Climate change doesn't let up. Four blizzards hit the East Coast of the United States one after another this winter, and, on the West Coast, mudslides followed the fires that burnt away the trees anchoring soil. People on Caribbean islands, like Haiti, recovered from one hurricane only to be struck by drought and then the wind and torrential rain of another hurricane.
Knowing a hurricane's devastation, or that of a war, and the effort and money needed to repair damage provides motivation for preventive measures. Immense benefit can be gained, if, for example, planting trees goes hand in hand with development, such as China has planned in its One Belt One road Initiative. Consider the benefits of tree projects in Haiti.
A farmer in Haiti, who already had fields planted in potatoes and beans, was working to increase his income by diversifying, when a hurricane hit. His four goats, unable to bear the wind and rain, died of heart attacks. All his potatoes were lost along with at least 80% of his bean crop and what was left of the trees that had been cut down for fuel.
Restoration of trees became a high priority, since they were needed to improve air quality, to stabilize hillsides from washing down over farms, and to provide avocado, mango, and papaya trees for food and income. Fast growing native oaks were needed to provide charcoal for cooking, and cedars and pines were a source of raw material for construction. Reforestation by the Plant With Purpose group's "Cash for Work" program gave immediate income to 2,000 employees.
Long term, a variety of religious groups, the Arbor Day Foundation, and agronomy teams in Haiti have set up nurseries that now plant as many as 60,000 trees per year. Agronomy teams "get down and dirty" with local farmers to start income-producing fruit and other tree nurseries shaded by palm fronds propped up by sticks, to start tree plants in discarded broken buckets, and to employ procedures, such as drip irrigation, composting, and grafting citrus trees. As a result of student hikes to the forests on once barren mountains, from an early age, young people gain an appreciation for their country and learn to value and help plant trees.
Friday, March 30, 2018
Tuesday, March 27, 2018
Necessity: Introduce Students to New Technologies
Bill Gates at age 13 in 1969 got his start using a computer for the first time at General Electric, reports Malcolm Gladwell in his book, Outliers.
The New Story a non-profit organization, with the help of Icon construction, was using 3D printers to create the houses rolling off an assembly line in 2018. Designers on the "Project Runway" TV show used 3D printers to create their own fabric designs the previous year.
To get a head start in life, students need access, not only to 3D printers, but also to virtual reality, holography, robotics, green screens, solar panels, and every other new technology. Whether one advanced technology teacher and a sample are allocated to each school or a teacher and sample travel around a school district, the objective is to give students hands-on exposure to the fields of the future.
The school that wins a contest to name a robot could get the first one. You can imagine how excited students would be about coming to school every day, if a robot greeted them saying, "Good morning, I have a riddle for you...." Pick the toughest kid in the school to escort the robot and make sure no one harms it. The kid might transform into a new Bill Gates.
Kids will devise all sorts of ways to use virtual reality to illustrate original fantasy stories and to view wonders of the world and rare animals. There must be ways to use holography to resurrect historical characters and to use green screens to produce special effects for the school play.
What might kids heat or power with solar panels?
The New Story a non-profit organization, with the help of Icon construction, was using 3D printers to create the houses rolling off an assembly line in 2018. Designers on the "Project Runway" TV show used 3D printers to create their own fabric designs the previous year.
To get a head start in life, students need access, not only to 3D printers, but also to virtual reality, holography, robotics, green screens, solar panels, and every other new technology. Whether one advanced technology teacher and a sample are allocated to each school or a teacher and sample travel around a school district, the objective is to give students hands-on exposure to the fields of the future.
The school that wins a contest to name a robot could get the first one. You can imagine how excited students would be about coming to school every day, if a robot greeted them saying, "Good morning, I have a riddle for you...." Pick the toughest kid in the school to escort the robot and make sure no one harms it. The kid might transform into a new Bill Gates.
Kids will devise all sorts of ways to use virtual reality to illustrate original fantasy stories and to view wonders of the world and rare animals. There must be ways to use holography to resurrect historical characters and to use green screens to produce special effects for the school play.
What might kids heat or power with solar panels?
Sunday, March 25, 2018
Students Share Foreign Experiences without Leaving Home
A mother in India, who only completed the 7th grade, said her daughter and son were in school, because she could embroider pillows to make money to send them to elementary school. How different that is, I thought, from most of the mothers in the United States who are well educated and do not have to pay to send their children to school. Yet, their children probably have similar experiences learning to read, to add and subtract, and to join playmates in games at recess.
In the picture book, Mirror, by Jeanne Baker, city boys in Australia and farm boys in Morocco learn their lives are both similar and different. The earlier post, "Getting to Know You," tells how "Arthur," on his PBS show, learned a boy in Turkey did not live in a tent and ride to school on a camel. They both did a lot of the same things.
It would be interesting and fun to ask students of all ages to describe the lives of children in France and China. How do they dress? What do they eat? How do they get to school? What games do they play? Then, it would be a challenge to find out if their ideas were correct. One resource that might help is epals.com.
Once teachers sign up on epals.com, they can select countries, the ages of interested students from 3 to 19, what language to use, and even the size of classes. Their students can connect with classrooms in other countries to work on shared projects and begin pen pal exchanges.
Contacts with foreign students prevent mistakes like a student of mine once made, when she asked a student from South Africa, if she had ever used a computer.
In the picture book, Mirror, by Jeanne Baker, city boys in Australia and farm boys in Morocco learn their lives are both similar and different. The earlier post, "Getting to Know You," tells how "Arthur," on his PBS show, learned a boy in Turkey did not live in a tent and ride to school on a camel. They both did a lot of the same things.
