|
N E W S |
|---|
 |
|---|
 |
Cavalier Move: Effective July 1, 1998, Edward A. Snyder will
become Dean of the Darden Graduate School of Business Administration at
the University of Virginia.
Currently the Senior Associate Dean at UMBS, Snyder said of his decision to assume the helm at Darden: Leaving Michigan "was an extremely hard decision to make, and one done jointly with my wife and family." Photo courtesy of the Office of Communications |
Last week, it was announced that Senior Associate Dean Edward A. Snyder will be leaving to become dean of the Darden Graduate School of Business Administration at the University of Virginia, effective July 1, 1998. Upon news of his departure, UMBS Dean B. Joseph White noted, "While Ted's leaving Michigan is a loss for our School and University, and for me personally, I am very proud of him and for what this appointment says about the quality of his leadership at the University of Michigan Business School."
News of Snyder's departure has saddened the UMBS community, but Snyder said that his departure should be viewed as "a sign of health and Michigan's strength. This place is on a roll, we've got a great faculty and tremendous corporate visibility. Plus, Michigan's got the best dean in the business. I have every confidence Joe's going to put together a really strong team for the future."
Dean White remarked that the search to fill the void Snyder will leave is "the foremost thing on my mind." The Dean is working with the Executive Committee on the search and will be considering candidates who are highly respected by the faculty; have exceptional leadership qualities and abilities; believe in the mission, goal, and strategy of the school; are student-oriented; and are compatible with the B-school's senior management team. Dean White added that he views this search as a chance to strengthen the highest ranks of the B-school's leadership. "You have to turn every loss into an opportunity," he said.
Snyder assumed the role of Associate Dean of Academic Affairs in 1995 and has served as Senior Associate Dean since 1996. From 1992 to 1995, he served as Director of the William Davidson Institute. A renowned scholar, Snyder joined the UMBS Business Economics department in 1982 and his research efforts have focused on corporate governance of financial institutions, industrial organization and marketing, and antitrust enforcement.
Among the challenges he looks forward to tackling at Darden are: continuing to develop, strengthen and diversify its faculty; enhancing corporate visibility, especially internationally; and increasing research productivity. While the school was evaluating many top candidates, Darden President John T. Casteen III said, "Ted Snyder's widely respected scholarship and proven capabilities as an administrator make him an ideal choice to lead the Darden School into the 21st century."
Leaving Michigan "was an extremely hard decision to make, and one done jointly with my wife and family," said Snyder. "I love our faculty, the big tent approach to build our curriculum and the character of our students. I think the BusinessWeek article stated it best: our students have 'confidence, not arrogance,' and an eagerness to really do well. I'll miss working as part of this team."
This is not the first time an associate dean at Michigan has been recruited to lead another top B-school. Snyder follows the path of Paul Danos, who became dean of the Amos Tuck School of Business Administration at Dartmouth College in 1995. Added Dean White, "I am pleased that through these appointments, Michigan's influence and philosophy as a leader among the world's top business schools continues to spread. Competition among business schools is keen, of course, but it is important to remember that ultimately, our collective goal is to provide students and executives with the very best professional education possible."
 |
 |
By Kevin Greiner, CEMP3/MBA2
Students in the Corporate Environmental Management Program (CEMP) arrived at UMBS this fall facing a new reality: Stuart Hart, Adjunct Professor of Corporate Strategy and the Director of CEMP, will be departing for the University of North Carolina in Spring 1998. For the 10 incoming CEMP students, each of whom received a letter from Hart this summer, the news was particularly surprising and alarming.
"I was absolutely shocked," said Tim Reed, MBA1. "I decided to come to Michigan because CEMP is the premier joint-degree program linking environmental and business management. I immediately asked myself: "What does this mean about the B-school's commitment to CEMP?"
Many CEMPers had similar thoughts going through their heads. But most felt better after a September meeting with Dean White of the B-school and Dean Mazmanian of the School of Natural Resources & Environment (SNRE). Both deans reiterated their commitment to CEMP and its role as a core program for their respective schools. Kellie McElhaney, CEMP's manager since 1995, announced that she would be expanding her role as Managing Director, giving the program some much-needed leadership and continuity. The deans have taken the unusual step of co-chairing a search committee to fill the McGraw Chair, an endowed faculty position that will be shared between the two schools.
