Showing posts with label economics. Show all posts
Showing posts with label economics. Show all posts

Thursday, December 1, 2011

More Fearsome Than Tigers

Once every few months I hear some FOTD* kid braying about how "democracy won't work in China!" and all sorts of meh meh meh. No doubt because one of his professors in some lecture on politics and culture he attended two years ago brought it up as a question - I should know, because my professors did that all the time - and that's the position he took.

On the surface it seems PC: it seems like the person saying it is trying to incorporate China's current domestic issues and cultural background into the mix, which makes that person sound really in touch or with it or thoughtful. Which is great, except half the time the people saying it have never been to China (and if you've been to Taiwan, no, you've never been to China so don't even) or have been there, and have turned into that special brand of expat who is brainwashed into believing ridiculous things (they're the ones you can hear on the streets of Beijing faffing on about how great China is, how we're too hard on their undemocratic but very efficient government - but you have to admit, they get stuff done! - defending the One China fallacy, taking untenable positions regarding China's environmental problems (but it's the West that buys all the goods that China produces in those factories!), its sexism (that's just the culture! Accept it or go home) and human rights (you have to break a few eggs to make an omelet).*

Yeah yeah, different people have different opinions and maybe I shouldn't come down on them so hard, but as I see it, they're wrong. End of. They can believe what they like, and I can think they're ridiculous and blog about it, and they can leave comments which I can either refute or not publish (if the comments are rude and attack-y rather than thoughtful), and everyone's happy and exercising their freedoms in civic debate.

The "China can't be a democracy" blather is a popular one, and here I am (yay! you can all relax now, haha) to give you a point-by-point rundown of why it's bullshit.

"China can't be a democracy because democracy won't work with Chinese culture the way it does with Western culture."


Wrong. First, while Taiwan is not China, Taiwan does have a strong Chinese cultural influence - and what's important is that that influence stems from pre-Communist days and still carries a lot of traditional Chinese beliefs that were eradicated or greatly cut back during the Cultural Revolution. Taiwan is a democracy. A strong, functioning democracy that, well, yeah OK, sometimes they hit each other or spit on one another and there's vote buying and such but generally the system works and is fair. If Taiwan, while not actually China, provides an acceptable stand-in for how democracy would work in the context of Chinese culture....and it works just fine, thanks. Hong Kong actually is a part of China, although you could argue cultural distinction there, too, and while not a full-fledged democracy there's no reason to believe that democracy wouldn't work there.

Looking at other countries in East Asia, culturally they're not as similar to China, but there are a lot of shared traits (especially when you look at the influence of Confucian thought in Korea). They're all functioning democracies. They all have problems, but there's no government on Earth with the possible exception of Bhutan that doesn't.

Looking at some aspects of Confucian thought, by the way, it does make room for democracy. The Mandate of Heaven is something that can be taken away by unruly, unhappy masses. It was considered acceptable for dynasties to fall - this to me sounds like a cultural tic that would allow for democracy. Confucius also once said "惡政猛於虎", or "a tyrannical government is more fearsome than tigers". This does not sound like a philosophy that is 100% opposed to democracy. I don't even think I need to go into why Daoism and democracy work just fine.

"But those countries are small. China's too big to be a democracy!"


Yes, it has a big population, but so does India - and India, while a bit crazy, has a democracy that could generally be described as functioning. In ways I don't quite understand, and more than a little corrupt, but functioning. In its way. Yes, it covers huge tracts of land, but so do Canada, the USA and Brazil - and they're all democracies. Indonesia, too.

OK, there's one other obvious country that bears mentioning. It's true that Russia is mostly a democracy in name only, in that narrow definition of democracy in which - to quote Brendan - "there's an election and whoever gets the most votes wins".

Taiwan's got a relatively small population but it's extremely dense, which puts it in the running. And let's not forget Bangladesh. Poor, densely packed...and a democracy.

"But China is too diverse. You can't govern that different a population with democracy. You need stronger central rule."


Let's leave aside my strong belief that Tibet and Xinjiang (Uighur territory) should be granted either true autonomy (what the CCP offers now is not real autonomy) or independence.

I'd argue the opposite - that the only way to govern a large, diverse country is  through democracy, so different groups can have their say and, one hopes anyway, through the process of  inclusion feel less marginalized. I realize this is quite the utopian viewpoint but hey, seems to work in Canada. The USA is a more contentious issue. It is possible to demarginalize minorities and historically oppressed groups through democracy. It seems possible to do that with autocracy, but it never seems to actually work out that way.

