East / Southeast Asia's Demographic Bifurcation

♠ Posted by Emmanuel in ,, at 9/30/2013 05:49:00 AM
There's are always interesting demographic discussions about the "West and the Rest," but there are also interesting demographic variations within regions.Take the Asia-Pacific: While Japan is emblematic of the problems with a shrinking population, it will soon be joined in that situation by a number of East Asian neighbors absent large rises in fertility or large-scale inward migration:
"Japan was largely the only country that was aging and shrinking in terms of its labor force and population in the previous decade. But in the coming decade, several Asian countries – including China, South Korea, Hong Kong [...] will see their labor forces shrink. This will have important implications for GDP [gross domestic product] growth, consumer spending and asset prices, judging from Japan's experience..."

Japan is home to the fastest aging population in the world, with almost a quarter of its population over the age of 65. The country has struggled with sluggish growth stemming from a shrinking workforce, which has put pressure on the government to boost productivity levels.
OTOH, you have the more demographically promising Southeast Asian countries that have not yet reached a similar stage in the demographic transition as their wealthier northern neighbors:
The U.N. sees the working-age population in Indonesia and the Philippines peaking in 2058 and 2085 respectively, later than previously anticipated. At the same time it brought forward forecasts for other Asian countries including China, where the working-age population is expected to peak in 2015, and its total population, currently around 1.3 billion people, is seen decreasing after 2030.

BofAML's Chua says demographics are useful indicators of real GDP growth, noting a strong correlation between changes in working-age population and growth in the real economy over the past decade (2002-2012). 
To be sure, demographics alone do not drive economic growth. However, Japan's example does illustrate the pitfalls to having too few working-age people going forward. Previously marginalized as development laggards, more are taking notice of Indonesia and the Philippines as investment opportunities partly for demographic reasons. 

Rousseff+Lula Double Act Unloads on US Net Spying

♠ Posted by Emmanuel in ,, at 9/27/2013 10:14:00 AM
Cybersecurity is not an end unto itself; it is instead an obligation that our governments and societies must take on willingly, to ensure that innovation continues to flourish, drive markets, and improve lives. - Barack Obama [really]

It's been a busy time for followers of Internet governance as Brazil's president and her immediate predecessor unloaded both barrels at the United States' extreme abuse of its dominant position in the World Wide Web's infrastructure. Dilma Rousseff captured global attention not only by snubbing the White House's invitation for a state visit, but more recently by crucifying the double-talking American louse at the United Nations General Assembly.

[I] Here is the key part of her speech where she calls for the much-needed multilateral governance of the Internet to avoid rehashes of Americans spying on world leaders as well as you and me:
The problem, however, goes beyond a bilateral relationship. It affects the international community itself and demands a response from it. Information and telecommunication technologies cannot be the new battlefield between States. [The time] is ripe to create the conditions to prevent cyberspace from being used as a weapon of war, through espionage, sabotage, and attacks against systems and infrastructure of other countries.

The United Nations must play a leading role in the effort to regulate the conduct of States with regard to these technologies. For this reason, Brazil will present proposals for the establishment of a civilian multilateral framework for the governance and use of the Internet and to ensure the effective protection of data that travels through the web.

We need to create multilateral mechanisms for the worldwide network that are capable of ensuring principles such as:

1 – Freedom of expression, privacy of the individual and respect for human rights.
2 – Open, multilateral and democratic governance, carried out with transparency by stimulating collective creativity and the participation of society, Governments and the private sector.
3 – Universality that ensures the social and human development and the construction of inclusive and non-discriminatory societies.
4 – Cultural diversity, without the imposition of beliefs, customs and values.
5 – Neutrality of the network, guided only by technical and ethical criteria, rendering it inadmissible to restrict it for political, commercial, religious or any other purposes.
[II] Less noticed is a recent interview with Hindu News of former Brazilian President Lula. (Alike his country's soccer stars, he seemingly goes by one name.) For better or worse, he and his handpicked successor will forever be entwined alike Putin and Medvedev or Chavez and Maduro. While leaving Rousseff to steal the limelight at the UN, he nevertheless two put in his two cents' worth, as the Yanquis would say:
The U.S. president should apologise to the world for thinking that it can control global communications and ignore the sovereignty of other countries. The U.S. can’t just capture the activities of India, Brazil, China and several other countries. This is very serious. We need to force the United Nations to make a decision on this. Where is the security in the world today, with the U.S. intelligence agency snooping on everything? Where is the confidence in mobile communication or emails? When the NSA revelations came out, the U.S. vice-president (Joe Biden) called Brazil to apologise. It’s not the vice-president who has to apologise, it’s the U.S. president who should apologise to us. What would happen if the U.S. was target of spying? Now, they can steal any information and industrial secrets; they have access to information of our scientists. It means the end of freedom within the territory of a nation state [...]

