An interesting state of the economics piece by economist Paul Krugman (pictured), "How Did Economists Get It So Wrong?"

A snippet from it here:

When it comes to the all-too-human problem of recessions and depressions, economists need to abandon the neat but wrong solution of assuming that everyone is rational and markets work perfectly. The vision that emerges as the profession rethinks its foundations may not be all that clear; it certainly won’t be neat; but we can hope that it will have the virtue of being at least partly right.

A few notes about it here.

We wrote about Krugman a while back (10/13/08). He's someone to track.

A couple of trend updates and revisits:

• Global trend update by Mintel: "Careful consumers seek relief from gloom."
• Our global trend forecast at the beginning of the year (without much gloom and doom): The Global Small Business Blog -- "Global Small Business Trends for 2009"
• Small Business Labs: "2009 Top 10 Small Business Trends"

Happy Labor Day!

Enjoy the long weekend. Take time out for yourself. Re-think things. When the recessionary storm clouds pass, you'll be ready to take on the world.

Photo credit: Laurel Delaney, The Global Small Business Blog

According to the Organization for Economic Co-operation and Development (OECD), the global economy is emerging from its worst slump since Second World War faster than it had forecast only three months ago but activity will remain weak.

Read more about it here.

Read the presentation (immediate PDF file) from the press conference.

Graph source: OECD and it reflects forecast March 2009.

Two years old but worth a look (6:06 minutes). Make sure the volume is lowered on your computer before you view.

I have been trying to track down this fantastic article (I underlined so many parts of it that I mine as well have highlighted the entire article in yellow -- it's that good) since February, 2009. I checked one more time today (see, perseverance always pays off) and finally found it.

January/February, 2009 -- AGB Trusteeship Magazine

Legal Pitfalls and Pratfalls in Overseas Ventures (Download PDF file)
by Martin Michaelson, partner in the higher-education practice of Hogan & Hartson LLP, based in Washington and New York City offices, and a consulting editor to Trusteeship.

Download it here (in case above link doesn't work):

Download PDF

Related link that we blogged about May 20, 2008:

Richard A. Skinner, "It IS a Small World After All: Globalization of Higher Education." March/April 2008.

Let's hope both Michaelson and Skinner continue to author and share additional important work like this in the future.

C.K. Prahalad, the business world's great global influencer and co-author of another one of my all-time favorite business books, "Competing For the Future," also wrote global bestseller business book, "The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits."

"The Fortune at the Bottom of the Pyramid" has been talked about everywhere for its portrayal of a revolutionary way to do business in developing countries: Build a profitable business while fighting poverty and reducing human misery.

The reason I am bringing this book to your attention now -- five years after the fact -- is because it has been revised and updated for a special 5th anniversary edition by Wharton School Publishing.

The Fortune at the Bottom of the Pyramid offers a blueprint for driving the radical innovation you'll need to profit in emerging markets--and using those innovations to become more competitive everywhere. This new paperback edition includes eleven concise, fast-paced success stories from India, Peru, Mexico, Brazil, and Venezuela--ranging from salt to soap, banking to cellphones, healthcare to housing.

Simply put, this book is about making a revolution: building profitable "bottom of the pyramid" markets, reducing poverty, and creating an inclusive capitalism that works for everyone.

Don't miss out on the opportunity to capture the world's fastest growing market -- the bottom of the pyramid -- where billions of poor people have enormous untapped buying power.

Buy the e-book version immediately here, check out Wharton School Publishing here or pre-order (available October, 2009) the hard copy edition here.

Read a sample: The Market at the Bottom of the Pyramid
Read online now: Safari Books Online

More about Prahalad:

CK Prahalad is Paul and Ruth McCracken Distinguished University Professor of Strategy at the Ross School of Business, The University of Michigan. He is a globally recognized management thinker. Times of London and Suntop Media elected him as the most influential management thinker alive today in 2007. He is coauthor of bestsellers in Management such as Competing for the Future, The Future of Competition and The New Age of Innovation. He has won the McKinsey Prize for the best article four times. He has received several honorary doctorates including one from the University of London and the Stevens School of Technology. He has worked with CEOs and senior management at many of the world’s top companies. He is also member of the Board of NCR corporation, Pearson plc., Hindustan Unilever ltd., World Resources Institute, and the Indus Entrepreneurs (TiE).

Books by C.K. Prahalad