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I endeavour to maintain a clutter free, simple reading environment that takes just a few minutes to read a complete story. This blog is free for all. One way you could 'repay' me if you like the story you have read is to refer others to this blog and the specific story. I would appreciate that kind of word-of-mouth (or its modern equivalent - email, link, Facebook posting) advertising, since it is the best kind. Kindly do to the extent you can without feeling uncomfortable or like a spammer.

Thanks for visiting and hope you enjoy reading!

-Kannan

Thursday, April 30, 2020

Covid-19: SAVING FACES AND ASSES



It is amusing to see Western political talking heads constantly telling us with certainty and confidence how Asians leaders want to 'save face' and move on to patronizingly supposedly make allowances for them. This is often a way for the clueless or cunning politician from the West to deflect attention and responsibility away from themselves and appear to be 'liberal' and worldly wise. This is on display today in the issue of trying to pin the blame for Covid-19 response disasters in the USA or Europe.. Even Australia is in the game. The supposedly two sides of the issue in the Western media are those that call for outright attack ('the nuke them') crowd versus the more 'peaceful reasonable approach' where supposedly the Chinese leaders are afraid to 'lose face' with their people by accepting responsibility for all the Covid-19 problems around the world and hence need to be scolded in private, delicately. Me thinks, it is more a case of the Western political leaders who have failed miserably and publicly and want to save their own a$$es and their 'face' with their electorates in future elections. It does not appear to me that the Chinese leaders need any 'face saving' with their people, who seem to have cooperated well with their government to control the spread. Quite a different situation in many Western countries!
The whole situation reminded me of an old article I wrote on this subject of the supposed obsession of Western and Eastern cultures with two different ends of the body.

https://yarnsfromalex.blogspot.com/2015/08/saving-face-or-saving-a.html

Copyright (c) Kannan Narayanamurthy 2020
All rights reserved

Thursday, April 16, 2020

The most successful Communist AND Capitalist Society - China Today


I have long held the opinion that Capitalism and Socialism are not mutually exclusive. I believe that a judicious combination of Capitalism and Socialist policies is the best system for any society. It would take care of the different types of people and the varying nature of even an individual's character under different circumstances. This is what is needed to motivate people to work, put in mental and physical effort to become productive yet take care of those vulnerable or temporarily going through tough times. These two philosophies keep the two facets of humans balanced and in check - tending to limit each other's excesses.

China today, is perhaps the most successful Communist and Capitalist society at the same time. It appears have both these aspects  complementing each other and benefiting its people as a whole. There is much for the world to learn from this - from its socialist policies to lift hundreds of millions out of poverty to creating a large class of capitalist entrepreneurs from the smallest to the largest in scale. The competition among capitalists seems to have improved the quality of the products coming out of it, the more central planning helps in achieving economies of scale. It can produce virtually all its daily necessities for its citizens and for almost the rest of the world. It can export what it has in surplus and import what it desires or needs. It is far less dependent on the rest of the world for its daily sustenance than perhaps any other country. I am sure it has not achieved perfection and there are many problems that it wrestles with. Yet, there is so much that the rest of the world can learn from it and is forced to look at critically now.

Now, every country will start to think about how to learn the best practices from different countries and make themselves better and its own citizens more prosperous and secure in themselves.

Copyright (c) Kannan Narayanamurthy 2020
All rights reserved

Wednesday, April 15, 2020

A Twelve Step Recovery Program for Post COVID-19

1. Anger at Chinese.  Calls for "boycotting ALL Chinese goods from this moment on".

2. Realization that there are not many/any alternatives available or affordable for 90% of the products we use daily from toilet paper, toothbrushes, toothpaste, cups, plates, mugs, clothes, soap, towels, shoes, phones

3. Making feeble attempts to 'boycott' some Chinese products and realizing the pain and costs that come with it. Toning down expressions of anger and hostility towards Chinese while inwardly anger grows and alternates with some measure of gratitude towards the Chinese for making all these products for us, all these years for such an affordable price. Wondering how they could manage to do it and still make a profit and supply in plenty.

