Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Sunday, 10 July 2011

China Media Booms


No one really knows how many television stations there are in China. Best estimates put the number at 5,000. Yet, just over ten years ago there were no more than 40. The number of newspapers has increased from around 200 to more than 2,500, radio stations have blossomed from a 100 to 1,200 and TV and radio penetration is now over 85 percent.

In just, 10 years, the media in has exploded. But it is still heavily regulated and owned and controlled by the state run Communist Party. Most local media is pro-China in its content and style and is used as a tool for control and influence over the country's huge population.

There are also limits on foreign journalists - where they can travel and to whom they can speak. Overseas media regularly have their offices screened and their activities are closely monitored.

Taiwan, Tibet and human rights issues are strictly off the editorial agenda.

Despite this, consumerism has well and truly arrived in China. There's now an increased sophistication in the market - and marketing communications, brand management and reputation building have become big business.

There is no such thing as privately owned media in China - and foreign companies are restricted. Consumerism is driving up advertising revenue. The dominant Chinese television network, CCTV is said to earn a total of 1 billion yuan or A$200 million a year.

So in this environment how can Australian companies effectively get their message across and plan marketing communications strategies in China?

The first thing to understand is how companies will have to work in a very complex and constantly changing regulatory environment.

"China is very conscious of reforming its media and has some relatively progressive thinking internally about where to take it," said Gary Davey CEO of Star TV in Hong Kong. "But it's going to take a very long time because they are equally sensitive about the importance of control."

An older generation of bureaucrats still sees the media, and television in particular, as a propaganda device and any attempt to reform it into a commercially driven business raises great suspicion amongst the Chinese leadership.

In the past the News Corporation owned STAR TV has upset Chinese authorities and Davey is quick to point out the sensitivities of the Chinese marketplace, especially when it comes to cultural differences.

"You might be able to run a successful State-run security operation by trying to force your own cultural values down someone else's throat, but you certainly can't run a business doing that."

STAR TV has had to develop strategies that fit these realities. "We've created new companies with Chinese partners to play a part in the evolution of the policy," Davey said.

The days of handing out long red envelopes filled with cash to journalists at press conferences in China could also well be over. The industry is trying to clean up its act and has recently released a new code of practice for both public relations professionals and journalists.

The local media is still very pro-China in its content and style but the practice of accepting cash and gifts in return for running positive stories is now being phased out.

Tony Turner has worked in corporate communications in China for over 25 years and is the Hong Kong based Chairman of the Rowland Company.

He says in the past there has been a degree of cronyism, corruption and lack of transparency in the media but that is changing as Western-based multinationals entered the market with a new set of communication standards.

"What we've got today in Hong Kong is a highly professional, highly inquisitive and free media," he said.

Turner believes many multinationals don't want their name tarnished by being caught for paying journalists.

"The opportunity for PR and professional PR is as great as it ever could be," Turner said.

This view is reflected in Beijing where Gua Hu-ming heads up the China International Public Relations Association. He says PR as a profession, started in China 15 years ago and first appeared in joint venture hotels.

In the past it has been standard practice for reporters to accept cash and gifts in return for running positive stories or even working in conjunction with investors to ramp up the stock market.

But this is changing Mr Gua believes the Chinese media and journalists are becoming more professional.

But what impact is the Internet having on traditional news sources and PR campaigns?

Dr Xueli Huang is an expert on Internet marketing based at Edith Cowan University in Perth.

He says Internet usage is growing in China with 60 million users but news content is still heavily controlled.

Most users are young and cannot afford a computer. Instead they use Internet cafes to send emails and their main news sources are limited to international news sites such as the BBC World Service and CNN.

"I don't think the Chinese Government will ban all the news sites, but Government will certainly want to control political sites."

Bandwidth is also a problem in China. Huang believes newspapers, radio and TV will still provide local news because of the time in downloading information from the Internet and the lack of infrastructure.

So if you are doing business in China here are 12 success tips for implementing a successful marketing communications plan:

1. Understand cultural differences. Be sensitive to local communities and understand the complex and varied structures of the Chinese media. They are not uniform and often controlled at a local, provincial and national level. I will never forget the cultural shock of seeing an armed red-guard standing on a pillbox outside a TV studio in Guangzhou asking for my official ID. Improve your cultural literacy by understanding the culture and history of those you're doing business with. Respect these differences and don't impose your own values & perceptions on how the local media should treat you.

