May 9, 2024

Archives for March 2013

The Media Equation: Columbia’s New Journalism Dean Looks Ahead in a Digital Era

Entering Columbia’s Graduate School of Journalism on the Upper West Side of New York, there is academic majesty wherever you look.

Past the lamps with the iron claws and the statue of Jefferson (“Our liberty depends on the freedom of the press“) lies a 100-year-old redoubt that has trained the likes of Robert Caro, Molly Ivins and A. J. Liebling, among many, many others. It’s Hogwarts for wizards who type.

The announcement that a journalism school has a new dean usually elicits yawns in most quarters — Hey, there’s a new headmaster at the buggy whip academy — but the news that Steve Coll had been named to replace Nicholas Lemann, effective this summer, was greeted as if a new Dumbledore had been named.

Sure, Mr. Coll has some qualifications. A former managing editor of The Washington Post, he has won two Pulitzer Prizes, including one for the remarkable achievement of “Ghost Wars,” which explains how the seeds of the attacks on the World Trade Center were planted over many years. Like his predecessor Mr. Lemann, he is a staff writer at The New Yorker and continues to do serious, deeply reported work.

But not everyone was impressed with the new wizard. In USA Today, Michael Wolff was very underwhelmed. Mr. Coll’s sin? He “has never tweeted in his life.”

That and he is a “boring” writer with “little or no career experience in any of these epochal changes.” (Capital New York echoed the skepticism about his “limited digital experience”)

Mr. Wolff and I can disagree about the centrality of Twitter to journalism (my boss likes to point out that I tweet constantly but Twitter never sends me a check) but the suggestion that Mr. Coll knows nothing about the current epoch is audaciously wrong.

In fact, Mr. Coll lived through much of the early days of the great disruption at The Washington Post after arriving there in 1985 and going on to serve as its managing editor from 1998 through 2004.

Whatever its mistakes in coming to the grips with the Web, The Washington Post was early and engaged in the question of creating journalism that would survive in a changed world, and Mr. Coll was at the vanguard of many of those efforts.

And he was parodied at the time for his utopian notions. After he led the effort to develop a virtual afternoon edition of The Washington Post with an emphasis on video that might include reporters with portable cameras, one media wag suggested Mr. Coll was envisioning “a fleet of electronic chapeaued Max Headrooms who will mix it up with angst-ridden hoi polloi and beam digitized mayhem back to the screens of people killing time between check-ins on the progress of their stock portfolios.”

Three things about that critique: Mr. Coll turned out to be more right than wrong; I was the one who was making fun of him, writing at The Washington City Paper; and I have since worn a hat cam. (It’s not a good look on anybody, by the way, but the video was impressive.)

We now work in a future he thought a lot about. I was chatting with my colleague John Schwartz, who had just been working as part of The New York Times’s multimedia blitz on the Supreme Court’s consideration of gay marriage by doing Web updates, explanatory annotations to audio excerpts and video spots. “None of the things I spent the last three days doing existed when I came into the business,” he pointed out. That goes for me as well.

In a phone call Friday morning, Mr. Coll, who will continue to work on articles for The New Yorker and books, said the part of his new job that excited him was getting back to the work he was doing at The Post.

“We are in the second phase of disruption, and I think this job is a great place to think about and participate in some of the ways we go forward,” he said. “I think the great digital journalism of our age has yet to be created. The cohort that is at Columbia now is the one that will be making the journalism that is going to shape our democracy: working on mining data sets, creating video that is not 2012, coming up with much more powerful ways of accruing and displaying information.”

Despite his lack of Twitter activity, Mr. Coll has a track record here. In his last administrative job, at the New America Foundation, he spent time looking at what the shift has meant to streams of information and managed to tap Eric Schmidt of Google, among others, to sit on his board to help him figure it out.

The future of the business, he said, “is an ambition I share with much of the faculty that is already there.”

“I’ve always done my best work when I am part of something larger, and being around self-selected young people who understand intuitively what is going on around them is that part I look forward to the most,” he said.

I agree with Mr. Wolff and others who have suggested that given the state of the industry and the paucity of opportunities, journalism education is something of a confidence game. Having seen many journalism programs up close, I can say that most are escalators to nowhere. But while the price of Columbia’s Ivy-encrusted approach is especially dear, under Mr. Lemann’s leadership, the school has moved swiftly to confront an evolving future with aggressive moves into new forms of journalistic expression.

Even in a shrinking industry, journalism schools may become more important — becoming sources of actual journalism and not just pedagogy. In a huge, well-considered report by the school’s own Tow Center for Digital Journalism at the end of last year, the authors suggested that the profession had entered a “postindustrial” phase, stating, “On present evidence, we are convinced that journalism in this country will get worse before it gets better.”

Mr. Coll takes over a school with institutional momentum dedicated to an industry looking for some momentum of its own. He will need to set an agenda, engage the various stakeholders and, like any modern dean, shake the money tree. Come to that, he may think about activating that Twitter account after all.

E-mail: carr@nytimes.com;

twitter.com/carr2n

Article source: http://www.nytimes.com/2013/04/01/business/media/columbias-new-journalism-dean-looks-ahead-in-a-digital-era.html?partner=rss&emc=rss

As Banks in Cyprus Falter, Other Tax Havens Step In

LIMASSOL, Cyprus — Bloodied by a harsh bailout deal that drives a stake through the heart of this Mediterranean country’s oversize financial industry, Cyprus now faces a further blow to its role as an offshore tax haven: the vultures from competing countries are circling.

