Schramm on Rose: Entrepreneurship and Economic Recovery?
In a world ravaged by wars, natural disasters and economic turmoil, the need for new ideas to meet the marketplace has seldom been more pronounced. In a
recent interview with Charlie Rose
, Carl Schramm, President and CEO of the
, suggested that the key to economic recovery in places that have been affected by conflict or natural disasters could be as simple as supporting entrepreneurship locally.
During the interview, Schramm discussed his new article in the May-June issue of Foreign Affairs magazine entitled “ Expeditionary Economics—Spurring Growth after Conflicts and Disasters .” Based on his experience at the Kauffman Foundation promoting entrepreneurship in U.S on areas hit particularly hard by the recession, such as New York and Detroit, Schramm explained how the entrepreneurial principles that have worked in the U.S. can work almost anywhere else.
In discussing the impact of entrepreneurship throughout the world, Schramm pointed to India and China as prime examples of the sort of growth that can occur when people embrace an entrepreneurial mindset. His article theorizes that the rate of new business formation is one of the best variables for predicting economic growth. Schramm carries this argument further to say that this lesson is applicable in Iraq: increase the rate of business formation, and GDP will grow faster.
Charlie Rose asked whether it matters that the startups are indigenous, and Schramm answered that it does matter. Using the example of the U.S. in the 1800s, Schramm explained that in order for an economy to sustain itself, growth must come from within. He argues that this type of self-reliance will create not only economic growth, but also political stability.
For the full interview,