2. Use a local spokesperson. Depending on the news value of the story, you will have a better chance of gaining media coverage the more Chinese you make your message. Using a local spokesperson will give you greater credibility. For example in PR campaigns for Nokia and IBM in China, they use local Chairmen who are Chinese because they are well respected and have deep Chinese roots.

3. Know your point of difference - what you do in your own backyard you also have to do in new markets. Find out what makes you or your service or product unique in the marketplace? How will it stand out from the competition. In the past cultural differences have been used as an excuse for dubious practices not acceptable back home. This has changed.

4. Clarify your communication objectives? What do you want to achieve? To inform or entertain? To provide information? To build a profile? To influence public opinion? Personal marketing? Marketing or launching a new product or service? How will cultural diversity and differing news values influence this? News values differ in China. Often issues will be reported one or two days later and not with the urgency or timeliness of the Western media.

5. Define your target audience? Who is your target audience? General public? Customers? Competitors? Suppliers? What age are they, what level of education, what beliefs and values, geographical location, how do they use the local Chinese media? How credible is the media your target audience uses? Does it still have credibility even though it is controlled? The media is evolving and becoming more respected.

6. Identify the best channels of communication. What is the best way to reach your target audience? TV, Radio, Internet, newspapers - local or national? Do your homework on how news is structured and gathered. Investigate who is reporting on what. Find out the nuances. TV has the highest penetration, while the Internet is growing amongst younger Chinese.

7. What is your key message? The media is becoming more competitive and market driven. They need readers and viewers to stay viable in the new economy. How can you make your message appealing and newsworthy? Distill what you want to say into three key points. Always check translations of media releases. Have them retranslated back into English to check for accuracy.

8. Build your case? When building your case look for the China angle. What are the features, advantages and benefits of your message for your Chinese targets? What evidence and proof do you have that is seen as credible and independent within their cultural belief system?

9. What is the China hook? What will make your message or news release stand out from the rest and appeal to the values of Chinese journalists. You are not successful in China until the local market tells you. Giving money to Chinese journalists is no longer acceptable. Use more legal and ethical incentives such as providing transport, lunch or a gift or souvenir item.

10. Develop long-term relationships with the media. Visit and meet journalists face to face. Network, get to know them and involve them in the story. There is now a focus on the interactive brand experience. For example in a recent mobile phone campaign local journalists were involved in trailing the product prior to launch. They were asked for their feedback and engaged proactively in its development providing them with ownership of the product and subsequent story. Relationships and personal connections, or guanxi are very important in China and especially so in cultivating good media contacts.

11. If you have to face the media yourself ... Use the Three Golden Rules to Perform at your Best = Know Your Topic, Be Prepared, Relax.

12. Seek Professional Help. For maximum impact, effectiveness and value seek the advice of a media and communications professional that can help your company see the media as an opportunity not a threat.

Source: "China Media - The Ethics of Influence", 1999




Thomas Murrell MBA CSP is an international business speaker, consultant and award-winning broadcaster. Media Motivators is his regular electronic magazine read by 7,000 professionals in 15 different countries.

You can subscribe by visiting http://www.8mmedia.com. Thomas can be contacted directly at +6189388 6888 and is available to speak to your conference, seminar or event. Visit Tom's blog at http://www.8mmedia.blogspot.com.



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Wednesday, 6 July 2011

Mainstream Western Media Stages "Blemishing China Marathon"


If you google "China" or "Olympics" on any given day in recent months, with the exception of the few weeks China was stricken by deadly earthquakes, you will be overwhelmed by the shower of negative coverage from the mainstream Western media against China and its hosting of 2008 Beijing Olympics.

For months leading up to the Beijing Games, China has been put under the Western microscope with accusations and complaints against the country and its government sweeping across all terrains, from big political issues such as Tibet, human rights, protest rights, press and religious freedom; to social problems including air pollution, government relocation of Beijing residents; to conspiracy stories about special visual effects of the opening ceremony and ultra performance of Chinese athletes; and to more trivial displeasures about losing a pair of expensive sunglasses, difficulties to access Olympic Green, English standard of volunteers, and over-eagerness of residents to help the foreigner visitors. The list goes on and on.

