Petra Nemcova photoshoot in Cannes

Petra Nemcova’s photoshoot in the Cannes Film Festival. 

Petra Nemcova, the Czech model, she’s absolutely gorgeous. How the hell did you ever ended up with James Blunt for a while? 

Jordin Sparks crowned American Idol

Jordin Sparks, 17, beat Blake Lewis after a triumphant performance Tuesday that wowed the show’s judges and viewers, who gave her a majority of the record 74 million votes cast!

The “American Idol” voters decided that the way Jordin Sparks sings is way beyond compare. For that reason, the teen queen was crowned as the sixth “Idol” champion on Wednesday.

Jordin’s triumph didn’t surprise anyone. She was clearly better than Blake Lewis in the finale, with a big assist going to songwriters Jeff Peabody and Scott Krippayne.

The duo wrote “This is My Now,” which won a contest to become the first single for the season-six winner. Each finalist closed with their version of it last night. Jordin’s sounded something like a hit record while Blake’s, well, did not.

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Jordin Sparks grew up watching “American Idol” since she was 12 & told her mother this is what she wanted to do. Now, Sparks has done it!

American Idol Season Six Finale Show - pictures

Jordin Sparks, 17 was crowned as the sixth “Idol” champion on Wednesday at the Kodak Theatre in L.A..

Jordin Sparks grew up watching “American Idol” since she was twelve, Sparks told her mother that this is what she wanted to be & there she made it!

Jordin Sparks, 17, the Season 6 American Idol

Jordin Sparks & runner-up Blake Lewis

Jordin Sparks emotional, receives congratulatory hugs

Sanjaya Malakar,17 Top 7 finalist performing “You really got me”

Sanjaya with Joe Perry of Aeosmith

Sanjaya never won but he made it on the Time’s 100 -  most influential people of the year

 

Simon Cowell, Paula Abdul, Randy Jackson - the judges 

Kylie Minogue & Sharon Stone dirty dancing

Kylie Minogue & Sharon Stone did the dirty dancing to help raise funds for the Cinema Against Aids benefit organized by AMFAR.  Kylie Minogue sang 2 songs & doing the dirty dancing with Sharon Stone, the duet raised 200,000 British pound for the act!  The audiences were the rich & the famous, go figure.

George Clooney & his lucky auction winner. Boy, he’s for real, isn’t he, straight to the mouth. And she couldn’t stop laughing! I never cared for Clooney’s looks but he is looking good here, that’s for sure

Sharon Stone & George Clooney, Stone, Hollywood sex symbol (or former sex symbol) is past her prime but she looks darn hot for 49!

Eva Mendes - auction time!

Jodie Marsh wears her boobs outside of shirt?

Jodie Marsh is in Edinburg, Scotland auditioning her potential partners, any interest? Wow, is Marsh wearing her boobs outside of her shirt? 

Jodie is looking for a man in her new show for MTV, called Totally Jodie Marsh: Who Will Take Her Up the Aisle?. The show will see Jodie travel all over the UK to seek out her Mr. Right.

Jodie Marsh - look at those boobs!

one of her potential suitors..

Kate Beckinsale is sex starved

Kate Beckinsale says she is being starved of sex because her director husband has been too busy working.

Beckinsale ,the Underworld star said Len Wiseman had become a “virtual stranger” while working on the new Die Hard film.

“I’ve told him he is going to have to make it up to me. I won’t let him out of bed for a month,” the 33-year-old told a Sunday magazine.

Beckinsale will next appear in Vacancy, a thriller, alongside Luke Wilson. The film is out in cinemas from June 15.

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Watchout hubby, sex deprivation is dangerous!

Enrique Iglesias has a small willy

Enrique Iglesias has stunned his female fans — by admitting he has a little willy. 

Enrique, the Spanish heart-throb, 32, — who is dating Russian tennis star Anna Kournikova — confessed it was the one thing he would change about his body.

His dad Julio Iglesias, 63, is a legendary lover said to have bedded 3,000 women. But Enrique told a mag: “I’d change my penis if I could. It’s way, way, way too small.”

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Enrique has said that before about his willy being way too small. Does the size of a man makes him a better man? Well, too small is a problem but he is a man enough to say that.. come on how many guys are going to announce it to the world that they are not well equipped. Perhaps that’s why his dad has a fixation over how many women he has bedded. Isn’t male genital size hereditary?

Pamela Anderson shows her boobs in Cannes

Pamela Anderson at the Cannes Film Festival promoting her latest movie “Blonde & Blonder“. Of course, Pamela makes the best use of the beautiful sunny weather in Cannes by showing us her implants! They are BIG!

 photo source

Demi Moore wants to have a boy with Ashton Kutcher

Demi Moore & hubby, Ashton Kutcher were at the L.A. Premiere of “Mr. Brooks“.  Demi plays the detective in the movie. It’s a suspense thriller apparently rather graphic & brutal.

Kutcher finally got rid of his nasty & ridiculous looking beard. Now, clean cut but with a bandana. Hmmm. I get the feeling that Kutcher is trying so hard to match Demi. Does the huge bandana make him look more mature? I think it’s just weird.

And of course, the oh-so-loving, understanding ex, Bruce Willis was there, & one of their ( Willis’ & Moore’s) daughters.

Demi, 44 wants to have a child with Ashton, 28. She would love to have a boy to balance out her three girls.

David Beckham..he’s so frakking hot!

David Beckham was at the Greatest Briton Awards last night। He wasn’t accompanied by Posh, his other half, who is down in L.A॥ Helen Mirror, the Oscar winning actress was speechless coming face to face with Beckham.
Helen said: “I am absolutely speechless. What can I say? “He is the best of Britain in every way. He is a great icon for this country.”
Something about Beckham, I saw his photos years ago.. no idea about his football career then since I am not a soccer fan. The first thing that jumped to my mind is WOW the dude is smoking hot!
He’s hot, he’s hot, he’s hot! I bet you anything in time, David Beckham will be acting।

Bai Ling’s latest nipple slip

Bai Ling, if she’s not wearing nothing or see-through, she would make sure you see her nipple or nipples so if you care to see॥ this is Bai ling’s lastest nipple slip at the Cannes Film Festival yesterday।

Orlando Bloom wants to fall in love, anyone?

The pirates are now in Toyko promoting their mega hit “Pirates of the Carribean: At World’s End”
Orlando Bloom, 30 Pirates of the Carribean: At World’s End star told the Mirror that despite the fact that he’s a romantic who really, really wants a girlfriend, he “finds the whole dating thing very hard, actually.” You know, cause it’s so hard finding a partner to settle down with when you’re drop-dead gorgeous, wealthy, and famous. We so feel your pain, Orlando.
Orlando Bloom (plays Will Turner), Johnny Depp, the hotter pirate (plays Captain Jack Sparrow)


Chow Yun-Fat (plays Captain Sao Feng), Johnny Depp & Orlando Bloom


On Orlando’s ex, Kate Bosworth:
“Kate was on one side of the world, in Australia shooting Superman, and I was on the other, in the Bahamas for Pirates. So we tried giving each other a bit of time out. And, well, there were difficulties. There are in any relationship…In our case, it was extremely unfortunate that everything was on public display. I have always tried to keep my cards close to my chest - while wearing my heart on my sleeve - but it is a really hard thing to do…We’re still very good friends, but there’s no denying that it had been a difficult year for us both.”

