Showing posts with label articles. Show all posts
Showing posts with label articles. Show all posts

Sunday, February 10, 2013

Relax! You’ll Be More Productive

Article from here.

The New York Times

 

February 9, 2013

By TONY SCHWARTZ

THINK for a moment about your typical workday. Do you wake up tired? Check your e-mail before you get out of bed? Skip breakfast or grab something on the run that’s not particularly nutritious? Rarely get away from your desk for lunch? Run from meeting to meeting with no time in between? Find it nearly impossible to keep up with the volume of e-mail you receive? Leave work later than you’d like, and still feel compelled to check e-mail in the evenings?

More and more of us find ourselves unable to juggle overwhelming demands and maintain a seemingly unsustainable pace. Paradoxically, the best way to get more done may be to spend more time doing less. A new and growing body of multidisciplinary research shows that strategic renewal — including daytime workouts, short afternoon naps, longer sleep hours, more time away from the office and longer, more frequent vacations — boosts productivity, job performance and, of course, health.

“More, bigger, faster.” This, the ethos of the market economies since the Industrial Revolution, is grounded in a mythical and misguided assumption — that our resources are infinite.

Time is the resource on which we’ve relied to get more accomplished. When there’s more to do, we invest more hours. But time is finite, and many of us feel we’re running out, that we’re investing as many hours as we can while trying to retain some semblance of a life outside work.

Although many of us can’t increase the working hours in the day, we can measurably increase our energy. Science supplies a useful way to understand the forces at play here. Physicists understand energy as the capacity to do work. Like time, energy is finite; but unlike time, it is renewable. Taking more time off is counterintuitive for most of us. The idea is also at odds with the prevailing work ethic in most companies, where downtime is typically viewed as time wasted. More than one-third of employees, for example, eat lunch at their desks on a regular basis. More than 50 percent assume they’ll work during their vacations.

In most workplaces, rewards still accrue to those who push the hardest and most continuously over time. But that doesn’t mean they’re the most productive.

Spending more hours at work often leads to less time for sleep and insufficient sleep takes a substantial toll on performance. In a study of nearly 400 employees, published last year, researchers found that sleeping too little — defined as less than six hours each night — was one of the best predictors of on-the-job burn-out. A recent Harvard study estimated that sleep deprivation costs American companies $63.2 billion a year in lost productivity.

The Stanford researcher Cheri D. Mah found that when she got male basketball players to sleep 10 hours a night, their performances in practice dramatically improved: free-throw and three-point shooting each increased by an average of 9 percent.

Daytime naps have a similar effect on performance. When night shift air traffic controllers were given 40 minutes to nap — and slept an average of 19 minutes — they performed much better on tests that measured vigilance and reaction time.

Longer naps have an even more profound impact than shorter ones. Sara C. Mednick, a sleep researcher at the University of California, Riverside, found that a 60- to 90-minute napimproved memory test results as fully as did eight hours of sleep.

MORE vacations are similarly beneficial. In 2006, the accounting firm Ernst & Young did an internal study of its employees and found that for each additional 10 hours of vacation employees took, their year-end performance ratings from supervisors (on a scale of one to five) improved by 8 percent. Frequent vacationers were also significantly less likely to leave the firm.

As athletes understand especially well, the greater the performance demand, the greater the need for renewal. When we’re under pressure, however, most of us experience the opposite impulse: to push harder rather than rest. This may explain why a recent survey by Harris Interactive found that Americans left an average of 9.2 vacation days unused in 2012 — up from 6.2 days in 2011.

The importance of restoration is rooted in our physiology. Human beings aren’t designed to expend energy continuously. Rather, we’re meant to pulse between spending and recovering energy.

In the 1950s, the researchers William Dement and Nathaniel Kleitman discovered that we sleep in cycles of roughly 90 minutes, moving from light to deep sleep and back out again. They named this pattern the Basic-Rest Activity Cycle or BRAC. A decade later, Professor Kleitman discovered that this cycle recapitulates itself during our waking lives.

The difference is that during the day we move from a state of alertness progressively into physiological fatigue approximately every 90 minutes. Our bodies regularly tell us to take a break, but we often override these signals and instead stoke ourselves up with caffeine, sugar and our own emergency reserves — the stress hormones adrenaline, noradrenaline and cortisol.

Working in 90-minute intervals turns out to be a prescription for maximizing productivity. Professor K. Anders Ericsson and his colleagues at Florida State University have studied elite performers, including musicians, athletes, actors and chess players. In each of these fields, Dr. Ericsson found that the best performers typically practice in uninterrupted sessions that last no more than 90 minutes. They begin in the morning, take a break between sessions, and rarely work for more than four and a half hours in any given day.

“To maximize gains from long-term practice,” Dr. Ericsson concluded, “individuals must avoid exhaustion and must limit practice to an amount from which they can completely recover on a daily or weekly basis.”

I’ve systematically built these principles into the way I write. For my first three books, I sat at my desk for up 10 hours a day. Each of the books took me at least a year to write. For my two most recent books, I wrote in three uninterrupted 90-minute sessions — beginning first thing in the morning, when my energy was highest — and took a break after each one.

Along the way, I learned that it’s not how long, but how well, you renew that matters most in terms of performance. Even renewal requires practice. The more rapidly and deeply I learned to quiet my mind and relax my body, the more restored I felt afterward. For one of the breaks, I ran. This generated mental and emotional renewal, but also turned out to be a time in which some of my best ideas came to me, unbidden. Writing just four and half hours a day, I completed both books in less than six months and spent my afternoons on less demanding work.

