The Tobin Tax

Posted by on Nov 8, 2011 in Blog | 46 comments

This WSJ editorial argues against the Tobin Tax on financial transactions,  based on the obvious fact that it falls apart unless all countries enact it (impossible).  It does little, however, to refute the overall desirability of reigning in pure speculative trading.  Proponents of the transaction tax argue that such a tax, by discouraging noise trading, will contribute to stock prices tracking fundamentals better.  They argue that this in turn leads to a more efficient capital allocation.  Interesting...

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IBM CEO Succession planning is impressive

Posted by on Oct 27, 2011 in Blog | 429 comments

IBM’s orderly CEO succession plan and corporate strategy stands in marked contrast to the succession planning and strategy at its rival, HP.  As my colleagues and I have written in a series of cases on the board process at HP, they have lurched from strategy to strategy and CEO to CEO (usually outsiders) with unimpressive results.  Contrast this with IBM, which has had a successful long-term strategy,  and has groomed a series of impressive executives from within.  Best wishes to Rometty as she takes over the reigns of IBM.  Below are links to some of the cases my colleagues and...

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Posted by on Oct 21, 2011 in Blog | 31 comments

The Economist has a recent article discussing how business groups are still the dominant form of business in India.  There are many reasons for this, with work done by me and Tarun Khanna on “institutional voids,” listed as one of the main drivers.  When we published this article in 1997, many people thought the need for vertically-integrated businesses in emerging markets would wane over time as institutional voids lessen.  This clearly shows that 14 years on, the institutional voids we identified still create the need for businesses to replicate many functions that are not...

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Check out my new blog at blogspot

Posted by on Oct 6, 2011 in Blog | 38 comments

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Health-care treatments developed in emerging markets can be low-cost and effective

Posted by on Sep 27, 2011 in Blog | 5 comments

Here’s an interesting example of how medical practitioners in emerging markets are developing innovative, effective, low-cost methods for detecting and treating cervical cancer with vinegar and carbon dioxide.  If this is proven to be as effective as our more expensive methods, this is an example of how high quality/low-cost innovations developed in emerging markets could help reduce health care costs in the U.S.

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