Shanghai II

Shanghai’d

I was reading in the local paper yesterday something I should have known: China’s economic renaissance began 30 years ago when Deng Xiao-ping “opened” China to economic development. The changes in lifestyle have been enormous, and, as I’ve said, every time I come back I marvel how much change has occurred, even in the year or two since my last visit.

Probably no city has changed more than Shanghai. We’re here as long as anywhere on the trip, but “here” is as modern as anywhere in the world. As the former prime minister of Singapore pointed out, when Hong Kongers noted the rivalry between the two city-states, “I’d worry about Shanghai, not Singapore.” Like probably every city I’ve been to, it’s a melange of colors, a far cry from the 1990 visit, when the colors were dominated by gray, olive, and blue–the colors of the “Mao jacket.” And with its assortment of high rise after high rise, and some impressive architecture, including one building that looks like the yoga position, “mountain,” more “modern.” The Shanghai leaders who went to Beijing after 1990 have reversed the disdain and ignorance (literally) of Shanghai which caused the Maoists to let it alone.

Here’re some quick vignettes about business and how “socialist (no one wants to call themselves capitalist) with Chinese characteristics” this place has become:

First, we’re staying in a hotel that’s not on the Web. Partly that’s because it’s pretty far from the places foreigners frequent (my GPS says 15 miles!). In part, though, it’s because the Chen Yuen is a former guest house run by the People’s Liberation Army. I’ve seen the figures on the percentage of business that the PLA ran (at one time, I recall it was 30% or so). Our guide told us it’s now a tourist hotel because the Army is under orders to “turn a profit” on its businesses, one of the consequences of the economic opening 30 years ago, and the joining of the World Trade Organization in 2001. By the way, it’s a reasonably nice hotel with big rooms, some amenities including ESPN Asia (ever watch a cricket match?), and not many people who speak English. It does have free Internet, so I’ve been able to borrow Dr. Park’s computer overnight, and when I get up early, continue the blog.

Second, our business visit was to Mizuno, a wholly-Japanese owned company that makes sporting goods. Some of you who play baseball or softball might recognize them from the quality of their gloves. We (IWU) recognize them because of the quality of their management–I think it’s the VP Finance in Osaka, the home of Mizuno, who graduated IWU, and his son, who graduated two years ago.

The factory employs about 1,500, with an average salary of $200 a month. It sounds like they also pay some benefits. The plant managers were most proud of their low turnover in what looks like a pretty repetitious job. Although the plant is highly automated (and one might have suspected, very clean!), automated means someone puts a baseball in a machine and machine stitches it. And people (mostly women–the plant has 80% women) then hand stitch the balls, or the mitts, or hand glue the golf club heads to the shaft (“come and get shafted,” I quipped). Bear in mind one important fact, which I just read about in the Far Eastern Economic Review (but not in the Pantagraph, or anywhere else in the U.S.): to protect workers’ rights, the Chinese government has raised the minimum wage–to the point where factories in the Southern Province of Guangdong have closed and/or moved to Viet Nam, Indonesia, and Thailand. It may be a development worth watching in terms of China as the manufacturer to the world.

I think I mentioned that 1,000 cars a day join the traffic jam in Beijing. Shanghai boast that its traffic jams are worse (and they certainly were 15 years ago, hands down!) but today those jams are on expressways, not streets in the old French concession meant for Model T Fords or horses. There’s also (and I’ve only seen this in Japan), occasional maps that indicate where the traffic jams are (in red), where traffic jams are slow (in yellow), or where you can weave in and out of traffic trying to see how close you can come to being annihilated (I don’t think anyone ever fails the driver’s exam, which costs $500—2-l/2 months wages for the Mizuno factory workers). I even saw a drive-through in McDonald’s, though there are some interesting stories on how the Chinese don’t know how to use them–driving through, ordering, and going inside to eat, for example.

Finally, I’ve been to two “marts.” One is Wal-Mart, the other a local variety. The Wal-Mart in Xi’an stopped me from taking pictures (fortunately, not until after I snapped a few for my distribution class). I liked the terracotta warrior. We were able to visit only the grocery store at Wal-Mart, but that was interesting because I think food is very cultural (good thing we didn’t have any of the squeamish with us; it was early on one of my walks, and I went with Dr. Park). Besides live, they had chicken feet and cooked dumplings and lots of other things that you don’t find in regular grocery store in the states. It was nice in those two marts to see what Chinese buy, instead of being taken to the massive “outlet stores” that sell essentially the same knockoffs and are frequented by the same foreigners you see at all the sights. Don’t buy the look-alike memory cards, Dr. Park and I learned. Mine was good for ten shots.

As for Shanghai, I wrote David Hoyt three years ago that he’d never been here, but in some ways I’d never been here either–that’s the difference that a year or two makes. It’s been the most commercial city in China since it wrested from the Chinese as a foreign settlement in the 1840s. In the International Settlement (the British and American areas combined, and the small foreign population essentially ruled the area until World War II), and the French concession (the French consul general ruled here), industry grew, so much that after 1949, many Shanghainese fled to Taiwan or Hong Kong, and help make those two Chinese areas bastions of industry. The city itself was suspect during the craziness of the later Mao years because it had so many capitalist roaders (as they were called during the cultural revolution, and frequently beaten to death–see Life and Death in Shanghai for an interesting memoir); it is one of the great ironies here (and there are many) that you can buy dolls with dunce caps ala Cultural Revolution period!

Murals inside the HKSB

Some of the old is still here–and again, it’s one of the ironies–and even improved. Yesterday, I got us taken to the Bund, the area most foreigners visit, and the lucky ones stay near. It’s the waterfront area which, during the colonial days, had the impressive architecture that marked the permanence with which foreigners thought they would stay here. If you’ve seen “Empire of the Sun,” you’ve seen the facades which are still present. Most of the buildings on puxi, the western bank of the Whangpu River, were built before 1930. The Chinese have erected historical markers, officially making these buildings part of their “heritage.” My favorite, the Peace Hotel (built in the 1920s by opium magnate Sassoon, and Indo-Persian) was unfortunately closed, but as I recalled, the former Hong Kong and Shanghai Bank Building had been renovated (when the British were driven out, the Bank housed the municipal government, which subsequently built a palace near the Shanghai museum–at the site of the former racetrack!). During the renovation, they discovered the murals on the dome had been painted over; in a country which can afford painstaking labor, the Chinese got the paint off, and revealed the elegance that only the old world and old times could afford. I managed to snap a picture of “London” before the guard told me no pictures. I hadn’t been there before, and of course our guide had never been there. It’s fun being a guide (the guides tell me, with some admiration, that I’m really Chinese.)

