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H-P CEO Leo Apotheker defends H-P's plan to spin off its PC unit. He says it wasn't possible for H-P to invest enough in the business to be competitive and make the necessary structural changes needed in other parts of H-P's business. The new product development cycles are much faster than what a congomerate like H-P could accomplish in areas such as the tablet PC, as consumers are looking for a stream of new product devices. H-P's PC unit generated $40.1 billion in revenues and $2 billion in operating profit in the recent fiscal year. Analysts say H-P has overpaid for Autonomy, leaving less money available for additional strategic moves. Apotheker defended that decision saying the Autonomy acquisition makes it possible for H-P to skip a generation of technology as it enables businesses to make sense of unstructured data.

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From the National Archives of America here is the letter Mohandas Gandhi wrote to president Franklin Roosevelt calling for American help on July 1, 1942, one month before the launch of the Quit India Movement. With Roosevelt's reply to Gandhi on August 1, 1942, offering his fullest support as stated in his foreign minister Cordell Hull's bold vision of a community of free nations such as India and the idea of the United Nations in Hull's speech made on July 23, 1942. Hull responds to Gandhi' call with the full support of Roosevelt.  Mohandas Gandhi writes to Roosevelt that- "I hold that the full acceptance of my proposal and that alone can put the allied case on an unassailable basis. I venture to think that the Allied declaration that the Allies are fighting to make the world safe for freedom of the individual and for democracy sounds hollow as long as India, and for that matter Africa, are exploited by Great Britain, and America has the negro problem in her own home. In order to make my proposal fool proof I have suggested that if the Allies think it necessary, they may keep their troops, at their own expense, in India, not for keeping internal order but for preventing Japanese aggression and defending China. As fas as India is concerned we must become free even as America and Great Britain are. The Allied troops will remain in India during the war under treaty with the Free India government that may be formed by the people of India without any outside interference, direct or indirect." Gandhi wrote with his proposal to Roosevelt - "It is on behalf of this proposal that I write this to enlist your active sympathy." Roosevelt wrote in his letter that-  "I am sure you will agree that the United States has consistently striven for an supported policies of fair dealing, of fair play, and of all related principles looking towards the creation of harmonious relations between nations... I am enclosing a copy of an address of July 23 by the Secretary of State, made with my complete approval, which illustrates the attitude of this government." Cordell Hull stated in his speech "What we are Fighting For, July 23, 1942, that- "In this vast struggle we, Americans, stand united with those, who like ourselves, are fighting for the preservation of their freedom, with those who are fighting to regain the freedom of which they have been brutally deprived, with those who are fighting for the opportunity to achieve freedom. We have always believed, and we believe today, that all peoples, without distinction of race, color, or religion, who are prepared and willing to accept the responsibilities of liberty, are entitled to its enjoyment. We have always sought and we seek today, to encourage and aid all who aspire to freedom to establish their right to it by preparing to assume its obligations. We have striven to meet squarely our own responsibility in this respect-in Cuba, in the Philippines, and wherever else it has devolved upon us. It has been our purpose in the past, and will remain our purpose in the future- to use the full measure of our influence to support attainment of freedom by all peoples, who by their acts, show themselves worthy of it and ready for it."   ...

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China faces three main challenges and how well it handles them will determine if China does well in the future because the things that helped China in the last 30 years of development are now gradually coming to a close. The three main challenges are a changing work force and the gradual phasing out of the demographic dividend thats responsible according to some experts for a third of the progress this far, the gap between the rich and the poor, and severely constrained resources and supplies of energy and environmental resources. On the first its not something China can do to much about, on the second its going to have to have a more balanced development and repair the network of social services and redirect resources to the poorer sections (see the link to the conference at Lindau, Germany and Nobel Prize Winning economists opinions on this issue). This will bring more discussion and challenges about how to proceed as a lot of actions to build new infrastructure and new construction has been done by taking over land where needed. And on the third challenge has not been done so well so far as the amount of energy required to each yuan of economic output has not changed much, seeing a 3.7% improvement over 2006 in 2007 and only a 2.9% improvement in the first half of 2008 over 2007. All this is why Secretary Paulson cautions that many American might be worrying about the wrong thing, China overtaking the USA, what really is the worry he says is whether serious troubles in China will affect the stability of the USA and global economies....

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US president Biden and EU president Leyen are expected to discuss a plan to reduce dependence on China for minerals for EV vehicles. A buyers club for critical minerals is part of an effort to move clean energy supply chains away from China. The G-7 would then arrange for agreements in Africa, Asia and Latin America to buy these critical minerals. EU firms would be able to use this supply to qualify for incentives provided under the Inflation Reduction Act. Some Senators including Manchin say the provision for US sourced materials for EV vehicles manufacturing was intended to support manufacturing in the US. The EU protested and president Biden is working out an arrangement to work with the EU on a common manufacturing platform that also gives incentives to EU made products under the Inflation Reduction Act.

