for life to return to normal and even longer to rebuild. that is all we have time for that coming up next e w business takes a closer look at how consulting corporations influence and governments around the globe. i many groups mccain and thank you for watching the how to kicks in the south china sea. why ships are here? what this is supposed to mean. the hoss of the global conflict of to decades of chinese extension is in the nation is resisting with us in the course of a powerful incentive on september. first. 2 as a kid to make sense of how the world works, sometimes imagined a group of invisible people who read everything. they turned red lights, green,

dissolved traffic jams, made sure there's running tap water. once i got older, i realized there was no global cabal running the world, but there are management consultants. a lot of them. they design hospitals and prisons, advice governments on the climate crisis and map out the cities. they even help build up entire economies, but they aren't elected politicians to most people. they remain in the shadows, but they work for many of the world's most powerful governments. and some say they are gaining more and more influence. so let's explore those hidden worlds and look at how consultants have captured the government sector and what it means for societies around the world that's coming up on business beyond. consultants have become a big deal over the past decades. you might already know some of them estimate, say the consulting industry expanded from $100000000.00 to $1.00 trillion dollars in the past 2 decades. but what is our consultants?

garris and lovely used to be one. ready ready ready ready it was the, the most depressed i remember being by adult is more than that later. the term consultant has brought it essentially just means someone who's higher to give professional advice. like how to improve a company's profits. consultancies themselves promise nothing less than to make the world a better place. so you want to advance the world. give it a push. move it in the right direction. there are many different types of consultancies, but in this explain or we will look at management consultancies. mckenzie, boston consulting group, b, c, g, and pain and company. the 1st 2 we will be focusing on, they are the most prestigious firms in the industry. the firms that do management consulting pitch themselves to young college students at a top school. so it's like the place to go to solve hard problems and work with the smartest people. i think they also pitch themselves as like more outro,

mystic and more publicly interested. then you know, goldman sachs, or bridgewater, or some other lead financial institution. and among their biggest customers, are governments, rosie calling to and wrote a book about this exact phenomenon. we know that spending on consulting companies pretty much everywhere by governments has steadily increasing for the past few decades. management consultants have been hired to solve and economic crisis and costa rica design the smart city in kenya, or roller cove. it vaccines in france, an impressive track record, but some experts are warning that the consulting industry isn't all it promises to be the consulting industry. it has expanded not necessarily because it is able to create value for. busy economies and societies for organizations, but actually because it invested in the ability to create a, to create the illusion of bobby,

to create the perception that is creating value before we dive deeper it, let's take a quick look at how we even got here. age 18 hundreds. the 2nd industrial revolution companies like general electric star to employee engineers on a short term basis. the contracting model spreads so called consult and started optimizing manufacturing processes across the us and europe. by the mid 19 twenty's, even lennon and trotsky ask in american consultant to develop the national industries of the soviet union. but that's just the beginning. after the 2nd world war, consultants start carving out more space and the public sector at one organization in particular. the us space agency, nasa, people are going to go to the move and the question was, did you want to hire an enormous number of people to work in the american federal government when this was politically unpalatable? or did you want to find some sort of structure literally,

how are we going to do that? how is the state and do that? 3 years after it was founded, 85 percent of mass as one $1000000000.00 budget went to outside contractors. one of the main recipients, mckinsey hiring consultants, became attractive to governments for 2 main reasons. firstly, they have expertise, steven funded by looks into how the public sector can be reformed. and we can actually work with people who do this all the time. rather than having the civil servants who will work on such for you to as well as apply for the lifetime. and secondly, they are flexible. i need someone here and now what can i find that i can the highest one of the public sector? this takes way too long. in the 1980s consulting found a new fuel, some governments began slashing what they believed for bloated ranks of civil servants aiming to make the public sector more business like heres former

us president ronald reagan talking about it outside of its legitimate functions. government does nothing as well, or they cannot make late as the private sector of the economy reg and then the us sometime minister, margaret satcher in the u. k. outsourced more and more government work to consultancies. in 1979, the u. k. government was spending around 6000000 pounds on consulting, 11 years later that amount was more than 40 times larger. that has been this, you know, again since the 1980s. i kind of growth in the assumption. oh oh, and imagine some entrenchment of the assumption that simple 7 saw, you know, not necessarily the most innovative people pay up, up, pay for pushes, and then you know, that, that idea is like contrasted with the idea of, of the management consultant who is, who represents the kind of private sector ingenuity and an innovative potential.