The old China is here in other ways, too. Shanghai being an international settlement before 1941 meant anyone could get into the city. The communist party started here, and various Asian communists (including someone you know as Ho chi minh–which wasn’t his real name) spent time here. So did various nationals–sort of like in 19th century London (Karl Marx hung out in the British Library). One national group that found a haven here were the Koreans who declared independence from Japan in 1919–a fateful year in Asian history–including the first president of Korea (after 1945, and an American favorite, Syngman Rhee). They didn’t get it until the end of WWII. There’s a museum in the old French concession in the house where the conspirators met and lived, seeking (as did the Chinese) to influence the decisions the Allies made at Versailles (with even less success than the Chinese, who eventually got the Japanese out of Shantung). Dr. Park, who is Korean, and I cut our visit short at the museum and took a cab to the building, where everything was in Korean, so I was glad I had my own personal translator. He was really moved, and it was moving to be with him–explore your own heritage and you’ll see what I mean.

For lunch yesterday we were taken to Nanking Road, the major shopping area, and left on our own. The students headed for the McDonald’s–food is very cultural, and the tourist food tends to be fairly repetitious. They were glad to have the chance to eat “real” food. We sit at big tables with a lazy susan, and I realized last night that the meat goes first, and sometimes exclusively, which leaves the vegetables and the more exotic dishes for me and Dr. Park. Anyway, Nanking road is “Michigan Avenue” (one of the billboards here featured Chicago, and for all the world, it could have been Shanghai). Four of us, looking for “Chinese food” cut through an alleyway, with Chinese eating outside, having dumplings and indoor seating in mind. All of a sudden we were in the local China–two stories high, bedspreads and underwear drying in the sun, etc. We found a restaurant that met our low standards, and found no one who spoke English, no one who looked like he was from out of town, no English menu, and local prices. I asked for jiaozi and baozi, and hoped for the best. And it was. So even in the most cosmopolitan area in the most cosmopolitan town in China, it’s not all Michigan Avenue and “best quality” look-alikes.

We also got to the Yu Garden, a tourist spot in the old Chinese city at least for a hundred years (and I have the postcards in my collection to prove it). Now surrounded by the “City God mall,” the Garden was an estate of a Ming dynasty official (built for his parents–recommended as a gift from the class to their teachers), who had both money and taste. It had its own opera house, rocks brought in with wondrous shapes from Tai Lake, mahogany furniture (that frankly looked uncomfortable, but we weren’t allowed to sit in it anyway), and the ponds and hills that combined make up the word for scenery in Chinese. Even with the crowds, and even surrounded by 15 million Shanghainese, it provides the serenity that the rich could afford.

Bear in mind, as I think I’ve said millions of times, quoting Deng Xiao ping, “To be rich is glorious.” As true in the Ming Dynasty as today. In other words, study hard.

Good morning to me, good evening to you. Two more days here–thence to Xiamen.

Hello from Shanghai

the tile dropped

 

The minaret that is Chinese: come and be transformed

Napoleon once said, “the world will tremble when China awakes,” but I don’t think he had in mind what we experienced. As I mentioned, we were in Xi’an, about 500 miles from the epicenter, when the quake hit. It was about 2:30 in the afternoon, and we were in the Great Mosque of Xi’an when all of a sudden everything started to sway. We got away from any buildings (the Mosque area has lots of open areas) and watched while the water in the huge cauldrons (fire barrels) splashed around. When it stopped, we found that one of the tiles had fallen from the roof and crashed, and somewhat shaken, literally and figuratively, we wound our way back to the bus. We were on our way out of town to the airport, and as we drove through the city, we could see people were not in buildings; the local McDonalds told us that it had not been given permission to go back inside. And it stayed that way for at least an hour. The news here has been filled with information about the damage, and China’s response (contrast the government’s acceptance of aid, fast moving sending of the army, etc. with the response of the junta in Myanmar, and I think you’ll understand how far China has come in becoming a responsible member of the world community. In 1976, an earthquake in Tangshan resulted in 100,000 deaths in five minutes, and China responded to efforts to help the way the Burmese generals did). It was an unsettling minute, and we had a lot of inquiries from worried parents and a worried University.

Our ability to communicate in this flat world has certainly changed since my early times here, when I remember asking our secretary to fax information on IWU basketball games. Today, we can hear them live on the net!

The rest of the trip so far, I’m happy to say, has been at least as exciting, and far less menacing. Jack Perkowski, in Managing the Dragon, a new book that I recommend highly, talks about two Chinas (economically and lifestyle speaking), the foreign/local, and the local. We’ve seen them both in the last few days (have we been here only a week?)

old and new in close proximity
Marker for the boundary of the International Settlement

The foreign/local are parts of the big cities: certainly Beijing and Shanghai, but even Xi’an. In fact, Shanghai is almost non-Chinese anymore, there are so many expressways, high rises, and new buildings. A case in point here in Shanghai is the museum I insisted we go to–it commemorates the first meeting of the Communist Party in China, held here in 1921. I’d gotten tour guides to take us here in the past–it’s not on the tour itinerary of most foreigners, who come to China (according to our guide) mostly to eat and shop. I remember that early trip (I got my first Mao watch there–when people asked what time it was, I said “Mao says it’s 5:21” which it is right now, “and therefore it is 5:21”). The museum is in the old French concession (more on that later, maybe), in an area which the local government has preserved as a relic of the old city, but it is now a shopping mecca with bars and coffee houses and discos–including a Starbucks (that doesn’t serve Chai!) I remember narrow streets, laundry from windows, and row after row of the two-story houses. Today, apart from the saved island, there’s high rises. As for the museum, the information is the same, the rhetoric (feudal democratic revolution, etc.) the same, but a new slick display area (including a mockup of the table where the founding fathers met, with Mao standing and speaking) glorifying the new, post-1949, China.

