June 30, 2005
Daily linklets 30th June

Before we dive in, two things. Firstly I've added a section to the left sidebar with a link to the Daily Linklets category, so you can trawl your way back through past links. Secondly, last night the Sitemeter ticked over 300,000. Thank you.

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[boomerang] Posted by Simon at 16:43
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Not for all the oil in China

Hemlock gets to the heart of the CNOOC/Unocal takeover:

CNOOC wants to buy Unocal, and the Beijing-owned parent has obtained low-cost financing, courtesy of the Chinese taxpayer, to trump rival bidder Chevron. That’s not an even fight. But who’s subsidizing whom? Who wins and who loses?

From Chevron’s point of view, it’s not fair. But assuming CNOOC’s bid passes muster with regulatory and legal authorities, that’s too bad. Chevron has ‘lost’ one potential opportunity but still has its money and the possibilities it offers. Unocal’s owners are clear winners, getting a juicy price for their asset. We CNOOC owners gain an overpriced acquisition at subsidized financing costs – let’s say it nets out. So does that leave the Chinese taxpayer as the main possible loser? Or are the sneaky commie hordes the ultimate winners?

Is Beijing being clever in spending public money on securing long-term, overseas sources of essential commodities – copper in Chile, coal in Australia, oil in especially odious bits of Africa and so on? Does it contribute to long-term national security or simply the leaders’ sense of autarkic, centrally planned well-being? Wouldn’t it make more sense to invest the funds in the domestic economy today, in order to create the wealth to buy raw materials at their global market prices in decades ahead? Like countries not run by paranoid cliques do.

So, I am stuck with this conundrum – will ultimate control by a paranoid clique make CNOOC a more or less profitable investment in the long run? Paranoid cliques make bad decisions. But bad decisions have unintended beneficiaries.

Other Reading

Lots of other commentary on the attempted takeover, the geopolitics and what it all means...

* How would you spend $700 billion?
* Paul Denlinger says the CNOOC bid challenges the lack of a coherent China policy, which is what my discussion with Pundita on the same topic concluded.
* China Hand thinks the real story behind the bid is Wall St.'s hopes for a China-driven M&A binge.
* Todd Crowell discusses China's next long march.
* Jack Risko proclaims China ain't Japan and sorts the facts from the hype.
* Krugman on the Chinese challenge.
* Imagethief tells everyone to get over CNOOC's bid and includes a helpful "yellow peril" scorecard, with a few solutions to American worries about shadowy Chinese bureaucrats controlling the US economy.
* China Hand notes this is America's chance to turn China away from dealing with rogue states in its quest for energy security...something for the anti-China crowd to keep in mind.
* Alex Tabarrok fisks Krugman's China article and rightly calls him a liberal demagogue. Brad DeLong has a kinder take on Krugman's article.
* Crooked Timber highlights the issue of free trade versus national defense. It comes down to whether you prefer to trust or suspect.
* Alex Tabarrok points to a couple of sensible thoughts on the CNOOC bid for Unocal.
* CNOOC's Unocal bid is becoming a PR and lobbying slugfest.
* For an in-depth look at the real game in the takeover, check Quillnews's take on the 3-D chess for oil.
* Winston Marshall.
* Bill Rice is asking readers for there responses to some important questions raised by the CNOOC-Unocal deal.



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[boomerang] Posted by Simon at 14:48
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» asiapundit links with: cnooc roundup




June 29, 2005
Post Communist China

Plenty of debate China focusses on the Communist Party (CCP) and its (mis)-rule. The question is not if the CCP will fall, but when. But that question implies another which is seldom addressed by the China punditry - what next? Should the CCP fall, what kind of Government will emerge? While most hope for a democracy, is that likely? Is that even desirable? What kind of support will a post-CCP China need and will it get it?

One clear lesson from the Iraq war, regardless of its merits, is the need to look beyond the change you desire to what comes after. That is the debate we need to start today. I welcome your thougts on the topic. Naturally I have mine...

The key to the answer is how the transition happens. What comes next depends on what happened before. If the CCP implodes under the weight of its own contradictions the evolution to a new system of government will differ significantly from that which comes about through a popular uprising. If a popular uprising is violent or peaceful is another key difference. China's changes of government have tended to come about through violent overthrow. A peaceful transition will be a novelty. The influence of other countries, in particular China's significant neighbours (Japan, Korea) and America, will be crucial in the transition. It is impossible to say how each country would re-act, but here's hoping they have each at least considered the possibilities.

Can democracy work for China? It has been often cited that China (excluding Taiwan) has never had universal suffrage. On the other hand India provides an example of a massive and diverse country that successfully runs election after election. Yet many argue that India's democracy has hampered it in its race for growth compared to China. To some extent that must be true, because totalitarian governments can make decisions without heed to the short term interests of the voters (although that assumes such dictatorships are enlightened enough to have their population's longer term interests at heart).

A lack of democratic tradition can mean a country that rapidly changes to a market liberal democracy can just as quickly slide back into a more murky and bastardised version of the same. To wit, Russia. The countries of Eastern Europe have more successfully made the transition. But Russia is the closest, albeit imperfect, forerunner of China's past and future. A vast country nominally ruled from a dominating centre but with strong regions, Russia and China have both historically been "top-down" rather than "bottom-up" countries.

How do you ensure a democratic China emerges? There has to be external support for the crucial elements such as rule of law and universal suffrage. But far more importantly there has to be popular legitimacy. The people of China have to want a democratic system. It is not clear to me that that is the case. A crucial part of the longer term planning for a democratic China needs to be direct communication with the Chinese people to explain and re-enforce the democratic ideal.

But the planning cannot stop there. The reality is any successor democracy in China will be an imperfect one. The key becomes prioritising. Which parts of a liberal democracy are more important to get right? Should it be getting the economy in order? Installing a government elected by universal suffrage? Implementing and consistently enforcing laws and regulations? Eliminating corruption and graft? In an ideal world all of these and more would be addressed simultaneously. But that's not going to happen in practice. Who decides the priorities and how?

This is the dilemma of the Bush Doctrine of bringing democracy to the world. What happens when democracies elect your enemies, such as in Iran? Such a scenario isn't difficult to imagine for China. Should the CCP be toppled, a nationalist party would be expected to dominate any successor government (and I'm not talking about the KMT marching trimuphantly back across the straits...necessarily). The result could be a more nationalist, insular and beligerent China rather than a more benign one most expect. In short, democracy is a double edged sword.

Turning to another issue: if not democracy, then what are the alternatives? Unfortunately the most likely is the CCP gets replaced with a similar entity. Perhaps not the same ideology (although what does ideology matter to today's CCP), but the same format: central government that is nominally kow-towed to by the regions but in reality is largely subservient to them. Much of China's history has been one of pledging alliegence to a distant emperor, paying the usual tributes but otherwise running the place how you like. Without significant action the same is likely to be true in the future.

My conclusion is simple: as much as the China punditry wishes for it, an eventual Chinese democracy is no sure thing. Far from it. It is one thing to document the evils of the CCP and hope for its demise. It is quite another to plan for a post-CCP future. But it is an urgent task that needs to begin now.

Any ideas?

Other reading

Naturally Joe Katzman (if you're not reading Winds of Change, what's wrong with you?) has several important additional links and thoughts. His final question:

Once the problem is framed in terms of requisite variety, could it be possible to have a non-Democratic China Post-CPC, that nonetheless takes steps in the right direction and so sets the stage for coping now and positive change later? What could that look like?
An interesting "what if" would be to ask what if the KMT survived the civil war and war against Japan and was still ruling the Mainland? Would something along the lines of modern Taiwan have evolved across the entire country, not to mention the 70-odd million lives that would have been spared Mao's meglomania? Joe's question suggests a kind of Pinochet Chile writ large. David's comments also makes sense to me: that China will require "a corporatist authoritarian structure rather than a pluralistic democracy".

To repeat my main theme: most China pundits hope for a fall of the CCP and a liberal democracy for China. My question is whether that is realilstic or even feasible? And most importantly, how do we make it realistic and feasible?

Pundita replies

Pundita replies with What China can learn from India. She discusses the grassroots attempts at democracy already going on in Chinese villages and expects China to modernise via democracy. The problem with the village democracy experiment is it is largely meaningless - most local village chiefs hold next to no real power, answering to township or county cadres. The experiment smacks of token-ism. However her point on a Chinese style democracy is a telling one. There's no monopoly on a democratic model. I'm just not sure China will get to that point.

Daily Demarche

Dr. Demarche takes the idea one step further, asking how would the US and the world react should the CCP be overthrown.



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[boomerang] Posted by Simon at 14:56
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» Winds of Change.NET links with: Post-Communist China
» GZ Expat, Part II links with: What next?
» The Jawa Report links with: Wednesday's Blast Around the Blogosphere (UPDATED: Awesom-O Edtion)




Signs of success in China's IPR Crackdown

Mrs M is visiting Shenzhen today on her regular shopping adventure. Ringing from our usual DVD lady, she reports they are only selling TV series today because of recent crackdowns on movies.

Is nothing sacred?

Not to worry. It should be business as usual in a few weeks.



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[boomerang] Posted by Simon at 14:32
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Daily linklets 29th June

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[boomerang] Posted by Simon at 13:21
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» tattoo links with: tattoo




Horse play

Yesterday it was the heat between Hong Kong and Beijing. Now for today's compare and contrast:

From the SCMP:

Huge cooling fans spread along a shorter cross-country course will ensure horses do not suffer in the heat and humidity if the equestrian events at the 2008 Beijing Olympics are held in Hong Kong, a senior Jockey Club official said yesterday.

Executive director Winfried Engelbrecht-Bresges said the Jockey Club's comprehensive plan to bring the equestrian events to Hong Kong - estimated to cost $1.2 billion - was primarily built around the safety of the horses. They would also arrive early to acclimatise to the conditions.

And from the same paper, one section over:
The government has proposed compulsory energy-efficiency labelling for power-hungry electrical appliances, hoping to save up to $135 million in electricity a year.
Does the idea of setting up giant fans over a 6 kilometre open air course sound like a good use of electricity to you?



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[boomerang] Posted by Simon at 09:25
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June 28, 2005
Daily linklets 28th June

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[boomerang] Posted by Simon at 17:05
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» small dead animals links with: Let's All Wake Up, Con't




Prioritising

The Don began his governorship of Hong Kong with a speech to Legco. After the predictable rantings of Hong Kong's last Marxist, Sir Bowtie faced the only group in Hong Kong that don't like him: lawmakers. He said democracy was a low priority for his government, which is clearly true. The most popular politician is in the job anyway, even if the process for getting him there is a travesty. In other words, right result but wrong method. It also means the turn out for Friday's march is likely to be on the low side, not helped by the organisers mixing the issues with a gay rights campaign.

Naturally the first thing The Don did was commisssion a survey of 1,200 Hong Kongers to see what they really do want. The list is below the fold. If it's to be believed, Hong Kong people are more worried about the HK-Macau-Zhuhai bridge and poultry slaughtering than democracy, but rank "encouraging people to give birth" below Article 23 legislation and the Container Terminal 10! Will The Don accept such low priorities on his pet projects? More interestingly, is Hong Kong entering an era of rule by opinion poll?

The Don has clearly set out a list by which he can be judged. Accountability; responding to public opinion; sharing government priorities. My God, it's democracy by stealth! Let's hope Beijing doesn't find out.

From the SCMP:

Bowtiepriorities.jpg



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[boomerang] Posted by Simon at 09:52
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Hot enough for you?

The fuss over Hong Kong's attempt to stage Olympic equestrian events continues. Compare and contrast these two articles:

Firstly the SCMP reports "Olympic horses 'could die in HK heat':

Equestrian expert Tang Pui-tat has warned that horses could die in the heat if Hong Kong hosts the sport during the Beijing Olympics..."Will horses which come from cooler climes like Europe be able to cope in the hot and humid weather conditions we experience in August? Some horses could die, especially during the gruelling eventing which combines jumping hurdles and cross-country," Mr Tang said.

Organisers want to move equestrian events to Hong Kong because they cannot guarantee an equine disease-free zone in Beijing.

Fair point...let's turn to Xinhua from last week:
A heatwave gripped 13 provinces and regions across the country yesterday with the mercury hitting 42 C in some parts, meteorolical officials said...In Beijing, some parts registered 39.4 C - and the ground temperature was a scorching 50 C.
It's no cooler in Beijing. Those European horses better start some serious sauna work.



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[boomerang] Posted by Simon at 09:30
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June 27, 2005
Daily linklets 27th June

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[boomerang] Posted by Simon at 14:36
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» Barbarian Envoy links with: Miller's Light
» The Peking Duck links with: Hey, she was just trying to make a living....




Notes from a small island

Three pieces of news from the Big Lychee:

1. Spam is a constant problem. But naturally Hong Kong has taken the problem to a new level, merging it with the city's obsession with mobile phones. From the SCMP:

Most mobile phone users want the government to regulate uninvited advertising on mobile phones, a survey by the Democratic Alliance for the Betterment and Progress of Hong Kong showed. The party will put forward a Legislative Council motion on Wednesday after 93 per cent of 1,018 people questioned demanded government regulations.
Only 93%? That implies 7% of phone users are happy with phone spam. No wonder it keeps happening.

For those unaware of the phenomena, at random times of the day and night your phone will ring before you are subjected to a blast of Cantonese hawking anything from phone plans to phone deals.

But the solution is obvious. You allow mobile users to "opt-in" for phone spam. Why would they? Simple - those who opt in get lower call or plan charges. The mobile operator then collects a fee from the phone spammers. In other words, pay for the pleasure of spamming.

2. Friends of the Earth released a Sunday space filler lamenting the artic air conditioning that dominates Hong Kong. I don't see the problem. What's the point of accumulating great wealth if you can't fritter it away? Please see USA, gas guzzlers road beasts for another example.

More seriously this proposal to raise air con temperatures in Hong Kong could have dangerous long term economic effects. The fashion retailers of this city rely on the freezing interiors to entice the punters to spend on winter outfits for a place that would otherwise never need them. And the tai tais would have nowhere to flounce around in their latest designer gear. Won't someone think of the tai tais?

3. Visited Cityplaza at Tai Koo Shing with the family yesterday to see the exhibition of dinosaur skeletons. But far more impressive than the bones themselves was the sea of humanity squeezed into the place. A heaving mass of confusion and cameras amid the chaos, it was so typically Hong Kong. As I pointed out to Mrs M, would even a quarter of those people have turned up if the bones were at a museum? Not likely.

Hong Kong should immediately change its museums into shopping centres, immediately. Greater attendance and plenty more money for exhibitions. A win-win solution. If they run the air con at 16 degrees Celcius, they'll really be onto something.

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[boomerang] Posted by Simon at 12:50
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June 25, 2005
On golden land

Interesting piece in The Economist on the troubles with China's land policies (no sub req'd for this one). It discusses the corruption and problems of rural property rights, for example the recent riots (captured on video) in Shengyou. It includes this key passage:

In the village of Maxinzhuang in Shunyi, one of Beijing's rural districts, hundreds of peasants have been protesting for the past month over compensation for the requisition of their land to build a water-sports complex for the Beijing Olympic Games in 2008. “There are no human rights,” muttered one protester, after local police ordered your correspondent to stop interviewing them. Several Chinese journalists have visited the village, but their reports have not been published. The authorities are clearly anxious to avoid tarnishing the image of Beijing's Olympics preparations.

