Policy development and implementation is considered in light of the process used for these purposes, and their fit with the culture.

1. The best-laid policies – and
how to make them work
Prabhu Guptara
Distinguished Professor of Global Business, Management & Public Policy,
William Carey University, India
prabhusguptara@gmail.com

2. Please note
• The intention of my presentation is to provoke you to think!!!

3. Economic Development of Albania - 1
• Widespread social and political transformations during the Communist era,
though at the cost of isolation from the non-Communist world.
• In 1947, Albania's first railway line was completed, the second eight months
later. By 1955, illiteracy had been eliminated among Albania's adult
population, and there was unprecedented progress in education and
health.
• New land reform laws were passed granting ownership of the land to those
who actually worked the land. Agriculture became co-operative, with
production increasing enough to make Albania agriculturally self-sufficient.
• Albania also became industrialized, resulting in rapid economic growth: the
average annual growth rate of Albania's national income was 29% higher
than the world average and 56% higher than the European average.
• Communist Albania did not allow taxes on individuals; instead, taxes were
imposed on cooperatives and other organizations.

4. • From 1991, the hallmarks have been Liberalisation, Privatisation and
Globalisation, especially in energy and transportation
• Scores high in the Human Development Index – e.g. providing universal
health care, and free primary and secondary education
• Now an upper-middle income economy dominated by the service sector
(followed by industry and agriculture)
• Member of the United Nations, NATO, OSCE, Council of Europe, WTO,
and an official candidate for membership of the EU.
Economic Development of Albania - 2

5. So, what Challenges for Albania, to reach the next level?
•Beyond “Political Football”?
•Substantially remove corruption?
•Establish an independent judiciary?
•Embed a Culture of Entrepreneurship?

6. The Economics of Justice
(not Capitalist or Socialist, not Islamic, Vedantist or Humanist)
• Rule of Law, not of the Elite
• Entrepreneurship, not merely Capital
• Merit, not merely Connections
• Work rather than handouts (except where those are inescapably necessary)
• Responsibility not self-Indulgence

7. A Culture of Entrepreneurship - 1
• Enables the rise of talent from any background, regardless of
beliefs:
• Infrastructure
• Public education
• Freedom of expression, of the press, of assembly…

8. A Culture of Entrepreneurship - 2
• Has free competition within minimum necessary rules:
• Environment
• Health
• Safety
• Currency stability
• Equal application of the law to all
• Care for the physically, emotionally or mentally disadvantaged
• Differential expectations and punishments.

10. Irving L. Janis,
Groupthink: Psychological Studies of Policy Decisions and Fiascoes
2nd, rev. ed.(Boston: Houghton Mifflin, 1983)

11. Self-awareness is uncommon among individuals,
and
Cultural Self-awareness is uncommon in nations

12. Best-practice Policy Development
takes the specific
national & organizational cultural resistances
and distortions
into account

14. Why move beyond narrow economic criteria?
• Why should the key criterion be the reduction of unit cost? What
about the cost of the resulting social and ecological destabilization?
• Why should we have a system that produces a nightmare even for
accountants?
• Why should economics not strengthen social solidarity by
subordinating the operations of the market to the values of equity,
justice, and community?
• Instead of having society driven by the economy, could de-globalization
re-embed the economy in society?

16. Warren Buffet
“Look for three things in a
person: intelligence, energy,
and integrity. If they don’t
have the last one, don’t even
bother”

17. What is the *value* of a leader’s integrity?
Can it be quantified?
• Dr. Fred Kiel did just that in his book, Return On Character (published
by Harvard Business Review Press in April 2015)
• Over a seven-year period, Kiel collected data on 84 CEOs and
compared employee ratings of their behaviour to company
performance
• Employee engagement was 26% higher in organizations led by high-
integrity CEOs
• High-integrity CEOs had a multi-year return of 9.4%, while low
integrity CEOs had a yield of just 1.9%.