With a flood of e-mails and phone calls in recent days to lawyers and accountants here who make a living from helping wealthy Russians and others avoid taxes, competitors in alternative financial centers across Europe and beyond are promoting their own skills at keeping money hidden and safe.

“We are aware of the economic problems facing Cyprus at the moment,” read one such message from a law firm in Malta, also a euro zone member. “We would like to propose an avenue of action for your consideration: offering corporate relocation to Malta,” continued the business pitch, trumpeting Malta’s low taxes and “flexible yet robust regime” for financial services.

Similar unsolicited offers have originated in well-known havens like Switzerland, Luxembourg and the Cayman Islands, as well as in a spate of other locations, including Dubai and Singapore. Even the northern part of Cyprus, controlled by Turkish Cypriots, has joined the feeding frenzy, promoting its own banks as a stable alternative to those run by Greek Cypriots in the crisis-racked southern part of the divided island.

Particularly successful at luring Russians, Cyprus has built up a large infrastructure of lawyers, accountants and other professionals schooled in the arts of tax avoidance. Its corporate registry now has 320,000 registered companies, a staggering number for a country with only 860,000 people. Most are shells set up for foreign companies and wealthy individuals seeking to avoid taxes.

“We have been thrown to the wolves, and now the wolves have responded,” said Nicholas Papadopoulos, head of the financial and budgetary affairs committee in Parliament.

Bitterly critical of last week’s bailout deal — which is forcing Cyprus to shrink its banking and financial industry drastically and stick the largest bank depositors with much of the bill — Mr. Papadopoulos said the European Union was “punishing a whole country just to hit Russians.”

Even if new controls in Cyprus make it impossible to move much capital elsewhere for the moment, rival havens are nonetheless intent on luring foreign-owned businesses that have been incorporated in Cyprus and might be happy to relocate.

Mounting a counteroffensive is the Cyprus Fiduciary Association, an industry lobbying group.

“The banking sector is finished, but the service industry can survive,” said the group’s secretary, Andreas Marangos, a Limassol lawyer. Russians who now use Cyprus will open bank accounts elsewhere but might stick around for other offshore services, he said.

The rush by rival havens could pose economic troubles as Cyprus struggles to keep afloat a financial industry that employs tens of thousands of people. Cypriot unemployment, already at 15 percent, is expected to soar as the finance sector and the overall economy contract, aggravating a crisis that the bailout was intended to solve. Along with shipping, the financial industry is especially crucial here in Limassol, a port city popular with wealthy Russians looking for sun and a safe place to put their money.

Cyprus, although only a relatively small player in a global network of low-tax financial centers, has made serving tax-averse foreigners a central pillar of its economy. A small sunny island whose main economic engine used to be potato farming, Cyprus shifted to a finance-centered model after Turkish troops took control of the northern part of the island in 1974.

While Cyprus and its rivals dislike being described as “tax havens” and prefer to be known as “offshore financial centers,” those now picking at Cyprus’ carcass trumpet their ability to keep money beyond the reach of tax authorities. A Swiss company, the Gonthier Group, last week sent e-mails to Cyprus firms working with foreigners, suggesting they offer their clients a Swiss alternative, namely an investment “vehicle which is extremely low-profile, not classified as a bank account or trust and thus very much under the radar of national fiscal authorities.”

Article source: http://www.nytimes.com/2013/04/01/business/global/as-banks-in-cyprus-falter-other-tax-havens-step-in.html?partner=rss&emc=rss

Israel Turns On Natural Gas Flow at Offshore Site

“We are taking an important step toward energy independence,” Prime Minister Benjamin Netanyahu said in a statement after the natural gas started flowing from the Tamar reservoir in the Mediterranean Sea to a terminal in the Israeli port of Ashdod, a journey that officials said would take 24 hours.

“We have advanced the natural gas sector in Israel over the last decade, which will be good for the Israeli economy and for all Israelis,” Mr. Netanyahu added.

Some questions were raised in Orthodox circles in Israel as to why the Tamar field had gone online on the Jewish Sabbath, the religiously mandated day of rest. During his traditional Passover visit to the country’s leading rabbis on Sunday, President Shimon Peres called that decision a “mistake” and said he did not know the reason for it, according to Ynet, a Hebrew news Web site, and some ultra-Orthodox Web sites.

A partnership of Noble Energy, based in Houston, and two Israeli companies, Delek Group and Dor Gas Explorations, carried out drilling operations at the Tamar site, about 56 miles west of the northern port city of Haifa, and discovered large gas reserves there in 2009.

Israel’s Ministry of Energy and Water Resources says that the Tamar field will supply 50 to 80 percent of Israel’s natural gas consumption needs over the next 10 years. About 40 percent of electricity in Israel has been generated from natural gas in recent years, and the rate of natural gas consumption is expected to rise to 50 percent by 2015, the ministry said.

The Tamar field went into production as a smaller natural gas reserve, known as Yam Thetis, at a site farther south, began to run dry.

