Sunday, September 9, 2012

Japan growth numbers revised down; Hosiery setback tells China slowdown tale; America's shadow unemployed; What work is really for; Legacy of India milkman V Kurien; The milk and Greek in Kurien


1 Japan growth numbers revised down (BBC) Japan has revised down its growth numbers for the second quarter, raising concerns about a slowdown in the world's third-largest economy. The government said that economy grew at an annual rate of 0.7% during the April to June period. That is down from its earlier estimate of 1.4%. Slowing exports and subdued domestic demand have hurt Japan's growth.

"This is a very significant revision. It means that overall production and investment in Japan was lower than the government had previously estimated," Martin Schulz of Fujitsu Research Institute said. "As a result, the economy is slowing much faster than expected."

Japan's economic growth has been impacted by both international and domestic factors. The export sector, one of the biggest drivers of growth for Japan, has been hurt by slowing demand from key markets such as the US and eurozone. At the same time, growth in Asian countries, such as China and India, which had been faring better than western economies after the global financial crisis, has also slowed further hurting the sector. Analysts said that this weakness in exports has had a knock on effect on corporate investment and dented growth.

2 Hosiery setback tells China slowdown tale (Tania Branigan in The Guardian) The foolish man built his house upon sand; the wise man built his house on a rock. The ambitious entrepreneurs of Datang chose a sturdy nylon and wool foundation. "People always need socks," points out Xu Leile, whose company clothes the feet of the British and US armies, European hikers and pampered pet dogs.

Thanks to Xu and hundreds more like him, "Sock City" – north-west of Tie Town, east of Sweater Town – epitomised China's economic success story. The obscure settlement in eastern Zhejiang province became an export-driven boomtown, producing as much as a third of the world's sock supply and thriving even through the financial crisis in 2008 and the subsequent global recession.

Last year, Datang made roughly two pairs of socks for every person on earth. In Xu's spacious new factory, the shelves are stacked with huge reels of red, blue and orange thread. But ask Xu about the future and he grimaces. "I'm very worried. This year is much worse than 2008-9," he says. The biggest of his rivals to have gone under in May – the Anli Sock Group, which produced 60m pairs of socks annually – could prove to be "the Lehman Brothers of Datang", according to Fan Jianping, chief economist of the State Information Centre.

Failures such as Anli's and a slew of disappointing data in recent weeks are raising fears far beyond China that a slowdown in the world's second largest economy is turning into a hard landing. In the face of Europe's woes and the weak US recovery, Chinese growth has become more important than ever: the ripples are already being felt globally, with commodities analysts blaming tumbling prices on falling demand from China.

3 America’s shadow unemployed (Catherine Rampell in The New York Times) The number of people not in the US labour force — that is, neither working nor looking for work — rose by almost 600,000 in August. Most of the Americans who are “not in the labour force” are categorized as such because they are retired, stay-at-home parents or otherwise not interested in holding a job. But there are also a lot of people who really want to work but have decided not to bother looking for jobs because they think the job market is too discouraging or because they are too busy with training, family responsibilities and so forth.

This group of people who want to work but aren’t looking are sometimes referred to as the shadow unemployed. Their share of the not-in-labour-force population has generally been rising since the recession began almost five years ago. In December 2007, when the recession officially started, 5.9% of people counted as “not in labor force” said they wished they were working. As of last month, that share was 7.8%.

One possible reason the share of people out of the labour force who want work isn’t higher is that school enrollment has risen sharply since the 1990s. A lot of out-of-the-labour-force Americans — particularly young people, and particularly young women — have resigned themselves to not finding a job anytime soon and have decided instead to invest in improving their skills while they wait for the economy to improve.

4 What work is really for (Gary Gutting in The New York Times) Is work good or bad?  Even apart from current worries, the goodness of work is deep in our culture. We applaud people for their work ethic, judge our economy by its productivity and even honour work with a national holiday. But there’s an underlying ambivalence: we celebrate Labour Day by not working, the Book of Genesis says work is punishment for Adam’s sin, and many of us count the days to the next vacation and see a contented retirement as the only reason for working.

