China, Subprime Europe, and Bachtiar
Eventually the dust will settle; even the all-high boom will end some
time. But where do we go from here? Recent news on
China’s end of its seemingly robust growth told me that the whole
thing is not all that robust after all. This great bull is fueled
partially by
short-term hot money that neglects the fact that this great growth
stands on the sacrifice of cheap labor, unguarded environment, and
iron fist policy, all the prerequisites which was seen as clean,
bullet-proof, and kosher.
Eyeing Erope, there’s an interesting op-ed in today’s New York Times,
“Subprime Europe” by Liaquat Ahamed. Somewhat shocking data:
“loans by Austrian banks to Eastern European countries are almost
equivalent to 70 percent of Austria’s G.D.P.” The problem is that
these loans were directed to Eastern European countries whose
experience with open market is marginal if not non-existence, which
create in itself another challenge.
Bachtiar
(63) and his boat. Photo by
Sigit Mursidi (2008)
I met Bachtiar (above) in Pasar Ikan, North Jakarta September last
year. His business is boat rental for tourists in Pasar Ikan. His
fare is Rp25,000.-for about one hour trip. In a good day he could
make three to five trips and collecting Rp 125,000 to Rp 150,000 a
day, with tips and all he could go home and make Rp200,000.- net of
tax; and that is a good day. This will equate him to approximately
Rp2,000,000.-per month . Compare this with the lawmaker who was
caught red-handed receiving bribe of US$90K. That bribe is
approximately 535 times Bachtiar’s monthly income and is also net of
tax!
