INTERNATIONAL DIMENSIONS OF ORGANIZATIONAL BEHAVIOR

INTERNATIONAL DIMENSIONS OF

ORGANIZATIONAL BEHAVIOR

F I F T H E D I T I O N

N A N C Y J . A D L E R M c G i l l U n i v e r s i t y

w i t h

A L L I S O N G U N D E R S E N

C a s e W e s t e r n R e s e r v e U n i v e r s i t y

International Dimensions of Organizational Behavior, Fifth Edition by Nancy J. Adler with Allison Gundersen

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To my mother, Liselotte Adler, who brought together two worlds and

two very different cultures in creating the home in which I grew up.

—Nancy J. Adler

To my nieces, Stephanie and Melissa Merakis, who

give me hope and inspiration for the future.

—Allison Gundersen

v

Preface

The world of organizations is no longer defined by national boundaries. International Dimensions of Organizational Behavior breaks down the con- ceptual, theoretical, and practical boundaries that limit our ability to understand and work with people in countries and cultures around the world. Prior to the 21st century, a disproportionate amount of the pub- lished material on management came from the United States. American managers and American-trained researchers observed the behavior of people in U.S.-based organizations. From their observations and research, they developed models and theories to explain the behavior of people and organizations. The problem was in their implicit assump- tion: most scholars assumed that what was true for Americans working in the United States was also true for people from other countries work- ing worldwide. Both managers and researchers assumed that Americans’ work behavior was universal. They were wrong. International Dimensions of Organizational Behavior challenges us to transcend our parochialism—no matter which country we grew up in—and to see the world from a global perspective.

Today, managers no longer have the luxury of reducing global com- plexity to the simplicity of assumed universality; they no longer have the luxury of assuming that there is only one best way to manage. Luckily, we have learned that global complexity is neither unpredictable nor random. Variations across cultures and their impact on organiza- tions follow systematic, predictable patterns. Starting with a core of tra- ditional, primarily U.S.-based understandings of the behavior of people in organizations, International Dimensions becomes a guide for modifying our attitudes, thinking patterns, and behavior. Far from ignoring the historical body of managerial knowledge, International Dimensions expands our understanding of people’s behavior at work to include the diversity and complexity of today’s global environment.

International Dimensions of Organizational Behavior is divided into three parts. Part 1, “The Impact of Culture on Organizations,” describes the ways in which cultures vary, how that variance systematically affects organizations, and how people can recognize, manage, and effectively use cultural variance within their own work environments. Chapter 1 provides a broad context for understanding the global nature of today’s business environment. Chapter 2 focuses on the nature of cultural dif- ferences worldwide and how they impact organizations. Chapter 3 pro- vides a framework for understanding how to effectively communicate

across cultures. Part 2, “Leveraging Cultural Diversity,” presents an inte- grated approach to managing in multicultural work environments. Chapter 4 investigates cross-cultural problem solving and organization- al development; Chapter 5 presents the dynamics of multicultural teams; Chapter 6 reviews approaches to global leadership; Chapter 7 focuses on the best approaches for inspiring and motivating people from around the world; Chapter 8 reviews decision making from a global perspective; and Chapter 9 summarizes global approaches to negotiating and resolving conflict.

Part 3, “Managing Global Managers,” presents a series of issues that are unique to managing people in a global environment. It addresses the human resource management dilemmas involved in managing one’s life and career while moving across international borders. Chapter 10 describes the cross-cultural entry and re-entry transitions from the employee’s perspective and addresses such questions as: What is culture shock? How does one adjust to a new culture? How can employees who have worked abroad successfully navigate re-entry back into their home countries and home organizations? Chapter 11 also presents global transition issues, but from the perspective of the spouse. Chapter 12 introduces the challenges of managing a global career. How do the routes to the top of major companies vary from one country to another? What do managers see as the most important benefits and drawbacks of pursuing global careers? Given its focus on global managers, this section goes far beyond the scope of domestically oriented books on both management and organizational behavior.

International Dimensions of Organizational Behavior is used by executives, managers, and college students in a number of ways. First, it is fre- quently used as a basis for cross-cultural management seminars in which each chapter of the book forms the core of a course module. When used in this way, the book is often supplemented with current readings that provide a more in-depth look at specific areas of the world, as well as with news articles on contemporary world business events. After being introduced to each module with a chapter from International Dimensions, seminar participants often expand on the mate- rial in the book, based on their current interests and experience, by looking at how it applies, for instance, to e-commerce in Eastern Europe or to China’s and India’s rapidly expanding economies.

