Archive for July, 2009

East Africa Got Cable

Friday, July 24th, 2009
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cable
Creative Commons License photo credit: myuibe

The good news of today was that the first of the long-awaited undersea cables bringing high-speed internet to East Africa went live. So far the connections have been made via satellites, which equals to lower connection speeds and a lot higher prices. I have heard that a connection of 512kb could cost up to 300 USD/month in parts of West Africa, and even then the connection is divided by many users (even though it is not supposed to). However, higher prices are also possible as shown in this example from Tanzania.

The bad news (of the same good news) is that it seems the new cables are unlikely to make the connections for consumers any cheaper. The connections might get faster, which is remarkable already by itself (some say that the use of YouTube etc. has so far been practically impossible), but most of the ISPs (Internet Service Provider) have not made any commitments on bringing the prices down. However, for businesses the prices are going to get cheaper, even as much as 80% (how is this possible that it only includes businesses..?). Thus, at least in Kenya, it is hoped that it will be the cyber-cafe owners who will pass the benefits to the consumers.

I think its great that more people can connect, because the web can truly be a useful tool in development and not just an endless well of sex, entertainment and useless information (not that there is nothing wrong in those either). Therefore, if this new cable brings connection to schools and other useful entities that is just superb. However, I think it is just as important to get the average consumer into the picture as well, but with a monthly price tag of 300 dollars I do not see that happening (I could not afford it myself), and the exclusion between some and the others might just get bigger.

With so many people without connection in Africa I fail to see why lowering the prices would not make a viable bottom-of-the-pyramid market for the ISPs? Furthermore, should not the competition take care of this automatically or do the ISPs pact among themselves or run by state-owned or state-linked monopolies (which is kind of what is happening in Spain with Telefonica)? Or is it just that people do not have the gadgets (computers, mobiles etc.) needed to access the web, and that is why the hope lays upon the internet cafes?

Interesting to see however how things turn up though. As a slightly depressing point of reference, it has been said that the cable in West Africa did not fulfill its promises, at leat not entirely. Moreover, I do not know how much the new cables help the inland countries, is there the needed infrastructure in place to take the connections further? In any case, at least one of the items blocking high speed and reasonably priced internet connection is out of the way. Furthermore, if nothing comes out of this one, other initiatives to help the situation are underway as well. It is just that with a little more pacience and little less “hasty” greediness already this one might hit the target.

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Voting Time

Thursday, July 23rd, 2009
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I do not really know what to make of this. I suppose every country has its own political culture, and I have heard that “debates” like these are pretty commonplace in the South Korean parliament. If nothing else, these representatives take the issues seriously, it seems pretty clear that none of them is in politics just for the sake of a big salary and a nice pension plan.

As you can see from the video, it is not just some shouting and pushing that takes place, they really are on each others throats, there is even one guy launching him towards the podium as said in the report. Furthermore, not only the men but also the women are all at it as well. It is also likely that at least some of the participants have real skills taekwondo being the national sport and all (even though it does not really seem so in the video).

It would have been interesting to be  a fly on the wall, I mean who were for example the brains behind the idea of blocking the doors with the table? I also wonder about the next day, do they all just sat down for a coffee and say “well, I think we all overreacted a little”, shake hands and go on with their everyday parliamentary work (whatever that means in this case…)?

In any case, I dont know if I would like to see this happening here, I am doubting whether this is a very constructive way to decide about things. I am not really sure if this would fall into the category of democratic debates either. Then again, it could be a breath of fresh air in the everyday boring routine. One thing seems sure though, the department of propaganda of North Korea is going to make at least 3 “Wippiis” with this one.

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Quality did go out of style

Wednesday, July 22nd, 2009
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cuttingboard

The opposite of the title use to be the slogan of the famous jeans and clothing maker Levi Strauss. However, the company reported 4 million dollar losses last week. Few weeks earlier, Swedish retailer H&M announced a rise in profits for the second quarter. H&M’s countryman, IKEA, is not doing that bad either, specially if considering the crisis and all. And what is it that these three have in common? Well, let’s just say that if Levi’s is and was more about quality, H&M’s and IKEA’s charm has traditionally been somewhere else.

