Azadi (Freedom) Square: Iran’s own Tiananmen

30 years on from the ’79 Revolution comes an awakening in Iran. And it bears similarities to Tiananmen, some 20 years ago, in the wave of uprising, despair, hope…a faint whiff of momentary freedom to express, dissent and simply let out some long building frustration.

As with all decent revolutions students are to the forefront and are certainly bearing the brunt of reprisals. And those reprisals will come thick and fast, hard and long, brutal and deadly. That’s just the way it is.

The Iranian authorities are somewhat stunned looking like they have been slapped by a wet fish.

“Where is my vote” people ask. Down the back of the sofa in Ahmadinejad’s office probably but the reality is that we don’t know that answer. But certainly the polling in advance of the election suggests the actual result might be rather different to the official one.

This is a big story and like Tiananmen it has captured the interest and hearts of many around the world. The connected generation has been pounding keyboards collating and disseminating information through social media with Twitter, especially, providing an outlet for up to the minute street reports.

Journalism schools will be setting 140 word max reports as part of their testing soon.

@persiankiwi has been a star with 24,000 hasitly assembled followers. Streaming news just took on new meaning. Instead of having the same story respooled and playing non-stop for 24 hours, we are getting a blow by blow account of what’s happening on the ground. It will be interesting to see how traditional media outlets can respond to this.

Given that most of them have been expelled they may not be much help. It suggests that any concerned citizen in any given country on any given day can provide a source of news. You just need a phone and away you go.

Imagine if we’d had mobile phones and Twitter in Tiananmen Sqaure. I wonder what difference it would have made to how China handled the situation.

What interests me most about this is that its an internal action. No regime change here…no hordes of US soldiers and targeted bombs..no neo-con fantasy of parachuted democracy. It’s the Iranian people trying to have their say. That is such a difference to its poor neighbours to the east and west who are mired in US inspired conflict.

In a way the outcome in Iran right now isn’t that important. It could end up really ugly or not. It’s hard to tell but the wheels have been set in motion. The world is watching and supportive of the process of peaceful demonstration.

There may be punishment, deaths, torture but realistically the authorities have limits in that area given the widespread dissent.

As Gandhi once said of British authorities trying to crack down on peaceful protest:

“But how many can be given such punishment? Try and calculate how much time it will take of Britishers to hang 300 million of persons”

Kiva: Game changer

Early in 2008 I commented on the shaping of a post-imperial world where the flow of investment funds, and coporate takeovers, was coming from the East to the West, with China, India, Russia and the Gulf States recycling $ reserves and new found wealth into weak and failing companies in the West.

The catastrophic implosion of the US financial system in the last year has merely emphasised this change in the balance of monetary might.

So when Kiva, that beacon of social entreprenuership, decided to offer loans in the US itself, there was a huge intake of breath. The US needs microloans??!!!

Of course it does. How do small businesses get funded? Normally by people taking out second mortgages, borrowing from friends or ramping up credit cards. In fact I’m told many businesses fund cashflows problems using personal credit cards. Why?

Because banks have a model where they lend on housing as collateral…oh yeah that worked well…not.

The old fashioned approach to banking (one my father was involved in for 42 years) was lending to small business people and supporting them through the ups and downs of the business cycle. Investing in people and creating relationships of trust.

I think we are headed back to this and it’s peer to peer lending that is making this happen. The web itself has allowed these bonds to be built, that’s what networks are after all. Lots and lots of micro connections. Isn’t that the amazing thing about the web? It’s so huge and vast yet it’s simply a conglomeration of molecules connected together.

I know I’ve been bagning on about this for ages but banking, like media, will be forced to change. The micro world is causing new networks to be created, new bonds to be formed and new efficiencies to be found.

Harnessing the power of the web is allowing this to happen.

Microfinance has shaken up the banking world. I enjoyed reading Matt Flannery’s piece on the Kiva story.

Microjustice will no doubt change the legal world in due course.

We already have microrelationships, micromedicine surely on the way.

And the biggest prize of all………..microgovernment.

The change is coming, the inexorable march of system reorganisation is humming away in the background. It’s not top down, it’s an unseen mass movement with no control function. A pure chaotic system in action, free to develop and receive feedbacks in real time.

Who would have thought a lender from Domenica would be funding a borrower in the US.

Yes times are changing.

Small Things Challenge

This is a no brainer.

Intel donating 25cts for every time you click on this page.

There are links to Global Giving, Save the Children and of course Kiva!

Giving as a way of life, monetarily or time wise, is a growing movement. Technology and social media is helping this really transform the process of philanthropy. It’s creating social innovation and driving potential long terms changes in how society can work.

Perhaps even sending a signal to the tax and welfare system. Maybe we don’t need big government. Maybe something new will come from all of this.

Tank Man: 20 years on from Tiananmen Square

I always remember this day and this event. Mainly because it screwed up my plans to cross China and get the Trans Siberian railway home after 20 months backpacking. As it was my girfriend and I were in Sust the last village before the Khunjerab Pass that links Pakistan with China and is the highest order crossing the world. It was a glorious spot with the towering Karakorams in the distance. Anyway the plan was set until we met this English bloke walking down the road to us. He’d just crossed over the border which had been shut and told us what had happened.

Remember this was BG (before google!) and before email even. News came via GPO Poste Restante and the travellers grapevine. So that was the end of that idea. It’s actually the closest I’ve ever been to China which is still on my list on places to visit.

But a lot has changed since that fateful day in Tiananmen Square and yet much has remained the same. The Chinese authorities began their media clampdown many months ago by suspending YouTube and more recently by blocking Twitter (what a compliment!) and Bing (Crosby??). As well as the usual quiet word in the ear of any one thinking about protesting or even acknowledging the anniversary.