Alternatively, the book is used as a supplement to core organizational behavior courses. In this case, professors first use their standard intro- duction to the study of people’s behavior in organizations. Using Chapters 1 and 2, they then introduce the international dimensions of organizational behavior. Following this introduction, they pair a chap- ter from International Dimensions of Organizational Behavior with each of the

vi Preface

modules of their standard course. They pair Chapter 3, for example, with their perception and/or communications module; Chapter 4 with their problem solving and/or organizational development and change module; Chapter 5 with their module on group dynamics and team building; Chapters 6, 7, and 8 with their discussions of leadership, moti- vation, and decision making; and Chapter 9 with material they present on conflict management and negotiation. In addition, in combination with a module on human resource management or managing careers, or as a completely independent module, professors present Part 3 of International Dimensions, which deals with issues related to managing global managers. Participants complete the course with an in-depth understanding of organizational behavior issues from a global, rather than simply a domestic, perspective.

As a third alternative, International Dimensions of Organizational Behavior is sometimes used as a self-contained part of a more traditional organi- zational behavior, management, human resource management, or international business course. Professors selecting this option often present their more domestically oriented material first, and then add a section on international dimensions. As the economy becomes more globally integrated, this third option is preferred less frequently.

Because a substantial amount of the traditional management litera- ture is based on the behavior of Americans working in the United States, and many practicing managers as well as students of management are familiar with U.S. patterns, International Dimensions often uses the United States as a reference point and as a point of comparison. Readers in the United States will recognize the familiar ways in which organizational behavior is usually described and be able to add a more global perspec- tive to their knowledge and skills. Readers from all countries will gain a better understanding of their own culture’s practices and ways of con- ducting business, both relative to traditional U.S.-based descriptions and, more importantly, relative to a wide variety of countries and cul- tures worldwide. No country’s system or perspective is any better or worse—any more or less effective—than any other country’s; rather, each is distinct and therefore must not be understood as a replica of any other nation.

Cross-cultural management (i.e., studying the international dimen- sions of people’s behavior in organizations) is a relatively new field com- pared to the traditional study of management. International Dimensions of Organizational Behavior integrates the best of what is known in the field as of the first decade of the 21st century. Our knowledge will continue to grow far beyond today’s understandings. Even though the limits of our understandings at times restrict us, they also define the expanding boundaries and excitement of an important and rapidly growing field

Preface vii

of knowledge. Far from leaving with a sense of knowing all there is to know, it is hoped that readers will finish the book with a sophisticated awareness of the world beyond their own national borders, an under- standing of the limits of their own knowledge, and a set of frame- works and questions to guide their managerial decisions and future inquiry.

ACKNOWLEDGMENTS

The process of understanding the human dynamics in global manage- ment has brought together some of the best thinking and insights from executives, consultants, managers, and scholars worldwide. The process is evolving. What we know today is so much more than what we under- stood yesterday, and yet so much less than what we will need for tomor- row. The excitement and passion in the search is predicated on our need to understand ourselves in a world in which no part of humanity is very far away, a world in which our success as well as our survival depends on our understanding and respect for each other.

We would like to thank the many people who have contributed to this book, each from his or her unique perspective and expertise. The quality of this book is shared by all; the errors and limitations are ours alone. Our thanks to: Liselotte Adler (USA), Arshad Ahmad (Pakistan), Nakiye Boyacigiller (Turkey), Jill deVillafranca (Canada), Joseph J. DiStefano (Switzerland), Angela Dowson (Canada), Paul Evans (England), John Graham (USA), Jon Hartwick (Canada), Mary Hess (USA), Maryann Jelinek (USA), André Laurent (France), Phyllis Lefohn (USA), Robert T. Moran (USA), Eileen Newmark (USA), Pri Notowidigdo (Indonesia), Roger Putzel (USA), Vijit Ramchandani (India), Indrei Ratiu (Britain/Romania), George Renwick (USA), Stephen Rhinesmith (USA), David Ricks (Austria), Karlene Roberts (USA), Anita Salustro (USA), Frances Westley (Canada), and Rola Zoayter (Lebanon). In addition, we would like to thank the Organizational Behavior departments at Case Western Reserve and McGill Universities for their support, and the faculty and staff of the Summer Institute for Intercultural Communication for their commit- ment to the field and research assistance.

