Month: September 2022

Sandstorm

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The Book of the Week is “Sandstorm, Libya in the Time of Revolution” by Lindsey Hilsum, published in 2012.

Just prior to WWI, Libya was colonized by Italy in three sections, when the Ottoman Empire was in its death throes. Pursuant to where they live in Libya, various rivalrous tribes exhibit traits of the Middle East and Europe, or Africa. The country is located on the continent of Africa, but has major trade routes that go to the Middle East. Its population is about six million, and oil and gas supports its economy. Many of its people go overseas to attend university.

Beginning in 1959, big-name Italian, British and American companies negotiated agreements that allowed them access to newly discovered fossil fuels, and military training and weapons-testing grounds in the desert in Libya. In September 1969, Muammar Gaddafi became the new leader. He continued to impose one political-party rule (in place since 1952) and instituted one religion (Muslim). He punished political dissidents more harshly than Libya’s previous autocrat, King Idriss. But he made Libyans proud to be Arab. He took a swipe at the British by banning the English language in his country.

By the early 1970’s, Gaddafi’s actions were prompting brain drain and capital flight. His nation did need water, but he could have acquired it much less expensively and with a lot less trouble than he did. “It was one of man’s extravagant dreams, come true because no one dared counter him and too many were profiting from his grandiose visions.” In 1982, Gaddafi formed a political group that was allegedly going to fight against Imperialism, Zionism, Racism, Reactionism and Fascism.

As is par for the course for men such as Gaddafi, his enemies (such as the CIA and the king of Morocco) plotted assassination attempts against him. Smuggling guns and grenades into Tripoli and Benghazi were for nought, as the 1984 plotters were discovered and were killed. Through the last few decades of the twentieth century, the United States vacillated between allying with Qaddafi, and railing against him.

The Reagan administration railed against him. Qaddafi was strongly suspected to be the mastermind of the December 1988 terrorist bombing of Pan Am flight 103. That turned out to be a major historical incident that had worldwide repercussions. However, the tide turned through the 1990’s. George W. Bush wooed Qaddafi.

By the single-digit 2000’s in Libya, nepotism and tribalism had become crucial to survival. Families are comprised of multi-generational networks with tens of people on every level of the family tree. Disaffected, jobless young males became jihadists in Iraq, killing Americans in suicide bombings, as the terrorists had been brainwashed into expressing extreme hatred for the West.

Nevertheless, after 9/11, various nations such as Russia, Turkey and China were drooling over the money to be made in Libya in banking, accounting, construction, hotels, shipping, and of course, oil. But the U.S. held back (Bush was very conflicted) due to its complicated relationship with Israel.

As is well known, in February 2011, ordinary Libyans jumped on the “Arab Spring” bandwagon after Tunisia and Egypt. They used the worldwide forum of social media to publicly express their displeasure with their leader. Also, protesters personally gathered in Benghazi and Tobruk, and then farther east.

Gaddafi, distrustful of his own military, hired mercenaries from Algeria, Niger, Mali, Morocco and Burkina Faso to violently disperse crowds of youths standing around shouting slogans, as Internet access became unreliable. Gaddafi’s own military, angry at his disloyalty, turned against him. In Tripoli, attorneys formed a group to publicize human rights abuses, represent political prisoners, and start an underground resistance movement. Through the four decades Gaddafi stayed in power, he knew how to exploit discontent: bribing Muslims to build mosques and go on pilgrimages to Mecca.

Read the book to learn many more details about Gaddafi’s reign, including those relating to: shenanigans of his son Seif, and Bahrain, Qatar and Iran (hint: Everyone knew the UN arms embargo that applied to fighters on both sides was a joke.); his Green Book, Stalin-style purges, oil-industry machinations, propaganda campaigns and governmental policies; his contradictory stance on his nation’s female citizens; his providing of military training and arming of certain groups; and the reaction of certain countries of the world at his downfall.

The Silent War

[Please note: The word “Featured” on the left side above was NOT inserted by this blogger, but apparently was inserted by WordPress, and it cannot be removed. NO post in this blog is sponsored.]

