Failures – exposed, reflected, considered

Singapore, Rousseau and the social contract

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In 1965, less than two years after joining Malaysia, Singapore was forced to leave the bigger country and declare its own independence.

Then its economy was in tatters. Lawlessness reigned. High levels of unemployment, lack of sanitation, short supply of potable water, and ethnic conflict were conditions that marred Singapore. About three million people, half of who were unemployed, occupied an island that was sandwiched between two large and unfriendly states: Malaysia and Indonesia. Ethnic Chinese and Malays were divided by race and language and often fought street battles.

Both economy and political situation were dire and mutually reinforcing.

1960s conventional wisdom in economics held that every nation, especially a small one, needed a hinterland to succeed. Singapore had none. The status-quo wisdom of development economists was that multinational corporations were great exploiters of cheap land, labor and raw material.

Forced to by all means to find work for their people, the leaders of Singapore engaged in promoting “globalization” before it became fashionable to do so.  The reason why Singapore embraced globalization one generation earlier than other third world countries was because it had no choice but go against the dependency theory that was the predominate economic thinking of then.

But globalization was but one sign of manifestation of a bigger picture. At the heart of the Singapore model is the social contract that was articulated between the ruling People’s Action Party (PAP) run government and the people of Singapore. In essence, it said that while the people were willing to accept more government control, give up some individual rights, and work hard, the government would create the environment that would deliver prosperity and a better quality of life.

The idea of social contract is not new.  Rousseau was among one of the most prominent theorists of social contract. In his view, the larger the bureaucracy, the more power required for government discipline. Normally, this relationship requires the state to be an aristocracy or monarchy (as far as he is concerned, both could be elected). Rousseau argues that the political authority (with which people are in social contract) will have two parts, sovereign (generic, legislative, representing the general will, which he defines as the rule of law) and government (particular, administrative day-to-day).

The autocratic dominance of the ruling PAP also provided confidence that national policies based on the social contract would remain stable in the short run, while continued efforts would be made to plan for Singapore’s long-term challenges.  And they did.

In the period of 1960-1999, Singapore had been able to achieve an average annual economic growth of 8%.  Singapore became one of the fastest-growing countries from 1970 to 2000, and the country has been classified as a ‘Growth Miracle’ and as an ‘Asian Tiger Economy’. As a result, World Bank officially classified Singapore as a “developed economy.”

The Singapore story is a thorn in the side of development specialists from the school of thought that Samuel Huntington has labeled as ‘convergence’ theorists, who believe that all desirable characteristics of national development (democracy, free markets, higher standards of living, etc.) reinforce one another. While democracy in Indonesia after Suharto and in the Philippines after Marcos has caused even more economic uncertainty and overall poverty, it has been the reign of an autocratic regime in Singapore that delivered economic development.

1. As the democratization of third world countries in Eastern Europe, Latin America and East Asia has shown over the last decade, being elected to office by the general populace provides no guarantee that national leaders will be free of corruption, effective, or dedicated to the national interest. In the case of even President Salinas of Mexico, a moderately respected elected president by Latin American standards, the national interest came second to his personal interest to keep the instability of the Mexican economy brewing while he changed jobs to become the head of the World Trade Organization (WTO). Contrary to the unanimous pushing by his economic advisors who were convinced that Mexican currency and financial markets could be saved from imminent collapse if an immediate devaluation of the currency was made before his retirement, Salinas did not act for fear of blotting his reputation. Like the Mexican example, the financial collapse of democratic Thailand and Russia in 1997 showed that elected leaders who come to power with substantial expectations on their shoulders after intense campaigning in which they promised significant national (social and economic) development, can never be immune from mortgaging the future of their people to finance grandiose if imprudent national projects that among other things, serve to enrich the cronies that helped in the outcome of the election in the first place.

2. Apart from effective governance, Singapore government exercises considerable discipline in managing its economic affairs. While PAP ran on a socialist platform to get elected, it was careful of which industries the government nationalized. Usually, the government did not intervene in markets it felt the private sector was doing a good job of meeting Singapore’s economical interests. This policy was outlined in a speech called “Survival” that former foreign minister, S. Rajaratnam, delivered in the early 1970s. In the speech, Rajaratnam told that the government supported state-run corporations like Singapore Airlines and Neptune Ocean Lines because the private sector did not have the ambition nor the financial backing to start such essential organizations that would make possible trade with the developed countries.

3. Importance that the government has attached to Singapore’s human resources development and the investments it has made in its own people. While the PAP ruthlessly crashed all independent labor unions and consolidated what remained into a union umbrella group called the National Trade Union Congress (NTUC), which it directly controlled, it did set up technical schools as well as paid foreign corporations to train unskilled workers for higher paying jobs in electronics, ship repair, and petrochemicals. For those who still could not get industrial jobs, the government enrolled the participation of the NTUC in creating labor intensive, “un-tradable” services, mostly for the purposes of tourism and transportation.