It would be interesting and fun to ask students of all ages to describe the lives of children in France and China. How do they dress? What do they eat? How do they get to school? What games do they play? Then, it would be a challenge to find out if their ideas were correct. One resource that might help is epals.com.
Once teachers sign up on epals.com, they can select countries, the ages of interested students from 3 to 19, what language to use, and even the size of classes. Their students can connect with classrooms in other countries to work on shared projects and begin pen pal exchanges.
Contacts with foreign students prevent mistakes like a student of mine once made, when she asked a student from South Africa, if she had ever used a computer.
Wednesday, March 21, 2018
Fools Aren't the Only Ones Who Soon Part with Their Money
Money is part of our lives from morning to night and, if we are earning interest, even while we sleep, writes John Hope Bryant in his book, The Memo: Five Rules for Your Economic Liberation. All the things and services in our lives cost money, and we don't have any control over the prices charged for everything we need and use.
But, you say, we do control what things and services we choose to buy. After examining human behavior, Nobel-prize-winning economist Richard H. Thaler challenges that idea. What Thaler has to say in Nudge, the book he co-authored with Cass R. Sunstein, expands on the financial literacy both he and Bryant see as a valuable foundation for happiness in every child, woman, and man in the world.
Financial literacy, like literacy itself, can begin at an early age, when a child learns it's dumb to take two quarters for one dollar. Thaler also used a Halloween trick-or-treater example to show how the investment choices people are given can affect their decisions. If children were to visit two adjacent homes that both offered Three Musketeer and Milky Way candy bars on Halloween, each child might select a different bar at each home. In another situation, if these children could visit only one home that offered the same two different bars and were allowed to each select two bars, they might choose two of the kind they liked best. What would happen if investors were given a choice of putting their retirement money in a fund composed of all stocks and one composed of all, more conservative and less risky, bonds? Most would split their funds half and half, just like the children visiting two homes. Another group of investors could put their money in an all-stock fund and a "balanced" fund that was invested half in stocks and half in bonds. Although they split their money half and half, their retirement depended on the performance of 3/4 stocks, more like the result of the children who took two of the same kind of candy bars.
Thaler cautions everyone about human failings. He cites a distinction between rapid, instinctive automatic thinking and reflective, rational thinking and presents a problem to demonstrate.
A bat and ball cost $1.10 in total. The bat costs $1.00 more than the ball. How much does the ball cost?
Cost of ball = x
Cost of bat = $1.00 + x
Cost of ball and bat = $1.10
x + $1.00 + x = $1.10
2x = $1.10 - $1.00
2x = .10
x = .05 NOT .10
In Nudge, Thaler suggests the world could design slight nudges that, like a friend, could help our automatic thoughts make better choices and avoid the bad ones. Students would see the fruit and yogurt before the cookies and ice cream in the school lunch line. Best choices would be the default options offered by manufacturers, insurers, sales people, mortgage brokers, and credit card companies. But Thaler knows our best interests are not everyone's objectives. Reflective, rational thinking really needs to come into play, when there are many options and/or humans have little experience, poor information, and delayed or infrequent feedback about mistakes or success. Firms have a great incentive to cater to irrational beliefs. Suggesting everyone is doing something, like paying for a warranty on a small appliance, can provide a kind of peer pressure. The financial aid staff at colleges and doctors, for example, may be receiving gifts to recommend certain private lenders and expensive new drugs.
Humans tend to cling to the status quo, the monetary decisions they have made in the past, such as buying a new bathing suit every year even if they rarely go swimming. If we choose the TV show we want to watch on NBC at 7 pm, we'll be watching NBC shows until we go to bed. If our first vote for President was a Republican candidate, we may never change political parties. Thaler suggests, "Sometimes it's good to learn what people unlike us like....If you're a Democrat,...you might want to see what Republicans think; no party can possibly have a monopoly on wisdom." He also recommends diversifying investment portfolios.
But, you say, we do control what things and services we choose to buy. After examining human behavior, Nobel-prize-winning economist Richard H. Thaler challenges that idea. What Thaler has to say in Nudge, the book he co-authored with Cass R. Sunstein, expands on the financial literacy both he and Bryant see as a valuable foundation for happiness in every child, woman, and man in the world.
Financial literacy, like literacy itself, can begin at an early age, when a child learns it's dumb to take two quarters for one dollar. Thaler also used a Halloween trick-or-treater example to show how the investment choices people are given can affect their decisions. If children were to visit two adjacent homes that both offered Three Musketeer and Milky Way candy bars on Halloween, each child might select a different bar at each home. In another situation, if these children could visit only one home that offered the same two different bars and were allowed to each select two bars, they might choose two of the kind they liked best. What would happen if investors were given a choice of putting their retirement money in a fund composed of all stocks and one composed of all, more conservative and less risky, bonds? Most would split their funds half and half, just like the children visiting two homes. Another group of investors could put their money in an all-stock fund and a "balanced" fund that was invested half in stocks and half in bonds. Although they split their money half and half, their retirement depended on the performance of 3/4 stocks, more like the result of the children who took two of the same kind of candy bars.
Thaler cautions everyone about human failings. He cites a distinction between rapid, instinctive automatic thinking and reflective, rational thinking and presents a problem to demonstrate.
A bat and ball cost $1.10 in total. The bat costs $1.00 more than the ball. How much does the ball cost?