"The deans are committed to solidifying CEMP as the premier program in the country," said Reed, the CEMP student representative on the search committee. "Everyone agrees it's unfortunate to have to move forward without Stu Hart here on campus, but we agree on the urgency of attracting new faculty and have a good opportunity to do so. The right people have stepped up."
According to Dean White, the search to fill the McGraw Chair "is in its early stages, but is going very well. I'm extremely encouraged by the list of 15 potential candidates."
Everyone also agrees that CEMP cannot afford to rest on its laurels. Since its founding in 1992, CEMP has emerged as the leading and most integrated environmental management program in the country. Students in the program earn the MBA and an MS in environmental science or policy in three years. The program has grown to 20 students, including 10 in their first year of study. CEMP is the only such program with an Advisory Board consisting of representatives from industry, consulting and financial firms, government, and non-profit organizations. Though CEMP faces competition from similar dual-degree programs at Yale and Duke, and many business schools have developed environmental management concentrations. To remain the leader, CEMP will need to stay one step ahead.
Professor Hart Departing for Greener Pastures
This winter, Hart will teach his popular environmental strategy class at UMBS for the last time. For Hart, his impending departure to University of North Carolina's Kenan-Flagler Business School is bittersweet. "I've had a great situation here at Michigan where I've been able to run with a program and grow it," said Hart. "I'm extraordinarily proud of where CEMP has come in the last five years and how it is poised to grow from here."
After Hart was denied tenure last spring (please see the article opposite this page), UNC was one of a number of schools waiting in the wings.
Asked about the tenure decision, Dean White could not comment on the specifics. But he did remark, "I'm very sorry to see Stuart Hart go."
Hart is entering UNC as a fully tenured professor with a strong commitment from the administration there to create a program in CEMP's image. "We need more initiatives like CEMP," said Hart. "I hope and expect that my leaving will not slow the growth of the program at Michigan."
Still, questions remain. Will UMBS and SNRE succeed in attracting a tenured or tenurable professor in time for the Fall 1998 semester? Will the CEMP Board of Directors, many of whom were recruited by Hart, stick with the program during this transitional period? Will prospective student interest decline? Will Hart's departure lead to any fallout in terms of student interest in CEMP and environmental management in general?
McElhaney, who doubles as CEMP Managing Director and a Lecturer of Business Law, History and Communications at UMBS, believes that CEMP is well positioned. "Stu never coveted the program as his empire, and he's been very good at getting other faculty involved," noted McElhaney. "Also, student and board involvement has increased dramatically. The timing of a departure like this is never good, but CEMP has become institutionalized over the last few years and can stand on its own during this interim period. And I'm confident that we'll attract excellent faculty candidates for the McGraw chair."
Filling the McGraw chair will not be easy, however. The search committee is looking for a candidate who is a respected researcher and instructor, with the personality necessary to grow the program. "We're seeking a people-magnet," said McElhaney. "And someone who is comfortable moving between business and environmental circles." These criteria may limit the search to a relatively small pool of qualified candidates.
McElhaney noted that uncertainties have not affected student interest in CEMP thus far. This year's incoming class of 10 students is the largest ever, and prospective student interest is surging. "We've had 80 inquiries regarding CEMP so far this year, and about 25 serious phone discussions," said McElhaney. "Interest is definitely growing."
CEMP: The Next Phase
Hart believes that CEMP has made great progress in becoming a core part of the UMBS program. He notes that over the last five years, CEMP has built bridges to other UMBS programs and faculty. For example, Andy Lawlor's Global Projects course has sponsored several environmental technology projects over the last two years. "We have succeeded in leveraging CEMP and integrating it more into core business school activities," noted Hart.
Still, Hart says that more needs to be done to get CEMP to the next level, where it becomes truly institutionalized. For this to happen, he believes that greater UMBS faculty interest is necessary. "CEMP needs a strong set of champions," said Hart. "The B-school also needs to bring environmental management content into more of the core courses like Operations Management, Managerial Accounting, and Corporate Strategy," said Hart. "We need something analogous to the globalization initiative that swept through the school a decade ago."
"The challenge for CEMP is penetrating both schools and being a change agent in the process," said Hart. Hart's classes have facilitated progress towards these goals. A strong need and demand for these classes should continue, even after he leaves UMBS. "It still opens people's eyes that sustainable development and environmental management are not just about regulatory compliance," noted Hart. "It's about developing new strategies and products and sound long-term management."
 |
 |
by Steven L. Pessagno, MBA2
Earlier this month, MBA2 Pete Mavoides ran the New York City Marathon as part of a group that raised money for the V-Foundation. Based in Cary, NC, the V-Foundation was set up 4 years ago to fund cancer research in memory of college basketball coach James Valvano, who died of bone cancer on April 28, 1993, after a 10-month battle with the disease.
