5 comments about The China Dream: The Quest for the Last Great Untapped Market on Earth.

1. Joe Studwell, a British freelance journalist who lived in and reported from China from 1991 until 1999, has written one of the best-informed insiders' books about the Chinese economy in the boom years of the 1990s that is on the market. The book is excellently researched, well documented (60 pages of notes accompany 300 pages of text) and profits from a wealth of experience gathered "on the ground."

   The main thesis of the book is that many big Western companies substitute a blurry, optimistic picture of a vast potential market for a balanced view based on hard data. When it comes to China, wishful thinking replaces critical distance and realistic assessment.

   One thing that "The China Dream" explains very clearly is the extent to which two economies in China exist parallel to each other. One is the old socialist economy that is protected from change and the market forces. The other is a vibrant, export -oriented economy of manufacturing plants that assemble goods under the management of mostly Taiwanese and Hong Kong companies. The latter is the poster child for China, but the former continues to gobble up the people's savings to churn out the products that the planners want to see. Stripped of the success story of the export-oriented manufacturing companies, China's economy looks like a disaster waiting to happen.

   Studwell is not a China-basher. He admires the stamina and determination of the small entrepreneurs in China who manage to hold their ground against a rapacious bureaucracy, the lack of credit from state-owned banks and the dumping strategies of pampered state-owned enterprises.

   Earlier reviewers have criticized "The China Dream" as biased and uninformed (no CEO interviews). Having worked in China for three years, my impression is that Joe Studwell has a very solid grasp of the economic and political realities in the People's Republic of China, and that there is no point in listening to the rosy projections of CEOs and foreign luminaries who were "toured about in government limousines and fed an endless diet of spurious statistics"(255).

   In a nutshell: This book is absolutely recommended reading for anyone who wishes to work in China or just wants to know what to make of all the praise lavished on a socialist developing country.




2. China, the fastest growing economy in recent years is in deep trouble according to this book. Starting with a historical perspective, the author goes on to explain that it has never been easy to make money in a market that otherwise appears so attractive due to its sheer size in terms of its population. Multinationals have made over optimistic estimates of the potential market size for various goods and services and sunk billions of dollars either in the hope of making a quick profit or with a view to stay invested before rivals can enter. In most cases, returns have proved elusive.
   
   China is a land shrouded in mystery and secrecy but yet continues to entice entrepreneurs from around the globe. The mad rush to grab the proverbial pots of gold turns into a frenzy in the early 1990s. China becomes the main destination for the global leaders and captains of multinational companies. Having brought in their money, these investors soon find themselves trapped in a situation of no return. Those with deep pockets manage to survive while many others are not so fortunate. The asset inflation boom - stocks and real estate- also has its fair share of victims. Another area discussed in detail is the weakness of Chinese financial institutions and the proportion of non performing assets that account for nearly half of their lending particularly to state owned enterprises. While exports is a success story appreciated across the world, here again the author is quick to point out the low value addition and low share in global trade.
   
   Page after page, the author misses no opportunity to criticise the Chinese bureaucracy, political system the authoritarian rule of the party depicting china as a land that is on the verge of a great economic meltdown where global corporations will have no escape route to retreat.
   
   It is important to note that global companies have gone to do business in China and it is their love for money and not charity has been the motive. It is said that greed, optimism and herd mentality are the three drivers of capitalism . Need a better example ? Large multinationals, mostly from developed countries boast of employing the best talent from leading business schools who are experts in market research and financial accounting. When things go wrong, why blame it on China?. There is no evidence in the book that suggests that China has misused money from international institutions or indulged in unfair practices to swindle FDIs. Assuming that China overstated her domestic income and growth figures, the two main parameters that have attracted the foreign capital, it cannot be an excuse for not doing enough home work to verify these figures before investing huge amounts.
   
   The book appears to be biased and incomplete in not giving due credit to the rapid progress and achievements of the world's most populous nation.



3. Can it really only be two years since Mr. Studwell wrote this oft-quoted book? Only two years since he bravely confronted and slayed the "myth" of a profitable domestic Chinese market?
   
   Two years ago, we were told about a "long period of slow growth and stagnation" for the domestic Chinese economy. This experienced China-hand, claiming 8 years of personal experience and a wealth of economic insight, assured us that there would only be a few isolated cases of economic success. He mocked GM for its economic investment, and lumped them into the group of so many other misguided CEOs that falsely believed the Chinese could afford to buy anything the West had to sell!
   
   As a previous reviewer pointed out with great self-satisfaction... GM would have to wait until 2025 to meet their target of one million in annual sales! That prediction certainly seems comical when we realize that GM will reach 600k in annual sales this year: 2004. GM, with its over-optimistic and poorly planned investment in China, made an eye-popping profit of $875 million with its Chinese partners from China in the year 2003. That's actually *more* than what GM earned in North America ($811 million for Canada, Mexico, and the US combined). We can only hope Joe Studwell will be contributing a sequel shortly explaining the lack of a consumer market in North America, as well.
   