4. Seriously thinking about making stuff ourselves, instead of buying from Chinese

5. Deciding to postpone "boycotting ALL Chinese goods until a future date when we are better set up with jobs and opportunities to manufacture things ourselves. Waiting for business climate to improve to get started

6. Actually deciding to start manufacturing some small number of items, while calling for "partial boycott of AS MANY Chinese goods as feasible". 

7. Sticker and other shock at realizing actually what all it takes to make a toothbrush locally. How much it would cost and how much we need to charge for it to be profitable (perhaps $20 a toothbrush of comparable quality)

8. Realizing that maybe, we need to make a 'pragmatic compromise' in quality to achieve 'a more affordable price per unit', until we can scale up volumes

9. Realizing almost every other country is trying to do the same as us, make things locally and boycott all foreign products for daily use, as much as possible. Hence our volumes can never be like the Chinese have today. Realization dawns that we cannot possibly ever match the Chinese quality and price that was available freely until recently, that we never gave a second thought to.

10. Nevertheless, go ahead with setting up our own manufacturing facilities, supporting our local businesses for most of our daily essential needs. Agreeing to pay more, work for less wages than we used to expect before. 

11. Grudgingly, at least, develop some respect for what we used to dismiss as 'cheap Chinese products' that we were so used to.. Developing some respect for the Chinese, Vietnamese, Koreans, Japanese, Thai, Malaysian manufacturers. Developing respect for their manufacturing techniques, business models and organization of supply chains and skills set.

12. Developing some pride in ourselves as we become more of the 'producers and manufacturers' not just consumers of goods. Become less wasteful in our consumption and paying a fair price for the locally produced goods that we use daily.

Copyright (c) Kannan Narayanamurthy 2020
All rights reserved

Tuesday, April 7, 2020

A Call To Arms - Post COVID-19

It is obvious the world has changed. It is not just the Coronavirus that has us worried for our immediate survival. We are seriously worried for the times to come, post COVID-19, well after the novel Coronavirus has washed over us all, retreated or we achieve a sort of equilibrium with it, just like with so many other diseases and viruses.

What seems to be fueling a lot of the worry, the anger, angst and venting in many 'advanced' countries, my own Australia included, seems to be rooted in a very powerful realization - the powerlessness, the feeling of helplessness, frustration and vulnerability when it comes to our critical dependence on other countries for about 90% of the things we use in our daily life, things we took for granted, things we got at ridiculously cheap prices for about a generation now, that we no longer have the factories, the skills or the scale of economy to produce for ourselves. 

While the immediate availability of some critical medicines, medical equipment, masks, personal protective equipment, ventilators, toilet paper, paper towel, hand sanitizers etc get all the immediate attention, almost everyone realizes that we cannot produce most of the other things that are less critical but just as important in our daily lives - toothbrushes, mobile phones, pens, drinking straws, plates, cups, small appliances, lighters, cling wrap, saucepans, the list is endless.  We realize that if our easy supply to these at very low prices is cut-off, we cannot easily make any of them in a hurry or in a crunch. It will take years to set up factories, skilled people and supply chains of all raw and processed materials to churn out a toothbrush here in Australia that will cost $20 perhaps. It cannot compete with what is available for less a dollar on the shelves, even today. A lot of us cannot afford the more expensive options for these, even if they were available!

I am constantly amazed at the value I get buying something in a $2 shop - a set of nail-clippers for 2 dollars or a pair of scissors, very good quality steel and finish, in sealed package and sold for a profit here in Australia or any advanced country. It boggles the mind for how much less the original manufacturer makes it and sells it for a profit to the middlemen along the way who export it, import it and then retail it and sell it to me, the consumer, for $2!! Twenty years ago, the quality of these simple products was not very good, but they keep getting better and better. The price has changed very little in twenty years.

Now, we ask ourselves the critical the question - Can we produce something like this nail-clipper or toothbrush in Australia for $2? Can we do it soon after this Coronovirus crisis passes? Can we do it ever? Can we produce it for say $5? How much are we willing to pay for it? How soon can we do it? How exactly do we do it? Should we attempt to do so? We need to answer these questions, however uncomfortable they may make us.