The power of renewal was so compelling to me that I’ve created a business around it that helps a range of companies including Google, Coca-Cola, Green Mountain Coffee, the Los Angeles Police Department, Cleveland Clinic and Genentech.

Our own offices are a laboratory for the principles we teach. Renewal is central to how we work. We dedicated space to a “renewal” room in which employees can nap, meditate or relax. We have a spacious lounge where employees hang out together and snack on healthy foods we provide. We encourage workers to take renewal breaks throughout the day, and to leave the office for lunch, which we often do together. We allow people to work from home several days a week, in part so they can avoid debilitating rush-hour commutes. Our workdays end at 6 p.m. and we don’t expect anyone to answer e-mail in the evenings or on the weekends. Employees receive four weeks of vacation from their first year.

Our basic idea is that the energy employees bring to their jobs is far more important in terms of the value of their work than is the number of hours they work. By managing energy more skillfully, it’s possible to get more done, in less time, more sustainably. In a decade, no one has ever chosen to leave the company. Our secret is simple — and generally applicable. When we’re renewing, we’re truly renewing, so when we’re working, we can really work.

Tony Schwartz is the chief executive officer of The Energy Project and the author, most recently, of “Be Excellent at Anything.”

Saturday, September 22, 2012

The export of Taiwanese labour

A very interesting article on the predicament that is facing Taiwan today.

The article bemoans the poor economic situation of Taiwan, where the average wage (which I don’t think have been corrected for inflation) of those below 34 years old have dropped to wage levels 15 – 17 years ago. Coupled with rising inflation and unemployment in Taiwan, the article highlights the third wave in the export of Taiwanese labour: where young Taiwanese seek employment in blue-collar jobs in Australia (e.g. in abattoirs, farms and mines) where they can earn up to 4 times what they would otherwise receive in a white-collar job back home.


台灣進入「台勞」時代!/文﹕南方朔

【明報專訊】今年是台灣退化的關鍵年。剛剛過完第二季,台灣的GDP成長率竟然為負0.18%,在亞洲12個主要國家及地區,居然排名最末,而且是唯一的負成長。台灣這幾年是四小龍之末,現已成為亞洲之末。

台灣人收入 最多倒退17年

不僅成長率退化而已,台灣的國民平均年收入也在退化之中。根據行政院主計總處的統計,去年台灣的每人平均年收入,未滿30歲的年齡層,平均只有台幣41.6萬元,倒退回了15年前水準,30至34歲這一層,則為台幣55.6萬元,倒退回17年前水準,收入最好的是45歲至54歲這一層,他們的平均年收入為台幣73.3萬元,也倒退回了6年前。今年的情只會更差,不可能更好。

由於成長減緩,年所得倒退,再加上今年以來台灣的物價上漲,8月份消費者物價指數上漲達3.42%,其中單單食物類即上漲8.66%,平均每戶人家今年每月開支增加大約台幣2000元,因此今年台灣過生活的艱苦程度已大大增加,特別是15至29歲的年輕人的失業率已高達12%,因此,當今台灣青年人是相當苦悶的,他們工作難找,縱使找到工作,待遇每月也只有台幣2.4萬元至2.6萬元之間,有碩士學位的稍好一點,但每月也只有3.2萬元。這樣的所得條件和就業環境,已使台灣的年輕人被稱為「青貧族」,青年人已不可能儲蓄,不可能購屋買產,甚至不敢結婚生育子女。

澳洲做粗活 薪金四級跳

於是,一種新的現象遂告出現,那就是台灣有很多大學畢業生由於找不到好工作,寧願遠走澳洲的屠宰場、農場、礦場去作工,這種工作雖然屬於粗活,不算白領工作,但報酬卻是台灣平均工資的4倍。據台灣的外交部統計,2011年申請到澳洲打工的有1.3萬人,2012年有9600人。目前在澳洲作工的約有3萬人,台灣已成了「台勞」輸出的地方,許多「台勞」甚至還是台大、清大、政大等不錯的大學畢業生。台灣以前有「菲勞」、「泰勞」、「越勞」等,現在終於出了「台勞」,雖說職業無貴賤,但台灣搞到大學畢業生出國當「台勞」,畢竟使人感嘆!

根據台灣官方的統計,目前大學畢業生的平均工資及薪資每月只有26,577元,而澳洲的打工,最低的時薪約為台幣495元,周薪可達台幣1.9萬元,勞力更密集也更辛苦的如看護工則更高,因此一個「台勞」去打工,每月平均可掙到台幣9萬至12萬,相當於台灣的4倍。就有一個台灣清華大學經濟系的27歲畢業生,因為在台灣找不到好工作,而去澳洲的肉品工廠作工,專門為冷凍羊肉去皮,同一工廠即有「台勞」150人,他們每個月可掙台幣10萬,大家都有個心願,那就是辛苦工作兩年,即可帶台幣200萬回家。

但當「台勞」也並不是每個人都幸運,有人在礦場被炸斷手,有人被騙被打或被性騷擾。這些都是在台灣的「泰勞」、「菲勞」、「菲傭」,大陸的「漁工」等常發生的事,現在這種事已發生在「台勞」上,這也證明了風水輪流轉的道理。

職業無貴賤,一個國家的人去外國打工,這並不是丟臉的事,但這種勞力外流,人民去外國打工的現象,對該國而言,則無疑是個重大的問題。台灣近年來,經濟每下愈,由於經濟惡化,工作機會增加緩慢,工資也逐年下降,這已造成了好幾波「移出」的現象。

