Monday, May 19, 2014 A13

Wrong track Outside influence Alice Wu says network glitches and construction delays are a sign the MTR Chandran Nair says Asian leaders must realise must refocus on what it the futility and danger of looking to America does best – running a great railway to sort out their squabbles, and see that regional cooperation is the best bet for peace e have one of the most sophisticated rail systems in the world. When we see those Wempty buses emitting clouds of toxic black hat do you think would smoke, choking lungs and our road systems, we can be the tenor of global be sure that they’re not the reason we’re the best city debate if President Xi in the world for commuters. For a long time, our Jinping ,on a tour efficient railway system has been the pride of this city. of South America, were Not any more, it seems. toW give speeches at each stop about the It’s true that despite the delays – both of actual threat posed to the region by the United trains and network expansions – we’re still way ahead States? While visiting Cuba, he would offer in every way, globally. But we cannot rest on our promises of “deepening our alliance”. laurels. Keeping people moving, on time and safely, is And, at the trip’s end in Mexico, Xi would paramount for our congested city. And it would seem call that country “freedom’s frontier … on it’s time for the MTR Corporation to begin focusing this divided peninsula”. again on what it does best. Anything of the sort would be greeted It can start by getting back to basics – by putting by the universal outrage of global com- Hong Kong first. Instead of preaching the gospel of mentators – and probably by calls for sanc- the “rail-plus-property model” to the motherland tions on the part of leading US politicians. and embarking on projects elsewhere, it needs to look But switch China and America’s places to run a railway Hongkongers can be proud of. and this is almost exactly what happened We may be one of the world’s hardest sets of when President Barack Obama visited Asia commuters to please. We’re impatient; we’re good at late last month. Those words above were counting our dollars and cents; and we demand Obama’s – but directed to the Philippines exceptional service and really low fares at the same and South Korea (rather than Cuba and time. There’s good reason for that, especially since Mexico). the MTR Corp is a “half-public, half-private” Indeed, few issues nowadays can avoid company. That “half-half” status may or may not be being drawn into the ideological sinkhole fixed any time soon. The fact remains that the city’s of Sino-US competition. But the global far too many politicians seem stuck in the notion of an independent foreign policy. ing about regional conflicts, by whichever highly demanding commuters have helped the MTR nervousness goes further than that. past, brooding over wars that ended 70 In crisis after crisis, they have listened to “camp”, poses the very real danger of them Corp raise its game. In a speech to students in Pennsylva- years ago. the United States’ luring calls and become becoming a self-fulfilling prophecy. And it has been rewarded handsomely for its good nia, Obama recounted that “countries like The cliché is that Asian nations have totally subservient. Europe, as many Euro- But more than this, the real problems of work. It practically owns this city’s public transport Germany, China and India – they’re work- long histories and long memories, which peans tacitly recognise, has become a tool the 21st century – those to do with scarce network and has been given land for property ing every day to out-educate our kids so gives them wisdom. But the opposite can in the global exercise of American power. resources, climate change, rising popula- development. they can out-compete our businesses”. just as easily be true. An obsession with a One need only look at a map of Ameri- tions and technology overreach – will need No one knows this better than chief executive Jay Even the Hollywood press has been perverse interpretation of history prevents can overseas bases to know who is really to be solved with the help of the entire Walder. When he left his last job as chairman and buzzing about whether studios are now cooperation on the real challenges of the calling the shots globally. world, not by squabbling groups of short- chief executive of New York’s Metropolitan “kowtowing to China”, by editing their future. What is really needed is not just an term allies. Transportation Authority to come to Hong Kong, no films in an attempt to enter the lucrative Small wonder then that many, both American and a European pivot to Asia, China, in its well-understood self- one could blame him for leaving a financially Chinese market. inside and outside Asia, have clung to the but also a Russian pivot to Asia, an African interest, should be at the centre of these troubled place for a cash-rich one. He resigned from Apart from creating an attitude of fear notion, eagerly seized upon by the US, that pivot and – most of all – an Asian pivot to efforts – possibly even leading them. For that authority just hours after he announced it was and mistrust among the next generation of Asia. this, it will need the cooperation of its cutting the administrative payroll by 15 per cent. The Americans, this kind of narrative promotes Asia will undoubtedly become the neighbours. The latter should not fall New York authority paid him US$350,000 a year; a dangerous national solipsism. world’s most important region. In the early victim to the “Western” folly of treating here, he’s getting more than 4.5 times that amount. A world where all other countries are stages of this century, it will have both the China like a pariah, largely because it has a It would be safe to say that Walder has enjoyed either threats or allies, and a world that can world’s largest economy, China, and its very different, but actually quite well- more than just a huge pay rise. We can’t put a price be divided into either being “with us or One need only look at most populous nation, India. functioning, political system. on “benefit of the doubt” – a “gift” to him from against us”, is an increasingly dangerous a map of American The future of such a continent should The Chinese, in turn, need to step up to transport minister Professor Anthony Cheung Bing- place – whether those words are uttered by not be determined