The independence and economic growth of countries such as India and Brazil seem to bother the U.S, which is now committing a crime against democracy. The argument that they are doing this to take care of the security of other countries is absurd. Nobody asked them to do so. Nobody hired the American espionage system. Democracy is less democratic if one nation has the power to intervene in others. 
Be a man, Barack. Own up to your nation's cowardly actions and welcome those to make Internet governance better reflect its changing user base.

Make a Killing? US FTAs and Big Tobacco

♠ Posted by Emmanuel in ,, at 9/26/2013 10:39:00 AM
There is a debate surrounding the pending Trans-Pacific Partnership expansion about whether participants' policies aimed at curbing tobacco use will be dismantled in the name of free trade. Large American tobacco companies--collectively known as "Big Tobacco"--have certainly not shied away from using texts of trade liberalization measures in faulting curbs to their unfettered access to emerging markets.  Outgoing New York Mayor Michael Bloomberg has been especially vocal about what he believes is a major assault on global health led by the United States.

As per current TPP drafts, some argue that negotiating LDCs will be made to relent on the sorts of public policies that have proven effective Stateside in reducing smoking:
The proposal put forward by the US Trade Representative (USTR) last week in Brunei would reduce prices for US tobacco in low- and middle-income countries and make it more difficult for these countries to enforce anti-tobacco policies like package warnings and advertising and marketing restrictions.   This proposal would impact the nine TPP countries – Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States -- six of these fall into the World Health Organization’s Western Pacific Region, which had the highest smoking rate among men in 2009. 

To put the implications of this proposal into perspective, consider these two points: Tobacco use caused 100 million deaths in the 20th century.  If current trends persist, it is projected to cause 1 billion deaths in the 21st century.  More than 80% of those future tobacco-related deaths will occur in low- and middle-income countries (LMICs). Tobacco use in the United States is steadily declining, due largely to widespread anti-tobacco campaigns and stringent anti-smoking policies – the same kinds of policies that the TPP will make difficult to enforce in developing countries.

So, why is the US effectively hindering the export of its good anti-tobacco policies to the LMICs that need them most?  A few key issues have risen to the surface during this debate. A “carve-out” for tobacco – where tobacco would simply be excluded from the terms of the TPP agreement – was proposed by Malaysia and makes sense. But the USTR worries that a carve-out would set a precedent that could be used to block a variety of other US exports on health grounds.
In other words, how exceptional is tobacco based on health grounds? The fear is that all sorts of products would be excluded by other countries and dilute the FTA. Left unresolved, the tobacco issue may even spoil TPP negotiations altogether:
The White House has tried to finesse the issue, recently proposing that the TPP agreement acknowledge tobacco as a health concern but otherwise treat it no differently from other products. That compromise has satisfied no one. Health advocates are furious that the White House dropped its previous proposal for a stronger tobacco control exception in the TPP agreement. The business community opposes any special treatment for tobacco. With that controversy spilling into the press and threatening the conclusion of the TPP talks—the Obama administration's signature international economic initiative [...]