I'd also say "let's look back at that list above". America is huge and diverse, both racially and culturally.   Brazil's pretty diverse, with all sorts of  native populations. India is the poster child for linguistic and cultural diversity - we may think of them all as "Indians" but come on. Go to India for awhile and tell me what you think then. Singapore, while small, is extraordinarily diverse. Indonesia's got some diversity going on - any island nation that huge would. Every single one of these countries have made democracy work.

"But China is still developing and democratic reform can only come with economic gains!"


This is the first statement I do give some credence to - it's true that moving from the Third World to the first does tend to have a democratizing effect on nations and one can't discount the effect of economics on politics.

That said, China is approaching, development-wise, the spot Taiwan was in when it underwent its transition to democracy. You could say the same for South Korea (although they might have been farther along - I'm not an economist and I am estimating here). As above, Bangladesh is massively poor, and yet a democracy.  India is lagging behind China - although doing very well in its own right - and it's a democracy.

"But the people don't want democracy. If they did, they'd demand it."


Ask the people who were at Tiananmen Square - if they're still alive - what they think of that one.

Hell, go to China and ask almost anyone, provided you're friends enough that they'll speak honestly with you and they're not one of the rapidly decreasing number of Chinese brainwashed in schools to believe their government is infallible (this belief tends to deflate the minute you get to know someone well enough to learn what they really think). You'll hear a different story. A democratic revolution against a party so ensconced in and obsessed with power as the CCP is not an easy fight to win. It wasn't easy for the Arab Spring countries, and it will be even harder in China. One shouldn't have to die for democracy: it's a human right to have a say in how you are governed. I can understand why someone might not want to actually die for it, even if they sincerely wish they had it.

"But a Chinese democracy would be so much less efficient than the current government. That's why India hasn't caught up to China."


Again, interesting belief, worth exploring, but ultimately wrong.

Well, not 100% wrong, it's true that democracy tends to be inefficient and that the CCP can get what it wants done more quickly (and bloodily). That tends to happen when you have a blatant disregard for citizens' rights, the health of your populace or, well, basically anything other than the path you've decided is the way forward.

First, considering that they built a dam on an earthquake fault, that roads fall apart, government-built factories fall apart, pollutants are sprayed into the countryside, the food supply is basically horrific, the water is undrinkable, you can't even be guaranteed you'll be able to keep land you own and you definitely won't be paid fairly if the government takes it, people suffer so much in Gansu that it's rendered a huge percentage of the population mentally disabled, and the horrible concrete tile-covered boxes that get built are very dodgy indeed - I don't even want to know how lacking the safety standards are - I wouldn't call the government that efficient. If it were, it would have done something about its constant environmental degradation and the air wouldn't be gray and sooty even in the countryside (I lived in semi-rural China and I got bronchial pneumonia twice in one year. The mountains in the distance were obscured by an unmoving haze of horrible smoky blech, even on sunny days).

Awhile back you'll remember that a section of road on the way to Keelung in Taiwan was buried under a landslide, and a few people died. I remember in that article reading that it was a surprise, as all manner of testing had been done on the hillside to ensure that it was a safe place to build a road. In China, the government would have sent an official, who'd point at a random hillside and say "build it there". "But..." "I said build it there." "OK."

I also question this deep need for better efficiency when it comes at the cost of human  and civil rights. Would you really trade freedom of speech for getting giant skyscrapers built a little faster?  Would you trade land rights for a superhighway built more quickly? Does a government that feels the need to restrict the rights and actions of its people deserve the adjective "efficient", or just "cruel"? I'd say that if the grease that oils your gears to make things go faster is actually blood, then it's not a good trade at all.


*fresh outta the dorms


Thursday, November 11, 2010

Taiwan overtakes Japan in living standards



http://www.economist.com/blogs/asiaview/2010/11/taiwan_and_japan

Fascinating article from The Economist on living standards. I agree with it for the most part. The Japanese make more, but thanks to high prices they can afford less. Neighborhoods look nicer (and are so clean you could eat off the streets) but living spaces are tiny and housing prices are so high as to make Taipei's somewhat shabbier neighborhoods* be a far better deal at a fraction of the cost...for more space.

And it's true that if you go out for a good meal in Taipei, even for Japanese food, you're looking at maybe $10 USD per person, possibly $15. The grand total for a bill for 3 is $30-$45. (We're talking a "good meal", not a "super expensive hotel buffet" meal, which isn't even all that good most of the time.) You'll spend that per person in Japan on a good meal, and get less food.