But the subsequent discovery in 2010 of another major natural gas field off Israel’s northern coast, known as Leviathan, has even positioned Israel as a future energy exporter. Leviathan, discovered through the work of a partnership between Noble Energy and local companies, was said to have been one of the world’s largest offshore gas finds in a decade.

The Israeli government said in 2011 that it would set a tax rate on energy profits at 52 to 62 percent. Mr. Netanyahu said at the time that some of the money would go into a special fund devoted to education and the security of Israel.

The development of Israel’s natural gas sector in recent years has lessened the country’s dependence on foreign energy imports in an unstable and largely hostile region. The vulnerability of Israel’s supplies was underscored in the months after the 2011 ouster of President Hosni Mubarak of Egypt, when unidentified attackers bombed a gas pipeline in the Egyptian Sinai more than a dozen times, apparently to disrupt the flow to Israel.

Under a deal signed in 2005, Egypt had been supplying Israel’s Electric Corporation, a mostly state-owned utility, with up to 40 percent of the natural gas it needs.

Offshore exploration efforts have also underscored the need for clear maritime borders. Israel and Lebanon have been locked in a dispute over an area of the Mediterranean Sea that is potentially rich with energy resources.

Article source: http://www.nytimes.com/2013/04/01/world/middleeast/israel-turns-on-natural-gas-flow-at-offshore-site.html?partner=rss&emc=rss

Papers Worldwide Embrace Web Subscriptions

SERRAVAL, France — Newspapers, once reluctant to try to charge readers for access to their Web sites, have begun doing so in droves.

Across many of the developed economies of America, Europe and Asia, so-called pay walls are proliferating as publishers struggle to make up for dwindling revenue on their print products. Online advertising, once seen as the great hope for the future, has begun leveling off, which is accelerating the push for new Internet business models.

“Why now?” said Douglas McCabe, an analyst at Enders Analysis in London. “The outlook for digital advertising for all but the very largest sites looks increasingly challenging. Therefore, it is critical that news services experiment with subscription models.”

The trend has taken in some longtime holdouts, like The Washington Post, which said in March that it would start charging online readers this summer. Elsewhere in the United States, The San Francisco Chronicle also recently announced plans to start digital subscriptions, and the total number of American newspapers with pay walls has climbed to more than 300.

In Europe, the recent conversion has been even more striking. Last week, the Telegraph Media Group, publisher of the biggest broadsheet in Britain, said it would start charging British domestic readers for access, having previously introduced a pay wall for its international audience. The biggest tabloid in Britain, The Sun, also confirmed plans to erect a pay wall.

Last month in Switzerland, Tages-Anzeiger, the largest-circulation quality daily in the German-speaking part of the country, announced plans to switch to a paid online model, joining its main rival, Neue Zürcher Zeitung, which did so last year.

In Germany, Schwäbisches Tagblatt became the 35th newspaper to introduce a pay wall. Among the leading national dailies, Die Welt started charging online readers recently, and Bild plans to do so this summer. Other German publishers have said they are weighing the move.

“There’s hardly anyone left who is resisting the trend,” said Tobias Fröhlich, a spokesman for Axel Springer, which publishes both papers.

In Asia, too, pay walls are popping up, with publications like the Asahi Shimbun and the Nihon Keizai Shimbun in Japan and The Straits Times of Singapore embracing digital payment plans.

The new round of pay wall adoption could test some long-held assumptions about online fees. In Britain, for example, the conventional wisdom used to be that it would be impossible for newspapers to persuade readers to pay for general news online; while one British newspaper, The Financial Times, was a pay wall pioneer, some analysts attributed its success to its specialized business content and the fact that many of its customers pay for their subscriptions via corporate expense accounts.

Certain particularities of the British market make the transition harder for general newspapers in Britain than elsewhere. One is a high rate of newsstand sales rather than home delivery, which predominates in the United States and Germany. It is easier to market new services, like paid online access, to existing subscribers than to anonymous customers at a newsstand.

British tabloids have also had to confront questions about their credibility since the phone-hacking scandal, which resulted in the shutdown of The News of the World, a sibling to The Sun in News Corporation’s stable.

The popularity of the BBC’s news Web site, which is required to be free in Britain, is a further hurdle for rival online publishers. Yet after the latest round of pay wall adoption, only two prominent national British dailies, The Guardian and The Daily Mail, will be available free on the Web.

Another notion that is about to be put to the test is the industry belief that tabloid newspapers, specializing in celebrity gossip and other news with a short shelf life and aimed at lower-income readers than broadsheets, might have an especially hard time persuading readers to pay for digital editions. Now the two highest-circulation newspapers in Europe, Bild — a tabloid in content despite its broadsheet format — and The Sun, are about to find out.

Article source: http://www.nytimes.com/2013/04/01/business/media/more-newspapers-are-making-web-readers-pay.html?partner=rss&emc=rss

China Releases New Measures to Restrict Housing Sales

SHANGHAI — Trying to cool down the resurgent property market, two of China’s biggest cities announced over the weekend that they would put in place a series of restrictions and penalties on housing sales.

In the nation’s capital, the Beijing municipal government said unmarried individuals would now be allowed to purchase only one residence. The city also increased the minimum down payment for buyers of a second home and imposed a 20 percent capital gains tax on owners’ selling a residence.