Written by Hayk

March 10, 2013 at 9:53 am

Chicken or egg: democracy vs economic growth – case Thailand

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With 2011, a wave of unrest descended upon the MENA. What became later known as “Arab Spring“ represented a ragged set of uprisings throughout MENA countries including Tunisia, Egypt, Libya, etc. The vision of those uprisings was but one, at least initially, as it could be heard on every street and square, shouted or screamed from mouths young and old. Freedom. Democracy.

Some of those uprisings turned ugly (civil war in Libya and Syria), others (Tunisia, Egypt) ushered in what many reformers/revolutionaries believed to be a new era.

Freedom, democracy. Of course, those high-pitched and loaded terms are as cliché by now, without much merit nor substance, rallying slogans for disillusioned and ignorant. What people really meant, or needed to mean, was “better life standards,“ “more and secure jobs“ (on social/personal level) and “economic growth“ (on national level).

Another cliché/stereotype associates democracy and economic growth. Many think that those two are interchangeable, i.e. occurrence of one will automatically imply or cause the other. Then there is “modernization theory,” predominant since the late 1950s onward, and which claimed that middle and other aspiring classes created by industrial capitalism would necessarily (and eventually) bring about accountable and democratic governments. Reality is less obvious that this foregone and simplistic conclusion.

Why so? There is an easily spotted pattern, in which democracies usually are among the economically developed countries. However, the paths to democracy are varied. One is tempted to think that lack of economic stability or growth, which implies increasing poverty levels, will trap societies in a vicious political circle of dictatorial reign and economic deterioration. While bonds of poverty cannot be dismissed, they are not inexorable. Countries such as Taiwan, South Korea, Japan, Singapore, Malta and Greece went from utter poverty into spectacular growth, some as much as quadrupling their per capita incomes. Dictatorships bloomed in Taiwan and Singapore during the entire and South Korea during most of this period of drastic economic transition and growth. Only Japan and Malta remained democratic throughout their respective periods of economic growth, and Portugal as well as Greece tattered between democracy and dictatorship, while growing economically.

There is no predictable pattern, but once a democracy is established, its survival depends on a few factors. Foremost among them is the level of economic development.

Let’s have a closer analysis of how a democracy caused an economic depression, with a study of Thailand’s recent history.

In the 1980s and early 1990s, nations from Indonesia to the Philippines embarked on their own democratic transitions, not unlike the 2011 Arab Spring. In Thailand, hundreds of thousands (middle class) came out into the streets of Bangkok in 1992 to bring down a military government. They wanted democracy and freedom. Thailand boasted a large, educated middle class, one of the best-performing economies in the world, and a relatively robust civil society. By the late 1990s, Thailand had held several free elections and passed a reformist constitution that enshrined greater protections for civil liberties and created a wealth of new institutions designed to ensure civil rights.

However, the “reformist“ frenzy started cooling off in the late 1990s, as many leading Thai reformers, who were behind the protests in 1992, backed off. They believed that Thailand had passed a threshold (of transition to democracy and economic growth), and as a result, many NGOs, media watchdogs, and organizations that were instrumental during and in the immediate aftermath of the 1992 uprising closed down. It only helped, with dawn of the Asian financial crisis in 1997, to put many of those idealistic-minded middle-class reformers into unemployment, making it even harder for them to spend time volunteering at organizations dedicated to reforms.

As Thai reformers slowly drifted off, a telecommunications tycoon Thaksin Shinawatra used his fortune to build a political party. He bought up politicians to join his party. To soften the blow and an at the same time trying to appeal to the larger part of the Thai society, the poor, Thaksin initiated a well-thought combination of entrepreneurial inducement and grassroots empowerment projects, including inexpensive health care schemes and loans to villages to start businesses.

In 2001, Thaksin became the elected PM, and showed little love for democracy. He used his power to threaten Thailand’s free media, eviscerate its independent civil service, and launch a campaign against insurgents in the Muslim south. He rewarded political allies and punished political enemies. In 2005, Thaksin was reelected, again with massive support from the poor, and largely thanks to the lackluster opposition of the Thai middle classes, which by then had grown disillusioned with democracy, believing it had delivered only elected autocracy. The reaction was prompt. Another row of street protests in 2006, whereby Thai middle class once again took to streets, hoping to topple the elected (autocratic) government. The result was a military coup of 2006. Thaksin fled into exile.

The military coup triggered an economic meltdown. Thaksin might have damaged the country’s weak democracy, but the military ruined it. It shredded the reformist constitution and set the stage for today’s Thai government, which unleashed massive force against demonstrators who gathered in the streets of Bangkok in spring 2010.

Thaksin is once more back to the country, in a proxy way, via the elections favoring his sister’s party and her as a PM.

