Noteworthy….
Running the Sahara
What's happening in Madagascar?
In December, Rajoelina's network broadcast an interview with Madagascar's former president, who is now in exile in France. President Ravalomanana responded by closing down Rajoelina's station. They mayor accused the president of dictatorial behavior, and call on supporters to protest in Antananarivo.
Iran's Nuclear Ambitions, China's Wisdom
Iranian state television quoted a senior government official as saying the deal with a Chinese consortium, announced two days after the Obama administration renewed U.S. sanctions against the Islamic Republic, would eventually include an unnamed European country as a partnerUnder the three-year deal, China will help develop the South Pars field, a sprawling cavity beneath the Persian Gulf seabed that is part of what geologists describe as the world's largest natural gas reservoir.
[T]his now-traditional Chinese approach is fast approaching the limits of its utility. By refusing to use China’s immense leverage with Iran to nudge Tehran toward verifying to the International Atomic Energy Agency (IAEA) and the Security Council that Iran’s nuclear programs are not in pursuit of nuclear weapons, Beijing is allowing the Persian Gulf to drift toward increased instability that is not in China’s own best interests. The two probable outcomes of the current course of events over the Iran nuclear imbroglio are these. First, war triggered by Israeli pre-emptive attack, with or without U.S. support. Or, second, increased international rivalry via increased Iranian assertiveness once Iran possesses nuclear weapons or the capability to fabricate those in short order. The already wobbling Nuclear Non-Proliferation Treaty regime would also be further weakened, perhaps fatally by Iranian nuclear weapons capability. None of these outcomes is in China’s interests. Nor the world’s.
mHealth for Development
The problem in using cell phones for flu surveillance is that of incentives. How does one induce the general public to accurately report outbreaks of flu? People might under-report for fear that an intervention would be draconian. This fear could be offset with a campaign describing the nature of the intervention and perhaps by rewarding those who report with free cell phone minutes. On the other hand, If one gives away cell phone minutes for reports of flu episodes, people might over-report. The [UN/Vodafone] report suggests that these incorrect reports were entirely due to a misunderstanding based on language, when intentional misreporting in hopes of receiving the promised reward may have instead been the problem.
Callers to the national helpline can ask questions about HIV, get information about where to get tested and receive counseling.The project takes advantage of a popular form of texting across Africa, called a "please call me" message, that can be sent for free from a phone even if it is out of pre-paid minutes. The empty characters on the free text are used to convey the health message.Future phases of the project will allow users to text health questions, if they prefer not to call the line, and will provide an internet portal of information accessible by cell phone for people to learn about HIV. The ultimate goal, says the group, would be to provide free home HIV testing kits that would be supported by mobile counseling, so that people who aren't willing to visit a clinic can find out their status.
Take a walk down Jeune Street
Fallows on the (alleged) end of the Chinese dream
In Beijing, in Shanghai, in Shenzhen, and elsewhere, I’ve recently visited companies that are trying to use the disruption of this moment to enter wholly new markets and do what so few Chinese firms have yet done: make high-tech, high-value products that bring high rewards. In a country as big and chaotic as China, you can find illustrations of any “trend” you want. But in only a few weeks of asking, I found indications of companies that were growing rather than shrinking, and of corporate leaders who were pouring in money based on their belief that now, when competitors are at their weakest and talent and assets could be snapped up cheap, is the time to prepare for their next big advance.In Shenzhen, north of Hong Kong, I went to see Liam Casey, the Irish entrepreneur I described two years ago as “Mr. China” for his success in matching big, famous foreign companies with small, obscure Chinese factories that can produce brand-name products quickly and well. Casey said that of the top 100 Chinese companies he works with regularly, not one had gone out of business. While many were struggling, some viewed the recession as a chance to move into higher-value work and introduce their own advanced products rather than serving strictly as subcontractors. (Several such items, like new tablet computers and handheld GPS devices, were displayed at the latest Consumer Electronics Show in Las Vegas.)
The importance of China's plummeting export figures
There is no question that China is affected by the global economy, and that the dramatic fall in exports in February is a sign of weak demand in the United States and Europe. But what does a year of soft exports mean for China’s economy and its chances for recovery in 2009?For the answer to this question, I turn, as I often do, to Andy Rothman, China Macro Strategist for CLSA Asia-Pacific Markets, based in Shanghai. I have known Andy for many years and consider him to be one of the most insightful of the China economists. He combines thoughtful analysis with thorough, on the-ground research. In his latest Sinology report entitled Explaining Optimism, which is available only through CLSA, Andy analyzes the impact of exports on China’s economy.He begins the discussion with a rhetorical question that he then answers:
Can China grow during a global recession? Yes, because China is a continental economy driven primarily by domestic investment and consumption. Exports are important, but much less so.