In Shanghai, an identical capital gains tax was announced and took effect immediately, and city officials pledged to implement and enforce other measures aimed at stabilizing housing prices. The stiffer capital gains taxes take the place of a 1 percent to 2 percent transaction tax previously assessed on the final price of the property being sold.

The announcements came a few weeks after China’s State Council, or cabinet, said the government would take stronger action to ensure that property prices do not continue to soar, fueling what many analysts believe is a real estate bubble that could seriously damage the economy and exacerbate social tensions between the rich and the poor.

“The curbing policies are designed to optimize the allocation of housing resources,” Chen Zhiwu, the secretary general of the Beijing Real Estate Association, was quoted by the official Xinhua news agency as saying. He said the goal was to reduce speculation in the property market so that more of the existing housing supply could be taken up by end users.

Property prices in China have been soaring in last year, with housing prices up an average of 3.1 percent in 66 cities in the month of February alone, according to a government survey.

Most of the new measures had been anticipated after the State Council’s announcement in early March. The threat of tougher rules had set off a nationwide rush to sell properties before city governments detailed the specific measures they would take, as well as their starting dates.

Shanghai and other big cities had even had a surge in the number of divorce filings at marriage bureaus, with many couples openly admitting that they were filing for divorce simply to get around property rules and that they would later remarry.

In the announcements, it was clear the city governments were trying to close that loophole.

The new rules are China’s latest effort to cool real estate prices in a country where investment options can be limited and property is considered a good store of value.

Michael Pettis, who teaches finance at Peking University and is a senior associate at the Carnegie Endowment for International Peace, said China was facing challenges that many other emerging markets are struggling with: It is awash in too much cash and credit.

“China has a liquidity problem, and so it’s not clear to me changing the tax structure or fiddling around the edges addresses the real problem,” he said. “Raising interest rates would be the single biggest thing they could do. But they also need to stop credit and monetary growth.”

Although Chinese cities do not impose annual taxes on holding residential properties, the government has rolled out detailed measures virtually every year for the last decade in an effort to penalize speculation in the housing market.

The efforts have often been effective at temporarily holding down prices, but the market usually tends to roar back as investors, home owners — and even banks and property agents — identify loopholes in the restrictions, analysts say.

Because China’s booming economy is tied so closely to the property market — and because it is a major source of income for banks, who issue mortgages and local governments, who profit from land sales — any strong government measures to rein-in the sector have the potential to impact the larger economy.

In Shanghai, a city of about 22 million residents, banks are no longer allowed to offer loans to local residents buying a third home; those seeking a second mortgage are now expected to make larger down payments and to pay higher mortgage rates. Shanghai officials also said they will make it tougher for foreigners, people from other cities in China, and divorced individuals to buy homes, a clear hint that they intend to counter attempts by local residents to seek divorces in order to circumvent some restrictions.

The authorities in Beijing and Shanghai also promised to build more affordable residences. This year, Beijing said it planned to build 70,000 units of affordable housing; Shanghai said it expected to build 10,000 units.

China’s state-run media also said over the weekend that the central government is planning to introduce a unified national property registration system by the end of 2014, which could eventually make it possible to impose an annual property tax on households — yet another way the authorities expect to fight housing speculation and fend off bubbles.

“The central government is feeling the heat and not just for social reasons,” Joe Zhou, a property analyst at Societe Generale, said in a report released last week. He said a push by prime minister Li Keqiang, who took office in March, to promote urbanization as a new key growth driver “only adds to the urgency to cap property prices, as the strategy implicitly requires housing prices to be within the reach of future migrants whose purchasing power is likely to be more limited than those who have already earned their way into the urban area.”

Article source: http://www.nytimes.com/2013/04/01/business/global/china-releases-new-measures-to-restrict-housing-sales.html?partner=rss&emc=rss

Political Economy: A Union That Exists in Name Only

The Cypriot catastrophe shows just how far away the euro zone is from creating its much-touted “banking union.” There was no euro zone supervision of Cyprus’s big banks, no transnational approach to put them into controlled bankruptcy, no common deposit insurance and no bank rescue funds from abroad.

Instead, there was weak supervision by the Central Bank of Cyprus and a mad scramble to carve up the banks’ assets on national lines. Nicosia was left to shoulder the whole cost of protecting small depositors and the euro zone said that none of its bailout cash could be injected into the troubled banks.

Optimists hope the fiasco will provide the euro zone with the impetus to complete its banking union. But it is equally possible that core countries like Germany, Finland and the Netherlands will become even more reluctant to absorb the liabilities of busted peripheral banks.

Indeed, Jeroen Dijsselbloem, the Dutch finance minister who runs the Eurogroup, suggested last week that the treatment meted out to Cyprus could be a model for other bailouts — though he later said his words had been taken out of context.

Last summer, at the height of the panic over Spain’s banks, the euro zone embarked on the initial step toward the banking union. The idea was to break the “doom loop” through which weak banks were dragging down weak governments and vice versa.

Leaders agreed that the European Stability Mechanism, the zone’s bailout fund, could be used to recapitalize busted banks — but only once an effective supervisory mechanism was in place. The European Central Bank was chosen to be that supervisor. No sooner had the core countries agreed to this deal than they started having remorse. The Spanish panic died down after Mario Draghi, the E.C.B. president, promised to do “whatever it takes” to preserve the euro. Germany and its allies then made it clear that the European Stability Mechanism could not bail out banks with legacy problems, meaning it was no use for the current crisis.

