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... ical leaders done greater damages than our four charismatic leaders of this century, "Mussolini, Stalin, Hitler and Mao" (Drucker 1989, p 102). Drucker argues that what matters is not charisma what matters is whether the leader leads in the right direction or mislead. In the present condition, Drucker sees a charismatic leader arising it our world hat could lead us toward yesterday rather than toward the new realities.
I personally like his analysis because this is what we are seeing in many parts of the world specially in Latin American. We have seen how left-wing charismatic leaders have being elected to office including Chavez, of Venezuela, Kitschier of Argentina and Lula of Brazil. Drucker is not against charismatic leaders in general. He just wonderfully points out the dangers of some charismatic leaders gaining too much power.
For example, he mentions that the most charismatic American military leader was general Macarthur and arguably the ablest one as well. "Yet in the end his charisma made him so arrogant that he brushed aside orders from President Truman, his Commander in Chief, disregarded all the warnings of a Chinese counterattack in Korea, and blundered into disastrous -and totally unnecessary military defeat (Drucker 1989, p 103). In the 'Transnational Economy- Ecology' chapter, Drucker explains us that "no matter how powerful is a country, it can not always expect to maintain a long comparative lead in technology, in management, in design, in entrepreneurship and in innovation" (Drucker 1989, p 122). He says that there are always going to be competitions that will keep repositioning the great superpowers. He mentions that the final new reality in the world economy is the emergency of the transitional ecology, which is a concern for the ecology, the endangered habitat of human race. He further says that the endangered habitat of the human race will increasingly have to be bring together into an economic policy. " We still talk of government protection as if it were protection of something that is outside of, and separate from, man, but what is endangered are the survival needs of human race" (Drucker 1989, p 127). He let us know that the destruction of the ecology on which humankind survival depends is thus a common task of all of us.
He says that to face this issue, it will require a major change in the way we think about the ecology. Drucker points out also that it is very important to protect the transnational economy. He says that just as important as the protection of the nature habitat against the inroads of economic activity is the protection and regulation of the new man-made economical habitat, the transnational economy (Drucker 1989, p 130). "On it depend the jobs, the livelihood, and the standard of living of practically everyone in the non-communist world, both in the developed and in the developing countries' (Drucker 1989, p 131). Drucker sees the need of international law that could establish the duty of government to protect, conserve, and to defend during wartime the people's property of non-combatant civilians of enemy nationalities as long as they refrain from hostile words and acts. He further suggest that " international law should codify the common interest which all countries in the transnational and interdependent economy have in restoring prosperity once the fight stops (Drucker 1989, p 13). In the Paradoxes of Economic Development chapter, Drucker says that the key of this paradox is that the two sides-those who see failure and those who look success-look at two different things (Drucker 1989, p 134). "One looks at what development was supposed to be and it then has indeed been a failure and the other see the development that no one expected but that actually happened" (Drucker 1989, p 134).
He mentions that the policies that did work in the last forty years were very different from those developed by economists and politicians. Drucker says that successful development in the nineteenth century was based on leadership in innovation and technology (Drucker 1989, p 142). In his brilliant analysis, Drucker says that we now know that economic development is not easy and is not fast either; he says the first thing that it does is it makes poverty more visible and harder to accept-precisely because it first develops a middle class. He continues to say that there is no formula or a warranty for a new economical policy to work but Drucker says that "the success of the last forty years show that it can be achieved" (Drucker 1989, p 148).
It is not Drucker intention to tell us which policy have worked and which have not, but it's Drucker intention to make us understand the important of drawing a good economic policy because even if the policy does not work, it creates a precedent that with a good leadership in decades to come, it could be achieved. In chapter twelve, Drucker declare out that "the biggest shift, bigger by far than the challenges in politics, government, or economics, is the shift to the knowledge society in all developed non-communist countries" (Drucker, 1989, p 167). He articulates that the social centre of gravity has shifted to the knowledge worker. Drucker says that "all developed countries are becoming post-business, knowledge societies" (1989). Drucker gives credit to education as an factor that had helped our society to move to Knowledge society that we have now. He says the knowledge has become the capital of a developed economy, and knowledge workers the group that sets society's values and norms and finally affecting what we mean by knowledge and how it is learned and taught (Drucker 1989, p 169).
As a result of the success of business, Drucker says that the 'capitalist' has become economically irrelevant in developed countries (Drucker 1989, p 172). Drucker says that 'capitalist' have both less economic power and far less political power than they had before World War I (1978). Drucker mentions the great businessmen - "a John D. Rockefeller, a J. P. Morgan, an Andrew Carnegie, an Alfred Krupp - were Marx's capitalists" who could finance entire industries out of their own pockets, and who were able to control the means of production (1989).
But today he says that the America's one thousand richest people today (according to figures in the September 9, 1988, fortune Magazine) would barely cover the capital needs of one major American industry for a few months. The employees through their pension funds are now the capitalists. Indeed Drucker mentions, "no one today, not even the fattest oil sheik or the richest Japanese real-estate billionaire, has as large a fortune (adjusted for inflation and taxes) as had each of the "tycoons" of 1900 " (Drucker 1989, p 172). If all the "superrich" of the developed countries suddenly disappeared, the world economy would not even notice. They have become "medio events" whose comings and goings are featured in the gossip column rather than on the financial page; economically, they have become irrelevant (1989). Drucker says that the shift to knowledge and education as the passport to good jobs and career opportunities means, above all, a shift from a society in which business...
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