Video Series - "Capitalism: Success, Crisis and Reform" Douglas W. Rae, Yale

[bsteadman]

Video: 17. The Case of Mister Balram Halwai

http://youtu.be/VjBFrNW1JbE


Professor Rae discusses Aravind Adiga's novel The White Tiger. The novel reveals the difficulties developing countries face dismantling entrenched inequalities. Corruption and chronic rent-seeking behavior can be major obstacles. Other aspects of the novel, including India's religious history, the role of caste structure, and entrepreneurialism, are also explored. Links are made between themes from the novel and previous class discussions on the nature of capitalism.

00:00 - Chapter 1. Introduction
04:35 - Chapter 2. White Tiger: Darkness
07:11 - Chapter 3. White Tiger: The Stork, the Raven, the Wild Boar and the Buffalo
14:17 - Chapter 4. White Tiger: Is Corruption a Fairly Major Issue in Indian Society?
24:02 - Chapter 5. White Tiger: The Caste System in India
40:09 - Chapter 6. White Tiger: Balram's Economic Weaknesses
43:43 - Chapter 7. Video: India Background and SELCO

[bsteadman]

Video: 18. Microfinance in South India

http://youtu.be/KONSG-jdE3k

Professor Rae teaches the SELCO business case, about a distributed electric power generation scheme targeting rural Indians. In presenting the case, Professor Rae discusses several analytical frameworks for thinking through business cases, including SWOT (strengths, weaknesses, opportunities, threats), and the Porter Forces. Issues with SELCO's business model are discussed, including the scalability of their operations, and capacity to break into higher margin markets. SELCO's financing structure and partnership with a local microfinance institution are also explored. Students offer suggestions about how to improve SELCO's business.

[bsteadman]

Video: 19. Plight of the Bottom Billion

http://youtu.be/TwykQyV1hrE


In a videotaped lecture, Professor Rae discusses problems with using gross domestic product (GDP) as a measure for societal wellbeing. For example, GDP fails to capture wealth inequality and socially undesirable conditions that can increase GDP. He then touches on some of the "traps" presented in Paul Collier's book, The Bottom Billion, that are keeping the poorest of the developing countries mired in poverty. In the second half of lecture, a video of Paul Collier is shown in which the author urges the developed world to take as a model America's reconstruction package to post-WWII Europe. According to Collier, the developed world must rethink its aid and trade policies toward the developing world. Collier also discusses the relationship between democracy and the so-called "resource curse," and how the rich world can create institutions to support reformers in the poorest countries.

00:00 - Chapter 1. Introduction and Class Agenda
00:31 - Chapter 2. Video: Professor Douglas W. Rae on Paul Collier's "The Bottom Billion"
29:48 - Chapter 3. Video: Paul Collier on "The Bottom Billion"

[bsteadman]

Video: 20. Policy Targets for Capitalist Development

http://youtu.be/jk7tQJfeaV8


Professor Rae begins by briefly discussing his recent trip to Washington, where he became more closely acquainted with the health care reform bill. Professor Rae uses this example to highlight the intimate connections between capitalist market systems and the government. Then, with the help of two guest speakers, Professor Rae discusses the dramatic downfall and planned revival of one of Yale's most iconic institutions: Mory's club. Various methods for increasing the club's relevance to the contemporary Yale community are discussed, including reforming membership rules.

00:00 - Chapter 1. Introduction: Course Agenda and Washington Discussion
09:16 - Chapter 2. Mory's: History, Challenges and Future Plans for Improvement
20:11 - Chapter 3. Mory's Business Plan
45:51 - Chapter 4. Mory's Pitch

[bsteadman]

Video: 21. Guest Lecture by Paolo Zanonni, Part I

http://youtu.be/gw3xeGfM2Rk


Guest speaker Paolo Zanonni, partner at Goldman Sachs, discusses the firm's transition from a straight partnership to a hybrid partnership/joint stock corporation. The impetus for the transition was obtain the advantages of the joint stock corporation, especially in raising permanent capital, while maintaining the beneficial incentive structure of a partnership. The partnership selection process, which fosters leadership, entrepreneurialism, and conformity to the firm's corporate culture, has remained virtually unchanged since Goldman's IPO. Mr. Zanonni describes the corporate culture and values of the firm as seen from the inside.

00:00 - Chapter 1. Introduction and Course Agenda
01:44 - Chapter 2. Paulo Zanonni before Goldman Sachs
06:20 - Chapter 3. Paulo Zanonni at Goldman Sachs
20:49 - Chapter 4. Partnership Selection at Goldman Sachs
41:58 - Chapter 5. Goldman Sachs, Government and Society

[bsteadman1]

Video: 22. Guest Lecture by Paolo Zanonni, Part II

http://youtu.be/vRIRgxZEIk4


Guest speaker Paolo Zanonni, partner at Goldman Sachs, explains a major deal in the European utilities market. Enel, a major European utility, attempted to totally transform its position by expanding into the Spanish market and acquiring the Spanish utility Endesa. The deal was exceedingly complex, and involved multiple European governments, intense regional politics, and a handful of enormous utility companies. The transaction shows the important links between politics and free-market operations.

[bsteadman1]

Video: 23. Marrying the Devil in Texas

https://youtu.be/8zKG-fdjhgU



Professor Rae discusses the case TXU v. EDF, about an electric company private equity deal that involves environmental interest groups. Professor Rae structures the discussion by contrasting the deal as viewed from the perspective of Austin, TX and Washington DC. Actors in both locations prioritize different aspects of the deal differently. The case highlights the importance of the "customer voter base," and the role of public opinion toward both companies and their associated politicians. Professor Rae highlights how private companies can ally themselves with environmental groups to achieve mutually beneficial goals.

00:00 - Chapter 1. Introduction: Goldman Sachs Discussion and Class Agenda
07:58 - Chapter 2. Case Discussion: Marrying the Devil in Texas
11:58 - Chapter 3. Marrying the Devil in Texas: TXU Expansion
16:49 - Chapter 4. Marrying the Devil in Texas: View from Austin I
20:23 - Chapter 5. Video: TXU Gets You Hacking Merrill Does the Backing
22:49 - Chapter 6. Marrying the Devil in Texas: View from Austin II
25:40 - Chapter 7. Marrying the Devil in Texas: View from K Street
27:05 - Chapter 8. Marrying the Devil in Texas: View from Wall Street
30:43 - Chapter 9. Marrying the Devil in Texas: Two Worlds of Strategic Rationality

[bsteadman]

Video: 24. Capitalist Enterprise and Clean Water for a Bolivian City

https://youtu.be/QY8bMAXklEU



In this final lecture of the semester, Professor Rae gives a summary of major themes, thinkers, and cases covered in the course. He begins by reviewing some foundational ideas, including Adam Smith's invisible hand, Marxist historicism, Malthusian economics, and Schumpeter's notion of creative destruction. Professor Rae also reviews the importance to capitalism of the modern nation state, which guarantees property rights and contracts, and recalls Hernando de Soto's theories about the importance of formal property rights for developing countries. Various forms of corporate structure and ownership are discussed. Professor Rae concludes by introducing a case about water privatization in Bolivia.

00:00 - Chapter 1. Introduction, Class Agenda and Fundamentals Revisited
09:33 - Chapter 2. Capital & Capitalism
17:38 - Chapter 3. State, Property, and Capital
32:56 - Chapter 4. Wealth Maximizing Law & the Joint Stock Corporation
43:33 - Chapter 5. Creative Possibilities of a Free Society
44:52 - Chapter 6. Case Discussion: Bechtel in Cochabamba