Cost of ball = x
Cost of bat = $1.00 + x
Cost of ball and bat = $1.10
x + $1.00 + x = $1.10
2x = $1.10 - $1.00
2x = .10
x = .05 NOT .10
In Nudge, Thaler suggests the world could design slight nudges that, like a friend, could help our automatic thoughts make better choices and avoid the bad ones. Students would see the fruit and yogurt before the cookies and ice cream in the school lunch line. Best choices would be the default options offered by manufacturers, insurers, sales people, mortgage brokers, and credit card companies. But Thaler knows our best interests are not everyone's objectives. Reflective, rational thinking really needs to come into play, when there are many options and/or humans have little experience, poor information, and delayed or infrequent feedback about mistakes or success. Firms have a great incentive to cater to irrational beliefs. Suggesting everyone is doing something, like paying for a warranty on a small appliance, can provide a kind of peer pressure. The financial aid staff at colleges and doctors, for example, may be receiving gifts to recommend certain private lenders and expensive new drugs.
Humans tend to cling to the status quo, the monetary decisions they have made in the past, such as buying a new bathing suit every year even if they rarely go swimming. If we choose the TV show we want to watch on NBC at 7 pm, we'll be watching NBC shows until we go to bed. If our first vote for President was a Republican candidate, we may never change political parties. Thaler suggests, "Sometimes it's good to learn what people unlike us like....If you're a Democrat,...you might want to see what Republicans think; no party can possibly have a monopoly on wisdom." He also recommends diversifying investment portfolios.
Saturday, March 17, 2018
How Globalization Can Be Fun
When I taught selling, before each class I used to assign a student to come up with news of the day or another topic (never the weather) he or she would use to engage a customer with some small talk before making their sales pitch, if they were on a sales call that day. I was reminded of this device, when I read about a Latin teacher who begins classes by asking if anyone has a silly question to ask the class in Latin.
With a globalization twist, I thought parents and teachers could ask young people, "Who can stump the family/class with a question about world affairs?" They could ask questions, such as, "What percentage of the Russian electorate voted in the March, 2018 presidential election?"
"Where does the Nile River split into the Blue Nile and the White Nile?"
"What is the native language of Kim Jong Un?"
MindWare, which claims to sell "brainy toys for kids of all ages," has another fun way to stimulate interest in the world. The company sells a line of dot-to-dot activity books with an "extreme" number of dots to connect to reveal: 1) world folklore, 2) world architecture, 3) the world's cats, and 4) the world's dogs. Each dot-to-dot puzzle is on heavy paper that can be colored with markets after the picture is completed. For more information, call 1-800-274-6123.
The earlier blog post, "Talk with the Animals," also suggests ways animals prompt a student's interest in the world.
With a globalization twist, I thought parents and teachers could ask young people, "Who can stump the family/class with a question about world affairs?" They could ask questions, such as, "What percentage of the Russian electorate voted in the March, 2018 presidential election?"
"Where does the Nile River split into the Blue Nile and the White Nile?"
"What is the native language of Kim Jong Un?"
MindWare, which claims to sell "brainy toys for kids of all ages," has another fun way to stimulate interest in the world. The company sells a line of dot-to-dot activity books with an "extreme" number of dots to connect to reveal: 1) world folklore, 2) world architecture, 3) the world's cats, and 4) the world's dogs. Each dot-to-dot puzzle is on heavy paper that can be colored with markets after the picture is completed. For more information, call 1-800-274-6123.
The earlier blog post, "Talk with the Animals," also suggests ways animals prompt a student's interest in the world.
Saturday, March 10, 2018
China's Plan for World Domination
What developing country could resist participating in China's One Belt One Road (OBOR) and Maritime Silk Road (MSR) initiatives to construct roads, railroads, bridges, and power plants that would enable a rural exodus to jobs in urban centers, employ the unemployed, stimulate manufacturing, and facilitate trade? What developed country could resist participating in the financial enterprise of investing in China's estimated $1 trillion to $8 trillion project?
That's the good news. Students are challenged to activate their critical thinking to anticipate, and even suggest solutions for, the problems that have and will develop along these routes.
Finance: Traditionally, the international financial institutions charged with funding major projects include the World Bank, dominated by the United States; the International Monetary Fund (IMF), whose president comes from Europe; and the Asian Development Bank headed by a president from Japan. Because the funding process of these institutions was considered too slow and the required plan preparation was too costly, a New Development Bank, Asian Infrastructure Investment Bank (AIIB), and Silk Road Fund were established to pick up the pace.
Since then, the Islamic Development Bank has agreed to jointly finance African projects with the AIIB, and Japanese, British, and US banks also are looking into ways to cooperate with China. Japan and the United States did not join the AIIB, because they suspected the bank would lack concern about labor, environmental sustainability, and requirements for democratic reform, since China considers all political systems equal and claims not to interfere with a recipient's sovereignty. As it has turned out, the AIIB is careful to abide by international norms, but the bank seems to retain its image by avoiding involvement with One Belt, One Road (OBOR) projects.
After World War II, the Marshall Plan helped rebuild a Europe that had existed. China's One Belt, One Road plan attempts to build something that never existed before what exits is ready to use it. As a result, Chinese development projects and financing bury recipients, such as Angola and Zambia, in debt. Half the countries in sub-Sahara Africa now have public debt greater than half their GDPs. There is growing concern about the raw materials, state power utilities, and other compensation China might require in case of loan defaults. Sri Lanka already was asked to share intelligence about traffic passing through its now bankrupt and Chinese-seized port. Zambia's default on a Chinese loan repayment resulted in immediate discussions that could lead to seizure of Zambia's electric company, ZESCO. The following eight countries have been singled out as in danger of assuming too great a Chinese debt burden: Laos, Kyrgyzstan, the Maldives, Montenegro, Djibouti, Tajikistan, Mongolia, and Pakistan.
