Quotulatiousness

July 24, 2011

No, that’s not suspicious at all . . .

Filed under: China, Government, Technology — Tags: , , , , , — Nicholas @ 11:39

. . . when you use backhoes to bury the wreckage before determining the cause of the high speed rail crash:

The wreck on Saturday night killed 35 and injured 210 after a high-speed train lost power for more than 20 minutes and then was rear-ended by another train, according to the Xinhua news agency. Six cars derailed and two fell off a viaduct near the city of Wenzhou.

[. . .]

Photos on the popular Weibo microblogging service showed backhoes burying the wrecked train near the site. Critics said the wreckage needed to be carefully examined for causes of the malfunction, but the railway ministry said that the trains contain valuable national technology and could not be left in the open in case it fell into the wrong hands.

Foreign companies maintain that some crucial technology was stolen from their imported trains. But more importantly to domestic audiences is the perception of a coverup. Initial reports of how the accident occurred are already being partly contradicted by reports in the official media.

July 19, 2011

Murdochphobia

Filed under: Britain, Media, Politics — Tags: , , — Nicholas @ 10:06

Brendan O’Neill says that the current Murdoch-bashing spree appears to be the only game in town for politicians and journalists right now:

Judging from recent comments made by politicians and journalists, you could be forgiven for thinking that Britain had liberated itself from foreign occupation. ‘Like political prisoners after a tyrant has been condemned to death by a people’s tribunal, [our politicians] are at last free’, gushed one commentator. A Lib Dem spokesman described MPs emerging ‘into the sunlight like the freed prisoners in Beethoven’s opera, Fidelio’. Labour leader Ed Miliband says the whole ‘psyche of British politics has changed’.

Wow. Was a secret Nazi cabal exposed and expelled? Did a brave Mili-band of brothers see off an invading army at Dover? Not quite. What happened is that some journalists and the Twittertariat had a pop at Rupert Murdoch. And, under intense pressure, Murdoch closed his Sunday tabloid, the News of the World, and sacked some people. That’s about it. The ‘people’s tribunal’ is actually the Guardian editorial board, and the ‘political tyrant’ who was ‘condemned to death’ is an octogenarian Aussie who was forced to give up his BSkyB bid. Britain freed from tyranny? Sticking with the wartime rhetoric: never in the history of mankind has so much BS been spouted by so many journos.

The notion that the cultural harrying of Murdoch has made British politicians ‘free at last’ — thank God almighty, free at last! — is based on two problematic ideas. First, that British politics was, until last week, dominated by Murdoch. And second, that the muddying of Murdoch’s name will allow our politicians finally to speak honestly and with conviction once more. Neither of these things is true. The fact that so many commentators believe they are reveals a great deal about the parlous state of public debate.

June 29, 2011

Corruption as a catalyst for rebellion?

Filed under: Bureaucracy, Germany, Government, Politics, Russia — Tags: , , , — Nicholas @ 07:26

Austin Bay points out that better communications have been important elements in the “Arab Spring” and other populist protests in the world right now, but there’s another element joining them together:

What links the Arab Spring rebellions with political agitation in China and at least another five dozen simmering or emerging crises?

If your answer is “the Internet,” you have identified one of the key information technologies that spread the flames. However, the common human fire in these disparate struggles is intense disgust with embedded corruption.

Tyrants maintain control by isolating and intimidating their subjects. However, since the advent of the printing press and increasing public literacy, preserving tyrannical isolation has become a bit more difficult.

Over time, subjects become aware of social, cultural, economic and political alternatives to the despot’s rule, despite the despot’s propaganda. Just how deeply West German television influenced East German resistance to communism is debatable, but the Iron Curtain could not hide the overwhelming evidence of Western affluence and the West’s ability to occasionally remove corrupt leaders.

Communist elite corruption amidst systemic economic failure certainly influenced resistance throughout Eastern Europe and the Soviet Union. The special stores and vacation homes enjoyed by Communist Party favorites infuriated workers denied similar access. East European workers knew that they were industrialized serfs in handcuffed societies falling further and further behind Western European nations. In 1989, when the Russians concluded the Eastern European security forces could not — or would not — shoot everyone, the Berlin Wall cracked.

