Monthly Archives: April 2004

Nauru: Once Rich in Phosphates, Now Broke

The island nation of Nauru, which once had the highest per capita income in the “developing” world, is now broke. The New Zealand News reports:

Australia has declined to bail out the island nation of Nauru, which is facing almost certain bankruptcy this month.

As receivers moved in on Nauru’s key international property assets, President Rene Harris is understood to have approached Canberra for a short-term rescue package….

The tiny island republic is facing both a constitutional and financial crisis, following a deadlock in its Parliament when the Speaker resigned in protest at the Government’s failure to pass a budget.

A spokesman for the Harris Government said they were still trying to find a refinancer for a A$236 million loan with America’s General Electric Capital.

The loan used the last of Nauru’s once $1 billion-plus property portfolio as security.

Nationmaster.com profiles Nauru’s economy.

Revenues of this tiny island have come from exports of phosphates, but reserves are expected to be exhausted within a few years. Phosphate production has declined since 1989, as demand has fallen in traditional markets and as the marginal cost of extracting the remaining phosphate increases, making it less internationally competitive. While phosphates have given Nauruans one of the highest per capita incomes in the Third World, few other resources exist with most necessities being imported, including fresh water from Australia. The rehabilitation of mined land and the replacement of income from phosphates are serious long-term problems. In anticipation of the exhaustion of Nauru’s phosphate deposits, substantial amounts of phosphate income have been invested in trust funds to help cushion the transition and provide for Nauru’s economic future. The government has been borrowing heavily from the trusts to finance fiscal deficits. To cut costs the government has called for a freeze on wages, a reduction of over-staffed public service departments, privatization of numerous government agencies, and closure of some overseas consulates. In recent years Nauru has encouraged the registration of offshore banks and corporations. Tens of billions of dollars have been channeled through their accounts. Few comprehensive statistics on the Nauru economy exist, with estimates of Nauru’s GDP varying widely.

But Air Nauru says it will keep flying.

UPDATE: Head Heeb has more.

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An Anthropologist’s First Impressions of Occupied Japan

The Rare Books and Manuscripts Library at the Ohio State University has made available online a wonderful collection, “Doing Photography and Social Research in the Allied Occupation of Japan, 1948-1951: A Personal and Professional Memoir,” described thus:

Photographs taken by anthropologist John W. Bennett in occupied Japan, 1948-1951, (a few were made in the 1960’s during his term at Waseda University), with comments on the photos by Bennett. Also included are extensive selections from Bennett’s professional journal of the period, and other documents. Consisting of a personal and professional memoir, this site is also a record of a unique experiment in social analysis and research that focuses on a period of particular significance in the development of Japanese and international history, politics, economics, and culture.

Here’s an excerpt from First Impressions: A Letter to Kathryn Bennett Composed at Intervals During 1949.

let us list some preconceptions of the writer, which have since been scrapped. More than that, he was totally unaware that they existed, and he an anthropologist, too. But we know that anthropologists are on the whole naïve and eager people, who rarely examine their own prejudices. I discovered after two days that I entered Japan with the unconscious assumption that all Japanese speak in high voices. This is false. 2. I entered Japan with the notion that all Japanese would be embarrassed when spoken to. This is false. 3. I had a half baked notion that Tokyo looked like a large park with museum-like buildings scattered through it (really kind of surrealist dream). This is false. 4. I believed that although most Japanese could read, only a few were literate. This is mostly false. 5. I believed that Japan was amazingly homogenous in physical appearance and behavior. This is completely false and true–see earlier confused remarks. 6. Finally, I had the firm belief that a careful reading of Benedict, Sansom, Embree, et.al. would provide one with the basic knowledge for research here. Maybe– but today I discovered that my most pressing need for information concerns government bureaus and the patterns of population movement.

To conclude this session, let us ask the question: What is the “Oriental” here? Is this the Orient? The initial Yokohama impression was negative–the damn place looked like part of Seattle, and the docks were so packed with Americans that one could hardly feel strange and eastern. In to Tokyo the impressions were so confused that I can hardly say what I felt; after a while in Tokyo and outside the Orient came in a physical sense–the “Japanesy” look as my dear mother used to say when she saw some bamboo bric-abrac; that is, delicacy, intricacy, retiring-ness, vistas of people in hedged fields, etc., etc. Japanese gardens and prints. For a couple of days I drank this in–every glimpse I could get. Concrete highways and western buildings and railroads didn’t figure–I simply didn’t see them. I recall one trip into town with Herb Passin in the AM and the only thing that I remember seeing on that trip was an ancient house on a farm with old style thatched roof. Well, all this will return when we go to Kyoto and similar places which retain the traditional appearance, but by now the Japanese feeling and visions have about disappeared, and all I see are the familiar sights of the urban world – the streets look like streets again. “Oriental” becomes not of the bric-a-brac dish garden business but the urban and rural world of the Japanese nation. I regret that I didn’t see Japan in my mystic and impressionable teens, when the garden view would have persisted. Not of course that I don’t see the differences–this communication is full of them–but the special naïve physical “oriental” look is about gone.