Pakistan's new prime minister, Imran Khan, found out countries cannot escape hard financial realities. Fed up with "hand outs from the West," Pakistan hoped to avoid the scrutiny of loan requests submitted to the IMF. But even China, in the process of using Pakistan to gain access to the mineral riches in Afghanistan's mountains and to encircle India with its OBOR projects, balked at loaning funds to cover the $10 billion Pakistan needs for the next few month's fuel imports and foreign debt repayments. Saudi Arabia only offered to consider investing in the $60 billion China-Pakistan Economic Corridor (CPEC), the part of China's OBOR that includes a deep water port at Gwadar, Pakistan, and a major dam at Karot on the Pakistan-India-Chinese border. Now that the IMF is evaluating Pakistan's loan application, China also faces scrutiny of the secret terms of its CPEC contracts.
Reminiscent of the way Britain achieved control over the Suez Canal, China is creating influence and economic dependency in a wide swath of territory. With complex partnerships, including with the developing countries themselves, and enormous amounts of money at risk, diverse financial instruments handle equity participation, public-private partnerships, insurance, loan guarantees, debt instruments, first-loss equity, challenge funds, grants, and project preparation support. In cases of shared risk, allocating amounts to partners is challenging. Reducing risks also requires staff to monitor project progress and maximize the speed of fixing mistakes. At any time, China can call in loans for non-payment.
Political conflict: Beijing's Maritime Silk Road includes the deep water port China is building at Gwadar, Pakistan, to gain access to the Arabian Sea and avoid shipping oil farther east through the congested Malacca Straight. From Gwadar, China plans a route north and east toward the Karot hydroelectric power plant on the Jhelum River southeast of Islamabad and into China's Xinjiang Uighur Autonomous Region, China, which already uses facial recognition technology to track 2.5 million in its Xinjiang province, also would gain another way to control the restive Uighur Muslim minority that lives among the Chinese Han majority. Since China's President Xi Jinping came to power in 2012, he has pushed the idea that China's atheistic political system should be considered just as valid, especially for maintaining China's peace and security, as the governments of any other countries.
Try as hard as it might, however, the Chinese Communist Party has been unable to squelch Muslim Uighurs, but also Christians and Taoists in Chengdu's panda-breeding city and Buddhists in Tibet (as well as democracy activists in Hong Kong and Taiwan). More than a million Uighurs are said to be confined in re-education camps. Increased surveillance using facial recognition, AI, and computer monitoring systems tries to catch violations. Rather than be shut out of a major market, even Google was poised to develop a "Dragonfly" search engine that would meet China's censorship requirements by excluding keywords, such as Tiananmen, until its employees refused to compromise their ethics in order to work on the project.
A part of the Pakistan to China road also passes through Kashmir, the primarily Muslim site of a territorial dispute between the nuclear powers, Pakistan and Hindu India. For the first time in 30 years, the Kashmir flash point came under a major attack in February, 2019, when a suicide bomber from Pakistan killed 40 of India's security forces. To further complicate border tensions, Saudi Arabia's crown prince, Muhammad bin Salman, who is accused of directing the murder of journalist, Jamal Khashoggi, seemed to challenge China's influence in the area by visiting with a promise to invest in Pakistan and India.
Thus far, India's military buildup, economic shortfalls in the region, and ethnic/religious conflict have prevented Beijing from surrounding India. The two countries, India and China, already needed to resolve a 2017 border dispute by establishing a hotline between them. With the launch of its Arihant submarine in November, 2018, India enhanced its military capability in the area by adding sea-based, short-range nuclear missiles capable of reaching China and Pakistan to its air- and land-based missile systems.
In the south, the Indian Ocean's strategic Maldive Islands ousted China's hand-picked president. Under former President Yameen, Chinese influence had started to replace the protection India provided after the Maldives and India achieved independence from Britain. Millions in low interest Chinese loans began funding construction of a bridge from the Maldive capital in Male to the main airport, as well as housing and a hospital that could support a naval base. Saudi Arabia also has showed interest in the Maldive atolls and constructed a major mosque there.
Beijing's effort to eliminate the need to import oil through the congested Malacca Straight also moves China closer to India in the southeast. China plans to construct a road-rail-pipeline corridor through Myanmar, from its Shan state in the east to a port on the Bay of Bengal in the Rakhine state on the Bangladesh border. The Chinese conglomerate constructing the port is financing 70% of the project, but Myanmar is hard-pressed to fund its 30%, much less the rest of the country-wide project. Myanmar's Buddhist government and military face warring factions: the Muslim Rohingyas; the Arakan Army of Buddhist Rakhine that opposes the Burman-dominated Buddhist government; and the Northern Alliance Brotherhood, a coalition of insurgents from Kachin and Shan states.
In Central Asia, China runs into conflict with Russia, especially in resource-rich Kazakhstan, sometimes called the buckle of the new Silk Road.
The South China Sea finds China challenged by the United States, Japan, the Philippines, Vietnam, Thailand, Malaysia, and Brunei. Of course, there is a chance that rising waters on the overheated planet may swamp the atolls, small islands, and reefs China has militarized there, as well as in the Maldives in the Indian Ocean.
Finally, any country's government can stall, kill, or seize a project on China's land and sea routes. History recalls how France and England struggled to build and finance the Suez Canal only to have Gamal Nasser seize it in the spirit of anti-colonial nationalism. Three months into his new position, after defeating Chinese-backed Najib Razak, Malaysia's new, 93-year-old prime minister, Dr. Mahathir Mohamad, termed Chinese loans Chinese "colonialism." He traveled to Beijing to cancel the previous government's $20 billion agreement to let China build a high speed railway and two oil pipelines. China may have a way to regain these contracts, however. Malaysia is eager to prosecute Jho Low, the Malaysian mastermind behind a plot that misappropriated funds raised by three bond offerings Goldman Sachs underwrote for a Malaysian wealth fund. China could offer to turn over Mr. Low in exchange for the resumption of the cancelled projects. To block a Chinese-financed upscale Malaysian housing project wealthy Chinese investors, but not most Malaysians, could afford, Dr. Mohamad said Malaysia would not grant visas for foreigners to live there. Anwar Ibrahim is expected to replace Mahathir Mohamad, when he resigns as prime minister.