As if that is not enough, an NBC correspondent went on a live TV hunt for Chinese foods in Beijing. Let's take a look at what she found: giant scorpions, lizards, silk worms, seahorses, iguana tails and dung beetles. Other Western reportors also cited rabbit head, pig brain and animal penis. Being a native of Beijing with 20 plus years of living there and a food lover myself, I have little knowledge where to look for these exotic things, not to mention ever eating them. Come on, China has a civilization of 5,000 years - Western reporters can't be seriously thinking about portraying the Chinese as barbaric aboriginals or man-eating cannibals, right?

In fact, Dave Barry of Miami Herald admitted to a blog "beijingboyce.com" that "The Chinese people I saw all seemed to be buying things like lamb kebabs and fruit. On the other hand, the people gathered around the centipedes and scorpions on a stick were, in almost every case, tourists or American TV reporters doing fun features on weird Chinese food.... The Chinese don't eat scorpions. They feed their scorpions to TV reporters. I would not be surprised to learn that the Chinese word for scorpion is "TV reporter food."

Granted, China is not completely innocent from many of the aforementioned allegations and criticisms, but it is neither an evil host which deserves no credit at all. As the world's fastest growing economy and one of the world's most ancient civilizations, there has got to be something positive to report on.

You can be easily frustrated, however, if you are looking to read something more positive or, at the least, constructive about the country and its hospitable people. Sure, there is always the official Xinhua News or China Daily one can read for a change, but any praise from self-proclaimed independent and objective mainstream Western media is surprisingly hard to come by.

Meanwhile, for average Westerners, it is hard not to be misled by the drowning negative coverage on China. A homemaker in the US told reporters that she does not want to "legitimize the Chinese government" by supporting the Beijing Olympics." Didn't President Bush just open a bigger US Embassy there? What are we talking about here exactly? I am as puzzled as an Atlanta man who demanded an online answer for not seeing Russian tanks there.

As much as I disagree with President George W. Bush on many things, I have to applaud his recent TV interview in Beijing with NBC in which he stressed that the US and China as two very different countries and cultures are bound to have agreements and disagreements on a range of things, but it is important to have a constructive relationship which will help each other communicate disagreements.

Wow, how I wish that he had possessed this wisdom before starting the Iraq war - lives of estimated 1.2 million Iraqis and 5,000 US soldiers could have been saved.

Should the 2008 Olympics be awarded to Beijing in the first place?

Although the closing ceremony of the Beijing Olympic Games is coming up in a matter of few days, the arguments surrounding if IOC had made a mistake in letting China host the 2008 Olympics and if China had fulfilled its relevant promises seem to have just started.

Why pick a heavily-polluted country that is dictated by "free market Stalinists" which suppresses human rights, religion and press? China broke its promises to IOC for all of these areas, charges the mainstream Western media.

However, according to the IOC, its mission is "to build a peaceful and better world in the Olympic Spirit which requires mutual understanding with a spirit of friendship, solidarity and fair play - Olympic Spirit strives to inspire and motivate the youth of the world to be the best they can be through educational and entertaining interactive challenges. Olympic Spirit seeks to instill and develop the values and ideals of Olympism in those who visit and to promote tolerance and understanding in these increasingly troubled time in which we live, to make our world a more peaceful place."

Does China deserve to be awarded the hosting right of Olympics? Apparently, the Chinese people said a loud "yes". The whole world witnessed how much grass-root support China got from its people when it applied for and won the hosting right of the event.

As a country with more than one fifth of the world's population - should it not be given a chance to host one of the many games? With 1.3 billion people not represented, can any Olympic Games truly promote its mission of "building a peaceful and better world with mutual understanding"? That is why the IOC made its decision and it is undoubtedly a correct one.

By comparison, I have serious doubts if the mainstream Western media truly understands and honors the spirit of Olympics - questioning China's legitimacy to host such an international event only gives away its arrogance, self-righteousness, entitlement and cultural supremacy in international affairs.

If the mainstream Western media is still the true believer of human rights and continues to uphold the universal belief that "all men are created equal", it should acknowledge the birthright of any country including China, for hosting the Olympic Games.

While China needs improvements in many areas as every other country on this earth does, the changes and progresses made by the country in the past 30 years are unmatched in the its own history, which can not be hidden from view by the mainstream Western media.

China should not be forced to make any concessions or promises to any interest groups in order to be "bestowed" the hosting right of Olympics, thanks to the downfall of colonialism and imperialism! The country's pursuit of reform in all domestic political and social-economic fronts, including but not limited to human rights and freedoms of its people, can and should only be driven by desires of its own people, rather than being imposed on by external forces.