As the tobacco industry's tactics on trade shifted, the controversy reignited. Tobacco companies began using trade and investment agreements to file legal challenges to block new cigarette labeling and advertising restrictions. Australia is fighting four different trade and investment cases against its cigarette packaging law. Similar cases have been filed against Norway and Uruguay and threatened against Togo. Investment disputes are expensive and the outcomes can be unpredictable. Many developing countries do not have the expertise or resources to fight. Even New Zealand and Canada backed away from planned tobacco regulations in the face of litigation threats.
 Thomas Bollyky of the CFR's suggestions in making a limited exception seem to make sense:
  • This exception must explicitly encompass the full range of tobacco control measures addressed under the Framework Convention on Tobacco Control and permitted under U.S. laws.
  • This exception should be limited to nondiscriminatory tobacco control measures. An exemption from legal challenge cannot serve as a pretext for TPP countries to favor domestic cigarette producers. This condition is consistent with overall U.S. trade policy and the terms of the 2001 U.S. executive order on tobacco and trade.
  • This exception must not include the cross-reference that exists in most U.S. trade agreements to the health exceptions in World Trade Organization agreements. Such references might inappropriately interfere with tobacco litigation already filed under those other agreements against Australia and other TPP countries.
My take is that fair warning is appropriate concerning the possible effects of cigarette smoking and ought not to be sacrificed to a distortion of the term "liberalization." Consumer interests are not well-served by hiding the facts about the health consequences of cigarette smoking and arguing otherwise is a sham. Smoke if you must, but do so while knowing the possible consequences.

Add this to the already lengthy list of obstacles to TPP. 

Singapore Needlessly Discriminates Against Expats

♠ Posted by Emmanuel in , at 9/25/2013 04:30:00 PM
The cute (and very rare) Singapore baby
Here's another interesting feature about the politics of migration being waged right here in Southeast Asia. One of the reasons why the People's Action Party of (PAP) Singapore lost 40% of the popular vote in the 2011 elections is frustration over foreigners purportedly taking away plum jobs, scarce housing and using public services, leaving its citizens to seethe. It even seems its losses are widening. In response, the PAP has ushered in curbs on hiring foreigners--a "Singapore for Singaporeans" sort of policy. With anger not yet subsiding, the government is now seeking to advertise openings first to locals as a policy response:
Singapore will widen foreign-worker curbs to professional jobs as the government clamps down on companies that hire overseas talent at the expense of citizens, stepping up efforts to counter a backlash against immigration.

The Southeast Asian nation said yesterday it will set up a job bank where companies are required to advertise positions to Singaporeans before applying for so-called employment passes for foreign professionals. The unprecedented policy will target jobs that currently pay at least S$3,000 ($2,400) a month, an amount that will be raised to S$3,300 by January. 
In case you're curious, the unemployment rate in Singapore is 2.1%--3% for Singaporeans. While it is minuscule by Western standards, Singaporeans are apparently not keen to compare themselves with the old world:
The job bank will be set up by mid-2014, the Ministry of Manpower said in a statement yesterday. Companies with 25 or fewer employees will be exempt from the new rules, as well as jobs that pay a fixed monthly salary of S$12,000 or more, it said. The cap was set as that would include 95 percent of the local workforce, it said.

“This is a step up from the government’s efforts to tighten the quality and the quantity of the foreign worker inflows,” said Chua Hak Bin, an economist at Bank of America Corp. in Singapore. “We’re moving to another phase now where they’re looking to ensure that opportunities for the middle-income Singaporeans are maintained.”

The nation’s unemployment rate rose to 2.1 percent in the second quarter, with the resident jobless rate at about 3 percent. That “translates to 50,000, 60,000 Singaporeans without jobs,” Tan, the minister, said. “What the regime allows is that there may be a better matching of demand and supply” between companies and job-seekers, he said. 
At any rate, I am convinced that there is nothing structurally amiss with immigration to Singapore for the very simple reason that its total fertility rate is well below the replacement rate of 2.1 children per woman. It has not reached that level since 1976. Barring migrants wholesale would result in depopulation in quite short order since its current total fertility rate is 1.2:


My take is that there is currently slack in Singapore's mostly white-collar labor market due to a number of factors such as reduced hiring in service sectors alike banking post-global financial crisis. These will soon even out, though, easing complaints from locals that foreigners are "stealing their jobs" and so forth. Natalist policies haven't exactly born fruit.  Make no mistake: Singapore's real problem in the medium- to long-term is not having too many people, but having too few of them. (Cue Barbra.)

PS: Besides, isn't Singapore supposed to be the world's most adaptive nation?

