The GW Center for the Study of Globalization
2033 K Street, NW, Suite 230 • Washington, DC 20052 • Phone: (202) 994-5206 • Fax: (202) 994-5284
Email: gwcsg@gwu.edu • http://gstudynet.org/
Is globalization helping the U.S. dominate the rest of the world's business practices? In April, the GW Center for the Study of Globalization held its fourth and final Globalization Brown Bag discussion of the 2003 spring semester to answer this and other questions about globalization and American hegemony in the global business place. GWCSG-sponsored Professors Jed Kee, Scheherazade Rehman, and Stuart Umpleby discussed their own research, which takes different approaches to examining the standardization of markets across the globe, privatization, and the spread of management methods.
Professor Rehman explained that worldwide there are three dominant models of corporate governance: the European model, the American model, and the Asian model. She has observed that newly emerging governance systems are beginning to adopt the US corporate governance system to focus on efficiency and a movement towards privatization. But many of these countries are facing considerable challenges: they aren't moving fast and aren't catching up to the US. This difference can, in part, be attributed to the various market structures of individual countries, Rehman explained. The US employs an Anglo-Saxon corporate structure while the countries trying to adopt the US model are largely based on a social market system. So, she asked in conclusion, is it really beneficial for other countries to adopt the US model? Or, would it be more beneficial to create a combined model that could work for different market economies?
Professor Kee moved the discussion to focus on another critical aspect of the debate: privatization—the sale of state-owned property to corporations. Privatization, Kee explained, is becoming a dominant model because it is being supported and implemented by numerous world organizations, and is increasingly considered acceptable and common practice in Europe, North America, and Asia. The goals of privatization include raising revenue for a country, reducing the liability on a budget, improving productivity, and providing better customer service. The desired outcome of privatization is offering goods at a lower price and with greater accessibility. Professor Kee is part of a collaboration that has studied firms in countries such as Brazil, China, and Egypt that have recently privatized government-owned industries and services. His research has shown that these firms found positive results in the transfer of industry or services from government to private sector control. Given these widespread successes, these cases of privatization may be a positive example of globalization due to the convergence of business ideas and practices, as opposed to Americanization.
Professor Umpleby is currently conducting a study that monitors business periodicals, Internet usage, companies with ISO 9000 certification, and foreign students in the US in order to track the spread of management ideas and methods. Umpleby's research has found that there is a positive correlation between a country's wealth and its number of business periodicals published/circulated, Internet use, and ISO 9000 certification. This study also showed a wide gap between developing and developed countries in relation to GDP per capita, business periodicals, Internet usage and ISO 9000 certification. For Umpleby, findings that show that the majority of foreign students who study in the US come from East Asia and Europe raises important questions. Perhaps this cross-cultural education is adding to the spread of management methods? Could the great gaps between economic, social, and technological advances in the regions covered indicate that management theories are spreading but the results cannot be seen yet?
The presentations of Professors Rehman, Kee, and Umpleby raised several interesting questions about the relationship between globalization and American hegemony. Does globalization merely represent other countries adopting US standards and subjecting themselves to US influence? Moreover, why are other countries not swiftly catching up with American standards of living when they adopt "Anglo-Saxon" management practices? These questions and others are topics of ongoing debate, and will be addressed in forthcoming GWCSG Brown Bag series. Join us next semester as we continue our regular lunchtime discussions with cutting edge globalization researchers. Be sure to access the GWCSG web site for news and updates.
The GW Center for the Study of Globalization
2033 K Street, NW, Suite 230 • Washington, DC 20052 • Phone: (202) 994-5206 • Fax: (202) 994-5284
Email: gwcsg@gwu.edu • http://gstudynet.org/