Sierra Leone's new president, Julius Maada Bio, canceled the previous administration's contract for the Chinese-financed Mamamah International Airport. As the country's aviation ministry observed, construction of a new airport would be uneconomical when the existing one is underutilized.
China also experienced opposition, when Nepal referred a Chinese project to review by anti-corruption watchdogs. Feeling overextended, Pakistan shut down projects on the China-Pakistan Economic Corridor Beijing views as its access to the Arabian Sea. It seeks more lending from China instead of an IMF loan. Even at home, Chinese citizens are beginning to view potential defaults on loans, especially to Africa, as foreign aid better used to finance domestic needs.
Environment: Constructing roads, railroads, bridges, and power plants has a major impact on the environment. At the same time cutting trees to make way for roads, rails, and tunnels, and laying thousands of miles of concrete invite flooding by eliminating anchors for soil and ground to absorb rain, increased truck and car traffic and the added heat from burning fossil fuels to generate electricity from power plants will warm the planet and increase the need for trees to absorb greenhouse gases.
Railroad projects in Kenya and seaport construction at Walvis Bay, Namibia, led locals to demand protection for wild life. China remains a major market for the ivory and rhino horn poachers obtain by killing Africa's elephants and rhino.
Infrastructure projects also can be expected to encounter objections from non-governmental organizations (NGOs) with environmental, as well as religious, human rights, and other concerns.
Employment: With a population of 1.4 billion people, China is in a position to provide all the skilled and unskilled labor needed to design, engineer, construct, administer, staff, monitor, and maintain its OBOR and MSR projects. Should governments along these routes expect China to employ their countries' unemployed, China will see no need to pay desirable wages nor to establish exemplary working conditions. Experience in Africa shows China's railroad projects have generated protests over poor pay and treatment. African construction companies even have seen contracts to build government buildings go to Chinese firms instead of local ones. Also, African industries and shop owners that expected to benefit from Chinese-financed roads and rails have found themselves unable to compete with cheaper Chinese imports.
What cannot be ignored is how the hundreds of migrant workers employed on China's widespread infrastructure projects could pose a major threat of disease transmission, especially of AIDS. Despite the attempt of Chinese managers to confine workers to monitored compounds, employees likely will be determined to find ways to meet local women.
Looking at topographical maps will give students an idea of the challenges of constructing routes through mountains, forests, and deserts and over rivers. (The earlier post, "All Aboard for China's African Railroads," describes problems of terrain, as well as financial and other problems, that can arise with projects in developing countries.) All in all, watching the progress along China's One Belt One Road and Maritime Silk Road will give students an interesting learning experience for years to come.
That's the good news. Students are challenged to activate their critical thinking to anticipate, and even suggest solutions for, the problems that have and will develop along these routes.
Finance: Traditionally, the international financial institutions charged with funding major projects include the World Bank, dominated by the United States; the International Monetary Fund (IMF), whose president comes from Europe; and the Asian Development Bank headed by a president from Japan. Because the funding process of these institutions was considered too slow and the required plan preparation was too costly, a New Development Bank, Asian Infrastructure Investment Bank (AIIB), and Silk Road Fund were established to pick up the pace.
Since then, the Islamic Development Bank has agreed to jointly finance African projects with the AIIB, and Japanese, British, and US banks also are looking into ways to cooperate with China. Japan and the United States did not join the AIIB, because they suspected the bank would lack concern about labor, environmental sustainability, and requirements for democratic reform, since China considers all political systems equal and claims not to interfere with a recipient's sovereignty. As it has turned out, the AIIB is careful to abide by international norms, but the bank seems to retain its image by avoiding involvement with One Belt, One Road (OBOR) projects.
After World War II, the Marshall Plan helped rebuild a Europe that had existed. China's One Belt, One Road plan attempts to build something that never existed before what exits is ready to use it. As a result, Chinese development projects and financing bury recipients, such as Angola and Zambia, in debt. Half the countries in sub-Sahara Africa now have public debt greater than half their GDPs. There is growing concern about the raw materials, state power utilities, and other compensation China might require in case of loan defaults. Sri Lanka already was asked to share intelligence about traffic passing through its now bankrupt and Chinese-seized port. Zambia's default on a Chinese loan repayment resulted in immediate discussions that could lead to seizure of Zambia's electric company, ZESCO. The following eight countries have been singled out as in danger of assuming too great a Chinese debt burden: Laos, Kyrgyzstan, the Maldives, Montenegro, Djibouti, Tajikistan, Mongolia, and Pakistan.
Pakistan's new prime minister, Imran Khan, found out countries cannot escape hard financial realities. Fed up with "hand outs from the West," Pakistan hoped to avoid the scrutiny of loan requests submitted to the IMF. But even China, in the process of using Pakistan to gain access to the mineral riches in Afghanistan's mountains and to encircle India with its OBOR projects, balked at loaning funds to cover the $10 billion Pakistan needs for the next few month's fuel imports and foreign debt repayments. Saudi Arabia only offered to consider investing in the $60 billion China-Pakistan Economic Corridor (CPEC), the part of China's OBOR that includes a deep water port at Gwadar, Pakistan, and a major dam at Karot on the Pakistan-India-Chinese border. Now that the IMF is evaluating Pakistan's loan application, China also faces scrutiny of the secret terms of its CPEC contracts.
