Summary

A historical analysis of the working mechanisms of the Chinese Communist Party (CCP)

Takeaways

The Chinese Communist Party (CCP) has been the sole legitimate governing authority in China since 1949. By the end of 2009 when the book was published, the CCP had 78 million members.

The Party consists of a giant network of people that are involved in every important decision and its members have built up the skills and experience to run the country. It has remained in power by supporting a boisterous private economy and keeping strict control over personnel, propaganda, and the army. Since the Party was founded it has systematically “has eradicated or emasculated political rivals; eliminated the autonomy of the courts and press; restricted religion and civil society; deningrated rival versions of nationhood; centralized political power; established extensive networks of security police; and dispatched dissidents to labour camps.”

Quotes

“As an organization, the Party sits outside, and above the law. It should have a legal identity, in other words, a person to sue, but it is not even registered as an organization. The Party exists outside the legal system altogether."

“The Party’s control over personnel was at the heart of its ability to overhaul state companies, without losing leverage over them at the same time. So important does the Party rate its power to hire and fire government officials that it places it on a par with its control over the media and the military."

“The policy cycles follow a familiar pattern, the Chinese economists say: ‘Decentralization leads to disorder; disorder leads to centralization; centralization leads to stagnation and stagnation leads to decentralization.’"

“Deng, and Jiang after him, grasped what many of their conservative opponents never did–that the Party had much in common with private entrepreneurs, who disliked democratic politics and independent unions as much as they did. The Party’s authoritarian powers not only kept workers in line. They also bestowed on policy-makers a flexibility that politicians in democratic countries could only dream about. Even by the standards of a capitalist economy, the Party could be unusually pro-business, as long as the state got a cut along the way."

Author

William Dalrymple

Summary

The history of the rise and fall of the East India Company.

Takeaways

The East India company was a trading company based in London that rose from humble beginnings to a fully fledged imperial power that managed to replace the ruling Mughal empire on the Indian subcontinent in a short period of time between 1756 and 1803. In that time period the East India Company extended their sphere of influence through treachery, forged contracts, collaboration with local banker, bribes, and military prowess in armed conflicts and wars.

As a company, the EIC was answerable only to its shareholders. With no stake in the just governance of the region, or its long-term well-being, the Company’s rule quickly turned into the straightforward pillage of India, and the rapid transfer westwards of its wealth.

Quotes

“In many ways the East India Company was a model of commercial efficiency: one hundred years into its history, it had only thirty-five permanent employees in its head office. Nevertheless, that skeleton staff executed a corporate coup unparalleled in history: the military conquest, subjugation and plunder of vast tracts of southern Asia. It almost certainly remains the supreme act of corporate violence in world history."

“In the end it was this access to unlimited reserves of credit, partly through stable flows of land revenues, and partly through the collaboration of Indian moneylenders and financiers, that in this period finally gave the Company its edge over their Indian rivals."

“Because it was not the British government that seized India in the middle of the eighteenth century, but a private company. India’s transition to colonialism took place through the mechanism of a for-profit corporation, which existed entirely for the purpose of enriching its investors."

Author

Timothy Ferris

Summary

Practical tips to develop a richer lifesyle.

Takeaways

Working hard for decades to afford an enjoyable retirement is an outdated concept. It is better to schedule mini-retirements and other exciting activities periodically. A “newly rich” lifestyle can be financed by developing products or ideas that can be sold to generate cash flow outside of established employment patterns.

Quotes

"‘Someday’ is a disease that will take your dreams to the grave with you. Pro and con lists are just as bad. If it’s important to you and you want to do it ‘eventually,’ just do it and correct course along the way."

“What we fear doing most is usually what we most need to do. As I have heard said, a person’s success in life can usually be measured by the number of uncomfortable conversations he or she is willing to have."

“It’s lonely at the top. Ninety-nine percent of people in the world are convinced they are incapable of achieving great things, so they aim for the mediocre. The level of competition is thus fiercest for ‘realistic’ goals, paradoxically making them the most time- and energy-consuming."

“The question you should be asking isn’t, ‘What do I want?’ or ‘What are my goals?’ but ‘What would excite me?'"

Author

Ray Dalio

Summary

The life and work principles of Ray Dalio, founder of investment firm Bridgewater Associates.

Takeaways

An idea meritocracy is the best way to make decisions in a company. An idea meritocracy requires a commitment to truth and transparency. It can be achieved if people are open minded and ideas are evaluated based on the track record of the people who contribute them. The process can be supported by writing down and refining principles that support decision making and reflect learnings from the past.

