July 29, 2005
Men an Endangered Species in HK?

Today's Standard carries the story of how the ratio of men to women in Hong Kong has changed substantially over the last two decades. While in 1981 for every 1,087 men there were only 1,000 women, the situation has reversed - now there are only 929 men for every 1,000 women.

Why is that? Obviously Hong Kong is not the drive-by shooting capital of the world, so it is not due to violent crime. Rather, it is due to the number of domestic servants that have come to the territory from the Philippines, Indonesia, Sri Lanka and Thailand, as well as because of the number of one-way female permit holders coming over the border from the PRC.

The writer Gavin Bowring (any relation to the journalist Philip Bowring, or for that matter to Governor Bowring from the 1850s?) extends the trend further to an absurd and amusing level:

The department says that if this trend continues, men will be a rare commodity by mid-2033 with only 698 of them to cater to the needs and desires of 1,000 women, with the total population standing at 8.38 million - an average growth rate of 0.7 percent annually from the current 6.8 million.
He goes to say that because Hong Kong's women are better educated and qualified than the men, the number of women entering the workforce over the last 18 years was almost double that of men.

What a change from the early days of Hong Kong, when women were a rare sight, and according to the Superintendent of Police Charles May in 1877, "over 80 per cent of the Chinese women in the colony, then numbering about 24,000, were engaged in prostitution." Shows what can happen when women are given proper opportunities and an education... something some of those 'female one-way permit holders from China' could use some of as well.

show comments right here »

[boomerang] Posted by HK Dave at 18:47
Permalink | Speak Up (5) | TrackBack (0)





Hepatitis B

On Saturday August 6 Answer to Cancer will hold an 8k/4k walk/run to raise money for cancer research and education near where I now live in Oregon.

Adrian Elkins was 19 years old when he was diagnosed with terminal, primary liver cancer (HCC), a complication as a result of chronic, hepatitis B he contracted at birth in Calcutta, India. During the final 6 weeks of his life, Adrian started The Answer to Cancer Foundation, in an effort to educate those with hepatitis B about the potentially life-threatening risks associated with this disease...

The Answer to Cancer Foundation was developed to educate people about liver cancer, and to promote the involvement of the general public in research, treatment awareness and education as it relates to liver cancer and associated illnesses, specifically Hepatitis B. Our mission is to raise funds for organizations and associations that have a similar mission and a large national reach. We strive to make a difference, on a local level, by generating attendance at our events (primarily races), gaining financial support for our cause from various corporations and donors and by integrating the community into all of our efforts through race participation and the distribution of educational information at our events.

It will hold three fundraising races this year, one in San Francisco (this past April), one in Oregon this coming month, and one in New Jersey in September. While these sorts of fundraisers are common enough in the United States, I do not recall this happening that often while I lived in China. The most famous Chinese charity, Project Hope, raises money for rural children to return to school. That is a worthy cause, but like any large society, China is a country with many needs. Unfortunately, it is still a country with limited economic means.

Answer to Cancer focuses primarily on one type of cancer, liver, and on one of its primary sources, Hepatitis B. Though money raised by Answer to Cancer will primarily be used in the United States, in fact its greatest impact will be felt in other countries, perhaps especially China.

There are two broad categories of Hepatitis B: acute and chronic. It is caused by a virus which is transmitted through blood or during sex. Acute Hepatitis B is what the infection is called during its first 6-9 months. Likely symptoms at the beginning of an infection include nauseousness, achy joints, and discomfort in the abdomen. However, it is quite possible that you will show no symptoms whatsoever. That does not mean, though, that the virus is not attacking your liver. If your body is unable to get rid of the virus then your infection becomes chronic.

The likelihood of developing a chronic infection from an acute one slowly declines as you get older. If you receive Hepatitis B as a newborn through your infected mother than you have almost a 90% chance to develop a chronic infection: sadly, newborns do not have adequate immune systems to fight the virus. An adult has only a 5% to 10% chance of developing a chronic infection. Once you have chronic Hepatitis B you will always have it: your body ceases to fight against it. Not in every situation though does chronic Hepatitis B lead to death. Sometimes nothing at all happens: you remain a carrier but your infection is not full-blown. If your infection does become full-blown then it will attack the liver.

As it inflames the liver scar tissue begins to form throughout the organ: liver cirrhosis. This scaring can lead to liver cancer. Because this cancer is difficult to detect in its infancy, once you have been diagnosed it is usually too late to treat.

In China, 170 million people are carriers of Hepatitis B and of that number, 10% have chronic Hepatitis B. While there is a vaccine available for Hepatitis B many people in China have yet to take it. Hepatitis B carries a significant negative stigma in China. Workplace discrimination, as well as discrimination in general against Hepatitis B sufferers makes for incredibly sad reading. In Zhejiang there was a famous case of a young man, Zhou Yichao, killing a local government official after he was denied employment because he was a Hepatitis B carrier. This stigma is a great pity since Hepatitis B is not easily transmitted (touching or saliva won't do it) and it is easily preventable with a vaccine.

In the United States there are comparatively few chronic Hepatitis B sufferers and consequently there is little impetus in this country to fund research to find a cure. However, worldwide there are few other viruses so widespread: 2 billion people have been infected at one time or another with Hepatitis B and of that number 350 million people have chronic infections. Many of those people live in China.

As China economically develops it will probably start allocating more money to Hepatitis B research and I have no doubt that eventually a cure for this virus will be found. For now though, there is a disjunct between where the economic resources are located and where the disease is most prevalent. Answer to Cancer is a way to bridge that gap. If you live near where the fundraising walk/runs will be held it would be great if you participated! However, for those who live too far away then Answer for Cancer provides a page where donations are accepted. For those bloggers who read this post, I deeply urge you to put a link to Answer to Cancer's donation page on your front page. The more publicity Hepatitis B research and education receives, the better. For readers of this post I urge you to go directly to this page and make a donation. Money funds research and that will be the only way we can find a cure to this virus.

Perhaps Hepatitis B seems too far away to you or perhaps not entirely real. For those of us who live or have lived in China however, I can guarantee that some of the people you work with, study with, play with, have meals with, or just see on the street, have chronic Hepatitis B. Hepatitis B is quite real: helping fund research will affect more people than you can imagine.

show comments right here »

[boomerang] Posted by Andres at 08:26
Permalink | Speak Up (1) | TrackBack (0)





July 28, 2005
All I need is the Air that I Breathe

America, China, Australia and three other major nations have achieved a deal today on greenhouse gas emissions. But before all you environmentalists get out your green party hats, there's a catch to this agreement - the gas reductions are completely voluntary, no targets are set, and it's primarily centered around the transfer of 'cleaner' technology to countries like China and India.

So it doesn't appear as though smog relief is going to happen anytime soon in Hong Kong or anywhere else in urban China. Especially when China is now planning an Eisenhower-era national road network that will serve to boost the domestic car manufacturing industry. Great for industrial production and employment, but terrible news for the environment, with car diesel fumes likely to clog our respiratory tracts for decades to come.

Evidence that China is adopting the model of American suburbia as its way of life came in this Xinhua article yesterday, which announced that the largest US property group (who is also the largest builder of American-style suburban malls), the Simon Property Group, has announced plans to build 12 mega-malls in China in conjunction with Morgan Stanley and Wal-Mart. This comes as Wal-Mart has announced it would have 90 mega-stores in China within the next two years.

So it seems as though the car will play an increasingly critical role in China, which, as in the US, has caused all sorts of health problems amongst Americans that no longer know what to do with the two long bony, jointed things sticking out from below their pelvis. China's 'Little Emperors' raised in the era of the one-child family policy better get used to cruising over to Gold's Gym for a workout!

The only thing that may de-rail this national road project are riots like these; in a country much more populated than the US per square mile, land used for road-building is already generally owned by existing tenants, usually poor urban farmers. And the time when such farmers meekly left their plots upon receiving their compulsory purchase orders may be drawing to a close...

show comments right here »

[boomerang] Posted by HK Dave at 17:22
Permalink | Speak Up (0) | TrackBack (0)





In Malaysia, You Are What You Eat

Today's Standard carries a fascinating story of Chinese tourists in Malaysia, a country where racial tension is always simmering just below the surface. About 600 tourists from Hong Kong and Mainland China were staying at the rather desperately named "First World Hotel" in the Genting Highlands, famous among Chinese visitors in particular for the casino facilities available in that resort area. It turns out the Malay staff at the hotel had issued check-in cards for all of the Chinese tourists complete with sketches of pigs.

The Chinese tourists then in protest began to sing the Chinese national anthem and demanded an apology. But the hotel then mustered 40 guards and broke out the guard dogs (wonder what Malaysian Chinese would think of that?) to quell what they regarded was a race riot in progress - which is when scuffling broke out. The ending of the article says it best:

Wang Qiang, a tourist from Sichuan province, where there has been an outbreak of swine fever, was irate.

``On our hotel cards are these cartoon drawings of pigs. Is this respect?'' Wang was quoted as saying.

Resorts World, the owner of the hotel, described the incident as "amicably resolved."

This incident does bring up a wider issue. A number of Southeast Asian countries have significant ethnic Chinese minorities that make up a disproportionate portion of the population. The indigenous populations of those countries have created a working equilibrium with these Chinese minorities, often by passing discriminatory laws against them, creating a racial modus operandi within the country. How will China's rise, and increasing numbers of mainland visitors that may not know the intricacies of these often delicate racial balances, change these countries?

show comments right here »

[boomerang] Posted by HK Dave at 08:55
Permalink | Speak Up (3) | TrackBack (0)





July 27, 2005
Myths of Chinese Exploration

China has seized upon the 600th anniversary of the exploratory voyages of Chinese Muslim eunuch admiral Zheng He to Southeast Asia as an opportunity to export some national historical myths. This article, first printed in the Toronto Globe and Mail, discusses how a light-skinned girl from a remote African island has been turned somehow into incontrovertible proof that Chinese sailors made it to Africa in the early 15th century. The use of this historical mythology is useful to China both in terms of promoting the history of benign intentions in foreign relations, and in laying claim to a vast scope of influence in world affairs as its historic birthright.

The girl, Mwamaka Sharifu, says her village had a legend that some shipwrecked Chinese sailors made it to her island, where they married local women. Supposedly one village, Shanga, was named after Shanghai. [never mind that in the early 15th century, Shanghai barely existed - its rapid rise to prominence only occured under colonial occupation in the 19th century]. For this, she is being offered a full scholarship to study Chinese medicine in China.

Western writer Gavin Menzies and his book 1421 have been celebrated by Chinese everywhere for suggesting that the Chinese not only rounded the Cape of Good Hope but also made it to Australia and the new world. Never mind that his book largely is based on speculation, on the realm of the possible, rather than on hard fact. Undoubtedly Zheng He and his peers did embark on a number of groundbreaking voyages; that he actually made it to four different continents, however, is open to grave doubt.

But then again, every nation embellishes its own history, and perhaps China should be forgiven for this particular bit of PR given its peaceful message...

show comments right here »

[boomerang] Posted by HK Dave at 00:37
Permalink | Speak Up (8) | TrackBack (1)


» Bluejives Uncertain Reality Principle links with: Admiral Zheng He and 15th Century Chinese Exploration: Myth or Historical Reality?




July 26, 2005
How Will China Change Global Tourism?

Today's Guardian newspaper carries an article on the first group of Chinese tourists officially allowed to visit Britain as vacationing tourists (previously they were only allowed in on business or student visas).

Lin Li, a 19-year-old student from Beijing who had won her ticket on a TV game show, has already been soundbited by Reuters, three official Chinese state news agencies, and Sky News. And still she shows no signs of flagging despite the rain dripping down her neck.

"What do you think of London, Lin Li?"

"I am very lucky dog to be here! This is American English. It means, I am very lucky lady indeed."

"How have you found the British so far?"

"Very helpful and kindly and warm-hearted. For example, yesterday, when we arrived at the hotel and were waiting for the lift, a woman, she pressed the button for me! And then when I entered the room, the lights had no power, and a man came to put them on!"

We were also "very clean", she says. Mrs Zhang, Mrs Laun and Mrs Cao, all professional women in their late 40s to 50s, agree. They thought it was because of "Britain's famous gentleman culture".

It is of course wonderful that these Chinese tourists had such a positive impression of Britain, especially after the two sets of London bombings that might have colored the impressions of other tourists.

But one question is: how will the Chinese customers change the global tourism market? To date, globally there has been a mve away from mass-market package tourism, and towards independent travel and cultural tourism. Will that change as increasingly wealthy mainlanders take to the international skies? The article alludes that the Chinese seem to prefer the tourism spectacle:

"It's brilliant, really brilliant." says James Bradbury, the general manager of Madame Tussauds. "We've done a lot of research into China. It's our number one emerging market. You can't overestimate how important it will be. We already have an attraction in Hong Kong, so we know who they like. It's why we moved Victoria next to David Beckham. We did that today especially for them."
Or will tastes change quickly, and will Chinese tourists embrace independent travel as their restrictions grow fewer and far between? It's a subject I've studied at length as I have a cultural tourism company in Hong Kong, and I have my own opinions, particularly on differences between Northern Chinese and Southern Chinese tourists. But how do the rest of you feel?

show comments right here »

[boomerang] Posted by HK Dave at 17:51
Permalink | Speak Up (7) | TrackBack (0)





Heritage Foundation: Bullets Over Beijing

The Heritage Foundation has put together their typical doomsday scenario forecasts making a case for clear and present danger over the Taiwan Strait. John Tkacik makes a case for helping Taiwan double its defense spending, rebuffing pro-China politicians in Taiwan, make Congress see the 'light' of the trigger-happy China hawks, and for 'speaking the truth' by saying that China is our enemy. All this he extracted from the Pentagon report recently, which said that China was developing in a way that suggested it was becoming more powerful.

Well, overly trigger-happy hawks generally get their wish. If you tell someone they're your enemy enough times, they'll naturally start to believe it. Of course, China has its own share of loose cannons, what with generals saying that they'll nuke the US if they intervene in a Taiwan scenario. But it seems that this author has forgotten about the much more powerful 'soft power' that can be used both with China and its neighbors to achieve results, as the yuan revaluation demonstrated last week. The report makes for interesting reading, but is all too typical of the Heritage Foundation's strategic worldview - all guns, no butter.

show comments right here »

[boomerang] Posted by HK Dave at 11:50
Permalink | Speak Up (3) | TrackBack (0)





Money: The Root of All Evil?

That old nugget of wisdom appeared to hold true yesterday at the Lo Wu checkpoint, where an old lady was busted for trying to smuggle HK$1.9 million into Hong Kong in a rather novel way. She had stuffed all the money inside some 'root' vegetables she was carrying - namely, some large taro. Here is the article from the Shenzhen Daily:

A woman from Hong Kong had been caught smuggling about HK$2.2 million (US$283,100), of which HK$1.9 million was stuffed in taros, customs officials announced Friday. The seizure was the largest currency smuggling case detected at Luohu Checkpoint this year, Shenzhen and Hong Kong newspapers reported. The 60-year-old women, identified as a housewife surnamed Chan, was crossing the border into Hong Kong at 11:45 p.m. Thursday, 15 minutes before the checkpoint closed, when she was asked to open her trolley bag and handbag, the Shenzhen Special Zone Daily and South China Morning Post reported.

An X-ray found an undeclared HK$12,500 in her handbag. When customs officers further questioned the woman, she became nervous and raised suspicions. A closer look at the X-ray found seven taros that looked suspicious. Officers cut open the taros to find HK$1.9 million in rolls of banknotes. The officers then found 18 rolls of banknotes amounting to HK$275,000 in the aluminum handle of the women’s luggage bag. She said the money was hers and had been kept on the mainland for some time.

She should have kept the money in her purse under the legal limit of HK$8,000. tsk tsk.

show comments right here »

[boomerang] Posted by HK Dave at 08:29
Permalink | Speak Up (4) | TrackBack (0)





July 25, 2005
Irony of ghosts

There are few books on China that are optimistic or joyous, books with happy endings or ones that strengthen your faith in humanity. For China's history, what can be said of the last two hundred years? Fantastic incompetence, malicious rule, overweening pride in the face of often unscrupulous outsiders: few groups of people have suffered at the hands of their leaders the way those in China have.

