goes a long way in the Countryside!
Jim Cook
, China enthusiast since 1985
Management Strategist
On the occasion of : China Rural Reconstruction Seminar on : March 3, 2014
Sponsored by : China Entrepreneur Network and the
Detroit Chinese Business Association
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor

Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

“ So you're the one who's going to solve all our problems, welcome!”
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

They came, they saw, they crapped on us, and then flew away
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

Clue: Not Gandhi
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

Urban Speak Rural Speak
Work is an exchange for money Work is an exchange of sentiment
Governance is central and by rule of law Governance is local and by rule of nature
Law trumps sentiment Sentiment trumps law
Rules are made to benefit people Rules are made to benefit nature
Economy is by symbols (brands, prices, ..) Economy is by accommodating the earth
Motivation is for money
Old age care is from pensions
Motivation is for sons
Old age care is from sons
Wish is for Spring all year long
Pets are there to be served
Wish is for four well behaved seasons
Pets are there to serve
Boasting and bragging are commonplace Honesty and frankness are commonplace
Social order from invoices and laws Social order from trust and integrity
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

 The countryside will have contradictions (farmers will milk cows every single morning before 8, but would hate punching a clock).
 The countryside will have stability up to some unpredictable point that involves many dimensions and/or many standard deviations.
 Once a wide fluctuation (like the US Dust Bowl in the 1930s) upsetting a symbiotic balance occurs, the countryside may take decades or never return to its previous stable and robust state.
 The experience of the countryside in one place will not necessarily transfer.
 Diversity is at the core of the sustainability of the countryside’s existence; destroy it and you will destroy the countryside.
 The Countryside is more like a baby than like a machine; it will flourish with love and die with exploitation.
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014


Villages are as diverse as their land and history
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Respect villagers’ real abilities, character and values
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Be patient, let villagers trust and tell you their needs
 It’s vital to be fluent in the villagers’ values and culture
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Villages are complex societies (as contrasted to Cities)

Disturb their robust stability and it may take decades to recover
 Experience may not be transferrable even from similar places
 The countryside is more like a baby than like a machine

Ignoring above has been the major source of set backs!
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
Slide 10 of 10
March 3, 2014

“The universe is full of magical things patiently waiting for our wits to grow sharper.”
Eden Phillpotts (1862-1960)
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

 This powerpoint and the accompanying transcript are at: http://cha4mot.com/CEN-CRR.ppt
http://cha4mot.com/CEN-CRR.doc
 A review of The Rural Way by Sun Jun is at: http://cha4mot.com/theruralway.html
 An analysis of Mao as Entrepreneur (1927-1947) is at: http://cha4mot.com/mao in English & Chinese
 The DuPont Business Case for executing Step Change is at: http://cha4mot.com/HBS-step-change-case.pdf
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

Villagers are:
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As resourceful as they can be given their current context.
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More anxious to better their lives than ordinary Urbanites.
 Not brand followers, rather choose to fill real-life needs.
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Driven by different values and behaviors than Urbanites.
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Highly dependent on the their location and its history.
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Not going to be helped by “one size for all” programs.
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Too deferential to local and central government officials.
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Going to be helped by creative alliances & flexible support.
 Not going to be helped by usual ways of MNCs & SOEs.
 THE MOST PROMISING MARKET IN CHINA TODAY!
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

 Political dynamics of initiating and sustaining village action.
 Priorities that Villagers themselves have in any given village.
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Behavioral culture of Villagers as contrasted to Urbanites.
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Past experiences with outsiders coming into villages to help.
 Rhythm of the season’s impact on the Villagers’ daily lives.
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Aspirations that Villagers have for their families and lives.
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Things taken for granted in the city like security, water, sewage.
 Impact of “progress” on existing relationships and social power.
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Way that I &/or my initiatives might be accepted and rejected.
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014

 Investigate the “Base of the Pyramid” opportunity space.
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Check out
“The Rural Way” by Sun Jun
( 农道 , 孙君著 )
 Tap Michigan’s special access to China New Countryside Projects.
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Intern with a New Countryside NGO or team up with a Project.
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After research, try innovating some business models for Villagers.
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014


President, CEO of NASDAQ Listed Company (Software Tools) and on the board of two publicly held and numerous private companies, all high technology
 President, CEO of Exxon-Mobil financed venture (Electronics)
 President, CEO of Globatech, Inc. in Beijing (Japanese financial portal)
 Vice President (Technology) Computervision, Fortune 500 Company (CAD/CAM)
 Taught MBA courses at UCSD (Economics of Mfg.), Worcester Polytechnic
Institute (Advanced Mfg.), and U. of Melbourne (Entrepreneuring)
 Lectured on management at: Northeastern U., People’s U., and Chinese Academy of Sciences; BS math RPI, graduate math MIT, on CCTV news with Jiang ZeMin
 Consulted on management to: DuPont, Motorola, Bell Labs, D & B, Fiat, …
 Interviewed 6 times on FNN (now, CNBC Financial) about High Tech investing.
Rural Reconstruction Seminar of CEN
University of Michigan , Ann Arbor
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March 3, 2014