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Sports Ministers Meet in Korea – IOC Chief Calls it “time of Asia”

Sports ministers from Korea, Japan and China met in Pyeongchang, Korea from September 22-23 to establish a framework for the upcoming Olympics in their countries. These games; Pyeongchang 2018, Tokyo 2020 and Beijing 2022 are being seen as the games of Asia, and IOC President Thomas Bach who was in attendance, called this the “time of Asia.”

The Korea Herald reported on September 23 that the three ministers, Cho Yoon Sun from Korea, Liu Peng from China and Hirokazu Matsuno from Japan issued a joint statement, the Pyeongchang Declaration, calling for expanded sports exchanges and cooperation. Such cooperation would, it is hoped, result in Olympic success for all three countries involved. The Korean minister also hoped that cooperation in the area of sports could be extended to other areas of cooperation among the participants. The next meeting is scheduled to be held in 2018.

So what is your opinion about the ” Asian Olympics”? Do you think this is the century of Asia, and world influence has shifted to the East? Please let us know what you think about this.

Photo: Republic of Korea via flickr

ASEAN Destinations – Mandalay, The Second City

Myanmar’s second largest city Mandalay is a place to watch. Like the country as a whole, “potential” is the operative word. Emerging from years of self-imposed isolation, the country is poised for a modest 7% growth according to the World Bank. The country has potential, as does the city of Mandalay. Things are moving for this tourist destination, and Mandalay has experienced a 26% increase in tourists since 2014. A lack of transportation, particularly by air is holding back development of the tourist sector; there are only eight domestic and five international airlines serving Mandalay.

Mandalay has a relatively short history; it was founded in 1857 as a capital for King Mindon, and is the last royal capital. Lack of infrastructure continues to be a problem. According to the Asian Development Bank (ADB) just 55% of the population has piped water, and that is for only part of the day. In September 2016, the Government of Myanmar and the ADB signed an agreement for a $60 million loan and a $4 million grant for a sustainable wastewater and drainage management system.

In Mandalay things are moving, and at their own pace. Perhaps “pace”shoud be considered as a key factor in moving both Myanmar and Mandalay forward in a sustainable manner.

Temple Photo: Paul Arps via flickr

Photo: King Mindon

ADB Loan announcement

The PRC at 67 – Getting Old or Just Getting Started?

Sixty-seven years ago, on October 1, 1949, Chairman Mao Zedong stood above Tiananmen Square and proclaimed the establishment of the People’s Republic of China. Heading into its seventh decade, the PRC has traveled a turbulent road to the present; local wars, famine, earthquake, political strife, progress, pollution and finally Reform and Opening Up. And now China is the world’s #2 economy and a super power. Its science and technology are first rate, and it has an ambitious and credible space program. The Communist Party remains in power, and its president, Xi Jinping promises moderate prosperity for all Chinese in the future. Faced with economic slowdown and long standing problems such as the Taiwan issue and a restive Hong Kong and challenges to its claims in the South China Sea how will the country fare in the coming decades? Will the China dream be realized, and how will the country change in the future. Please log in and give us your thoughts on this question.

Photo: by leiners via flickr

And now…A new job for Alibaba’s Jack Ma

by David Parmer/Tokyo

Jack Ma, the second richest man in China, Tai Chi player, fan of Wuxia novels and founder and executive chairman of Alibaba, just got a job offer. And Mr. Ma accepted. President Widodo of Indonesia himself (in a move that harks back to the Romance of the Three Kingdoms where Liu Bei went to recruit Zhuge Liang) went to Hangzhou and asked Mr. Ma to be an advisor to Indonesia’s committee of 10 ministers on e-commerce. And if there is anything that Mr. Ma can claim expertise in, it is e-commerce. Indonesia’s e-commerce sector has made remarkable progress since 2013, and the future only looks still brighter. Indonesia’s enormous population and vast size make it both promising and challenging for e-commerce.

What will Mr. Ma bring to the table? Experience, for sure, but probably more importantly–vision. If you are going to think big and act boldly, then it will surely be of great comfort to have smiling Jack Ma from Hangzhou, China sitting next to you.

Photo: WEF, Davos 2015 via flickr

G20 Summit 2016 Hangzhou – What do you choose to focus on?