Reading through Red Dust last fall, the memoir of an artist traveling throughout China at the beginning of the Deng Xiaoping Era, I was hard pressed to find a satisfied couple, an unsullied smiling moment, an affirmation of hope (unless one counts Ma Jian's departure from China as one). In Chinese Lives, an oral history of Chinese interviewed in the middle 1980s, similar difficulties were encountered. Perhaps the 20th Century was a particularly bad period, but any one hundred year period of Chinese history would yield worthy examples of evil aforethought.

This past week in what I believe was my third try, I checked out Hungry Ghosts, a history of the great famine in China of the late 1950s and early 1960s. Last summer I also checked the book out from the local public library a couple of times. Each time it lay in my bedroom while I read other books: a victim of my dislike for sad stories conflicting with a desire to know the truth of a situation.

The famine that gripped Ethiopia in the mid-1980s, the one which defines deprivation for those my age, pales in comparison to what was visited upon rural China in the late 1950s. Perhaps the only other famine of comparable evil was that which was visited on Ukraine in the 1930s, but while Stalin set the bar for death quite high Mao, as was his want in all matters relating to misery, was determined to supercede any challengers. All three cases, needless to say, were directly caused by the actions of humans.

This is something that I continue to find difficult to understand about China and its history: the propensity for its leaders to regard the lives of Chinese so cheaply. This is not a recent phenomenon. It would be difficult to find a single century or even a decade where Chinese did not die needlessly because of their governments' policies.

Perhaps the only two places where you could find an exception to the century or decade rule are Macau and Hong Kong. Neither is particularly blessed with arable land, resources, or until reunification, defensible borders, but in both places the average person has thrived, achieving a standard of living higher than in any other place in China and a measure of individual freedom completely unknown on the Mainland.

There cannot be a significant difference in the culture of the people of these two regions and the Mainland: Hong Kong is famously made up of refugees from the Mainland, Macau less famously so but not less made up of refugees. Culturally speaking, all three are recognizable to each other, much like Americans, Canadians, and Australians can easily find similarities between themselves and the British.

How to explain then the lack of tragedy in Macau and Hong Kong's histories? Macau, the invisible colony, a place perhaps best known for not being known, 400 years of imperial anonymity ending in a reunification that lacked all of the pomp of its Pearl River neighbor. Hong Kong is best known for its Gongfu movies, a cultural export where even death is but a moment for slapstick. Prior to reunification it was the wealthiest of any place ruled in the name of the Queen of England. These are not the ingredients of personal devastation.

We could look at the administrators of both colonies for explanation, and while Hong Kong's post-WWII colonial governments made wise economic decisions, it seems unlikely to me that the quality of the people in either administration would have been significantly different than what could be found on the Mainland: intelligent, incompetent, benevolent, or venal bureaucrats are probably found in reasonably equal measures in every society on Earth. The notion of arguing that intrinsic differences exist between different races is morally repugnant and intellectually irrational.

But it seems equally unreasonable to say that differences in affluence and freedom between different societies are either accidental products of history or wholy determined by their natural environments. Recognizable differences in the standard of living in different places that continue for decades or centuries show that something different is happening in each place and that whatever the difference may be is having an effect on the lives of common people.

If Macau, Hong Kong, and the Mainland share strong ethnic and cultural affinities, then the primary difference between the places seems, in my mind, to be political: the rules of a particular society make it a success or a failure. The rules for success seem rather basic: rule of law that treats every citizen equally in the political sphere, rule of law that is predictable in the economic sphere, freedom of speech that allows citizens to discuss topics without fear and without having the outcome predetermined, a recognition that sovereignty resides in each individual and so each individual has an equal political opinion. Colonialism may have prevented the recognition of the sovereignty of those who lived in Macau and Hong Kong, but in almost all other respects the administrators of both colonies put rules into action that benefited their residents far more than anything done by Mainland governments.

In Beijing in the last 25 years more people have come to understand that these basic political rules are necessary for the improvement of the lives of the common people. Perhaps there were those in the Guomindang who also understood this, but certainly Jiang Jieshi did not. And while there exists in Confucianism the notion that leaders are obliged to return the common people's obedience with just rule, it would seem that over 2,000 years of Confucianisn in action yields more often an amazing blindness to others' misery. Obligation without accountability is easy to ignore: the needless deaths of hundreds of millions of Chinese over the centuries can attest to that. It would be irony indeed if the CCP, the organization responsible for the murder of more human beings than any other in history, the source of so many hungry ghosts, was the agent of such a positive change in China's political culture.

show comments right here »

[boomerang] Posted by Andres at 12:46
Permalink | Speak Up (8) | TrackBack (0)





Pluto's Lethal Injection

We have seen the furore that erupted a couple of months ago when it emerged that Disneyland was originally planning on offering shark's fin on its banquet menus (it has now said they would drop it from the menu and only do so if pressured by its wedding banquet customers). Unfortunately, they seem to have a knack for hitting a raw nerve with animal rights campaigners and their own environmental policies. In today's SCMP:

Forty-five dogs, some believed to have been used as unofficial guard dogs on the site during construction, have been caught by government dog catchers at Disney's request. About 40 are thought to have been given [lethal] injections within days of arriving at government kennels; only three or four have been found a home by an animal welfare group. Two puppies are still seeking homes.
In the article Disney denied that the dogs had ever been officially used as guard dogs and that the dog catchers had been called in because they were roaming in packs and were a threat to the staff on-site.

One can only describe Disney's environmental PR for the launch of their Hong Kong park as "Goofy".

show comments right here »

[boomerang] Posted by HK Dave at 11:40
Permalink | Speak Up (2) | TrackBack (0)





Why Can't HK Grads Get Jobs?

Today's Standard carries an article about how Hong Kong university graduates are unable to secure good jobs, even as Hong Kong's economic climate continues to improve. 40% of the 90,000 applicants are looking for single person-units from the public Housing Authority, as they cannot afford to move out of their families' apartments, some as small as 200 sq. ft.

The obvious subtext is this - the highest-paying local employers simply do not value local graduates, and prefer to hire foreigners or Hong Kongers that have gone abroad for their education. One can blame part of this on employers' mindsets, but obviously another problem is just that local universities are not putting out a high-enough quality product. It's not the professors - many of them are excellent, and are also among the highest-paid in the world. Airport Authority Chairman Victor Fung (of Li & Fung fame) was absolutely right in his speech last week that local universities need to become more competitive by seeking a far more diverse student body. By largely limiting enrollment to local students, the pool of academic talent entering Hong Kong's tertiary institutions is of course going to be limited. Columbia University in New York would be a far less prestigious institution if it largely only accepted New Yorkers.

The next step beyond that is to make it simple for foreign students studying here in Hong Kong to get work permits. Only then will the top-tier Hong Kong employers - its banks and consultancies - be willing to hire local grads. Some might say it makes the lot of the current crop of Hong Kong youth even more disadvantaged - but competition is always a good thing. Hong Kong has always been a city of immigrants - in fact the growth rate of new immigrants today is far lower than in previous ages - and to shut off the taps of new talent today would only hurt Hong Kong's future.

show comments right here »

[boomerang] Posted by HK Dave at 11:26
Permalink | Speak Up (0) | TrackBack (1)


» From a Singapore Angle links with: Local Grads can't get jobs?




July 22, 2005
Do People in HK Read?

Have a great trip Simon! We'll hold down the fort.

Many new residents in Hong Kong start entertaining a growing suspicion: Hong Kong people don't read. These newbies don't see many bookstores, almost none at street level, and most of the bookstores they see sell English books. They go to showflats and find all of them, whether mansions or hovels, remarkably free of books. Then, they go to furnish their apartment, and discover that most furniture stores don't even provide bookcases, and the ones they do provide don't come even close to holding all their books. Yet Hong Kong is an international, cosmopolitan city. What gives?

The answer is complicated. Hong Kong people are of course busy, harried people, and find it difficult to squeeze a novel into their daily routine. And true enough, Hong Kong's business-first culture means there is not the same indoctrination of reading as a form of lifelong self-improvement.

But there are bookstores, it's just that many of them survive and even thrive on the 2nd or third storeys of buildings. And Hong Kongers are huge users of the public library system, which helps keep used books out of their tiny apartments, where they won't fit.

Still, it would come as a shock to that already jaded, three-months-in-the-Kong resident to wander over to the Convention and Exhibition Centre this weekend. The annual Hong Kong Book Fair is now on - a staggering 500,000 people visited last year, equal to the attendance on the July 1, 2003 march. This writer found himself over there yesterday morning and was blown away by the masses of people swooping into the Centre on a Thursday morning. It reminded him of his first visit to the new Sands casino in Macau, with a flood of people clamouring to pay HK$20 just to get in. Granted, there are discounts on books averaging 20%, but that it motivates almost 10% of the population to go check it out changes many stereotypes one might have about a literature-free public!

show comments right here »

[boomerang] Posted by HK Dave at 15:46
Permalink | Speak Up (8) | TrackBack (0)





Seperation anxiety

For the next 2 weeks I will be spending quality time with my family in an undisclosed location, by which I mean Australia. But fear not. You have already sampled some of Dave's excellent work (Stanley Ho's 36 girls, China's mounting social costs and why we need a strong China).

His co-guest blogger will be the talented Andres Gentry.

Enjoy their pearls of wisdom.

show comments right here »

[boomerang] Posted by Simon at 15:34
Permalink | Speak Up (0) | TrackBack (0)





Daily linklets 22nd July

The 2.1% more edition:

show comments right here »

[boomerang] Posted by Simon at 12:49
Permalink | Speak Up (0) | TrackBack (0)





Deconstructing China's growth

One of my hobby horses has been China's economy, and in particular the unreliable statistics used to steer the ship. I've created a China economy category to group together these posts*.

Jake van der Kamp again finds China's latest GDP doesn't add up:

I have a problem with simple things like one plus one equals two when it comes to figures put out by the National Bureau of Statistics. It seems they have an entirely different sort of calculator at work in Beijing. Take the latest announcement that economic growth in the second quarter was 9.5 per cent year on year. It was a bit higher than was entirely welcome, but growth is growth and this certainly looks like a good growth number.

Just for starters, however, we were also told that the growth rate of investment in fixed assets was 25.4 per cent year over year, definitely well above the latest cool-down target of 16 per cent. Our difficulty here is that the fixed asset figure is in nominal terms while the figure for gross domestic product is in real (inflation-adjusted) terms. But it can be resolved. We also have a price index for fixed asset investment and a little spreadsheet work serves to put the numbers on the same basis. This then allows us to take the fixed asset figures out of the total and calculate how strongly the rest of the mainland's economy is growing.

Take note that it is no trivial exercise. Fixed asset investment absorbs an astronomical 53 per cent of the mainland's GDP, a figure rarely to be found elsewhere on this planet. The first chart [below the jump] shows you the result of the exercise, done on a four-quarter average basis here to smooth out the usual volatility of mainland statistics. That stated growth rate of 9.5 per cent drops to a minute 0.06 per cent, effectively zero. If these fixed asset figures are right, then the rest of the mainland's economy is not growing at all.

It gets worse. Another component of GDP is the balance in foreign trade. The second chart shows you that for the 12 months to June, this amounted to a surplus of 657 billion yuan, or 4.5 per cent of GDP. Almost all of it materialised over the past 12 months. In June last year, the surplus amounted to less than 1 per cent of GDP.

Unfortunately, I cannot calculate an inflation-adjusted figure for the surplus. The numbers simply are not there and thus I cannot give you a third line on that first chart to show what the growth of the rest of the economy would be if you took the trade figures out of GDP as well. Rest assured, however, that you would get a negative growth figure if it could be done. Even taking the conservative tack, that figure would be at least minus 4 per cent. Aside from fixed asset investment and trade, the mainland's economy is contracting, not growing.

And then we get even more of a puzzle. We are also told that consumption, another component of GDP, registered strong growth of 13.2 per cent. How is this possible? By the time you have taken out fixed assets, trade and consumption, you have very little of GDP remaining. If they are all growing by more than 9.5 per cent, what is left to pull the overall figure back down to 9.5 per cent?

Well, let us say the consumption figure refers only to personal consumption expenditure and not to government consumption. No luck again. Government expenditure for the 12 months to June was up 16.2 per cent year on year. I shall grant you that these government figures are nominal rather than inflation-adjusted and also comprise some fixed asset investment, but, even if appropriate adjustments could be made, there is no way they would yield the big minus figure we now need.

The only thing left is inventory adjustments and I am fully prepared to believe that there was massive destocking over the past six months. We are talking, however, of the very smallest component of GDP, a bare 0.33 per cent of the total last year. No, this also will not give us what we need.

What we actually need is one of the special calculators they use in Beijing. Without one of these to help us, the economic growth figures just come out as nonsense.

Perhaps they are.

Funnily enough, the SCMP also reports the vey same statistics bureau is making policy suggestions and a startling admission:
The central government has been advised by the National Bureau of Statistics against introducing further economic tightening measures despite unexpectedly rapid growth so far this year. Despite reporting higher-than-expected gross domestic product growth of 9.5 per cent in the first six months of the year, a government economist said the bureau was predicting that the economy would slow.

The economist said nominal GDP growth, a figure not revealed to the public, was a more reliable indicator than the real-growth figure in the report, which the bureau adjusted for inflation and other factors. Nominal GDP growth had slowed markedly during the past few quarters, despite real GDP growth remaining relatively constant at close to 9.5 per cent.
Nominal GDP growth is a state secret! Why? It can be inferred using a combination of the real GDP and inflation numbers. Except as we've often proved before, these numbers are rubbish. Perhaps revealing nominal GDP would give away the real game? We couldn't have that.

You wouldn't even need a special Beijing calculator.


chinagrowth.jpg

Related posts

- Invented the Abacus but can't add up
- Who to Believe
-
Lowering the sites
- The numbers game
- Not adding up
- Seeing is not believing

* It's also because I'm sick of searching for them, seeing I often refer back to previous posts. Here's a handy tip for new bloggers: always use categories.



show comments right here »

[boomerang] Posted by Simon at 11:49
Permalink | Speak Up (5) | TrackBack (0)





July 21, 2005
Revaluation day

China just revalued their currency to 8.11 yuan to the US dollar.

Surprise!

Updates

Xinhua is saying the yuan will stay in a range of plus and minus 0.3% around the new peg, although there are conflicting reports they are moving to a currency basket.

The question is whether a 2% revaluation is enough to appease the Americans and the speculators. The answer is likely not. It's a Clayton's move: the revaluation you have when you're not having a revaluation. A 2% move won't solve America's trade imbalance. Nor would a 20% move.

Malaysia, home to one of Asia's other pegged currency, has its central bank Governor meeting its Prime Minister. See below.

The official statement by the PBoC:

With a view to establish and improve the socialist market economic system in China, enable the market to fully play its role in resource allocation as well as to put in place and further strengthen the managed floating exchange rate regime based on market supply and demand, the People's Bank of China, with authorization of the State Council, is hereby making the following announcements regarding reforming the RMB exchange rate regime:

1. Starting from July 21, 2005, China will reform the exchange rate regime by moving into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. RMB will no longer be pegged to the US dollar and the RMB exchange rate regime will be improved with greater flexibility.

2. The People's Bank of China will announce the closing price of a foreign currency such as the US dollar traded against the RMB in the inter-bank foreign exchange market after the closing of the market on each working day, and will make it the central parity for the trading against the RMB on the following working day.

3. The exchange rate of the US dollar against the RMB will be adjusted to 8.11 yuan per US dollar at the time of 19:00 hours of July 21, 2005. The foreign exchange designated banks may since adjust quotations of foreign currencies to their customers.

4. The daily trading price of the US dollar against the RMB in the inter-bank foreign exchange market will continue to be allowed to float within a band of 0.3 percent around the central parity published by the People's Bank of China, while the trading prices of the non-US dollar currencies against the RMB will be allowed to move within a certain band announced by the People's Bank of China.

The People's Bank of China will make adjustment of the RMB exchange rate band when necessary according to market development as well as the economic and financial situation. The RMB exchange rate will be more flexible based on market condition with reference to a basket of currencies. The People's Bank of China is responsible for maintaining the RMB exchange rate basically stable at an adaptive and equilibrium level, so as to promote the basic equilibrium of the balance of payments and safeguard macroeconomic and financial stability.

