The Kimchi Matters : Global Business and Local Politics in a Crisis-Driven World

Rating:
Summary: The Rules Matter
Review: As an American living in a third world country, I greatly appreciated this book.

Utilizing poignant examples, the authors delve into what make a country and its systems successful or dysfunctional. Many factors are considered: politics, corruption, social change, stability, leadership, public unrest, bureaucracy, social institutions, government intervention, etc. And all is placed in the context of rapid globalization.

Most notable is the revolutionary insight that, no matter what other factors are involved, a country will not grow prosperous in the absence of good institutions. The rules, both overt and non-visible, by which we play are very important.

This book helped me to understand my own situation. It helped me to recognize the world's interconnectedness and the fragility of world economics. Despite America's shortcomings, it helped me to appreciate the moral fabric of America's institutions. And, finally, the book deepened my feeling that America bears great responsibilty in the world community, as a leader, a guide, and an example for others.

Foreign policy-makers and international businessmen should pay careful attention to this book's lessons.

Rating:
Summary: Propping Up Globalization? Ha!
Review: First of all, as a student and scholar of Business I think this book is poison in a pie. It basically tries to let "globalists" understand how to make Globalization successful by understanding the "Kimchi" at work. What nonsense!
First of all, his History of the East Asian economic crisis is just wrong. On this subject, please consult someone who has real experience in the region, such as Chalmers Johnson etc.
Secondly, only a fool would miss the poignancy of his selective tribalization of Africans.
As another reviewer pointed out; it is JUST wrong, and it is foolish.
That the wall street Journal and the Economist use such a term as Nguyen pointed out doesnt make it right.

It is wrong and this is because the definition of "Tribes" in any good english dictionary, ancient or Modern as well as present social useage does not match the reality on ground in Nigeria or Kenya.

I read the book and then did a search on the WaBenzi as well as the so called BeenTos and I am appalled that any scholar would even attempt to defend the appropriation of those terms.

Furthermore - Linda's comments about "Understanding" the Nigerians anger about Colonialism is insane.

I went to Nigeria as a member of an academic team 2 years ago and to talk about "anger concerning colonialism" with respect to what is happening in the Niger Delta at present is just stupid.

It is not about the past, its about the Present.

Of all the reviewers who reviewed the book, the Nigerian had the best insight on the true nature of books like this.

Everybody else is just parroting "common sense" wisdom.

The book is chock full of errors.

On the Economics of Asia - Read Chalmers Johnson.

And for a balanced view to the Nature of Africans societies, Basil Davidson is good also.

Zonis is a pop scholar writing a pop book for a pop audience. This is not for serious minded policy makers.

Rating:
Summary: Fascinating for global investors
Review: Having seen Marvin Zonis on television and in speeches many times over the years, I bought this book for many of my internationally-based colleagues at Christmas. I have since finished reading it myself and it was an excellent decision.

This book is a precise, non-ideological, and often humorous, field guide to the political and economic dynamics of emerging market countries. Without understanding these dynamics, the authors argue, American businesses cannot hope to succeed in countries like China and India. From my own experiences in Turkey and elsewhere, I can confirm the truth of this.

The authors present a smorgasbord of cases from countries around the world. They call these vital, often overlooked local conditions "kimchi," after a spicy pickled-cabbage dish popular in (and, for the most part, only in) Korea. "Today," they explain, "almost everyone eats Big Macs," evidence of the global-village side of globalization. "But kimchi matters more than ever before.:

To illustrate how local obstacles can sideswipe international Goliaths, the authors offer Bill Gates's initial foray into the Korean market. In 1998 Microsoft planned to invest $20 million in Hangul & Computer, and in exchange the South Korean software company would stop producing its Korean-language word-processing program, surrendering its near monopoly to Microsoft. But news of the deal brought a national backlash-fueled by antiforeign sentiment and national reverence for the Korean alphabet-and Hangul & Computer was forced to abandon the deal. "In short," the book explains, "Microsoft's expansion strategy had inadvertently triggered a political opposition movement."