Reasons to Doubt Trans-Pacific Partnership Expansion

♠ Posted by Emmanuel in at 9/24/2013 09:29:00 AM
There is an excellent compilation at the Financial Times as to why few expect a "high-quality" agreement to emerge from ongoing TPP negotiations. That is, one with few loopholes and opt-outs for different participants. Given the highly diverse interests of the twelve nations looking to expand this agreement--they range widely in levels of development, size and so on--it is thus unlikely that an agreement that pleases all will be concluded in the next few months. Or, an agreement may be struck, but one which features a bevy of loopholes and opt-outs catering to the special interests of each nation.

At any rate, here are four reasons to be pessimistic: 
  1. The TPP seeks much stricter protection of intellectual property than many want. Poorer countries fear that such provisions will make it more difficult for them to use cheaper generic drugs, potentially denying their populations access to life-saving medicines. More generally, strict enforcement of IP is judged to favour advanced countries at the expense of poor ones, which have traditionally absorbed technological advances through copying. To enforce IP rights in too draconian a manner is, say opponents, a victory for protectionism, not for free trade.
  2. The agreement seeks to regulate the role of state-owned enterprises, so that they do not enjoy unfair access to licences, contracts or state finance. This is seen as an assault on the sort of state capitalism in countries such as China. It is difficult, however, to see how meaningful rules could be imposed on Vietnam, a TPP member, where SOEs are used by senior Communist party officials as a cash cow for favoured projects and sometimes as personal piggy banks. Even Japan, where the Post Office is in state hands, and the US, which has Fannie Mae and Freddie Mac, may fall foul of some provisions. Temasek, the Singaporean sovereign wealth fund, is believed to be concerned that new rules could affect the performance of some of the companies in which it has invested. Malaysia’s bumiputra policies, which favour ethnic Malays in the awarding of state contracts, may also run counter to the TPP.
  3. The TPP calls for a controversial investor-state dispute settlement that would, theoretically, allow companies to sue governments if they believed they were being treated unfairly. Australia has argued that this would weaken sovereign power in favour of multinationals. Anti-fracking activists say such a mechanism would allow oil companies to sue local authorities for imposing strict environmental guidelines. Canada has raised concerns that cigarette companies could use the provisions to take governments to court over anti-tobacco regulations. In Malaysia, Anwar Ibrahim, the opposition leader, has characterised the TPP as an attempt by the US “to impose its brand of economic model” on unwilling countries. 
  4. As in every trade negotiation, each country is seeking exceptions for sensitive industries. Japan was allowed to join talks on the basis that it would drop its age-old agricultural protectionism. Yet when Japanese negotiators turned up to talks in Brunei in July, they sought exceptions for “five sacred” agricultural commodities: rice, wheat, beef, dairy products and sugar. Japan is by no means alone. Canada (and the US) want protection for their dairy industry in the face of strong potential competition from New Zealand. Vietnam wants an exception for its textile industry so that it can enjoy tariff-free access to the US while continuing to use yarn made in non-TPP countries, especially China. The sugar lobby is particularly vocal in the US. “There are a lot of areas where the US wants everyone else to change, but doesn’t want to change much itself,” says Jeff Schott at the Peterson Institute.
I've already mentioned agriculture before which I believe will ultimately prove to be the largest stumbling block. However, something unmentioned is the eccentric but enduring American complaint about the US auto industry's lack of access to the Japanese market despite producing unsuitable cars for use there [1, 2].

Venezuela Nationalizes Toilet Paper Factory

♠ Posted by Emmanuel in ,, at 9/23/2013 12:50:00 PM

"I am the Great MADURO", etc., etc.
[NOTE: For those unfamiliar with the "Beavis and Butt-head" reference, see here and here.] If this is an example of socialists taking over the "commanding heights" of the economy, I am at a complete loss for words. To me at least, toilet paper manufacturing as a strategic sector bog-gles the mind, but it may make sense in Venezuela. It is no big secret that the Chavistas have nationalized broad swathes of the Venezuelan economy. Supply problems? Central planning will solve them, free market be damned. From Economics 101, I was taught that price controls and import controls create rather than alleviate goods shortages. Apparently this stupid bourgeois logic holds no water in modern-day Venezuela. Silly me. Instead of relenting on government controls to remedy the supply situation for various goods including toilet paper, the ultimate solution apparently involves nationalizing these enterprises lock, stock and barrel. You got it--TP users of Venezuela, unite!
On Saturday, Vice President Jorge Arreaza announced the "temporary occupation" of the Paper Manufacturing Company's plant in the state of Aragua. The aim, he explained, is to review the "production, marketing and distribution (of) toilet paper [...] The People's Defense from the Economy will not allow hoarding or failures in the production and distribution of essential commodities," the vice president said. 