The E.C.B.’s supervisory mechanism is unlikely to be operating until the middle of next year. What is more, a single supervisor on its own does not make a full banking union. At minimum, a single “resolution” mechanism is also needed. Resolution is a euphemism for controlled bankruptcy.

Many analysts also think common deposit insurance is required. In the euro zone, deposits of less than €100,000, or about $128,000, are supposed to be guaranteed by national programs. After Cyprus’s crisis, the Eurogroup re-emphasized that these savings should be protected. But Germany and its allies are dead set against a eurowide deposit insurance program.

On the other hand, the European Commission is working on legislation that will require countries to have harmonized national resolution mechanisms. This will also pave the way for bondholders to be “bailed in” when banks are teetering on the brink, minimizing the need for taxpayer bailouts.

Euro zone leaders have also given the green light for setting up a single resolution mechanism. This is vital not least because the E.C.B. will not be able to supervise properly if there is no authority to which it can hand over an insolvent bank. The European Commission is supposed to come up with a plan this year, with the idea that legislation will be passed before the European elections in June 2014.

The snag is that it is devilishly difficult to set up such a resolution authority, as Nicolas Véron and Guntram B. Wolff point out in an excellent paper from the research institute Breugel — not least because it is hard to find the basis for such an authority in the current treaties.

What is more, there is no agreement on how this authority should fund bank failures if there is not enough capital to take the hit. One idea, imposing levies on the industry, will not raise enough money for a long time. Meanwhile, core countries will be reluctant to deploy the Stability Mechanism, unless Germany’s position softens after its elections in September.

This was the context in which the Cypriot banking crisis took place. Nicosia was small enough to be bullied and to attempt to use in an experiment.

The core countries took a hard line that no taxpayers’ money could be used to bail out the banks, meaning large depositors would face big losses. Meanwhile, Cyprus was forced to sell its large banking assets in Greece to protect Athens from contagion. This led to Greek depositors’ being treated much better than their Cypriot counterparts — a type of discrimination that would not happen in a proper banking union. As Mervyn King, governor of the Bank of England, once memorably said, banks are “global in life but national in death.”

Mr. Dijsselbloem’s idea that Cyprus should be a model is not sensible, because its banking system was unusual in being so large relative to the size of its economy while having only a small sliver of bondholder capital. But the Eurogroup president was onto something when he said creditors rather than taxpayers should bail out banks.

However, to make this idea workable without causing chaos among depositors, lenders must first be required to build up a large buffer of “bail-in” bonds that can take the strain when banks get into trouble. The European Commission’s plans would not require this until 2018, and it has not specified how big such a buffer should be, either. After Cyprus, it needs to get its skates on.

Hugo Dixon is editor at large of Reuters News.

Article source: http://www.nytimes.com/2013/04/01/business/global/01iht-dixon01.html?partner=rss&emc=rss

São Paulo Journal: Lowrider Culture Spreads to Brazil and Beyond

“I’m pimping it,” said Mr. Crippa, 41.

With a knowing smile, Mr. Crippa, a businessman who owns a carwash and a hamburger restaurant, jokingly acknowledged that his pimping extended only to the restoration and customization of vintage automobiles. He peppers his Portuguese with his own interpretation of the street slang of the Mexican-American subculture rooted in East Los Angeles.

And he tries to look the part, too, down to barrio-chic details like his footwear, a pair of Nike Cortez track shoes, and the 8-ball tattoo on his forearm.

The spread of this seemingly distant subculture, with Brazilian followers calling themselves “cholos” and cruising around in their low-and-slow automobiles, is raising eyebrows here in South America’s largest city. Some who cannot afford to buy vintage cars and customize them into lowriders simply roam São Paulo’s labyrinthine streets at the helm of bicycles accessorized with high-rise handlebars and banana seats.

Even when they just strut around in oversize khaki shorts and white muscle shirts, they speak to something larger: the global fluidity of conceptions of ethnicity, identity and style, propelling a street culture once so closely tied to the borderlands of the United States and Mexico well beyond its birthplace.

Japanese musicians, for instance, are rapping in astonishingly precise Spanglish. Lowrider Volvos can be glimpsed on England’s country roads. Rap pioneers like Spanky Loco have cult followings in places like Barcelona, the Catalan capital in northeast Spain. In New Zealand, Maori youths on lowrider bicycles are recording music videos featuring a posse of men in flannel shirts and smiling women washing down vintage American cars.

“It’s kind of ironic because if some of these imitators are dropped into parts of L.A., the cops could arrest them or the gangs could roll up on them,” said Denise Sandoval, a professor of Chicano studies at the Northridge campus of California State University. “But the digital culture we’re in facilitates this fascination with L.A.’s urban culture, and it’s gaining momentum.”

Dr. Sandoval, who studies the spread of the subculture around the world, said she was amazed when a friend, Estevan Oriol, a photographer who documents California’s street cultures, returned from a trip to São Paulo with photographs of lowriders in seemingly pristine condition, along with their proud owners.