Reminiscent of the way Britain achieved control over the Suez Canal, China is creating influence and economic dependency in a wide swath of territory. With complex partnerships, including with the developing countries themselves, and enormous amounts of money at risk, diverse financial instruments handle equity participation, public-private partnerships, insurance, loan guarantees, debt instruments, first-loss equity, challenge funds, grants, and project preparation support. In cases of shared risk, allocating amounts to partners is challenging. Reducing risks also requires staff to monitor project progress and maximize the speed of fixing mistakes. At any time, China can call in loans for non-payment.
Political conflict: Beijing's Maritime Silk Road includes the deep water port China is building at Gwadar, Pakistan, to gain access to the Arabian Sea and avoid shipping oil farther east through the congested Malacca Straight. From Gwadar, China plans a route north and east toward the Karot hydroelectric power plant on the Jhelum River southeast of Islamabad and into China's Xinjiang Uighur Autonomous Region, China, which already uses facial recognition technology to track 2.5 million in its Xinjiang province, also would gain another way to control the restive Uighur Muslim minority that lives among the Chinese Han majority. Since China's President Xi Jinping came to power in 2012, he has pushed the idea that China's atheistic political system should be considered just as valid, especially for maintaining China's peace and security, as the governments of any other countries.
Try as hard as it might, however, the Chinese Communist Party has been unable to squelch Muslim Uighurs, but also Christians and Taoists in Chengdu's panda-breeding city and Buddhists in Tibet (as well as democracy activists in Hong Kong and Taiwan). More than a million Uighurs are said to be confined in re-education camps. Increased surveillance using facial recognition, AI, and computer monitoring systems tries to catch violations. Rather than be shut out of a major market, even Google was poised to develop a "Dragonfly" search engine that would meet China's censorship requirements by excluding keywords, such as Tiananmen, until its employees refused to compromise their ethics in order to work on the project.
A part of the Pakistan to China road also passes through Kashmir, the primarily Muslim site of a territorial dispute between the nuclear powers, Pakistan and Hindu India. For the first time in 30 years, the Kashmir flash point came under a major attack in February, 2019, when a suicide bomber from Pakistan killed 40 of India's security forces. To further complicate border tensions, Saudi Arabia's crown prince, Muhammad bin Salman, who is accused of directing the murder of journalist, Jamal Khashoggi, seemed to challenge China's influence in the area by visiting with a promise to invest in Pakistan and India.
Thus far, India's military buildup, economic shortfalls in the region, and ethnic/religious conflict have prevented Beijing from surrounding India. The two countries, India and China, already needed to resolve a 2017 border dispute by establishing a hotline between them. With the launch of its Arihant submarine in November, 2018, India enhanced its military capability in the area by adding sea-based, short-range nuclear missiles capable of reaching China and Pakistan to its air- and land-based missile systems.
In the south, the Indian Ocean's strategic Maldive Islands ousted China's hand-picked president. Under former President Yameen, Chinese influence had started to replace the protection India provided after the Maldives and India achieved independence from Britain. Millions in low interest Chinese loans began funding construction of a bridge from the Maldive capital in Male to the main airport, as well as housing and a hospital that could support a naval base. Saudi Arabia also has showed interest in the Maldive atolls and constructed a major mosque there.
Beijing's effort to eliminate the need to import oil through the congested Malacca Straight also moves China closer to India in the southeast. China plans to construct a road-rail-pipeline corridor through Myanmar, from its Shan state in the east to a port on the Bay of Bengal in the Rakhine state on the Bangladesh border. The Chinese conglomerate constructing the port is financing 70% of the project, but Myanmar is hard-pressed to fund its 30%, much less the rest of the country-wide project. Myanmar's Buddhist government and military face warring factions: the Muslim Rohingyas; the Arakan Army of Buddhist Rakhine that opposes the Burman-dominated Buddhist government; and the Northern Alliance Brotherhood, a coalition of insurgents from Kachin and Shan states.
In Central Asia, China runs into conflict with Russia, especially in resource-rich Kazakhstan, sometimes called the buckle of the new Silk Road.
The South China Sea finds China challenged by the United States, Japan, the Philippines, Vietnam, Thailand, Malaysia, and Brunei. Of course, there is a chance that rising waters on the overheated planet may swamp the atolls, small islands, and reefs China has militarized there, as well as in the Maldives in the Indian Ocean.
Finally, any country's government can stall, kill, or seize a project on China's land and sea routes. History recalls how France and England struggled to build and finance the Suez Canal only to have Gamal Nasser seize it in the spirit of anti-colonial nationalism. Three months into his new position, after defeating Chinese-backed Najib Razak, Malaysia's new, 93-year-old prime minister, Dr. Mahathir Mohamad, termed Chinese loans Chinese "colonialism." He traveled to Beijing to cancel the previous government's $20 billion agreement to let China build a high speed railway and two oil pipelines. China may have a way to regain these contracts, however. Malaysia is eager to prosecute Jho Low, the Malaysian mastermind behind a plot that misappropriated funds raised by three bond offerings Goldman Sachs underwrote for a Malaysian wealth fund. China could offer to turn over Mr. Low in exchange for the resumption of the cancelled projects. To block a Chinese-financed upscale Malaysian housing project wealthy Chinese investors, but not most Malaysians, could afford, Dr. Mohamad said Malaysia would not grant visas for foreigners to live there. Anwar Ibrahim is expected to replace Mahathir Mohamad, when he resigns as prime minister.
Sierra Leone's new president, Julius Maada Bio, canceled the previous administration's contract for the Chinese-financed Mamamah International Airport. As the country's aviation ministry observed, construction of a new airport would be uneconomical when the existing one is underutilized.
