Hong Kong and the Emperor… and Tohti

September 25, 2014

A pleasant, somewhat lazy, couple of weeks <working> in Hong Kong and Shenzhen. Sitting on a surprisingly pleasant Shenzhen beach this week I watched the Hong Kong tycoon fraternity make its school trip to Beijing. Led by Head Boy Li Ka-shing, it was a full court press. Senior prefects Lee Shau-kee and Robert Kuok kept good order, while the dim but dependable Tung Chee-hwa explained his love of games and recited a short Ode to the Celestial Throne before the assembled Chinese leadership. A tremendous time was had by all, with the boys remarking that carpet and decor quality in the Great Hall is now almost as good as at home.

On the street of course, things are not quite so happy.

While the sixth form of St. Swag’s was up in Beijing learning how all is well in Hong Kong as is, school kids in the Special Administrative Region are boycotting classes this week to protest China’s gerrymandering of the 2017 election arrangements. If you haven’t followed it, the game is that everyone in Hong Kong will get a vote (as promised in the Basic Law), but Beijing will choose the candidates (<two or three>). It is actually a step back from the current arrangements which at least allowed the election of Henry Tang to Chief Executive to be blocked, replaced instead by the ineffectual but more brain-functional CY Leung.

Hong Kong, though it is rarely stated, is now just like Taiwan. The Taiwanese call it <Three Thirds>. In Taiwan, one third is Deep Blue (older, KMT, pro mainland integration). One third is Deep Green (younger, Democratic Progressive Party, pro independence). One third is in the middle.

So too, with only modest variation, in Hong Kong. There is no explicit pro independence camp but the generational gap is just the same. Hong Kong, like Taiwan, has entered its 1960s. And in the 1960s students on campus get beaten, and even shot if you remember, in their fight for what is right.

If you care at all, it is time to do whatever you can to prevent violence from arriving. You might write to the Chinese. But if you are a gweilo, that is likely counter-productive. Better to write to the American and British consuls in Hong Kong (emails below), and to the British and American governments, urging them to stand up for the spirit as well as the letter of the Basic Law, and to be ready to grant visas to Hong Kong students who will get arrest records, even criminal convictions, for peacefully protesting Beijing’s behaviour. It does make a difference if you have a moment.

Meanwhile, the Emperor. At the same time it is gently screwing Hong Kong, the Xi Jinping government’s decision to give a life sentence to, and seize all the assets of, the leading, non-separatist voice of Uighur nationalism, Ilham Tohti, is surely the most horrible, colonial, racist act we have seen from China for a very long time. Obama may have a lot on the Middle East, but he needs to draw some lines in the sand in East Asia. There are still plenty of rational voices in China, like there were in 1920s Japan. But the longer this stuff goes on, the harder, I think, the negotiating process becomes. I do not want to read this blog entry in 10 years time and find that some very unpleasant historical analogies going through my head were justified.

Well, enough of the misery. Tomorrow I return to Hong Kong for dinner with dear Hemlock. Back when CY Leung was elected, Hemlock had a hard-on for him, said he was going to change stuff. Not so much on the democratisation front, which would have to occur through a degree of managed confrontation, but in terms of the godfather economy and all those stitch-up oligopolies in real estate and retail and the securities markets. You gotta love Hemlock, even if he’s not as funny as he used to be. It is so heartening that after all these decades, the old boy could still be an ingenue (accent missing). It is so strange that it should turn out that I am the cynical one.

tycoons in beijing 0914

Above: Can’t get a bigger photo. Running anti-clockwise from Xi Jin-ping on the right, looks to me like Tung, K.S., Lee Shau-kee, Robert Kuok, Henry Cheng (son of Cheng Yu-tung, now decrepit), Lui, possibly Michael Kadoorie, and finally David Li of Bank of East Asia.

Saint Swag’s. September 2014 School trip to Beijing. 6th Form boys attending.

(Parents please note: the wearing of non-school uniform items such flat caps is strictly against school policy, including on school trips. Lui Senior (Cuthberts), who has already been in trouble this term for playing cards in dorm, has been fined a week’s tuck and given leaf sweeping for his transgression. This sort of thing will not be tolerated at St. Swag’s.)

