Transfer of the Blog
The Latinamerasian: Pacific Century Watch
http://thelatinamerasian.blogspot.com
In 2004 the CIA records showed the US economy was already smaller than the economy(PPP) of East Asia; China, growing at 10% yearly, alone will have a bigger economy than the US in half a decade. The Pacific Century is near. This blog is a vigil, watching the changes, deciphering the signs, for the coming Pacific Century. I'm not necessarily anti-American but documenting the collapse of Pax Americana may look that way any which way I may try to soften the impact.
The most interesting news last week was the downfall of the BP CEO John Browne caused single-handedly by his ex-lover, Canadian Jeff Chevalier. What made it interesting wasn't the news itself but the comments appended at the end of the news articles at most of the online newspapers I scanned, mostly Britain & Canada-based. Personally, I take the line espoused by most of the British newspapers, that Mr. Browne made a stupid error in judgement, committing a crime in court to ruthlessly try to trash the credibility of his lover. One Briton, however, weirdly commented Browne was actually so honorable he had to lie because he was ashamed to admit he picked up his boytoy from a gay escort website (if he was honorable, why must he lie in court? If he didn't lie & the injunction wasn't lifted, all he testified in court won't be divulged anyway. He lied because he wanted to show Chevalier was a liar, praying to the court that they believe him instead because of his awards & achievements). The most surprising comments came from the Canadians themselves, as gleaned from Globeandmail.com appended comments. After the Sunday article from Mail on Sunday appeared, wherein Chevalier recounted his champagne lifestyle with Browne in various European cities, you could almost palpate the hatred for the guy among his fellow Canadians- just as palpable were the envy & schadenfreude. They took turns in denigrating the guy, most even praising Browne for treating a mere rent boy to such a grand lifestyle, while they were trapped in their sad simple lives wondering why they couldn't drink a 1983 Claret with Tony Blair while a mere ex-male prostitute from a poorer area near where they live, did. Lost in the envied accounts of Venice & Salzburg gigs were the panic attacks suffered by Chevalier in the last months of this strange affair. And the fact that he was cut off penniless by the older man. Chevalier was charging $330 per hour as an escort when he met Browne. For four years, he consented to be the plaything of Browne exclusively. If Browne had to pay on a per hour basis for the services of Chevalier for 4 years, the value of his stock options from BP won't even be enough to cover the cost. He's rich but he's not that rich. Did the champagne lifestyle he provided sufficient to cover the damage? Place yourself in the shoes of Chevalier & imagine escorting Browne fulltime for 4 years. Old man, with a revolting face, just as revolting body- I don't wonder anymore why Chevalier got his panic attacks. Those nights must have been scary, worse than any of the torture chambers imagined by Rumsfeld. One-hour encounters may be easier on the nerves, but continuous for 4 years?? Of course, nightmares had to end, but if Browne was really honorable, inasmuch as he once really did love the guy (and he used him for 4 years, may I reiterate), he should've given the younger man his due. Just being fair. What did this honorable man do instead? Why the ruthlessness? Browne was the same man responsible for what the US Baker Commission found as over-zealous cost-cutting in safety improvements that caused the death of 15 workers in a BP facility explosion in Texas. So he has been ruthless & stingy all along. He revealed himself as really just another low-rent pervert after all & Jeff Chevalier must be recognized for pulling him from the BP high horse from which Browne clung longer than necessary, preventing him from causing more damage. If Mr. Browne has any criminal culpability, let the court case run its course & not exculpate him just because somebody's pension fund value increased. Justice has never been served by never honorable selfish sentiments.
Meanwhile at BP, the new CEO Tony Hayward can now begin to undo the damage wrought by the stingy policies left behind by Browne. It was able to push out Browne early because of one man. Jeff Chevalier was a victim here, but fortunately he had the werewithal to turn himself into a hero. To 15 dead Texans, he definitely was.
From The Daily Telegraph:
Why I don't feel sorry for Browne
By Liz Hunt
03/05/200712:01am BST
Never did a master of the universe appear less deserving of the title. From the drooping myopic gaze to the vague half-smile, and with hands seemingly always clasped neatly before him, his demeanour is that of a particularly dapper maître d'.
In the early days, perhaps this lured rivals into underestimating the pint-sized BP executive who lived with his mother and harboured a passion for opera and obscure, ethnic art.
They lived to regret it as he showed the daring, vision, cunning and ruthlessness that had him lauded as the most brilliant businessman of his generation, the saviour of a floundering company on which 97,000 employees and numerous pension funds depended.
Until this week, I was barely aware of Lord Browne of Madingley and this awesome reputation. How sad it is, I thought, on hearing of the resignation of BP's group chief executive after revelations of a gay affair, that in this age of touchy-feely enlightenment, a man like that still feels that he cannot be open about his sexuality.