In addition to disputing China's hosting rights, the mainstream Western media also has aired many conspiracies about China's intention for hosting the 2008 Beijing Olympics. Show of power? Self-interiority? Promoting China's development path to replace the US model? Bla, bla, bla....

We all are humans and predictably we all want similar things in life at the end of the day. Splendid displays, inflated egos or decorated ideologies can not replace people's basic needs for food, clothing, shelter and healthcare.

For hundreds of years, the Chinese people have craved for a peaceful environment where they can focus on making a better living for themselves rather than laboring for self-serving emperors or greedy foreign opium traders. They have been quite successful in the past three decades and now they simply wanted to party and celebrate with the world through Beijing Olympics. Is that so hard to understand?

Why is the mainstream Western media so angry with China?

In his recent article "Are the Media Being too Mean to China?" published on slate.com, Prof. Tim Wu of Columbia University wrote that "China's idea of what makes for a better Olympics for foreign consumption-tightened security and cleaning up marginal elements-is exactly what makes Western reporters crazy."

While Prof. Wu's observation only touched on one of the surface symptoms that irritated the mainstream Western media, it does shed some light on the current tension. What he described is in fact a cultural difference in how the Chinese and the Western people receive and entertain their guests. But the root of problem is the ethnocentric mindset of the Western reporters to the cultural differences and their entitlement that things should only be done in their ways.

Similar examples are abundant, whether it is about different ways under which Chinese and Western athletes are trained or about how they differ in keeping their personal appearance or etiquettes. I am particularly disappointed with Prof. Wu's comments that "China doesn't have the manners and grace of the richer countries, even if it has increasing economic and political clout."

While making noises during eating is a taboo in many Western cultures, being openly confrontational in social interactions is a sin in many Asian cultures. These are simply cultural differences that should not be judged as superior or inferior, or we risk entering the boundaries of cultural supremacy.

Unfortunately, it is this arrogant mindset that has led the mainstream Western media to judge China by its own culturally biased standards and self-centered expectations. It is not a surprise they drew the conclusion that China broke its promises for hosting Olympics, an allegation China has denied.

What followed was an irrational unleash of anger by the mainstream Western media towards China in an attempt to force the country into the direction the Western media desired to see. The collective media assault on China, however, is more based on self-interests and ethnocentrism, rather than fairness, objectivity and independence which the mainstream Western media often preach.

Let he who is without sin cast the first stone!

A recent issue of Newsweek carried an article, "Rise of the Sea Turtles", that found "Westernized Chinese people" tend to be more resentful to the West. Although I wasn't particularly impressed with its analysis of the root causes, the article does provide us with a good pointer to an emerging trend.

I can probably qualify as one of the "Westernized Chinese people" the article was referring to, although I prefer to identify myself as a Chinese American after becoming a naturalized US citizen for many years.

I think it is unfair and simplistic to conclude that the "Westernized Chinese people" are more resentful to the West, because the situation is far more complicated than portrayed. The resentments, in fact, are not the towards the West in its entirety but more targeted at the double standard and intolerant attitudes often adopted by the mainstream Western media and Western governments towards China and other non-Western countries. "Westernized Chinese people" tend to be elites who are educated in the West and their advanced training and intellect make them independent thinkers. They are sensitive towards the hypocrisies of the mainstream Western media which scrutinizes China with one set standards while closing its eyes to the same problems at home.

No one person or one country is perfect and the Bible tells us that everyone is a sinner. If we (Americans) can allow ourselves make mistakes and accept skeletons in our own closets, why should we dissect other countries under our tinted lenses and punish them for not satisfying the standards that even ourselves often can not meet?

We should pursue "constructive dialogues" rather than endless "regime changes" by using force - ironically both strategies were supported by President George W. Bush. I salute his newly-found wisdom which helped him reach a peaceful resolution with the North Koreans and hopefully the same can be done with the Iranians.

If we desire international solidarity against terrorism, why is the mainstream Western media always so reluctant to condemn those who terrorize China? Read its coverage of recent terrorist attacks in Xinjiang and you know what I am talking about.

If the mainstream Western media wants to be the role model for its Chinese peers, why does it conveniently distort facts, use phony pictures and brush away people who have different opinions and deny their right to have their voices heard? A Chinese American confronted a CNN journalist a few months ago in LA when she and many other pro-China protestors were denied chances to be interviewed, the journalist responded harshly - "don't tell me how to do my business!"