Cheung Kong (Holdings) chairman Li Ka-shing

Chairman of Kerry Group, Robert Kuok

Chief executive officer of Shangri-La Asia, Kuok Khoon Chen

PCCW chairman and younger son of Li Ka-shing, Richard Li Tzar-kai

K Wah Group chairman and Galaxy Entertainment Group founder Lui Che-woo

Henderson Land Development chairman Lee Shau-kee and his elder son Peter Lee Ka-kit

Sun Hung Kai Properties Alternate Director Adam Kwok Kai-fai

Bank of East Asia chairman David Li Kwok-po

New World Development chairman Henry Cheng Kar-shun

CLP Holdings chairman Michael Kadoorie

Sino Land chairman Robert Ng Chee Siong

Harilela Group vice-chairman Gary Harilela

Hang Lung Properties chairman Ronnie Chan Chichung

Shui On Land chairman Vincent Lo Hong-sui

MGM China’s co-chairman and daughter of casino mogul Stanley Ho Hung-sun, Pansy Ho Chiu-king

Ian Fok Chun-wan, son of the late Henry Fok Ying-tung

Wharf (Holdings) chairman Peter Woo Kwong-ching

Asia Financial Holdings chairman Robin Chan Yau-hing

Li & Fung honorary chairman Victor Fung Kwok-king

Lai Sun Development chairman Peter Lam Kin-ngok,

Oriental Press Group former chairman Ma Ching-kwan

Glorious Sun Enterprises chairman Yeung Chun-kam

Phoenix Satellite Television chairman Liu Changle

Swire Pacific director Ian Shiu Sai-cheung

Shimao Property Holdings founder and chairman Hui Wing-mau

China Grand Forestry Resources Group founder Ng Leung-ho

Goldlion Holdings deputy chairman Ricky Tsang Chi-ming

Novel Enterprises vice-chairman Ronald Chao Kee-young

HKR International managing director Victor Cha Mou-zing

Hongkong and Shanghai Banking Corporation chief executive officer Peter Wong Tung-shun

Prof Anna Pao Sohmen, daughter of late tycoon Pao Yue-kong

Far East Consortium International chairman David Chiu Tat-cheong

Shun Hing Group vice-chairman David Mong Tak-yeung

Galaxy Entertainment Group deputy chairman Francis Lui Yiu-tung

Dah Sing Life Assurance Company chairman David Wong Shou-yeh

Far East Holdings International chairman Deacon Chiu’s son, Duncan Chiu

Bank of China International Holdings deputy chief executive officer Tse Yung-hoi

Sing Tao News Corporation chairman Charles Ho Tsu-kwok

More:

UK Consul General to write to about standing up for the Basic Law, granting visas, etc is Caroline Wilson. [email protected]

US Consul General to write to about standing up for the Basic Law (an agreement lodged with the United Nations), granting visas, etc is Clifford Hart. [email protected]

Why foreigners do have a dog in any Hong Kong fight. Re-posted NYT oped.

Op-ed about the Hong Kong situation by former Chinese political prisoners in the Wall Street Journal.

Video stream of Hong Kong student protests this week.

On why allowing everyone to vote but restricting the candidates isn’t democracy, Georgetown professor Don Clarke offers this nicely phrased US 3rd Circuit decision in a corporate voting case from 1985. Here’s the actual law library link (Durkin v National Bank of Olyphant). Of course what the Chinese are doing is just what British colonial governments did, but let’s not go there.

<We rest our holding as well on the common sense notion that the unadorned right to cast a ballot in a contest for office, a vehicle for participatory decisionmaking and the exercise of choice, is meaningless without the right to participate in selecting the contestants. As the nominating process circumscribes the range of the choice to be made, it is a fundamental and outcome-determinative step in the election of officeholders. To allow for voting while maintaining a closed candidate selection process thus renders the former an empty exercise. This is as true in the corporate suffrage contest as it is in civic elections, where federal law recognizes that access to the candidate selection process is a component of constitutionally-mandated voting rights.>

On Tohti:

Teng Biao writes in The Guardian that the guy sent down for life actually deserves the Nobel. Here is the background.