How to avoid a similar democracy failure in MENA?  It is essential to create and keep independent government watchdogs, new and independent press outlets. Introduction of government policies to reduce economic inequalities is also vital, allowing an increasing transition from low to middle class. Lastly, while a charismatic (or not so much) leader is a good focal point for rallying reformists, a more important and longer-term reform is to induce a knowledge economy and infrastructure facilitating foreign investment and (especially foreign-owed) property rights/protection.

Written by Hayk

February 20, 2013 at 9:19 am

Top 10 ways to manipulate people (Chomsky)

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Noam Chomsky wrote the article entitled “top 10 ways to manipulate people.” Below is the reprint of this article.

1. The strategy of distraction

The primary element of social control is the strategy of distraction which is to divert public attention from important issues and changes determined by the political and economic elites, by the technique of flood or flooding continuous distractions and insignificant information.

Distraction strategy is also essential to prevent the public interest in the essential knowledge in the area of the science, economics, psychology, neurobiology and cybernetics.

“Maintaining public attention diverted away from the real social problems, captivated by matters of no real importance. Keep the public busy, busy, busy, no time to think, back to farm and other animals” (quote from text Silent Weapons for Quiet Wars).

2. Create problems, then offer solutions

This method is also called “problem -reaction- solution.”

It creates a problem, a “situation” referred to cause some reaction in the audience, so this is the principal of the steps that you want to accept.

For example: let it unfold and intensify urban violence, or arrange for bloody attacks in order that the public is the applicant’s security laws and policies to the detriment of freedom.

Or create an economic crisis to accept as a necessary evil retreat of social rights and the dismantling of public services.

3. The gradual strategy

Acceptance to an unacceptable degree, just apply it gradually, dropper, for consecutive years.

That is how they radically new socioeconomic conditions (neoliberalism) were imposed during the 1980s and 1990s:

• the minimal state
• privatization
• precariousness
• flexibility
• massive unemployment
• wages
• do not guarantee a decent income,

…so many changes that have brought about a revolution if they had been applied once.

4. The strategy of deferring

Another way to accept an unpopular decision is to present it as “painful and necessary”, gaining public acceptance, at the time for future application.

It is easier to accept that a future sacrifice of immediate slaughter.

• First, because the effort is not used immediately
• Then, because the public, masses, is always the tendency to expect naively that “everything will be better tomorrow” and that the sacrifice required may be avoided

This gives the public more time to get used to the idea of change and accept it with resignation when the time comes.

5. Go to the public as a little child

Most of the advertising to the general public uses speech, argument, people and particularly children’s intonation, often close to the weakness, as if the viewer were a little child or a mentally deficient.

The harder one tries to deceive the viewer look, the more it tends to adopt a tone infantilizing.

Why?

“If one goes to a person as if she had the age of 12 years or less, then, because of suggestion, she tends with a certain probability that a response or reaction also devoid of a critical sense as a person 12 years or younger.” (see Silent Weapons for Quiet Wars)

6. Use the emotional side more than the reflection

Making use of the emotional aspect is a classic technique for causing a short circuit on rational analysis, and finally to the critical sense of the individual.

Furthermore, the use of emotional register to open the door to the unconscious for implantation or grafting ideas , desires, fears and anxieties , compulsions, or induce behaviors …

7. Keep the public in ignorance and mediocrity

Making the public incapable of understanding the technologies and methods used to control and enslavement.

“The quality of education given to the lower social classes must be the poor and mediocre as possible so that the gap of ignorance it plans among the lower classes and upper classes is and remains impossible to attain for the lower classes.” (See Silent Weapons for Quiet Wars).

8. To encourage the public to be complacent with mediocrity

Promote the public to believe that the fact is fashionable to be stupid, vulgar and uneducated…

9. Self-blame Strengthen

To let individual blame for their misfortune, because of the failure of their intelligence, their abilities, or their efforts.

So, instead of rebelling against the economic system, the individual auto-devaluate and guilt himself, which creates a depression, one of whose effects is to inhibit its action.

And, without action, there is no revolution!

10. Getting to know the individuals better than they know themselves

Over the past 50 years, advances of accelerated science has generated a growing gap between public knowledge and those owned and operated by dominant elites.

Thanks to biology, neurobiology and applied psychology, the “system” has enjoyed a sophisticated understanding of human beings, both physically and psychologically.

The system has gotten better acquainted with the common man more than he knows himself.

This means that, in most cases, the system exerts greater control and great power over individuals, greater than that of individuals about themselves.

Written by Hayk

November 10, 2012 at 12:38 pm

Stark Lessons From The Costa Concordia Disaster

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This is a guest blog by Eve Baxton.

Nowadays, cruise ships are widely regarded to be one of the safest forms of travel, more so than both airplanes and automobiles. Like with all forms of travel however, when an unfortunate disaster does strike, it usually provides stark lessons for the future – prompting new safety procedures, policies and changes in law to avoid the same ever happening again.

