Lahore University of Management Sciences MBA class of 2012 Business Government Relations Course Outline

Faculty Khalid Mirza Room 313 Tel Ext: 8123 E-mail: khalidazizmirza@gmail.com Administrative Assistant Saleem A Khan Tel Ext: 8325 It is observed that while business executives may be fully engaged with, and display mastery over, operational matters, they often have little familiarity with the broader context in which their enterprises function, in particular the role of government and relevant aspects of political economy. Through a series of case studies and readings, this course is designed to give business students a sense of how governmental policies, attitudes and actions whether general or specific can affect business operations, and also impart an appreciation of the interplay between policy, process, and politics in business-government relations. Students would thus be sensitized to become conscious of what governments ordinarily aim to achieve, both domestically and internationally, as well as how the media, the government, and businesses, individually and collectively, interact with each other. An attempt has been made to address the impact of the governments domestic policies and actions, its external economic relations, and the regulatory imperative. The course seeks to persuade students to recognize the need for business enterprises to realize strategic advantages by keeping a tab on and appropriately engaging the concerned government and regulatory authorities the clear objective is to influence the governments decisionmaking, in the best interests of the business, particularly with respect to any proposed changes in laws, regulations, and policies affecting the business. Although, the primary focus is a generic coverage of the basic businessgovernment relations domain, the ambit of the course includes collateral regulatory and anti-trust issues that businesses may need to contend with (albeit these matters can be suitably covered in separate customized courses). Apart from class deliberations on carefully selected cases and readings, it is also intended to invite a business leader having considerable experience of dealings with government and government agencies as a guest speaker at one of the sessions.

Description

Classes Grading

14 sessions of 90 minutes each Class participation Assignment/Quizzes Final Exam 40% 20% 40%

Session #1

Reading: Roles and Relationships of Business & Government - HBS, May 26, 1988 (A synthesis of the work of several authors comparing the roles and relationships of government and business in a variety of situations) {Opening remarks on the subject followed by class discussion}

Session #2

Reading: The Japanese Financial System: From Postwar to the New Millennium HBS, May 10, 2001. (A historical perspective of the Japanese financial sector as the basis of policy makers to consider future options). Supplementary Reading: Japan: Free, Fair & Global HBS, January 22, 1999 (Issues confronting the Japanese plan for radical institutional reform of the financial sector and the attempt to revive the economy at the turn of the millennium).

Session #3

Reading: Speech at the Toronto Centre on July 14, 2004 (How a major program of capital market reform - that received global recognition - was achieved in Pakistan)

Session #4

Case: Singapore HBS, April 5, 1995 (Successful government intervention in a free enterprise economy) Supplementary Reading: Accounting for Productivity Growth HBS, September 14, 1994

Session #5

Case: Saudi Arabia: Getting the House in Order HBS, March 19, 2008

(Rapidly changing circumstances and developments that call for a change in policy direction) Session #6 Reading: The 2007-208 Financial Crises: Causes, Impacts and the Need for New Regulations IVEY, 2008: 908N14 (An analysis of the recent global financial crises and the emerging regulatory approach to deal with the causes of this crises) Session #7 Case: A Rogue Trader at Daiwa Bank (A): Management Responsibility under different Jurisprudential systems, practices, and cultures - ACRC (POON), 2009: HKU442 (The cross-jurisdictional legal and regulatory implications of rogue trading activity in a branch of a foreign bank) Session #8 Case: Report of the Commission appointed by the Honourable Supreme Court of Pakistan, through Order dated 2-10-2009 ---- to determine the Cost of Production and Profit Margins in the Sugar Sector (States the essence of the Sugar Industry in Pakistan and makes recommendations for a radically different policy and regulatory approach). Supplementary Reading: Unpublished paper on Sugar and Political Power by Dr Adeel Malik Session #9 Case: Order of the Single-Member Bench of the Competition Commission of Pakistan, dated April 10, 2008 in the bank cartelization case. Supplementary Reading: Decision of the Appellate Bench of the Competition Commission of Pakistan, dated June 10, 2009 in the bank cartelization case. Session #10 Session #11 A business leader with significant experience of dealings with government and government agencies will be invited to share his insights with the class. Case: State and Markets in South Korea HBS, August 16, 1995

(Interventionist trade policy vs liberal trade policy). Session #12 Case: Citibank, N.A. in China IVEY, 1997 97G016 (The struggle of an international bank to remain ahead of the curve and maintain its first mover advantage in a lucrative banking market albeit difficult regulatory environment). Supplementary Reading: (1) China (A): The Great Awakening HBS, September 12, 1997 (Managing the transition to a free market) (2) Speech at the University of Chicago Greater China Conference on the Role of the Financial Sector in Chinas Development (April 15, 2006) Session #13 Case: The Yarn Controversy LUMS, 1988: 01-030-87-1 (Government intervention and handling of opposing commercial interests in line with public policy). Session #14 Case: The Kasur Tanneries-A LUMS, 1993: 16-166-93-1 (Addressing an environment and health hazard by an industrial sub-sector and its necessary interaction with the government, the public etc.) Assignment Each student is required to submit a brief essay (in WAC format) before the 12th session that gives an analysis of the messages contained in the paper entitled "Role and Relationships of Business & Government" (discussed in the first session) and the extent to which the student is in agreement with these messages taking into consideration the cases discussed in class and the context of Pakistan.