A very special thank you goes to Troy Anderson at McGill University for his always extremely helpful research, insights, and editing assistance, and to Darlene Fowler for her patient and conscientious organizing and typing of each new revision until the chapters you see here became the fifth edition. The current fifth edition of the book International Dimensions of Organizational Behavior would not be possible without the

viii Preface

Preface ix

work contributed by many dedicated colleagues on prior editions, including Louise Dubreil, without whose help, encouragement, and insight, the first edition of this book would have never become a real- ity; Robine Andrau for her excellent editing of the second and third editions; and John Szilagyi for his professionalism and enthusiasm in managing the fourth edition and the initiation of the current fifth edition.

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About the Authors

NANCY J. ADLER

Nancy J. Adler is a Professor of Organizational Behavior and Inter- national Management at McGill University’s Faculty of Management in Montreal, Canada. She received her B.A. in economics, M.B.A. and Ph.D. in management from the University of California at Los Angeles (UCLA).

Dr. Adler conducts research and consults on global leadership, cross- cultural management, women as global managers and leaders, and the arts and leadership. She has authored over 100 articles, produced the film A Portable Life, and, in addition to International Dimensions of Organizational Behavior, published the books Women in Management Worldwide, Competitive Frontiers: Women Managers in a Global Economy, and From Boston to Beijing: Managing with a Worldview.

Dr. Adler consults to private corporations and government organi- zations on projects in Asia, Africa, Europe, North and South America, and the Middle East. She has taught Chinese executives in the People’s Republic of China, held the Citicorp Visiting Doctoral Professorship at the University of Hong Kong, and taught executive seminars world- wide, including at INSEAD in France, Oxford University in England, and Bocconi University in Italy. She received McGill University’s first Distinguished Teaching Award in Management and is one of only a few professors to have received it a second time. Honoring her as one of Canada’s preeminent university professors, she was selected as a 3M Teaching Fellow.

Dr. Adler has served on the Board of Governors of the American Society for Training and Development (ASTD); the Canadian Social Science Advisory Committee to UNESCO; the Strategic Grants Committee of the Social Sciences and Humanities Research Council; the Executive Committees of the Pacific Asian Consortium for International Business, Education and Research; the International Personnel Association; and the Society for Human Resource Management’s International Institute, as well as having held leadership positions in the Academy of International Business (AIB); the Society for Intercultural Education, Training, and Research (SIETAR); and the Academy of Management. Dr. Adler received ASTD’s International Leadership Award, SIETAR’s Outstanding Senior Interculturalist Award, the YWCA’s Femme de Mérite (Woman of Distinction) Award,

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xii About the Authors

and the Sage Award for scholarly contributions to management. She was elected to both the Fellows of the Academy of International Business and the Academy of Management Fellows, as well as being inducted into the Royal Society of Canada. In addition to her role as a global manager professor and consultant, Dr. Adler is an artist, working primarily in water color and Asian ink traditions.

ALLISON GUNDERSEN

Allison Gundersen received her A.B. from Cornell University and her M.A. in Intercultural Relations from Lesley University. She has extensive experience managing and consulting in information technology and investment banking in Asia and North America, having been based in both Tokyo and New York City. Her global management work has focused on diverse teams, global responsibilities, and expatriation. Allison is currently conducting research on global leadership, interna- tional management, and cross-cultural teams as part of the Department of Organizational Behavior at Case Western Reserve University’s Weatherhead School of Management (repeatedly rated as the number one Organizational Behavior department in the world by the Financial Times), where she is pursuing her doctoral degree.

xiii

Contents

PART 1 The Impact of Culture on Organizations . . . . . . . . . . . . . . . . . . . . .3 CHAPTER 1 Culture and Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Global Strategy and Culture. . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Going Global: Phases of Development . . . . . . . . . . . . . . . . . . . 9

Cross-Cultural Management . . . . . . . . . . . . . . . . . . . . . . . . . . 13

What Is Culture? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

How Do Cultures Vary? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

CHAPTER 2 How Cultural Differences Affect Organizations . . . . . . . . 44

Work Behavior Varies Across Cultures . . . . . . . . . . . . . . . . . . 44

Are Organizations Becoming More Similar?. . . . . . . . . . . . . . 62

Organizational Culture and National Culture . . . . . . . . . . . . . 63

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

CHAPTER 3 Communicating Across Cultures. . . . . . . . . . . . . . . . . . . . . 69

