A Very Interesting Story About Cheap Chinese Goods

 

By: inoljt, http://mypolitikal.com/

China has long enjoyed a reputation of producing cheap goods. This has generally been a negative reputation; cheap Chinese goods are accused of stealing the jobs of many otherwise happily employed workers.

Here is one city devastated by cheap Chinese imports:

…the city can ill afford to lose more commerce. For centuries it enjoyed high levels of literacy and a degree of architectural sophistication. But its main industries, cotton and leather, have collapsed, unable to compete with low-cost imports.

“The Chinese are choking small-scale businesses,” laments Sani Yusuf…

The story is by the Economist and can be found here.

There’s an interesting twist to this otherwise typical tale, however: it takes place in Kano, Nigeria.

In other words, cheap Chinese imports are outcompeting Nigeria goods. But Nigeria is a poorer country than China. The typical Nigerian makes less money than the typical Chinese person. Wages are almost certainly lower in Nigeria. It should be Nigerian goods that are cheaper than Chinese goods, not the other way around.

Of course, there are good reasons why Nigerian goods aren’t cheaper than Chinese goods. Productivity is lower in Nigeria. Nigeria doesn’t have a reliable electrical grid, for instance; China does. It’s hard to produce goods cheaply in a factory when the electricity goes out half the time.

Still, this is a fascinating story. We don’t normally think about Chinese goods being cheaper than those from a country poorer than China. And yet it happens.

A final note. Like many African countries, Nigeria is currently entering the second decade of an economic boom (fueled by Chinese demand for commodities). Nigerians live longer and are richer than they ever have before in history. So don’t feel too sorry for Nigeria; it’s doing better than it has for a long, long time.

 

 

A Very Interesting Story About Cheap Chinese Goods

 

By: inoljt, http://mypolitikal.com/

China has long enjoyed a reputation of producing cheap goods. This has generally been a negative reputation; cheap Chinese goods are accused of stealing the jobs of many otherwise happily employed workers.

Here is one city devastated by cheap Chinese imports:

…the city can ill afford to lose more commerce. For centuries it enjoyed high levels of literacy and a degree of architectural sophistication. But its main industries, cotton and leather, have collapsed, unable to compete with low-cost imports.

“The Chinese are choking small-scale businesses,” laments Sani Yusuf…

The story is by the Economist and can be found here.

There’s an interesting twist to this otherwise typical tale, however: it takes place in Kano, Nigeria.

In other words, cheap Chinese imports are outcompeting Nigeria goods. But Nigeria is a poorer country than China. The typical Nigerian makes less money than the typical Chinese person. Wages are almost certainly lower in Nigeria. It should be Nigerian goods that are cheaper than Chinese goods, not the other way around.

Of course, there are good reasons why Nigerian goods aren’t cheaper than Chinese goods. Productivity is lower in Nigeria. Nigeria doesn’t have a reliable electrical grid, for instance; China does. It’s hard to produce goods cheaply in a factory when the electricity goes out half the time.

Still, this is a fascinating story. We don’t normally think about Chinese goods being cheaper than those from a country poorer than China. And yet it happens.

A final note. Like many African countries, Nigeria is currently entering the second decade of an economic boom (fueled by Chinese demand for commodities). Nigerians live longer and are richer than they ever have before in history. So don’t feel too sorry for Nigeria; it’s doing better than it has for a long, long time.

 

 

Why Didn’t Britain Ever Give Democracy to Hong Kong?

By: inoljt, http://mypolitikal.com/

Great Britain is a democracy and a country dedicated to helping spread liberty around the world.

At least today. There used to be a time when Great Britain was not a friend to democracy. Indeed, there used to be a very undemocratic thing called the British Empire.

One of the last great British colonies was a city called Hong Kong. Hong Kong stayed under British control for far longer than its other colonies, and Hong Kong was still painted in the pink of the British Empire long after the rest of the empire was gone. Indeed, Hong Kong was still British long after the idea of empire began to be thought of as something very negative.