By the "People's Defense," Arreaza was referring to a government agency created on September 13 by President Nicolas Maduro to "defeat the economic war that has been declared in the country," according to a report from state-run ATV. This group is charged with looking at inefficiencies across various industries in the nation, including foods and other products, and taking action presumably in the South American nation's best interests.
For what it's worth, Venezuela's leaders see a conspiracy to hoard toilet paper--presumably to, ah, dump them when prices have risen sufficiently:
But the government has said private companies aren't doing their part, accusing them of hoarding their products in hopes of selling it later at a higher price. They've also suggested the problem is tied to a broader conspiracy. "There is no deficiency in production," Commerce Minister Alejandro Fleming said in May according to ATV, "but an excessive demand generating purchases by a nervous population because of a media campaign."
Be afraid. Be very, very afraid. To paraphrase Marx, the TP expropriators have been expropriated (or something like that).

US Now Sends More Immigrants to Mexico

♠ Posted by Emmanuel in , at 9/23/2013 12:05:00 PM
What would Cheech and Chong do about the United States now sending more migrants to Mexico than Mexico sends to the United States? That comedy act is stuck in a time warp where the supposedly backward Mexico always sends its unwashed masses to the United States in search of employment. So are today's uniquely Amerocentric debates about whether to give amnesty to illegal immigrants. Wake up to today's North American reality, boys and girls: On balance, the United States has sent more people to Mexico than vice-versa over the most recently recorded five-year period. The graphic above is from the New York Times, which also offers the thought-provoking companion article about how the real land of opportunity is Mexico:
Rising wages in China and higher transportation costs have made Mexican manufacturing highly competitive again, with some projections suggesting it is already cheaper than China for many industries serving the American market. Europe is sputtering, pushing workers away. And while Mexico’s economy is far from trouble free, its growth easily outpaced the giants of the hemisphere — the United States, Canada and Brazil — in 2011 and 2012, according to International Monetary Fund data, making the country more attractive to fortune seekers worldwide [...]

The shift with Mexico’s northern neighbor is especially stark. Americans now make up more than three-quarters of Mexico’s roughly one million documented foreigners, up from around two-thirds in 2000 [my emphasis], leading to a historic milestone: more Americans have been added to the population of Mexico over the past few years than Mexicans have been added to the population of the United States, according to government data in both nations.
In previous posts I've covered how Mexico is increasingly becoming the North American economic dynamo contrary to outdated beliefs that it is merely an entry route for drugs to the USA or a perennial source of migrants. The implications are meaningful and interesting. First, the emergence of Mexico as a manufacturing hub in the Americas challenges China's role as factory to the world given the latter's geographic disadvantage. Second, the US Census folks do not--and probably cannot--account for such migratory shifts as nearby countries become more progressive than the United States. Hence, expectations that declines in US birth rates will be more than compensated for by migration to the US are probably overstated. Detroitification or depopulation of the US is a very real threat if so. Third, it does bother me that the rest of the world so easily imbibes American prejudices about Mexicans when the latter hold the better cards in today's global political economy.

Make no mistake: the real Americans us folks from the developing world are better off emulating are probably those south of the border with their young, dynamic and manufacturing-savvy economy. Their football team may be doing poorly at the moment, but hey, I would readily forego the World Cup finals for a place at the top of the World Economy league table. Go south, young Yank, go south--but learn Spanish before you do.

Things change, my dear. At this rate I may be laughing my head off hearing Mexican policymakers debating what to do with all those Yanqui "illegals" in a few years' time.

