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The growing middle class in Brazil, new aspirations and the demand for better public services in transportation, education and healthcare. Alexandre Peppe, a 29 year old from the outlying parts of Sao Paulo, is a new member of the middle class, being the first to go to college in his family and finding a job in the state government. He was one of the protesters on the streets of Sao Paulo. The growing middle class has new hopes and aspirations that see serious shortcomings in the corruption of political leaders, neglect of public services such as transportation and overspending on the soccer stadiums for the FIFA and World Cup championships. Economic growth is slowing to about 1% in Brazil for 2013, creating new constraints for public spending just as demand for infrastructure and services is growing for the now large middle class.

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Shinzo Abe and the LDP won a landslide victory in Japan's Dec. 2012 elections. Shinzo Abe was the first prime minister of Japan born during the post war period when he became prime minister in 2006. He is less influenced by the legacy of the pre-war period and war period. Abe is the grandson of Nobusuke Kishi, Commerce and Industry minister during the war, and prime minister when Japan signed the security treaty with the U.S. in 1960. His father was foreign minister, making him one of the rare politicians with a deep family history in Japan's government. Their views also influenced his own. Kishi is committed to changing Article 9 in Japan's constitution which limits the role of the military, and renounces the right to wage war. His 2006 book "Toward a Beautiful Nation," describes some of his views.

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Most people hae not heard the name Radhabinod Pal the sole dissenting judge at the Allied Tribunal who questioned its legitimacy in a dissenting opinion. Here we learn that Judge Pal's opinion sealed a friendship between him and Abe's grandfather Nobusuke Kishi charged with war crimes but never tried. Mr Abe visited the Netaji Subhas Bose museum in Calcutta and said that he was determined to strengthen Japanese Indian bilateral relations that Bose wanted to see. Appears to be an emotional bond and a visit that aroused old feelings from a family tie for Abe. Note that India and Japan vowed to seal a economic partnership by December. Small as this seems this may be a big turning point for South Asia. See the details of the Japanese investment plans in India especially in infrastructure projects in related article.

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The story of Eiji Toyoda is largely the story of the modern Toyota company. He guided the company as president from 1967 to 1982 and following that as chairman and senior advisor, a service that spans the entire period from the formation of Toyota during the 1930's by Sakichi Toyoda and his son Kiichiro Toyoda till today. Eiji was Sakichi Toyoda's nephew, and 18 years younger than Kiichiro. He worked in the company's textile loom business in the early days before the formation of the company to manufacture automobiles as an entrepreneurial venture by Sakichi and Kiichiro. An auobiography by Eiji Toyoda pubished by Kodansha in 1985 tells the story- Toyota- Fifty Years In Motion. Most of the prewar period was spent manufacturing buses and motorized vehicles for the military. It was after visits to Ford's Rouge automobile plant in Detroit in the fifties that Eiji first picked up the ideas for a suggestion system and getting workers to provide ideas and make improvements that later became kaizen. Eiji was born in 1913 before the beginning of the first world war and passed away at the age of 100 in 2013. He lived a remarkable life that witnessed most of the events of the twentieth century, the transition from a militaristic to a peace loving nation, and technological progress in many fields. The technological evolution continues with the development of electric cars. In the early days of the automobile Sakichi had imported a German electric car which was limited by the short battery charge, a limitation Toyota and other companies are still tackling to this day, showing the technological challenges still ahead. The story of Toyota shows pioneering efforts and progress is continuous, as Toyota picked up the ideas from Ford and added new ones of its own for better products. Family companies with dedicated service spanning a century are rare and Toyota is one of these companies. When the recall crisis of 2011 brought the young CEO, Akio Toyoda, Kiichiro's grandson, to the verge of tears at a public event, the memories of a generation of leaders and the need to live up to their ideals and the work that preceded him must have gone through his mind....

