supply chain, Google Earth, illegal immigration, income inequality, knowledge economy, late capitalism, loose coupling, market fundamentalism, mass incarceration, McMansion, megacity, moral panic, mutually assured destruction, Naomi Klein, New Urbanism, offshore financial centre, one-state solution, pattern recognition, peak oil, planetary scale, private military company, Project for a New American Century, RAND corporation, RFID, Richard Florida, Scramble for Africa, Silicon Valley, smart transportation, surplus humans, The Bell Curve by Richard Herrnstein and Charles Murray, urban decay, urban planning, urban renewal, urban sprawl, Washington Consensus, white flight, white picket fence

162 Stephen Flynn, ‘The False Conundrum: Continental Integration versus Homeland Security’, in The Rebordering of North America, Peter Andreas and Thomas Biersteker, eds, New York: Routledge, 2003, 11. 163 Echevarria and Tussing, From ‘Defending Forward’ to a ‘Global Defense-In-Depth’. 164 This term draws on Deborah Cowen’s idea of containing insecurity’ published in her contribution to a book I edited, Disrupted Cities: When Infrastructures Fail, New York: Routledge, 2009. 165 See Keller Easterling, Enduring Innocence, Cambridge MA: MIT Press, 2006. 166 This system organizes 90 per cent of global trade through global supply chains and advanced logistics and delivers 95 per cent of the overseas trade entering the US. 167 ‘When trade and security clash’, The Economist, 4 April 2002. 168 Jon Haveman and Howard Shatz, Protecting the Nation’s Seaports: Balancing Security and Cost, San Francisco: Public Policy Institute of California, 2006. 169 IBM, Expanded Borders, Integrated Controls, marketing brochure. 170 Cowen and Smith After Geopolitics?’.


pages: 482 words: 117,962

Exceptional People: How Migration Shaped Our World and Will Define Our Future by Ian Goldin, Geoffrey Cameron, Meera Balarajan

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Admiral Zheng, agricultural Revolution, barriers to entry, Berlin Wall, Branko Milanovic, British Empire, conceptual framework, creative destruction, demographic transition, Deng Xiaoping, endogenous growth, failed state, Fall of the Berlin Wall, Gini coefficient, global supply chain, guest worker program, illegal immigration, income inequality, income per capita, Intergovernmental Panel on Climate Change (IPCC), job automation, Joseph Schumpeter, knowledge economy, labor-force participation, labour mobility, Lao Tzu, life extension, low skilled workers, low-wage service sector, Malacca Straits, mass immigration, microcredit, Network effects, new economy, New Urbanism, old age dependency ratio, open borders, out of africa, price mechanism, purchasing power parity, Richard Florida, selection bias, Silicon Valley, Silicon Valley startup, Skype, spice trade, trade route, transaction costs, transatlantic slave trade, transatlantic slave trade, women in the workforce, working-age population

“Network diasporas,” Kuznetsov argues, “are but the latest bridge institutions connecting developing economy insiders, with their risk mitigating knowledge and connections, to outsiders in command of technical know-how and investment capital.”103 For countries to successfully tap into their overseas expertise, there need to be conditions at home that are attractive for expatriates to return to or invest in. Migrants in a diaspora are unlikely to spontaneously fire up a flailing national economy; they are a resource that can reinforce or accelerate existing positive trends.104 India's Dynamic Diaspora Network The development of global supply chains, decentralized systems of production, and modern information technologies have facilitated the transformation of brain drain from India into “diaspora networks” that are supporting the IT sector at home. India's universities are thriving, and many of its best graduates seek out jobs in Silicon Valley, where they are supported by established professional networks for Indian nationals. It is easier to start a business in the United States, but software engineers are more plentiful and inexpensive in India, so handfuls of Indian entrepreneurs have started cross-regional companies that link Silicon Valley capital with workers living in Mumbai and Bangalore.


pages: 543 words: 147,357

Them And Us: Politics, Greed And Inequality - Why We Need A Fair Society by Will Hutton

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Andrei Shleifer, asset-backed security, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Big bang: deregulation of the City of London, Bretton Woods, capital controls, carbon footprint, Carmen Reinhart, Cass Sunstein, centre right, choice architecture, cloud computing, collective bargaining, conceptual framework, Corn Laws, corporate governance, creative destruction, credit crunch, Credit Default Swap, debt deflation, decarbonisation, Deng Xiaoping, discovery of DNA, discovery of the americas, discrete time, diversification, double helix, Edward Glaeser, financial deregulation, financial innovation, financial intermediation, first-past-the-post, floating exchange rates, Francis Fukuyama: the end of history, Frank Levy and Richard Murnane: The New Division of Labor, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, Hyman Minsky, I think there is a world market for maybe five computers, income inequality, inflation targeting, interest rate swap, invisible hand, Isaac Newton, James Dyson, James Watt: steam engine, joint-stock company, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, knowledge worker, labour market flexibility, liberal capitalism, light touch regulation, Long Term Capital Management, Louis Pasteur, low-wage service sector, mandelbrot fractal, margin call, market fundamentalism, Martin Wolf, mass immigration, means of production, Mikhail Gorbachev, millennium bug, money market fund, moral hazard, moral panic, mortgage debt, Myron Scholes, Neil Kinnock, new economy, Northern Rock, offshore financial centre, open economy, Plutocrats, plutocrats, price discrimination, private sector deleveraging, purchasing power parity, quantitative easing, race to the bottom, railway mania, random walk, rent-seeking, reserve currency, Richard Thaler, Right to Buy, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, Rory Sutherland, Satyajit Das, shareholder value, short selling, Silicon Valley, Skype, South Sea Bubble, Steve Jobs, The Market for Lemons, the market place, The Myth of the Rational Market, the payments system, the scientific method, The Wealth of Nations by Adam Smith, too big to fail, unpaid internship, value at risk, Vilfredo Pareto, Washington Consensus, wealth creators, working poor, zero-sum game, éminence grise

Meanwhile, investment in public infrastructure that is typically labour intensive and has low import content will preserve more demand in Britain, rather than leaking abroad. For all these reasons, fiscal policy has become effective again, especially when interest rates are low and the exchange rate is undervalued, so less demand leaks abroad – two conditions currently enjoyed by Britain. It is not a nirvana for fiscal activism: trade openness and the advent of global supply chains mean that some demand will go overseas regardless. But the extreme argument which claims that discretionary fiscal policy has little impact on output and employment no longer holds.13 Even the IMF supports this view. Its research now suggests that fiscal policy is more effective than the old free-market ideology ever conceded, especially after credit crunches. Emanuele Baldacci and Sanjeev Gupta, deputy division chief and deputy director of the IMF’s Fiscal Affairs Division – the high priests of fiscal conservatism – together with Carlos Mulas-Granados, professor of economics at Complutense University, have examined 118 episodes of financial crisis in 99 countries between 1980 and 2008.14 On average, national output fell by 5 per cent.


pages: 497 words: 150,205

European Spring: Why Our Economies and Politics Are in a Mess - and How to Put Them Right by Philippe Legrain

