Design Leadership and Management A Case Study in Singapore 1st Edition Garry Tan PDF Download
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Garry Tan
University of Western Australia, Australia and
Nanyang Polytechnic, Singapore
and
Anne Chapman
University of Western Australia, Australia
A C.I.P. record for this book is available from the Library of Congress.
Abbreviationsix
Chapter 4: Methodology 59
Introduction59
Conceptual Framework 59
Research Design 63
Methods of Data Collection and Analysis 68
v
TABLE OF CONTENTS
References181
Index191
vi
LIST OF FIGURES AND TABLES
FIGURES
TABLES
vii
ABBREVIATIONS
ix
CHAPTER 1
INTRODUCTION
1
CHAPTER 1
The overarching goal of the research was to develop theory on design leaders’
transition to design leadership and management positions in Singapore. To this
end, the qualitative study sought the experiences and perspectives of industrial
design leaders and produced rich descriptions of their transition to leadership and
management positions. Theory was generated in the form of theoretical propositions.
Based on the empirical and theoretical outcomes of the research, recommendations
are made later in this book for professional and educational practice, policy and
further research in design leadership to benefit the industrial design community in
Singapore. Importantly, this study provided design leaders a voice that “explains the
significance of a Design Singapore Initiative (DSI) under the rubric of the Creative
Industries” (Lee, 2004, p. 13).
The remainder of this chapter is presented in four main sections. The first section
provides a brief outline of the background and context of the study, highlighting the
significance of Singapore as a case for investigating design leadership in the creative
industries. The second section presents the rationale for the study. The third section
describes the key concepts and definitions employed in this research and book. The
fourth section provides an overview of the research method. The chapter concludes
with a structured overview of the chapters to follow.
2
OVERVIEW OF THE ISSUES
Creative Hub” (DSG, 2009, p. 17). The Design Singapore Initiative was launched
in 2003 as a key platform of the CIDS. The outcomes of this initiative are: For
Singapore to be a leading design hub in Asia; to evolve a distinctive design and
brand identity for Singapore products and services; for design excellence to be
a competitive advantage for local enterprises; and to create a pervasive design
culture to raise the general level of design awareness and discourse. The overall
objective is to create an awareness of effective design that integrates into all aspects
of business, leisure, recreation, public service, and education in Singapore (MTI,
2003). The present study was conducted over the duration of the Design Singapore
Initiative (2009 to 2015). These CIDS and Design Singapore Initiative, including
its phases of implementation are described in detail in Chapter 3 of this book. It is
worth noting that the Design Singapore Initiative, however, focused on new studio
leaders, studios with excellent practices, and the wide-spread adoption of design
thinking in Singapore companies instead of a focus on policies in design leadership
and management as a national strategy.
Within the above context, Singapore is significant as a geographical area for
research into the creative industries because of its status as an ‘intelligent’ city;
the world’s first digital economy. It is also one of the most Western-oriented,
economically successful and globalised cities in the world (Brown, 1998; Chong,
2006; Chua, 1998; Gopinathan, 2007; Holden & Hamblett, 2007; Lim, 1999;
Yue, 2006). Globalisation, Information Communication Technology (ICT), and
the nation’s ambitions to be a knowledge-based economy make human capital,
especially intellectual capital more critical to Singapore than physical capital (Low,
2002; MICA, 2003; MTI, 2002). Further, Singapore is special in the region because
it is the only country in Asia to harness the shift to the creative economy as a lasting
national cultural policy. Singapore is a distinctive choice for this study because of
its focus on human resources for survival, and its competitiveness is imperative as
compared with other Asian nations. Singapore’s greatest resource is the creative
abilities of its citizens (MTI, 2002, 2003); design plays a central role in developing
this resource.
3
CHAPTER 1
(Karp & Helgø, 2008). As such, design leaders require the continuous mandate to
lead their subordinates in initiating constantly evolving changes in an ever-changing
environment.