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This report from Italy by Jason Horowitz of the NYT, shows the Five Star Movement as having emerged as Italy's leading political party, and making efforts to tackle its inexperience in politics with charges from other parties that its candidate for prime minister Mr. DiMaio, 31, is a complete novice. Here he is shown to have inflated the qualifications of a candidate with a pro-EU background, Italian Ms. D'Alessandro who lives in Berlin, Germany. She is one of many candidates from the professional class recruited by the Five Star Party to polish its image and show it is capable of governing. Ms. Alessandro was presented in the Southern region of Italy by Di Maio as an "economist" and someone close to Merkel's CDU. In elections on March 4, the governing Democratic party is presenting older candidates in their fifties with family and political connections in contrast to the young people like Ms. D'Alessandro who is only 27 years old with a masters degree in public policy from a German University.  The Five Star Movement hopes to gain from Italy's proportional system and the voter dissatisfaction with existing parties. A similar situation led to the untested and untried En Marche Movement in France winning the national elections. A separate report in the Economist magazine shows the Five Star Movement retaining its popularity even after other parties accused it of inexperience, improper financial dealings of candidates, plagiarism, anti-immigration views of specific candidates.  ...

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The NYT editorial talks about growing inequality and the falling back of both the people below the poverty line defined as $22,205 for afamily of four, and the falling back of the middle class. According to the Census Bureau median household income fell in 2008 to $50,300 from 52,200 in 2007. Economists Piketty and Saez found that from 2002 to 2007 the top 1% of households- those making ,ore than $400,000 a yea- received two thirds of the USA's total income gains, largest sine the 1920's.

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Should 33,000 member Boeing machinists union approve a 25% wage increase over 4 years or ask for 40%?  It has been a long time since a CEO pleaded with union workers to not go on strike. Boeing has negotiated a 4 year 25% increase wage settlement, no non union plants in the South. “I ask you not to sacrifice the opportunity to secure our future together, because of the frustrations of the past. I also know there are employees considering another path—and it’s one where no one wins." We suggested Stephanie Pope coming from a family of machinists for CEO- her dad worked at the Boeing plant. Pope says Boeing has a $60 billion debt pile and the Alaska Airlines accident with a bolted door coming loose midair. Pope says- "In past negotiations, the thinking was we should hold something back. Let me be clear: We did not hold back with an eye on a second vote.” ...

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Who is this boy born in 1971 growing up in Dutch Apartheid South Africa who studied at Pretoria Boys School in 1988? The head teacher at Pretoria Boys was Armstrong who reflected the English values that came from the British settlement of South Africa in the 19th century till the Boer War period- the English fighting what they see as the less cultured Dutch settlers in Natal state around 1900.  The answer -Elon Musk, who went back to Canada, his mother's country. His father Errol Musk still lives in Cape Town, South Africa. Till 2016 Elon and his brother were alienated from their father over Apartheid and the relations between blacks and whites of that period.  The illegal immigration since 2016, fentanyl crisis causing hundreds of thousands of deaths in the US from illegal flows of drugs from Mexico and Canada with sourcing from China, the collapse of Venezuela and gang crime in central American states has changed the thinking of the Musk family since 2020, says this story in The Guardian. ...