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3D printing, Airbnb, Asian financial crisis, bank run, banking crisis, barriers to entry, Basel III, battle of ideas, Berlin Wall, Big bang: deregulation of the City of London, Bretton Woods, BRICs, British Empire, business process, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Celtic Tiger, central bank independence, centre right, cleantech, collaborative consumption, collapse of Lehman Brothers, collective bargaining, corporate governance, creative destruction, credit crunch, Credit Default Swap, crony capitalism, currency manipulation / currency intervention, currency peg, debt deflation, Diane Coyle, Downton Abbey, Edward Glaeser, Elon Musk, en.wikipedia.org, energy transition, eurozone crisis, fear of failure, financial deregulation, first-past-the-post, forward guidance, full employment, Gini coefficient, global supply chain, Growth in a Time of Debt, hiring and firing, hydraulic fracturing, Hyman Minsky, Hyperloop, immigration reform, income inequality, interest rate derivative, Intergovernmental Panel on Climate Change (IPCC), Irish property bubble, James Dyson, Jane Jacobs, job satisfaction, Joseph Schumpeter, Kenneth Rogoff, labour market flexibility, labour mobility, liquidity trap, margin call, Martin Wolf, mittelstand, moral hazard, mortgage debt, mortgage tax deduction, North Sea oil, Northern Rock, offshore financial centre, oil shale / tar sands, oil shock, open economy, peer-to-peer rental, price stability, private sector deleveraging, pushing on a string, quantitative easing, Richard Florida, rising living standards, risk-adjusted returns, Robert Gordon, savings glut, school vouchers, self-driving car, sharing economy, Silicon Valley, Silicon Valley startup, Skype, smart grid, smart meter, software patent, sovereign wealth fund, Steve Jobs, The Death and Life of Great American Cities, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, Tyler Cowen: Great Stagnation, working-age population, Zipcar

John Maynard Keynes, The Great Slump of 1930, 1930542 The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design. Friedrich von Hayek, The Fatal Conceit, 1988543 Change happens all the time. Some of it is reasonably predictable: higher demand for ice cream in summer. Some of it isn’t: out of nowhere, Gangnam Style became a global hit. Big changes often happen unexpectedly. The Berlin Wall falls. The Fukushima earthquake knocks out a big chunk of the Japanese economy and with it crucial links in global supply chains. Hydraulic fracturing (“fracking”) leads to a shale-gas boom that transforms America’s energy landscape – and Europe’s – within a few years. Apple was left for dead at the turn of the century, then vaulted to being the world’s most valuable listed company. American house prices never fell – and then they did. The Western financial system collapses. When such unexpected changes happen, it is often hard to know whether they will last.


pages: 448 words: 142,946

Sacred Economics: Money, Gift, and Society in the Age of Transition by Charles Eisenstein

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Albert Einstein, back-to-the-land, bank run, Bernie Madoff, big-box store, Bretton Woods, capital controls, clean water, collateralized debt obligation, commoditize, corporate raider, credit crunch, David Ricardo: comparative advantage, debt deflation, deindustrialization, delayed gratification, disintermediation, diversification, fiat currency, financial independence, financial intermediation, fixed income, floating exchange rates, Fractional reserve banking, full employment, global supply chain, God and Mammon, happiness index / gross national happiness, hydraulic fracturing, informal economy, invisible hand, Jane Jacobs, land tenure, land value tax, Lao Tzu, liquidity trap, lump of labour, McMansion, means of production, money: store of value / unit of account / medium of exchange, moral hazard, mortgage debt, new economy, off grid, oil shale / tar sands, Own Your Own Home, Paul Samuelson, peak oil, phenotype, Ponzi scheme, profit motive, quantitative easing, race to the bottom, Scramble for Africa, special drawing rights, spinning jenny, technoutopianism, the built environment, Thomas Malthus, too big to fail

They are thus similar to a standard sovereign currency with a floating exchange rate. In the absence of local government support, because complementary fiat currencies are not easily convertible into dollars, businesses are generally much less willing to accept them than they are proxy currencies. That is because in the current economic system, there is little infrastructure to source goods locally. Locally owned businesses are plugged into the same global supply chains as everyone else. Regrowing the infrastructure of local production and distribution will take time, as well as a change in macroeconomic conditions driven by the internalization of costs, the end of growth pressure, and a social and political decision to relocalize. Noneconomic factors can influence the social agreement of money. The idealism of a few that sustains local currency today will become the consensus of the many.


pages: 545 words: 137,789

How Markets Fail: The Logic of Economic Calamities by John Cassidy

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Albert Einstein, Andrei Shleifer, anti-communist, asset allocation, asset-backed security, availability heuristic, bank run, banking crisis, Benoit Mandelbrot, Berlin Wall, Bernie Madoff, Black-Scholes formula, Bretton Woods, British Empire, capital asset pricing model, centralized clearinghouse, collateralized debt obligation, Columbine, conceptual framework, Corn Laws, corporate raider, correlation coefficient, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, Daniel Kahneman / Amos Tversky, debt deflation, diversification, Elliott wave, Eugene Fama: efficient market hypothesis, financial deregulation, financial innovation, Financial Instability Hypothesis, financial intermediation, full employment, George Akerlof, global supply chain, Gunnar Myrdal, Haight Ashbury, hiring and firing, Hyman Minsky, income per capita, incomplete markets, index fund, information asymmetry, Intergovernmental Panel on Climate Change (IPCC), invisible hand, John Nash: game theory, John von Neumann, Joseph Schumpeter, Kenneth Arrow, laissez-faire capitalism, Landlord’s Game, liquidity trap, London Interbank Offered Rate, Long Term Capital Management, Louis Bachelier, mandelbrot fractal, margin call, market bubble, market clearing, mental accounting, Mikhail Gorbachev, money market fund, Mont Pelerin Society, moral hazard, mortgage debt, Myron Scholes, Naomi Klein, negative equity, Network effects, Nick Leeson, Northern Rock, paradox of thrift, Pareto efficiency, Paul Samuelson, Ponzi scheme, price discrimination, price stability, principal–agent problem, profit maximization, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, RAND corporation, random walk, Renaissance Technologies, rent control, Richard Thaler, risk tolerance, risk-adjusted returns, road to serfdom, Robert Shiller, Robert Shiller, Ronald Coase, Ronald Reagan, shareholder value, short selling, Silicon Valley, South Sea Bubble, sovereign wealth fund, statistical model, technology bubble, The Chicago School, The Great Moderation, The Market for Lemons, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, unorthodox policies, value at risk, Vanguard fund, Vilfredo Pareto, wealth creators, zero-sum game

Apple’s iPod, of which more than 175 million have been sold, was conceived in Silicon Valley; most of the software it operates on was written in Hyderabad, India; and it is manufactured in China, where Apple has outsourced production to a number of Taiwanese companies. The music player contains 451 parts, including a hard drive made by Japan’s Toshiba; two microchips produced by American companies, Broadcom and PortalPlayer; and a memory chip made by Samsung, a Korean firm. Each of these components, in turn, has a complicated global supply chain. The iPod is rightly seen as a triumph of American innovation and marketing. It is also a pocket-size emblem of the division of labor. (In June 2006, The Mail on Sunday, a British newspaper, revealed that many of the Chinese workers assembling iPods were young women who worked fifteen hours a day and lived in corporate dormitories, earning less than fifty dollars a month. Apple subsequently promised to improve the working conditions and hired a workplace standards auditing company.)


pages: 587 words: 117,894

Cybersecurity: What Everyone Needs to Know by P. W. Singer, Allan Friedman

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4chan, A Declaration of the Independence of Cyberspace, Apple's 1984 Super Bowl advert, barriers to entry, Berlin Wall, bitcoin, blood diamonds, borderless world, Brian Krebs, business continuity plan, Chelsea Manning, cloud computing, crowdsourcing, cuban missile crisis, data acquisition, drone strike, Edward Snowden, energy security, failed state, Fall of the Berlin Wall, fault tolerance, global supply chain, Google Earth, Internet of things, invention of the telegraph, John Markoff, Julian Assange, Khan Academy, M-Pesa, mutually assured destruction, Network effects, packet switching, Peace of Westphalia, pre–internet, profit motive, RAND corporation, ransomware, RFC: Request For Comment, risk tolerance, rolodex, Silicon Valley, Skype, smart grid, Steve Jobs, Stuxnet, uranium enrichment, We are Anonymous. We are Legion, web application, WikiLeaks, zero day, zero-sum game