Cola's Final Frontier: Coke v Pepsi in Myanmar

♠ Posted by Emmanuel in ,, at 9/21/2013 02:19:00 PM
He thought he was the King of America
Where they pour Coca-Cola like vintage wine

In 1986 Elvis Costello penned the lyrics above to the first song of his album King of America, "Brilliant Mistake." I thought it was pretty crafty way back when, but even then, the snobbery against drinking carbonated beverages was their cultural unsophistication as Costello intoned. Nowadays, of course, we are more concerned with the unhealthy amounts of sugar and caffeine they contain. Such concerns have caused cola consumption to steadily fall Stateside since 2005, but it remains a highly saturated market with the average American drinking a whopping 714 8 oz servings of carbonated beverages in 2012.

Supersaturation of the home market has caused both Coca-Cola and Pepsi to take on a two-pronged strategy. The first is developing ostensibly healthier drinks. The second, of course, involves going abroad in search of new or undersaturated markets. Reflecting the latter concern, it is unsurprising that the current heads of these venerable American brands are foreign-born and that they gained their reputations by growing business abroad: India-born Indra Nooyi has been Pepsi CEO since 2006 and Turkey-born Muhtar Kent has been Coca-Cola CEO since 2009.

Together they have been duking it out in cola wars waged around the world in a battle for carbonated supremacy. Compared to the 714 colas each American consumes, there is room for much sales (and waistline) growth elsewhere. Nowhere is this competition as intense in Southeast Asia as Myanmar. Returning to this market for the first time since Eisenhower was president after decades-long US sanctions were lifted. Coke finds challenges and opportunities in equal measure. While Pepsi was first to re-enter Myanmar last year, it has had to up its pace in market development with the entry of Coke by signing new bottling agreements. Over a third of Pepsi revenues are now in the developing world. OTOH, Coke's Muhtar Kent compares Myanmar opening up to the world to the fall of the Berlin Wall, and fellow MNC Unilever likens it to "another Vietnam" in terms of possible future returns. (Should we be glad that "Vietnam" is now shorthand for promising new markets as opposed to unpromising battlefields?)

The stage is thus set for another battle royale for the hearts and waistlines of the Burmese consumer. (Coca-Cola counters with CSR efforts on the latter point, though.)  Indeed, the only ones losing out economically may be domestic firms that grew during the years of international isolation (see the clip above). Local firms are going into a cost-leadership strategy from what I can tell while ceding the foreigner / upscale segments to the MNCs. Either way, there may be no greater beverage grab of this magnitude to come for years unless North Korea opens to the world, too.
***

NPR has a very interesting write-up concerning Myanmar's isolation: Coca-Cola went back to its promotional strategies during the 1800s to account for ways to gain product attention in a "media dark" environment:
[Southeast Asia Marketing Director Shakir] Moin says he started to go back in the Coca-Cola archives. He was looking at how the company marketed its product before the internet, before TV, even before radio. Eventually he found his perfect model for Myanmar, place where nobody knew anything about Coke — Atlanta, 1886.

Back then the hot advertising trend was wall posters. Moin noticed that in the beginning, Coke didn't use the posters to talk about friends or happiness or style. It talked about what the product tasted like. It simply described it. Moin pulled out two words in particular that would form the core of his Myanmar campaign — "delicious, refreshing." Those two words from the 1800s are now on the Myanmar bottle, and on the billboards and fliers that advertise the product.

Moin pulled another trick from the early days of Coke. They offered free samples. Samples has brought people into the pharmacy soda counters in Atlanta in 1886, now free samples attract crowds at Buddhist festivals in Myanmar. It's a way to get people to taste the product, but just as importantly, it's a way to show off Coke at its best.

The Tricky Business of Catering to PRC Tourists

♠ Posted by Emmanuel in ,, at 9/20/2013 11:06:00 AM
Since I am currently writing up some tourism-related research, two recent articles about the global industry catering to Chinese travelers caught my eye. While there is some debate going on as to whether tourism is the world's largest industry, we can safely conclude that it is a very large one. Combine that fact with China becoming the second-largest economy in the world and the embrace of Chinese tourism is only natural: As early as the mid-Nineties, I remember visiting Parisian luxury boutiques and seeing the effects of the first wave of PRC tourists as most had salesladies who were fluent in Mandarin. However, that is pretty much a baseline expectation nowadays.