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 Americans in the southern states forget that president Kennedy made the famous statement about "a rising tide lifts all boats" in Arkansas, a poor southern state, saying that America must invest in all regions in people in all parts not just in well off northeastern states. In a handful of southern states expanding Medicaid to about $43,000 or 138% of the federal poverty level for a family of four is now being taken up by Republican leaders who show new openness- in Alabama, Georgia and Mississippi. Noah Weiland -of NYT looks at one particular battle -between Democrat Governor Laura Kelly in Kansas and Republican Speaker Hawkins- in Topeka, Kansas, where the fight goes on. Hawkins calling it the greatest Ponzi scheme devised and Kelly telling this reporter that she has included a work requirement so there is no excuse for not doing this. Republicans are coming around and so are states in other places. Missouri, Nebraska, and Oklahoma, states that lie next to Kansas have approved this through ballot initiatives. The point here is that in the years as America comes out of the pandemic there is and should rightly be a realization that this is different, that the children of low income families deserve as equal a chance as their higher income fellow Americans, that depriving them of good medical care makes America a weaker country. As Jerome Powell of the US Fed said in Stanford today about Kennedy's expression of "lifting all boats," it is just this that is needed today. It will be the No.1 election issue in Kansas in 2024, says Governor Kelly. The Republicans are also having second thoughts and are now just face saving. Consider that the Kansas Health Institute a research group, says 70% of the people becoming eligible for Medicaid expansion are working. Many are restaurant business workers who cannot provide proper medical care to children who form the next generation of America. And hiring in rural hospitals would expand for health workers instead of layoffs in southern states lifting financial strain on rural healthcare with additional Medicaid funds. This helps rural America when it needs it most. ...

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Washington Post's new idea of developing content for social media platforms  (Third Newsroom) to cut losses of $77 million in 2023 by earning profit on social brand exercises, comes at a time when the risks of social media platforms to education of children and to their mental health are great. Social media platforms entry into the news business has led to old news companies first interacting with them over a decade and realizing that this was leading to gains for social media platforms and losses for the old news companies. For older news companies such as the NYT, WSJ, Washington Post and others in the US this was a period in which these companies lost control over their news content along with loss of revenues. Over the last five years the companies have become profitable managing their own content and increasing subscriptions. The Washington Post has run into problems and has a $77 million loss. It was sold to Amazon's Bezos for $250 million by the founding family in 2013.  It is now trying to revive its business by doing what failed for the NYT, WSJ and others- by embracing rather than rejecting social media platforms such as Instagram, TikTok, and others using the News Movement idea of UK journalist Lewis and Winnett. That News Movement makes content for Instagram and TikTok but has not generated profits. Under Lewis as head of Washington Post news division, Matt Murray formerly editor of WSJ would as head of Third Newsroom develop this kind of content for social media platforms. This runs the risks of aiding the work of social media platforms at a time when TikTok has raised national security concerns in the US, and along with Instagram is being cited as part of social media platforms that are affecting the mental health of children. Its disastrous impact on the health of the Nation and its future comes from reducing focus on education and studies by diverting an average of 4.8 hours each day away from educational activity for the children that make up the future generation of this Nation. ...

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The Indian Finance Minister Mukherjee presented his new budget and talked about the new administration's plans for investment and its priorities. The Rural Employment program which guarantees 100 days of work to each indigent family will get an increase in funding to $8.1 billion or 391 billion rupees for this fiscal year. THe goal was set for cutting in half the percentage of the people in India that are poor in five years, which the government measures by calories consumed. The Indian government estimates that 27.5% of Indians were poor in 2005 using this measure. To finance investment government spending will increase 36% and the deficit for the 2009-10 fiscal year will reach an estimated 6.8% of GDP, up from an estimated 6.2% in 2008. Abig part of this spending will be increases in infrastructure spending which will go up from 6% to 9% of GDP by 2014.

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David Brooks on the candidacy for U.S. President of Senator Rick Santorum. He says Santorum genuinely represents the working class- a grandson of a coal miner and the son of Italian immigrants who has represented workers of the steel manufacturing region of western Pennsylvania. Santorum has pushed hard in this campaign largely ignored by the media. He has visited 370 towns riding in a pickup truck trying to cover as much ground as possible and talking with great conviction about his positions distant from the corporate and financial wings of the Republican party, about family, and communities. Bring someone like Sherrod Brown of Ohio together with someone like Rick Santorum and you have good representation of the working class across the political spectrum to win this election for the working class of America, says Brooks, who sees this as a lot better alternative today than Harvard Law.