But I disagree with the swipe at stinky tofu. I love sushi but come on. Stinky tofu is WHERE IT'S AT. What-ever, Economist. You just don't know good food when you try it. The more like ripe gym socks it smells, the better it tastes. End of debate.

Also, sushi is not the main food staple there. Duh - most people eat noodles, rice-based dishes, seaweed, cooked salmon and tuna dishes, plus egg. Sushi is a special occasion food in Japan, so comparing proletarian stinky tofu to patrician sushi is ridiculous.

A few notes on comparisons between life in Japan and Taiwan, with a focus on the lives of female expats, if only because I'll be comparing myself and a female expat friend who lives in Japan.

Living Space
It can't be denied - Taipei residents, as much as they complain about high real estate prices, can afford more space than the average Japanese urbanite. We're talking mostly about urban life here because most Japanese now live in towns and cities and really, what is Western Taiwan but one giant unfurled length of urban areas, connected by skeins of towns and settlements? Both countries have rural areas, but urban life is the default for most residents of both countries, as is fitting for developed nations.

I live in an older apartment in a sixth-floor walkup (which I am fairly sure is illegal - shhh). It's not a "pretty" apartment although we've decorated it well. Look under the sisal rugs and you see peeling linoleum better suited to a 1950s elementary school. Look past the big rice paper lantern lights and you can see where we installed them with electrical tape, and how the ceiling above is plastic. The bedroom is quaint until you realize that it's an add-on; what was one big room was converted to a one-bedroom with, basically, painted plywood. Our kitchen is huge but is just as outdoors as in (don't ask). We did our best with the paint, using epoxy primer on tough spots, and still got wall cancer (wall cancer is that thing you see in Taiwan where humidity makes the paint and stucco bubble and flake like tumors).

My friend's apartment is comparatively nice, with a tatami floor bedroom, sturdier walls and a kitchen that can be confidently described as "indoors". She's said that, compared to most apartments in the Tokyo area, however, it's crap. It's old and ugly (I think it looks fine; clearly Japan has a different threshhold for "old and ugly").

That said, hands-down I have more space. My living room alone is easily the size of her entire apartment. In her own words, "I live in a shoebox. It drives me nuts". Plastic ceilings, ugly floors and all, my apartment doesn't drive me nuts (usually). There is more than enough space for me, Brendan and the cat. I am not sure a cat could survive in my friend's place - not that they can have one.

Her rent is stratospheric compared to Taipei rent - for all that extra space we spend a grand combined total of US $400 per month. I'm not sure that would pay for my friend's living room in Kawasaki.

I live within a one-minute walk of Jingmei MRT station in Taipei. She's a 20-minute walk from the nearest subway station in Kawasaki, outside Tokyo.

We both have convenience on our side - she doesn't have to walk up six flights of stairs, but restaurants, convenience stores and other shops abound in her neighborhood as they do in mine. I have a night market though...na naaa.

Her neighborhood is better looking, though.

I can't compare real estate because I've never looked into it in either country, but it is safe to say that Tokyo real estate dwarfs Taipei real estate in price.

Salary
Not much to say here, and it's hard to compare as she's just finished grad school and that cost a pretty penny.

She makes more. Depending on the month (I work on contract, see) she makes between 30% and 50% more than I do.

I, however, can afford more. We don't worry about price so much when we go shopping. We don't come back from a day in Taipei wondering where all our money went, clutching a tiny bag of barely anything (ah, Japan, the great Money Suck). The article is just right here - prices are absolutely punishing in Tokyo. My salary is lower but prices, in general, are an order or two of magnitude lower than that, giving me higher purchasing power overall.

You can see it in our travels, though this is not really a fair comparison: we specifically work and save to travel, and she worked and saved to go to graduate school. We jet off to the Philippines or Hong Kong because we *can*, and she's admitted that traveling just for the sake of it isn't so much her thing; she likes to live in different places and experience them in-depth.

That said, this is not a fair comparison at all. She did just work her way through graduate school at Columbia's Tokyo campus. Regardless of relative salaries and PPP she'd have less money after that - I've had no such major expense.

Quality/Price of Goods
There is a misconception out there that women are bad with money, that we're out-of-control shoppers who need to be told how to manage our finances.

My friend and I, as well as any independent expat women out there who managed to get themselves abroad and manage their finances well enough to maintain life abroad with regular visits home are a slap in the face to this theory - as for us two, neither of us overspend on "stuff" - including clothes and makeup.