Affectionately known as Jimmy V., Valvano began his coaching career in 1968 as the head coach for Johns Hopkins University in Baltimore. He subsequently held the same position at Bucknell, Iona College, and finally landed in the Atlantic Coast Conference at North Carolina State University in 1980.
In coaching one of the country's consistently most talented teams from 1980 to 1989 at NC State, Valvano became a household name who was especially known for exceptionally entertaining courtside histrionics. He led NC State to the national championship in one of the most memorable games in college basketball history, upsetting Houston on a dramatic last-second shot in 1983. While at NC State, Valvano amassed a 208-114 record, leading the team to claim two ACC titles as well as three appearances in the Final Eight of the NCAA Tournament.
Each year, the V-Foundation donates $4 million for all types of cancer research. The money goes directly to researcher-physicians affiliated with one of the nation's 55 NCI-designated hospitals. (NCI stands for the National Cancer Institute.) The physicians undertake a wide array of research that aims to enhance our understanding of cancer's epidemiology, course, prevention, and treatment.
The foundation typically starts researchers with a $100,000 grant for two years, the average cost of such research over this period. After two years, the V-Foundation, along with its executive board of expert physicians, evaluates the research and decides whether to extend funding.
The V-Foundation currently funds 23 so-called V-Scholars. According to Jamie Valvano, Director of Special Events, the foundation tends to focus on researchers who tend to have a difficult time obtaining grants as compared with more established, or more politically connected, researchers.
"We like to fund young researchers who have good ideas but can't get the money," explained Jamie Valvano.
In helping to raise money for the V-Foundation, Mavoides ran the NYC Marathon with a group organized by a friend (Kelly Dunne) who works at ESPN. James Valvano was a sports commentator for ESPN in 1992.
Dunne's ESPN group of five raised $4,000 for the V-Foundation, and The Monroe Street Journal sponsored Mavoides in the run with a $500 donation toward that total.
For those who are interested in learning more about the V-Foundation, please call toll-free (1-800-4JIMMYV) or visit the organization's Website (www.jimmyv.org).
The path to tenure at UMBS is, in the words of Senior Associate Dean Ted Snyder, "a well-defined process with a lot of forks in the road." What is well-defined and where are the forks? This is how it works.
New faculty hired by UMBS typically are hired as Assistant Professors and placed on a tenure track. From the moment they arrive on campus, an eight-year "tenure clock" is running.
The usual pattern for a new hire is for there to be a series of contracts: the first contract for three years, the second for two years, and the third for three years. By the end of eight years, when the clock expires, either the professor has decided not to pursue tenure, or the school has decided to offer or not to offer tenure to the professor.
It is increasingly difficult for a candidate to receive tenure on his or her first "clock," but some achieve it. Often, a candidate will begin the process at one university but finish it on a new clock at another university. A person may be hired at any point in the process, including at the tenure-review stage, in which case the "external" candidate would undergo the same process as an "internal" candidate. (An external candidate is one from another university who is being considered by UMBS for hire into a tenured position.)
At the end of each contract the professor receives a review. He or she is reviewed in Year 2 for contract renewal at the end of Year 3; in Year 4 for renewal at the end of Year 5; and in Year 7 for a tenured professorship at the end of Year 8. Thus, a 1-year grace period is built into the process such that a professor does not have to leave the school immediately if denied a contract renewal or tenure at any of these three junctures. He or she is welcome to stay at UMBS for another year to make the transition to another university more manageable.
Decision Criteria and Potential Outcomes
UMBS has a Faculty Development Policy, the most recent version of which was approved by faculty ballot on June 4, 1997. The process and criteria for contract renewal, promotions, and tenure decisions are outlined in the development policy. In broad terms, the policy states the following:
Our faculty's research and teaching are expected to have an impact on business practice in the broadest possible terms, including the shaping of business scholarship and how business is conceived, and to set the standards for business education. Establishing oneself as a capable and recognized scholar and teacher in a relatively short period of time is challenging. New faculty must learn to teach effectively in an environment with high teaching standards and with students who are preparing themselves to be business leaders. New faculty also must, in less than eight years, make significant contributions to their disciplines, primarily in refereed journals. Their scholarly records must be significant for leading scholars in their fields to attest to the quality and promise of their work and to recommend them for tenure at the School.
