Archive for May, 2014

01/05/2014

China’s Income-Inequality Gap Widens Beyond U.S. Levels – Businessweek

The gap between China’s rich and poor is now one of the world’s highest, surpassing even that in the U.S., according to a report being released this week by researchers at the University of Michigan.

The metric used in these studies, the Gini coefficient, would be zero in a society in which all income is equally distributed, while a score of one would reflect a society in which all income is concentrated in the hands of a single individual. Over a three-decade period starting in 1980—shortly after China’s economic reform and opening commenced—the Gini coefficient has grown from 0.3 to 0.55 in 2010.

In the U.S., by contrast, the index reads 0.45. Anything over 0.50 is considered “severe disparity,” says the report in the Proceedings of the National Academy of Sciences. The authors used data from seven separate surveys conducted by a number of Chinese university-affiliated organizations, including Peking University’s Institute of Social Sciences.

via China’s Income-Inequality Gap Widens Beyond U.S. Levels – Businessweek.

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01/05/2014

The U.S. Is Big and Rich. China Is Just Big – Businessweek

Let’s assume, for the sake of argument, that China’s economy is on the verge of surpassing the U.S. economy in size. (By one measure, anyway—purchasing power parity as calculated by the World Bank’s International Comparison Program.) What does it mean?

Start with what it doesn’t mean. It doesn’t mean China is rich. All that gross domestic product has to be spread around more than a billion people. On a per-capita basis, the highest-income country in the world in 2011 was the oil-soaked and lightly populated Gulf monarchy of Qatar, at $146,000 per person. The U.S., as this chart shows, was No. 12, at just under $50,000.

China? China was No. 101, at a little less than $10,000 per capita. It’s not labeled on the chart, but if it were, it would appear between Serbia and Dominica.

via The U.S. Is Big and Rich. China Is Just Big – Businessweek.

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01/05/2014

Explosions on Train in Chennai Kill One – India Real Time – WSJ

Two explosions on a train in the Indian city of Chennai killed one person and injured nine others Thursday.

Authorities believe two bombs were planted in two separate coaches of the Bangalore to Guwahati express train and blew up as it sat at the Chennai railway station in southern India.

“The police are already on the job, they are investigating what kind of bomb it was and what was the purpose,” Chennai Central station General Manager R.K. Mishra told reporters.

One of the bombs killed a 20-something woman that was sitting on the seat under which it was placed, Mr. Mishra said.

Two of the nine injured were hospitalized for serious injuries. Police and bomb squads have checked the train for more explosive devices, said Mr. Mishra.

“Initial investigation reveals that the blasts were low intensity,” said an official with the Indian Railways.

There was no immediate claim of responsibility for the blast in a region of India which is rarely a target of these sorts of attacks.

The explosions came despite heightened security as India votes in its massive, rolling general election. In Srinagar in the northern state of Kashimir two explosions targeting election rallies injured 14 people this week.

On April 12, a suspected landmine blew up a bus carrying poll workers in Chattisgarh, killing 14.

via Explosions on Train in Chennai Kill One – India Real Time – WSJ.

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01/05/2014

Will ‘Mega-Trader’ China Turn Into a Free Trader? – China Real Time Report – WSJ

For more than a decade, China has been accused of one protectionist move after another: subsidizing state-owned firms, blocking imports, manipulating currency. Just yesterday, the U.S. Trade Representative put China, once again, on its “Priority Watch List” for ripping off intellectual property.

But if Standard Chartered is right, all that may soon be changing. China depends so much on global trade, the bank argues in a new report, that Beijing will likely become a “champion of free trade.”

Here’s the logic: China has become the world’s first “true mega-trader” since Britain in the 1800s, the report says, borrowing mega-trader terminology coined in a report last year by two Peterson Institute for International trade researchers.

As the Peterson Institute researchers describe it, a country qualifies as a mega-trader if it is has a big share of global trade and also if its economy depends greatly on trade. By that definition, the U.S. hasn’t really made the cut even though the U.S. and China both had about 12% of global merchandise exports at their height. That’s because the U.S. economy is far less dependent on exports than China’s is.

Once a country reaches such an exalted status, Standard Chartered reasons, it recognizes that its interest lies in opening markets overseas and at home.

“Our view is that because China is a highly competitive exporter and also needs substantial imports, it will increasingly recognize that it is in its self-interest to encourage global free trade,” said John Calverley, the bank’s head of economic research in an email. He adds that China’s reform agenda “would be well-served by increasing opening, including closer to a free-trader position on issues like services, intellectual property, competition policy” and other areas.

Well, maybe.

via Will ‘Mega-Trader’ China Turn Into a Free Trader? – China Real Time Report – WSJ.

