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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

http://www.economicsofinformation.com/2011/05/inequality-is-growing-around-world.html

Mid-1980s to late 2000s

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
authoritarian
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

http://www.transparency.org/cpi

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

Religiosity
and wealth

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

Is religion an important part of your life?

http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1

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 Putnams 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

http://www.ted.com/talks/richard_wilkinson.html

The lower income inequality,


the fewer social problems

http://www.ted.com/talks/richard_wilkinson.html

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

http://www.nccr-democracy.uzh.ch/news_events/image/Demokratiebarometer_Europa_D.pdf

The 10
countries
with
highest
quality of
democracy

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

Democracy around the world

Freedom of the press 2014

http://www.freedomhouse.org/report-types/freedom-press

Green = free
Purple = Not free

The 5 countries with the


least corruption

http://www.transparency.org/cpi

Corruption perceptions index 2013

http://www.transparency.org/cpi

Is religion an important part of your life?

http://www.gallup.com/poll/142727/Religiosity-Highest-World-Poorest-Nations.aspx#1

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.

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