We’re ambivalent about work because in our capitalist system it means work-for-pay, not for its own sake.  Most of us inevitably see our work as a means to something else: it makes a living, but it doesn’t make a life. What, then, is work for? Aristotle has a striking answer: “we work to have leisure, on which happiness depends.” This may at first seem absurd. How can we be happy just doing nothing, however sweetly? 

Everything depends on how we understand leisure. Is it mere idleness, simply doing nothing?  Then a life of leisure is at best boring, and at worst terrifying.  No, the leisure Aristotle has in mind is productive activity enjoyed for its own sake, while work is done for something else. The point is that engaging in such activities — and sharing them with others — is what makes a good life. Leisure, not work, should be our primary goal.

5 Legacy of Verghese Kurien, India’s milkman (The Wall Street Journal) India has always won well-deserved praise for the stunning agricultural advances of the 1960s known as the “Green Revolution.” But just as groundbreaking was the “White Revolution” that turned India from a dairy-deficient nation into the world’s largest milk producer. The man who carried out that transformation, Verghese Kurien, passed away early Sunday of age-related ailments. He was 90.

Mr. Kurien pioneered a cooperative model of dairy farming that cut out exploitative middlemen and trading cartels, giving producers control over procurement, processing and marketing. It wasn’t just social service, but big business: The tiny enterprise he founded eventually grew into the Gujarat Cooperative Milk Marketing Federation Ltd., a firm with $2.5 billion in annual revenue in the last fiscal year. It collects dairy product from 3.2 million producers nationwide.

Along the way, he built an iconic brand, “Amul,” that markets not just milk but everything from cheese to ice cream to probiotic yogurt. The company has had an innovative advertising strategy, too: its playful cartoons in billboards and newspapers celebrate major national achievements and often poke fun at celebrities. Rahul daCunha, whose company produces the Amul ad campaign, said Mr. Kurien “mixed two great qualities as a leader – valour and vision.” He not only had the idea of the White Revolution, Mr. daCunha says, but “he had the strength of character to fulfill it”.

6 The milk and the Greek in Kurien (My article in The Economic Times) He’s the father of India’s White Revolution, alright, but Verghese Kurien has also been an early bird among the multitude of Kuriens from Kerala who have made the name popular across the country. Kurien’s tale in Anand may be inked in milk, but the surname he carries has some Greek in it as well. The name has its root in the Greek ‘kyrios’, meaning master, Lord, power or authority, from which comes the word ‘kyriakos’, meaning ‘of the Lord’.

The ‘Cyriacus’ name in Ancient Rome is considered the equivalent of the Greek ‘Kyriakos’, and both these names may have come to Kerala via Syria and through the multiple trade relations that the state had with European nations. Over a couple of thousand years, Kerala has a legion of Kuriakoses, Cyriacs, Kuriens and Kurians, which are different versions of the name with the kyriakos root. And they may all owe a bit of their name’s popularity to Amul Kurien, who left Kerala in his teens and made that surname as popular in the PMO in Jawaharlal Nehru’s time, as with the small-time dairy farmers of Anand, Gujarat.

The other Kuriens of the country may have been in the shadow of the milkman, but many of them have been hardly lesser mortals. The Rajya Sabha vice chairman happens to be seasoned Congressman PJ Kurien, and senior bureaucrat PH Kurien recently shook up the international pharma world when, as Controller of Patents, he granted the first compulsory licence in India in relation to Bayer’s patented drug, Nexavar. The decision is expected to make the drug’s generic version available at a mere Rs 8,900 as against the Rs 2.85 lakh for the patented variety for a month’s course.

Down south, TK Kurien of Wipro is a star in the tech industry, though fewer people may know economist John Kurien. And fewer still may know the amazing story of Mangalathukarottu Mathai Kurian an assistant education officer from Kanjirapally in Kottayam district, who fathered 17 children, nine of who joined government service.

Verghese Kurien may be the most popular Kurien in the country, but there is someone who is senior to him by nearly a decade, and is the Arch Corepiscopo of the Jacobite Syrian Orthodox Church in Kerala, namely Kurien Kaniamparambil.

Finding it all a bit Greek? Never mind, just raise a glass of milk to it.

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