How can he make such a statement? Andy points out that about half of all Chinese exports are processed or assembled products where, on average, only 4 percent of the export price represents value created in China. Only that small share contributes to China’s GDP.
By way of illustration, he uses the example of the 30GB video iPod that went on sale in 2005 with a US retail price of $299.
When an iPod leaves China it has a factory cost of $150, but only 5% of that - - $7.50 - - was value created in China, as the high-value components were imported from other Asian countries and just snapped together in China. This is a key reason why economists use net exports (exports minus imports) rather than the gross value of exports to calculate GDP.
In recent years, according to Andy, net exports - - the part of trade that actually contributes to the Chinese economy - - has accounted for only 6 to 8 percent of the country’s GDP.
Andy concludes this portion of his report with a chart showing that the fluctuations in China’s GDP growth since 1990 are not highly correlated to changes in either export or net export growth. Changes in GDP over these years have instead been driven primarily by changes in domestic investment and consumption.
At the beginning of the annual session of China’s legislature last week, Premier Wen Jiabao expressed confidence that the government’s GDP growth target of 8 percent for 2009 would be achieved. At the same time, many independent economists have predicted 2009 growth rates for China as low as 5 percent; the International Monetary Fund has forecasted 6.7 percent; and the World Bank is at 7 percent.
Who will prove to be more right when all is said and done? If Andy’s analysis is correct, Premier Wen’s prediction will carry the day.
Let's hope that Andy - and Wen Jiabo - are right.
Quick! Eat all the Roquefort you can find!
We're just ten short days away from R-Day -- the day at which tariffs on imported Roquefort surge to 300%, and the incomparable French sheep's-milk blue becomes, to all intents and purposes, unavailable in the USA. [...] Isn't repealing this tariff a no-brainer for the food friendly Obama administration? Why hasn't it been done yet?
Why not, indeed? This tariff likely has me outraged as much as it does the French! One thing you must know about me is that I adore cheese. Especially, especially French cheeses. All the better when they're paired with a glass of red wine. Mmmmm. Is it too early to be thinking about this at 9 o'clock in the morning? Arguably so.
Right, well, what to do in these final - now nine (!) - days before the end of Roquefort as we know it (in America at least - lucky for those reading from elsewhere!)? From the gastronomically brilliant Barefoot Contessa: endive, pear and roquefort salad; filet mignon with roquefort chive sauce; and the most amazing blue cheese soufflé - ever. One can never let a good thing go to waste.
The end of China's fifteen minutes of fame?
The economic crisis and low income countries
LICs are exposed to the current global downturn more than in previous episodes, as they are more integrated than before with the world economy through trade, FDI, and remittances. The crisis significantly impacts these countries through reduced demand for their exports. Since many are commodity exporters, they will be hard hit by the sharp decline in demand for commodities and in their prices. Many LICs are also hit by lower remittances and foreign direct investment (FDI) while aid flows are under threat. Growth of remittances was flat in the second half of 2008, and is expected to be negative in 2009. A sharp slowdown in FDI is expected in about half of all LICs. Prospects for higher aid to offset these effects are particularly uncertain, given budgetary pressures faced by many donor countries.LICs’ financial systems have so far not been strongly affected by the global crisis. Their banks have little, if any, exposure to complex financial instruments. However, those LICs that had begun to access international financial markets have seen this access come virtually to an end. Foreign lenders may become more reluctant or unable to roll over sovereign and private debt falling due. Domestic banks may be hit by second-round effects, as the economic downturn increases the number of borrowers unable to repay their loans.The global financial crisis will worsen the budgetary position of many LIC governments. Government revenues are expected to suffer as economic activity slows and commodity prices fall. Potential declines in donor support and tighter financing conditions will likely impose further pressures on LICs’ budgets. At the same time, many countries will need to increase spending to protect the poor, and additional spending pressures may arise from currency depreciation and rising interest rates, which could raise debt service costs.There is a risk that the impact on LICs could be more serious—26 countries appear particularly vulnerable to the unfolding crisis. These include countries heavily dependent on commodity exports, such as oil exporters, as well as fragile states with little room for maneuver. Baseline projections for 2009 foresee a total balance of payments shock of US$165 billion. They also suggest that LICs may need at least US$25 billion to offset the impact of the shock on their international reserves; given the heavy downside risks to the forecast, the needs could be much larger—approaching US$140 billion in a “bad case” scenario.[...] Given the economic downturn, efforts to strengthen safety net programs to protect the poor become more urgent. Transfer programs that effectively target the poorest often result in a larger stimulus to aggregate demand, given their higher propensity to consume. The capacity of many LICs to put in place new targeted programs will be limited in the near term. There may be scope, however, to scale up existing spending programs in targeted ways. For example, countries can implement public works programs and/or provide income supplements through existing programs. Additional resources can be channeled to targeted programs, such as targeted food distribution or school meal programs.Countries should focus on macroeconomic stability. In some countries with falling inflation there may be scope for monetary easing; others, however, still experience continued or renewed price pressures. Those with flexible exchange rates should allow them to move, so that they function as shock absorbers. Fixed exchange rate regimes may come under particular pressure owing to the adverse direct impact of the crisis. Steps are also needed to prevent the global financial crisis from spreading to their domestic financial sectors.
