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FT: China Oilfield buys Awilco Offshore

China Oilfield buys Awilco Offshore

Published: July 7 2008 08:47 | Last updated: July 7 2008 20:00

The rig grab continues. High oil prices and dwindling resources have put a rocket under the price of equipment and services providers and triggered a wave of consolidation. On Monday, the Chinese joined in: China Oilfield Services agreed to pay $2.5bn for the equity of Norway’s Awilco Offshore.

The 19 per cent premium to Friday’s close looks disciplined, but stretches to 42 per cent based on the undisturbed share price on May 29. It is higher still benchmarked against the start of the year, when talks kicked off. COSL is paying an enterprise value of 9.4 times next year’s forecast earnings before interest, tax, depreciation and amortisation, on the rich side compared with some deals in the sector. However, several of the rigs do not come online until 2010, when the forecast EV/ebitda multiple falls back to seven times.

Picking off assets now appears smart. Further deals are likely as oil service companies, after two decades in the doldrums, reap the benefits of better times. One barometer of the changing dynamics is the rental for deepwater rigs: rates have more than doubled to $500,000 a day over the past three years. Oil majors are increasingly utilising deepwater rigs such as those produced by COSL and Awilco, as the “easy” onshore resources are depleted, forcing them to explore further afield. Yet there are just around 180 such rigs, according to Wood Mackenzie, with a further 90 under construction for delivery by 2012. Long lead times and big price tags act as a natural brake against massive over-capacity. Besides, most rigs being built are already spoken for. The bigger risk is that lease rates will fall as oil majors seek to rein in costs.

The lengthy negotiation period between COSL and Awilco suggests no-one else was prepared to cough up a comparable sum. If so, perhaps the tide is already starting to turn.

FT: Japan's quest for innovative freedom

Japan's quest for innovative freedom

By Jonathan Guthrie and Robin Harding

Published: June 12 2008 03:00 | Last updated: June 12 2008 03:00

Nodding politely, a mechanical doll created by Toshiba founder Hisahige Tanaka totters across a tabletop and offers a visitor a cup of tea at the company's research and development centre near Tokyo. Ingenious and intriguing, the automaton was produced in the 19th century, portending the renaissance in Japanese applied technology that followed the second world war. This delivered such consumer boons as Toshiba laptops, Toyota cars and Nintendo games.

Now Japan is questioning wheth- er its innovation system can serve it as well in the 21st century as in the 20th. There are doubts over whether Japan's Y18,000bn ($168bn) annual R&D budget is well spent. Reformers want an environment that is more entrepreneurial and less dominated by big companies. Corporate R&D bosses and academics are struggling to put aside long-standing grudges.

If Japan were a technology company it would be worried about its pipeline. The job of replenishing this has traditionally fallen to big corporations such as Toshiba. Ichiro Tai, a jolly, bespectacled man who runs Toshiba's R&D centre, says: "We have 1,000 researchers and they should have far more ideas. The number of patents [one each a year] is far too small."

Dissatisfaction is as much a management tool for Mr Tai as it is for a sales boss driving his team towards ever-higher targets. Tosh-iba could nevertheless do with some high-profile breakthroughs after losing its battle with Sony to set the standard for high definition video players. Mr Tai duly shows off hopeful new technologies to awed visitors. One is a system that uses quantum physics effects to encrypt data. Another is a battery that can be recharged in five minutes which could be used to power electric vehicles.

Mr Tai muses that greater freedom could spur the creativity of company research staff. Yet Toshiba is characteristic of Japanese technology companies in protecting its elite scientists from commercial pressures more than many western ones. The electronics group, which had sales of about Y7,000bn in the year to March 2007, uses a tripartite structure. The R&D centre and its academic satellites do blue-sky research. A second tier of labs commercialise new technologies. A third layer engages in the nitty-gritty of improving existing products within business units.

Politicians and bureaucrats are now asking whether Japan is over-reliant on such corporate ideas factories. Like every country with a decent science base, Japan envies the global success of Microsoft in PC operating systems and Google in internet search. Surely, the argument runs, Japan would produce new global gorillas of its own if its innovation system were more like that of the US.

The Japanese government has accordingly announced a Y100bn venture fund to invest in fledgling technology businesses. The idea is to encourage more private and institutional investors to pump their money into start-ups too.

However, there are formidable barriers to injecting some of the pep of Silicon Valley into the commercialisation of new technology in Japan. The biggest is that Japan does not have an Anglo Saxon-style enterprise culture. Would-be entrepreneurs have few role models apart from Masayoshi Son, founder of communications group Softbank. Aspiring to become very wealthy is regarded as faintly unJapanese.

Equally, "business failure is seen as shameful in Japan, though that perception is beginning to erode", says Seiichi Yoshikawa of Nippon Keidanren, Japan's powerful business lobby. When new technology ventures fail, it tends to be as units of large corporations, rather than as standalone companies. This cushions the impact. The downside of the system is that it can suppress maverick talent.

At Japan's ministry of economy, trade and industry, Yuji Tokumasu, who works on science and technology policy, is fretting over a parallel problem. According to a chart he brandishes, even as Japan's spending on research and development has soared in the past 20 years, value added in the manufacturing sector has stagnated.

Japan already spends more than 3 per cent of its gross domestic product on R&D - more than any other country. One way of reading the chart is to surmise that diminishing returns have set in, that every extra yen spent on R&D goes to employ less talented researchers, who study less promising approaches to the same problems. Japanese universities' poor record on turning research funding into results published by top scientific journals suggests that government money can be more efficiently spent. It could be that rather than spending too little on R&D, Japan spends too much.

However, Mr Tokumasu and others in the technology establishment take heart from R&D expenditure data. If only Japan could convert all of this spending into scientific breakthroughs, new businesses and saleable products, they argue, it would prove a powerful source of economic growth.

The country has a world-class science base, as exemplified by Shinya Yamanaka of Kyoto University. In 2006 Professor Yamanaka created cells resembling embryonic stem cells from other tissue in mice. Last year, in parallel with US researchers, he repeated the feat for humans. The technique has huge potential to advance gene therapy, given moral strictures on using real embryonic cells. Prof Yamanaka has a chance of winning a Nobel Prize.

But businesses can be impeded from working with university researchers such as Prof Yamanaka by historically chilly relations. During the growth years of the 1960s and 1970s, corporations sought independence in R&D. Public service anti-corruption rules made it difficult for academics to hobnob with business people. It is telling that two of Toshiba's most important academic collaborations are with British universities - Cambridge and Bristol.