For Dr. Park, the highlight in Shanghai was where the Korean independence activists established a provisional government in 1919. It included Syngman Rhee, who was later president of an independent Korea.

It was similar in Beijing. Our last day there, we took a hutong tour. The hutongs were (and I suppose are) the small buildings in Beijing, a courtyard-type house with four apartments for an extended family surrounding a central area. Our group got into bicycle rickshaws and got pedaled around the streets near Beihai, a local park once reserved for the Mongol emperors. When I first came to China, there were many hutongs and no tours; today, there are few hutongs left and many tourists in them. Our guide told us the apartments sell for over $1 million despite many still lacking indoor plumbing and heating–and it gets cold in the winter in Beijing! Much of the rest of the city of 15 million is high rises.

Even Xi’an is similar in being part of the foreign/local economy. I remember writing two years ago about being on Michigan Avenue (China style), the main streets with Puma and Armati and Rolex (the real ones) etc. stores. It is still the same today.

A FRED STORE?

The local economy is frequently viewed two blocks away. When Dr. Park and I walked in front of our hotel in Xi’an, where we had a location within the city wall, and we walked down a leafy street (the trees even today are called French trees, and look like a sycamore), he was ecstatic. He said, “I feel at home here,” meaning the name brand stores and upscale folks reminded him of Seoul, which is his measure of what home (he’s a native of Seoul) should look like. We walked a block, and turned down a smaller street dominated by the local economy–some foreign brands (mostly made in China–like Coke), but local stores selling local quality at local prices, with chickens running on the street, goat carcasses for sale, and small restaurants offering the good food you don’t get in the tourist shops. I turned to him and said, “I feel at home here!”

The local economy was especially apparent on our long train ride, from Beijing to Xi’an, about 574 miles as the GPS reads, but probably much longer by overnight train–and we had the most fast (translating literally) train–about 12 hours long. Going through the countryside (mostly wheat in North China) we could see villages and farms, many of them unchanged by the world economy, or even machinery. People are in the fields all the time, not just for planting and harvesting. Nonetheless, change is happening here too. The China Daily had an article about farmers who used to have a few pigs around; when they needed money, they would put the pig on a bicycle (I’ve seen them in the city) and sell it for seed money or whatever. As a measure of the changes, the Chinese now send a child to the city to work in a factory, or work in construction, or do whatever the middle classes in the city no longer want to do!

As for tourism, I think it’s alive and well. It’s the world’s biggest business, and certainly well developed in China. Take Xi’an.

Capital of China until 907 A.D. (and starting in the 2nd century B.C.) the city welcomes about 7 million visitors a year. What you see depends in part on who you are. If you’re a Westerner, you probably spend no more than two nights. For one of them, you get taken to a high-tech Hollywood-type performance (surrounded by other foreigners) of music and dance that they say is Tang dynasty, but seems more Bill Bixby, who wrote a lot of 30s choreographed dance and song movies (I refrained from singing Hooray for Hollywood). You also get to see the buried army of the first emperor, Qin Shih-huang, who unified China around 221. It is spectacular, and did help turn this once sleepy West China city into a tourist mecca.

When I got here in 1990, the buses pulled up to the museum, you walked the gauntlet between the shopkeepers who hassled and hustled to sell you copies of the warriors and left. Last time I was here (two years ago) you got to walk a long way through a rather attractive park from the bus lot to the museum. Today, you return to your bus passing an international mall with fountains and more opportunities to shop till you drop (do you remember the former leader who opened China–done shopping was his name!)

And you get one of the ancient pagodas built in the 7th century. If you’re non-Western, especially a Buddhist, you can spend a week in the area around Xi’an and never run out of interesting ruins. For example (and I’ve never seen it), Xuan Zhong is buried here–the monk whose “Journey to the West” brought Buddhism to China. And if you are Japanese or Korean, you spend a lot of time in Xi’an because Chinese civilization spread to those countries during the Tang dynasty. The other tourist activity is a visit to the wall, a 13.8 kilometer wall, around 30 foot wide, that was built during the Ming Dynasty. It’s a great place to bike and see the city, though, as I said, over the years, much of the city has been rebuilt.

You might have read in the Chicago paper a news story making the rounds here; China announced it formed a company to build aircraft. Our guide in Xi’an told us that factories there were already making parts for Boeing. That was probably more what Napoleon had in mind than earthquakes. Talk to you soon!

Monumental

Monumental. That’s what Peking can be, and frequently is. There were at least three monuments we saw the last few days. Starting from the newest:

Bird’s Nest (what else? became a mall)

The Olympic Village and stadia. No doubt, as I mentioned, Beijing is ready to welcome the Olympics, and you’ll be seeing a lot of what I saw, and hearing what I heard this a.m. (at 4 a.m. Professor Park and I left our hotel for a cab ride in to Tiananmen Square for the flag raising; you can recognize me from the pictures–I’m the one without a cigarette, that is, if you can find me amid the 4000 people there for the 5:06 flag raising and the national anthem, QiLai, which means “Arise‚” or, at 5 a.m., “awake!”) The Olympics dominate almost everything–the vendors everywhere (I think the Beijing city government owns the copyright, so there’s little intellectual property theft), the only English language TV station (the torch was up on Mt. Everest today, and there’s a special postal cancel at 20,000 feet! I’m not going up there to get it!), and the billboards. As I viewed the stadium from the bus (which was crawling on the expressway near it), I thought–another monumental project with one million people working on it.