Even though it may seem so, this is not (all) about an envious Finn whining about the success of his neighbours. In fact, an opposite example can be found from Sweden as well. Take Saab for example: it at least used to make cars that, on my opinion, had a performance-safety-quality-whatever relation superior to any other car maker. However, they were and still are in danger of becoming extinct. The point is that quality does not sell, it is the very opposite that does.

One might argue that it is all about price. That definately has something to do with it, specially in the time of crisis, but overall I think it is more about the need to consume and all the things that come with it.  Consuming is not just consuming, it is so much more. It is time for oneself, to feel good about oneself, a moment of personal therapy, an opportunity to change completely, a chance to be part or even one with the world of brands, products, flashy lights and shiny stores. For many consuming is what living is all about, that is, consuming is in some cases equivalent to living.

Naturally, the horrible thing is when there is no need to buy anything. It is not that it would stop people buying, but shopping is nicer when there is a real reason for it. If clothes, furniture etc. last forever, that reason becomes absent for a very long time. Eventually buying many cheaper things is likely to become more expensive than buying one of quality, but with one it is always the same, and people end up lacking the thing that they like the most and even defines who they are.

Thus, quality has become an enemy. It denies people their purpose of life. It does not allow them their little moments of pleasure, it takes away their possibility to renew themselves and leaves them isolated and lonely. Brands and products that help consume by giving more opportunities to consume are therefore much needed. That is also the reason why these brands and their owners succeed. Furthermore, they do so with low cost. Quality often means not only higher prices but also higher production costs. With less quality it is totally the opposite. Aside from maybe the environment, almost everybody, meaning the companies and the consumers, wins, at least for the moment.

I suppose consuming for the sake of consuming started with the cheaper things, such as clothes and small household items etc. Therefore, the interesting thing is how far will it go? The crisis might have cooled things down a little bit, but there is no reason why things would not continue going to the same direction afterwards. Maybe cars which dont last longer than few years are going to be next big thing. Then again, why stop there, when there are so many other things that one can consume and brighten up the day?

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Lovely Statistics

Friday, July 17th, 2009
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Having attended a few classes of social sciences myself I have become aware of the distinction of people favoring more the use of quantitive analysis and the ones of qualitative analysis. Both of them have their place though, and in many cases the best way to achieve meaningful results is to use both of them. In social sciences it often seems to mean the use of quantative analysis as a topic indicator, that is, it shows the topic worth researching for. However, to find out what has really happened or what are the real reasons behind different phenomenons qualitative analysis is needed, otherwise it might be difficult to get to the very root of the issue. Having said that, opinions vary, and ultimately it depends on what is it that the research is trying to find out.

I tend to be inclined more towards the qualitative research, and see for example the case of the “shocking” report by a young intern at Morgan Stanley more as one where, on the side of MS and its clients, there has been too much watching numbers and too little understanding on what is going on in the real world (all the credit to the report though).  However, the problems qualitative analysis often encounter are also numerous, at times it is a bit messy and there is always the question of generalisation. Furthermore, sometimes even the researcher does not know in the beginning what is it that he is actually researching, eventually the research question (and hopefully the answer) stems out of the research material.

That is why the clarity of quantative analysis can be so telling, useful and plain nice, with the condition that it is presented in a good and clear manner. That is also what Hans Rosling does in his Gapminder-website, and as a proof of that I place an example of one of his videos above (there is more on his website). By putting together few pieces of data he is able to bring up an interesting, and in certain way irrational, linkage between diseases and media coverage. The question on why so seems a rather typical one left to the qualitative side to answer, but then again, I would not be surprised if a little more statistical digging took this research topic a big leap forward as well. In any case, Rosling’s videos are almost addictive, which is something that statistics is not generally known to be.

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