The Competitive Impact of Values
How Values Influence the Competitiveness of Nations

Introduction
In considering the "Competitive Impact of Values" it is important to note that values in a society are not fixed but move over time.  This can be tracked over history from the times of the Romans and Greeks to the present day. 

In recent history the last 100 years has seen marked changes in values, particularly in the developed economies.  

Values Systems and Competitiveness
In the modern hi-tech world there are marked differences between the developed and developing countries.  An example of values systems in action clearly shows the change in values in Europe from 1900 to the present time.  At the same time the developed world has moved from Collective to Individual Values.

Collective Values include Hard Work (Blue), Wealth Creation (Orange) and moving on to Social Participation (Green).   The next step is Self Achievement (Yellow) which is seen as at another level (2nd Tier) which also includes Turquoise.

As an example the World Competitiveness Report (WCR) in 1992 used the example that in the early 1900's Europe was at the Hard Work or Blue value system.  Following the Second World War and by 1950 Europe had moved to Wealth Creation (Orange values) and then in the 1960's and 70's moved on to Social Participation or Green values in many European countries.  The WCR saw the Self Achievement values (Yellow) being reached by some of the population in Europe and the USA by 1992.

It is important to note that the WCR made the point in the 1992 Report that:

"Competitiveness evolves with values. Western economies have left the collective set of values to enter the individual set of values.  It is impossible to go backwards - see attached graphic.

How to Profile the Global Values Mix
If the WCR is correct then Values should be seen as a key development issue when looking at global development.  However, in the majority of development studies, values are not included as in the past these have been difficult to quantify and measure.

In looking at the Graves Values technology as used by the GVN it is clear that this approach linked to information technology through the GVN database can provide the necessary data required for this purpose.  Based on this approach it is possible to sample a selected population whether this is an organisation, country or region and to map the selected area using the latest GPS technology.

The Present Global Values Mix
The present global values mix varies significantly from the post-modern economies such as Europe and North America to the developing economies including the ASEAN countries such as South Korea, Singapore and many of the previous Eastern European economies. There are also the underdeveloped states in both Africa and other similar regions of the globe.

The Post-Modern Developed Economies
The developed economies including Western Europe, North America and Japan carry a strong underpinning of Blue values which provides the expertise that allows the trains to run on time, the cities to operate efficiently and other infrastructural services to be readily available to the bulk of the population. 

These economies also have a strong wealth creation value ( Orange) which allows these countries to grow and prosper in an increasingly globalised economy.  At the same time there is a rising Green values system in the mix creating the demand for a better, cleaner environment, less pollution and other related issues.

An strong trend in these countries is the emergence of second tier Yellow values which look at integral solutions to both global and regional problems.  This values system produces integrated, cross functional management structures at all levels of the economy.

Some Examples of Changing Values
The UK over the Centuries
If one steps back to the 16th Century England was moving from the age of robber barons (red values) to the Age of Nationhood (Blue).  At this stage the process was slow and it took until the Industrial Revolution in the 19th Century before Orange values started to emerge in the wealthy upper class.   This was carried through to the mid-20th Century when a major change from Blue to Orange under Margaret Thatcher and the Conservative Party took place. 

It is however, important to note that there are still very strong blue elements in place in the UK.  This was particularly evident during the recent Jubilee celebrations in that country including all the pomp and ceremony around the celebrations, which showed very strong blue connections.  The UK is now closer to the values mix of the US (Orange/Green) than Europe which tends more towards the Orange/Green end of the spectrum.

The Developing Emerging Economies
These countries include countries such as South Korea, Malaysia, Mexico, Brazil and previously Eastern European countries such as Russia, Poland and other similar economies. The values mix in many of these countries varies from Red values, a developing and increasing Blue sector and a small amount of Green values.

The predominant value in these countries is Blue/Orange with a concentration on Hard Work and Wealth Creation.  Many of these countries are strict in how they control the civil liberties of their populations. A good example of this is China which has often been criticised for its poor human rights record.  In addition other issues such as the environment are often neglected, as they were in many of the developed economies at a similar stage in their development cycle.       

