Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts

Making It A Habit

There are a few things that I do on a regular basis. Blogging is obviously not one of them. But I've promised myself many times to do at least a post per week. There were times when I wouldn't have anything to say and it's better I didn't update with a empty post that reads like a Facebook comment. And there were times when I was tightly occupied that I just wanted to close my eyes when I had a free minute. And I don't want too many quote-posts punctuating my page making my blog a link festival. (I thought I'll move them to Twitter but I haven't been active there. I tried podcasting and after an edition the stars aren't aligned to favor the next one).

The fact is that after a few busy weeks, where I didn't have an opportunity to post, when my calendar eventually started giving me blank stares I had eased myself very well into a non-blogging state that I was okay with sitcoms, documentaries and reading. I don't treat writing lightly. In fact it's one of my means of thinking. Even if I'm reading Wired, to be not able to express my ideas and reactions to the article is to wallow in lethargy - because when I sit down to write my ability to critique is put on spotlight; whereas if I don't write (or get into a discussion) I'm just a passive consumer of news & opinions. Here, allow me to smash my slump.

*

China is the new bully in the block. We have G7, the UN Security Council, BRIC, etc. But the two countries that mean a lot - both economically and militarily are the U.S and China. And China's behavior these days, either in Copenhagen on climate talks or arms sales to Taiwan or Obama meeting the Dalai Lama or refusing to revalue their currency to cushion trade imbalances or addressing human rights in their own back yard - is to give a symbolic middle finger to the U.S.

China's huge surpluses are contributed by the manufacturing sector, not the knowledge processing industry. There are many well thought out arguments on the web about how curtailing the power of web to their citizens could be disastrous for China's ambitions to become an economic giant. Well, this can be treated as a domestic affair. But its business deals with countries that aren't stable or repressive or politically against the U.S or all of these is worrisome: China's arms deal with Sri Lanka in their recent war on LTTE (should I say Tamils?), oil deal with Venezuela thereby propping the ridiculous Hugo Chavez, oil deal in Sudan filling Khartoum's coffers to kill more Darfuri women, not imposing sanctions on Iran as a member of UN council fearing a spike in oil prices.. going back to their reactionary help to Pakistan with nuclear technology in order to maintain their geopolitical supremacy.

For all its high-rises and solar-powered technologies and bullet trains and great malls there's not much to life if there isn't freedom. In spite of all its shortcomings India has a sense of humor, the press is free, they talk about politicians and the politicians talk back (sometimes with a stick), there are riots against the government, guys watch porn in the comfort of their room and some couples have 4 kids. When it comes to freedom the U.S is even better - I'll just say that late night comedians poke at presidents all the time and one fine day they step into the comedian's studio as a guest for a chat and a jab. Can you imagine the Chinese Premier sitting down for a cup of tea with a Chinese Leno?

China's Respect for Intellectual Property

An NYT report on WTO's ruling that China had violated international free trade rules by limiting imports:
Ron Kirk, the United States trade representative, praised the panel’s legal finding. “This decision promises to level the playing field for American companies working to distribute high-quality entertainment products in China,” Mr. Kirk said, “so that legitimate American products can get to market and beat out the pirates.”
Mr.Kirk knows pretty well that this is just a baby step of a diplomatic pressure. When Harry Potter books and DVDs are available for less than 1/10th of the marked price, only the insane and the high-on-ethical-pedestal will be paying a visit to the original showrooms. The U.S producers have long whined at the possibility of missing the huge Chinese boat and have constantly engaged in soft nudging since the Clinton days. You can't blame the Americans - when they're the Chinese's largest consumer, the U.S fiction writers and movie producers and software coders and chip manufacturers expect the potential Chinese consumer to return the favor.
Respect for intellectual property is not big in developing countries. The general public wants to enjoy the fruits at a much cheaper cost. There's an Asian edition by the original publisher for a lot of products which are quite less than what their western counterparts pay. But that pales in comparison to the bootlegged version available at the mom & pop store. In countries like India where law enforcement itself is weak, one can't do much but whine. But China has an iron grip on what its subjects can see and buy and can effectively enforce what should and should not be available for consumption. Their current lax ethics seems like an open policy of negligence to what the west has got to say.
China's stronghold is manufacturing and it's not easy to pirate and make them take a plunge. Of course you can manufacture a lesser quality shirt or a cheaper toy, but obviously it doesn't make business sense to 'copy'. Where as most of the western economies' export revenue is knowledge based which can be duplicated with relative ease and hence made money or gotten free. For China to take this issue seriously most of state's revenue should be earned through companies and institutions that are knowledge based. When the treasury coffers aren't getting filled because of shady deals under the tree, the police will wield its baton.
And China is morphing itself away from manufacturing. There are English classes held in football stadiums. It is luring Americans who can't find a job because of the recession. With trillions in foreign reserves, they have started to invest substantially in R&D and communication technologies. They just executed a mass transfer of their population from lower class to middle class by taking advantage of the rapid globalization; even the recession has not bitten them hard - in fact their stimulus package is touted by economists to be the most effective. The government has stepped up investments in sceince and technology studies & firms.

But their opaque bureaucracy has its drawbacks. The state recently instituted a policy where every computer bought will come with a software installed that's supposedly designed to filter 'inappropriate content'. Not just pornography (what's wrong with that?) but any foreign site that riles the Chinese action & policies. Youtube and blog sites are banned on whims and fancies. The press is not free; the judiciary has its limits; one needs permission from the local authorities for a peace protest march. Add to this other social problems like the imbalance in male/female ratio because of their one-child policy (which obviously leans towards a male progeny) and an educated middle-class that has been clamoring for more information and freedom.

China has had and will have a hard time trying to transform its huge young population into knowledge force and at the same time checking their tweets and facebook status (figuratively speaking). If the state loosens its hold and unleashes the power of cooperation in every sense, I believe they'll command a bigger piece of 'services & innovation' pie. Until that happens, their markets (not so black, they're quite open in the streets) will continue to support pirates. Of course, there will always be some sort of violation - copiers, scanners, video tools will be put to use. But it wouldn't as flagrant as it is today.