In some ways, São Paulo might seem to be a good place for a hard-edge lowrider scene to flourish. Parts of the traffic-choked megacity, with a metropolitan population of about 20 million, make the sprawl of Los Angeles seem somewhat quaint in comparison. Graffiti murals decorate elevated highways and asphalted river canals.

Still, the adoption of the lifestyle in São Paulo, which already encompasses hundreds of people involved in car clubs, bicycle shops and homegrown fashion labels, reflects immigration patterns and issues of ethnic identity that stand in sharp contrast to those in the United States.

The word “cholo” itself has a contentious history. In the Spanish colonial era, it was a derogatory term for some indigenous people, and by the 19th century it was used in the United States to demean Mexican laborers and some mixed-raced people, according to the Oxford Encyclopedia of Latinos and Latinas in the United States.

By the 20th century, the term “cholo” shifted to refer to people associated with a gang, or to those who simply copied their aesthetics and style, implying “a refusal to assimilate” into the dominant mainstream culture, the encyclopedia explains. Today, the term is deplored by some and embraced by others.

In Brazil, however, lowriders and the aesthetics of Mexican-American street culture took a different route, one that sometimes passed through another country first. “I saw my first lowriders in Japan, and I was immediately fascinated by their allure,” said Sergio Hideo Yoshinaga, 43, the owner of a garage in São Paulo where motorists pay hefty amounts, sometimes reaching more than $100,000, to have their cars transformed into curb-crawling masterpieces.

Mr. Yoshinaga is one of thousands of Brazilians, most of whom are descended from Japanese immigrants, who moved to Japan in the 1990s in search of relatively well-paying factory jobs. He stayed only about a year. That was long enough, Mr. Yoshinaga said, to be immersed in a scene big enough to support an array of car clubs and a Japanese edition of Lowrider Magazine.

“I was a pioneer when I returned to São Paulo,” Mr. Yoshinaga said. “Now there are these third-rate imitators here, saying they’re cholo-this and cholo-that,” he said. “Some think they can buy into the culture with their money.” He dismissed such aspirants as mere posers.

Jill Langlois contributed reporting from São Paulo, and Liam Stack from New York.

Article source: http://www.nytimes.com/2013/03/31/world/americas/lowrider-culture-spreads-to-brazil-and-beyond.html?partner=rss&emc=rss

Slipstream: In Privacy Laws, an Incomplete American Quilt

That was the message of a report from the Republican Party a few weeks ago on how to win future presidential elections.

It’s also the strategy that Peter Fleischer, the global privacy counsel at Google, recently proposed for the United States to win converts abroad to its legal model of data privacy protection. In a post on his personal blog, titled “We Need a Better, Simpler Narrative of U.S. Privacy Laws,” he describes the divergent legal frameworks in the United States and Europe. 

The American system involves a patchwork of federal and state privacy laws that separately govern the use of personal details in spheres like patient billing, motor vehicle records, education and video rental records. The European Union, on the other hand, has one blanket data protection directive that lays out principles for how information about its citizens may be collected and used, no matter the industry.

Mr. Fleischer — whose blog notes that it reflects his personal views, not his employer’s — is a proponent of the patchwork system because, he writes, it offers multilayered protection for Americans. The problem with it, he argues, is that it doesn’t lend itself to simple storytelling.

“Europe’s privacy narrative is simple and appealing,” Mr. Fleischer wrote in mid-March. If the United States wants to foster trust in American companies operating abroad, he added, it “has to figure out how to explain its privacy laws on a global stage.”

Other technology experts, however, view the patchwork quilt of American privacy laws as more of a macramé arrangement — with serious gaps in consumer protection, particularly when it comes to data collection online. Congress should enact a baseline consumer privacy law, says Leslie Harris, the president of the Center for Democracy and Technology, a public policy group that promotes Internet freedom.

“I don’t think this fight is about branding,” Ms. Harris says. “We’ve been trying to get a comprehensive privacy law for over a decade, a law that would work for today and for technologies that we have not yet envisioned.”

Many Americans are aware that stores, Web sites, apps, ad networks, loyalty card programs and so on collect and analyze details about their purchases, activities and interests — online and off. Last year, both the United States and the European Union proposed to give their citizens greater control over such commercial data-mining.

If the American side now appears to be losing the public relations battle, as Mr. Fleischer suggested, it may be because Europe has forged ahead with its project to modernize data protection. When officials of the United States and the European Union start work on a free trade agreement in the coming months, the trans-Atlantic privacy regulation divide is likely to be one of the sticking points, analysts say.

“We really are an outlier,” says Christopher Calabrese, legislative counsel for privacy-related issues at the American Civil Liberties Union in Washington.

For the moment, officials on either side of the Atlantic seem to be operating at different speeds.

In January 2012, the European Commission proposed a new regulation that could give citizens in the E.U.’s 27 member states some legal powers that Americans now lack. These include the right to transfer text, photo and video files in usable formats from one online service provider to another. American consumers do not have such a national right to data portability, and have to depend on the largesse of companies like Google, which permits them to download their own YouTube videos or Picasa photo albums.

A month after Europe proposed to update its data protections, the Obama administration called on Congress to enact a “consumer privacy bill of rights” that would apply to industries not already covered by sectoral privacy laws. These could include data brokers, companies that collect details on an individual’s likes, leisure pursuits, shopping habits, financial status, health interests and more.

