Global_Communication@AUI_Fall_2008

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Assignments# September 2, 2008

Assignment*3-> 21.10.08

Please read this article and reflect on it. (No more than 100 words entry).

Digital visionary: Nicholas Negroponte

By James Urquhart

Professor Nicholas Negroponte is an internet pioneer, author, and man of grand visions.

As the founder and chairman of the One Laptop per Child (OLPC) non-profit organisation, Professor Negroponte has worked to use computing as a means to bring education to the poorest regions of the world.

Since 2005 the focus of Professor Negroponte’s project has been to develop an innovative laptop that will be distributed to children across the developing world and cost about $100.

But founding pioneering initiatives is nothing new to the American computing guru. He obtained two professional architecture degrees from the Massachusetts Institute of Technology in the 1960s and then set up MIT’s Architecture Machine Group in 1968.

In the 1980s he co-founded and directed the MIT Media Laboratory, where much of the technology that enabled the “digital revolution” was developed, including wireless communication, and progressive approaches to how children learn.

Professor Ken Morse, an MIT colleague, has called him: “An indefatigable leader.”

He was making grand predictions that seemed completely out in left field but as time has proven were absolutely accurate.
Louis Rossetto, Wired co-founder

“He has done an amazing job of recruiting incredibly busy people, including me, to help him with his crusade to bridge the digital divide,” Professor Morse told the BBC News website.

Aside from these achievements, Professor Negroponte has shown enthusiasm for investing in embryonic companies that have gone on to become household names.

Communicate ideas

These have included Skype, and Wired magazine, for which he wrote his own column – a platform to communicate his ideas on the evolution of technology. His Wired articles formed the basis of his 1995 best-seller Being Digital.

Co-founder of Wired, Louis Rossetto, told the BBC News website: “When we were together at Wired it was remarkable because the man was always in motion. He was dedicated, and driven, and I guess obsessed.”

“He was making grand predictions that seemed completely out in left field but as time has proven were absolutely accurate.

Nicholas Negroponte

Nicholas Negroponte is an influential figure in global technology

“He was talking about the switch from wired to wireless and that was back before there was much in the way of cell phones or anything else,” Mr Rossetto recalled.

In the early 1980s Professor Negroponte began working on projects to help educate the developing world’s children with computers.

Together with Seymour Papert, an MIT computer scientist and educator, he distributed Apple II microcomputers to school children in Senegal.

In April 2002 he kept his vision alive by providing children in a remote Cambodian village with connected laptops, inadvertently teaching them “Google” as their first English word.

The trials convinced him that the laptop could play a fundamental role in educational programmes for children in remote, rural, and poor regions of the world.

Professor Negroponte’s self-confessed “preoccupation” with bringing computing, communication, and the internet to countries which are less economically fortunate has culminated in the OLPC initiative.

Mr Rossetto said: “It’s not about building fancy gadgets for rich people as much as bringing knowledge and power to even the poorest. I think that it’s always been about democratising technology in a very concrete way.”

But Professor Negroponte’s venture to produce a low-cost laptop for education purposes has not come without opposition.

Questioned need

Microsoft’s chairman, Bill Gates, has questioned the need for the Linux-based laptop and doubted the suitability of Negroponte’s OLPC concept for the developing world.

The Linux operating system is an example of free, open source software that enables users to create their own software content.

When you have both Intel and Microsoft on your case, you know you’re doing something right
Nicholas Negroponte

And chip-maker Intel has developed a rival low-cost laptop aimed at schools with an education program designed for teachers rather than children.

Intel had reportedly released marketing literature to governments which overtly criticised the OLPC approach.

In May this year Professor Negroponte lambasted Intel, saying it “should be ashamed of itself” for trying to undermine his efforts.

The $100 laptop is currently being developed with a processor made by AMD, Intel’s main competitor.

'Yo-yo' rip chord to power $100 Laptop

“If you can actually get a Linux-based computer into every kid’s hands in the world it obviously undermines Microsoft. And obviously with an AMD chip inside that computer it undermines Intel,” explained Mr Rossetto.

However, in July, Intel announced that it would join the OLPC board.

