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

Thursday, November 29, 2012

Let's Burn Some Stuff

Here is just a brief thought on the rising utility and health insurance premiums in Taiwan (I believe the premium rate hike has not taken effect yet, no? If so, I haven't noticed it in my paycheck).

You know, I do think this stuff was necessary. Costs go up - at some point the cost of electricity probably did have to be raised. Gas went up, if I am remembering correctly - well, gas is going to do that if we keep relying on it as supplies dwindle (whether due to natural means or market manipulation), and we as a global society are better off pouring money into renewable energy research rather than pretending that continuing to rely on fossil fuels is in any way a viable long-term strategy.

Health insurance premiums have to go up, too. While I do feel the government needs to look at National Health Insurance as a social welfare issue, and not an institution that needs to break even - which means that yes, the government should be willing to pour money into it if there's a gap, and absolutely not let it or labor insurance/pensions go bankrupt - there's a point at which more money is needed, and we've reached that point. If I felt we'd get better coverage out of our National Health Insurance plans, I'd be happy to pay higher rates. We probably won't, but coverage is good enough now (with room to improve, though) that I still feel that paying a higher rate is acceptable.

I am absolutely in favor of a higher capital gains tax - and not the joke of a tax that they want to push through. A real capital gains tax. I know, I know, rich people get all skittish when others suggest that maybe society and taxpayer-funded infrastructure (not to mention cronyism and predatory market practices) helped them amass the fortunes they have, that they did not in fact Build That (or more accurately build those) all by themselves, and that they should be required to give back to the society that helped them get ahead. They get all huffy and sell off stocks and make a big stink. I say too fucking bad, boo hoo, let me call the waaaahhhmbulance on ya, and play a tune on this tiny violin while you are taken away. I feel this way about Taiwan and the USA both.

But...see...here's the problem. That's me. I count as middle class if not upper middle class in Taiwan (although I certainly don't own any luxury apartments or anything like that - I consider such things to be the provenance of the wealthy, not the upper middle class). I can afford these price hikes. I can just about keep ahead of inflation and, unlike most of the country, I have seen my real wages increase over the past 6 years, from crummy cram school ghetto (thanks Kojen, for paying me crap, that's why I quit after a year - that and the Saturday hours and not really liking my coworkers - but mostly the pay and the hours) to "doing pretty damn well". I can say I am willing to pay higher health insurance premiums and not get too het up about my own electricity bill, because I can afford to absorb the costs.

So, is it any wonder that people are upset that they're being told to pay more for necessities, and yet aren't earning any more money to cover the costs, while still being among the most overworked and underpaid people not only in Taiwan, but in the world? I'd be upset too! I'm upset just thinking about it!

Which - I'm at least happy that in the US that didn't quite happen. Despite Obama being arguably better for business, big business's Guy was Romney, and that loser, well, lost. So there's hope.

What's wrong with all this - and wrong with the poor administration of Ma Ying-jiu and the ruling KMT - is that all these costs are going up, as they arguably need to, but nothing substantial is being done to address wage stagnation and inequality. New graduates are being offered wages as unacceptably, absurdly low as NT$18,000/month. Who in their right mind thinks that anyone can live on this? I realize many bosses expect their underpaid new hires to live with Mom&Dad, but that's not always an option. It's dangerously close to Wal-Mart paying employees such low wages that they hover at the federal poverty line (fuck Wal-Mart, by the way), and by "dangerously close" I mean "actually worse, but you don't see it because these kids have parents who help out".

I mean, it's absolutely clear that neither Ma nor anyone else in the KMT gives a damn about people whose real wages have not increased in about a decade, who will have trouble absorbing these higher costs. While Ma didn't come from great riches, it's clear he's never experienced poverty, and doesn't understand it. He's Taiwan's Mitt Romney (except people actually elected him - why, oh why did they do that? But they did...so oh well). I am not sure anyone in the government who has any power to do something has even the faintest idea of what it's like to be lower middle or working class and struggling, worried in very real terms about how they're going to pay their higher bills and afford food, housing and school fees.

