Wotan
2003-10-10 10:34:02 UTC
All multi-nationals are now owned by organised crime.
Money laundering (the process by which the proceeds of
drugs, prostitution, racketeering, etc, is converted from cash
into company shares) runs at £1.5 Trillion p.a Simple
arithmetic, therefore, confirms the first statement.
Since our western world is now owned by criminals, it is
hardly surprising that the source of our wealth and power is
being stolen from us and moved away to the lands of our
enemies.
This cannot be followed by anything other than the decline
of the Western world - and the rise of the power of our
enemies.
This process has been vastly helped by the enthusiastic
International Marxist "Nu World Order", "Global Economy",
criminal classes.
People like Blair, and others, who have secured control of
the powerful Western democracies.....
Money laundering (the process by which the proceeds of
drugs, prostitution, racketeering, etc, is converted from cash
into company shares) runs at £1.5 Trillion p.a Simple
arithmetic, therefore, confirms the first statement.
Since our western world is now owned by criminals, it is
hardly surprising that the source of our wealth and power is
being stolen from us and moved away to the lands of our
enemies.
This cannot be followed by anything other than the decline
of the Western world - and the rise of the power of our
enemies.
This process has been vastly helped by the enthusiastic
International Marxist "Nu World Order", "Global Economy",
criminal classes.
People like Blair, and others, who have secured control of
the powerful Western democracies.....
The rich world's disappearing jobs
By John Berthelsen and Indrajit Basu, atimes.com, 10/08/03
If the North American Free Trade Act passes, "you will hear a giant
sucking sound of jobs going south of the border". - H Ross Perot,
1992By John Berthelsen and Indrajit Basu, atimes.com, 10/08/03
If the North American Free Trade Act passes, "you will hear a giant
sucking sound of jobs going south of the border". - H Ross Perot,
In the developed world and particularly in the United States, the
scope ofjobs disappearing overseas is widening beyond all imagining, to
professions that almost nobody expected to be hit, and with far
higherprofessions that almost nobody expected to be hit, and with far
incomes than anybody thought possible as globalization bonds with the
lawof unintended consequences.
The catalyst is the Internet. As instant communication becomes more
ubiquitous, the developed world's white-collar professions, from
CAD/CAMThe catalyst is the Internet. As instant communication becomes more
ubiquitous, the developed world's white-collar professions, from
(computer-aided design/computer-aided manufacturing) to accounting to
medicine to architecture to aircraft design to research and
development tomedicine to architecture to aircraft design to research and
engineering to equity research and financial management to knowledge
management to revenue-cycle management - a whole panorama of
high-incomemanagement to revenue-cycle management - a whole panorama of
employment - are inexorably going.
The impact on American and European society is inevitably going to be
farThe impact on American and European society is inevitably going to be
more profound than almost anyone understands today. It is already
responsible for major positive changes in the living standards of the
middle class in other parts of the world.
The United States currently accounts for as much as 70 percent of the
world's "outsourcing", as it is called, or sometimes offshoring.
McKinseyresponsible for major positive changes in the living standards of the
middle class in other parts of the world.
The United States currently accounts for as much as 70 percent of the
world's "outsourcing", as it is called, or sometimes offshoring.
& Co, the international consulting firm, projects that the flight of
jobsoffshore to developing countries will grow by 30-40 percent a year
overthe next five years. By the highest estimates, as many as a million
jobshave disappeared overseas from the US job market since the current
economic slowdown began in 2000 and could represent a major reason
for theeconomic slowdown began in 2000 and could represent a major reason
struggle the US economy is undergoing to right itself.
McKinsey puts the number lost from the United States at a much lower
400,000 today, but expects it to grow to as many as 3.3 million by
2015.McKinsey puts the number lost from the United States at a much lower
400,000 today, but expects it to grow to as many as 3.3 million by
The business-consulting firm A T Kearney Inc projects that half a
millionjobs, or 8 percent of total employment by banks, brokerage houses and
insurance companies, will go overseas within five years.