In 2004 universities were incorporated and gained ownership of the intellectual property created in their laboratories. The change irritated some people. "Before, they got research for free," says Takafumi Yamamoto, plain-speaking boss of Todai TLO, Tokyo University's licensing organisation.

Mr Yamamoto believes the dominant role of large corporations in business life is weakening. Partly thanks to entrepreneurship education "young people do not all want to be soldiers for big companies", he says. Flotations of university spin-outs have increased enthusiasm for the commercialisation of research among academics. They are meanwhile likely to become more assertive in protecting their intellectual property rights following the establishment of a new division of the High Court specialising in IPR. Mr Yamamoto says: "There could be an increasing number of cases brought by the universities against the companies."

So is traditional Japanese consensus under threat? Not according to Yutaka Asai, chief technology officer of Oki, the telecoms and printers group, who neatly reconciles the spat between business and universities. Companies may wind up with a smaller share of revenues from individual academic collaborations, he says. But, at the same time, a fairer division of the spoils should prompt more tie-ins, making everyone better off.

A 'technique' for managing academics is vital for collaboration

Yukinori Kida, owner of a small Toyko-based components business, has some advice for big Japanese companies forging collaborations with universities. Making it work depends on "technique" in managing academics, he says.

Innovation has helped KDA keep going in the face of Chinese competition. Six years ago, with help from the University of Tokyo, the company found a better way of moulding the ceramic bolts used in equipment exposed to high temperatures. The breakthrough allowed Mr Kida to cut costs and won him a valuable market niche.

KDA, which employs 50 staff including Kaori, Mr Kida's daughter and expected successor, made a profit of Y30m on sales of Y1bn last year. It is now working on new plastics and ceramics moulding methods with researchers from Tokyo and Nagoya universities. "In three years we hope to double sales," Mr Kida says.

KDA spends a healthy 3 per cent of sales revenue on new product development. Mr Kida uses students as researchers, believing they are open-minded as well as cheaper: "University professors are strong on narrow subject areas, but if you need to study a problem from a new perspective, they are really not that good."

FT, Economist etc: Celebrated Indian field marshal with a razor-sharp wit


Manekshaw himself once remarked on the fine line between being a field marshal and being fired. Yet his approach never wavered. "A yes man is a dangerous man," he once said. "He will be despised by his subordinates and used by his superiors."

= = = =

Celebrated Indian field marshal with a razor-sharp wit

By Stephen Fidler

Published: July 5 2008 03:00 | Last updated: July 5 2008 03:00

It was February 1942 on the Sittang River in Burma. Sam Manekshaw had already lost half his men as they fought to take Pagoda Hill from the Japanese invaders. He rallied what was left of his company, urging them to continue the advance.

Then, just as they captured the hill, a burst of machinegun fire hit Manekshaw in the stomach. As he lay there he was spotted by Major General David Cowan, who had seen the young captain's bravery but feared his wounds might be mortal. Kneeling beside him, Cowan took off his own Military Cross ribbon and pinned it on Manekshaw's chest, saying: "A dead man cannot be awarded the Military Cross."

[from The Economist: Another story has it that a surgeon was going to give up on his bullet-riddled body, until he asked him what had happened and got the reply, "I was kicked by a donkey." A joker at such a time, the surgeon reckoned, had a chance.]

The general was wrong to doubt the officer's powers of survival but right about his valour. The courage of Sam Manekshaw, who has died a field marshal at the age of 94, was to help make him one of India's most successful military leaders. His seminal victory over Pakistan's forces in 1971 led to the creation of Bangladesh and turned Manekshaw into a national hero. One biographer described him as having "charm and persistence, an irreverence towards red tape, an iron determination, an eye for details plus a strategic mind that embraced all". He also had a razor-sharp wit.

A man with an eye for the ladies, his relationship with one lady in particular, Indira Gandhi, India's prime minister during the 1971 war, defined his career. When she asked him before the conflict if he was prepared, he replied: "I'm always ready, sweetie." Unlike politicians and top bureaucrats, he refused to call her madam, saying it was a term "better suited to a brothel keeper".

He was one of those men whose personality leaps out of his photograph. There is one of him sitting at a military parade in 2004. He is 90 and his back is not as straight as it was, but his eyes look directly at the camera and, beneath the military moustache, there is the hint of a smile. His left breast is bedecked with medals, his feet with shiny black brogues and he holds an elaborately carved swagger stick in his right hand. Manekshaw was fastidious about his appearance but his uniform, typically, did not conform to regulation.

For a man to become a myth in his own lifetime, it helps to live for a long time, not least because many of his rivals will not. It helps if he fosters a reputation for straight talking and to have a sense of humour - not least about himself. Yet Manekshaw never seemed to be consciously managing his own image.

Sam Hormusji Framji Jamshedji Manekshaw was born in 1914 in the age of the Raj. His parents were members of the Parsi community - Zoroastrians who immigrated from Persia 1,000 years ago and who have occupied some of the highest positions in modern India in the military, the law, the arts and business.

The young Sam grew up in Amritsar, capital of the Punjab, and attended the British-style boarding school, Sherwood College. He had wanted to study medicine but instead joined the first ever cohort of officer cadets to attend the new Indian Military College at Dehradun. Commissioned as a second lieutenant in 1934, he was for a time attached to Britain's Royal Scots regiment. In 1939 he married Siloo Bode, and the couple had two daughters.

During the second world war he served twice in Burma. Having recovered from his wounds at Pagoda Hill - the official citation for his MC said the success of the attack was "largely due to the excellent leadership and bearing of Captain Manekshaw" - he was sent back to Burma and was wounded a second time. At the end of the war, he showed his talent for planning and organisation first in rehabilitating 10,000 prisoners of war and then in the run-up to the partition of India and Pakistan in 1947.

In 1971, it was the crisis between east and west Pakistan, created as two unconnected territories at the time of partition, that was to prove Manekshaw's finest moment. The rout of Pakistan's forces under his leadership was a strategic coup for New Delhi. It split east from west Pakistan and led to the creation of the independent state of Bangladesh. This meant that never again would India have to fight its rival on two fronts at the same time. The rapid victory erased memories of the humiliating defeat in a border conflict with the Chinese in 1962 and the stalemate of the 1965 war with Pakistan over Kashmir.