The aim of design leadership is to help organisations envision the future and to
ensure that design is used to turn those visions into reality (Nam & Jung, 2008).
In contrast, Design management’s focus is on the management and integration of
assets, activities, resources, and processes to foster creativity and originality to
create sensible solutions that achieve corporate objectives. In this light, the principal
source of poor design is poor design management. Poor design management only
becomes apparent when the lack of design knowledge and experience limits the
progress of a design project or the organisation (Topalian, 1984, 1990). Alan Topalian
suggested that for a more professional approach, it is necessary to bring the design
function into focus and explain the demands of efficient design management practice
(1984). However, there is little research dealing with the transition to leadership
and management positions within the general management knowledge domain. To
add, there is a dearth of research in the design knowledge domain, particularly in
the context of designers’ career trajectory and particularly in the context of design
leadership in Singapore.
In general, scholars have welcomed the age of design management (Walton,
2007), however, this appears to be centred mostly in Europe and the United States,
where design management practices are more established. In Asia, especially
Singapore, there is insufficient discussion on design management practices. This
book is an attempt to address these gaps by providing empirical evidence of the
phenomenon of transition to design leadership and management positions in a
Singapore setting and by using qualitative research to provide an in-depth analysis
of this phenomenon. The existing corpus of research in the transition to design
leadership and management position is severely limited. However, literature within
the generic design management domain has revealed five interconnected research
gaps that led to five themes that frame this research.
The first research gap identified by scholars highlights issues with the transition
to design leadership and management, especially problems experienced by design
managers at the middle level (Gorb, 1992). According to Gorb, the hardest task is to
educate newcomers to senior design management ranks, who through many years
of work, are conditioned by the attitudes of their immediate supervisors. He says:
…the task of education continues as newcomers join the senior management
ranks. At the bottom levels, among young people with fast-track careers such as
MBAs, there has been similar success, but the effort continues with every new
class. While these people will be working for many years, their effectiveness
is inevitably conditioned by the attitudes of their immediate bosses, the middle
managers. It is among this group of middle managers that the hardest task
remains. Successful managers find it difficult to accept that they need a new
expertise; less successful ones find it difficult to take new ideas on board.
4
OVERVIEW OF THE ISSUES
In-house programmes are perhaps the best way to educate these people, but
insufficient resources make it a slow process. (Gorb, 1992, p. 21)
This problem with middle level managers is also identified by Alan Topalian,
but with an emphasis on design managers who have had little prior design or design
management experience. Alan Topalian points out that these managers at functional
or tactical level often think that competencies other than design, such as in marketing,
production or project management transfers easily into an equivalent competence in
managing design, however they are often uncomfortable when it comes to handling
design projects, resulting in a superficial approach with indifferent results (Topalian,
1984, 2002). These problems with middle level managers in the design management
domain have led to concerns over the transition to design leadership and management
positions. These concerns, discussed further in Chapter 3, include the challenges in
dealing with the shift towards team-based and temporary work, increasingly flexible
and gate-keeping roles, and a greater focus on relationship-based work.
The second research gap highlights the need to improve design and designer
education, especially design professional development, and cross-disciplinary
perspectives from design academia, and design practice. According to Yang, You,
and Chen (2005), design education had failed because the capabilities of design
graduates globally are not up to a level expected by employers (Yang et al., 2005).
To add, there is an increasing need for talents that have an international perspective
and in-depth experience working in multinational corporations (Ooi, 2010). The
Singapore government supports the training of more designers and allowing a
greater influx of global design talents into Singapore (MTI, 2002). The challenge for
Singapore now is the shortage of locally trained talents with an international outlook
and an appreciation of the Singaporean perspective.
Also, according to Rausch (2005), there is the need for professional development
to draw a distinction between the development of design leaders from the education
about design leadership. He points out that potential design leaders may learn of
leadership and motivation theories that provide an array of insights, however they
may not realise how these insights apply to a specific decision (Rausch, 2005).
