Archive for ‘Economics’

05/11/2012

* China authorities pushing happiness amid rising discontent

It was the tiny mountain kingdom of Bhutan that started the notion of a Gross Happiness Index. UK’s Premier Cameron had a brief stab at tit. And now the world’s most populous country is having ago.  Maybe it will be taken seriously in due course!

SCMP: “With dissatisfaction growing over corruption, inequality, food safety and numerous other social problems, mainland authorities are shifting their focus from economics to emotions.

Simply put, they want everyone to be happy.

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From Beijing to Ningxia, local, provincial and regional leaders have been setting up “happiness indexes” or otherwise tailoring programmes, projects and policies to increase people’s satisfaction with their lives, as well as, of course, with the government.

Eighteen provinces and more than 100 cities have jumped on the happiness bandwagon in recent years, according to a report in Beijing News last week.

The campaign has helped the Communist Party set the stage for its 18th national congress, which opens this week amid increased incidents of social unrest.

While most analysts welcome the increased focus on people’s welfare, some caution that happiness is hard to measure and suggest the party would be better off advancing concrete policies for social change.

The public has been less forgiving, mercilessly ridiculing the policy on the internet.

“Without a constitutional government and democracy, a ‘Happy China’ will only be a fable,” said Professor Hu Xingdou, who is a commentator at the Beijing University of Technology.

“There are so many things that the authorities could do to improve the public’s satisfaction, such as protecting civil rights, building a democratic country, fighting corruption, stopping illegal land grabs and cutting taxes.”

Reform-minded Guangdong party secretary Wang Yang became perhaps the most prominent – and widely mocked – proponent of the public satisfaction drive last year when he outlined his proposal for a “Happy Guangdong” province.

As part of the plan, Wang allocated 423 billion yuan (HK$521 billion) for projects to improve people’s livelihood. He said he would attempt to reduce the province’s gross domestic product growth from a breakneck 12.5 per cent to a more manageable level of 8 per cent.

To measure his success, Wang set up an index of individual economic indicators, including employment, income, education, health care, crime, housing, infrastructure, social security and the environment.

But Wang was hardly the first to try out such a scheme. His now-disgraced rival, former Chongqing boss Bo Xilai, also pledged to slow the local growth rate after his city was named the mainland’s happiest in 2010.

In Beijing, local propaganda authorities even aired a seven-episode television series in August offering advice to those who are unhappy.

In it, a professor with a psychology degree from Harvard University instructed people on how to find their inner peace, rather than find fault with the government.

Jiangyin city, Jiangsu province, had one of the earliest satisfaction drives. The local government set up its happiness index in 2007, promising to improve the city’s employment, income, public safety and heath care, as well as reducing pollution.

The programme has been a rousing success, if you believe the government’s survey. Within three years, Jiangyin found that 95.87 per cent of its residents felt happy.

Professor Xu Guangjian, of Renmin University’s School of Public Administration and Policy, said he had not seen a single regional government that had been able to convincingly survey the public’s level of happiness. “The factors behind unhappiness are obvious,” he said.

Surveys conducted by Guangdong’s newspapers and government think tanks suggest the main source of most people’s gripes is the government, with many pointing to failures in job creation, social welfare, medical services, housing, pollution, food safety and soaring prices.

And there may be a new source of public dissatisfaction: satisfaction drives.

“It’s very difficult to measure happiness and there’s a subtle growing dislike of the authorities’ overwhelming happiness campaigns,” said Professor Xing Zhanjun, of the Centre for Quality of Life and Public Policy at Shandong University. “The public is starting to mock the word these days.”

Nonetheless, central government authorities have been eager to extend the policy. Many local governments picked up the satisfaction agenda after Premier Wen Jiabao made happiness and human dignity central elements of his 2010 work report.

In the run-up to the party congress, China Central Television (CCTV) has been running a series of segments for it which it conducted 3,500 man-on-the-street interviews in an attempt to measure the mainland’s “gross national happiness”.