(1) To be sure, the cruise ship industry has been hurt by high-profile incidences of American liners alternatively sickening and killing their passengers. Fortunately, its tarnished reputation is not (yet?) global. There are pockets of opportunity alike China. Again, it's only natural that the Chinese would take to the open sea since they have the world's busiest seaports--the infrastructure is already there. What has been lacking, however has been marketing: Chinese with an interest on going on cruise ships cannot be away for too long since they probably are too busy making money (unlike, say, their American counterparts who can go on decade-long cruises if there were some Wall-E style). Hence the popularity of short trips around East/Southeast Asia:
When the Mariner of the Seas arrived in Shanghai in June, it became the largest ocean liner with a home port in China — a 138,000-ton mega-ship that boasts an ice rink, 10 pools, a rock-climbing wall and a mini golf course. But the 3,800 passengers it can carry don’t get long to enjoy the array of amenities. The ocean-going giant, owned by Royal Caribbean International, mostly makes three- and four-night trips to South Korea that start at about the equivalent of $500 per person. 

The preference for such short cruises is one of the major challenges international cruise lines face as they focus more resources on luring Chinese customers, says Zinan Liu, the Shanghai-based managing director for China and Asia for Royal Caribbean, whose parent company is the world’s second-largest operator, with slightly more than 23 percent of all cruise passengers. (Carnival Corp. is the largest, with a little more than 48 percent.) 

If Chinese take to cruising in the same way as North Americans and Europeans, they could provide as many as 40 million cruise guests a year, according to a 2010 market analysis by Royal Caribbean. That is twice the number of passengers expected worldwide this year. But unless they work for international companies, most Chinese take vacations only during the public holidays clustered around traditional festivals like Chinese New Year, usually a week or less at any one time.
(2) However, all is not just moneymaking with PRC tourists. Whereas the rest of the world once had to deal with loud, brash Americans and pack-rattish Japanese, today the accusations of poorly-mannered tourists are aimed at the Chinese:
Now it is China’s turn to face the brunt of complaints. The grievances are familiar — they gawk, they shove, they eschew local cuisine, and last year, 83 million mainland Chinese spent $102 billion abroad — overtaking Americans and Germans — making them the world’s biggest tourism spenders, according to the United Nations World Tourism Organization.

Their numbers have also placed them among the most resented tourists. Mainland Chinese tourists, often laden with cash and unfamiliar with foreign ways, are tumbling out of tour buses with apparently little appetite for hotel breakfast buffets and no concept of lining up [...]
Certainly, more cultured Chinese are ashamed of the poor behavior of some of their compatriots who believe that spending a lot means they do not need to observe manners:
But the greatest opprobrium seems to be coming from fellow Chinese. In May, a mainland Chinese tourist in Luxor, Egypt, discovered that a compatriot had carved his own hieroglyphics on the wall of a 3,500-year-old temple. “Ding Jinhao was here,” it declared. A photo of the offending scrawl spread rapidly on Chinese social media, and outraged citizens tracked down the 15-year-old vandal. The uproar subsided after his parents issued a public apology. 

Embarrassed by the spate of bad press that month, Wang Yang, China’s vice premier, publicly railed against the poor “quality and breeding” of Chinese tourists who tarnish their homeland’s reputation. “They make loud noises in public, scratch graffiti on tourist attractions, ignore red lights when crossing the road and spit everywhere,” he said, according to People’s Daily. 
As the saying goes, you take the good with the bad and try to mitigate the latter through better customer education. There remain instances when the customer is not always right.

UPDATE: This rude Chinese tourists trope is gaining popularity. The South China Morning Post adds to it. 

Can Brazil Escape Abusive, US-Centric Internet?

♠ Posted by Emmanuel in , at 9/19/2013 09:06:00 AM
Absolute power corrupts absolutely - Lord Acton

Think of Barack Obama as the cyber-equivalent of Bashar al-Assad. Just as Assad does not own up to his chemical-attacking ways, so does Obama not own up to his Internet-abusing ways. All his pleas for "Internet Freedom" as they turn out, are meant to make it easier to spy on you and me. American digital hypocrites are thick on the ground, and Obama is just another one of their sorry lot. It is digital entrapment plain and simple.