Russia currently exhibits many of the red/blue issues as well as orange.  Another high profile example is the Israeli / Palestinian problem where the Israeli state Blue/Orange is confronted by the Palestinian red/blue. This leads to the current state of violence as well as making it difficult to find solutions, particularly those suggested from outside. 

The Israeli people have a high Orange values component covering their economy and hi-tech industries. However, by comparison the Palestinians are generally to be found across the Red/Blue/Orange spectrum with the Blue/Orange being less strong in their case.  The clash of values is the blue on blue as well as the handling of the red type problems from both sides. 

Underdeveloped Economies
Many of the underdeveloped countries in Africa and elsewhere still have a predominance of the Tribal (Purple) and Red Power values. This often results in military coups or dictators who cling to power through intimidation and rigged elections.  Examples of countries in this group include Zimbabwe, the Democratic Republic of the Congo and the Sudan among others.

These countries do not yet possess a sufficiently high percentage of the blue values in their population mix.  This is the value which builds and maintains the infrastructure and also ensures transparent and accountable government.  Instead of Wealth Creation (Orange) being present one finds unbridled red values or raw power and greed being the values most visible in many of these countries.

However, the developed economies of the West are often not fully aware of how to manage values systems in the Purple/Red range which are often not present in significant percentages in their own societies. 

Some Practical Examples of How to Manage the Global Values Flux
If the world is to progress then it is critical that the global values mix be managed from a 2nd Tier perspective.  It is not necessary for there to be large percentages of these values to be present.  However, the global leadership cadre must be made aware of how to manage our global values mix in an integrative way.  Global leadership necessities in the 21st Century include a strong mix of 2nd Tier values (Yellow/Turquoise) in order to integrate the values present across the population in the most effective way.

Global Security & Terrorism
An example of 2nd Tier structures are where there is integration between the various organisations of state.  In looking at the available information on the security services in the United States before 9/11 it appears that both the CIA and FBI were not sharing strategic information.  In a true 2nd Tier  management structure all the services would be integrated under a single structure, similar to the example of the Allied military forces during the Gulf War.   This now appears to be the intention in terms of President George W. Bush and his latest announcement on this issue.  

The World Cup currently being held in Korea and Japan is a good example of shared security information from countries around the globe.  In addition both countries have taken precautions to avoid terrorist attacks on the stadiums during the games, including cover for 9/11 type attacks from the air. 

South Africa as a country is an example of a multi-cultural environment where virtually the full spectrum of values from Purple to Yellow are present to a greater or lesser degree.  Don Beck believes that South Africa is a replication of the globe in terms of not only the values present in the population but also rich and poor as well as the different races and religions present across the globe. 

In addition South Africa has in its new constitution predominantly Green values which cover a population ranging from the tribal (Purple), power (Red), order (Blue), enterprise (Orange) plus Green and limited 2nd Tier integral (Yellow). 

This is one of the reasons why crime in South Africa is not being dealt with from a firm but fair Law & Order  perspective (Blue) but rather from a more tolerant Green.   Unfortunately, this approach is seen a weakness from the power now (Red) values sector of the population, with the resultant on-going problem of violent crime. 

A similar comparison can be made for much of the current corruption present both within the public sector as well as in some private organisations.  Individuals who possess either Red or negative Orange value systems believe that they have a right to these benefits, to the detriment of the larger population that they are supposed to be there to serve.

Summary
This values mix requires national governments as well as global organisations such as the United Nations, World Bank, IMF and WTO to fully understand how to best manage the global values flux to maximum advantage. In addition the World Economic Forum as well as the EU and other regional structures need to look more closely at issues of values as most of their members come from the Orange values system.   

The stand now being taken many by international donor countries that development assistance must be accompanied by fully transparent, accountable governance structures is correct.  In the past the developed countries often handed out aid on the basis of a Green values system which did not always demand accountability from those receiving the assistance.  This then resulted in funding being used for purposes other than those for which it was originally intended. However, development assistance made available from a Yellow Integral position requires the appropriate level of accountability and reporting from the recipient.   

We would appreciate any inputs from our Partners on the above as well as other examples of "real world" situations.  It is intended that further information on managing these values differences will be made available as part of an ongoing process through the GVN Partner site including your inputs. 

Alan Tonkin
CEO: Global Values Network
7 June, 2002