June 21, 2011

Chinese high speed trains to run slower than planned

Filed under: China, Technology — Tags: , , , , — Nicholas @ 13:02

They’ll still qualify as high speed trains, but they’ll only travel at speeds up to 250kph instead of the 385kph they were designed to achieve. The problem is safety concerns:

The Chinese government has announced a significant lowering in the top speed its hallmark Beijing-to-Shanghai high-speed train will be allowed to run at when it opens later this month after a review of safety, shoddy workmanship and corruption.

The new service halving the 10-hour rail travel time between China’s political and business centres was meant to be the flagship project of a massive $400-billion program to give the country the most extensive bullet train network anywhere.

But the announcement last week by the Railway Ministry that trains on the new line will only be permitted to run at about 250 kilometres per hour instead of the projected 380 km/h has taken the bloom off the opening.

The restriction follows a review by officials stemming from the sacking in February of the railway minister, Liu Zhijun, and the deputy chief engineer of the department, Zhang Shuguang.

The concerns about safety are not at all unwarranted:

Contractors are said to have skimped on using expensive hardening agents when making the concrete for the rail bases. These ties are predicted to crumble within a few years. And there is said to have been a similar shortage of strengthening ingredients included in the concrete used to build bridges and their supporting columns.

A high speed train requires the right-of-way to be engineered to a much higher standard than ordinary passenger or freight rail lines. If too many corners have been cut in this construction, it would be insane to allow the trains to run at full speed until the entire line has been inspected, tested, and problems addressed. If there were even greater “economies” taken during construction, it might not be safe to run the trains at any speed.

And what’s a story like this without a bit of trash-talking from a rival high speed railway operator:

“The difference between China and Japan is that in Japan, if one passenger is injured or killed, the cost is prohibitively high,” he said. “It’s very serious. But China is a country where 10,000 passengers could die every year and no one would make a fuss.”

That’s a quote from the chairman of Central Japan Railway, which runs the Tokyo-Osaka Shinkansen service.

June 9, 2011

Whistleblowers must take a number and wait to be served

Filed under: Bureaucracy, Economics, Law, USA — Tags: , , , — Nicholas @ 09:21

Edward Siedle, foolish man, takes the Securities and Exchange Commission at their word:

Last Friday afternoon I got it into my head that I should try to contact the head of the SEC’s new whistleblower office and discuss a money manager scam I’d uncovered. Surely, I figured, in this post-Madoff era the SEC must be rolling out the red carpet for those looking to clue it in on financial shenanigans.

On the SEC’s home page, at www. sec.gov I found a new button that says “Questions, Tips and Complaints Whistleblower Provisions.” The bureaucrats behind this nifty new feature were so prescient that they even included a picture of a whistle for the convenience of illiterate snitches.

But he’s in a hurry, and doesn’t want to just fax or email the information — he wants to talk to a human being. That’s where it gets amusing/alarming depending on your view of government:

I got the number of the SEC’s media office from the folks at Forbes and called it. I asked the person who answered for the number of the SEC’s new office of the whistleblower.

“There is no new office of the whistleblower,” I was told.

“Can l please have the number of the head of the office then,” I asked.

“There is no new head of the office and there is no office,” the woman told me in a tone that she appeared to have honed while humoring morons.

“Now wait a minute,” I said, “I read an article about the new guy who is running it. He’s a former tobacco lawyer or something. I know his name … it’s McKessy or something like that.”

My handler laughed and said, “So you believe everything you read?”

H/T to Tim Harford, who linked to this article saying “Adapt emphasises whistleblowing as a way of uncovering hidden problems in fragile systems. Therefore: HEADDESK”.

Adapt, of course, is Harford’s latest book, which I quite enjoyed reading and recommend to your attention.

June 5, 2011

Surely this “cure” is worse than the “disease”?