And now Malaysia's gone to a "managed float", according to Reuters. Only the Hong Kong dollar to go.

show comments right here »

[boomerang] Posted by Simon at 20:07
Permalink | Speak Up (1) | TrackBack (5)


» Imagethief links with: China Revalues Yuan - America's Problems Solved! Oh, Wait...
» Imagethief links with: China Revalues Yuan - America's Problems Solved! Oh, Wait...
» Nieuws links with: China buigt
» Shenzhen Ren links with: Yuan revalues
» Nieuws links with: China buigt




Stanley Ho and 36 Girls

An article in today's SCMP relates the story of how Stanley Ho as a 20-year old sheltered from the Japanese invasion in December 1941 in his great-uncle Ho Kom-Tong's residence. Apparently he and a young man from Indonesia sheltered there in the basement - with 36 girls. Said Ho:

Every time we heard the sounds of bombing, the girls would all scream and flock towards the two of us and hold us very tightly. We never took advantage of them, though. It disappoints me whenever I think about it again - none of the girls were pretty.
Stanley Ho of course did alright on the ladies' front, being, amongst many other things, an accomplished dancer, and had four wives. His uncle Ho Kom-Tong, though, outdid him - he had 12 wives, and more than 30 children, most of whom lived with him in the 9,000 square foot house on Caine Road he had built for himself in 1914.

Ho's remarks were made at a ceremony yesterday dedicating the building as a Museum to Sun Yat-Sen. How fitting is it, though, that a Museum dedicated to the Father of Modern China be housed in a luxurious residence built by a compradore of Jardine Matheson, the firm that arguably started the Opium War and started the era of Western Imperialism in China?

It is perhaps even more fitting that Kom Tong Hall, the home of an arch-polygamist, was sold to the Mormons in 1960! It had been used as a torture chamber during the Japanese Occupation in WWII, and aparently over 1,000 people died in there, leading Chinese to shun the building as haunted. The Church of Latter-Day Saints used it as their base until 2002, when the Mormons tried to knock it down. If you're interested in why Hong Kong has such a hard time preserving its buildings, you may want to visit my latest blog entry on the subject of Hong Kong's Cycles of Creative Destruction:

Why must we Hong Kongers endure the incessant sound of the jackhammer, almost Pavlovian in conditioning us to accept change as a fact of life? The answer - ownership is limited, forcing this city of immigrants to try to maximize their returns on this valuable asset as quickly and efficiently as possible.

show comments right here »

[boomerang] Posted by HK Dave at 16:10
Permalink | Speak Up (4) | TrackBack (1)


» My Olive Tree links with: Stanley Ho & 36 Girls




A study of China's dynamic growth

Ben Muse points to a study by the US Department of Agriculture titled China: A Study of Dynamic Growth:

Few countries have been able to match China’s sustained economic growth, which has averaged more than 8 percent annually since 1978. The combination of size and rapid growth make China’s economy a major driver in global economic change. China’s growth has been largely investment driven, with investment consuming roughly 40 percent of gross domestic product. Gains in factor productivity were realized after China abandoned strict central planning. China’s opening to foreign trade and investment has also been a key to growth. Conditions suggest that rapid growth will continue in coming years. However, the Chinese economy faces potentially
unsustainable pressures, including possible currency appreciation, rising rural-urban inequality, unemployment, banking reforms, and an unusual combination of inflationary and deflationary tendencies that could slow China’s growth.
It looks at why China has grown so fast, the role of foreign trade, foreign exchange policy, structural problems such as the banking system, SOEs and the growing income gap, amongst others. The study succinctly lays out why China's economy has been so successful and why there is a growing challenge for China's policy makers in keeping the pace of growth.

Given the country is getting used to so continuous rapid growth, these policy challenges are vital if the CCP plan to hold on to power in the years ahead. Their successful economic stewardship has helped their hold on power now that Communism is a proven failed ideology. They have no room for errors.

This study complemetns another I recently wrote about: China's uneven progress against poverty, which looks more closely at how China has been so successful in eradicating poverty and the further challenges in dealing with it.

The underlying conclusion from both studies is simple: what has worked until now will not sustain China's economic growth going forward. The question is how can China change its model to achieve sustainable growth?

show comments right here »

[boomerang] Posted by Simon at 10:59
Permalink | Speak Up (3) | TrackBack (0)





Fear and loathing in Singapore

Hemlock's famous why Singapore is a pathetic place* can add another point. The Lion City has become a crime capital as the jobless hoardes roam the streets. Reuters says Singapore has recorded a 28% increase in crimes in the first half of this year. Meanwhile fabulous Hong Kong has recorded a 6% drop, reports the SCMP (just jump past the many pages of fawning Disneyland coverage). The official press release notes mainlanders' contributions to Hong Kong's crime scene: Most [of their crimes] involved theft, forged documents and immigration offences. However, the involvement of Mainlanders in prostitution and illegal employment remain comparably significant.

Hong Kong's immigration policies do not currently provide for Singaporean refugees. Yet.

* Note to Singaporean readers: reading Hemlock's list on your computer may or may not constitute a crime. Go to the page, read and wait 5 minutes. If the police haven't arrived, you're safe.

show comments right here »

[boomerang] Posted by Simon at 10:26
Permalink | Speak Up (2) | TrackBack (0)





July 20, 2005
Daily linklets 20th July

show comments right here »

[boomerang] Posted by Simon at 16:35
Permalink | Speak Up (1) | TrackBack (0)





China's Mounting Social Costs

NYT reporter Howard French writes compellingly about the increased rioting found across China's countryside as China's farmers take officials and company owners to task for corruption and the unaccountability of their actions. He focuses on a heavy 3-day riot over the health hazards created by a pharmaceutical plant. As many as 15,000 people were demonstrating.

We have heard for some time about Chinese citizens' newfound willingness to challenge authority when they find their life or livelihoods under threat. But what is fascinating is the reaction from the Central Government. French quotes government ministers in official statements saying that 'lower-level cadres are less competent' and that 'praised demonstrating farmers for knowing how to protect their rights.'

China's new generation of mandarins are grappling with two profound problems. The first is a lack of accountability in the political process, which can result in arbitrary and corrupt decision-making. The Central government is desperately trying to fix that by improving recruiting quality standards and reaching out beyond the Party for good civil servants; in the meantime they are becoming willing tolerant of short-term fixes like having mass protests act as a natural check on localized incompetence.

But let us hope they do not think that is the only problem; a systemic issue in China is that over the last 25 years it has gone from mass collectivization to a outright denial of many basic forms of social safety nets or protection. I'm far from being a socialist, but China's neglect of public healthcare and education systems, not to mention the environment is bringing with it mounting social costs. These are costs that China, as it becomes richer, will need to pay for in increasing amounts to maintain social stability. Because that's part of why these riots are happening too.

Is it a vicious circle though, because the Central government often can't collect enough taxes to fund these basic social needs and pension plans (that will make the US social security fiasco look like child's play when all these only children have to work for all the retired parents?) from local governments? What's your take on the solution to China's mounting social costs? Bureaucratic efficiency? More privatization? Less privatization? Democracy? Let's hear it.

show comments right here »

[boomerang] Posted by HK Dave at 14:33
Permalink | Speak Up (2) | TrackBack (0)





Pot, meet kettle

Ben Kwok's business gossip column in the SCMP, Lai See, today notes financial firms trying out blogs:

Blog blockage

Good one on the lads over at CLSA, who are boldly embracing the Blogosphere. Is there nothing they will not try?

Investors are invited to communicate with the firm's sector analysts through its website in real time. Soft-launched in May, however, some sector blogs have yet to capture the market's imagination. We note that the last message on CLSA's telecoms blog was posted on June 1, almost 50 days ago.

Here's hoping Hong Kong's investing public soon changes that.

Mr Kwok is well qualified to comment. His Lai See blog was last updated on March 3rd, 2005. Here's hoping Hong Kong's journalists soon change that.

show comments right here »

[boomerang] Posted by Simon at 14:16
Permalink | Speak Up (0) | TrackBack (0)





Power projection and rejection

The Jamestown Foundation's latest China Brief is up:

1. The Unocal Bid: China's Treasure hunt of the century. This gives an overview of China's energy security challenges, but also contains an interesting overview of what Chinese media have been saying about the Unocal bid by CNOOC.

2. Sino-Singaporean relations back on track. After a couple of spats, China and the Lion City are trying to make up. The article touches on Singapore's role in ASEAN but omits an important aspect of this relationship: Singapore's stewardship of the Straits of Malacca, a crucial shipping route for oil and goods for China.

3. The Dragon Breathes Fire: Chinese power projection. A good read. The PLA has realised it needs to develop the means to project its power, especially towards Taiwan and the South China Sea. The article also mentions the PLA has little chance, as it currently stands, against Taiwan's coastal defenses and air force.

4. Growing Sino-Japanese tensions and the risk to East Asian security. The must read of the bunch. The introduction should whet your appetite:

It is always hard to manage the rise of a revisionist great power, especially when it has an authoritarian government. Last century, for example, Germany wanted too much too soon. Similarly, today’s China wants too much too soon, and China’s leaders are miscalculating ― not least in relation to Japan.
With a start like that, how can you not read the rest?

show comments right here »

[boomerang] Posted by Simon at 11:30
Permalink | Speak Up (0) | TrackBack (0)





All the news that's shit to print

In the don't believe anything you read in the Chinese press department, today's SCMP:

Fake news cooked up by reporters and interest groups has become a serious problem and the industry should improve its professional standards, academics at a Peking University conference said.

Wu Tingjun , dean of Huazhong University of Science and Technology's school of journalism and communications, said yesterday the four main elements corrupting mainland journalism were fake stories, paid news, stories in poor taste and false advertising...

Yin Yungong , director of the journalism and communication institute at the Chinese Academy of Social Sciences, said the mainland had a "somewhat serious" problem of journalists siding with interest groups and creating fake news.

Of course, this would never happen in the Western media, and especially not the SCMP.

show comments right here »

[boomerang] Posted by Simon at 09:34
Permalink | Speak Up (0) | TrackBack (0)





Lord of the Flies

You've been working on this deal for years. This meeting is the cumulation of hard work, sweat, tears. A potential partner sits across the table. He's got the cash you need to finally reach your dream. Numbers are flying around like flies. But that's not the only thing criss-crossing the room. A fly is flying like a fly, buzzing this way and that. It's hot. It's sweaty. The pressure is on. And that Goddamn fly won't go away. It keeps annoying your investor. Your partner. Your saviour.

And then it happens.

The potential partner stands up, screams profanities about the insects and walks out, taking with him your hopes and dreams.

What do you do?

Why, you spend the next 10 years of your life killing every Goddamn fly you can find. From the SCMP:

lordoftheflies.jpg

Hu Xinlin of Yuyao, Zhejiang province, with the 40kg of flies he has caught in a 10-year crusade he started after losing a 200,000 yuan business deal because his partner abandoned a meeting when he became irritated by flies. He trained himself to catch the flies with his bare hands.

Revenge is a dish best served cold.



show comments right here »

[boomerang] Posted by Simon at 09:27
Permalink | Speak Up (0) | TrackBack (0)





July 19, 2005
Why We Need A Strong China

Thanks Simon for that very kind introduction. Now my own blog largely concerns the past, but over the next few weeks I'll stick to current events.

For my first entry I'd like to share a recent piece written by my very first boss, Dr. William Overholt, today director of RAND's Center for Asia-Pacific Policy, on why China's rise is good for the world. Entitled "China and Globalization", he explains in a very pithy, cogent report why the world needs a strong China, and why a weak, unstable China was much worse. As the testimony was for a Congressional hearing, he put it in very simple language that American politicans could understand. He states:

Before reform, China was the world's most important opponent of globalization. It had an autarkic economy. It opposed the global economic order. It opposed the global political order and the major global institutions such as the IMF and the World Bank. It believed that global disorder was a good thing, and under Mao Zedong it actively promoted disorder throughout the world, including promotion of insurgencies in most of China's neighbors, in Africa and Latin America, and even in our universities.
He uses historical perspective to diffuse our fears of China. He continues:
Had China been prosperous and unified throughout the twentieth century, we would have had European War II rather than World War II and World War I would have been quite different. China would have been able to deter or defeat Japanese aggression. The cost of those conflicts to the US would have been radically smaller because Pearl Harbor and much else would not have happened. We and the world, not to speak of a billion Chinese citizens, have paid a horrible price, over more than a century, for China's weakness. The world needs a healthy China.
Keeping China's globalization in perspective of its history, Overholt argues that we should be rejoicing that it has joined the community of nations rather than fighting it. China's socioeconomic adjustments have also been far more radical than America's or anywhere else's over the past quarter century, with millions of manufacturing jobs lost. While intellectual property rights and human rights are significant problems that must be tackled, the growth opportunities created and the indirect poverty alleviation brought about by cheap consumer goods far outweigh those issues.

I have to agree with him. What do you think?

show comments right here »

[boomerang] Posted by HK Dave at 15:32
Permalink | Speak Up (16) | TrackBack (0)





Daily linklets 19th July

show comments right here »

[boomerang] Posted by Simon at 13:54
Permalink | Speak Up (2) | TrackBack (0)





The Monte Carlo of the East

Philip Bowring on Hong Kong's identity crisis in Time gets it right. Read the whole thing, but some excerpts:

Monte Carlo is a metaphor for things that Hong Kong should stand for—quality, wealth, low taxes and a sort of independence...Hong Kong must adjust to the fact that it is not the only capitalist city or financial center in China, is not the biggest port, is no longer a manufacturing hub or a unique political anomaly in a postimperial age.

The most attractive aspect of Hong Kong is precisely that it is so different from the rest of China...Its leaders should stop stressing cultural and racial homogeneity and instead celebrate the roles of Nepalis, Americans, Filipinos, Malaysians, Nigerians and, yes, British in making Hong Kong what it is.

He goes on to discuss Disneyland, casinos, the harbour and the West Kowloon Cultural boondoggle. What it boils down to simple: Hong Kong needs a shot of self-confidence. It is a world city suffering an ongoing inferiority complex. It should just get on with being itself.

In a similar vein Dave discusses how the Taiping Rebellion helped populate Hong Kong. Again worth a read, but the conclusion bears repeating:

China's trouble and loss has historically often been Hong Kong's gain. What does this illustrate about the Chinese feelings of ambivalence about the city, and what role it can play in China going forward? What will it mean for Hong Kong now that China has grown strong for the first time in the 160-year history? Will it gain alongside the behemoth, or will it gradually fade into obscurity?
Dave is looking for feedback on these questions.

I'm very pleased to say that Dave is going to become a guest blogger on this very site, with a post later today. He and one other special guest blogger will take over posting duties from Friday afternoon as I enjoy 2 weeks of Australian winter. I'm extrememly lucky to have two such high quality writers accepting these guest blogging spots (I'll introduce the other person on Friday).

show comments right here »

[boomerang] Posted by Simon at 10:11
Permalink | Speak Up (2) | TrackBack (0)





Teacup in a storm

Over the weekend Richard mentioned the fuss in Hong Kong over media censorship. Today's SCMP has an op-ed by Michael Chugani, the head of ATV news, on the not so strenuous efforts of those claiming censorship. Naturally Mr Chugani has a barrow to push, but the lack of interest by the main parties in appearing on a major news outlet to discuss their claims certainly suggests more than meets the eye. The full op-ed is below the jump, but I'll repeat the conclusion:

Before we in the media glorify the self-proclaimed victims of censorship, we need to examine all the facts. Doing that is not a dereliction of our duty to safeguard press freedom, but merely to make sure that the cause is not contaminated.
On another note, for some mysterious reason The Standard has been appearing gratis on my doorstep each morning this week. Off to do the Sudoku puzzle.

Crusaders shy away from the battle

There has been much talk lately about press freedom in Hong Kong, the focus being that we are sliding down a slippery slope to censorship. But let me share with you something that happened two weeks ago which might make some of you think twice about our self-styled crusaders for press freedom.