So - why are the costs going up, while nothing is being done to help those who can't keep up afford them better? Who thought it would be a good idea to tell the most struggling segments of the population, in no uncertain terms, that you couldn't give a crap about their overwork, lack of employment opportunities (underemployment and overwork being two other huge problems), and certainly not about their stagnant wages, but oh, they're going to have to pay more for these things, 'cause we all gotta chip in? But oh, no, we wouldn't think of inflicting an actual higher tax on the wealthy people who support our party. Then they might be angry at us. OH NOES!

Honestly, if I were a middle class, mid-level Taiwanese office worker, I'd be furious. Like 我歸懶趴火 furious. Like let's burn some shit DOWN! furious. Like, "you want me to work 12 hours a day, never give me a real raise, pay me at well below international rates so YOU can remain competitive while *I* struggle, and then raise my utility and health care premium fees? Well you can just suck it! BURN!"

But, of course, that's not what's happening. What's happening are those resigned sighs, those "what can we do?" faces, those "this is life, we can't change it" eyes, those "I could change jobs but the new boss wouldn't pay me any better or work me any less hard" undereye circles, and nothing changes. Even if the KMT were voted out, would anything really change?

No. That's why I say let's BURN THINGS!

Or not, because that wouldn't fix anything either.

It's enough to drive you mad.

Don't worry, middle class people of Taiwan - the KMT'll help you out by putting a little more into your red envelope to buy your vote again in a few years.

Saturday, October 27, 2012

天龍國

Everyone wants to move from the right to the left.
I started out on the right, and am not sure how I feel about having made the jump to the left.

I've been trying to formulate my thoughts on the wealth gap in Taiwan for some time now, and while I have many opinions, they're all just sort of swirling around incoherently at the moment - at least in English.

Then, I blurted my thoughts out in Chinese on Facebook the other day, and it's probably the clearest thing I've said on the subject, and best captures my feelings. So I'll just use that.

我來台灣時就住在右邊,真的沒有錢,跟其他的在補習班教小朋友的老外一樣,老闆控制我的簽證。六年後,我是永久居留,比較有錢,人生不錯,資格和經驗也改善了才搬到左邊,現在真的可以說我住在天龍國。這個感覺好奇奇怪怪,當天龍國人是不是大家的夢想?但,可能有一點失散?台灣人工作的好努力,真的太努力,他們人生就是7-11的(早七晚十一,辦公室always open),為什麼我有足夠的錢住在那個左邊的天龍國,其他的比較努力的人不可能呢?天龍國現在是我的生活,需要記得我愛台灣,但全台灣不是天龍國,大部分也是右邊的。還需要抗議為了改善勞動薪水,台灣人生活水平,勞動法

Friday, June 8, 2012

Big Pharma

Cyanide and Happiness, a daily webcomic
Cyanide & Happiness @ Explosm.net


Back in the USA I hated Big Pharma.

Now I work (in part) for them.

My reasons back home were due to, well, events like those discussed in this article - affording drugs is a problem around the world, and a two-pronged issue. On one side you've got areas so poor that even low-priced drugs cost too much, and on the other you've got the USA, where people generally have more money, yet drugs are so astronomically expensive that many still can't afford them despite their exponentially better overall standard of living.

From people I know in Big Pharma back home, I can say that the argument does ring true: drugs are sold in the USA at exorbitant prices, and at far lower prices elsewhere, because companies both want to recoup clinical testing costs and make a tidy profit (a little too tidy if you ask me), and feel that the USA is the market to milk, because we can apparently "afford it". Except we can't.

It also bothers me that they throw so much money behind lobbying the government in their own interests, which mostly counter the interests of the American people, but pretty much all industries do that.

Working at a lot of pharmaceutical companies in Taiwan, though, makes me dislike the whole industry a lot less. I wouldn't go so far as to say "like" or "trust", so I'll stick with "dislike less".