Nicholas Bequelin writes in the NYT that the treatment of Tohti will radicalise more Uighurs. This is your key piece of analysis.

English translation of Chang Ping article trying to find logic in the treatment of Ilham Tohti. See also the translated extracts from Tohti’s statement after sentencing, below.

Ilham Tohti’s statement after sentencing in Chinese. Here are some heart-rending extracts in English:

<My outcries are for our people and, even more, for the future of China.

Before entering prison, I kept worrying I wouldn’t be able to deal with the harshness inside. I worried I would betray my conscience, career, friends and family. I made it!

The upcoming life in prison is not something I’ve experienced, but it will nonetheless become our life and my experience. I don’t know how long my life can go on. I have courage; I will not be as fragile as that. If you hear news that I mutilated or killed myself, you can be certain it is made-up.

After seeing the judgment against me, contrary to what people may think, I now think I have a more important duty to bear.

Even though I have departed, I still live in anticipation of the sun and the future. I am convinced that China will become better, and that the constitutional rights of the Uighur people will, one day, be honored.

Peace is a heavenly gift to the Uighur and Han people. Only peace and good will can create a common interest.

I wear my shackles twenty-four hours a day, and was only allowed physical exercise for three hours out of eight months. My cell mates are eight sentenced Han prisoners. These are fairly harsh conditions. However, I count myself fortunate when I look at what has happened to my students and other Uighurs accused of separatist crimes. I had my own Han lawyer whom I appointed to defend me, and my family was allowed to attend my trial. I was able to say what I wanted to say. I hope that, through my case, rule of law in Xinjiang can improve, even if it is only a baby step.

After yesterday’s sentencing, I slept better than I ever did in the eight months (of my detention.) I never realized I had this in me. The only thing is don’t tell my old mother what happened. Tell my family to tell her that it’s only a five-year sentence. Last night, in the cell next door Parhat [student of Tohti’s] slammed himself against the door and cried out loud. I heard the sound of shackles, nonstop, as they were taken to interrogations. Maybe my students have been sentenced too.

(To his wife): My love, for the sake of our children, please be strong and don’t cry! In a future not too far away, we will be in each other’s arms once more. Take care of yourself! Love, Ilham.>

Only in Chinese on Hong Kong:

Wen Wei Po, Beijing mouthpiece in Hong Kong, says that Hong Kong student organiser Joshua Wong has received training from <black hands> in the US navy. I understand there is lots of this stuff doing the rounds in the official press.

Update, 29 September:

Well, it’s game on after a weekend of student-led confrontations with the police. Parts of HK island (Admiralty, Causeway Bay) are at a standstill, but Central still functioning. Speculation that Xi Jinping is going to can CY Leung, try to buy off the student leaders with small gestures. A talk-first strategy worked well with both Tiananmen in 1989 and more recently with the Falunggong protests in Beijing. But once you have lulled protesters into a false sense of security in HK, it is not so easy to send in secret police to round up the organisers, let alone send in troops. This is a whole new ball game for the CPC…

Here are the early instructions from the Propaganda Dept to mainland media outlets about handling information on the Hong Kong protests, courtesy of China Digital Times:

<All websites must immediately clear away information about Hong Kong students violently assaulting the government and about “Occupy Central”. Promptly report any issues. Strictly manage interactive channels, and resolutely delete harmful information. This [directive] must be followed precisely. (September 28, 2014)

???????????????“??”????????????????????????????????????????????[Original text]>

At the end of this SCMP story on the protests is a 9-minute embedded video interview with student leader Joshua Wong (you will have to do some kind of registration to access this). It is well worth watching. Not only Beijing, but the HK tycoons, have a very serious young man on their hands.

28 September 2014

28 September 2014

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28 September 2014

28 September 2014

Cordon created by police around Tamar/Admiralty, keeping protests out of central for now. 28 September

Cordon created by police around Tamar/Admiralty, keeping protests out of central for now. 28 September

 

Parenting-mare

September 2, 2014

So here is the last blog post of the holiday season. Turn away now if you cannot cope with the f-word. 