Just like the other two monuments we visited the last two days. One was the Forbidden city, home of the Ming and Qing Emperors since the late 15th century, when the 3rd Ming emperor moved his capital north (so he could better control the barbarians, as I recall). No matter how often I’ve been here, I’m still in awe of the 9,999 rooms that it has, only a small portion of which are visible to the public. The last emperor lived here in 1908, was dethroned in 1911, but lived in parts of the city until 1924, when he was evicted and went to live in the Japanese concession in Tientsin, then became the first and last emperor of Manchukuo in the 1930s, then was a gardener after spending some time as a guest of the PRC in jail. Anyway, like so much around here, it’s brushed up, the Starbucks evicted, bolstered by fresh paint and huge crowds. There were probably more people in the city yesterday than were in it during most of the entire reigns of the emperors. It’s laid out north to south, with the private quarters toward the north. The best part of the visit for me has always been the trek up Coal Hill, which overlooks the Forbidden City. The 1 million people who built it, built a moat and piled the dirt at the north end for an imperial park. North of Coal Hill there’s an interesting place, too–it’s the Normal University, but in 1919 was the site of the origins of the May 4th movement, a student led protest against the allies’ conceding of the Shantung peninsula to Japan as one of the fruits of the First World War. The uproar led, among other things, to the origination of the Chinese Communist Party. Ironically, when the communists came to power, one of the first things they did was to move the students to the former Christian college (Yenching University) on the outskirts of town.

Ming Tomb after pillaging

The final monument was the Great Wall, another treat, no matter how many times you’ve seen it. It boggles the imagination to think that the first emperor (Qin, whose tomb we’ll visit tomorrow in Xian) solidified the 3,000-mile wall, which stretches from the Gulf of Chili into the Gobi desert. The part we went to is the closest to Beijing, about 40 miles away, at an elevation of 2,500 feet (my GPS sometimes comes in handy). We took a cable car with the other “balloons‚” (it was raining and people bought colorful ponchos) and walked for about two hours. The wall, incidentally, can’t be seen from the moon (so they say) and never kept anyone out, but probably kept the Chinese in. I liked it better in January, when I did not have to share it with crowds (they say when you’re one in a million, in China there are 1,500 others just like you)!

A word on our one business visit. We went to Caterpillar Beijing, which was neat because they had heard of Illinois Wesleyan. We had an American expat, who has spent time at Cat Europe as well, talk about an hour on the history of Cat in China. It’s been here since the late 1970s, and is still trying to establish a presence. Although Cat for the first time earned more overseas than in the United States, Cat’s sales here are only about $1 billion. Sounds like a lot, and I wish I had it, but it’s only about the same as the amount Cat earns on licensing (it gets money for letting people sell Caterpillar shoes!) Nonetheless, the company has moved its Asia Pacific headquarters to Beijing (from Tokyo) and has put China into its strategic plan as a critical factor in the company’s success. It’s a premium brand though, in a largely price market, so Cat has done some unusual things here: developed independent financing, started rental stores, and is manufacturing world-class quality equipment in China. Wanna buy a wheel loader anyone? People here probably do. China is like I-55–under construction.

We have a long day today of sightseeing (a tour of the hutongs, the older neighborhoods, on bicycle), then the overnight train to Xi’an, nearly 600 miles away (I’ll check my GPS) and I think 10 or 11 hours on a sleeper. That was the capital of China for a thousand years, most recently a thousand years ago! Now that’s a lot of history!

Have a great weekend.

Finally

Time flies–especially when you are flying West (to go East). If you fly far enough, you lose a day! That’s what happened to us. We left at 1:00 a.m. on Tuesday, and the next thing I knew (after about 18 hours in the air and 4 hours in Seoul) we were in Beijing–and it was 9 a.m. on Wednesday. At least that’s what they told us (sorry, I’m typing much faster than the machine can handle–at 1 yuan a minute I need to).

Beijing is getting ready for the Olympics, and perhaps the best example I can give you of the face lifting (and of the changes from when I first came in 1990) is the airport. When I came in 90, I still remember the two lane road. You can still see it from the 8 lane expressway! We got stuck behind a horse cart. And the terminal was probably vintage 1940. It was so old they said it was when I was your age. Today, they’ve opened a new terminal that is 3 miles long! And of course, the newest in the world. That seems appropriate given that Beijing is still constructing high rise after high rise, so that when the 3 million people descend on this city for the Olympics (and get stuck in the traffic that even without them is swelled by the addition of one thousand new cars each day!), and they’re stuck in traffic, like we are, they’ll be impressed by the newness of China. I think I read in business week that Chinese architects, buoyed by their design work for the Olympic facilities (which we’ll see later this weekend) are aiming for contracts and building around the world. It’s part of the the edifice complex that’s hit all the Asian countries, all of whom want to be able to say “highest, tallest, biggest, or newest” and all can!

We got in at 9 and have been on the run (or stuck in traffic) ever since. Wednesday was devoted to three of my favorite temples–the Temple of Heaven, the (Tibetan) Lama Temple, and the Confucian temple, all in central Beijing (about an hour from where we’re staying; I never had a sense of how Beijing sprawls until this trip. We’re far out, and yet hemmed in!). The Temple of Heaven is where the emperor regulated the harvest; if he failed, he might lose the mandate of heaven, or the right to rule, and in an agricultural economy (remind me to say something about food prices today, even here) good harvests are important–and the last time I was here, the main harvest hall was being renovated. So, it was exciting to be back and see it without nets and bamboo and falling paint, in splendor that the emperors saw. If only we could have sacrificed a bullock. And there were probably almost as many people in the mile long facility and park as there were in all of the Qing Dynasty period. The Lama temple gets f ewer visitors, and like many of the historic places in Beijing, has a great deal of serenity; you’d never know you were in a city of 15 million people and 80 million cars. The temple, like many of the existing historic buildings, owes a lot to the Chen lung emperor, who ruled China in the late 17th century, and was the longest lived monarch in Chinese imperial history. He had many wives and even more girlfriends, many of whom were minorities. And as a Manchu (non Chinese), he had a tendency to support the various forms of Buddhism besides the main one. Tibetan Buddhism was one of his favorites, so he gave a former palace to the Tibetans whom he summoned to Beijing (partly as hostages, I think, to keep the peace)–and today it’s an active Tibetan monastery, which the combination of animism and Buddhism that makes the Tibetan Buddhist statues so frightening and wondrous. The next door Confucian temple is one of my favorites, because it memorializes scholars who passed the Confucian exams and became the ruling class of China–for centuries until 1908, students vied for good government jobs by memorizing the Chinese classics. The best in each province got to Beijing, and the best of the best wound up getting their Jin Shi degrees and jobs that would earn them money and power. And their names on stone steles.

