BEE Partner, South Africa Economy Watch

Wing says that, since the time of Sun Tzu, the major conflict experienced throughout the world has remained the same, namely the struggle for ideological supremacy and the control of resources.’ In nation-states, and especially in the current global environment, _competition takes place for people, materials, technology and/or financial resources. A key principle in making one’s position unassailable is for the government of the day to view its nation as a complete and interdependable entity, and to take steps to ensure it survives as such. Sun Tzu said that it is not individually, but altogether, as a single and complete entity, that the people of the world face survival or extinction.’ This is particularly true at both the macro- and micro-levels of global participation. At macro-level, a nation that is deeply divided lies at a competitive disadvantage. At micro-level, this becomes more pertinent, given that companies are doing business within the shareholder value-driven model of capitalism, where the maximisation of shareholder value is paramount. An organisation in which everyone supports one another is in a stronger position to cope with this model than a company with divisions amongst its staff.

This line also applies to a nation-state (preferably within a democratic framework). The true sign of maturity on the part of a government and the people is that whatever the outcome of a democratic election, everyone works towards improving the welfare of the country and its people, both in the domestic as well as in the global context. Therefore, no one part of a nation-state can out- balance another, or the country as a whole will be at a disadvantage. It is through the creation of such a system and its various component parts that a developing nation can redefine the boundaries of Competition and hope to compete effectively in the world order.

The greatest dangers to an emerging economy are greed, ego and the abuse of political power on the part of the government. A nation cannot afford to have leaders who display these tendencie_s, as it clouds their judgement, for their focus is usually on thei_r own interests instead of on the welfare of the nation. Moreover, an emerging economy simply cannot afford to just fit in with the conventional wisdom of global competition. Nor can it afford to go against the flow. Like other nations of the world, it is expected to abide by certain institutional rules, such as those laid down by the World Trade Organisation or the Geneva Conventions.’ However, it needs to redefine competition, and even that has to go beyond the economic principle of comparative advantage — hence the reason for an interlocking and unified nation. The art of strategy is therefore about managing and overcoming such difficulties within the framework of a complete and interdependable populace, and not about the application of a political manifesto.

Another key principle in having a nation make its position unassailable pertains to the behaviour of the country’s leader.

This view is critical for applying strategy in the global context, whether it be a developing country or a business organisation in that country. In a nation-state, the general is, of course, the president, or his or her equivalent, such as a prime minister. Or it could be the entire government, for in a democracy such as South Africa it is the government that is tasked with running the country. For the government of a nation, particularly of a developing country, there are many leadership issues that need to be considered. Government ministers, including the president, have a moral obligation to lead the nation in a manner that will enable them not only to compete _effectively, but also to progress in the global rankings.

Being ‘complete at all points’ means creating an environment _of relative internal harmony. Internal harmony leads to greater productivity and the retention of the country’s most precious asset, its human capital. Only the country’s population can decide whether or not its government is ‘complete at all points’. Governments often have a tendency to forget that the citizens of a country are its customers, and that in order for them to remain in the country and contribute to its growth and development, it needs to satisfy the requirements of its citizens. A government that fails to do this is denying its country the opportunity to be a serious player in the global stakes. The behaviour and actions of a country’s citizens are the deciding factors in the competitiveness of a nation. The same holds true for a business organisation.

This is yet another key principle in how to make the country’s position unassailable. According to Sun Tzu, ‘The Moral Law causes the people to be in complete accord with their ruler, so that they will follow him regardless of their lives, undismayed by any danger.’ A democratic system does not necessarily follow this line of reasoning. A democratically elected government is completely missing the point if it thinks that, because it has been elected to office, it can pursue policies that favour only its own constituents.

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