I think it has a lot to do with regulation. I know the health system in Taiwan is imperfect, but it's about ten kachillion times better than the travesty of a "system" in the USA. Don't even bother arguing with me on this, I have a mother who is facing cancer that is not going to go away, and the possibility of losing her company-backed health insurance and very few options after that, so seriously, do not even start. I will tear you to shreds.

Here, we have our imperfect-but-wonderful national health insurance, and a heavy hand in regulating drug prices. I don't agree with some of the laws: the idea that doctors are forced to give certain medications first and others can only be tried later, and that some can't be tried until certain symptoms or issues occur or criteria are met, ties doctors' hands unfairly: it takes away from them what should be their expert judgment regarding what would be best for the patient and puts it in the hands of people who can't necessarily make that call: either because they're bureaucrats, not doctors, or because even if they are doctors, they're not there with that individual patient assessing that patient's needs.

The price regulations, however, I support completely. A dearth of price regulation in the USA has brought unconscionable drug prices for things people need - seriously, it's not like you have a choice sometimes, so supply and demand doesn't apply - prices people can't afford and insurance companies don't want to pay. Regulations in Taiwan have kept most prices for the same drugs at reasonable levels.

You can argue this hurts the company, and many who work in pharmaceuticals in Taiwan would agree, but the fact is that those companies are still in Taiwan, still making a profit and still see being in the Taiwanese market as something worth doing. The price controls haven't scared them away. If it were truly unbearable, companies would pull their products and shutter their offices and Taiwan would be SOL. That hasn't happened.

Those same people in the industry, while they might tell you that the price controls are an issue, would generally not argue that there shouldn't be any regulation or any cost control. In my experience (and I have a lot of experience talking to people in many different firms), while they'd like more freedom, they'd agree that keeping drugs affordable is important, and that wouldn't be lip service: they mean it. They wouldn't say it the way a PR schlub for Big Pharma back home would rattle it off a press release and then look the other way as "reasonable prices" became "$1000+ for what should be a $30 compound".

Even if they would - business is business & all - the regulations are there, and it keeps things reasonable. Not perfect, but reasonable. People get their medicine, companies make a profit, and it becomes an industry that does not inspire so much hatred and animosity. Everybody wins.

So what is all this anti-regulation hullaballoo back home? Phooey.

Sunday, March 11, 2012

Thomas Friedman Thinks Taiwan is "a barren rock"...

"I always tell my friends in Taiwan: “You’re the luckiest people in the world. How did you get so lucky? You have no oil, no iron ore, no forests..." Say WHAT?!

I posted earlier today with a link to Thomas Friedman's piece on "Taiwan" - of course, it wasn't about Taiwan at all, which I'll address in a minute - and now that I'm done with that thing I had to do today, I'm free to write about it.

I'm not an economist, so I'll just be a 揚聲蟲 (that first character might be wrong, I'm trying to recall the phrase from something someone told me and I did not write down. If I am wrong, please correct me. I can learn from that). I'll echo Michael Turton's assessment that Taiwan's human capital is a great resource that has been used to great benefit and effect, which is about the only thing the article got right (well, it is also correct that Taiwan has few "deposits" - gas, oil or otherwise - and what it did have has long since been dug out by the Japanese during the colonial period).

Turton is absolutely right that Friedman is absolutely wrong - and downright insulting (well, those words are mine) - in characterizing Taiwan as a "barren rock in a typhoon-laden sea with no natural resources to live off": Taiwan has agricultural potential, an abundance of water (although most of it seems to wash out to sea: I always laugh when I see one of those "Water Shortage - Please Conserve Water" signs above a sink as I'm washing my hands while it's pouring outside) and plenty more to recommend it. I do wonder who these "friends in Taiwan" of Friedman's are, and if they're happy to hear that he thinks they're so lucky to live on a "barren rock" with "no natural resources to live off". 


I want to add before I get into the crux of what I want to say that I take issue with both Turton and Friedman's posts regarding education in Taiwan. Yes, students score well. Yes, the populace is highly educated, yes, Turton's right that a lot of that has to do with the private cram school system.


But...I don't have much respect and in fact hold much contempt for both the Taiwanese public school system and the cram school system.