This can be a disadvantage for companies that urgently need design leadership in
an increasingly competitive environment like Singapore. There is also the need for
cross-disciplinary perspectives between design education and design practice (Wolf,
Davis, & Vogel, 2002). According to Wolf et al.:
Current undergraduate design programmes do not make students aware
of the challenges of design management, nor do they describe the types of
management that exist. Graduate programmes are not much better. Leaders in
education and industry must recognize this gap in education and work together
to correct it. (2002, p. 36)
These problems with design education identified by scholars in the design
management domain led to concerns about design leadership development and the
5
CHAPTER 1
design leadership pipeline in general. These concerns are further addressed in the
literature review in Chapter 3, which includes a discussion on the ephemeral nature
of design and the need for champions in design leadership and management, the
need for continuous upgrading and lifelong learning, and the need for accreditation
and recognition for professional development in the design industry.
The third research gap highlights concerns with talent management, with a
focus on the war for talent in the Asia Pacific, and the need to develop studios with
excellent practices in Singapore. Singapore’s conversion from an information-
driven industry, to a knowledge-based society, to a flourishing creative economy
today (MICA, 2008), emphasises the significance of creativity in its strategy for
economic growth and survival. Globalisation has fuelled the aggressive economic
growth in Asia and promoted talent mobility (Florida, 2005, 2008; Senge, 2006).
This has accelerated the talent brain drain because “the best and the brightest talents
often find attractive compensation packages overseas because of global competition
for the best talent,” this results in severe “talent shortages” in China and the Asia
Pacific region (Ooi, 2010, p. 25). For Singapore, there is an increasing need for
talents that have international perspective and experience working in multinational
corporations (Ooi, 2010). For some scholars, Singapore’s development ethos and
survival ideology had marginalized the development of arts and culture resulting
in a labour force that is not suitable for the creative economy (Holden & Hamblett,
2007; Low, 2002; Ooi, 2010; Sharpe & Gopinathan, 2002). Research identifies the
need for leaders to develop an excellent design studio culture (MTI, 2003). This
studio design culture should encourage cultural sensitivity, to overcome cultural
disadvantages, and to be more inclusive and urgently encourage diversity in the
workplace (Bassett-Jones, 2005; Chiu, 2001; Jacobs, 2005; Littrell, 2002; Quaglieri,
Penney, & Waldner, 2007; Vaiou, Konstantatos, & Siatitsa, 2009). These concerns
on talent management are further addressed in the literature review chapter, which
discusses the war for talents, the need for designer career trajectories, and good
practices in design management; issues addressed in this book.
The fourth research gap highlights concerns related to the design community
and design practice, especially in light of the failure shown by the top-down design
leadership style and the need for new studio leaders. According to Clews (2008),
the top-down leadership style is a source of concern in managing design as it would
not produce design outcomes of the level of rigour, consistency, attention to detail
or within the scope of a bottom-up approach driven by the designers (Clews, 2008).
Similarly, Gorb observed that there is a difference between the working styles of
a designer and design leader. A designers’ working style is practical, with a strong
focus on the “how” of problem solving (Gorb, 1992). According to Gorb, designers
are inductive in bringing business value and emphasise on the importance of
“capable” educational routes to a successful working life. For design leaders, their
style of working is theoretical with a focus on the “why” of the problem (Gorb,
1992, p. 20). Design leaders bring business value by seeking knowledge deductively
and emphasising the importance of “reflective” educational routes to a successful
6
OVERVIEW OF THE ISSUES
working life (Gorb, 1992, p. 20). In light of the failure of top-down leadership
and the differences in working styles between designers and design leaders, it is
unsurprising that scholars in the creative industry suggest the need for a new breed
of global generalists (Kyung Won Chung, 1998; Gibson & Kong, 2005; Porcini,
2009; Yukl, 2013). The literature highlights the fragmented design eco-system,
the significance of the structure of the design community, and the future of design
leadership being highly relational in nature.