the dissolution of the soviet union in the ninety's opened a whole new market for consultancies and those international monetary fund and the world bank spread new liberal policies across the globe. so the public sector consulting so to summarize, behind the consulting goal is this idea of government should not do things that you see, it takes, government sets the policy. all this is to manage the execute policy. we don't do policy, we do execute and is also lines that consultancy stress in 2017 mckenzie was doing just that for the us immigration office ice then us president at the time donald trump has the string of executive orders. they significantly increase the number of immigrants eligible for deportation. garrisoned lovely wasn't analyst on the project. and the mckenzie project like fully dropped behind this and all hands

on deck to figure out how to comply with the executive orders. mackenzie's mission, hiring more ice officers, speeding up deportations and cutting costs. their recommendations included, cuts and spending on food for detain migrants. some stuff on the side of things were actually concerned about the severity of, of the recommendations coming from mckenzie. because mckinsey lots of things and like spreadsheets and its like optimizing and turning dobson widgets and everything to like make some process like cheaper or faster, whatever the, the metric is to optimize for and you know, it, when the metric is like the putting more people faster or more cheaply, you can imagine how that has like really negative repercussions. mckenzie stopped consulting ice in 2018. some of its recommendations were never implemented, but the case still opens

a question when you're working for immigration and customs enforcement and the administration changes to the trump administration. and then you go full in on helping the trump administration implement. it's very harsh, you know, immigration policies, how can that not be political? so i'm also worried that living profit driven companies execute government policies can mean a clash of values. mackenzie makes the public sector more at the private sector. there is a potential there for, for a clash of values. uh huh. i'm all convinced that go with citrix. so wouldn't be able to take those decisions itself. so government also has a pretty bad record in making probably the volume driven decisions. mackenzie declined to provide a comment for this video, and there's another issue that's being flagged. consultancies don't just make deals with democracy. it's. mckenzie has consulted ukrainian oligarchy, kremlin linked russian companies, and the south african government,

under former president, jacob's luma. one of mackenzie's and pc g 's largest clients, saudi arabia, in 2023. the kingdom spent nearly 2000000000 euros and consulting services compared to the rest of the world. the tasks, mackenzie and co take on in the kingdom reach much deeper into governing territory, including advising the kingdom, sovereign wealth fund, worth more than $900000000000.00, and helping to construct a mega city in the desert. saudi arabia's ministry of economy and planning has even been dropped. the ministry of mackenzie says siri for like, mackenzie work in saudi arabia where at least like that, that kind of justification that will be given as something like we'll be able to provide some force will help them like open up and you know, help empower women and modernize the economy and, and do all these things. but there is evidence that their work goes further in 2016

. it can be prepared to report for the saudi government to investigate the popularity of their policies. it included a power point slide, identifying 3 people had been critical of the regime. one of those people was arrested and other people, a person of the account disappeared and another person of his brothers were arrested. so there's, you know, bad things happened after mackenzie made this slide deck. mckenzie defended itself by stating the slide was prepared for internal use only. and this is not the only time they've come under fire. if you have like saturday b as a quiet, you have to like, be deferential to saudi arabia to some extent, to continue, continue working there in 2018, saudi american journalist stomach shogi, was assassinated by agents of the saw the government, the killing put a strain on traditionally strong us ties with a kingdom. in the aftermath,

many was firms boycotted an investment summit in the country, but mackenzie and b. c. g, stayed on, and even lead paneled discussions at the event. according to the new york times, both firms have stated they decline work in the country linked to military and defense. but still, critics say what mckenzie is doing and saw your ravia isn't in line with an image. it projects like their code of conduct, which says we have the duty to speak up and to never engage in harassment or discrimination. mackenzie itself. it likes to think of itself as a moral company with values. um, it's, uh, it's got all these values, you know, and it takes them very seriously. rosie also pointed out possible conflict and consulting governments across the democratic spectrum in countries are less democratic, which have both or it's higher in government sense that and the consultancy companies might be both digital or in theory could be wielded in ways that further

of escape. the power and decisions of those making these decisions. earlier this year, the us congress question the c g and mackenzie for failing to declare details about their work for the kingdom. and this isn't the only time consultancies have advised both sides of the geo political table. at the beginning of this year, mackenzie c o. bob stern, felts, was questioned about its work for chinese companies. looks looks like most of your clients, like the china communications construction company. this is a firm that is blacklisted by the united states government. this is a state on enterprise that is responsible for building artificial islands in the south china sea. probably indirect contravention of international law. certainly indirect contribution to united states security interest. you help them develop their 5 year plan. my question is, why should you be able to get any contracts the united states government? if you're going to advise for

a nation to our hospital to us and make gobs of money off of them, why should you be getting us government contracts center we've never worked with the chinese communist party or the central government in china to the best of my knowledge you're working with state owned enterprises. this is, this is time is not a democracy. mackenzie's work and saudi arabia and china shows a concerning side of government, consulting, their profit driven company advising governments and their arrivals. and until now they've gone largely unchecked. mckinsey works with all the most of the biggest companies in the world, works with governments around the world, works with non profits around the world. we can't buy the idea that mackenzie's for profit, so you can company and it's a moral the get ready for an excited d, auburn toyota. so little surprised. hi,

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