Editorial: Confucius and Economic Growth

Editorial by Alberto Gabbai
Chairman of the Board of Cezanne Software

Last summer, I visited some of the "Asian Tigers", namely Taiwan, South Korea and Singapore and, even if they do not fall into the category, several provinces of China, including Manchuria.

What struck me, along with the level of economic development and wealth that these countries have achieved, is that such remarkable results were and still are being obtained under political regimes which, more often than not, are far from democratic. Taiwan and South Korea, which are democracies today, were not so in their initial and fastest phases of economic development, and Singapore, not to mention China, can be considered as dictatorships under Western definition. Unthinkable in the West, they developed strong economies under regimes that were not democracies. What made that possible?
The answer, I think, lies in the philosophy these societies have adopted for thousands of years: Confucianism. In particular, two precepts of Confucianism have underpinned the growth of the Asian economies under peculiar, and often difficult, conditions.

The first, I would summarize as “honour the elders”. This attitude didn’t lead to economic growth in the beginning; it actually stifled it, since, as a consequence, something that hadn’t been tried before wasn’t worth pursuing because “our fathers would have thought of it already”. However, when technology came in from other countries, this excuse was no longer valid: after all “our fathers” didn’t have the technology to do things differently. What remained, though, was unquestioning respect and trust towards the establishment, including the government, which allowed dictatorships to remain in power, and even to be widely respected, while the economy started to blossom and become more liberal.

But it is more than that: the second Confucian principle that I believe is at the foundation of their economic power is the pivotal role of learning. “What have I learned today?” is a question every person should ask themselves before going to sleep each night. This focus on continuous learning has been the real driver behind these countries’ economies.

Things are unfortunately quite different in the West today. To illustrate what I mean, I read in a recent issue of Time magazine an article about the “myth of homework” for our students. According to the article, homework, the way it is assigned, is killing the curiosity of students. So, instead of asking for homework that would boost the creativity and the curiosity of our (Western) students, the parents are asking for no more homework. People who are accustomed to learn will be better suited in the ever changing work environment of today, and the evidence from the Asian countries should be considered.

At Cezanne, we always try to hire people who are not only bright and knowledgeable, but also eager to learn something new every day. And, although this is an attitude that is difficult to teach. I think that nurturing it is the key to a prepared workforce for tomorrow, which is one of the most important factors for success.