If you do well, maybe your names will be up here.

Today, the exams (not the topics) are similar, and people get to go to the Beijing University for a route to wealth and power. We like to think of Beida (as it’s abbreviated) as the IWU of China.

We’re off to the Great Wall today, and I better run or I’ll have to miss the bus and run to the wall–and that’s about 50 miles!

Will be back online again, but I hope you all have a wonderful Mother’s Day!

Good-day to me, good night to you!

Month of May

As most of you know, I’m taking 22 students to China and Korea, beginning tonight. We leave Chicago at 1 a.m. for Seoul, then on to Beijing. When we’re in China, we’re visiting Xian, Shanghai, and Xiamen, then to Hong Kong and Macau. We fly to Seoul for a week in Korea, including a night at a Buddhist monastery, which might be a lot like a “cabin campout.”

You’ll be getting e-mails and snail mails for a snapshot picture of what I think is happening, and what’s changing.

I will follow with great interest the activities of Troop 19. You’ll be in great hands with the parents who’ve given us such great support; it says a lot about them that I can leave, and the troop functions well.

I’ll be back June 4. After the trip with students is over, I’m headed to Tsingtao for a visit (and a marketing look at the Tsingtao Brewery, founded in 1903 by Germans–who then occupied Tsingtao), and then for a few days into southwestern China, the province of Yunnan, for a look at some of the minority peoples in the predominantly (over 90%) Han People’s Republic of China.

I’ll miss you, but I hope to continue to educate, even from a distance.

Have a great month, and study; remember Thomas Friedman’s World is Flat comment–children in Asia are hungry for your jobs!

Good grades and good Scouting!

January 12, 2008

We’ve spent the last two days in three activities that pretty well summarize what I’m bringing back from India.

The first is its past. As in any country with 10,000 years of history (that’s what they tell us), the oracles from the past for predicting the future point in any direction you want them to. We went to a show at the Red Fort here, which not only described the history (in a winners tell their version way), but took us past the Jama Masjid, the Friday Mosque that reminds one India is the second biggest Muslim country in the world, and the “unity amid diversity” must take account of some of the prejudices born in that past. The last episode they described was the incarceration of Indian soldiers in the fort who had fought in World War II–with Subhas Bose, in the Indian National Army the Japanese formed to fight the British in India. The three soldiers were tried by a British court for treason, convicted, and after Independence the verdict was set aside.

The 100 mile 51/2 hour ride to Agra, one of the capitals of the Mughal empire underscored the splendor that was India’s around the 17th century when it was the richest country in the world, or at least had some of the richest people in the world–it’s rulers. Shah Jahan, who built the Red Fort in Dehli, and moved the capitol there, built the Taj Mahal to honor, as a tomb, the main wife he loved. She bore him 14 children in 16 years and died during childbirth. I’ve seen it twice before, and considered myself lucky to have seen it once. And it is just as stunning as it was to me the third time, one of those visuals that not even digital photography can capture. At least this time I did not have to shoot 3 rolls of film. We also saw the Red Fort in Agra, begun by the earlier Moghuls, even pre Moghuls, and the place where Shah Jahan was imprisoned by his son, who decided he wanted to be the emperor and overthrew his father, killed his older brothers, who had a legitimate claim, and locked his dad up. And he turned out to be rather paranoid, beginning the descent of India that led to its sacking by the Persians and the conquest by the British. After the mutiny/war of independence (choose one; they’re both right depending on your audience), British troops were garrisoned in the Red Fort. And their barracks are occupied today by Indian troops.

The tomb of Akbar in Agra is also stunning. Akbar’s desire for social harmony (reversed by Shah Jahan’s son, Aurangzeb, and a troublesome question in India today) led him to issue edicts enforcing ethnic harmony. It helped that his wives were Sikhs, Parsis, Jains, etc. Love builds buildings, but also countries.

The ride to the Taj within Agra showed something about the environment: the biggest threat to its existence is not the crowds, which Saturday reached forbidden city (in China) proportions, but the pollution that is eating the marble. Hence, our bus stopped short of the area, and electric vans took us closer to the swarm of hawkers who wanted to sell us postcards, books, and bangles.

The five and a half hour ride showed something about infrastructure, too. As my GPS said, the distance was only about 100 miles. Why so long? Traffic was one thing. It took an hour to get from the Taj area to the outskirts of Agra, which has fewer than 2 million people. Part of the problem was narrow streets, part too many cars, and part the plethora of vehicles on it. Even though a major chunk, perhaps 60 of the miles, were on superhighway, it’s not a superhighway like we have. More like 51 south of Bloomington, where it goes right through the city of Wapella. Put horses, camels, motorcycles on the edges, and sometimes on the main lanes, and women with dried dung platters on their head (fuel!) and you get a picture of the wonderful chaos that makes patience a virtue in the east. Plus, the super highway does not extend to the city where we’re at, so we took back roads, and the back roads are semi-finished, sometimes busy, and usually bumpy. The wonderful weather we’ve had, cool and with a rainstorm one morning, cut down on the dust.

Second, our site visit was an indication of all you hear that is positive about the Indian economy. We went to Genpact, which GE started and spun off ten years ago. As we approached the building in our suburb, Gurgaon, about an hour south of downtown Delhi, it looked to me like many places in China–huge skyscrapers with more under construction, a wide street with some homeless or rather floating population living in tents for the construction–and a Chinese restaurant to complete the illusion. When we got inside, we got treated to the best presentation we had, in at least two ways. The company is global–operating in at least 9 countries, with 33000 employees-and meets and sets global standards. It started doing financial accounting for GE and has moved up the value chain because Indians are numerous, well educated (300000 students vie each year for the 2000 spots in the Indian Technical Institutes (it’s IIT; the winner last year came from a village without electricity, which shows how determined Indians are to succeed), and hard working, especially in areas Americans have shucked, like math. They told us turnover in their company, which as I said does Business Processing (maybe for State Farm, not all their clients will let them list the names publicly) was 30 percent, rather than the industry’s 70 percent because they benchmark great practices elsewhere and adopt them, including the 6 sigma of parent GE (I had a feeling I was meeting Jack Welch’s offspring, Welch being the GE Chairman at the time Genpact was conceived and born). One other thing about the company that was noteworthy; being in customer service, they demonstrated it. They were alone in asking us what we wanted to know, and while they had a canned presentation, they answered all our questions. India being 11 1/2 hours different from home made it possible for them to work all night (our night) and have information back to the us for the business day, a real competitive advantage in a wireless world.