Filed under: Law, Liberty, Middle East, Religion — Tags: , , , — Nicholas @ 11:25

John Perry Barlow retweeted a link to this Kuwait Times post:

A female political activist and former parliamentary candidate has recommended the introduction of legislation to legalize the provision of enslaved female concubines for Muslim men in Kuwait in a bid, she says, to protect those men from committing adultery or corruption.

The activist, Salwa Al-Mutairi, suggested apparently seriously in a video broadcast online that she had been informed by some clerics that affluent Muslim men who fear being seduced or tempted into immoral behavior by the beauty of their female servants, or even of those servants ‘casting spells’ on them, would be better to purchase women from an ‘enslaved maid’ agency for sexual purposes.

She suggested that special offices could be set up to provide concubines in the same way as domestic staff recruitment agencies currently provide housemaids.

June 2, 2011

When shipyards produce pork instead of effective ships for the Navy

Filed under: Military, Politics, USA — Tags: , , , , — Nicholas @ 12:07

Shipbuilding for the navy has traditionally been a good source of pork for politicians to dole out as their political fortunes require. The US Navy is having monumental problems with the quality of ships, but the problem isn’t easy to fix:

The U.S. Navy continues to have serious problems with shoddy shipbuilders. The latest incident involved a support ship, the 12,000 ton, 172 meter (534 foot) long radar ship, the Howard O. Lorenzen. The ship recently failed its acceptance tests. The Lorenzen was built to carry a special, billion dollar, radar used to track ICBM tests. This tracking activity also supports verification of missile and nuclear weapons treaty compliance. The Lorenzen replaces a similar ship that is over 30 years old. The acceptance tests found serious problems with the steering, electrical system, damage control, anchor control, and aviation (helicopter) facilities. The yard that built the Lorenzen, VT Halter Marine, builds military and civilian ships, and has had problems with some of the other military ships it has built recently. Like the Lorenzen, the other ships were late, over budget and suffered quality control problems.

[. . .]

While the admirals are correct in blaming the shipyards for many of the problems, the navy shares a lot of the blame as well. It is, after all, the navy that draws up the contracts, and supplies inspectors during construction. However, inspectors are regularly deceived and lied to (about the quality of work and supervision and known defects being fixed). While Congressional interference can be blamed as well, in the end, it’s the navy that has the most to say, and do, about how the ships are built. The problem is, admirals who stand up and take on the contractors and politicians put their careers on the line. The ship builder deploys a large number of lobbyists and has many key politicians as allies.

[. . .]

The problems with nuclear subs and carriers were minor compared to the LPD 17 travails. Still, the sheer extent of the problems, across so many ships, is very disturbing. This may be why a growing number of admirals are willing to take career risks, and try for some fundamental reform, and finally fix the “system” that turns out more problems than warships. Victory is not assured. The shipyards and their suppliers have powerful allies in Congress. All that money translates into votes that gets incumbent politicians reelected. Congress is not inclined to attack this kind of patronage and pork, since nearly all members of Congress depend on it. The admirals can openly complain, but offended legislators can quietly cripple the careers of those critics. The smart money is betting against the good guys here. So far, the smart money is right. But the bad builder mess is so vast, expensive and messy that even many politicians are calling for some fundamental changes.

The poster children for defective ships is the San Antonio LPD 17 class of amphibious ships.

May 24, 2011

Bribery: Canada ranked below international pariahs Australia, Hungary, and New Zealand

Filed under: Australia, Cancon, Economics — Tags: , , — Nicholas @ 10:21

Apparently, Canadian businessmen pass out bribes like business cards, and we’re accused of being the only G7 nation to fail to crack down on the practice, according to Transparency International:

Canada has again been scolded on the international stage for its “lack of progress” in fighting bribery and corruption by a watchdog agency that ranks it among the worst of nearly 40 countries.

Transparency International, a group that monitors global corruption, put Canada in the lowest category of countries with “little or no enforcement” when it comes to applying bribery standards set out by the Organization for Economic Co-operation and Development.

[. . .]