The Book of the Week is “The Silent War, Inside the Global Business Battles Shaping America’s Future” by Ira Magaziner and Mark Patinkin, published in 1989. When Magaziner worked for Boston Consulting Group, he would conduct extensive research on industries, markets, businesses and people in order to generate reports that would presumably help his clients (consisting of big-name companies). He argued that America was economically falling behind the rest of the world because it was resisting global trade and because its federal government wasn’t financially assisting business and industry.

One time, in the mid-1970’s, Magaziner’s report’s conclusions contradicted those of his client, a big steel mill company. He asked where the executives got their information. Each one’s source material, “… was all the same– all based on one original study done a few years earlier by some professors.” The executives’ groupthink and herd mentality in relying on old, faulty data led to financial trouble for their industry.

In another case, in the late 1970’s, when General Electric partnered with Samsung to make microwave ovens, they struggled to arrive at the most profitable arrangement for both of them. One major cultural difference was that the South Koreans (unlike the Americans) worked sixty to eighty hour weeks because they believed in making sacrifices for future generations. Incidentally, they sent their children to universities in the United States to be educated, and taught them the value of hard work.

Obviously, Americans too, wanted better for their children, but their labor unions and a different mentality prevailed in their workforce. South Korea eventually became an economic powerhouse, not just with the help of American financial aid, but also through maximizing its exporting of goods.

In the 1960’s and thereafter, Singapore’s leader, Lee Kuan Yew, tried a few different territory-wide economic initiatives that failed. One included legislating a 10% wage increase for all workers. Foreign companies, with all the then-availability of sweatshop labor, simply moved their factories to Thailand and Malaysia, where workers were paid less so that goods could be produced more cheaply.

One successful economic program Yew executed was to train his citizens’ factory workers in connection with an Apple-Computer partnership in the 1980’s. The workers made the sacrifices to attend night-school (tuition-free) after a long day’s work two to three times a week, for two to three years. The benefit for the partnership was that the workers’ experience allowed them to submit innovative ideas to improve manufacturing efficiency. Again, in the United States at that time, labor unions discouraged new ideas lest workers automate themselves out of jobs. Which happened to them, anyway. But the non-unionized Singaporean workplace was such that workers weren’t laid off– they were retrained for higher-level positions.

Yet another reason the United States began to economically trail the rest of the world in the latter half of the twentieth century, was that its securities markets accelerated impatience in America’s corporate psyche. American industry became unwilling to finance and do the hard work of, continuing research and development and take a loss in bad times to keep pace technologically with Asian competitors. It wanted to prop up stock prices instead and make its executives rich quick. Still does.

One company that bucked the trend was Corning. In late 1983, (finally, after sixteen years of losses!) it had the cutting-edge technology in fiber-optics for telecommunications, ready to deliver finished products to its first big customer, MCI, to turn a profit. Corning did it on its own– receiving scant financial help from the United States government.

Times have changed little since the 1980’s, when photovoltaic scientist Paul Maycock remarked, “I hated the whole concept of buying oil from the Persian Gulf and spending $50 billion a year defending that part of the world.” He wasted a lot of time and effort on environmentally-friendly business initiatives. Sadly, those were incompatible with the United States’ strategic interests. The start of the Reagan Era saw the Department of Energy nix further funding for solar-technology research. The solar panels (installed during the Carter administration) on the White House roof were removed.

Further, since in the 1990’s (after the book’s writing) there has arisen an orgy of patent litigation in software and computer hardware. Technologically inexperienced patent clerks and court personnel have made legal decisions that have been economically damaging to the country. Additionally, the American government has a history of eagerly funding innovations that have military applications while denying funding for innovations that have commercial applications.

And yet, astute perpetrators of American foreign policy have damaged other nations’ economies not only by waging war, but also through dispensing bad advice on “shock capitalism” and other subtle (“classified”) methods of indirectly causing mass destruction. So the United States remains the economically dominant nation in the world, despite suffering its share of financial crashes and certain sectors’ damaging policies that weaken it economically as a whole; sectors such as healthcare and education.

Anyway, read the book to learn: of additional business cases that related to the aforesaid themes, and the four major reasons the Japanese technology sector achieved great success in the past.