The G20 Summit in Hangzhou, Zhejiang Province on September 4–5 was either a big success or a series of small misses. It depends on what you focus on. The western press focused on areas of friction during the event, particularly regarding the press and the Chinese hosts. US President Barack Obama played down the friction and said that it takes place at these kinds of events, even with US allies.

This is perhaps the last meeting for President Obama and President Xi during Mr. Obama’s term of office. Of importance was their committing to the Paris agreement to curb emissions leading to global warming. This may have been the high point of Mr. Obama’s Hangzhou visit.

For Mr. Xi, and the Chinese side, the G20 was a Chinese “win” showing China’s ability to host such an important international event and underscoring its decades of “reform and opening up” which Mr. Xi covered in Keynote to the event. In his closing remarks Mr. Xi noted the achievements of the meeting and highlighted the change in the function of the G20 is global economic problem solving.

So what happened at Hangzhou? Nothing much, or a great deal? For China, a great deal, and all of it important.

President Xi Jinping’s closing remarks on the Hangzhou meeting

G20 Leader’s Communiqué on closing of Hangzhou meeting

Photo: Narendra Modi via flickr

Is The Lifting of Sanctions Changing the Face of Iran?

by David Parmer/Tokyo

Many people had high hopes that the lifting of sanctions after the signing of the Iran nuclear deal in July 2015 would change the shape of Iranian society, and point the country in a new direction. Well, it has–to a certain extent. Here is the good news. Oil production has dramatically increased, GDP has been raised, and trade has been expanded. The economy is on track for 4%+ growth in 2016 and 2017. What’s more foreign trade delegations have come to Iran like guests in a hotel revolving door. And deals are on the table with the likes of Boeing, Airbus and GE. And reports suggest that trade and financial transactions are a lot easier after the lifting of sanctions. So where is the rub?

Iran faces a strong headwind of opposition from a variety of sources. Domestically, the country’s own hardliners are skeptical of the nuclear deal. Certainly, the Revolutionary Guards, the protectors of the Revolution and their own economic interests are not cheerleading for the deal and its aftermath. President Hasan Rohani is getting no support there. And then there is Saudi Arabia, champions of Sunni Islam who do not want to see prosperity come to their archrivals, Shia based Iran.

There are others who never supported the deal, and fear that Iran will use its newfound wealth to support its proxies in the region including Hezbollah. These “never supported” groups include right wing America and Israel.

Will the lifting of sanctions (and in fact it is really “some sanctions”) change the Iranian society and economy? It will, but other factors must also be addressed, and these include corruption and lack of transparency. There is also the question of the Revolutionary Guards being a major player in the country’s economy. Given a chance, Iran will become more moderate and will create a better society for its citizens. It will become a trusted member of the community of nations in its neighborhood and in the world. If Iran can weather the strong winds of opposition blowing against it, then maybe there is a real chance for change.

Photo: Giorgio Montersino via flickr

The Road Back to Mosul

by David Parmer/Tokyo

Mosul, northern Iraq, the capital of the “Caliphate” set up by Daesh. Mosul, the city that fell to Daesh in 2014. Mosul, the city where Iraqi forces put down their arms and abandoned them along with their equipment to Daesh. Mosul, home to around 2.0 million people living under the terror that is the fundamentalist vision of Daesh. Mosul, once one of the few places in the country called Iraq that was “working.” Mosul, a city that must, and will be, liberated from Daesh.

The offensive is coming and the pieces are falling into place. Kurdish Peshmerga, YKK and PKK fighters along with the Iraqi Army and international support and US advisors will move on Mosul in an effort to retake the city. The timeline is for the action to begin this year. The Prime Minister of Iraq, Hider al-Abadi is quoted as saying so.

(Kurdish PKK fighters)

Reports also indicate that there are between 8,000-10,000 Daesh fighters in the city. They have had almost two years to create and improve their fighting positions and barricades. Some estimates say that it will take around eight Iraqi and two Kurdish brigades to retake the city. This offensive will get extensive coalition logistical and medical support. The coalition will, of course, supply air power to aid in the fight, before the offensive begins to soften up Daesh positions, and during the offensive to support ground troops.

The question is: will the attacking forces ever be “ready” enough? Unless Daesh fighters simply run away, there will be a long and bloody fight. Tremendous suffering will be inflicted on the civilian population, and in all probability, when the fighting is finished, Mosul will be in ruins and its people mostly refugees. Night after night the media will show dying and destruction in the northern city of Mosul. Do you have any thoughts on the retaking of Mosul? If so, log in and let us know.