The threat to our press freedoms captured attention with the May arrest on the mainland of Hong Kong journalist Ching Cheong, followed by the dismissal this month of Commercial Radio talk-show host Wong Yuk-man. To raise awareness in the English-speaking community of this supposed threat, ATV's English channel talk show Newsline invited some central figures in the battle against censorship to discuss the issue.


We first approached the sacked Wong, but he refused to come on the show, without giving a reason. We then tried his producer, Toby Cham, who had also been sacked, but he told us he wanted to remain "low key" for now.

Former talk-show host Albert Cheng King-hon - now a legislator who claims censorship was behind Commercial Radio's shutting down his show Teacup in a Storm - at first agreed to appear on Newsline but cancelled at the last minute, saying he would only appear if Wong did as well.

We then tried Peter Lam Yuk-wah, who co-hosted Teacup in a Storm and was dismissed with Mr Cheng but he, too, refused the offer to discuss the threat of censorship. All the while, we tried to get someone from the Hong Kong Journalists Association, but it said it could not find anyone suitable. Commercial Radio boss Winnie Yu also refused to appear.

We finally found two speakers who agreed to come even though they were not central figures in the current controversy - former legislator Cyd Ho Sau-lan and commentator Steve Vines.

It could be that poor English skills dissuaded everyone, but aside from Wong, who speaks passable English, everyone we approached speaks it reasonably well.

Or, possibly they consider it a waste of time to appear on English-language television, which has fewer viewers than Hong Kong's Cantonese channels.

Maybe they thought it would not advance their agendas to speak to an audience made up mostly of foreigners, who may be unfamiliar with the shows axed by Commercial Radio.

If those are indeed their reasons, it exposes the pathetic mindset of the people who claim to crusade for our press freedoms. Defending press freedom, in my mind at least, means fighting every battle on every front to win as many supporters as you can.

If you do not have a gun, you fight with a stick, and if you do not have that, you fight with your fists. And you fight for the wider cause of press freedom, not just for narrow self-interest such as trying to get your radio show back. The current public debate over press freedom centres on the claim that the voices of our most outspoken media and political personalities have been silenced by a conspiracy involving the government, Beijing and media bosses.

Last Saturday's candle-light vigil in Central was intended to showcase this censorship. But how can anyone credibly claim to have been silenced when they refuse an offer to speak on an uncensored show on English television?

Before we in the media glorify the self-proclaimed victims of censorship, we need to examine all the facts. Doing that is not a dereliction of our duty to safeguard press freedom, but merely to make sure that the cause is not contaminated.

Michael Chugani is editor-in-chief of ATV English News and Current Affairs



show comments right here »

[boomerang] Posted by Simon at 09:43
Permalink | Speak Up (7) | TrackBack (0)





July 18, 2005
Daily linklets 18th July

show comments right here »

[boomerang] Posted by Simon at 16:02
Permalink | Speak Up (45) | TrackBack (2)


» Barbarian Envoy links with: People's Choice v. Romantic Cons
» Riding Sun links with: Chinese general threatens to nuke U.S.




The fat (and thin) of the land

Today's SCMP gives a perfect example of the growing divide between the two China's - the richer urban areas and the still desperately poor rural ones:

Malnutrition and obesity are threatening the health of the nation's youth, experts have warned. Quoting speakers at a youth health conference in Shanghai, Xinhua said 17 per cent of rural children under five suffered retarded growth. The figure is as high as 29 per cent in poorer villages. At the same time, obesity is plaguing the younger generation. In Beijing, 12 to 22 per cent of students are overweight, compared with 15 per cent in the US.

show comments right here »

[boomerang] Posted by Simon at 09:57
Permalink | Speak Up (16) | TrackBack (0)





July 17, 2005
Democracy's long, slow march

One of the (many) problems with totalitarian government is it does not have a feedback mechanism. Especially in a country as vast as China, there are no effective ways for the government to hear from its citizenry. In a country that is rapidly growing richer, that is no longer good enough. Irene Wang in the (unlinkable) SCMP reports on a growing phenomena, public forums:

In recent years, many cities and rural areas have held public hearings on policies that affect ordinary people. The process is not designed to challenge the Communist Party and does not include direct elections, but gives people a say in public decision-making.

Some analysts say contact between the government and public interest groups may help defuse rising social tension and usher in a kind of democracy with Chinese characteristics. But observers also question the effectiveness of the process and whether it can become an institutionalised part of the way decisions are made.

The hearings became part of the legal system in the past decade with the introduction of legal codes on legislation, administrative punishment and pricing. As a result, the hearings have mainly focused on price increases and the drafting of regulations.

One place where the idea has taken off, with surprising results, is in Zeguo, a rich township in the coastal province of Zhejiang . More than 250 residents were picked at random to represent the permanent population of 120,000 people. They met recently to discuss and rate which projects would be funded by the town's budget this year. The local people's congress backed the consensus to make it legitimate. Zeguo Township's party secretary and meeting organiser, Jiang Zhaohua, said the outcome was different from what officials expected.

"We thought our people would like projects with immediate visible effects, but on the contrary, they voted for the projects with long-term benefits," Mr Jiang said. "The usual practice of local governments is for 20 people from the party committee sitting together and deciding everything behind closed doors."

Zeguo township and the other 15 administrations under Wenling city began holding open discussions six years ago. The city's publicity department came up with the idea to explore how to "enhance and improve ideological and political work". Gradually, the discussions turned into public policy debates in which anybody could express their opinions.

"The discussion process has been institutionalised," Wenling publicity official Chen Yimin said. "We assess officials based on how well they implement the system, and people question officials if any important public policy goes through without debate."

But one swallow does not make a summer (or even a good night).
However, Wenling is still a relatively rare case among the mainland's 660 cities and 20,600 township governments. More often than not, authorities are opaque and tend to ignore public complaints, fuelling rising conflict between citizens and the local authorities...

Land disputes are a factor in the country's rapid urbanisation and modernisation and some analysts doubt that open deliberation will have any real impact on the situation. Cai Dingjian , a former deputy director of the National People's Congress Standing Committee Research Office, said the hearings were mostly for show. "Few members of the congress attend the hearings," Professor Cai said. "In most cases staff members just give the members a summary of their opinions or judgment, and so the hearings cannot have much of an effect on legislation."

Shanghai Jiaotong University professor Zhu Mang is also sceptical. "The public hearings carry no legal onus, and no laws specify how public hearings should influence decision-making," he said. "The deliberative process in Zeguo is established and organised by the almighty party committee, fitting in with China's reality. But it's up to those in power to popularise the Zeguo model and rein in official influence, and we should find incentives for them to do so."

If the CCP wants a realistic chance of holding on to power, this will be one of the ways they will do it. But can the vested interests, the local autocrats and regional despots overcome their hubris? Not likely. China does not have a tradition of participatory representation, as our next article from the SCMP attests.
Nearly half of the more than 300 Guangdong deputies to the provincial and national people's congresses are against a proposal to regularly report on their work to their constituents. The Guangdong People's Congress Standing Committee sent out more than 900 questionnaires to members of the Guangdong People's Congress and Guangdong's representatives to the National People's Congress. In an Information Times report yesterday, only 53.8 per cent of the more than 300 representatives who replied said they supported regular reports to constituents, saying it would help members do their jobs better and take their positions seriously.

But members who opposed the idea said it was just another formality and would put an unnecessary burden on them.

Dong Guoqiang, a congress member in Shenzhen, backed the proposal. "Being a deputy is not a glory but a responsibility," he said. Regular reports to constituents would be an effective way to listen to the public.

Yesterday, in chat rooms on mainland website sina.com, people registered overwhelming criticism of congress members against the idea.

Feng Ye, a Shenzhen resident, said congress members should be accountable to their constituents because it was their duty. "It shows there is a problem with our system," he said. Guangzhou resident Liang Yun, 23, also said members should report to their constituents. She Liang said members should report to their constituents at least once a year and it would be unreasonable for deputies to claim they did not have the time to do so.

Guo Weiqing, a politics professor at Sun Yat-sen University, said the key problem was that congress members were not fulltime and many did not do enough for their constituents. He pointed out that deputies seldom published contact numbers for the public.

The "people's representatives" are no such thing. Both articles highlight totalitarians grappling with accountability. While a few in power are starting to deal with the public's aspirations, the vast majority are carrying on with business as usual. And if the public can't vent through forums and representatives, they will find other ways. Regardless, business as usual no longer works.

show comments right here »

[boomerang] Posted by Simon at 14:58
Permalink | Speak Up (0) | TrackBack (0)





Books, Orwell, Spirals and Money

1. There are two disturbing trends in Hong Kong car parks. Your car park ticket will have your licence plate printed on it in a demonstration of optical scanning technology and an Orwellian hint that they know who you are so don't try anything funny. And in a sign that the era of paper money is rapidly drawing to a close, most car parks no longer allow you use cash to pay for the pleasure of squeezing into a space so your car door can be dented. It's all Octopus and Visa cards nowadays. Combine the two and you have a torrent of useful market research data.

2. The spiral escalator at Times Square's Lane Crawford never ceases to amaze me.

3. Many Hong Kong shops proudly proclaim they use a 1:1 exchange rate for yuan to dollars. This results in a 6% discount* for those using the Chinese currency over the Hong Kong one. When I pointed this out to the lady at Fortress yesterday she naturally responded in that age-old retail assistant manner: with a shrug. There was no way she could give me a 6% discount on my purchase. The solution is simple. All Hong Kongers should immediately set up their yuan bank accounts and credit cards, convienently available at most Hong Kong banks thanks to CEPA, and only use those when shopping.

It is all part of the plan to replace Hong Kong dollars with renminbi...a devaluation by default.

4. Today's SCMP has its summer reading list, where they ask various authors what they are reading in an attempt to boost each other's sales and look learned. Some are honest enough to admit they aren't reading anything, although none confess to reading trash. The rest impress us with their diverse and superior tastes, all the while making us proletarians wonder how the hell they have time to read six books a month. My bedside table heaves under the weight of an ever growing pile of "must reads". Maybe I should become an author.

* US$1 = 8.28 yuan
US$1 = HK$7.8
Divide the two and you get a smidge over 6%.



show comments right here »

[boomerang] Posted by Simon at 12:13
Permalink | Speak Up (1) | TrackBack (0)





July 15, 2005
Daily linklets 15th July

show comments right here »

[boomerang] Posted by Simon at 17:30
Permalink | Speak Up (2) | TrackBack (1)


» spacehunt links with: Metro




"New left" interview

An interview with Professor Wang Hui, a leader of China's new left movement (via TPD). As I said at TPD, the idea of Jiang Zemin as a Reaganite has kept me smiling all day. There's also some dangerous hog-wash in the interview:

I know this is the popular economic theory — that private ownership is the best incentive. Well, capitalists can also free ride. The reality is that owners are always looting their own businesses. Look at Enron. This is (Nobel-prize-winning economist George) Akerlof's theory.

It's a myth that capitalists will not steal from their own enterprise, because they don't own their whole enterprise. The idea is very simple. The owner of a firm is only interested in the net assets, the part that can be redistributed to owners. But the firm has total assets over and beyond net assets. These are debt to banks and also implicit debt to workers — like pensions and benefits. Under certain conditions an owner can loot both the implicit and explicit debt of the firm.

Ironically Bernie Ebbers of Worldcom just got 25 years jail for his "looting". The problem with this theory is in capitalism such looting has consequences. Capitalists who steal get punished. The problem in China is rule of law isn't properly applied, thus allowing some owners to get away with ripping off banks/workers/companies. Economics are about incentives, and if there is little to deter such negative behaviour, it's going to happen. So the professor must only be referring to Chinese capitalists, and only some of them at that.

The professor agrees the European social democratic system is his model. This is the same model that currently has over 10% unemployment in both France and Germany compared to 5% or so in the UK and US. Luckily the professor sees a way to avoid Germany's problems. Instead of using high taxes to redistribute (loot?) he's proposing the distribution be "fair from the start". Which completely contradicts his hypothesis that China needs a new system because of its current inequity.

The overall thesis seems to be that workers should be grabbing a share of the spoils. In other words, socialism. Let's recall how many people socialism managed to drag out of poverty and improve living standards...

Previous posts on the topic

China's new left
China's New Right (my response on to the new left)

show comments right here »

[boomerang] Posted by Simon at 15:12
Permalink | Speak Up (1) | TrackBack (0)





The lights are on but nobody's home

Today's SCMP reports on doubts about South Korea's offer of massive energy aid to the North in return for denuclearising. As part of the article the SCMP graphics team got some figures from the CIA fact book for a couple of charts. But that wasn't enough, so they added in a famous satellite picture showing the Korean peninsula by night (see below the fold for the graphic). The same picture was linked by Christopher Hitchens in Slate a while back.

In May Sean raised serious doubts about that photo:

But even if we assume that the DPRK has managed to effect, through force and the unreliability of its power grid, a blackout of the whole country. the photo should still show at least some lights in Russia and China, right? Northeast Manchuria and Siberia aren't the most population-dense places on Earth...but look at the peninsula right under where it says 40N on the left. That's cut off right at the edge of Dalian, a Chinese city of 3 million people, which is at its tip. The outcropping below it is the Shandong Peninsula, which is also populous. While China may not have become a first-world country yet, I don't think its large northeastern cities are invisible at night.
Is the photo a con?


From the SCMP:

Northkoreablackout.jpg



show comments right here »

[boomerang] Posted by Simon at 10:36
Permalink | Speak Up (2) | TrackBack (0)





My enemy's enemy

While the Magic Dragon continues to huff and puff over Japanese textbooks and their historical revisionism, the CCP is playing the same game. In the newest version of China's official (as compared to real) history of World War 2, the CCP have revised their claim the Nationalists did not fight the Japanese.

The Communist Party, whose legitimacy rests in a large part on its assertion that it fought and won the 1937-45 war against Japan, has stopped accusing the Nationalists, or Kuomintang (KMT), of being "passive" and reluctant to take on the Japanese imperial army...

The Communists issued a circular in May, acknowledging that the "entire nation" defeated Japan, departing from past propaganda...

But the Communists are not about to give full credit to the KMT, who lost the Chinese civil war in 1949 and fled to Taiwan where they ruled for more than five decades until losing the presidential elections in 2000. The Communists still insist they were "the firm rock in midstream which united the people in resistance", the official Xinhua news agency quoted the circular as saying.

Why the historic shift (in all senses of the word)? It's part of the CCP's ongoing rapprochement with the KMT. After all, at least the KMT aren't the DPP and pro-independece. The new version of history is being actively pushed in China, with books, documentaries and even a museum discussing the KMT role.

Unfortunately for the CCP, many historians contend the KMT did most of the fighting against the Japanese, and Mao's CCP took advantage of a weakened KMT to oust them once the fight of the Japanese was completed.

Don't expect to see that in your Chinese bookshops anytime soon.

show comments right here »

[boomerang] Posted by Simon at 10:00
Permalink | Speak Up (3) | TrackBack (0)





Boring Disneyland

The Beetles are taking over Hong Kong Disneyland. And it's not the Fab Four.

The SCMP reports wood-munching beetles have infested rooms in the not-yet-opened Disneyland hotel.

The bugs reportedly have been found in more than 100 rooms in the Disneyland hotel during the past two months, eating through television cabinets, wooden beds and coffee tables. It is understood furniture has been stripped from rooms and replaced ahead of the September 12 grand opening.

It is suspected the beetles were introduced to the 400-room hotel after burrowing into some of the furniture, imported from various mainland suppliers.

The species has not been identified but the chief suspect is the Asian long-horned beetle, a wood-eating insect exported in mainland shipments that has infested many countries, including the US.