What follows is a verbatim rendering of a conversation that took place last week in the car, driving down to the Isle of Wight. Me driving. Wife in the front. Three kids, 11, 9, 7, in the back.

9 year-old boy: ‘What does fuck mean?’

[pause]

Wife: ‘It’s very rude and you must never say it.’

9 year-old boy: ‘I know that. But what does it mean?’

[pause]

Me: ‘You’ll find out in Year 6 sex education.’

9 year-old boy: ‘But I don’t want to wait for Year 6. Tell me what it means now.’

Wife: ‘Look, I’ll talk to you about it later. We can’t do it now — daddy is driving and I have to do the directions.’

9 year-old boy: ‘Why can’t you just tell me what it means?’

[long pause] 

Worldly-wise 11 year-old sister, feeling very pleased with herself: ‘Look, It’s like a hug.’

[pause]

9 year-old boy, turning to 11 year-old sister: ‘Can I fuck you?’

7 year-old girl, turning to 11-year old sister: ‘I want to fuck you too.’

………………………………

More:

Here is a funny video I saw this summer, on how to assess the marriageability of women. It is funnier for me because my wife is called Tiffany. It is probably funnier for anyone when you have had a couple of drinks.

https://www.youtube.com/watch?v=hKWmFWRVLlU

Here is a funny song about learning Chinese (in Chinese, so skip it if you don’t speak any). In case you are wondering, it was done in Taipei. Can’t imagine something like this being done on the mainland.

 

Addendum:

Just now in the car…

9 year-old boy: ‘I know what fuck means.’

Me: ‘Oh yes?’

9 year-old boy: ‘It means sex.’

Wife: ‘How do you know that?’

9 year-old boy: ‘X and Y [friends at school] told me.’

[pause]

9 year-old boy: ‘But why can’t you say: “What fuck are you?”.’

 

Socialist rule of law

August 18, 2014

At one level I feel sorry for the Chinese Communist Party when people complain about its horrific record on the rule of law. The CCP has never promised what we understand by rule of law. It is only committed to ‘socialist rule of law’, which is why the Party calls it that. Socialist rule of law means that the interests of the Party — or what it thinks are its interests from day to day — come before everything else, including stuff like evidence and what the written law says.

If you followed the recent trial and conviction of private investigator Peter Humphrey in Shanghai, then Georgetown University law professor Don Clarke’s analysis of the court transcripts is well worth a read. Humphrey’s case was high-profile but essentially low level. It gives a good idea of what to expect if you are a gweilo who gets ensnared in China’s ongoing campaign to give multi-national companies (and anyone connected with them like Humphrey) a periodic kicking.

The standard features exhibited by the court proceedings are:

1. Expend most court time ‘proving’ facts that are not in dispute by either side. This makes the proceeding look like a legal case. (Even then, the case only took one day.)

2. Bend the law under which the case is being prosecuted into whatever shape you fancy. Here, Humphrey was prosecuted under a law designed to punish government and public sector workers for selling private information to which they have access. Humphrey was the recipient of such information. He has been prosecuted. The providers have not.

3. When passing sentence, don’t worry about sentencing precedents if you have a point to prove. Humphrey got 2.5 years for a relatively small number of transactions. As Clarke shows, in other recent cases in Shanghai other defendants got only suspended prison terms for massively greater infringements.

As typically happens in these cases, Humphrey made a grovelling public admission of ‘general’ guilt before the trial, almost certainly on the advice of his lawyer. The idea is that you will get leniency. I am not sure about this argument. The maximum term prescribed by law is 3 years. I would have preferred not to do the ‘confession’, stand up in court and point out the hypocrisy of the proceedings (in the politest possible terms) and take the extra 6 months.