China also experienced opposition, when Nepal referred a Chinese project to review by anti-corruption watchdogs. Feeling overextended, Pakistan shut down projects on the China-Pakistan Economic Corridor Beijing views as its access to the Arabian Sea. It seeks more lending from China instead of an IMF loan. Even at home, Chinese citizens are beginning to view potential defaults on loans, especially to Africa, as foreign aid better used to finance domestic needs.
Environment: Constructing roads, railroads, bridges, and power plants has a major impact on the environment. At the same time cutting trees to make way for roads, rails, and tunnels, and laying thousands of miles of concrete invite flooding by eliminating anchors for soil and ground to absorb rain, increased truck and car traffic and the added heat from burning fossil fuels to generate electricity from power plants will warm the planet and increase the need for trees to absorb greenhouse gases.
Railroad projects in Kenya and seaport construction at Walvis Bay, Namibia, led locals to demand protection for wild life. China remains a major market for the ivory and rhino horn poachers obtain by killing Africa's elephants and rhino.
Infrastructure projects also can be expected to encounter objections from non-governmental organizations (NGOs) with environmental, as well as religious, human rights, and other concerns.
Employment: With a population of 1.4 billion people, China is in a position to provide all the skilled and unskilled labor needed to design, engineer, construct, administer, staff, monitor, and maintain its OBOR and MSR projects. Should governments along these routes expect China to employ their countries' unemployed, China will see no need to pay desirable wages nor to establish exemplary working conditions. Experience in Africa shows China's railroad projects have generated protests over poor pay and treatment. African construction companies even have seen contracts to build government buildings go to Chinese firms instead of local ones. Also, African industries and shop owners that expected to benefit from Chinese-financed roads and rails have found themselves unable to compete with cheaper Chinese imports.
What cannot be ignored is how the hundreds of migrant workers employed on China's widespread infrastructure projects could pose a major threat of disease transmission, especially of AIDS. Despite the attempt of Chinese managers to confine workers to monitored compounds, employees likely will be determined to find ways to meet local women.
Looking at topographical maps will give students an idea of the challenges of constructing routes through mountains, forests, and deserts and over rivers. (The earlier post, "All Aboard for China's African Railroads," describes problems of terrain, as well as financial and other problems, that can arise with projects in developing countries.) All in all, watching the progress along China's One Belt One Road and Maritime Silk Road will give students an interesting learning experience for years to come.
Monday, March 5, 2018
China Stretches a Napoleon-Style Belt
Emperor Xi Jinping gained open-ended power, when China's Communist Party scrapped his two, five-year term limit in February, 2018. He already had launched an ambitious One Belt, One Road (OBOR) Initiative to connect China to Europe and a Maritime Silk Road (MSR) that will join China to Africa. The Silk Road term, not coined until the 19th century by a German, is well suited to the OBOR and MSR initiatives which mimic the ancient variety of land and sea routes that carried silk and other goods, as well as ideas, between Asia, Europe, and Africa. Many have observed, however, that besides a means to facilitate trade, China's port projects could serve as a way to establish worldwide influence and naval bases for China's expanding navy.
In pinyin, the form of Chinese characters described in Roman letters, the One Belt, One Road Initiative is called yidaiyilu. The worldwide use of English and the U.S. dollar rankles China. Beijing's Academy of Contemporary China and World Studies claims globalization is now causing many words, such as xiongmao, the pinyin word for giant panda, to be recognized outside of China.
Ever since Romans built the Appian Way, leaders have recognized how transportation binds an empire together. Yet, China's infrastructure projects will test the tight control Beijing now maintains over its citizens' telecommunication and face-to-face contacts with the outside world. Like the Chinese employees who built the railroad in Kenya, those building the new container terminal and nearby oil storage installation at Walvis Bay in Germany's former African territory of Namibia, are sealed off from the local community. They live in a closely monitored compound of barracks imprisoned by a wall topped by electrified barb wire.
Stretching thousands of miles from Beijing, work on the OBOR and MSR cannot help but require ongoing contacts with local government officials, financial institutions, suppliers, laborers, religions, and academics in the countries the roads pass. Already, the China Democratic League, one of China's eight non-communist parties, submitted a proposal to the advisory body, the National Committee of the Chinese People's Political Consultative Conference, suggesting cultural exchanges along the routes are as important as trade.
Singapore-based Broadcom's failed hostile bid for the San Diego company, Qualcomm, might, however, signal China's determination to maintain control over vast areas by using high-speed optic fiber communications and Smartphone communication and data exchange. The Committee on Foreign Investment in the United States (CFIUS) cited national security issues to block Broadcom from access to Qualcomm's wireless chips and 5G (fifth generation) high-speed mobile network technology and standards. In April, 2018, the U.S. Commerce Department placed a 7-year ban (now lifted) on sales of chips, all from Qualcomm, to China's ZTE, because the company violated a 2017 agreement not to send telecommunications equipment containing Qualcomm chips to Iran and North Korea. In Australia, (and later in the UK and Sweden) China's Huawei telecom companies remain banned from 5G networks. Before its US-blocked acquisition of Qualcomm, Broadcom transferred its headquarters from Singapore to San Jose, California, and later purchased Manhattan-based CA Technologies, a chipmaker in the infrastructure software field. In July, 2018, China would block Qualcomm's acquisition of China's NXP semiconductor company.
Noticeably missing from China's One Belt, One Road initiative was any reference to North Korea. But that was before members of the women's hockey players in North and South Korea agreed to play together in the 2018 winter Olympics; and U.S. President Trump accepted Kim's invitation to meet on June 12, 2018 in Singapore. Suddenly, on March 25, 2018, North Korea's dark green train carried Kim to China for a strategy session prior to the upcoming US-North Korean meeting, from which China was excluded. Subsequently, Beijing agreed to Liaoning province's $88 million plan to build roads on the North Korean side of the Friendship Bridge that connects the two countries at Dandong.