The fifth research gap addressed in this book focuses on concerns with design
policy and strategy, especially with the impact of design policy in Singapore, and how
they help develop a stronger design culture in Singapore (DSG, 2009). Design and
design leaders need an environment that supports both creativity-nurturing situations
together with opportunities for stimulating creative conflicts with competitive
co-workers and an exposure to complex jobs led by design leaders who display
supportive non-controlling styles (Cummings & Oldham, 1997). This environment
must constantly adjust and adapt the context to maximize the innovation potential
and creativity of designers and ensure that the essence of their work is not swayed
by the times or be merely novel solutions (Chan, 2001). Singapore is one of the few
countries globally to set tangible objectives for developing its creative economy.
This is despite it being the newest entrants in the race towards being a cultural and
creative city in Asia and the world. These concerns regarding design policy and its
strategy are further addressed in Chapter 3, in its contextual review of the creative
industries in Singapore from their creation to the latest Design Singapore Initiative.
As has been noted, there is a dearth of research into design leadership and
management in the context of Singapore. By canvassing the views of design
managers, design consultants, and design entrepreneurs in Singapore, this book will
make a significant contribution to understanding the current transition to design
leadership and management positions in Singapore.
Definition of Design
7
CHAPTER 1
is significant about design is that it helps businesses to brand, grow and compete
(de Mozota, 2003; Evans & Shaw, 2004).
Design mergers with moral and ethical considerations. Latour (2000) states that
design is a humbling process because a designer only adds to an idea and does not
facilitate foundational changes. Design, he adds, demands that the designer have an
eye for details, and requires that s/he creates meaning through that process. Therefore
design is almost always never new but remedial. Latour argues that “by expanding
design so that it is relevant everywhere, designers take up the mantle of morality as
well” (Bohemia, 2000, p. 6). Because “materiality” and “morality” is “coalescing,”
designers will be subjected to the ethical critique of his clients and peers (Bohemia,
2000, p. 5).
Design defines products and/or services. Ralph and Wand (2009) however, provide
the clearest, most thorough and holistic definition of design to date. They define
design (noun) as “a specification of an object, manifested by an agent, intended to
accomplish goals, in a particular environment, using a set of primitive component,
satisfying a set of requirements, subject to constraints” (Ralph & Wand, 2009, p.
109). Ralph and Wand also defined design as a transitive verb; “to create a design,
in an environment (where the designer operates)” (Ralph & Wand, 2009, p. 109).
They cite six classes of design objects identified as the outcomes of design. The
design outcomes are “physical artefacts” (e.g. single component or composites),
“processes” (e.g. business workflows), “symbolic systems” (e.g. programming
language), “symbolic scripts” (e.g. essays, graphic models, software), “laws, rules
and policies” (e.g. criminal code), and “human activity systems” (e.g. design
projects, committees, and operas) (Ralph & Wand, 2009, p. 111).
8
OVERVIEW OF THE ISSUES
Similarly, the term industrial design is seen as somewhat outmoded with its historical
links to the Industrial Revolution. To add, the term “industrial” also implies a
“greater emphasis on the manufacturing aspects” in the product development process
(Jevnaker, 2000, p. 310).
9
CHAPTER 1
expectations via research and user experience testing. These ideas also demonstrate
the ability to add value and provide differentiation in a cost effective way. Fourth,
design management assumes that all activities in business, and design activities are
manageable. It believes that design decisions are similar to business decisions in that
they are either “hard” or “soft.” Fifth, design management assumes that professional
management requires a rigorous approach to design management. This presents
an intellectual challenge in business. Sixth, design management assumes that high
standards are unachievable without reorganising products, services, and operations of
business services. It believes that it is necessary for all staff to have a deep sense of
pride and concern for design standards. Seventh, design management assumes that
effective design is integrated into all principal categories of design. Design integration
requires work to be coordinated across major disciplines and stages of projects, with
implicit decisions followed through from project to project, whenever appropriate.
