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John Micklethwait - The Fourth Revolution: The Global Race to Reinvent the State

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John Micklethwait The Fourth Revolution: The Global Race to Reinvent the State

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From the bestselling authors of The Right Nation, a visionary argument that our current crisis in government is nothing less than the fourth radical transition in the history of the nation-state
Dysfunctional government: Its become a clich, and most of us are resigned to the fact that nothing is ever going to change. As John Micklethwait and Adrian Wooldridge show us, that is a seriously limited view of things. In fact, there have been three great revolutions in government in the history of the modern world. The West has led these revolutions, but now we are in the midst of a fourth revolution, and it is Western government that is in danger of being left behind.
Now, things really are different. The Wests debt load is unsustainable. The developing world has harvested the low-hanging fruits. Industrialization has transformed all the peasant economies it had left to transform, and the toxic side effects of rapid developing world growth are adding to the bill. From Washington to Detroit, from Brasilia to New Delhi, there is a dual crisis of political legitimacy and political effectiveness.
The Fourth Revolution crystallizes the scope of the crisis and points forward to our future. The authors enjoy extraordinary access to influential figures and forces the world over, and the book is a global tour of the innovators in how power is to be wielded. The age of big government is over; the age of smart government has begun. Many of the ideas the authors discuss seem outlandish now, but the center of gravity is moving quickly.
This tour drives home a powerful argument: that countries success depends overwhelmingly on their ability to reinvent the state. And that much of the Westand particularly the United Statesis failing badly in its task. China is making rapid progress with government reform at the same time as America is falling badly behind. Washington is gridlocked, and America is in danger of squandering its huge advantages from its powerful economy because of failing government. And flailing democracies like India look enviously at Chinas state-of-the-art airports and expanding universities.
The race to get government right is not just a race of efficiency. It is a race to see which political values will triumph in the twenty-first centurythe liberal values of democracy and liberty or the authoritarian values of command and control. The stakes could not be higher.

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ALSO BY JOHN MICKLETHWAIT AND ADRIAN WOOLDRIDGE God Is Back The Right Nation - photo 1

ALSO BY
JOHN MICKLETHWAIT
AND ADRIAN WOOLDRIDGE

God Is Back

The Right Nation

The Company

A Future Perfect

The Witch Doctors

The Fourth Revolution The Global Race to Reinvent the State - image 2

THE PENGUIN PRESS

Published by the Penguin Group

Penguin Group (USA) LLC

375 Hudson Street

New York, New York 10014

The Fourth Revolution The Global Race to Reinvent the State - image 3

USA Canada UK Ireland Australia New Zealand India South Africa China

penguin.com

A Penguin Random House Company

First published by The Penguin Press, a member of Penguin Group (USA) LLC, 2014

Copyright 2014 by John Micklethwait and Adrian Wooldridge

Penguin supports copyright. Copyright fuels creativity, encourages diverse voices, promotes free speech, and creates a vibrant culture. Thank you for buying an authorized edition of this book and for complying with copyright laws by not reproducing, scanning, or distributing any part of it in any form without permission. You are supporting writers and allowing Penguin to continue to publish books for every reader.

ISBN 978-1-101-60662-9

While the author has made every effort to provide accurate telephone numbers, Internet addresses, and other contact information at the time of publication, neither the publisher nor the author assumes any responsibility for errors, or for changes that occur after publication. Further, publisher does not have any control over and does not assume any responsibility for author or third-party Web sites or their content.

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CONTENTS
INTRODUCTION

B URIED IN A S HANGHAI SUBURB , close to the citys smoggy Inner Ring Road, the China Executive Leadership Academy in Pudong appears to have a military purpose. There is razor wire on the fences around the huge compound and guards at the gate. But drive into the campus from the curiously named Future Expectations Street and you enter Harvard, as redesigned by Dr. No. In the middle stands a huge bright red building in the shape of a desk, with an equally monumental scarlet inkwell beside it. Around this, spread across some forty-two hectares, are lakes and trees, libraries, tennis courts, a sports center (with a gym, a swimming pool, and table-tennis tables), and a series of low brown dormitory buildings, all designed to look like open books. CELAP calls all this a campus but the organization is too disciplined, hierarchical, and businesslike to be a university. The locals are closer to the mark when they call it a cadre training school: This is an organization bent on world domination.