熱話「台勞」 三波「移出」

第一波「移出」是「台商」的移往中國大陸,當然也伴同資金的移出。它造成了台灣產業的空洞化及新投資的不足。這一種移出在馬政府上台後達到頂點。

第二波「移出」,則是最近這幾年才出現的技術人力的移出,許多在台灣有經驗的中高階技術人員、教書工作者、技術管理階層,分別往中國大陸、新加坡、香港,甚至南韓等移出,這可說是「挖角式的人力移出」。就以中國大陸為例,它對台灣的挖角條件是「在台灣領多少錢,我們就給多少人民幣」,一差就差了4倍多。

第三波「移出」,即是現在正發生的「台勞」。台灣由於退化的速度加快,年輕高學歷的人就業困難而且薪資條件不佳,他們遂乾脆到澳洲去做辛苦的工作,這已談不上是什麼人生理想,只是要掙多一點錢。

因此,「台勞」問題最近已在媒體及網絡上成了台灣最熱門的話題,這個話題多少都使人有點感傷。台灣過去曾是亞洲四小龍之首,由於社會在發展,就業及所得都不是問題,但從1990年代起,進入全球化的年代,台灣卻顯然日益失去了自己的位置,台灣經濟無法轉型,整個社會遂只能在原地踏步,最後是整個原地踏步所造成的壓力,全都由年輕人所承擔。從今年起,台灣正式進入「台勞時代」,這實在是台灣的悲歌!

南方朔 《亞洲週刊》主筆

Thursday, September 20, 2012

Rebalancing a Divided China

AWSJ, 7 Sep 2012

By TOM ORLIK

Conventional wisdom says that China's poor save too much—improving the social safety net would encourage them to hit the shops and rev the consumption engine. The facts disagree.

A 2011 survey from China's South Western University of Finance and Economics found that 55% of China's households had little or no savings for the year. That busts the myth of industrious farmers and migrant workers saving to pay for education, health care and pensions.

image001The survey of 8,000 households also found that the top 10% of China's households control 86% of wealth and account for 56% of household income. That's a considerably higher share of income than the 32% suggested by the official National Bureau of Statistics data and points to a worrying level of inequality.

International and historical comparisons suggest China's wealth gap should be ringing alarm bells. Surveys in 1995 and 2002 found that back then China's top 10% controlled just 30% and 41% of wealth, respectively. In the United States, Federal Reserve numbers show the top 10% are eating 74% of the pie.

Concentrating wealth in the hands of China's few has implications for both financial and social stability.

China's rich are already buying passports and homes abroad. With such a high share of assets in their hands, if they all decide to leave at once, that would leave a big hole in the banking system. China's poor have acquiesced in an iniquitous system because their income is also rising; if that stops, they might not be so tolerant of entrenched privilege.

The main takeaway though is on the prescription for addressing China's consumption-light growth model. The government's efforts so far have focused on extending public health, education and pension services to reduce the need for household precautionary saving and to free up income to spend at the shops.

That won't do the job. The reason the mass of China's households aren't spending isn't because they save too much, it's because their incomes are too low. The reason the rich are saving isn't because they want to, it's because they have too much money to spend all of it. The best way to boost consumption in China is not through extending public services but through a more equitable distribution of income.

Monday, May 14, 2012

The best place in the world to be creative

Why would an international best-selling writer on creativity live here? Because while New York may call itself 'the capital of the world', Singapore is the world

by Fredrik Haren

04:45 AM May 14, 2012

I have lost count of the number of times I have been asked: "As an author of creativity books, how on earth can you live in Singapore?"

And when I reply, "Because I think it is the best place in the world to live for a creative person", most people think I am kidding and everyone asks me to explain.

But no, I am not kidding. And yes, let me explain.

I moved to Beijing from my native Sweden in 2005 because I wanted to be in Asia when Asian countries truly started to embrace creativity.

The defining moment for me was when Hu Jintao gave a speech to the Chinese people in which he said that "China should be an innovative country 15 years from now".

Since I write books on business creativity, I just had to move to Asia and see this shift happen.

After two years in Beijing, I learnt two things: Firstly, I wanted to leave Beijing, which is a fascinating city, but has too much traffic, too much pollution and too little water for a Swede brought up in the Stockholm archipelago; and secondly, I wanted to remain in Asia.

So I went on a grand journey. While doing research for my book The Developing World, I constantly travelled over a period of more than 10 months.

I went to 20 developing countries and when I came to each new city that I thought had potential to become my new home, I made sure my schedule allowed me to stay a few extra days to get a feel of life there.

I spent two weeks each in Seoul, Hong Kong, Bangkok, Shanghai, Mumbai, New Delhi, Istanbul and Singapore.

Then I made a list of positives and negatives about each city. Obviously, Singapore won in the end.

SINGAPORE VIRTUES

Why? Well, for many reasons.

Such as quality of life - I now drink as much fresh mango juices in Singapore as I did beers in Beijing, weather (no, I do not mind the heat; I love it), security (I love countries where there is a good chance you will get your iPhone back if you left it behind in a restaurant) and convenience (like the fact that Changi Airport has extensive connections to the world, since my work involves a lot of travelling to different countries on a frequent basis).

Those are the usual reasons that attract most people to Singapore.

But the main reason I live in Singapore is because this city-state, to me, is the one place on earth where it is the easiest to have a globally-creative mindset.