via The Marmot’s Hole (in turn via Neilbarker’s Seoul)

I suspect I’ll have more to post as I explore the archives. Takes me way back to my early childhood in Occupied Japan.

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South Korea’s New Hybrid News Organization: OhmyNews!

Donata Communications has posted an article about a new type of media organization that apparently helped drive greater participation by normally apathetic younger voters (the “2030” generation, those in their 20s and 30s) during the recent elections in South Korea, the most “wired” society on earth. The article by Terry L. Heaton has a grandiose title–TV News in a Postmodern World: The Genius of OhmyNews–but is well worth a full read.

Whether it was genius, luck, timing or all three, OhmyNews! has become a very powerful media entity in South Korea, and the amazing thing is that its principal tool is a Website. OhmyTV is a very slick streaming online TV station, and their election night coverage would’ve stunned even the so-called “experts” at the network level in the U.S. The graphics and sound effects alone were enough to make any producer drool. OhmyNews! also publishes a Saturday print edition now, but its bread and butter is the Internet.

According to the UCLA Center for Communications Policy World Internet Report, there are two noticeable differences between U.S. and Korean Internet users. Seven in ten Korean users believe that most or all of the information on the Web is accurate or reliable. That’s compared to a little over half of Internet users in the U.S. Secondly, Internet users in Korea spend considerably more time online and less watching television than their U.S. counterparts.

Updates and bulletins can happen at any time, but OhmyNews! “publishes” its content three times a day, 9:30 a.m., 1:00 p.m. and 5:00 p.m. It is, therefore, targeting a largely working audience. It also provides news via cell phones and other mobile devices.

Staff reporters (80% of whom began as citizen reporters) now number over 50 with almost 27,000 citizen journalists contributing. The American-educated Oh has a history of rejecting traditional journalism, having worked for alternative media outlets before founding OhmyNews!.

We do not regard objective reporting as a source of pride. OhmyNews does not regard straight news articles as the standard. Articles including both facts and opinions are acceptable when they are good.

And “good” is in the purview of his editors. It harkens back to the days before the elite “professionalism” took hold in the early 20th century, and it’s obviously resonating with the citizenry in South Korea.

via Bill Hobbs via Instapundit

UPDATE: The Marmot’s Hole comments, and promises more to come.

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2004 Indonesian Legislative Election Results So Far

On 20 April, the Jakarta Post reports the ongoing Indonesian vote tally as of last Friday, with something like 75% of the votes counted.

JAKARTA (JP): Provisional vote tally from the General Elections Commission (KPU) as of 2:45 a.m. on Friday is as follows:

Rank – Party – Votes – %

1. (20) The Golkar Party: 19,287,067 (21.11%)

[former President Suharto’s old party]

2. (18) The Indonesian Democratic Party of Struggle (PDI-P): 17,814,035 (19.49%)

[current President Megawati’s party]

3. (15) The National Awakening Party (PKB): 10,886,977 (11.91%)

[former President Gus Dur’s (= Abdurrahman Wahid’s) party]

4. (5) The United Development Party (PPP): 7,615,482 (8.33%)

[former rural Muslim party]

5. (9) The Democratic Party (PD): 6,879,372 (7.53%)

[Susilo Bambang Yudhoyono’s spinoff from PDI-P]

6. (16) The Prosperous Justice Party (PKS): 6,549,961 (7.17%)

[“Caring and clean”–and peaceful]

7. (13) The National Mandate Party (PAN): 5,918,636 (6.48%)

[Amien Rais’s urban-based reform party]

8. (3) The Crescent Star Party (PBB): 2,345,426 (2.57%)

[sectarian pro-syariah party]

9. (17) The Reform Star Party (PBR): 2,099,182 (2.30%)

[sectarian pro-syariah party]

10. (14) The Concern for the Nation Functional Party (PKPB): 1,945,837 (2.13%)

[Suharto clan party headed by his daughter “Tutut”]

Below the 2% threshold: the Prosperous Peace Party (PDS), which aims to represent the Christian minorities. It seems a good sign that, in a country 88% Muslim and riven by religious strife, the most highly sectarian parties garnered such tiny fractions of the vote.