Poems for Every Mother(Mothers Day Poems)

Touch your mothers heart with these short and sweet sentimental poems on Mothers Day. You can also quote these unique lines on that special Mother's Day card and gift that you got for her. Your mother will surely appreciate the heartfelt emotions and treasure them forever.M-O-T-H-E-R"M" is for the million things she gave me, 　　"M"代表她所给予我的无数, 　　"O" means only that she's growing old, 　　"O"的意思是她在日渐老去, 　　"T" is for the tears she shed to save me, 　　"T"是她为抚育我洒下的泪, 　　"H" is for her heart of purest gold, 　　"H"指她有像金子一般的心灵, 　　"E" is for her eyes, with the love-light shining,"E"就是她的眼睛,里面洋溢着爱的光芒, 　　"R "means right, and right she'll always be, 　　"R"的意思是正确,因为她永远都是对的。 　　Put them all together, they spell "MOTHER", 　　将以上字母串在一起就是"母亲(mother )", 　　A word that means the world to me. 　　这个是我整个的世界。 　　A mother's love is like a circle, it has no beginning and ending. It keeps going around and around ever expanding, touching everyone who comes in touch with it. Engulfing them like the morning's mist, warming them like the noontime sun, and covering them like a blanket of evening stars. A mother's love is like a circle, it has no beginning and ending. 　　母爱就像一个圆环,没有起点也没有终点。它源源不绝,广阔无边,感染着每个接触到它的人。它如晨雾的笼罩,如正午太阳般温暖,又如夜星，照耀着人们。母爱就像一个圆环，没有起点也没有终点。--Howard Johnson (c. 1915)I Love You Mom!Mom's smiles can brighten any moment,Mom's hugs put joy in all our days,Mom's love will stay with us foreverand touch our lives in precious ways...The values you've taught,the care you've given,and the wonderful love you've shown,have enriched my lifein more ways that I can count.I Love you Mom!--Author Unknown

Acne Solution Offense is the Best Defense

The approach of proactive acne solution is offense is the best defense! This technique employs an amalgamation of components that work in tandem in order to cure existing acne and to prevent further outbreaks as well. The nonprescription drugs available at the local drugstores are often not helpful in cases of adult acne. The acne in adults is cystic in nature and leave scars. The treatment should be two pronged, with acne treatment followed by scar removal. Proactive acne treatment is very effective in healing the acne that commences in adulthood. The constituents one by one exfoliate the skin, kill propionibacterium that cause acne, sooth the inflammations and irritation, unclog the pores, hydrates the skin and provides protection as well. Thus this form of treatment is all inclusive, and mild yet effectual. Proactive acne treatment is a complete acne management system and not limited to topical application. The products can be applied every day, and yet do not make the skin dry or flaky. Botanical constituents like aloe, allantoin and chamomile soothe the skin and leaves it feeling delicate and smooth to touch. The problem is treated from the root, thereby preventing resurrection of acne. The proactive acne treatment has been designed by qualified dermatologists and involves three steps. The steps involve cleansing followed by exfoliating. After that the products penetrate deep into the skin and the acne causing bacteria are annihilated. Next step entails a restorative measure. The whole process is completed in a matter of a few minutes only, but the result is long-lasting. The overall health of the skin improves. Even formation of scars is effectively averted. It has been reported that women suffering from acne as a result of hormonal disturbances like Polycystic Ocary Syndrome are also being benefited by the application of proactive acne treatment. Even celebrities have endorsed this product. Proactive acne treatment needs to be continued even after all existing acne is cleared away, in order to thwart any future attacks of this irritating skin condition. Proactive acne treatment was invented only about a decade ago, and has already gained much popularity due to the efficacy of the system. It is a waste of time to continue the use of on-the-spot lotions and ointments that do not work on adult acne. There is a lot of information available on the internet regarding this novel treatment procedure and even a purchase can be carried out online.
BY:Arturo R

Get Rid of Acne Scars and Marks Fast Using 3 Things

There are several quick and easy methods available to get rid of acne scars and discoloration. Obtaining these methods involve no more than picking up products at your local drug store or ordering them online. For the more serious scars, you may have to engage in a dermatological procedure. However, you may want to try these methods first to see how much improvement is made. The good news is that there are successful methods of getting rid of acne scarring no matter how bad your condition is.
Methods To Correct Acne Discoloration
If you don't have raised or depressed scars, and only have red spots and discoloration, over the counter topical treatments should be all that you need. There are several over the counter remedies that target acne discoloration and red spots.
The most popular over the counter remedies that can be used to get rid of discoloration are skin bleaching products. Hydroquinone is the bleaching agent in skin bleaching products. Hydroquinone works by disrupting the synthesis of melanin hyperpigmentation. The FDA allows a maximum of 2% hydroquinone for non-prescription (over the counter) sales. If you want to try a higher (4%) concentration of hydroquinone, you must get it from a dermatologist. You should avoid using hydroquinone bleaching products during the day because exposure of it to sunlight can turn it a shade of brown. Use it at night before you go to bed. Nonprescription bleaching products with hydroquinone are MD Forte Skin Bleaching Gel and Peter Thomas Roth Potent Skin Lightening Gel Complex. Both can be found online. If you find that you are sensitive or allergic to hydroquinone, there are skin lightening alternatives. They can all be found online as well. Here are some of them:
ScarGuard Lightener-Contains Hydrocortisone 0.5%- Anti-Pruritic. Silicone, vitamin E, specially-formulated flexible collodion.
Lightening Gel-Contains kojic acid, azeleic acid, lactic, glycolic acid polymers, ascorbic acid and betacarotene.
SkinCeuticals Phyto -Contains kojic acid, arbutin glycoside, cucumber, thyme and hyaluronic acid.
DERMAdoctor Immaculate Correction Revitalizing Skin Tone Equalizer-Contains mitracarpus scaber extract, azeleic acid, bearberry extract, licorice extract & beta carotene.
SkinCeuticals Phyto Corrective Gel-Contains botanical glycosides, bearberry extract, sodium hyaluronate, cucumber and thyme extract.
Cellex-C Fade Away Gel for Sun and Age Spots-Contains a natural blend of ascorbic acid, tyrosine, green tea, zinc sulfate, sodium hyaluronate, cucumber and thyme extract.
You may also try the new Neutrogena Advanced Solutions Acne Mark Fading Peel. You can get this at your local drugstore, kmart, target, or walmart. It contains 2 percent Salicylic Acid and should be used up to three times a week to reduce the appearance of post-acne marks with regular use.
Methods For Acne Scar Removal
There are two excellent, powerful, non-prescription acne scar correction products. Scarguard Scarcare Treatment was created by a plastic surgeon and is the number one product used by plastic surgeons for scars. Scarguard Scarcare Treatment helps flatten existing raised scars. You can buy Scarguard Scarcare Treatment online. Another product to correct acne scars is Mederma is a gel that is recommended by doctors and pharmacists to improve the color, texture, and overall appearance of acne scars. You can buy Mederma at CVS, Brooks, Eckerds, RiteAid, Target, Walgreens, and Walmart.