We teach every citizen in the West to respect laws and regulations, yet the mainstream Western media participated in cheering the illegal protests and vandalism in Beijing.

Personally I had a painful experience demonstrating on London streets in 1989. It was cold in that morning and I stepped out of the picketing line for a few minutes to get some desperately-needed sunshine. I was subsequently handcuffed by force and arrested by the London police. When my petite wife disputed their action, she was also handcuffed and arrested. We were locked into separate cells for hours with no food and water, not to mention access to a phone and legal advice. We were only released after the demonstration organizer intervened and after being forced to sign the British equivalent of confession statements.

If being out of the picket line for some sun is a crime that deserves to be handcuffed and thrown into jail in London, why should the Chinese be criticized for expelling illegal protestors in Beijing who purposely climb lamp-posts, buildings and advertising billboards to display unauthorized banners?

Why should an American "pastor", who proudly vandalized the two Beijing hotel rooms and then cowardly sneaked away, be cheered as a "righteous protestor" by the mainstream Western media?

If a Chinese protestor goes to the 2012 London Olympics to protest against the British suppression of Northern Ireland and hang banners on the Big Ben - can he or she count on the mainstream Western media for for the same "heroic" coverage? Should we also question the right of London for hosting Olympics and its commitment for press freedom if its police arrests the protestor?

Food for thought - "Do unto others what you wish to do unto yourself" (Confucius) and "let he who is without sin cast the first stone!" (Jesus)

Is Western-styled press freedom what China needs?

A highly-respected US scholar once told me that the Western media is founded on the spirit of challenging authorities and it is the media's job to be cynical, vigilant, critical, defiant and negative.

I am a strong believer of the fundamental principles on which the US political system is founded. Besides many merits of the system, media stands out as an indispensable component designed to supervise, on behalf of the public, the three branches of the federal government. This is almost a perfect setup except three potential flaws - firstly, there is no mechanism in place for the supervision of the media itself; secondly, there are serious conflicts of interests between the two contradictory roles of media both as a representative of public interests and, at the same time, as self-serving profit-making enterprises; and thirdly founding media on the basis of cynicism and negativity has its own social costs.

For media to fulfill its role to supervise the government, it needs to serve public interests, rather than its own interests. It needs to be unbiased, objective and independent.

Nonetheless, it is well-known that the mainstream Western media has long blended its role for public welfare with relentless pursuit of ego, power and profits. As the world enters the information age, the mainstream Western media has become a new rising superpower with ever-increasing influence on domestic and international politics, economy, social structure, value systems and people's everyday life.

Does Americans really have as much freedom as the mainstream media would like us to believe? As the mainstream Western media pursue freedoms in other countries, Americans are losing so many freedoms that once made them so proud.

In the past few decades, America has experienced a string of serious challenges and setbacks including the breakdown of family/social structure and value systems, falling religious influence and freedom, popular abuse and dependence of narcotics and prescription drugs, rising violence across the country, escalating racial tension and police brutality, widening gap between the rich and the poor, dropping standard of literacy and basic education, failing healthcare system that denies coverage of 23 million Americans, and a tendency of resolving international disputes with "regime change" by military force rather than diplomacy, violations of on constitutional civil and human rights under the cover of anti-terrorism, to name just a few.

Our children can no longer walk to the school bus by themselves for fear of drug pushers and child snatchers on the way. By the time they arrive in their schools, metal detectors await for them in some inner city schools. They have to leave their bags in lockers and no colored drinks are allowed for fear of bombs. Their teachers are not allowed to mention any religion or teach morals in schools. Even "Christmas trees" must not be called "Christmas trees" but "family trees". They have to go through evacuation drills often to remain vigilant because school shootings are spreading. Now people are even more scared because a school district in Texas took the lead to allow teachers carrying guns to the classroom. But can we trust the teachers? Do we have to outsource our teachers from India or China one day?

As an American citizen, nothing is more valuable than my voting right. But even that has depreciated. Why? Because the mainstream media is not doing its job of dissemination of objective information. Instead it confuses me with a constant stream of selectively edited, distorted and manipulated information in order to advance its own preferences, agendas and commercial interests.

