Dec 21

by Josef Garvi

Recently, somebody asked me for advice on how to improve the productivity of run-down cocoa plantations on the Gold Coast. My contact displayed a lot of good intentions, laudable and politically correct in our times: fair trade, biological farming, enhanced agricultural output. His concern was how to make sustainable cultivation systems that would solve a global supply problem and benefit the Africans in the process. The group he represented was foreseeing a sharp rise in cocoa demand on the world markets in the coming years. Yet if production levels did not follow suit, this would set off a price hike, making chocolate delicacies less accessible to common people in the rich world. Whilst the systems for upscaling production were at hand, the main problem faced by this group was how to build the necessary motivation amongst the people in Ghana.

This motivational concern highlights a question that is so easily taken for granted: is such a business ultimately in the best interest of the Ghanaian people themselves? Or is it simply projecting the wishes of a «developed» world looking for the necessary input to sustain its high-consumption lifestyle?

Ghana in 1977

Cocoa, like most widely exploited crops in sub-Saharan Africa, is not originally native. In the early 20th century, large cocoa plantations were set up on the Gold Coast by the British as a means to cash in on their colony, and an export crop it has remained ever since. As with most Third World exports, its price on world markets has been unstable, and its cultivation for a long time unprofitable. When Ghanaians grow such crops, be it biologically and under fairer trade agreements, they are subject to the whims of the world economy and forced to import that other, life-sustaining commodity: food, which price is volatile as well. They are not trading from a surplus, but using their best lands that could otherwise provide for the fundamental needs of their people. Thus they are ensuring that richer people throughout the world can buy a luxury at a decent price - not that their own children and brothers eat well.

Ever since the Portuguese fathomed the immensity of the riches of the Congo, and the Arabs set up their trading cities along Africa’s East coast, the outside world’s view of Africa can be summed up in a single, enthralling word: resources. Be it human beings, precious minerals or agricultural output, focus has been on what those outside can obtain from her.

Today, the world’s approach towards Africa may be less brutal, but the fact that a politer tone is being used has not erased its fundamental aim. It is still about what the world can obtain from the continent, not about what is best for the Africans themselves. In the eyes of the world, Africa’s primordial duty remains to supply the outside world with resources, instead of ensuring that her own children may enjoy the benefits of their birthright.

As Henning Melber put it: «The plundering continues».

Sep 18

by Miriam Garvi

The other day, I had a refreshing meeting with a senior executive of an international supplier of patient handling solutions.

Our conversation was not about market positions or impressive margins. Instead, this senior executive talked about the difference it makes when handling equipment is designed so as not only to simplify the work process of the caretaker, but also to improve the quality of life of the patient.

It was an uplifting conversation with a man with a passion for helpfulness.

Philosophical musings

Roughly 50 years ago, Harvard professor Doriot was teaching his manufacturing philosophy to future American senior executives. «… if you have these qualities and the determination to do well… then you will have the privilege of the greatest profession I know: converting plain material into useful, beautiful, helpful products. This takes some of the greatest qualities man possesses, but it also pays high returns in creative satisfaction.»

The senior executive I met was no Doriot alumni. Yet he knew that manufacturing a product was not the real challenge - it was imitable enough by any competitor who would put its mind to it. But it was the thinking behind their product line that made them unique, that which would keep them pushing to fulfill useful, beautiful, helpful qualities.

Such uniqueness comes from the inside.

Aug 21

by Miriam Garvi

For the inquisitive soul who seeks to understand what leads people to make fatal choices, Swedish writer and historian Bengt Liljegren’s recent biography comes as a most welcome surprise.

Wondering what another book might add to the by now extensive list of Hitler biographies, I needed to read no further than the prologue for my interest to be awakened:

«My interest was triggered during the summer holidays in 1974. I had just finished sixth grade and rode my bicycle down to Gleerup’s bookstore in Lund and invested … in Mark-Arnold Forster’s The World at War 1939-1945. The book made a deep impression on me. I was even more taken by the British television series The World at War… (…). Adolf Hitler obviously played a big role in the book and the series, yet he remained strangely diffuse, it was as if there were no real person behind the figure of terror who started WWII and murdered Jews. As a thirteen year old I was given the impression that Hitler was a monster - not a human being. (…) I hope to make Hitler more understandable, to generate a truer image of his personality and private life as the background for his evil deeds… It is about time Adolf Hitler is undemonized. Knowledge about him as a person is an effective vaccine against his sick ideology.» (Liljegren 2008, pp. 8-11; own translation).

Liljegren, B. (2008) Adolf Hitler. Historiska Media.

Bengt Liljegren (2008) Adolf Hitler, Historiska Media.

However comforting it may be to look back on people as monsters or idols, we need the human stories that make us reflect on the consequences of what may at first seem to be harmless actions and choices. The uncanny truth is that anyone can become a Hitler at heart, but not everyone is endowed with his kind of charisma and brilliance that will charm a nation.

Only by seeing people as the you and mes that we really are can we truly learn from history.

Apr 27

“The leader sees work as part of a larger mission - make a better society for all (institution builder).”

- Georges F. Doriot

(find book here)

Apr 20

Beach
“Profit is the metaphorical equivalent of the oxygen, food, and water that the body requires. They are not the point in life, but without them there is no life.”

- Mark Lipton

(find article here)

Mar 24

by Miriam Garvi

Here are some favourite anti-quotes (from the dissertation Venture Capital for the Future) taken from the world of venture capital:

«You can be brilliant and have bad products and still succeed.» (CEO of international VC fund).

«Ten years ago, I applied for a job advertised in the newspaper. There were 180 applicants. After four weeks had passed I called the guy at the recruitment agency in order to find out how things were going. He said «Sorry, it didn’t work out.» Why not? «Well, there were so many applications that I split the heap of papers and threw away half of them. I said: they’re unlucky! And who the %&¤& would want to hire somebody with bad luck?» The point is that when we screen who should manage our investment it’s like betting on who we believe will be lucky!» (investment manager).

My question: Is this venture capital or speculation capital? If so, what entrepreneur would like to offer his or her venture up for speculation?