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Zhang Juwei of the Chinese Academy of Social Sciences believes that the overall fertility rate is at most 1.6. A recent report by CASS says the figure of 1.8 used by the government is an overestimation. CASS says its data shows the fertility rate for migrant workers is about 1.14, much lower than people think. The policy for one-child only was introduced 30 years ago, when the fertility rate was close to 3, having fallen to that level from close to 6 in 1960. Does the policy serve China well in the future as China's population ages and there are more older people for younger workers to support, is a question raised by critics in the Chinese media. China's government family planning officials say it applies to 40% of the people, considering the two child policy operating in some areas of the country.

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Army General Martin Dempsey is expected to become the next chairman of the Joint Chiefs of Staff in the U.S.. He brings a low key intellectual approach to the job, and was recently appointed chief of staff of the Army. He has worked in key roles in training and transformation of the military, led a combat division in Iraq and supervised the training of Iraqi security forces. Between 2001-2003 he managed the Saudi Arabian National Guard Modernization Program, an internal defence force guarding the Saudi royal family and the holy cities of Mecca and Medina. After the McChrystal appointment and resignation, and the effort by military leaders to get approval of troop buildups by making statements and speeches to affect public opinion, advisors in the Obama administration were looking for someone who would work well in an environment of de-escalation of existing conflicts and lower defense spending.

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Peers discusses the divergent management styles of the two CEO's in a proposed merger of Fox with Time Warner, Jeff Bewkes of TWC and Rupert Murdoch of Fox. Murdoch is known for a management style that involves taking risks, compared to the style of Bewkes that emphasizes fiscal discipline. Because Murdoch's $80 billion offer for Time Warner is 60% stock this raises questions from Time Warner shareholders about the value placed on Fox's performance in future years. This is particularly true after the painful experience in the merger with AOL, which devastated TWC shareholders as AOL's business declined. Another difficulty is that the voting structure for the company uses nonvoting shares that give control of the merged company to the Murdoch family, with TWC shareholders not able to influence the future management- particularly Rupert Murdoch's son James Murdoch, who is co-chief operating officer, as Rupert Murdoch is 83.

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The people like Stephen Dixon who day in day out do the work that keep New York functioning and the streets clean. Stephen Dixon. He did the hard work hauling trash on a route that did this manually, and helped clean up the snow also. He joins the sanitation department at the age of 41 but works just like the younger people on the job, and does this for 20 years. He walks with a limp, talks about getting his knees fixed at retirement once he finished 20 years and qualified for a pension. With 4 daughters he needs the steady job with the Sanitation Department. One day on the Queens route he collapses with aheart attack. Mayor Bloomberg calls the family. An immigrant from Panama at the age of 9, Stephen Dixon's story is a different one from the ones that make the headlines these days.

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A former WSJ Detroit Bureau chief says that if GM is to receive help it should go into government receivership, old management and the board have to go, shareholders would lose value as shares become worthless, and old union contracts have to go, and only then would the industry get back on its feet. The same should happen for Ford and Cerberus, and the shares becoming worthless would take away the control that the Ford family has of the company, giving it a fresh start with new management. He is saying what many have thought true for a long time, management of these companies have failed Detroit and the midwestern states for a long time, for decades in which management has simply protected its own interests and avoided taking the steps needed for renewal of the companies. The few changes have simply come so late and are inadequate in this crisis.

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This interview in the Times with Boris Johnson's father Stanley Johnson, provides some glimpses of life in the family, and where Boris Johnson comes from. Stanley Johnson is a writer who has also worked in other careers including the World Bank and Brussels EU office. Stanley has a book out on the virus. He is interviewed at the family home in rural Somerset. Boris Johnson must have experienced many moves as Stanley Johnson moved many times during periods when he switched careers. From 1974 to 1979 Stanley Johnson was head of the Pollution Division at the European Commission. From 1979 to 1984 he represented Britain at the European Parliament for Wight and Hampshire East. Writing and the classics remain a passion within the family with Stanley and Boris both educated at Oxford.  Boris read Classics at Balliol College, Oxford, and was president of Oxford Union 1986. He started his career in journalism with The Times, later becoming the Brussels correspondent of the Daily Telegraph, and for 1994-99 as Assistant Editor. It is at the Daily Telegraph that Boris Johnson set the tone for eurosceptic sentiment that later turned into Brexit. His father Stanley had earlier in written a column for the Guardian, though he wrote on topics related to the environment. Stanley stood for the Remain campaign during the Referendum on Brexit. He later switched sides, supporting his son Boris Johnson. Another note to the family's time in Brussels- Boris actually attended the European school in Brussels. This gave Boris a closer insight into Brussels than would otherwise appear.  ...

