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News - Editor, 31 March 2008

World Business Implications for Governance in China



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Natural disasters test governance. Satellites help in some cases, but not always. You can guess that a storm could be brewing. It is more difficult to predict extremely heavy and incessant snow fall. Execution excellence can make up for lapses in forecasts. An effective administration will move people to safety, provide succor without discrimination, and correct disruptions as soon as possible.

The Executive Head of State is in sharp focus during every national emergency. Leadership works behind the scenes 24*7. However, every statement of a leader makes a world of difference to rescue workers and victims alike. A Premier or a President can inspire bureaucracy to unprecedented heights of public service. He or she also becomes the sole beacon for marooned folk in acute distress.

There are many leads for business from governance following a disaster. Corporations also suffer acutely adverse events. Besides, it is a pointer to the skills and determination of elite fortunate to lead their countries. You can invest with confidence in a country that has a proven track record of dealing swiftly to ameliorate sudden and widespread suffering.

China has suffered extreme weather during the winter of 2007/2008. It was not unlike the fate of New Orleans in the aftermath of Hurricane Katrina. Overlook the differences between satellite-tracked hurricanes off the south western coast of the United States, and rare snow storms in the heart land of China. Compare factual statements of Premier Wen Jiabao and President Bush. Draw your own conclusions.

“I apologize to you all. We are doing our best to repair the system. We will repair the electric grid first. The trains will start running again. You can all go home for the New Year”.

“I don’t think anybody anticipated the breach of the levees… We will move in whatever resources we have at our disposal after the storm”.

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