Economic crisis… blame the MBA’s?

May 21, 2009

This week I listened to an article on NPR (American public radio) which suggests that the MBA’s were highly implicated in this economic crisis (click on “listen now” 7 min. article). If you consider that all CEO’s, CFO’s, economic planners, and many influential politicians (including presidents) had earned their MBA’s from these prestigious schools, have they not been infected with some type of hard core capitalist virus? Have they not been thinking about making profits instead of creating real wealth for the society?
Of course, the professors of business schools declare in their interviews how stupid it is to put the blame on them. Actually for me, it does not make a lot of sense to blame their education to what has been happening all around the world and all types of industries. However I would say they are guilty of something.
First of all, I should say I probably have a bias. My background is in business studies and economics, however I mingle with many economist, who having been disenchant with the mainstream economic have entered the realm of Economic Geography. When I could have done an MBA in United States or Spain, I preferred to go to Scandinavia to do a Masters of Innovation and Entrepreneurship, with a good dosage of Evolutionary Economics.
Where I think they’re guilty is on not having told their student enough about economic cycles (see my previous post to get an idea). That businesses and economies come and go, surge and plunge. I have several friend in the US and Spain with MBA’s, I know their classes and I believe this is somewhat missing. I mean, it’s something really basic. You don’t grow in a linear way. Economic growth, should be more understood as Economic evolution. You can’t make a business plan of how a business it’s going to evolve. Stories that have been told for ever (the 7 fat and 7 lean cows anyone?) were discontinued. This never ending economic growth mentality, not only happened in the mentality all across the industries, also happened with the Goverments, and the majority of the citizens.
So NPR’s article while is wrong, goes in the right direction. However, many blame the economists for having created all this bubble, and not having predicted it. But I actually believe the problem is that we don’t have, in our business schools, society and government, enough real economics.

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2 Responses to “Economic crisis… blame the MBA’s?”

  1. Jason Says:

    I dislike the “do absolutely anything to win” mentality that is reinforced in school. There needs to be an emphasis on good values that would create long term growth instead of the “I’m better than everyone” that creates short term growth. They don’t listen to people and can’t see what they are missing. I hope you know what I mean.

  2. Carsten Says:

    The crisis will be soon recovered, and then all these things will be forgotten.


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