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

Mid-1980s to late 2000s
http://www.economicsofinformation.com/2011/05/inequality-is-growing-around-world.html

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
authori-tarian
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

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

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

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
The lower income inequality,
the fewer social problems

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

The 10
countries
with
highest
quality of
democracy
http://www.nccr-democracy.uzh.ch/news_events/image/Demokratiebarometer_Europa_D.pdf

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

The 5 countries with the
least corruption

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.

Power distance

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