Monday, February 23, 2009

Change Catalyst: Business or Government?

"A powerful business leader has far more opportunity to influence the course of a community or a nation than does any government official."

Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.

Who has more opportunity to influence the course of a community or a nation? Is it a business leader or is it a government official? I feel government officials have more opportunity to bring about change. Although it is true that business leaders are the wheels that carry an economy forward, it is also true that the government officials provide the road and the fuel for these wheels to run.

Changes at a macro level cannot occur easily without the will and support of the rulers of a country and the officials that implement those changes. No matter how good a business person is, he or she cannot overcome an unsupportive government hell-bent on destroying business. Neither can he be that effective in a country where there are no strict regulations, no protection for intellectual property and institutionalized corruption at every level. 

This can be easily seen in today's world. Singapore has an army of very efficient government officers backed by a pro-active Government. This has helped the country remain prosperous and business friendly despite its small size and lack of natural resources. On the other hand a resource-rich county like Iran finds it difficult to distribute prosperity to people due to inefficiency of the government officials and the rulers. In China it would be far easier for a Government officer to affect a change than an business leader. 

Historically, great changes can be traced to wise leaders who lead government officials. If Abraham Lincoln helped USA to survive civil war and Margaret Thatcher helped UK to open up its economy, it was no achieved single-handedly. The greatest changes have come from leaders and their retinue of officials, not from business leaders. Business leaders can be credited with incremental improvements in the people's lives, industrial innovations and wealth creation. The driving force for change, however, has always been the government and its officials. 

One may argue about the inefficiency and bureaucracy characteristic to the governments round the globe. Nevertheless, if the Government officials don't work in a country; the chances that any change will work are less. Conversely, if they work, the changes can be all-encompassing and powerful. With a power to implement changes that affect many lives and the backed by the huge resources of the Government, a Government official can be a much more powerful instrument of change than most business leader can ever hope to be. At the end of the day, the chief concern of a business leader is to create value for share-holders and not oversee changes in society. It is a simple separation of concerns.

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