Power distance

Page 1

Power distance


Part # 1 Economies with high power distance. Part # 2 Economies with low power distance.


Part # 1 Economies with high power distance


Gap between the richest 10% and the poorest 10% of the population Place

Gap

Mexico

26:1

USA

16:1

Italy

11:1

Japan

10:1

Canada

9:1

UK

9:1

OECD on average

9:1

Germany

8:1

France

6:1

Nordic countries

5-6:1

http://www.oecd.org/document/14/0,3343,en_2649_33933_41533262_1_1_1_1,00.html


http://www.dni.gov/nic/PDF_2025/2025_Global_Trends_Final_Report.pdf

Income distribution


http://www.economicsofinformation.com/2011/05/inequality-is-growing-around-world.html

Mid-1980s to late 2000s


In the UK, the 1% of the population with the highest earnings earn 15% of all income in the UK. That makes the UK – by far – the most unequal country in Europe. http://youtu.be/IO-641S7N14


http://www.ted.com/talks/richard_wilkinson.html


Increase in income inequality in China

http://issuu.com/0xfam/docs/oxfam-bp-working-for-few-political-/7?e=1574349/6403563


Reduction in income inequality in Brazil

http://www.economist.com/blogs/dailychart/2011/11/focus?fsrc=scn/tw/te/dc/brazil


Low access to financial services in households in Africa

http://www.weforum.org/pdf/AFCR09/AFCR09_full_report.pdf


http://a330.g.akamai.net/7/330/25828/20081021185552/graphics.eiu.com/PDF/Democracy%20Index%202008.pdf

Several authoritarian regimes in Africa


Severe income disparity is a very high global risk

http://www3.weforum.org/docs/WEF_GlobalRisks_Report_2013.pdf


Authoritarian regimes with high risk of political revolt

http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=1777812562


http://www.eiu.com/index.asp?layout=infographics&info_name=infographic_democracy

Democracy around the world

Democracy


Freedom of the press 2014

http://www.freedomhouse.org/report-types/freedom-press

Green = free Purple = Not free


Percentages of respondents who chose freedom of speech as the first national goal range from 36.6% in the Netherlands to 1.5% in Russia. Hofstede, Geert: Cultures and Organizations, p. 295.


The 7 countries with the most corruption

http://www.transparency.org/cpi


Corruption perceptions index 2013

http://www.transparency.org/cpi


Work The boss is seen as the source of ultimate responsibility in business.

Education Teachers are called gurus and are viewed as the source of all knowledge. Family The patriarch, usually the father, is considered the leader of the family. http://www.kwintessential.co.uk/resources/global-etiquette/india-country-profile.html


Within companies manual labour will only be carried out by the peon (roughly equivalent to a runner). It is not uncommon for the moving of a desk to take hours. This is because no-one in the office will carry out the task but the peon. http://www.kwintessential.co.uk/etiquette/doing-business-india.html


Religiosity and wealth

http://pewglobal.org/reports/display.php?ReportID=258


Is religion an important part of your life?

http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1


Is religion an important part of your life?

http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1


In France, hierarchy is important.

http://www.bloomberg.com/news/2014-11-09/how-sanofi-boss-saw-story-end-in-60-hours-in-board-tussle.html


Richard Putnam’s work on the cities of Italy asked why the northern cities had prospered while the southern cities had decayed. His research showed this:

Northern cities Based on wide, horizontal networks of trust and reciprocity. Southern cities Were in the vice grip of authoritarian hierarchies that squeezed out individual initiative and created distrust between citizens. Source: Gratton, Lynda: Hot Spots, p. 188.


It is estimated that the top 1.5% of the Roman empire controlled approximately 20% of total income. http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=7246320


At the time of Augustus, 1st century, as many as 35% of the people in Italy were slaves. http://en.wikipedia.org/wiki/Roman_Empire


There are about 27 million slaves in the world today

Sources Kevin Bales: How to combat modern slavery. http://www.youtube.com/watch?v=HUM2rCIUdeI Bales, Kevin: Why there are 27 million slaves in 2010. http://bigthink.com/ideas/24524


Part # 2 Economies with low power distance


http://www.ted.com/talks/richard_wilkinson.html


http://www.ted.com/talks/richard_wilkinson.html

The lower income inequality, the fewer social problems


http://www.ted.com/talks/richard_wilkinson.html


http://pasisahlberg.com/wp-content/uploads/2013/07/Jakarta-Talk-2013.pdf


http://www.nccr-democracy.uzh.ch/news_events/image/Demokratiebarometer_Europa_D.pdf

The 10 countries with highest quality of democracy


http://www.eiu.com/index.asp?layout=infographics&info_name=infographic_democracy

Democracy around the world


Freedom of the press 2014

http://www.freedomhouse.org/report-types/freedom-press

Green = free Purple = Not free


The 5 countries with the least corruption

http://www.transparency.org/cpi


Corruption perceptions index 2013

http://www.transparency.org/cpi


Is religion an important part of your life?

http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1


Few religious people in Scandinavia, Japan, and UK

http://www.gallup.com/poll/114211/Alabamians-Iranians-Common.aspx


Studies show that economic development initially leads to increased power distance due to urbanization and increased saving among the upper class.

Over time, however, government policy, entrepreneurial activities, and technological change drive economic development and a decline in power distance. http://www.na-businesspress.com/jabe/coxweb12-6.pdf


Power distance

http://www.na-businesspress.com/jabe/coxweb12-6.pdf

GDP per capita


Further sources of inspiration http://jom.sagepub.com/content/early/2014/03/24/0149206314527131.full.pdf http://www.oecd.org/els/soc/top-earners-capturing-growing-share-of-total-income-in-many-countries.htm https://www.scribd.com/doc/35468260/Individualism http://www.slideshare.net/frankcalberg/3-ways-of-organizing http://www.slideshare.net/frankcalberg/power-to-the-people-34722633 http://topincomes.g-mond.parisschoolofeconomics.eu/ http://youtu.be/-S9MoeN8COI http://youtu.be/sqaa42gbqhA


Thank you for your interest. For further inspiration and personalized services, feel welcome to visit http://frankcalberg.com/ Have a great day.


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