In the former, yes,  they train students very well in math and science and in taking tests well, and in learning under pressure. They  still don't train in critical thinking or creativity and generally speaking, arts, history, social studies and language education in Taiwanese schools is severely lacking, if not pathetic or even non-existent (one of my students claims there is no such thing as "social studies" - something I had to take for all of junior and high school in the New York State system). Students learn to read and to some extent write English, but not to speak it and rarely do they come out of it with any language other than English. French, German, Spanish and other language "majors" from universities rarely graduate at a level of fluency in their language "major" that I'd find acceptable. I've met people with degrees in French whose French is worse than the best French I ever spoke (much of which I've forgotten), and I didn't major in it. And I studied abroad in India, not a French-speaking country. I find the buxiban system sad - some schools teach well, some teach poorly, all overcharge, work the kids too hard when what they need is time to play, and most English cram schools exploit foreign teachers and pay them very little while milking the parents. The only positive thing I can say about it is that yes, those kids do come out of English cram school speaking better English than most Americans could hope to speak Chinese - because there is, as yet, no Chinese cram school system in the USA. I can't speak for cram schools in other subjects.


I do feel that the teachers in these systems (English schools aside) are too focused on outdated and teacher-centered methodologies and do not teach Taiwanese students to engage critically or creatively with topics or knowledge. Some end up doing so anyway, but many become worker drones who are very good at taking tests, being quiet, saying Yes Sir and doing what they're told. While I do find the average Taiwanese person to be more worldly than the average American, that is not because of the education system. Those poor kids are overworked, under-rested and have no time to figure out who they are or how to be creative or thoughtful. Those who naturally are those things will still be, but they are not traits that are prized.

So why all this praise for Taiwanese schools?

As one Taiwanese friend with a teenage daughter put it to me, "you got to go to school in America and then live in Taiwan and get paid more because you are a foreigner. You are truly lucky." So, I'm lucky because I didn't go through the "study 28 hours a day? What do you mean there aren't 28 hours in a day - study that long anyway! NO FREE TIME FOR YOU!" Taiwanese system, and we're sitting here praising it?



No, thanks.


That was a longer aside than I intended, so...




What a barren rock! With no forests! And no resources to live off!
I am sure others will do a fine job of engaging with Friedman's piece in economic terms, so I'll engage with it in social and cultural terms. Before I do, however, I want to share some quotes from my husband to put my own criticisms into perspective.

"Friedman," says Brendan, my ever-brilliant husband who really should be a professor of something, "has an astounding knack for taking taxi cabs with drivers who have strong opinions and are particularly well-spoken that he can reference in his column to give his words blue-collar credibility. I do not believe these drivers are entirely fictional, but I do believe that he borrows heavily on his own experience and weaves it into the things he hears and references in his writing."

I felt bad when I heard that, because I reference a lot of what I hear in Taiwan and talk about with Taiwanese people - but then, I  do try to quote directly and then speak from my experience rather than weaving so much into the narrative of another person, and I do have an extensive network of local friends, students and acquaintances so I don't feel I'm going down the "this half-made-up taxi driver who is totally blue collar said this thing that I want to talk about because I'm so smart" route. Though maybe I am. I'm sure I'd get more nasty comments if I were, though.

He also pointed out, quite astutely, that "Friedman's specialty, if he can be said to have one, is the Middle East although he seems to have interests in every region of the world. Nothing in his career or writing, past or present, has gave any indication that Taiwan is his favorite country. He was using it as an example to make a point about economics, not because it is actually his favorite country." He could have led with any country that is resource poor but doing well because it's rich in well-honed human capital - it didn't have to be Taiwan.

I agree - I'm not even sure Friedman has been to Taiwan, and if he has, he certainly didn't explore it in any depth. From his description, if he's been here at all, he might have seen Taipei and possibly some of the uglier parts of the west coast plain. I'm thinking that industrial bit in Taoyuan County, the one out past Guanyin where the main TECO plant is.

