The End of Power (50 page)

39
. Georgina Adam, “Energy—and Ambition to Match,”
Financial Times
, March 10, 2012.

40
. Global Security Forum, “Changing Patterns in the Use of the Veto in The Security Council,” June 2012,
http://www.globalpolicy.org/images/pdfs/Tables_and_Charts/Changing_Patterns_in_the_Use_of_the_Veto_as_of_March_16_2012.pdf
.

41
. “Copenhagen Summit Ends in Blood, Sweat and Recrimination,”
The Telegraph
, December 20, 2009.

42
. Joshua Chaffin and Pilita Clark, “Poland Vetoes EU's Emissions Plan,”
Financial Times
, March 10–11, 2012.

43
. Elmer Plischke, “American Ambassadors—An Obsolete Species? Some Alternatives to Traditional Diplomatic Representation,”
World Affairs
147, no. 1 (Summer 1984): 2–23.

44
. Josef Korbel, “The Decline of Diplomacy: Have Traditional Methods Proved Unworkable in the Modern Era?
Worldview
, April 1962.

45
. Moisés Naím, “Democracy's Dangerous Impostors,”
Washington Post
, April 21, 2007; Naím, “What Is a GONGO?”
Foreign Policy
, April 18, 2007.

46
. Another example concerns Transdniestria; see “Disinformation,”
Economist
, August 3, 2006.

47
. Cited by Naím, “Democracy's Dangerous Impostors.”

48
. On ALBA, see Joel Hirst, “The Bolivarian Alliance of the Americas,”
Council on Foreign Relations
, December 2010.

49
. Joe Leahy and James Lamont, “BRICS to Debate Creation of Common Bank,”
Financial Times
, March 2012.

50
. On minilateralism, see Moisés Naím, “Minilateralism: The Magic Number to Get Real International Action,”
Foreign Policy
, July–August 2009. For Stephen Walt's response, see “On Minilateralism,”
Foreignpolicy.com
, Tuesday, June 23, 2009,
http://walt.foreignpolicy.com/posts/2009/06/23/on_minilateralism
.

1
. Interview with Paolo Scaroni, Barcelona, June 2010.

2
. Data for bank concentration are quoted from
Bloomberg
's Financial Database (retrieved August 2012).

3
. Jeremy Kahn, “Virgin Banker,”
Bloomberg Markets
, May 2012.

4
. James Mackintosh, “Top 10 Hedge Funds Eclipse Banks with Profits of 28bn for Clients,”
Financial Times
, March 2, 2011.

5
. Mark Gongloff, “Jamie Dimon Complains More, As JPMorgan Chase Losses Eclipse $30 Billion,” The Huffington Post, May 21, 2012.

6
. Bob Moon, “Kodak Files for Bankruptcy,”
Marketplace
(NPR), January 19, 2012,
http://www.marketplace.org/topics/business/kodak-files-bankruptcy
; Lilla Zuil, “AIG's Title as World's Largest Insurer Gone Forever,”
Insurance Journal
, April 29, 2009.

7
. Carola Frydman and Raven E. Sacks, “Executive Compensation: A New View from a Long-Term Perspective, 1936–2005,” FEDS Working Paper No. 2007–35, July 6, 2007.

8
. John Challenger's comments were reported by Gary Strauss and Laura Petrecca in “CEOs Stumble over Ethics Violations, Mismanagement,”
USA TODAY
, May 15, 2012, and the percentage of CEOs ousted before retirement is from a Conference Board survey cited by David Weidner in “Why Your CEO Could Be in Trouble,”
Wall Street Journal
, September 15, 2011.

9
. Nat Stoddard, “Expect Heavy CEO Turnover Very Soon,”
Forbes
, December 16, 2009.

10
. Per-Ola Karlsson and Gary L. Neilson, “CEO Succession 2011: The New CEO's First Year,” Booz and Company special report in
Strategy+Business
, No. 67 (Summer 2012); see also Booz, Allen, and Hamilton, “CEO Succession 2005: The Crest of the Wave,”
Strategy+Business
, No. 43 (Summer 2005).

11
. Robert Samuelson, “The Fears Under Our Prosperity,”
Washington Post
, February 16, 2006, citing the work of Diego Comin and Thomas Philippon, “The Rise in Firm-Level Volatility: Causes and Consequences,”
NBER Macroeconomics Annual
20 (2005): 167–201 (published by University of Chicago Press),
http://www.jstor.org/stable/3585419
.