Communicating Cross-Culturally . . . . . . . . . . . . . . . . . . . . . . 70

Cross-Cultural Misperception . . . . . . . . . . . . . . . . . . . . . . . . . 73

Cross-Cultural Misinterpretation . . . . . . . . . . . . . . . . . . . . . . 75

Cross-Cultural Misevaluation . . . . . . . . . . . . . . . . . . . . . . . . . 86

Communication: Getting Their Meaning, Not Just Their Words . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

PART 2 Leveraging Cultural Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .97 CHAPTER 4 Creating Cultural Synergy . . . . . . . . . . . . . . . . . . . . . . . . . . 99

Cultural Invisibility: Strategies for Recognizing Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99

xiv Contents

Cultural Synergy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

CHAPTER 5 Managing Multicultural Teams . . . . . . . . . . . . . . . . . . . . . 126

Managing a Multicultural Workforce . . . . . . . . . . . . . . . . . . 126

Domestic Multiculturalism . . . . . . . . . . . . . . . . . . . . . . . . . . 129

Teams: The Organization in Microcosm . . . . . . . . . . . . . . . . 131

Types of Diversity in Teams. . . . . . . . . . . . . . . . . . . . . . . . . . 132

Cultural Diversity’s Impact on Teams . . . . . . . . . . . . . . . . . . 134

Conditions for High-Performing Multicultural Teams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

Managing Culturally Diverse Teams . . . . . . . . . . . . . . . . . . . 144

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147

CHAPTER 6 Leading Globally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

Global Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Leadership Vision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Leadership Theories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

Cultural Contingency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

Global Leadership Competencies . . . . . . . . . . . . . . . . . . . . . 169

Global Leadership: Creating a Positive Future . . . . . . . . . . . 172

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

CHAPTER 7 Motivating People From Around the World: Inspiring People to Contribute . . . . . . . . . . . . . . . . . . . . . 184

Hierarchies of Needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185

Three Motives: Achievement, Power, and Affiliation . . . . . . 186

The Two-Factor Motivation Theory . . . . . . . . . . . . . . . . . . . 187

Expectancy Theories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188

Cultural Intelligence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Beyond Motivation: Inspiration . . . . . . . . . . . . . . . . . . . . . . 192

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199

CHAPTER 8 Multinational Decision Making. . . . . . . . . . . . . . . . . . . . . 207

Problem Recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210

Information Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210

Constructing Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . 211

Contents xv

Choice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 212

Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Ethical Decision Making . . . . . . . . . . . . . . . . . . . . . . . . . . . 214

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 219

CHAPTER 9 Negotiating Globally . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 224

Negotiating Globally. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226

Negotiating Successfully: The People, the Situation, and the Process . . . . . . . . . . . . . . . . . . . . . . . . 229

Negotiation Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 236

Negotiation Tactics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246

Negotiating Across Cultures: Ethical Challenges . . . . . . . . . 258

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 261

PART 3 Managing Global Managers . . . . . . . . . . . . . . . . . . . . . . .271 CHAPTER 10 Managing Cross-Cultural Transitions:

Moving Abroad and Coming Back Home . . . . . . . . . . . . 273

Entering a New Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 277

Managing Expatriates Effectively, Equitably, and Ethically . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 282

Coming Home: Re-entering One’s Own Culture . . . . . . . . . . 284

Professional Re-entry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 288

Underutilized Global Managers. . . . . . . . . . . . . . . . . . . . . . . 296

Coaching Women for Global Managerial Success . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 304

CHAPTER 11 A Portable Life: The Expatriate Spouse . . . . . . . . . . . . . . 314

Single-Career Couples: The Traditional Expatriate’s Wife. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315

Living Globally: Dual-Career Couples. . . . . . . . . . . . . . . . . . 330

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340

CHAPTER 12 Global Careers: Succeeding in the 21st Century . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 345

What It Takes to Reach the Top . . . . . . . . . . . . . . . . . . . . . . . 346

Is the Traditional Expatriate Manager Extinct? . . . . . . . . . . 348

Today’s Global Careers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 349

Global Managers and Leaders: No Longer Men Alone. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 358