Finally, Mr. Shirmali, the director of the institute, invited us to his house. He lives in a gated community about a mile from the campus in Gurgaon. The paper had a notice about the shortages of electricity which regularly goes off. At the Institute there’s a 20-second delay before our generator kicks in. In the suburb, energy is directed to the IT companies, while manufacturers complain that they have 10 hour shortages at times. And this is a heavy industry area!

Mr. S. wanted to show us his family. His house has, he said, 36 rooms so that when his extended family comes from Rajasthan or where there are now (he has 8 brothers and 100 family members regularly converge). He said he’s a Brahmin, the upper caste, and while caste is officially off the books, we read in the paper about a Dalit (untouchable) being beaten for trying to get into a rural Hindu temple this week. He introduced his wife of 30 some years, who was “arranged” for him as a bride when he was 20 and she was 16. Their parents were best friends and agreed if one had a son and the other a daughter they would get married. While that was then, he described the marriages of his son and daughter, which were very similar (my brother knew her father’s sister, we met with the family and agreed to introduce the children, etc). The persistence of the past is all around a country of 10,000-year history!

I wouldn’t presume to predict the future here; although I can’t muster the bluster of most of our optimistic professors, who rightly point to progress (cutting poverty–living $1 a day–in half in 15 years), the challenges are daunting. I’ve learned from China to temper my western cynicism, though, and suggest you look for information about the current meetings in Beijing between Prime Minister Singh of India and Hu Jin tao of China. If they get beyond geography and politics, they have 40 percent of the world’s population.

Any way, thanks for letting me share my thoughts and experiences with you. See you after a very long day and a very long flight for me.

And remember, what ever I have said about India, the opposite is also true.

Good morning.

January 10, 2008

For those of you who think it’s a small world, here’s my contribution to the proof. I was talking to one of the faculty here and she told me she was at Lynchburg College in the late 1980s. I say it’s a small world because in 1987, before I got on full time at IWU, I looked for jobs. One of them was at Lynchburg College, which offered me a job. She and I could have been colleagues! (She teaches accounting at the Citadel in Charleston today, where she wears a colonel’s uniform to class; she’s originally from Virginia, and I know would be much happier in the rural south—Lynchburg is in the Appalachian mountains) than I would ever be, but it was interesting meeting someone I might have met 21 years ago.

If you need more evidence, let me give you an even greater coincidence: We had a dinner Monday night (our only formal activity), where we were joined by a visiting group of faculty (India is full of visiting business students and faculty; one of our members is with the University of Wisconsin, which had a group of students here; today I understand U Maryland MBAS will be here; we ran into a Kansas U group Sunday–add India to your itinerary if you’re’ interested in business, and probably more certainly in the future…). Anyway, the visitors were from the University of Bentley (so the sign read; I think they meant Bentley College, which is a Massachusetts business-only college). One of their faculty looked at me and said, “You look familiar. Were you at ISU? I taught there.” Turns out, 25 years ago, when I went back to school for an MBA, he was my marketing teacher, and his wife taught me management. After the dinner, they both came over and we mused on the possibility of reuniting 8000 miles and 25 years later!

One quick vignette on where the Indian economy may be moving. The marketing faculty we’ve met have noted the relative absence of Indian brands; certainly the mall–aside from Sari clothing shops and many spiritual (read yoga) shops–could be a mall anywhere in the states–McDonald’s, albeit without beef, Reebok, Hilfinger, and a variety of European and some Australian brands–Billabong. Foreign still has a certain cachet, and the Indian government has lowered tariffs from 150 percent to 12-15 percent in most categories. Our site visit two days ago was to Hero Honda, a joint venture between a bicycle maker and a motorcycle division that’s become the largest two-three wheeler manufacturer in India (Honda doesn’t let them export to more than two or three countries, which I found interesting, but does sell Honda’s made elsewhere in India!). The Hero Honda plant, one of three, has the leading market share in the country and has never had an engine–made here–fail, which is pretty remarkable for any manufacturing firm, the goal of which is zero defects but seldom met. The plant manager told us that as Indians become more wealthy, they’re buying fewer cycles and more cars, and the overall market is declining. Hero’s response is to look at the rural market where there could be growth it could find a way to finance the sales (and there are rising expectations in the countryside; TV is ubiquitous).

This is also Auto week, so the papers are full of Tata, Maruti, M&M, Indian automakers, and even Ford, I think the only American company here — building a small car for #1000 or $2000! Just what India needs — more traffic, though locals tell us proudly that the two and three hour rides are down to 1 or two, and infrastructure construction is one of the factors contributing to the “smoky haze” (that’s how they describe the dust that settles on everything here; some of it comes, I think, from charcoal heaters) which has delayed some flights. The Prime Minister, in fact, is flying to China and his plane is leaving 12 hours early to make sure he can get away. Hope we don’t get delayed!

Yesterday, they took us to a huge local market. Most of the clothes were around 150 rupees, which is under $4. It stretched as far as the eye could see, and was really busy. India has many shops like the ones we saw; in fact, the marketing professor I had lunch with told me that India has 15 million shops, more than any other country. I think I read the big stores–the Wal-Marts and Carrefours have not yet arrived, in part because the Indian government has been protecting these mostly mom-pop stores that employ so many Indians. And employment is a major problem. One thing that really struck me was that Hero Honda hires 5,000 employees. 1,000 are full time, and 4,000 are contract labor, who can be fired if demand drops and are not subject to what seem to be pretty strict labor laws.

Have to run, but you have a great day, and a wonderful weekend. We may play cricket this morning (I think I told you this is their football/basketball/baseball sport; who said they got little from the British Empire?), but we’re definitely going to Agra and the Taj Mahal tomorrow, leaving at 5 a.m.