18. Social Challenges
to the Global Order
• Demography
• Disengaged citizenry
• Community deficit
• Migration
(c) Relational Research, 2014

19. The Demographic Challenge in Asia and Europe
Data from the CIA, 2014
2.07
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2.2
Singapore Hong Kong Japan Italy Germany Switzerland China Self-sustaining
population
Number of children per adult woman (TFR)

20. The Family Test for all UK public policies
• https://www.gov.uk/government/uploads/system/uploads/attachme
nt_data/file/368894/family-test-guidance.pdf

21. Note that the political gridlock is
a gridlock of interests, NOT one of policies (though that is the face it
has to be given!) - see Jeff Faux’s The Global Class War: How America's
Bipartisan Elite Lost Our Future)

22. Politics always trumps Economics
• For economic renewal, political renewal is essential
• But political renewal cannot take place without cultural renewal
• For cultural renewal, Relational Thinking has much to offer everyone –
whether people on the Left or Right, or Uncommitted Citizens

23. The need for a revolution in thinking
Relational Research © 2013

30. A New Framework
Understanding of:
• Personal identity
• Work
• Poverty
• Development
• Technology
• Business
• Government

31. Relational Thinking
An Economic Strategy
• From debt to equity
• Engaged shareholders
• Relational companies
• Relational Ratings Agency
(c) Relational Research, 2014

32. Relational Companies
• From debt to equity in corporate finance
(through the tax system)
• Measurement of stakeholder relationships
• Relational Ratings Agency
• Relational Capital Reporting

33. Relational Finance
• Ethical basis of return to capital?
• Engaged investors
• Effective accountability

34. A New Slogan
• No investment without involvement
• No profit without participation
• No reward without responsibility

35. Responsible Government
• Money supply
• Regulation
• Foreign Affairs

36. Relational Welfare
• Rootedness
• Co-location of relatives
• Family Associations

37. The Coming
“Age of Relationships”
(c) Relational Research, 2014

38. Any movement, to be successful, must touch you
intellectually, spiritually, and emotionally…
and get you to act!
• Comprehensible
• Comprehensive
• Inspiring
• Persuasive (Strategy or overall plan)
• “Actionable”: tells you what you can contribute to the
movement today

39. The Relational Thinking Network:
a network of SECTORAL networks!
• Schools
• Companies
• Consultants
• Scientists
• Technologists
• Politicians
• Administrators
• Lawyers
• ….

40. The Relational Thinking Network:
a network of Regional networks!
• UK
• South Africa
• Singapore
• Hong Kong
• Australia
• USA
• (Switzerland)
• …………………….

41. Some Websites
• http://Relationalthinking.net
• www.relationshipsfoundation.org
• www.relationalresearch.org
• www.relational-analytics.org
• www.relationalschools.org

43. The four most important questions
•What is the purpose for which my life was created by
God?
•What sort of character ought I to develop – and to
encourage in others?
•What is a good lifestyle – what should determine my
choices?
•What is a good society - and how to nurture it?

44. The best-laid policies – and
how to make them work
Prabhu Guptara
Distinguished Professor of Global Business, Management & Public Policy,
William Carey University, India
prabhusguptara@gmail.com

45. ADDITIONAL SLIDES

47. What is “just” is *not* commonsense
• Should taxation be progressive or equal?
• Should punishments be progressive or equal?
• Is VAT or Sales Tax the modern equivalent of a tax on straw and grain,
which is denounced in the Bible?
• What about a wealth tax?
• Should there be equal payment for the same work done by men and
by women (indeed should women be allowed to work at all?)
• Is work something that should be done only by the lower castes?

48. Vishal Mangalwadi

49. Article in Social Europe 28oct16 sets out 5 lies
of today’s “Rentier Capitalism” - 1
“Global capitalism is based on free markets”: instead, corporations and financiers
have used their power to induce governments and supranational finance to
construct a global framework of institutions and regulations that enable elites to
maximise rental income.
Since 1995, with the passage of TRIPS (Trade-Related Aspects of Intellectual
Property), which bind all WTO members, intellectual property has become the
prime source of rental income: this arises through market power created by
trademarks, copyright, design rights, geographical indications, trade secrets and
patents.
Knowledge-intensive industries, which now account for 30 per cent of global
output, are gaining as much from intellectual property (IP) as from the production
of goods or services.
This represents a political choice to grant monopolies over knowledge to private
interests, allowing them to restrict access to knowledge and to raise the price of
obtaining it or of products and services embodying it.