And what a pity, I mused, that after serving 42 years with the same company, he'll miss out on the £15 million in cash and shares he would have received if he'd retired as planned in July.
Now, having picked my way through a story that has all the elements of a Bonfire of the Vanities for the Noughties - big business meets tabloid kiss-and-tell masquerading as a morality tale - I feel less well disposed towards the so-called Sun King of the oil industry.
Discovering that his lordship leaves with shares and pensions rights worth more than £50 million is one factor. Another is that at a time when BP was facing an ever-more turbulent business environment, the man at the helm was preoccupied with fallout from a disastrous affair and, allegedly, intermingling company affairs with personal business interests.
However, it is the realisation that Lord Browne's fall from grace has little to do with a desperation to keep his sexual preferences secret, and everything to do with arrogance, hubris and an assumption that he could lie with impunity to destroy someone to whom he was once close, that has exhausted my reserves of sympathy.
If, as claimed yesterday, he selected his troubled lover, Jeff Chevalier, from the website of a gay escort agency, he was taking a risk. But what else would you expect from a high roller of the business world?
And, irrespective of how they met, they were an item for four years. Lord Browne introduced Chevalier to friends and colleagues as his partner, and lavished money on him. When his visa expired, he paid for the young Canadian to remain here as a student. He wanted them to be together.
It may have been just about sex, but isn't it more likely that for Browne, an only child whose closest adult relationship had been with his mother, the handsome Chevalier represented everything he felt he had missed out on in those decades of relentless hard work?
When the affair ended, he did the decent thing and gave his lover money for a flat in Toronto. It wasn't enough and Browne snapped, determined to silence him, even if it meant lying in court or trashing Chevalier's reputation - admittedly already tarnished - with false accusations of drug dependency and alcoholism.
Lord Browne is a clever man who should have known better, and if he'd had more experience of personal relationships, perhaps he would have done.
Ruthlessness in a business environment is a virtue; a desire to win, sometimes at all costs, is the driver to success which can bring rewards to an individual, an organisation and the wider community.
Ruthlessness in relationships, a desire to annihilate another whatever it takes, is, as he discovered this week, a far more challenging and unpredictable affair.
From Newsweek:
The Tragic Departure of a Gay CEO
Had Lord John Browne resigned from BP two years ago, he might have been lauded as one of Britain’s greatest industrial leaders. Instead, he went out in disgrace.
Luke MacGregor / Reuters
WEB EXCLUSIVE
By Emily Flynn Vencat
Newsweek
May 3, 2007 - It would be tempting to attribute the fall of Lord John Browne, who resigned this week from British oil firm BP after 41 years, the last 11 as chief executive, to a lack of acceptance of gay men in the European boardroom. Browne had kept his homosexuality under wraps until a 27-year-old former male escort outed him after a four-year-long affair. Browne sought an injunction to quash the story from a British tabloid, but a High Court judge on Tuesday ruled against him and found that Browne had lied to the court about how the men met each other.
The sex-and-lies scandal was merely the final straw, however. Both inside the company and out, concerns have been mounting about Browne’s aptitude as a leader for the last two years, ever since the explosion of BP’s Texas City oil refinery, which killed 15 employees in 2005. The proof is in the stock price. As soon as Browne handed the reigns to Tony Hayward, who has been the de facto leader of BP since the annual general meeting last month, BP shares edged upward from $67 on Tuesday before the announcement to just under $69 on Thursday’s close. Analysts say that Browne’s exit bodes well for BP in the immediate future, even as it struggles with falling oil prices and rising production costs.
Browne's legacy to the company he spent his life building will be a management style against which his successor can clearly define himself. Under Browne, BP had a reputation for having an all-powerful celebrity chief executive. According to company employees quoted in former U.S. secretary of State James Baker’s damning report on the Texas City explosion, BP under Browne habitually put “profit before safety.” Hayward, by contrast, seems to have a more egalitarian management style. “The top of the organization doesn’t listen hard enough to what the bottom of the organization is saying,” wrote Hayward last December on BP’s internal Web site. Many analysts interpret the statement as a direct criticism of Browne. “Hayward wants to make sure all the employees at the company feel free to voice their opinions, and he wants those opinions to be heard [by management],” says one company insider who did not wish to be quoted talking about BP. “Some people might say that this is very different from the atmosphere under Browne.”
Hayward is also adopting a lower profile at BP than his predecessor. He says he’ll only speak publicly on the company’s performance twice a year--half as often as Browne did. Hayward is also expected to avoid the high-profile political circles in which Browne, who was made a life peer (“Lord”) by Prime Minister Tony Blair in 2001, was so comfortable. Browne and Blair were so close that political analysts attribute the importance Blair put on improving relations with Russia down to Browne’s influence. BP, goes the joke, actually stands for “Blair Petroleum.”