Internationally, the US-centric Internet infrastructure which makes it so very easy for the US government to ask companies to disclose information about their users over alleged (yawn) national security concerns has come under sustained attack in the wake of disclosures that citizens and their leaders the world over have been hit by American snooping. Importantly, the Internet Corporation for Assigned Names and Numbers remains a US-based concern despite being responsible for allowing the Internet to function by maintaining control over IP addresses and suchlike. Given the increasing number of Internet users worldwide, many other countries have become concerned that the Internet's increasingly "global public goods" nature is not matched by changes in governance.

That introduction then brings us to Yanqui snooping: (mostly American) critics make the fallacy that since the strongest proponents of imbuing UN agencies with more voice in Internet governance are purportedly China, Iran, Russia, and Saudi Arabia, what they really are after is to improve their ability to wall off their Internet users from the rest of the world. Especially in the wake of disclosures about the extent of US spying, however, there are any number of other nations with legitimate concerns about near-absolute US power over the Internet corrupting absolutely. It is thus fascinating that Brazilian President Dilma Rouseff has been so aggrieved that she put off a state visit to America. What's more, she is urging Brazil to better insulate its telecoms infrastructure from more dastardly Yanqui deeds:
[Brazilian] President Dilma Rousseff ordered a series of measures aimed at greater Brazilian online independence and security following revelations that the U.S. National Security Agency intercepted her communications, hacked into the state-owned Petrobras oil company's network and spied on Brazilians who entrusted their personal data to U.S. tech companies such as Facebook and Google. The leader is so angered by the espionage that on Tuesday she postponed next month's scheduled trip to Washington, where she was to be honored with a state dinner...

While Brazil isn't proposing to bar its citizens from U.S.-based Web services, it wants their data to be stored locally as the nation assumes greater control over Brazilians' Internet use to protect them from NSA snooping...
There is also a fairly comprehensive set of actions Brazil intends to take to better deal with those Yanqui spies:
Rousseff says she intends to push for international rules on privacy and security in hardware and software during the U.N. General Assembly meeting later this month. Among Snowden revelations: the NSA has created backdoors in software and Web-based services.

Brazil is now pushing more aggressively than any other nation to end U.S. commercial hegemony on the Internet. More than 80 percent of online search, for example, is controlled by U.S.-based companies. Most of Brazil's global Internet traffic passes through the United States, so Rousseff's government plans to lay underwater fiber optic cable directly to Europe and also link to all South American nations to create what it hopes will be a network free of U.S. eavesdropping.

More communications integrity protection is expected when Telebras, the state-run telecom company, works with partners to oversee the launch in 2016 of Brazil's first communications satellite, for military and public Internet traffic. Brazil's military currently relies on a satellite run by Embratel, which Mexican billionaire Carlos Slim controls. Rousseff is urging Brazil's Congress to compel Facebook, Google and all companies to store data generated by Brazilians on servers physically located inside Brazil in order to shield it from the NSA.
Internet freedom has become a laughingstock since the most egregious violator of this principle is the United States. If Silicon Valley is hit by commercial fallout over spying, it is well-deserved anyway for meekly playing along with the US government. (Hear that, my blog service provider?) Will the Internet become "Balkanized" or further fragmented as others follow Brazil's example? European governments have been targeted by similar intrusions but do not complain as loudly. OTOH, what benefit do we Internet users gain from the present system which facilitates American intrusion as it abuses its position?

There are legitimate reasons for placing more Internet governance in an international organization contrary to the claim that doing so will simply allow authoritarian regimes to keep better tabs on their citizens. Go ask Brazil. Even if its efforts are for naught as some security experts say, I applaud its courage in raising a question that others have cowered from asking and, better yet, doing something about it. Moreover, I suspect the solution is not for individual countries to try and wall themselves off from the rest of the world but to join nearly-unimpeachable critics of US Internet abuse in asking for basic guarantees concerning security. The pressure being applied at the moment is insufficient, but think of what may occur if millions threaten to flee Facebook, Google, etc. if such concerns remain unaddressed.

In the meantime, do yourselves a favor by not posting sensitive information online. Obama's operatives are definitely watching.