With millions of refugees pouring over the border, some of the politicians had wanted to go to war in April but the key to victory was to wait until December to engage with the Pakistanis. This ensured the monsoon season had passed and the plains of Bengal were drier. By then, too, snow in the Himalayas blocked off any prospect of Chinese intervention. It was Manekshaw who was credited with standing up to the impatient politicians and his resistance made him a hugely popular figure. Some have subsequently questioned his role. General Jacob-Farj-Rafael Jacob, chief of staff for India's eastern command in 1971, became the brunt of fierce criticism last year when he said it was he and not Manekshaw who had refused to attack in April. Moreover, he added that Manekshaw's military plan did not include taking Dhaka, the fall of which was essential to victory. Ramachandra Guha, a leading historian of modern India, has also claimed that the archives suggest that Manekshaw did not play that primary a role.

Whether a revision of Manekshaw's place in history will follow his death is uncertain. But his death is significant perhaps in other respects. It sym-bolises the passing of the generation of officers that served in both the British and Indian armies. Their legacy remains. "Indian generals still feel more comfortable with their British counterparts than with those from the US," says Professor Guha.

Manekshaw himself once remarked on the fine line between being a field marshal and being fired. Yet his approach never wavered. "A yes man is a dangerous man," he once said. "He will be despised by his subordinates and used by his superiors."

Stephen Fidler

Copyright The Financial Times Limited 2008



Economist.com




Sam Manekshaw

Jul 3rd 2008
From The Economist print edition

EPA
EPA


Sam Manekshaw, soldier, died on June 27th, aged 94

HIS most famous remark was not, strictly speaking, true. On the eve of the war with Pakistan in December 1971 that led to the creation of Bangladesh, India's prime minister, Indira Gandhi, asked her army chief, Sam Hormusji Framji Jamshedji Manekshaw, if he was ready for the fight. He replied with the gallantry, flirtatiousness and sheer cheek for which he was famous: "I am always ready, sweetie." (He said he could not bring himself to call Mrs Gandhi "Madame", because it reminded him of a bawdy-house.)

Yet General Manekshaw himself recounted a cabinet meeting in Mrs Gandhi's office in April 1971. To forestall secession, the Pakistani government had already cracked down in what was then East Pakistan. Hundreds of thousands of refugees had crossed the border into India. Mrs Gandhi wanted the army to invade Pakistan. General Manekshaw resisted. The monsoon, he pointed out, would soon start in East Pakistan, turning rivers into oceans. His armoured division and two infantry divisions were deployed elsewhere. To shift them would need the entire railway network, so the grain harvest could not be transported and would rot, bringing famine. And of his armoured division's 189 tanks, only 11 were fit to fight.

He was not, in other words, ready. But, as he put it, "There is a very thin line between being dismissed and becoming a field-marshal." Mrs Gandhi rejected the resignation he offered, and acceded to the delay he wanted. His job, he told her, was to fight to win. In December he did, cutting through the Pakistani army like a knife through butter, and taking Dhaka within two weeks. Quibblers later noted that this was not one of his original war aims. He had the most important attribute of any successful general: good luck.

That was not the only time he threatened to quit. Mrs Gandhi once questioned him about rumours that he was plotting a coup. In response, he asked if she wanted his resignation on grounds of mental instability. Yet if she and other politicians were in awe of him as a professional soldier and grateful for his lack of political ambition, his men loved him for his willingness to take on their civilian bosses and stand up for the army's interests.

He had shown this in the Indian army's darkest hour, the abject defeat in 1962 by China. Already a general, he had the previous year quarrelled with India's defence minister, V.K. Krishna Menon, about national security. He was vindicated when the Chinese army swatted aside Indian resistance and briefly occupied what is now the state of Arunachal Pradesh. Mr Menon resigned. General Manekshaw was rushed to the front to rally the demoralised troops. His first order was: "There will be no withdrawal without written orders and these orders shall never be issued."

General Manekshaw was able to demand courage from his soldiers because his own was not in doubt. Known as Sam "Bahadur", or Sam the Brave, an honorific given him by the Indian army's Gurkhas, the first of his five wars was for the British in Burma, where he was seriously wounded. Assuming he would die, an English general pinned his own Military Cross on Captain Manekshaw's chest, since the medal could not be awarded posthumously. Another story has it that a surgeon was going to give up on his bullet-riddled body, until he asked him what had happened and got the reply, "I was kicked by a donkey." A joker at such a time, the surgeon reckoned, had a chance.


There was something of British military tradition in his stiff upper lip, the lavish handlebar moustache in which he cloaked it, the dapper little embellishments to his uniform and his partiality for Scotch whisky. Yet he was born into a very particular and tight-knit community: India' s small and dwindling Parsi minority, which has produced a disproportionate number of leading Indians, such as the members of the Tata and Godrej business dynasties. Sam Manekshaw was another Parsi overachiever. He was the first of only two field-marshals ever created in the army.

Yet his retirement since 1973 was not one long bask in glory. Former deputies felt he had monopolised the credit for various victories. Then last year his name was linked to bizarre allegations, by the son of a former Pakistani president, against an unnamed brigadier who had once sold Indian war plans to Pakistan. All nonsense, said those who knew him. Already in hospital, General Manekshaw was in part shielded from controversy.

After his death, anger at the slur, and at the lack of proper honour for one of India's true heroes, rumbled on. The prime minister, along with the army, navy, and air-force chiefs, all missed his funeral—which was a modest one held in Tamil Nadu in the south, not a grand one in the capital. His friends grumbled that even foreigners such as Lord Mountbatten were afforded greater respect in death. Bangladesh, however, paid grateful tribute to his part in the nation's foundation.

He too might well have been disappointed that his obsequies were not grander. His last words were "I'm OK", though he had rehearsed a better line nearly 37 years earlier. For death at least, the brave soldier had indeed shown himself "always ready".



Copyright © 2008 The Economist Newspaper and The Economist Group. All rights reserved.



www.123india.comhttp://www.india-today.com/itoday/millennium/100people/sam.html

BUILDERS & BREAKERS
Prophet of Hate

Sam Manekshaw
Sam Manekshaw

By A S Kalkat

1914: Born in Amritsar.
1933: Joins the Indian Military Academy.
1934: Commissioned into the army. 1947: Pakistan invades Kashmir. Is colonel in charge of operations. 1962: Sent to NEFA to check further Chinese intrusion.
1965:
Commander, Eastern Command during the Indo-Pak war. 1969: Appointed chief of the army staff.
1971: Indo-Pak war. Steers India to victory. and Bangladesh is created. 1973: Given the rank of Field Marshal.



In 1942 at the height of the World War II a fierce battle was raging in Myanmar, then Burma, at the Sittang Bridge. A company of the Indian Army was engaged in hand-to-hand combat with the invading Japanese forces for the capture of a position, which was critical for the control of the bridge. The young company commander was exhorting his troops when his stomach was riddled by a machine gun burst. Afraid that his company would be left leaderless if he were evacuated, he continued fighting till he collapsed.

