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The Post-Berlin Aftermath: Many Walls Still Need to Be Brought Down

The destruction of the Berlin Wall and the global market
revolution that followed emancipated hundreds of millions of people.
Though censorship and various forms of state control persist in
different parts of the world today, never have so many people on this
planet been able to penetrate through the walls of information to gain
knowledge and connect with others. Estonians are members of the EU,
many children of the new Russian elite attend Swiss schools, while the
Chinese appear among the most visible tourists at the Olympic Museum
located in the city in which I live, Lausanne.

Yes, but. While justifiably celebrating the 20th
anniversary of the Berlin Wall's destruction and the progress made by
humanity, it is difficult nonetheless not to feel sadness. For in
truth, while the Berlin Wall may have been torn down, there remain
many walls that are defiantly standing and indeed new ones that have
been erected.

In the mid-19th century, the British statesman Benjamin Disraeli
described what he perceived as two "nations" coexisting in Britain yet
separated by a wall of mutual incomprehension: "Two nations between
whom there is no intercourse and no sympathy; who are as ignorant of
each other's habits, thoughts, and feelings, as if they were dwellers
in different zones, or inhabitants of different planets. The rich and
the poor."

Today there may be one globe in which elites from Mumbai, Shanghai,
Dubai, London, New York and São Paulo converge to discuss common
professional interests and share the same vintage wine, while
remaining connected to their home-base with their Blackberrys or
iPhones. But there are still the hundreds of millions of people who
are globally disenfranchised, over three billion of whom do not even
have access to a proper toilet. To paraphrase Disraeli: there may be
one globe, but there are two very separate worlds between the globally
included and the excluded.

To separate from the poor, the residences of the rich are
surrounded by high and thick walls, with barbed wire, guards and
sometimes dogs, just as the Berlin Wall separated East and West
Berliners. The film Slumdog Millionaire and even more so the award
winning novel The White Tiger by Aravind Adiga show what is needed to
cross from one side of the wall to another -- crime being one of the
few options available. These walls all over the world are likely to
get higher and thicker following the crisis and the prospects of a
jobless growth recovery. In two years the numbers suffering from
malnourishment have increased by 200 million to a staggering one
billion. With the current population explosion due to continue well
into this coming decade, the prospects for tearing down the walls
between these two worlds seem increasingly remote.

Soon after the destruction of the Berlin Wall, a new wall
was being constructed over a stretch of 1200 kilometers along the
US-Mexican border. With the destruction of the Berlin Wall and the new
era it seemed to herald, the rich countries in North America, Europe,
Japan and Australia could have been expected to create a genuine
"borderless" world by bringing down the walls to people on other parts
of the globe. But that is emphatically not what happened; rather the
reverse. In the EU, the Berlin Wall came down; the Schengen Wall has
gone up, making it more difficult for non-EU citizens to get in. Just
as the wealthy have erected walls in their own countries to keep out
the riff raff, the rich countries have turned into heavily guarded
fortresses.

Just as a borderless world is distant, we are also far
from a just and open global market economy. There are many trade walls
(usually referred to as barriers). The most pernicious are the many
that discriminate against poor countries; to cite one out of hundreds
of possible examples: the tariff rates imposed by the US on imports
from three of the world's poorest countries, Cambodia, Bangladesh and
Pakistan, are respectively 16.7%, 15.3% and 9.9%, while the tariff
rates imposed on the UK and France, two of the world's richest
countries are 0.6% and 0.8% (Edward Gresser, "Trade Fact of the Week", 14 October 2009.) As these prohibitive tariffs undermine the poor countries' growth efforts, they will help ensure
that the walls between rich and poor countries will remain thick and
high. These are among the iniquitous walls that the WTO Doha
Development Agenda was supposed to eradicate. However after being
launched almost a decade ago (2001), it remains totally bogged down
with little prospect of conclusion in the foreseeable future. Not only
are old trade walls not coming down, there are signs that new ones are
being constructed.

Walls are by no means limited to geography and economic
status. More than 60 years since Partition, the wall between India and
Pakistan remains almost impenetrable (except to intrepid smugglers!).
There is only one rather desolate border crossing -- known as the Waga
Border. (The Waga Border does have its elements, however, of flourish). In spite of professing great unity, citizens of the 22
member states of the League of Arab States find many walls in seeking
to cross from one member state to the other. And there is the wall
that isolates Palestinians.

There are multiple walls separating different ethnicities,
religions and language groups. Also, though recent decades have seen
improvements in the condition of women, still there remain thick walls
between genders. As civilization advances, freedom of choice for the
majority of individuals -- where they live, where they are educated,
where and how they work, how they live -- must become a constant goal.
Thus individuals should retain the choice to live behind walls, if
they wish, but there should be no case of persons being forced to.
Until women throughout the world are given this freedom, the
gender-walls will stand out as an indictment of humanity.

Looking to the future, one can already see that the
specter of climate change is erecting new walls between states. Not
only does this apply to the politics and negotiations of climate
change, but will be even more so in respect to those vulnerable
countries that will experience -- or indeed are already experiencing -
the consequences immediately, and those that see it as a distant speck
on a very remote horizon. Walls will soon be going up to keep out
climate change refugees.

What are the implications for global business leadership?

The general forte of business has been to go around the
walls. The Berlin Wall notwithstanding, many astute companies managed
to do great business in the Soviet Union. The same applied in South
Africa during the decades of the apartheid wall; ingenious ways were
found by the astute to continue business. Japanese businessmen, for
example, even accepted the humiliation of being labeled "honorary
whites"! Going back further into history, business was also of course
able to draw benefits from the labor found behind the walls of Nazi
concentration camps.

Business philosophy has been to accept the reality of the
walls. "Pragmatism" they call it. As we are well into a new century
and able on occasions such as the anniversary of the destruction of
the Berlin Wall to reflect on where we have come from and where we are
going to, it behooves business leaders to think differently about
walls, to envisage being part of the destruction crews, and relinquish
their erstwhile position of propping up walls. This is not only
because it is the responsible and ethical thing to do; but also
because it is the only way to ensure our survival.

Jean-Pierre Lehmann is Professor of International Political Economy at
IMD, the leading global business school based in Lausanne,
Switzerland. He is also the Founding Director of The Evian Group.
Professor Lehmann teaches on the Orchestrating Winning Performance
(OWP), Leading the Global Enterprise (LGE) and the Building on Talent
(BOT) programs.