Archive for category: Uncategorized

In what we don’t believe will serve as a useful metaphor of our world’s strange times, when we were filling our tank the other day at a gas station, a large white truck started to back into the pump position next to ours. But the driver of the Ford F150 kept backing and backing up and clearly did not see my car parked there. I began waving my hands and yelling “stop,” but she kept coming. I stepped towards her truck trying to get in her line of sight and kept up my shouting until finally she saw me and threw on her brakes, but not in time to stop her big truck from nudging into the rear-end of my car. She quickly pulled forward, and then leaped out of her car apologizing. I said it was okay, accidents happen, and we investigated the back end of my car, which fortunately showed no signs of damage. She continued to apology so profusely that I found myself trying to calm her down she was so upset at her carelessness. So come to think of it, this is definitely not a metaphor for our times. But it does remind us of our fondness for the coming age of self-driving cars, which leads us to examining the Innovation Index, contemplating who has the most satellites and heralding the most amazing autonomous technological breakthrough yet. It’s this week’s International Need to Know, navigating the world of international news and data with nary a bent fender or broken side mirror.

Without further ado, here’s what you need to know.

Is the Innovation Index Innovative?

Tis better to have loved and lost than never to have loved at all wrote ole Tennyson after losing his close friend Aaron Henry. Similarly modern economists and psychologists say it is better to take risks and fail than to be completely complacent, though none express it nearly as elegantly as a 19th Century poet. We kept this in mind when analyzing Bloomberg’s 2018 Innovation Index where once again South Korea takes the top spot, followed by Sweden, Singapore, Germany and Switzerland. Prinn Panitchpakdi, head of an Asian brokerage firm in Thailand, notes that “Innovation lags in countries where the culture emphasizes risk avoidance and where R&D is seen purely as an expense, not as an investment. That’s the mindset in Thailand.” Consequently you won’t find Thailand until 45th place in the rankings. They are so worried about losing, they aren’t loving. The U.S., for the first time, has fallen out of the top ten, though apparently not for lack of willing to fail but because our education system is not producing as many science and engineering graduates for the workforce as it once did. The index ranks countries in their innovativeness by scoring them on seven categories, including research and development spending, patent activity and high-tech density. We are not entirely convinced the index is an accurate ranking of the most innovative countries, but it’s an interesting benchmark to contemplate. As Tennyson wrote, “knowledge comes, but wisdom lingers.”

Satellite of Love

The Union of Concerned Scientists, who have no shortage of things to be concerned about nowadays, tracks the number of satellites currently in orbit around earth, of which there are more than 1000 total. You should not be surprised that the United States is by far the leader with 803, followed by China (204) and Russia (142). Of America’s satellites, 19.8 percent of them are for military use. For China, it’s hard to tell for sure from the data but conservatively at least 31 percent are military-oriented. And those crazy Russians?  At least 60 percent of their satellites are for military use. How many satellites each country has twenty years from now and what percentage of them are military will say a lot about these countries’ economies and the state of world technology. BTW, Direct TV, which has 10 satellites, has more satellites than most countries. TV!

Unemployed Dogs

In a week when many in America considered the state of the union, perhaps it is an appropriate time to step back and look at the big picture. And by that we mean the amazing breakthrough of self-driving slippers. Long time readers know of our affinity for self-driving cars, but who can doubt that an even bigger advance for humankind is autonomous nighttime footwear? It is, of course, no surprise that this kind of a technological breakthrough took place in Japan (number 6 on Bloomberg’s Innovation Index!) where a hotel offers slippers that roll on tiny wheels directly to wherever your feet are. No, really, check out the video below. Strangely, we take this as more evidence that autonomous cars will first be deployed outside the United States, probably in Asia. Developed by Nissan, the slippers are being used at an inn southwest of Tokyo with views of Mt. Fuji. We are, even as we type, working to make reservations there. So put your feet up, clad easily in your self-driving slippers, and enjoy our little world.

