The Honest Broker

This particular project brought me to China. I was trying to set up an operation in a remote province, far outside my comfort zone, and couldn’t seem to figure out how to maneuver among the various interests and stakeholders. My patron was one of the wealthiest men in Hong Kong, and by using his contacts, I gained access to people who normally operate behind layers of intermediaries and gatekeepers. But even these contacts led me on an endless runaround. My sources gave me conflicting advice and confusing directions. Everything felt wrong and nothing seemed quite on the level.

I knew I needed help, but had run out of options. Then I met the drunk Australian.

He wasn’t a contact on my list, and I can’t even remember his name. This was a chance encounter in a hotel bar late at night. But this hard-drinking Australian was talkative and had interesting things to say. He had spent most of his life bouncing around the capitals of Asia, and was a high-level operator in his own spheres. He bragged about his insider’s knowledge, and claimed—with some accuracy, as I came to discover—that he knew how to maneuver in China better than the clueless Westerners who were now appearing on the scene. He had traced the secret paths to power and knew all the dangerous mistakes amateurs always make.

He reeled off a list of them. “You go into a province or city and flash around some money, then expect the local officials will help you? Forget it. They’ll rob you blind, and even make you bribe them for the privilege. Same goes for the party leaders. From each according to his ability, and all that, my friend. And forget about lawyers—the legal protections here are like this”—he held up his empty glass, then flipped it over as if to emphasize the nothingness of what he was offering to the gods of Marx and Mao. “As for the bankers, you might as well call them wankers.”

The empty glass was also a sign that I needed to order another round of the local brew, and I quickly complied. My new friend fell into a meditative silence until further libations arrived. Finally, after another sip on the stomach-destroying glass of baijiu that passed for spirits at our watering hole, I asked the obvious question.

“So what do I do? Who can I trust?”

“That’s easy, mate. You need to find the Honest Broker.”

This sounded appealing enough, but I had zero idea what my new acquaintance was talking about. He might just as well have told me to go to Oz and consult with the Wizard.

“Who, exactly, is this Honest Broker?”

“There’s at least one in every city. But don’t expect their business cards to say ‘Honest Broker’—that’s just what I call them. But that’s exactly what they are. Sometimes they don’t even have an official position. But they are the key to everything.”

He proceeded to explain how Honest Brokers play a hidden but vital role in communities without a history of legal protections and stable institutions. Their influence and power is built solely on a reputation for straight talk and trustworthy dealings. “They are true brokers, intermediaries between others. They aren’t going to participate in your deal, no matter what it is. They are go-betweens, really. But do not underestimate the power of this kind of brokerage. Whatever you need—a loan, a building permit, political influence, a place to land a private jet, whatever—they will introduce you to the right people and steer you away from the sharks.

“And they do this for a very simple reason: their prestige is enhanced by making these connections. In many cases, they don’t even want to be paid. Or let me put that differently—you repay them by becoming a trusted contact for them in future dealings. The Honest Broker may help you for free right now, but don’t be surprised to get asked for assistance on something completely different months or even years later. You Yanks have a hard time grasping it, and are always looking for shortcuts. But the Honest Broker plays the long-term game, mate.

“Find your Honest Broker, and your problems will be solved.”

This proved to be valuable advice, worth far more than the cost of drinks. Over the next few weeks, I changed my approach completely. I made inquiries, compared notes, and finally found my Honest Broker—who did solve my problems, just as promised. My mission accomplished, I returned back home to California and tried to forget all about it.

I put my passport out of sight. My world shrank back to manageable dimensions, and my days were spent at the two keyboards, the piano and the word processor. I was getting back into my music groove again.

A long time went by before I realized the real importance of what I had learned in China, and how it applied to the other half of my split and fractured life. 

by Ted Gioia, The Honest Broker |  Read more:

Image: Ted Gioia