50. Article in Social Europe 28oct16 sets out 5 lies
of today’s “Rentier Capitalism” - 2
“IP rights encourage risk-takers”: instead, many patents are taken out not for
use but just to block others using the ideas.
Plutocratic corporations are ‘hoovering’ up thousands of patents, thereby
turning the monopoly income that would come from applying one or several
into a veritable avalanche.
Many patented inventions are based on publicly-subsidised research. It is the
public that pays, through taxes that finance the research, higher prices for
patented products and loss of the intellectual commons.
Most innovations that yield large returns through patents etc. are the result
of a series of ideas and experiments attributable to many individuals or
groups – e.g. “Bill Gates made a pebble of a contribution to a Gibraltar of
technological advances. There is no moral reason for him and his ilk to
receive the whole Gibraltar of reward”.

51. Article in Social Europe 28oct16 sets out 5 lies
of today’s “Rentier Capitalism” - 3
“The institutional structure of capitalism built in the globalisation era is
‘good for growth’”: instead, it has hindered growth and made what
growth that has occurred less sustainable, with rising ecological costs
that are partly the outcome of rentier mechanisms, notably trade and
investment accords, of which there are over 3,000.
There is no evidence that those promote investment. Most studies
have found only weak or non-existent correlations between those
treaties and investment flows.
Nor is there much correlation between opening up to foreign
investment and growth. Instead, the correlation is with financial
instability.

52. Article in Social Europe 28oct16 sets out 5 lies
of today’s “Rentier Capitalism” - 4
“Profits reflect managerial efficiency and returns from risk-taking”:
instead, the increased profit has gone to those receiving rental income,
much of it linked to financial assets, IP rights and the edifice of
subsidies given to capital.
Further, the undemocratic ISDS (Investor-State Dispute Settlement)
process gives multinationals insurance against changes in government
policies deemed to affect their profits.
Can you imagine yourself as a citizen or worker having the right to sue
governments or employers if we thought changes in policies, strategies
or other actions affected our incomes?

53. Article in Social Europe 28oct16 sets out 5 lies
of today’s “Rentier Capitalism” - 5
“Work is the best route out of poverty”: instead, the army of the precariat in general stand
testament to that lie.
The principal source of rental income is the emerging “platform capitalism”, exemplified by
the Uber and TaskRabbit.
This is transforming the labour market, directly, by generating labour for millions of
‘taskers’, and indirectly, through its impact on traditional suppliers of invaded services.
Such platforms maximise profits through owning the technological apparatus, protected by
patents and other forms of IP rights, and by the exploitation of labour, taking 20% or more
of earnings.
They are rentiers, earning a lot for doing little, if we accept their claim that they just
provide technology to put clients in touch with ‘independent contractors’ of services.
The point is that incomes from labour are dropping for the precariat, while rental income is
mounting.

54. Article in Social Europe 28oct16 sets out 5 lies
of today’s “Rentier Capitalism” - 6
“Global capitalism is based on free markets”
“IP rights encourage risk-takers”
“The institutional structure of capitalism built in the globalisation era is ‘good for
growth’”
“Profits reflect managerial efficiency and returns from risk-taking”
“Work is the best route out of poverty”
IS THE SOLUTION A GLOBAL TAX ON RENTIER INCOME?

55. Some other System-Solutions
• Fight the High Priests of Liquidity (demand Sound Money)
• Discourage lending/ borrowing (encourage investment in the real economy)
• Discourage High Frequency Trading (support a Financial Transaction Tax)
• Fight the culture of Rights (encourage a culture of responsibility)
• Fight the culture of Greed (nurture a culture of giving)
• Fight the global culture of Fear (nurturing true optimism)
• Fight the culture of Speed (encourage a culture of thoughtfulness)
• Change Company Law to enable two classes of shares: Long Term & Short Term
• Change Company Law to enable responsible behaviour (managements should
not have to struggle against the demands created by current corporate law)