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The Economist points out the shortcomings in Indonesia's effort to attract foreign investment and increase growth under the Widodo administration.

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Easterly's thoughts on how the swing away from individual initiative, innovation and private enterprise hurt developig countries the last time state run enterprises and state intervention in all aspects of the economy became fashionable, in the 40's and into the 60's and 70's, costing decades of lost progress in many countries. He cautions against learning the wrong lessons from the American experience. The housing bubble and the failure of regulation to be modernized to keep up with changing financial scene and the simple failure of ethical and moderation in behaviour and good business practices teaches other lessons than simply going back to letting the state run things which has not worked in the past.

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This response by experts on transatlantic relations rejects the other view expressed in Zeit Online that the U.S. under Trump remains estranged from Germany and the EU. These experts from the American Institute for German Contemporary Studies, American German Council, and Centers at John Hopkins and Georgetown for German Studies, reject the view that the Trump administration and Germany are that far apart on many issues as it appears from media coverage.  Foremost it points out that civil society relations are sound and growing. About 50 million Americans trace their descent to Germany, including president Trump, much larger to over half the U.S. population considering European descent. Much larger is the sense of a culturally shared future with the European Union, with the nations of Europe including Germany, France, Italy, Spain, the nations of Eastern Europe, and Britain. The civil society relationships run deep in a way that is hardly affected by the Trump administration. Within the Trump administration the policies to Europe these experts remind the reader, are determined by the "adults" in the administration, who are senior members of the administration. This is a crucial point as Trump administration policy is not determined by the president's liking for tweets as much as by senior cabinet members Tillerson at the State Department, Gen. Mattis at Defense, Kelly at the White House, and senior members of Congress including Senators Corker and other senior committee members. This is why Republican Senator Kay Hutchinson was chosen as Ambassador to NATO. It should be noted in this context of German-EU relations in president Trump's first year that there was a period of German disillusionment with president Obama, exacerbated by the NSA spying on German chancellor Merkel and on the EU delegation to the UN, with president Obama's failure to offer any apology. Relations recovered from that low point. No one suggested that there be a German led decoupling of the EU with America at that low point, or at another low point in German-U.S. relations with the setup of American Pershing II nuclear missiles on German soil under the Reagan administration when there were large scale protests.  The American view that the U.S. should not have to shoulder major responsibilities for defense and foreign relations by itself is not new say these experts, and goes back to earlier administrations before Trump.  The experts argue for an active role by Germany with its partners in Europe for defense and foreign relations, which should not be seen as a result of U.S. pressure, only responding to the situation as it has evolved upto this time. Views on immigration are also changing with effort by the EU and Germany, France, to reduce immigration from the source countries in Africa, and the changing perceptions about uncontrolled immigration in Germany and France, say the authors. A coordinated policy towards Russia  is seen as not having changed. And much as a reset in relations was advocated by Obama in the first year of his first term, the current policy of the Trump administration to work with Russia to lower tensions can be seen in the same way say these experts, and not as a fundamental shift in American policy. The deep relationship of Germany and the EU with China is another positive aspect that will also help the U.S. in framing its own policies towards China. The German-American relationship, and the European Union relationship with the U.S.  is seen as basic to the values and interests of the U.S. and Europe. This relationship is too deep and supported by civil society and Congress, the Republican Party, and the Democratic Party, by large trade relationships, to be affected by temporary differences under any one administration. Even these differences are part of a larger debate that is part of dialogue on issues in a democratic society, sometimes raucous and loud, and could be welcomed and carefully channelled in constructive ways.     ...

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The story of Ernest Stempel who joined AIG in 1938 on atip from his uncle who was an agent in Panama, attended Fordham Law School at nights, worked for Mr. Starr, and built AIG's overseas business, especially in Asia. He died at age 93, played tennis well into his 80's, remarried 15 years ago to a fashion decorator from Capetown, South Africa, and lived in Bermuda. AIG's founder C.V. Starr was among the first westerners to sell insurance to citizens of China and other Asian countries.

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Nguyen Dan Que, is a doctor in Vietnam who has been imprisoned three times. Que was doing diabetes research in London during the 1970's. Three months after Mandela's release Que called for a nonviolent movement for basic rights and free elections in Vietnam. He was arrested a month later and sentenced to 20 years of hard labor.

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In a first at Davos World Economic Forum, China's president Xi Jinping uses the 2017 meeting to give a one hour long spirited defense of the world trading system, critical of U.S. president elect Trump's protectionist views without naming him. Xi pointed out that "no one will be winners in a trade war." And went on to add that restricting world trade was like "locking oneself in a dark room, keeping out wind and rain from outside but also light and air." For the first time Jinping stated that China would take the U.S. role of defending the world trading system from attack as needed. On climate change Xi defended the Paris accords, and gave China's commitment to pursue changes regardless of what the U.S. under president Trump does. This follows Chancellor Merkel of Germany's statements on the issue critical of the views of president elect Trump, and taking the lead to defend the world trading system. Xi also pointed out that many of the ills that led to voter discontent in the West were not really from the freeing up of trade but from the pursuit of excessive profit with the financial crisis of 2008.   ...

