Since last summer, I have been visiting the UK almost every two months on business. I’m amazed at the rapid development that COGNANO have experienced in the last six months. This rapid progress has led me to wonder if there’s a specific UK strategy driving it. I assume that, behind this robust business scene, there may be enduring strengths at play, inherited from the era of the Great British Empire.
Comparison between UK and Roman Empire
The British are known for their love of history, and they are supposed to have read ‘The History of the Decline and Fall of the Roman Empire’ by English historian Edward Gibbon. (However, the exact percentage of the British who have read this book remains unknown.) Some people say that UK took a leaf from Roman Empire’s book in the management of its vast territory. The Roman Empire achieved glorious feats during the Era of Five Good Emperors, including the conquest of Gaul, the unification of the Mediterranean world and Christianization of the territory. This empire was the first in human history to establish essential societal structures such as written and spoken language, currency and religion that were universally used across the nation. The establishment of these social fundamentals 2,000 years ago is comparable to the implementation of the internet today. The central government of the empire collected taxes and recruited skilled individuals from conquered regions in exchange for providing social security through military forces. Locals in the colonies were granted Roman citizenship if they excelled in military service. Some Roman soldiers deployed in the colonies chose to own land and marry local women to settle down.
The UK was once a military superpower, much like the Roman Empire, establishing colonies around the world. Its colonial management styles, however, differed in some respects from those of the ancient empire:
- British administrators rarely married local women to settle down overseas. After completing their assignment terms, they usually returned to the UK.
- Locals in the colonies were not granted the right to obtain British citizenship despite their obligation to serve in the military.
- UK government had no ambition to Christianize people in the colonies.
- The Roman Empire accepted crops as tax payments, while the UK accepted industrial labor in a similar manner.
UK as Maritime Superpower
The Roman Empire economy was predominantly based on agricultural products whereas the UK economy relied heavily on trade. The UK profited by selling domestic goods to its colonies, and by mediating trading between the colonies. British businessmen saw little benefit in settling down overseas as they were constantly traveling in search of new business opportunities. Thus, they preferred living out of a suitcase in contrast to the ancient Roman businessmen who favored a settled lifestyle.
Power Centralization and Industrial Revolution
To secure safe navigation routes for trading, the UK needed a stronger centralization of power than the Roman Empire. The British monarchy likely supported this centralization of power to ensure the stability and security needed for trading. The wealthy individuals who emerged during the Industrial Revolution sought to avoid imposing heavy taxes on the colonies. Their attitude toward taxation contrasts sharply with that of the ancient Romans, who viewed taxes as a necessary price to pay for land ownership, similar to the tax system during the Edo Shogunate period in Japan. The overall tax rate in the Roman Empire, including poll and land taxes, was estimated to be between 10% to 20% of the crops. In contrast, the UK had no fixed tax rate; it varied depending on the situation, with taxes primarily imposed on business profits. These differing tax systems reflect the contrasting colonial management philosophies of the two superpowers.
Loss of Commons and Rise of the Rich
The industrial revolution in the UK created a need for larger-scale farming and cattle breeding to meet the growing demand for agricultural produce and wool. The need prompted proprietors and aristocrats to privatize and enclose common lands - a movement historically referred to as ‘enclosure.’ This conversion transformed common lands into individually owned properties. Consequently, rural communities were displaced, compelling residents to migrate to urban areas and join the industrial workforce. Proprietors and aristocrats enormously benefitted from the enclosure movement, making a huge profit through large-scale farming and investments on emerging businesses. In contrast, most of traditional community residents were deprived of their commons (natural and cultural resources accessible to all members of a community), and were left with no choices but to become urban labor workers.
This enclosure movement changed the social structure in the UK and played a key role in setting the stage for the rise of capitalism. At the same time, it marked a turning point in the course of UK history. Before World War II, the UK was competing with Germany for the position of the world’s top industrial nation, and managed to maintain the status until about 40 years ago. But after the war the UK fell behind the US, followed by Japan, and then China in its share of international product market. Many workers in the manufacturing industry have lost their jobs and transitioned to the service industry. The Roman Empire fell due to the pressures from foreign religious and ethnic groups, such as Germane tribes and Muslims. It was the sheer forces of capitalism that caused the UK to decline.