In addition to excellence in research and teaching, the other criteria for appointments, promotion, and tenure are professionalism, good citizenship, and compliance with University policies. The candidate may terminate any of the review processes for contract renewal and promotion by stating in writing that he or she does not want to proceed with a review. There are three possible outcomes of the first review for an untenured faculty member: (1) Extension through year five (a two-year extension); (2) extension through appointment year four (a one-year extension); or (3) termination after appointment year three.
A two-year extension is granted when "the individual has the potential to reach high levels of research and teaching achievement."
At the time of the second review, which takes place in Year 4, candidates are eligible for promotion to Associate Professor without tenure. Candidates must elect to proceed with the review for this promotion.
There are four possible outcomes at this juncture: (1) Promotion to Associate Professor without tenure and an appointment extension through Year 8; (2) an appointment extension through year eight without a promotion; (3) an appointment extension for less than three years. Further reviews are conducted with possible renewal or termination depending on performance; or (4) termination of the tenure track appointment after Year 5.
At the time of the second review research and teaching performance are evaluated by the senior faculty in the individual's field, the Executive Committee, the Deans, and for promotion to Associate Professor, external reviewers and the Central Administration of U-M.
The Executive Committee
The Executive Committee of UMBS, which is composed of five senior faculty members, plays a central role in the tenure process. Senior faculty members are elected to two-year terms on the Committee. Elections to the committee are staggered so that there is continuity from year to year. Each member of the committee is from a different field of study; not all fields of study are represented at any one time.
Current members of the Executive Committee are: Thomas Schriber (Computer and Information Systems), Will Mitchell (Corporate Strategy and International Business), Michael Johnson (Marketing), Joel Slemrod (Business Economics), and M.P. Narayanan (Finance).
Dean Snyder pointed out that members of the Executive Committee add great value to UMBS because they're not just serving their respective departments. "They're serving the overall mission of the school," he remarked.
Promotion to Associate Professor without tenure is an indication that the individual has established a strong record in both teaching and research and that he or she has a reasonable chance of achieving tenure. Appointment extension without promotion indicates that though "productive," the individual will not receive tenure by the end of the clock without an improvement in the quality and/or quantity of research output and/or teaching achievement.
Tenure review comes in Year 7 of a professor's appointment, unless the candidate decides not to proceed with the process. The possible outcomes of tenure review are: (1) Tenure is recommended; or (2) the tenure track appointment will be terminated at the end of Year 8.
To Recommend or Not To Recommend?
The faculty development Policy states, "The recommendation to grant tenure requires excellent performance in either research or teaching with very good performance in the other as well as promise for continuing improvement in research and teaching."
While "excellent" and "very good" criteria involve judgment, the review process is stringent and full of checks and balances. Dean Snyder termed these "feedback loops." Three separate groups review candidates for tenure: the senior faculty of the candidate's functional area, the Deans and Executive Committee, and a group of external reviewers. A group of about 12 external reviewers in the candidate's functional area receive a binder containing the candidate's significant research and articles. These external reviewers, who are affiliated with universities other than Michigan, return to the school a letter of recommendation based on the contents of the binder. UMBS, though, is not obliged to pursue an external review if it is decided that the school will not recommend tenure.
If the Executive Committee decides to recommend a candidate for tenure, that decision is passed along to UMBS Dean B. Joseph White. Dean White does not have to accept the committee's recommendation. According to Dean Snyder, "It is Dean White's practice to accept the Executive Committee's recommendations." Dean White reserves the right not to accept the committee's recommendations.
Dean White said that he bases tenure decisions on the presumption of honoring the Committee's recommendations for two reasons. First, "It results in the Committee members taking their work very seriously, so that they know that their recommendations are most likely final."
Second, he feels that it would usually be doing the faculty member in question a disservice to override an Executive Committee recommendation. Citing the collegiality of an academic community, he mentioned that it's vital for a tenured faculty member to have the full support of his or her peers, especially because tenure decisions are lifelong decisions.