Perhaps the most profound maritime example of this was in 1912 with the sinking of the RMS Titanic. Since the disaster, which claimed the lives of over 1,500 people, swift changes were made within Maritime law in regards to passenger safety; namely, providing enough lifeboats for all on-board. An obvious safety precaution it would seem, but human error can still find a way – as the sinking of the Costa Concordia earlier this year also demonstrated.

Around 9:45, on the evening of the 13th of January, the Costa Concordia struck a rock just off the eastern shore of Islo Del Giglio, on the western coast of Italy, tearing a 50 metre gash on the left side of the hull. Parts of the engine room immediately began to flood and having lost power, the ship drifted back towards the shore of Giglio, where it grounded and began to sink on its starboard (right) side (otherwise known as ‘listing’) – eventually rendering the lifeboats on that side unusable. Instead of being evacuated within 30 minutes of the abandon ship announcement (as Maritime Law dictates) it took over six hours for all surviving passengers to make it off the ship, despite the close proximity to shore and calm sea. The disaster resulted in the deaths of thirty people, with another two missing and presumed dead.

Both the captain, Francesco Schettino, and Costa Cruises received heavy criticism for the disaster and loss of life which could’ve been avoided had multiple safety violations not been made and protocol been better adhered to. Like the Titanic, and other more recent maritime disasters (such as the MV Le Joola in 2002 and the MS al-Salam Boccaccio 98 in 2006, killing over 4000 and 900 people respectively) the sinking of the Concordia has prompted multiple changes in maritime law.

The Cause

The sinking was a direct result of the Concordia moving off its designated route, to within 150 metres close of the shore, in a manoeuver known as a ‘salute’ or ‘showboating’, a sail-by for promotional purposes. Most if not all cruise liners perform these manoeuvers, which by their nature have the potential to be dangerous, but are safe if they’re properly navigated. This one however was instead scheduled to take place a few days previous, but was cancelled due to bad weather. It was claimed by crew members that Schettino, deviated from a GPS navigated route past the shore in order to make this salute; which ultimately led to the Concordia’s collision.

Abandoning Ship

With too many of the hull compartments breached with water to keep the ship afloat (in such a way that mirrored the fate of the Titanic) and its sinking inevitable, fatalities still could’ve been avoided. After the initial impact and power had been lost, frightened passengers were told that there had been a power failure and not to worry. Once the extent of the situation was established, passengers were eventually told to get put on their life jackets and to go to their muster stations. However, illustrating the lack of direction and communication amongst the Concordia’s crew, a crew member was filmed telling passengers that all was well and to go back to their cabins, just 30 minutes before the abandon ship announcement was made. When it eventually was, the crew were reluctant to lower lifeboats, almost an hour before the ship began to list making them impossible to deploy thereafter. Consequently many passengers were left stranded on the ship, whilst some made it to shore on lifeboats, others being helped by locals, and others attempting to swim to shore. The captain broke protocol by leaving the ship whilst his passengers were still on-board. The evacuation efforts went on until 4:46 am.

The Changes in Law

Perhaps the most prominent change in maritime law prompted by the Costa Concordia is that all cruise liners must now hold safety drills for passengers before the ship even leaves the dock. Previously, it had to be held within the first 24 hours of setting sail. In the Costa Concordia’s case, this drill was held within the first 24 hours for new passengers, but of the 4,252 passengers, 696 people who boarded the ship at Civitavecchia had not been briefed on safety procedures, with the drill scheduled for the next day. This naturally caused a lot of confusion and panic when passengers were called to the muster stations.

Other procedures under review include the way in which crew take the muster. Amidst panic during an actual disaster, or during a routine drill which holidaying passengers may not take seriously (or pay attention to) the accuracy of calling out names and ticking off lists comes into question – especially on large cruise liners with thousands of passengers. Royal Caribbean Cruises have adopted a more effective method on two of their cruise ships. Both Oasis and Allure of the Seas (two of the largest cruise liners in the world) have a far more accurate method in which the crew scan passenger’s key cards, allowing them to determine who is present in a much swifter, less chaotic fashion. Another possible change is the addition of more life jackets in public areas. With the power cut on the Costa Concordia, dark conditions made it difficult for passengers to go back to their cabins to retrieve their life jackets, more so for recently boarded passengers unfamiliar with the ships layout. Royal Caribbean Cruises again have been quite innovative with their solutions, handing out lifejackets at the muster stations instead.