Let's take a look at the tainted media pictures of presidential candidates. John Edwards is a wife cheater, but that has been kept from the public until now; Hilliary is a liar who believes she is entitled to be the President and her husband Bill is hostile to the mainstream press; John McCain is a patriot but a war monger who knows nothing about economy; and finally Obama, alas, is actually a celebrity, radical of racial politics, Muslim (not that there is anything wrong with it) and "Anti-Christ"! For God's sake, stop harassing me with all this sensational talk designed to boost ratings and I want to vote for Paris Hilton, but unfortunately she is not on the ballot. So my pathetic one vote looks quite useless, well, at least for now.

Moving back to topic of Beijing Olympics. A Western journalist was quick to point out his disagreement with the slogan, "One World One Dream", which is meant by the host nation to stress the commonalities all peoples share. Nevertheless, this reporter chose to emphasize the different values he has from the Chinese host.

Fine, let's talk about the differences. If the mainstream Western media can acknowledge that peoples on this earth are different and that there are vast differences between them in the geographic landscapes, population structures, social-economic hierarchy, cultural values, beliefs, religions and ideologies, it should not be difficult to appreciate that their political, legal and media systems also need to differ from each other to accommodate for the specific needs of each country. It is dangerous to assume the systems of the West are somehow superior which can be transplanted to other countries.

Does China need a Western-style media system? I doubt it. While fundamental Western media principles of cynicism, defiance, negativity and confrontation may or may not work well in the Western cultures, they most-definitely will not be successful in the Chinese cultural environment which values hierarchy, harmony, benevolence and tolerance among people.

However, it is the Chinese people who should decide eventually what political, economic and media systems are the ones they need. I have faith that with five thousand years of civilization, China has the wisdom to draw from the strengths of the West, avoid its fundamental flaws and ultimately develop a positive-spirited media system with Chinese characteristics that is built on the basis of upholding public welfare and interests.

Final conclusion

By blemishing a hospitable nation, which worked hard and sacrificed dearly to be a good host, mainstream Western media only exposed the self-interest and ethnocentric facets of itself to the whole world. Such irrational and frantic behaviors will only serve to bolster more media scrutiny by the Chinese government, further alienate the Chinese people and erase any remaining credibility and relevance of the mainstream Western media in the post-Olympic China.

I love the motto of Beijing Olympics - "One World One Dream" - the dream of the Olympic Spirit under which all peoples of the world will be united with mutual understanding, friendship, solidarity, fair play and tolerance to build a peaceful and better world together.




The author is an US-based independent business analyst supporting multinational companies that seek cohesive growth in China. He is a native of Beijing and a naturalized U.S. citizen. He studied in the UK in the 1980s and has lived in the US in the past 19 years.

Email: stop.bias@gmail.com

Web: http://bjwanton.blogspot.com/



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Thursday, 23 June 2011

China and the Saving of Europe

By Simon Johnson


The Greek government owes more than it can afford to pay, now or in the near future, at market interest rates.  There are two options: reduce the payments through some form of restructuring, or move the debt into the hands of people who are willing to charge below market rates for the foreseeable future.


In this decision, the International Monetary Fund has relatively little say – this is really a political decision to be made by the European Union, with discrete backing from the US and China.


While the EU leadership is surely tired of Greek politicians at this point, they also fear greatly the implications for other eurozone countries if Greece says it can’t pay or won’t pay.  The realization that spreads on Spanish government debt will rise sharply concentrates the mind wonderfully. 


And the damage would not be limited to Spain – do not underestimate the smugness with which the eurozone has completely and utterly failed to prepare for any kind of sovereign default.  The lack of loss-absorbing capital in major European banks is a first-order scandal that could bring down governments.


Fortunately for the undeserving European policy elite, the IMF has plenty of money it can lend at low rates and the Europeans have plenty of votes at the IMF.  The IMF can also access considerably more funding as needed, with the agreement of the United States – which really does not want another short-term shock to the world economy.  And funding is available from China and other emerging market countries with large stockpiles of foreign exchange reserves.


China has every interest in making sure that the euro survives and prospers as a major reserve currency – to make sure that, over a longer period of time, the US dollar will decline as the primary place in which to hold public and primary rainy day funds.


The IMF will do as it is told by its major shareholders: help to refinance Greece, effectively protecting creditors and eurozone politicians to the fullest extent possible.


An edited version of this post appeared this morning on the NYT.com’s Room for Debate; it is used here with permission.






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