Reading C.K. Prahalad's "Fortune at the Bottom of the Pyramid"

I met him at a Highlands Forum and he said he really loved PNM, claiming we spoke the same language.
I saw his presentation and ordered his book over my phone immediately. Later he sent me one inscribed.
We do speak the same language.
My transparency is his "transaction governance capacity."
He has corresponding definitions of Gap, New Core and Old Core:
Consider the spectrum:
1) Countries that are arbitrary and authoritarian. Laws do not exist and the laws that do exist are not enforced. Congo is an example of this situation. Private-sector development, in the Western sense, is very unlikely here. The only FDI that is likely is focused on the extraction of mineral wealth.
2) Countries where laws and institutions of a market economy exist. The private sector is vibrant. Still, the country does not reach its potential. India is a case in point. Alternatively, the GDP growth is great, but the underlying legal systems are not fully developed. China is an example.
3) Countries with well-developed laws, regulations, institutions, and enforcement systems. The United States is an example.
Another amazingly simple but dead-on insight:
That is the reason that most MNCs continue to prefer China over India: a clear preference for enforcement capacity over the legal system on the books. In China, corrupt as they are, the bureaucrats can enforce a contract. However, the corrupt in India cannot necessarily enforce contracts consistently.
More on Transaction Governance Capacity:
Corruption is about providing privileged access to resources and recognizing the time value of money. Corruption is a market mechanism for privileged access. Bureaucrats use microregulations to control access, transparency, and therefore time. TGC is about eliminating the opaqueness in the system and providing ease of access.
E-governance, then, is Anti-Corruption-in-a-Box. I get that and thus understand better Steve DeAngelis' excitement at what Enterra can bring to development inside the Gap through dynamic management of rules. Imagine the transparency that comes with that! Imagine the opportunity to reduce corruption.
We suffer the U.S. tax code (which is why TurboTax and Quicken are so liberating to so many), but those in the Gap tend to suffer such opaqueness across the board, especially in any attempts at entrepreneurship and ownership.
Which is easier to fill in, then, is the big question on India v. China: Is it easier to write the laws (China imports many--next week's column) or develop the enforcement capacity (India needs a long and pervasive Progressive-style movement and numerous T.R.'s and Upton Sinclairs.
Overall a brilliant book, like "Why Globalization Works."
Also a brilliant guy, like a Hernando DeSoto.
Very sweet man too. Joy to be around.
Want to profile him some in Vol. III.