Meanwhile, lest you feel sorry for gweilos, spare a thought for recently released human rights lawyer Gao Zhisheng. According to his wife, after his 3 years inside, he can’t even speak intelligibly any longer. Now that is your old-school socialist rule of law…

 

Gao Zhisheng’s wife wants him to seek treatment in US after ‘horrific torture’ in Chinese jail

Wife pleads with China to let her ‘underfed and psychologically abused’ husband travel to America to seek medical help and be with his family

PUBLISHED : Thursday, 14 August, 2014, 12:34pm
UPDATED : Thursday, 14 August, 2014, 12:40pm
Agence France-Presse in Washington

Chinese rights lawyer Gao Zhisheng suffered malnutrition and psychological abuse in prison, his wife said as she called for Beijing to let him seek treatment in the United States.

Gao, who has defended some of China’s most vulnerable people such as underground Christians, aggrieved miners and members of the banned Falungong spiritual movement, was released last week after serving a three-year prison sentence.

His wife, who fled with their two children to the US in 2009, said on Wednesday that she learned Gao had lost 22.5kg in weight after being fed only a slice of bread and cabbage each day.

Gao can no longer speak intelligibly after being deprived of any interaction with people and kept in a small cell with little light and no reading material or television, she said.

“I am completely devastated by what the Chinese government has done to my husband. The only thing I feared more than him being killed was his suffering relentless and horrific torture and being kept alive,” the wife, Geng He, said in a statement.

Gao remains under round-the-clock surveillance of Chinese authorities at his sister-in-law’s home in the western Xinjiang region, where he was imprisoned, according to Freedom Now, a rights group that is offering him free legal representation.

Saying that Gao has been prevented from seeing a doctor since his release, Geng urged the United States to press China to allow him to come to travel.

“If President Xi Jinping has any sense of decency or humanity, after crushing my husband both physically and psychologically, the least he could do is allow me as a devoted wife to care for him,” Geng said.

Despite Gao’s release, China still imprisons a number of high-profile critics including Liu Xiaobo, the writer and democracy advocate who won the Nobel Peace Prize.

Public-school boy rehouses Amazon tribe on half-term break, gets Oxbridge place

August 17, 2014

Will Hutton drones on a bit sometimes, but it is hard to disagree with this analysis of Britain’s education system, published in Sunday’s Observer. Hutton recommends action against those who buy themselves out of society through private education. It is necessary not just for moral, but for economic reasons. However I reckon it will take another 20 years — if we are lucky. 

 

Hutton:

Believe the hype and Britain is on the verge of a great levelling. Of course it is good news to learn that 1,400 more students from disadvantaged homes will be going to university this year than last. But it is hardly the end of the class divide, as some reports have claimed; 1,400 represents a drop in the ocean compared to the hundreds of thousands from more advantaged homes. The gulf in expectation and life chances between rich and poor remains enormous.

In fact, given the expensive and comprehensive efforts that go into promoting access, anything less than that figure would have been disappointing, even disastrous. Any university that wants to charge more than the basic fee of £6,000 for full-time study or £4,500 for part-time study (which is every one of Britain’s universities) has to sign an access agreement with the Office for Fair Access (OFFA). The university sets out as a quid pro quo detailed plans about the promotion of access. There has been an avalanche of initiatives.

It could be summer schools – the Sutton Trust alone offered summer schools for 1,900 disadvantaged students this summer, joining with 10 universities as part of their access agreements. Or it could be rebates from fees. Every part of the higher education system is keenly aware that it has to do more to attract students from disadvantaged homes (and I write as principal of Hertford College, Oxford). They are aware, too, that Offa is getting increasingly tough about its access agreements. Moreover, they desperately want more disadvantaged students as a matter of principle. An open-minded visitor from Mars might ask, given all this effort over so many years, why has the return been so paltry?

The Independent Commission on Fees (which I chair) closely analysed recent data in a report published last week. From 2010 to 2013, the numbers of students from the most disadvantaged backgrounds attending the 13 most selective universities increased by 9%. For the 30 most selective universities, this figure was 12%. Good news. But the numbers entering from the most advantaged backgrounds also increased over the same period – up by 5% and 14% for the top 13 and 30 universities respectively. So there has been a slight narrowing of the entry gap at the most selective universities from 2010 to 2013, but it remains extremely large.