Many have dismissed the series as superficial. CCTV reporters simply ask people whether they are happy and an overwhelming majority answer “yes”.

But the segments have not been without their enlightening moments, such as when a reporter pulled one interviewee out of a queue. “I am unhappy because when I answered your question, I lost my place in the queue,” the person said.

Professor Steve Tsang Yui-sang, director of the University of Nottingham’s China Policy Institute, said Beijing, if it were truly serious about reform, would appoint independent research institutes to survey main obstacles to happiness.

“It can cost as little as several hundred thousand yuan and would be much cheaper than CCTV’s street survey with some 70 camera crews,” Tsang said.”

via China authorities pushing happiness amid rising discontent | South China Morning Post.

05/11/2012

* Is English or Mandarin the language of the future?

BBC: “English has been the dominant global language for a century, but is it the language of the future? If Mandarin Chinese is to challenge English globally, then it first has to conquer its own backyard, South East Asia.

Mandarin-English dictionary

In Malaysia’s southernmost city of Johor Bahru, the desire to speak good English has driven some children to make a remarkable two-hour journey to school every day.

Nine-year-old Aw Yee Han hops on a yellow mini van at 04:30. His passport is tucked inside a small pouch hung around his neck.

This makes it easier for him to show it to immigration officials when he reaches the Malaysian border.

His school is located on the other side, in Singapore, where unlike in Malaysia, English is the main language.

It’s not your typical school run, but his mother, Shirley Chua thinks it’s worth it.

“Science and maths are all written in English so it’s essential for my son to be fluent in the language,” she says.

Continue reading the main story

Robert Lane Greene

Author of You Are What You Speak

The assumption that Mandarin will grow with China’s economic rise may be flawed. Consider Japan which, after spectacular post-war economic growth, became the world’s second-biggest economy. The Japanese language saw no comparable rise in power and prestige.

The same may prove true of Mandarin. The character-based writing system requires years of hard work for even native speakers to learn, and poses a formidable obstacle to foreigners. In Asia, where China’s influence is thousands of years old, this may pose less of a problem. But in the West, even dedicated students labour for years before they can confidently read a text of normal difficulty on a random topic.

Finally, many languages in Asia, Africa and the Amazon use “tones” (rising, falling, flat or dipping pitch contours) to distinguish different words. For speakers of tonal languages (like Vietnamese) learning the tones of Mandarin poses no particular difficulty. But speakers of non-tonal languages struggle to learn tones in adulthood – just ask any adult Mandarin-learner for their funniest story about using a word with the wrong tone.

An estimated 15,000 students from southern Johor state make the same bus journey across the border every day. It may seem like a drastic measure, but some parents don’t trust the education system in Malaysia – they worry that the value of English is declining in the country.

Since independence from the British in 1957, the country has phased out schools that teach in English. By the early 1980s, most students were learning in the national language of Malay.

As a result, analysts say Malaysian graduates became less employable in the IT sector.

“We’ve seen a drastic reduction in the standard of English in our country, not just among the students but I think among the teachers as well,” says political commentator Ong Kian Ming.

Those who believe that English is important for their children’s future either send their kids to expensive private schools or to Singapore, where the government has been credited as being far-sighted for adopting the language of its former colonial master.

Nearly three-quarters of the population in Singapore are ethnic Chinese but English is one of the national languages and very widely-spoken.

Many believe that this has helped the city state earn the title of being the easiest place to do business, by the World Bank.

Continue reading the main story

Lost in translation

Up to 7,000 different languages are estimated to be spoken around the world

Mandarin Chinese, English, Spanish, Hindi, Arabic, Bengali, Russian, Portuguese, Japanese, German and French are world’s most widely spoken languages, according to UNESCO

Languages are grouped into families that share a common ancestry

English is related to German and Dutch, and all are part of Indo-European family of languages

Also includes French, Spanish and Italian, which come from Latin

2,200 of the world’s languages can be found in Asia, while Europe has 260

Source: BBC Languages

Read more about languages of the world

However, the dominance of English is now being challenged by the rise of China in Singapore.

