In business circles, one of the most popular topics of conversation is Asia and its booming economies. Much of this talk still focuses on the traditional areas of low cost manufacturing and a growing middle class. Many Westerners still view Asia as a market, albeit a growing one, and from the viewpoint of exports, goods and/or production.
In the meantime, Asia is moving west. Investments are far reaching -- in New York City alone, Chinese investments in real estate surpass $1 billion, including leases at 1 World Trade Center and the Empire State Building.
Less obvious but equally impactful, however is the subtle "cultural colonization" transpiring on the global stage.
It is a process that reminds me of the dual track followed by the American influence on Europe after the Second World War. In those years, the US started to massively export their products to a recovering Europe. This push backed by their enormous internal consumption, the innovativeness of their business approach, and the financial support that they were giving to the ailing European economies.
At the same time, Americans were also exporting culture. American music, cinema, way of living -- they all became an inspiration and an aspiration for our societies. In a sense, the US was also "colonizing" us in a more intangible way. While that has never been completely accepted by Europe, and the "American way" has always been also criticized and at times ridiculed, it is true that America was establishing not only a financial influence on Europe, but also a cultural one, and one reinforced the other.
Now look at Asia and China in particular. We are increasingly interested in a holistic approach to health, one based on concepts like energy flows and balance and as a result, we are consuming great amounts of homeopathic remedies, acupuncture, reflexology, massage chairs, and the like. Indeed, even the UK National Health Service (NHS) has been offering acupuncture for the past several years.
In the 90s, the West embraced Feng Shui and today, home buyers and designers are seeking enhanced wellbeing, health and wealth by embracing 'Vastu,' an ancient practice based on the energies of the earth, water, air, fire and space. It's not just for Asian homeowners; Vastu Shastra is being applied to corporate buildings, including the first Microsoft building in Kirkland, WA.
The list continues -- there are more and more Asian influences in our gastronomy. Increasingly, we look at the quality of Asian "services" as an example to pursue for our service industry (think Asian airlines, or Asian hotel chains). And so on.
In some cases, the quest for Asian investment goes hand in hand with promotion of culture. Case in point, Liverpool. Today, facing high unemployment, a diminished manufacturing sector and twice the national average of people on benefits, the city is casting its view overseas for investment, with China top of the list. As noted in a recent Economist article, the city's investment arm, Liverpool Vision has established an office in Shanghai and developers are looking for Chinese investment to rejuvenate Liverpool's dockyards with plans including a 60-story 'Shanghai tower.' And what will visitors come across when they tour the new Museum of Liverpool? The East meets West exhibit documenting the city's twinning with Shanghai; and an online area to explore Asia trade and artifacts.
Equally, entrepreneurs across Asia are enjoying the economic advantages of exporting their culture. Indeed, the Shaolin Temple is one of the most powerful Chinese brands today and the temple has 'exported' its cultural activities via its kung fu performance troupes, establishing Shaolin kung fu and meditation centers across US and Europe and licensing of its name for film, cartoons and other productions.
Over the past few years, I have also witnessed a lot of multinational companies, like General Electric, Philips, Siemens and many others, relocating their product development organizations to Asia, and populating them with local talents. General Electric talks openly of "reverse innovation," sourcing concepts and ideas from Asia for the global market. This will allow the cultural influence to translate into products that will be "invented" in Asia and will become a hit in the West, thus reinforcing the impact of that region on the world economy.
Isn't all this somehow similar to what I described for the US? And if that is true, shouldn't we look at Asia with different eyes, as a source of trends and inspiration, rather than as a "market" for our economies? But also, shouldn't we also recognize that culture too has a powerful economic value? I think it is an interesting question to ask ourselves, particularly at a time when cultural initiatives are under increasing pressure of big budget cuts, the ones we believe are necessary to secure our economies.