My present state of affairs....

I used to read PhD Comics religiously - well before I decided to embark upon the PhD route (more on that later!). It thus only seems appropriate that I pull up this comic up for old time's sake. If anyone has any suggestions for PhD funding, please send them my way. Options that might allow me to retain my soul (or avoid wearing jumpsuits and other bizarre contraptions) are highly preferred...
Don't roll up those "Free Tibet" flags just yet....
Turkey's African adventure
Historically, the Ottoman Empire had considerable relations with Africa — aided by the fact that African states such as Egypt, Libya, Algeria and Sudan were totally or partially subject to Ottoman rule. With the establishment of the Turkish Republic in 1923, however, contact between Turkey and Africa all but broke offOver the past decade and a half, Turkish policymakers have carefully shaped an African dimension to Turkey’s foreign policy that is increasingly involved in a dizzying range of sectors from trade to transport, health to humanitarian aid.Turkey has made inroads into Africa’s transport sector with scheduled flights of flagship carrier Turkish Airlines to regional hubs of Addis Ababa, Khartoum, Lagos, Johannesburg and, most recently, Nairobi.Ankara also plans to venture into Africa’s maritime sector, with investment in key facilities such as the Port of Mombasa.Last month, Abdullah Gul visited Kenya and Tanzania — becoming the first Turkish president to pay an official visit to these sub-Saharan nations — to expand Turkey's relations with the two. During his trip Gul pointed out that all but two African countries had supported Turkey's candidacy in 2008 for a two-year, nonpermanent seat on the UN Security Council.
Paul Collier blogging
Back shortly...
Chinese views of the economic crisis
I have just spent a fascinating couple of days, closeted with some Chinese academics in a house outside Paris, at a seminar organised by Sweden’s “Glasshouse Forum“.
Several of the assembled profs were members of China’s “new left” - people like Zhiyuan Cui, an economist from Tsinghua University and Shaoguang Wang of Hong Kong university. I was surprised by how confident they seemed. The consensus seemed to be that China would weather the global economic crisis better than most - and that the Chinese political system is sufficiently robust to withstand higher unemployment and slower growth. One of the participants pointed out that in the late 1990s, 60m Chinese people had been thrown out of work in the aftermath of the Asian economic crisis and the restructuring of China’s state-owned enterprises. But the country’s long-term trajectory remained ever upwards.
Another participant joked that China had discovered that whatever country it models itself on is doomed. In the 1950s China had modelled itself on the Soviet Union; in the 1980s there was a fashion for imitiating Japan; and more recently, there has been a fascination with American capitalism.
Touché. But (seemingly? possibly? maybe?) true. As Rachman observes, the joke contains a broader insight: while Western analysts continue to examine China's economics and politics in terms of how much they are becoming like us, the Chinese claim that they are finding their own way to modernity. And despite minor (and major) glitches, they appear to be doing a pretty good job.
Oh, technology
Can you please define 'win-win?'
The country’s faltering economy is putting the squeeze on “Little Africa,” or “Chocolate City,” as locals call it. Numbers are down and business is suffering. All-important visas are being denied or granted only for the short term. Africans who allow their visas to expire — and many do — are often imprisoned and forced to pay a hefty fine.In January, the Chinese government announced a crackdown on foreigners living illegally in Guangzhou, and, according to interviews with more than two dozen Africans working in the city, the community is facing increased persecution at the hands of police.