The mainland invasion of Hong Kong Disneyland has begun.



show comments right here »

[boomerang] Posted by Simon at 09:30
Permalink | Speak Up (0) | TrackBack (0)





July 14, 2005
Whisper campaign

For an episode of incredible hypocrisy, try reading What a large pool of US "secrets"! from the People's Daily, the mouthpiece of the Chinese Communist Party, that paragon of openness and sincerity. The classic graph:

Too many secrets make it hard to avoid giving people the feeling of purposefully turning simple things into mysteries, and "mistaking the shadow of a bow in one's cup as a snake", thus making people query its effect.

show comments right here »

[boomerang] Posted by Simon at 19:26
Permalink | Speak Up (0) | TrackBack (0)





Daily linklets 14th July

show comments right here »

[boomerang] Posted by Simon at 13:28
Permalink | Speak Up (0) | TrackBack (0)





The coming China crunch

Jake van der Kamp in the SCMP explains, after the usual caveat about the reliability of Chinese stats, why China's export boom may be coming to an end (charts below the fold):

In just one year, it [China's trade surplus] has shot up from US$14.2 billion to US$80 billion a year. It looks like a big number, but it is not necessarily really that big. It amounts to 4.5 per cent of gross domestic product, which is sizeable but not huge, and the figure was actually higher in 1998. To put it in further contrast, the United States runs a trade deficit nine times as large. What makes it unusual, however, is how suddenly it has materialised. The superficial reason for it is that the mainland's export growth is still running at more than 30 per cent year on year while its import growth has fallen to much lower levels.

This answers the superficial question, but it still begs the real one, of why import growth should have plummeted so rapidly. It also begs the question of why the mainland's export growth should remain so strong when export growth across the rest of Asia has contracted sharply over the past year.

We shall leave these questions aside for the moment. Let us move to the second chart, which also shows one of those lines that suddenly moves sharply up. This one represents the official figures from Beijing of how much money is lost every year by loss-making enterprises in the mainland.

...they [the numbers in the second chart] say losses rose during the 1997-98 Asian financial crisis. The official word is that China was impervious to that crisis. I have always doubted it and, when I see numbers that say it was not true, I tend to give those numbers more weight. The second reason is that the woeful performance of the Shanghai stock market recently says corporate profit performance must be down severely. Stock markets do not lie about things like that...

I think what may have happened here is a common phenomenon when companies start to experience straitened circumstances. At such times, the profit and loss account is forgotten (it is anyway with many mainland companies) and all the attention focuses on cash flow. What the boss then wants is simply money through the door, preferably real US dollar money, to pay the most pressing creditors and keep the operations going. He may know he is digging a hole for himself but his mind is focused on the immediate future and he probably fools himself that his problems are temporary only.

In this case, the available evidence says he is pinched because the prices his foreign customers pay him are still falling while his costs of raw materials and component goods are still rising. To get around the problem, he is shipping out his inventories as fast as he can in order to get his cash, while delaying restocking. It would certainly have the effect of keeping export growth up while import growth tumbles.

I cannot demonstrate conclusively that this analysis describes the problem but the facts fit, and if I am right, we will soon see the mainland's big export boom crumble and its trade surplus go right back down again.

Not to mention a further drop in the pressure to revalue the yuan...at least for economic reasons. You can take this analysis further. China's economic growth has held up despite the Gvoernment's efforts at engineering a slow down. At the same time there has been a rise in protectionist pressures in major export markets such as the US and EU, especially in textiles. If Chinese manufacturers have ramped up production to beat the quotas and economic pressure, you can expect not just an export slowdown but a far broader one.

China has accounted for 25% of global GDP growth in the past 5 years, a major buyer of US dollars and bonds and a key driver in Japan's nascent economic recovery.

By the way, you'll be please to know China has officially completed the transition to a socialist market economy.

chinatrade.jpg



show comments right here »

[boomerang] Posted by Simon at 09:47
Permalink | Speak Up (1) | TrackBack (0)





July 13, 2005
Daily linklets 13th July

show comments right here »

[boomerang] Posted by Simon at 13:32
Permalink | Speak Up (0) | TrackBack (0)





Dollars and The Dons

"Reality" TV rarely lives up to its name. Take Donald Trump. The man has gone bankrupt twice, yet his "The Apprentice" is based on the premise of eager business school types striving to learn at the feet of this supposed master business man. Now Mr Trump is suing Hong Kong tycoons Henry Cheng and Vincent Lo (and others) for US$500 million, alleging they have sold some prime NY property at below market rates. The short story is Messers Cheng and Lo bailed Trump out back in 1990 when he went bust, and turned around and sold the properties last year. Trump kept a 30% interest and now alleges these savvy businessmen sold the property despite significantly higher offers (an allegation which defies belief). In the words of the SCMP report:

The dispute is a lesson for fans of Mr Trump's television show, The Apprentice: retain majority control of an investment or else be left in the dark.
Can't wait for that episode.

Perhaps New York's The Don could learn from our home grown version. Despite running in an election who's outcome was not in doubt, and facing only 800 voters, Donald Tsang managed to raise HK$27.1 million in donations to his campaign. This literal embarrasment of riches was despite Donald Tsang's limit of HK$100,000, put in place to avoid "money politics". Below the jump is the SCMP's graphic of who gave what. Never let it be said Mr Tsang is in trall to the tycoons of this city. Hong Kong's The Don couldn't spend even a quarter of the money raised in one of the world's most expensive election campaigns (he spent HK$5,125 per voter). Even his campaign director donated not just his time but HK$100,000. The balance of the monies were given to various Hong Kong charities.

When does Hong Kong's The Apprentice, starring our very own The Don, start? Maybe Donald Trump could watch and learn.

From the SCMP, Donald Tsang's election campaign monies:

donsdollars.jpg



show comments right here »

[boomerang] Posted by Simon at 09:35
Permalink | Speak Up (0) | TrackBack (0)





July 12, 2005
Hong Kong libertarian

I've now re-read Bryan Caplan's piece Hong Kong: Statist at Heart (and thanks to Conrad for the pointer). There are several pieces that require a response.

Hong Kong has had the freest economy in the world since 1970, the earliest year covered by the Economic Freedom of the World data set. Indeed, it's higher now under the Communists than it was in 80's! And it's hard to deny that Hong Kong has been an economic miracle since World War II. So even though Hong Kong was not a democracy before the Communist takeover, it's very tempting to believe that the people of Hong Kong would have voted to retain (if not initially adopt) the free-market policies they had.
Hong Kong always scores highly in economic freedom surveys, because such surveys are biased in Hong Kong's favour. The city is a low taxing trading port with rule of law and little corruption. But Hong Kong economists are the first to admit Hong Kong's economy is not "free" at all:

"There is a misconception that Hong Kong has the freest economy in the world -- it is called free because there are no laws to control the behaviour of businesses," said Lin Ping, head of economics at Hong Kong's Lingnan University. "Some companies are very powerful; there is no level playing field. New companies cannot come in and compete fairly, I do not see that as a free economy."

"Hong Kong is an open economy, a free trade city, and it has no capital control," Tsang [Shu-ki, economics professor at HK Baptist] said. "But that doesn't mean this economy does not have what we are worried about, and that is anti-competitive behaviour."

"Hong Kong is probably the only advanced economy in the world that does not have a comprehensive competition law," said Lin.

"To have strong market power isn't what we are against but to abuse market power is wrong," said barrister and legislator Ronny Tong, a vocal advocate of fair competition.

"There are more cross-sector enterprises that conduct activities that are against fair competition principles. The government needs to do something about it," Tong added.

Being "free" and "open" is not necessarily an optimal result. Yes, Hong Kong has been an economic miracle. But it has come at a cost. The city is the plaything of cartels. Not very liberatarian.

Next comes the assertion Hong Kongers would have voted to establish and retain the free market policies that got the city to this point. Not only is that impossible to prove, it is meaningless. You could argue that Hong Kongers may have been prepared to pay the price in foregone economic success in return for the right to vote. Worse, the statement supposes that Hong Kong's voters would have been blessed with incredible foresight - that they would have known these policies would be the "best" ones. It also supposes that Hong Kongers are happy with today's economy. While there is no denying many Hong Kongers are well off today, there are many more who are not. Companies and cartels wield far more power over consumers and taxpayers than in other advanced market economies. The average Hong Konger still lives in a flat that is 600 square feet. Measures of welfare are broader than per capita GDP. Quality and standards of living matter more.

Hong Kongers generally agreed with the laissez-faire policy of HK's Government, back in 1990, although I wonder how many of the survey's subjects understood what laissez-faire meant. But when presented with more specific interventionist policies, Hong Kongers generally backed them as well. That could imply a disconnect between what Hong Kongers think is laissez-faire and how it is implemented. It could also reflect a general willingness to agree with whatever the survey asked. If the specific policies suggested were asked in isolation, without explaining their implementation and potential costs, it is not surprising that people agreed on the need for a minimum wage, price controls, taxing the rick and protecting local industry. These kind of motherhood statements are often well supported...in isolation. You'll likely get similar support if the survey is done in Communist China or in capitalist New York.

I came across a study of Folk Economics that explains "the intuitive economics of untrained persons. It is concerned with distribution, and does not allow for or understand incentives." This perfectly explains the reactions in the survey (and in many other debates besides). It boils down to general ignorance of economics. That's not a crime and it is something that democracy could well cure. How? Because when politicians become accountable to voters rather than special interests, they need to educate the electorate on the value of their policies.

Unfortunately this blows the rest of Caplan's point out of the water:

To be blunt, it looks like the lack of democracy under British rule was a key component of Hong Kong's ascent. The policies worked wonders, but they never became democratically self-sustaining. In politics, people often resist policy change just because "things have always been this way," even if the results were never very good. But free-market policies apparently labor under a greater political handicap. Even if "we've always left these things to the free market," even if leaving things to the free market has worked in the past, it just isn't enough to win over public opinion.
While non-democratic Hong Kong did well economically, so did democratic Japan, the United States, Australia and even the UK once Maggie got in. The linkage between democracy and economic success in Hong Kong is an experiment going on in real time. Even under Beijing's bastardised democracy here, Hong Kong's economy is growing strongly after a nasty bout of deflation, brought about through a currency board and the Asia crisis. There is absolutely no proof that free-market policies labour under a greater political handicap. Indeed modern political history in other countries, such as Australia, the USA and the UK, all point to a move towards free-market policies by both sides of the political fence.

There may be merit to the idea that these policies are not democratically self-sustaining. That supposes that Hong Kongers should leave the running of their city and economy to the experts - an illiberal notion. If the policies have proven good enough for Hong Kongers in the past then they should be confident enough to hold their own should they be subjected to a public vote. Surely that's the point of voting - a competition of ideas.

Caplan concludes:

Countless market-oriented intellectuals idolize Hong Kong but I've never heard of, much less met, a Hong Kong libertarian. Google confirms my impression, returning no relevant hits for "Hong Kong libertarian." I'd like to think, then, that Hong Kong's problem was a shortage of libertarian intellectuals to transform freedom by default into freedom on principle. But sadly, I suspect that wouldn't have been enough either.
Admittedly in the very next post he acknowledges some Hong Kong libertarians and Chris could also point him to his favourite letter writer, Simon Patkin. Since when has Google been the arbiter of whether a political ideology lives within a particular place? Helpfully the title of this post should soon set Google right. Mr Caplan is welcome to step on a plane and come to the Big Lychee. We'll have a beer and chat about de Soto and Hayek.

Even if Hong Kong's free markets aren't so free, Mr Caplan needn't despair. Libertarianism is alive and well in Hong Kong, although it may not go under that name.

Besides, Hong Kongers don't get a choice.



show comments right here »

[boomerang] Posted by Simon at 16:27
Permalink | Speak Up (8) | TrackBack (0)





Fluoride

Quick question for my Hong Kong readers...does anyone know how much, if any, fluoride there is in Hong Kong's tap water?

Update

Turns out it does...about 0.48 mg/L. Did you know boiling the water only concerntrates the flouride? And did you know a search for such things reveals plenty who think flouride is a Government conspiracy to pollute our water? You find out the darndest things on Google.

show comments right here »

[boomerang] Posted by Simon at 15:20
Permalink | Speak Up (2) | TrackBack (0)





Daily linklets 12th July

show comments right here »

[boomerang] Posted by Simon at 14:34
Permalink | Speak Up (2) | TrackBack (2)


» MeiZhongTai links with: First Ever MeiZhongTai Roundup
» pf.org links with: Faster Pussycat!




The horses on the track go 'round and 'round

Compare and contrast:

IOC chief hopes events will spur on SAR:

The Olympic equestrian events may provide the spark that ignites Hong Kong's sporting future, according to International Olympic Committee president Jacques Rogge...Hong Kong may have "a generation of athletes who will shine'' in international sporting events in the years ahead.
Just maybe not this generation. The SCMP:
Hong Kong might be "hosting" the equestrian events at the 2008 Beijing Olympic Games, but they have been told unequivocally by Chinese officials that none of the six wild cards normally available to the host city will be given to local riders.

"The equestrian events are part of the Beijing Olympics and it is not Hong Kong's. I don't think any wild card will be given to Hong Kong riders," said Yu Zaiqing, executive vice-president of the Beijing Organising Committee for the 2008 Olympic Games yesterday.

You see, Hong Kong's part of the Motherland...except when it's not.

Amidsts yesterday's post on Hong Kong's Olympian burden I mentioned the expected 35,000 arrivals due to the even are paltry. To put it in context, in May Hong Kong had 1.821 million tourist arrivals. And Jake van der Kamp, in his piece (see below the jump) on the issue today, points out that the average tourist expenditure is about $4,200, meaning these extra tourists bring in $134.4 million, not the Government's $350 million. Unless of course these Olympian visitors are big spenders...which isn't out of the question.

On a related matter, the city is all over the controversial dumping of RTHK's live broadcasts of horse racing. No one is asking the real question - why does Hong Kong (or any place) have a public broadcaster? It doesn't.

One world, one nightmare - our very own Olympian squanderfest - Jake van der Kamp (SCMP)

So a city that takes an interest in horses only to the extent of how much money can be bet on how fast they run, and does not indulge in this pastime in the summer as it recognises that even horses can get heat stroke, is now expected to go ga-ga over how prettily horses can jump fences during the middle of a summer heat wave.

I think I do indeed hear a resounding echo. It is the one that Mr Tsang himself sounded recently by objecting, on moral grounds, to the live broadcasting of horse-racing by the government's own broadcaster, RTHK.

Too bad. Gambling on horses may be a repugnant business to him (although he does not seem averse to the money it brings into government coffers), but it could offer a way for the Jockey Club to recoup some its costs for hosting the 2008 Olympic equestrian events.

The Olympics have gold, silver and bronze, and the Jockey Club has win, place and show. What is more, there will be six of each medal in these events and that would allow the Jockey Club to use its betting machinery to give us the exotic bets too - tierce, quinella and the works.

Just think of it, extra income for very little effort, and an excellent way of interesting the punters in all the other things horses can do, such as pirouette, tempi and piaffe (apparently ... but don't ask me). Surely, you can still permit RTHK that series of broadcasts, Donald?

I mention this because the usual government hoopla we get to justify big shows has it on this occasion that 32,000 people will come here for these equestrian events - and spend $350 million.

I wonder about that dollar figure, as the average amount spent by a visitor here last year was about $4,200, and if I multiply that by 32,000, I get $135 million, not $350 million, while the estimated figure for the total cost has already hit $1.2 billion.

I suppose it is possible that these visitors could spend more. Then again they could also spend less. They will not be shoppers and most of what they spend on the show will go right back to the Olympic movement, not to Hong Kong.

Perhaps there will also be some money from the television rights in that $350 million figure, after the International Olympic Committee has taken its lion's share. But tell me how often you found yourself glued to your television set to watch horses jump fences. There will be a lot more happening in Beijing at the time, and advertisers know it.

Not to worry, though. We have been assured that the public purse will not put up money for these events. The Jockey Club will find the money itself.

You may have heard that line before, most recently in how the big cultural palaces and the fancy glass roof at the West Kowloon reclamation will cost us nothing, just a few property rights - a mere bagatelle.

In this case, I gather that the Jockey Club wants rights to the land presently occupied by the Sports Institute, next to the Sha Tin racetrack, plus - and here I am guessing - favourable treatment in renegotiating the betting duties it pays the government. That package could be worth more than $1.2 billion and in the end it would come out of our pockets.

But these are trifling matters. My biggest quibble with Mr Tsang's enthusiasm is that "one world, one dream" slogan. Where the prosperity of any country that has anything to do with the Olympics is concerned, that dream is more of a nightmare. Just ask the Greeks, who are now experiencing their own Olympic aftermath.

I am told that Sydney did well out of the Olympics, and perhaps Atlanta did too, but I have never seen the full accounting presented. Mostly, the Olympics boosters still measure that putative success only in such intangibles as civic pride and international profile.