Some people say Singapore is "Asia for beginners". I do not agree. I think Singapore is "globalisation for beginners", or rather, "globalisation for early adopters".

With a diverse mix of races, religions and nationalities, Singapore not only represents the cross-section of the world, it is also a time capsule of what the world will look like in the future.

And I love that.

New York may call itself 'the capital of the world' but Singapore is the world. Unlike New York, which is a global city in the United States, Singapore is a global city - a global city-state. Singapore is a city in the world, not a city in a country in the world.

And this makes it easier to have a global outlook here since nationalistic barriers do not block the view as much.

A BEAUTIFUL MIX

A positive side-effect of this is that Singapore is one of the least racist countries in the world.

Now, that does not mean that there is no racism in Singapore, but I have worked in more than 40 countries, and I have never experienced less racism than I do in Singapore.

That is important to me. Not only because we are a mixed-race family - I am from Sweden, my wife from the Philippines and my son a happy mix of Stockholm, Manila and Singapore.

As an European, I am ashamed and disappointed when European leaders recently proclaim that "the multi-cultural society does not work". I just wish they would come to Singapore.

To live in a place that is celebrating "Western New Year" and "Chinese New Year" is not only twice as fun, it also gives you the feeling that there is more than one way of doing things.

On a recent New Year's Eve party, we realised our group consisted of 10 people with 10 different passports.
A friend told me how they had had an after-work beer at his company and 14 people - from 14 different countries - showed up.

At our wedding, we had 40 guests from eight countries, comprising at least four religions and four races, and, at the time, no one was counting.

It all just felt as if it was the most natural thing in the world. The point, of course, is that it is not the most natural thing in the world. Unfortunately, in most places in the world, it would be rare, strange and exotic to have such a natural mix of backgrounds.

For people living in Singapore, it is so natural you do not grasp how unnaturally natural it is, and how valuable.

OF ROOTS AND BRANCHES

Now, do not get me wrong. I am not saying that knowledge of your own culture and background is not important. It is.

It is often said that a person without roots is fickle, doesn't know how to connect to who he is and can be easily manipulated, because there are no basic values keeping him grounded. Roots are important.

But if one is going to use a metaphor (in this case, of likening a human being to a tree), one has to use the whole metaphor. Because it is equally true that a tree without branches also perishes.

A tree that does not spread its branches out in all directions to gather as much sunlight and energy as possible might have deep and strong roots, but it will eventually still wither and die.

In other words, to be rootless is dangerous, but so is being branchless.

And if your own culture is the roots, the cultures of the rest of the world is the energy that your branches need to reach out to, so that you can get new ideas and ways of doing things by learning from others, be inspired to try new foods, acquire new habits and try new customs.

It will make you curious of other ways of doing things, be inspired by different ideas and energised by alternate points of views. And that is what creates creativity.

And nowhere in the world is it easier to let your branches spread out than in Singapore.

Want some exposure to American influence? Watch American Idol the day after it airs in the US.

What about a dose of Indian culture? Join in the Deepavali celebrations together with thousands of Indians in Little India.

Want to practice your Chinese language? Go and order frog in Geylang.

HEIMSKUR MEANS 'MORON'

The Icelandic Vikings, who lived a thousand years ago, had a word for people who never left their farms on Iceland and never ventured outside. The word was heimskur. It means moron.

As they saw it, a person who did not open up to the world to find new ideas from other cultures was a moron. I think the Vikings would have loved Singapore. I sure know that I do. It is the one place with the fewest heimskurs that I have found .

Too many people limit their potential, their creativity - and in the end - their lives, because they are not embracing the whole human spectrum of creativity.

They are not taking full advantage of the potential of the world, because they are not living in the world. They are stuck in their own corner, looking inwards, seeing whatever that is different as "foreign".

And I think that answers the question of why I am living in Singapore - because Singapore makes me more human by making me more a part of the world, a part of humanity. And by being part of the world, I have a bigger chance to be inspired and have new ideas.

Ideas that will benefit us all.

Fredrik Haren, an author and speaker on business creativity, has lived in Asia since 2005, and has been in Singapore since 2008. His work The Idea Book has been included in The 100 Best Business Books of All Time. This article appears in the Singapore International Foundation's book aimed at bridging communities, Singapore Insights from the Inside.

Saturday, January 14, 2012

The Resurgence of Asia?

It’s always interesting to read articles or books which remind us that the world order was not always as it is; that the might didn’t always lie with the West and that Asia was once at the forefront of civilisation and development.

Yet, it also always begs the question – what happened to make it all change?

Just some paragraphs from Predicting the Unpredictable (The Diplomat, 23 Dec 2011), by Jason Miks:

After all, in the middle of the 18th century, Asia accounted for 58 percent of the global economy, a share that gradually slid as the West underwent its Industrial Revolution. Rapid development in the West saw Asia’s share of GDP tumble to around 15 percent by 1952.

So is the rapid development that economic reforms have unleashed all thanks to a Communist Party master plan? Gordon Chang, in our first essay, thinks not.

“The world credits the diminutive Deng Xiaoping for the startling transformation of Chinese society.  We believe, according to the universal narrative, that his dictatorial state first debated, then planned, and finally decreed change,” Chang writes. “Yet reform, in reality, progressed more by disobedience than design.”

“China has enjoyed an ‘economic miracle’ largely because desperate peasants and frustrated bureaucrats openly made themselves into plucky entrepreneurs.  By ignoring central government decrees, they built large and small private businesses and changed the Chinese economy beyond recognition.”

