Lenny: I continue to read Joseph Schumpeter's "Capitalism, Socialism, and Democracy" and inevitably compare the JS's comments to the picture that you are drawing of modern day China. JS has analyzed the economic progress from feudalism to industrialism to capitalism,, and begins to forecast the next stage as a return to socialism. JS blames the conversion to socialism on 'intellectuals' who have been given 'voice' through the benefits and protocols of capitalism. Now in going back to your description of China, my impression was that somewhere in the 40-50-60s, communism was forced on the society of feudalistic society and that this structure softened into a form of socialism that is now being challenged by a 'ground-swell' of small business capitalism. Thus, we have a sort-of reverse process from the one that JS describes,, viz. socialism is succumbing to capitalism. Therefore, could we expect a repeat of the dynamics that the US experienced in the late 1800s, early 1900s? Or is this some unique-to-China pattern? For after all, don't they already have big business (The Red Army et al.)? What is happening to calm the normally troublesome social conflict generated by the gulf between the rich and poor? Or is it like in Hong Kong where it is tolerated because everyone believes that they can become wealthy?

Aloha -- Fred

World Cup

Sad day yesterday. The whole country is moping as China lost
to Costa Rica 0-2. A win was considered their only chance to
make the next round of 16 teams as they have to play Brazil Saturday
and Turkey next week. Both are much better teams and only the
top 2 in each group advance. USA plays Portugal today.

Shopping

Shops, shops everywhere. Sidewalks chock a block with people
from 10 am to 10 pm. Most are buying something as evidenced
by their plastic shopping bags full of goodies. Every conceivable
brand/product is available somewhere.
The main streets are lined with Department Stores. Like the
rest of the world, the first (they call it the Ground) floor
is women's cosmetics. All the major brands have their counters
and "salesladies" or "makeup specialists". I was told the prices
were much cheaper in the several identified as for foreigners
(similar to Duty Free Shops) although I believe like cosmetics
everywhere, it is still greatly overpriced. Also hard to evaluate
as the "locals" are always saying something is too expensive.
For example, they will walk a half to make a bus connection
when a taxi goes door to door twice as fast for $1.25. I guess
value is based on your living standard. They have a hard time
understanding paying a premium for time and service.
There are literally miles of shops.
All the major worldwide retailers are here. Some legitimate,
some knockoffs as evidensed by misspellings and off the wall
displays. Advertising is everywhere, some of it very clever.
Interior furnishings are similar to upscale malls in America.
There is an overabudence of sales staff because of the cheap
labor.
Some of the shop names, often in large neon letters, have interesting
translations if they are in English. (Most have large Chinese
characters and English if they target the trendy or tourists.)
Yesterday I saw "Fish Beauty" cosmetics and "Photo Fishing".
The traditional Asian "Shophouse" shops (off the main thoroughfares)
group by industry or product (as does most of Asia. You'll see
1-2 blocks of shops selling every conceivable type of clothing
fastener and sewing accessory (zippers, clips, buttons, etc.)
side by side. The next block will be selling industrial electric
products. Everything from poerplant type switchgear to fuses
for the house.
Hard to evaluate the prices. Quality is often and indeterminable.
You'll see locally produced polo shirts in street side stalls
for $4 and an internationally logoed (?) shirt in a more upscale
shop selling for $60.

Later

Lenny

Tuesday June 4 !2:10 PM

Everybody is eagerly awaiting China's debut in the World Cup
(World soccer championships) at 2:30 today. Outdoor megascreens,
its on every taxi radio, every restaurant has a TV every 50'
or so, all turned to the maximum volume. Besides being their
number 1 sport, it is important for the international prestige
as they have been trying to qualify for 40 years. They are not
given much of a chance, though, to make the second round - the
odds of them winning everything is 750 - 1.

A Typical Day

I'm staying at the Shanghai YMCA. Its a 9 nine story brick building
in a convenient location. The YMCA was established here around
1900 and serves as a valuable interface with the community.
They have a number of meeting rooms, conduct a lot of "club"
type activities (English, arts, seniors, etc.), worker (re)training
as well as some physical and exercise facilities. (Like most
everything else here,the latter doesn't open until 9 am.)
The building is 30-40 years old. The hotel is a tired 3 star
operated by an outside party. Many local businessman plus a
scattering of American businessmen and tourists. Chinese buffet
breakfast on the top floor overlooking the smoggy city.
The first two weeks our 6 person volunteer group had orientation,
basic language, history or lectures on topical issues for 1-2
hours in the morning. A set Chinese "plate" lunch at 11:30.
Go to school at 12:10, 3 45 minute classes with 15 minute breaks.
Return around 4 (about a 15 minute taxi ride, $1.25). Once
a week we have "feedback" meetings (most are frustrated we weren't
given a "typical" schedule and more info on the classroom situation
(50+ students, little support from the resident teacher, difficulty
of getting participation due to culture and lack of practice
carrying on a one on one conversation). Dinner together. (Several
do not care for Chinese food and sneak out to KFC, Pizza hut
or MacDonalds.) Several evenings we've had English meeting at
the Y. A little more rewarding as most are University educated
or have a fair English level. Also they are adults and they
are smaller (10-12) groups.
One night we were treated to the Sganghai Acrobat performance,
a circus type show popular with tourists and which has made several
trips to the US. The first Saturday we spent the afternoon/evening
with a local family which I have learned was probably atypical.
All were professionals living in new, spacious highrises in
the newly developed areas. I had Childern's Day and last Friday
(teachers meeting) off.

Random Thoughts/Facts

All of China is one time zone, Beijing time. Its a large country
so you can imagine the differences between East and West. No
daylight saving time.
23 Starbucks. Fifty by next year.
Economic growth rate last year was 7.3% and they expect to pass
it this year. That means it doubles every 10 years. Watch out,
they're coming!
Crossing a street is quite an experience. Vehicles of every
shape and size come at you from all directions. Especially bicyles
which are silent and ignore the traffic code (as do pedestrians).
Mass rules (but taxis are quicker!)

Aloha

Lenny