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“Leonardo silva. Nreviewer ruy lopes pereira. Thank you very much it s a difficult act act to follow nsomeone such as diogo costa. But i will do my best.
I to address the question nof creative destruction in a somewhat different context. There s a lot of data. Nthat s been presented. I ll talk about that very briefly.
But i want to look at it nin. The context of globalization. Just another controversial issue. Many people start nthe discussion by assuming that the term.
I don t think that s good social science. We should start with a neutral meaning nand then investigate in the world. Whether something is having na positive or a negative impact. So one common approach nto understanding globalization that does not tell you nif.
It s a good or a bad thing is to refer to the diminution nor elimination of state. Enforced. Restrictions non exchange across political borders. So between for instance.
Nbrazil and argentina or the united states and canada or japan and kenya. And then the increasingly integrated nand complex global system of exchange commerce and production nthat has emerged as a result so this doesn t tell us if it s na good thing or if it s a bad thing. But it is a trend that we can nidentify in the world. It s not a new thing people have been talking nabout globalization for a very long time.
The philosopher ndemocritus of abdera. Told us. And for the native land nof. A good soul is the entire earth now we can ask and rather than presenting you with data.
I m going to suggest nyou can find out on your own you can go to the global internet for the first time nin. The history of humanity. We have an entirely globalized ninformation system and here are some of the things nyou could check through google or other search engines international trade in goods nas. A percentage of economic output has it been rising or falling hint rising quite dramatically international trade in services.
That s an interesting one nbecause for most of human history services could not be traded ninternationally you could not have your hair cut nin a different country for example or get a massage on a different continent. But now services increasingly can be ntraded across international borders. We can look at cross border investment. That is to say investors in one country who own assets or businesses nin.
Other countries international tourist arrivals. That s one that is rarely talked about nin the economic context. But you d find an incredibly nsteep upward curve in the amount of people ntraveling around the world when i was young nyou never saw a chinese tourist unless they were from taiwan or hong kong. Now people from the mainland can be seen nas tourists.
All around the world. A huge increase in international travel and then finally ninternational telephone calls more people connecting with friends nneighbors families all around the planet. I was just at a conference like this nin kenya in nairobi and one of the speakers asked something. He said and the majority of their hands went up nof east african students.
He said you have friends in canada and korea. Nand south africa and germany that has never happened before it s an enormous change in the world and we can go and measure. It now i want to put it nin a cultural context. Though not so much about economic data nand.
How this is raising living standards. But often we hear it said nthat. This is harmful to culture. I want to tell a little story nabout guatemalan women and the clothes that they wear nthe traditional huipil and cort huipil is a kind of a shirt nfor.
The top part of her body and the cort is a skirt which she wraps naround herself and folds over i had a tremendous nopportunity in guatemala. I was teaching at the nfrancisco marroqu n. University and one of the professors. There nis.
An anthropologist he made a great offer and he said n i m going to go visit. My family nin the mayan highlands he s an indigenous person and he s mayan. He said and i am really glad. I said yes because i saw a part of the country ni never would have seen otherwise.
I got to see a different way nof understanding that complicated country. It s told. Me as we were driving nhe takes. Many foreigners because he s an anthropologist.
So he has visitors from universities nin france england america and elsewhere who want to go and he speaks the mayan languages nas well as spanish and english and he said. Which is the mayan women nare wearing their cort s. And huipils less often than they used to they say now not so many they concluded that the guatemalan women nwere being robbed of their culture that they were victims of globalization. But what was interesting.
He said. Not once had he ever heard a foreigner nask a guatemalan woman a question. The simple question that seems a little strange nand maybe rude. But increasingly the indigenous women nare wearing clothes for everyday purpose like the women you would see nin brazilian cities and they reserve their cort nfor special occasions weddings for going to church nfor special family occasions.
He however is a scientist nand. He speaks. The local language. So he asked them and he said they say this has become too expensive.
These are too expensive now they re handmade nmade generally by women. It s traditionally nconsidered and they take a long time to make they re very elaborate works of art. What does it mean for her to say nthese have become too expensive well. What does it means you have to give up nmore to get it well.
It s labors. What she has nto give up to get what in economic terms. What it means is nfor the first time in their history. The value of the labor nof.
An indigenous woman is rising that s what it means the value of her labor is rising. So she could make a cort for herself nand wear it every day working in the field doing her work or she could make it nand sell it to a lady in france. They re very expensive and with the money. She earns nshe could by five or six outfits.
Like brazilian women wear and have enough money nalso to buy eyeglasses. So she can see at a distance and to buy shoes and school books. Nfor her daughter. So she can go to school nand.
Learn to read and write so she can buy medicine nagainst dengue fever. Which they don t have nin france and america. Where they complain about these things. So.
The question is was her life made worse off by the opportunity to trade with people nin france in the united states in germany and elsewhere. She now can buy more with her labor and she reserves. The cort nfor. Going to church not for everyday work.
And the other question is from whose perspective. Nhas her life been made better or worse from the perspective nof. The foreign tourist. It s worse you don t see colorful nnative people as often but maybe from her perspective nit s an improvement.