Whether China's strategy in Africa is considered part of the Maritime Silk Road (MSR) or an extended One Belt-One Road-One Continent strategy, China already has shown interest in the Continent by its trade, military base in Djibouti, the dam its Export-Import Bank built in Uganda, and railroad projects in Zambia, Tanzania, Kenya, Ethiopia, Sudan, and Nigeria. Other current and proposed Chinese port, rail, and airport projects ring Africa in the following countries:
In pinyin, the form of Chinese characters described in Roman letters, the One Belt, One Road Initiative is called yidaiyilu. The worldwide use of English and the U.S. dollar rankles China. Beijing's Academy of Contemporary China and World Studies claims globalization is now causing many words, such as xiongmao, the pinyin word for giant panda, to be recognized outside of China.
Ever since Romans built the Appian Way, leaders have recognized how transportation binds an empire together. Yet, China's infrastructure projects will test the tight control Beijing now maintains over its citizens' telecommunication and face-to-face contacts with the outside world. Like the Chinese employees who built the railroad in Kenya, those building the new container terminal and nearby oil storage installation at Walvis Bay in Germany's former African territory of Namibia, are sealed off from the local community. They live in a closely monitored compound of barracks imprisoned by a wall topped by electrified barb wire.
Stretching thousands of miles from Beijing, work on the OBOR and MSR cannot help but require ongoing contacts with local government officials, financial institutions, suppliers, laborers, religions, and academics in the countries the roads pass. Already, the China Democratic League, one of China's eight non-communist parties, submitted a proposal to the advisory body, the National Committee of the Chinese People's Political Consultative Conference, suggesting cultural exchanges along the routes are as important as trade.
Singapore-based Broadcom's failed hostile bid for the San Diego company, Qualcomm, might, however, signal China's determination to maintain control over vast areas by using high-speed optic fiber communications and Smartphone communication and data exchange. The Committee on Foreign Investment in the United States (CFIUS) cited national security issues to block Broadcom from access to Qualcomm's wireless chips and 5G (fifth generation) high-speed mobile network technology and standards. In April, 2018, the U.S. Commerce Department placed a 7-year ban (now lifted) on sales of chips, all from Qualcomm, to China's ZTE, because the company violated a 2017 agreement not to send telecommunications equipment containing Qualcomm chips to Iran and North Korea. In Australia, (and later in the UK and Sweden) China's Huawei telecom companies remain banned from 5G networks. Before its US-blocked acquisition of Qualcomm, Broadcom transferred its headquarters from Singapore to San Jose, California, and later purchased Manhattan-based CA Technologies, a chipmaker in the infrastructure software field. In July, 2018, China would block Qualcomm's acquisition of China's NXP semiconductor company.
Noticeably missing from China's One Belt, One Road initiative was any reference to North Korea. But that was before members of the women's hockey players in North and South Korea agreed to play together in the 2018 winter Olympics; and U.S. President Trump accepted Kim's invitation to meet on June 12, 2018 in Singapore. Suddenly, on March 25, 2018, North Korea's dark green train carried Kim to China for a strategy session prior to the upcoming US-North Korean meeting, from which China was excluded. Subsequently, Beijing agreed to Liaoning province's $88 million plan to build roads on the North Korean side of the Friendship Bridge that connects the two countries at Dandong.
Whether China's strategy in Africa is considered part of the Maritime Silk Road (MSR) or an extended One Belt-One Road-One Continent strategy, China already has shown interest in the Continent by its trade, military base in Djibouti, the dam its Export-Import Bank built in Uganda, and railroad projects in Zambia, Tanzania, Kenya, Ethiopia, Sudan, and Nigeria. Other current and proposed Chinese port, rail, and airport projects ring Africa in the following countries:
- Seychelles
- Mauritius
- Tunisia
- Tanzania
- Uganda
- Rwanda
- South Sudan
- Mozambique
- Namibia
- Gabon
- Cameroon
- Ghana
- Senegal
Thursday, March 1, 2018
Themes for Global Advertising
Leading up to any big holiday, we are used to seeing companies run ads featuring family and friends gathering to celebrate. When Singtel, a telecom company in Singapore, ran a Chinese New Year's ad that captured today's alternate reality, according to trendwatching.com, the ad outdrew those of competitors and scored nine million views on Facebook. Singtel's ad recognized how distance and busy, professional careers separate and sadden both parents and their "children" nowadays. The company captured this emotional longing to get together by showing the conversations, when plans to share the holiday were canceled. Greeting card companies also have a knack for helping family and friends share holidays, birthdays, sympathy and other emotions across the miles.
In Singapore, Singtel found half of the population spent less than 36 hours each week with family members. I suspect that seems like a lot of time to empty nesters and young professionals alike. No advertiser wants to blatantly call, "Hey, you lonely people out there, do this," but, if you closely consider commercials, you'll see some ads show a satisfying life setting when someone is by themselves and others show the benefit of making an effort to get out to meet up with family and friends. Have a piece of candy; plan a party.
In Singapore, Singtel found half of the population spent less than 36 hours each week with family members. I suspect that seems like a lot of time to empty nesters and young professionals alike. No advertiser wants to blatantly call, "Hey, you lonely people out there, do this," but, if you closely consider commercials, you'll see some ads show a satisfying life setting when someone is by themselves and others show the benefit of making an effort to get out to meet up with family and friends. Have a piece of candy; plan a party.
Subscribe to:
Posts (Atom)