Readers should note that the Department of Defense’s total information technology budget increased by approximately 50 percent during the same period. “$100 million helicopter” Katie Drummond, “Military’s New Plan to Weed Out Counterfeits: Plant DNA,” Danger Room (blog), Wired, January 20, 2012, http://www.wired.com/dangerroom/2012/01/dna-counterfeits/. “trusted delivery systems” Darrell West, “12 Ways to Build Trust in the Global ICT Trade,” Brookings, April 18, 2013, http://www.brookings.edu/research/papers/2013/04/18-global-supply-chain-west. “America’s digital infrastructure” Executive Office of the President of the United States, “The Comprehensive National Cybersecurity Initiative,” March 2, 2010, http://www.whitehouse.gov/sites/default/files/cybersecurity.pdf. APPROACH IT AS A PUBLIC-PRIVATE PROBLEM: HOW DO WE BETTER COORDINATE DEFENSE? “cyber-criminal gangs” Brian Krebs, “Major Source of Online Scams and Spams Knocked Offline,” Security Fix (blog), Washington Post, November 11, 2008, http://voices.washingtonpost.com/securityfix/2008/11/major_source_of_online_scams_a.html.


pages: 510 words: 120,048

Who Owns the Future? by Jaron Lanier

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3D printing, 4chan, Affordable Care Act / Obamacare, Airbnb, augmented reality, automated trading system, barriers to entry, bitcoin, book scanning, Burning Man, call centre, carbon footprint, cloud computing, commoditize, computer age, crowdsourcing, David Brooks, David Graeber, delayed gratification, digital Maoism, Douglas Engelbart, en.wikipedia.org, Everything should be made as simple as possible, facts on the ground, Filter Bubble, financial deregulation, Fractional reserve banking, Francis Fukuyama: the end of history, George Akerlof, global supply chain, global village, Haight Ashbury, hive mind, if you build it, they will come, income inequality, informal economy, information asymmetry, invisible hand, Jacquard loom, Jaron Lanier, Jeff Bezos, job automation, John Markoff, Kevin Kelly, Khan Academy, Kickstarter, Kodak vs Instagram, life extension, Long Term Capital Management, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, Metcalfe’s law, moral hazard, mutually assured destruction, Network effects, new economy, Norbert Wiener, obamacare, packet switching, Peter Thiel, place-making, Plutocrats, plutocrats, Ponzi scheme, post-oil, pre–internet, race to the bottom, Ray Kurzweil, rent-seeking, reversible computing, Richard Feynman, Richard Feynman, Ronald Reagan, self-driving car, side project, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, Skype, smart meter, stem cell, Steve Jobs, Steve Wozniak, Stewart Brand, Ted Nelson, The Market for Lemons, Thomas Malthus, too big to fail, trickle-down economics, Turing test, Vannevar Bush, WikiLeaks, zero-sum game

In the case of Wal-Mart, the captured population was the supply chain. Google’s true customers are the advertisers, who are captured. Wal-Mart’s customers weren’t the critical population for it to capture, however. Retail customers gradually became a little captured in some locations where retail choice was eventually reduced, but for the most part they could shop elsewhere if they were so inclined, but it was the optimization of the global supply chain through the use of punishing network effects that really empowered and enriched Wal-Mart. CHAPTER 14 Obscuring the Human Element Noticing the New Order Every tale of adventure lately seems to include a scene in which characters are attempting to crack the security of someone else’s computer. That’s the popular image of how power games are played out in the digital age, but such “cracking” is only a tactic, not a strategy.


pages: 466 words: 127,728

The Death of Money: The Coming Collapse of the International Monetary System by James Rickards

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Affordable Care Act / Obamacare, Asian financial crisis, asset allocation, Ayatollah Khomeini, bank run, banking crisis, Ben Bernanke: helicopter money, bitcoin, Black Swan, Bretton Woods, BRICs, business climate, capital controls, Carmen Reinhart, central bank independence, centre right, collateralized debt obligation, collective bargaining, complexity theory, computer age, credit crunch, currency peg, David Graeber, debt deflation, Deng Xiaoping, diversification, Edward Snowden, eurozone crisis, fiat currency, financial innovation, financial intermediation, financial repression, fixed income, Flash crash, floating exchange rates, forward guidance, G4S, George Akerlof, global reserve currency, global supply chain, Growth in a Time of Debt, income inequality, inflation targeting, information asymmetry, invisible hand, jitney, John Meriwether, Kenneth Rogoff, labor-force participation, labour mobility, Lao Tzu, liquidationism / Banker’s doctrine / the Treasury view, liquidity trap, Long Term Capital Management, mandelbrot fractal, margin call, market bubble, market clearing, market design, money market fund, money: store of value / unit of account / medium of exchange, mutually assured destruction, obamacare, offshore financial centre, oil shale / tar sands, open economy, Plutocrats, plutocrats, Ponzi scheme, price stability, quantitative easing, RAND corporation, reserve currency, risk-adjusted returns, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Satoshi Nakamoto, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, special drawing rights, Stuxnet, The Market for Lemons, Thomas Kuhn: the structure of scientific revolutions, Thomas L Friedman, too big to fail, trade route, uranium enrichment, Washington Consensus, working-age population, yield curve

China’s degree of financial interconnectedness with the rest of the world is lower than that of the major U.S. and European banks, so a collapse in China would be mainly a local affair, in which the Communist Party will use reserves held by its sovereign wealth funds to assuage savers and recapitalize banks. However, the aftermath will include a resumption of Chinese efforts to cap or even devalue the yuan in foreign exchange markets to promote exports, create jobs, and restore wealth lost in the collapse. In the short run, this will prove deflationary as underpriced Chinese goods once again flood into global supply chains. In the longer run, Chinese deflation will be met with U.S. and Japanese inflation, as both countries print money to offset any appreciation in the yen or the dollar. At that point, the currency wars will be reignited, never really having gone away. Not all of these seven signs may come to pass. The appearance of some signs may negate or delay others. They will not come in any particular order.


pages: 437 words: 113,173

Age of Discovery: Navigating the Risks and Rewards of Our New Renaissance by Ian Goldin, Chris Kutarna

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2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 3D printing, Airbnb, Albert Einstein, AltaVista, Asian financial crisis, asset-backed security, autonomous vehicles, banking crisis, barriers to entry, battle of ideas, Berlin Wall, bioinformatics, bitcoin, Bonfire of the Vanities, clean water, collective bargaining, Colonization of Mars, Credit Default Swap, crowdsourcing, cryptocurrency, Dava Sobel, demographic dividend, Deng Xiaoping, Doha Development Round, double helix, Edward Snowden, Elon Musk, en.wikipedia.org, epigenetics, experimental economics, failed state, Fall of the Berlin Wall, financial innovation, full employment, Galaxy Zoo, global supply chain, Hyperloop, immigration reform, income inequality, indoor plumbing, industrial cluster, industrial robot, information retrieval, Intergovernmental Panel on Climate Change (IPCC), intermodal, Internet of things, invention of the printing press, Isaac Newton, Islamic Golden Age, Khan Academy, Kickstarter, labour market flexibility, low cost carrier, low skilled workers, Lyft, Malacca Straits, mass immigration, megacity, Mikhail Gorbachev, moral hazard, Network effects, New Urbanism, non-tariff barriers, Occupy movement, On the Revolutions of the Heavenly Spheres, open economy, Panamax, Pearl River Delta, personalized medicine, Peter Thiel, post-Panamax, profit motive, rent-seeking, reshoring, Robert Gordon, Robert Metcalfe, Search for Extraterrestrial Intelligence, Second Machine Age, self-driving car, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart grid, Snapchat, special economic zone, spice trade, statistical model, Stephen Hawking, Steve Jobs, Stuxnet, TaskRabbit, The Future of Employment, too big to fail, trade liberalization, trade route, transaction costs, transatlantic slave trade, uranium enrichment, We are the 99%, We wanted flying cars, instead we got 140 characters, working poor, working-age population, zero day

