Monday, February 29, 2016

Please Stop Trying to Be Silicon Valley

Everyone wants to be Silicon Valley these days. From cities to countries, people keep claiming this or that is either going to be "the next Silicon Valley" or "the Silicon Valley of such and such region". In fact, some economic powerhouses (Taiwan and Japan have been mentioned) are willing to sacrifice their current industries to jump on the software bandwagon. The allure of pretty screenshots and massive market caps of Google and Apple and the likes prove quite irresistible.

Frankly, this saddens me from time to time. I am really really ticked off when people from developing countries (India is often mentioned, but some other countries too) assert that software and Silicon Valley model will somehow lift them off poverty. I mean, it's their countries and cities, so I don't want to be rude. But, really?

Development of a powerful software industry has quite a few drawbacks. Those are:
  • Software is a non-essential product. In other words, you can't feed people with software; you can't shelter people in software; you can't warm people with software. This means that even if a region gets rich doing the web, it may still have food, clothing, and shelter shortage. In fact, Silicon Valley has quite a shelter shortage right now!
  • Software requires high level of technologies to boost productivity. This is less obvious than above, but holds just as much importance. Let's say that if India wants to improve its food production capacity with software. Well, that requires farmers to use systems that can run these fancy software. But if the farmers have those systems, India would not be a developing countries.
  • Software does not require much. This sounds like a good thing, but it's not. Because it is so easy, infrastructure are not properly built. India, again, stands as example. For all of those booms in software and service outsource, Indian infrastructure, including essentials for software system like internet, is still patchy. Driving toward Silicon Valley, thus, will not raise the bar for the whole economy; it will only create a few newly-rich.
  • Software increases economic dependency on outsiders. It, after all, needs hardware to run, and hardware industry is something totally separate from software. More subtly, its output also depends on outsiders. See 2nd point above: for developing countries, other industries can't readily take advantage of the new software, so the industry would be stuck doing dirty works for foreign corporations.
  • Software has low barrier of entry. This low barrier entices cities to be Silicon Valley. However, it also invites massive competitors. This means that hard-fought economic edges can vanish overnight. Furthermore, this also means that there is a strong drive toward lower prices, which reduces the economic gains for the successful cities.
Thus, a country can't get rich doing Silicon Valley. In fact, I have doubt if a city can stay rich doing Silicon Valley, given how hard-won economic edges may be taken away easily.

So, what should a city drive for?

First, finance. You know, 2008 really gave banks and financial services bad names. However, finance underlines an economy. As Niall Furguson argued in The Ascent of Money, every economic revolution is preceded by a financial revolution; every super power is preceded by a financial center. In fact, Silicon Valley's real miracle is its financial prowess. These days, people talk about venture capitalists and investments and such, but they forgot how revolutionary these things are. The investors essentially take strangers' money, then give it to other strangers, some of whom are twenty-something with nothing more than a good presentation. Humans, by nature, distrust strangers. And yet, just look at modern American financial arrangement.

Thus, more cities should aim to be New York, London, and Frankfurt. Such move would lay down the foundation for all other industries. It also fosters better, more connected, more trusting societies. After all, when one can trust the whole life saving to others, one learns how to judge people by more than bloodlines.

Second, agriculture. Food is the foundation of human progress. Cheap, abundant, and nutritious food fuels people to grow, to work, to innovate, also to learn, to love, to explore, and to make better lives. Improvement in agriculture not only nurtures the consumers, but also the producers: they can aspire to compete on a global scale. It also brings food and economic independence to developing and crowded countries. Agriculture is also likely to encourage development of other industries. For example, farmers require financing (eg. loans and mortgages), machines, stocks, refrigeration, transportation, etc. Each of these has its own requirements (eg. making machines need metallurgy, casting, steel, etc.).

By the way, agriculture does not need to be low tech. Biology engineering, breeding, environmental research, chemical engineering, and gene engineering are vital players in production of agriculture. Storage, planning, and transportation of the products require further modern technologies and innovations. Marketing, consumer education, brand building involves modern media and communication channels. Agriculture has been with humans for a long time, and will continue to do so for imaginable future. As such, it can scale up and down the technological scale without any issue.