Countless other regulations, precautions and procedures are also being reviewed, with staff training also being reassessed. The nature of disasters such as the sinking of the Costa Concordia, or even the Titanic, are so often made up of one initial incident, mistake or otherwise, which doesn’t necessarily have to pose a threat to human life. What does pose a threat however is when the correct procedures are not adhered to, or are ineffective, causing more mistakes to be made and turning something preventable into a disaster. Maritime law has continued to push for the highest standards to protect everyone who goes on a cruise, with each (albeit statistically rare) disaster over the years shedding light on areas that need improvement; having a large impact on the safety regulations, precautions and procedures of today. These all serve to protect passengers, whatever the situation. And perhaps it’s because we learn so much from the past that a cruise ship still remains one of the safest ways to travel.

Written by Hayk

November 10, 2012 at 10:22 am

Don’t Fail Your Business – Avoid the Most Obvious Traps

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This is a guest blog by Eve Baxton.

Owning a professional business is a huge responsibility. It involves all the potential risks and traps that are imaginable. According to a survey in 2009 by PrinceWaterHouseCoopers more than half of the enterprises suffered from the economical crimes. In most of the cases, small sized enterprises are the best prey to fall for potential traps around.

These dangers include employees or managers misrepresenting or manipulating the financial information, customers misusing the enterprise’s borrowing in criminal activities and contractors producing false bills. Along with that, other elements exist that perpetrate fraud against the enterprise by electronic means. This includes hacking, manipulating the telephone service and robbing customer’s confidential data, such as credit card numbers or usernames and passwords.

The ultimate quest that should be taken care of as soon as possible, to protect your business is identifying the sources of potential fails. That is not an easy task to take on, for a less experienced businessman. By just considering some basic and yet important things, the enterprise can be easily protected from potential frauds, however.

According to the statistics, the most common reasons for falling into these traps are the lack of experience, commitment, and, most significantly, management. Let’s take a look at the potential traps that most of the enterprises, no matter big or small, fall for.

 

  • The Innocent Employee Trap
    According to the facts, most of the time insiders; employees, managers, or company’s officials, are the main reason for an enterprise to fall and fail. These employees “innocently” steal the assets of the company, and commit accounting frauds. Detecting such actions is vital; it requires a lot of methodologies and commitment to be employed, however.
  • The Clever Customer Trap
    Another hazardous trap that most of the enterprises fall for is the clever customer trap. It has been found that many customers are using fake identities, stolen credit cards, or are filling out fake liability and injury claims to perpetrate the company. All these actions by “the sweet customers” only results in the enterprise’s money being taken away.
  • The Fake Return Scheme Trap
    The most common victims of this type of frauds are retailers. It is the best scam for the clever customer to perpetrate against any enterprise. Most of the times, the customer brings back used merchandise that has not been bought from the same place and tries to return it and get new merchandise under the shelter of the fake return schemes.
  • The Greedy Contractor Trap
    Most companies rely on outside service providers for its survival. Therefore, many of the enterprises fall for the greedy contractor trap. It is not uncommon for the contractor to bill more than the task he has done is worth, and more often even asks for the billing of a task that has not yet been completed. Strong policy, terms, and conditions should be presented to the contractors, before entrusting them with any task, to avoid these attempts, and leaving no room for the contractor to commit such frauds.

 

Protecting Your Professional Businesses

After viewing the potential traps, let’s take a look on the precautionary measures that an enterprise can take to avoid unnecessary fails; these important methodologies can fraudproof your business against its very own employees.

  1. The Method of Anonymous Employee Reporting

Utilizing this method is one of the best methods for detecting the potential dishonesties that can occur within your business; compared to scheduled employee reporting, the violators’ opportunities to destroys any vital fraud traces are severely limited.

  1.  The Method Of Surprise Auditing

Along with the regular, scheduled internal audits, surprise auditing should also be performed in the enterprise, as it significantly increases the chances of detecting potential irregularities, thus making your company more protected.

  1. The Method of External Auditing

Along with the above mentioned methods, this is also a significant tool to determine a potential fraud; it should be held at regular intervals.

 

Business Insurance – The Ultimate Protection

Along with all the above methodologies, the most important step in stabilizing an enterprise is business insurance. It plays an important role in the art of preventing the failures related to undetected frauds. Professional business insurance protects the business from many unexpected frauds, and it enables a recovery from what may seem as a catastrophic loss. Even when insuring your business, you should consider several key factors, however; for your business insurance to be viable for you, it needs to offer an equal protection for any business, regardless of its size, and to provide protection from all sources of frauds and failures. First thing that comes to mind is protection from theft. Theft is the most common and uncontrolled source of assets loss that occurs in most enterprises internally and externally, making insurance without theft protection almost useless. Protection from litigation is another important aspect; while unfounded law suits from wealthier competition are likely to turn out in your favor, the costs before you prove your innocence can cause your business to fail, so proper insurance has that covered. Protection from unwanted liabilities provides you with protection, when the assets, coming from your company, are used for any illegal activities, which is not a rare occasion with internal frauds and thefts.