Maxinzhuang's villagers are clearly aware of the high value of their land. Early last year Shunyi's Olympics venue supervisory body agreed to give the village nearly 95m yuan ($11.5m) for its 90 hectares (222 acres) of land, much of which had been used for growing maize and wheat. This is around twice as much per hectare as was offered to Shengyou village. But in both cases, peasants worry that only a small fraction of the cash will trickle down to them through the greedy grasp of corrupt officials.

Do you think the IOC has a policy on this? Here's hoping this gets broader mainstream media attention. Part of the IOC's decision to award Beijing the Olympics was on the basis of improving China's human rights record as the world's spotlight falls on Beijing.

Time for the IOC to put its mouth where its money is.

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[boomerang] Posted by Simon at 17:49
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June 24, 2005
Response to China's new left

As I expected my piece on China's new left (deliberately not capitalised) provoked mixed reactions. I hope to compose a rebuttal of the comments made both here and at Richard's either today or tomorrow. My full response is below the fold.

I recommend this collection of other reading on the same topic:

* Richard's original post: China's New Left seeks to rein in market reforms and his summons to his minions to denounce debate the issue.
* Richard Willmsen's well-considered thoughts on China's New Left, who concludes the new left are mere window dressing for the CCP leadership.
* Asiapundit's original comments on china's new left are on the same wavelength as me.
* The excellent Zenpundit asks will China's new left be a force to reckon with? A short but incisive piece.
* Imagethief rightly says the point isn't income gap - it's opportunity.
* Manuel L. Quezon III article New Left movement emerging in China could challenge United States (found via his blog).
* Adam Morris joins the fray: The New Left. Not "new" but very "left".

Your thoughts and comments are welcome. Now read on for my response...

The first part of my response is to cover the ground the vast majority share. None of us are fans of the CCP in its totality. We all want to see a successful and vibrant China will the spoils widely shared. Today's China is a far from perfect place, economically and politically. On that we can all agree.

I will again recommend you read Hayek's Road to Serfdom. Other relevant readings are China's (Uneven) Progress Against Poverty and Edward Kaplan's China Economic History (thank you for the pointers).

Amongst all the critiques I've still yet to have anyone spell out precisely what new left thinking actually is. Richard agrees with Martyn on this:

The ideas of the New Left are a natural and welcome consequence of, and progression from today's system where the political and economic elite pillage the nation's wealth, while tightly controlling society with an iron grip, fire rockets up into the air and allow anti-Japan riots in the name of patriotism and social stability.
That implies the new left is a guise for socialism as a successor to the current system. It is just a touch ironic that the successor to the failure of central planning and Communism is socialism. Marx would be turning in his grave at this inversion in the progression of revolutionary change. If my characterization of the new left is wrong, please direct me to a clear and lucid exposition of their philosophy. Until then it very much seems the new left is the old left reheated, like those supermarket products proclaiming themselves "new and improved".

Let's be honest. No country or economic system truly afford equality. Richard compares me to Ayn Rand when I say that people are different. Guilty as charged. Again if anyone can point me to research showing we are all exactly the same, I'd be much obliged. Until clones walk the Earth, we are blessed in our vast diversity. As an aside, it is ironic that those most devoted to the concept of diversity and celebrating differences also work so actively to minimize those differences. Equality is a chimera, an impossible dream that is dangerous to pursue. Why dangerous? Because the sacrifices made in its name do not justify the result. The ends do not justify the means. Very simply, unequal does not mean unfair.

Some took exception to my pie analogy. Martyn laments China's share of world GDP has gone from 1% to 5% in the last 30 years. During a period of unprecedented global economic prosperity, China outpaced the world to such an extent it has increased its share of world GDP by 5 times! I'm not a shill for the CCP but whether it was because or in spite of them (more on that soon), since Deng took the helm the country and its people have been the beneficiaries of what can only be described as a miracle. Martyn, forgive me but I'm popping the bubbly and thankfully there's several hundred million people just over the border able to afford the same. Martyn also falls into a common trap:

According to the IMF figures 2003, out of 179 countries, China's annual GDP was US$1,087 per person or 110th in the world. That's less than half the average per capita global GDP.
In economics there is a concept called purchasing power parity. In English it means a dollar in one country is not the same as a dollar in another. Quite simply you get more bang for your buck in China than you do in the United States. The latest estimate is China's PPP per capita GDP is US$5,600 (from the CIA's China factbook). I've written extensively about this and other China's economic issues elsewhere on the site.

Richard's turn. Let me quote from his comment:

If you think this [his agreement with the new left] makes me a communist sympathizer, what can I say? Their argument resonates with me, meaning I agree that many of the impoverished and exploited Chinese deserve better and need help.
I always suspected, but now we have proof! Richard is, at least in this case, a Commie! Even worse, he compares me to Ayn Rand and then agrees with my sentiment! Richard, you're one confused fellow.

More seriously, Richard's original post was honest is seeing through the empty rhetoric of the new left. If I did not make that clear in my original post, I will do so now. But it doesn't wash. In the very same comment Richard excerpts Martyn's thoughts that the new left are the natural progression and great white hope. For a group that don't stand for anything, that's quite a statement.

Who's responsible for the China economic boom? I will read the book Richard recommends. But even if you say that all Deng did was undo the excesses of Maoism (and he did far more than that), it was a crucial and massive step for the country at that time. Deng's famous Southern tour is the second biggest travel event in modern Chinese history. I don't have the time or energy to devote to this topic, but either by providence or good planning (or both) the CCP have been the stewards of China's economic miracle. I highly recommend a read of ZenPundit's short piece on this topic:

the " correct line" on China's economy was decided in the contest for power between Hu Yaobang and Deng Xiaoping after the fall of the Gang of Four. Then subsequently reaffirmed in the adoption of Deng's " Four Modernizations" and the aftermath of Tiannamen in 1989 when elderly Maoist senior statesmen limited their crackdown to political dissent and did not try to reverse economic liberalization.
I will look into this more in a future post.

Naturally there are valid points being made. China's current system is not perfect. There is plenty of corruption, nepotism, guanxi, onerous government officials and more. Richard hits the nail on the head:

in China there needs to be protection against corrupt and venal officials who know that the poor and disenfranchised are easy targets for highway robbery. And in this regard, I believe the New Leftists are correct. Sometimes people with no representation need help.
If only he had omitted that middle sentence, I'd agree. The problem with China's system is the lack of participation, of redress, of protection of property rights - in sum, a lack of rule of law. This is the point Chris drove at in suggesting the new leftists look to de Soto. But the new leftists don't offer any solution to this.

While on the badness of the corruption of China's system, David's incisive comment bears repeating in spades:

Jean Oi had made some interesting arguments about the kleptocracy, corruption and nepotism in China. She raised the possibility that far from impeding growth in China, the initiative of well-placed cadres sitting astraddle both quasi-state, quasi-private assets appropriating them for their own needs may actually have assisted GDP growth.
The argument is this: corruption, or 'bureaucratic deviance' provided the requisite level of fixed capital formation to create enterprises with economies of scale. Without high levels of fixed capital investment, China would still be a backwards agrarian nation...it seems that the United States in the late 19th century, in the age of the robber Railway barons, corruption, insider trading, nepotism and 'guanxi networks' were also indeed the way America got enough capital together to generate sufficient 'steam' for the economic locomotive of the American economy to really get going.

Obviously, in large developing nations depending largely upon domestic capital investment (i.e. including Korea, Taiwan and Japan but ruling out Singapore and Hong Kong) this perhaps may be a necessary but insufficient condition. Nigeria, Burma ad the Philippines are examples of this. It requires that the government have some limits on the scale of the corruption, enough to maintain a self-sustaining mechanism...

While it is true that China today is seeing a rising inequality between rich and poor, much like America did in the late 19th century (and as your interlocutors say, since the Reagan-Bush era), overall the country is becoming a more prosperous place...that overall the growth that China has undertaken over the past quarter century has benefited the largest number of people and has taken more people out of poverty than any other regime in history, and we should be lauding this achievement rather than denigrating the scale of difference between the village hut and the millionaire's skyscraper.

Smart fellow. Do his tour. Tom notes the growing inequality in America since the Reagan era. A quick reminder: Bill Clinton was President for 8 years between the two Bushes (and I dare say that's not the only time Bill's been between two bushes).

The other Richard suggests the new left is using European social democrats as a model. He's right which is why the new left are wrong. The formerly great social democratic economies of Europe are now laggards. It is no co-incidence that when Eastern Europe was faced with a choice between social democrats or a more Anglo-Saxon model, they chose and have had great success with the latter. I fully agree with his conclusions:

I don't think that China's New Left are in any way insincere about their project of bringing social justice to China. But I think they're misguided and possibly naive about the organization they are members of. Unfortunately I think their efforts only go to provide window dressing for the Party leadership - it enables them to say 'Look! We have open debate inside the Party! No need for dissidents! Don't you see how wrong Wei Jingsheng and all those other foreign agents were? China is marching straight down the road to democracy all by itself and we don't need any advice or criticism from outside!'
The new left are fig-leaves for more sinister forces who seek to reverse the gains made by China's market based economy in the past 25 years. They represent a dangerous combination of nostalgia and social engineering. Think that's overly dramatic? Any system that strives for equality must forcibly take from some to give to others. It is one thing to provide support for the poor and destitute (a point Hayek makes). It is quite another to go from a safety net to a blanket. ZenPundit notes the political dimension:
But these inchoate anticapitalist forces may try to outflank Party centrists on issues of nationalism, particularly on Taiwan and Sino-American relations and thus acquire a larger constituency for their economic policies while driving the centrists toward a harder line. They bear watching.
So the new left are both empty and dangerous. The last word goes to Adam Morris in commenting on Imagethief's important additional point:
I appreciated Simon's point that (paraphrasing) "it doesn't matter who has the bigger pie as long as it's getting bigger" but thought that there was something missing in that equation. I'm glad you pointed out it was unequal opportunity.
That is a telling point that was missing from my original post. I'm glad it was made. The same point applies in America and elsewhere. A governments' role is in creating and giving access to opportunity and then letting people get on with it on their own.

Let me conclude on a positive note. The path for continued economic success for China is based on two simple truths:

1. Strengthening of rule of law and property rights.
2. The expansion of and increased access to opportunities.

Call it my New Rightist manifesto.



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[boomerang] Posted by Simon at 15:46
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» asiapundit links with: late saturday links




Daily linklets 24th June

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[boomerang] Posted by Simon at 15:11
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» tdaxp links with: Blogosphere Analysis (Vital Information for Bloggers)




Endangered fast food of the day

A Japanese burger chain has started offering whale burgers:

The 380 yen ($3.50) slice of fried minke whale in a bun went on sale Thursday at Lucky Pierrot, a restaurant chain in the port city of Hakodate on Japan's northernmost island of Hokkaido.

"The taste and texture are somewhere between beef and fish," said Lucky Pierrot manager Miku Oh.

And the contender for statement of the year goes to the very same Ms. Oh:
"e have decided to add a whale burger to our menu due to strong demand from our customers and feel very thankful to the whales for allowing us to make the burgers.
If only the whales could thank her back.

Sinoeye says "the Japanese are too sophisticated to waste whale meat on burgers." Apparently not. We'll wait for Yobbo's first hand report as to the taste.

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[boomerang] Posted by Simon at 09:44
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June 23, 2005
Daily linklets 23rd June

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[boomerang] Posted by Simon at 18:57
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June 22, 2005
China's new left

The other day Richard had a post titled China's New Left seeks to rein in market reforms. It links to an article called China's inequities energize New Left, which is a more balanced view of this group. I've posted a comment on his thread (reproduced below the fold) which has some additional ideas not mentioned in this main post. Let's look at this in greater depth and please feel free to join in.

When looking at an issue, it's important to look at what the terms mean. So what does New Left mean?

...a loose coalition of academics who challenge China's market reforms with a simple message: China's failed 20th century experiment with communism cannot be undone in the 21st century by embracing 19th century-style laissez-faire capitalism....the New Left's adherents don't offer a coherent set of alternate policies.
The group is defined by what they oppose rather than what they stand for, the death knell of any political group.

The 'New Left' are worried about China's growing income gap but without any solutions. Is the income gap worth worrying about? No, with a but. If you think of an economy as a pie, it doesn't matter if the allocation of the pie is uneven, so long as the pie itself is growing. Is that true in China's case? Clearly the answer is yes. Witness the massive rise in living standards for literally hundreds of millions of Chinese citizens. It is the most rapid poverty allieviation in history. Yes, there is still plenty of crushing poverty in China. But it is decreasing at a rapid rate, not thanks to trendy pop concerts or dollops of foreign aid, but thanks to a quasi-capitalist economic system.

China's system is far from perfect. Cronyism and nepotism are rife. Government interference and direction in enterprise is rampant. Rule of law (in both enforcement and courts) is patchy at best. Unsurprisingly this has been China's economic way for much of its history (by the way, has there been any definitive economic history of China - if so can someone point me to it). But in terms of results, the current one is working, and working in spades. The 'New Left' alternative isn't even an alternative:

critics of the New Left, such as Professor Shi Yinhong, director of the Center for American Studies at the People's University in Beijing, say the group has no real alternative to the current global economic system.
Richard cannot help but have a go at America's economic system while he's citing this article.
What the New Left is saying resonates with me. Jiang is most responsible for today's wasteland of corruption that fouls so much of the country, resulting in a nation of obscenely rich cowboys riding roughshod over the people. Now, we have this situation in America, too, especially under our current regime, where might (i.e., money) makes right. But we do have controls for reining it in, as we saw when some of the more repellent aspects of the "Patriot Act" were rejected last week. And we're sending the Tyco robber barons to jail where they belong. I think wherever you have capitalism, you're going to have this situation to some extent; the owner-worker model lies at the heart of capitalism, making it, as they say, the world's worst economic system except for every other system.
America is the world's largest, richest and most successful economy of all time. There are plenty of Chinese citizens who would gladly have American style income equality in return for something like American living standards. Richard's right in one respect: inequality is a key part of the capitalist system. That's because people are all different. Shocking, I know. Just like we cannot all be gold medal hurdlers, we cannot all be wealthy tycoons.

To Richard's credit he notes the vacuousness of the 'New Left':

If the New Left's strategy and tactics were a bit less amorphous I'd be more optimistic. Right now, it sounds like a lot of ideas without much of an action plan.
Sounds a lot like the Democrats.

Update For more comments and my response to the comments below please check my response on China's new left.


My original comment to Richard's post:

Let's do a simple comparison. China's swing from Communism to its current quasi-capitalism has seen several hundred million people lifted out of poverty in the space of a few decades, the fastest rise in history and far more effective than any number of trendy pop concerts. The current system is being compared to "19th century laissez-faire economics" but with no basis in fact. A consequence of capitalism is some do better than others. Here's a newsflash for you: that's because some people ARE better than others...some in art, some in music, some in tennis, some in commerce. It's called being human. The problem with Communism is it doesn't work because we are not all the same. Likewise efforts at artificially dealing with income inequality. If you force equality you simply drag 50% of the population down to the average in order to drag the other 50% up to it. Is that fair? I suppose it depends which side of average you fancy yourself. And if forcing equality sounds like a good idea, I suggest you read Hayek's Road to Serfdom and come back to me.

What are we talking about here? The article Richard sites says:

the New Left's adherents don't offer a coherent set of alternate policies. Some are hard-liners, who say they rue the violence of the Maoist years, but remain enchanted with the sociopolitical initiatives of that period, such as collectivization.
This is what you're all praising and lionising? A slogan in search of an ideology? A yearning for collectivization, the system that lead to massive famine?