After Dean White has made his decision, recommendations for tenure go to the Provost and the President of U-M, and then to the Regents for final approval. While it is rare for the Provost not to accept a recommendation for tenure, it does happen occasionally. A few years agao, a candidate from the Law School was denied tenure at this stage. This has not happened with a B-school candidate during Dean White's tenure.
UMBS 1997 Tenure Decisions
During the most recent tenure decision-making period, six internal candidates went up for tenure. One elected not to start the process, and only one candidate (Francine LaFontaine, of the Business Economics department) received tenure.
Alleging racial discrimination, one of the professors who did not receive tenure (Ojelanki K. Ngwenyama) has since filed suit against UMBS.
To be sure, any decision involving the denial of tenure holds deep ramifications for the candidate, the school, and its students alike. The case of Stuart Hart (referred to in the lead accompanying article) illustrates this point well.
Hart's case was especially unusual because he was not on the standard tenure clock at the time of his most recent candidacy. In fact, Hart had been denied tenure over three years ago on his original UMBS clock. Nevertheless, he elected to stay at U-M as an adjunct faculty member. (As a result of that tenure decision, Hart could not have remained as an Assistant Professor. Technically, his title and status had to change.)
This allowed Hart to continue to build on the success of the Corporate Environmental Management Program (CEMP), an innovative joint-degree program between UMBS and the School of Natural Resources & Environment.
But when the University of North Carolina offered to hire Hart into a tenured position, the Executive Committee considered Hart's case again. The outcome was the same.
Dean Snyder, in a discussion about the tenure process last week said, "The fact that there were programmatic implications that could adversely affect students--especially those who came here specifically for CEMP--was taken into account [in this case] very seriously. These are tough decisions that sometimes have negative consequences. We recognize the adverse effects on students. But these are potentially lifetime decisions. We cannot make them based on one or two years."
The path to tenure is difficult. It is a challenging process for the candidate who, from the day he or she is hired, is on a clock, and who must prove his or her worth both in the classroom and in the academic community. It is a challenging process for the school as well. The school, faced with myriad considerations to make in each case, must balance budgetary considerations with the projected value of the candidate to the school years down the line. The university, unlike any other institution, is faced with making a one-way lifetime employment commitment, several times every year.
"[Tenure] is a one-way marriage," said Dean Snyder. And though he characterized it as a "well-defined process," he also acknowledged that "judgments and mistakes are made."
On Sunday, November 16, one of China's most famous dissidents, Wei Jingsheng, was released on medical parole after spending nearly 18 years in prison. Arrested during the Democracy Wall movement in 1979, Wei flew to the United States for medical treatment.
Carefully timed after the Sino-U.S. summit, the release of Wei signaled progress between the two national leaders. "Wei's release demonstrated that Jiang Zemin [President of China] is responsive to the requests of the Clinton Administration," stated Professor Kenneth Lieberthal, China specialist and Professor of Political Science at the University of Michigan. "The United States and China are at a point where they are responsive to the high priority needs of the other."
The release of Wei Jingsheng was highly symbolic. Although the actual release of the dissident may seem a token concession, it still indicates the maturing of a cooperative relationship between the United States and China. This type of interaction between the United States and China has not been evident in years past. Now, the national leaders have a relationship where they can openly express vital interests. It will become increasingly important as American business interests in China grow in the coming years.
In essence, China helped alleviate the mounting pressure on the Clinton Administration to advocate human rights in China. The White House will have proven its effectiveness to communicate its agenda to the Chinese. This will hopefully lead to greater compromise and effective communication on other substantive issues in the future, such as the environment, energy, and international trade.
The release of Wei Jingsheng primarily served foreign relations and publicity purposes. The dissident's release was featured on the front page of the American press, including The New York Times. However, the event received no mention in the Chinese media. The story was also removed from all foreign press who served the Chinese market. Indeed, the political message was specifically aimed at the United States.
Thus, one must understand the realistic impact of the release of Wei Jingsheng. Although human rights in China do not match those in the United States, the Chinese have at least demonstrated sensitivity to high priority concerns. Hopefully, this will become one stepping stone to the improvement of relations and the furthering of dialogue between these two countries.
China definitely desires to enhance its image in the eyes of the American public and to break away from the Tiananmen mindset formed in 1989. Instead, China hopes to build a much more positive image, one that features a developing economy with hard-working people. China sees the Sino-U.S. relationship as a major factor to its future prosperity, for continued trade and investment from the United States will further China's continued economic development and improvement in the quality of life of its people.