Eighth, design management assumes that it takes a significant improvement in design
management performance to influence design standards in business. Ninth, design
management assumes that effective design management requires appropriately skilled
and committed middle managers. To be successful, enlightened senior executives must
in return support these middle managers. The tenth assumption of design management
is that design enlightenment is not part of the business culture. As such, only capable
specialists from outside the business domain can provide the formal training required
in design management. These ten assumptions underpin the development of design
management as a rigorous discipline on par with established disciplines in business.
An understanding of these assumptions will allow for a better appreciation of design
management in practice.
10
OVERVIEW OF THE ISSUES
the intangibles of the new economy (McBride, 2007, p. 22). Design management
also covers a wide spectrum of inter-related design activities like research and
development, strategy and planning, team building and value-management (Kyung
Won Chung, 1998; Topalian, 2002). Design management has three functional levels,
namely operational, functional, and strategic (Topalian, 2002).
Effective use of resources. The first and most traditional definition of design
leadership is the effective deployment of resources by a manager according to the
company’s objectives (Erlhoff & Marshall, 2007; Hollins, 2002). The work scope
is that of a project co-ordinator, or a manager of a design project. This definition is
influenced by the focus on project management in the 1980s.
11
CHAPTER 1
Advocates design & design expertise. The third definition of design leadership is
concerned with individuals who act as design advocates, promoters, or interpreters
that connect and support design expertise according to the company’s agenda and
competencies (Bucolo, Wrigley, & Matthews, 2012; Jevnaker, 2000). This definition
is influenced by the focus on marketing and branding in the 2000s.
Designs with and for people. The fourth definition of design leadership is designing
with people or co-design, as contrasted to designing for people. This definition
became popular after 2005 and is influenced by co-design and its focus on customer
experience and satisfaction. Design teams co-creating products and services with
consumers, and these objects can also have some intangible economic, social and
aesthetic values (Eisermann, Gloppen, Eikhaug, & White, 2005).
The research literature suggests that design leadership can also happen in teams.
Increasingly, design leaders need to adopt team leadership and bottom-up strategies
in managing design and design projects. This happens when task complexity increases,
and it becomes impossible for design leaders to handle everything. Team leadership
strategy requires team integration and individual expertise to be well-developed
and independent (Singh & Bhandarker, 1990). Bottom-up leadership strategy is
idea-based and originates from knowledge workers when they become engaged in
pushing the boundaries during problem solving. Bottom-up leadership is directed
upwards and ends once senior managers accept the team’s proposal. It is a valid
12
OVERVIEW OF THE ISSUES
way to approach strategic diversification in a saturated market (Nam & Jung, 2008).
Both team leadership and bottom-up leadership strategy are recommended for the
creative industry (Clews, 2008; McCrimmon, 2009; Vaiou et al., 2009).
Design leadership can also influence the way in which an organisation behaves and
reacts. Due to the design leaders’ contrarian outlook, design organisations are often
subversive places. They require a quality of leadership that is a constant irritant
so as not to allow it to slide into intellectual complacency. This contrarian view
and constant irritation is also a constant reminder of its sacred mission in education
(MacBeath, 2007). Design organisations that offer a contrarian view are an alternative
to the banality of mass media, the conceits of the designer culture and a sex-obsessed
popular culture via the processes of subverting common sense, challenging received
wisdom and inert ideas (Whitehead, 1929). Design leaders are seen as change agent
or catalyst of change who navigate or guide their organisation to turn those visions
into reality (Clews, 2008). In the process, they look after many aspects of their
organisation simultaneously (Singh & Bhandarker, 1990; Ughanwa, 1988b). To add,
design leaders are expected to ensure that design is used in organisations and to
envision its future.