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01/05/2014

They say every vote counts, but mine wasn’t | India Insight

Fifty-four percent of Bangalore‘s eligible voters showed up at the polls on April 17, a disappointing number considering the high turnout in some states. I was not among them, but it was not for lack of trying. Despite doing everything correctly, my application never went through.

I was 18 the last time India held national elections. Since then, we moved around a lot. I was looking forward to voting this year for the first time. A record number of people are registered to vote in this election, and the country is at a crossroads as it considers whether to kick out the Gandhi-Nehru dynasty and its Congress party in favour of the Bharatiya Janata Party and prime ministerial hopeful Narendra Modi, or perhaps a third front of other parties.

I was eager to include my voice in the nation’s decision. I filled out the forms and gave copies to volunteers in the Reuters Bangalore newsroom who submitted the applications to the Election Commission. Voters’ names are supposed to appear on the electoral rolls six weeks after submission. The deadline for applications to reach the Election Commission was March 16. Voting day in the state of Karnataka where I live was April 17. I checked my application status online on April 15 and saw that it was still “under process”.

I called the Electoral Registration Officer that day to ask why I wasn’t registered yet. An officer there told me to call my ward office to confirm that it went through because it might not necessarily reflect online. I asked an official at my local area ward office what was happening. He said that if the Election Commission hadn’t processed my application yet, it was probably too late for me to vote. When I asked why this happened, he said that it could be because Election Commission officials either lost my application or didn’t have time to process it. At that point, another worker there said that I should go home and wait for the voting slips that the commission distributes 48 hours before polling. If I didn’t get it, then it was too bad for me.

I do not know how many people encountered the same problem, but I know that I am not the only one in Bangalore. Meanwhile, in other cities, including Pune and Mumbai, people found that their names were missing.

Yashas Mitta, a Bangalore-based executive at design firm Creativeland Asia, saw that his name was not on the list. His mother’s name was, but someone had voted in her place. “When I asked the officials, they told me that they had received the list of people who had registered before January. Anybody who registered after that didn’t find their names on the list. And this is funny because the registration was open until March.”

Ankit Baphna, a 33-year-old IT consultant in Bangalore, also did not find his name on the list. His local ward office wasn’t helpful. The Bangalore Bruhat Mahanagara Palike, or Bangalore municipal corporation, told him, “you can vote in next elections,” Baphna wrote in a Facebook post.

Amulya Nagaraj, a former Reuters reporter who lives in southern Bangalore, found her name struck from the list. “When I asked the reason, they said that these kinds of things happen, that sometimes names are removed from the list,” she said.

via They say every vote counts, but mine wasn’t | India Insight.

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01/05/2014

Two attackers among three killed in China bombing | Reuters

Two of the assailants who carried out a bombing in western China were among the three people killed, state media said on Thursday, in an attack which also wounded 79 and has raised concerns over its apparent sophistication and daring.

Paramilitary policemen stand guard near the exit of the South Railway Station, where three people were killed and 79 wounded in a bomb and knife attack on Wednesday, in Urumqi, Xinjiang Uighur Autonomous region, May 1, 2014. REUTERS/Petar Kujundzic

The People’s Daily, the official newspaper of the ruling Chinese Communist Party, said on its official microblog that “two mobsters set off bombs on their bodies and died”, though the report did not call it a suicide bombing.

The other person who died was a bystander, the People’s Daily said.

Knives and explosives were used in the assault on a railway station in Urumqi on Wednesday, the first bomb attack in the capital of Xinjiang region in 17 years. The attack was carried out soon after the arrival of a train from a mainly Han Chinese province, state media said.

The bombing was possibly timed to coincide with a visit to the region with a large Muslim minority by President Xi Jinping, when security was likely to have been heavy.

On Thursday, dozens of black police vans were parked around the station, while camouflaged police with assault rifles patrolled its entrance. Despite the security, the station was bustling and appeared to be operating normally.

The government blamed the attack on “terrorists”, a term it uses to describe Islamist militants and separatists in Xinjiang who have waged a sometimes violent campaign for an independent East Turkestan state – a campaign that has stirred fears that jihadist groups could become active in western China.

State media accounts did not say if any other attackers had been killed or captured. Nor did they say if Xi, who was wrapping up his visit, was anywhere near Urumqi at the time.

Pan Zhiping, a retired expert on Central Asia at Xinjiang’s Academy of Social Science, described the attack as very well organized, saying it was timed to coincide with Xi’s visit.

“It is very clear that they are challenging the Chinese government,” he said.

“There was a time last year when they were targeting the public security bureau, the police stations and the troops. Now it’s indiscriminate – terrorist activities are conducted in places where people gather the most.”

There has been no claim of responsibility for the attack.

via Two attackers among three killed in China bombing | Reuters.

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