Thursday, December 29, 2011

‘ HK citizen’ identity strongest in 10 years

From today's South China Morning Post. I found this significant, as despite increasing economic integration I think HK is still quite different from China. That and the fact that I was once rebutted, with the other party saying that Hongkongers increasingly view themselves as being PRC-Chinese.

Despite increasing economic integration, locals are viewing themselves more strongly as Hongkongers rather than Chinese citizens than at any time in the past decade, a survey has found.

The poll asked 1,016 city residents to rank the strength of their feelings as “Hong Kong citizens” on a scale from zero to 10, and found an average rating of 8.23 points, a 10- year high.

Asked the same question about their identity as “Chinese citizens”, the average rating was 7.01 points, a 12- year low. The poll was conducted from December 12- 20.

The University of Hong Kong’s public opinion programme has conducted such surveys from time to time since the 1997 handover.

Dr Robert Chung Ting- yiu, the programme’s director, said: “This [ trend] is contrary to the [ direction of] China’s economic development in recent years, so it must be due to factors beyond economic development.” But he stopped short of speculating about the reasons behind the fluctuations in these figures.

The pollsters combined all the survey results into an identity index on a scale from zero to 100. City residents’ strongest feelings of identity are as “Hong Kong citizens”, at 79.1 points, followed by “members of the Chinese race” at 72.5 points.

Then came “Asians”, at 72.1 points; “Chinese citizens”, at 67.9 points; “global citizens”, at 67 points; and finally “citizens of the People’s Republic of China”, at 61.1 points.

“The feeling of being ‘ citizens of the PRC’ was the weakest among all identities tested,” Chung said.

Dr Leung Hon- chu, principal lecturer at Baptist University’s sociology department, said some recent issues might have discouraged Hongkongers from identifying themselves as Chinese citizens.

He cited the vote- rigging scandal following Hong Kong’s recent district council
elections, allegedly linked to the central government’s influence in local affairs; and Beijing’s crackdown on dissidents such as artist- activist Ai Weiwei. The controversial security arrangements during Vice- Premier Li Keqiang’s visit in August could also have affected Hongkongers’ impressions of the mainland, he said.

“The sense of identity is not determined by the economic growth [ of a place]. Rather, it is related to whether they feel engaged in or contributing to the development [ of society as a whole],” Leung said.

“The narrowing of the difference between Hong Kong and the mainland in the political and cultural arenas may prompt fear among locals that democracy and human rights, honoured in the city, could be weakened,” he added.

Political scientist Dr James Sung Lap- kung said the weakening local sense of a “Chinese citizen” identity could be tied to a wide range of factors to do with China’s diplomatic relations as well as social and economic developments.

The recent Wukan protest over confiscated farmland, and demonstrations over a proposed power plant in Haimen , Guangdong, could have affected Hongkongers, Sung said. The small- circle chief executive election might also weaken people’s sense of engagement, making them believe Beijing was exerting its influence over the city, he said.

Friday, August 26, 2011

some trivia

This blog is so dead, mainly because things have been really busy for the past two and a half weeks. Unfortunately now is only the mid-point in this marathon – I will have to get through next week’s trip and write up my report within a week after I return. Sigh!

Anyway, here’s some trivia.

Did you know that ComfortDelGro runs 13% of London’s bus network? According to Monocle (which is an amazing magazine), ComfortDelGro is one of the world’s biggest transport companies – they have 46,000 vehicles! Their buses are in Australia, Ireland and Scotland, while their taxis are in Aberdeen, Birmingham, Edinburgh, Ho Chi Minh City and Liverpool. Their taxis are also in China, and they are even the 3rd largest taxi operator in Beijing!

       

 

Speaking of China, although the water usage per capita is only 20% of the global average, 660 cities in China suffer from water shortage, with 110 of the cities having severe water shortages.

Everyone also knows about China’s sizable investments and interest in Africa. Did you know that China convinced the African countries in which it invests heavily to close down the Taiwanese embassies they were hosting?

Did you also know that for every 1% increase in GDP, 1.03% of energy is expanded, and whenever an urban population grows by 1%, 2.2% more energy is consumed? Our growth comes at a sizable cost to the environment.

How much energy do you think Singapore consumed for all these?

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Sunday, June 26, 2011

The truth about iPhones

So it has been revealed in today’s Straits Times here that Apple accounts for 80% of data transmitted to and from non-computer devices in Singapore. To me, that means that Singaporeans are a rich bunch – or at least very willing and able to spend – given that iPhones and iPads don’t come cheap.

I wonder though, if all the iPhone fanatics out there realise the supremely huge profit margin that Apple has on the product. The total manufacturing cost of an iPhone is only US$179, which is approximately only SG$222.

I’m not sure either if iPhone users are aware of the labour rights issues related to the assembly of iPhones, which takes place in China under the company Foxconn. Workers in Foxconn have committed suicides due to low wages and poor labour conditions, while workers in Wintek, which makes Apple’s touch screens, have suffered from chemical poisoning. 

It may not be fair to blame Apple completely for the misdeeds of its subcontractors, but Apple has done little to address the issues or apply pressure on its subcontractors despite the many controversies that have arisen, particularly in the case of Foxconn. One must also always ask whether subcontractors use low-quality materials or pay low wages due to pressure by the main company to keep costs down to maximise profits – it’s a question that applies to the manufacture of all goods.

