An interesting article appears this week in the Wall Street Journal, co-authored by a friend of mine, Curtis Chin. The article points to a flaw in how the world measures “progress”. We seem to be impressed with skyscrapers, large infrastructure projects, and event-related building (such as the Olympics). Upon closer inspection, much of this is window-dressing, as actual improvements in standards of living associated with these projects are miniscule, if not even more glaringly deficient when juxtaposed against gleaming steel and shiny marble of impressive buildings.
Although the WSJ article centers on the geographies of China and Asia, the argument can be made for any developing country in the world. Moreover, I believe the same problem exists in developed countries such as the United States. We have prided ourselves for two generations on becoming a world leader since WWII. It is true that our highways and bridges need to now be rebuilt. The source of our energy, be it petrochemical, wind or solar, is the topic of debate in government buildings and boardrooms around the country. So what is the role of leadership in creating a foundation for “progress” if the world is to truly shorten the gap between the wealthiest and poorest people on the planet?
I contend that the solution is not in hardware, but software. My friend’s article speaks to the importance of smaller infrastructure projects rather than large ones that actually improve the quality of life for the average citizen. Irrigation systems and utilities, albeit not as visibly impressive, go much farther than skyscrapers, stadiums and airports. I go one step further. I believe that investment made in skills and capabilities of the most vulnerable is what the world needs, and what few large institutions or governments these days are willing to address. It’s much easier to approve billion-dollar plants than overhaul an education system, much easier to compete for an Olympics venue than provide training for competent medical staff. But unless we’re willing to deal with the difficult topic of “how” people can improve their lives, we’re kidding ourselves.
There seem to be a number of things that get in the way of making true progress toward lifting lives. Here are just a few:
- Corporate objectives. Measuring the ROI on improving an education system is not something Wall Street knows or really cares about how to measure. Financial models have a much easier time predicting how concrete buildings depreciate than they do measuring human capacity underutilization.
- Bureaucracy. Government agencies are generally more successful at slowing things down than speeding things up. And the majority of government departments focus on software rather than hardware (education, health, social programs).
- Government incentives. Special economic zones in developing countries reward infrastructure projects. Building schools and improving health care skills is rarely encouraged.
- Lack of accountability. No one gets fired if kids aren’t educated or babies aren’t fed. If an infrastructure project is a failure, people lose their jobs.
- Lack of significant impact. “Software” projects get relegated to not-for-profit and well-meaning individuals, who are limited by scale. With the exception of The Gates Foundation, these efforts often have limited impact and are difficult to sustain.
The solution lies in inspired leadership:
- We need to elect politicians who want to work more than they want to campaign. They need to examine the ineffectiveness of government agencies that regulate progress away, and do away with them. Instead, we need to create expectations for school districts and educators that truly measure how much is learned rather than how well kids test.
- We need more corporate leaders who are setting robust targets in business strategies. Boards of directors need to challenge business strategies that only target short-term results, and hold leaders accountable for creating true sustainability.
- We need to have more conversations with our kids about the things that really matter in life. As parents, we need to balance the important that today’s culture places on artificial measures of success with conversations about human capacity. Exposing our kids to a larger world will only increase the likelihood that they can make a difference in the next generation.
Let us not be deceived into thinking that building a new skyscraper constitutes "progress". It's really about how people can get into those buildings and make a difference in the world that truly matters!
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