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LESSONS FROM CORPORATE AMERICA
NOVEMBER 4, 2001 (P.32) - THE STAR
                                                                                                           
THE recent incidents that rocked the United States have                                                                                               
some valuable pointers for us in Malaysia. First, the US                                                                                              
Government stands firm behind Corporate America.                                                                                                      
                                                                                                                                                      
When disaster struck on Sept 11 morning, it completely                                                                                                
destroyed the twin edifice that proudly represented the                                                                                               
whole structure of American business.  The World Trade                                                                                                
Centre was thus humbled and, along with it the very                                                                                                   
foundations of what business has stood for all these years                                                                                            
in that country - the entrepreneurial spirit that has built                                                                                           
America centuries earlier and that has continued to drive                                                                                             
American business today - has been very much a government                                                                                             
creation.                                                                                                                                             
                                                                                                                                                      
The implication is that business is still very much tied to                                                                                           
the government. Without the assistance and the support of                                                                                             
the government, Corporate America would not have achieved                                                                                             
so much.                                                                                                                                              
                                                                                                                                                      
It is now reasonable to expect that the government will be                                                                                            
doing all it can to restore the public's confidence and to                                                                                            
ensure that "the-business-as-usual" environment will                                                                                                  
prevail. But the numbers in Wall Street have not been that                                                                                            
encouraging since that fateful day. The signs are showing                                                                                             
the stresses and strains of a recession-led economy.                                                                                                  
                                                                                                                                                      
The role of government in pushing business has always been                                                                                            
a subject of intense debate everywhere. It is generally                                                                                               
recognised that the two should be in tandem with each                                                                                                 
supporting the other. A government that is                                                                                                            
business-friendly will always bring about a dynamic                                                                                                   
investment climate. Likewise, a business community that is                                                                                            
behaving responsibly will contribute to economic growth.                                                                                              
                                                                                                                                                      
Nowhere is this more real than in the United States. But                                                                                              
the system does give way to a lot of opposites. If it is                                                                                              
tied to the power of the government to influence business,                                                                                            
as in the case of the defence industries in the United                                                                                                
States, then this win negate the so-called drive for                                                                                                  
individuality or business creativity among Americans. Where                                                                                           
is the noble vision of the entrepreneur in this?                                                                                                      
                                                                                                                                                      
For the last decade at least, American business has only                                                                                              
moved forward at the behest of the government and then                                                                                                
again if this is tied to the national interest. Any                                                                                                   
contracts won overseas have always hinged on the support                                                                                              
given or guaranteed by the US Government.                                                                                                             
                                                                                                                                                      
The second lesson for us is to understand that to succeed,                                                                                            
business must show the flag. The current fighting that is                                                                                             
raging in Afghanistan has also got its business                                                                                                       
implications.                                                                                                                                         
                                                                                                                                                      
On one level, it can be seen as the promotion of                                                                                                      
American-made weapons. The latest in attack technology is                                                                                             
being demonstrated and tested in the Afghan war theatre.                                                                                              
The food items that were sent and airdropped in Afghanistan                                                                                           
mostly originated from the United States. At least, the                                                                                               
words "United States" have been clearly spelt out on them.                                                                                            
Again, such actions are serving the interest of American                                                                                              
business everywhere.                                                                                                                                  
                                                                                                                                                      
The practice of first showing the flag and then following                                                                                             
up with business has been perfected by Western governments                                                                                            
over the years. In a way, the show of power has always                                                                                                
preceded business. This was how China came to be won by the                                                                                           
British in the 19th century.  Gunboat diplomacy became a                                                                                              
good business strategy.                                                                                                                               
                                                                                                                                                      
US policy towards the countries in South America has often                                                                                            
been rationalised as one to protect the lives of Americans                                                                                            
in a particular country or one that seeks to ensure a                                                                                                 
continuous supply of a raw material or a food resource.                                                                                               
Notice the elaborate web of defence alliance the United                                                                                               
States has fashioned out of the countries in West Asia in                                                                                             
the name of ensuring the availability of oil to the Western                                                                                           
allies.                                                                                                                                               
                                                                                                                                                      
There is a belief that in going all out to bring about a                                                                                              
friendly government inside Afghanistan, the United States                                                                                             
is only interested in pursuing a grand business design in                                                                                             
that region. What it is really remains anybody's guess.                                                                                               
                                                                                                                                                      
The third lesson is that one must fight one's business                                                                                                
battles outside the country. The sending of American ground                                                                                           
forces to Afghanistan can also be seen as an attempt to                                                                                               
take the heat from inside America. The business environment                                                                                           
internally has to be protected against outside attacks.                                                                                               
                                                                                                                                                      
In any case, it is considered a good strategy to fight your                                                                                           
battles as far away from the country as you can. This was                                                                                             
evident in both World Wars as well as Vietnam, Kosovo, and                                                                                            
even now in Afghanistan. In doing so, the American economic                                                                                           
might could not therefore be destroyed.                                                                                                               
                                                                                                                                                      
Speaking in economic terms, it is widely recognised that                                                                                              
the globalisation and trade liberalization policies pushed                                                                                            
by the Americans so far could be read as an effort to                                                                                                 
support this very policy of fighting your wars abroad and                                                                                             
sparing the country from being affected. The WTO will be                                                                                              
the new battleground just as the GATT Trade Rounds were                                                                                               
years before.                                                                                                                                         
                                                                                                                                                      
We can certainly learn a lot from the recent American                                                                                                 
experience following the Sept 11 incident. In essence, the                                                                                            
three pointers listed above prove the observation that the                                                                                            
three elements of power, strategy and business are all                                                                                                
closely interlinked to advance American business interests                                                                                            
abroad.                                                                                                                                               
                                                                                                                                                      
 

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