His company won the day and the general commanding the Indian forces arrived at the scene to congratulate the soldiers. On seeing the critically wounded commander, he announced the immediate award of the Military Cross -- the young officer was not expected to survive much longer and the Military Cross is not awarded posthumously. Thus began a historic military career that spanned the Indo-Pak wars and the Sino-Indian conflict, the wounded captain surviving to become India's first field marshal.

In 1947 when Pakistan invaded Kashmir, Sam Manekshaw was the colonel in charge of operations at the Army Headquarters. His incisive grasp of the situation and his acumen for planning instantly drew the attention of his superiors and Manekshaw's rise was spectacular, though not without controversy. He was outspoken and stood by his convictions. This, coupled with his sense of humour, often got him into trouble with politicians.

In 1961, for instance, he refused to toe the line of the then defence minister V.K. Krishna Menon and was sidelined. He was vindicated soon after when the Indian army suffered a humiliating defeat in nefa the next year, at the hands of the Chinese, resulting in Menon's resignation. Prime minister Jawaharlal Nehru rushed Manekshaw to nefa to command the retreating Indian forces. This had an electrifying effect on the demoralised officers. In no time, Manekshaw convinced the troops that the Chinese soldier was not "10 ft tall". His first order of the day characteristically said, "There will be no withdrawal without written orders and these orders shall never be issued." The soldiers showed faith in their new commander and successfully checked further ingress by the Chinese.

The Indo-Pak war of 1965 saw Manekshaw as army commander, Eastern Command. When India was forced to launch operations in the west, Manekshaw was against attacking in the east since the main sufferers would be the people of East Pakistan. The wisdom of his advice dawned when the Indian forces fought the Pakistan army in East Pakistan in 1971.

This was Manekshaw's finest hour. As army chief and chairman, Chiefs of Staff Committee, he planned the operation meticulously refusing to be coerced by politicians to act prematurely. His strategic and operational finesse was evident when Indian pincers cut through Pakistani forces like knife through butter, quickly checkmating them.

When the prime minister asked him to go to Dhaka and accept the surrender of the Pakistani forces, he declined, magnanimously saying the honour should go to his army commander in the east. He would only go if it were to accept the surrender of the entire Pakistan Army.

Manekshaw's competence, professional standing and public stature was such that the politician and the bureaucrat alike crossed his path only at their peril. On one occasion, he found that the defence secretary had penned his own observations on a note he had written to the prime minister and defence minister. Infuriated, Manekshaw took the file and walked straight into Mrs Gandhi's office. He told her that if she found the defence secretary more competent than him to advise her on military matters she did not have a need for him. The defence secretary was found a new job.

As a commander, he was a hard taskmaster. He encouraged his officers in the face of adversity but did not tolerate incompetence. That is perhaps Manekshaw's greatest contribution, to instil a sense of duty, efficiency, professionalism in a modern Indian army and to stand up to political masters and bureaucratic interference.

In a way, he was following the path of other army chiefs, K.S. Thimayya K.M. Cariappa. A holy terror, there are many tales of the power of his whiplash. Following Pakistan's surrender in the east, Manekshaw flew into Calcutta to compliment his officers. The ceremonial reception over at Dum Dum airport, he was escorted to a car -- a Mercedes captured from the enemy. Manekshaw refused to sit in it, leaving the officers red-faced.

On another occasion, a general accused of misusing funds was marched up to him. "Sir, do you know what you are saying?" asked the general. "You are accusing a general of being dishonest." Replied Manekshaw: "Your chief is not only accusing you of being dishonest but also calling you a thief. If I were you I would go home and either shoot myself or resign. I am waiting to see what you will do." The general submitted his resignation that evening.

Lt-General A.K. Kalkat is a former army commander and belongs to Manekshaw's regiment, 8 Gorkha Rifles.


ST; TABLE TALK: WITH FAREED ZAKARIA Political leadership for a new global order


Home > Review > Others
July 5, 2008
TABLE TALK: WITH FAREED ZAKARIA
Political leadership for a new global order
How might Singapore deal with a world in which people are richer than ever before and many players are jostling for supremacy? The editor of Newsweek International, Dr Fareed Zakaria, proffers his thoughts
By Cheong Suk-Wai, Senior Writer
A SINGAPOREAN taxi driver's chance remark set Dr Fareed Zakaria thinking how best he might write about a world in which people are richer than ever before and many players are jostling for supremacy.

Meeting The Straits Times in his London hotel suite earlier this week, the editor of Newsweek International recalled how the cabby pointed to the Republic's new ferris wheel, the Singapore Flyer.

'I looked at it and I said - I suppose in a somewhat patronising voice: 'How nice, you have a ferris wheel.'

'And he turns around and says: 'Sir, that's the largest ferris wheel in the world'.'

A month later, he was being shown around the South China mall in Dongguan, when his host told him that the 9.6 million-sq ft complex was the world's largest. Dr Zakaria did not buy that at first. He thought The Mall of America in Minnesota still held that title. (Actually it is only the 18th largest these days).

Dr Zakaria recalled: 'At that point I decided I had learnt my lesson. I began to realise these anecdotes I had been hearing about this country growing and that country growing were adding up to something quite significant.'

So he decided his new book - his second after the best-selling The Future Of Freedom - would examine how the world's new thriving countries will change the character of international economics, politics and culture.

Dr Zakaria's big, hawk-sharp eyes, which are very alert indeed, give the lie to his relaxed demeanour. His laptop pings away with news updates on a side table while we talk.

Everything about him tells you he is his own man - from his powder purple polo T-shirt, an unusual colour choice, to his Indian-accented English, although he has been a naturalised American citizen for many years now.

He was in London for the launch of his new weekly current affairs show on CNN. Called Global Public Square, it premiered on June 1, and the first episode saw him interviewing British Prime Minister Gordon Brown and the Conservative Party leader David Cameron.

The son of an Indian politician and a newspaper editor, Dr Zakaria is a Harvard political science alumnus. He had the ear of such luminaries as former US secretary of state Henry Kissinger from early in his career. But he really made his mark with his 2001 essay, Why They Hate Us, which he wrote just after the Sept 11 terror attacks on the US. His weekly column in Newsweek is now required reading for anyone interested in global affairs.

The way forward

THIRTY years ago, if anyone from Brazil, India or Mexico had predicted his country would soon be revving the world's economic engines, he would have been brushed off as a wishful thinker at best. But today, these countries are charging into the future after having embraced capitalism. As a result, three billion new players are competing for the world's ever-dwindling resources.