News Techcology – Nissan releases self-parki…
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During our knee surgery convalescence, we caught up on a fair amount of television, especially when we were on pain killers which dulled our ability to read. Pain killers also prevented us from creating a spreadsheet tracking the number of sexual harassers involved in the shows we were watching. We think and hope the number was small but certainly not zero. For instance, we caught up on the last two seasons of the masterful show, Silicon Valley (only one accused…so far)–to our mind the funniest, most spot on satire of recent years. In episode 7 of season 4, the legal rights of the song Walking on Sunshine by Katrina and the Waves plays an important role, with the allegation that Katrina–or perhaps it was the Waves, we’re not sure–ripped off the melody from an old Mexican song. Masterfully, at the end of the episode, a Mariachi version of Walking on Sunshine plays over the credits. And while we’d consider walking in front of oncoming traffic when the Katrina and the Waves song is played, this cover enchants us, which says something more bad about us than Katrina and the Waves. But we have nothing bad (yet) to say about surprising information out of Djibouti, remind ourselves about paying immigrants to go home and ask sincerely, “who is having a good day?”  It’s this week’s International Need to Know, providing, in the lingo of present day politics, a s***load of important information about our world, wherever and however we find it.

Walking On Sunshine – Mariachi La Estrella fe…
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Without further ado, here’s what you need to know.

Keep an Eye on Djibouti

We begin this week with a question: which country is host to more countries’ foreign military bases than any other. The perhaps surprising answer is Djibouti, which like a moth to light, a Kardashian to a camera, has attracted military bases from eight different, diverse countries. The U.S., of course, has one there, as it does in over 70 countries around the world. Old time European power France has a base there and Italy is building one. But so too does China, placing its first foreign military base in a country that is strategically located near shipping lanes and bridging north Africa and the Middle East. Japan also has its only foreign military base in Djibouti. India is interested in building one and allegedly Djibouti is wooing Turkey to build one. The country is both hedging their bets and using the bases as an economic development play. China, always interested and active in Africa nowadays, has built a new electric rail line from neighboring Ethiopia to Djibouti—Ethiopian trade accounts for 70% of activity through Djibouti’s port, a significant portion involving China. It’s a tiny place and I bet you haven’t thought about Djibouti lately or perhaps at all. But the world’s powers are congregated there which could lead to mischief, fun and amusement, perhaps all at the same time.  A place to keep an eye on.

Paying the Immigrants to Leave

Fear is a powerful emotion. Immigration has sparked fears across the Western World, including in Europe. A week after our racist U.S. president continued to say racist things about immigrants, we came upon data comparing how much European nations are paying immigrants to return to their home countries.  Yes, perhaps like us you’ve forgotten that a variety of European nations have been offering moola for their recent immigrants to go home, or in some cases to help them pay the costs to return home. Sweden is offering the fattest checks, up to 3050 Euros to head out of their country and back to their countries of origin. Spain and the UK are tied for second at 2000 Euros each, with Finland and Germany rounding out the top five. The full list is below for your perusal, especially if you’re an immigrant yourself and examining where you can get the best deal.  However, not all European countries were offering such monetary assistance. The Czech Republic, for instance, offers no financial incentives.

A Good Day

How is your day going so far? Well, we hope. If you are living in sub-Saharan Africa, Latin America or the United States, “you are more likely than people in other regions of the world to say you’re having a particularly good day,” according to a new survey conducted by Pew Global. Last year, Pew asked 42,000 people in 38 countries around the world, “How would you describe your day today – has it been a typical day, a particularly good day or a particularly bad day?” Nigerians were most likely to respond positively with 73 percent saying it was a good day. Colombians, Ghanaians and Brazilians were also particularly cheerful. Americans and Canadians are more likely to be having a good day than Europeans. Australians rate pretty low on good day responses, perhaps because they’re too busy saying “g’day.”

We had just returned to campus from the Christmas holiday during our sophomore year of college when it happened. We were playing in a pick-up basketball game in the university’s main gym and our team kept winning so we kept playing, taking on all comers on the court. We were getting tired and a little post holiday celebration the night before surely did not help. We went up for a rebound and landed on one of our opponent’s two left feet. And this was when our kneecap dislocated. Now it was certainly painful but the thing we most remember is two guys sitting on the sideline screaming, “Look at his $#%ing knee, look at his $#%ing knee.” Even granting that a knee sticking out an unnatural angle would surely trigger their alarm, we were scared enough without their added hysterics. The kneecap soon moved back into the correct position, which was nice, our knee swelled up and we commenced to having a “bad knee” for the rest of our life, which for many years didn’t stop us from playing lots more basketball and other high impact sports. But it does mean even at our tenderly young age, next week we are getting knee replacement surgery. Earlier this week, our surgeon emailed to inform us to “expect extreme pain for two to three weeks.” We equate such a message to the one screamed by the two guys on the sidelines those many years ago, though we will not inform the surgeon of our judgment ’til after the surgery. So, this will be the last INTN of 2017 as we’re guessing opioid-fueled international stories may not be the best ones. But we hope to return on January 4th (or the 11th at the latest) with everything you need to know about the world. Still, this week we bring a dose of authoritarian economies, check up on the reverse Flynn Effect and do an MRI on China’s virtual singing sensation. It’s this week’s International Need to Know, wishing you and yours a healthy and happy holidays.