If someone can define New Left for me, we can start a proper debate. In the meantime let's call these people what they really are: reheated nostalgic Communists. Or from the article:

The degree to which the New Left's rhetoric meshes with that of the government's indicates that President Hu Jintao and his team are tacitly supporting the New Left.
Read it again. And again.



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[boomerang] Posted by Simon at 19:15
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» The Peking Duck links with: New Leftists debate over at Simon's World




Daily linklets 22nd June

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[boomerang] Posted by Simon at 16:32
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Drugs and AIDS in China

Today's must reads: the Jamestown Foundation's regular China Brief. The two highlights are Frank Ching's look at Hong Kong's leadership shuffle (nothing new but a good summary of the issues at hand) and especially Drew Thompson's The "People's war" against drugs and HIV/AIDS, which disucsses the intersection of China's acknowledgement and clampdown on illicit drugs with its AIDS control campaign. Here's the conclusion but the whole article is worth a read:

As anti-drug efforts intersect with the HIV/AIDS control agenda, the nexus can potentially lead to greater provision of comprehensive drug addiction treatment and temper uncompromising approaches towards drug users and harm reduction within the security and justice apparatuses. The threat of an HIV/AIDS epidemic has made the government and the public more sensitive to the issues of intravenous drug use. Preventing and harm reduction may ultimately require more services to both rural and urban drug users, as well as inmates within the detention system, including treatment, counseling, education, and even skills training to help drug abusers reintegrate into society upon their release. The urgency with which the Chinese government is addressing HIV/AIDS raises the potential for international or multisectoral cooperation within the detention system which would likely lead to incremental reforms and increased transparency.
At the same time the SCMP reports on promising drug rehab efforts in Yunnan province. Article reproduced below the fold. It's promising when countries approach the drugs issue as a health issue rather than a police one.

Yunnan province is to launch a pilot programme designed to put all drug addicts into rehabilitation centres in the latest effort to fight narcotics abuse. Authorities conducted three surveys last year to verify official records and found there were 68,000 drug addicts in the province.

Sun Dahong, vice-director of Yunnan's Public Security Bureau, said the province hoped to expand the capacity of its rehabilitation centres to accommodate 68,000 people in three years so that each addict could spend three months to two years in a centre. The present capacity is 36,000.

He said many addicts discharged from rehabilitation centres returned to their old habits because they did not stay in the centres long enough. "Three months should be enough for them to get rid of the addiction physically, but not psychologically," he said.

Yunnan will also promulgate laws to penalise local officials who do not report cases of drug addiction and there will also be new regulations to isolate HIV-positive drug addicts from other addicts.

The government will also provide funding to help addicts with drug rehabilitation fees. Drug addiction is a criminal offence on the mainland, with addicts sent to mandatory rehabilitation programmes, but they have to pay for their stays in the centres. If they are caught again after being discharged, police can send them to labour re-education centres for up to three years.

Li Yuanzheng , a deputy director of the Ministry of Public Security's narcotics control bureau, said the government had started experiments in five provinces to estimate the number of drug addicts through epidemiological methods.

Only recorded cases are shown in official statistics. Mr Li said the estimates derived from epidemiological methods ranged from 1.6 to 2.2 times the official numbers.

A total of 56,056 addicts were admitted to rehabilitation centres in Yunnan last year, compared with 35,913 in 2003. Just over 6,000 re-offending addicts were sent to re-education centres last year, up from 4,209 in 2003. In the first five months this year, 24,446 people were sent to mandatory rehabilitation centres while 3,877 addicts were sent to re-education centres.

Mr Sun said 10.68 tonnes of drugs were seized in Yunnan last year, including more than eight tonnes of heroin.

He also sounded the alarm over rapidly rising methamphetamine seizures, up 62 per cent in the first five months of the year compared to the same period last year. He said large methamphetamine plants had emerged in the Golden Triangle, where Myanmar, Thailand and Laos share a border, making the fight against the influx of the drug more complex.

Yunnan arrested 585 foreign traffickers last year, up 18 per cent from 2003, while 5,900 traffickers from other provinces were arrested, up 24.5 per cent. Figures for Yunnan-based traffickers were unavailable.

Mr Sun said drug traffickers were increasingly armed and organised, with 28 armed trafficking cases recorded last year and 446.9kg of drugs seized.

"Since the spreading trend of drugs has not been put under control, drug problems in some areas are quite outstanding," a report by the provincial narcotics control bureau said. "Drug problems have intertwined with Aids, ethnic and poverty problems, and seriously affected the stability, ethnic unity and development of the province."

Mr Sun said inspections by Chinese officials had confirmed that 65,864 hectares of poppy farms in northern Myanmar had been turned to ordinary farmland over the past 15 years through a mainland-funded programme.

But the vice-director said it was important that measures were in place to ensure the farms did not revert to poppy growing in the future.



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[boomerang] Posted by Simon at 13:18
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China blog block

Asiapundit is reporting that Typepad blogs are blocked again in China. Gordon is reporting that this site is blocked in Chengdu, but Chris says it is viewable in Shanghai and others report it viewable in Beijing, Shenzhen and Guangzhou. These sites are doing an audit of where they are blocked, but it appears Typepad is blocked nationally. Please let me know if this site or other sites are blocked or viewable in China.

And remember, proxy servers are your friends.

Other reading

Peking Duck; Horse's Mouth plus Gordon's roll call; Shenzhen Ren; Fons sees some contradictions in the block.

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[boomerang] Posted by Simon at 10:10
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» Imagethief links with: Another One Bites the Dust: Asiapundit Swatted by Nanny?




Things that scare mice

Hong Kong Disney is still receiving plenty of criticism over its decision to serve shark fin soup. Doug Cret's article has this interesting paragraph:

Ko Wang, a professor of business at California State University, Fullerton, who studies Disney's corporate strategies, told The Standard that Hong Kong shouldn't expect too much from Disney at first, since the company had also flubbed its entrance into Paris and Tokyo, largely through cultural mistakes.

"As a shareholder, there is not much that a government can do,'' said Wang.

More proof of the value of Hong Kong's investment in the park. You would have thought Disney would have learnt some lessons from its previously experiences. But apparently it's not elephants we are dealing with here.

Moreover a company as PR aware as Disney has scored another resounding shot in the foot. From today's SCMP letters page:

Here's to you Mr Robinson, Disney loves you more than we all do...

Tell me why, Mr Robinson [Disneyland Hong Kong group managing director Don Robinson], you and your public relations team refuse any contact with a polite, environmentally aware group of Year Nine students from West Island School, who wish to hand in a petition expressing concern over the inclusion of shark's fin soup on the menu.

I wish to voice my horror at your company's discourtesy, unhelpfulness and lack of sensitivity. Is it really necessary to block phone calls from a 13-year-old, who wants to make an appointment to hand in a petition?

Are you really that afraid of a group of secondary school students?

JULIA BLOIS-BROOKE, Discovery Bay

Now you know what mice are scared of. Disney's head-in-the-sand approach to this issue has been a PR disaster...except with the market they care about the most: the Mainland tourism market.

Part of the Hong Kong Disneyland series.

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[boomerang] Posted by Simon at 09:24
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» Imagethief links with: A Mouse Out of its Depth




June 21, 2005
Daily linklets 21st June

The I got to Manila airport 2 hours early edition:

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[boomerang] Posted by Simon at 16:19
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Pundita does China (Updated June 21st)

Note: this post has several updates below, not to mention an interesting discussion with Tom.

Pundita is a recent well deserved addition to the Top Shelf blogroll. An American foreign policy insider, she clearly and lucidly explains this most complex of policy areas. I've been fortunate enough to have been in an email dialogue with her, which has blossomed into two posts (so far) on China. The first is China: ducking reality, where she answers my questions on the direction of American policy towards China. She then follows up with China and the rascal rabbit of life's surprises, which covers Henry Kissinger, the Bush doctrine, bird flu and democracy, by way of Elmer Fudd.

Go. Read. Now.

Then bookmark her and check back often.

Update (June 15th)

The third essay, China: Say, whatever happened to those one billion consumers? is now up. Read it all, it's not long but it's thought provoking. I've sent a reply which I've reproduced:

Allow me one comment on today's post. I agree with the thrust of it but I fear you define democracy too tightly. Democracy is not just about voting; it also requires checks and balances; independent, free and strong institutions (courts, press etc); rule of law (in both enforcement and legislation by popular acclaim rather than decree); and respect of private property rights. If we were to chart countries on these yardsticks you'll find China is currently a mess, with the CCP trying to restrict the first two while implementing the second two. Are they compatible? No. That's the true contradiction at the heart of China. But is it sustainable? I fear it is for far longer than most would suspect.

In terms of the US, the vast majority are likely very complacent about democracy but thankfully the system has enough people concerned about it, and enough checks on it, that it can be sustained with only minority interest. I've long thought the vast majority are mostly interested in the basics - food, shelter, rising living standards and a good education for their kids. It's only the few who care about the rest of "that freedom thing". Once China's been democratic for 200 years, I'll forgive some complacency.

Pundita's point about China's "enclavers" is a telling one. Likewise I fully agree with her contention:
China's ruling party says they have a way to beat the devil: Planning. First get the peasants educated, then teach them English, then put them through university where they will study nanotechnology, then gradually introduce more government reforms at the local levels....

Clearly the stepwise process assumes that dolts can't manage democracy. But look at America. First of all, we had a long tradition of only sending dolts to Washington because we couldn't spare the smart ones from their jobs. Second of all, America was a bunch of illiterates as late as....well, the IRS still writes tax forms for people with only a twelfth grade education, and still takes wall-to-wall calls around tax filing time from Americans who can't understand the forms.

Pundita suspects that the way democracy has been presented by advanced Western democracies helped create the perception in the developing world that one has to reach a certain IQ and level of character development before democracy can breed anything more than anarchy.

It's all about the marketing, and the marketing of the "democracy" brand has been pretty poor at times. Or in the words of Glenn Reynolds, democracy is a process, not an end in itself. As Pundita says:
Democracy is a form of government; it's a gizmo for managing decisions and tax money in a large complex society...It [democratic government] furthers human rights and many other wonderful things. But the system itself is just that--a tool. The anarchy comes when you don't know how to work the tool.
Tom, I'm ready to discuss if you've actually got some substance to debate.

Update June 16th

Pundita replies to my email: Never Assume. It clarifies many of the issues and re-inforces the democracy as a process idea. Another good read.

19:45 6/16 And now the next instalment - China and the world: Yes, and back again. This time I take issue with some of the points...email to be reproduced below.

You say Governments better listen, but in cases such as China there are two problems: they don't want to listen and they don't have the mechanisms for listenening. China has never had a system of feedback from "the people" - if there was an issue, the only form of redress would be to take a petition to Beijing and try and see the right person (and this continues today). That's what I was getting at - central planning doesn't work but China (and others) have long had a top-down model of governance. Human history tells us that's been the more common model. Call it tyranny, call it dictatorship...even today it is the "preferred" governance model for a lot of places. Even those trying to transition to democracy are finding the path bumpy to say the least. Look at Russia for an example of one that is now rapidly backsliding into its preferred model. How does the Bush Doctrine deal with this?

Secondly I (being from an economics background) disagree on your analysis of world trade. I get your drift - that world trade meant making deals with the devil. But the fundamental argument comes down to whether living standards can influence politics or is it vice versa? By that I mean if a country's population has rising living standards, people start to have something worth saving, fighting for, protecting and defending. That means they want a voice in how things are run, especially when they are run contrary to their interests. Globalisation and free trade encourage that trend. From my reading of your post you see it the other way around. You actually hit on a key difference - today trade is much "freer", thanks to the WTO. The managed trade of the Cold War was an artifice to support political ideologies. Now trade is a way to raise living standards and encourage understanding across nations and cultures.

I'm not convinced by the co-operation amongst nations argument either. Even Bush and co. attempted multilateralism for Iraq via the UN, even though it was rebuffed. The Iraq war can even be cast as Bush's attempt to strengthen the UN or at least multilateral institutions, by giving force to resolutions. Also witness his putting Wolfowitz into the World Bank. Multilateral institutions matter - what they face is how to recast themselves now the Cold War is over...something they should have done 15 years ago but are only getting around to now. And where you quote Belmont, he notes the EU as one of Chirac's great institutions. And indeed it is - it can be argued the EU has helped solidify the transitions of Eastern Europe, as far afield as Ukraine, and helped human rights and freedoms in Turkey and the Balkans. Like it or not, you've got to give it to the EU. It has been one of the best institutions for spreading freedom and democracy in modern times.

I think the problem with your argument is it mixes up notions of multilateralism with notions of a multipolar world. I'm all for the former and against the latter. That's not a contradiction. A world lead by the US, with the support of the Anglosphere and like minded nations is the best defence (and if needed, offense) against tyranny and dictatorship. That's what we're seeing now.

Update June 17th

The latest instalment, Clairol joins with the barbarian hordes plotting China's overthrow, has an interesting perspective on the relationship between China's peasantry and government. Keep an eye out for the next exciting episode...and if you've got some thoughts, feel free to jump in. The water's warm!

Update June 21st

Pundita concludes the dialogue on America's China policy with US policy on China: Quo vadis? Read the whole thing, but the conclusion:

China's present situation is very complex, and present US policy has ignored the complexity. This had led the US to a passive-aggressive relationship with China.

This in turn helped Beijing (and numerous Western policy analysts) avoid confronting a stark reality: to the extent that China has become successful, they have been carried to success on the back of Western democracies.

So it is now time for American policymakers to gain a clear-eyed view of China -- one that avoids the extremes of demonizing Beijing on the one hand and overlooking the threat that a dictatorship ruling over a large nation poses to civilization, on the other.

There is a summary of all the links on this topic at Pundita's China Dialogues file.



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[boomerang] Posted by Simon at 13:37
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» Winds of Change.NET links with: China's Rise: The Next Big Hit, or the Current Big Myth?
» asiapundit links with: peasant protests




Thrila in Manila

Some observations from the capital of the Philippines:

1. I have never seen semi-public, bright pink male urinals lining major streets until now. What do the women do?

2. On the subject of women, Filipinas must have the highest bust to waist ratio in the world.

3. Everyone will warn you that Manila's traffic is terrible and you need leave leave plenty of time between appointments. That's a lie.

4. When the hotel has chains, sniffer dogs, metal detectors, a bomb sweep and a bag check before you walk in the front door, you know you're not in Kansas anymore.

5. When the lady at check-in gives you a five minute lecture of the dangers of walking around the city, the typical scams and ways to avoid being mugged, you know you're not in Kansas anymore.

6. If you enjoy living in cliches such as a couple of ales in a major hotel cocktail bar, complete with slightly out of tune senior citizens band belting out numbers from the "good old days", secluded couples engaging in the oldest form of commerce and dated furniture, I highly recommend the Shangri La Makati.



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[boomerang] Posted by Simon at 10:16
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June 19, 2005
China's income gap

China's economic miracle inevitable leads to a continually growing income gap between rich and poor:

China's income gap widened in the first quarter of the year, with 10 percent of the nation's richest people enjoying 45 percent of the country's wealth, state press reports said.

China's poorest 10 percent had only 1.4 percent of the nation's wealth, the Xinhua news agency reported...The income gap has become increasingly worrisome for the government of once-egalitarian China, especially as low- and middle-income earners are increasingly quick to accuse officials of pilfering state assets in the country's dash toward market capitalism.

"There are two gaps that need to be addressed," Li Xiaoxi, head of the economic and resource management institute of Beijing Normal University, was quoted as saying. "The first is the very wide gap between different social groups. The other is the astonishing economic development gap between regions."