But there is something very strange about what the British did with Hong Kong, or rather what the British did not do. That is, for the longest time Great Britain never attempted to introduce democracy to Hong Kong. In the end, Hong Kong never did become a democracy under Great Britain. It is not a democracy today.

Now, this would be more easily explained if it happened before the Second World War. Before World War II, of course, it just wasn’t the European way to give democracy to their colonies. But Wikipedia’s page on Democratic development in Hong Kong doesn’t start until the 1980s. This was long after decolonization and the idea that empires were good. Indeed, the first elements of local autonomy in Hong Kong were introduced with the agreement to give back sovereignty of Hong Kong to China.

Why did Great Britain never make Hong Kong a democracy? Why didn’t it do this in the 1960s or 1970s? Why did it continue appointing bland British bureaucrats, who had never lived there and knew nothing about the place, to run Hong Kong? It seems that this failure has something to with the continuing British nostalgia of empire.

In America today people are not proud of America’s colonies. They’d rather forget it. You can talk to an American for a lifetime, and the subject of the Philippines will never come up. Indeed, the last time I actually talked with an American about American colonization escapes me. But talk with a British person long enough, and eventually the subject of the British Empire will always come up. Probably they’ll even speak in a half-nostalgic tone about the days of Britain’s glory. They’d do it again if they could.

Hong Kong’s political system today is a strange thing. People in Hong Kong vote in free and fair elections, they can protest and assembly, but the rules are bent so that ultimately only the Chinese government’s candidate can win. Yet, ironically, Hong Kong today is more democratic than it was during the vast majority (perhaps the totality) of its time under British rule. This is doubly ironic, because Great Britain is a democracy and China is not.

If Great Britain had had the option of ruling Hong Kong as long as it pleased, would Hong Kong today be a full democracy? Maybe not. Probably not.

Would Hong Kong even be as democratic as the not-really democracy it is today?

Probably so. But perhaps not. Even the “perhaps” is quite disturbing.

 

 

Why Didn’t Britain Ever Give Democracy to Hong Kong?

By: inoljt, http://mypolitikal.com/

Great Britain is a democracy and a country dedicated to helping spread liberty around the world.

At least today. There used to be a time when Great Britain was not a friend to democracy. Indeed, there used to be a very undemocratic thing called the British Empire.

One of the last great British colonies was a city called Hong Kong. Hong Kong stayed under British control for far longer than its other colonies, and Hong Kong was still painted in the pink of the British Empire long after the rest of the empire was gone. Indeed, Hong Kong was still British long after the idea of empire began to be thought of as something very negative.

But there is something very strange about what the British did with Hong Kong, or rather what the British did not do. That is, for the longest time Great Britain never attempted to introduce democracy to Hong Kong. In the end, Hong Kong never did become a democracy under Great Britain. It is not a democracy today.

Now, this would be more easily explained if it happened before the Second World War. Before World War II, of course, it just wasn’t the European way to give democracy to their colonies. But Wikipedia’s page on Democratic development in Hong Kong doesn’t start until the 1980s. This was long after decolonization and the idea that empires were good. Indeed, the first elements of local autonomy in Hong Kong were introduced with the agreement to give back sovereignty of Hong Kong to China.

Why did Great Britain never make Hong Kong a democracy? Why didn’t it do this in the 1960s or 1970s? Why did it continue appointing bland British bureaucrats, who had never lived there and knew nothing about the place, to run Hong Kong? It seems that this failure has something to with the continuing British nostalgia of empire.

In America today people are not proud of America’s colonies. They’d rather forget it. You can talk to an American for a lifetime, and the subject of the Philippines will never come up. Indeed, the last time I actually talked with an American about American colonization escapes me. But talk with a British person long enough, and eventually the subject of the British Empire will always come up. Probably they’ll even speak in a half-nostalgic tone about the days of Britain’s glory. They’d do it again if they could.

Hong Kong’s political system today is a strange thing. People in Hong Kong vote in free and fair elections, they can protest and assembly, but the rules are bent so that ultimately only the Chinese government’s candidate can win. Yet, ironically, Hong Kong today is more democratic than it was during the vast majority (perhaps the totality) of its time under British rule. This is doubly ironic, because Great Britain is a democracy and China is not.