Without further ado, here’s what you need to know.

Trickling Down to Authoritarians

As we have noted before, democracy is not as popular around the world as it once was. And as people such as Tyler Cowen point out, this is partly because of the economic success of China and other authoritarian regimes. The Philippines is another example. President Duterte is a less than savory character with a waterboard load of human rights problems. But the Philippine economy is doing as well as it has in the last 30 years. The country is on pace to have the 10th-fastest growing economy in the world, according to the World Bank, with GDP growth of around 7 percent. Its debt to GDP level is decreasing, non-performing loans down to 1.8% and its inflation rate at a reasonable 3.3%. The World Bank notes that fiscal expansion has “boosted capital formation and private consumption.” Unlike many Asian economies, currently the Philippines’ economic growth is being built on domestic demand even as its exports grow. The world is cyclical and as long as authoritarian governments are in an economic up cycle, liberal democracies’ brand will suffer. But someday, perhaps sooner than their rulers think, their economies will spin into less favorable waters, washing ashore challenging political flotsam and jetsam.

Out Like Flynn?

If you watch the news, scan through Facebook or read your Twitter feed, it would be very easy to come to the conclusion that we humans are becoming dumber. And, there is indeed evidence this is so! At least in some places, where there is an anti-Flynn Effect taking place. You may remember that the “Flynn Effect” is a phenomenon where IQ scores have been rising with each successive generation, at least since 1930, when such standardized testing began. There may actually be a reason that children think their parents are idiots. Comparatively, they are. But, now a new paper asserts the Flynn Effect is in reverse in a number of countries, including all the Scandinavian countries, Britain and Germany (Germans are actually better at verbal parts of these tests but are doing worse on spatial). But if you are about to say, “Aha, this explains politics in America,” actually U.S. IQ test scores continue to increase. Korea is not going in reverse either. In fact, the study states South Korea “is gaining at twice the historic U.S. rate.” The beginning of the reversal appears, according to the study, to date to 1995. Hmm, what really started to take off around the world in 1995?

Virtual Singer Killed the Video Star…

It has come to our attention, much later than one would hope, that there is a virtual music star in China named Luo Tianyi. Such a creature, we learned, is called a “vocaloid”, i.e. a “singing voice synthesizer.” It is unsurprising that such a digital creature was created by a Japanese company, the place of origin of so much kawaii (lovable, cute) culture, but it is both a bit surprising and hope inducing that Japan and China collaborated on this pop culture project. An article in The Global Times–the People’s Daily’s tabloid–notes that Luo Tianyi has come to “special attention from the Communist Youth League of China (CYLC) and other governmental organizations, who try to instill correct thinking into the younger generation with her singing.”  Nothing speaks to young people like governmental organizations promoting the right way to think. As CYLC states in an article on the mobile platform WeChat, “Although CYLC is 95-years-old, our heart is always with you, the young people.” And we can’t think of a better way to leave 2017 than with Luo Tianyi, singing “In the Center of the Peculiar Storm.” See you next year.