It’s your responsibility to implement a fraud proof protection method, that suits best to your enterprise’s needs, properly. All it requires is some commitment and dedication towards the business; no matter how malicious the fraudster’s aims are, you can stop your company’s fail before it’s to late!

Written by Hayk

October 30, 2012 at 6:29 pm

Personal (almost-fail) story: what climbing can teach about life and business

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Let me start by stating the obvious: humans are irrational.

Let me give just one illustration of our irrationality. Climbing. Why do we climb? Some mountains have picturesque and pleasant landscapes, forests or flowery fields. Some happen to have spectacular views from top when weather conditions allow. Apart from those few – and they are in relative minority – serious mountain climbing (anything above 4,000m and even many lesser ones) implies significant effort and investment; rewards, i.e. the usual goals of reaching the top and view from the top, are usually less than what we expect.

How do I know? I climbed a number of peaks in European Alps including the highest one in mainland Europe, Mont-Blanc. And only few weeks ago, I came back from Tanzania, where I climbed Kilimanjaro.

Kilimanjaro, consisting of three volcanic cones, is the highest mountain in Africa and the tallest freestanding mountain in the world, rising 4,600 meters from base to summit. Of three volcanic cones, Kibo is active and can erupt again any time (most recent volcanic activity registered 200 years ago). Kibo’s peak, Uhuru (“freedom“ in Swahili), is the highest (5,895m) peak of Kilimanjaro. Climbing Kilimanjaro is easy and requires no technical climbing or mountaineering experience, the biggest challenge being body’s ability to acclimatize to its high altitude. Unsurprisingly, most fatalities are caused from improper acclimatization and altitude sickness rather than falls. Only an average of 70% of climbers ever make it to the top.

Many who climbed Kilimanjaro will tell you one thing if you ask them about the experience: the last day ascent to the peak is rough (by any of the routes) but quite unrewarding in terms of view as once you reach around 5,600m height, it almost flattens (at least via Coca-Cola route). For the remaining 300m or so, it feels like walking in a field with occasional boulders on the way. The only way you know you reached Uhuru is when you see a green plate that says you reached the top of Africa.

My guide Loi (who has nine years of experience climbing in Africa) and I started off almost the last ones from the Kibo base camp. Sunrise was still far off, and I didn’t feel much delight or happiness. I felt cold (temperature hovered between  -15C and -20C), exhausted (our cook forgot to put with us food) but nonetheless satisfied.

So, why do we climb? To me – and to the alpinism greats such as Reinhold Messnerclimbing is a way to create oneself, explore one’s boundaries and uncover ones hidden characteristics. This claim is not only valid for individuals but also companies (especially startups), as their activities and vision can easily be paralleled with a climb towards their own “peak.”

That last leg from the Kibo base camp (about 4,800m) to Uhuru peak (5,895m) is the most testing part of the trip for anyone. The ascent usually starts at midnight. Many don’t even make it out of the Kibo base camp as altitude sickness, nausea and headaches sent many aspiring climbers to toilettes and kept them huddled inside their sleeping bags. Once started, climbers face a steep (450) slope of slippery pebbles and sand. Guides impose a snail-pace on climbers because of steepness of the slope, high altitude, low (between -5C and -10C at Kibo the base camp) temperature and whipping winds. The normal speed on that slope is about 500m/h (distance covered by walking up, not altitude). Trying to go faster usually results in panting, nausea and exhaustion, as 5000m is the altitude at which the density of oxygen is twice as less as at level 0, and it is impossible to breathe only with nose as the inhaled amount of oxygen is insufficient (either you breathe both with your mouth and nose or you can take tablets of Diamox which increase oxygen intake and circulation in bloodstream).

Despite the adapted snail-pace, Loi and I started overtaking many small groups. Normal practice was of walking for 15-20mins and taking a short break, allowing the body to acclimatize and rest. During the first three hours, we took only two short breaks, one when I had to take off a pullover which was making me sweat, and second when Loi needed to take a piss. We “raced,“ as one English climber described while he and his guide tried to keep up with us.

From the beginning, I was being drained of energy fast, not least because I was burning lot of energy breathing with my mouth and nose. Realizing I was loosing much energy, I tried to minimize all distractions that could result in further energy lose. Many climbers were constantly looking up or down, checking out how others were doing and spying for any potentially nice view, although it was dark and thus nothing much to see. One could also hear climbers talk to each other, as they were tightly lined up one behind another and walking up slowly. While talking wasn’t in itself a bad thing, it consumed energy. Loi and I neither looked around nor talked much before reaching the first milestone, Gelman’s point (about 5,600m).