Investors and policy makers can avoid such missteps, the authors argue, by asking not only whether a country is stable but also how its stability is produced.

In the Philippines, for example, President Ferdinand Marcos's 1969 reelection coincided with a bad monsoon season and a violent Communist guerrilla uprising. "Though none of this was really the president's fault," the authors note, opposition grew. Marcos reacted by faking assassination attempts and terror attacks and then declaring martial law, crushing dissent and granting himself sweeping authority. To maintain power, he built a regime of corruption and patronage, which inhibited legitimate business, angered the middle class, and strengthened the opposition. When rival politicians were killed, discontent mounted, and Marcos was forced from office, leaving foreign businesses with Philippine investments tangled in criminal misconduct allegations.

But things might have turned out differently. Popular dissatisfaction of any source can be channeled in many ways, the writers argue, offering several examples. Zimbabwe's Robert Mugabe managed national discontent by blaming his country's problems on South Africa and England. India, though plagued by poverty, has dozens of political parties and holds relatively free and fair elections. And Singapore, while curtailing free speech and civil rights, heads off discontent with economic growth and stability.

Each of those governmental responses is intimately related to what Kimchi Matters terms "the ruling bargain." Submitting to authority, the authors argue, is onerous: taxes must be paid, laws obeyed, and other intrusions (in an extreme case, conscription into a national army) accepted. In exchange governments earn the public's support by promoting economic prosperity, physical security, and common defense. But each country formulates a unique bargain and justifies its authority-creating legitimacy-through different techniques. Autocratic nations rely on charismatic leaders to charm or terrorize the populace; democratic governments earn authority by representing the people; and in "developmental states" such as Singapore authority is earned by "delivering the goods-usually stability and prosperity."

While a government's structure may dictate its success in abating popular discontent, in some cases that structure is so attenuated that the task is assumed solely by a country's leader. In Uganda policies depend almost entirely on the president, now Yoweri Museveni, who has reduced poverty and AIDS but also has banned political parties and activities. The authors stress, however, that "leadership is only part of the story." Some countries have strong enough institutions that they can essentially run themselves. During "Monicagate," for instance, crime fell, the economy grew, and "the American government continued to function effectively regardless of its rather distracted leadership." Governments that have developed a self-perpetuating, responsive system are the most stable, the most likely to avert potential crises, and the best equipped to generate prosperity.

Even with a strong system, however, individual policies make or break stability, and political pressures can sometimes push policy makers in the wrong direction. When a leader faces reelection, for example, he or she often abandons policies that call for short-term sacrifices but create long-term benefits in favor of ones that create short-term economic booms, though they may ultimately cause a crash. This pattern clearly has emerged in Mexico, which has seen economic turmoil every six years-the length of the election cycle-since 1976. Likewise, entrenched interests can hinder development. Brazil's constitution specifies rights for nearly every special-interest group, preserving privileges, such as government pension programs that cost tens of billions of dollars, at the expense of the larger good. Thus particular political circumstances can inadvertently reduce a nation's economic potential.

The book concludes with a fascinating analysis of China. Once you read it, I guarantee you will rethink your strategy in that country.

Rating:
Summary: A great strategy guide
Review: I am always shocked by people trying to invest abroad without understanding the countries they're investing in. This book makes it clear you can't do that and be successful. A lot of portfolio strategy is about getting it right at the macro level, and this book is dead on in its profiles of top emerging market economies and how they work.

Rating:
Summary: understand the globe
Review: I was going to give this four stars, but up it to five owing to the biased review from Nigeria.