by any one group, the plate and validate their claims of a leung, who found out later it cost him dear. a sitting American president or others. overseas bases to certainly not the American political class. “peaceful rise”. They must start to com- Walder’s contract with the MTR Corp won’t be What may be intended as harmless, know who is really They stand out because they are simulta- promise. If they don’t, they risk living up to renewed after 2015, but he gets to keep his job and even cheerful motivation can be turned, neously the most ill-informed about the frequent accusations of bullying made pay for now. Cheung, who once enjoyed steady and almost accidentally, on its head – and calling the shots region and, curiously, the most prone to against them. high public approval ratings and was considered to become the spark for a generation’s worth believing they alone have a right to shape In the end, only a series of mutually be a Beijing-acceptable democrat for the office of the of misunderstanding and mistrust. Hardly its history. agreed upon regional rules can prevent a chief executive, has turned out to be the biggest loser. the goal of political leadership. America has to step in and “fix” the region. Cooperation, rather than rivalry, on race to the bottom. To the victor the spoils? Under Walder’s reign, the MTR Corp has suffered Asia’s political leaders have been little But this is a dangerous idea. One need only Asian politics will be in everyone’s best Anybody who seriously believes that more than a few dents in its reputation. It’s not just better. They are far from acting in any look at the Middle East to see what kind of interests. Progress on that vital issue can- notion even for a moment has no idea of the government that has to be a better monitor. The harmonious fashion, mired as they are in disasters such thinking can cause. not – and should not – come from outside. the lasting damage that could be created in MTR Corp, too, needs to shape up and fix the their own petty squabbles. Nor is the seemingly placid state of It is shortsighted of China’s neighbours the struggle for control of a small group of technical glitches that caused mass frustration, long The new “game” in Asia reads like a Europe today something Asia should to antagonise what will inevitably become uninhabited islands. before the high-speed railway delay scandal emerged. football World Cup schedule: Japan versus aspire to, and not just for the obvious the region’s most powerful political, A world-class railway that runs under the wrong Korea, Korea vs China, China vs Vietnam – reason that a huge amount of blood was economic and military force. But it is just Chandran Nair is the founder of the Global leadership, with the luxury of few financial worries, and North Korea vs everyone else. spilt in the interim. What many too often as shortsighted of China to promote any Institute For Tomorrow in Hong Kong and a can easily become a world-class screw-up. Asian leaders should know better. forget is that the reason Europe is so seem- vicious form of nationalism as a means to contributing editor at The Globalist, where Their populations need them to focus on ingly peaceful is because western Euro- distract from domestic challenges. this article was originally published. Alice Wu is a political consultant and a former associate equitable and sustainable growth. Instead, pean nations have essentially forfeited any China is here to stay. Constant obsess- www.theglobalist.com director of the Asia Pacific Media Network at UCLA

Economic reforms alone won’t put Don’t let rigid criteria keep renminbi in the US dollar’s league talent out of HK universities

Eswar Prasad says China needs credible political and legal systems to build its currency’s strength Paul Stapleton urges acceptance of brilliant but not well-rounded students

carcely a week passes and the Federal Reserve was process that underpins them. rather than the country’s image his month, final-year prescribed core subjects comes difficulties with reading, are without news about the forced to undertake massive Freedom of expression and as a refuge from troubled secondary school students at a time when we are learning especially good at dynamic Sascendance of the monetary expansion to support unfettered media bolster this financial markets elsewhere, Tare writing exams that in more about specific learning reasoning and making spatial renminbi. But China has a long the economy, the dollar confidence, not by highlighting especially given that China’s many cases will determine their disabilities. connections, which makes them way to go before its currency can strengthened relative to most the system’s strengths, but by financial markets are relatively future. For example, it is now well- particularly suited to rival – let alone displace – the US other currencies. exposing its weaknesses, which underdeveloped and beset by For those with hopes of established that dyslexia, a interdisciplinary fields where dollar as the dominant global That is because global can subsequently be corrected considerable risks. entering university, their main reading disability which has a thinking outside the box is reserve currency. investors seeking a safe haven through responsive, rule-based Of course, some foreign focus will be on doing well in the heritability of about 50 per cent, important. To be sure, China already automatically turn to US mechanisms. central banks have signed four core subjects. Normally, runs in families. Returning to the question of plays a significant role in Treasury securities in times of With the US government currency-swap agreements with students hoping to enter However, as our university admittance, the international trade and finance, global financial turmoil. Foreign forced to answer to its citizens, it China and even hold small university must achieve a understanding of genetics and present “3322” system, which with major financial centres like investors now hold more than is unlikely to resort to amounts of its currency in their minimum score of “3” in both how the brain operates sets a minimum standard across London and Frankfurt eagerly US$5.7 trillion of these low- inflationary debt financing. In reserve portfolios. But these Chinese and English and a score increases, it is clear that having four disparate subjects, may be lining up for renminbi business. yielding securities, not