Capital Wars: the new East-West challenge By Daniel Pinto

Date: 25 Apr 2014


Daniel Pinto is arguably one of the most important men in the private wealth-management business in the UK if not the world. Running a substantial multi-family office, which counted more than 130 families recently, he has a long history of dealing with the financial services industry on behalf of such individuals. His new book therefore deserves to be read. What it offers is a bird’s eye and in-depth global view of what is happening to our economy and why the East is getting the better of the West. It also offers a step-by-step guide on how to deal with the banking industry and the relentless and restless share¬≠holders and disillusioned company executives who are out for a quick buck. He reveals interesting facts about the finance industry in London, which has a large proportion of managers who are in organisations with less than 200 people. Many of these are feeling the strain of the regulation being imposed on them which is out of pro¬≠portion to their size compared with the global banks ‚Äì but the regulatory bodies are making no distinction. Pinto says this is causing the important, globally respected, finance industry to begin to wither.

The book is full of interesting facts which would be very useful if documented separately to help us focus on how we should be counteracting what can seem like a constant barrage of bad news.

Pinto shows us many things, which include how the bail-outs have given us a false sense of security and haven’t prepared us to sharpen up our businesses with cutbacks and innovation to help us deal with the onslaught of Chinese business nouse. Also how China has carefully re¬≠crafted its economy and mindset to put the government behind funding private entre¬≠preneurs in great contrast to the UK, for instance, which has very little funding now available for private enterprise. China is now focusing on setting up cluster businesses with long-term strategy to create whole industries backed by surplus government money with five-year plans that don’t require any profits to be made.

Pinto says there is a triangle of government, funders like venture capitalists, and entrepreneurs that need to realign to help us go up against this economic tour de force. He looks at the rise of the middle classes and the effects for countries like China who need to improve domestic consumption and reduce the mindset of saving. He shows us India which is replicating the American effect of one percent of the people with all the wealth. Little money has been spent on infrastructure which Pinto sees will bring great problems to the government in coming years. He also makes an interesting observation about Raj or Indian entrepreneurs and their abilities. European advice says stick to core businesses and don’t diversify but Indian entre¬≠preneurs seem to be able to have multiple global successes in industries that have no correlation.

The book is easy to read and comes with some positive messages for the West that corruption in these formidable countries will be their burden because it affects everyone including the middle classes who will grow in strength and voice and create difficulty for these juggernaut economies.

Buy the book on the Bloomsbury website

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