January 8, 2008

January 8, 2008

Alston asked about the Indian response to the American presidential election, and while I can’t answer that question, I thought I’d use his question to share some other things about India, and our last two days here. Bear in mind the accuracy of one of our teacher’s comments, “Whatever is true about India, the opposite is also true.”

We’re getting the Hindustan Times, one of around 500 English-language newspapers (there are 5000 papers printed in Hindi, and about 60,000 –that’s right– newspapers registered in India). That so few are printed in two of the main languages indicates that there are many other languages–14 official ones, and hundreds of dialects. The number of newspapers increased by 2,000 last year, unlike the US, where papers are in trouble, which seems to be less true here. Part of the reason is that this land of contrasts still has only a veneer of internet connectivity—and about 40% illiteracy!

The news we are getting internationally is not much better than what we get at the Pantagraph–but it’s from Reuters, the British news agency. Right now, the headline story is about the cricket match in Australia, and how the Aussies have insulted the Indian team with racial slurs and whether the team should come back home (the press is as sensational as ours, though cricket is the main sport here; it’s a game someone described as going on forever–you can come back three days later and nothing has happened that you can see). The combination of the two impressions–Reuters and cricket–suggests something that really hit me the first time I was here: India is a former British colony. When I was here in the 1990s, I arrived January 1, ran to the papers and found the football scores: Royal Madrid 1, Arsenal 0. Nobody plays basketball that I can see, and the factory team sports (we were at an auto supplier yesterday, that could have been anywhere in the world) were volleyball, cricket, and what we call (alone in this world) soccer. I remember an Indian-born student I had several years ago, whose family would travel anywhere in North America to see the cricket team.

The motto here is unity amid diversity, and the diversity is readily apparent. As I said, India is 60% literate; it’s 82% Hindu; 70% rural; 25% impoverished, with a rich upper class that can patronize all the upper class stores we saw at a mall yesterday.

Our visit to a village was a revelation; I think agriculture in all developing countries is the main challenge. As I wrote Sondra, it ain’t Iowa. Getting there was one of the major challenges in India–transportation. While there’s an extensive rail system (I think 1 in 15 Indians is working on the railroad), the roads are an adventure. The road we were on, national Highway 8 to Jaipur, was two lane, but sometimes had four lanes of traffic–three headed at you, as well as the usual assortment of “vehicles,” two four-legged and multi-tyred (as they spell it in the British sphere). Apart from being Muslim, the village was probably typical of north India–it grows wheat this time of year (and mustard), and a second crop of sorghum in the summer. This village (we got there because the college has a working relationship with an NGO–non-government organization that has adopted the village) has 1000 households and 8000 people, 70% under 18. The average family is nine! The teacher told us that he has 500 boys in school, and 250 girls; the head of a woman’s handicraft group (which raises money for schooling by making and selling crafts) said that most farmers don’t see any reason to send their daughters to school, though that is changing. Still if 5600 are under 18, and only 750 are in school; that leaves many young people not in school. As I said earlier, agriculture is a challenge in developing countries because it’s not very efficient. Seventy percent of the population contributes less than 20% of the GNP, and while India has become self-sufficient in food, the country relies heavily on the monsoons (which barely touch north India) for irrigation. And if it were more efficient on the farms, and people moved to the cities, what would they do?

The highlight yesterday (beside the usual great assortment of food, yoga, and lectures) was a ride home on a pedicab–an open cart pedaled by a young man. The cost was less than a dollar; the ride, a hair –raising experience.

See you soon, and congratulations on having a free election! The Indian intellectuals are really proud of being the world’s largest democracy, one of the few positive things they credit the British raj for establishing.

January 6, 2008

We’re 7800 miles apart–yes, I did bring my GPS, but so did another faculty member–and about to begin getting the education we came here to get, at least the formal part. Our week will consist of morning lectures on a variety of topics, followed by site visits in the afternoon, for the next five days. Happily for me, we begin our day with a voluntary yoga. It’s nice to have a new guru (teacher), who told us yesterday something I’ve known but not articulated–that yoga is music for the body.

We spent yesterday visiting three sites, and given the traffic in New and Old Delhi , I’m glad I don’t drive here. The city has over 13 million people and over 33 million registered vehicles. The registered vehicles are 2, 3, and 4 wheels (and some with more), but don’t include all the “vehicles” on the street–and some of those are animals. Our neighborhood, for example, has a lot of what Harry Carey would have called Holy Cows, because, as you know, they are holy in a Hindu country. Add to everything else the facts that it was a Sunday, there was a parade downtown that closed several streets, that the British used rotaries, and that Delhi is building a subway and has most major arteries torn up, and you’ll understand why there was a crew from TV filming one of the traffic jams we got stuck in.

I learned that Delhi has been destroyed six times in its history, and rebuilt 6; that the British built what they called Lutyens city when; they moved the capital from Calcutta to this area in 1911 (Lutyens city became New Delhi); that the new emperors moved into the old emperor’s buildings (the British barracks became the Indian barracks; the governor’s quarters, the President’s, etc); that the British were the last destroyers (in 1857, when Britain finally replaced the East India Company with a political governance that cobbled together British and princely states–the latter not becoming part of India until the creation of an independent State); that when the British suppressed the Mutiny (British word) or the first war against the British (Indian description)–at least one of the Moghul tombs was ravaged because the last Moghul emperor hid there; that the Moghuls came from Mongolia, and were descendants of Genghis Khan; and that I’ll never remember the names of more than a handful of the over 3,000 Hindu gods.

Gotta get ready for class–and for yoga. Have a great day, Scouts, and a thoughtful meeting and election Monday. Remember, I’m in what likes to be billed as the world’s largest democracy. That is one of the saving graces of India.

Alston asked about the Indian response to the American presidential election, and while I can’t answer that question, I thought I’d use his question to share some other things about India, and our last two days here. Bear in mind the accuracy of one of our teacher’s comments, “Whatever is true about India, the opposite is also true.”