Leaders are defined as people who direct and control, eliminate uncertainties, deal
with variances from the grand plan, understand the whole system, see its connections
and interconnectedness, foresee the responses of people and conceptualise and
respond with the appropriate interventions (Karp & Helgø, 2008). From the many
definitions provided above, a design leader is first of all a leader within a design-
orientated organisation. The leader must be trained in a design specialisation and
have the appropriate design credentials and experience. In addition, the design
leader must also have access to a broad design network that will ensure their
success within that role. Finally, a design leader is expected to have documented
accomplishments, supported by a portfolio of successful works that is up-to-date
and relevant. For this book, design leadership is taken to be an essential function
of design leaders.
According to Alan Topalian (1990), a design leader can be defined in two ways:
First, as an organisation’s position in the market; and second, as an individual who
finds him/herself in a position of leadership or who chooses to lead. In the context
of this book, the conceptual framework of this study was guided by Alan Topalian’s
(1990) second definition. It identified three different categories of design leaders,
of which only design leaders in category one (1) were selected. Category one
(1) design leaders are defined as “Industrial design leaders who manage industrial
designers” and can be subdivided into three groups, namely “Corporate Design
13
CHAPTER 1
To reiterate, the aim of the study was to develop theory on design leaders’ transition
to design leadership and management positions in Singapore.
The general research questions were:
• What are the meanings and understandings of design leaders regarding the
transition to design leadership?
• What are the aims and intentions of design leaders with regard to the transition to
leadership positions?
• Are design leaders’ perspectives on the transition to design leadership influenced
by their interactions at their workplace or community? If so, in what ways?
• What strategies do design leaders use in the transition to design leadership, and
how significant are these strategies for them?
• What do design leaders believe contributes to the success of these strategies?
The study is a qualitative study, privileging the voice of design leaders. Located in
the interpretivist paradigm, it employed grounded theory methodology in generating
theory in the form of theoretical propositions. The study developed collective case
studies of three groups of design leaders on their experiences in transitioning to
design leadership and management positions in Singapore. The case study approach
sought to draw out the complexity of the cases through constructing rich descriptions
of phenomena under study (Punch, 2005; Yin, 2009).
The research canvassed the perspectives of 15 design managers, design
consultants, and design entrepreneurs on the transition to design leadership and
management positions in Singapore. Data was collected through semi-structured,
in-depth interviews, documents researcher memos, and participants’ reflective
journals. The data was analysed according to grounded theory methods, and
involved the identification of open, focused, and axial coding in the process of
theory development. The analysis was guided by the inductive analysis approach of
Miles and Huberman (1994), and supported by computer-aided qualitative analysis
software, Atlas.ti.
This study found that the transition to design leadership and management positions
in Singapore progresses through five sequential levels: Level 1 Self-cultivation;
Level 2 Developing Expertise; Level 3 Grooming Talents; Level 4 Building Industry
and Community; and Level 5 Improving Policies. The empirical findings led to the
development of the Design Leadership Transition Theory in the form of theoretical
propositions related to the levels, as follows:
14
OVERVIEW OF THE ISSUES
At Level 2 of the design leadership journey, aspiring designers leaders are design
team leaders within their company. Design team leaders aim to develop deep
expertise via a master-apprentice approach, to diversify design in Singapore, and to
develop “T-profile” design professionals in Singapore.
At Level 3 of the design leadership journey, design team leaders are design managers.
Design managers aim to groom talents, and they do this by managing their design
talents, managing their design project work, and managing the experience designers
have in their studio practice.
At Level 4 of the design leadership journey, design managers are design directors.
Design directors aim to bring about transformative change to the industry with
design strategy, to the community with inter-disciplinary/multi-disciplinary design
approaches, and to society with participatory approaches.
At Level 5 of the design leadership journey, design directors are chief design officers
or owners of their design business. Chief design officers and owners of design
businesses support, promote and refine existing policies, and make suggestions for
new policies in the creative industries that benefit Singapore, and Singaporeans and
their relationship with Asia and the world.
CONCLUSION
This chapter has provided an overview of the study described in this book, which
generated theory about the transition to design leadership and management positions
in Singapore. Chapter 2 describes in further detail the background and context to
the study. Chapter 3 reviews the intersecting bodies of literature that informed the
study, highlighting gaps in the literature that support the rationale for the study.
