The Power of Productivity
Inequality between wealthy and poor countries is currently the world's most pressing and persistent issue. Chronic poverty has an impact on many countries' populations and economies, but it also poses a danger to global stability as immigration pressures become unsustainable and rogue countries seek power and influence through radical political and terrorist activities. Despite billions of dollars and attention poured into these nations by a plethora of international organizations in recent decades to tackle their tenacious poverty, roughly five billion of the world's six billion people still live in poverty. What exactly isn't functioning here? And, more importantly, what can we do about it?
The book The Power of Productivity addresses these issues in an engaging and contentious manner. The McKinsey Global Institute's emeritus director, William W. Lewis, utilizes detailed microeconomic assessments of thirteen nations undertaken over a twelve-year period—research conducted by the Institute itself—to reject almost all common knowledge about how to minimize economic disparity. Lewis' study, which included looking at everything from high-tech manufacturers to black-market street sellers and mom-and-pop stores, conclusively demonstrates that, contrary to common belief, handing more money to impoverished nations is not the best way to help them. It is not enough to improve educational levels, exchange rate flexibility, or government solvency. According to Lewis, the key to improving economic circumstances in undeveloped nations is increasing productivity via vigorous, fair competition and preserving consumer rights.
As The Power of Productivity shows, this comprehensive solution affects the economics of poor nations on many levels, from major business viability to how the average consumer thinks about his or her purchases. Policies that reflect a consumer rather than a producer viewpoint, as well as a sense of consumer rights, must be fostered in emerging nations. According to Lewis, consumer interests are the only force that can stand up against producer special privileges. Thanks to the Institute's pioneering research approach and Lewis' years of experience with economic policy, The Power of Productivity is the most authoritative and compelling vision of the global economy today, one that will shape political and economic discussion throughout the world for years to come.
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