Two Thursdays ago, Professor
Kenneth Lieberthal gave his views on the opportunities and challenges to
China's economic future. The country's foreign trade has risen dramatically
during the last decade of reform. "Both exports and imports have sustained
an increase of 17% per year since 1979. No other country in the world can
make that claim," Lieberthal stated. Sino-U.S. trade will amount to $40
billion this year, and the increase in American imports will be greater
to China than to any other nation.
Chinese economic growth has experienced an increase of gross domestic product in real terms of almost 10% during the Reform Era. No other major economy has sustained such rapid growth in recent history. Foreign direct investment has risen dramatically, from $1.4 million in 1984 to $33.7 billion in 1994. This is attributable to having a large available labor force and a high domestic savings rate. Since 1978 to the present, the regulatory environment has been steadily improving the means to conduct business, and inflation has been kept under control.
However, one must note some caveats when observing the vibrant growth in China. For example, one must consider how the Chinese count foreign direct investment. Lieberthal explained, "Much of the foreign direct investment into China comes from China. That is to say that much of the capital comes from Hong Kong, which is now part of China, and Taiwan, which is claimed to be part of China. It is the equivalent of considering capital invested by someone from California into Hawaii as foreign direct investment." Moreover, some of funds come from Mainland Chinese who set up dummy companies in Hong Kong to "round trip" the capital back into China to take advantage of foreign investment incentives and tax breaks.
China desperately needs investment into its infrastructure projects. For example in the energy sector, there is enough electrical capacity to power only 76% of the Chinese industrial base. In other words, approximately a quarter of Chinese industry at any time must be shut down for lack of power. In addition, China has recently embarked on a five-year national road construction project which will be the equivalent of the Eisenhower interstate highway plan.
Unfortunately, the Chinese have been relatively unsuccessful in attracting capital for long-term projects, such as power plants which require a payback period of 25-30 years. Government corruption and the current legal structure still create foreign perception that China many to be too risky an environment for investment in the long haul.
During its economic development, the Chinese have been extremely capable at absorbing hard technologies, such as physics, chemistry, and engineering. However, they have been poor at learning soft technology--the management skills needed to operate dynamic enterprise. As a result, many foreign firms staff the Chinese offices with a high number of expatriates. Learning these soft skills will be crucial for China to compete internationally in the future.
Although China has demonstrated a remarkable record in the foreign trade arena, one may find problems when one looks more closely at the content of its exports. Many companies use China as an export platform. If one were to exclude exporters of primary products, foreign-owned firms, Sino-foreign joint ventures, and firms that produce for a single buyer, one would be left with indigenous Chinese-owned manufacturing firms. "I would bet that you could not name 10 firms in that category that are internationally competitive," challenged Lieberthal.
Having no efficient means to allocate capital is another challenge facing China. Many investment decisions are driven by political motivations, not economic ones. As a result, resource allocation is very inefficient. As a result, the banking system in China is essentially bankrupt from the bad debt issued from politically motivated investment decisions.
The environment also needs significant improvement. Water availability and quality illustrate this point. In the United States, water availability is 9,400 cubic meters per person; in China, it is less than 1/10th the value at 750 cubic meters per person. The water table has fallen by one meter per year since 1960, and 300 of China's 600 major cities are water short. "The cities are literally sinking," indicated Lieberthal. As a result, the urban infrastructure, such as water piping, is quickly deteriorating. Moreover, the water is so polluted that 22% of all river water is unusable for agriculture.
Instituting state-owned enterprise reform will be one of the major challenges facing China in the future. The sector as a whole as been doing poorly. Last year, the sector operated at a net loss. The 15th Congress of the Chinese Communist Party held this fall made public the government's intention to allow shareholding of the state-owned enterprises. It will allow individuals, institutions, government, and foreigners to own part of the company. In most countries, this would be considered privatizing. However, in China, Communist ideology does not allow for the usage of word "privatization"; it uses "public ownership" to imply socialist virtue. Lieberthal quipped, "Given this definition, the U.S. would be considered the largest socialist economy in the world."
The external trade and capital situation is continuously changing. In the last six weeks, the assumptions built into economic prognosis for China have altered. The devaluation of currency in Southeast Asia by 30-35% will make products from that area much more competitive to Chinese goods produced in the collective and private sectors. Margins for these Chinese firms will be squeezed.