Quotes

“In 1966, asset prices reflected investors' optimism about the future. But between 1967 and 1979, bad economic surprises led to big and unexpected price declines. Not just the economy and the markets but social sentiment deteriorated as well. Living through that taught me that whilst almost everyone expects the future to be a slightly modified version of the present, it is usually very different."

“People still make the most important decisions better than computers do. To see this, you need look no further than at the kinds of people who are uniquely successful. Software developers, mathematicians, and game-theory modelers aren’t running away with all the rewards; it is the people who have the most common sense, imagination, and determination."

“Be especially wary of those who comment from the stands without having played on the field themselves and who don’t have good logic, as they are dangerous to themselves and others."

“Good metrics come about by first thinking of what information you need to answer your pressing questions and then figuring out how to get it. They do not come about by gathering information and putting it together to see what it tells you."

Author

Brendan Reid

Summary

Advice for a more strategic approach to career planning.

Takeaways

Corporations typically don’t operate rationally as they consist of people who have their own benefits in mind. Career progression requires a strategic approach and tactical steps contrary to commonly accepted practices.

1. Don’t be overly passionate about your ideas and rather be objective in providing optionality
2. Embrace the changes everyone else hates
3. Learn to promote your ideas instead of refining them without feedback
4. Avoid a too strong focus on result orientation and instead spend time expanding your skill set
5. Don’t be a part of the heard, and don’t gossip about peers and superiors
6. Find big problems to solve
7. Don’t hold peers accountable and mentor them wherever possible

Quotes

“People inherently want to work with people similar to themselves and who they like. Any strategy for managing a career that includes not being liked by others is flawed."

“Isn’t passion what will make people want to follow you? That is only partially correct. Passion for the best path, irrespective of whose idea it was, is a virtue that endears people. Passion for your path, because you know it to be right, is just a bullying tactic disguised as innovativeness."

“Results have a short shelf life. Skills have value over many years and roles."

“Avoid the herd mentality at all costs. Start promoting your projects. Be at your best when difficult change is afoot and everyone around you is rebelling. Stop holding people accountable and start helping them to succeed. Choose to be objective over passionate when presenting ideas and strategies. And favor high-scoring projects over reliable performance of everyday tasks."

Author

Bob Joseph

Summary

A sample of 21 of the destructive and damaging statues and policies that constitute the Indian Act.

Takeaways

The Indian Act, passed in 1876, regulated and still regulates the lives of Indigenous Peoples in Canada. One of the most damaging and destructive parts of the act was the introduction of residential schools that forced children to move away from their families and forbade them to speak their home language and practice their traditional religion.

In recent years, the Canadian public and government have increased focus on reconciliation, paving the way to dismantle the Indian Act and move towards self-governance for Indigenous Peoples.

Quotes

“If Canada and Canadians are going to reconcile with Indigenous Peoples, then the existing relationship —the one based on the Indian Act— has to be rebuilt. The past cannot be overlooked or dismissed as ‘ancient history’, because it isn’t; the impacts of the past are ongoing."

“The focus should now be on dismantling the Indian Act, moving towards self-government in an orderly and timely fashion, and creating a self-governing future for Indigenous Peoples outside of the Indian Act."

“While self-government is not a quick fix for the deeply rooted social, health, and economic issues that plague Indingenous communities, it is a step towrds empowering communities to rebuild and heal from the intergenerational effects of residential schools."

Author

Eliyahu M. Goldratt

Summary

The story of a plant manager who discovers the benefit of systematically assessing the processing bottlenecks instead of relying on conventional wisdom.

Takeaways

Instead of relying on conventional wisdom, it is crucial to deeply reflect on the goal of an operation or organization and take a scientific and systematic approach to explore the factors (bottlenecks or constraints) that prevent us from reaching it.

The following process can serve as a blueprint to work towards achieving any goal.

1. Identify the system’s constraint.
2. Decide how to exploit the system’s constraint.
3. Subordinate everything else to the above decisions.
4. Elevate the system’s constraint.
5. If in the previous steps a constraint has been broken, go back to step 1, but do not allow inertia to cause a system constraint.

Quotes

“Finally, and most importantly, I wanted to show that we can all be outstanding scientists. The secret of being a good scientist, I believe, lies not in our brain power. We have enough. We simply need to look at reality and think logically and precisely about what we see. The key ingredient is to have the courage to face inconsistencies between what we see and deduce and the way things are done."

“I stop and look at him. “What are we asking for? For the ability to answer three simple questions: ‘what to change?’, ‘what to change to?’, and ‘how to cause the change?’ Basically what we are asking for is the most fundamental abilities one would expect from a manager. Think about it. If a manager doesn’t know how to answer those three questions, is he or she entitled to be called manager?”