That relatively short slot of slope between 4,800m and 5,600m was the most trying for me (and I guess for others as well).  As I had too many layers of clothes on me from the start, I started sweating profusely barely 15mins into the ascent. Our first stop was when I had to take out a layer of clothing, already wet. The feeling of cold from inside never vanished, while I was struggling with my bleeding nose and dry mouth, inhaling as much air as possible. My eyes were set on the feet of Loi who was few centimeters ahead of me. Without realizing it, we overtook all other groups and our longest break – 10 minutes – was shortly before the Gelman’s point. I was utterly exhausted, and at this point had to have some hot water and energy food (cooks usually put Snickers, pieces of chocolate, peanuts or any other energy source and a thermos with hot water). Realizing that our cook forgot to put any provisions with us, Loi dug up four small cookies from his pocket. I had two. Exhaustion didn’t diminish because cookies didn’t help. Once we reached Gelman’s point, we realized we didn’t have much time before both of us became inexorably exhausted. We marched on. Our ascent became increasingly difficult as the temperature dropped even further, and winds became even stronger.

We had to stop every 10mins for a breath. When we reached the second milestone, Stella’s point (about 5,700m), I sat on a piece of rock and was ready to lay down there and then. By then, I stopped feeling cold – all I wanted was to put myself in a horizontal position and close my eyes. Loi realized that we had to move on, otherwise we would freeze to death on that altitude. With an enormous effort of will, we continued to march on. The whole ascent was turning into a rough test of my physical and mental stamina. I became so drained of energy that 15mins before we reached the summit, I dropped onto a piece of rock and was unable to move. Loi, realizing how difficult it became for me to continue moving, try to give me psychological boost, promising we had only 15mins to reach the summit.  I had to force myself to stand up and walk. Last few hundred meters, to give myself more confidence, I started loudly saying to myself “Hayk you can make it; focus on breathing and putting one foot in front of the other and you will make it.“

About 15mins later, upon seeing a green plate a few dozen meters ahead, I asked Loi what it was. At that point I was already having hard time uttering words. Loi turned to me and responded, “we still have another 5mins.“ Luckily, he was joking – to me didn’t seem funny at all at that moment. He came up  and hugged me congratulating and saying we did it. I slumped onto the pedestal on which the green plate was planted, claiming we were on top of Africa. I sat down with my back to it. Loi asked for my camera, which was in the pocket of one of my pants. I refused. He insisted – I again refused. I told him if I as much as unzipped my pants, exposing even a tiny bit of my body, I would freeze to death. He took my two hands in his hands, only realizing they were almost limp. He didn’t insist any further.

We promptly started the descent, without taking any pictures or getting a good view from the highest point in Africa. It was cold (between -15C  and -20C) and dark (5am – sunrise came about 6am), and we had to make our way back despite a perceived impossibility of walking further. Shortly after we launched ourselves back to the base, I realized something. There was no one at the peak when we arrived. This meant that we were the first to arrive to the peak. This thought had a much-needed psychological effect on me. Although we started out late and didn’t revitalize our energy stock due to absence of food and hot water, we made it to the top and did so faster than anyone. This thought gave me much-needed force for the way down.

It was only after we passed Gelman’s point and found ourselves on the steep slope that Loi got me to take out my camera and take a shot of the two of us, still in darkness, dead-tired but happy. He was no less exhausted, but having climbed Kilimanjaro extensively during the last nine years, he was bearing it better than me, my last significant ascent (with some funny adventures on the way down) being 11 years ago on Mont-Blanc.

We made it safely back to the Kibo base, and I had a serious talk with our cook whom I told we almost didn’t make it because of his negligence. As we continued our descent from the Kibo base, we met many climbers on their way up who would ask for advise and tips. We invariably warned them about the last leg and necessity of having energy food and hot water.

Now back to companies. Their ”climb“ is interesting and usually more challenging at the beginning of their existence, or in what we call a “startup“ stage. It is at this stage that many companies create or find their core around which the later growth cristalizes. It is at this stage where many of startups stumble, fall and never recover. Startup stage of a company is thus essential, and it is important to understand how to ”climb” it in order to attain the stated goals and vision.

By an interesting coincidence, I happen to work with a visionary and ambitious startup called Jornal @Verdade. Founded in 2008 by a budding entrepreneur Erik Charas with a grand vision of changing the way information is created and shared and ultimate goal of changing the hearts and minds of Mozambicans, this news agency focuses on grassroots aspects of social and economic development. By having its main target group of readers amongst the most underprivileged and dispossessed, @Verdade offers information, education and aspiration to those who would otherwise go without.

Drawing parallels, equally applicable to individuals and startups, below is what I learnt – and advise others to apply – from both climbing and being exposed to startups in Africa:

  1. When setting up for a journey or a goal, it is important to have an objective which is far and high but attainable;
  2. Once the goal is set, break it into stages (and corresponding mini-objectives in each stage) and stay focused on mini-objectives in each stage;
  3. After reaching each mini-objective, acclimatize yourself or, in other words, get used, to it before moving on – moving on too quickly might become harmful and counter-productive;
  4. When setting up for a goal, know what to have (skills, equipment, etc.) and take with you for each specific part of the trip and leave behind what is NOT necessary;
  5. Ask advise from those you meet along the way, and especially value advise from those who have already “made it“ (to the peak or reached a goal);
  6. The ascent’s objective is its final destination or goal, but having fun and benefiting from the ascent itself (by attaining and rejoicing each mini-objective) is as, if not more, important at each stage than reaching the final destination.

