Tag Archives: spiral dynamics

When China Sneezes, the Global Economy Goes to the Hospital


This is a story about China’s centrally planned Too-Big-To-Fail economy and the impact that has on our future

When I was in business school, there used to be a saying that pointed to the strength of the US economy that went something like this: When the US sneezes the world catches a cold. A lot has changed since and China has become the driver of much of what happens in the global economy today. This is all due to a very odd mix of a centrally planned economy (what we in Spiral Dynamic call the Blue-Absolutistic value system of governance) with a mix of strategic and highly manipulative objectives to take over the world (Orange in Spiral Dynamics), while using Red/Purple values and tactics (oppression and tribal manipulation) to employ slave labor and engage in other subversive practices. This rare form of governance has allowed China to bully the third world and control its resources and undermine intellectual copyrights and global trade covenants. It has condoned the abuse of human rights at home while enriching the few elite members of the Communist Party of China (the CCP). The Western world has overlooked all this as it continues to feed its insatiable appetite for endless consumption and focusing on cheap production costs while increasing the profit margins of big Western corporations on the back of cheap Chinese labor.

In order for any true free-market economy to succeed, Blue central planning must remain a transitory phase that builds the physical economic infrastructure (highways and ports as well as robust institutions) then it must be relegated to maintenance and support as Blue responsibilities become those of a government responding to Orange innovation and its effective regulation. This is not the case with China, as it continued building cities that have remained empty for years through its absolutistic Blue leadership. Click on this link to an interview I gave to Newsweek Magazine a while ago which warns against China’s sudden transition from Blue to Orange.

Blue/Red men in Orange suits

Well, like any other closed Blue system of governance run by closed system ideologues, China remains unaccepting of ideas on how to give up control without having to instate major reforms that threaten the very existence of its brave experiment. Cracks in the system are beginning to show as the transitory Blue economic policies have been exhausted beyond their useful function. These are signs of the deeper tectonic plates the plague the Chinese economy. The canary in the coalmine is its real estate sector with 100’s of development companies teetering on the edge of collapse as they owe 100s of Billions to Chinese banks. The first hint of the forthcoming collapse of this sector recently came from property development giant Evergrande, warning that it might not be able to meet its debt payments to its lenders. The news sent shockwaves through global financial markets as analysts began to speculate as to what this could mean. Evergrande in the largest real estate development firm in the world and holds a world record of $300 Billion in debt; a sum that is larger than most counties’ annual sovereign debt. As the Chinese Communist Party tries to grapple with these upcoming existential economic crises, there could only be one of two outcomes:

  1. Stop the blind drive-at-any-cost to become #1 and transition to a free market economy. This will necessitate the long-awaited upward movement in governance and values to an entirely different set of metrics, which will bring the long awaited, market-driven price discoveryto a $16 Trillion a year economy that will now be based on market forces of supply and demand not the will of a few people in the National People’s Congress claiming to know what’s best for their people and the world while becoming Billionaires and rarely if ever being transparent.
  2. Continue with the Blue-centrally planned economy that blindly seeks becoming #1 while hiding much of the corruption and abuse that remains hidden from the eyes of the world.

If I were a betting man, I’ll put my money on the latter. This will likely be the path that the CCP will take while seeking to increase its geopoltical influence through its repressive Red-Blue policies. Change will not likely come anytime soon to China since it holds the biggest Ace in the hole that the West has chosen to ignore. Part of it’s hidden wealth is in a 200-year reserve of resources and raw material that it has accumulated from around the world over the last few decades. While the West was preoccupied with outsourcing everything, falsely believing that China shared their advanced Orange capitalist values such as improving stockholders’ bottom line, the endless pursuit of lean manufacturing and the inexhaustible obsession with the global supply chain, China was focusing on how to exploit this Western naiveté for its long-term strategic advantage.

Once the West wakes up to China’s drive to create a global resource monopoly, they will be forced to reassess their ill-thought preception of global trade and begin to focus on resources as a national security matter. This is the new geopolitical divide the awaits the world: China and resource-rich third world counties on one side, the West and its allies on the other. In my work, I call this the New Global Axis of Values: Red/Blue v Orange/Green. Click here for a full explanation of what these values stand for. My long-term bet is on the West since it has long been established in the values of the Orange system which has the mandate to uncover the secrets of the universe through scientific discoveries, quantitative analysis and research and development.