Indeed, as Dr Zakaria points out in his new book, The Post-American World, the economies of 124 countries, including 30 African states, are now growing at the rate of at least 4 per cent a year. Compare that with the only 35 countries that enjoyed that sort of growth 30 years ago, he says, and what you have is 'the birth of a truly global order'.

Singapore, he adds, is handling this brave new order very well.

'What Singapore has done very adroitly is to have moved up the value chain - to have said that 'okay, we can't compete with other countries in cheap labour, and so we're going to do value-added products, we're going to try services, we can compete (in) these areas, we're going to move to the next level'.'

He applauds the Republic's 'very clever' forays into such areas as tourism, film-making and software design. And all this, on top of managing good relations with both the United States and China, he notes admiringly.

But he adds that Singapore is the only rich country in the world without a fully functioning multi-party democracy. That will hobble its advance in the long run, he believes, because people 'want not only economic rights, but also freedom of association, freedom of speech and freedom of thought'.

'You may get lucky with a particular autocrat, but what happens after him?...If you could guarantee me in advance that you'll get Lee Kuan Yew, that's a whole different thing. But there's no way beforehand to know that you're going to get a leader like Lee Kuan Yew.'

He adds wryly, wondering whether this would get into print: 'I think that the political system is rigged in favour of the People's Action Party (PAP). Some of it is formal...Some of it is informal. But all of it is largely unnecessary.'

Singapore is already 'a very open society in many ways', he points out. 'I often say this to people because they have an image of Singapore which is essentially incorrect...It is a place where you would certainly feel as if you had many, many freedoms and liberties...It has been lucky in having very wise leadership.'

But it has to widen its political outlook much more, he insists.

'Singapore's leaders have succeeded more than they realise. They created a modern society, and in creating that modern society, they must now also trust it more than they do.'

He adds: 'That, in some ways, is the genius of democracy. It turns the relationship between governed and governors into a two-way street, and that will make for a much greater degree of sense of loyalty and pride in Singapore for the next generation.'

He muses: 'It's funny: Whenever I meet senior Singapore government officials, I will sometimes mention this. And they'll go: 'Oh, no, no, it's not a real problem, don't worry.' And I'll say: 'You know, younger Singaporeans do feel frustrated.' And they'll say: 'Oh, I don't know if you are right about that.'

'And then, as I'm escorted out by one of the young aides to the senior government officials, they will tell me: 'By the way, Dr Zakaria, you are 100 per cent right. We are very frustrated'.'

'And these,' he notes, 'are people in the heart of the political structure.'

Dr Zakaria is quite sure that if the PAP held what he calls 'open competitive elections', it would do 'quite well'.

And as for Minister Mentor Lee's view that a non-PAP government would act irresponsibly by exhausting Singapore's coffers, Dr Zakaria says:

'You can produce checks and counter-checks. Nobody's talking about giving day-to-day control of Temasek (Holdings) and the Government Investment Corporation to Parliament. You can create institutions that are independent and therefore somewhat sheltered from day-to-day political control.'

Tackling global crises

AND political control, by the way, is what he feels the new global order needs in a big way. Great global growth brings with it great global worries. And therein lies the rub.

The current lone superpower, the US, is not only being outstripped by new players on the economic front, it has also lost its intellectual and moral high ground since it invaded Iraq in 2003.

On top of that, though food, fuel and weather woes have spilled over into the international arena, most countries are still thinking of how to solve these problems locally, when what is really needed is greater global consultation, cooperation and compromise.

'We have crises now. The question is whether we have the leadership.'

China, he feels, is not ready to fill the vacuum America has left for two reasons.

First, there is considerable scepticism about China, particularly in India, Japan and Indonesia. 'It's not as if the world is hungering for Chinese leadership.'

Second, if China or any other Asian economic dragon wants to lead the world in the way the US has in the past 60 years, it would first need to present 'a compelling vision for other people to buy into and say, 'You know, we like the way Asians think about the world'.'

'It's not just about money,' Dr Zakaria insists. 'It's about setting an agenda, making people feel that there's a vision that you want to work towards.'

For that reason alone, he thinks the US can still play a pivotal role. It can bring the world together to work out solutions to problems like energy and global warming.

Asked which US presidential contender is better poised to lead in a post-American world, he plumps firmly for the Democrat, Senator Barack Obama. He finds Mr Obama's willingness to challenge settled wisdom in Washington - like his willingness to talk to US 'enemies' - 'refreshing'.

'And though he was criticised for it, he stuck to his guns,' notes Dr Zakaria. 'I think that was very impressive.'

Mr Obama's rival, Senator John McCain, on the other hand, is 'a Cold Warrior', says Dr Zakaria, referring to the Republican's less than friendly references to Russia and China. 'That is just the wrong vision for the future.'

Dr Zakaria himself is a long-term optimist about the post-American world.

'At the end of the day, the power of two to three billion people for the first time consuming, investing, producing, dreaming, inventing and problem-solving is very, very powerful,' he proclaims.

suk@sph.com.sg

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July 5, 2008
Dr Zakaria on...
FIRM GROUND: PAP supporters pitching in during the 2006 election campaign. OPPOSITES?: US presidential candidates John McCain (left) and Barack Obama. -- PHOTO: THE BUSINESS TIMES PHOTO: AP
  • Economic and political rights:

    People want economic rights but they also want political rights. They want property rights but they also want freedom of association, freedom of speech, freedom of thought. You may get lucky with a particular autocrat, but what happens after him?

    The great problem with the idea that an autocracy is a good idea is that most people don't end up with Lee Kuan Yew. They end up with Mobuto or Marcos or Mugabe. If you could guarantee me in advance that you'll get Lee Kuan Yew, that's a whole different thing. But there's no way beforehand to know that you're going to get a leader like Lee Kuan Yew.

    I think that for societies that are not yet at an advanced industrial state, there are considerable questions as to whether introducing multi-party democracy right away produce stability.

    In places like Iraq we should have had a much greater emphasis on stability and order, rather than holding as we did four or five different elections.

    But in the long run, for a rich country, there are very few alternatives. Singapore is the only rich country in the world that does not have a fully functioning multi- party democracy. And Singapore is a very unusual case. First of all, it is a very open society. It is also a very small country that has been very lucky in having very wise leadership - and there's no way to guarantee that.

  • One-party rule in Singapore

    The system needs more checks and balances. You need the prospect of losing power to produce a certain degree of discipline.