China's ruling party is a misnomer. Dealing with the tensions that arise from this growing gap is and will remain the Chinese leadership's greatest task. So long as even the poorest feel their living standards are rising (albeit not as quickly as their richer coastal cousins), the tensions are bearable. Whenever the CCP feels pressured, they are quick to whip out the nationalism card as a distraction, the most obvious examples being Taiwan and Japan. But the undercurrent of ethnic and class tensions remain.

It ain't easy being a Commie.

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[boomerang] Posted by Simon at 14:55
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» Imagethief links with: The China New Leftists Debate: The Point Isn't Income Gap - It's Opportunity




June 17, 2005
Asia by Blog and admin note

I'll be travelling to a potentially coup-ridden South East Asian archipelago on Monday. Civil strife permitting posting should resume on Tuesday afternoon.

The weekly summary of my most popular links...

1. Sarong Party Girl. Not surprising given the fuss. Like in days of old, I only read her site for the posts...and she's a damn good writer.

2. Sarong Party Frens. Lesson - having 'Sarong' and 'Party' in your blog name works.

3. Xiaxue. Singapore's top blogger with her top on.

4. Flying Chair. Related to the Kissel case coverage, I suspect.

5. ESWN's Kissel case coverage.

6. Pundita. You can keep following the fascinating China and Bush Doctrine discussion, summarised and linked via Pundita does China. The latest instalment, Clairol joins with the barbarian hordes plotting China's overthrow, has an interesting perspective on the relationship between China's peasantry and government. If you want to understand Bush administration thinking on China and the world, read it.

7. SPG takes her gear off. Once again proving sex sells.

8. The excellent Jamestown Foundation's China Brief.

9. Wife swapping in Guangdong.

10. Beer and women.

I'm starting to detect a pattern here...



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[boomerang] Posted by Simon at 19:43
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Daily linklets 17th June

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[boomerang] Posted by Simon at 14:08
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White elephants for horses

Today's Chutzpah Award winner: the Hong Kong Jockey Club. Today's Standard reports the HKJC is warning the slide in betting revenue will soon affect operations and its charity and tax contributions. Naturally they are pressuring the Government as it contemplates reforms to tax gross profits rather than betting turnover, allowing the HKJC to pay better odds. The club thinks it can grab HK$24 billion of the estimated HK$60 billion in illegal gambling in the city. The club's race betting turnover is around HK$62 billion. If turnover falls below HK$50 billion, the city's biggest taxpayer and charity will dip into loss, affecting the Government's budget and the many philanthropic works the club sponsors.

So far, so dire.


Yet the HKJC is proposing to spend a staggering HK$1.2 billion to build the facilities to host equestrian events for the 2008 Olympics, according to the SCMP. To do so they will force all the athletes currently training at the Sports Institute in Sha Tin to relocate. At the same time the international body governing equestrian events wants it to be held in Beijing, not Hong Kong. But Beijing isn't sure if they can guarantee the disease free conditions needed.

Let's repeat. The down-on-their-luck HKJC is prepared to spend HK$1.2 billion on a 2 week, low rating parade of prancing ponies and show jumpers and they want a tax break to compete against illegal gambling.

Why doesn't the HKJC save itself the money, and instead spend the saved money on something that will last longer than 2 weeks...say a hospital? Or just write a cheque to every Hong Kong resident for HK$170. I know which one most Hong Kongers would prefer.



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[boomerang] Posted by Simon at 11:12
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Disruptive technology

Two examples of how technology is outpacing attempts to deal with it:

1. China is recruiting more internet censors and commentators. Today's unlinkable SCMP reports Beijing is hiring up to 4,000 new censors to watch over the city's cybercafes and ISPs. Can China's rapidly growing censor army hope to monitor the dealings of an estimated (and rapidly growing) 100 million Chinese internet users? Clearly the answer is no. Even with the help of software, China's fighting a losing battle for control. The sooner the CCP get their head out the sand and face that fact the better their chances of dealing it. Update: CDT links to another story on the censor recruitment drive.

2. The alleged vote-rigging phrase is the Philippines top ringtone, despite a Government ban and attempts to clamp down. The alleged voice of President Arroyo says "Hello, hello Garci [Electoral Commissioner Virgilio Garcillano]? So will I still lead by more than one M?," all to the tune of In the Club by rapper 50 Cent. The "one M" allegedly refers to a conspiracy to win last year's Presidential election by more than one million votes.

That's why these are called disruptive technologies. And now you know why Kim Il-Jong is scared of mobile phones.

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[boomerang] Posted by Simon at 10:58
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Where's Lady Macbeth?

The more things change...The Standard reports the IPO of China's Bank of Communications is likely to be the sixth most popular IPO ever in Hong Kong. Retail orders were HK$110 billion, making the issue 150 times over subscribed. Clearly retail investors aren't worried by bad loans, a murky regulatory environment, credit and risk controls and all those other pesky things.

Now read the following passage from the excellent Mr. China by Tim Clissold, talking about the previous China bubble:

But the excitement in the domestic economy was nothing in comparison to the delirium sparked off outside China. Chief executives from all over the world stampeded into China in a cavalry charge waving checkbooks under the noses of their smiling but slightly bemused hosts. For a time, it looked as though many of them had abandoned conventional business logic in the search for the mythical "billion-plus market" while money poured into the country. The investment frenzy soon gained a self-sustaining momentum that probaby even surprised [paramount leader] Deng, its hoary old instigator.

The real detonation, however, occured in the financial markets. with the China investment frenzy at its height, in early 1993 an obscure Hong Kong registered car company with assets on the mainland applied to list on the stock exchange. It wanted to raise about eight million dollars, but it received application monies for just under four billion! Encouraged by these wild successes, the Chinese government authorised nine domestic companies to list in Hong Kong....

At the end of the previous year [i.e. late 1992], a small bus company called Jinbei had gone public in New York and raised millions of dollars; it was the first listing of a Chinese company on the NYSE, but now investors wanted more.

Amazingly Hong Kong is witnessing not just one but two simultaneous frenzies: the China frenzy and the Macau frenzy.

These are interesting times.



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[boomerang] Posted by Simon at 10:37
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June 16, 2005
Daily linklets 16th June

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[boomerang] Posted by Simon at 15:19
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It's begun

In the same week when a young boy dies on a Disney World ride, the marketing campaign for Hong Kong Disneyland is gearing up...

cokedisney.jpg


September 12th can't come soon enough - the sooner we get through this the better.

Part of the ongoing Hong Kong Disneyland series.



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[boomerang] Posted by Simon at 14:16
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Labouring the point

Hong Kong is considered one of the best places to work in Asia for helpers, partly because of the strict contract and labour laws that govern their employment. But the theory does not translate to practice. There has been a massive shift towards employment of Indonesian helpers instead of Filipinas, partly because employers can get away with paying Indonesians far less than the minimum wage without fear. Now let's contrast two articles in today's newspapers.

The Standard says cheated employees 'will have to blow the whistle' if they've been cheated on salaries by their employers, and testify if they want redress, otherwise the Government won't help them. The article is concerned with Government contractors but the same applies for domestic helpers. For proof, let's turn to a staggering case reported in the SCMP:

A Labour Department suggestion that a domestic helper who complained about harassment, death threats and abuse by her employer should be less sensitive and focus on her work has been described as "hopeless" by a judge... Under discussion was a Labour Department reply to a five-page hand-written letter sent by Ms Aquino detailing the extensive abuse she said she was suffering at the hands of her employers, Betty So Mei-ngor and her husband, Leung To-kwong.

In the letter, dated December 7, 2003, Ms Aquino alleged Mr Leung wanted to kill her, that he and his daughters had tortured her, and that he was demanding $40,000 from her because their dog had got onto the sofa. She claimed Ms So constantly yelled at and belittled her, fined her, withheld money and threatened her with violence.

Project officer Kwok Fu-ming from the department's Tuen Mun branch office replied on Christmas Eve that year. "Do you think you should be so sensitive to the insulting words exhibited by the employers," he wrote after saying the contents of the letter had been noted. Focus on your job and reflect your feeling toward your employers' temperament. Should you need further service, approach Family Services Centres of Social Welfare Department or other non-governmental services at your district."

Discussing whether or not to call Mr Kwok as a witness with Ms Aquino's representative, David MacKenzie-Ross, Judge To said the response was "hopeless"...Ms Aquino alleges she was sacked after the family discovered she had three deformed fingers. It is alleged that, knowing she could not sack her for having a deformity, Ms So instituted a campaign of harassment to try to get her to quit.

Ms Aquino documented the haranguings she said she received from Ms So as well as the items for which she was fined and forced to replace or pay for out of her own pocket. These included being fined $5 for eating a piece of bread and $50 for not closing the refrigerator properly.

Ms So has denied she dismissed Ms Aquino because of her disability. The hearing continues next week.

You would think the Labour Department's job is to intervene in cases like this to protect employees. You'd be wrong. Is it because of the undercurrent of racism in this city, where helpers are often considered slaves and sub-human? Is it because this city is based on protecting the big over the little in commerce? Is it because a poor city rapidly became a rich one? Is it simply incompetence from Hong Kong's "underpaid" civil servants?

Domestic helpers are taxpayers in this city, despite their low wages. They pay and average tax rate that is higher than what a person earning HK$1 million pays. There is something very, very wrong with the system.



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[boomerang] Posted by Simon at 10:42
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» asiapundit links with: maid in hong kong
» GZ Expat, Part II links with: HK amahs vs GZ aiyees




June 15, 2005
Daily linklets 15th June

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[boomerang] Posted by Simon at 14:17
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Books meme

I'm not a fan of chain emails - they are the modern equivalent of junk mail. Well, were. Now the blogging world has caught up with memes. If not for Fabian being amongst my favourite bloggers, I would have ignored the latest one. But he has tagged me, so...

How many books I've owned

You don't own books, as the ad goes, you merely look after them for the next generation. Usually they're pupled and turned into cardboard. As Shakespeare said in another context, in the end we are all but food for worms. Books are the same. Yet that doesn't explain why Mrs M and I have a compulsion to keep almost every book we've ever read. Given we're both bookaholics, it is a substantial number.

A perfect afternoon is one spent browsing a bookstore. I like to dream one day I'll own a small bookshop but I fear with Borders et al, the small bookstore will be going the way of books.

The last book I bought

Mr China by Tim Clissold.

The last book I read

If "The Turtle Cannot Fly" book I read to JC last night doesn't count, it would be My Life as a Quant by Emanuel Derman. Prior to that was Freakonomics, which I highly recommend.

Five books that meant a lot to me

Perfume by Patrick Suskind. This was the first I read that had a memorable impact. Brilliantly written (and translated).

American Psycho">American Pschyco and Bonfire of the Vanities. Two books that tackle essentially the same subject (the dysfunction of yuppie-ism) in very, very different ways.

Liar's Poker. The legendary book of Wall Street legends. A bible of the "old days" of finance.

I could go on but in reality almost every book I read has some kind of influence on me. I have a rule: if I don't enjoy the book after 50 pages, I give up. As my Da so wisely told me (albeit in relation to wine): there are so many good books in the world, and our time on this planet is limited, so why waste your precious time with a bad one? Mrs M, on the other hand, insists on readnig through a book even if she hates it.

I'm not passing this meme to anyone in particular. If you're interested, post about it or leave a comment here.

Did Amazon start this meme?



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[boomerang] Posted by Simon at 13:15
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June 14, 2005
Daily linklets 14th June

* The case of Henry Kissinger, a jade wine glass and a magic trick. On Kissinger's op-ed piece on China, Mutantfrog takes the old Doc to task saying the big K doesn't know Chinese history.
* Online marriages are a mixed blessing in China.
* A thorough analysis of Hong Kong copyright law as it may apply to blogs, inspired by allegations of copyright infringement by a (now closed) HK blog. On a related note Jason Kottke points to the EFF's legal guide for (American) bloggers.
* Two of my favourite things, chocolate and women, together at last.
* Leading the way: combine a personal with a help wanted ad.
* Jodi points out the double standard between the cases of Schapelle Corby and Mai Cong Thanh.
* Do modern Chinese purges start with investment bankers and foreign journalists?
* Moses in South Korea...does that make Koreans the new Israelites?
* Richard links to the WaPo's complete analysis of the Huaxi riots: why it happened, the response, the outcome and what it means.
* The payoffs from globalisation. Not only has the policy be the single biggest factor in relieving massive poverty in Asia, it turns out it's been good for America too! It's not a zero sum game: the past 25 years have seen both the China and American economies boom. That's not a co-incidence.
* A look at security, diplomacy and politics in the Malacca Straits, via Eaglespeak who has more on the issue.
* Olympics related legal issues China is dealing with in the leadup to 2008.
* China democracy and the brave new world. Money graph:

To me it is indisputable that those democratic demands raised, possibly naively and with not much understanding of the costs they would entail, in Tiananmen Square in 1989 relate to real inalienable democratic rights that are currently enjoyed by real people all over the world, and which do not exist in China. The most important of those right now is the right to a genuinely independent free press. Only in this way can the Chinese people learn from the mistakes of the past and learn from them who not to trust. Is it ethnocentric and culturally insensitive to demand a free press? Only if we believe that countries such as China, Zimbabwe, Burma and North Korea have some deep cultural connection which means that their people, unlike ourselves, must be permanently kept in the dark about what has happened, what is happening and what could happen in their own and in other countries.
Keep an eye on this site.
* (16:47) Oxblog takes on Kissinger's China op-ed and as an alternative offers China is the one that's going to decide what kind of relationship we have with it. We should speak out on behalf of democracy and human rights but never pretend that our expressions of interest can change the course of Chinese politics...Strengthen our alliance with Japan and other allies in the Pacific. And, if at all possible, avoid indulging ourselves in the willful naivete of the realists. I'm puzzled as to why being realistic is being willfully naive about China. It seems a contradiction in terms.

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[boomerang] Posted by Simon at 16:46
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» tdaxp links with: Chocolate Covered Chinese Girls
» a free Orange | Links links with: Salon du Chocolat in China




Insulting Hong Kong's intelligence

Hong Kong's civil servants are outraged at the consultant chosen to review their pay, says the SCMP:

Civil servants say they have no confidence in the government's salary review after learning that it is being carried out by a consultancy that helped a business group lobby for a civil service pay cut two years ago. Unionists were infuriated to discover yesterday that the project to compare their pay levels with the private sector had been awarded to Watson Wyatt Worldwide.

The firm conducted a survey for the Hong Kong General Chamber of Commerce in 2003, which found some civil servants' salaries exceeded those of private-sector counterparts by more than 200 per cent.

The union complaints is the first hint the Governmetn has found the right people for the job. But Hong Kong's civil servants are amongst the world's best, they will argue. They certainly get a lot of practice, says another SCMP article on the Hong Kong nanny state:

The announcement begins innocuously with a pleasant ditty before getting down to the nitty gritty. "Show your parents how much you care," the cheery voice says. "Take them to the dentist." No, it is not a hospital radio spot, nor is it an announcement in an orthodontist's waiting room. And it certainly isn't a joke. This odd snippet of neighbourly advice is, in fact, a public announcement broadcast across the state-run RTHK radio, slipped between an hourly news bulletin and the latest pop hits.

Instead of encouraging a flood of elderlies to the dentist, it caused widespread hilarity. "I guess the days of a good old bunch of flowers have gone," quipped radio DJ Phil Whelan, one of the station's presenters required by law to play such announcements of public interest (API) each hour.

