I see, I did not realise that you were spesifically speaking of certain countries operations without profit demands and that creating lack of quality standards to follow. Reading the previous sentence about US I was thinking you were generalizing to overall non-profit companies and organizations in global scene.

ps. Interesting find on profit margins (or government control of people access to internet?), I found a blog entry on the Net from 2004 where it mentioned China Telecom in Shanghai had 200 RMB 4Mbit internet back then, where as now the price is same for … 2 Mbit. Curbing people access to fast internet or what is happening…http://home.wangjianshuo.com/archives/20040604_broadband_internet_providers_in_shanghai.htm

First, China is not the Red Cross, EU health care or public services in other Western countries. These entities specifically exist because they have a desire or mission or responsibility to serve and they all get audited by 3rd parties. They are not only “moral” just because they have good hearts. They too are constrained by outside forces at some level to be good.

Second, there are very few responsible 3rd parties in China. Yes there are regulatory agencies, but enforcement is very very weak at best. Chinese people themselves prefer foreign products (for face, safety and quality). Private companies who can’t make money cut corners to save money. SOE’s that don’t have to meet profit standards and are not strictly regulated for safety do NOT invest extra time/money/effort into getting things right. How many times have you head the “Chinese model” of health care brought up in the recent debate about good public models the US should follow?” Never. Have you ever heard of any “great quality for the price” products being put out by SOE’s in China or communist Russia or NK or Vietnam? There is a reason for that. They don’t exist.

Third, no individual incentive. There is no concept of “pride in your work.” The individual “ownership” of quality does not exist here–why should it? Line workers are a dime a dozen and are treated as such. They have incentive to do as little as possible, not as much. 90%+ of the Chinese labor force does not have a performance bonus tied to any of their work.

And in SOE”s they often do things wrong on purpose so they can employ more people for longer periods of time per project! So there is no motive for these folks to “do their best.”

My only grievance:

“(And, when you don’t have to meet profit goals there is no reason to meet quality standards either.) ”

Would like to know where you pull this from, as this is quite odd quip in the middle of post which otherwise sounds very “believable”. There is no connection per se between profit goal and quality standard. That is like saying state railways around the world suck and don’t need to meet any quality standards, or state medical care that exists in most of Europe, and is on par with for profit hospitals. There is every reason for companies and service organizations to provide quality services although they do not have profit goals. It is like saying Greenpeace and Red Cross have lousy service because they have no profit goals and hence no reason to provide and meet quality standards.

http://blogs.telegraph.co.uk/news/peterfoster/100008084/100-per-cent-boss-managing-expectations-in-china-and-india/

Thanks for your post, I find it interesting and intelligent. It is certainly another perspective.

What you say makes sense. Judiciary systems are expensive and are only affordable by wealthy societies. They do serve to deter many people from corruption although we all know that unfortunately they do not deter all. Judeo Christian influences do not change societies on their own as evidenced by the Philippines and even Italy really, which has the Vatican in its midst but I suppose that is another story (the Vatican that is). I suppose we can thank the judiciary for saving us from the day to day rip off behaviour of many of our unscrupulous citizens who make out that they are business people here in Australia. Politicians and public servants are still a little difficult to catch and cage.

Your post has given me hope. I can see that China will move towards the establishment of a reasonable effective rule of law in time as we all have in the developed world.

I agree with your point about having enough wealth to maintain a decent labour right movement. We in Australia were always fortunate to have strong unions who made it possible for people to get a fair go in Australia.

I find it amusing that the current economic crisis came at a time when unions in the west have had their power curtailed by liberal governments (and a strong economy also) and the inestimable damage to the economies of the world has been caused by the pin stripe suited swanky bankers, who are actually those who would demonise unions as the scourge of mankind. Who in fact is the scourge of humanity?

Other than that thanks for your post Felipe. I am happier in the knowledge that all is not lost and that the developing nations will get there (not that we are any shining example) and China will be easier to travel around in.

I look forward to other posts you may make as your experience and therefore your ability to compare and contrast should provide you with valuable insights.

The variety of different jobs, managers, disappointments and achievements with work has made me understand what people expect. It is something that just can’t be read about in a books