The students at the leadership academy are Chinas future rulers. The egalitarian-looking sleeping quarters mask a strict pecking order, with suites for the more senior visitors from Beijing. And as with other attempts at global supremacy, there is an element of revenge. Thirteen hundred years ago, CELAPs staff remind you, China set up an imperial exam system to find the best young people to become civil servants. For centuries these mandarins ran the worlds most advanced government, but in the nineteenth century the British and the French (and eventually the Americans) stole their systemand improved it. Since then better government has been one of the Wests great advantages. Now the Chinese want that advantage back.

When the leadership academy was established in 2005, President Hu Jintao spelled out its purpose: To build China into a modern and prosperous society in an all-round way and to develop socialism with Chinese characteristics, it is urgent for us to launch large-scale training programs to significantly improve the quality of our leaders. Rather than focus on indoctrination like the party schools, CELAP and its two smaller sisters in Jinggangshan (CELAJ) and Yanan (CELAY) have been designed to be practical places. The talk is of leveraging your skills, strengthening your global mind-set, and improving your presentation abilities. It is all meant to complement what goes on in the party schools. But the fact that CELAP is based in Shanghai while the central party school is in Beijing adds a competitive frisson. When one trainee in Pudong explains that the party school focuses on why, while CELAP looks at how, there is no mistaking which question he thinks is more important to Chinas future. If CELAP had a motto, it might be Alexander Popes couplet, For forms of government let fools contest/Whater is best administerd is best.

Driven by the desire to best administer, about ten thousand people a year attend courses at the school, nine hundred for the first time. Some arrive ex officio: If you are a bureaucrat who has just been put in charge of a state-owned company, a governor who has been given a province to run, or an ambassador en route to a new posting, you are sent to Pudong for a refresher course. (As a thank-you, the ambassadors are supposed to send the library a book to symbolize their new posting. The man who sent The Rough Guide to Nepal has some explaining to do.) More generally, a course at the leadership academy has become a prize to be pocketed by any ambitious bureaucrat. Every Chinese civil servant is expected to have clocked three months of training every five years, or about 133 hours a year. Courses at CELAP are oversubscribed by a factor of three, with most of the candidates drawn from the ranks of deputy director generals, the fourth-highest rung in the Chinese system.

The two most common questions, says one teacher, are What works best? and Can it be applied here? A typical course is divided into three parts, with lectures soon giving way first to fieldwork, with the mandarins sent out to study something that could be useful, and then to discussion about how to apply it. The subjects vary from the relatively small, such as the most convenient way to demolish houses for infrastructure projects, to the monumental, such as designing the most equitable pension system. The appetite for ideas is rapacious: ideas from local businesses (there are two hundred field-study centers in the Yangtze River delta, including a mini CELAP campus in Kunshan city); ideas from various national universities; ideas from Western management thinkers.

When the Chinese modernized their economy, they turned to the West for inspiration, and the leadership academy still sends people to Silicon Valley to look at innovation. Government is a different story. There is talk of CELAP being Chinas Kennedy School, and Joseph Nye, the former dean of Harvards Kennedy School of Government, has given a talk there. But there are also hints that Harvard is a little too theoretical for what China needs now. Historical examples are not what is called for, let alone historical examples that celebrate the virtues of democracy or soft power. CELAP is about delivering efficient government in the here and now, about providing cheap health care and disciplined schools. And from that point of view there are better places to look than gridlocked Americamost notably Singapore.

The city-state may be tiny, but it has delivered most of the things that the Chinese want from governmentworld-class schools, efficient hospitals, law and order, industrial planningwith a public sector that is proportionately half the size of Americas. For the Chinese, it is the Silicon Valley of government. Even the idea at the heart of CELAPtraining an elite civil-service cadreis based on a Singaporean model, though the Chinese boast that their requirements are more onerous. So it is not surprising that the leadership academy proudly features pictures of its senior figures attending meetings in Singapore and of Singapores creator, Lee Kuan Yew, visiting the campus.

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