The Singapore Chinese Chamber Institute of Business has added Chinese classes for business use in recent years.

Students are being taught in Mandarin rather than the Hokkien dialect spoken by the older Chinese immigrants.

These courses have proved popular, ever since the government began providing subsidies for Singaporeans to learn Chinese in 2009 during the global financial crisis.

“The government pushed to provide them with an opportunity to upgrade themselves so as to prepare themselves for the economic upturn,” says chamber spokesperson Alwyn Chia.

Some businesses are already desperate for Chinese speakers.

Lee Han Shih, who runs a multimedia company, says English is becoming less important to him financially because he is taking western clients to do business in China.

“So obviously you need to learn English but you also need to know Chinese,” says Mr Lee.

As China’s economic power grows, Mr Lee believes that Mandarin will overtake English. In fact, he has already been seeing hints of this.

“The decline of the English language probably follows the decline of the US dollar.

“If the renminbi is becoming the next reserve currency then you have to learn Chinese.”

More and more, he says, places like Brazil and China are doing business in the renminbi, not the US dollar, so there is less of a need to use English.”

via BBC News – Is English or Mandarin the language of the future?.

29/10/2012

* Oh, what a sinking feeling: Toyota misfires with Chinese buyers

Although like other Japanese car makers, Toyota suffered recently due to the anti-Japanese protests and violence (eg burning of Japanese car showrooms), its woes are partly self-inflicted.

Reuters: “The roots of Toyota Motor Corp‘s China troubles run far deeper than the anti-Japan protests that have swept the country, stretching back to the 2008 launch of the Yaris subcompact — a spectacular flop with price-conscious Chinese buyers.

A visitor walks past a Toyota Motor Corp's car displayed behind a sign in both Chinese (L) and Japanese at the company's showroom in Tokyo in this October 18, 2012 file photo. REUTERS-Toru Hanai-Files

The car, a success elsewhere, was meant to help build brand loyalty and send Toyota hurtling towards a still-unattained goal of selling one million vehicles annually in the world’s largest auto market.

However the Yaris missed the mark with China’s traditional higher-end customers as well as its new emerging middle class.

To some company insiders and dealers it epitomizes all that does not appeal to the status-conscious, lacking what the Chinese call ‘daqi’ or ‘road presence’. Next to Nissan Motor Co Ltd’s pricier Tiida, for example, it feels small and lacks oomph.

But for frugal first-time buyers, the Yaris which is priced from 87,000 yuan ($13,900) was a non-starter, costing some 55 percent more than General Motor’s Chevy Sail and putting Toyota at a competitive disadvantage in a must-win market.

via Analysis: Oh, what a sinking feeling: Toyota misfires with Chinese buyers | Reuters.

29/10/2012

* Under Chinese, a Greek Port Thrives

If only this phenomenon can be replicated across Greece and other Euro PIGS (Portugal, Italy, Greece, Spain) countries …

New York Times: “The captain gazed from his elegant office overlooking this port on the Aegean Sea and smiled as towering cranes plucked container after container from a giant ship while robotic transport vehicles fanned out to transfer the cargo to smaller vessels bound for the Mediterranean.

The cargo volume here is three times the level it was two years ago, before the captain, Fu Cheng Qiu, was put in charge by his employer, Cosco, a global shipping giant owned by the Chinese government.

In a 2010 deal that put 500 million euros ($647 million) into the coffers of Greece’s cash-starved government, Cosco leased half of the port of Piraeus and quickly converted a business that had languished as a Greek state-run enterprise into a hotbed of productivity.

The other half of the port is still run by Greece. And the fact that its business lags behind Cosco’s is emblematic of the entrenched labor rules and relatively high wages — for those lucky enough to still have jobs — that have stifled the country’s economic growth.

“Everyone here knows that you must be hard-working,” said Captain Fu, under whose watch the Chinese-run side of the port has lured new clients, high-volume traffic and bigger ships.