The parties who win a minimum of 20% of the votes for the parliamentary elections are eligible to nominate their candidate for the presidential election on 5 July 2004.

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Holy Warriors vs. the Salvation Army in Poso, Sulawesi, Indonesia

Yet another outbreak of violence hit the area around Poso in Central Sulawesi, Indonesia, over the Easter weekend.

At 7:15 pm, April 10th, three masked men in Ninja-like costumes arrived on motorcycle and stormed the Protestant congregation, opening fire on hundreds of Christians who were celebrating Easter. Seven people were injured, including a four-year old girl who was shot in the right leg. The assailants escaped to a nearby forest.

Three previous shootings in the last month have claimed the lives of three Christians and injured another. The deaths of Rosia Pilonga, a 41-year old dean of Law at the Siontuwunu Maroso University and Jhon Christian Tanalida, who were shot dead by unknown gunmen earlier last month, were followed by the shooting death of a local clergyman, Reverend Freddy Wuisan, in his own home late one evening.

These anonymous attacks have targeted the Christian population in the Poso region even after the 2001 Peace accord was established by the government to end two years of fighting which killed some 2000 people. In the worst bloodshed last October, gunmen killed 10 people in attacks on mainly Christian villages.

Christians so far have not retaliated to any of the attacks with violence.

The violent outbreaks in 2000-2001 were attributed to the Laskar Jihad holy warriors, which officially disbanded in the wake of the Bali bombing in 2002, but is more likely to have relocated to West Papua, well away from international media TV cameras. The most recent violence has been attributed to the Jemaah Islamiya terrorist group apparently responsible for the Bali attack.

One odd irony of the conflict in Poso is that Christianity first came to Central Sulawesi by means of the Salvation Army, which describes itself in military terms but, as far as I know, has never sanctioned violence as a means of spreading its message. A good, concise account of the origins of the Salvation Army and its arrival in Central Sulawesi can be found in the chapter, “Onward Christian Soldiers: The Salvation Army in Sulawesi,” in the book Fields of the Lord: Animism, Christian Minorities, and State Development in Indonesia, by Lorraine Aragon (U. Hawai‘i Press, 2000), pp. 116-118. (Author-date references are omitted in the following extract.)

The Salvation Army began as the East London Christian Revival Society in 1865, when a Wesleyan Methodist preacher named William Booth took his message to the street people of East London. Booth quickly discovered that these lower-class individuals, often alcoholics or scofflaws, were unwelcome in established English churches. When their roving street evangelism was discouraged by Methodist Church institutions, Booth and his wife, Catherine, founded their own sect…. They recognized that their prospective audience was not attracted to the staid atmosphere of conventional churches and organ music, so they created a circus-like environment of tents thrown up in public squares with vivacious music played on guitars, banjos, trumpets, and bass drums…. In this context, Booth and his wife preached eternal salvation through Christian faith and discipline to individuals who were considered the most sinful members of British society.

Booth remained doctrinally faithful to Wesleyan principles: faith in both Old and New Testament scriptures, the Trinity, original sin, and the atonement of Jesus Christ…. It was less a matter of doctrine than Booth’s constituency and approach to them that made the Salvation Army a distinctive sect apart from Methodism.

Because many of his original followers were alcoholics, Booth eliminated the sacraments, which he saw as tempting his followers with sips of wine. Salvation Army members are forbidden alcohol and tobacco in order to purify their physical and spiritual selves from sinful habits. Booth also encouraged, yet disciplined, the charismatic expression of penitence among his followers by restricting their confessions of faith to moments in the service when all were called upon to volunteer their “witness” to the greatness of the Lord….

The East London Christian Revival Society changed its name to the Christian Mission and then, in 1878, to the Salvation Army. Booth found military references in the Bible evocative of the kind of energetic and disciplined movement that he envisioned…. [This was the heyday of the YMCA and “muscular Christianity.”] Hence the organization’s chosen processional hymn became “Onward, Christian Soldiers!” Once the Salvation Army name was chosen, the way to structure and clothe the organization’s members became clear to “General” Booth, who began to assign military ranks and adopt used British Army garments that later were altered to create a distinctive Salvation Army uniform.

By the late 1880s, Salvation Army congregations, or “corps,” were opened in other parts of the British empire and European continent. Given the organization’s early statement that “[t]he Salvation Army makes religion where there was no religion before” …, missionization in Europe’s overseas colonies was a natural next step for the Salvation Army’s expansion. Methodists already disavowed the high Calvinist view of strict predestination, which made missionary work more purposive, merely another extension of the desired corpus Christianum….