Retaking Mosul Is Now Upon Us, VOA (Voice of America)

Iraq on Track To Retake Mosul This Year, Reuters

Photo: Road Sign, Jeffrey Beall via flickr

Photo: Kurdish PKK fighters via flickr

China’s Baidu Search Engine Hits A Rough Patch

Generals Know of Winning and Losing

勝敗乃兵家常事

Baidu co-founder Robin Li ( the 7th richest man in China) has had to face some pressing problems recently.

Baidu profits for Q2/2016 are down 34.1% year on year. And Mr. Li himself admits that it may take 3-4 quarters for things to turn around.

The problem? Baidu has come under public and private scrutiny for its advertising and search reporting policies. Users complain that they often can not distinguish between genuine search results and paid advertising. To compound this, a college student, Wei Zexi followed therapy for cancer found on Baidu and died.

On July 28, Mr. Li described countermeasures and future prospects during a conference call on Q2/2016 results. Mr. Li said that tighter control and new regulations will suppress earnings, but in the long term Baidu will enhance the Baidu user experience. He promised to reduce sponsored links as well.

Since its founding in 1999, Baidu has steadily moved forward to become China’s premier search engine. Now it seems it is time for some real soul-searching and implementing effective measures to restore the company to profitability and to mend the damaged brand in the eyes of China’s massive Internet-using public.

Photo: Bidu CEO Robin Li Fortune Live Media via flickr

Baidu 2016 Q2 Balance Sheet via Baidu

Baidu 2016 Q2 Earnings Call Transcript

Asian Waters–The Frozen Songhua River

by David Parmer / Tokyo

Northeast China’s Songhua River, China’s most northern river system, starts in an otherworldly location called Heaven Lake on the border with North Korea. The lake is a source for three rivers, the Songhua, the Tumen and the Yalu. Flowing north, and east, it passes the city of Jilin and meanders to Harbin and then joins the mighty Amur River and rolls into Khabarovsk and then on to the sea.

The Songhua is navigable up to Harbin, but for basically half the year, from November till April it is frozen solid. In Harbin the frozen Songhua provides a venue for winter recreation and Harbin’s world-famous Ice Festival.

In history, the Songhua River has been prominent in Chinese-Russian relations and in the building of the China Eastern Railway. In 2005 a chemical spill polluted the drinking water of Harbin and Khabarovsk. Today the Songhua River is quiet, and as the days pass into autumn the water will be getting ready for its annual freeze and Harbin for its festive time.

Changbi Waterfall, Heaven Lake (China/N. Korea border)

Photo: Harbin Ice Festival via flickr, Jarod Carruthers

Photo: Changbai Waterfall via flickr, Joe Jiang

IMF Lagarde on the Importance of Big and Small Banking

IMF Managing Director Christine Lagarde delivered a speech at the Federal Reserve in New York City on July 18. The speech was titled “Relations in Banking – Making it Work for Everyone.”

The topic of the speech concerned Correspondent Banking as it involved banks and their clients in developing countries, small island economies and small financial systems.

Currently there is a trend among large banks to downsize their correspondent banking relationships. The reasons for this are generally two:

Low profitability
Some relationships damaging to their risk profiles

Lagarde explained how banks in Africa, the Caribbean, Central Asia and the Pacific are at risk of being cut off from the global financial network. She gave examples that included banks in the Caribbean, Liberia and Samoa. Not only small economies are at risk, but countries like Mexico and the Philippines. Many of these countries count on overseas remittances to make up a significant part of GDP.

The IMF sees a need for the banks to work together to reduce the cost of Anti Money Laundering–Combating the Financing of Terrorism (AML/CFT) compliance. Countries need to upgrade their compliance standards in this area. And regulators must regulate so that the regulated can understand what is required. Lagarde stresses that while there are current concerns, a business case can be made for banks continuing their operations in small countries. Should they withdraw, other systems both legal and not legal may well emerge to fill the vacuum.

Lagarde concluded “all actors have a part to play” in solving this problem, and that there is much at stake for large and small players.

Full text of Lagarde speech at IMF

Photo: IMF via flickr