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Lagging growth in GDP per capita, productivity growth, in Italy, with small family business unwilling to take risks for growth, and bureaucratic hurdles for business. To get an idea how Italy has lagged severely behind other countries in Europe, consider that GDP per capita increased by 28% in Spain, and 22% in France, compared to only 8% in Italy during the 20 year period 1993-2013, according to the Conference Board. Productivity growth measured by GDP per hour worked for Italy showed growth of only 13% in that 20 year period, compared to 30% in France and 23% in Spain. Since the 2008 global financial crisis the Italian economy has shrunk by 9% and growth is barely 1% in 2014. During 1993-2003 top performers Germany showed 31% increase in GDP per capita and 32% increase in productivity growth, the UK showed 44% increase in GDP per capita and 38% in productivity growth. Because of slowing population growth GDP growth has to come from productivity increases in Europe. France is the strongest in terms of productivity with $59 of GDP per hour worked, UK $51, and Germany $57. Italy at $45 has fallen behind Spain at $50. Conference Board statistics show GDP per capita in inflation adjusted, purchasing power adjusted 2013 dollars at $35,847 for France, $40,868 for Germany, $30,145 for Spain, $39,904 for Britain, and Italy lagging behind at $31,386. Most of the gains were made before 1993 for Italy, whereas Spain surged in the period after 1993 only slowing after 2008. The struggles in the U.S. auto industry showed how well meaning changes for labor in the early postwar period if not adapted to changes in the global economy decades later can lead to sharp decline before adjustment is made. In Italy well meaning labor laws in the early postwar period not adapted to changes in the global economy decades later, combined with cultural behaviour of entrenched group interests, and a bureaucratic government, have stifled growth and productivity....

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A detailed look and appraisal of the Tata's achievement and the vision and plans of Ratan Tata. See the Creation of Wealth a book about the Tata family and the epilogue written by Ratan Tata. And Conversations with Tata about Ratan's father Jamshedji Tata. Some of the achievements are the restructuring of Tata Steel, the acquisition of Corus, the Tata Motors Indica car and the first 1 lakh ruppee car the Nano a Ratna Tata vision coming true, the growth of Tata Consultancy in the software industry, the entry into retail, telecom, biotech, solar, and others, all meant to put Tata at the forefront of India's industrial development and to bring millions of Indians into the market economy. A lot of foresight is built into this, and now Tata believes in setting bigger goals following the example of China knowing that as India grows it will grow into Tata's larger projects. The Nano especially makes it possible to put a car in the reach of India's millions and by this way helping build a large auto manufacturing industry in India for the first time, and enlarging a number of other industries like steel. And Ratan Tata is not content with what tata achieved with the Nano, he wants Tata to reinvent the auto business. In the process of doing all this Tata has kept to its roots which is a strong social committment and a ethical foundation. Even the Jamshedpur Tata Steel restructuring was done by keeping the committments to education, health care etc for Jamshedpur. Tata is owned 66% by a charitable foundation and the ownership and management structure is designed such that even though the Tata family owns only 3% of the shares Ratan Tata manages the direction, goals and progress of the diverse companies which are independently run through management groups that oversee the companies. These management overseeing structures are the holding companies Tata Sons and Tata Industries staffs, and the Group Corporate Office headed by Ratan Tata and which has 9 senior executives who sit on the boards of the companies and act as mentors, nentoring managers and supporting corporate social responsibility values. ...