We’re getting the Hindustan Times, one of around 500 English language newspapers (there are 5000 papers printed in Hindi, and about 60000 (that’s right) newspapers registered in India. That so few are printed in two of the main languages indicates that there are many other languages–14 official ones, and hundreds of dialects. The number of newspapers increased by 2000 last year; unlike the U.S., where papers are in trouble, that seems to be less true here. Part of the reason is that this land of contrasts still has only a veneer of internet connectivity—and about 40 percent illiteracy!

The news we are getting internationally is not much better than what we get at the Pantagraph–but it’s from Reuters, the British news agency. Right now, the headline story is about the cricket match in Australia, and how the Aussies have insulted the Indian team with racial slurs and whether the team should come back home (the press is as sensational as ours, though  cricket is the main sport here; it’s a game someone described as going on forever–you can come back three days later and nothing has happened that you can see). The combination of the two impressions–Reuters and cricket–suggests something that really hit me the first time I was here: India is a former British colony. When I was here in the 1990s, I arrived January 1, ran to the papers and found the football scores: Royal Madrid 1, Arsenal 0. Nobody plays basketball that I can see, and the factory team sports (we were at an auto supplier yesterday, that could have been anywhere in the world) were volleyball, cricket, and what we call (alone in the world) soccer. I remember an Indian-American student I had several years ago, whose family would travel anywhere in North America to see the cricket team.

The motto here is unity amid diversity, and the diversity is really apparent. As I said, India is 60 percent literate; it’s 82 percent Hindu; 70 percent rural; 25 percent impoverished, with a rich upper class that can patronize all the upper class stores we saw at a mall yesterday.

Our visit to a village was an eye opener; I think agriculture in all developing countries is the main challenge. As I wrote Sondra, it ain’t Iowa. Getting there was one of the major challenges in India–transportation. While there’s an extensive rail system (I think 1 in 15 Indians is working on the railroad), the roads are an adventure. The road we were on, national Highway 8 to Jaipur, was two lane, but sometimes had four lanes of traffic–three headed at you, as well as the usual assortment of “vehicles,” two four legged and multi-tyred (as they spell it in the British sphere). Apart from being Muslim, the village was probably typical of north India–it grows wheat this time of year (and mustard), and a second crop of sorghum in the summer. This village (we got there because the college has a working relationship with an NG0–non-government organization) that has adopted the village) has 1000 households and 8000 people, 70 percent under 18. The average family is 9! The teacher told us that he has 500 boys in school, and 250 girls; the head of a woman’s handicraft group (which raises money for schooling by making and selling crafts) said that most farmers don’t see any reason to send their daughters to school, though that is changing. Still if 5600 are under 18, and only 750 are in school, that leaves a lot of young people not in school. As I said earlier, agriculture is a challenge in developing countries because it’s not very efficient. 70 percent of the population contributes less than 20 percent of the GNP, and while India has become self sufficient in food, the country relies heavily on the monsoons (which barely touch north India) for irrigation. And if it were more efficient on the farms, and people moved to the cities, what would they do?…..

The highlight yesterday (beside the usual great assortment of food, yoga, and lectures) was a ride home on a pedicab–an open cart pedaled by a young man. The cost was less than a dollar; the ride, a hair-raising experience.

See you soon, and congratulations on having a free election! The Indian intellectuals are really proud of being the world’s largest democracy, one of the few positive things they credit the British Raj for establishing.

Whatever is True About India, the Opposite is Also True

Associate Professor of Business Administration Fred Hoyt was selected to participate in a Faculty Development in International Business Program in New Delhi, India. The program, sponsored by the University of Connecticut’s Center for Business Research, provided participants with information about the Indian economic system, plus opportunities to tour businesses and visit government officials.

January 5, 2008

Believe it or not, I’m probably close to where you might reach if you started digging in Bloomington-Normal, and cut through the earth; I’m on the other side of the world (and digging the earth might be easier than sitting for 14 hours in the plane (Chicago to New Delhi), arriving here around midnight India time. We’re ll 1/2 hours different (India would be 1/2 hour different!) than central Illinois.

The last time I was here, I brought students around the world. India was our second stop, and we came from London. As I recall that May 2001 day, the temperature was 100 degrees at 3000 feet–at midnight–just before the monitor cut off. Last night (have I been here only 24 hours?), it was 45 degrees. India is, as that example shows, a land of contrast.

I’m at the Management Development Institute with about 20 other faculty, to learn about the new India. We’re staying in a hostel that is sort of like camp–fairly spartan quarters, but quite satisfactory. At least the outhouse is in the room! The Institute is one of the top four business schools in India, and we’ll have a chance to meet with people in our area, tour factories and historic sites, and eat some great Indian food in the restaurant in the dorm.

Today was a relatively easy day. I was up early, finished a book I’d brought along, and went for a walk with a University of Wisconsin professor who happened to be up early, too. He’s Indian by birth, and speaks Hindi, which was a real advantage because it’s pretty obvious I’m from out of town. After getting acquainted with our hosts and each other (there’re faculty from both coasts, and a variety of business disciplines, and one political scientist), we went on a tour of the national museum.

I can’t help coming to India and comparing it to my recollections of the past (I was here in 97, 01, and now) and to China.

Compared to the last time I was here, there seems to be a lot more construction. It’s sort of like what I remembered China was 10-15 years ago. The two lane roads in Delhi are being replaced by superhighways (I thought our bus was going really slow; but I saw the speed limit for busses was only 40 km, or about 25 miles per hour), and the housing is gradually being replaced by high rises. The contrast between rich and poor is still there–families live in shanties (I think that’s an Indian word) outside gated communities, with the middle class (probably larger in the big cities, and certainly here in the nation’s capital) shopping at the new and quite large malls. We passed one that boasted at least 1km of shopping on each floor, or roughly a half mile! The chaos in the street (the Brahmin cows are wandering about, with motorcycles, bikes, trucks, busses, and increasing numbers of new cars, jockeying for space) is much the same.

We tour tomorrow too, and I’m eager to see once again the vestiges of Mughal rule (Moslems from Afghanistan, I believe, invaded and conquered India, before the British and there was a Mughal ruler until the 1850s) in the center of the old city. Perhaps since it’s formerly a British colony (the football scores here are Royale Madrid 1, Arsenal 0, which should tell you something about football!), I should spell it centre.

More when I get a chance, but my best to you all.