In 1909, A. W. F. Idenburg, the newly stationed governor-general of the Dutch East Indies, contacted Gerrit Govaars, the first Dutch Salvation Army [Du. Leger des Heils] officer ever commissioned and the newly assigned Indonesian territorial “commander.” Govaars was assigned to travel from an established Salvation Army headquarters in Semarang, Java, to assess the possibility of opening missions among the “pagan Toradjas” of Central Sulawesi. A 1970s interview with Govaars indicates that once he arrived in the Palu Valley, he met a German named Zuppinger. Zuppinger, who was married to a “native” woman and could speak some local language, accompanied Govaars on a journey to Kulawi‘s pagan temple, where Govaars became “the first Christian to preach the gospel in Kulawi” …. Of his travels into the interior farther south, Govaars said:

From place to place we hired carriers, and so traversed the country. We spoke to the heads of the tribes. One of them listened interestedly to what I told him about Christ, serving the Lord and not doing bad things. Then he asked, “Are we allowed to eat pig’s meat?”

Upon my affirmative he said, “Oh well, that is all right. Wild pigs eat our harvest, so we ought to be allowed to eat pigs.” …

These comments, familiar to all missionaries in Indonesia, encapsulate one of the primary objections that highlanders have to Islam. By initial comparison, the Christian religion seems less of a dietary hardship. Unlike the coastal Kaili, most of whom gradually gave up eating pork to forge alliances with Muslim merchants from South Sulawesi, highland Kulawi people never found a sufficiently good reason to renounce their major feast food in favor of a foreign religion.

UPDATE: Indonesian police say they have “found 17 bombs and scores of home-made guns, knives and bows and arrows in an extensive search of Indonesia’s Poso district. Hundreds of police conducted door-to-door searches and combed fields in the Central Sulawesi district from Wednesday to find illegal weapons.” … Local residents “gave police a lot of information.”

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Burma, TotalFinaElf, and Bernard Kouchner

A blog I only recently discovered via Belmont Club, the Last of the Famous International Playboys, posted back in January a long, detailed, and nuanced report on a scandal involving Kouchner, Total & Burma:

Good people make mistakes, too. Someone I very much admire, founder of Médecins sans frontiéres Bernard Kouchner, has drawn the wrath of right-thinking people down on his head.In his long career, the popular Kouchner (click on “afficher ma sélection” to plot his rising and falling poll numbers) has been a champion of human rights and was one of the only public figures in France to express support for the removal of Saddam Hussein.

But according to a few articles, France’s illustrious former socialist Minister of Health, Kouchner, has been accused of whitewashing the matter of the complicity of French oil giant Total (which recently merged with its highly corrupt and rapacious competitor Elf, forming the fourth largest oil company in the world) in alleged human rights abuses as part of the construction of a pipeline in the Yadana region of Myanmar.

On 7 April, the “tenth anniversary of the first full day of slaughter in the Rwandan genocide,” Last of the Famous posted another long, detailed, and nuanced retrospective on Rwanda, with a follow-up on 11 April. Both fascinating, but grim reading.

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19th-Century IT Improvements and Noncorporate Whaling

Alaska-based econoblogger Ben Muse posted a couple of interesting historical observations recently, one on the 19th-century IT revolution and another on why whaling ventures didn’t adopt corporate structures.

The first post summarizes data from the book, The New Financial Order: Risk in the 21st Century, by Robert Shiller.

  • The cost of paper for record storage drops as a paper making machine is invented in 1800, and the use of wood pulp for making paper is introduced in 1865.
  • The cost of data transmission drops when standardized envelopes are introduced in 1849, and as “street addresses proliferated in the late nineteenth century …”
  • The cost of making copies drops with the invention of the letter press in 1780 (“Letters … were placed before the ink was fully dry between the tissue-paper pages of a blank book, and the book closed and placed in a letter press, which pressed the pages tightly together. The special ink used to write the letter left a mark on the blank page, thereby generating a copy, which, although backward on the tissue paper, could be read normally from the other side.”), of carbon paper in 1806, and photographic document copying in 1900.
  • “The invention of the typewriter in 1868 was significant not only for the increased speed of data entry but also for the increased reliability of typewritten records …”
  • Industry for producing forms emerges in the 19th Century; carbon forms available by the 1880s.
  • Document sizes become standardized.
  • In the 1880s and 1890s development of mechanical calculators “sped the operation of the addition of numbers by about six …”
  • Filing systems improved (Dewey Decimal system introduced in 1876).