“The lesson that Shewhart brought to manufacturing from Physics, and Deming made known worldwide, is that trying to be more accurate than the noise (in our case, trying to use sophisticated algorithms that consider every possible parameter in an environment of high variability) does not improve things but makes them worse—the results will most certainly not be an improvement but a deterioration in due-date performance."

Author

Cathy O’Neil

Summary

A warning of the destructive power of black-box algorithms that govern our lives.

Takeaways

Algorithms and mathematical models are ubiquitously applied and drive decisions in every aspect of our lives. They, for example, determine college admissions, calculate insurance fees, and determine the content in our social media feeds. Many of the algorithms are intransparent, making it impossible to understand and challenge the results. If there is no alignment between the objectives of the models and the interest of the modeled subjects and if there is no feedback loop to improve the model over time, these “weapons of math destruction (WMD)” can cause significant harm.

Quotes

“The first question is: Even if the participant is aware of being modeled, or what the model is used for, is the model opaque, or even invisible?"

“That makes it extra hard to answer the second question: Does the model work against the subject’s interest? In short, is it unfair? Does it damage or destroy lives?"

“The third question is whether a model has the capacity to grow exponentially. As a statistician would put it, can it scale? This might sound like the nerdy quibble of a mathematician. But scale is what turns WMDs from local nuisances into tsunami forces, ones that define and delimit our lives."

“So to sum up, these are the three elements of a WMD; Opacity, Scale, and Damage."

Author

Hans Rosling

Summary

A plea to overcome the human instincts that prevent us from developing a fact based worldview.

Takeaways

Knowledge of global patterns and trends is poor across demographics even though data is publicly available. Common assumptions about topics like population growth, income inequality, education and health, are not only wrong but are systematically distorted. Developments appear more negatively than they are. Reasons are a lack of statistical literacy and our instincts to generalize, blame others, and consider things without appropriate comparison frames and proportions. To develop a fact based and more accurate worldview, we need to be aware of these instincts and work actively to overcome them.

Societal change is happening steadily but slowly and often not considered newsworthy. The lack of attention makes it hard to identify emerging patterns and adapt to a changing landscape. The Western view is systematically underestimating the progress in Asia and especially Africa, and the significant role these continents will play in a future global economy.

Quotes

“The data shows that half the increase in child survival in the world happens because mothers can read and write. More children now survive because they don’t get ill in the first place. … So if you are investing money to improve health on Level 1 and 2, you should put it into primary schools, nurse education, and vaccinations. Big impressive-looking hospitals can wait."

“People in North America and Europe need to understand that most of the world population lives in Asia. In terms of economic muscles ‘we’ are becoming the 20 percent, not the 80 percent. But many of ‘us’ can’t fit these numbers into our nostalgic minds. Not only do we misjudge how big our war monuments should be in Vietnam, we also misjudge our importance in the future global marketplace. Many of us forget to behave properly with those who will control the future trade deals."

“Anyone who claims that democracy is a necessity for economic growth and health improvements will risk getting contradicted by reality. It’s better to argue for democracy as a goal in itself instead of as a superior means to other goals we like."

“In fact, resist blaming any one individual or group of individuals for anything. Because the problem is that when we identify the bad guy, we are done thinking. And it’s almost always more complicated than that."

Author

Adam Rutherford

Summary

A scientific view of the role that DNA plays in understanding human history, and what we can and cannot conclude when analyzing it.

Takeaways

Depicting our ancestry looks more like an entagled mesh than a tree. Everyone living today shares the same group of ancestors if we go back long enough in time.

DNA influences observable characteristics in a probabilitic way. There are only a few genes that have a clear physical manifestation. The scientific reality is more complex than newspaper headlines make you believe.

Quotes

“It’s important to remember that the commercial DNA ancestry tests don’t necessarily show your geographical origins in the past. They show with whom you have common ancestry today."

“The truth is that we all are a bit of everything, and we come from all over. Even if you live in the most remote parts of the Hebrides, or the edge of the Greek Aegean, we share an ancestor only a few hundred years ago. A thousand years ago, we Europeans share all of our ancestry. Triple that time and we share all our ancestry with everyone on Earth."

“No one will ever find a gene for ‘evil’, or for beauty, or for musical genius, or for scientific genius, because they don’t exist. DNA is not destiny. The presence of a particular variant of a particular gene may just have the effect of altering the odds of any particular behavior. More likely, the possession of many slight differences in many genes will have an effect on the likelihood of a particular characteristic, in consort with your environment, which includes all things that are not DNA."