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James Hagerty of WSJ provides this exceptional account of a company that proves it can be done if only you learn from setbacks, and innovate, even in a declining industry. In rural Arcadia in western Wisconsin, an unlikely person trained for farming in an unlikely location, Ron Wynek has built the largest furniture maker in America, growing at 10% a year! This story tells how it started, the setbacks, the resonse and how it is done. Speed in decision making comes from Ashley Industries being a family owned operation with Ron and his son Todd very attuned to the manufacturing process for keeping costs down, and attuned to the opportunities in providing value to customers in America. As furniture makers in the South withered under the impact of Asian manufacturers, Ashley thrives with 60% of manufacturing done in highly efficient American midwest factories with costs kept down, and an efficient delivery system of its own that helps retailers keep low inventory. The imports come from three factories in Vietnam to Prince Rupert in B.C., Canada and are shipped by rail containers to Wisconsin, with grain and hide shipped back in the same containers. Ron Wynek was destined to be a farmer, but his wife preferred to stay in town, where he decided to go into the furniture business. The business faced Asian imports with half the cost of manufacturing, and Wynek took the advice of his Congressman not to look for government protection but find new ways to compete. He started importing from Taiwan, moved into furniture products such as bedroom furniture that faced less intense competition in the early days. He invested heavily in logistics, technology and manufacturing efficiency, to come up with a model that could withstand and grow in the face of Asian competition. Ashley is now larger than Lazy Boy and Ethan Allen combined, with sales close to $4 billion, and is expanding with a large store opened in Shanghai, China. ...

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Improvements in birth rate and more immigrants in Germany are making the demographic picture look better in Germany. About 13 million people are expected to reach retirement age in just a few years, according to Prof Enzo Weber, Institute of Employment Research. This means 13 million new pensioners. Birthrate today is about 1.4 children per woman. At this level of birthrate and even a low rate of immigration of 100,000 per year Germany's population of 83 million today would decline over time. Between 1990 and 2008 more people left Germany than came in with a net outflow. Some level of immigration would be the only way to keep the level of people in the workforce of 43 million today to become stable in the future. This would be needed to support the increasing number of pensioners. Yet the general aging of the population is expected to continue. And a high level of immigration in too short a time such as from the Syrian refugee crisis creates other tensions in the social fabric of society. Germany's very homogenous society faces a challenge that goes beyond the politics of the refugee crisis of today. Too many immigrants in too short a time is not the solution, immigration has become too politicized in today's context, good and early integration of immigrants through language and culture training needs to be established. Prof. Weber points out that the influx of immigrants from Southern and Eastern Europe has helped the labor market, and there is no reason that the labor market could not dry up with the number of people retiring soon. Tackling that will involve making family and career life choices easier and enabling flexible work-life choices, increasing retirement age, and some level of healthy immigration. A demographic summit will be held on March 16th in Berlin to look at the problem. ...

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France's foreign minister Michele Alliot-Marie is criticized for vacationing in Tunisia during Christmas, when demonstrations were taking place in the country. Ms. Alliot-Marie also took a flight on a private jet owned by a Tunisian businessmen connected to the family of the ousted President Ben Ali. Reports in the French press say France had approved the export of police equipment and crowd control devices to Tunisia as the demonstrations were taking place, and that the French ambassador in Tunis had no idea of the extent of anger of the Tunisian people. Sarkozy later replaced the French ambassador. Ms Alliot-Marie said that it was her intention to spare the lives of Tunisians by supporting better police tactics. The Socialist leader in Parliament, Jean-Marc Ayrault, asked Ms Marie to resign. French President Sarkozy supported Ms. Marie, who has held positions as minister of defense, interior and justice. French prime minister Fillon says that calls for her resignation were "a purely political polemic."...