12
. “The World's Biggest Companies,”
Forbes
, April 18, 2012,
http://www.forbes.com/sites/scottdecarlo/2012/04/18/the-worlds-biggest-companies/
, and
http://www.forbes.com/global2000/
.

13
. Lynn,
Cornered: The New Monopoly Capitalism and the Economics of Destruction;
Lynn and Longman, “Who Broke America's Jobs Machine?”

14
. Ghemawat,
World 3.0: Global Prosperity and How to Achieve It
, p. 91.

15
. Peter Wells, “Whatever Happened to Industrial Concentration?,”
AutomotiveWorld.com
, April 19, 2010; John Kay, “Survival of the Fittest, Not the Fattest,”
Financial Times
, March 27, 2003; John Kay, “Where Size Is Not Everything,”
Financial Times
, March 3, 1999.

16
. John Lippert, Alan Ohnsman, and Rose Kim, “How Hyundai Scares the Competition,”
Bloomberg Markets
, April 2012, p. 28.

17
. Ghemawat,
World 3.0: Global Prosperity and How to Achieve It
, p. 95.

18
. “Brand Rehab,”
Economist
, April 8, 2010; Oxford Metrica,
Reputation Review
, 2010,
www.oxfordmetrica.com/
.

19
. Luisa Kroll, “Forbes World's Billionaires 2012,”
Forbes
, March 7, 2012,
http://www.forbes.com/sites/luisakroll/2012/03/07/forbes-worlds-billionaires-2012/
.

20
. Ibid.

21
. Rajeshni Naidu-Ghelani, “Chinese Billionaires Lost a Third of Wealth in Past Year, Study Shows,”
CNBC.com
, September 17, 2012,
http://www.cnbc.com/id/49057268/Chinese_Billionaires_Lost_a_Third_of_Wealth_in_Past_Year_Study_Shows
.

22
. Coase, “The Nature of the Firm.”

23
. This is a straightforward index but it does not capture, for instance, whether there are major differences in market share within this subset—that is, whether one or two firms are especially dominant. The Herfindahl-Hirschman Index, named after the economists Orris C. Herfindahl and Albert O. Hirschman, partially remedies this measurement flaw by giving extra weight to the biggest players. The US Department of Justice, for instance, uses this index to help determine whether antitrust action is warranted in a given field. For further discussion of this issue, see Hirschman, “The Paternity of an Index.”

24
. Scott L. Baier and Jeffrey H. Bergstrand, “The Growth of World Trade: Tariffs, Transport Costs, and Income Similarity,”
Journal of International Economics
53, no. 1 (February 2001): 1–27.

25
. Economic and Social Commission for Asia and the Pacific
Monograph Series on Managing Globalization: Regional Shipping and Port Development Strategies
(Container Traffic Forecast), 2011.

26
. David Goldman, “Microsoft's $6 Billion Whoopsie,” CNNMoney, July 12, 2012,
http://money.cnn.com/2012/07/02/technology/microsoft-aquantive/index.htm
.

27
. Thom and Greif, “Intangible Assets in the Valuation Process: A Small Business Acquisition Study”; Galbreath, “Twenty-First Century Management Rules: The Management of Relationships as Intangible Assets.”

28
. Interview with Lorenzo Zambrano, Monterrey, Mexico, 2011.

29
. See The Gap Inc. and Inditex annual reports from 2007 to 2011.

30
. Data obtained from Zara's corporate website:
http://www.inditex.com/en/who_we_are/timeline
.

31
. “Zara: Taking the Lead in Fast-Fashion,”
Businessweek
, April 4, 2006.

32
. “Retail: Zara Bridges Gap to Become World's Biggest Fashion Retailer,”
Guardian
, August 11, 2008.

33
. John Helyar and Mehul Srivastava, “Outsourcing: A Passage Out of India,”
Bloomberg Businessweek
, March 19–25, 2012, pp. 36–37.

34
. Ben Sills, Natalie Obiko Pearson, and Stefan Nicola, “Power to the People,”
Bloomberg Markets
, May 2012, p. 51.