Third, hardware and robotics. Now, software is a silo industry, which does not drive the development of other industries. On the other, hardware and robotics demand much more. To produce chips takes a lot of precision. To produce them at scale require massive investment in infrastructure, building, and technologies. Also, different from software, hardware needs serious financial investment. And, finally, hardware and robotics enable much more than software. Well targeted, they (with the virtue of being physical) can be employed in different fields with minimum extra technology investments.

Finally, I think more places should pick up the lead in energy innovation. Our modern world survives on electricity. However, we have yet to find anyway to produce it without ruining our environments. Plus, transportation of electricity is quite inefficient and requires intensive maintenance.

Energy production will probably encourages financial investments (did I mention that finance underlines economy?), chemical engineering, physics, probably precision engineering, metallurgy, etc. It also provides the foundation for modern lifestyle and the foundation for modern industries. It also provides energy security and independence for its host countries. An excellent choice.

All in all, there a choices. Interesting choices, compared code and software. And I for one sincerely hope that people will look beside the latest trend for their hometown development.

Saturday, February 27, 2016

Is GOP still a Serious Political Party?

Once upon a time (as in, when I first arrived on this shore), I had these images about Democratic and Republican parties: the former as young, hippy, and dreamy group, while the latter as a band of suited, serious people dealing with the real world. Lots of cues reinforced such images. GOP, after all, stands for "Grand Old Party," which is quite odd given that it's the younger of the 2. GOP, on average, consists of older, more educated, more "traditional", more religious, and wealthier (thus more likely to be in leadership and professional positions) than its competitor. There are proverbs that celebrate the supposed seriousness of GOP and caring of Democratic party, such as "if you are not Democrat before 30, you have no heart; if you are not Republican after 30, you have no brain."

The last few years, though, my impression has changed quite radically.

Let's start the with the presence, as in, the last "big issues" of the 2 parties. As of today (02/27/2016, if anyone keeps count), the last big events of GOP have been Gov. Christie's declaration of support for Mr. Trump, the debate in Texas, and the show down over (potential) Supreme Court appointment. The last big events of Democratic party (not counting the running primary) were Senator Bernie's economic plan and constitutional duty of the president in Supreme Court appointment. Alright, the last of entries of both are 2 sides of the same coin: Democrats want to at least a pretense of regular constitutional process, while Republicans want to shut out the other side. Let's analyze these events, shall we?

If one reads on Republican events (except maybe the discussion over Supreme Court appointment), one can be forgiven to think that this is a teenager dispute. Let's see, Senator Rubio ridiculed Mr. Trump of sweating, and Mr. Trump shot back that the Senator was low life and used quite a bit of make up. Huh? I mean, huh? It's understandable that there was a show going on. However, is this how serious people do civic discussion? I mean, how old are those men? 16? Wait, sorry, my school discussion at 16 was more serious that that. This resembles 12 year olds trading verbal abuses. It makes me feel ashamed to host such joke in my supreme legislative body.

Talking about legislative body, i.e. the Senate, it's not doing so hot right now. You know, I heard of something called "saving face." It means that you don't burn bridges: even if you disagree from the beginning, you still give your opponents the courtesy of polite listening and consideration. I mean, those Republicans keep bring up Vice President Biden's quote from 1992. However, that very quote shows the difference between grace and bridge burning. Then Sen. Biden said, "I highly recommend." There was a shed of grace left for his opponents, that they did have option to ignore a recommendation. Sen. McConnell leaves no such consideration. He simply refused his constitutional duty and refused the president his constitutional power. Is take-no-prisoner the way we should treat our fellow colleagues? Is take-no-prisoner the way we should treat our fellow citizens?

On the Democratic side, the discussions were radically different. The arguments over Sen. Bernie's plan focus on actual policies, not sweat and make-up. The arguments are almost put forward as "well, we do want that, but this plan is..." In other words, the attackers showed respect for the attacked, even conceded good ideas. The arguments are laid out in thoughtful opinion and academic papers. It feels like a discussion, not a school brawl.