However, a research paper has pointed out that raising wages has little impact on Apple’s profits for the iPhone. A 10 times increase in labour costs will only increase the assembly costs of an iPhone to US$68 and push total manufacturing costs to about US$240 – only US$61 for a 10 times increase, which makes the current labour costs a mere pittance at US$6.77 per iPhone.

The pitiful cost of labour in assembling an iPhone aside, the paper used the above argument to suggest the viability of shifting iPhone assembly to the US. The US’ enormous trade deficit with China is not helped by the assembly of iPhones in China, the reason being that China only contributes 3.6% of the total manufacturing costs of the iPhone*, yet the iPhone alone accounted for US$1.9 billion in trade deficit, or 0.8% of the US’ total trade deficit with China. The paper suggests that Apple could therefore shift the iPhone assembly to the US with only US$61 increase in manufacturing costs (assuming US workers cost 10 times more than Chinese workers), reducing the US’ trade deficit with China and providing jobs for the flagging US manufacturing sector at the same time.

 

*: The manufacture of iPhones involves 9 companies located in China, Germany, Japan, Korea and the US, with the main producers and suppliers of iPhone parts and components mostly located outside of China and China mainly handling the assembly, as previously mentioned.

Sunday, June 5, 2011

Carbon Footprints

The Economist’s article “Following the Footprints” expounds on carbon-footprint labels that are appearing on food products, especially in Europe. The concept is interesting and useful:

“The idea was that carbon labels would let shoppers identify products with the smallest carbon footprints, just as other labels already indicate dolphin-friendly tuna, organic milk or Fairtrade coffee. Producers would compete to reduce the carbon footprints of their products, and consumers would be able to tell whether, for example, locally made goods really were greener than imported ones.”

While local vs imported products isn’t very relevant to Singaporeans, carbon-footprint labels would definitely help consumers in making a more informed choice. A French retailer has taken it one step further – and I’m not even sure Singapore’s supermarkets all indicate cost per kilogram:

“E. Leclerc, another French retailer, has pioneered two novel twists on carbon labelling in a handful of its stores. It has fixed labels to store shelves showing the carbon emissions per kilogram of produce next to the usual price tags showing cost per kilogram. “

The article also highlighted that carbon footprints did not end with the manufacturing of the product. In fact, “use-phase” emissions should be considered too, whereby the carbon footprint of usage of the product should be considered:

“The emissions associated with a bottle of shampoo depend on how long you spend in the shower, how hot the water is and what sort of boiler you have.”

it would be great if Singapore had a larger green movement. Recycling isn’t even widely practised here; my office doesn’t even recycle bottles and cans, and a staff feedback system is no longer existent.

Sunday, April 10, 2011

China consumer goods: Left on the shelf (FT, 5 Apr 2011)

Some interesting snippets from the above article, see here for full article.

“A cursory glance around any supermarket is enough to show China is shaping up to be the world’s biggest grocery market within just three years. The choice, even by western standards, is staggering. At a hangar-proportioned Carrefour outlet in suburban Shanghai, there are enough soft drink varieties to allow a customer to try something new every day for a year – and still not have exhausted the different herbal teas, flavoured milks, fruit and vegetable concoctions or slimming beverages on the shelves.

….

PepsiCo’s Chinese farms supply roughly 40 per cent of the potatoes used in its Lay’s crisps. Nestlé counts 25,000 dairy farmers among its suppliers – all of whom the Swiss group deals with directly – and Associated British Foods’ Chinese operations are so focused on procuring sugar beet that Tony Cheung, managing director for the British Sugar unit, says he regards the farmer as his top priority. Poaching of suppliers is rampant as farmers jump ship for a bigger cheque.

….

“Third- and fourth-tier cities are twice as big as the first- and second-tier ones in terms of population, and the growth rate [is] twice as fast. So that’s where the big opportunity is,” says Nielsen’s Mr Barns. “China is going to add more megacities in the central and western parts of the country and urbanise 200m more people.”

Sunday, March 27, 2011

not the 50 books you must read before you die

The Daily Telegraph had a tongue-in-cheek literary recommendation on what are not the 50 books you must read before you die.

I was quite happy to see some books I thought little of on the list, although some of my favourites are there as well. Let’s take a look at some of them:

7 The Great Gatsby by F Scott Fitzgerald

Jay Gatsby is not as great a character as everyone thinks he is. Neither is this book, or the author, or the million of people who pretend to like it. Full of people doing tedious things, breaking off only to sleep with each other’s wives.

me: I’d actually finished this book, but I was curious as to why it was so widely celebrated as it didn’t seem like a “great novel” at all.

8 Tender is the Night by F Scott Fitzgerald

See above. Bizarrely, was given as a present by Michael Howard to woo his future wife. Even more bizarrely, it worked.

me: This book was so boring I didn’t finish it.

11 One Hundred Years of Solitude by Gabriel García Márquez

Like trying to get to grips with seven generations of your Colombian exchange student’s family tree.

me: As above.

19 The Alchemist by Paulo Coelho

When superior life forms come to write the history of the extinct human race, they will cite this distinctly unhelpful self-help book masquerading as literature as a turning point in our decline. Stunningly trite, it has sold more than 65 million copies in 56 languages and was highly enjoyed by Madonna.

me: Finally! Someone besides me who thinks this book is overrated and has absolutely no idea why everyone loves it. The same applies to “The Little Prince” and “Life of Pi”. I wish those books were on this list too, especially the former.

