As many as 10,000 corrupt government officials have fled China with $100 billion.
More unexpected, however, was the heavy press coverage that Yang’s walkabout attracted in a country where the government is generally reluctant to wash its dirty linens in public. That suggests that “the government is sending a signal” that it regards “the number of officials fleeing as a very important problem which needs to be solved,” says Mao Zhaohui, director of anticorruption studies at Beijing’s Renmin University.
Corruption is pervasive at almost every level of the government, and it is a major factor eroding faith in the ruling Communist Party. Earlier this year, after thousands of schoolchildren died in the Sichuan earthquake, the Internet was ablaze with accusations that local officials had taken bribes to approve substandard materials for school construction.
Chinese President Hu Jintao has repeatedly declared that the fight against fraud is a top government priority and courts have handed down heavy sentences against prominent offenders. Last year, the former head of the Chinese Food and Drug Administration, Zheng Xiaoyu, was executed after being found guilty of taking bribes to approve thousands of new drugs.
China has many strong winds for economic growth. Corruption is an anchor holding back their progress.
Related: Capitalism in China - Not Understanding Capitalism - Oil Consumption by Country - Data on Leading Manufacturing Countries - Curious Cat Economics Search Engine
The updated data from the United Nations on manufacturing output by country clearly shows the USA remains by far the largest manufacturer in the world. UN Data, in billions of current US dollars:
| Country | 1990 | 1995 | 2000 | 2005 | 2006 | 2007 |
|---|---|---|---|---|---|---|
| USA | 1,041 | 1,289 | 1,543 | 1,663 | 1,700 | 1,831 |
| China | 143 | 299 | 484 | 734 | 891 | 1,106 |
| Japan | 804 | 1,209 | 1.034 | 954 | 934 | 926 |
| Germany | 438 | 517 | 392 | 566 | 595 | 670 |
| Russian Federation | 211 | 104 | 73 | 222 | 281 | 362 |
| Italy | 240 | 226 | 206 | 289 | 299 | 345 |
| United Kingdom | 207 | 219 | 228 | 269 | 303 | 342 |
| France | 224 | 259 | 190 | 249 | 248 | 296 |
| Korea | 65 | 129 | 134 | 200 | 220 | 241 |
| Canada | 92 | 100 | 129 | 177 | 195 | 218 |
| Spain | 101 | 103 | 98 | 164 | 176 | 208 |
| Brazil | 120 | 125 | 96 | 137 | 170 | 206 |
| Additional countries of interest - not the next largest | ||||||
| India | 50 | 59 | 67 | 118 | 135 | 167 |
| Mexico | 50 | 55 | 107 | 122 | 136 | 144 |
| Indonesia | 29 | 60 | 46 | 80 | 102 | 121 |
| Turkey | 33 | 38 | 38 | 75 | 85 | 101 |
The USA’s share of the manufacturing output of the countries that manufactured over $200 billion in 2007 (the 12 countries on the top of the chart above) in 1990 was 28%, 1995 28%, 2000 33%, 2005 30%, 2006 28%, 2007 27%. China’s share has grown from 4% in 1990, 1995 7%, 2000 11%, 2005 13%, 2006 15%, 2007 16%.
Total manufacturing output in the USA was up 76% in 2007 from the 1990 level. Japan, the second largest manufacturer in 1990, and third today, has increased output 15% (the lowest of the top 12, France is next lowest at 32%) while China is up an amazing 673% (Korea is next at an increase of 271%).
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Kiva has added a fellows blog - which is a great idea. The fellows are funded by Kiva (fellows are unpaid) to go to spend time in the countries Kiva facilitates loans for working with the local partners. This post is about Rita Bashnet (in photo) an entrepreneur from Nepal:
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Five years ago, Ms. Rita took her first loan of NRs. 10,000 (USD $150) and purchased some extra seed and fertilizer in the hopes of expanding her small vegetable patch. With the profits from this initial investment and a second loan from Patan Business and Professional Women (they offer a graduated loan program), she then purchased her first dairy cow.
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After hearing about a program that subsidized the installation of methane gas storage tanks, Ms. Rita took another loan and applied for the program. With this new system, she is now able to capture the valuable gas released from her cow’s waste in a simple controlled-release storage tank. Today she no longer purchases gas from the city and can even sell some during times of shortage.
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Ms. Rita exemplifies the potential of microfinance. A combination of access to capital and strategic investment has allowed her and her family to drastically improve their economic situation in a short five years.