I understand the Nigerian scholar's anger about colonialism -- but to say this book has "errors" is off the mark. The main "error" identified is that the book uses the term "tribes" to describe ethnic groups in Nigeria. The fact is, that's the term currently employed in most Western publications -- the New York Times, the Wall Street Journal, the Economist. So it's not an error. I understand the Nigerian wants to change the world, and that's a great goal -- but I think rating down a book that explains colonialism's lingering effects, not just in Nigeria but in Pakistan, Brazil, etc. -- is the wrong approach. The Kimchi Matters probably says more about colonialism than any business book ever written.

The reason it talks about colonialism is The Kimchi Matters takes you on a fascinating tour of the globe -- mostly emerging markets -- from China to India to Brazil to Russia and about twenty countries in between, explaining not just WHAT is going on but WHY.

If you have spent your life studying Nigeria, then yes, the section on Nigeria will seem like an introduction -- but you will get fascinating insight on the rest of the world. (The Nigerian scholar's comments actually apply only to one section of one chapter.) The book draws on everything from public choice theory to institutional economics to social psychology -- you'll learn a lot that's new.

I was going to give it four stars, because in some sections The Kimchi Matters skips controversies and present things just too simply and elegantly. I know it has a lot of ground to cover. And the writing is readable and the stories well-told.

But I'll give it five, and that's appropriate. As the Nigerian scholar admits, it is "a good book." I would say a very good book.

Rating:
Summary: understand the globe
Review: I was going to give this four stars, but up it to five owing to the biased review from Nigeria.

I understand the Nigerian scholar's anger about colonialism -- but to say this book has "errors" is off the mark. The main "error" identified is that the book uses the term "tribes" to describe ethnic groups in Nigeria. The fact is, that's the term currently employed in most Western publications -- the New York Times, the Wall Street Journal, the Economist. So it's not an error. I understand the Nigerian wants to change the world, and that's a great goal -- but I think rating down a book that explains colonialism's lingering effects, not just in Nigeria but in Pakistan, Brazil, etc. -- is the wrong approach. The Kimchi Matters probably says more about colonialism than any business book ever written.

The reason it talks about colonialism is The Kimchi Matters takes you on a fascinating tour of the globe -- mostly emerging markets -- from China to India to Brazil to Russia and about twenty countries in between, explaining not just WHAT is going on but WHY.

If you have spent your life studying Nigeria, then yes, the section on Nigeria will seem like an introduction -- but you will get fascinating insight on the rest of the world. (The Nigerian scholar's comments actually apply only to one section of one chapter.) The book draws on everything from public choice theory to institutional economics to social psychology -- you'll learn a lot that's new.

I was going to give it four stars, because in some sections The Kimchi Matters skips controversies and present things just too simply and elegantly. I know it has a lot of ground to cover. And the writing is readable and the stories well-told.

But I'll give it five, and that's appropriate. As the Nigerian scholar admits, it is "a good book." I would say a very good book.

Rating:
Summary: Errors of History, Terminology and Context
Review: This book does a good job of presenting a summary overview of the subject matter to beginners. Because the broad scope of this work involves string together information from many fields; I can see how errors will be made in areas that are not the authors realms of specialization - but nontheless; I want to note a few of these errors; mostly about the analysis of situations in Africa:

1. The author erroneously injects the Tribal context into his analysis. Why are Indonesia's peoples Ethnic Groups but the Yoruba's are a Tribe? Are these terms synonymous or is something else at work here? The Yorubas number 40Million - the Hausas even number more than that - they have the Oyo, Benin Empires etc the Sokoto Caliphate etc to their credits. What is the idea of Tribe meant to imply?

2. The carving up of Africa with disastrous results was not inadvertent. The "divide and rule" policy was mentioned - it was implemented deliberately - how then can its results be inadvertent?

3. Again; the authors erroneously uses the Tribal context to refer to the Wabenzi or the Beento. Neither are Tribes! Anymore than one would refer to Upper Class socialites in the UK as a Tribe. Again - why do authors persist in conextualizing Africa in a tribal concept that has no foundations nor usefulness? Again - what is the subtle implication behind this usage?