But to show how extensive the phenomenon can be, consider some of the
moreinsurance companies, will go overseas within five years.
But to show how extensive the phenomenon can be, consider some of the
India is emerging as the health-care destination of choice for an
increasing number of surgery candidates, with more than 60,000
foreignincreasing number of surgery candidates, with more than 60,000
patients from 34 countries treated in its top-flight Apollo Hospitals
chain in the past decade. A delegation of Indian doctors was recently
invited to London to brief British Prime Minister Tony Blair's
medicalchain in the past decade. A delegation of Indian doctors was recently
invited to London to brief British Prime Minister Tony Blair's
advisers on flying surgery patients from the United Kingdom to Mumbai
andor New Delhi for operative and post-operative care, allowing them to
recuperate, and flying them back to the UK far cheaper than treating
themrecuperate, and flying them back to the UK far cheaper than treating
at home. Routine cardiac surgery at the best hospitals in India costs
about US$35,000, with a success rate of 98.5 percent, compared with
aboutabout US$35,000, with a success rate of 98.5 percent, compared with
$150,000 in the United States. For more complicated problems that
cost farmore than that, cost differentials are anywhere from 200 percent to
500percent to off the chart. And India is not alone; breast implants in
Thailand from top-flight cosmetic surgeons cost as little as 50,000
bahtThailand from top-flight cosmetic surgeons cost as little as 50,000
($1,260) compared with a median price of about $5,000 in the United
States.Fifteen global car makers, including General Motors, Ford,
DaimlerChrysler, Audi, Isuzu and Nissan, have set up design offices
inDaimlerChrysler, Audi, Isuzu and Nissan, have set up design offices
India with a combined budget of $1.5 billion to outsource auto
design.Industry estimates are that the cost of auto design in Europe's
exclusivePininfarina and Bertone design houses run as high as $800 an hour,
whilelow-cost designers in Bangalore can do lower-level design for $60 an
hour.India's government is in the process of liberalizing its accounting
rulesunder continuing World Trade Organization (WTO) negotiations on
services.In a move being closely watched by the Big Four accounting firms -
PriceWaterhouseCoopers, Ernst and Young, KMPG, and Deloitte Touche
andPriceWaterhouseCoopers, Ernst and Young, KMPG, and Deloitte Touche
Tomatsu - accounting, bookkeeping and auditing services are to be
openedto overseas competition by the end of next year. Indian firms are to
begiven reciprocal market access abroad. Indian accounting costs are a
fraction of those in the United States.
Fashion design is a fast-growing field in Vietnam and India; 350
domesticfraction of those in the United States.
Fashion design is a fast-growing field in Vietnam and India; 350
and international buyers came to Mumbai to look at India's fledgling
clothing fashion designs in a glitz-filled week in July. Designer
Rophitclothing fashion designs in a glitz-filled week in July. Designer
Bal is working with putative tennis star Anna Kournikova. Ritu Beri
isshowing in Paris. Tarin Tahiliani has been featured in New York's
FashionWeek and is booked for a show in Milan, the heart of Europe's fashion
industry.
The US Department of Education estimates that the United States will
needindustry.
The US Department of Education estimates that the United States will
an additional 2.2 million teachers over the next decade. The
ExecutiveRecruiters Association, the representative body of recruitment
agencies inIndia, is urging the Indian government to appeal to the WTO seeking
an endto what they consider to be restrictive trade practices in the
teachingprofessions and allow more Indian teachers into the US. Indian
teachers,with excellent English-language skills, would find an annual salary
of$35,000 an enormous amount of money. There are already some school
districts from Texas said to be recruiting in India.
This article concentrates mainly on India and is only a small
specificdistricts from Texas said to be recruiting in India.