These events are just proxy to the whole election cycle as a whole. News on GOP side seemed to be generally about characters and their blusters, such as debate performance and unrealistic plan to bomb far away areas. News on Democratic side has been around policies, trust worthiness, and party loyalty, which are generally more civic than their competitor. It seems that GOP is not having a civic and political debates. No, they seem to instead having a reality show about who can make the most outrageous utters and who has more testosterone.

But, then, again, what would one expect? After all, at least a third of Republican party at this point support a candidate who condemned a whole country (Mexico) as criminal, regarded the largest religion in the world (Islam) as terrorist, insulted the Pope (I mean, seriously!), praised torture (I kid you not, he said that torture worked and therefore is acceptable), and generally made mockery out of his country. If this was not bad enough, his biggest opponent tried to out-do his immaturity rather than to remind the fellow citizens what American Exceptionalism is about. The uneducated, misinformed, and recession-stricken citizens can be pardoned for their ignorance, but it's just impossible to pardon the representative whose job it was to ensure national prosperity, liberty, and dignity. What do people think of U.S.A. when a serious contender of her highest leadership insulted her neighbor and insulted the Pope. I mean, come on, He was the Pope. Can we not pay a bit of respect to that?

But, then, again, what would one expect? GOP greatest aim has been to illegitimize their country first citizen by any mean necessary for the last 8 years. What kind of citizens who prefer their country's bankrupt to losing election? What kind of citizens who prefer purity of ideology to functioning government? What kind of citizens who prefer the downgrade of their country worthiness to changing their ways? What kind of citizen who prefer wasting time on a law that has been approved by all 3 branches of government to functioning civic government.

What kind of citizens are those?

I used to think that GOP had a few bad apples. But look at their primaries and caucuses. Bad apples are not the problem. Bad apples have dominated the norms, and good apples fought desperately to save the soul of their party.

At this point, I must ask: is GOP still a serious political party? Or is it simply a dangerous game show that bored Americans play?

Saturday, February 13, 2016

Battle Order of Liberty

As I read news about various attempts to modernize Middle East, one disparity jumped out. Often, the West would celebrate every bit of cultural and legal progress, yet there was preciously little news in the economic front. In fact, if anything, the West (especially the US) actively works to reduce importation of the region's most important product, oil. For example, American-led forces occupied Afghanistan and Iraq for almost a decade; from this, we seem to only hear news like woman education, election, and such, yet we rarely (if ever) seen anything "Made in Afghanistan" or celebrate, says, completion of a factory. In my humble opinion, this disparity is the very reason for the failure to establish a stable, self-sufficient governments and societies in these countries.

Before continuing, let me clarify something. I think that social and legal progresses are extremely important. The subjugation and debasement of women in those society are completely unacceptable. Education and election anchor stability and modernization. I wholeheartedly believe those above points.

That said, order of execution also plays a vital role in success and failure. In fact, for state and society building, it is among the deciding factor. It's like treating a sick patient. The same set of actions in wrong orders pretty much guarantees a patient's demise. In fact, a right order (eg. test reaction to a drug before administrating it) prevents wrong actions from happening. Same thing here. Sure, we will need to liberate women and stop human trafficking and such. However, do we need to do them first?

There are 2 reasons why this order (culture first, economic second) cannot work out. First, it destabilizes and, in some cases, outright alienates key stakeholders of the society. Second, it can be (and actually is) perceived as belittling the identity, culture, history, and dignity of these societies.

Let's start with the more eminently understandable reason: destabilization and alienation of key, powerful stakeholders. The stakeholders in question are the male elders of these societies. Remember this, so long as a region is not in an all out war, so long as some degree of order and stability is in place, there exist people who prosper and hold power. Furthermore, these people will recruit at least a sizable minority as their minions through shared privilege. For example, in a military dictatorship, the dictator himself (or herself, but female rarely reaches there) and the generals prosper and hold power; furthermore, they also buy support of the army through shared power and dignity (right to abuse civilians, says) and resources (food, weapons, pay, etc.).