In raw numbers, in 2013, 11,695 students from the most advantaged backgrounds entered the top 13 universities, but only 1,232 from the most disadvantaged backgrounds, an almost tenfold difference. The ratio drops to just over seven times for the 30 most selective universities. For the entire university sector, the difference in 2013 stood at 2.8. You can bet that very few of the 1,400 more students going to university from disadvantaged homes will be going to the top 13 universities.

This matters. There is growing concern that too much of Britain’s elite sport is occupied by athletes educated at private schools: for example, 41 % of the medals won at the 2012 Olympics went to the privately educated. We know that sporting talent will be randomly distributed among the 700,000 babies born every year. Yet the British system ensures that it will be those lucky enough to be born into households rich enough to educate them privately that will have the best chance to lift their natural sporting ability to Olympic standards. By any moral code, this is not fair, but beyond morality this is a huge squandering of talent.

The same is true of intellectual and academic ability. The Sutton Trust reports that four private schools and one sixth form college in Cambridge send as many students to Oxbridge as nearly 2,000 state schools. Are we to believe that native academic ability is uniquely concentrated in the children of parents rich enough to afford to pay the fees (or live in the catchment area of Hills Road sixth form college, Cambridge)? The differences even come through in personal statements accompanying university applications: 70% of students from private schools with the same grades are generally admitted to top universities compared to 50% from state schools. The key difference is personal statements, testifying to vast differences in cultural capital and experience. Manchester University’s Steven Jones, for example, observes the different impression conveyed by accounts of work experience that involve a Saturday job or a school visit to a business, on the one hand, with a personal statement that cites work with a local radio station, with a City law firm or a designer, on the other.

What is to be done? One of the worries about the £9k fee regime was that it would deter applications overall, disproportionately affecting disadvantaged students. It has certainly devastated part-time higher education – there are now, incredibly, 100,000 fewer candidates studying this way, traditionally a popular choice for those from moderate- and low-income homes. Mature student numbers are also well down. But application rates from 18-year-olds for full-time education to English, Welsh and Northern Irish universities are all up on 2010.

Part of the reason is the recognition of the value of higher education, part is the state of the jobs market for 18-year-olds with wages falling. But also in play might be some reservation about taking on so much debt. For some 18-year-olds, repayment even of tens of thousands of pounds can seem very distant – in a far-off world of adulthood after university when, in any case, your earnings have to be above £21k to start paying. But, equally, for others, the prospect of a chunk of debt might be offputting. Distant prospect or not, less debt is plainly better than more.

One obvious way of persuading more kids from poorer homes to apply would be to universalise the patchwork quilt of access agreement rebates into a standard lower fee for disadvantaged applicants. .

So a skewed fee regime would help, but the reality is that differential university applications reflect the desperately unequal society Britain has become – and also reflect the ongoing offence to any system of morality presented by such widespread private education.

We should open up private schools, invest disproportionately in state schools in weaker neighbourhoods and pay teachers as proper professionals. But above all we should be mobilising against inequality in all its manifestations – in housing, jobs, wages, access to the internet, sport and culture. There is no future for Britain other than as a smart society, and the more our people are enfranchised, the smarter we will be. Universities can, and will, play their part, but they can’t solve society-wide failures by themselves.

5,000 years…

August 10, 2014

 

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After three weeks here, I stand by the assertion that Taipei is the world’s most interesting and liveable Chinese city. However it would be wrong to suggest that Taipei’s free society, strong sense of community, respect for other people, good manners and superb food are not undergirded by the fundamental and immutable laws of a deeper Chinese culture, the one with 5,000 years of continuous history.

The quotidian evidence of this is surely the piety shown for small dogs, as demanded by the Analects of Confucius  (‘Exemplary persons would feel shame if their small dogs were not well-dressed, or their perambulators not in working order.’) The mainland has begun to rediscover its ancient respect for small pooches in recent years, but Taipei reveals how far there is still to go. Here, pooches are properly dressed in dresses, vests and nappies, and wheeled around in high-end canine perambulators purchased from designer doggy shops that can be found on almost every street.