I recently bought a pile of new, high-end makeup for my wedding, but with that I learned how to use it and do use it for work. My friend doesn't wear makeup. Neither of us buys clothes in bulk; neither of us can, really. I have far too many curves to ever fit into clothes typically sold in Taiwan for slender-boned, boyish-framed girls here. My friend isn't quite as voluptuous but she is tall - taller than me, in fact, and I'm no shorty. Buying clothes in Japan is just as hard for her, doubly so because everything is that much more expensive.

So, given the fact that neither of us is a big spender, we've got a lot of cred for accurate reviewing when we do buy something.

In department stores, prices are almost the same, especially when it comes to high end goods that are popular with upper middle class women in both countries. Designer items are particularly expensive in Taiwan due to import duties. Outside department stores it's a different story.

Thanks to shoddy but cheap products from China flooding the market here, stuff is dirt cheap. When I wanted to buy a coffeemaker, I went out and bought one. It wasn't the best quality but hey, if it ever breaks I can buy a new one (not good for the environment, I know, but even the expensive ones here seem shoddy). When I need new clothes, I can go out and shop carefully, and if I find something I like I'll generally buy it without too much worry as to the price.

If I lived in Japan I wouldn't do any of these things - partly because stuff would last longer, and partly because "not worrying about price" is a recipe for disaster in Tokyo. You may as well drop your pants and bend over. I'd have to be very circumspect about what I bought and how much I spent.

So all in all - her stuff is of better quality and is longer-lasting. Mine is easy to come by and I have more leverage to buy it, but it won't last that long because it's all Made in China.

Transport

It's hard to compare transportation in Taipei and Tokyo, as both have their upsides. Tokyo is awash in transportation, with a web-like system of subways and trains that covers virtually every inch of the metro area. Public transit in the countryside and smaller cities is similarly good. Even in Shizuoka town I never had to worry about how to navigate without a car. In Taiwan, traveling to the countryside carries the question "once we're in the town, how will we get around?" You can get a bus to almost anywhere (with some notable exceptions), but once there it can be very hard to do anything. Ever tried to explore Taidong without a car? There ya go.

Transit in Taipei is cheaper though - I can afford to ride the MRT and buses because they don't cost a mint. It's easier to figure out with more English help and signage and is more logically organized in one clear system. Even the buses, which are run by different companies, are integrated. In Tokyo, without a SUICA card, you're at the mercy of the different private subway line companies. It's impossible to figure out and I've screwed up more than once trying to deal with the subways there.

There's also the fact that in Taiwan, taxis are exceedingly affordable. If the transit connection between buses or trains is too much to bother, you miss the last train for the night or you're running late, a taxi is a real option that won't break the bank. I wouldn't even try to take taxis in Tokyo because I like to not be poor.

This is the most painfully apparent in airport transit. Getting into town from Tokyo Narita costs easily $12 US per person. Getting into town from Taipei Taoyuan costs...$4 per person. For the cost of the train in Tokyo, you could get a taxi from the airport in Taipei. Lower salaries or not, this means that Taiwanese can afford to see Japan's offerings and go one better.

The cost of transportation in Japan is one of the main prohibitors for traveling around the country. Our high speed rail is half the cost of theirs. Our trains and subways, too. Our buses leave theirs in the dust cost-wise, and if we need a car, chartering a car and driver is within our budget in a way that doing so in Japan could never be, even with a higher salary.

Rural Life

As little as I can focus on rural folks in this post, it is true that the average rural Taiwanese person is still poorer on a very real level than the average rural Japanese.

Food and Nightlife

Hands-down cheaper in Taiwan, and just as good. It's silly to compare sushi with stinky tofu, but you can compare one of our favorite pub cafes (Zabu in Shida) with the little izikaya we had dinner at the last time we went to Japan.

The food at the izikaya was spectacular (except for the weird mayo-relish-caramelized onion chicken thing) and we each had three glasses of sake/umeshu. We tried chicken sushi for the first time - yes, that's raw chicken. The bill came to about $35 USD per person. In Japan that's not bad. In Taiwan we could have enjoyed the entire meal with alcohol for that. At Zabu we regularly get a selection of good food (I particularly like the salmon flake citrus rice balls) and 2 high end imported beers each, and spend maybe $30 USD in total. With food and drink that much cheaper, it's no wonder that Taiwanese can go out more.

Anyway, there ya go. With a strong bias towards Taiwan as I'm writing this and not my friend, but that's my comparison of observed expat life in Tokyo as opposed to Taipei, keeping Purchasing Power Parity in mind.

*I don't mean that Taipei looks shabby. It's just that compared to Japan, if you don't have a shiny silver robot and hovercar, you look shabby. Next to Japan, America looks shabby.