In many ways, the top-to-bottom overhaul that Cosco is imposing on Piraeus is what Greece as a whole must aspire to if it is ever to restore competitiveness to its recession-sapped economy, make a dent in its 24 percent unemployment rate and avoid being dependent on its European neighbors for years to come.

As the Greek government contemplates shedding state-owned assets to help pay down staggering debts, it might be tempting to consider leasing or even selling the rest of the port to China. But if the Cosco example is representative, the trade-offs — mainly a sharp reduction in labor costs and job protection rules — might be ones many Greeks would be loath to accept.

“Unionized labor will push back to keep the protection it has enjoyed,” said Vassilis Antoniades, the chief executive of Boston Consulting Group in Greece. But the Cosco investment, he said, “shows that under private management, Greek companies can be globally competitive.”

Captain Fu, for his part, says Greece has much to learn from companies like his.

“The Chinese want to make money with work,” he said. In his view, too many Europeans have pursued a comfortable, protected existence since the end of World War II. “They wanted a good life, more holidays and less work,” he said. “And they spent money before they had it. Now they have many debts.”

Greece’s troika of foreign lenders — the International Monetary Fund, the European Central Bank and the European Commission — has made similar arguments. Among other things, they are urging Prime Minister Antonis Samaras to end blanket protections for workers and unions and to require Greece itself to operate more like a productive modern business.

Besides the $647 million that put half of the port of Piraeus into Chinese hands, the Greek government is receiving more income from taxes as a result of the port’s pickup in business.

Other than a handful of Chinese managers, moreover, Cosco’s operation is providing around 1,000 jobs to Greek workers — compared with the 800 or so who work the dock that is still under Greek management.

On Cosco’s portion of the port, cargo traffic has more than doubled over the last year, to 1.05 million containers. And while profit margins are still razor thin — $6.47 million last year on sales of $94.2 million — that is mainly because the Chinese company is putting a lot of its money back into the port.

Cosco is spending more than $388 million to modernize its dock to handle up to 3.7 million containers in the next year, which would make it one of the world’s 10 largest ports. Beyond that, workers are also laying the foundations for a second Cosco pier.

The Greek-run side of the port, which endured a series of debilitating worker strikes in the three years before Cosco came to town, has been forced by the Chinese competition to seek its own path to modernization. Still, only about a third of its business consists of cargo handling; the rest is made up of more lucrative passenger traffic.

For years, the container terminal was a profitable operation. But Harilaos N. Psaraftis, a professor of maritime transport at the School of Naval Architecture and Marine Engineering in Athens, said it was inefficient “because worker relations were very cumbersome.”

The salaries of some workers reached $181,000 a year with overtime; Cosco is typically paying less than $23,300. On the Greek side of the port, union rules required that nine people work a gantry crane; Cosco uses a crew of four.

“It was just crazy,” recalled Mr. Psaraftis, who was the chief executive of the port from 1996 to 2002. “I told them, ‘If you keep this up, this thing will be privatized.’ But they didn’t listen.”

Since Cosco arrived, “competition has forced us to take initiatives to find better ways of working,” said Stavros Hatzakos, the general director of Piraeus Port Authority, which runs the Greek operation. “Employees think twice about strikes and labor action now,” he said. And the ones still on the job have taken salary reductions as part of the across-the-board wage cuts of 20 percent or more that the government has placed on public employees.

On the other side of the chain-link fence that separates the Chinese and Greek operations, Captain Fu said he would love for Cosco to run all of Piraeus if the government put it up for sale. That expansion would cement Chinese dominance of one of the most strategic shipping gateways to Southern Europe and the Balkans.

Such a move, though, might meet stiff opposition from Greek unions and officials at the Piraeus Port Authority, who criticize Cosco’s approach to labor.”

28/10/2012

* Will ensure proper electricity supply: Power minister Jyotiraditya Scindia

Will the new minister be able to deliver? We shall see.

Times of India: “Newly appointed power minister Jyotiraditya Scindia today said that his priorities will be to ensure proper electricity supply in the country.