Of course, Browne has long been considered one of Britain’s most respected business leaders. His role in transforming BP from a relatively small European oil firm into one of the biggest power companies in the world stands as a remarkable achievement. Had Browne retired two years ago, his exit would probably have been accompanied by laudatory talk about his place among the best business leaders of his generation. In recent years, however, Browne made a number of risky decisions--both personally and professionally--that ultimately resulted in his downfall. Within the industry, Browne was known for cutting safety dangerously close to the wire. As BP and other oil companies were driven to look for oil in more dangerous places, Browne was known for keeping a tight rein on safety spending. The results were dire, and included the partial shutdown of one of the company’s Alaskan oil fields due to corrosion on pipes, and the deadly Texas explosion.
Browne took his big personal gamble in 2002, when he went on a gay escort Web site, Suited and Booted, and struck up an affair with a young Canadian student, Jeff Chevalier, which lasted for four years. After an acrimonious break-up early last year, Chevalier asked Browne for $600,000 to help him adjust from the multimillionaire lifestyle to which he’d become accustomed. Browne refused, and Chevalier sold his story to the British tabloid newspaper, The Mail on Sunday. Browne, who has never been public about his sexual orientation, tried to stop the story from going to press by filing an injunction on the basis that Chevalier’s claims were a breach of privacy and confidence.
Browne lost his suit earlier this week. Much more damningly, however, the courts revealed that Browne lied to them. He told the High Court on three separate occasions that he had met Chevalier while exercising in a park rather than on the Web site. Browne asked the court to “prefer his [own] account of what took place” over Chevalier’s (truthful) narrative because his “various honors” showed him to be of very high standing in the community. Even worse, Browne attempted to “trash” Chevalier’s reputation by accusing him in court of being a drug user and an alcoholic. Ultimately, Browne has forced to admit to the court that he had lied about having met in a park.
How many other people are there who, like Browne, work in Europe’s top corporations and are desperate to keep their sexual orientation a secret from the public eye? It’s difficult to know. Secrecy is the rule among gays in high-level businesses. In Britain, there isn’t a single openly gay person running a FTSE 100 company. In a recent survey by Stonewall, a gay lobbying group, of the country’s top 100 most influential gay men and lesbians, only three CEOs were willing to have their names published. And what would have happened had Browne, rather than lie in court about the affair, openly admitted to meeting Chevalier on a Web site? We’ll never know.
The tragedy is that after four decades of exemplary service, Browne’s final gift to his company has turned out to be his own departure.
I think an explanation is in order. I had a conversation with a friend & he shared a concern. Am I unduly becoming a chorus boy for the Red Chinese (as he said it) in my blog? Not necessarily. Though most Filipinos have developed this thing they call nationalism & have criticized arrogant American foreign policy, the Philippines will always be an American bastion in Asia, Pacific Century or not. There, I said it. Some may raise their eyebrows considering the increasingly Anti-American tone of my blog lately. But the Philippines is really a special case. This is a country in Asia with American History in its curriculum, Hollywood in its leisure time, American laws as part of the laws of its land, its educational system based on the American tradition of American authors & critical thinking. Simply put, it was a part of America in its history and though it's nominally independent, the people travel to America as if they're just going to transact a business at the capital city. Its economics have gone badly since the natives have taken over but its consciousness has always been that's a temporary aberration, things will correct itself. So it hasn't shed its Americanized posturing. It's part of Asia, but it's much more. The important thing is it has realized it's future lies with Asia.
The style I assumed here is what Filipinos call kantiyaw- heckling. It's serious, meant to drive a message but it's fun at the same time.
So what do I think of the Pacific Century? Will the Red Chinese dominate the Philippines like America has dominated it?
The Philippines is really a different potato. The Chinese-Filipinos have become dominant economically since Marcos times but has anybody wondered why they haven't been successful in acquiring the snob appeal to their brands which the Spanish-Filipinos, though outnumbered, have kept lock, stock & barrel? There is a wide swathe of reclaimed land by the bay which has been vacant for too long. Kuala Lumpur would fit there. Imagine if you transfer all the buildings in the competing Spanish-developed Ortigas & Ayala business districts there. You can call that Manila in your postcards & it will not be inferior to other Asian cities. Alas, that land, which are mostly held by Chinese titans, is empty & though the largest shopping mall in Southeast Asia was built there, there's no rush to build at all. To think it's just 30 minutes from Makati. But an Ayala concern, the 250 hectare Fort which was recently developed, is a big construction site, with 100 high-rise buildings at various stages of construction. The bay area is more scenic, it would've been an iconic prestige site for Manila Singapore-style. But alas, it lacked the snob appeal to attract well-heeled patrons.
