China and Taiwan GATE

1. China and Taiwan GATE Prof. Tony O’Driscoll

2. Agenda Civilization, Culture, Leadership and GATE Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

3. GATE FOCUS: Why not How GATE experience should NOT focus solely on HOW to do business in a given region, but also on WHY business is conducted the way it is in the region.

4. 2012 Leadership Transitions

5. Agenda Civilization, Culture, Leadership and GATE Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

6. Social Relations: Relational Models (RMs) There are only four fundamental RMs that generate coordination systems in every domain of sociality in every culture….Just as four basic forces generate the complex and varied structures of the physical universe, four basic social bonds generate the complex and varied structures of the social universe Fiske and Haslam RM Domains Relational Model (RM)

7. Relational Model Domains Each culture implements the four RMs in many distinct ways and in different combinations. In a particular culture, a given aspect of a given domain of sociality may be organized by any of the RMs, and the way each aspect is organized may change historically. Fiske and Haslam

8. Activity: US/China Relational Models • Form teams of 3-4 • Allocate 100 points across CS, AR, EM, MP • Identify Key Domain for top two RMs • Explain rationale for Allocation and Domains 10m 100 90 80 70 60 50 40 30 20 10 CS AR EM MP

9. China’s Relational Model Composite CCMBA 2012 CCMBA 2011 CCMBA 2013 Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai,) From Pre-Residency Blog.

10. China RM (Post Residency) Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai) from Post Residency Case Study Deliverable.

11. Composite Relational Models Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai, London, Dubai, Delhi, St. Petersburg) from Post Residency Case Study Deliverable.

12. Agenda Civilization, Culture, Leadership and GATE Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

13. Culture: Defining Cultural Dimensions Culture is the set of beliefs and values about what is desirable and understandable in a community of people, and a set of formal or informal practices to support those values Javidan and House Cultural Dimensions (CD) CD Descriptors Source: Culture Leadership and Organizations, The GLOBE Study

14. Activity: US/China Cultural Dimensions • Form teams of 3-4 • Identify where the US/China vary from Avg. • Explain rationale for your CD Profile 10m Source: Globe Study of 62 Societies, Sage 2004

15. US CDs Source: Globe Study of 62 Societies, Sage 2004

16. China’s Cultural Dimensions CCMBA 2011 CCMBA 2012 CCMBA 2013 Source: CCMBA 2010, 2011 Aggregate Responses (Shanghai) from Blog Pre-Read.

17. China CDs

18. China, Taiwan, US CDs

19. Agenda Civilization, Culture, Leadership and GATE Understanding and Applying Relational Models Understanding and Applying Cultural Dimensions Preparing for GATE

20. China’s Transitions and Tensions

21. Societal: Haves and Have-Nots

22. Societal: Rural Agrarian Confucianism

23. Societal Transition Over 150 million migrant workers have fled the countryside to live in factory dorms or shantytowns and subsist on very basic wages and very limited access to health care. The Chinese lack a social safety net and they feel they must sock away money for retirement, college fees, and unforeseen health disasters. • Following the Financial Collapse, is the current economic situation in China sufficient to quell the social unrest bubbling below the surface? • Do the millions of migrant workers still feel that their life in the cities where they work is better than it was when they lived at home on the farm? • Are those who are left at home on the farm feeling increasingly removed from the economic opportunities in urban areas? • Is Personal Freedom sufficient for most Chinese citizens or is the need for Political Freedom increasingly on the rise?

24. Political: How to Govern 1.4B People?

25. Political: Vertical Democracy?

26. Political Transition: Key Questions Chinese leaders don’t want a country that is so feudal that foreign powers could slice it up like ripe melon as the Western powers and Japan did in 1800-1900. They also don’t want to have a system with an untouchable dictator who can manipulate the population into nearly destroying its social system and economy as Mao did between 1950 and 1975. They also don’t want to deal with Western democratic politics. Hu Jintao Xi Jinping Source: American Progress Institute: China’s Forthcoming Political Transition

27. Political Transition: Questions to Consider • Can China continue to prosper economically without reforming its Single-Party political system? • Do the Chinese believe that there needs to be political reform? How satisfied are they with their current system of government? • How do the Chinese feel about Autocratic Capitalism or Vertical Democracy? Would they prefer a Western Democratic System? • Do the Chinese feel they have a voice in driving bottom up initiatives as it is described in Vertical Democracy? • Do the Chinese feel that their Government system is delivering the desired results? Do they feel that they have recourse if it is not? • Do the Chinese believe that their system of Government yields more optimized solutions than a Western Democracy?