London: Faber & Faber. 63. Ibid. 64. The Economist (2006, June 15). “When the Chain Breaks.” The Economist. Retrieved from www.economist.com. 65. For more on the Thailand case, see Goldin, Ian and Mike Mariathasan (2014), The Butterfly Defect. Princeton, NJ: Princeton University Press. 66. Chongvilaivan, Aekapol (2012). “Thailand’s 2011 Flooding: Its Impact on Direct Exports and Global Supply Chains.” ARTNeT Working Paper Series, No. 113. Retrieved from hdl.handle.net/10419/64271. 67. Thailand Board of Investment (2012). “Expertise, New Investment Keep Thai E&E Industry at the Top.” Thailand Investment Review. Retrieved from www.boi.go.th. 68. Abe, Masato and Linghe Ye (2013). “Building Resilient Supply Chains against Natural Disasters: The Cases of Japan and Thailand.” Global Business Review 14: 567. 69.


pages: 559 words: 155,372

Chaos Monkeys: Obscene Fortune and Random Failure in Silicon Valley by Antonio Garcia Martinez

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Airbnb, airport security, always be closing, Amazon Web Services, Burning Man, Celtic Tiger, centralized clearinghouse, cognitive dissonance, collective bargaining, corporate governance, Credit Default Swap, crowdsourcing, death of newspapers, drone strike, El Camino Real, Elon Musk, Emanuel Derman, financial independence, global supply chain, Goldman Sachs: Vampire Squid, hive mind, income inequality, information asymmetry, interest rate swap, intermodal, Jeff Bezos, Malcom McLean invented shipping containers, Marc Andreessen, Mark Zuckerberg, Maui Hawaii, means of production, Menlo Park, minimum viable product, move fast and break things, move fast and break things, Network effects, Paul Graham, performance metric, Peter Thiel, Ponzi scheme, pre–internet, Ralph Waldo Emerson, random walk, Ruby on Rails, Sand Hill Road, Scientific racism, second-price auction, self-driving car, Silicon Valley, Silicon Valley startup, Skype, Snapchat, social graph, social web, Socratic dialogue, source of truth, Steve Jobs, telemarketer, urban renewal, Y Combinator, zero-sum game, éminence grise

The box becomes a freight car when loaded onto railroad wheels, and once it arrives at a ship, it is directly hefted aboard via those immense cranes that dot every modern port. Piled like Legos on the ship, the boxes arrive at another port and are loaded onto a truck frame, and are driven to their destinations. It’s universal: whether the ship docks in Singapore or Oakland, its cargo will be swiftly loaded and unloaded via the magic of containerization. Intermodal containers make our global supply chain possible. What’s that got to do with ads? Modern digital advertising has also settled on a containerized box—or, rather, a set of them. They’re known as Internet Advertising Bureau (IAB) ad units for desktop ads, and Mobile Marketing Association (MMA) ad units for mobile. They come in the standard sizes, measured in pixels—728×90, 300×250, and so forth—of every banner ad on the Web, with other sizes for mobile.


pages: 515 words: 142,354

The Euro: How a Common Currency Threatens the Future of Europe by Joseph E. Stiglitz, Alex Hyde-White

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bank run, banking crisis, barriers to entry, battle of ideas, Berlin Wall, Bretton Woods, capital controls, Carmen Reinhart, cashless society, central bank independence, centre right, cognitive dissonance, collapse of Lehman Brothers, collective bargaining, corporate governance, correlation does not imply causation, credit crunch, Credit Default Swap, currency peg, dark matter, David Ricardo: comparative advantage, disintermediation, diversified portfolio, eurozone crisis, Fall of the Berlin Wall, fiat currency, financial innovation, full employment, George Akerlof, Gini coefficient, global supply chain, Growth in a Time of Debt, housing crisis, income inequality, incomplete markets, inflation targeting, information asymmetry, investor state dispute settlement, invisible hand, Kenneth Arrow, Kenneth Rogoff, knowledge economy, labour market flexibility, labour mobility, light touch regulation, manufacturing employment, market bubble, market friction, market fundamentalism, Martin Wolf, Mexican peso crisis / tequila crisis, money market fund, moral hazard, mortgage debt, neoliberal agenda, new economy, open economy, paradox of thrift, pension reform, pensions crisis, price stability, profit maximization, purchasing power parity, quantitative easing, race to the bottom, risk-adjusted returns, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, secular stagnation, Silicon Valley, sovereign wealth fund, the payments system, The Wealth of Nations by Adam Smith, too big to fail, transaction costs, transfer pricing, trickle-down economics, Washington Consensus, working-age population

But the appropriate response is not to reconfigure entire currency arrangements but to regulate and reform the financial sector.) There is another kind of transaction cost that sharing a currency may reduce: the exchange-rate risk going forward of longer-term investments that we discussed earlier in the chapter. But these costs have had at best a second-order effect in major production and supply chain decisions. China, for instance, has become integrally incorporated into the global supply chain, in spite of exchange-rate risk as well as political and supply-side risks. Of course, if the benefits of integration were small, then these costs might be an impediment; but by the same token, the welfare losses (for instance, from increased costs of production) arising from the lack of integration would also likely be small. One economic risk totally overwhelms these small benefits. With flexible—fully or “managed” flexible exchange rates—exchange rates can be realigned as circumstances change.

The Great Turning: From Empire to Earth Community by David C. Korten

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Albert Einstein, banks create money, big-box store, Bretton Woods, British Empire, clean water, colonial rule, Community Supported Agriculture, death of newspapers, declining real wages, European colonialism, Francisco Pizarro, full employment, George Gilder, global supply chain, global village, God and Mammon, Hernando de Soto, Howard Zinn, informal economy, Intergovernmental Panel on Climate Change (IPCC), invisible hand, joint-stock company, land reform, market bubble, market fundamentalism, Monroe Doctrine, Naomi Klein, neoliberal agenda, new economy, peak oil, planetary scale, Plutocrats, plutocrats, Project for a New American Century, Ronald Reagan, Rosa Parks, sexual politics, source of truth, South Sea Bubble, stem cell, structural adjustment programs, The Chicago School, trade route, Washington Consensus, wealth creators, World Values Survey

Four conditions combine to produce an unprecedented threat to the status quo. 1. The imminent encounter with the point at which oil production peaks and goes into inexorable decline will eliminate the energy The Imperative 71 subsidies on which much of the capital infrastructure of the corporate global economy depends. 2. Severe weather events and climatic changes associated with global warming will disrupt food production and global supply chains. 3. A collapse in the international exchange value of the U.S. dollar will force the United States to restructure its economy to live within its means; those countries that have built economies geared to exporting to U.S. markets will need to redirect their attention to producing for their own domestic markets. 4. The changing terms of warfare will bring an end to the ability of militarily powerful nations to seize with impunity the resources of weaker nations.