Brexit and New Vibes in London, Cambridge and Oxford
Facing tough times with the loss of colonies and a decline in military and industrial power, the UK must have struggled to devise a strategy to turn things around and restore its former greatness. Attempts to rebuild once-thriving maritime state are no longer feasible. What strength does UK retain aside from its Royal family, then? The nation still retains two key strengths: scientific expertise and its language. Anybody from any part of the world can come to the UK to develop career, provided they speak English. The opportunities on offer could attract top global talent in science and business to the UK. If you consider the Nobel Prize as an index of success, it’s noteworthy that the UK ranks second in the number of prize winners, accounting for 15% of all winners, just behind the US with 30%. British novelist Kazuo Ishiguro, a Japanese immigrant to the UK, won the Nobel Prize in Literature. Immigrants to the UK like Ishiguro are achieving great accomplishments in various fields across the nation. English is a handy communication tool for advertising and the British people have a knack for crafting compelling sales pitches.
My assumption is that the UK, who found itself at the brink of decline at the turn of the 21st century, has embarked on an all-out revival campaign, leveraging everything it has: its scientific expertise and the global influence of the English language. Open policies toward foreign individuals and capital have transformed London, Cambridge and Oxford into vibrant cosmopolitan cities, where immigrant residents comprise 40% of the population. In particular, people from former British colonies such as India, Hongkong and various African nations, as well as those from the Middle East and other Asian countries, are thriving in these cities.
It seems to me that UK has decided to jump on the globalization and online bandwagon to stay ahead of the game. Today, all information is accessible through the internet and most prompts are in English. The last 20 years have seen currencies and services shift to a realm which was once referred to as a virtual space. On the surface, either the US or its rival China seems like a dominant player in cyber space, …
The UK was the creator of a game referred to as capitalism and once took the lead in the game, but has nearly ended up on the losing side. The end of Cold War and the emergence of cyberspace, however, completely changed the rules of the game, creating a favorable playground for the UK. I’m confident that the Anglo-Saxons won’t let this fortunate opportunity pass up. It’s a sink or swim situation now.
The UK is offering powerful incentives to businesses, attracting intellectual and informational resources from all around the world. The country is now enjoying the second largest investment globally, after the US. In the US, you must continuously deliver quick results to stay in the game, whereas in the UK, there’s a prevailing ‘give-it-a-go’ mentality. This mentality serves as a powerful driving force, attracting a diverse range of business people to the UK. In the last six months, even a small overseas startup like COGNANO has enjoyed great opportunities for business experiences and gained inspiration through interactions with a wide range of partners, from individual investors to big-name companies.
Epilogue
The Exhibition of King Tutankhamen is being held in London. On display are some of the burial items from the tomb of the world’s most famous adolescent pharaoh in ancient Egypt. The exhibition reminds me of the following anecdote.
In 1922, British archeologist Howard Carter, who was patronized by Lord Carnarvon, was engaged in excavation work in the Valley of the Kings, south of Cairo. By that time, most of the ancient Egyptian kings’ tombs were believed to have either been robbed or excavated. No one was confident that there would be any tombs left that remained undiscovered and intact.
Running out of funds for excavation and given a final notice by Carnarvon, Carter made a last-minute effort to investigate the ground beneath the huts, which had previously been dismissed as worthless. Much to his surprise, he uncovered many glittering gold objects and a perfectly preserved coffin containing Tutankhamun’s mummy. Archeologists had been fixated on the incorrect perception that ancient Egyptians would not have built structures like huts above a king’s grave.
There’s more to this anecdote. Series of mysterious deaths followed the tomb’s discovery among those associated with the excavation, creating a sensational buzz among the public as ‘the curse of Pharaoh Tut.’
I remember finding the anecdote quite intriguing when I first read it in grade school. It taught me two lessons that seem like two sides of the same coin: only a contrarian can take it all, but you end up paying the price for what you’ve gained. It sounds rather ironic, doesn’t it?
I’m wondering how the anecdote about the discovery of the King Tutankhamun’s tomb would resonate with British businesspeople, who are so keen on setting trends in a cut-throat business climate. Perhaps they only see its bright side.
Now folks, how much would you bet on the revival of the UK?
This is edited by Dr. Kimio Fujii for english.