The dentist API is among a multitude of announcements and notices stating what can seem blindingly obvious that have flourished in Hong Kong in recent years, baffling visitors and earning the city a reputation as a nannying state.

For a territory that claims to have the world's freest economy, Hong Kong's 6.9 million people live under a tyranny of petty rules and regulations, say critics. "They are in the rise, undoubtedly," says Chinese University sociologist Chan Kim-mun. "Residents tend to tune them out, but visitors certainly notice them."

From codes preventing schoolboys from having curly hair to TV ads telling them how to carry textbooks; from "no sitting" signs in malls to "no spitting" notices on ferries; and from warnings on entering manholes to laws against loud music at concerts, almost every aspect of life is covered by a regulation. Among RTHK's incongruous spots are those that offered advice on buying a licence for your pet whale shark and donating blood to make you look younger. "I once got a small reprimand for saying on air that I was embarrassed to be a broadcaster after playing a particularly moronic one of these," admits Whelan. "An apology did not pass my lips."

The proliferation of banal notices and warnings have left many feeling Hong Kong is giving its rival Singapore - whose laws against chewing gum, oral sex and leaving toilets unflushed earned it the nickname Singa-bore - a run for its money. The tendency to over-regulate appears to have grown out of the panic brought about by the Severe Acute Respiratory Syndrome (Sars) outbreak in 2003 - which killed 299 people here - produced a baffling array of contradictory warnings. "During Sars, there were two announcements that ran constantly in Hong Kong on TV," says commentator Nury Vittachi, who has written several books of observations on Hong Kong's mangled public signage. "One said 'Join hands to fight Sars' and the other said [to avoid transmitting disease] 'Don't shake people's hands - wave hello and good bye instead'.

"In other words, it was: Hold hands. Don't hold hands." Another pair of hygiene-promotional ads at the same time said "Wash vegetables under running water", while the next one said "Don't let taps run: save water".

The need for stringent social guidelines is contrary to the Confucian philosophy prevalent in China. Confucius taught that civilisations maintained order through understanding and education, not through laws and regulations. However, according to Chinese University's Chan, Hong Kong's obsession with rules has little to do with Chinese cultural beliefs and more to do with the territory's British colonial past. "It is partly a hangover from the days of British rule and British bureaucracy," Chan said. "Our legal system and bureaucratic system was handed to us by the British." A culture of overloaded regulation was also born of the city's status as a huge immigrant melting pot.

"Those signs are there to inform the foreigners - the immigrants," Chan adds. "This is a city of outsiders and the feeling has always been that they need to be educated in our ways of behaviour." According to Chan, most Hong Kongers simply ignore the signs. Mainland Chinese visitors, on the other hand, admire them. "China is a country of Draconian laws but they are not really enforced," says Chan. "When mainland Chinese see those signs and hear those announcements they imagine that the laws are upheld all the time."

With some 25 million tourists expected this year alone, the chances of Hong Kong's obsession with keeping visitors in order is unlikely to diminish soon, leaving RTHK's Whelan relishing future announcements. "Watch out for those all time classics: 'When walking, remember to put one foot in front of the other', 'When sleeping remember to close your eyes'," jokes Whelan.

Good old Nury, always ready to help out on the mangled English signs. And nice to blame the British for the trouble. I have previously noted such paternalistic notices on water bills as well as the APIs on TV.

The article didn't even mention the infamous "Take your breath away" campaign by Hong Kong Tourism during SARS. Or the security service that didn't realise Government House has been bugged. Not to mention Harbourfest. Or Cyberport. Or...I could go on. Naturally Hemlock covers this outrageous attempt to crimp our civil service's ability to earn vast amounts:

STROLLING ALONG Lower Albert Road, I find the knife-sharpening noise actually becoming louder. It is emanating from deep inside the Civil Service Bureau, which has had the uncharacteristic presence of mind to appoint Watson Wyatt to compare salaries in our bloated, overpaid, parasitic public sector with those in our clean-living, wealth-creating, self-reliant and parsimonious private one. The very mention of the consultant’s name sets civil service union leaders frothing at the mouth. It was Watson Wyatt who, in a 2003 survey for the Hong Kong General Chamber of Commerce, uncovered the enormity of the civil service’s over-remuneration. It was a time of pestilence and simmering popular rebellion in the Big Lychee, and the wimps of the General Chamber swept the shocking material under the carpet out of horror. But the basic truth was out – insulated from deflation, competition, market forces, outsourcing and accountability to taxpayers, members of the world’s most arrogant civil service were being paid 200 percent in excess of (that’s in excess of) private-sector counterparts.

The spoilt, bed-wetting brats of the civil service unions will shriek that Woodrow Wyatt are drug-addled, devil-worshipping, child-molesting goat-fellators, when all the world knows they are mind-numbingly tedious accountants and actuaries, devoid of personalities, who have been performing dull but worthy tasks for the Hong Kong Government for years. The tragedy is that Donald Tsang, the ultimate civil servant, will soon be in the kitchen, instructing his underlings to put the knives away. The dogs of bureaucracy need to be slit at the throat, hung up to bleed dry, eviscerated and butchered – but it won’t happen. By how much would our taxes fall if the Government sent 100,000 back-office and paper-shuffling jobs to Shenzhen or Wuhan? Or Urumqi? Meanwhile, overstaffed, overpaid functionaries in need of empires to build, markets to interfere in, and projects to squander my money on decide to start running the Hong Kong computer game industry.

Note the link to the original Watson Wyatt report.

Why doesn't the Hong Kong civil service do what their counterparts around the world do? Instead of fleecing the innocent taxpayer, allow their pay and conditions to be cut and instead be funded by those who most need their services. So the police could be funded by triads, lands department by property developers and so on. Some call that graft and corruption. I call it user pays. And it saves us all a fortune! Talk about win-win.

Are we going to get APIs telling us to be nice to our underpaid and overworked civil servants?



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[boomerang] Posted by Simon at 15:34
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WTO security

There's growing worry that Hong Kong's police aren't adequately prepared for December's WTO summit.:

The police have little to say on the matter because, as Nelson Ng, chief information officer for the police public relations branch, said, "We haven't actually got the plan put together.''

Ng said police have yet to receive any notice from protesters, and so security preparations have been delayed...Commissioner of Police Dick Lee said Monday the police have no idea how many demonstrators to expect, or what will happen. ``We do not have sufficient information,'' he said.

Normally I'd be worried. But in fact the Hong Kong taxpayer has been funding both sides of this cause. As I said before, the police should make it clear to the protesters they are personally and directly liable for the costs and damage they cause. And the police could outsource the crowd control the various bouncers from nearby Wan Chai. They're very effective at dealing with the irrational and incoherent.

We should be thankful: compared to Australia's hosting of the APEC conference, Hong Kong is getting a bargain.

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[boomerang] Posted by Simon at 13:12
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June 13, 2005
Alternative Big Mac Index

We need you and your stomach in the interests of academic research.

The Economist's latest Big Mac Index has been released (follow this link for some BMI commentary). The now defunct Asian Labour News ran an alternative index, based on the number of hours a McDonalds employee must work to be able to buy a Big Mac. The Economist reported on a similar effort by investment bank UBS back in 2003, althought that focussed on developing economies.

Now it's time to update the index. In a joint effort with CSR Asia we're calling on volunteers around the world to help.

What does it take? We need three things:

1. Your location (city and country).
2. The price of a Big Mac at your local McDonalds.
3. The hourly wage (in local currency) of a worker at that McDonalds.

Please send the data to simon[at]simonworld[dot]mu[dot]nu and please help spread the word. The more data the better. Once compiled we'll publish the results.

In return feel free to eat the burger once you've got the data. Have fries with it to really complete the experience.

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[boomerang] Posted by Simon at 19:20
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» Tomorrow links with: Help Simon
» asiapundit links with: big macs, wages and choco pies
» Rocket Jones links with: Two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun... oh, and a side of data... to go




Daily linklets 13th June

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[boomerang] Posted by Simon at 17:30
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» thehorsesmouth.blog-city.com links with: Off with the gloves




Mark Steyn on China

Mark Steyn's piece on China is, typically, a mix of the sensible with the incendiary. Steyn divines sees two Chinas:

On the one hand, there's the China the world gushes over - the economic powerhouse that makes just about everything in your house. On the other, there's the largely unreconstructed official China - a regime that, while no longer as zealously ideological as it once was, nevertheless clings to the old techniques beloved of paranoid totalitarianism: lie and bluster in public, arrest and torture in private.
He goes on to say that inevitably the two systems will collide:
If the People's Republic is now the workshop of the world, the Communist Party is the bull in its own China shop.
So far the CCP have proved incredibly adept at dealing with the forces their economic reforms have released. The CCP is not even Communist but nationalist. In other words, we might not like it but the CCP has "form".

Steyn divines the problem of the current economic setup:

But Maoists with stock options are still Maoists - especially when they owe their robust portfolios to a privileged position within the state apparatus.
Here I take issue: even in the United States being in a priveleged position helps with success. The difference is in China it's a matter of being a Government official rather than a company director. Indeed even being the relative of an American Government official or politician can confer massive advantages. We're talking matters of degree, not type. And can you really call these people today "Mao-ists"? What does that mean? I find it difficult to see what that statement means other than a trite soundbite.

Moving onto the latest hot topic, intellectual property rights:

...new China's contempt for the concept of intellectual property arises from the old China's contempt for the concept of all private property: because most big Chinese businesses are (in one form or another) government-controlled, they've failed to understand the link between property rights and economic development.
Yet this is changing rapidly. The push to listing the big state-owned banks on the stockmarket, the growing private sector and torrent of foreign investment are all forcing China to codify and enforce property rights. Furthermore "old" China's contempt for property rights only extends back to the Communist takeover. Prior to that private property rights did exist in various forms. Finally China's theft of intellectual property is actually simply following a well-worn economic development model: that so successfully used by South Korea and Japan to name but two examples. Here's where Steyn comes off the rails:
China hasn't invented or discovered anything of significance in half a millennium, but the careless assumption that intellectual property is something to be stolen rather than protected shows why.
That's one hell of a statement. Besides being unprovable it is also meaningless. For the past 500 years China was mostly a relatively poor country that wasn't accused of intellectual property theft until the last few years as it has rapidly developed. Steyn's point is a valid one - China's advance will eventually rely as much as its capacity for creativity and intellectual value-add as manufacturing. But in aggregate that day is not here, yet.

The article compares China with India:

India, by contrast, with much less ballyhoo, is advancing faster than China toward a fully-developed economy - one that creates its own ideas...The return on investment capital is already much better in India than in China.
That's news to anyone who's followed both countries. Indeed Indian politicians lament how far behind China the Indian economy remains and discussions continue whether India's democracy hinders its economic development (for mine it doesn't, but that's another matter). If India's return on investment exceeded China's, India would be drowning in a wave of foreign investment and China receiving a trickle. That is not the case, partly because India's economy remains largely rule-bound and restrictive compared to China. And don't mention that Communists effectively hold the balance of power in India at the moment.

Steyn's conclusion:

China won't advance to the First World with its present borders intact. In a billion-strong state with an 80 per cent rural population cut off from the coastal boom and prevented from participating in it, "One country, two systems" will lead to two or three countries, three or four systems. The 21st century will be an Anglosphere century, with America, India and Australia leading the way. Anti-Americans betting on Beijing will find the China shop is in the end mostly a lot of bull.
There is very little danger of China splitting as its economy advances. A major concern of the CCP leadership is ensuring the peasantry enjoy some of the economic gains of the coast. While rural incomes lag those of the coast, they are rising. Indeed it could be argued it is a true case of trickle-down economics. The paranoia of the final sentence belies the rest of the article. Believing this could be China's century does not exclude it being an "Anglosphere" century. Nor is it anti-American to bet on Beijing.

The world isn't binary, black or white, a zero sum game. It is fair to say the Communists may have sown the seed of their own destruction with economic reform. It is not fair or even true that China's emergence will come at a cost to the rest of the world.

Update

Chinpunbeifun has a look at the same article (via Roger L. Simon).



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[boomerang] Posted by Simon at 16:14
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» asiapundit links with: a fisk of steyn




Disneywars

Part of the Hong Kong Disneyland series.

The House the Mouse Built (with more than a little help from Hong Kong's taxpayer) is in all sorts of bother as the grand opening approaches in September.

As mentioned in my analysis of the economics of Hong Kong Disneyland, this site is by far the smallest park in the Disney stable. Yet the ticket prices are practically the same. Disney employees and their families had a trial run visit through the park on the weekend...and what was their impression?

The SCMP reports:

Hong Kong Disneyland opened its doors to 2,000 staff members and their families in a special trial yesterday, with some saying the park is too small...Some staff members said only 60 to 70 per cent of the park was opened yesterday as many attractions were still being built. The two hotels, the Hollywood Hotel and Hong Kong Disneyland Hotel, 11 rides and some shows were open.

David Holts, a staff interior decorator, said he was satisfied with the facilities and decoration but thought there were too few attractions. "Compared with other Disneylands, it is much smaller," said Mr Holts who has worked in the Tokyo and Florida theme parks.

Ms Lam, another worker's relative, said she had been to Disney parks in Los Angeles and Paris and Hong Kong's park was as good, even if it was a little smaller.

Remember, these are the family and friends of Disney employees calling it small. Well at least they've learnt the lessons of Ocean Park and made it more child friendly, avoiding hills? Umm....
Michael Warzocha, the park's graphic designer, said the hilly terrain made the Hong Kong theme park unique.
It's half-built on reclaimed land! Did they create hills for it?

Let's move on to the shark fin soup controversy, seemingly in direct contradiction to Disney's policies. In an inept PR damage-control exercise Disney said they would hand out pamphlets to those who order the soup, telling them why it's wrong to eat it...while patrons eat it. On the same basis Disney could sell cigarettes. Today's Standard reports Disney will source the shark fins from "reliable and responsible suppliers", which green groups say is impossible. Even if it is true, Disney's purchases may simply force those who normally buy from such operators to instead go to more unsavoury sources. Legislator Choy So-yuk also disputed Disney's contention that the serving of the soup is justified because it is a Chinese custom.



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[boomerang] Posted by Simon at 11:59
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June 10, 2005
Daily linklets 10th June

The I've got 3 hours in an airport lounge version:

As the elevator in Perpetual Opulence Mansions slows to a halt on the 12th floor. I make two predictions. Brian the British stock analyst will walk in. And he will mention the trial of Nancy Kissel, who is charged with bludgeoning her Merrill Lynch investment banker husband Robert to death, in time-honoured, crazed-expat-housewife style. And I am right. “Everyone’s talking about it in the office,” he tells me as he adjusts his puce tie in the mirror. “What do you think?” I can’t help but shrug. I am following it as much as I would any other alleged killing of a man by his wife in Hong Kong – as an instructive example of the dangers of marriage. The fact that the key players have white skin means relatively little to me, I admit to Brian. I didn’t know them. As we leave the elevator and stroll through the lobby out onto the street, I sense he is disappointed with my response. I think of two noteworthy points about the case that go beyond standard gwailo tittle-tattle. “First of all,” I say, “the prosecutor suggests Nancy Kissel was a traitor to her social class, discarding her successful, high-earning spouse in favour of a bit of ‘rough’ – a horny handed, blue-collared TV repairman. Normally in Hong Kong it would be the Filipino driver, or a trainee hairdresser called Andre. You can see how this strikes fear in the heart of every high-flying career man’s sense of self-worth, can’t you?” Brian nods attentively. “Did you ever read Lady Chatterley’s Lover?” I ask him. It appears not. “Second,” I continue, “there is something extremely mysterious about the way they say she drugged him. Something that raises all sorts of murky questions about what was really going on, deep down under the surface.” Brian waves a slowing taxi away and looks at me in anticipation. “Think about it,” I urge him. “What sort of grown man drinks milkshake?”
Don't miss the Bolivia/Peak connection to the case as well.