Microdermabrasion Home Kits


Microdermabrasion is also good for getting rid of acne marks and discoloration. Microdermabrasion uses a mechanical tool to "sand" the skin which results in a layer of skin being removed and hence a smoother skin surface. You can now perform microdermabrasion on yourself at home. There are several microdermabrasion kits that you can get at your local drugstore or stores like Target or Walmart. A few of the microdermabrasion kits are Oil of Olay's Regenerist Dermabrasion home facial with lactic acid, L'Oreal Derma-Expertise ReFinish Micro-Dermabrasion Kit, and RoC Renewex MicroDermabrasion Expert System.



You may want to combine 3 products to acheive the best results. A combination of a home microdermabrasion, one of the skin bleaching products, and either Scarguard Scarcare Treatment or Mederma will provide optimal results.
If non-prescription products don't suffice in diminishing your acne scars, you might have to take a more drastic measure and opt for a dermatological treatment. There are several dermatological treatments available for acne scars, and they are very effective.
If you are still suffering from acne and would like to have permanently clear skin within 3 days by getting to the root cause of acne, there is a method that you can use. Find out more information on this at www.acnefreeindays.com.

BY:Ericka Jarvis

Business Ethics and Unethical Practices

The study of business ethics and its implications for different stakeholders have seen tremendous growth in the past few decades. There has also been a rise in the use and development of codes of ethics and announcements for ethical practices by many firms; however companies are still criticized for their unethical practices at different levels (Papers4you.com, 2006). Business ethics, according to the literature has been entrenched with the philosophical details of Ethics (Trevino & Nelson, 1999). Ethics has been defined as the activity of examining the moral standards of a society, and asking how these standards apply to ones life and whether these standards are reasonable (Velasquez, 1998; p. 11). The literature on business ethics is divided on its views about the motivation and reason for businesses to have an ethical dimension. Drawing upon Harrison (2001), there are two major schools of thoughts, firstly those who suggest that firms are profit generating institutions and therefore business ethics is yet another way to attract customers, secondly those who support corporate conscience and intrinsic motivation for the adoption of business ethics. Business ethics has been considered very subjective in nature and according to Paul (2001) is considered a function of time and culture. It has been established that with the passage of time business ethics have evolved and also that the cultural values and norms drive business ethics within national and regional boundaries. One of the major studies regarding the national values has been conducted by Hofstede (1983). According to this research, which was only based on four indicators i.e. individualism, power distance, uncertainty avoidance and masculinity, there is a great deal of differences among values across different nations and consequently the business ethics. Globalization combined with standardization has made businesses financially efficient but at the same time poses questions regarding the standardized codes of business ethics across national boundaries. Vinten (1991) has divided the business ethical issues at different levels i.e. international business, domestic business and professional ethics. At the international level ethical issues include free-masonry and socialism versus capitalism; at domestic level these include religious dimensions, social marketing and ethical education; and lastly at the individual level these include bribery, corruption and data protection (Papers4you.com, 2006).There are many reasons and criticisms for the failure of adoption of ethics in the business world. Firstly, the concept is considered to be overly theoretical and it also negates the basic purpose of any business i.e. to create shareholders wealth. Secondly, it has lack of direction and unanimity across different cultures and academic groups. Lastly, it has many inherent unresolved dichotomies that according to Sternberg (1994) make it a case of rejected relativism. References:Harrison, J. (2001), Ethics for Australian Business, Prentice-Hall, Frenchs ForestHofstede, G. (1983), The Cultural Relativity of Organizational Practices and Theories, Journal of International Business Studies, Vol. 14, No. 2, pp.75-89Papers For You (2006) "S/B/92. What distinguishes ethical from unethical business activity and how significant are the principles of business ethics in modern business?", Available from http://www.coursework4you.co.uk/sprtbus21.htm [17/06/2006]Papers For You (2006) "S/B/49. 'Should businesses strive to be ethical?' Critically Discuss", Available from Papers4you.com [18/06/2006]Paul, S. (2001), Cultural and Business Ethics, Cross Cultural Management: An international Journal, Volume 8 No. 1, pp 22-35Sternberg, E. (1994), Relativism rejected: the possibility of transnational business ethics, in Hoffman, W.M., Kamm, J.B., Frederick, R.E., Petry, E.S. Jr (Eds), National Conference on Business Ethics. Proceedings from the 9th Conference on Business Ethics Sponsored by the Centre for Business Ethics at Bentley College, Quorum Books, New York, NY, pp.143-50Trevino, L.K., Nelson, K.A. (1999), Managing Business Ethics: Straight Talk about How to Do It Right, 2nd ed., J. Wiley & Sons, New York, NYVelasquez, M.G. (1998), Business Ethics: Concepts and Cases, 4th ed., Prentice-Hall, Englewood Cliffs, NJVinten, G. (1991), Business Ethics: Busybody or Corporate Conscience?, Managerial Auditing Journal, Volume 5, Number 2, pp. 123-144
BY:verena

So you got a Speeding Ticket, so now what?

So you got a Speeding Ticket so now what?Speeding tickets are no fun. If you are pulled over for speeding and issued a citation legally, you do not need a lawyer unless you were also driving recklessly and are also cited for reckless driving. Speeding tickets are fairly straight forward, for the most part. However, depending on how much over the speed limit you were driving and which state you live in, your vehicle could be impounded (typically 40 mph over the speed limit). Additionally in some states, if you are under 18, your license may become suspended. But, if none of these conditions apply to you, you have the right to do two things: either pay the ticket, usually through mail, or else dispute the charge against you. After becoming aware of the law, I learned that anyone who pleads guilty on speeding tickets where they were cited for not speeding at all or cited for not going too much over the speed limit, subjects himself to unnecessary punishment from the law, since most speeding tickets of this type can be dismissed. I had a friend who was once cited for speeding when he was not and decided to fight the ticket.So how do I fight a speeding ticket if I don't think I was speeding?Courts do not like to waste time and taxpayer dollars on petty crimes. To dispute a speeding ticket, you must within 10 days in most instances either sign the portion of the ticket that says "not guilty" and mail it to the place where you would send the payment for the fine or write a letter of dispute with the ticket number included in the letter, as well as your reasons for disputing the charges. In the written dispute, you must include ticket numbers, the date the ticket was received, the act and section of the defense, and your personal information. Thus, it depends on the state, but for the most part, states have a writing address where the dispute can be mailed. Check with your local county clerk to learn where to mail the dispute form.After you have completed the dispute form, you will then wait to hear from the proper authorities, which will mail you a letter stating the date that your hearing will start. Make sure you attend the hearing and try to be at the courtroom at least 15 minutes prior to the start of the court hearing.When the judge or district magistrate in some cases asks you how you plea, make sure you plead not guilty. He will then ask you to tell your story. As in my friend's case above, he simply told him what had happened. He told the judge that when he saw the cop he looked at his speedometer and he was only going 35 mph in a 35 mph zone. The cop had cited him for going over 45 mph in the 35 mph zone. The cop was there and he conceded. At this point the judge will decide if your case is worthy of continuance and may possibly throw out the case or in the case of a district magistrate will decide your case; otherwise, in the case of a judge, you may be summoned to appear at another hearing at which your case will be decided.
BY:Dick Web

