Power distance

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.