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Notes from Nippon

In the traditional Japanese way, I was told I must leave for the airport 4 hours before my flight left Narita because it is a 2 hour plus drive. 45 minutes later I'm standing at the check-in counter listening to why the flight has been delayed by an hour, meaning I now have approximately 3 hours to kill.

Some brief observations from the land of the warm toilet seat:

1. What gives with the toilet seats? When I say warm, I mean toasty. I've never seen toilets with an instruction sheet until this trip.

2. Had breakfast with Lord Curzon and Gaijin Biker. Turns out GB and I have a mutual friend, again proving it is not six degrees of seperation, merely two.

3. Rappongi.

4. What is it about the interaction of grease, fat and alcohol? Nothing cures a hangover quite like eggs benedict and a kebab.

5. I've travelled to Tokyo several times in the past few years and it seems there is a creeping understanding of English. The hegemony continues.

6. Is there a difference between bidet and wide spray? Not according to my research.

7. It might cost the GDP of a small African nation, but goddamn the beef is good. Hand massaging cows clearly works.

8. Can any sociologists explain why the bouncers of Rappongi are primarily African (I'm guessing Nigerian)?



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[boomerang] Posted by Simon at 16:30
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» Tales of the Unlawyer links with: http://www.unlawyer.net/2005/06/11/116/




Open forum: Africa and Asia

What lessons can Africa learn from Asia's experience in rising living standards and poverty alleviation?

A group of prominent American bloggers had a conference call with Sir Bob Geldof to discuss his Live8 project. It is a clever use of blogs by Geldof as part of his marketing effort. Nothing flatters a blogger like being included.

The Live8 project site discusses its aims:

By doubling aid, fully cancelling debt, and delivering trade justice for Africa, the G8 could change the future for millions of men, women and children.
A laudable aim. But Dinocrat points out the problems of the exercise. Read the whole post, but I'll repeat the conclusion:
The two excerpts from the Scotsman raise for us the following points: (1) there has been plenty of aid, and it has gone down a rathole; (2) the idea of an African Common Market seems very interesting and sound: so why can’t a continent with several dozen countries and 885 million people figure that out for themselves, rather than having a Scottish newspaperman raise it? And how did a country of 1.4 billion — twenty years ago as poor as Africa — raise itself up without massive World Bank loans and foreign aid? The answer is that China chose to permit and cultivate capitalism (and its supporting institutions) on the one hand, and that Africa continues to be ruled by kleptocracies on the other other hand. Until there are serious political solutions first in place, we agree with the Scotsman that “gesture politics will just not fix it.”
Dinocrat also notes India as a similar example. Mark Steyn riffs along the same lines:
The issue in Africa in every one of its crises - from economic liberty to Aids - is government. Until the do-gooders get serious about that, their efforts will remain a silly distraction.
Almost all of Asia can act as an economic role model for relieving poverty on a massive scale, without the help of huge amounts of aid or much foreign intervention at all. Neither China nor India's models are perfect, but these two countries have achieved poverty eradication on an unprecedented scale. The fundamental reforms required to create and sustain a successful model can only come from home. They cannot be imposed from outside, either from well-meaning donors or multilateral organisations. But from the smorgasbord of choices, which are the right ones to take?

Kevin from Wizbang says While Geldof, et. all may not have all the answers, they're at least highlighting the right question, "What should the industrialized world do about Africa?" Outside of lowering trade barriers there isn't much the world should do about Africa. There is an implicit condensention in the idea that the West must do something to help Africans because they cannot help themselves. Aid can be seen as analoguous to social security. Welfare reform is about removing a sense of dependency and entitlement and creating an environment where people can help themselves. There is no difference with aid.

Let's have on open and honest debate about what lessons Africa can learn from Asia's experience, both the positive and negative. For example while much of Asia has risen out of poverty and achieved a degree of economic freedom, political freedom is lagging far behind. That applies even to places such as South Korea and Japan, leaders of Asia's economic "miracle". Some topics and guidelines:

* Given finite resources what are the priorities to lifting living standards and relieving poverty?
* What are the key ingredients in succesful sotries such as China?
* Does geography matter?
* What is the place of property rights, the rule of law, the institutions of state?
* What price progress? What about environmental standards, equality, income distribution?
* Is there a place for democracy in poverty alleviation? Is political reform compatible with economic reform?
* Is it preferable to use export driven growth or encourage domestic demand?
* Should aid be spent on removing "first world" protectionists measures such as subsidies and tariffs?
* Does debt relief work? How and under what conditions? How do you avoid the pitfalls of moral hazard and a repeat of the current debt problems in the future?
* What are the best and worst parts of the Asian example? Of the various Asian models, which is the best?

These are suggestions. I'd very interested in your thoughts and ideas, either via comments or via a post at your site (make sure you trackback to here). It should prove a useful addition to the Live8 project.

I will be out of blogging range for the next few days but look forward to reading your responses.

Other reading

Indepundit
Power Line
IMAO
Captain Ed
Chapomatic
Little Green Footballs
TalkLeft
Wizbang
Ann Althouse



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[boomerang] Posted by Simon at 14:39
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» Beth's Contradictory Brain links with: Interesting
» An American Expat in Southeast Asia links with: Eat The Rich
» Anything that defies my sense of reason.... links with: LiveAid was just a warm up. Live8 was the start of




June 08, 2005
Kissel case begins

From the SCMP:

The wife of a top US banker murdered her husband by drugging his milkshake with sedatives before repeatedly striking his head with a heavy metal ornament, a court heard yesterday. Nancy Ann Kissel, 40, faced the first day of an eight-week jury trial in front of a packed public gallery. Kissel is charged with murdering her husband, Robert Peter Kissel, 40, on or about November 3, 2003 - the day after prosecutors allege he intended to tell her he was filing for divorce in the belief she had an affair with a television repairman while in the United States.


Kissel has pleaded not guilty to the charge.

Government prosecutor Peter Chapman SC told the jury in his opening address that Kissel drugged her husband by "lacing a milkshake with a cocktail of sedative drugs while he drank it on that fateful Sunday afternoon".

When her husband was under the influence of the drugs, Kissel struck with a heavy metal ornament in "a series of powerful and fatal blows" to the right side of his head, Mr Chapman told the Court of First Instance.

The day after killing her husband, Kissel embarked on a cover-up to disguise her premeditated act, the court was told.

She wrote an e-mail to cancel a meeting with a friend she was supposed to see. "My husband is not well. I need to take care of something ... Sorry, I will be in touch soon," Kissel allegedly wrote on November 4, 2003.

Robert Kissel, whose body was found near their luxury apartment in Parkview, Tai Tam, on November 6, 2003, was the Asia-Pacific managing director of global principal products for banking giant Merrill Lynch. The couple came to Hong Kong in 1997.

Mr Chapman said Nancy Kissel met TV repairman Michael del Priore in early 2003 after she left Hong Kong with her three children because of the Sars outbreak and stayed in Vermont for four months. Mr del Priore had "become the man in her life in place of her husband".

Mr Chapman said the deceased hired retired New York detective Frank Shea in June 2003 to confirm his wife's relationship with Mr del Priore.

Two months before his death, Robert Kissel told the detective he was concerned about his own safety and believed his wife might have been drugging him.

Mr Shea advised him to contact the police and to have his blood and urine tested. "He had not gone to have the tests because he felt guilty about his suspicion."

Nancy Kissel was the beneficiary or primary beneficiary of three life insurance policies worth a total of US$5 million her husband held with a New York-based insurance company and two Merrill Lynch life insurance policies with a total value of US$1.75 million.

About four months before his death, realising the "deteriorating state" of their marriage, Robert Kissel also sought advice from lawyers Sharon Ser and Robin Egerton about divorce, jurisdiction, custody of children and financial matters. He did not make a new will although he was advised by Ms Ser to do so.

The jury was also told that in early 2003 the deceased installed a spyware programme to record activity - including e-mails - on a notebook computer used by his wife and a desktop computer at their home.

Copies of love messages allegedly written by Mr del Priore to Nancy Kissel were also retrieved from the deceased's office drawers. One said: "I love you when you call my name. It makes me melt."

The hearing continues today before Mr Justice Michael Lunn.



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June 07, 2005
Daily linklets 7th June

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[boomerang] Posted by Simon at 14:02
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» The Marmot's Hole links with: N. Korea's economic recovery




The Tong Master (Updated)

This one's for Australian males only.

Update: I'm pleased to report the original writer of this, Danny Katz of The Age newspaper, has been in touch. Let us all don a snag in his direction to recognise his genius.

The Aussie Bar-B-Q "Tong Master"

Macca was at the barbecue and Jonesy was at the barbecue and I was at the barbecue; three men standing around a barbecue, sipping beer, staring at sausages, rolling them backwards and forwards, never leaving them alone.

We didn't know why we were at the barbecue; we were just drawn there like moths to a flame. The barbecue was a powerful gravitational force, a man-magnet.

Jonesy said the thin ones could use a turn, I said yeah I reckon the thin ones could use a turn, Macca said yeah they really need a turn - it was a unanimous turning decision.

Macca was the "Tong-Master", a true artist, he gave a couple of practice snaps of his long silver tongs, "SNAP SNAP", before moving in, prodding, teasing, and with an elegant flick of his wrist, rolling them onto their little backs.

A lesser tong-man would've flicked too hard; the sausages would've gone full circle, back to where they started.

Nice, I said. The others went yeah.

Kevin was passing us, he heard the siren-song - sizzle of the snags, the barbecue was calling, beckoning, "Kevinnnnn ...Kevinnnnnn......come".

He stuck his head in and said any room? We said yeah and began the barbecue shuffle; Macca shuffled to the left, Jonesy shuffled to the left, I shuffled to the left, Kevin slipped in beside me, we sipped our beer.

Now there were four of us staring at sausages, and Macca gave me the nod, my cue. I was second-in-command, and I had to take the raw sausages out of the plastic bag and lay them on the barbecue; not too close together, not too far apart, curl them into each other's bodies like lovers - fat ones, thin ones, herbed and continental. The chipolatas were tiny; they could easily slip down between the grill, falling into the molten coals & heat-bead netherworld below.

Carefully I laid them sideways ACROSS the grill, clever thinking. Macca snapped his tongs with approval, there was no greater barbecue honour.

P.J. came along, He said "looking good, looking good maaaaaaaaate" - the irresistible lure of the barbecue had pulled him in too. We said yeah and did the shuffle, left, left, left, left, he slipped in beside Kevin, we sipped our beer.

Five men, lots of sausages. Jonesy was the Fork-pronger; he had the fork that pronged the tough hides of the Bavarian bratwursts and he showed lots of promise. Stabbing away eagerly, leaving perfect little vampire holes up and down the casing.

P.J. was shaking his head; he said "I reckon they cook better if you don't poke them". There was a long silence, you could have heard a chipolata drop; this new-comer was a rabble-rouser, bringing in his crazy ideas from outside. He didn't understand the hierarchy; first the "Tong-Master", Then the "Sausage-Layer", then the "Fork-Pronger" –and everyone below was just a watcher.

Maybe eventually they'll move up the ladder, but for now - don't rock the Weber.

Dianne popped her head in; hmmm, smells good, she said. She was trying to jostle into the circle; we closed ranks, pulling our heads down and our shoulders in, mumbling yeah yeah yeah, but making no room for her. She was keen, going round to the far side of the barbecue, heading for the only available space.... "THE GAP" in the circle where all the smoke and ashes blew. Nobody could survive "THE GAP"; Dianne was going to try.


She stood there stubbornly, smoke blinding her eyes, ashes filling her nostrils, sausage fat spattering all over her arms and face. Until she couldn't take it anymore, she gave up, backed off.

Kevin waited till she was gone and sipped his beer. We sipped our beer; yeah.

Macca handed me his tongs. I looked at him and he nodded. I knew what was happening, I'd waited a long time for this moment - the abdication.

The tongs weighed heavy in my hands, firm in my grip - was I ready for the responsibility?

Yes, I was. I held them up high and they glinted in the sun. Don't forget to turn the thin ones Macca said as he walked away from the barbecue, disappearing toward the house. Yeah I called back, I will, I will. I snapped them twice, SNAP SNAP, before moving in, prodding, teasing, and with an elegant flick of my wrist, rolling them back onto their little bellies.

I was a natural, I was the "TONG-MASTER"...

Until Macca got back from the toilet....

Thanks, Tim. I've got a tear in my eye at the thought.



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[boomerang] Posted by Simon at 13:56
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The Ugly FEER

From Travellers' Tales post labelled The Ugly Australians:

Aussies hardly have the best of reputations in Asia, and the aftermath of the Schapelle Corby case is a good indication of why. Eric Ellis sent us this priceless exchange between radio host Malcolm T. Elliott and a caller. No comment is necessary:
Elliott: The judges don't even speak English, mate, they're straight out of the trees if you excuse my expression.
Caller: Don't you think that disrespects the whole of our neighbouring nation?
Elliott: I have total disrespect for our neighbouring nation my friend. Total disrespect.... Whoa, give them a banana and away they go.
While of course that comment is completely out of line, it would be remiss to point out that racism is not exclusively an Australian trait.

That's not to excuse racism. But it exists in all sorts of places. The idea of labelling all Australians ugly based on rantings of a radio shock jock is as stupid as labelling all Chinese people racist based on the rantings of a few online netizens. Should we be labelling them "The Ugly Chinese" and use an isolated example to tar a whole nation?

But wait, there's more.

Should we delve into Australia's extensive, massive and generous aid contributions to Indonesia after the tsunami? Should we look into Australia's principled intervention in East Timor? It's assistance to Papua New Guinea? It's support of a crumbling Solomon Islands?

The conventional wisdom has long held Australia to an impossible standard in Asia. Some (Dr. Mahatir) have made a political career based on Australia-bashing. While I have my opinions on the Corby case, I cannot see why popular opinion in Australia on the case has any bearing on Australia's reputation in Asia. The only way is because Australia is expected to be fawning of Asia, perfectly forgiving and without opinion, happy to kowtow to whichever Government is trying to bully its way.

Here's an idea: start looking at Australia as an example of a successful and confident multicultural liberal market democracy rather than a pariah. And stop relying on conventional wisdom.



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[boomerang] Posted by Simon at 12:15
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Things that get you down

A tip for budding lawyers: being depressed isn't grounds of an adjournment:

[A] former "king of property,'' who speculated aggressively in the luxury market before suffering huge losses when the market crashed in 1997, was told he was wasting a court's time by claiming he was too depressed to answer an Inland Revenue claim for more than HK$23 million in outstanding taxes.

Chun Kam-chiu, former chairman of Keen Lloyd Group, sought an adjournment of the case Monday, because he thinks it is unfair that he should have to face trial even though he notified the Correctional Services Department that he was suffering from depression.

Justice William Waung replied: "I am depressed - to see you wasting the court's time. "Of course you are depressed - someone's suing you for HK$23 million. Depression is a common disease for a lot of Hong Kong people in trouble.''

Forget about rule of law...Hong Kong has rule of comedy. Not only was Mr Chun depressed, he had more problems.

Chun also said it was unfair that he should have to contest the case in English, a language unfamiliar to him, without legal representation.