The White House’s blueprint for legislation, for example, would give Americans the right to some control over how their personal data is used, as well as the right to see and correct records that companies hold about them. The White House initiative broadened the historical American view of privacy as “the right to be let alone” — a definition put forward by Louis Brandeis and Samuel Warren in 1890 — to a more modern concept of privacy as the right to commercial data control.

“We can’t wait,” a post on the White House blog effused at the time.

A year later, the data protection regulation proposed by the European Commission has been vetted by a number of regulators and committees of the European Parliament. The document now has several thousand amendments, some developed in response to American trade groups that had complained that certain provisions could hinder innovation and impede digital free trade. Peter Hustinx, the European data protection supervisor, said last Wednesday that European officials hoped to enact the law by next spring.

In the United States, by contrast, a year after the Obama administration introduced the notion of a consumer privacy bill of rights, a draft has yet to be completed, let alone made public.

Cameron F. Kerry, the general counsel of the Commerce Department and the official overseeing the privacy effort, was not available to comment last week. In a phone interview in January, however, Mr. Kerry said that the agency was working on legislative language to carry out the White House’s plan.

“The idea is to have baseline privacy protections for those areas not covered today by sectoral regimes,” Mr. Kerry said. He added: “We think it is important to do it in a way that allows for flexibility, that allows for innovation, and is not overly prescriptive.”

Chris Gaither, a Google spokesman, said his company was “engaging on important issues” like security breach notification and declined to comment on consumer privacy legislation. But at least some American technology companies suggest that a baseline privacy law could benefit both consumers and companies. In a statement last year, Microsoft said national privacy legislation could help ensure “that all businesses are using, storing and sharing data in responsible ways.”

With stronger European data rights and trade negotiations pending, Ms. Harris, of the Center for Democracy and Technology, says Congress may feel pressure to pass privacy legislation. That would represent a big change for American consumers as well as a better privacy sound bite abroad.

“We either have to enact our own law or we are going to have to comply with other countries’ laws,” Ms. Harris says. “But doing nothing may no longer be the answer.”

E-mail: slipstream@nytimes.com.

Article source: http://www.nytimes.com/2013/03/31/technology/in-privacy-laws-an-incomplete-american-quilt.html?partner=rss&emc=rss

Corner Office: QuestBack’s Lead Strategist, on His ‘User Manual’

Q. Tell me about your approach to leadership.

A. Part of my role is to be “chief ironing officer.” It’s very easy in a fast-growing company and fast-changing industry to get hung up on all the things that aren’t working and that we should be fixing. If you want to get extraordinary results, you have to play to people’s strengths and you have to help them work as close to plan as possible. If you allow them to get bogged down in all the problems that are out there — and there are always problems — they’ll be unproductive.

You can get a lot of speed by thinking of yourself as a chief ironing officer. Once you have a successful system in place, you can spend some of your time just walking around talking to people and asking: “What’s preventing you from doing an even better job? What are you spending time on that you don’t feel you should be spending time on?” Those kinds of questions are easy to ask, and people relate to them.

Q. What else about your leadership style?

A. I developed a one-page “user manual” so people can understand how to work with me.

Q. Can you give some examples of what it says?

A. I am patient, even-tempered and easygoing. I appreciate straight, direct communication. Say what you are thinking, and say it without wrapping your message.

I am goal-oriented but have a high tolerance for diversity and openness to different viewpoints. So, again, say what you are thinking and don’t be afraid to challenge the status quo.

I welcome ideas at any time, but I appreciate that you have real ownership of your idea and that you have thought it through in terms of total business impact.

I also added at the end: The points are not an exhaustive list, but should save you some time figuring out how I work and behave. Please make me aware of additional points you think I should put on a revised version of this “user’s manual.”

Q. Can you elaborate on why you developed the user’s manual?

A. It made sense to me because I’ve always been struck by this sort of strange approach that people take, where they try the same approach with everybody they work with. But if you lead people for a while, you realize that it’s striking how different people are — if you use the exact same approach with two different people, you can get very different outcomes.

So I tried to think of a way to shorten the learning curve when you build new teams and bring new people on board. The worst way of doing it — which is, regrettably, the normal way — is that people just go into a new team and start working on the task at hand, and then spend so much time battling different personalities without really being aware of it. Instead, you should stop and get to know people before you move forward.

Some of this comes from the experience I had in the Norwegian Navy. Part of the leadership training was about getting to know yourself and how you react under different circumstances and learning how different people really are. So if you understand yourself, you can start learning more about your team. So my question was: “How can I shorten this cycle? What simple things can I do to make these people work more effectively with me?”

If you give them this “how to work with me” page on the first day, they get a different perspective on who you are and how you relate to people and how open you are. It’s much easier when they understand that these are the things I like and don’t like, and this is how I am.

Q. How have people reacted to you doing this?

A. It’s been 100 percent positive. I think it just makes them open up. And there’s no point in not opening up, since you get to know people over time anyway. That’s a given, so why not try to be up front and avoid a lot of the conflict? The typical way of working with people is that you don’t share this kind of information and you run into confrontations over time to understand their personalities.