【洛天依】Luo Tianyi – 在異樣的風暴中心 In the Centre of t…
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Last year for a client we interviewed a variety of small companies regarding their challenges and opportunities in doing business. It was remarkable how many of them commented on the difficulties they faced in competing with large companies. And not natural differences stemming from economies of scale but rather from rent seeking that has been unfairly built into our regulatory and legal systems. So we recently read with interest and focus the most important book of 2017, The Captured Economy: How the powerful enrich themselves, slow down growth and increase inequality* by the libertarian leaning economist Brink Lindsey and the politically liberal Steve Teles (theirs is not a partisan treatise, both parties are guilty in not addressing the central problems outlined in the book). The Captured Economy details–using data, case studies and anecdotes–how rent seeking is out of control in the United States, at all levels of government–federal, state and local. It explains how and why the finance industry has become too large a part of our economy, why doctors, lawyers and dentists are so expensive and why it costs too much to buy a house or rent an apartment. It explains how rent seeking is a large reason for the increasing income inequality in our country. One hopes political leaders of all stripes, at all levels of government, will read the book, absorb its lessons and apply them. We hope you, dear readers (some of whom are political leaders yourselves) will too. The issues and solutions outlined in this book are among the top four most important facing our country. So even as we work to become part of the one percent without the benefit of rent seeking, we present more information on automations effect around the world, examine restrictions on social media globally and continue our efforts to remind people of good news. It’s this week’s International Need to Know, switching the channel from CBS Morning News to the Today Show–er, uh, turning on the radio to NPR–oh crap, we give up.

*Our PhD thesis is an examination of the steady lengthening of book’s subtitles.**

**The subtitle of our thesis is too long to print here.

Without further ado, here’s what you need to know.

Automations Effect Around the World

Last week we linked to a report predicting that in 40 years all jobs will be taken over by robots. Perhaps, but even if this does not occur, continued automation of certain jobs will take place over the coming years. Which countries will be most effected? McKinsey attempts to quantify this in an update to an earlier report on automation. It states that China is at risk for the most people losing jobs to automation between now and 2030 with 102 million Chinese workers predicted to lose jobs to automation during that time period. But that’s partly a function of China’s size. When looking at percentage of workforce, Japan sees the largest job loss, followed by Germany and the U.S. Japan is at risk of 46% of their workforce losing jobs to automation. This is a startling number but salved somewhat by the fact that Japan’s overall workforce is shrinking due to aging demographics. McKinsey speculates that with new job category creations, Japan may not suffer as badly as that 46% figure indicates. Nonetheless, unless automation creates huge increases in productivity (GDP, as we have noted before, increases only through growth of working age population and increases in productivity), Japan is likely to continue to have slow GDP growth. And most countries will face economic adjustments due to automation over the next decade.

The Freedom of Social Media

So we confess: We miss the golden age of blogs and mourn the advent of social media. We are no Luddite but we wonder if social media, so far, is a net negative for humanity. Nonetheless, we also take note of where social media is free and where it is heavily governed, via a new report from Freedom House.  According to the freedom monitoring organization, “Online content manipulation contributed to a seventh consecutive year of overall decline in internet freedom, along with a rise in disruptions to mobile internet service and increases in physical and technical attacks on human rights defenders and independent media.” Freedom House notes, of course, Russia’s efforts at information manipulation, including in the U.S. election, but also reports that the number of governments attempting to manipulate information online has steadily increased since they began monitoring the phenomenon in 2009. “Venezuela, the Philippines, and Turkey were among 30 countries where governments were found to employ armies of ‘opinion shapers’ to spread government views, drive particular agendas, and counter government critics on social media.” The attacks are not all virtual: “The number of countries that featured physical reprisals for online speech increased by 50 percent over the past year–from 20 to 30 of the countries assessed.”There’s a reason why free speech is the first amendment.

Good News Corner

In our continuing attempts to remind ourselves that the world is on the whole continuing to get better (despite the news in the two previous stories!), we point to the latest data on child mortality estimates from the World Bank released earlier this week. This data shows that “between 1990 and 2016, the global under-five mortality rate dropped by 56 percent.” Not too shabby. In fact, the last decade has seen more progress in decreasing child mortality than the previous decade. We are doing better and better. Of course, there is more work to do as still even now 15,000 children die every day. And some places are doing better than others. More than 80 percent of global under-five deaths occur in just two regions–Sub-Saharan Africa and South Asia. The second chart below shows the countries with the highest child mortality rates–Somalia tops the dubious list–and those with the lowest–Iceland!  But even admitting there is more work to do, we should note our darn good progress.