27 A Short History of Tractors in Ukrainian by Marina Lewycka

Misleading title for a family comedy set in Peterborough. And probably responsible for the plague of equally annoying titles that followed.

me: This book was interesting enough, although I skipped almost all the tractor parts.

39 Angela’s Ashes by Frank McCourt

A lovely book about an Irish childhood, although indirectly responsible for a decade of misery memoirs: “No, Daddy, not there” etc.

me: This book was interesting enough for the first third, got boring into the second third and remained largely unread at the last third.

43 Saturday by Ian McEwan

What the author learnt after spending two years getting in the way of a neurosurgeon. Not as good as Enduring Love, which is not as good as Amsterdam, which is not as good as Atonement.

me: out of the books listed above I’d only read the best and worst ones, but this is helpful for determining which McEwan book I should read next.

I also had a look at the list of 50 books every child should read in the Independent. Unfortunately I hadn’t even heard of almost all the books listed, save for the classics like “Alice in Wonderland” and “Secret Garden”, but I have no idea why “Moving Pictures” is on that list. Unless kids have gotten a lot smarter since my time, Terry Pratchett’s Discworld Series isn’t something an 11 year old would understand.

Saturday, March 19, 2011

Case study on Singapore in The Economist, 17 March

I think I’m most certainly biased, but there’s an excellent and very interesting article in the Economist which is essentially a case study on Singapore – why its government works and what the West can learn from it.

Because Singapore gets dissed so often by international press, I really enjoy articles that sing a different tune, especially when national pride comes into play. Here are some highlights:

“Singapore is important to any study of government just now, both in the West and in Asia. That is partly because it does some things very well, in much the same way that some Scandinavian countries excel in certain fields… First, Singapore is good at government (which is largely true). Second, the secret of its success lies in an Asian mixture of authoritarian values and state-directed capitalism (largely myth). Third, China is trying to copy Singapore (certainly true). Last, China’s government is already more efficient than the decadent West (mostly rubbish, see next section).

…

There is an odd imbalance between the things that Singapore and others make so much noise about and the reasons why the place works. In particular, the “Asian values” bits of Singapore—its authoritarianism and its industrial policy—that the Chinese seem to find especially congenial are less vital to its success than two more humdrum virtues: a good civil service and a competitively small state.

…

One thing that stands out in Singapore is the quality of its civil service

…

But arguably the place that should be learning most from Singapore is the West. For all the talk about Asian values, Singapore is a pretty Western place. Its model, such as it is, combines elements of Victorian self-reliance and American management theory. The West could take in a lot of both without sacrificing any liberty.”

“China’s Facebook Syndrome” and another story

There’s an article on Bloomberg Businessweek on Facebook and China:

“Since 2009, China has blocked Facebook, the world's largest online social media network. This year, Renren, one of China's largest social networks, plans to raise $500 million on the New York Stock Exchange. So a Chinese social network can tap U.S. capital markets, but American social networks can't tap Chinese consumer markets. Does that sound fair?”

This reminded me of a something else that is brewing in China regarding electronic payment processing – the US has formally appealed to the WTO over China’s Unionpay having a monopoly over electronic payments. The gist is that in China, customers who wish to pay for their purchases electronically or withdraw money from an ATM machine are generally required to own cards issued by China’s Unionpay in order for the payment/withdrawal to be processed (read more here and here). This is despite Unionpay being accepted overseas - i’m sure many would recognise its logo – and sounds completely like Facebook being banned in China but Renren being able to be accessed outside of China.

Of course, larger merchants like hotels (I’ve never had problems paying for accommodation even in domestically-owned hotels) and those in the larger cities (my friend has shopped and paid via card in Beijing, Shanghai, Guangzhou, etc) accept Mastercard/Visa. However, my guess is that they have to pay extra to provide this service. Frankly, I wouldn’t have blinked when I heard the news about the US appealing a dispute until I was in Hefei, Anhui the other day and trying to pay for a really pretty winter coat (on 40% off!) at Mo&Co De Paris only to have both my Visa and Mastercards rejected. I managed to buy the coat in the end – thanks to there being someone I could borrow money from – but otherwise tourist dollars would have been lost, as I couldn’t have been able to withdraw money from the ATMs either.

Lesson learnt from this experience – bring more money when travelling to the lesser known/developed Chinese cities! They might have new shiny malls with expensive shops like Korean fashion brand Roem where a dress costs SGD180 or a jewellery/accessories shop that had SGD1000 crystal-studded shoes in its display case, but no cashless payment available!

Tuesday, March 1, 2011

Tiger Mum

I have little to contribute to the ‘Tiger Mum’ furore, but I came across this interesting paragraph in Elizabeth Kolbert’s article on Amy Chua's "Battle Hymn of the Tiger Mother" in the Jan 31 issue of The New Yorker - and more so because it refers to Singapore. I include the preceding paragraphs for context:

“On our good days, we tell ourselves that our kids will be all right. The new, global economy, we observe,puts a premium on flexibility and creativity. And who is better prepared for such a future than little Abby (or Zachary), downloading her wacky videos onto YouTube while she texts her friends, messes with Photoshop, and listens to her iPod?

"Yes, you can brute-force any kid to learn to play the piano--just precisely like his or her billion
neighbors" is how one of the comments on the Wall Street Journal 's Web site put it. "But you'll never get a Jimi Hendrix that way."