Well, on each and every one of the about a hundred products around the house that we use regularly, critical sometimes, bought cheaply and in plentiful supply from around the world today, we will need to make a considered decision - should we attempt to make it ourselves? How critical is it? If we want to establish a manufacturing base in our 'advanced' country now, should we only make some products and not others? Does it not make sense to make many products so that the scale of economy of large numbers benefits us using the common raw materials for many products? 

Now, every developed and developing country in the world today should and will ask these questions of themselves.

So, what is the way forward to overcome our present situation of over-dependence on others and the scar it has created on our psyche?

I would contend that one of the critical changes we will need to make in our 'advanced' societies is - as a permanent feature, we need a large section of our society to be motivated to manufacture the little, unglamourous products we use everyday. We will need to value a life lived in 'giving to one's country' by running profitable, capitalistic, viable, useful businesses. The countries we import a lot of stuff from have managed to do this to a great degree. The skills, expertise, knowledge of STEM and other subjects in a sound manufacturing base is one of a nation's treasures.

We will need to encourage and empower enough people to be everything from entrepreneurs to workers in highly productive factories, to do so earning modest wages and profits, to do so with a vision of larger time frame than their own working lives - taking into account the future and lives of their children, grandchildren and future generations. These producers will need to keep their expectations and greed within reasonable limits - the fear of joblessness on one hand and the motivation to do something for the future generations on the other hand can together help to achieve this end. 

We will need to motivate others to support these efficient producers of goods and services - policy makers to reduce the burden of regulation and taxes, the consumers to commit some loyalty to local manufacturing, the culture and arts to value and encourage an active capitalistic culture of local businesses. We will need to generate respect for a spirit of 'giving of oneself' to build a better society for our future generations that live within our country. "Sacrifice", except in military seems to have become a term with negative connotations. Sacrificing the desire for greater profit and settling for a smaller profit is considered unusual in our present culture.

We will need to change the mindset of our banking systems, our political leaders and policies in government in significant ways. Our current culture  unrealistically sends the message that only the 'biggest' dreams, highest technology, the most glamorous professions or products or loftiest goals are worth pursuing, encouraging most to aim for those and sending a lot of our kids ill-prepared into real life. Our current culture encourages too much selfishness  and a sense of entitlement in all of us. While our present levels of wealth-plus-debt has made life easily sustainable and comfortable (relative to many countries from where we import so much stuff), the current Corona crisis and its aftermath will, without our extra effort, provide the real fear and possibility of much lower quality of life and hard struggle. That is one of the main sources of 'motivation' for a lot of people to work hard and to succeed in making something or making something of themselves. I grew up in somewhat similar circumstances in my youth in India.

Here in Australia, we have  raised a generation or two that is used to getting things instantly, cheaply, taking things for granted, encouraged to pursue their most attractive dreams at the 'higher' levels of a fanciful pecking order and taking most of the 'lower tech', mundane products and services for granted - to be provided by others in other countries, for the cheapest prices, readily available. Now that we have been bitten by that flawed notion, it is time to make a change. It is time to learn from countries that have developed the capacity to produce the most mundane and unglamorous products we need to use everyday or those that are critical for some life-and-death situations!!

Until we reach a level of maturity of a functioning manufacturing base in Australia, we might have to accept and see some not so high quality products, that are not as cheap as we are used to, but we must persist and help improve over time, not just criticize and desert them. Loyalty and commitment to a nation in this area of self-reliance in manufacturing  of crucial items should be applauded not condemned as 'narrow thinking'. This new moment in history provides some incredible opportunities if one looks at it from this angle.

The very first step in preparing for the new future should, in my opinion, to get as many people on board to work on these new opportunities and form networks from which they support each other. I reckon universities and even other informal groups of industry, groups of those who lose their current jobs, all can provide forums to help generate new networks.

If anyone is interested in discussing this further with me, contact me at DindianPersonal@outlook.com

Copyright (c) Kannan Narayanamurthy 2020
All rights reserved