Waung reminded him that he had filed to represent himself, and that there was a young woman next to him, interpreting for him.

Strike 2. Talk about entertainment. But for the grand finale:
Before he left court Monday, Chun implored reporters to return today "for a great show." Proceedings are expected to last two more days.
It hasn't disappointed so far. When you're in the hole for HK$23 million, it doesn't hurt to keep digging.



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[boomerang] Posted by Simon at 09:39
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June 06, 2005
Daily linklets 6th June

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[boomerang] Posted by Simon at 18:47
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Of cables and tolerance

Two weekend observations:

1. Now that NASA is no longer putting men on the moon, it is clear those scientists are working as TV installation people instead. Why is all this technology still connected by a jungle of cables with no logical manner of connection?

2. Men have a far lower shopping tolerance level than women. And when a man hits the wall during a shopping trip, the results aren't pretty. The formula:

Male shopping tolerance = {Air conditioning / (Temperature + Humidity)} * (1 / Female walking pace) * (1 / Population density at shopping area) * (Shop contents# / Amount already spent) * Whatever sport is on TV * (1 / Cost of whatever female is holding in her hand)

Ladies - memorise this formula.

# Where shop contents is 0 if electronics up to 10 if female clothes.

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[boomerang] Posted by Simon at 12:43
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Hong Kong's democratic deficit

Democratic Chief Executive candidate Lee Wing-tat is whinging that The Don is "running a PR show rather than an election campaign", says the SCMP.

He criticised him for holding closed-door meetings with Election Committee members and failing to reach out to the public...Mr Tsang did not take part in the first public forum with his election rivals on Saturday, although he was invited. While Mr Lee and the third contender, legislator Chim Pui-chung, were at the forum in Wan Chai, Mr Tsang was meeting members of the Election Committee.
In fact The Don is doing exactly what he should. He is only chasing the votes of 800 people, not the Hong Kong public. Why should he bother turning up at public forums when no-one else can vote? And the Democrats are effectively just running a PR campaign themselves, given they've got no realistic chance of winning the race.

Indeed the democratic camp have missed a major opportunity to expose everything that's wrong with Hong Kong's current electoral system. Refer to this chart from the SCMP:

special_interests.jpg


The 800 member Election Committee is the formalisation of special interest groups. The above, albeit rather meaningless, graphic demonstrates that all each sector wants is for its interests to be looked after. Yet do you see any part of that graphic representing what is best for Hong Kong's public? It's consumers? No, of course not. This system institutionalises special interest groups while in places such as the US the influence of special interest groups is an ongoing issue being grappled with. Would you feel well represented if you knew the Chief Executive was elected thanks to promises to each of these special interest groups to advance their various causes? That's the big problem with Hong Kong's democratic deficit. If only the "democrats" would talk about it.



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[boomerang] Posted by Simon at 10:06
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June 04, 2005
Tiananmen Square - June 4th, 1989

tiasquaretankman.jpg

(Click for larger image)

Please read below the fold for more about the photo, the man in the photo, my thoughts and more about the events of June 4th, 1989.

Other reading

* Time Magazine's salute to the unknown rebel as part of its 100 most important people of the century.
* The BBC in 1998 reported "tank man" was not arrested and is still at large. Wikipedia has an entry on tank man:

Almost nothing is known of the man's identity. Shortly after the incident, British tabloid the Sunday Express named him as Wang Weilin, a 19-year-old student; however, the veracity of this claim is dubious. What has happened to Wang following the demonstration is equally obscure. In a speech to the President's Club in 1999, Bruce Herschensohn — former deputy special assistant to President of the United States Richard Nixon and a member of the President Ronald Reagan transition team — reported that he was executed 14 days later; other sources say he was killed by firing squad a few months after the Tiananmen Square protests. In Red China Blues: My Long March from Mao to Now, Jan Wong writes that the man is still in hiding in mainland China.

The People's Republic of China government, if it knows, isn't saying much. In a 1992 interview with Barbara Walters, then-Communist Party General Secretary Jiang Zemin was asked what became of the man. Jiang replied "I think never killed [sic]."

It should be noted the CCP have never admitted to anyone being killed during these events.
* How Stuart Franklin took the photograph:
When the Chinese Army began their bloody crackdown on Beijing student democracy demonstrations in June 1989, Stuart Franklin was sent by Magnum photographic agency to cover it. “I was in a hotel on the corner of Tiananmen Square. Those tanks were shooting up at us because all the foreign journalists were there. I was crouching down on the balcony, with my lens stuck through the gap between the metalwork and the concrete floor. It was impossible to leave because the hotel was surrounded by security. People were confiscating film. They were searching every room, but for some reason they didn’t come into mine. I hid my films in a box of China teas and a kind French journalist carried it to the Magnum Paris office for me”.

Initially a line of students blocked the path of the tanks and only when they started shooting did the students move. Then a young man defied the first tank and climbed on to it until his friends carried him away. “After that he disappeared”, says Franklin. “No one knows what happened to him” At the time I was more interested in what had happened the night before. It turned out a lot of students had been killed and they’d shoved the injured into children’s hospitals so the press wouldn’t see them. I was thinking, ‘why am I standing here? That guy just looks like a matchstick’. I left soon after, but that picture was published very widely”.


* The story of Jeff Widener's similar photograph plus more from the paper where he now works.
* The declassified history of Tiananmen Square has a full background plus reports on what happened from various US diplomatic and intelligence agencies.
* Some say what happened at Tiananmen Square is not as clear cut as is often made out.
* The documentary The Gate of Heavenly Peace is a good resource covering the event and reactions.
* Jonathan Spence discusses the history of the Tiananmen Square itself.


****************************************************************
Often we cling to this event as a sign of hope. A hope that democracy and freedom will one day prevail over the Communist party. The reality is while many of us like to think of June 4th as a turning point, the past 16 years have proved us wrong. The Communists have turned themselves into a party of nationalists who have created a new social contract with the Chinese people - economic prosperity and rising living standards in return for continued unquestioned rule by the CCP. And while it is difficult to be certain it seems the large part of China's population is (for now) happy with the deal.

There's plenty that could change. The CCP plays a delicate balancing game between socio-economic tensions and its grip on power. What's worse is it is good at it. But without the effective feedback mechanisms that democracy provides the powers-that-be need to hope they remain good at the game. It will only take one slip for the edifice to come crashing down. Which is why in situations like June 4th, 1989, the CCP is likely to err on the side of crackdown and confrontation. There's no upside in compromise and they hold the guns.

That's the problem. Firstly it seems almost inconcievable for another 1989 protest to happen as things stand. Secondly if it should happen the question to ask is how would the CCP leadership respond today? The answer is clear - in the same way. The CCP are good at learning the lessons of history.

The CCP has a clear desire to remain in power at all costs. Democracy and freedom is not an inevitability for China. That's the legacy of Tiananmen Square.



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[boomerang] Posted by Simon at 23:59
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» Jennifer's History and Stuff links with: June 3, 1989
» The Jawa Report links with: Tiananmen Square Anniversary
» NIF links with: Footsoldier of Paychecks
» Resistance is futile! links with: Carnival of Cordite 16
» Babalu Blog links with: Tiananmen Square: June 4th, 1989
» asiapundit links with: 16 years later
» Petrified Truth links with: Recognizing history
» undersound links with: 网摘---2005.06.04
» The Unabrewer links with: June 4
» My cool Yahoo links with: Yahoo is cool




Tiananmen

Tiananmen is white, beautiful. So big that you don't know where to begin to look at it. So plain in its stateliness, almost frightening. Since 1949 it's the symbol of the power of the new Chinese emperors. Since 1989 also of something else that can't be said.

If you come from south the square appears like that. But before opening out, it must remind you in which country you are and which kind of history you're living: Mao's Mausoleum bars the way. Chairman Mao (so it's called by Chinese) is under glass in the middle of a hall that regular lines of people cross for some seconds staring at the corpse covered with a communist flag. But the scene you'll never forget happens some instants before: in turn three or four people - men, women, children - pull ahead of the line to lay flowers and curtsey to the statue of one of the bloodiest tyrants of the 20th century. It would be sufficient this forbidden picture to show how strong and corrupting lies and ideology still are in 21st century China.

The Monument to the People's Heroes - standing outside - is 36 metres high. Obviously the People's Heroes are regime's heroes whose revolutionary feats are carved as bas-reliefs on the obelisk's surface. Sixteen years ago for forty-seven days the People took it back, sat around, hung placards claiming democracy and built nearby something that looked a lot like the Statue of Liberty. Today the Monument is enclosed and surrounded by guards.

One night the tanks got into Tiananmen. They came from here. It was late spring, between 3-4 June. The first clashes between soldiers and civilians began at dusk opposite this bridge along Fuxingmenwai avenue. People's troops were arriving from western suburbs but the People had no intention of letting them pass. So they started firing. Against the People. Two hours and a few kilometers after, the first tank entered the square coming from Chang'an avenue (Fuxingmenwai's prosecution) under the vigilant look of the mandants gathered in Zhongnanhai and of the Great Helmsman, very proud. At 1 a.m. all the martial law troops were in Tiananmen in conformity with the orders. Most of the job was already done. At 4 a.m. the lights were turned off. At 5.40 a.m. everything ended.

Last year China was celebrating the 100th anniversary of the man who in fact decided the massacre. At the National Museum "a great man of the 20th century" was praised. At the National People's Congress the children were rehearsing the performance in his honour.
The regime shows its most craven face. Tiananmen repression of course never happened. What happened was the restoration of order upset by a "counter-revolutionary riot". Students and citizens that, not only in Beijing but also in every main town of the country, rallied against the dictatorship seem by now erased from the collective memory. Everything suggests that the masters of mind have achieved their aim. But - you know - sometimes the ghosts come back. And every celebration has its day: let time pass. Tiananmen is white, beautiful. Kites.

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[boomerang] Posted by Enzo at 18:39
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» Jennifer's History and Stuff links with: June 3, 1989
» asiapundit links with: 16 years later




June 03, 2005
Asia by Blog

The 10 most clicked links from the past week:

1. Dell is facing a PR disaster
2. Pimps and Ho's in China
3. I thought we already knew who Deep Throat was.
4. Examining the China myths.
5. I've always had a thing about women in uniform.
6. Desperate celibate housewives.
7. Daniel Hong: An angry Asian male.
8. ESWN's look at an undercover drug bust.
9. ESWN's look at the Nancy Kissel case.
10. China is copying Japan and America in the copying game.



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[boomerang] Posted by Simon at 16:39
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Daily linklets 3rd June

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[boomerang] Posted by Simon at 12:53
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» Nokia 8800 Mobile Phone links with: Nokia 8800 Mobile Phone
» Nokia 9300 Communicator links with: Nokia 9300 Communicator




The June 4th roundup (updated)

The approach of June 4 means it's that time of year: arrest time. First it was Ching Cheong. Now Reuters is reporting the arrest of members of the Chinese Acadamey of Social Sciences, one of the country's top think-tanks. As usual, no one is quite sure why, but people rarely are in China. But the timing isn't co-incidental, as Richard has also noted.

It's the hallmarks of a police state. It's why June 4, 1989 needs to be remembered.

Update (June 3rd)

Reuters is reporting these arrests are linked to the arrests of Ching Cheong, along with some more interesting information from Cheong's wife. Full article below the fold.

Richard says the arrests are based on the mauscripts of a book about Zhao Ziyang by an old friend of his, Zong Fengming. Not surprising. What is surprising is China's ongoing attempts in dealing with Ziyang's legacy. Too important to completely dismiss and too troublesome to ignore. Excellent to watch.

Tom has plenty of links and notes China's quick backtracking on the spying allegations.

The wife of a Hong Kong-based reporter China has accused of spying said he had worked with an academic at a government think-tank held on suspicion of leaking state secrets, but denied her husband had done anything wrong.

The connection was revealed in an open letter to Chinese President and Communist Party boss Hu Jintao, in which Mary Lau said scholar Lu Jianhua and her husband, Ching Cheong, were innocent and called for their release.

Lu had often sought Ching's views while researching Hong Kong's political situation and Taiwan, said Lau's letter, published in several Hong Kong newspapers on Friday. Ching helped Lu arrange meetings with top government officials, various politicians and academics.

"Whatever Ching Cheong and Mr Lu Jianhua did, they were resolutely on the side of Chinese people and they acted for the interests of China," she wrote. Ching, 55, the chief China correspondent for Singapore's Straits Times newspaper, was detained by Chinese security agents in the southern city of Guangzhou on April 22.

China accused him on Tuesday of spying for unnamed foreign intelligence agencies, but his wife was adamant he was set up while trying to obtain sensitive, unpublished interviews with the late Zhao Ziyang, toppled as Communist Party chief in 1989 for opposing the Tiananmen massacre.

If charged and convicted, Ching could face the death penalty. Lu, a sociologist with the Chinese Academy of Social Sciences, the government's top think-tank, was also taken into custody by security agents in April on suspicion of leaking state secrets, sources familiar with the case told Reuters.

Chen Hui, an assistant to the director of the Academy's General Office, was detained around May, a source said, adding that Chen had had access to classified documents.

HEAVY CRITICISM
Ching's detention has drawn heavy criticism from the United States and media groups around the world. Lau said Beijing's recent moves to reconcile with Taiwan's opposition parties, culminating in historic visits by two key opposition leaders to mainland China in April and May, were a result of Ching's recommendations.

Beijing regards self-governed Taiwan as a wayward Chinese province to be brought back to the fold, by force if necessary. "In order to communicate better, and to secure Ching Cheong's views on Hong Kong's sovereignty handover and the reunification of China, Mr Lu Jianhua often related to Ching Cheong the words of Chinese leaders -- including the sayings of yourself and other Chinese leaders," Lau wrote in her open letter to Hu. "This should be regarded as a necessity of work, and not the leaking of secrets," she wrote.

Ching had also helped Lu arrange meetings with top government officials, various politicians and academics, Lau said. Hong Kong, a former British colony that reverted to Chinese rule in 1997, has seen huge pro-democracy demonstrations in recent years.

News of the detentions broke ahead of the sensitive anniversary of June 4, 1989, when Chinese troops crushed pro-democracy protests centred on Beijing's Tiananmen Square killing hundreds, perhaps thousands.



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[boomerang] Posted by Simon at 12:14
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» Daai Tou Laam Diary links with: Latest Twist In Ching Cheong Case




Exploiting the gweilos

We always hear about the exploitation of third world workers, of sweat shops, of child labour, prison labour and worse. But it cuts both ways.

The SCMP today tells the sorry tale of explotation of foreign English teachers by heartless Chinese employers:

Like many young foreigners in China, 28-year-old Briton Gareth Thomas decided teaching English was an easy way to see the world and get paid for it...He signed a contract for 15 teaching hours a week, 8,000 yuan a month, insurance cover and passage home. But when he arrived in Guangzhou seven weeks ago, he found that his workload was far greater. Now he's quitting.

"They brought me from Shanghai and promised to pay for the ticket [to Guangzhou] after one month. But they won't, and they changed my contract without my permission to make me work 20 to 25 hours a week," he said. The agency put pressure on teachers to work extra hours, and called him every other day to get him to teach more classes, said Mr Thomas, who holds a certificate in Teaching English as a Foreign Language (TEFL). "If I was five minutes late, they fined me two days of pay. I feel cheated. They exploited me."

Dreadful stuff, followed by the usual warnings of going through reputable agencies etc. But there's a kicker in this tale:
But while teachers complain of exploitation, students are also short-changed because most teachers have no experience. Some are not even native speakers but are hired for their Caucasian looks.
It seems looks can only get you so far.