   Ah, how things have changed. Mr. Studwell wrote for the Financial Times this month (December 2004), and while his melody remains the same, he has certainly changed keys. We're now told that, "while" the Chinese economy is "certainly doing well" (surprising understatement from a man that wasn't shy with rhetorical bombasity a few years ago)... it's not doing *that* well.
   
   How so? Well, it seems, the Chinese domestic market will "only" be returning $8 billion in profits to foreign investors this year... a pathetic sum that's "only" comparable to the returns found in... South Korea and Taiwan? For a man that didn't think much of China's economic prospects 2 years ago, he sure has placed it in hallowed grounds this time around.
   
   Two years ago, Mr. Studwell had a 50/50 shot of getting it right with this book. He found anecdotes and statistics supporting his conclusions at the time, but he conveniently ignored the comparable evidence that just as surely contradicted his point. In a world of conflicting facts when informed experts were unsure about China's future prospects, he decided to trumpet his own truth to the world.
   
   Well, he's been caught with his pants down: he was as wrong as you can possibly be.



4. As someone who has been in China for eight years I found Joe Studwell's book a breath of fresh air among the constant hype about this market. Some reviewers have challenged his account but I would strongly agree with his premise that while it is easy to be busy in China it is hard to make money. As Studwell points out, few foreign CEO's are able to pick up on this difference.
   
   Some previous reviewers have claimed that Studwell has been proved wrong over the past two years since release of the book as the economy has continued to grow and one reviewer mentions GM as an example of how companies have exceeded their projected growth and revenue targets. Studwell's message was not an attack on the economy necessarily but an attack on the perception that there is easy money to be made in this boom. I would have to agree with his attack on those outside China, or with little knowledge of it, who fail to carry out basic due diligence.
   
   Studwell's point is not based on confirming "the impending collapse of China" rather a recognition that despite the appearance of a first world economy this is still a developing market, with highly protectionist ideals, that requires business managers to apply realism and analysis to succeed. Don't leave your common sense and good business practice on the plane.
   
   The move by Volkswagen in 2005 to cut back on investment and separate research showing that car production will be 5 times over capacity by 2015 seem to substantiate his message that yes there are winners but these are often short term!



5. This book is a must for those traveling to China. Gives a detailed look at the history of the Chinese market. Is a great precursor to visiting ex-patriots

1 comments about The Paradox of Plenty: Hunger in a Bountiful World.

1. The Institute for Food and Development Policy (Food First) was founded in 1975 and has been an important element in the struggle to end world hunger. Through its original research, Food First has consistently shown that there is more than enough food for every man, woman, and child on Planet Earth, but all too often the poor do not have access to that food. Highly recommended for personal, professional, academic, and public library collections, The Paradox Of Plenty: Hunger In A Bountiful World is an outstanding compilation of excerpts from twenty-seven of Food First's best writings designed to provide food system activists and the non-specialist general reader with an integrated overview of the world food system, how global politics affect hungry people, and the impact of the free market on the growth, processing, and distribution of foodstuffs.

No comments about International Development and the Social Sciences: Essays on the History and Politics of Knowledge.

No comments about Development Centre Studies Chinese Economic Performance in the Long Run - Second Edition, Revised and Updated: 960-2030 AD (Development Centre Studies) (Development Centre Studies).

5 comments about Blood Money: Wasted Billions, Lost Lives, and Corporate Greed in Iraq.

1. This books deserves a Pulitzer Prize for plugging the huge gap in our knowledge of why the spectacular military triumph was succeeded by the even more spectacular reconstruction fiasco that quickly alienated average Iraqis. The press has focused mostly on the daily casualty counts and on the political maneuvering among Iraqi religious and secular leaders. Left unreported has been the story of why the mainstream Iraqi population that was so hopeful after the US toppled Saddam has turned against us in despair. Miller's investigation and reporting skills are remarkable in detailing so much of what went wrong with virtually every aspect of the occupation. Much of the blame is attributable to the unprecedented reliance on profit-driven private sector firms to carry out public policy of rebuilding Iraq -- which was doomed to failure because normal marke forces don't exist to control behavior of corporations left to run amok. Absolute must reading for anyone trying to understand how any American military success can be rapidly and overwhelmingly squandered by failure to plan for all that must follow.



2. This book is a devastating indictment of the US intervention in Iraq. For the author, the clearest signal of the failure of the reconstruction program is the unabated violence.
   The second Iraq war created a paradise for cynical war profiteers, while the Iraqi population was left in the cold. The aid packages were in fact remarkable programs of US domestic handouts and corporate welfare, profiting nearly only to retired Republican operatives, US businessmen and dubious Iraqi exiles with a double agenda.
   The profiteers organized an orgy of greed on profit guaranteed contracts. Control was inexistent, e.g., $ 9 billion out of the $ 20 billion of the Iraq Development Fund disappeared without a trace (mind-boggling!). Insurance companies sold mouth watering policies for labor protection. Foreign private security firms played a leading role in the daily violence in Iraq. The contractors hired slave laborers in order to maximize their profits.
   The newly installed Iraqi government was not a shade better, e.g., its Defense Ministry misspent or `lost' $ 1.3 billion in its first year in office.
   