Finally, "you do realize, Jenna, that by 'Taiwan has no forests' he was actually saying 'Taiwan does not export lumber', right? He did not mean 'forests' in terms of 'has lots of trees'."

Right. But that still kind of bothers and even slightly offends me. I can't believe that anyone who has seen enough of Taiwan to call it their "favorite" country would use the adjective "barren" to describe it.

Poor, barren Taiwan. These must be Fake Plastic Trees because Taiwan has no forests.
I mean, I am sure that my in-laws, who visited very recently, did not think of Taiwan as a "barren rock in a typhoon-laden sea". I'm sure they saw it for what it was: a somewhat polluted country that is nevertheless beautiful and brimming with culture, life, agriculture, good food and friendly people.

Taiwan is one of the best countries in Asia in terms of national parks, protected areas and forest recreation areas for protecting its forests - oh yeah, it doesn't have forests - even though there are environmental issues that need to be addressed otherwise (the forests in the mountains are reasonably well protected, but I am concerned about environmental degradation in the plains) - how could anyone who claims Taiwan is their "favorite country" have not seen this?

Yes, I realize that different people like different things and a bookish economist with blue-collar-cred delusions might genuinely pick a "favorite country" based on economic indicators, not on the cultural framework and natural beauty of the country itself, but another part of me says - how sad is that?

It offends me as someone who genuinely, truly would say that Taiwan is her favorite country. I mean, I have some affection (more like tough love and "I love my difficult child but at times don't like her very much") for the country of my birth and I also love India and have an abiding affection for Bangladesh and an ancestral-ties sort of love for Armenia and Hatay (in Turkey), but if asked for just one country to name as my favorite I think I would pick Taiwan. I have stayed for over five years, after all. I don't particularly like some pompous teller of stories who thinks in commodities and not people, who trades in globalization and not beauty, coming in and saying "Taiwan is my favorite country" for the purposes of making a point in his widely read column, when many other countries could have filled that space. After all, he didn't give any heartfelt reasons for loving Taiwan. Does "very interesting economic paradigm" = love? I don't think so.

So, my advice is, go take a hike, Thomas. I mean that seriously. Not being sarcastic. Fly your statistics-spouting ass to Taiwan and take a hike. I'll be your guide.


I'll take you hiking around Lishan, I'll take you to Hehuan Mountain and I'll take you to Yilan. Maybe I'll hire a guide to haul your butt up Jade Mountain (which I haven't done yet, am supposed to climb in two weeks but probably won't be able to as Paiyun Lodge appears to be closed). We'll hike up to the Japanese temple ruins above Jinguashi and maybe do the easy walk around Bitou cape. I'll definitely take you to Yuemeikeng:


...and then you tell me if Taiwan is a "barren rock" with "no forests".

Because Taiwan is my favorite country too, but I don't love it because it's a good economic example of resourcefulness and well-honed human capital. In fact, Friedman glosses over how many mind-numbing hours those well-educated folks have to work in Taiwan to earn a living. I'm not sure I'd paint such a rosy picture if I were him, because the Taiwanese workforce is a soul-killing thing, no matter how "innovative" it might look to Friedman.  While I am happy to praise the high education and resourcefulness of the Taiwanese people generally, are we really praising a system in which "work yourself to death" is not the joke it is in America, but an idiom that describes a real problem?

I love it because:

- Well, the people. I've written before about friendship in Taiwan but underneath all that, I do find it easier to make genuine friends and true connections with locals than I did in China or than my friends report about Japan. Etiquette differs from back home and I do get annoyed on occasion, but more generally I find people friendly, easy to talk to, and easier to befriend than I believe I'd find elsewhere in Asia. I also find them to mostly be hospitable and kind (although there are jerks around the world) and more progressive than the rest of East Asia.