And then, there is the vertical file: “The vertical file with the associated cardboard file folders appeared at the 1893 world’s fair, the Columbian Exposition in Chicago, where it won a gold medal …”

The second post summarizes data from a working paper by Eric Hilts, “Incentives in Corporations: Evidence from the American Whaling Industry,” NBER w10403, March 2004.

U.S. whaling began in the 17th Century as small groups of colonists set out from shore after targets of opportunity. Gradually the business shifted to whaling ships with crews of 30 taking world wide trips lasting years at a time. Despite the 19th Century IT revolution, management of an enterprise like this would pose big challenges.

In the typical whaling enterprise a small group owned shares in the vessel. These persons delegated most management decisions to agents, who themselves had significant shares in the operations. [The agents and owners also tended to know each other very well, both personally and professionally.] …

In the 1830s some whaling firms incorporated in an apparent effort to become more attractive to large numbers of small investors. But look at what happened to management’s incentives. To a great extent oversight responsibility shifted from the investors to a board of directors. These, in turn, delegated management responsibility to an agent….

The corporate structure never became very important in the whaling business. The whaling industry survived into the later 19th Century, but “Of the whaling corporations that were chartered in the 1830s and early 1840s, none survived past the 1840s.” [Hilts, p. 12] …

Hilts thinks the reason is the different incentives faced by agents under the alternative forms of organization. He sought confirmation in a data set on 874 whaling voyages from 1830 to 1849; the data set covered almost 20% of the voyages during that time. For each voyage he calculated a productivity index. Hilts thinks the reason is the different incentives faced by agents under the alternative forms of organization. He sought confirmation in a data set on 874 whaling voyages from 1830 to 1849; the data set covered almost 20% of the voyages during that time. For each voyage he calculated a productivity index. Statistical analysis of the relation between the index and voyage characteristics found that, both statistically, and practically, corporate voyages were less productive that non-corporate voyages. (As a practical matter, organization as a corporation had a greater adverse impact on productivity than the death of the captain on the voyage. [Hilts, p. 23])

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Molvanîa: A Land Untouched by Modern Dentistry

Molvanîa, “a land untouched by modern dentistry” according to the Jetlag Travel Guide Molvanîa, urgently needs to enter into a bilateral free trade agreement with an exporter of dental products like, say, Liechtenstein.

(Brobra to polyglot polydont pf, from whose blog this tooth of wisdom was extracted.)

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Yuppie Politics and Dog Rights in China

On 11 April, Erik Eckholm reported in the New York Times on political progress in China measured by Yardsticks You Never Thought of:

5. YUPPIE POLITICS The pressures for reform may flare most powerfully not from the downtrodden, but from the new, property-owning middle class, which will demand accountability from officials.

In 2003, the most vociferous illegal demonstrations in Beijing were staged not by desperate workers but by young professionals who said they had been cheated by developers of their apartment complex, abetted by local officials….

7. HUMAN RIGHTS FOR DOGS, AND VICE VERSA This is no joke. Visitors to Beijing and other big cities may notice an eerie absence of dogs on balmy weekend afternoons. This is not because they are regularly eaten; in fact, the Chinese love their pet dogs as much as any people anywhere. But because of outdated and draconian laws, tens of thousands of pet owners in Beijing alone must keep their dogs in the closet, as it were.

In Beijing, dogs are not allowed outside in the daytime; those caught outdoors are confiscated and killed. They are not allowed in parks, on grass or on elevators – even when elderly owners live on the 14th floor. They may not grow taller than knee-high, on pain of death. And licenses are expensive.

(Xiexie ni, Andrés Gentry!)

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Old Friends: Mozambique and Timor Leste

The Head Heeb has an interesting post about the especially close ties between Mozambique and East Timor, going back to 1975.

The foreign minister of East Timor is in Maputo laying the groundwork for the first Timorese embassy in Africa. Mozambique may seem an unlikely first choice, but its relative lack of political and economic clout is balanced by its longstanding ties of solidarity with East Timor….

In some ways, the post-independence relationship between the two countries is even more remarkable than what came before, because it illustrates how even one of the poorest countries on earth can be a donor. There are other ways to attack a problem besides throwing money at it – sharing experience and technical personnel, or providing willing hands to get the job done – and a nation need not be rich to aid other countries in these ways. Such aid often has a political purpose, like the Cuban doctors that are ubiquitous in many Third World countries, but it can make a real difference; sometimes, in fact, it can make more of one than a boondoggle project that serves mainly to fill a corrupt dictator’s coffers.

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