Michael Covel interviews Parag Khanna. Parag is an international
relations expert, a CNN Global Contributor and Senior Research
Fellow at the National University of Singapore. He is also the
Managing Partner of Hybrid Reality, a geostrategic advisory firm,
and Co-Founder & CEO of Factotum. Parag’s new book,
“Connectography: Mapping the Future of Global Civilization”
recently came across Michael’s desk. The concept of connectivity
does not just relate to mobile phones and Skype. There is a very
physical and tangible evolution of connectivity that can be boiled
down into three categories; transportation, energies and
communications.

Michael and Parag start the podcast off touching on what
connectivity is and then dive into the relationship between cities
and states. Parag says that there is not one single successful
state that is not built upon the stability of their successful
cities. We have more mega and viable cities than states in the
world. Cities are the drivers of growth. More mayors are sitting
heads of states or presidents nowadays than any other time in
history and think of themselves as CEO’s rather than
politicians.

Next, Parag elaborates on supply chains. The diversity of products
available today is truly global. A product can have digital design
from Silicon Valley, assembly in China, and a call center for
product customer support in Vietnam. As a business, the combination
of infrastructure investment and connecting through supply chains
to global markets makes you a real player in the economy. Michael
brings up the economical impact that globalization has made, in
particular to taxes. Apple is working with Ireland to keep their
investments outside the U.S. More and more companies are realizing
that they can operate over “the cloud.” Markets are everywhere and
sales are everywhere so investments should be able to be everywhere
as well. American politicians have been counter productive in
trying to capture taxes from some of the biggest companies in
America.

Michael brings the conversation back to China and their
infrastructure. China has made a global plan to help counties boost
their infrastructure. They are spending their own money to help
gain trust and also smooth the flow of goods in and out of
developing countries by building railways, airports and shipping
ports. Most of the world trade growth is happening across the
Indian Ocean because of the Chinese.

Next, Michael brings up country borders and the reservations
citizens may have about immigrants. No country has gained more from
accepting immigrants into their society than America Parag argues.
Parag says that unfortunately people are acting more with their
hearts rather than acting on the data. There are far more benefits
to welcoming immigrants into societies as opposed to shutting them
out. People talk about globalization doing us wrong. It is not. It
is political governments that are failing. Policies in politics are
the problem.

Michael and Parag finish up discussing the booming rise of Dubai,
and how the city is a perfect example of infrastructure growing a
city. Dubai has thought strategically about all their expansion,
from their roads to their buildings to their education system. It’s
a place that represents a leap in quality of life for people who
are on the move and doing different things.
In this episode of Trend Following Radio:

Supply chains
Connectivity
Cities vs. State
Chinese infrastructure growth
Trade
Trust among China’s neighbors
Territory borders
Globalization
Winners and losers in the 21st century
The idea of “not in my backyard”
Growth of Dubai