If Great Britain had had the option of ruling Hong Kong as long as it pleased, would Hong Kong today be a full democracy? Maybe not. Probably not.

Would Hong Kong even be as democratic as the not-really democracy it is today?

Probably so. But perhaps not. Even the “perhaps” is quite disturbing.

 

 

Global Expansion of High-speed Railroads Gains Steam

Interest in high-speed rail (HSR) is growing around the world and the number of countries running these trains is expected to nearly double over the next few years, according to new research by the Worldwatch Institute for Vital Signs Online. By 2014, high-speed trains will be operating in nearly 24 countries, including China, France, Italy, Japan, Spain, and the United States, up from only 14 countries today. The increase in HSR is due largely to its reliability and ability to cover vast geographic distances in a short time, to investments aimed at connecting once-isolated regions, and to the diminishing appeal of air travel, which is becoming more cumbersome because of security concerns.

 

The rise in HSR has been very rapid—in just three years, between January 2008 and January 2011, the operational fleet grew from 1,737 high-speed trainsets worldwide to 2,517. Two-thirds of this fleet is found in just five countries: France, China, Japan, Germany, and Spain. By 2014, the global fleet is expected to total more than 3,700 units.

 

Not only is HSR reliable, but it also can be more friendly than cars or airplanes. A 2006 comparison of greenhouse gas emissions by travel mode, released by the Center for Neighborhood Technologies, found that HSR lines in Europe and Japan released 30–70 grams of carbon dioxide per passenger-kilometer, versus 150 grams for automobiles and 170 grams for airplanes.

 

Although there is no universal speed definition for HSR, the threshold is typically set at 250 kilometers per hour on new tracks and 200 kilometers per hour on existing, upgraded tracks. The length of HSR tracks worldwide is undergoing explosive growth in order to meet increasing demand. Between 2009 and 2011, the total length of operational track has grown from some 10,700 kilometers to nearly 17,000 kilometers. Another 8,000 kilometers is currently under construction, and some 17,700 kilometers more is planned, for a combined total of close to 43,000 kilometers. That is equivalent to about 4 percent of all rail lines—passenger and freight—in the world today.

 

By track length, the current high-speed leaders are China, Japan, Spain, France, and Germany. Other countries are joining the high-speed league as well. Turkey has ambitious plans to reach 2,424 kilometers and surpass the length of Germany’s network. Italy, Portugal, and the United States all hope to reach track lengths of more than 1,000 kilometers. Another 15 countries have plans for shorter networks.

 

But in Europe, France continues to account for about half of all European high-speed rail travel. HSR reached an astounding 62 percent of the country’s passenger rail travel volume in 2008, up from just 23 percent in 1990, thanks to affordable ticket prices, an impressive network, and reliability. And in Japan, the Shinkansen trains are known for their exceedingly high degree of reliability. JR Central, the largest of the Japanese rail operating companies, reports that the average delay per high-speed train throughout a year is just half a minute. On all routes in Japan where both air and high-speed rail connections are available, rail has captured a 75 percent market share.

 

Further highlights from the research:

 

  • A draft plan for French transportation infrastructure investments for the next two decades allocates 52 percent of a total of $236 billion to HSR.
  • In 2005, the Spanish government announced an ambitious plan for some 10,000 kilometers of high-speed track by 2020, which would allow 90 percent of Spaniards to live within 50 kilometers of an HSR station.
  • Currently, China is investing about $100 billion annually in railway construction. The share of the country’s railway infrastructure investment allocated to HSR has risen from less than 10 percent in 2005 to a stunning 60 percent in 2010.
  • Intercity rail in Japan accounts for 18 percent of total domestic passenger-kilometers by all travel modes—compared with just 5 to 8 percent in major European countries and less than 1 percent in the United States.
  • In France, rail’s market share of the Paris-Marseille route rose from 22 percent in 2001 (before the introduction of high-speed service) to 69 percent in 2006. In Spain, the Madrid-Seville rail route’s share rose from 33 to 84 percent.

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