On our bad days, we wonder whether this way of thinking is, as Chua might say, garbage. Last month, the results of the most recent Programme for International Student Assessment, or PISA, tests were announced. It was the first time that Chinese students had participated, and children from Shanghai ranked first in every single area. Students from the United States, meanwhile, came in seventeenth in reading, twenty-third in science, and an especially  demoralizing thirty-first in math. This last ranking put American kids not just behind the Chinese, the Koreans, and the Singaporeans but also after the French, the Austrians, the Hungarians, the Slovenians, the Estonians, and the Poles.

"I know skeptics will want to argue with the results, but we consider them to be accurate and reliable," Arne Duncan, the U.S. Secretary of Education, told the Times. "The United States came in twenty-third or twenty-fourth in most subjects. We can quibble, or we can face the brutal truth that we're being out-educated."

Why is this? How is it that the richest country in the world can't teach kids to read or to multiply fractions? Taken as a parable, Chua's cartoonish narrative about browbeating her daughters acquires a certain disquieting force. Americans have been told always to encourage their kids. This, the theory goes, will improve their self-esteem, and this, in turn, will help them learn.

After a generation or so of applying this theory, we have the results. Just about the only category in which American students outperform the competition is self-regard. Researchers at the Brookings Institution, in one of their frequent studies of education policy, compared students' assessments of their abilities in math with their scores on a standardized test. Nearly forty per cent of American eighth graders agreed "a lot" with the statement "I usually do well in mathematics," even though only seven per cent of American students actually got enough correct answers on the test to qualify as advanced. Among Singaporean students, eighteen per cent said they usually did well in math; forty-four per cent qualified as advanced. As the Brookings researchers pointed out, even the least self-confident Singaporean students, on average, outscored the most self-confident Americans. You can say it's sad that kids in Singapore are so beaten down that they can't appreciate their own accomplishments. But you've got to give them this: at least they get the math right.”

Saturday, February 5, 2011

Way to go, Asia

Asia has had enough of excusing the west (Financial Times, 26 Jan 2011)
By Kishore Mahbubani

Most crises are known by their origin, from the Mexican peso crisis of 1994/5 to the Asian crisis of 1997/8.
Given there is no doubt who caused our world‘s latest troubles, it should adopt its logical name: the
western financial crisis. This reluctance to call a spade a spade reflects an inability to reckon with changes
the US and Europe have to make to avoid a repeat. This worries the rest of the world, and Asia in
particular – even if western leaders are shockingly unaware of how they are viewed.

Before this crisis Asian policymakers deferred towards their western counterparts. We assumed the west
knew best on finance and economics. The enormous blunders since committed by the US and Europe
mean deference has been replaced by disquiet. There is a simple reason why the west has not noticed:
Asians are too polite. Sometimes it takes a relatively rude Asian, like me, to express our continent‘s true
feelings.

Fortunately, a few others have begun to speak out. Rakesh Mohan, the ex-deputy governor of the
Reserve Bank of India, noted the ―global financial crisis has had its roots in the US‖. Andrew Sheng, chief
adviser to the China Banking Regulatory Commission, strongly criticised US banks and regulators, saying:
―When our teachers are no better than us, we really have to think for ourselves.‖ Top Chinese bank
regulator Liu Mingkang has said of US financial reform that ―after the death, the doctor came‖.

These sentiments are now shared across Asia. Indeed, if the Thais and Indonesians did not come from
inherently polite societies, they would say to the US and Europe: ―The time has come for you to
administer the same bitter medicine you prescribed to us: stop living beyond your means.

Asia‘s concern is that the world will soon come to grief if both the US and Europe fail to make fundamental
readjustments. An America that tightens its belt will cause the rest of the world pain, as US consumption
and imports diminish. But there is no painless solution: only when America gets its house in order can
Asia hope for a more sustainable future.

By contrast, an America that blunders onwards with quantitative easing in the hope of reviving its
economy creates enormous global instability. Europe, meanwhile, is not faring much better. As Harvard
economist Kenneth Rogoff has written: ―Eurozone macroeconomic policy is incoherent on so many levels,
it is hard to know where to begin.

What must be done? Domestically, the US must cut spending and raise taxes, no matter how politically
difficult. Europe must resolve its flawed monetary union – with the overhaul of its bail-out fund and the
rewriting of Germany‘s post-Maastricht ―grand bargain‖ with the periphery a necessary start.

Internationally, Asia needs the US and European Union to take a more assertive role co-ordinating
financial regulation. The failure of recent meetings of the Group of 20 leading economies shows both are
still unwilling to make sacrifices. Next time they must show they can produce regulatory reforms
sufficiently strong and internationally coherent to prevent a re-run of the global financial crisis, even if it
hurts their own interests to do so.

America and Europe can again help to shape the world. But they must not focus on scapegoats, such as
China‘s currency. Yes, it needs to be revalued, but even if it rises by 20 per cent it will not change their
fortunes. Only fundamental restructuring within their own borders can do this.

Most fundamentally, we need an end to the pretence that the US and EU are masters of the universe.
Both must learn to share power. This means specific reforms, for instance on voting rights at the
International Monetary Fund. We also need altered attitudes that accept Asians as equals. Only with such
changes will results come in the Doha round, climate change negotiations or monetary co-ordination.

What truly frightens many Asians is that western leaders are still unwilling to tell their populations the hard
truth – that the world has changed. Their nations must now experience the pain of readjustment they once
prescribed to others.

The writer is dean of the Lee Kuan Yew School of Public Policy, NUS, and author of The New Asian
Hemisphere.

 
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