For the Love of Charity! The Economics of Parasitism

This morning, as I emerged blinking from Chancery Lane station on my way to work, I was confronted by a young lady sporting a nylon tunic emblazoned with the words Every Child and a fat clipboard full of Direct Debit forms. As I approached, she began to play out some ridiculous dumb show of desperation worthy of the sad clown in a cut-price circus and entreating myself and the guy walking immediately ahead of me to Pleeeeeease stop and talk to me! in pathetic, can-I-have-a-pony-Daddy? tones. In response to her transparent and two dimensional plea, I fixed on my best chugger-proof thousand yard stare (they cant catch your eye if you look through them!) and trundled blithely on. My fellow pedestrian, however, felt no such need for reserve in his response, calling out loudly theres a good reason why no-ones talking to you, love, its because youre a f***ing parasite!A crass and imbalanced response to a kind-hearted soul trying to make a difference, you might say; a callous dismissal of the efforts of a good, honest individual to make a difference to the cruel world we live in? Not so, say I! Let us take a moment to examine the economics of this new, self-made industry sector and see if there might actually be some mileage in this young mans claim.Some years ago, whilst I was still at university supplementing my student by loan working in a bar up to five nights a week and living in a shared house, one of my then housemates came home announcing that she had found an amazing job which allowed her to work just one day a week and bring home more money than my five bar shifts used to earn. Intrigued, I asked for more details of this wonder job and sat back as my housemate launched into a breathless account of how she and her fearless new colleagues were out to save the world. Firstly, she gasped, in a froth of self-congratulatory altruism, the best thing about the job is that its working for charity! So far, so good I thought; charity is good. Basically, you go out with a team of people and you talk to people in the street and you ask them to sign up to donate money for your charity. Which charity is this? I asked. Oh, it could be a different charity every week, we work through an agency she replied. At this point, alarm bells began to ring.To cut a long story short, it transpired that my housemate was being paid around 9.50 per hour to stand in the street, harassing the general public into surrendering their direct debit details and donate to charity making, over a ten hour shift a daily total of 95, which was a pretty damn good take home for a days work for a 20 year old student. Add to that the fact that employment agencies of any sort levy a charge on top of this daily wage to the employer, in this case the charity, which can easily be equal to or even in excess of the actual wages paid to the employee. Lets be generous in this case and assume that the agency in question charges 30% on top of wage charges. That leaves a daily cost to the charity in question of 123.50. After a rushed mental calculation, I exclaimed to my housemate wow, you must have to work really hard to pay for yourself; how many are you expected to sign up in a day? One she replied, at least while were new to the job, later on youre expected to be better at it, the really good ones get four or five in a day!. Four and five in a day sounds like a pretty low rate considering the cost; how much are these four or five people donating?; about 3.50 a month on average. I was gobsmacked! I couldnt help it, the calculator came out.I hate to piss on your parade, I said, five minutes later but at one signee per day for 3.50 a month, youd need to work for 35 days straight, or seven full working weeks to bring in enough revenue from initial payments to pay your wages for a single day. To put it another way, the one person that you sign up today has to maintain this direct debit for just shy of three years before what you did today becomes profitable for the charity that hired you. I fail to see how this is a good thing you are doing.Two days later, my housemate returns from a second shift chugging, we are raising awareness she says, increasing the public brand visibility of the charities we work for. Sure you are, youre raising my awareness of the fact that people in nylon tunics are to be avoided; youre raising my awareness of the depths to which unscrupulous agencies and cash strapped students will stoop; youre raising my awareness of exactly how much voluntarily donated cash intended for charity use gets siphoned off into the pockets of middlemen and smooth talkers. I fail to see how this is a good thing!If you really want to donate to a charity, do it via their website.
BY:Croydon Hounslow

