

Last episode from the former BCG consultant in Dubai - joss82
http://tech.mit.edu/V130/N19/dubai.html

======
sammyo
The one detail I found most interesting is the historical point:

"The executives I met all showed pictures of their youth, reminding me that
just a few decades ago, their country was nothing more than sand, tents, and
simple stone."

The idea the "capitalism/democracy/natural resources" is what make the USA a
world power is a limited analysis. There are huge cultural and social forces
that can not just be bought. He suggested 'human capital' would have been the
best investment, but it is only princes that are provided with advanced
education and it's likely only a few of those are interested in slogging
through the trenches of starting a real business. Educate non-royal-family
citizens and you will be financing some type of revolution, not something the
Dubai power structure would ever allow I suspect.

~~~
garply
This quote stuck out at me and I found myself revisiting the article just to
find it. Here's the thing in full:

"The executives I met all showed pictures of their youth, reminding me that
just a few decades ago, their country was nothing more than sand, tents, and
simple stone. Maybe they held on to the pictures to impress upon me the great
progress Dubai has made, maybe they held on to them to reassure themselves
that life would go on even if they had to return someday to their tents.
Personally, I took the pictures as a reminder that the men running Dubai’s
gargantuan companies had been given an upbringing that could not prepare them
corporate management."

I couldn't help but think that if he had built something comparably
substantial in his life, he would know that the executives are showing him the
pictures out of pride for their accomplishments.

And what does it mean that their upbringing couldn't prepare them for
corporate management? Why shouldn't the people who transformed their country
from sand, tents, and stone into skyscrapers be able to manage corporations?

------
euroclydon
I didn't realize their oil was gone, but hey, it's still one heck of a tax
haven, right? Isn't that why Rodger Federer lives there?

~~~
joss82
It means Dubai is an even bigger tax haven than Switzerland (Federer is
Swiss). That's impressive.

Maybe they are trying to be successful in the Swiss way: no oil or ressource
whatsoever, but still plenty of money.

~~~
arethuza
Switzerland might not have much mineral resources - but you might want to
compare the skiing in Switzerland and Dubai to see one small area where the
Swiss have a lot more going for them than Dubai does.

And yes, there _is_ skiing in Dubai.

~~~
wlievens
I recall seeing an indoor skiing hall megastructure on discovery, so you're
right :-)

------
shrikant
_[..] a steel mill, run poorly, is a terrible investment._

 _Why not simply take the money made from selling oil, and invest it?_

 _There is a natural resistance to simply investing oil wealth in a sovereign
wealth fund that I don’t entirely understand._

This is the same guy who had written:

 _It was hard to sit at a laptop and crank out slides when all I seemed to be
accomplishing was the transfer of wealth from my client to my company._

 _My moral system is organized around a utilitarian principle of greatest good
for the greatest number - that which adds value cannot be wrong._

Dissonance, much?

~~~
wdewind
Sorry maybe I'm dumb but I don't see the contradiction?

~~~
josefresco
The statement about making money without actually making "things" or a helping
people conflicts with his advice to Dubai which is to simply invest the money
in the 'market' which some would argue creates nothing for society.

I guess maybe _for him_ simply shuffling paper and money isn't acceptable but
he feels comfortable advising the same technique for Dubai because of their
inability to make 'things'?

Maybe he is a great consultant after all?

~~~
btilly
There is no contradiction. While _some_ might argue that investing money in
the 'market' creates nothing for society, it is fairly clear to me that he
believes that investment can create sustained economic growth for the benefit
of all.

As for the previous installment, it was clear to me that he had no objection
to shuffling paper and money. What he disliked was pandering to people,
offering them bad advice that they wanted to hear so you could take their
money. He would have been quite happy to charge the same amount or more for
offering good advice that left them better off, and was frustrated that he
didn't have the ability to do so.

Both positions are perfectly consistent with an idealistic believer in free
markets who genuinely wants to what is good for everyone in the long run.
Since that is the impression he leaves, I find no dissonance at all within his
belief system.

------
sanj
"Personally, I took the pictures as a reminder that the men running Dubai’s
gargantuan companies had been given an upbringing that could not prepare them
corporate management"

Am I the only one who finds this not-so-subtley racist?

~~~
btilly
After spending the better part of a year dealing with these men and seeing
first hand how poorly they were doing corporate management, I'd take his
observations (if not conclusions) seriously.

Note that he goes on to make it clear that he doubts he would do any better if
he had their background. And one of his suggestions is that they invest in
education. Which says that he did not think they were lacking in innate
ability, and does not come off to me as a slight against their race. Only
their circumstances.

Rather than racism, I would fault him for having too much confidence in the
value of his formal education. But he redeemed himself in the following
paragraph, which I think is an insightful description of the dangers of giving
people great wealth and responsibility with little regard to ability and
competence. Perhaps he will see things as I do once he is old enough to have
seen people succeed despite having little formal education, and rich brats
fail despite having had access to every educational advantage.

------
pw0ncakes
For the benefit of those who haven't seen the prior parts: Can someone link to
parts 1, 2, and 3?

~~~
joss82
Here you are:

<http://tech.mit.edu/V130/N16/dubai.html>

<http://tech.mit.edu/V130/N17/dubai.html>

<http://tech.mit.edu/V130/N18/dubai.html>