In Afghanistan, the rulers are Taliban head honchos and local warlords. They also buy support of many men by giving them (the lesser men) moral superiority and power over their families. For those men, these both appease and chain them: on one hand, it feels good to be told how righteous you are, and it feels good to lord over some other people (i.e. your wives and children); on the other, these men "had" the privileges, which mean they could lose if the regime lost. Humans naturally have a bias against loss. This means that a new regime must give these men more than these privileges (roughly twice more?) for them to feel well compensated.

Fast forward, and we have American invasion of Afghanistan. From Western eyes, this was an act of justice: an international coalition taking down a terrorist organization and establishing order, justice, liberty, and democracy. Probably from Afghan women's eyes, it was a progress: they could now go to school and debate and vote.

However, how does the invasion look through Afghan men eyes? Now, I am clearly not an Afghan man whose life was disrupted by the invasion. However, I can conjecture of what such men may feel. Compared to, says, the women, who at least gained new, significant, day-to-day rights, what did the Afghan men get out of the invasion? Their fragile (violent? terrorist?) order was shattered; their lives and limbs were in danger every moment, awake or asleep. More importantly (because the above 2 points might or might not already happen under Taliban), their rights and privileges over their families were ruined, and whatever livelihoods they had accumulated burned with the bullets and bombs. And what did they get? About nothing. Sure, they can vote, but given that they had not voted for centuries, given that vast majority of election fairness was questionable, what does voting right really really gave them? Furthermore, corruption still ran rampant, so whatever new justice and political systems would not help the regular men anyway.

In other words, Afghan men saw nothing but loss from the invasion. Obviously, there are theoretical ways to counter this. The easiest of which would involve quick building of an economic base. Giving a person a (relatively, of course) decent job means more than just extra income and reduced poverty. It also means giving that person stake in the system. It binds such person with the success and survival of the economic and social way from which the person derives necessities and comforts. However, as said earlier, such news never seemed to come. This disparity means that the men would (women, one may imagine, have more concrete gains) have no stake and much loss. What else would such person do but rebel?

Now, to make the matter worse, men make up roughly half of the population. Furthermore, the cultural conditioning of the region gives them extra respect and importance. This means that their social weight was, at least, more than half of the countries. And the invasion very well pissed them off. So much for liberation.

Of course, I have been talking about Afghanistan, where a terrorist regime rule. Iraq must have been worse. Iraqi government was stable enough to briefly invade Kuwait. Such actions meant that Iraqi internal stability and economic development must be at least higher than Afghanistan. And what do the key players of this country, i.e. the men, get out of the toppling of their government?

So, economic weighting of gain and loss already put the interventions at deep risk. However, there is another factor to all of those social, cultural, and legal reforms. It pretty much guarantees the hostility to the invaders (i.e. "liberators").

Before weighing gain and loss, before debating liberty and slavery, as far as a local is concerned, such reforms are foreign. Foreign in 2 senses: first, foreign because these societies are not well-prepared to implement many of these reforms; second, foreign because the reforms themselves come from a different cultures. The first sense of foreignness, with appropriate determinism and resources, can be overcome. The second, though, is much much harder.

My opinion is that Americans generally are not well versed with the psychology of strangers imposing their ideals (usually at gun points or after destroying indigenous regime). However, for the imposed, this is a slap in the face. Well, maybe more of a spit than a slap. The slap is probably the forceful destruction of their local regimes. After all, the invaders are telling them that their cultures are terrorist, sexist, evil, and generally beneath contempt, and that they should (I meant, must) adopt this new set of ideals that they can barely comprehend. How would you feel if somebody tells you that?

Obviously, there are various (again, theoretical at this point) ways around this. The most obvious way is to through timing. If, says, a group of Iraqis successfully topple their current regime under the banner of liberty and democracy (which is essentially what the Arab Spring was about), Western government can rush in with resources and help. Because the change started within and is represented by the same people of the same culture speaking the same language, the ideals are more likely to be accepted.  The second way involves making these culture a part of a the invaders, then convert them over. An example would be to make Afghanistan a developed country, then tell them, you know, developed countries don't treat their women like that. I am pretty sure this is what European Union is about: to integrate Soviet sphere into the West, then to change their minds to adopt Western culture.