pages: 411 words: 114,717

Breakout Nations: In Pursuit of the Next Economic Miracles by Ruchir Sharma

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3D printing, affirmative action, Albert Einstein, American energy revolution, anti-communist, Asian financial crisis, banking crisis, Berlin Wall, BRICs, British Empire, business climate, business process, business process outsourcing, call centre, capital controls, Carmen Reinhart, central bank independence, centre right, cloud computing, collective bargaining, colonial rule, corporate governance, creative destruction, crony capitalism, deindustrialization, demographic dividend, Deng Xiaoping, eurozone crisis, Gini coefficient, global supply chain, housing crisis, income inequality, indoor plumbing, inflation targeting, informal economy, Kenneth Rogoff, knowledge economy, labor-force participation, labour market flexibility, land reform, M-Pesa, Mahatma Gandhi, Marc Andreessen, market bubble, mass immigration, megacity, Mexican peso crisis / tequila crisis, new economy, oil shale / tar sands, oil shock, open economy, Peter Thiel, planetary scale, quantitative easing, reserve currency, Robert Gordon, Shenzhen was a fishing village, Silicon Valley, software is eating the world, sovereign wealth fund, The Great Moderation, Thomas L Friedman, trade liberalization, Watson beat the top human players on Jeopardy!, working-age population, zero-sum game

Today U.S. manufacturers buy 15 percent of their parts and materials from emerging markets, up from 9 percent just fifteen years ago, and these connections are still growing. Trade between nations is rising much faster than income within nations. Back in 1960 every percentage point increase in global income was accompanied by a 2 percent increase in trade flows; today every percentage point increase in income is matched by a 4 percent rise in trade. The increasing integration of global supply chains is a major reason why developed and developing economies began to expand and contract in sync over the last decade. It is also why emerging markets, too, can expect a shift to more frequent downturns. If the historical record cited above is any guide, the expansion phases are likely to shorten by a half or more to around three years across the global economy. The Upside of Hard Landings Volatility may be scary, but it is not necessarily bad for long-term growth.


pages: 523 words: 143,139

Algorithms to Live By: The Computer Science of Human Decisions by Brian Christian, Tom Griffiths

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4chan, Ada Lovelace, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, Albert Einstein, algorithmic trading, anthropic principle, asset allocation, autonomous vehicles, Bayesian statistics, Berlin Wall, Bill Duvall, bitcoin, Community Supported Agriculture, complexity theory, constrained optimization, cosmological principle, cryptocurrency, Danny Hillis, David Heinemeier Hansson, delayed gratification, dematerialisation, diversification, Donald Knuth, double helix, Elon Musk, fault tolerance, Fellow of the Royal Society, Firefox, first-price auction, Flash crash, Frederick Winslow Taylor, George Akerlof, global supply chain, Google Chrome, Henri Poincaré, information retrieval, Internet Archive, Jeff Bezos, John Nash: game theory, John von Neumann, knapsack problem, Lao Tzu, Leonard Kleinrock, linear programming, martingale, Nash equilibrium, natural language processing, NP-complete, P = NP, packet switching, Pierre-Simon Laplace, prediction markets, race to the bottom, RAND corporation, RFC: Request For Comment, Robert X Cringely, sealed-bid auction, second-price auction, self-driving car, Silicon Valley, Skype, sorting algorithm, spectrum auction, Steve Jobs, stochastic process, Thomas Bayes, Thomas Malthus, traveling salesman, Turing machine, urban planning, Vickrey auction, Vilfredo Pareto, Walter Mischel, Y Combinator, zero-sum game

The biggest purchaser of kale the year before had been Pizza Hut, which put it in their salad bars—as decoration. Some of the most fundamental domains of human life, such as the question of what we should put in our bodies, seem curiously to be the ones most dominated by short-lived fads. Part of what enables these fads to take the world by storm is how quickly our culture can change. Information now flows through society faster than ever before, while global supply chains enable consumers to rapidly change their buying habits en masse (and marketing encourages them to do so). If some particular study happens to suggest a health benefit from, say, star anise, it can be all over the blogosphere within the week, on television the week after that, and in seemingly every supermarket in six months, with dedicated star anise cookbooks soon rolling off the presses.


pages: 537 words: 158,544

Second World: Empires and Influence in the New Global Order by Parag Khanna

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Admiral Zheng, affirmative action, anti-communist, Asian financial crisis, Bartolomé de las Casas, Branko Milanovic, British Empire, call centre, capital controls, central bank independence, cognitive dissonance, colonial rule, complexity theory, continuation of politics by other means, crony capitalism, Deng Xiaoping, Dissolution of the Soviet Union, Donald Trump, Edward Glaeser, energy security, European colonialism, facts on the ground, failed state, flex fuel, Francis Fukuyama: the end of history, friendly fire, Gini coefficient, global reserve currency, global supply chain, haute couture, Hernando de Soto, illegal immigration, income inequality, informal economy, invisible hand, Islamic Golden Age, Khyber Pass, knowledge economy, land reform, low skilled workers, mass immigration, means of production, megacity, Monroe Doctrine, oil shale / tar sands, oil shock, open borders, open economy, Parag Khanna, Pax Mongolica, Pearl River Delta, pirate software, Plutonomy: Buying Luxury, Explaining Global Imbalances, Potemkin village, price stability, race to the bottom, RAND corporation, reserve currency, rising living standards, Ronald Reagan, Silicon Valley, Skype, South China Sea, special economic zone, stem cell, Stephen Hawking, Thomas L Friedman, trade route, trickle-down economics, uranium enrichment, urban renewal, Washington Consensus, women in the workforce

When the Malaysian Federation expelled Singapore in 1965, it left Lee Kuan Yew and his band of migrants with no army, a “Chinese island in a Malay sea.”15 Lee inculcated self-reliance by organizing tree-planting contests, building Singapore into the very archetype of a global city, using foreign capital to finance a world-class infrastructure of roads, airports, hospitals, and schools—and a civil service to administer them. As one swerves along its perfectly paved, leafy avenues, tardiness is impossible. “America is third-world compared to us,” Singaporeans frequently joke. “Singapore is virtually synonymous with globalization,” a multinational businessman reminded, pointing out how frequently he has changed jobs with the times. For decades it has constantly shifted its place in the global supply chain, becoming a center of oil-refinery and oil-rig construction even though it has no oil. Its new Biopolis for life sciences (including stem cell) research attracts Western scientists seeking hassle-free employment. The world-class port management, controlled prostitution, casinos, and simplified citizenship for professionals that Dubai envies are all already a reality in “Singapore, Inc.” In the precious little space of Singapore, acreage is zoned years in advance to anticipate future housing and industry needs; high-tech industrial areas are referred to as “estates.”


pages: 409 words: 118,448

An Extraordinary Time: The End of the Postwar Boom and the Return of the Ordinary Economy by Marc Levinson

affirmative action, airline deregulation, banking crisis, Big bang: deregulation of the City of London, Boycotts of Israel, Bretton Woods, Capital in the Twenty-First Century by Thomas Piketty, car-free, Carmen Reinhart, central bank independence, centre right, clean water, deindustrialization, endogenous growth, falling living standards, financial deregulation, floating exchange rates, full employment, George Gilder, Gini coefficient, global supply chain, income inequality, income per capita, indoor plumbing, informal economy, intermodal, invisible hand, Kenneth Rogoff, knowledge economy, late capitalism, linear programming, lump of labour, manufacturing employment, new economy, Nixon shock, North Sea oil, oil shock, Paul Samuelson, pension reform, price stability, purchasing power parity, refrigerator car, Right to Buy, rising living standards, Robert Gordon, rolodex, Ronald Coase, Ronald Reagan, Simon Kuznets, statistical model, strikebreaker, structural adjustment programs, Thomas Malthus, total factor productivity, unorthodox policies, upwardly mobile, War on Poverty, Washington Consensus, Winter of Discontent, Wolfgang Streeck, women in the workforce, working-age population, yield curve, Yom Kippur War, zero-sum game