to fact, about US$4.5 trillion of US actions may be less a sign of the of “2” in both maths and liberal an intellectual disability can be casting a net with large holes. Recent speculation that China’s mention large quantities of other federal debt is held by domestic renminbi’s inevitable march studies, sometimes referred to as the flip side of a coin. Just as The three fortunate students economy may soon be as large investors, including retirees, towards global dominance than “3322”. mentioned who managed to as America’s has boosted this pension funds, financial a low-cost bet on its likely Recently, however, despite enter university on an interest further, causing many to institutions and insurance emergence as a widely accepted these recognised minimum exceptional basis may be the believe – whether ruefully or companies – groups whose international currency. And grades, some students were thin edge of a wedge of students gleefully – that the renminbi will considerable political clout countries’ desire to maintain accepted into local universities who are singularly gifted and soon dominate. China is missing ensures that no administration good relations with China, with exam results that did not In an era of disadvantaged at the same time. Moreover, the Chinese one crucial would risk allowing inflation to owing to its rising economic meet these standards. inclusiveness, In other words, there are authorities have launched a raft spin out of control. power, cannot be discounted. For example, three students probably substantial numbers of of reforms aimed at opening the ingredient: the The US legal system further Depending on how soon were admitted recently to there is a need to students in Hong Kong who are economy and making it more world’s trust … supports the dollar’s global role. China opens up its capital Chinese University with top make room for exceedingly gifted in maths, yet market-oriented, and have While one might quibble about account and develops its scores (5* and above) in maths have failed to gain university announced plans to liberalise it is here that the complexity of US laws and financial markets, the renminbi and other subjects, despite low those who show acceptance because they are interest and exchange rates and regulations, it cannot be said could become a significant scores in Chinese. deficient in one of the two continue to ease restrictions on the US shines that they are not applied reserve currency in the near These exceptional offers may special promise languages, and vice versa. cross-border capital flows. All of relatively consistently. future. But it will not contest the be marking a new flexibility Admittedly, a system that this will strengthen the dollar assets. And the dollar’s This contrasts sharply with dollar’s supremacy unless among university admission some individuals are born must sort the wheat from the renminbi’s claim to reserve- share in global foreign-exchange China’s single-party system, in China’s leaders align the offices and, if so, this should be disadvantaged, others are born chaff involving tens of currency status. reserves has held steady since which the level of government country’s political and legal considered a very positive step. with certain gifts. thousands of students has to But China is missing one the crisis. accountability is much lower. institutions with its economic Until now, it has been only those Of course, this is not startling draw the line somewhere. crucial ingredient: the world’s This can be explained partly Official corruption, for example, reforms. students who perform well news. The media occasionally But the present one-size-fits- trust. To achieve currency by the fact that the United States has become so entrenched that enough in the four core subjects report on those with special gifts all system that favours the well- dominance, China needs more boasts the world’s deepest and President Xi Jinping has Eswar Prasad is a professor who make it into local in music or mathematics. rounded over the unevenly than economic and military most liquid financial markets. made an anti-graft campaign a at the Dyson School at Cornell universities. Research on the brain is now gifted may be eliminating some might; it requires a broader and But the most important factor central objective. University, a senior fellow at This means that even if a revealing that, sometimes, these brilliant students. more credible set of public and supporting America’s currency The reality is that, despite the Brookings Institution and secondary school graduate disparities in ability exist within In an era of growing political institutions. And it is dominance is the China’s economic heft and low author of The Dollar Trap. displays brilliance in science and the same person, and it is here inclusiveness, there is a need to here that the US shines – at least institutionalised system of central government public debt, Copyright: Project Syndicate maths, but is poor at one of the where standardised assessment make room for those who show relatively speaking. checks and balances that foreign investors are unlikely to languages, his or her prospects can let talent slip through the special promise, yet through no This was never more operates among the executive, trust China with large sums of > CONTACT US for further education are greatly cracks. fault of their own are apparent than in the aftermath legislative and judicial branches money. Capital inflows – which Agree or disagree with the opinions diminished, if not extinguished. Possessing a natural gift for disadvantaged in one area. of the global financial crisis. of its government. will undoubtedly increase in the on this page? Write to us at This budding realisation that numbers, for example, can often Even though America’s financial Trust in US public coming years – are driven largely [email protected]. good academic potential need come at the expense of linguistic Paul Stapleton is an associate markets nearly collapsed, its institutions is rooted in the open by investors’ interest in If you have an idea for an opinion not be confined to those who ability. Similarly, it is said that professor at the Hong Kong public-debt levels rose sharply, and transparent democratic diversification and high yield, article, email it to [email protected] reach minimum levels in the those with dyslexia, despite their Institute of Education