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[boomerang] Posted by Simon at 10:49
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Hong Kong: World City

Hong Kong is one of the only places in the world where the civil servants earn far more than their private sector counterparts, especially once you add in all the lurks and perks. The SCMP reports on the group that brought you "Hong Kong: Take you breath away" during the middle of SARS:

:

Lawmakers are demanding greater scrutiny of the Hong Kong Tourism Board's accounts and operations amid growing concerns that taxpayers are funding an overpaid and spendthrift government agency despite record visitor numbers...

In the 2004-05 year, the [Hong Kong Tourism] Board had eight employees in its head office earning between $120,980 and $252,730 a month. This number is dropping to seven this fiscal year. The 41 staff with monthly salaries of between $41,038 and $90,192 in 2004-05 will rise to 43 this year.

Offering those kind of salaries is one way to draw people in, that's for sure. I want to get in on the act. So I am humbly prepapred to offer the services of my kids as tourist drawcards (for a fee) - if the number of photos mainland tourists have taken of them is anything to go by, the Tourism Board's targets will be easily met. Alternatively I'm prepared to lead tours of mainlanders to see gweilos in their natural habitats: Lan Kwai Fong and Wan Chai. Just give me a flag and a cheque.



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[boomerang] Posted by Simon at 10:40
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The Don March and Hemlock

The Don's election campaign was officially launched yesterday with much fanfare and the obligatory bow tie logo. Each campaign is limited to spending HK$9.5 million each and The Don will avoid "money politics" by limiting donations to HK$100,000 per person. He won't have any trouble getting to the limit. The limit backs up my assertion this will be the most expensive election in history. With only 800 voters the limit allows The Don to spend HK$11,875 (about US$1,500) per voter! Now that's money politics.

With the two other candidates proving ineffective, it's time for Plan B. Back on Friday, May 14th 2004 Hemlock declared himself a candidate for Legco in 2008. Eagerly assisted byJohn Swaine he even had stickers designed for the purpose. But surely now is Hemlock's time. He even has a platform of sorts:

First, tough policies to eradicate some of Hong Kong’s serious mental health problems, including Hello Kitty mobile phones, Nicholas Tse, the skin-whitening mania, the Liberal Party and the small white carpets placed at odd angles in office doorways to hinder bad influences in S-Meg Tower. Second, repatriation incentives for expats who don’t belong, including more roadworks, faster-closing elevator doors, a TV ban on the European Tiddlywinks championships, louder TVs on buses, demolition of Discovery Bay and introduction of huge taxes on such delicacies as cornflakes, BacoBits and Cheez Whiz, faster than you can say “world city”.
And I'll bet he could do with HK$9.5 million from Hong Kong's tycoons while he's at it.

Hemlock for Chief Executive!

hemlock.jpg

Update

As if you need further proof of Hemlock's intricate understanding of Hong Kong:

Hong Kong’s hard-working, tax-paying middle class eagerly debates the differences between the democratic systems of European countries and Hong Kong. “So let’s get this straight,” Mr Chiu the lawyer asks me. “In France and Holland they vote first, then the next day they find out the result?” I assure him that this is exactly how they do it. He shakes his head doubtfully. “I prefer our system. Announce the result first, then have the election. That way, everyone knows who to support.”

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[boomerang] Posted by Simon at 10:15
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June 02, 2005
Daily linklets 2nd June

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[boomerang] Posted by Simon at 17:38
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» Far East Cynic links with: I'm reading on a jet plane.
» Far East Cynic links with: I'm reading on a jet plane.




More textiles myths

Following on from Tim Worstall and my post on the EU textile lies comes some interesting research from Stephen Frost. He notes the Chinese apparel export boom has not come at the expense of other SE Asian countries. Strike that myth. Indeed they may benefit further as several Chinese firms contemplate opening factories in SE Asia to avoid American and Europe protectionist measures.

That's the thing with free trade - it can increase the pie for everyone. Why? Because cheaper prices mean more people are prepared to buy (in economics speak, the supply curve is shifted to the right resulting in lower prices but more demand). Now you can scrap the guilt card from the protectionist playbook too.

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[boomerang] Posted by Simon at 15:03
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Free drugs advice

If only Schapelle Corby read blogs. ESWN takes a fascinating trip through an undercover drugs bust. As a bonus he has free advice for those in the drugs trade, why Schapelle Corby wouldn't have stood a chance if she was caught in the US and what a bad Chinese restaurant really means.

Go. Read. Now.

Update: CC notes the Corby apologists have started a blog. Talk about making an industry out of one woman's suffering.

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[boomerang] Posted by Simon at 10:43
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Poachers turned gamekeepers

Hong Kong has no competition law. The business scene is dominated by tycoons in cosy cartels with a compliant Government*. With that in mind, today's SCMP:

Christopher Cheng Wai-chee, a clothing and real estate tycoon, has been appointed to head a committee that will review Hong Kong's competition policies.
This is no reflection on Mr Cheng's abilities. But it seems strange to put a tycoon in charge of such a review. Or it would anywhere else but Hong Kong, the tycoon's paradise.

* For proof, try Michael Suen's folding under pressure from property developers in today's SCMP:

Property developers will not face new regulations to prevent them from selling most of their flats through internal sales, the housing chief said yesterday. Michael Suen Ming-yeung told legislators the property market was still vulnerable and "it is essential to let it grow healthily".
The same property market that has doubled since SARS. The only vulnerability is rising interest rates and developers' profits.
While urging legislators to be patient to wait for developers' self-regulation to take effect, he also reminded the public not to make hasty decisions on property purchases. Price lists are often not released before internal sales, depriving potential buyers of key market information.
For example a record price for the Arch penthouse was announced, but it was only discovered later the same buyer got discounts on 3 other apartments purchased in the same development. This smoke and mirrors approach naturally emphasises the high prices and obscures the discounts. That way the developer hopes to set a benchmark price for the development to sell the other apartments.

The Government hasn't seen fit to deal with it.



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[boomerang] Posted by Simon at 10:04
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June 01, 2005
Daily linklets 1st June

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[boomerang] Posted by Simon at 16:22
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Top referrers and stats for May

Thanks to the top referrers for May:

Mr Brown
Hemlock
2004 Weblog Awards
Cowboy Caleb
Flying Chair
ESWN
Fumier
Shaky Kaiser

Thank you to everyone else who also linked and visited.

A special shout-out to my family vet, Dr. Lloyd. When he's not looking after Misti the money-pooping machine he's a reader of this site. I even wrote about Lloyd's practice once. He also hosted the famous Dogs on Prozac talk. Lloyd - you're reader of the month*.

As I did last month, some stats for May:

* 20,230 unique visitors made 47,448 unique visits, reading a total of 91,742 pages and drawing 5.73 GB of bandwidth.
* This equals 1,531 visits per day reading 2,959 pages each day. In other words each visitor read 1.93 pages on average. Each visitor returned on average 2.34 times during the month.
* 731 added this site their to favourites. 182 subscribe via Bloglines and 107 via Feedburner.
* 64.7% of you use IE, 20.2% Firefox, 3.2% Safari, 2.2% Mozilla, 1.9% Opera and 1.1% Netscape to browse this site. 86% of you use Windows, 6.3% Mac, 1.6% Linux.
* 15.3% of visits were via search engines, of which Google was 67.1% and Yahoo 25.8%. The top search phrases were "Hong Kong Disneyland", "Nancy Kissel" and "China's Population". And thanks to my guest blogger I'm getting a good number of hits for "Korean babes".
* The most visited individual pages were the "Everything you wanted to know about blogging but were afraid to ask" (thanks to a Times article linking it), "Korean babes by blog" (told you) and "Google and the Great Firewall".

Update

At Bingfeng's request, some geographical data although it isn't that reliable (especially given the use of proxy servers):

US = 52%
Australia = 8.6%
China = 5.1%
Singapore = 4.75%
Hong Kong = 4.45%
EU = 3%

Alternatively a time zone share study via Sitemeter says about 40% are from Asia Pacific, 15% from Europe and 39% from the Americas, which totals only 94%. The other 6% must be aliens.

* Does this qualify Misti for a discount? Please?



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[boomerang] Posted by Simon at 15:38
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To catch a liar

Tim Worstall caught out the EU in a lie over stats related to the looming textile quotas on China. Today Jake van der Kamp in the SCMP follows through with the next part of the lie.

EUlie.jpg

Quota restrictions on garment exports, which were imposed by the developed world on developing countries 30 years ago as a route (supposedly) to gradual adoption of worldwide free trade in garments and textiles, were finally abolished on January 1.
That's right. America and Europe have had decades to prepare for this liberalisation of trade. Decades.
...mainland knitwear exports to the EU account for only 0.2 per cent of the EU's imports and we are talking here of EU imports after eliminating trade between EU countries. Of course, knitwear exports also account for barely 25 per cent of the mainland's exports of garments and textiles to the EU. They are the most egregious examples of the garment export boom to the EU.

But I am only following the example of European trade negotiators in being selective in choosing my example. When they complain about China's rag trade exports they invariably pick on women's white silk ballroom gloves or floral handkerchiefs or similar minute categories. Very well, fellas, we will let you say what enormous increases in import growth you have seen in your own selective choices so long as you also tell us how tiny a proportion each of them constitutes of your import bill.

But let us look at the bigger picture here. The red line in the second chart shows you what really irks Europeans in their trade with the mainland. It is that the mainland's trade surplus with them has shot up to a level US$5 billion a month and it has all happened very recently. The figure three years ago was barely 10 per cent of what it is at present.

And now look at the blue line. It represents a four-month average of the mainland's trade surplus with the EU in textiles and garments. Up to 2002 this accounted for most of the overall surplus but now, even after having risen with the abolition of quotas, it accounts for barely 20 per cent. If the EU wants a culprit for its sudden trade imbalance, that culprit is not textiles and garments.

Try the light green line on the chart instead. It represents the mainland's trade surplus with the EU in machinery and electrical equipment. In deficit until 2003, this category is now running at a surplus of US$2 billion a month in the mainland's favour. Yet I have not heard a peep from the EU about this one. The rag trade is an easier target.

But let us be grateful that the attention of Europe's politicians has now been focused inwards with France's rejection of an EU constitution. They will have to start looking for their villains in their own countries again, which, fortunately, means less attention to pseudo-villains abroad.

I wonder if the numbers are the same for the US? I imagine they are.

You see, even the EU and USA believe in the bogeyman...even if he doesn't really exist.



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[boomerang] Posted by Simon at 10:57
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» Tim Worstall links with: Those Textile Quotas.




The Singaporification of Hong Kong

The world has three Chinese political entities: China, Taiwan and Singapore. Hong Kong, while firmly within the PRC's grasp, is rapidly moving towards Singapore's political system.

To wit: Tsang bent on one-man race, with 701 votes win says The Standard. That's 701 votes out of 800. If he secures that many nominations it locks out any other candidate. And it's starting to happen. The SCMP:

Democratic Party chairman Lee Wing-tat suffered a severe blow in his campaign for chief executive yesterday when the strong support he had been counting on from the social welfare sector failed to materialise...The 36 Election Committee members in the sector originally said they would use their votes as a block after polling social workers on their views. But now only 14 members say they will follow the result of the poll.
No prizes for guessing who's got to those electors. Also from the SCMP, a report the pro-Beijing electors are rapidly falling into line:
Donald Tsang Yam-kuen hasn't formally launched his campaign for chief executive yet, but already more than a quarter of the Election Committee - representing pro-Beijing interests - looks like nominating him for the top job...Last night the Democratic Alliance for the Betterment and Progress of Hong Kong decided to urge its 103 electors on the 800-member committee to back Mr Tsang's candidacy.

Speaking after a meeting of the DAB's central committee, party chairman Ma Lik praised Mr Tsang for his rich experience in public administration and said he was someone who "loves China, loves Hong Kong"...As well as the DAB representatives, nearly 100 Election Committee members - representing farmers and fishermen, the Heung Yee Kuk and district councils in the New Territories - have agreed to support Mr Tsang.

The DAB can't stand The Don. They see him as a vestiage of colonial rule (witness his knighthood, which he refuses to give up), a toff who's "patriotism" (read toadying to Beijing) is questionable. But Ma Lik and his DAB have been given their orders and they are loyal foot soldiers.

How is this like Singapore? Simply because while there is the machinery of an election the result is pre-ordained. There is no real choice in the matter. The PAP have the added benefit of a decent track record to back up their cajoling and implicit consequences of voting against them. Beijing doesn't have the track record (Tung Che-hwa, anyone?) but certainly have a nice line in cajoling and threats.

However there is some good news. Whereas in Singapore defamation laws are an effective tool of controlling speech and opposition, in Hong Kong defamation actions don't always work.

But this slow motion farce of democracy is painful to watch. If Beijing are going to subvert the Basic Law, why not put us all out of our misery and simply appoint The Don. That's what they are doing by other means already.



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[boomerang] Posted by Simon at 10:22
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Ching Cheong and Chinese media brainwashing

Arrested Straits Times journalist Ching Cheong is alleged to have "confessed" to being a spy for an undisclosed foreign intelligence agency. The Foreign Ministry naturally said the arrest had nothing to do with Ching's attempts to gather secret interview transcripts with Zhao Ziyang (someone the CCP has never been sure how to deal with):

The ministry's spokesman, Kong Quan, denied that Ching was apprehended as part of a crackdown against the circulation of a manuscript containing remarks from deposed leader Zhao.

When asked about the case, Kong said: "I can make this very clear to you, Ching's case is totally unrelated to Zhao Ziyang. We are a country with rule of law. We only act on evidence. He has confessed to it.''

You can imagine how he was made to confess. What is most incredible is Ching was once the deputy editor-in-chief of the pro-Beijing Wen Wei Po paper. He quit with a brace of others in response to Tiananmen in 1989. The repercussions of those events are still being felt today.

Co-incidentally (or not) the SCMP reports all non-official media reporters must attend a week long brain-washing course to retain their licence:

Beijing has launched a nationwide ideological indoctrination campaign for journalists to tighten its grip on the media. Most of the tens of thousands of journalists not working for official media organisations have been asked to attend week-long courses in order to qualify for a reporter's licence, sources revealed....

In Beijing, many journalists have been required to pay more than 1,400 yuan for the week-long course. The two-part course includes theoretical study of Marxism, Leninism, Mao Zedong Thought, Deng Xiaoping Theory and Jiang Zemin's Theory of the Three Represents and lectures on ethics and regulations.

Journalists are required to produce a paper on the theoretical content and sit a two-hour written test on ethics and the regulatory environment. "The paper is like the one we did for our university's compulsory political course," a Beijing-based journalist said. "The second part is more like the written test for a driver's licence. The key is to remember the main points of the state regulations and rules."

But double standards are at play.
Shanghai journalists said they were only charged a few hundred yuan for their course and did not have to write a theoretical paper.
Expect even more journos to move to Shanghai in the months ahead.

Other reading on Ching Cheong

Those who dare gives some background on the Straits Times.
Chris on the loose definition of spying.
Singapore Angle has plenty of links.



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[boomerang] Posted by Simon at 09:53
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» Asia-Pacific Journalists Network links with: ST Journalist Spying?
» e pur si muove links with: Press Coverage of Ching Cheong’s Detention
» Daai Tou Laam Diary links with: Interesting Update On Ching Cheong
» HGH links with: Phentermine
» armoires balloon basket battery bench links with: algerema
» bakery beans buffet caviar cereal links with: crusado