Well, let us ask Athens, Seoul, Moscow and Montreal about international profile. They certainly raised theirs with the Olympics. They became bywords for massive squandering of money, the effects of which will stay or have stayed with them for years. Beijing in 2008 looks set to add its name to the list.

Let's get it straight. Hosting the Olympics is tantamount to breaking a mirror at midnight while walking under a ladder with a black cat crossing your path. Governments toss all prudence and common sense out the window when the Olympic dream starts to shine in their eyes. Some dream.

Fortunately, we will be doing it only in a small way. Let us be grateful for small mercies.



show comments right here »

[boomerang] Posted by Simon at 10:29
Permalink | Speak Up (0) | TrackBack (0)





July 11, 2005
Daily linklets 11th July

show comments right here »

[boomerang] Posted by Simon at 18:30
Permalink | Speak Up (0) | TrackBack (1)


» spacehunt links with: Hong Kong: Fusion Swearing




Horsing around

Now that Hong Kong has successfully become Beijing's stable for the 2008 Olympics the Hong Kong Jockey Club's not-so-hidden agenda is being laid bare. The Standard reports the HKJC is linking its plans to pay for the staging of the equestrian events to its betting reform plans now in front of Legco. As well as a change in basing tax on profit rather than turnover, the HKJC is hoping to increase the number of race meetings. This requires extra stables and facilities, which would be the happy result of the building for the Olympics. To be fair, most Olympics leave cities with white elephants that are never used again, so in this regard the HKJC deserve credit. It's just everything else that's wrong.

The SCMP today editorialises with "Winners and no losers from Olympic decision". Time for a fisking. At the end is a summary of everything that's wrong with hosting this event plus some photos and images of the Shatin racetrack and Sports Institute.

Hong Kong is forever striving for improvement and a way of bettering its international standing. The hosting of the equestrian events for the 2008 Beijing Olympic Games, with its potential to boost our city's image, is therefore quite a coup.
Given Hong Kong Tourism past efforts, there might be something to this. Perhaps there is a vast, hitherto unknown, market of Chinese tourists despereate to see men in top hats making their horses trot sideways.
Yet the mixed reaction here to the announcement made in Singapore last Thursday would seem to indicate otherwise. Given that the Olympics are the world's foremost sporting event and that international media attention will be at saturation level in the days leading up to and during the competition, such an attitude is baffling.
It's not just Hong Kong that's had a mixed reaction. The local Equestrian Federation split over the issue. The international equestrian association desperately did NOT want the event moved to Hong Kong but were overruled by the IOC. As for the idea that the international media will be bashing down Hong Kong's door to cover this event, at the last Olympics equestrian events represented 0.4% of tickets sold (a good proxy for interest in the event). Not so baffling, really.
Those expressing disquiet and even disappointment cite the $1.2 billion bill and the comparatively small financial return to the city, estimated at $350 million; the low profile and small spectator appeal of equestrian events; and how the Olympic preparation of Hong Kong's athletes will be disrupted by stables and other facilities being constructed on grounds where they presently train.
Last week I wrote about the Olympian maths that doesn't add up.
There has been dismay that the bulk of the cost, $800 million, will be footed by the Hong Kong Jockey Club, which is also the city's biggest charity provider. Welfare sector legislator Fernando Cheung Chiu-hung wondered how the government could allow a charity organisation to spend "an exorbitant sum" on a sporting event amid the reduction of resources in most areas of social services.
Not just any sporting event, either. Hong Kong has a well-known love affair with horse racing. There is no interest in cross-country, dressage or show jumping. Otherwise we'd already have the facilities and events taking place.
With the Sports Institute in Sha Tin being the focus for dressage and showjumping, athletes will be moved to the Wu Kai Sha Youth Village at Ma On Shan. Officials overseeing their Olympic training are unhappy that their schedules will be disrupted and that they will be forced to use unfamiliar facilities - a problem that must be tackled.

After the Olympics, they will move back to their base, but almost certainly to smaller facilities. Negotiations between the government and Jockey Club look set to result in land on which stables are built being thereafter used by racehorses.

If the HKJC can find all this money, surely the Government can demand the HKJC fund a new Sports Institute on new grounds. Especially given the HKJC will end up with more land for the Shatin race track at the end of the exercise. They will effectively assume more land without even having to pay a land premium. It turns out Hong Kong's savviest property dealer is the HKJC, but that's not a surprise. Additionally an added cost of staging this trivial event is to displace Hong Kong's atheletes and their chances of winning medals for the SAR. If the HKJC ploughed even a fraction of this money into the athletes, you may well end up with a result that actually pleases Hong Kongers - medal winners.
Lastly, there is the question of equestrian events themselves. Hong Kong is familiar with horse racing, but not the sight of equines jumping barriers in a set pattern or the intricacies of dressage, in which riders put their mounts through a series of precise movements.

Rather than equestrian events, some would have preferred Hong Kong hosted sports for which our athletes have shown considerable aptitude, such as windsurfing or table tennis, or perhaps those guaranteed to pull in spectators, such as soccer or basketball. As it is, the argument goes, Hong Kong will be hosting a sport unknown to all but a handful of elite citizens and the benefits to the sporting community will be negligible. Hong Kong has never had an Olympic equestrian competitor, so public interest will be limited.

So many negative reasons would seem to indicate Hong Kong should feel hard done by with the announcement. But they miss the fact that we will benefit enormously from participating in the Olympics, no matter what the event.

Apart from the 32,000 competitors, officials and equestrian lovers who will come here, there will be a media entourage that will put Hong Kong's name before a global audience, beaming images of the city into countless homes.

Whoa there boy. Where does 32,000 come from? Let's be generous and say that number is plausible (which it isn't). If that many horse-y lovers are going to come to Honkers for this event, they are just displacing other tourists and even locals that will avoid the city during the event. On a net basis the additional visits are negligible, especially in a city that receives serveal million tourists a year. If the point of the exercise is to get images of Hong Kong beamed into people's homes, spend $800 million on tourism promotion (although that is likely also a waste - Habourfest, anyone?). For that much you could deliver millions of DVDs of Hong Kong direct to households around the world...and you'll likely get a far higher "hit" ratio. I don't think many are going to suddenly decide to see Hong Kong after viewing Shatin racetrack and the dressage.
That we have been chosen partly because of the high standard of our veterinarian and laboratory services will further add to our reputation. The world-class facilities provided will confirm our dedication to doing the best job possible.

Many benefits will result. More business, foreign companies and tourists will be attracted.

Really? Will executives move business here simply on the back of this event? Will Hong Kong's businesses suddenly receive more orders? Will the gates of HK Airport break under the pressure for the additional tourists? I didn't think so.
The mainland understandably attracts a great deal of international attention. That is certain to increase as the Beijing Games draw nearer. Hong Kong's securing of the equestrian events will, however, give us a slice of the action. It will remind the world that Hong Kong remains a great city. We must do our utmost to ensure they proceed flawlessly, thereby further boosting the rewards we will reap.
It will mean increased costs for marginal benefit. It is a boondoggle. Hong Kong's Government is also toeing the "raise the international status" line.

In summary, what's wrong with staging these events?

1. It is an event of little interest to Hong Kongers and the world.
2. The HKJC has an agenda in driving this event, but it is not for the benefit of the city as a whole.
3. The money the HKJC spends on this event could have been spent on welfare for Hong Kong's poor instead. Effectively Hong Kong's poor are paying for an elitist event they couldn't care less about.
4. This event will still cost the Government and thus taxpayers money. The costs of security, improved transport links and infrastructure will all be bourne by the Government.
5. The supposed boon to Hong Kong's international status is unlikely. This is a little watched event. The hoped for boom in tourism is in fact tiny compared to Hong Kong's regular tourism, and could prove detrimental should tourists who would otherwise come avoid the city during the event.
6. Even using the figures given, the event will cost at least $1.2 billion for a benefit of $350 million.

There's only one winner here, and it is the Hong Kong Jockey Club.


So you know what we're talking about, here's an image of the Shatin racetrack and the adjacent Sports Institute, courtesy of a reader.

JCshatinsportsInstitute.jpg

And here's an image, courtesy The Standard, of the planned changes:

racetrack.jpg

Other Reading

Naturally Hemlock chimes in with his $0.02:

The revenge of Tung Chee-hwa continues, as Hong Kong is saddled, as it were, with the 2008 Olympics equestrian events. As part of his evil plan to destroy our self-esteem and turn this once-proud city into a whining supplicant, the crop-haired one groveled for the supposed privilege of hosting part of the games as soon as Beijing won its bid. Yachting, tiddlywinks, horse-jumping – the more ridiculous the sport being begged for, the more pathetic and desperate Hong Kong would appear, much to the satisfaction of tofu-for-brains, such was his spite for this city of imperialists’ running dogs.

“The 2008 Olympic equestrian events is an once-in-a-life-time opportunity for Hong Kong to showcase the world our charisma,” says Secretary for Home Affairs and English Grammar Dr Patrick Ho. Intriguingly, we will also be lumbered with the Paralympics version of the event, in which blind, mentally handicapped and three-legged horses valiantly but vainly attempt to emulate the exploits of their fitter peers, blundering across the course while onlookers offer exaggerated applause and make embarrassing comments about how the sad spectacle is an inspiration to us all.

Ever since the age of three, when I came within an inch of a Paralympic status-inducing kick in the head from one, I have thought horses are best tethered to third-world ploughs or sliced and braised with robust sauces. Failing that, I am happy to see them galloping in circles, encouraging the lower orders to fritter away their pitiful incomes by gambling on races. If Hong Kong really has to host an Olympic event, it should be the ancient New Territories version of polo, in which members of competing village teams ride water buffalos and chase a pangolin carcass. Instead, we are to be invaded by thousands of pompous sports officials wearing loud blazers and straw boaters, waving clipboards and stopwatches and spending so much money here – and obviously our civil servants are correct in this forecast, or they wouldn’t be paid so much – that our economy will be propelled into the stratosphere and none of us will ever have to work again for our whole lives.

On re-reading this, I see I have written a sentence containing the words ‘Patrick Ho’ and ‘charisma’. I am sure stranger things have happened, though none springs to mind immediately.

My thanks to David Webb for his help with this post.



show comments right here »

[boomerang] Posted by Simon at 11:12
Permalink | Speak Up (4) | TrackBack (0)





July 10, 2005
Daily linklets July 10th

show comments right here »

[boomerang] Posted by Simon at 12:58
Permalink | Speak Up (6) | TrackBack (1)


» tdaxp links with: Chinese Perspectives on the 600th Anniversary of Zheng He's First Voyage




July 09, 2005
Of horses and mice

First, the good news. The SCMP reports:

A $21.4 billion surplus has been recorded for the 2004-05 financial year, largely a result of additional receipts from land premiums, salaries tax and stamp duty.

The surplus was $9.4 billion above the revised estimate of $12 billion announced in the 2005-06 budget, with spending $7.5 billion lower than forecast. Revenue amounted to $263.6 billion while spending totalled $242.2 billion. Fiscal reserves stood at $296 billion on March 31, $20.7 billion more than in the previous year.

Mind you it also reports Roddy Murray is in trouble again for causing a fuss at a Lantau McDonalds and overstaying his visa. So the happy news the Government has balanced its books 2 years early should mean there's plenty of scope to cut taxes...for example the disgraceful and discriminatory tax on foreign domestic helpers for starters. Or cancel the rise in income tax next year, which will cost $3.3 billion. It still leaves plenty in the kitty for whatever The Don fancies.

Now the bad news. Hong Kong was given the equestrian events of the 2008 Olympics. Which simply means the Hong Kong Jockey Club, a de facto Government agency, will spend $800 million in a land grab for an event which even the Government admits doesn't add up economically. And as if that's not enough, there are reports that Shanghai has now set aside land for a new Disneyland park and are hoping to have it open by the 2010 Expo, although naturally Disney are playing it down. Hong Kong Disneyland is effectively a Hong Kong Government venture and was lavished with public funds because it was to be Disney's only Chinese venture. Shame the Government forgot to insert that into the contract.

It's all good for the horse-loving mouseketeers of this town. It's not for the taxpayers.

Update 11th July

New Disney CEO lays out his China plans, specifically stating plans to open a park on the mainland.

show comments right here »

[boomerang] Posted by Simon at 13:15
Permalink | Speak Up (2) | TrackBack (0)





July 08, 2005
Daily linklets 8th July

The getting on with things edition:

show comments right here »

[boomerang] Posted by Simon at 17:53
Permalink | Speak Up (1) | TrackBack (0)





Chinese smarties

There's something serious going on in the senior ranks of the CCP at the moment. The SCMP:

A high-profile education campaign aimed at improving the quality of incompetent Communist Party cadres will only help to reduce the increasing number of protests over rampant corruption rather than fix the problem entirely, a senior official said yesterday.

In a rare press conference by a top party official, the vice-director of the Central Organisation Department, Li Jingtian , said the "mass incidents" in China had arisen because local authorities had been incapable of dealing with widespread grievances among rural residents.

"Some of our grass-roots cadres are probably less competent and unable to resolve the conflicts that triggered the incidents."

There has clearly been a directive from someone at the top to start dealing with these local protests lest they topple the CCP from power. Fancy a senior official admitting that local cadres are incompetent. Luckily, the CCP have an answer...re-education:
He said he believed the three-phase "Advanced Education Campaign", launched at the start of the year by President Hu Jintao to engage the country's 69 million party members, would cut down on the number of protests....the campaign, which focuses on party members' self-education rather than meting out tough punishment for corrupt and incompetent cadres, should not be viewed as a political movement involving purges or rectification.
A bit different to the olden days. I can see peasants happily renouncing violence now they know their incompetent local cadres are getting non-purging, non-punishing self-education.

show comments right here »

[boomerang] Posted by Simon at 16:01
Permalink | Speak Up (0) | TrackBack (0)





Toilet door wisdom

Visiting in a certain floor in IFC2, there are two sets of toilets:

Male & Executive
Female & Disabled

I kid you not. Forgot the damn camera phone, so you'll just have to take my word for it.

show comments right here »

[boomerang] Posted by Simon at 15:39
Permalink | Speak Up (1) | TrackBack (0)





Reaction to the London bombing

some of the online media reaction from Chinese and other media sites to the London bombing.

Below the jump is Xinhua's English language page this morning. See any mention of the London bombing? In fact Xinhua does have a brief report and now has placed a small set of photos linking to the report. The People's Daily says China resolutely condemns the attacks. The PLA Daily doesn't yet seemed to have caught up with the news. The China Daily has an entire special coverage subsite on the London bombings.

The always amusing official North Korean outlet, the KNCA, says Kim Jong Il is a genius of arts (you get that after your masters' degree) and the eagerly awaited Volume 59 of Kim Il Sing's completed works have just been published. Nothing on the London bombings yet.

Update

Kevin has some translations of some offensive Chinese online reactions to the bombings.
Hong Kong blogger Discover China has some pics of Chinese papers on the disaster.

xinhualondon.gif



show comments right here »

[boomerang] Posted by Simon at 12:12
Permalink | Speak Up (1) | TrackBack (1)


» asiapundit links with: saturday links




July 07, 2005
Getting the right answer

The bombings in London are horrific. Watching CNN just now, the reporter was interviewing an eyewitness who had been on one of the bombed trains. After the usual inane questions of a clearly rattled but nevertheless composed man, the following transpired:

CNN: Do you suspect terrorists?
Witness: As a barrister I do not want to jump to conclusions. We need to wait for the evidence. We can't be too hasty.
CNN: Can you tell me what you think of the people that did this?
Witness: I feel pity.
CNN (incredulous): Pity?
Witness: Yes. You can only feel pity for people that do these things.
CNN (throwing back to studio): Clearly a shocked and confused man. As you can hear, there is much confusion among witnesses here...

FFS. The man has just been in a bombing and still managed to string together not just sentences but cognent thoughts. Don't patronise the man just because he didn't give you the answers you thought he should. There's something vile in this desperate need for immediate reaction by news networks, shoving microphones in the face of victims.

show comments right here »

[boomerang] Posted by Simon at 20:10
Permalink | Speak Up (19) | TrackBack (2)


» Flying Chair links with: London
» mrbrown: L'infantile terrible of Singapore links with: London bomb blasts




Daily linklets 7th July

show comments right here »

[boomerang] Posted by Simon at 16:40
Permalink | Speak Up (0) | TrackBack (0)





Dealing with it

One senior CCP member talking about democracy might be an abberation, but two smacks of something bigger. And this is big.