Professor Negroponte welcomed Intel’s decision to join forces, saying: “Collaboration with Intel means that the maximum number of laptops will reach children.”

‘Richest person’

“Maybe it’s testimony to him, but it’s just amazing in the face of opposition from the richest person in the world with the most powerful software company and the most powerful and richest chip company, he is still able to prevail,” Mr Rossetto continued.

Speaking at LinuxWorld Boston last year, Professor Negroponte said: “When you have both Intel and Microsoft on your case, you know you’re doing something right.”

$100 laptop

The laptop is being trialled in schools around the world

And he has made it clear that his vision is not about the laptop itself. “It’s as if people spent all their attention focusing on Columbus’s boat and not on where he was going,” Professor Negroponte told The New York Times. “You have to remember that what this is about is education.”

Mr Rossetto commented: “I don’t think you can say definitively, butwhen Intel caves in and ends up supporting Nicholas, it’s pretty much clear that this is going to be the winning proposal.”

Receiving praise from the ex-Secretary General of the United Nations, Kofi Annan, Professor Negroponte’s $100 laptop has attracted collaboration from some of the computer industry’s biggest players including AMD, Google and Red Hat.

The latest laptop model, the XO, is now in production, and with interest from several developing nations, including Nigeria, Uruguay, and Libya, Negroponte’s vision is slowly becoming realised.

“If there’s anything that could work towards true understanding, connection and peace in the world, it would be this kind of a project, enabling knowledge to be accessible to everyone,” Mr Rossetto said.

Assignment*2-> 22.09.08

A bigger world

Sep 18th 2008
From The Economist print edition
Illustration by James Fryer
Illustration by James Fryer

Globalisation is entering a new phase, with emerging-market companies now competing furiously against rich-country ones. Matthew Bishop (interviewed here) asks what that will mean for capitalism

GLOBALISATION used to mean, by and large, that business expanded from developed to emerging economies. Now it flows in both directions, and increasingly also from one developing economy to another. Business these days is all about “competing with everyone from everywhere for everything”, write the authors of “Globality”, a new book on this latest phase of globalisation by the Boston Consulting Group (BCG).

One sign of the times is the growing number of companies from emerging markets that appear in the Fortune 500 rankings of the world’s biggest firms. It now stands at 62, mostly from the so-called BRIC economies of Brazil, Russia, India and China, up from 31 in 2003 (see chart 1), and is set to rise rapidly. On current trends, emerging-market companies will account for one-third of the Fortune list within ten years, predicts Mark Spelman, head of a global think-tank run by Accenture, a consultancy.

There has been a sharp increase in the number of emerging-market companies acquiring established rich-world businesses and brands (see chart 2), starkly demonstrating that “globalisation” is no longer just another word for “Americanisation”. Within the past year, Budweiser, America’s favourite beer, has been bought by a Belgian-Brazilian conglomerate. And several of America’s leading financial institutions avoided bankruptcy only by going cap in hand to the sovereign-wealth funds (state-owned investment funds) of various Arab kingdoms and the Chinese government.

One example of this seismic shift in global business is Lenovo, a Chinese computer-maker. It became a global brand in 2005, when it paid around $1.75 billion for the personal-computer business of one of America’s best-known companies, IBM—including the ThinkPad laptop range beloved of many businessmen. Lenovo had the right to use the IBM brand for five years, but dropped it two years ahead of schedule, such was its confidence in its own brand. It has only just squeezed into 499th place in the Fortune 500, with worldwide revenues of $16.8 billion last year. But “this is just the start. We have big plans to grow,” says Yang Yuanqing, Lenovo’s chairman.

One reason why his company could afford to buy a piece of Big Blue was its leading position in a domestic market buoyed by GDP growth rates that dwarf those in developed countries. These are lifting the incomes of millions of people to a level where they start to splash out on everything from new homes to cars to computers. “It took 25 years for the PC to get to the first billion consumers; the next billion should take seven years,” says Bill Amelio, Lenovo’s chief executive.

The sheer size of the consumer markets now opening up in emerging economies, especially in India and China, and their rapid growth rates, will shift the balance of business activity far more than the earlier rise of less populous economies such as Japan and South Korea and their handful of “new champions” that seemed to threaten the old order at the time.