  • The Singapore Government

    They've done a very good job, but younger Singaporeans do feel frustrated. They feel the society, the political system is too closed and it's too much of an insider's club.

  • A sense of belonging

    What makes somebody a Singaporean in a world in which you are going to need people who have come two years, three years ago? How do you make them think of themselves as Singaporeans? Part of it has to be, I think, that they feel they are full participants in the destiny and political structures of the country.

    I can tell you that Prime Minister Lee Hsien Loong thinks a lot about this, because he and I have had several conversations about this.

  • China

    Whenever you talk about the rise of Asia, you're really often talking about the rise of China. But the rise of China produces very complicated feelings in India and Japan. So there might actually be forces within Asia that can act and counteract these things.

  • India

    I feel very frustrated watching India, because I think it has extraordinary potential. Indian society is so ready for globalisation (but) the Indian state is so scared and backward-looking and corrupt and caught up with its own phobias and ideologies from a different era.

  • The 2008 US presidential race

    One of the advantages of this (long) process this time around is that the crazies are out of the race. There were a lot of candidates that had very disturbing views about the world, very confrontational, very nasty and would have taken America down a very dark road. And they were all thoroughly rejected by the American public.

  • Mr Barack Obama

    He's a creature of the world as well as a creature of America...So this world is not a completely alien and slightly menacing thing to him, it's something that's part of him.

  • Mr John McCain

    He remains a very old-fashioned figure. He has an almost Victorian view of the world.


  • FT: NOL is weighing up anchorage in Hamburg

    NOL is weighing up anchorage in Hamburg

    By Robert Wright and John Burton in Singapore

    Published: July 1 2008 03:00 | Last updated: July 1 2008 03:00

    It was one of the highest compliments a senior executive could pay a rival.

    In a private letter to senior staff sent late last year, Eivind Kolding, chief executive of Denmark's Maersk Line, the world's largest container shipping line, exhorted them to improve profitability.

    If Maersk Line had the same cost structure as APL - the container line owned by Singapore's Neptune Orient Lines (NOL) - filled its ships as fully and carried the same types of cargo, it would be two-and-a-half times as profitable, he wrote in a letter seen by the Financial Times.

    This admiration for NOL is widespread throughout the highly cyclical container shipping industry, where few operators have proved as adept as APL at ensuring ships are consistently full and the rates charged to customers consistently high. NOL made pre-tax profits of $586m on $8.16bn turnover for the year to December 28 last year.

    Yet NOL is now the frontrunner to take the risk of acquiring Hamburg-based Hapag-Lloyd from Germany's Tui, Europe's largest travel group, to combine it with APL, according to people involved.

    The deal would create the world's third-largest container fleet. Most observers think that NOL's only realistic competitor is a group of businessmen associated with Hamburg, Hapag-Lloyd's base, who would like to buy it to keep it German.

    Although NOL is two-thirds owned by Temasek Holdings, the cash-rich Singapore state investment company, analysts warn that NOL may be taking on too much debt if it concludes the deal.

    NOL has a market capitalisation of S$4.8bn (US$3.5bn), while Tui is believed to be seeking at least $6bn for Hapag-Lloyd. "This would imply NOL assuming a net debt/equity of 1.9-2.6 times," said Citigroup in a report.

    Vincent Fernando, a Citigroup analyst, questions NOL's eagerness for the deal when the shipping industry is weakening. "There is no urgency in NOL buying Hapag-Lloyd. There are not a lot of companies chomping on the bit to buy it," he says.

    Other potential buyers, including Mediterranean Shipping Company of Geneva, Taiwan's Evergreen Marine and Hong Kong's Orient Overseas prefer organic growth. Meanwhile, France's CMA CGM says it wants to buy only niche regional lines. Maersk Line is still recovering from its botched integration of P&O Nedlloyd.

    Raymond Lim at CIMB-GK Securities in Kuala Lumpursays: "The market will pay more attention to whether NOL can get Hapag-Lloyd at an attractive price rather than the debt level, but Tui is driving a hard bargain."

    Analysts say shareholder concerns about NOL's move would be eased if Temasek helped to finance the bid or decided to renew its 2004 effort to take NOL private by buying out minority shareholders as part of the deal.

    NOL has not commented on whether it is preparing a bid, but the company is known to have been looking for economies of scale by growing bigger.

    A takeover of Hapag-Lloyd would give the Singaporean group access to the important German export business that is vital to Hapag-Lloyd.

    Such traffic would provide balance to a business that has been dominated by Asian exports since NOL's founding in 1968, says Mark McVicar, transport analyst at Dresdner Kleinwort.

    Hapag-Lloyd has one of the best balances of any container line between the volumes of cargo it carries in each direction on its voyages.

    Many other lines carry almost exclusively empty containers or only low-value waste products on their return journeys to Asian exporters.

    Mr McVicar says: "If I'm Siemens and I've just sold a whole load of power equipment to Asia, I only make one call about shipping it.

    "It's to Hapag-Lloyd and I know they will give me incredible levels of service."

    Hapag-Lloyd is far stronger than NOL on routes between Asia and Europe, across the Atlantic and in trade to and from Africa. NOL's main strength is in transpacific trade between Asia and North America.

    However, Thomas Held, NOL's German-born chief executive, will have to handle the integration carefully to protect the Singapore group's profitability. As a larger line, NOL would face a greater challenge balancing the need to keep its ships full with the risk of taking too much low-value freight at cheap rates.

    FT: Qatar's sharpest investor

    Qatar's sharpest investor

    Published: June 28 2008 03:00 | Last updated: June 28 2008 03:00

    W hen Qatar's sovereign wealth fund pulled out of its bid for J. Sainsbury, the UK supermarket group, bankers dismissed the state investment authority's chances of making its mark on the City of London in the foreseeable future. Six months later, Sheikh Hamad bin Jassim Al Thani, the Qatar Investment Authority's chief executive, is back.

    Qatar has invested more than £2bn ($4bn, €2.5bn) for a stake of up to 10 per cent in Barclays, the British bank, as part of a plan to put $15bn (€9.6bn, £7.6bn) into financial blue chips. The QIA, which is estimated to control $40bn-$60bn in assets, this week also lured NYSE Euronext to invest in Doha's stock exchange. Qatar is building up its financial centre in fierce competition with the established international hub of Dubai.

    Sheikh Hamad will be feted at the top tables of international finance as hundreds of billions of dollars of surplus gas revenues flow into the investment vehicle that aims to keep this tiny Gulf state one of the wealthiest in the world long after its prodigious gas reserves run out.