28. Economic: Great but Unequal Gains

29. Economic: Great Gains at What Cost? We are going to need 4 PLANETS to accommodate the needs of a resurgent china • China has only 1/4 of the worlds water supply • Half of China’s rivers too polluted for drinking • 136 cities face severe water shortages • Amazon is being cleared by area size of Belgium each year to supply soya to China • Country is adding enough electric capacity to power Spain Each Year • If China were to consume the same amount of Oil as the US we would need 3X current production levels

30. Economic Transition: Key Questions China is the fastest growing country in the world. While several hundred million people have been pulled out of poverty in the past three decades, the gap between rich and poor is getting larger and larger. The average annual income of a Beijing resident is $2,263 while a farmer in Qinghai earns $277 annually. Social unrest will inevitably erupt when the boiling economic kettle settles down to a slow simmer • Will social unrest explode as a result of the increasing disparity between rich and poor? • Do the Chinese believe that the 30 year trend of 10% growth per year is economically and environmentally sustainable? • Do the Chinese believe that the Government should be taking a more balanced approach in driving economic growth while moderating environmental degradation? • Are the Chinese concerned about their ability to continue to access natural resources to fuel their growth? How might their “No Strings Attached” policies in dealing with trading partners create negative unanticipated outcomes for the country?

31. Tensions Rising? China’s Premier Wen Jiabao has delivered a strong warning about the “urgent” need for reforms, without which, tragedies like the Cultural Revolution could still happen

32. Processing the Region: Relational Models • Form a team of 3-4 • Complete the activity below 5m Select at Transition/Tension (S/P/E) to discuss Based on the RM profile, identify the TWO DOMAINS within the RM profile that best articulate the root-causes of the tension.

33. Societal Transition: RMs and Domains Communal Sharing Market Pricing Social Identity and Relational Self Identity derived from closest and most enduring personal relationships Self defined in terms of occupation or economic role: how one earns a living. Moral Judgment and Ideology Caring, kindness, altruism, selfless generosity. Protecting intimate personal relationships. Abstract, universal rational principles based on the utilitarian criterion.

34. Political Transition: RMs and Domains Authority Ranking Equality Matching Decision Making By authoritative fiat or decree. Will of the leader is transmitted to chain of command. Subordinates obey orders. One Person, One Vote Election. Everyone has equal say. Rotating offices.

35. Political Transition: RMs and Domains Authority Ranking Market Pricing Distributive Justice The higher a person’s rank the more he or she gets, and the more choice he or she has. Subordinates receive less and get inferior items, often what is left over. To each in due proportion. Each person is allotted a quota proportionate with some standard (e.g. Stock Dividends, Royalties, Benefits, Unemployment Comp.)

36. Economic Transition: RMs and Domains Authority Ranking Market Pricing Work Superiors direct and control the work of subordinates and control product of subordinates labor Work for wage calculated as a rate per unit of time or output Reciprocal Exchange Superiors appropriate or preempt what they wish, or receive tribute from inferiors in turn for protection. Pay for commodities in return for what is received as a function of market prices or utilities

37. China: RM Domain Map

38. Cultural Dimension Analysis Do the Cultural Dimensions provide any insights around the transitions that China is undergoing today and the tensions that these transitions are creating from a societal, political and economic perspective?

39. Processing the Region: Cultural Dimensions • Form a team of 3-4 • Complete the activity below 5m Select at Transition (S/P/E) to discuss Based on the Transition(s)/Tension(s) you explored, identify the TWO Cultural Dimensions that best articulate the root-cause(s) of the tension.

40. Societal Transition: CDs

41. Political Transition: CDs

42. Economic Transitions: CDs

43. Activity: Preparing for Gate • Form teams of 3-4 (GATE Locations) • Identify CDs that have high variability • What can you do to prepare for this? 10m Source: Globe Study of 62 Societies

44. Examining GATE Experience ICE Individual Predispositions GATE Relational Interactions CulturalDimensions CD RM

45. GATE Assignment Prepare and submit a 600 word paper that answers the following questions: • Describe a cultural encounter you experienced during the GATE trip that you perceived to be particularly unique or significant. • Describe why people from this region might view what you perceived to be unique or significant as regular or normal in their culture • Use your ICE Profile, the Relational Model Framework and the Cultural Dimensions to explain the difference between your perception and the regional reality.

46. GATE Course Commons China: https://cebeapps.fuqua.duke.edu/coursecommons/index.jsp?topic=1300 https://cebeapps.fuqua.duke.edu/coursecommons/index.jsp?topic=1303 https://cebeapps.fuqua.duke.edu/coursecommons/index.jsp?topic=1304 South Africa: SE Asia:

47. GATE Journal Reviews (3)

48. Additional Reading The Rise and Fall of Civilizations: https://cclblog2012.fuqua.duke.edu/blog/2011/06/27/the-rise-and-fall-of-civilizations/ Defining and Categorizing Culture: https://cclblog2012.fuqua.duke.edu/blog/2010/07/15/defining-and-categorizing-culture/ Social Relational Models: https://cclblog2012.fuqua.duke.edu/blog/2010/07/15/civilizations-and-relational-models-theory/ The Globe Project and Cultural Dimensions: https://cclblog2012.fuqua.duke.edu/blog/2010/07/15/the-globe-project-cultural-dimensions/ China: Facts, History, Societal, Political and Economic Transitions: https://cclblog2012.fuqua.duke.edu/china/

49. Thank You !