The poor rating places Canada in the embarrassing company of countries like Greece, Hungary, the Slovak Republic and Slovenia — although New Zealand and Australia are also among the 21 countries in the bottom rung.

<sarc>Well, there goes our sterling reputation for international dealings. We might as well order in 30 million black hats now.</sarc>

April 26, 2011

Americans really are jaded about their politicians

Filed under: Politics, USA — Tags: , , — Nicholas @ 08:59

A survey from Rasmussen shows that many Americans think of their political representatives as little better than scum:

Mark Twain once said, “It could probably be shown by facts and figures that there is no distinctly native American criminal class except Congress.” A large number of Americans share that skepticism.

A new Rasmussen Reports national telephone survey finds that 43% of the nation’s voters believe that most members of Congress are corrupt. Only 27% disagree and doubt that most national legislators are that dishonorable. Thirty percent (30%) are not sure.

Interestingly, there’s little difference of opinion on this question between Republicans and Democrats. But voters not affiliated with either of the major parties are more doubtful: 51% think most members of Congress are corrupt.

That’s got to be an affront to the honest politicians . . . the other 91% are giving them a bad reputation:

Only nine percent (9%) of voters now say Congress is doing a good or excellent job. Fifty-six percent (56%) rate its performance as poor.

April 18, 2011

The real secret weapon of the “China economic miracle”

Filed under: China, Economics, Government — Tags: , , , , — Nicholas @ 10:35

Chriss W. Street thinks the Chinese banks are about to suffer a crisis moment:

It is ironic that China is demanding greater control of the World Bank and International Monetary Fund, just as the nation’s banking system is about to be devastated by the white hot flames of inflation.
From a distance, China’s economy seems to be the poster child of sustainable growth. Recent government reports show the economy expanding by 9.7%, retail sales up a blistering 17.4%, foreign reserves at $3 trillion, and inflation only 5.4%. But these statistics mask a dark side; Chinese communist authorities have been artificially holding down fierce inflationary pressures by subsidizing consumer prices.

[. . .]

The less known and far more important secret-weapon of the “China Economic Miracle” is the absolute control of the banking industry by China’s four largest state-owned banks (“SOB”); Industrial and Commercial Bank, Agricultural Bank, People’s Bank of China and Construction. Since the government does not provide adequate social welfare programs and restricts its citizen’s investment options to bank accounts, about 40% of Chinese household income is deposited in SOBs each month. The SOBs then leverage the deposits by ten times and loan 75% of this massive amount of cash at extremely low interest rates to state-owned-enterprises (“SOE”). The other 25% of lending is allocated to real estate development.

China is no stranger to bankers making risky loans to communist party officials and their crony real estate developers. During the Asian Financial Crisis of the mid-1990s, it is estimated that 40% of all SOB loans were non-performing and most were written off. The Chinese paid for the SOB losses with a 76% devaluation of their currency that crushed the people’s buying-power by 76%. From 1997 to 2004 Chinese frivolous lending was somewhat restrained, but since 2003 the bureaucrats have mandated a massive expansion of lending. In comparison to the U.S. and Europe where bank lending is flat, SOBs have been expanding loans by 25% annually.

H/T to Jon for the link.

April 11, 2011

Election bombshell in leak of Auditor General’s report?

Filed under: Cancon, Government, Law, Media — Tags: , , , — Nicholas @ 13:01

The Winnipeg Free Press has a potentially explosive article about a leak of part of the Auditor General’s report:

The Harper government misinformed Parliament to win approval for a $50-million G8 fund that lavished money on dubious projects in a Conservative riding, the auditor general has concluded.

And she suggests the process by which the funding was approved may have been illegal.

The findings are contained in the draft of a confidential report Sheila Fraser was to have tabled in Parliament on April 5. The report analyzed the $1-billion cost of staging last June’s G8 summit in Ontario cottage country and a subsequent gathering of G20 leaders in downtown Toronto.

It was put on ice when the Harper government was defeated and is not due to be released until sometime after the May 2 election. However, a Jan. 13 draft of the chapter on the G8 legacy infrastructure fund was obtained by a supporter of an opposition party and shown to The Canadian Press.