One of the developments in the reclaimed area is the Asiaworld property of the late developer Tan Yu which was projected to be as successful as his developments in Taipei. Tan Yu was a Chinese-Filipino who bought lands in the outskirts of Taipei & developed it on the Manila Ayala model. It became so successful that he became the richest Southeast Asian (Forbes estimated his worth at $7 billion at one time) during the 90's. He died just developing a couple of condomiums & some homes in his Manila property.
3 out of the 10 biggest malls in the world are in Manila but a Filipino would take his foreign visitor not in any of the three (which belong to the Chinese-Filipino SM group) for bragging rites but to the much-smaller Ayala-owned Greenbelt because the latter is by reflex acknowledged as classier. Shangrila Plaza & Podium are definitely two of the better malls among the countless in Manila, & they deserved being marketed for the upper classes. But are the customers going there belong to the upper classes? The throngs looked more like contract workers on their vacation- middle-middle class at best. The Malaysian & Singaporean developers miscalculated the taste of the Filipino. This is a Filipino quirk unique among Asians: It's not what you're developing but WHO's developing it. & lamentably, when that WHO looks as Asian as you, they will respect it but they won't give their premium patronage. Does that mean Asians should just busy themselves with the low-price,go-by-volume sector, which the Chinese-Filipinos have kept lock-stock & barrel themselves? Well, the successful Chinese-Filipino has become so Filipinized himself he will buy a house in a Spanish-Filipino development to declare to the world he has arrived instead of buying from a Megaworld. Not to worry, the latter can always sell to the contract workers on vacation.
Recently, the Malaysian developer of the Manila-Cavite Coastal Road complained of runarounds by government officials in his dealings. A tactless Filipino official commented in a newspaper article that perhaps because the Malaysian "looks just like us he's not treated seriously." Stupid, but it's revealing an unacknowledged gene in the Filipino psyche that's been planted after many years of foreign colonization. What's unique with the Western Philippine colonizers was they were unlike the Japanese who left wholesale. Here, they stayed and they suffused the landscape. Majority of the well-off middle-class Filipinos are racial hybrids. Be it Malay-Chinese, Chinese-Spanish, Spanish-Malay,Malay-American, Chinese-American-Malay,etc. Unlike other Asian countries, they do mix it up ethnically more here. To outstanding results. Ten years ago, just go to an exclusive elite school in Manila & I doubt if you'll find better specimens of Asians in one place anywhere else. For the last 20 years, after the OFW (Overseas Filipino Workers) phenomenon elevated pure Malays from their isolated provincial towns & made them part of the middle class, the Manila physical face has become not unlike that found in the streets of Jakarta, Bangkok or even Singapore. Curiously I overheard this from a Filipino mestiza on a visit in Singapore:" They can landscape their sorroundings here left & right, but as long as their people look like OFW's, who are they fooling?" There's a double slur there. It managed to insult the Singaporeans while at the same time insulting the new and far more numerous members of the Philippine middle class back home. Marcos has been lambasted so much he wasn't even given credit for this phenomenon The roads, bridges & policies released a large segment of the population isolated from the mainstream of Philippine life to the point they may dominate its culture in the future.
Of course, the prejudices of generations past won't easily go away. The Spanish mestizos from Vigan & Cebu are mostly Chinese-Spanish hybrids but even with the emergence of China, they posture as more Spanish & not even highlight the Chinese part. They know the market value rule .They let the Chinese-Filipino brand appropriated by the mostly Chinese-Malay hybrids (which constitute the majority of Chinese-Filipinos; pure ethnics are lesser here than in Indonesia).
Helpfully, the Philippine sun is oppressive on a population addicted to sunblocks & whitening creams. Hybrids & foreigners alike will all turn tan eventually if they don't watch out. Recently, I started a conversation with a brown almond-eyed group which I mistook for Chinese-Filipinos. One answered in Tagalog but he wasn't Chinese. He was Korean. & he's been in Manila for only 7 months. He's darker than me.
It goes without saying the Spanish-Filipino & American-Filipino & American belong to the same generic cultural vein.
Well, to make the story short, what is my point here? Hypothesis to be precise. I raised a question above. Yeah, the Philippines can withstand a rich China culturally. China will make inroads economically but it won't dominate the Philippines like America did. The Philippines, with its strange quirks which are derisively called colonial mentality, will always have its cultural defense- one foot in Asia but one foot in America.
This is Part 1. I'll expound on that later. I love the café culture of Manila. What's better than sipping your espresso in a lazy afternoon while writing down your stray thoughts? I wonder, who would be the next Philippine President- the Spanish-Filipino Loren Legarda or the American-Filipino Richard Gordon? Only in the Philippines. I have a feeling the Philippine politics has become murky for the last 30 years because the Presidents have all been pure Asians so nobody gave them respect because as the Philippine official commented on the case of the Malaysian businessman- they looked like us. Food for thought.
Part 2 will tackle how this Filipino quirk has stymied the sensitive Japanese & how the Koreans overrode it