This special report will argue that the age of “globality” is creating huge opportunities—as well as threats—for developed-world multinationals and new champions alike. The macroeconomic turbulence that the world is now going through after almost a decade of smooth growth will probably not alter the picture fundamentally, but it will complicate it. Despite all the talk of “decoupling”, emerging economies have recently been growing more slowly because of their exposure to increasingly cautious American consumers.

Moreover, high oil and food prices are creating inflationary pressures in many emerging countries that had enjoyed years of stable, low prices along with extraordinary economic growth. The side-effects of rapid development, such as pollution and water shortages, also need to be tackled. “After a long period in which globalisation has been all about labour productivity, the business challenge everywhere, and especially in emerging markets, will increasingly be to raise resource productivity—using fuel, raw materials and water more efficiently,” says Bob Hormats of Goldman Sachs, an investment bank.

Assuming that the upbeat growth forecasts for emerging markets remain broadly on track and the developed economies get back on their feet, what will be the main competitive battlegrounds of global business? One is those new consumers, who often demand products at far lower prices and often in more basic forms or smaller sizes than their developed-country counterparts. Emerging-market firms with experience of serving these consumers think they are better placed to devise such products than their developed-world competitors. Lenovo, for example, is going after the developing world’s rural markets with a cheap, customised PC that enables farmers to become networked.

Some of these innovations have global potential. Lenovo’s Chinese R&D labs developed a button that recovers a computer system within 60 seconds of a crash, essential in countries with an unreliable power supply. Known as “Express Repair”, this is now being incorporated into its computers everywhere.

The same logic may apply to innovations in business models that allow goods and services to be delivered in fundamentally different ways and at much lower cost. Lenovo, for example, has developed a highly effective formula for selling to Chinese consumers that it has since taken to India and America.

Yet the rise of the new champions has brought a vigorous response from some of the old ones. IBM may have felt that it was no longer worth its while to compete in PCs, but Lenovo is facing fierce competition from American companies such as Hewlett-Packard and Dell everywhere, including in China. Nor was IBM’s decision to sell its (low-margin) PC business due to a lack of commitment to emerging markets: it now employs 73,000 people in India, against 2,000 at the start of the decade, and hopes to increase the share of its global revenues coming from emerging markets from 18% now to 30% within five years.

Although multinational companies in developed countries must grapple with legacy costs of various kinds—financial (pensions, health-care liabilities), organisational (headquarters far away from new markets) and cultural (old ways of thinking)—they have advantages too. The greatest of these may be a deep well of managerial experience, which emerging-market firms often lack. Yet Lenovo has shown how to overcome this management deficit by hiring a group of seasoned international executives, including Mr Amelio, an American who cut his managerial teeth at IBM and Dell.

But Lenovo went further than hiring international managers. “We are proud of our Chinese roots,” says Mr Yang, but “we no longer want to be positioned as a Chinese company. We want to be a truly global company.” So the firm has no headquarters; the meetings of its senior managers rotate among its bases around the world. Its development teams are made up of people in several centres around the world, often working together virtually. The firm’s global marketing department is in Bangalore.

A huge effort has been made to integrate the different cultures within the firm. “In all situations: assume good intentions; be intentional about understanding others and being understood; respect cultural differences,” reads one of many tip sheets issued by the firm to promote “effective teamwork across cultures”. Mr Yang even moved his family to live in North Carolina to allow him to learn more about American culture and to improve his already respectable command of English, the language of global business.

In short, Lenovo is well on its way to becoming a role model for a successful multinational company in the age of globality: a good reason to be optimistic about the future of capitalism, even capitalism with a Chinese face. Perhaps Lenovo and other new champions will become the first of a new breed of truly global companies, rooted in neither rich nor developed countries but aiding wealth creation by making the most of opportunities the world over.

But is such optimism justified? Indeed, would Lenovo even have been allowed to buy IBM’s PC business today? Congress nearly blocked the deal at the time because it feared that valuable intellectual property might fall into the hands of the Chinese government. Since then, China-bashing has increased, there has been some Arab-bashing too, deals have been blocked and the rhetoric in Washington, DC, has become ever more protectionist.