   The author illustrates poignantly his terribly shocking exposé with concrete examples of personal tragedies, like the suicide of Col. Ted Westhusing, or the murder by his kidnappers of a 19 year old Nepalese, who paid a broker's fee of $ 3000 for a $ 200 per month job in Iraq.
   
   Miller's book shows also the disastrous effect the UN sanctions had on the Iraqis under Saddam (one schoolbook for every six children).
   Its final conclusion is that the Iraqi people didn't receive `blood money' - the payment of compensation by an attacker to the family members of dead or injured loved ones. Instead, they inherited a living standard below the `Saddam' level (no power, no water, no sewage treatment).
   
   This book with its formidable title is a must read for all those interested in world current affairs.



3. While the matters in this book have long been alluded to in congressional hearing and the media. this is the first book to gather it up in one volume. It shows an inept government unable to do what was done almost 60 years earlier. Admittedly, the culture and the circumstances were different but the resources were greater. The rampant graft and lack of aggressive action by those in charge, including contractors, is chilling. Have we as a nation state sunk so low?
   
   It presents a thoughtful picture of the risk encountered daily by many employees of contractors. This is the first writing that describes the risk imposed on the professional truckers serving in Iraq. No other writer spells it out so vividly.
   
   This book raises more questions than it supplies answers. Of course, that was the purpose of the book.



4. .. prevent me from typing what I really want to say. That would be a string of obscenities that would get me kicked off Amazon.
   
   This book offers the proof that this whole fiasco of a "war" was designed to rob the Treasury of the United States.



5. I recommend you read this book if you are interested in government contingency contracting or the issues impeding the Iraqi reconstruction. Mr. Miller shared insight about events and actions that is not gained from the course work on government contracting. His book also shared difficult it is to effect the Iraqi reconstruction. I think Mr. Miller writes this book from an apolitical space, neither left or right. Finally, the book is informative and entertaining. I can't wait for his next book on the subject.

No comments about Understanding Contemporary Russia (Understanding: Introductions to the States & Regions of the Contemporary World).

1 comments about Taking Southeast Asia to Market: Commodities, Nature, and People in the Neoliberal Age.

1. those of us who study globalization and the environment, and teach it, have been suggesting recently that we need a new way to look at neoliberalism and nature and its intersection with people, communities, and places. The chapters in this book do that by looking at all of the different processes and patterns in which nature is commodified under neoliberal globalization. The chapters are accessible, well written and well researched. Very good for a sophomore and above course on SEA, environment and development, globalization, or environmental studies. They have a broad range of topics, locations, and commodities.

1 comments about The United States in Africa: Bush Policy and Beyond (African Arguments).

1. "The United States in Africa" is a brief but well-informed critique of U.S. Africa policy under the Bush Administration. The author, Ray Copson, was a longtime Africa specialist at the Congressional Research Service, and is well known in think tank and academic circles. He understands how policy is formed (and deformed) in DC; he knows how policy plays out on the ground in Africa; and he can pick apart a budget, navigate jargon (ACOTA, PEPFAR, ECOWAS, AGOA, etc.), and separate cant from reality. In short, he has produced a smart "insider's" book.
   
   Readers should know, however, that the book isn't really a history of U.S. relations with Africa since 2001. Instead, Copson takes stock of U.S. policy, asking whether it has been just and fair, and whether the U.S., as the richest and most powerful country on earth, has done enough to bring peace and a better life to Africans. He concludes that the U.S. has fallen short in many areas, from development assistance to democracy promotion. However, he doesn't single out the Bush Administration for special blame. Most U.S. administrations have failed Africa.
   
   The book's only real shortcoming is a querulous tone that mars a few sections. The discussion of Bush's (idiotic) abstinence policy, for example, takes up more space than the discussion of ARV programs, which are keeping alive thousands of people with AIDS. Similarly, Copson devotes more pages to chastizing the slow U.S. response to Darfur than he does to the diplomacy that brought peace to Southern Sudan.
   
   Perhaps it's inevitable that anyone specializing in Africa will eventually grow bitter and despair of a constructive U.S. policy. However, Copson's occasional glass-half-empty negativism was enough of a problem for me to knock one star off my review. Otherwise, his book is highly recommended.

No comments about Welfare and Capitalism in Postwar Japan: Party, Bureaucracy, and Business (Cambridge Studies in Comparative Politics).

No comments about Capital Account: A Fund Manager Reports on a Turbulent Decade, 1993-2002.