Q. What other leadership lessons did you learn in the navy?

A. It’s where I really learned about the importance of getting to know one another. In the navy, you worked such long hours, under sometimes extreme conditions, so people didn’t have the energy to keep up any kind of facade or play a role. People just got tired and you saw them for who they were. That helped as a leader because you really got to know people so you could lead them in an effective way.

Q. I heard an interesting job-interview question from another C.E.O., and I’d like to pose it to you: What skill do you have that other people might struggle with but comes so effortlessly to you that it’s as natural as breathing?

A. I think I’m much better than most at making people feel comfortable and at ease, so they open up and share. I can establish in a relatively short time a sense of trust and a robust foundation for a relationship. I think I’m not intimidating, and I’m quite open. A key for me in terms of leadership is that there is much more to be gained by allowing people to focus on their strengths than to keep pushing them to get better at what they’re not good at. If people can do what they’re best at most of the time, that’s a powerful way of working. That starts with knowing people.

Q. What else is a bit different about your culture?

A. I draw our organizational map upside down, because it’s not the leader and manager who do the work. The manager is there to give direction and make it possible for the others to do their job. That’s clearly illustrated if you turn it on its head. Imagine showing a front-line employee the chart, and saying, “Let’s find your box somewhere very, very far down here.” Just the psychology of that is depressing, because those are the people who deal with customers in a lot of cases. And that’s a very important role.

This interview has been edited and condensed.

Article source: http://www.nytimes.com/2013/03/31/business/questbacks-lead-strategist-on-his-user-manual.html?partner=rss&emc=rss

Egypt, Short of Money, Sees Crisis on Food and Gas

The root of the crisis, economists say, is that Egypt is running out of the hard currency it needs for fuel imports. The shortage is raising questions about Egypt’s ability to keep importing wheat that is essential to subsidized bread supplies, stirring fears of an economic catastrophe at a time when the government is already struggling to quell violent protests by its political rivals.

Farmers already lack fuel for the pumps that irrigate their fields, and they say they fear they will not have enough for the tractors to reap their wheat next month before it rots in the fields.

United States officials warn of disaster unless Egypt soon carries out a package of tax increases and subsidy cuts tied to a $4.8 billion loan from the International Monetary Fund. That would persuade other lenders that Egypt was creditworthy enough to obtain billions more in additional loans needed to meet its yawning deficit. But fearful of a public reaction at a time when the streets are already near boiling, the government of President Mohamed Morsi has so far resisted an I.M.F. deal, insisting that Egypt can wait.

Those who say Egypt cannot afford enough fuel are “trying to make problems for Dr. Morsi and his party,” said Naser el-Farash, the spokesman for the Ministry of Supply and Internal Trade and a fellow member of the Muslim Brotherhood’s political arm.

Mr. Farash placed blame for the shortage of fuel on corruption left over from the government of Hosni Mubarak, combined with hoarding inspired by fear-mongering in the private news media. “They are against the revolution,” he said.

Independent analysts say that the growing shortage of fuel and the fear about wheat imports now pose the gravest threats to Egypt’s fragile stability. “It has the potential to make things very, very bad,” said Yasser el-Shimy, an analyst for the International Crisis Group.

Egypt has held two years of unsuccessful talks with the I.M.F., and the current government is still balking at the politically painful package of overhauls — even as rising prices and unemployment make those measures more difficult with each passing day.

“They are operating on the notion that Egypt is too big to be allowed to fail, that the U.S. and the West will step in,” Mr. Shimy said. “They think Egypt has a right to get the loan, and I think they will probably keep pushing all the way.”

Officials of the Morsi government have indicated that they prefer to wait until the election of a new Parliament, which might demonstrate broader public agreement on the need for changes. But a court decision striking down the election law has postponed the vote until at least the fall, and many economists say Egypt cannot endure the delay.

“The situation is pretty urgent, because the deterioration accelerates,” a Western diplomat said, speaking on the condition of anonymity under diplomatic protocols. Shortages, the diplomat said, are already leading to layoffs.

Energy subsidies make up as much as 30 percent of Egypt’s government spending, said Ragui Assaad, of the Economic Research Forum here. The country imports much of its fuel, and for the first time last year it was forced to import some of the natural gas used to generate electricity — the reason for the recent blackouts. Egypt also imports about 75 percent of its wheat, mixing the superior foreign wheat with lower-quality domestic supplies to improve its subsidized bread.

But the two years of mayhem in the streets since the ouster of Mr. Mubarak have decimated tourism and foreign investment, crippling the economy. The government’s reserve of hard currency has fallen to about $13 billion from $36 billion two years ago.

About half of its currency reserves are in illiquid forms like gold, economists say, while billions more are owed to the foreign companies that operate Egypt’s oil and gas fields. And as a result of the outflows of hard currency, the value of the Egyptian pound has also been falling.

Diesel fuel is the crux of the crisis, in part because Egypt has a very limited capacity to refine it. Diesel is also essential to much of the economy. Not only do farmers use it to power machinery for irrigation and harvesting, diesel truck fuel contributes to the price of almost everything shipped.

Mayy El Sheikh contributed reporting.

Article source: http://www.nytimes.com/2013/03/31/world/middleeast/egypt-short-of-money-sees-crisis-on-food-and-gas.html?partner=rss&emc=rss