 

   

When someone mentions cutting edge, daring television, the first thought that comes to your mind is probably some dark show on HBO, or a drug drama on FX or a sex comedy on Showtime. But we submit to you that the most daring television show is currently on one of the traditional three networks. It’s The Good Place, which is not particularly dark and has very little sex and violence. But it’s far more daring and cutting edge in both its content and approach than any of the current prestige shows on premium cable. The Good Place stars Ted Danson and Kristen Bell (who will always be Veronica Mars to us) and tackles intelligently and with humor ethics, philosophy and our place in the universe. There simply is no other show on TV like it. We submit it is far more daring and cutting edge to produce a television show tackling existential issues (in a fun and entertaining way) than to make yet another anti-hero, there is no hope viewpoint, violent program. So even as we contemplate the trolley problem, we turn from our role as TV critic to international scribe as we write about what Asia thinks of China, a big advance in AI and the changing of the billionaire guards. It’s this week’s International Need to Know, unindicted but conspiring to bring you important news and data from around the world. (Note: Next week we are in our beloved New Orleans eating alligator cheesecake at Jacque-Imo’s, drinking Pimms Cups at Napoleons and watching the Rebirth at the Maple Leaf–INTN will return Nov 16th)

Without further ado, here’s what you need to know.

What Asia Thinks About China

Despite the perhaps sage advice not to worry what others think about you, as China’s Party Congress ended, Pew Global reminds us of what the rest of Asia’s views of China are. The results are mixed. In terms of the “effects of China’s growing economy,” Australians are quite positive that China’s growth is beneficial for them, with 70 percent saying it’s a good thing. As well they would since Australia’s economy booms when China buys their commodities. Vietnam and India are less sanguine about China’s economic growth (see chart below). China’s growing economy is divisive but its growing military unites Asia with all countries seeing it as a bad thing. Unsurprisingly, South Koreans, Japanese and Vietnamese are most concerned. Those three countries are also most vociferous when asked whether “China’s power and influence is a threat” to their countries. But interestingly, South Koreans are far more concerned about this than Japanese. The Vietnamese too. But all these countries view China at least a little worriedly when asked this question. There is also not a huge amount of confidence in President Xi “to do the right thing regarding world affairs” as you see in the chart below. But Pew also notes that “in two U.S. treaty-allies in the region, Australia and South Korea, people have more confidence in Xi than in Trump.” We are confident such views are having an impact on the world order. 

Who’s the Brains of this Operation?

It’s been quite a month for artificial intelligence research. Alphabet announced its new Alpha Go Zero computer beat Alpha Go (which last year easily defeated the best human Go player in the world) 100 games to 1. It did so by teaching itself how to play the game, not by just crunching data. This is both remarkable and a little unsettling. But as we reported a couple weeks ago, China has made rapid progress in the AI sphere and is now also creating one of the largest efforts in the world to map the human brain. Located in Suzhou, the lab, which is a collaboration of government funding and Huazhong University of Science and Technology, hopes within three years to be the largest high-resolution brain mapping center in the world. Currently operating at one-fifth capacity, the lab maps five mouse brains a day, up from one mouse brain every 50 days in 2010. Within five years, they hope to start mapping human brains. Ironically, perhaps by the time we understand the human brain, it will no longer be the strongest intelligence on the planet. Meanwhile, Reuters reports that “Bank of Japan Governor Haruhiko Kuroda on Tuesday brushed off the notion that researchers can use artificial intelligence to analyze his facial expressions and predict changes in monetary policy.” It seems that both Microsoft and Nomura Securities are using software to analyze Kuroda’s facial expressions and predict future Japanese Central Bank policy: “Kuroda’s face shows signs of a policy change about six or seven weeks before the central bank’s board actually decided to adjust policy.” We are either all doomed or going to have become very adept at playing poker.

What’s in a Brain? The Lab in China That Want…0 likes13 views

Billionaire Changing Guards

F. Scott Fitzgerald, polishing his ironic quote on the wealthy with the ultimate dab of the clothes brush, once wrote, “The rich are different than you and me, they have more money” (any billionaire INTN readers are encouraged to contribute to our coffers to make us more alike). This year billionaires have more money than last, $6 trillion up from $5.1 trillion. And, to bury the lede, for the first time there are more billionaires in Asia than in the U.S, 637 to 563. Yes, over the last year the number of Asian billionaires rose by 117, whereas only 25 Americans climbed that wealth mountain. But do not look down-in-the-mouth American ultra-wealthy, your overall wealth still tops Asian billionaires, $2.8 trillion to $2 trillion. China, of course, is a big reason for Asia overtaking America, adding 67 billionaires with India chipping in another 16. Check out the progression below.