It accounted for three-quarters of the world’s population in 1973, as crisis enveloped Western Europe, the United States, Canada, and Japan, but only a third of the world’s output of goods and services. China, with an income per person one-twentieth that of the United States, had yet to launch the economic reforms that would turbocharge its growth in later decades. And Southeast Asia, far from being a critical link in global supply chains, seemed hopelessly crippled by war and internal violence. The Third World was connected to the international economy mainly as a source of raw materials. It supplied a scant 7 percent of the world’s exports of manufactured goods. The Third World’s explosive growth in the 1970s was fueled by the petrodollars that were causing such worry for central bankers like Gordon Richardson and Arthur Burns.


pages: 504 words: 126,835

The Innovation Illusion: How So Little Is Created by So Many Working So Hard by Fredrik Erixon, Bjorn Weigel

Airbnb, Albert Einstein, asset allocation, autonomous vehicles, barriers to entry, Basel III, Bernie Madoff, bitcoin, Black Swan, blockchain, BRICs, Burning Man, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, Clayton Christensen, Colonization of Mars, commoditize, corporate governance, corporate social responsibility, creative destruction, crony capitalism, dark matter, David Graeber, David Ricardo: comparative advantage, discounted cash flows, distributed ledger, Donald Trump, Elon Musk, Erik Brynjolfsson, fear of failure, first square of the chessboard / second half of the chessboard, Francis Fukuyama: the end of history, George Gilder, global supply chain, global value chain, Google Glasses, Google X / Alphabet X, Gordon Gekko, high net worth, hiring and firing, Hyman Minsky, income inequality, income per capita, index fund, industrial robot, Internet of things, Jeff Bezos, job automation, job satisfaction, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, joint-stock company, Joseph Schumpeter, Just-in-time delivery, Kevin Kelly, knowledge economy, labour market flexibility, laissez-faire capitalism, lump of labour, Lyft, manufacturing employment, Mark Zuckerberg, market design, Martin Wolf, mass affluent, means of production, Mont Pelerin Society, Network effects, new economy, offshore financial centre, pensions crisis, Peter Thiel, Potemkin village, price mechanism, principal–agent problem, Productivity paradox, QWERTY keyboard, RAND corporation, Ray Kurzweil, rent-seeking, risk tolerance, risk/return, Robert Gordon, Ronald Coase, Ronald Reagan, savings glut, Second Machine Age, secular stagnation, Silicon Valley, Silicon Valley startup, Skype, sovereign wealth fund, Steve Ballmer, Steve Jobs, Steve Wozniak, technological singularity, telemarketer, The Chicago School, The Future of Employment, The Nature of the Firm, The Wealth of Nations by Adam Smith, too big to fail, total factor productivity, transaction costs, transportation-network company, tulip mania, Tyler Cowen: Great Stagnation, University of East Anglia, unpaid internship, Vanguard fund, Yogi Berra

Many industrial conglomerates have divested but few have done so in order to move capital into what could only be described as a very uncertain sector. Nokia’s new strategy was decided long before the cell-phone market revolution had gathered speed and one can only admire Nokia’s decision to abandon what was familiar for something uncertain. The strategy paid off – handsomely. Thirteen years later Nokia had sold over 1 billion phones. It mastered, even spearheaded, the practice of new market sales and lean operations through globalized supply chains. In 2007 the Nokia brand was the fifth most valued in the world. At its peak, the company’s stock market value exceeded $350 billion. Nokia is an example of a company that did not just develop a technology but brought it successfully to market through a good deal of creative destruction. It was not afraid, at least not at that point in time, to practice the logic of destruction: hiving off products to make space for something else that could generate greater profits.


India's Long Road by Vijay Joshi

Affordable Care Act / Obamacare, barriers to entry, Basel III, basic income, blue-collar work, Bretton Woods, business climate, capital controls, central bank independence, clean water, collapse of Lehman Brothers, collective bargaining, colonial rule, congestion charging, corporate governance, creative destruction, crony capitalism, decarbonisation, deindustrialization, demographic dividend, demographic transition, Doha Development Round, eurozone crisis, facts on the ground, failed state, financial intermediation, financial repression, first-past-the-post, floating exchange rates, full employment, germ theory of disease, Gini coefficient, global supply chain, global value chain, hiring and firing, income inequality, Indoor air pollution, Induced demand, inflation targeting, invisible hand, land reform, Mahatma Gandhi, manufacturing employment, Martin Wolf, means of production, microcredit, moral hazard, obamacare, Pareto efficiency, price mechanism, price stability, principal–agent problem, profit maximization, profit motive, purchasing power parity, quantitative easing, race to the bottom, randomized controlled trial, rent-seeking, reserve currency, rising living standards, school choice, school vouchers, secular stagnation, Silicon Valley, smart cities, South China Sea, special drawing rights, The Future of Employment, The Market for Lemons, too big to fail, total factor productivity, trade liberalization, transaction costs, universal basic income, urban sprawl, working-age population

The number of PTAs in the world economy has shot up from 70 in 1990 to around 350 in 2013. (According to the WTO, every country, except Mongolia, is part of at least one PTA!) This suggests that PTAs are undertaken for motives such as the desire to bind partner countries to lower and more stable levels of ‘behind the border’ barriers to trade. The desire follows quite naturally from the growth of ‘offshoring’, ‘global supply chains’, and ‘international fragmentation of production’. It is now quite usual to find manufactured products whose parts and components are made in several different countries and assembled in yet another country, with only design and coordination functions performed in the home-​country headquarters. Though India is as yet largely uninvolved, ‘network trade’ is estimated to account for around 50 per cent of the world trade in manufactured goods.


pages: 416 words: 129,308

The One Device: The Secret History of the iPhone by Brian Merchant

Airbnb, Apple II, Apple's 1984 Super Bowl advert, citizen journalism, Claude Shannon: information theory, computer vision, conceptual framework, Douglas Engelbart, Dynabook, Edward Snowden, Elon Musk, Ford paid five dollars a day, Frank Gehry, global supply chain, Google Earth, Google Hangouts, Internet of things, Jacquard loom, Jacquard loom, John Gruber, John Markoff, Jony Ive, Lyft, M-Pesa, more computing power than Apollo, Mother of all demos, natural language processing, new economy, New Journalism, Norbert Wiener, offshore financial centre, oil shock, pattern recognition, peak oil, pirate software, profit motive, QWERTY keyboard, ride hailing / ride sharing, rolodex, Silicon Valley, Silicon Valley startup, skunkworks, Skype, Snapchat, special economic zone, speech recognition, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Tim Cook: Apple, Turing test, Upton Sinclair, Vannevar Bush, zero day

A web of transit lines spans the area around Atacama, and the next day, Enrique, Jason, and I spend hours driving down private mining roads, passing semitrucks and tankers hauling lithium and potassium or returning to the salar for another load. More memorials marking fatal accidents dot the sides of the road. On the rare occasions it rains, flooding can shut down the entire operation and send a ripple through the entire global-supply chain. But mostly, the plight belongs to wearied drivers, taking extra trips to earn extra money and pushing the limits. There’s no spectacular white desert at Salar del Carmen, just a series of towering cylinders, a couple more pools, and rows of thrumming machinery. The refinery operation is an industrial winter wonderland. Salt crystals grow on the reactors, and lithium flakes fall like snow on my shoulders.


pages: 472 words: 117,093

Machine, Platform, Crowd: Harnessing Our Digital Future by Andrew McAfee, Erik Brynjolfsson