Scindia, a young Congress MP from Madhya Pradesh, has been appointed as minister of state (independent charge) for power.

“Priorities will be to ensure that there is proper electric supply. Both the government and private electric companies work in tandem for the united goal of country’s progress,” Scindia told PTI.

He takes over the reins of the Power Ministry at a time when the sector is grappling with acute fuel shortages besides environmental hurdles, which are also hurting electricity generation in the country.

“I will also try to ensure coordination with coal and environment ministries,” Scindia said.

“As the UPA government vision, I will try to make sure that the remote areas of the country gets power supply. I will try to ensure growth in the sector,” he noted.

via Will ensure proper electricity supply: Power minister Jyotiraditya Scindia – The Times of India.

See also: https://chindia-alert.org/2012/07/30/northern-india-hit-by-one-of-the-worst-power-breakdowns/

28/10/2012

* Protests Against Expansion of China Chemical Plant Turn Violent

The Chinese public are increasingly taking to the streets when environmental and other disturbing issues seem to be intractable. Initial police response is almost invariably violent. But, as has happened so often before, with social media and the internet and camera phones, it is becoming harder and harder for the authorities to assert their physical power as they used to. Not only do these incidents gain national coverage but, as this article shows, often they get international press as well. Something the central authorities do not welcome at all.

NY Times: “A week of protests against the planned expansion of a petrochemical plant in the port city of Ningbo turned violent on Friday and Saturday when demonstrators attacked police cars and tossed bricks and water bottles at officers, according to accounts from participants posted on the Internet.

The protesters, who witnesses said numbered in the thousands, were opposing the expansion of a state-run Sinopec plant, which is already one of the nation’s largest refineries. Local residents, citing environmental concerns, have been demanding that the government move the plant from Ningbo, a prosperous city of 3.4 million in Zhejiang Province, not far from Shanghai.

The clashes come at a delicate time for the government, as it prepares for a once-a-decade change in leadership that is scheduled to begin on Nov. 8 during a weeklong series of meetings in Beijing. Public concerns about industrial pollution have become a problem for the governing Communist Party, which often backs economic growth over public concerns about environmental degradation.

In recent years, educated urbanites have harnessed social media to stage street protests against the construction or expansion of factories, mines and refineries. Although such demonstrations are illegal and organizers face arrest, they sometimes have the desired effect.

In July, officials in Shifang, a city in China’s southwest Sichuan Province, canceled plans for a huge copper smelter after tens of thousands of residents joined protests that turned violent. In September 2011, a solar energy company in Jiaxing, near Shanghai, was closed after demonstrators cited noxious chemicals used in the manufacturing process. And in August of that year, officials in Dalian, in northeastern China, said a petrochemical plant would be closed and relocated after at least 12,000 people took to the streets.

In a statement, the Zhenhai district government condemned those it blamed for organizing sit-ins and blocking roads in Ningbo but insisted that public sentiment would be taken into consideration before the start of construction. “Detailed information will be published when environmental reviews are implemented, and public opinions on the project will be heeded,” the statement said.

Residents have expressed concern about the refinery’s production of ethylene and paraxylene, known as PX, a toxic petrochemical used in plastics, paints and cleaning solvents. The demonstrations, which began on Monday when 200 farmers blocked a road near the district government’s office, according to the state media, grew larger on Friday, reportedly after student organizers issued calls through social media outlets.

Photographs of the weekend demonstrations, many taken by cellphone, appeared to show riot police officers swinging batons as they chased protesters or beat those who had fallen to the ground. Censors worked quickly to delete images and witnesses’ accounts posted on Sina Weibo, China’s popular microblogging service. The Information Center for Human Rights and Democracy, an organization based in Hong Kong, said 10 people were injured after the police fired tear gas and moved to break up the protests, which took place in Tianyi Square in downtown Ningbo.