Corporate Social Responsibility - Dr Shanker Adawal

There is bondage- human bondage. There are customers, employees, shareholders and the neighbours. The business class should render their support to the general people. If they will be uplifted socially and economically, the productivity of the corporate is also bound to increase.The corporate sector in India very often blames the government for poor governance and lack of farsightedness. The question that comes every time into mind is, do the corporate sector performs its duty to contribute to the overall growth of the country? Does it have right to blame the government for poor governance? Does it contribute to nation building?In India, most of the corporate do not have a clear policy on social responsibility. While developed countries like England have separate ministries to look after the issue of corporate social responsibility, in India, the government does not have a clear policy on the issue. Out of very few companies who contribute to the social development, the basic intention was not to ensure the good of the nation, rather a business policy to stay away from the tax net.The corporate and the government should try to build up a relationship between the business and the society. The concept of corporate social responsibility (CSR) has so far failed to take deep root in India because the nomenclature is not properly defined. The CSR is in a nascent stage. Much needs to be done to bring changes in attitude towards CSR and bring awareness among the corporate about their social responsibilities. The corporate should be made aware about the changing nature of business due to globalization, transformation of market environment and deepening of competition. The market economy has paved the way for enterprise-led development and a new cultural perspective is taking place in Indian business environment that has a strong bearing on social responsibilities.Social responsibility encompasses the sectors like health, education, employment, income and quality of life. It should be binding on the corporate sector to work on the above aspects, which are thought to be primary social indicators. They have enough money to serve the nation on the above segments of the society. They should not forget that if general health of the mass were good, they would have better bying capacity. In 1970, Milton Friedman of New York Times rightly wrote: the social responsibility of business is to increase profits. This view is often held and propounded by those who do not see much merit in companies being engaged in issues of Social Responsibility other than the making of profit. However, increasingly, the profit case, evident indicators that are tangible and the altruistic/ philanthropic/ ethical case, evident in the intangibles are getting blurred. In this context the purpose is to highlight the need for a paradigm shift in the importance of greater investment in intangibles to enhance corporate value. Significance of CSR for IndiaThe ideal corporate citizenship has ethical and philosophical dimension, particularly in India here wide gap exists between people in terms of income and living standards as well as social status.A latest survey by the Tata Energy Research Institute (TERI) called Altered Images: the 2001 State of Corporate Responsibility in India Poll Traces Back The History Of CSR In India and suggests that there are four models of CSR.Ethical modelThe origin of the first ethical model of corporate responsibility lie in the pioneering efforts of 19 th century corporate philanthropists such as the Cadbury brothers in England and the Tata family in India. The pressure on Indian industrialists to demonstrate their commitment to social development increased during the independence movement, when Mahatma Gandhideveloped the notion of trusteeship, whereby the owners of property would voluntarily manage their wealth on behalf of the people. Gandhis influence prompted various Indian companies to play active roles in nation building and promoting socio-economic development during the 20th century. The history of Indian corporate philanthropy has encompassed cash or kind donations, community investment in trusts and provision of essential services such as schools, libraries, hospitals, etc. Many firms, particularly family-run businesses, continue to support such philanthropic initiatives.Statist modelA second model of CSR emerged in India after independence in 1947, when India adopted the socialist and mixed economy framework, with a large public sector and state-owned companies. The boundaries between the state and society were clearly defined for the state enterprises. Elements of corporate responsibility, especially those relating to community and worker relationships, were enshrined in labour laws and management principles. This state sponsored corporate philosophy still operates in the numerous public sector companies that have survived the wave of privatization of the early 1990s.Liberal ModelIndeed, the worldwide trend towards privatization and deregulation can be said to be underpinned by a third model of corporate responsibility that companies are solely responsible to their owners. This approach was encapsulated by the American economist Milton Fried-man, who in 1958 challenged the very notion of corporate responsibility for anything other than the economic bottom line.Many in the corporate world and elsewhere would agree with this concept, arguing that it is sufficient for business to obey the law and generate wealth, which through taxation and private charitable choices can be directed to social ends.Stakeholder ModelThe rise of globalisation has brought with it a growing consensus that with increasing economic rights, business also has a growing range of social obligations. Citizen campaigns against irresponsible corporate behaviour along with consumer action and increasing shareholder pressure have given rise to the stakeholder model of corporate responsibility. This view is oftenassociated with R. Edward Freeman, whose seminal analysis of the stakeholder approach to strategic management in 1984 brought stake holding into the mainstream of management literature (Freeman, 1984). Ac-cording to Freeman, a stakeholder in an organisation is any group or individual who can affect or is affected by the achievement of the organisations objectives.Perception and practices of CSR in IndiaA survey was conducted by ORG-MARG for TERI-Europe in several cities of India in 2001. The basic purpose of the survey was to capture perceptions and expectations (related to corporate responsibility) of the following three sets of stakeholders such as general public, workers (skilled, semiskilled and un-skilled) and corporate executives (head of corporate relation, labour relations, welfare dept. and manufacturing dept. in MNCs, large and medium sized Indian companies).The poll gathered that people believe that companies should be actively engaged in social matters.A majority of the general public feels that companies should be held fully responsible for roles over which they have direct control. These include providing good products and cheaper prices, ensuring that operations are environment friendly, treating employees fairly without any discrimination based on gender, race or religion and applying labour standards globally. More than 60% of the general public felt that the companies should also be held responsible for bridging the gap between the rich and the poor, reducing human rights abuses, solving social problems and increasing economic stability.CSR as business successCSR is considered to be an important aspect of business success through efficient resource management, environment protection, employment, eco-friendly atmosphere, etc.Ashok Khosla, President of Development Alternatives, an Indian NGO, is of the view that sustainability includes sustainable consumption and sustainable production and is thus the responsibility of both procedures and consumers. The CSR is not a one size fits all. The NGOs, citizens and governments must look at sizes, types and locations of companies to explore howCSR can be brought to bear on companies.The civil society is good for business and a tool for advancing corporate take-up of CSR. Therefore, the business should view civil society as being the CSR auditors for business and a friend to business, much like traditional auditors. There are lessons for business to learn from their interactions with civil society that cannot only re-duce risk but improve overall competitiveadvantage.ConclusionThe business of the 21-st century will have no choice but to implement CSR. The sooner corporate houses realize this and aggressively pursue this process, the better off they will be. The laws need to be formulated to help in reinforcing CSR practices.Indian CSR has traditionally been a matter of classical paternalistic philanthropy, financially supporting schools, hospitals and culture institutions. However, far from being an add-on motivated by altruism and personal glory, the philanthropic drive has been driven by business necessity. With minimal state welfare and infrastructure provision in many areas, companies had to ensure that their workforce had adequate housing, healthcare and education and simultaneously the country grows at a fast pace. The CSR should not be merely a statement of intent. It should be made compulsory for the corporate operating in India. This will definitely help in upholding human rights. In this context, the following measures may be made mandatory to ensure participation of the corporate in social development:Incorporation of a section on social actions in annual reports of companiesAppointment of an independent social accounting committee to measure, monitor, evaluate and report impact of CSR in annual reportsSeparate department to look after the CSRPeriodic training programmes and awareness camps to train personnel on CSRLinkage between CSR and financial success should be establishedA certain percentage of profit should be earmarked for social development that should reflectin the annual balance sheets of companies.
BY:Dr Shanker Adawal

Is Terrorism a Part of Globalization?

Is Terrorism a Part of Globalization? In the world today, there is a growing trend in violence, both domestically and internationally, in the form of terrorism. It is present in our everyday lives and in every part of the worldsome more than others. Terrorism takes on many forms and has had an impact on all our lives in one way or another. Whether it affected us directly with the loss of a loved one or an incident we were a part of, or indirectly by heightened security at the airports causing delays, sudden drop in a stock values we own, or emotionally by the countless reports and images displayed by the media, terrorism has affected us all and shows no signs of going away anytime soon. The underlying question then, is what has caused the sudden trend in terrorism? Has it always been around but just not focused on by the media, or has something taken place on a global scale causing the sudden trend? There are many groups and a magnitude of theories on the sudden trend of terrorism. Political scientists worldwide are at the forefront of this investigation. Amongst this group are many differing opinions and theories. One popular theory used to explain the sudden trend in terrorism is globalization.There is another idea that there is an association between terrorism and globalization - groups which commit terrorism from areas where little globalization has occurred leading to a third association between terrorism and globalization, known as a North-South divide. The countries of the North (i.e. United States, Canada, and Europe) are more developed than those of the South (i.e. Africa, South America, India) and since 1980 the economic gap has spread apart tremendously during the accelerated globalization phase. As this gap has spread, westernization or forced norms have taken place. This is due to the fact that organizations, mostly commercial, have moved into these southern areas for production purposes. Many poorer nations are now feeling the double punch of a slowing global economy and political unrest at home. They want rich nations to open their borders to exports of agricultural commodities, textiles and steel. But rich nations, including the United States, arent in any mood to do this - the best way to fight terrorism over the long term is to give young people in poorer nations a reason to believe they can make it in the new global economy.Globalization is also creating enormous economic, political, and cultural losers who have some idea of how the winners are doing which creates more fertile ground for terrorism by exacerbating ethnic and cultural conflict.Interested in this subject? Try this link for more of the same
BY:Nestler

China raises interest rate, bank reserve requirment

China will raise the one-year deposit and loan interest rates by 0.27 and 0.18 percentage points, respectively, to 3.06 and 6.57 percent as of May 19, the central bank of China announced on Friday.
The People's Bank of China will also raise banks' reserve requirement ratio by 0.5 percentage points to 11.5 percent as of June 5.
China will continue to use monetary instruments to maintain macro-economic stability, the governor of China's central bank said at a press conference on Thursday. Zhou Xiaochuan said China may also consider other instruments to maintain macro-economic stability in the country.
Zhou noted that China's macro-economic stability is very important both for the nation and for its impact on the world economy.
In March, China's central bank raised the interest rate by 0.27 percent.
But the tightening policies have largely failed to prevent the economy from becoming overheated. The gross domestic product grew 11.1 percent in the first quarter of the year, compared to last year at 10.7 percent, statistics showed.
Total value of the Chinese stocks hit 17.43 trillion yuan (US$2.27 trillion) yesterday and has likely surpassed the total in household deposits, as money continues to flow out of banks and into the stock market.
In April, total household renminbi deposits dropped to 17.37 trillion, a decrease of 167.4 billion yuan (US$21.7 billion) compared with March. Household deposits may drop further in May as investors are rushing to withdraw money from savings accounts and pump them into the stock market, the Shanghai Securities News reported.