The SCMP (full article below the jump) says another senior CCP member, Zhou Yongkang, acknowledged rising social unrest and rightly attributed these protests to economic and social rather than political factors. The key question comes from the article:

Sixteen years after the Tiananmen crackdown, has it dawned on the mainland leadership that protesters may not be out to undermine Communist Party rule but often have legitimate grievances about economic inequalities and social injustice?
Who said the CCP were slow learners?

The first part of dealing with a problem is admitting you have one. It seems like there has been a massive shift in the leadership's thinking. Civil unrest, left unchecked, could potentially topple the CCP. The CCP have the choice of dealing with the problems or ignoring them. They've chosen the former.

What are the problems they need to grapple with? Corruption, the income gap between rural and urban areas, growing inequality, a fairer balance of land use, better defined property rights and improving living standards to name a few. But the CCP has figured it's better to deal with it than let it fester.

The question becomes do they have the solutions? Do they have the guts to take on the vested interests, both internal and external, to deal with social and economic tensions? Or could this be the first crack in the CCP's edifice?

Other reading

Richard reaches similar conclusions.

Acceptance of rights replacing reflex fear of protests

Sixteen years after the Tiananmen crackdown, has it dawned on the mainland leadership that protesters may not be out to undermine Communist Party rule but often have legitimate grievances about economic inequalities and social injustice? For the second time in a week, a top leader has openly admitted unrest is on the rise - and attributed the protests largely to economic and social, rather than political factors.

Zhou Yongkang, the public security chief and a state councillor, maintained the rising protests were "internal conflicts among the people" that had mainly been triggered by domestic economic factors, the behaviour of cadres and by a lack of justice. Although they could become a major source of social unrest, panic was unnecessary, he told a meeting of the Standing Committee of the Chinese People's Political Consultative Conference in Beijing on Tuesday. "If you look into those mass incidents carefully enough, you will find few of them are confrontational and rebellious in terms of political purpose, and most of them can be properly handled." The right approach was to "be fully aware of their potential threat to social stability, while at the same time avoiding extreme measures".

The number of mass protests has shot up from about 10,000 in 1994 to more than 74,000 last year, according to Mr Zhou. His rare and frank examination of the causes and scale of protests on the mainland followed an acknowledgment of the problem by the vice-minister of the Office of the Central Leading Group on Financial and Economic Affairs, Chen Xiwen, in an interview with the South China Morning Post.

Mr Chen said reports of recent violent protests by farmers were the tip of the iceberg. The incidents showed farmers knew how to protect their rights and interests, he said, and hailed their willingness to speak up against injustice as a sign of democracy.

Political scientist Hu Xingdou said the pair's remarks reflected Beijing's new-found readiness to address mass protests. "Now they begin to stop the sort of paranoid thinking that every protest aims to subvert their leadership. "[They have started] realising most of the time it's as simple as people wanting some access to basic economic resources," said the Beijing Science and Technology specialist on social justice issues.

"I think the government may improve its methods of handling riots by trying to solve problems via dialogue instead of hardline measures."



show comments right here »

[boomerang] Posted by Simon at 10:38
Permalink | Speak Up (0) | TrackBack (0)





Olympian maths

Commiserations to London for winning the 2012 white elephant fest, and congratulations to Paris and the others for missing out.

To give you an idea of the strange maths that goes on to justify Olympic events, let's use Hong Kong's attempts to stage equestrian events for the 2008 Olympics. The Government yesterday declared the staging of the event will bring in HK$351 million to Hong Kong. Yet only two weeks ago we were told it will cost HK$1.2 billion to bring the equestrian events to the Big Lychee.

It sounds like something this guy would have come up with.

Update 12:19 7/7

From an email discussion another point emerges: the Hong Kong Jockey Club is not just Hong Kong's biggest taxpayer, but a significant part of the city's welfare system. Spending $1.2 billion on a facility for an elitist fringe Olympic sport comes at the expense of Hong Kong's poorest. Yet there's no hue or cry. The power of the HKJC? [end of update]

Moving on to the people get the politicians they deserve department...

The SCMP reports:

Chief Executive Donald Tsang Yam-kuen will outline his proposal that administrative assistants be appointed to ministers in his Policy Address in October, and it will then be opened for public consultation, the constitutional affairs secretary said yesterday.

Stephen Lam Sui-lung told lawmakers that those selected for the new posts were expected to stand for election to the Legislative Council after serving in the government and could eventually return to the government as ministers.


Mr Lam said the proposal was aimed at widening the pool of political talent and improving public participation in political affairs.

The Government is going to generate politicians from the public service. So much for the idea that people will one day vote for the person they best feel will represent them and their interests.



show comments right here »

[boomerang] Posted by Simon at 09:55
Permalink | Speak Up (2) | TrackBack (1)


» Barbarian Envoy links with: Olympian Condescension




July 06, 2005
Daily linklets 6th July

show comments right here »

[boomerang] Posted by Simon at 18:52
Permalink | Speak Up (5) | TrackBack (0)





In praise of apathy

The SCMP discusses the hue and cry over Hong Kong lawmakers' declining productivity:

As the first session of the new Legco's four-year term draws to a close this month, only 20 bills have been passed, compared to 37 in the 2003-2004 legislative session. Even if three remaining bills are passed this afternoon at the final weekly meeting for this legislative session, the total figure is still dramatically less than last year.
Maybe it's just me, but fewer laws are a good thing. Kudos to Legco...long may they continue to drag their feet.

show comments right here »

[boomerang] Posted by Simon at 13:30
Permalink | Speak Up (1) | TrackBack (0)





The CAT triangle*

The latest China Brief is up at the Jamestown Foundation and as usual it contains four excellent articles, especially the first.

1. Interpreting China's Grand Strategy. An absolute must read. It covers the differences between Deng and Mao's international strategy - whereas Mao was about international revolution, Deng and his successors are for peace and development. China recognises the need to avoid confrontation with the US, even in a post Cold War world:

After considerable debate within the CCP, China eventually decided to continue the strategy of embracing cooperation with the United States. Chinese analysts advanced what might be called the “law of avoidance” to explain and justify this approach. Based on historical analyses of the rise and fall of states over the last five centuries, this law postulates that rising nations that come into direct confrontation with reigning hegemonic powers fail in their drive for national eminence: for example, France in the early 19th century, or Germany, Japan, and the Soviet Union in the 20th century. Rising nations that avoid confrontation with, or even band-wagon onto, the reigning hegemon have enjoyed greater ultimate success (e.g., Britain in the 17th century and the United States in the 19th and 20th centuries). China’s leadership concluded it would be better to cooperate with the United States in order to accomplish its drive for national greatness. 9/11 greatly broadened the opportunities for such strategic cooperation.
The price of this strategy is China is vulnerable to US moves that are contrary to China's interests. But the most interesting part of this piece is in its analysis of China's desire to re-unite with Taiwan:
Beijing's strategy for incorporation of Taiwan is to grow Chinese power until it over-awes both Taiwan and the United States. As China's power approximates that of the United States, and as China demonstrates its willingness to use that power to incorporate Taiwan, Washington will be forced to disengage from Taiwan...In the meantime, China will use its influence to prevent injury to its de jure claim to Taiwan. In the fullness of time, if Taipei and Washington dispute Beijing’s "one country, two systems" terms, then a trial of strength with the United States may be necessary.
If you only read one China-related article today, make it this one.

2. Reforms in the PLA air force.

3. Hu's Central Asian gamble to counter the US "containment strategy".

4. Zimbabwe: China's African ally.

* CAT = China, America and Taiwan

show comments right here »

[boomerang] Posted by Simon at 09:47
Permalink | Speak Up (0) | TrackBack (1)


» jude law links with: jude-law-morediscount.info




July 05, 2005
China's (Uneven) Progress against poverty

Ravallion, Martin and Chen, Shaohua, "China's (Uneven) Progress Against Poverty" (September 2004). World Bank Policy Research Working Paper No. 3408.

During the discussion about China's New Left, Dylan pointed out the above working paper from a couple of economists at the World Bank. Over the weekend I finally had time to read it, and it is a remarkable piece of work for anyone interested in China's income gap, the split between rural and urban and the remarkable poverty alleviation in China. Worth reading in full if you have the time (skip the equations), but Dylan nicely summarised the findings:

1. China has made huge progress against poverty, but it has been uneven progress. Half of the decline in poverty achieved since reform and opening up came in the first few years of the 1980s. Poverty reduction stalled in the 1990s.
2. Inequality has been rising. In marked contrast to most developing countries, relative inequality is higher in China's rural areas than in urban areas. Absolute inequality has increased appreciably over time between and within both rural and urban areas.
3. The pattern of growth matters. Growth in the primary sector (mainly agriculture) did more to reduce poverty and inequality than either the manufacturing or service sectors. Rural economic growth reduced inequality in both the urban and rural areas, as well as between them.
4. Inequality is a concern both for economic growth and poverty reduction. With the same historical economic growth rates and no rise in inequality in rural areas alone, the number of poor in China would have been less than 1/4 of its actual value today. Rising inequality is not a "price" of high growth: statistics show that the periods of more rapid growth did not bring more rapid increases in inequality. The statistics suggest that more uneual provinces will face a double handicap in future poverty reduction: they will have lower growth and poverty will respond less to that growth.
The paper itself contains even more interesting pieces. For example the (Chinese) National Bureau of Statistics (NBS) did not perform household surveys at all during the Cultural Revolution. The authors create a poverty line of 850 yuan per annum in rural areas and 1200 yuan p.a. in urban areas, noting that poverty is becoming a relative rather than absolute term and costs of living have a big impact. One aspect of this the authors do not address is the massive rural migration to cities. Clearly despite the higher living costs of cities, economically the move makes sense for many rural dwellers even despite the higher poverty threshold. But are these people confusing nominal rises in wealth with real ones. In other words, they might be earning more but they might be spending relatively more just to survive as well. I'd like to think millions can't be wrong, but it's a question worth pursuing in analytical detail, especially when the externalities of catering to booming cities are considered.

But wait, there's much more...

The authors note China's urban population share went from 19% in 1980 to 39%, a massive and rapid change. By contrast India went from 23% to 28%. But the authors point out this might be due as much to expanding cities encompassing rural areas as it is migration.

Putting some numbers on the falls in poverty, the paper says poverty fell from 76% in 1980 (thank you, Mao) to 23% in 1985. But the fall in poverty hasn't been a straight line. The authors say the late 80s and early 90s actually saw rises in poverty before another fall in the mid 90s. Most interestingly coming into the late 90s there were signs of rising poverty in rural areas. I find that surprising given China's incredible economic growth since the Asia crisis of 97. What it means is the coastal/urban regions have benefitted both from the economic boom and at the expense of the rural hinterlands.

Moving on, the authors find the fall in Chinese poverty has been the net result of two strong but opposing forces: rising inequality and positive growth. In the past 20 years poverty has become more responsive to inequality. The rich are getting richer and the poor poorer. Yet in absolute terms everyone is better off. As I noted above, the move now is from absolute poverty to a more relative measure - surely a sign of success in poverty alleviation.

Unsurprisingly the authors find that growth in the agricultural sector has been the primary driver of poverty alleviation.

In looking at inequality between rural and urban areas, the authors find once you allow for the cost of living the answer is inequality has not changed between the two areas, although there has been a trend in absolute inequality between them. But within each area there has been growing inequality, albeit with patches where it went the other way. The authors say:

In marked contrast to most developing countries, relative income inequality is higher in rural areas, though the rate of increase in inequality is higher in urban areas; it looks likely that the pattern in other developing countries will emerge in China in the near future.
They don't back up this last assertion, which makes it difficult to judge. It seems more likely that past patterns will continue.

What has been the impact of inequality? Naturally higher inequality has made poverty alleviation relatively immune to economic growth in recent years. The authors ask if China's economic growth could have been so great without rising inequality. After some number crunching they conclude there is no sign of a short-term trade off between growth and equity. They also see no population shift effect on total inequality and that growth in agriculture is associated with lower inequality, while there is no correlation with growth in the secondary or tertiary sectors of the economy. In other words, the only growth that matters for China's poor is in agriculture. The authors do not consider why this is the case given it seems to ignore the urban poor, unless the urban poor's fortunes are closely tied to how things are going back home. But that would seemingly put the conventional wisdom (that the rural poor go to cities to send money back home) on its head. Another interesting avenue for someone to explore.

Another highlight of the report:

...positive shocks to rural incomes reduce inequality. Growth in urban incomes is inequality increasing in the aggregate and within urban areas, but not rural areas.
Again it seems the urban poor are getting the worst of it - their rural friends benefit if rural incomes rise, while they suffer if urban incomes rise. Remind me why they move to cities? Either they are seemingly economically irrational, or there's more to this than meets the eye.

Most interesting of all is the assertion it would appear reasonable to attribute the bulk of rural poverty reduction between 1981 and 1985 to this set of agrarian reforms. Which reforms? De-collectivization and the privitisation of land use rights. That's right. Simply undoing the worst of Mao's madness and giving people some kind of property rights resulted in the biggest reduction of poverty in human history. How much? The authors reckon these simple changes were responsible for 77% of the total poverty reduction.

Next comes the government's agricultural prices policy. Raising the compulsary purchase prices of agricultural goods (effectively a tax cut) there is strongly correlated with reductions in inequality and reduced poverty. Funny that - less government thievary reduces poverty.

The study finds trade policy is NOT a plausible candidate for explaining China's progress against poverty. It just emphasises what mattered the most was the granting of basic property rights.

When it comes to regions two things stand out. The authors find confirmation that coastal areas had much higher poverty reduction trends. But the province of Guangdong, home to Shenzhen (the first "liberated" Chinese city), saw significant and outsized reductions of poverty compared to everywhere else. Is it because the Cantonese are more industrious and business savvy? And does that mean Guangdong's inclusion in coastal area comparisons obscures the true story? There is a chance that the rural-urban gap may not be as pronounced as feared. It might be a Guangdong (and likely Shanghai) gap versus the rest of China. While on Guangdong, it is the one province that showed no uptrend in inequality and thus had the highest rate of poverty reduction despite only slightly above average growth and relatively high initial inequality. The rest of China needs to learn from Guangdong.

While on provincial differences, the authors find initially poorer and more equal provinces had higher subsequent rates of poverty reduction. The more equal provinces had higher growth rates.

Conclusions

In summary, what does all this mean?

1. The biggest and easiest gains came from undoing collectivization and giving individuals the responsibility for farming. In other words, Communism doesn't work.
2. Reducing taxes the poor face helps alleviate poverty. In other words, the less the Government interferes, the quicker people get out of poverty.
3. China benefited from a relatively equitable land distribution when collectives were broken up. Given what the country had to go through to get to that point, it's a silver lining in a very black cloud. Nevertheless it emphasises the importance of land reform and distribution in poverty alleviation.
4. Macroeconomic stability, especially avoiding inflationary shocks, has been good for poverty reduction. Given the imbalances currently building in China, this is a point to watch. Those that advocate a revaluation of the yuan could use this to argue they are helping China's poor. Given most of the poor's agricultural produce is domestically consumed a rise in the yuan shouldn't have much impact on the poor, at least initially.
5. China has done all the easy stuff in poverty alleviation. To go further, the country has to address the problem of rising inequality.
6. China's recent economic growth is coming from sectors that least help the poor. That implies inequality is only going to get worse.
7. The country is entering a phase where relative poverty matters more than absolute poverty, and thus economic growth will matter less in reducing poverty going forward.

If you were running China, what would you do to address these problems?

Follow up

26 million in 'absolute poverty' reports The Standard.
Brad DeLong chimes in.