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I have been told that the real reason why the tomb of Qinshihuangdi at Xi’an — close by the terracotta warriors — has never been opened is that this would disturb the souls of 8888 Celestial Poodles who were buried with the first emperor. All the stuff about mercury poisoning is a red herring.

 

 

 

Tribute in the bag

August 8, 2014

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Thailand’s latest junta, the National Council for Peace and Order (aka National Council for Underdevelopment as Usual), has confirmed it is committing to a US$23 billion high-speed rail investment. Beyond this I can find very few concrete details. But the expectation is that much of the construction work, as well as the rolling stock, signalling equipment, and even quite basic industrial inputs will be supplied by China. Late last year, before the junta got rid of Thaksin’s little sister, Chinese premier  Li Keqiang was down in Bangkok doing the hard sell. When the junta boys grabbed the reins of power they made a show of putting the deal that was then shaping up on hold. But a few months later it is back in play, albeit possibly with some cuts to the project specification suggested by this Bangkok Post article (see the references to lower speed services).

Although we know nothing of the Chinese financing terms, it looks like the Celestial Empire has done an effective number on its traditional south-east Asian tribute states. First they leaned on the Laotians, the poorest and most biddable group, to agree to the first leg from Kunming through their territory. Now they have the Thais in the bag. Officially, the Malaysians say high speed rail is too expensive for them. But my guess is that the Malaysian government will fold once construction starts on the Kunming to Bangkok legs and sign a deal. The Chinese an easily twist their arms by threatening to buy their palm oil and gas somewhere else. (When I saw Mahathir late last year in KL he told me that he personally he is already in favour of a Chinese high-speed deal, so Beijing has one still-loud voice singing its song already.)

Who is all this investment good news for? It is good news for China’s rail equipment and rail construction firms, into which Beijing has sunk vast sums in order to master high-speed rail technology. And it is good news for bourgeois types like myself, who want fast, clean travel between their preferred Nanyang beaches and mountain retreats and the panda lairs of south-west China.

But we shouldn’t pretend it is good news for south-east Asian economic development. By the time there is a high-speed link all the way from Kunming to Singapore — which could now easily be completed within 10 years — the projects will have cost at least US$60 billion in today’s money. That expenditure will have done almost nothing to increase south-east Asia’s grasp of manufacturing technology, or even its project management capacity, because all the value-added goes to China. At a time when south-east Asia desperately needs to increase manufacturing employment to provide jobs for countries’ young populations, the China high-speed rail deals instead reveal the developmental bankruptcy of regional politicians. Their only strategy in addition to being a proto-colonial resource base for China, is to become a tourist destination for a new Chinese middle class.

 

More

This from Geoff Wade at the Australian Strategic Policy Institute, though I am not convinced all the numbers quoted are accurate.

What is not to like?

July 31, 2014

Summer in Taiwan. I came out two weeks ago with two kids and flew on to Penghu — the ‘Pescadore’ islands between Taiwan and China. Fortunately not on the flight that crashed that week. Clean air, clean beaches, and a diet of oysters and the odd beer.imageimageimage

Then we moved back to Taipei. Fantastic public transport, reasonably priced Chinese language summer camp, sitting in the hot springs at Beitou with a bunch of old boys and girls with flannels on their heads, wandering through night markets and shooting balloons with air pistols, chewing the fat with thoughtful, relaxed, helpful people. Chinese people at ease with themselves. Imagine that!

They tell me they lost the development race with Korea. Not really, I say. You lost the economic development race. But you won the overall development race. In Seoul they are all pissed out of their heads from Monday till Sunday, working 50 hours a week. Here, people are drinking fresh fruit juice and iced tea, eating the best food in east Asia, going to the temple or church, planning a holiday in Laos or Myanmar (it is striking how many people are wholly uninterested in visiting the mainland), reading a good book.

To be sure, I exaggerate for effect. But I honestly suspect that Taiwan is presently the most liveable place in east Asia. The parks, the public pools, the transport system, the schools all work in the general interest. Taipei retains the architectural charm of Tokyo because there are narrow streets but little high-rise construction, but it is more interesting because the Chinese are always up to something. It’s individuality with social responsibility. The losers are males of working age who are compelled to go to the mainland for work. But everyone else is here having a nice time. And there are pleasantly few gweilos of the irritating sort, because they have moved to China, or else stayed in Hong Kong or Singapore in order to better pool their wisdom and thereby earn their clients less money than the market index pays.