China Scoops Three Titles in Indonesia Super Series

Chinese mixed doubles tandem Zheng Bo and Gao Ling conquered local pair Nova Widianto and Lilyana Natsir in the Indonesia Open Super Series finals Sunday in addition to the women's doubles and men's doubles titles grabbed earlier by their compatriots.
The games were never close and Zheng-Gao quickly ended the final with 21-16, 21-11 to add the fourth Super Series title to their CV in this amazing year for them.
They previously have won in Super Series opening in Malaysia, South Korea and All England, not to mention the German Open.
Credit is given to Gao Ling who also won women's doubles titles in Malaysia and South Korea Super Series partnering with Huang Sui.
Their triumph in Indonesia sends a major blow to the host team as Nova/Lilyana were their only hope in the finals. Never before have Indonesian shuttlers failed to win a title in the home tournament that began in 1982.
The tie was full of pressures because it was the last match of the day, and the last hope for Indonesia, Nova said in a press conference.
But he acknowledged that his side, the top seed in the home event, was underperformed and certainly not in their best play against Zheng-Gao.
In earlier matches at the Bung Karno Indoor Stadium in Jakarta, women's doubles pair Du Jing and Yu Yang beat compatriots Zhao Tingting and Yang Wei 21-8, 16-21, 22-20 to win the first title for China, which filled all five final spots in the tournament.
Bao Chunlai lost to Malaysian Lee Chong Wei 21-15, 21-16 in the men's singles but Fu Haifeng and Chai Yun won in another battle against Malaysians in the men's doubles.
They ended the fine run of unseeded pair Mohd Zakry Abdul Latif and Mohd Fairuzizuan Mohd Tazari 21-17, 22-20.
World's muber 3 Zhu Lin, the reigning champion in Indonesia, failed to overcome more experienced player Wang Chen of Hong Kong SAR and lost in two straight games 21-14, 21-13.
Wang also has beaten world's second best Zhang Ning of China in the semifinals.
It was a disappointing run for China in the women's singles with another early exit of top female shuttler Xie Xingfang in the second round.

Donor Banks Agree to Link Databases

The China Stem Cell Donor's Bank and the Shanghai Umbilical Cord Blood Bank signed an agreement on Sunday that allows people in need of a stem-cell transplant to search the databases at both facilities simultaneously.Officials said the agreement will improve the chances of finding a matching donor and streamline the process.Previously, people in need of a transplant had to search the two banks separately, which caused problems as many people didn't know about the umbilical cord blood bank.Since it was established in 1996, the stem cell bank has gathered data on 700,000 potential donors and provided stem cells for about 600 transplants."Since stem cells from newborn's umbilical cord blood is more primary, the requirements for finding a matching donor are lower than using adult's stem cells," said Yang Hong, an official with the Shanghai Umbilical Cord Blood Bank, which opened in 2004.By Cai Wenjun

Young Investigator Dives into Life on the Streets

While many people try to avoid beggars, Huang Yan uses every opportunity to approach them.The 17-year-old student spent the last eight months researching an extracurricular social studies report by talking to 265 beggars on the streets and in Metro trains and stations in Shanghai."It was an unusual and meaningful experience. It gave me a deeper understanding of society," said Huang, whose 48-page report earned her top prize at this year's Shanghai Intel Adolescence Science and Technology Innovation Contest, one of the city's highest youth awards.The idea for her research came last summer when Huang took the Metro with some British exchange students from her school, No. 2 Middle School Affiliated to East China Normal University.A boy beggar dressed in dirty rags grabbed one of her friends' clothes and asked for money. The incident drew frowns from fellow passengers but it piqued Huang's curiosity.Her first interview experience was memorable, Huang said.She was on Metro Line 2 one night last September when a migrant woman, with a baby in her arms, asked passengers for money.Huang, who had already finished preliminary preparations for her research program, was the only one to give the woman change, and she asked her about her experiences."It seemed that everybody around looked at me as if I were an alien," Huang said, adding that a security guard even told her she was foolish to hand out money.But money was the one way she could get her interviewees to talk. During her research, Huang noticed that most beggars would become wary if people asked too much about them.However, the young investigator said she stuck strictly to a three-minute limit when asking questions."All I did was prevent beggars from getting suspicious about me, so that they would tell me the truth," Huang said.Once, however, she was forced to run when a large man tried to prevent her taking pictures of a middle-aged beggar. The man was also a beggar and may have thought Huang was from the authorities."I prepare myself for running away at every interview."By Rachel Yan

Beijing Considers Smoking Ban in Olympic Venues

Beijing Considers Smoking Ban in Olympic Venues
Beijing is considering a ban on smoking in public areas including Olympic venues during next year's Olympic Games, local media reported.
The Beijing Daily said that according to a draft regulation on tobacco-free Games by the municipal government, smoking would be prohibited at eight Olympics-related areas such as venues, hotels, restaurants, public transport and the Olympic Village, and offenders face a fine of 10 yuan (1.3 US dollars).
But special smoking areas can be set aside in those places, added the paper.
The concept of a "non-smoking" Olympic Games, initiated in 1988, was put into practice in Barcelona in 1992.
But it remains to be an arduous task for Beijing. It is estimated that 350 million people, about 26 percent of the country's population and a third of the world's smoking population, are hooked on nicotine.
China reports about one million deaths from smoking-related diseases each year, and the figure is expected to triple by 2050.

"Harry Potter" Star Turns Down Teen Movies

Emma Watson has turned down roles in US teen movies because she doesn't want to play a rebel.The actress admitted that she is careful about the film roles that she applies for and joked that she won't be following in the footsteps of Harry Potter co-star Daniel Radcliffe, who appeared naked in West End play Equus."I won't be appearing naked on stage with a horse! But I am waiting for the right opportunity for me," Emma is quoted by the Daily Star Sunday as saying.She added: "I'm not a rebel. I usually do what I'm told. But I don't think it is worth playing the role of a teenager who wants to rebel against the world. To be honest, that's my worst nightmare. Auditions are really hard and being rejected is always a bad experience. But I'll keep trying."