In merely four years, @Verdade became the most read and known newspaper in Mozambique. And while it continues plunging upwards, it has still a long way to go. Its ascent is steep and it has all the currents (political, economic and social) lined up against it. It continues to move on and, at times, like any other human being or startup, needs an encouragement and support as it stumbles and falls. @Verdade’s strength resides in a strong belief of its staff in the value of what @Verdade set out to do and its resolve to achieve every stage of the set goals. It is this relentless drive towards its goals coupled with immeasurable attention and consideration it gives to its target group that will eventually result in realization of its vision.

I believe in @Verdade’s vision and I hope soon all Mozambicans join us in our belief, turning this country into a place they would like their children and grandchildren to grow up and live in.

Failures, confusions and uncertainties pop-up around us at one point or another in all aspects of our lives. They push ourselves towards our limits. They make us discover and re-create ourselves, whether in professional or personal pursuits. They makes our lives worth living.

Written by Hayk

September 29, 2012 at 12:38 pm

Save Yourself From Auto-loan Frauds

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This is a guest blog by Eve Baxton.

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In December 2011, nineteen suspects were arrested in New York. These suspects were part of two fraud auto loan schemes. They used straw buyers, with good credits, to purchase luxury cars like Mercedes and Porsche under these schemes.  These cars were then rented out to criminals and were used for various crimes. The auto loan fraud, therefore, was found to be linked with serious crimes like the double homicide of two Nigerian nationals. The straw buyers were left with bad credit and were sued by various banks due to unpaid loans and parking tickets on cars, which only apparently belonged to them.

How Can You Avoid Such Scams?

If one wants to avoid an unfortunate fate, similar to that of the straw buyers above, while financing a car purchase, then one should undertake the necessary precautions. Opting for a credible car finance scheme is the most important precaution that must be taken. The reliable car finance scheme is simple and requires no deposit and no fees.  A personal finance advisor is also assigned to enhance efficiency and to avoid troubles. Moreover, cars can be bought from any dealer under this scheme. Such a scheme is bound to prevent auto car frauds due to its simplicity and reliability.

Five Car Buying Mistakes People Make:

Not all car salesmen are deceiving. However, one is likely to run into fraudulent salesmen if thorough research is not done. It is easy to be misled by the loan schemes and the convincing power of the salesperson’s reasoning. Five big mistakes that result in a disastrous car purchase, are listed below:

  1. Credit misinterpretation: Many car dealers classify their customers as ‘not eligible’ because of their poor credit score. The customers do not realize that this holds true only for those with unpaid bills or who make payments well after the due date and that their credit score is not that bad at all. The customers are, therefore, made to pay high interest rates which make car purchase greatly difficult and uneconomical.
  2. One transaction: Many dealers compile the three transactions involved into one in order to make money. The customers, therefore, pay more than what the car is actually worth, when not paying attention to this trick.
  3. Unending installments: Some car dealers attract customers by lowering the monthly installments. The customers do not realize that the dealer manages to stretch out the period of the installments by using such tricks. Rather than going with the price, they can pay for the car, customers make the big mistake of going with the payment they can make monthly. Such tricks lead to money making for the car dealers and great money loss for the buyers.
  4. Changing the deal: Some car dealers give the following news to their customers: the financing fell through. The car dealers skillfully use this trick to change the deal and make the customer opt for a more expensive car. Customers who do not have their financing in their hands fall easily into this trap.
  5. Additional funds applied to cars: Some car dealers are given cash incentives to sell certain car models. In some cases, the car dealer might apply such funds to the car. Customers who do not research such funding provided on the car they want to purchase, therefore, pay a higher price for the car.

Car dealers misrepresent information and are able to skillfully misguide uneducated buyers. Customers who are assertive are likely to find and identify the tricks involved. Everyone buying a car should know the car they want to buy and the financing alternatives they have. Not all car dealers are dishonest, but care must still be taken. Making mistakes like those stated above effectively lead to a big car financing failure.

Educated customers are those who perform a thorough research before heading out to the dealer. Make use of the extensive knowledge on the web and compile a list of car buying tips. This will certainly help.

Auto loan frauds have unfortunate consequences. They only lead to a never ending loan, a price which the car is not worth, and a high interest rate. One can do better by avoiding such fraudulent car financing schemes which only end in disaster, and opt for reliable and credible financing service, such as CarLoan4U.

Written by Hayk

September 29, 2012 at 12:18 pm

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