In addition, the recent crash of the Hong Kong stock market will cause greater uncertainty in furthering China's economic reform. The Chinese government had counted on the Hong Kong exchange to raise the necessary capital for state-owned enterprise reform. After suffering asset losses of 20% on the market, Hong Kong investors may not be as willing to risk large amounts of capital on Mainland firms. Several initial public offers have already been deferred to reflect the Hong Kong crisis.
Accession to the World Trade Organization remains a centerpiece of Chinese economic objectives. It was not attained during this year's summit, but it will certainly be a key issue during President Clinton's visit to Beijing next year.
In moving forward, China must engage in large scale restructuring of the economy. It will result in redeployment of state-owned assets and urban unemployment as firms shed excess labor. On a positive note, China should experience substantial job growth in the collective and private sectors. They should continue to attract a lot of capital, especially from abroad.
Substantial job growth and investment opportunities will arise as China continues to open to the outside world. This is a good sign for business school students, especially for those entering the areas of investment banking, consulting, and accounting. In addition, the Chinese will need expertise in marketing and distribution channel development. They have also expressed interest in obtaining agricultural, environmental, and energy-saving technologies, large-scale engineering skills, and higher-end consumer goods.
During the last two decades of reform, China has recorded great accomplishments in its ability to institute economic growth. The Chinese have proven time after time their ability to muddle through the difficult issues and still achieve greater prosperity for the country and for its people.
"Congress, Summit, and Business in China" was the third in the Trends Shaping Asian Business lecture series by the Asian Business Association. On January 22, the series will continue, by co-sponsoring Dr. Amnuay Viravan, Former Finance and Deputy Prime Minister of Thailand for the Eighth Annual Asian Business Conference.
 |
Real Popular: Editor, writer, and television personality Kevin Powell autographs copies of his new book, Keepin' It Real. Over 500 persons attended Powell's speaker event at the Michigan Union earlier this month.Photo by Shafali Dua |
Powell has gathered much acclaim with his new book, Keepin' It Real. Mr. Powell is considered by some as the leading African- American journalistic voice for Generation X. Five hundred people gathered in the Union Ballroom waiting to hear Kevin speak. Students started arriving at 6:40 p.m. in anticipation of good seats and a thought-provoking lecture. Throughout his lecture, Powell discussed how people do not know their basic history such as the case of Plessey v. Ferguson, which established that the state must provide separate but equal accomodations in education for blacks and whites. Kevin encouraged students to read books such as Malcom X and to think and be critical of ideas.
Powell's lecture was sponsored by the Viewpoint Lectures Committee of University Activities Center (UAC). UAC was established by the Regents of the University in 1965 and is currently the largest student run organization on campus. UAC holds 16 different committees that provide an array of events such as: Macbeth, Adam Sandler, Lawrence of Arabia, The Wiz, Michigras, and Michigan Pops Orchestra.
Bringing a Speaker to Campus
Viewpoint Lectures co-chairs Sarah Lockyer and Shafali Dua spent ample time arranging the Powell event for students and the community at the University of Michigan. As co-chairs of the committee, they receive numerous brochures and calls from booking agencies requesting them to choose a speaker from their agency. Before they decide on a speaker, many decisions are to be made--the most important of which is: What are students looking for? The purpose of each committee in University Activities Center is to provide programs that interest students. The next concern is the speaker's availability for a given day. The next step is to find a room or auditorium that will hold the number of people expected to attend.
Once the speaker is confirmed, the rest of the work is publicity and finding co-sponsors. Co-sponsors can provide financial and promotion support. Viewpoint is grateful for the support they received from Little Caesars Pizza, the Michigan League, and the Michigan Union Programming Board. Publicity was about 70% of the work in bringing Powell to U-M, while 20% entailed finding co-sponsors, and 10% involved scheduling the speaker.
The venues for advertising included press releases to newspapers, one Michigan Daily ad, the event listed on the UAC calender of events, and, most important, the fliers and balloons. Lockyer and Dua printed 1000 fliers with Kevin's face on them and the other important information about the event. Late at night, each of them would "flier" the campus. The most fun they had was with the balloons. They ordered 500 black and white balloons with the name and date of the event printed on them. Lockyer and Dua, along with the help of their co-workers and friends, spread these balloons everyehere! It was a blast, especially the helium aspect of the activity!
Stay tuned for next term's speaker(s)--a surprise! For more information on any UAC event, please contact the office at 763-1107, located at 4002 Michigan Union.