This could be the big break that the opposition parties have been waiting for: the leak is just about perfectly timed for maximum effect (just before the first debate), and the Auditor General has refused to discuss the news story or to give any interviews during the election campaign.

April 5, 2011

China’s High Speed Railways: not for the masses

Filed under: China, Government, Technology — Tags: , , , , — Nicholas @ 12:07

Reports of corruption among top officials and soaring costs for China’s HSR network:

. . . question-marks have been raised over these plans after the sacking in February of Liu Zhijun, the minister responsible for building the high-speed network. He was accused of skimming off as much as 1 billion yuan ($152m) in bribes and of keeping as many as 18 mistresses. Zhang Shuguang, another top official in the railways ministry, was later dismissed for corruption. Separately, on March 23rd, state auditors reported that $28m had been embezzled from the 1,300km high-speed line between Beijing and Shanghai, the highest-profile of China’s many rail projects.

Public support for high-speed trains is muted. The trains may reach 350km per hour but fares are proportionately eye-watering. That is all right for well-heeled travellers, happy to have an alternative to flying. But tens of millions of poor migrants who work far afield and flock home for the Chinese new year are being priced out the rail market and have to go by bus (the number of bus journeys is soaring).

The sacking of top officials may be the result merely of one of China’s periodic anti-corruption campaigns. Or it may be the upshot of a high-level factional or personal battle, in which corruption charges are often a favourite weapon. If so, the dismissals would not necessarily affect railway development.

The Wikileaks view of Indian politics

Filed under: Government, India, Media, Politics — Tags: , — Nicholas @ 09:03

Pankaj Mishra talks about the ongoing release of information on India and the political and mercantilist string-pullers who infest every government function:

Food prices become intolerable for the poor. Protests against corruption paralyse the national parliament for weeks on end. Then a series of American diplomatic cables released by WikiLeaks exposes a brazenly mendacious and venal ruling class; the head of government adored by foreign business people and journalists loses his moral authority, turning into a lame duck.

This sounds like Tunisia or Egypt before their uprisings, countries long deprived of representative politics and pillaged by the local agents of neoliberal capitalism. But it is India, where in recent days WikiLeaks has highlighted how national democratic institutions are no defence against the rapacity and selfishness of globalised elites.

Most of the cables — being published by the Hindu, the country’s most respected newspaper in English — offer nothing new to those who haven’t drunk the “Rising India” Kool-Aid vended by business people, politicians and their journalist groupies. The evidence of economic liberalisation providing cover for a wholesale plunder of the country’s resources has been steadily mounting over recent months. The loss in particular of a staggering $39bn in the government’s sale of the telecom spectrum has alerted many Indians to the corrupt nexuses between corporate and political power.

February 18, 2011

The internet in China: hidden powers of persuasion

Filed under: China, Government, Technology — Tags: , , , , — Nicholas @ 08:52

A look at how the internet in China has the power to (sometimes) punish corrupt officials and influence the government:

Corruption and viral marketing has provided the Chinese government with a powerful tool for controlling public opinion. It all began when Chinese companies realized that they could hurt competitors by planting damaging rumors on the Internet. This, even in China, is illegal. But the corruption in China being what it is, there was little risk of getting the police to hunt down and punish the perpetrators. This was partly because the marketing firms, hired by companies to burnish their image, or defame competitors, was careful to have other small outfits get on the Internet to actually do the work, and be careful to not be traceable. So the cops, when forced by companies to do something (often because the owner of the offended firm was well-connected politically), were stymied at first. But the police, declaring it a national security issue, eventually discovered how this was done. But this did not stop all these negative campaigns. To defend themselves, companies that were attacked by these Internet disinformation campaigns, fought back.