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Thinking back to Indonesia and Jokowi, if he wants to see what a manufacturing-plus-infrastructure strategy could do for his country, he should pop up here before he assumes the presidency. This is south-east Asia with dignity, built by small-time manufacturers like Jokowi. The Vietnamese, who are the only south-east Asian state on track to replicate this model, might also come over to remind themselves of the future. It ain’t too shabby.

Jokowi, thankfully

July 27, 2014

This week’s confirmation that Jokowi won the Indonesian presidential election is a relief. The alternative was an administration under Prabowo and his band of western-educated, elitist carpet-baggers.

Indonesia avoided the negative outcome. But it cannot be said that Jokowi guarantees a fundamental change of direction, as many foreign journalists would like to believe. Jokowi is beholden to the PDI-Struggle party of Sukarno’s daughter Megawati, and to the network of Vice President Jusuf Kalla, themselves different stripes of the Indonesian establishment.

Nor does Jokowi have a policy agenda. He stood as an ordinary person who is not corrupt. But a government that rules relatively cleanly and a little more efficiently will be nothing more than a reprise of SBY’s first term, before the ex-general’s team was consumed by corruption-as-usual.

The real game changer in Indonesia would be a manufacturing strategy that creates more semi-skilled employment opportunities and develops indigenous technological skills. An infrastructure build-out would complement this by creating demand for domestically-manufactured inputs. But such a policy shift is probably too much to expect. Since the Asian crisis and IMF intervention Indonesia has settled on a consumer-focused banking system and a proto-colonial raw material export economy. There are lots of vested interests that surround this arrangement. It would be a very big surprise if Jokowi were to upset the IMF’s apple cart.

Choosing poverty

July 2, 2014

Egypt’s General el-Sisi is retaining Tony Blair to advise on economic development. The bill will be picked up by offshore financial centre, the United Arab Emirates. A supporting act will be played by what used to be called Booz and Co., now comically rebranded as Strategy&.

The failure of the Arab Spring in Egypt is complete. Get ready for more poverty, more underdevelopment, and a few multinational companies picking off choice contracts. And then, of course, there is the continuing terrorism that all this implies.

If General el-Sisi wants a book by a general about the basics of effective economic development, he can get a copy of Park Chung Hee’s Our Nation’s Path, and preferably The Country, the Revolution, and I as well, from a decent second-hand bookseller. Indeed there is/was a tattered copy of both, plus Collected Speeches, here for US$33.

On reading these slim but cogent volumes, General el-Sisi would realise the first thing he needed to do was to get rid of Blair, the UAE and Strategy&. Ideally, he’d let Blair come over and then lock him away, thus protecting the rest of the Middle East.

But of course el-Sisi will do no such thing because he’s not in the business of developing the Egyptian economy. He’s in the business of Egyptian business as usual, and killing to that end. Tony’s advice on the Mayfair property market may well be useful.

But mind the bomb.

No, no, no

July 1, 2014

The Guardian, which has reported Sollecito-Knox pretty well, falls asleep on the job. Sorry to those who don’t give a damn about Italy, but this complaint to the readers’ editor explains:

I ask you to take a  look at the 1 July Guardian story (no byline) about the appeal of Raffaele Sollecito. It asserts (par 4) that Knox and Sollecito have previously always had a ‘rigidly joint defence’. This is 180 degrees from the truth. Part of the reason for the original conviction was that they did not have a rigidly joint defence. If Sollecito’s pending appeal implies the possibility of Knox’s guilt as part of his defence, it will in fact be consistent with the line his lawyers have pursued in the past.

If you link to my blog entries on this subject and scroll down to September 19 2012, you will find a germane entry which references, among other things, much more accurate reporting by your own paper.
I am not sure if you have just picked up an agency report here, but a court case carrying a life sentence deserves better treatment.