    His marriage of political power and commercial nous has made him one of the richest men in a region of very rich men. He has been foreign minister since 1992 and was also recently promoted to prime minister. The emir of Qatar is said to have quipped of his longstanding ally: "I may run this country, but he owns it."

    Long before investments raised him to prominence, Sheikh Hamad's idiosyncratic foreign policy and backing of the free-speaking al-Jazeera satellite channel had already attracted attention. He talks openly of "his friends" in Israel, having forged relations with the Arabs' historical foe in the 1990s. At the same time, the Doha offices of Hamas, the militant Palestinian group, receive Qatari largesse. The deserts south of Doha host the largest US base in the region, yet Sheikh Hamad is more critical of Washington's foreign policy than his neighbours.

    In some ways, these positions reflect the split personality of Qatar, which follows the conservative Wahhabi Islam of neighbouring Saudi Arabia but is also banking on tourism.

    Last month Sheikh Hamad's pragmatism gave Qatar its greatest diplomatic coup to date when he halted Lebanon's descent into another civil war by brokering a truce. Pro-western Lebanese had perceived him as too favourable to Iran and Hizbollah, the Shia group, but in the end his contacts with Syria helped him to succeed. By the fourth day of the talks at Doha's Sheraton hotel his casual but determined style had won over Lebanese critics.

    Born in 1959 in Qatar, Sheikh Hamad's studies took him to Lebanon but he perfected his English in the UK, starting his government career at the office of his uncle before becoming minister of municipal affairs and agriculture in 1989. Three years later he became foreign minister, making him one of the main power brokers in what was then a sleepy, underachieving emirate failing to invest its oil revenues for the future. As the current emir, Sheikh Hamad bin Khalifa, plotted against his father to speed Qatar's reforms, he found a willing ally in the foreign minister, who supported his cousin in a successful 1995 palace coup.

    Sheikh Hamad's love of long Cuban cigars may fit the stereotype of the billionaire sheikh, but he is also a connoisseur of gourmet cheeses. Indeed, the former agriculture minister is fascinated by the technology behind food production. He is now leading Qatar's drive to invest in Pakistan and east Africa to clinch corporate farm investment deals in order to secure food supplies as global food inflation bites.

    He divides his time between Doha and abroad, travelling often on foreign ministry or QIA business. His lack of protocol is also reflected in his management style. A quick decision-maker, he is also attentive to ideas from the small but growing team he is building at the QIA.

    He has an extensive personal property portfolio, including, it is said, London's most expensive apartment at the Candy Brothers' One Hyde Park development, as well as other London area homes and hotels. In Qatar, his interests span the plush Four Seasons hotel in Doha and fast-growing Qatar Airways. His wealth has also generated envy. Sheikh Hamad is more likely than other leaders to stir quiet criticism from the loyal ranks of the Qatari populace. Qataris generally describe him as shrewd.

    Sheikh Hamad had uncomfortable exposure in 2001 and 2002 when trust funds he controlled in Jersey were investigated by the island's authorities over payments made to them by a number of European arms makers, including BAE Systems. BAE has denied wrongdoing.

    The case ended when the Jersey authorities closed it in 2002 on the grounds of public interest. At the same time, Sheikh Hamad paid the island's authorities £6m to compensate for any damage "perceived to have been caused" by the investigation and he continued to deny any wrongdoing.

    The lines between the wealth of the Gulf states and their ruling families are blurred. Sheikh Hamad leads the QIA's investment strategy but often invests his own wealth in similar deals to the QIA's. This week's investment in Barclays included a tranche of his own money.

    If his wealth is an issue for some Qataris, so are his reformist politics. Sheikh Hamad is a lightning rod for criticism from vested interests threatened by reforms the government is introducing as its increasing exposure turns the glare of international scrutiny on to its inner workings.

    He often raises awkward questions about the need for Qatar's pampered citizens to play a more productive role in the economy. He has also likened the feudal system of sponsoring foreign workers, which forces most expatriates to seek permission if they want to leave the country, as approximating to slavery.

    Once one of the main proponents of democratisation, he has cooled on prospects for expanding the electoral system beyond municipal councils, fearing the rise of Islamist sentiment and ruefully watching the political paralysis in the Gulf's most democratic state, Kuwait.

    Outside foreign policy, Sheikh Hamad has enough on his plate as he builds the QIA's assets into an endowment that can one day cover the emirate's budgetary outlay, currently heading above $20bn a year. "I think if we invest it right, we can secure Qatar for a generation," he told the Financial Times last year.

    Some in the region would wish him ill in his endeavours, but few would bet against him.

    FT:Qatar's ambition revealed in plans for exchange

    Qatar's ambition revealed in plans for exchange

    By Anuj Gangahar, Jeremy Grant and Simeon Kerr

    Published: June 25 2008 03:00 | Last updated: June 25 2008 03:00

    NYSE Euronext's deal to help Qatar revamp its stock exchange shows how seriously the tiny gas-rich state takes its efforts to develop its financial sector.

    But it also illustrates how important the Gulf region has become in the global chess game of international exchanges.

    This is NYSE Euronext's second foray into the Middle East, after in March signing a technology provision deal with the Abu Dhabi Securities Market. That came after the purchase in February of a 5 per cent stake in India's Multi Commodity Exchange, the sale of options trading technology to the Tokyo Stock Exchange in April.

    The deal provides Qatar with a foreign partner with the technology and expertise to transform the Doha Securities Market, barely 11 years old, into a cash equities, derivatives and commodities platform.

    If that seems ambitious enough - Dubai already has a head start with more developed exchanges - there are plans to roll the offering out into the broader region. NYSE Euronext is making its largest international investment yet to secure a slice of the fast-growing Gulf, where record oil prices are translating into a seemingly never-ending supply of liquidity. This is being ploughed into property, companies and stock exchanges.

    Under the deal, NYSE Euronext will provide "management services and technology" - likely to be the equities trading platform used by Euronext in Europe, and the Liffe Connect futures system used by Liffe, the group's futures arm.

    Duncan Niederauer, chief executive, says: "This is a much more strategic relationship [than with Abu Dhabi]."

    It places NYSE Euronext at the heart of Doha's growth and reform strategy. As its huge gas exports kick in, Qatar is anticipated to become the fastest-growing Gulf state.

    Doha, in the face of economists' doubts, claims it will be the second-largest economy in the region after Saudi Arabia by 2015 - leapfrogging the United Arab Emirates, which spans the oil powerhouse of Abu Dhabi and the business hub of Dubai.

    The Qatar Financial Centre has attracted a modest number of international bankers and the country is set to finalise plans for the establishment of a single financial regulator.