- The food. I know a lot of foreigners aren't impressed (both Michael Turton and Ralph Jennings have said as much) but I love it. The seafood, the deep fried snacks, the stinky tofu, the pickled bamboo, the preserved tofu, the mountain pig. You haven't lived until you've eaten your fill at Raohe or Miaokou Night Markets, Donggang Harbor or Auntie Xie's on Bo'ai Road or at one of the aboriginal restaurants in the mountains. My in-laws, after a week of eating the best Taipei has to offer (in my eyes - no Ding Tai Fung), praised the simple home-style Taiwanese meal at Auntie Xie's the most. Cold chicken in a sour oily sauce, a steamed red fish, some peppered pork and fried-potato like niu bang, taro congee and a few other simple but delicious dishes seemed to be one of the highlights of their culinary experience.

- The scenery. NO FORESTS MY BIG WHITE ASS. I love hiking and I love that generally I don't need to drive to get to many fantastic hikes.

- The convenience. The other day, I was thinking of going out for Sam Adams. I thought, "The 7-11 across the lane has it, oh, but that means I'd have to cross the street. I could also go to the Wellcome or the other 7-11 and not have to cross the street." Then I realized how freaking ridiculous I sounded. Also, National Health Insurance.

- The relatively clean environment - sure, there's pollution, but I've lived in India and China, so shut up.

...and other reasons, but I think I've made my point.

This is one thing that was missing from Friedman's piece, and sadly, also missing from Turton's analysis (though I don't want to criticize too much, otherwise I agree) - no actual, visceral caring for Taiwan. Nothing about the charms of the country that make it a place worth living and a country worth loving. Nothing to make you believe there's any real emotion or attachment there.

While I understand on some level that Thomas Friedman doesn't actually care about Taiwan all that much, I do hope someday he'll shut his blowhole, put down his textbooks, turn away from the charts and graphs, stop pretending he's a blue collar Everyman and come to Taiwan to see why it's worthy of being his favorite country for real.


Friday, February 3, 2012

The Chinese Jungle

Photo from this site - please don't sue me


There have been a lot of online petitions and public outcry in the West recently over the treatment Chinese factory workers endure. Most of it, thanks to This American Life, The Daily Show and other outlets, has been directed at Apple, whose products are made in China by vendors and suppliers.

My feelings on this: I agree completely with the sentiment, but activists: UR DOIN IT RONG. Putting pressure on Apple might bring about some small improvements but really it's like threatening the Death Star but letting Palpatine and Darth Vader run amok. 

Don't get me wrong: I agree. Factory workers in China are forced to live horrific lives. Excruciatingly long work days, mind-explodingly boring jobs putting together the same small part hundreds of times a day, all day, every day, dormitories that house more to a room than a cash-strapped college dorm (and those in the same room don't even know each other), bosses who regularly treat workers badly (and have been known to treat female workers like sex objects) - it's truly disgusting. It's something nobody should accept or put up with. It's Upton Sinclair for the 21st Century, and we rich folks with iPhones - yes, I am using "rich" to mean comparatively well-off, not 1% rich - aid and abet it by buying the products and often rewarding the lower prices that inhumane labor practices allow by buying more of the products when prices are lower. I'm totally on board with that. It's a massive, evil thing. I have wanted a new smartphone since my old one was stolen, but I haven't bought one not only because I'm trying to be careful with money, but also because the thought of supporting that system sickens me. 

Of course, every time I buy something made in China or really any developing country, I'm still supporting that system - I can't deny that. 

The thing is, Apple isn't doing this. Apple is surely aware of it, and Apple turns a blind eye to it, yes, but Apple isn't doing it themselves. 

Those employees don't work for Apple - they work for Foxconn, or any of the other vendors and suppliers that Apple has approved  (although Foxconn is the biggest). Apple is not Foxconn. Foxconn is not Apple. Sure, Apple aids and abets Foxconn's treatment of workers in China, but they're not the same company. You can't say "Apple needs to change its labor practices" or "Apple's workers" - they're not Apple's workers. Foxconn needs to change its labor practices - as does pretty much every other manufacturer with plants in Dongguan, Kunshan or anywhere else in China.