Senior Pakistani Supreme Court Official Shot Dead

A senior Pakistani supreme court official was shot dead early Monday at his home in Islamabad.
Local press reports quoted police as saying that four armed men broke into the house of Additional Registrar Hamad Reza in Islamabad between 4:30 and 5 a.m. local time and opened fire on him when he showed resistance.
Police said that the robbers first entered the ground portion of Reza's house where his parents are living and later they went to the upper portion, where Reza was residing.
Raza was critically injured in the firing and was taken to the Pakistan Institute of Medical Sciences by his family members but he succumbed to the gun wound there later.
Raza was working with the government in the southwestern Pakistani province of Balochistan but his services had been hired by the suspended Chief Justice Iftikhar Muhammad Chaudhry during his tenure.
Although the police described the murder as the result of robbery attempt but some people suspected that it might be a targeted killing.
Police said that they had registered a case against unidentified men and were conducting further investigations.
The incident occurred at a time when the country is facing judicial crisis due to the suspension of Chief Justice of the Supreme Court by Pakistani President General Pervez Musharraf on the charges of misuse of authority.
Around 40 people have been killed and more than 150 injured since the violence erupted Saturday in the southern Pakistani city of Karachi.

'American Idol' Withdraw as Emmy Producers

The Emmy Awards ceremony won't be getting the "American Idol" touch after all.
Nigel Lythgoe and Ken Warwick, executive producers for Fox's hit talent contest, have backed out of producing the prime-time Emmy ceremony in September, the TV academy and network said today.
The pair cited their upcoming commitments and current demanding schedule, including last week's "American Idol" charity special and the show's finale later this month.
They will be replaced by Ken Ehrlich, an Emmy and Grammy awards telecast veteran.
"We respect Nigel and Ken's decision and are fortunate that Ken Ehrlich has agreed to return to executive produce his fourth Primetime Emmy telecast," TV academy chairman Dick Askin said in a statement.
Askin broke the news to the academy's board of governors yesterday.
Lythgoe and Warwick said in a statement they "realized that we could not devote the creative energy and time necessary to make the Emmys outstanding" for the TV academy and for Fox, which will air the awards.
When their hiring was announced in February, Fox Entertainment President Peter Liguori said the pair have raised "the creative bar with their innovative work" on top-rated "American Idol" and would do the same for the Emmy broadcast.
The event could use a shot in the arm. Although host Conan O'Brien drew raves, last year's broadcast averaged about 16 million viewers, the fourth-smallest audience ever for the ceremony.
The Academy of Television Arts & Sciences 59th Primetime Emmy Awards show is set for Sept. 16 at the Shrine Auditorium. Nominations are to be announced July 19.
The Emmy ceremony's executive producer has been announced as late as July, so Ehrlich isn't starting out behind schedule.
"American Idol" wraps its season on May 23 but Lythgoe and Warwick plan to remain busy.
Lythgoe, who co-created Fox's "So You Think You Can Dance," is a judge on the summer dance contest series. He's also president of 19 Television, the TV division of 19 Entertainment, the company founded by "American Idol" creator Simon Fuller.
Warwick is senior executive producer for worldwide productions of the "Idol" format for Bertelsmann AG-owned FremantleMedia North America, which produces "American Idol" with 19 Television.

87,345 Chinese became U.S. citizens in 2006

87,345 Chinese became U.S. citizens in 2006For 2005 is 69,967 and 2004 is 55,494.Chinese immigration is increasing to America but I remember reading it's dropping to Canada, anyone know why?http://www.dhs.gov/xlibrary/asse ... t_04vaccessible.pdf

How do American students view China?

I arrived in the United States on March 4 and started my reporting tour entitled "Wired for Change: America's Millennial Generation" running through March 5-18.There were other 11 reporters from Argentina, Brazil, Egypt, Nepal, Nigeria, Kazakhstan, Russia, Saudi Arabia, South Africa, Turkey and Vietnam together with me.The trip is so exciting and informative to me that I have an opportunity to talk with American millennials face to face.What strikes me most is American youths’ attitude toward China and their perspectives on China.One American student told me that he ‘heard’ that China is not democratic as the U.S.. “Why?” I asked. The guy cannot make a definite answer and said he heard that from another guy.It is not a debate on which country is much more democratic, the U.S. or China. The sticking point beneath our discussion is the distance between young people from the two powers to know about each other.As it is known today, bilateral connections between China and America are turning out to be much more solid in the new century. But what media always cover is trade frictions or the currency issue. There are limited channels for the youths from the two countries to know about each other in-death.During my trip in the United States, the news about China is so limited and one relevant story I read is about a Chinese guy who has tried to make pace for his NBA career.One of China’s celebrities American students know is Yao Ming, who plays for Houston Rockets. And they know several Chinese guys who play for the country’s football league.The places they are familiar with are China’s world-famous Great Wall and Forbidden City. What poor guys.What I mentioned may not be new. But I have learned how serious the issue is. The problem is the same as that in China as Chinese students are facing with an increasing influx of American fashion, cartoons, and designed brands but with limited information about their U.S. counterparts.What proves to be another example of limited understanding is that another guy asked me whether there is a Walmart store in China. "Yes, there is and nearly all of giant supermarkets around the world have their branches in China," I replied.

Clothes: Made in China; Cars: Made in Japan

During my trip to the United States from March 5 to March 18, a term which is always mentioned by Americans is 'Made-in-China'.There is no doubt that Chinese manufacturers have made their products flood the American market to make a bundle of dollars. I should say be careful if you want to buy clothes, bags, shoes or electronic device produced by American manufacturers. When Americans talked about 'made-in-China' products, I always replied that I am proud of that because I am a Chinese.But I cannot deny that China lags behind Japan in high-technology products. Facts haunt me for two weeks: On the roads of New York and San Francisco, most of cars running are made-in-Japan by Japanese car manufacturer Toyota. TV sets in the hotels I stayed at are made-in-Japan by Japanese giant Toshiba. Even Japanese restaurants are much more popular than Chinese ones.But I should not be pessimistic. China is making progress and has eyed the huge American market.Americans know Qingdao-based Haier Group. And they have heard of automobiles produced by China's fast-growing Cherry Automotive.I am proud of made-in-china products, definitely but I hope there are more home-made high-tech products flooding the American market.

What is the real solution to America's trade deficit?