    Sheikh Hamad bin Jassim bin Jabor Al-Thani, Qatar's prime minister, said: "Our country's financial markets will be an integral part of a group which links together the world's major trading centres across the US, Europe and now the Middle East".

    Yet Doha has thrown down the gauntlet to Dubai, which has staked out its claim to be the region's financial capital through the rapid growth of the Dubai International Financial Centre.

    If the DIFC has an Achilles' heel, it is the Dubai International Financial Exchange (DIFX), where after almost three years listings are limited and trading rare.

    Dubai is certainly waking up to Doha's challenge - founded on the country's vast current and future wealth.

    But one official said Dubai still did not regard Doha as a serious threat.

    Deutsche Börse is talking to the Kuwait Stock Exchange about a technical relationship, said one person familiar with the matter.

    The KSE is a large, established bourse with sophisticated traders and offers some of the only derivatives products available across the Gulf. But it is a fairly inwardly-focuse market.

    NYSE Euronext was preceded into the region by Nasdaq OMX, which last year joined the race for Gulf supremacy via a one-third stake in DIFX, part of the complicated deal that saw Dubai take a 20 per cent stake in the combined Nasdaq OMX group.

    Yet NYSE Euronext is confident in the superiority of its offering, particularly built around its Liffe futures arm, especially with the emergence of exchanges trading oil futures.

    Jean-François Théodore, deputy chief executive, says: "The vision we have there is that there is still quite some room for derivatives and commodities markets."

    Up the road from Dubai, Abu Dhabi Securities Market (ADX) in March signed a technical co-operation agreement with NYSE Euronext to develop its cash equities market, but ADX also has plans to develop a Gulf derivatives market.

    Additional reporting by Anuj Gangahar

    what people around the world think of money


    source: http://www.synovate.com/news/article/2008/04/survey-reveals-what-people-around-the-world-think-of-money.html#

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    FT: Taiwan shares lessons of own quake among the ruins of Sichuan

    Taiwan shares lessons of own quake among the ruins of Sichuan

    By Kathrin Hille in Nantou, Taiwan

    Published: June 10 2008 03:00 | Last updated: June 10 2008 03:00

    Since last month's devastating earthquake in China's Sichuan province, an unpre-cedented amount of aid has been flowing into the area from Taiwan, with celebrities and companies competing for the rank of biggest donor. But the island could make an impact beyond money through passing on its experience recovering from a big earthquake that hit on September 21 1999.

    "The Sichuan quake is almost like a copy of 9/21, only on a much larger scale," says Liao Wei-shih, a local government official in Nantou, the county at the epicentre of the island's quake. "Both quakes hit in remote mountainous areas heavily reliant on agriculture and tourism. Both created quake lakes."

    The Nantou quake measured 7.6 on the Richter scale, killed almost 2,500 people and caused more than 50,000 to lose their homes. Nearly 70,000 people died in the wake of the 7.9-magnitude quake in Sichuan. Another 18,000 are missing and 5m were rendered homeless.

    Experts involved in rebuilding after the Nantou quake have gone to China to share their experience with mainland scholars and non-governmental organisations contemplating reconstruction plans. Most stress that the key to successful reconstruction lies in private sector participation and the empowerment of survivors.

    In retrospect, private groups say that Taiwan's government acted fast and took the right steps.

    Taipei passed extraordinary legislation to grant funds and remove bureaucratic hurdles to reconstruction. In two areas where landslides transformed the topography - burying villages, creating quake lakes, filling gorges and splitting mountainsides - the government bought all private land and created geological parks where construction and farming are banned.

    Where villages and towns were only partly damaged and survivors were waiting to rebuild, Taipei gave the private sector a large role. The government collected donations and set up the 921 Earthquake Relief Foundation, run by private sector experts, to plan reconstruction and distribute money.

    "This partnership made reconstruction much more efficient," says Shieh Chih-cheng, a professor at National Taiwan University and chief executive of the foundation, which is to complete its work this month.

    Mr Shieh, who visited Sichuan last month, suggests that China look at the 921 foundation's residential property reconstruction programme, under which it helped owners in destroyed apartment complexes and townhouse communities negotiate agreements on whether, when and how to rebuild, and used relief donations for loans and grants to those owners who could not afford reconstruction.

    Beyond such official efforts, grassroots involvement also played a big role. The village of Ho Hsing, destroyed in the 9/21 quake, is a case in point. All but six of its 297 households relocated to temporary housing provided by the government.

    "The real catastrophe came when our people realised that they had lost their source of income because their land could no longer be farmed, so the value plummeted by 75 per cent and no bank would take it as collateral," says Chang Chih-yuan, a villager.

    Mr Chang and other villagers used sand and rocks the quake had dumped into a river to shore up slopes. A group of villagers then pooled their land for a cooperative native plant garden. Ho Hsing organic cultural village, headed by Mr Chang, has become an eco-tourism spot that keeps 14 families alive.

    There are dozens of similar examples across central Taiwan. For many villages, the quake served as a catalyst to rethink their economic model, says Liao Chia-chan, founder of the New Homeland Foundation, a small community development group. "Many villages were not sustainable even before the quake," he says.

    It remains to be seen how much of this can be transplanted to China, but Taiwanese experts are

    optimistic. "If the government shows goodwill and allows private participation, resources could be increased a lot and citizens will have a channel for their enthusiasm to help," says Mr Shieh.

    "[China's organisations] should strive to make 2008 the year Chinese civil society was born."

    FT: In China, women wore the trousers

    In China, women wore the trousers

    Published: June 10 2008 03:00 | Last updated: June 10 2008 03:00

    From Dr A.R.T. Kemasang.

    Sir, It is correct that Yves Saint Laurent did not create the women's trouser suit (letter from James W. Beaumont, June 5). However, neither did London Transport.

    Trouser-wearing among women was in fact started by Chinese women who, within China's rizicultural economy, occupied equal status with their male counterparts. Indeed, the most important task in riziculture - the planting of China's staff of life, rice - is traditionally women's preserve. Hence they used to wear the same working garb as their male counterparts.

    Throughout sinaean ("Oriental") Asia up until at least the 1950s, the word for "a trouser-wearing woman" meant exclusively a Chinese woman. This is also why originally it was only in Chinese kung fu stories that we had female combatants as formidable as any of the men.

    Not only does it all show that since ancient times women in China have always enjoyed a surprisingly equal status to men, it also proves what freedom trouser-wearing allows them.

    A.R.T. Kemasang,
    London SW15 2JE, UK