3D printing, additive manufacturing, AI winter, Airbnb, airline deregulation, airport security, Albert Einstein, Amazon Mechanical Turk, Amazon Web Services, artificial general intelligence, augmented reality, autonomous vehicles, backtesting, barriers to entry, bitcoin, blockchain, book scanning, British Empire, business process, carbon footprint, Cass Sunstein, centralized clearinghouse, Chris Urmson, cloud computing, cognitive bias, commoditize, complexity theory, computer age, creative destruction, crony capitalism, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Dean Kamen, discovery of DNA, disintermediation, distributed ledger, double helix, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, ethereum blockchain, everywhere but in the productivity statistics, family office, fiat currency, financial innovation, George Akerlof, global supply chain, Hernando de Soto, hive mind, information asymmetry, Internet of things, inventory management, iterative process, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, joint-stock company, Joseph Schumpeter, Kickstarter, law of one price, Lyft, Machine translation of "The spirit is willing, but the flesh is weak." to Russian and back, Marc Andreessen, Mark Zuckerberg, meta analysis, meta-analysis, moral hazard, multi-sided market, Myron Scholes, natural language processing, Network effects, new economy, Norbert Wiener, Oculus Rift, PageRank, pattern recognition, peer-to-peer lending, performance metric, Plutocrats, plutocrats, precision agriculture, prediction markets, pre–internet, price stability, principal–agent problem, Ray Kurzweil, Renaissance Technologies, Richard Stallman, ride hailing / ride sharing, risk tolerance, Ronald Coase, Satoshi Nakamoto, Second Machine Age, self-driving car, sharing economy, Silicon Valley, Skype, slashdot, smart contracts, Snapchat, speech recognition, statistical model, Steve Ballmer, Steve Jobs, Steven Pinker, supply-chain management, TaskRabbit, Ted Nelson, The Market for Lemons, The Nature of the Firm, Thomas L Friedman, too big to fail, transaction costs, transportation-network company, traveling salesman, two-sided market, Uber and Lyft, Uber for X, Watson beat the top human players on Jeopardy!, winner-take-all economy, yield management, zero day

The Korean company Samsung had been a dominant force early in the smartphone era as it rolled out a series of popular phones and tablets, but it, too, eventually saw sales and earnings deteriorate. Total unit sales in 2016, after four consecutive years of decline, were lower than they had been since 2011. Modern smartphones are incredibly complicated devices that must be designed well and built reliably. The engineering expertise and global supply chain capabilities required to do this are so formidable that only a handful of companies in the world ever try. Yet, as expectations and specifications continually change, few of them make much money for any length of time, even though they serve an enormous global market that has emerged in less than a decade. Instead, profits have gone to the platform providers. By one estimate, Apple captured 91% of global smartphone profits in 2015.


pages: 410 words: 119,823

Radical Technologies: The Design of Everyday Life by Adam Greenfield

3D printing, Airbnb, augmented reality, autonomous vehicles, bank run, barriers to entry, basic income, bitcoin, blockchain, business intelligence, business process, call centre, cellular automata, centralized clearinghouse, centre right, Chuck Templeton: OpenTable, cloud computing, collective bargaining, combinatorial explosion, Computer Numeric Control, computer vision, Conway's Game of Life, cryptocurrency, David Graeber, dematerialisation, digital map, distributed ledger, drone strike, Elon Musk, ethereum blockchain, facts on the ground, fiat currency, global supply chain, global village, Google Glasses, IBM and the Holocaust, industrial robot, informal economy, information retrieval, Internet of things, James Watt: steam engine, Jane Jacobs, Jeff Bezos, job automation, John Conway, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, joint-stock company, Kevin Kelly, Kickstarter, late capitalism, license plate recognition, lifelogging, M-Pesa, Mark Zuckerberg, means of production, megacity, megastructure, minimum viable product, money: store of value / unit of account / medium of exchange, natural language processing, Network effects, New Urbanism, Occupy movement, Oculus Rift, Pareto efficiency, pattern recognition, Pearl River Delta, performance metric, Peter Eisenman, Peter Thiel, planetary scale, Ponzi scheme, post scarcity, RAND corporation, recommendation engine, RFID, rolodex, Satoshi Nakamoto, self-driving car, sentiment analysis, shareholder value, sharing economy, Silicon Valley, smart cities, smart contracts, sorting algorithm, special economic zone, speech recognition, stakhanovite, statistical model, stem cell, technoutopianism, Tesla Model S, the built environment, The Death and Life of Great American Cities, The Future of Employment, transaction costs, Uber for X, universal basic income, urban planning, urban sprawl, Whole Earth Review, WikiLeaks, women in the workforce

Writers like Srnicek and Williams even propose this be accomplished as nearly as possible without the application of human effort, leading to a state of being since described by others—with tongue only partly in cheek—as “Fully Automated Luxury Communism.”7 As a consequence, we would have to rethink the organization of the built environment. We know that economic forces, and requirements founded in the material conditions of production, shape the organization of human settlements at every scale. Local and precise control over the physical form of things therefore challenges the way we think about the spatial form and social life of cities. To offer just two examples: should local fabrication eliminate extended global supply chains, much of the land we now dedicate to warehousing and distribution could be repurposed, along with the transport capacity now required to move things around. And if we consider that retail is primarily the short-term storage and display for sale of branded goods, the implications of widespread fabrication are equally clear. Should it at all undercut the business model on which retail depends, a good deal of the street frontage our cities now consecrate to that purpose would be freed up to serve other ends.


pages: 859 words: 204,092

When China Rules the World: The End of the Western World and the Rise of the Middle Kingdom by Martin Jacques

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Admiral Zheng, Asian financial crisis, Berlin Wall, Bob Geldof, Bretton Woods, BRICs, British Empire, credit crunch, Dava Sobel, deindustrialization, Deng Xiaoping, deskilling, discovery of the americas, Doha Development Round, energy security, European colonialism, failed state, Fall of the Berlin Wall, Francis Fukuyama: the end of history, global reserve currency, global supply chain, illegal immigration, income per capita, invention of gunpowder, James Watt: steam engine, joint-stock company, Kenneth Rogoff, land reform, land tenure, Malacca Straits, Martin Wolf, Naomi Klein, new economy, New Urbanism, one-China policy, open economy, Pearl River Delta, pension reform, price stability, purchasing power parity, reserve currency, rising living standards, Ronald Reagan, Scramble for Africa, Silicon Valley, South China Sea, sovereign wealth fund, special drawing rights, special economic zone, spinning jenny, Spread Networks laid a new fibre optics cable between New York and Chicago, the scientific method, Thomas L Friedman, trade liberalization, urban planning, Washington Consensus, Westphalian system, Xiaogang Anhui farmers, zero-sum game

An obvious area is commodities, with Chinalco’s stake in Rio Tinto, the Anglo-Australian mining group, an example.130 With many Western companies suffering from a serious shortage of cash as a result of the credit crunch, the takeover opportunities for cash-rich Chinese companies, the oil companies in particular, are likely to be considerable, with Western political opposition weakened by the recession.131 Meanwhile the establishment of the China Investment Corporation, armed with funds of $200 billion, of which some $80 billion is for external investment, could give China growing potential leverage over those foreign companies in which it decides to invest.132 Finally, we should not forget the increasing importance of Chinese subcontractors as ‘systems integrator’ firms in the global supply chain of many foreign multinationals, a development which might, in the long term at least, prove to have a wider strategic significance for these multinationals in terms of their management, research capability and even ownership.133 Crucial to the creation of international firms is overseas direct investment. One forecast has suggested that as early as 2010 China’s outward direct investment will overtake foreign direct inward investment.