It's not even that simple: Apple hires ODM and OEM firms for its various parts - often different components, from speakers to camera modules to touch screens - are made by different companies. This is true of basically every electronic product you buy - the people who actually design and produce the stuff you use aren't Toshiba, Dell, Acer, Apple etc.: they're companies you've never heard of (I'd name names but I actually teach for a lot of these companies and have signed non-disclosure agreements - to say anything that could be perceived as negative about specific ones on this blog could land me in legal trouble or see me out of a job. So I won't - because I'm totally a part of the system too). 

Even they have vendors - a lot of what Foxconn "produces" is actually designed through a complex system of vendors who design and manufacture the components, and a lot of guanxi (networking) is involved in which vendors get which contracts.

What's more, as most people who live in Taiwan know, the design and R&D in these companies tend to happen in offices in Taiwan, where the design and engineering talent seems to be concentrated. The manufacturing happens in China, often at factory sites owned by the Taiwanese companies and headed up by Taiwanese bosses. The guys who design this stuff are Taiwanese, the poor sods in the factories are Chinese, and their Taiwanese bosses often have little sympathy (side note: this is not always true. I teach at companies like these and often have students who are sent to China for long periods to deal with manufacturing issues. A lot of them are good people who agree that working conditions are abysmal and would like to do something about that. Let us not paint them all with the same brush).

So Apple - or whoever - calls up Foxconn to talk production. Foxconn assigns vendor codes to other companies who help design components (although Foxconn doesn't seem to farm out manufacturing, it  does at times farm out design). Those guys are all in Taiwan or occasionally Korea. Their lives are not as horrific as the Chinese factory workers', but they still work terribly long hours - I'd say unfairly long, for relatively little pay - often arriving between 7 and 9am and working until late at night. Sometimes they're lucky and get to go home by 7pm. Often they're in the office later, or bring work home and keep at it until midnight. These guys have sympathy for the horrific lives of the Chinese factory workers, but they're overworked themselves - what can they do? "This is just how it is" is a chorus you often hear repeated in this sad song.

This is why, while my heart is with the activists and those who speak up, deep down I just don't think it will work. Sure, you could put pressure on Apple, but the workers in question don't work for Apple. Apple can put pressure on Foxconn - threatening to change vendors, for instance - and Foxconn can decide whether or not to reform labor practices. It might have some effect, but probably not much, probably diluted, and probably short-lived.

Do you really think, though, that Terry Gou gives a damn about some American hippies whining about labor practices in Chinese factories? I assure you he does not. Terry Gou cares about money. You want to get Apple's attention and by extension Gou's? You stop buying iPhones and other Apple products. You make it clear through a strong PR campaign why it's happening. Then, and only then, might you have some impact on what Foxconn is doing. In the meantime, of course, a lot of engineers  - my students - working for ODM companies in Taiwan get laid off: a sad side effect. Most of them are just working their butts off 15 hours a day to support themselves and their families. Most of them don't want to see Chinese factory workers treated badly, either, but they want iPhones too - most have them - and they don't think there's anything they can do. Partly because "this is just the way things are" and partly because they're overworked too, and partly because their livelihoods are linked more closely to those Chinese factory workers.

And then, if labor practices do improve, prices will go up. We say that's fine, but we're not everyone - sales probably will drop and Foxconn - whom I don't teach for, by the way - will find some other way to cut costs, or secretly go back to treating workers badly and try to do so in less transparent ways, or Apple will find another vendor who does the same thing. Plenty of Chinese workers who wanted to keep their terrible jobs would lose them. A blessing in disguise for some, a ticket to poverty for others.

It gets harder. You can say "well I just won't buy Apple products" but they all do this. HTC has been in the news for overworking its employees (I have no contract with HTC, I should add). Pretty much any electronic product you could buy is produced under conditions just as bad. You can't escape it by buying a dumbphone and giving up your mobile access: those same companies produce the components that go into dumb phones, too. If you want to escape it, you can't have any product whose components were made in China. If we all do this, that means, by extension, putting many of the overworked Taiwanese engineers out of work, too. You, my activist friend, are fucking stuck.  And it blows, it really does.

So how can it change? And how do I feel, being a part of this system?

