Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail

by Ray Dalio

Most believe that the general population will choose the leaders on whims and based on what those seeking to be elected will give them in order to buy their support rather than what’s best for them. Also, they believe—like Plato believed and as has happened in a number of countries—that democracies are prone to slip into dysfunctional anarchies during very bad times when people fight over what should be done rather than support a strong, capable leader. They also believe that their system of choosing leaders lends itself to better multigenerational strategic decision making because any one leader’s term is only a small percentage of the time that is required to progress along its long-term developmental arc.7 They believe that what is best for the collective is most important and best for the country and is best determined by those at the top. Their system of governance is more like what is typical in big companies, especially multigenerational companies, so they wonder why it is hard for Americans and other Westerners to understand the rationale for the Chinese system following this approach and to see the challenges of the democratic decision-making process as the Chinese see them.