pages: 598 words: 172,137

Who Stole the American Dream? by Hedrick Smith

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Affordable Care Act / Obamacare, Airbus A320, airline deregulation, anti-communist, asset allocation, banking crisis, Bonfire of the Vanities, British Empire, business process, clean water, cloud computing, collateralized debt obligation, collective bargaining, commoditize, corporate governance, Credit Default Swap, credit default swaps / collateralized debt obligations, currency manipulation / currency intervention, David Brooks, Deng Xiaoping, desegregation, Double Irish / Dutch Sandwich, family office, full employment, global supply chain, Gordon Gekko, guest worker program, hiring and firing, housing crisis, Howard Zinn, income inequality, index fund, industrial cluster, informal economy, invisible hand, Joseph Schumpeter, Kenneth Rogoff, Kitchen Debate, knowledge economy, knowledge worker, laissez-faire capitalism, late fees, Long Term Capital Management, low cost carrier, manufacturing employment, market fundamentalism, Maui Hawaii, mega-rich, mortgage debt, negative equity, new economy, Occupy movement, Own Your Own Home, Paul Samuelson, Peter Thiel, Plutonomy: Buying Luxury, Explaining Global Imbalances, Ponzi scheme, Powell Memorandum, Ralph Nader, RAND corporation, Renaissance Technologies, reshoring, rising living standards, Robert Bork, Robert Shiller, Robert Shiller, rolodex, Ronald Reagan, shareholder value, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Steve Jobs, The Chicago School, The Spirit Level, too big to fail, transaction costs, transcontinental railway, union organizing, Unsafe at Any Speed, Vanguard fund, We are the 99%, women in the workforce, working poor, Y2K

“And as the item is scanned through the front checkout, the item is tracked, and you’re able to determine what flavor’s sellin’, how much you’re makin’ on that item … and an order is automatically generated that evening at midnight and it’s sittin’ back on the shelf the next night or the following night…. It’s just really incredible.” “Wal-Mart, as an efficiency machine, has just done better than any other U.S. retailer—or, perhaps, any other U.S. company in history,” observed Duke University professor Gary Gereffi, who studies global supply chains. “They were more single-minded in terms of global cost cutting and internal efficiency than any other U.S. retailer. And that helps us understand how and why they were able to pass companies like Kmart and Sears that were the early leaders in U.S. retailing and offshore sourcing.” The Shift from “Push” to “Pull” With its blinding informational efficiency, Wal-Mart became a world leader in logistics, number one in the science of just-in-time supply from a global network of suppliers.


pages: 829 words: 229,566

This Changes Everything: Capitalism vs. The Climate by Naomi Klein

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1960s counterculture, activist fund / activist shareholder / activist investor, battle of ideas, Berlin Wall, big-box store, bilateral investment treaty, British Empire, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, clean water, Climategate, cognitive dissonance, colonial rule, Community Supported Agriculture, complexity theory, crony capitalism, decarbonisation, deindustrialization, dematerialisation, Donald Trump, Downton Abbey, energy security, energy transition, equal pay for equal work, Exxon Valdez, failed state, Fall of the Berlin Wall, feminist movement, financial deregulation, food miles, Food sovereignty, global supply chain, hydraulic fracturing, ice-free Arctic, immigration reform, income per capita, Intergovernmental Panel on Climate Change (IPCC), Internet Archive, invention of the steam engine, invisible hand, Isaac Newton, James Watt: steam engine, light touch regulation, market fundamentalism, moral hazard, Naomi Klein, new economy, Nixon shock, Occupy movement, offshore financial centre, oil shale / tar sands, open borders, patent troll, Pearl River Delta, planetary scale, post-oil, profit motive, quantitative easing, race to the bottom, Ralph Waldo Emerson, Rana Plaza, Ronald Reagan, smart grid, special economic zone, Stephen Hawking, Stewart Brand, structural adjustment programs, Ted Kaczynski, the scientific method, The Wealth of Nations by Adam Smith, trade route, transatlantic slave trade, transatlantic slave trade, trickle-down economics, Upton Sinclair, uranium enrichment, urban planning, urban sprawl, wages for housework, walkable city, Washington Consensus, Whole Earth Catalog, WikiLeaks

DONATION POLICY: “Corporate Donation Policy,” How We Work, Environmental Defense Fund, http://www.edf.org; “WOULD UNDERMINE”: Eric Pooley, “Viewpoint: Naomi Klein’s Criticism of Environmental Groups Missed the Mark,” Climate Progress, September 11, 2013; Michelle Harvey, “Working Toward Sustainability with Walmart,” Environmental Defense Fund, September 18, 2013; FAMILY-CONTROLLED: 2012 Form 990, Attachment 14, Walton Family Foundation, https://www.guidestar.org; NO DIRECT DONATIONS: Stephanie Clifford, “Unexpected Ally Helps Wal-Mart Cut Waste,” New York Times, April 13, 2012; SAM RAWLINGS WALTON: “Our Board of Trustees,” About Us, Environmental Defense Fund, http://www .edf.org. 41. Stacy Mitchell, “Walmart Heirs Quietly Fund Walmart’s Environmental Allies,” Grist, May 10, 2012; Stacy Mitchell, “Walmart’s Assault on the Climate,” Institute for Local Self-Reliance, November 2013. 42. “2011 Grant Report,” Walton Family Foundation, http://www.waltonfamilyfoundation.org; “Walmart Announces Goal to Eliminate 20 Million Metric Tons of Greenhouse Gas Emissions from Global Supply Chain,” Environmental Defense Fund, press release, February 25, 2010; Daniel Zwerdling and Margot Williams, “Is Sustainable-Labeled Seafood Really Sustainable?,” NPR, February 11, 2013; “Walmart Adds a New Facet to Its Fine Jewelry Lines: Traceability,” Walmart, July 15, 2008, http://news.walmart.com; Mitchell, “Walmart Heirs Quietly Fund Walmart’s Environmental Allies.” 43. McIntosh, “Where Now ‘Hell and High Water’?”


pages: 602 words: 177,874

Thank You for Being Late: An Optimist's Guide to Thriving in the Age of Accelerations by Thomas L. Friedman

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3D printing, additive manufacturing, affirmative action, Airbnb, AltaVista, Amazon Web Services, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Berlin Wall, Bernie Sanders, bitcoin, blockchain, Bob Noyce, business process, call centre, centre right, Chris Wanstrath, Clayton Christensen, clean water, cloud computing, corporate social responsibility, creative destruction, crowdsourcing, David Brooks, demand response, demographic dividend, demographic transition, Deng Xiaoping, Donald Trump, Erik Brynjolfsson, failed state, Fall of the Berlin Wall, Ferguson, Missouri, first square of the chessboard / second half of the chessboard, Flash crash, game design, gig economy, global supply chain, illegal immigration, immigration reform, income inequality, indoor plumbing, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the steam engine, inventory management, Irwin Jacobs: Qualcomm, Jeff Bezos, job automation, John Markoff, John von Neumann, Khan Academy, Kickstarter, knowledge economy, knowledge worker, land tenure, linear programming, Live Aid, low skilled workers, Lyft, Marc Andreessen, Mark Zuckerberg, mass immigration, Maui Hawaii, Menlo Park, Mikhail Gorbachev, mutually assured destruction, pattern recognition, planetary scale, pull request, Ralph Waldo Emerson, ransomware, Ray Kurzweil, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, South China Sea, Steve Jobs, supercomputer in your pocket, TaskRabbit, Thomas L Friedman, transaction costs, Transnistria, urban decay, urban planning, Watson beat the top human players on Jeopardy!, WikiLeaks, women in the workforce, Y2K, Yogi Berra, zero-sum game

.: Social technologies are how we organize to capture the benefits of cooperation—non-zero-sum games. Physical technologies and social technologies coevolve. Physical technology innovations make new social technologies possible, like fossil fuel technologies made mass production possible, smartphones make the sharing economy possible. And vice versa, social technologies make new physical technologies possible—Steve Jobs couldn’t have made the smartphone without a global supply chain. But there is one big difference between these two forms of technology, he added: Physical technologies evolve at the pace of science—fast and getting exponentially faster, while social technologies evolve at the pace at which humans can change—much slower. While physical technology change creates new marvels, new gadgets, better medicine, social technology change often creates huge social stresses and turmoil, like the Arab Spring countries trying to go from tribal autocracies to rule of law democracies.