In a series of online posts on Saturday, Chen Yaojun, a local lawyer, described how the police had quickly tackled and dragged away protesters who dared to chant slogans. He said he, too, was arrested after he tried to protect a young student who was being beaten by the police. After he was dragged into a police van, Mr. Chen said, he talked to a young policeman who expressed regret for the rough handling of the protesters. “We have no choice,” the officer told him.”

via Protests Against Expansion of China Chemical Plant Turn Violent – NYTimes.com.

See also: 

28/10/2012

* Australia PM Julia Gillard outlines Asia manifesto

Australia faces the reality of the 21st Century. Others are bound to follow.

BBC: “Australian PM Julia Gillard has outlined a major foreign policy plan aimed at improving Asian ties.

A government white paper sets out 25 national objectives to be met by 2025, with targets ranging from improving trade links to teaching more Mandarin.

Mrs Gillard said she wanted to refocus Australia away from Europe’s “old countries” towards its near neighbours – particularly China and India.

The plan is detailed in a 312-page paper, Australia in the Asian Century.

With Asia on track to become home to most of the world’s middle class in the next 20 years, this was a moment in history to grasp, said Mrs Gillard during the release of the white paper at Sydney’s Lowy Institute.

“The scale and pace of Asia’s rise is staggering, and there are significant opportunities and challenges for all Australians,” she said.

“It is not enough to rely on luck – our future will be determined by the choices we make and how we engage with the region we live in.””

via BBC News – Australia PM Julia Gillard outlines Asia manifesto.

28/10/2012

* Top China official urges residency permit reform

Given that Chinese manufacturing is almost entirely dependent on migrant labour, it is about time the government recognised the rights of this segment of the population.

Reuters: “China’s top security official called on Friday for the government to relax the controversial residency permit, or hukou, system to ensure the army of migrant workers can enjoy better services like health care and housing.

Migrant labourers work at a demolished residential site in Shanghai October 18, 2012. REUTER/Aly Song

The 230 million-strong migrant workforce drives China’s economy, but a lack of access to education, health and other services tied to the country’s strict household registration system forces massive saving, restraining Beijing’s efforts to shift the focus of growth to consumption from investment.

It also causes social tensions, something the stability-obsessed ruling Communist Party is desperate to avoid.

In comments to a work meeting cited by the official Xinhua news agency, security tsar Zhou Yongkang said China should establish as soon as possible a new “national residence permit system” to improve services for migrant workers.

The system would cover help with employment, health care, housing, social security and education for migrant workers’ children, said Zhou, a member of the party’s decision making inner circle, the Standing Committee.”

via Top China official urges residency permit reform | Reuters.

24/10/2012

* Most Chinese cities are not coming clean on smog says survey

Another instance of the difference between public policy as dictated from Beijing and the lack of implementation by local authorities who have a different, and more selfish agenda.

See also: 

22/10/2012

* Maoist terror hits road development work in Sukma

Times of India: “Faced with overwhelming threat of Naxal terror, road development activities in the newly carved out district in tribal Bastar region of Chhattisgarh, has taken a hit.

Road construction work to the tune of an estimated Rs 350 crore are at a standstill in Sukma, located on the state’s southernmost tip and the tri-junction of Chhattisgarh, Orissa and Andhra Pradesh.

Many areas of the improvised Sukma district form part of the so-called liberated zone of ‘Dandakaranya’ of the Maoists where they are supposed to be running a parallel government and where there is virtually no presence of civil administration.

Sukma collector Alex Paul Menon’s abduction by the Maoists in April this year and his subsequent release has forced the authorities to tread with caution while taking up road development projects, resulting in Sukma almost becoming an approachless island and causing hardships to the tribals residing in remote areas.

Of the total 418 kilometers long roads in the district, only six roads-with a total length of 168 kilometres- are in a condition where vehicles can run.

These roads range from 12kms to 25kms.

Construction work of four other roads of a total length of 250kms have been thwarted due to Maoist threat, adversely affecting movement of vehicles in the area. Besides, there are many other small roads where taking up any development work is a far cry.”

via Maoist terror hits road development work in Sukma – The Times of India.

See also: https://chindia-alert.org/prognosis/indian-challenges/

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