Great story, and exactly my hope for using capitalism to improve the standard of living for people around the globe. I notice today, for the first time, some of those seeking loans are about to have their listings expire unfunded. Kiva gives listings 30 days to be funded. I have no problem if some loans are not funded (I want to help entrepreneurs by providing funding to build a business - some loans are for things like adding a room onto their house, which is fine but not what I want to support with interest free loans from me). But, this is a big change from when I couldn’t find anyone to loan to (they had so many people looking to lend that they didn’t have enough loans to fund). If you haven’t loaned money through Kiva (or you haven’t added to your loan portfolio recently), please consider it now. If you do, send me your Kiva lender link and I will add it to Curious Cat Kivans. My biggest wish for this blog is to get more readers listed on that page.
Related: Using Capitalism to Make a Better World - Funding Entrepreneurs in Nicaragua, Ghana, Viet Nam, Togo and Tanzania - 2006 Nobel Peace Prize to Economist - Frontline Explores Kiva in Uganda - Trickle Up
I have made some additional loans through Kiva, $250 for 5 loans in: Nicaragua, Ghana, Viet Nam, Togo and Tanzania. I have now made 37 loans for a total of $1,775. 5 loans of $250 have been paid back (and I relent the proceeds). Kiva says 5.64% are delinquent. While they show my delinquency rate they don’t show me which loans are delinquent. Frankly I think that figure may be in error (maybe it is counting one that was delinquent but is not now - see next paragraph). In any event all loans appear to have been paid off in full on time or are being paid in full now on time.
In any event no loans are in default. One loan in Kenya for bike repair shop (that for whatever reason I especially liked) and did connect me more to the troubles in Kenya recently. Kiva mentioned many banks were having trouble keeping in touch with clients as many people fled violence. For two months there was no activity then there was a payment for 3 full months. I was happy when a new payment came in, not for the money being repaid (which shows again that my aim with this money is not a return for me but to provide opportunities to entrepreneurs), but for confirmation he was doing well.
Photo of Cesar Augusto Santamaría Escoto in in his welding workshop, Chinandega, Nicaragua.
If you have a Kiva page, let me know and I will add a link to it on the Curious Cat Kivans page.
Related: Provide a Helping Hand - Microfinancing Entrepreneurs - Entrepreneurship posts on the Curious Cat Science and Engineering blog
Japan to Cut the Cost of Solar 50% Creating Greater Self-sufficiency
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The incentive will decrease the cost of a solar photovoltaic system by an estimated 50% within 3 to 5 years. This initiative will make solar energy especially appealing because the cost of electricity in Japan is already over $.20 a kWh. This is roughly double the rate of electricity found in many areas of the US.
Germany is the largest solar market (due to government policy encouraging solar development).
Related: Large-Scale, Cheap Solar Electricity - Solar Energy: Economics, Government and Technology - Wind Power Potential to Produce 20% of Electricity Supply by 2030 - solar energy posts on the Curious Cat Science and Engineering blog
Singapore’s Social Entrepreneur Diana Saw makes things Bloom in Cambodia
The decision was swift as it was simple: move to Cambodia to provide jobs for poor women. I first
visited Phnom Penh in April 2006 and was back the next month to look for a house.
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I approached the job placement arm of an NGO in Phnom Penh (PP). There are many NGOs who train poor Cambodians, but what this country needs is jobs. You can train people all you like, but if no one employs them, you’ll have frustrated skilled people who are unable to use their
skills.
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Bloom has a savings plan for staff. Every month staff are encouraged to put away a percentage of their income which goes towards buying a sewing machine. Bloom will then subsidize the cost of the machine. With the machine, workers will be able to become small business owners, supplying bags not only to Bloom, but to other sellers, like small shops in the tourist markets.
Related: Bloom Bags Blog - Using Capitalism to Make the World Better - Make the World a Better Place - Kiva - Provide a Helping Hand - Aim for everybody to gain: workers, customers, suppliers, shareholders… - Obscene CEO Pay
- We believe in the right of all people to a decent life, free of poverty, and with access to education
- We believe you can be rich by helping the poor
South Korea to Start $22 Billion Fund for Oil, Gas Projects
South Korea needs to catch up to China and India, who have scoured the globe to lock in resources to fuel economic growth. Korea, the world’s fifth-largest importer of oil, buys in 97 percent of its energy and resource needs.
This sounds like the type of news that 3 years later everyone says was the sign of a bubble. Today it is hard to tell whether the boom in oil and commodity prices are a bubble or a sign of a huge demand increase that the cannot be supplied at current costs (combined with the plunging dollar which exaggerates the trends - and maybe by a decrease in supply too). I would have to say I am leaning toward a bubble signal but to what extent? Is the average price over the next 5 years going to be $50 a barrel (versus $93 today) versus say $25 a few years ago? Or is that price $100 or $150? In a few years people will say it was obvious today - what are they saying today?
Related: MIT’s Energy ‘Manhattan Project’ - 10 Stocks for 10 Years Update (Feb 2007)