15
CHAPTER 1
Chapter 4 describes the methodological framework of the study and outlines the
methods that were employed. Chapter 5 presents the empirical findings in the form
of three collective case studies. Chapter 6 presents an overview of the findings
according to the central research questions. Chapter 7 presents the theory of the
transition to design leadership and management positions in the form of theoretical
propositions. Chapter 8 concludes the book with a summary of the study, as well as
recommendations for practice, policy, and further research.
16
CHAPTER 2
INTRODUCTION
This chapter describes the background and context of the present study of design
leaders and their transition to design leadership and management positions in
Singapore. The first section of the chapter addresses the concept of globalisation
and its impact on the rise of Asian economies. It draws attention to the positive
and negative effects of globalisation on developing economies. The second section
explains how the information/knowledge economy has transformed into the cultural
and creative industries. The third section cites a major research study that reviewed
international design policies, highlighting key trends. The study identified key
strengths of Singapore’s design policy, as well as vulnerable points. The final section
of the chapter describes Singapore’s transition to a cultural and creative economy.
This section highlights the need for urgent action by the design industry to develop
leadership and management talents in Singapore, further supporting the rationale for
this study.
Globalisation
17
CHAPTER 2
The aggressive economic growth within Asia has created an increasing demand for
skills and talents, resulting in Multinational Corporations (MNCs) facing severe
talent shortages.
According to Stiglitz, globalisation has six distinct characteristics (2003). The
first characteristic of globalisation is knowledge and the free flow of knowledge
and ideas globally which transforms societies, policies, and institutions. The second
characteristic is trade; global trade is a well-studied phenomenon and is proven
to have a direct relationship with economic growth. The third characteristic is
labour, especially the impact of labour flow. Labour flow is at best ambiguous, and
one of the least studied aspects of globalisation. As such, labour flow is an area
for exploration in this study. The fourth characteristic of globalisation is foreign
direct investment (FDI), which brings in capital that has less cyclic volatility than
portfolio capital, access to foreign markets, technology, and human capital. FDIs
in return strengthen the growth of the economy. The fifth characteristic is capital
market liberalisation, which allows for the free flow of short-term capital around
the world (Stiglitz, 2003). The sixth characteristic of globalisation cited by Stiglitz
is that the modern world is consistently and invariably homogenised by it (Yang,
2003, p. 2).
In light of the above characteristics, globalisation has had significant and positive
results on: the flow of ideas; the flow of talents; the spread of literacy and education;
and the setting up of institutions and policies that aid economic growth (Johnson,
2002; Koh, 2002). According to Johnson (2002), the greatest impact of globalisation
is the exponential increase in scientific knowledge after the mid-19th century. This
increase in scientific knowledge enabled rapid progress in agricultural technology
that freed up labour in rural areas. As a direct result, cities have thrived and real
capital incomes have increased in the Western world. This scenario has encouraged
knowledge production through higher educational institutions creating virtuous
cycles of improvement (Johnson, 2002).
Of significance to the present study, Johnson (2002) reports that countries have
had far better economic growth, as is the case of Singapore, when they accept the
need for research institutions and carry out policies that enhance growth. Policies
that enhances growth often relate to the protection of private property, the rule of
law, enforcement of contracts, protection of individual rights, democracy, support of
the market, and a fair, non-corrupt system of public finance. However, governments
throughout the world do not always adopt these institutions and policies that are
associated with economic growth, often leading to direct and disastrous effects to
the nation’s economic performance (Johnson, 2002).
The negative impacts of globalisation are somewhat nuanced and the indirect
result of economic growth (Johnson, 2002; Latif, 2004). While new knowledge
creates growth, it also causes the rapid replacement or obsolescence of skills due
to the need for further growth. Similarly, economic growth causes debilitating
dislocations. The significance and number of dislocations occur according to the
degree of integration of a nation’s economy into the world economy, and the need
18
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