One fear is that American jobs will disappear overseas. This is despite plenty of academic evidence that open economies generally do better than closed ones, that in America in particular many more and generally better jobs have been created in recent years than have been destroyed, and that the number of jobs lost to outsourcing is tiny compared with those wiped out by technological innovation. Mr Yang explains that “people thought we would manufacture all our products in China, but in fact we have opened new plants in Greensboro and also Poland, as we need to be close to our customers.”

Lately a new fear has been adding to the protectionist sentiment, turning even some usually enthusiastic global capitalists into protectionists. Could the rise of the new champions reflect the advance of bad forms of capitalism at the expense of good forms?

In their 2007 book, “Good Capitalism, Bad Capitalism and the Economics of Prosperity and Growth”, William Baumol, Robert Litan and Carl Schramm identify four main models of capitalism around the world: entrepreneurial, big-firm, oligarchic (dominated by a small group of individuals) and state-led. Most economies are a mixture of at least two of these. The best economies, say the authors, blend big-firm and entrepreneurial capitalism. The worst combination may be of oligarchic and state-led capitalism, both of which are prevalent in many emerging markets.

The worriers point out that, through corporate acquisitions and the investments of sovereign-wealth funds, the role of the state (often an undemocratic one) in the global economy is rapidly expanding. Given the lamentable history of state intervention in business, they say, this does not bode well.

Such fears are not easily dismissed, if only because what is happening is so new that there is not much evidence either way. Sovereign-wealth funds insist that they are interested only in getting a good return on their money and will not meddle in politics. Perhaps they will turn out to be sources of good corporate governance and patient capital, in admirable contrast to the growing number of short-termist institutional investors in developed countries. But perhaps they will not.

Again, Lenovo offers an encouraging example. Even though its largest shareholder is in effect the government of China, its acquisition of IBM’s PC business does not seem to have had any troubling consequences. But maybe the Chinese government was restrained by its co-investors, two of America’s leading private-equity firms. Besides, the new champions may be typified not by Lenovo but by, say, Gazprom, through which the Russian state can make mischief abroad. As Mr Yang points out, of the 29 Chinese firms in the Fortune 500, Lenovo is the “only one that is truly market-driven”. Most of the rest enjoy monopoly power or operate in the natural-resources industries, where there is far more scope for politics and corruption than in consumer electronics.

At the very least, the growing role of states that often lack democratic credentials creates a sense that the competition from emerging-economy champions and investors is unfair, and that rich-country firms may lose out to less well-run competitors which enjoy subsidised capital, help from political cronies or privileged access to resource supplies.

So there is a real risk that bad capitalism will spread in the coming decades. Yet at the same time this latest, multidirectional phase of globalisation offers enormous potential for business to raise living standards around the world.

Please summarize this essay in no more than 100 words entry.

__________________________________________________________________________________________________

Assignment*1-> 16.09.08

Altschull (1995) argues that there is no pure system, that every media system has degrees of freedom and control. Merrill (1995) states that all media systems can be placed on a continuum between authoritarianism and libertarianism, authoritarianism and developmental, or libertarianism and social responsibility. Elements of these media systems co-exist and this is more evident for media systems in countries undergoing a transition.

Please discuss by using the six types of media systems, bearing in mind Morocco. No more than 100 words entry.


 

One Response to “Assignments#”

  1. maryame NJIOUI Says:

    Nowadays, thanks to globalization, there is an increase of the number of emerging market companies which are competing with rich countries ones. That is because business is to compel with everyone from everywhere. Globalization leads to more innovation in order to decrease costs, in the same time, it encourages the respect of cultural differences. For example, when multinational companies start its business in morocco, they respect our culture. Even their ads in TV or in Moroccan websites, they should respect our culture.
    Morocco as many countries, adopt a mixture of models of capitalism. We can observe that in Morocco, the state encourages foreign investments by giving investors more information and financial advantages. For example, al jazira, also sayidati magazine, Paris match, etc. Besides, the state supports the intellectual property; but it judges these companies if they exceed their responsibilities, if for instance they talk badly about our king and his family.


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