Crimea and the failure of Kremlin; China leads luxury car growth; More Indians seek US education

1 Crimea and the failure of Kremlin (Maxim Trudolyubov in Khaleej Times) The annexation of Crimea, the media offensive against Kiev and the threat of military force against Ukraine are President Vladimir V. Putin’s ultimate response to Russia’s own failures. His latest actions are a veiled recognition that all of his other efforts to prove that Russia is regaining the Soviet Union’s status as a global superpower have come to nothing.

Russia has the planet’s largest land mass and the vast material wealth that comes with it. It is one of the world’s largest producers of oil, gas, diamonds and nickel. It boasts one of the largest mechanised forces of any army and a nuclear arsenal that is comparable to or even larger than that of the US. Yet the reality behind the rhetoric is bleak. No matter how many warheads he commands, Putin is constantly reminded that he has been doing a poor job.

Transparency International ranked Russia among the top 30 per cent in its Corruption Perceptions Index last year. The World Economic Forum finds it the least competitive of the so-called BRICS — Brazil, Russia, India, China and South Africa. Its business and investment climate is fraught with hostility and risk. It is repeatedly cited by human rights organisations as economically, politically and socially “unfree.” The quality of life for most Russians is embarrassingly low, while the number of its billionaires is obscenely high.

Much the same can be said for Ukraine. Under President Viktor F. Yanukovych a government and business elite grew wealthy as corruption spread and the quality of everyday life deteriorated. Putin thought if he let go of Ukraine he would be seen as a “lame duck,” an autocrat who allowed regime change in a smaller country with parallel problems. A neighbouring state that implemented all the reforms Putin himself aborted would pose an obvious threat to his rule. It would provide millions of Russians with a clear example of non-Russian, non-authoritarian prosperity and freedom.

The Russian regime is looking at what is happening in Ukraine through a glass darkly, without realising that what it is seeing reflects its own image. Putin does not like what he sees. So he is punishing Ukraine for Russia’s failure to put its own house in order.

http://khaleejtimes.com/kt-article-display-1.asp?xfile=data/opinion/2014/April/opinion_April37.xml&section=opinion

2 China leads luxury car growth (David McCowen in Sydney Morning Herald) Car makers are racing to capitalise on China’s booming luxury car market. Chinese motorists bought about 28 million cars in 2013, and luxury brands are experiencing the keenest growth, of about 20 per cent year on year. Audi board member Dr Ulrich Hackenberg says Chinese buyers are increasingly turning to luxury cars.

Audi’s 20 per cent growth is echoed by rivals such as Mercedes-Benz and BMW, while less established brands such as Infiniti come from a lower base rate, and experienced growth in excess of 50 per cent in 2013. China's Mercedes-Benz chief executive Nicholas Speeks says he will open 100 new dealerships in China this year. China will also be home to the first Mercedes-Benz engine plant outside Germany, along with a dedicated training centre for staff. Speeks aims to sell 300,000 cars in China in 2015, with 200,000 Beijing-built models led by the new GLA compact SUV.

Luxury brands have a presence in China that differs from other countries. Customers often do not drive their cars, and insist on long wheelbase models with acres of space in the back seat. German luxury brands often long wheelbase variants of full-size flagship limousines in most markets, but only China offers long wheelbase variants of small sedans such as the Mercedes-Benz C-Class. That could have a trickle-down effect to other markets, as manufacturers may choose to once again build one car for the world rather than a China-specific market.

Deesche Papke leads Porsche’s Chinese presence, one that is working to build its brand in China. Papke says his customers are, on average, 12 years younger than their global equivalents. “The only difference between our customers and first world customers is age,” he says. “Our customers are well educated, well travelled, extremely discerning and unbelievably demanding. They are just younger.”

http://www.drive.com.au/motor-news/china-leads-luxury-car-growth-20140422-371av.html

3 More Indians seek US education (Saptarishi Dutta in The Wall Street Journal) More Indians want to study in the US than ever before. A new study shows that graduate schools in the US received 32% more applications from India this year compared to last year. Applications from India have been on the rise since 2012, said the Washington-based Council of Graduate Schools. The study said Indians are the second-largest international group to receive graduate degrees from the US after China.

Chinese students accounted for about a third of international students in the US that year, while Indians accounted for about a fifth. In 2014, though, more Chinese students applied to the US compared to a year earlier. Compared with a 3% decline in 2013, applications from China saw a small decrease of only 1% this year. Overall, the study showed international graduate applications increased by 7% this year compared to a 2% rise in 2013.

http://blogs.wsj.com/indiarealtime/2014/04/21/more-indians-want-to-study-in-the-u-s/?mod=WSJBlog&mod=irt