4. The Authors state that the British built Urban centers in Nigeria. This is false. Lagos, annexed by the British was already founded as a coastal trading community long before the British arrived - Lagos does not experience any development until the Oil Boom of the 70's - there are hardly any significant acrhitectural edifices in Lagos today that were built by the colonial administration - Indeed; the colonialists decided not to stay in Lagos because of the climate and administered it from Freetown Instead.
Furthermore; by the 18th century, Ibadan, the capital of the Old Oyo empire was already the largest city in subsaharan Africa - this was not the work of the British; neither was the Urban Center of Kano - Today; Nigeria has about 150 cities with populations of over 100,000 - neither of them was founded by the British and development has always been inevitable tied to Oil and a local Government presence. In fact; the British didnt lay the foundations of anything - rather; they annexed and stringed exisiting entities together - something that the authors also note.
The idea that people flocked to Urban centers established by the British is faulty.
The migration to Lagos started in the 70's because of Oil.
Other cities continued their normal pace of population growth - Ibadan today still has a population of over 1.5 Million people - in 1890 it had a population of about 200,000.

5. The idea that Shell was somehow drawn involuntarily into Nigerian Oil politics is ridiculous. Shell was implicated not only in the Murder of Saro Wiwa but in the burning down of several other villages and the murder of thousands of people. This was active; not Passive participation.

6. Kimchi Matters is a good book. I understand that Zonis et al analyse from a particular perspective; but I was especially sensitive to some assertions made because they represent a slight misrepresentation of the kimchi at work in Nigeria/Africa. In the conclusion; Zonis et al sound like apologists for colonialism - what simplistic way (as they assert) represents the orthodox view of the effects of colonialism? Is a 50% reduction of the population of the Congo simplistic in its effects till day vis-a-vis other imperialist factors?
Do rich countries continue to oppress poor countries? Well - if Racism still exists in the U.S - if people (according to a recent study) are 50% less likely to get a job just because their names sound "black" - then who are we to contend that such attitudes do not project on the realm of the International?
If the countries of the West do not curb oppression and police brutality within their own borders - then what makes Zonis et al think that the same attitudes do not project unto the International realm?
For sure there is State Government failure - but there is also the reality of a tendency towards Hegemony and control by the United States and other Western States.
Where this tendency or the actual Hegemony exists - there will always be oppression.
If the US hasnt curbed itself of Race Riots etc - then how can it hope to effect any change in Zimbabwe? A reality check is needed.

Rating:
Summary: Emerging Market investors must read this
Review: This book provides great depth of detail about various emerging market countries and the factors affecting stability and business success. It really has everything one needs to know about the principals involved in successful emerging market investment. The breath of the authors' knowledge is impressive, and the writing style is highly accessible.

Rating:
Summary: Great Kimchi
Review: This is an awesome book! Anyone interested in the nuances of globalization and the diverse experiences of big business in the world economy should read The Kimchi Matters. I feel like I have a whole new understanding of the interaction between global and local, and between the political and economic issues which currently define our world. In addition to being so informative, The Kimchi Matters is an extremely smooth read--Zonis and co. provide several page-turning case studies that combine great storytelling and sharp analysis. I highly recommend this book for anyone interested in international relations, business, or the culture clashes caused by rampant globalization. There are many choices in this genre, but believe me, The Kimchi Matters is far ahead of the pack.

Rating:
Summary: Entertaining and informative read, theory and anecdotes!
Review: This was an informative and quick read, giving substantive background of the political histories/evolutions of a huge variety of countries from across the political, social, and economic spectrum. It's one of those books that helps you develop an effective mental model of thinking about globalization (from a local perspective). The academic theory underlying the anecdotes is logical and concise. The only criticism I would have is that the book might be too non-technical...would have appreciated a bit more concrete data to back up the theories. All in all, however, very enlightening!