35
. Koeppel,
Banana: The Fate of the Fruit That Changed the World;
see also the company's website (
http://chiquita.com/Our-Company/The-Chiquita-Story.aspx
) as well as the Chiquita Brands entry at the Funding Universe website (
http://www.fundinguniverse.com/company-histories/Chiquita-Brands-International-Inc-Company-History.html
).

36
. Interbrand, “Brand Valuation: The Financial Value of Brands,”
Brand Papers
,
http://www.brandchannel.com/papers_review.asp?sp_id=357
; see also John Gapper, “Companies Feel Benefit of Intangibles,”
Financial Times
, April 23, 2007.

37
. Interbrand, “Best Global Brands 2011,”
Brand Papers
,
http://www.inter brand.com/en/best-global-brands/best-global-brands-2008/best-global-brands-2011.aspx
.

38
. Saxenian, “Venture Capital in the ‘Periphery': The New Argonauts, Global Search and Local Institution Building”; Saxenian, “The Age of the Agile”; Saxenian, “The International Mobility of Entrepreneurs and Regional Upgrading in India and China.

39
. John Maraganore, quoted in Glen Harris, “Bio-Europe 2007: As Big Pharma Model Falters, Biotech Rides to the Rescue,”
Bioworld Today
, November 13, 2007.

40
. Kerry A. Dolan, “The Drug Research War,”
Forbes
, May 28, 2004; “Big Pharma Isn't Dead, But Long Live Small Pharma,”
Pharmaceutical Executive Europe
, July 8, 2009; Patricia M. Danzon, “Economics of the Pharmaceutical Industry,”
NBER Reporter
, Fall 2006.

41
. Quinn Norton, “The Rise of Backyard Biotech,”
The Atlantic
, June 2011, p. 32.

42
. Henry W. Chesbrough, “The Era of Open Innovation,”
MIT Sloan Management Review
, April 15, 2003.

43
. Michael Stanko et al., “Outsourcing Innovation,”
MIT Sloan Management Review
, November 30, 2009; James Brian Quinn, “Outsourcing Innovation: The New Engine of Growth,”
MIT Sloan Management Review
, July 15, 2000.

44
. “Outsourcing Innovation,”
Businessweek
, March 21, 2005.

45
. “Outsourcing Drug Discovery Market Experiencing Continued Growth, Says New Report,”
M2 Presswire
, July 4, 2008.

46
. Christensen,
The Innovator's Dilemma: When New Technologies Cause Great Firms to Fail
, p. xi.

47
. Ibid., p. 233.

48
. These data are quoted from “Data on Trade and Import Barriers” at
www.worldbank.org
.

49
. The World Bank, “Doing Business 2011”; see also
www.doingbusiness.org
.

50
. Priyanka Akhouri, “Mexico's Cinepolis Targets 40 Screens in India This Year,”
Financial Express
(India), January 1, 2010.

51
. Interview with Alejandro Ramirez, Cartagena, Colombia, January 2012.

52
. World Bank Group, “‘South-South' FDI and Political Risk Insurance: Challenges and Opportunities,”
MIGA Perspectives
, January 2008.

53
. According to
UNCTAD: World Investment Report 2012:
“Flows to developed countries increased by 21 per cent, to $748 billion. In developing countries FDI increased by 11 per cent, reaching a record $684 billion. FDI in the transition economies increased by 25 per cent to $92 billion. Developing and transition economies respectively accounted for 45 per cent and 6 per cent of global FDI. UNCTAD's projections show these countries maintaining their high levels of investment over the next three years” (p. xi).

54
. Aykut and Goldstein, “Developing Country Multinationals: South-South Investment Comes of Age”; “South-South Investment,”
www.unctad.org
; Peter Gammeltoft, “Emerging Multinationals: Outward FDI from the BRICS Countries,”
International Journal of Technology and Globalization
4, no. 1 (2008): 5–22.

55
. Interview with Antoine van Agtmael, Washington, DC, May 2012.

56
. “Mexico's CEMEX to Take Over Rinker,” Associated Press, June 8, 2007.

57
. Clifford Kraus, “Latin American Companies Make Big US Gains,”
New York Times
, May 2, 2007; Frank Ahrens and Simone Baribeau, “Bud's Belgian Buyout,”
Washington Post
, July 15, 2008; Peter Marsh, “Mittal Fatigue,”
Financial Times
, October 30, 2008.