Either way, it's important to make the people feel like they belong with the invaders, to make them a part of the coalition, and to give them concrete gains. The lopsided victory of culture changes over economic improvement acted reverse of this. They first stripped a sizable chunk of the population of their privileges, then humiliated their culture and dignity, then lectured them on how to socialize and behave. Such a great plan! And some Americans actually expect the locals to welcome them as liberator. Sometimes I wonder what Bush and co smoked when they plan for Iraq.

Then, what of women liberation and fair election? Are they not worthy of implementation as soon as possible? I am not a woman, so I can be tactless here, but rushing in only hurt the local women in the long run. Remember, things don't disappear just because the laws ban them (like domestic abuse; it happens even in the US). Corrupted laws ban practically nothing. As such, there are a couple of (again, stressing this, theoretical) ways to implement these cultural and sensitive reforms.

First strategy involves step-by-step changes. The change can start with banning the most outrageous and hideous practices (like stoning to death or public beheading or such) or allowing/encouraging the most innocent steps (like free primary public education with sex segregated). Once the first step can be enforced properly, then the next step, slightly more aggressive step, can proceed, like banning child marriage. Then the next step. The idea is to change slowly to avoid backslashes.

Second strategy involves education, but a special kind. In Vietnamese, it's called "new wine in old bottles." The best English translation would be "wolf in sheep's clothing." Sounds bad? It is quite trickery, but not all bad. The strategy is to educate new ideas through existing and respected channels. I think "Iraqi security forces" are good example: instead of having white people shooting down Iraqi rebels (the rebels are terrorists, but they are Iraqi, so will raise Iraqi sympathy when shot down by outsiders), let Iraqi police hunt down Iraqi criminals. Similarly, there are various channels whose usage I don't see. Why don't we send progressive Islam preachers to Afghanistan and Iraq? I actually mean that. Some Americans seem to link "Islam" with "terrorism." However, it needs not be. Islam actually has a much more tolerant history than Christianity (mostly because empires in Middle East had to deal with more diverse population than, says, Holy Roman Empire). Or, mass sponsor Middle Eastern students to study abroad with contract to work in their home countries. Or, buy off (seriously, just buy them off) war lords to implement progressive reforms. The point is: do not call attention to the new ideas; cloak new ideas in old forms, languages, social structures, and rituals. That way, the locals may actually evaluate them rather than just reject out of principles.

Third strategy is out right trading: do this and we will give you that. Note: "this" and "that" must be chosen very very carefully. We want to appear belittling the invaded cultures and traditions. Furthermore, we want to establish long term relationship, not one off actions. A good way of trading, by the way, is to give first, then implement requirement. Remember human nature: we bias against loss. Thus, if we start with, "you do this first," the other party may walk away. Instead, we can say, "well, here is some privilege. Like it? OK, now you need to do this or we take it away." It's hostage trading, essentially. And what's the easiest commodities for trading? Economics, of course. One can imagine a factory who pays well, who then demands that all employees must send their children (girls and boys) to schools. Economic venues (factories, shops, offices) can also be political, educational, and cultural venues. It's the same even in the US: offices usually have billboards filled with cultural and leisure opportunities.

All 3 strategies above share a few important traits. First, they don't blatantly celebrate changes that may seem scandalous to a sizable (not necessarily majority, but numerous enough to disrupt socially) demographics. Second, they ensure that changes always come after buy-in: changes are applied to stakeholders, not "the people." The goal, as stated above, is to avoid rejection out of principles. Good ideas are only good if they are considered. Rubbing things, no matter how good, into people's face will get rebellion, not cooperation.

Thus, justice and liberty require a battle order. No one embrace outside invaders with open arms for long. No one like to see their identity and culture invalidated and held in contempt. No one fight for social and political orders to which they don't belong. Respect, buy-in, and shared progresses will help root progress. Lack of those, and progressives are at perpetual risk of beheading.