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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Stitch who wrote (8090)	2/24/1999 8:49:00 PM
From: Dayuhan	Read Replies (2) \| Respond to of 9980

Stitch, I suspect that our difference in perception is largely the result of the differences between the Asian countries we happen to live in. Certainly the Maugham-style sweat shop is alive and well in the Philippines; I have seen them in Vietnam as well, and I'm sure Indonesia has its share. They will naturally gravitate to wherever labor costs are cheapest. Even the supposedly "high-tech" businesses here are frequently just assembly points, where hundreds, sometimes thousands, of workers, usually young and female, put imported parts together. Inevitably the export figures cite the total value of the product, not the value added in the Philippines, which makes this business look much larger than it really is. Conditions in the garment and footwear industries are beyond description. I do not know much of labor conditions in Malaysia, but as I mentioned before, the skilled laborer in the Philippines is paid a pathetic sum, despite a serious shortage of skilled laborers. There are plenty of good Filipino mechanics, electricians, plumbers, carpenters, masons, etc., but it is practically impossible to find one - they are all overseas, earning money. Even educated and talented white-collar workers leave in droves, confronted by a culture of family-run corporations in which ascendancy has more to do with connection than competence. These trends are changing, but very, very slowly. This in many ways is still a feudal culture, in which those who own the means of production, whether agricultural or industrial, reap the lions share of the benefits while contributing very little capital or direction. The Filipino millionaire who lives the jet-set life while his farms and factories crumble for want of maintenance is a caricature, but it is based on very real truths. This class has retained its dominance and fended off competitors through its continuing dominance of government. Regulation and bureaucracy are not whimsical: they exist to ensure the continued dominance of the old elites. I realize that these conditions are not representative of all of Asia; the Philippines is in many ways culturally closer to Latin America. They certainly do exist, though, in varying degrees, throughout the region and throughout the developing world. I think there are a lot of countries that really do need a bit of revolution, and it is unfortunate that revolution has come to be automatically equated with socialism. Too many third world elites have gotten away with passing feudalism off as capitalism, largely because they shared the capitalist antipathy for socialists. Unfortunately, feudalism is as unlikely to generate real growth as socialism. In these countries, I would say that a strong labor movement will play a vital role in forcing necessary changes. I agree that the free market will ultimately be more efficient, but it should be noted that distortions of the free market are as likely to come from corporations trying to gain competitive advantage by manipulating government as from any labor-generated socialist agenda. It is often more difficult for government to resist this sort of pressure, as government and corporate figures are often linked by strong family and social ties. Ultimately, economic liberty cannot be achieved or sustained without political and civil liberty. JMO, of course... Steve

To: Stitch who wrote (8090)	2/24/1999 8:50:00 PM
From: shadowman	Read Replies (1) \| Respond to of 9980

Stitch, >Actually I said "exploitative", spelling it correctly <G>< I sit corrected. If I can get through a couple of sentences without a spell checker, I consider it a moral victory :) I think both of us are speaking in terms of "ideals". You concerning free trade and free markets and me concerning "enlightened" benevolence on the part of governments and employers. Neither are probably humanly attainable but we can both dream <G> I know this is the Asia forum but I didn't mean to imply that the problems sited are endemic to Asia. Originally I tried to say that the development of a healthy and hopefully large middle class could contribute to the economic and political stability of any country. I may be wrong but it seems that giving individuals the wherewithal to own property ( a dwelling), some savings and the ability to consume some consumer goods, soothes the savage soul. If couch potato suburban America is any measuring stick? The best to you.

To: Stitch who wrote (8090)	2/24/1999 9:38:00 PM
From: Michael Sphar	Read Replies (2) \| Respond to of 9980

Stitch, I wish I could think half as well(/good ?) as you can write...<g> I remember riding through the streets of Penang in 1982, then returning 8 years later. The differences I noticed both in the factories that I was visiting and in the general city/town traffic were eye opening. Much progress had been made. The same was true Singapore. I also remember in the early 1990s traveling to Steve's corner of the world. One of the notable memories of my several visits to Cebu/Maktan Island industrial area, was the moment of disembarking from the plane. A tall metal fence, the kind you might see surrounding a sports field in the US kept the locals out of the baggage/arrival area. Through this fence, literally dozens of men would beg for attention, thrusting resumes through the chainlinks, badgering anyone within earshot for a chance to get work. It was emotionally painful for me, to pass by this. The factory that I was visiting there in Cebu was a transistor manufacturing factory. Talk about sunset technology and of course I came with zero clout, but how were they to know this ? What were their alternatives ? I believe large international businesses did the right thing in seeking out areas where large willing work forces were/are available at low costs, they have a responsibility to the shareholders to maximize profits and corporate value. I also think that the management of these businesses truly believe they are helping their employees and are not merciless at the core, at least this seemed true of the American businesses that I have known. A sliding scale of course, and some would say differences exist between businesses of one national culture and another, American vs Japanese for instance. This is not to say that sweatshop situations don't exist but that opportunities for both the sweatshop and personal economic advancement exist. Life is what you make of it. I know of a computer operations person running Unix systems at Adaptec in Milpitas that started on his journey to that position at age 14 with an AK47 in his hands as he left his home in Phnom Penh, Cambodia several years before to walk through the jungle towards Thailand. I know he is an advocate of progress.