This use of negative tactics soon fell out of favor, as all those tarnished companies lost sales. So these Internet based opinion manipulation turned to praising your own products. About this time, the government discovered what was going on, and began to use these marketing companies, and their subcontractors, to change opinions towards government policies. There was a pressing need for this, because all this Internet opinion manipulation had started out, over the last decade, as a popular uprising against government corruption, mistreatment and media manipulation. This “online army” was not organized, except by outrage at government, or individual, wrongdoing. For example, many government officials, and their high-spirited offspring, injure or steal from ordinary citizens, and get away with it. These officials have enough political clout to make the police leave them alone. But once the online army gets onto these stories, everyone in the country knows, and is angry. There are over 400 million Internet users in China, a country of 1,400 million. When a lot of people on the Internet get angry enough, the story, and anger, explodes through the Chinese Internet community. China carefully monitors Chinese Internet use, and tries to block unwelcome information or discussions. But when the outrage on a particular item becomes too large, it’s better to just arrest and punish the guy whose misbehavior got the online army going in the first place.

Who knew that sockpuppeting would be such a valuable online tactic in China? It might not just be limited to China, however:

If the Chinese wanted to use this tool in other countries, they would require posters who are familiar with the language and culture of the target population. That’s difficult skill to acquire, especially for at least a few hundred posters required (to hit, regularly, hundreds of message boards, chat rooms and so on). Done right, you can shift opinions among millions of people in a few days. Done wrong, you fail. And if you’re operating in a foreign country, you might get found out. But the opportunity is there.

February 17, 2011

Victor Shih interview on China’s economy

Filed under: China, Economics, Military, Politics — Tags: , , , , — Nicholas @ 07:35

The Browser interviews Victor Shih:

What do people get most wrong when they think of the Chinese economy?

The biggest misperception about China is that it’s a dynamic market economy — it isn’t. It’s a fast-growing, state-dominated economy with some dynamic, private-market aspects. If you look at investment, a main driver of growth, much of it is going to state-owned enterprises (SOEs) or shareholding companies dominated by state entities. Or it’s going directly to government investments carried out at a central or local level. The misperception has abated recently following Richard McGregor’s book on the Chinese Communist Party. People are realising that the party is still behind much of what happens in China.

[. . .]

Your first choice is Yasheng Huang’s Capitalism with Chinese Characteristics. I believe this book successfully demolishes the idea that China is developing a new economic model called ‘market authoritarianism’.

I think Yasheng goes a little too far with some of his claims. But the broad outline is correct. There was a period of healthy organic growth in the 80s, driven by the de facto private sector. Many township and village enterprises were collectives or owned by the local government. But in reality they were private enterprises. This changed in the mid-90s, especially with the adoption of the ‘grasping the large and letting the small go’ policy that circumvented the special interests in the state sector. When Deng Xiaoping was alive, his executive vice premier, Zhu Rongji, wanted to bankrupt or merge many of the smaller state-owned enterprises into larger ones. It was a political tactic to further reform. And it worked.

The problem was that it created these giant, state-owned enterprises. Recent statistics reveal the state sector made a profit of 2 trillion renminbi last year, of which the 122 largest SOEs made 1.35 trillion. They have combined assets of over 10 trillion dollars and have become an enormously resourceful and powerful interest group. Their CEOs have numerous ties with top political leaders and sit on the party’s central committee. Most bank loans, issued bonds and stock-listing proceeds in the system go to these conglomerates. There’s still a private sector but it has been squeezed tremendously, especially in the last two years.

[. . .]

Most investment bankers like to talk things up, but that’s not something we can accuse Carl of doing.

By the late 90s, China’s banks were technically insolvent because the non-performing loans ratio was 40 to 50 per cent. Carl’s still a big fan of Zhu Rongji, the former prime minister. One of Zhu’s greatest achievements was to ‘solve’ the problems in the banking sector by setting up asset-management companies and recapitalising the banks. Today, of course, the banks are still lending very recklessly despite a lot of reform — the formation of credit and risk-management committees, for example. The banks continue to require bailouts and recapitalisation from the Chinese government, which props them up so that they can sell these bank shares to the public in Hong Kong or Shanghai. Carl sees this process as a kind of Ponzi scheme.

« Newer Posts — Older Posts »

Powered by WordPress