Well, it probably won't change much at the hands of angry Westerners who want Chinese factory workers to have better jobs and lives - as much as I wish that could make a difference. It's systemic, and so the entire system needs to change. Asia - especially China, but really Asia as a whole - needs to have a worker's revolution not unlike the labor reforms that America went through post-Upton Sinclair. Ideas like "free time", "worker's rights", "fair pay" and "reasonable work responsibilities and hours" need to take hold. As of now, they have not - at least not in Chinese factories.

I don't hold up much hope that such ideas will transmit from the West to factories in China directly. I can't think of two things more different than the job of the person who makes the dingbat that makes something in an iPhone run and the job of the person who owns the iPhone. I can't think of anything more different than their two cultures, lives, life experiences and biases - although their desires and goals are probably fairly similar: after all, everyone wants a good job, good pay, free time and the chance to have a happy life.

I do, however, have some hope that these ideas will start to influence the tech company offices in Taiwan. In some ways, they already have. Taiwanese office workers are well aware of concepts like overtime pay, work-life balance and flex-time. They even get guaranteed maternity leave and a few days of paternity leave (which should be more, but that's a different post) - something Americans don't always get. More and more workers want those things, and more and more hope that once the economy picks up that wages will rise to fairer levels. The ideas are slow to infiltrate, but they are here and I believe they will burrow deeper as time goes on, especially if the economy improves.

From there, you could start to influence the Taiwanese factory bosses. Terry Gou and Cher Wang - who quite literally have had employees work themselves to death, a phrase that's used as a joke in the USA but is deadly serious here - might have an employee mutiny on their hands, or have trouble recruiting good engineers. They might then decide to start treating workers better. From there it could start to seep into China, and things might get better. Maybe. 

In tandem with that, the Chinese economy needs to develop - it needs to reach a point where many of those workers who are quite literally dying of overwork and mistreatment don't need those terrible jobs. Sure, manufacturing will likely be moved again, to another Third World country with abusive labor practices and it'll all start again, but maybe we'll all be more aware by then and it won't take so long to change things.

How do I feel about this? After all, my livelihood comes from working for these companies. I haven't named many names because I teach at many of them, and not only am I legally obligated not to bring up names, but I do respect my students. They are generally good people stuck in a crappy system, just like you and me.

Well, I feel like crap, sometimes, knowing that my salary is also paid, ultimately, off the back of these workers in China. That the Taiwanese companies wouldn't be able to afford the training budgets that pay for my services if they didn't treat the workers in their factories in China like beasts of burden.

I also feel like, as much as I am able, that the only way to make peace with this is to try to be a part of the solution - because this is my job, and I like my students, and I genuinely want them to gain business skills and improve their English so that they, too, can move up to something better, and I wouldn't be any morally cleaner teaching the engineers of tomorrow at some underpaid buxiban job.

It probably doesn't have much effect, but the best I can do is to be a grain of sand. An irritating, noticeable grain of sand in everyone's underpants that agitates and calls for change. I'm not shy in saying, when asked, that I think my students work too hard, that work culture in Asia is seriously. fucked. up. and that it's even worse in China, and hey guys, you know this so keep that in mind if you're ever the boss. I try to "be the change I want to see in the world" - I have a well-paid job and make it clear that my greatest benefit is free time and the ability to structure my own life and have a great deal of freedom. Some students don't really absorb the import of this; others think "great for her but this is how things are in Asia". Some, though, look at me like a light has turned on in their heads: if she can be free and earn a good living, and if she can balance life and work and be satisfied on both fronts, why can't I?  She is not automatically more entitled to it than I am because she is foreign, or white, or a native English speaker. I could do this too, if I really wanted to. Or could I? Could I? Hmm.

If nothing else - because there is nothing else I can do - I try to be an example of how important personal time, fair pay and a good life really is, and how that is worth fighting for. It may not do much now, but the more that this idea gains exposure in Asia, the better. I'm one person, there's not much I can do, and I'm not Asian and don't want to make this all White Man's Burden-y, but it is what I can do.

                                                                                                                

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.