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South Africa's currency drops to 16.78 against the dollar by Jan 11, 2016. The currency is affected by the slowdown in China since June 2015. In the 6 months from June 2015 to the beginning of 2016 the currency lost 26% of its value.

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Nikki Haley is doing what has happened before, fighting for principles in her party and showing that a fully significant 40 percentage points of her party believe in the old conservative ideas, of the Republican party. That of the country club type, the everyman who happens to be conservative the core of the party, small and large business owners. The situation is analogous to the intraparty struggles that beset the Democratic party after the abrupt end after 1000 days of the John F. Kennedy presidency and administration. Since the 1920's and two periods of rising inequality accompanied by technological change from the 1870's that ended with the Great Depression, the US had experienced a great revival under Franklin Roosevelt, Harry Truman and Eisenhower. In 1960 a new future was articulated by Kennedy of the new world that lay ahead, one he had seen upfront in Asia before, during and after the war. How would we bring the post colonial world of billions of people into the modern world. Since then both a modern China and now modern India are part of this change. "Today our concern must be with that future. For the world is changing. The old era is ending. The old ways will not do." Acceptance speech for the Democratic nomination for President, July 15, 1960. It was interrupted after the intraparty disputes that began in 1968, Robert Kennedy challenging LBJ, leading to Richard Nixon, and Edward Kennedy challenging Jimmy Carter leading to Ronald Reagan. John F. Kennedy had articulated a vision that still is alive today based on an understanding of how America's needs fit into all humanity's needs.  In some ways the situation after 2024 or 2028 still goes back to the vision of a new order of the world with emerging nations in Asia with 3 billion people, and additional billions of people in Africa, Latin America. The Arms buildup promised by Reagan in 1980 has yielded little about 50 years later, not even the fall of the Berlin Wall which today has been replaced by another struggle in Eastern Europe in 2024. Truman tackled the Berlin Blockade,  Eisenhower had faced upto Soviet tanks in Budapest, Kennedy had faced the Berlin crisis in 1963 his ich bin ein Berliner (I am Berliner). What purpose would an orbital weapons program serve- and could the US ever be or even want to be  "only one superpower in a safe world," with an orbital weapons program as Reagan and Weinberger went out to do and failed completely. America faces a situation analogous to 1920's with increasing inequality and weakness in the social fabric, as a result of four decades of rising inequality accompanied by technological changes, and misguided Reagan programs that diverted from John Kennedy's vision that the "old era is ending, the old ways will not do."  The vision put forward by John F. Kennedy has more relevance today for the future. That vision he articulated in the First Inaugural Address in which he also said that this work may not be accomplished "in our lifetime on the planet." It is important to remember that John F. Kennedy connected his vision to FDR when he said in his State of the Union Address to Congress in Jan. 1961- In the name of a great President whose birthday we honor today, closing his final State of the Union Message sixteen years ago. "We pray that we may be worthy of the unlimited opportunities that God has given us." This is the vision that stands before America even today in 2024.   ...

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With the aggressive actions taken along the 1600 kilometre border in eastern Ladakh by China's People's Liberation Army, India needs a younger soldier to protect the border at high altitudes in below freezing temperatures. The entire 3500 kilometre border in the high Himalayan regions from east to west need technology driven surveillance with soldiers fit and ready for such duty. Agnipath's goal is to bring down the average age in the army from 32 years to 26 years to better reflect the youthful population in India. A tighter better disciplined force with high tech is needed. Bringing in more and new recruits is intended. Both the 25% of recruits retained after 4 years benefit and the 75% benefit. The 25% will have opportunities to move up the ranks. The 75% who come back out of the military will have the advanced technical training and courses, certification, that would make them attractive to the public and private sector companies in 2026 and beyond when India's economy will be 50% larger than today at growth rates of 10-12%. This is already seen in the way technologically trained military recruits from World War II in the US Army, Navy and Air Force were quickly absorbed at high salaries in the high growth period of America 1950-1970, with incentives like the GI Bill. Modifications that could be discussed- The 25% retained after 4 years. There is no magic number it could be raised to 30 or 40% during these post pandemic years and then lowered to 25% as the economy grows rapidly by 2025, or kept at 30% without changes, a number of options could be open.The financial aspect of the training can be modified where the 25% retained could have these 4 years added to their years for calculating pensions. The 75% are given 1.2 million rupees and even this can be adjusted upwards so that they could start businesses as entrepreneurs or have the time to pursue higher education before taking up for example with free education to enhance their education in areas of interest as was given by the GI bill to Americans in the armed services after World War II in 1946. Ideas from the GI Bill signed by president Franklin Roosvelt in 1944- Adding one year of unemployment payments, low interest loans to start a farm or business, full tution and living expenses for college. In 2008 the Veterans Act in the US continued support for education of servicement by making eduction free at a public college or university.  The Roosevelt GI bill benefited about 7.8 million servicemen in the US armed services. 2.2 million went to college, 7.6 million took training programs. It was an impressive achievement. No scheme is perfect there are budgetary constraints such as how to manage pensions to give the armed services the best possible funding including the training and course capabilities that also need good financing and the higher pensions for armed services. Every political party  government around the world without exception will have to face these budgetary constraints and the goal is to do right by the armed services providing the income and opportunities they deserve. Was a decent effort made with the right goals set? This is how these matters of national interest for India and the Free World that includes South East Asia, Africa and Latin America, should be discussed.    ...