This is a pretty good article. If you guys have never read Stephen Roach, this is one of his better articles. The US Congress seems more determined than ever to tighten the noose on China. The issue is trade policy – and the legislative response to America’s outsize bilateral trade deficit with China. The way things look today, bipartisan support for such efforts is deep enough to assure veto-proof passage of tough trade sanctions on a broad array of Chinese products shipped to the US. I continue to believe this could be a policy blunder of monumental proportions. By going after China, the US Congress is playing with fire. US-china trade policy: a flawed "remedy"For starters, this legislative “remedy” is based on seriously flawed macroeconomic analysis. China bashing doesn’t address the real problem that Capitol Hill believes is bearing down on American workers – a multilateral trade deficit that hit a record $836 billion in 2006. Since the Chinese bilateral deficit of $232 billion amounted to the largest slice of the overall trade gap – 28% for all of 2006 and fully 34% in the final period of the year – Congress has concluded that China is the major culprit behind the trade-related squeeze on middle-class American workers. That overlooks one key point: The United States runs trade deficits not because it is victimized by unfair competition from China or anyone else but because it suffers from a chronic shortfall of domestic saving. That’s right, lacking in saving – as evidenced by a net national saving rate that plunged to a record low of 1% of national income over the 2004-06 period – the US has no choice other than to import surplus saving from abroad if it wants to keep growing. That means running current account and trade deficits in order to attract the foreign capital. China turns out to be the biggest piece in this equation not because it is unfairly undercutting American-made products but because its menu of products satisfies the tastes and preferences of a chronically saving-short US economy. China bashers continually overlook the macro context of America’s bilateral trade deficits at great peril.US-China trade policy: consequences of legislationConsider the consequences if Congress gets its way and US trade with China is significantly curtailed: The immediate impact would be a tax on US multinationals like Wal-Mart, which sourced some $18 billion of goods from China in 2006. That would either squeeze profit margins or, if passed through to retail prices, raise the cost of living for American consumers. Over time, if the sanctions were onerous enough, the impact would be to redirect US trade away from China. But here’s where the problem gets especially thorny: Unless America increases its domestic saving, sanctions on Chinese products will do nothing to alleviate the overall trade deficit. The outcome would follow the “water balloon analogy” to a tee – squeezing the Chinese piece would simply reallocate the deficit elsewhere. And most likely that would redirect saving-short America’s multilateral trade deficit away from low-cost Chinese producers toward higher-cost foreign sourcing. Again, that would be the functional equivalent of a tax increase on American consumers. Of course, by going after China the US Congress is also biting the hand that feeds it. China is one of America’s most important external lenders. To a large extent this is an outgrowth of the same currency policy that has US politicians so up in arms – a “managed peg” that has allowed the renminbi to increase by only about 7% versus the dollar since July 2005. To keep the RMB in this range, China must recycle a disproportionate share of its massive build-up of foreign exchange reserves into dollar-denominated assets. As of February 2007, China held $416 billion of US Treasuries – second only to Japan and up nearly $100 billion from the level a year earlier. And there is good reason to believe that the Chinese hold another $300-400 billion in other dollar-based assets, such as agencies and corporate bonds. By continuing to allocate at least 60% of its ongoing reserve accumulation into dollar-denominated assets, China remains an important source of demand for American securities – thereby helping to keep US interest rates lower than might otherwise be the case. In effect, Chinese currency policy is subsidizing the interest rate underpinnings of America’s asset economy – long an important driver of the wealth effects that support the US consumer. Congressional pressure on China could put its bid for dollar-denominated assets at risk for two reasons: On the one hand, if China accedes to US pressure and allows the RMB to appreciate a good deal more against the dollar, there would be less of a need to recycle such a massive amount of FX reserve accumulation into dollar-based assets. Absent such buying, US interest rates could rise. On the other hand, if Washington enacts onerous trade sanctions on China, there is a good chance that the Chinese government could retaliate and order its reserve managers to diversify incremental reserve accumulation out of dollars. In that case, the dollar could plunge and longer-term US real interest rates could rise sharply – a crisis-like scenario that could tip an already weakened US economy quickly into recession. Either way, by imposing sanctions on one of its major foreign lenders, the Congress could be putting a saving-short US economy in a very precarious situation. Nor does the Congress appear to be all that sensitive to the internal pressures that trade sanctions might impose on China or the broader Asian economy. Despite its rapid growth and increasingly important role as one of America’s major suppliers of goods and financial capital, China is still a very undeveloped economy. That’s especially the case with respect to its financial system, dominated by four large banks that are only just starting to go public. Banks and China’s other international borrowers need to be able to hedge their currency exposure – especially in the face of the large exchange-rate fluctuations that Washington lawmakers are seeking. Lacking in well-developed capital markets, such hedging strategies are very difficult to implement in China. A large RMB revaluation could, as a consequence, deal a lethal blow to China’s embryonic financial system
Moreover, there is the distinct possibility that Washington-led China bashing could inflict major collateral damage on the rest of Asia. Contrary to popular folklore, China has not become the world’s factory. Instead, it is functioning much more as the final destination of a huge pan-Asian supply chain – directly involving inputs and supplies from the region’s other major economies like Korea, Taiwan, and Japan. China is, in fact, the largest export market for the first two of these externally-led economies and is rapidly closing in on the US as Japan’s largest export market. Professor Lawrence Lau of Stanford and the Chinese University of Hong Kong has estimated that domestic PRC-based content accounts for only about 20% of the total value of Chinese exports to the US (see Lau’s 2003 paper, “Is China Playing by the Rules?” presented as testimony in September 2003 before the US Congressional Executive Commission). More recent research by economists at the central bank of Finland underscores how shifts in the RMB would reverberate throughout a vertically integrated pan-Asian production platform (see Alicia Garcia-Herrero and Tuuli Koivu, “Can the Chinese trade surplus be reduced through exchange rate policy?” Bank of Finland, BOFIT discussion paper #6, 2007). The US Congress is operating under the false presumption that trade sanctions would be a surgical strike on China. That is unlikely to be the case. Instead, there would undoubtedly be major cross-border spillovers that could quickly put pressure on the rest of a China-centric Asian supply chain.There is a final misperception about the oft-feared Chinese exporter. It turns out that China has become an important efficiency solution for many of the world’s multinational corporations. China’s so-called foreign-invested enterprises – basically, Chinese subsidiaries of multinationals – have accounted for more than 60% of the explosive growth of overall Chinese exports over the past decade. That raises serious questions about the real identity of the widely feared, all-powerful Chinese exporter. It may be less of a case of the indigenous Chinese company and more an outgrowth of conscious decisions being taken by Western companies. Who is the new China – is it them or us?Unfortunately, the US Congress is seeing the China problem from a very narrow perspective. At the root of Washington’s approach are understandable concerns about increasingly acute pressures bearing down on American middle-class workers. But the link between this painful problem and China is based on flawed macro analysis – mistakenly focusing on the bilateral piece of a major multilateral imbalance of a saving-short US economy. As is often the case, one error can beget another, and the real risk is that Washington-led China bashing could trigger a host of unintended consequences – not only taxing American consumers and US multinational corporations but also triggering currency and real interest rate pressures that could tip the US economy into recession. But the biggest tragedy could come from a United States that squanders an historic chance to engage China as a strategic partner in an increasingly globalised world. And if Washington pushes China away, I fear the rest of an increasingly China-centric Asia won’t be too far behind.globalisation isn’t easy. It puts pressure on developing and developed countries, alike. As the world’s leading economic power, it falls to the United States to assume the special role as a steward of globalisation. China bashing is tantamount to an abdication of that role. globalisation may have an exceedingly tough time recoveringBy Stephen Roach, global economist at Morgan Stanley, as first published on Morgan Stanley’s Global Economic Forum