We in the West must reinvent ourselves as the undisputed global leaders in research and development in energy and in new sustainable, carbon-neutral resources , especially when the alternative is China’s carbon-heavy pile of natural resources that will surely continue to destabalize life on our planet.

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What Can Evolution and Spiral Dynamics Tell us About the Coronavirus?

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Let’s not bash the integral community

To my colleagues in the Spiral Dynamics community, please, let’s not be too critical of our friends in the integral community.  WE ARE different members of the same tribe. It is only a difference in philosophical opinion on which quadrants/triads are more important than others. A few days ago, I posted a link to the upcoming online Integral conference with a  comment that was intended as a joke to accentuate our philosophical differences, but apparently it was taken as a criticism by some.

It is the SD community, not the the Integral community that lags behind on moving its own work forward.  Bence Ganti and Dennis Wittrock, the organizers of the European Integral Conference, were very gracious to invite Don, Elza, and me to be keynote speakers at the 2016 Integral European Conference. We were grateful for the opportunity. It was also at that conference that we celebrated the 20th Anniversary of the launch of the original Spiral Dynamics book. A 20th Anniversary event for the book never materialized in the SD community due to many reasons, but primary because of too many diverging egos wanting to claim ownership of the SD legacy.

Our own community’s division has also been our Achilles heel in moving our work forward. But this doesn’t absolve the Integral community from all responsibilities.  At the core of our continued differences remains the fact that the Integral community still has a  marginal understanding of Graves/SD. They approach SD as an opportunity to expand on how Wilber sees it, and are disappointed when they see that our work stands alone as its own whole systems approach and chose not to unlearn the Wilberian version of it. This is what’s at the heart of the division. Wilber pacified our important stuff, accentuate the stuff that makes his stuff look good and intentionally made our stuff an increasingly smaller part of his evolving theory that explains everything while we stood back defesnelessly and allowed it to happen.

There’s no dispute that one of the most successful systems application of Integral theory is reflected in the highly successful work of Frederic Laloux. Other than Wilber’s books, Laloux’s  book Reinventing Organizations is the most successful in integral literature that has penetrated organizational culture at deep levels. But what would you say if I told you that Laloux based his book on Spiral Dynamics, not Integral. The man is a consultant who understood systems not a monk or a therapist. It was due to Don’s insistence that he be named as co-author that Laloux chose to change the colors and approached Wilber to write the Foreword. Wilber, desperate for someone who understood systems, welcomed Laloux with open arms. Strangely, Wilber’s foreword reads a lot like the foreword that Don wrote for my book. Just change colors and add quadrants.

This is an example of the power of how the Spiral with the added elements of the Quadrants  can expand the use of both models into the mainstream, while respecting both as independent frameworks. There has to be more people who fully understand verticality and systems  the way Laloux does in the Integral camp, and more people in the SD camp who can understand the complementary aspects of Integral and reinterpret them through SD, not allow Integral to swallow SD whole.

But, sadly, our division comes from the very top. In my opinion, there is very little inclination within the integral community to understand the systems and Large Scale applications of our work. We also shy away from their fuzzy circling stuff with arms raised to salute something or someone, or nothing or everything, etc… These are differences that need to be tolerated and even respected instead of criticized in order to develop tolerance and respect for both models separately.

While the Integral community is organized, we are everything but. We are a greatly divided community as demonstrated by the wide division and the huge ego flexing at the 2018 Spiral Dynamics Summit. I set up that conference to be a unifying event, and to formulate a legacy plan moving forward. Instead it turned out to be the point of entropy to the SD Constellation in its current form.

In order for SD to become the legacy it deserves, there needs to be a rebirth that sees its long term use by world leaders to solve world problems, and augmented by new academic rigor. It won’t survive just in the world of consulting and training. There has to be a long-term deliberate plan that requires serious commitments  by people who are detached from their egos. I believe there needs to be a return to academic rigor that needs to be housed at a globally respected US institution for higher learning that will become the global clearing house for everything Graves/SD.

This will be a homecoming for the three American academics, Graves, Beck and Cowan, met by American academic exceptionalism not some watered-down version from some obscure places injecting the framework with local colloquialisms and calling it science. Without that, we have little credibility moving forward.

 

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