Updated (July 21st)

Ben Muse links to a US study on regional income disparities in China.



show comments right here »

[boomerang] Posted by Simon at 15:36
Permalink | Speak Up (13) | TrackBack (1)


» Dean's World links with: China and Poverty




Daily linklets 5th July

show comments right here »

[boomerang] Posted by Simon at 12:31
Permalink | Speak Up (4) | TrackBack (0)





July 04, 2005
Blogging is good for you

First we discover there's plenty of money in blogging. Now, courtesy of an article by Jean Nicol* in the SCMP, we discover that blogging is good for you, too.

Ms Nicol calls herself the Everyday Psychologist. Helen, you may have a copyright case here.

Writing about emotional topics by keeping a journal is usually a good idea. There is quite a bit of evidence to show that it makes people feel better, both physically and mentally. Talking out everyday experiences helps people's equilibrium, too.

But, increasingly, mood-regulating activities like these are moving into cyberspace - in the shape of e-mails and journal-like weblogs, or "blogs". Entries are made by those who visit them, especially the young and relatively well-heeled. What is going on here, and is it a good thing?

The internet limits, and in some senses shapes, interactions between individuals, and between the blogger and the audience as it is conceived by the blogger. First, this is because they are reduced to mainly text- and image-based communication. This has its good points.

Writing about emotionally traumatic experiences online has been shown to have positive long-term effects. That makes web-based applications a relatively inexpensive and flexible option for treatment, especially in large-scale disasters like last year's tsunami. Setting up e-mail connections in the field could significantly increase the number of people clinicians could treat. This use of cyberspace has implications for everyone's well-being.

Some blogs are written by highly original cross-pollinators of insight and information. But the majority of bloggers are less sparkling individuals: navel-staring teenagers and adults sharing the mind-numbing minutiae of their daily lives. In other words, this is the very stuff of diaries.

A blog is not a journal, though. They differ in a few significant respects. For one, a blog is meant to be read by other people, whereas journals generally are not. But a blogger more explicitly creates a persona and voice that are tailored to the blog's audience. Because the process takes place in a public space, creating and maintaining that persona takes on something of the falseness and hype of an advertising campaign or political spin.

So, oddly, a blog - far more than a two-way e-mail exchange - resembles a performance. This is the reverse of what happens in the offline social sphere, in which a conversation has more of a performance quality than does journal-writing.

A blog is a chance to publicise yourself; a way to enjoy your 15 minutes of fame without the interference or cost of a production company or an agent. Yet, it retains something of the private individuality of a diary.

The self is censored in all social situations - just being polite involves lying. But in blogs, one is more likely to notice exactly the sort of package one is aiming for - a heightening of awareness that, again, parallels diary-writing. Or, at least, I hope this is the case. Because if it is not, then most bloggers represent the downside of the democratisation of fame.

No doubt both phenomena are at work. Bloggers heighten their own awareness, but they also resemble reality-show participants, in which the consciousness of viewer ratings is replaced by a sort of online secondary-school popularity contest. Any potential insight is submerged under a gush of superficiality and kitsch.

The more this new social space matures, the more it resembles the offline world - because it is beginning to be populated with more "ordinary" people. As the colonisation continues, social skills become increasingly transferable.
A recent study showed that the people who benefited most from disclosing things about themselves online were the most outgoing people, with higher-quality social networks offline. A case of life imitating cyberspace?



show comments right here »

[boomerang] Posted by Simon at 13:41
Permalink | Speak Up (7) | TrackBack (0)





Violent democracy

Quite frankly, this is extraordinary. The SCMP carries an interview with Chen Xiwen, a vice-minister in charge of agriculture in China. Most of the report is reproduced below the jump but here's a summary of the incredible things Mr Chen says:

1. Village riots are a sign of democracy. Of course in most democracies farmers or other aggreived parties have easier methods of expressing their problems, such as courts or the media. In China, apparently, massed riots are the thing. Talk about democracy with Chinese characteristics.
2. The central leadership quickly responds to farmers' problems. Which implies either the central leadership has no idea what's going in the countryside and is relying on those who defy the state's own censors to hear about it. Talk about communication with Chinese characteristics.
3. Mr Chen lauds the role of the internet and media in reporting on riots because it allows the central government to respond as in point 2. So are we going to see a massive relaxation in censorship laws anytime soon? Don't hold your breath.
4. The protests are an inevitable consequence of the massive social and economic changes taking place in China. I dare suggest it is just as likely to be about incompetent and/or corrupt local authorities fleecing farmers who have no form of redress.

A final question before the article proper: when was the last time you heard about a village of farmers rioting in India?

Update July 5th

Naturally ESWN has more on Chen Xiwen, including a Chinese language interview.

Violent protests by the mainland's farmers are inevitable due to the country's enormous social and economic changes...Chen Xiwen also hailed farmers' willingness to speak up against injustice as a sign of democracy.

While stressing that he did not approve of using violence, the recent spate of protests demonstrated that farmers now knew how to protect their rights and interests, said Mr Chen, vice-minister of the Office of the Central Leading Group on Financial and Economic Affairs.

Reports of such protests also helped the central leadership act quickly and solve problems faced by farmers, Mr Chen said..."On the one hand, riots like the one in Dongyang are a tragedy and show that local authorities failed to do a proper job," Mr Chen said. "But on the other hand, they show that our farmers know to protect their rights, which is a good thing. It shows farmers' democratic awareness is improving, but unfortunately their sense of law and order has not improved as quickly."

Mr Chen, who has studied mainland agricultural issues for more than 20 years, is the key official credited with drafting a series of central government documents in the past two years that have helped reduce farmers' tax burden and allocated more funds to boost agricultural production. Uncharacteristic of officials' usual aversion to sensitive issues, Mr Chen is ready to admit the problems and discuss policy from a unique perspective. Referring to several damning reports on the plight of farmers that have attracted international attention in recent years, he said more protests had gone unreported.

"There are at least 3 million villages across the country and you can imagine how many problems crop up each day," he said. "If there are 30,000 villages having problems, that accounts for only 1 per cent of the total. People have to look at this from a national perspective and against a backdrop of phenomenal social and economic changes taking place.

"Overseas media tend to play up the riots, and it is their job to do so. But you have to remember, things are getting better for farmers generally and few of them would tell you that they want to go back to the past, despite their complaints."

Mr Chen hailed the role of the media and internet in reporting the riots, which he said enabled the higher authorities to act quickly. "Now, thanks to the internet, any incident will quickly come to the attention of the highest level of mainland leadership. In the past, they could easily be covered up by local officials," he said.

He said as China was going through a critical stage of reform, the interests of certain groups like farmers could be easily hurt.



show comments right here »

[boomerang] Posted by Simon at 13:32
Permalink | Speak Up (19) | TrackBack (1)


» asiapundit links with: riot watch ii




July 03, 2005
Sexless in Hong Kong

Hong Kong Chief Executive Donald Tsang has exhorted Hong Kongers to be fruitful and multiply as part of his three child policy. Today's SCMP might have found the problem:

Growing numbers of people are seeking help from the Family Planning Association because they do not know how to have sex. Grace Wong Ching-yin, who heads the fertility service, said: "Some married couples are not familiar with their body parts. They don't know where their sex organs are."

Dr Wong said there were some couples who did not know the procedures involved in sexual intercourse. "They do not know the physical changes associated with sexual response, like males having erections."

I see a silver lining in this cloud. Sex education APIs* on Hong Kong TV and radio...a marked improvement on what we get now.


* Announcements of Public Interest: the paternalistic and asinine Government paid advertisements exhorting us to check our elderly parents' teeth.



show comments right here »

[boomerang] Posted by Simon at 15:05
Permalink | Speak Up (2) | TrackBack (0)





July 01, 2005
Top referrers and stats for June

Thanks to the top referrers for June:

Hemlock
Mr Brown
Tomorrow
Winds of Change
ESWN
Cowboy Caleb
Babalublog
Asiapundit

Thank you to everyone else who also linked and visited.

As usual, some stats for June:

* 20,964 unique visitors made 51,549 unique visits, reading a total of 118,911 pages and drawing 6.63 GB of bandwidth.
* This equals 1,718 visits per day reading 3,964 pages each day. In other words each visitor read 2.3 pages on average. Each visitor returned on average 2.45 times during the month.
* 965 added this site their to favourites. 197 subscribe via Bloglines and 116 via Feedburner.
* 64% of you use IE, 18.1% Firefox, 3.1% Safari, 2.2% Mozilla, 1.6% Opera and 2.8% Netscape to browse this site. 83.2% of you use Windows, 5.7% Mac, 1.6% Linux.
* 15.4% of visits were via search engines, of which Google was 54.8% and Yahoo 31.3%. The top search phrases were "Nancy Kissel", "Sarong Party Girl" (and variations thereof) and "Robert Kissel".
* The most visited individual pages were the "Nancy Kissel trial archive"; "Best journal from the 2004 ABA" (the SPG connection) and "Tiananmen Square - June 4th, 1989".

Some geographical data although it isn't that reliable (especially given the use of proxy servers):

US = 55%
EU = 8.9%
Australia = 6.5%
Singapore = 6.0%
Hong Kong = 5.0%
China = 3.3%

Alternatively a time zone share study via Sitemeter says about 35% are from Asia Pacific, 15% from Europe and 48% from the Americas.



show comments right here »

[boomerang] Posted by Simon at 14:20
Permalink | Speak Up (4) | TrackBack (0)





Daily linklets 1st July

show comments right here »

[boomerang] Posted by Simon at 13:17
Permalink | Speak Up (0) | TrackBack (1)


» CSR Asia - Corporate Social Responsibility in Asia links with: No time for sex




Hong Kong Monopoly

Politicians, businessmen, real estate, drugs and Spanish junkets. Some very Hong Kong stories.

Firstly newly appointed Chief Secretary Rafael Hui Si-yan hasn't got off to a great start. The SCMP:

Instead of moving into Victoria House on The Peak - a residence much loved and praised by his new boss Donald Tsang Yam-kuen - Mr Hui will have to fork out $160,000 a month from his own pocket for the duplex flat he rents in Leighton Hill through his former boss, Sun Hung Kai Properties.

He was unaware that regulations on accommodation changed several years ago with the introduction of the ministerial system of government and he would have to pay his own expenses if he did not take up the official residence that comes with the job.

Just a small question - how does a civil servant afford a $160,000 a month? Oh that's right, it's Hong Kong's underpaid and overworked civil service.

Moving right along. Where do retired Chief Executives go? Why they stay right where they, thanks to Hong Kong's 12 taxpayers. Again the SCMP:

Taxpayers are still paying more than $100,000 a month for a flat used by Tung Chee-hwa four months after he stepped down as chief executive.
A spokeswoman at the Chief Executive's Office said the 3,700 sq ft flat adjoining Mr Tung's own apartment in Grenville House, Magazine Gap Road, was leased until 2007, when his term of office had been due to end. She said the government was "in discussions with Mr Tung and the flat owner about subleasing arrangements". The former chief executive is keen to keep the second flat.
I'll bet he is.

But maligning public servants is one thing. Unfortunately Canning Fok has discovered the downside of leasing out properties:

Police boarded up and plan to bulldoze a mansion in the Point Grey [Vancouver] neighborhood here linked to a Hong Kong business tycoon after discovering a drug lab inside, officials said.

Officials refused to name the owner, but according to the Province newspaper, the house worth 1.6 million dollars (1.3 million US dollars) is owned by the British Virgin Islands-based holding company Resear Ltd., which is under the directorship of Canning Fok.

I hope Mr. Fok was planning to renovate.

Update

There's no Guggenheim Museum on Lantau Island. From the SCMP letters page:

Maybe it's the food? Seven Legco members have made the time to travel to Bilbao for several days of research relevant to the West Kowloon project on the grounds that they want to become better informed.

Two weeks ago, an alliance group of 19 NGOs, environmental and community groups invited 40 Legco members on an all-expenses paid, fully catered trip. This one was by boat to see the coastlines of North Lantau that are the focus of a much bigger and potentially more damaging development than West Kowloon. The trip would have taken only three hours on a Sunday afternoon, would have shown them areas of the island that they would not normally reach on their own and would have provided comprehensive information, statistics and data related to the planned developments and alternatives.

Not one of the invited Legco memebrs agreed to make the time to come. Not one. Perhaps they feel that Lantau is less important than West Kowloon (or Bilbao), or perhaps we should have offered tapas?

What did you expect, running it on a Sunday afternoon? And there's a very good chance they do find Lantau less important than West Kowloon. Nevertheless, a junket is a junket. And there's no business class on the junk to Lantau.



show comments right here »

[boomerang] Posted by Simon at 11:38
Permalink | Speak Up (0) | TrackBack (0)





Asia's ambivalence to Hitler

A group of school kids in Singapore were taking part in a music camp. They were divided into teams and told to choose a team name and leadership idol. One of the teams chose the name 'Hitler'. Naturally the Israeli and German embassies re-acted with alarm, and the students are to undergo an education program about one of history's most evil men. The teachers at the camp have not been reprimanded, nor did they question the students' choice at the time.

Even more curiously, it doesn't seem to have registered on the Singaporean blogosphere. [Ed. - see below]

What it does reflect is a general ambivalence about Nazi Germany in Asia. Hong Kong fasion chain Izzue infamously had a Nazi theme within the last two years. Last June I wrote about this ignorance of non-Chinese history:

There is an appalling lack of understanding of non-Chinese history in this part of the world. China can feel rightly aggrieved by what happened to it during WW2 and prior to that at the hands of the Japanese. However every few months some cr@p like this surfaces, where a shop is selling Nazi inspired merchandise or a bar is decked out in such regalia. Unfortunately it seems this stuff is seen as almost cool and certainly nothing out of the ordinary. That such things happen in the first place demonstrate the ignorance of non-Chinese that is extremely common here. It is inexcusable.
Nothinhg's changed. The Israeli and German embassies need to become pro-active, rather than re-active on this issue.

I should note this fascination with Nazi-ism is not driven by anti-semitism. Indeed for the most part Chinese people have a flattering stereotype of Jews as industrious, educated and business savy. It's just that the evils of Nazi-ism are barely taught in schools, so ignorance prevails.

Compare and contrast the reaction to any mention of Japan's actions in WW2.

Other reading

I stand corrected, thanks to Huichieh. Singaporean blogosphere reaction:

Singapore Angle
Ivan's Chimera
Singapore Ink
Tomorrow
Kababoom
Molly Meek

show comments right here »

[boomerang] Posted by Simon at 11:07
Permalink | Speak Up (7) | TrackBack (1)


» From a Singapore Angle links with: Reductio ad Hitlerum




Who said there's no money in blogging?

Some of the bigger names in blogging have been able to turn the venture into a money spinner or full-time job: Andrew Sullivan, Glenn Reynolds, Jason Kottke to name a few. But that's nothing compared to BlogChina. From the SCMP:

The company that launched China's leading blog portal plans to list on the technology stock-heavy Nasdaq exchange by the second half of next year and hopes to achieve a market capitalisation of more than US$1 billion, company officials said yesterday.

...the dominant mainland weblog portal [had] more than two million bloggers as at the end of May. With business expanding rapidly, [BlogChina founder Fang Xingdong] expected this number to reach 10 million by the end of this year.

BlogChina, established in June last year, has gone from just one employee to 210 staff. "We are adding 50 employees a month at the moment," Mr Fang said. The company was started with US$500 million [Ed. - I assume that's a typo...at least I hope it is!] in seed capital from Softbank Asia Infrastructure Fund and will receive a second round of funding of US$10 million this month from a group of six venture capital firms based in China and the United States.

Revenues have grown from about 400,000 yuan a month to more than two million yuan last month. BlogChina.com boasts a list of high-profile advertisers such as Dell, HP and IBM. Advertising and wireless charges form its primary revenue streams. The company is introducing a pilot virtual payment system this month in which bloggers can charge for their content and pay a share of their earnings to BlogChina.

China leading the world, again. Although can a company turning over 2 million yuan (about US$240,000) a month really be worth US$1 billion? There's one founder and a bunch of venture capitalists hoping so.

Eat your heart out, Western capitalist bloggers.

Other reading

China Stock blog has excerpts of an interview with Fang Xingdong.
Kevin Wen on the business of Blogchina.com
Social branding on BlogChina.

show comments right here »

[boomerang] Posted by Simon at 10:30
Permalink | Speak Up (0) | TrackBack (1)


» keso links with: 昨日新闻 - 盗版10å¹´