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 370

Epilogue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 381

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 383

Painting on Book Cover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397

xvi Contents

INTERNATIONAL DIMENSIONS OF

ORGANIZATIONAL BEHAVIOR

PART 1

The Impact of Culture on Organizations

CHAPTER 1 Culture and Management

CHAPTER 2 How Cultural Differences Affect Organizations

CHAPTER 3 Communicating Across Cultures

Chapter 1

Culture and Management

Verité en-deçà des Pyrénées, erreur au-delà. (“There are truths on this side of the Pyrenees

which are falsehoods on the other.”)1

—Blaise Pascal

Capital raised in London in the Eurodollar market by a Belgium- based corporation may finance the acquisition of machinery by a subsidiary located in Australia. A management team from French Renault may take over an American-built automotive complex in the Argentine. Clothing for dolls, sewn in Korea on Japanese- supplied sewing machines according to U.S. specifications, may be shipped to Northern Mexico for assembly with other components into dolls being manufactured by a U.S. firm for sale in New York and London during the Christmas season. A California-manufac- tured [plane] . . . is powered by British . . . engines, while a com- peting [aircraft] . . . flies on Canadian wing assemblies. A Frenchman is appointed president of [a] U.S. domiciled . . . corpo- ration, while an American establishes . . . a Swiss-based interna- tional mutual fund (28:1–2).

Managing the global enterprise and modern business management have become synonymous. The terms international, multinational, transna- tional, and global can no longer be relegated to a subset of organizations or to a division within the organization. Definitions of success now tran- scend national boundaries. In fact, the very concept of domestic business may have become anachronistic. Today “the modern business enterprise has no place to hide. It has no place to go but everywhere” (56:xiii).

Executives no longer question the increasing importance of global business. As indicated in the 21st Century Report (38), more than two- thirds of the world’s CEOs view foreign competition as a key factor in their firms’ business success. Similarly, two-thirds of the world’s CEOs

5

expect to generate employment and revenues increasingly from outside their firms’ home countries (38:30,31). These same executives believe that effectively managing human resources is critical to global success (38:2). The post–World War II years saw a major expansion of world trade. From 1948 through 1972 world exports grew from $51 billion to $415 billion, representing a sevenfold increase in monetary terms and a four- fold increase in volume (22:23).2 By 1980 international trade volume exceeded $1 trillion as compared with $800 billion in 1975 (48). In the 1990s, world exports grew from $4.3 trillion in 1990 to $7.1 trillion in 1999, an increase of 65 percent (27), and by 2005 they had grown to $12.6 trillion, an increase of an additional 77 percent (47). By the 1990s, Coca- Cola, for example, earned higher profits selling soda to the Japanese than to Americans (82:5). By 2006, Coca-Cola produced nearly 400 prod- ucts in over 200 countries, with more than 70 percent of its income coming from outside the United States (21). Mexicans, not Americans, lead the world in the consumption of Coca Cola’s beverages, consum- ing, on average, 533 8-oz. beverages per year (21). Today’s world trade dwarfs all prior statistics.

By the mid-1980s, the U.S. Commerce Department estimated that some 70 percent of U.S. firms faced “significant foreign competition” in their domestic markets, up from only 25 percent a decade earlier (67:11). By the end of the 1980s, the chairman of the Foreign Trade Council estimated the figure to be 80 percent. Companies are increas- ingly looking outside their domestic markets for revenue. In a study of U.S. companies with revenues over $1 billion, Accenture found that, on average, executives expect sales revenue generated abroad to reach 42 percent of their overall earnings by 2009, compared with 26 percent in 2002 (14). Ninety-seven “percent report that their organization is upgrading its global operations” (14). Today, in the early years of the twenty-first century, global competition is serious, pervasive, and here to stay (49).

What does the future portend? According to The Economist, between 1995 and 2020, “the world will see the biggest shift in economic strength in more than a century” (33:3). Emerging economic giants will dwarf developed industrial economies, and “within a generation, China will overtake . . . [the United States] as the world’s biggest economy” (33:4). Since 2000, the average annual percentage change in total output in devel- oping countries was more than twice that of advanced economies (9.5% versus only 4.1% [47]). Moreover, many of the top 15 economic perform- ers this century will be from today’s rapidly developing economies, with countries such as Thailand and Taiwan overtaking Britain (33:4). In fact, the five fastest growing economies from 1990-2004 were Albania, Bosnia and Herzegovina, China, Ireland, and Vietnam (96:1). The developing

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