So fear still rules. But fear of what exactly? Many Chinese are pretty happy with the way their economy has grown and how the modern world has been welcomed in. Sure not everyone has benefitted but there is a certain pride within the nation that much has been accomplished in recent times. Times like this are a real test for an authoritarian society. Dissent cannot be tolerated at any level.

But truth is a slippery ball and when one looks across to Hong Kong, where over 100,00 people gathered to mark the occasion, one can see that the attempt to censor and punish any kind of inquiry or examination is really a waste of time. People know.

China is a unique country with a long history and strong culture. Change comes slowly but hopefully those in charge will come to see the futility of repressing protest completely and censoring mass media. One thing though is for sure:

Tank Man is an enduring image of the 20th Century and no amount of propaganda or control can ever change that.

$ out of favour as reality sinks in

It’s been nearly 9 months since the $ started to show signs of meltdown fever. Except the meltdown was the rush to buy $ as a hedge against collapsing markets and disappearing credit lines.

In the last few months we have seen markets bottom and even recover some poise, aided and abetted by the action of nearly last resort, quantitative easing. There was nothing left in the toolbox really.

So far so good in some respects. The S+P has rallied 37% off its lows…….mind you its lows were 57% down from the highs and the index still stands 42% off the highs of the last few years. Not that the numbers really matter. The main news is that markets are functioning…still.

And the $ balloon has finally burst with QE signaling a chance to sell the $ without worrying what the equity markets were doing. The Kiwi$ has rallied 32% from its March low even outpacing the hammered Pound, up 21% from its low of $1.35.

Markets can do very strange things. Even whilst the $ was rallying to extreme highs against all currencies, no one really wanted to own it. Now people really really don’t want to own it.

This is all very well but this type of volatility is impossible to manage. How can any investment manager talk about average returns of 10% a year when markets are moving at this rate. How can any business hedge currency risk when currencies are moving like this.

The bigger problem for the US is trying to stop the snowball effect that may happen if markets really decide to dump the $. The noises coming from China may be regarded as monetary brinksmanship but with Russia, looking very wolflike these days, nibbling in behind, it’s becoming a more serious issue.

There’s a lot of politics involved in this but the positioning is clear: the US is weak not just economically but militarily. The exhausting foray into Iraq has stretched the US war machine as well as seriously impacting on its reputation. Historically the ability to create coin or currency was usually backed up by military power. One of the first actions by invading nations was to replace the local currency with its own.

This makes currency both a political and economic issue. So whilst there is unlikely to be any immediate change in the $ role as global reserve currency, there is no doubt that the dance of change is underway.

The short term problem for China is its huge ownership of US bonds and other paper. So they wouldn’t be happy with a complete collapse right now but it seems like less money will be staying in $ and more will be finding a new home whilst they work out how a new global currency system might operate.

But with GM falling apart and US unemployment rising to severe levels, concerns over the health of the $ will only continue to mount.

Ethnic Cleansing: A Dirty Business

So the Tamil Tigers are no more and yet another ethnic conflict comes to a miserable end. How many killed for this? Has it made any difference? It may take some time for that question to be answered. Like many ethnic conflicts, this one seems to have gone on for a long time making one wonder what exactly it was all about.

My parents actually lived in Sri Lanka for a short time just before the civil war broke out. I spent the Xmas holidays on 1980/1 visiting them and enjoying the gorgeous beaches of the south west and the green hinterland. When I heard that civil war had broken out it didn’t really resonate with me. As a 14 year old, the Sinhalese and Tamils I had met just seemed like people. Also growing up with the conflict in Northern Ireland never far from the news, it seemed par for the course.

People, even of the same colour and country, could still engage in war. Both sides of my family have been on the wrong end of the ethnic vacuum cleaner so maybe I was just inured to it.But these days I am very tuned into any mention of ethincity and references to improving the hygiene of ones home country.

Whilst pondering the end of the latest carnage I was floored by the story of a Catholic man who was beaten to death by a group of Rangers football supporters in a small town in Northern Ireland. It was after Rangers had triumphed by winning the Scottish soccer leage competiton that a bunch of Rangers fans, Protestants, decided to pay a visit to the Catholic part of town and basically murder someone. Which they did.

So it continues. It’s a bit 20th century though.

Nowhere is immune from this.

What about that gorgeous Kingdom of Happiness, Bhutan. Apparently a wonderful place to visit and a very progressive society. In fact about 5 years ago I included Bhutan in a paper on E-government. It was quite advanced for a small mountainous country. No mention in the Wikipedia entry of ethnic cleansing.

Yet in the last 15 Years nearly 15-20% of the population has been cleansed and evicted from the country. What the..???

They certainly kept that quiet. 120,000 Bhutanese have been transformed into refugees living in 7 camps in Nepal. Some have found their way here to Christchurch to start a new life.

It feels like an ongoing epidemic……it’s hard to know when it will stop. Our identity is so important to us, yet at the same time it allows the tyranny of the majority an easy way to express any kind of anger or frustration. As Amartya Sen writes in “Identity and Violence“,

“..a major source of potential conflict in the contemporary world is the presumption that people can be uniquely categorized based on religion or culture”.

Indeed but it’s our willingness to succumb to group behaviour and peer pressure that allows atrocities like ethnic cleansing and genocide to happy. How can we move away from the “clash of civilizations” and to an appreciation of the person?

Actually I don’t know if we can. It seems so ingrained in our nature. Of course we can all educate our children and imbue them with values that include compassion, kindness and care.

I wonder how technology will help? I have a feeling that will play a bigger part than we realise. Maybe when all the teenagers around the world are connected through the semantic web……who knows?