I personally have heard nsaid by foreigners in guatemala complaints when they see indigenous people ntake out mobile telephones. They re supposed to have n laughter. They didn t like it. But they didn t think nfrom.
The perspective of that indigenous person. What does it mean nto have a mobile telephone. It means you can call your parents nand talk to them you don t learn two weeks later. Nthat your mother got sick.
And you didn t have time to visit her you get a phone call from your dad. Nsaying is that a positive thing nfor your life or not from the perspective of that person now if we want to look at it. What s happening in the world nis. This process of creative destruction from an economic perspective.
Joseph schumpeter. Is one of the most nimportant economists of the last century he was really a great genius and these are some of the most intelligent nwords ever written in economics. It s about a dynamic perspective nnot. A static perspective is how capitalism nadministers existing structures.
Whereas. The relevant problem nis. How it creates and destroys them a constant process nof creative destruction. It s happening in the economy.
It s also happening in the context nof cultural life artistic life as well if you want to visualize. It nlet s think first about technology here s something that is disappearing phone boxes. There are a few outside here but they re disappearing nfrom brazilian cities you cannot find them anymore. Nin north america or western europe or japan.
The first time. I noticed i was at a hotel ni frequently go to for conference. Someone who worked at the hotel. Said it took me a moment nthere were no telephones on it why everyone has a telephone now they have it in their pocket nso.
Why should they invest in these so here we have what s replaced it my first mobile telephone nwas. The one on the end it was like talking into a giant shoe laughter it was huge and very very expensive na gigantic device. I had to have this put ninto a special briefcase now they ve become so tiny nyou can put it in your ear. This has transformed the world well here s another one nsome of you may not have ever used these.
When i first started writing ni wrote with a pen on paper and then i would type them nwith one of these i had an underwood. 5. Many people don t know nhow to use these anymore. A good friend of mine.
Told me his son nwhen. He was five came to him and said he said he said laughter he didn t understand nhe went and looked these are now found mainly in museums. I ll show you a big improvement nin. My personal life my first ibm correcting selectric tool.
It could correct your mistakes you had to type backwards nand. It would take the type off the page you have no idea. What an improvement nthis was for people who type a lot and talk about sexy nyou could change the type font. The kind of letters you used you bought these expensive little.
Things you had to take it out nand put in the other one and snap. It shut and then type with it so that s how we got by nbut now. I have a macbook pro. And this is better than my typewriter now remember something was destroyed.
There are no more typewriter factories in every town. There were ntypewriter repair shops they re all gone. I haven t seen na typewriter repair shop in years when i was a boy. I thought i wanted nto become a typewriter repairman.
I thought i m glad i didn t choose that career path laughter. I can do things with this ni couldn t do with my typewriter like watch movies. If i talked to my typewriter npeople thought i was crazy i talk to my computer. All the time and it talks back with someone nwho s in another country now we can look at another example when i was a boy i watched star trek nwith my father on television.
The first star trek and they had these amazing devices ncalled you opened it and you could ntalk to one person. That s it and that s all it could do ntalk to one person. I thought in the distant future nsomeone will have those laughter well. I ve got one and it s a lot better than they had nin these science fiction movies flying between the stars i can watch movies i can play music npay my bills convert currencies i read the newspapers on it i can do all kinds of things nyou could not do on a star trek communicator.
It s not just products nthat are being replaced. It s also ways of doing business imagine 20 years ago nhaving a discussion of online banking live streaming media your grandparents nwouldn t have understood that hub and spoke airlines nwhich have revolutionized travel poor people can afford to fly nbecause of this tremendous innovation and also firms. Firms are also destroyed nand created on a constant basis. Standard poors nmeasures.
The largest firms by how many of those nthat were in the top 100 in 1960 were still on it in 2012. Ten. Only ten and 25 of the top 100 nhad joined in just the last few years. So firms are coming and going going out of business being destroyed nand being created to replace the others.
Now a lot of people focus non. The destructive part of creative destruction nbut. How destructive is it is it destructive on balance ni. Don t think so some value is destroyed nbut.
It s not pure destruction because you get something else nthat adds. More value that s why it replaced. It my computer is more valuable nthan. A big typewriter it can do a lot more and it cost less nthan.
I paid for my old typewriter and i ll conclude what makes possible nvalue added creative destruction and we have a pretty ngood idea. What that is it s entrepreneurial freedom. Now what does entrepreneurial nfreedom mean. Though something rather special.
It s liberty for the unknown person not for any known person per se nbut for weird people strange people who are called in english. The boys who created the computer industry were strange socially nbadly adjusted kids they could not get any nof. The girls to date them because they were obsessed with radios ncomputers and working in their garage. This has changed.
They all found that the girls nwere more interested in dating them after they became billionaires laughter. Friedrich hayek put it very neatly. But rather what freedom nsome person may need in order to do things nbeneficial to society. And this freedom.
We can assure nto. The unknown person only by giving it to everyone now that is in an economic context. But it has a deep root in your society. As joaquim nabuco put it very neatly nin his book on abolitionism.
He says when you love the freedom of other people nyou ll live in a great society. Thank you ” ..
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