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Bill Keller in South Africa during the last days of Nelson Mandela reflects on the leadership of Mandela and Obama and the missing element of moral purpose in the Obama presidency.

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Fadjroel Rachman, a student at the Bandung Institute of Technology was kidnapped in August 1989 and spend three years in jails for protesting corruption and human rights violations of the Suharto military regime in Indonesia. He is a political economist at the Research Institute of Democracy and Welfare State in Jakarta, Indonesia. He first heard of Mandela's 1990 release from a tiny cell in a military prison in Bandung, West Java, as the news came over a radio sitting on a shelf in the canteen for prison guards in front of his cell.

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Vegetable prices in China went up by 22% in July 2010, from a year earlier, and grain prices went up by 12%, eggs by 8%. About a third of household budgets go to food in the budgets of people in India and China. Wheat prices are climbing on world markets after the ban on Russian exports, and rice prices are also climbing with the floods in Pakistan ruining the rice crop- Pakistan being the No.3 world's rice exporter. Personal spending accounts for 36% of overall GDP in China and 57% in India. Food prices in China were up 6.8% in July, 2010. Industrialization in China, and agricultural land freely taken over for factory sites with the consent of local authorites, may be a complicating factor. See the link to BYD's acquisition of agricultural land for factory site.

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A few events in the last 50 years are rewriting the rules for business, finance and economics, says the WSJ in this analysis. The admitting of China to the World Trade Organization under president Clinton in 2001 was one, another was the global financial crisis in 2009 with the selling of bad mortgages by the financial industry, the euro currency financial crisis with the bad accounting, real estate industry speculation, and lack of financial oversight in countries such as Greece, Ireland, Spain. The coronavirus pandemic is one more addition to this string of crises and events that have made the working class and middle class in US and Europe poorer and in worse shape after the recovery following World War II.  The changes indicated here are some of the surface changes- such as the shift to the suburbs for cleaner air and better living, the work at home as a serious option, the new focus on health care, wellness, exercise, nutrition and mental health, remote learning and community college as a realistic option to high tuition costs by the education industry, and a pharmaceutical industry refocused on public health and vaccines as it was in its early years before its shift into a simply profit driven industry. The underlying thread for all these changes on the surface is a deeper change in the public mind- a change that redefines what the people believe in just as happened after World War II. Rebuilding the devastated economies of Europe, America and Asia required a new vision at the time after World War II. And reconstruction could only happen with all the people involved and working for the public interest.  This also created a new hope for the future. President Biden's vision is for a new set of priorities that make child care, women's position in the economy, community college education as a right for all as a first step to opening the access to education that existed after the war in 1945. Investment in infrastructure, in building new roads, bridges and rail, water, internet connections, public services in transport, better layout of urban areas, better lives for retirees, are all part of an effort to improve quality and ease of living for all parts of society, not just those who can afford it.  This is uppermost on people's minds and administrations or governments that fail to deliver or simply talk with no action, will not have the support of ordinary working men and women in all countries. This is true for countries and regions as varied in their level of development as the US, Northern Europe, Southern Europe, Japan, India, Brazil and Mexico, and African nations. Democracy, government adminstration, technology and business structures exist for the people, to improve the ease of living, quality of life, through better health, education and public services.  ...

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Ko Bo Kyi spent years in prison after protests over the army annulling Burma's 1990 elections. Pages of a magazine article on Mandela's autobiography were smuggled into Burma's Insein prison where he was jailed. A song about Mandela sustained Kyi and fellow prisoners in prison. He escaped to Thailand in 1999 after a second prison term and quickly obtained a copy of Mandela's "Long Walk to Freedom."

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China's investments in Africa have grown rapidly from $100 million in 2003 to $12 billion in 2011, as it looks for resources in mining and other industries. Pew Research Center surveys show African countries view China's foreign investment favorably.