This article concentrates mainly on India and is only a small
sample of the developed-world jobs and services that are in the
process ofdisappearing overseas. Canada, Ireland and Israel, with large
English-speaking populations, are also particularly attractive to
WesternEnglish-speaking populations, are also particularly attractive to
firms, primarily because English is widely spoken, and well. But in
othercountries such as India, the Philippines, South Africa, Ghana and Sri
Lanka, English is also widely spoken, and well, and costs are
minuscule.Lanka, English is also widely spoken, and well, and costs are
Russia, with its well-educated tech professions, is also a
destination."Anywhere you have social and economic growth, any of the Third World
countries are wonderful opportunities to set up services platforms.
Youcountries are wonderful opportunities to set up services platforms.
can pretty much follow where the British Empire went," Marc Liebman,
president of Everest Group, an outsource consulting firm in Dallas,
toldpresident of Everest Group, an outsource consulting firm in Dallas,
Asia Times Online. "They left strong business and physical
infrastructurebehind them."
In a stunningly prophetic article, Frances Cairncross, a senior
editor atIn a stunningly prophetic article, Frances Cairncross, a senior
The Economist, wrote in 1993 that the communications revolution had
wrought what she called "the death of distance". In that article, she
posited that there had been three profound transport revolutions
since thewrought what she called "the death of distance". In that article, she
posited that there had been three profound transport revolutions
19th century, the first when the arrival of steam initiated a steep
fallin the cost of moving goods. The second came in the 20th century,
when thecost of transporting people fell to the point where vast migrations
acrossborders brought tens of millions of immigrants from old Europe to the
Americas, and since has resulted in massive movements of economic
refugeesAmericas, and since has resulted in massive movements of economic
from the poor countries to the rich ones.
The third revolution, Cairncross wrote, would dominate the first half
ofThe third revolution, Cairncross wrote, would dominate the first half
the current century. It is the diminishing cost of transporting
information. Her vision has come true even faster than she thought.
Because of fiber-optic cable, satellites and digital compression, the
transport of information can be basically free. The enormous charges
forinformation. Her vision has come true even faster than she thought.
Because of fiber-optic cable, satellites and digital compression, the
transport of information can be basically free. The enormous charges
personal calls on telephone lines across the Atlantic or the Pacific
arevirtually all gravy. Once the satellite or the cable is in place and
thecapital expenses are paid, there is no expense. Companies with their
owntransponders on satellites have lowered their costs dramatically.
Thus it is possible, for instance, for Fidelity Investments to put
itsThus it is possible, for instance, for Fidelity Investments to put
call centers in Ireland. It is increasingly probable that a call to
anyrepair service or help line will be routed not to the Midwestern
UnitedStates but overseas to the Philippines, Ireland, India or any one of
ahalf-dozen other locations. Indian schools are training prospective
employees to speak in American accents. Back-office processing such
asemployees to speak in American accents. Back-office processing such
accounts receivable and payable, claims processing, revenue
collection andpassenger management are not going to be done in the United States
anymore.JP Morgan Chase, the investment-banking firm, said it plans to move
someof the work of preparing stock-market research reports to India. The
Financial Times of London has more than 100 such analysts in Manila,
entering data from company reports all over Asia into computers, so
theFinancial Times of London has more than 100 such analysts in Manila,
entering data from company reports all over Asia into computers, so
information can be sold as databases for investment banks at a
fraction ofthe cost the banks would have to pay their own people.
"What we went through 10-15 years ago with manufacturing and
blue-collar"What we went through 10-15 years ago with manufacturing and
jobs, we are now about to go through with white-collar jobs," said
MichelJenssen, president of supplier solutions for the Dallas-based Everest
offshore consulting group. "It still takes three to six months to
shipoffshore consulting group. "It still takes three to six months to
manufacturing components offshore, less if you can send by air. But
withservices, with telecommunications technology, movement is now
measured inmilliseconds. You can move the work around, you can scan images, you
canmove workflow to India with no more difficulty than you move it from
theSan Francisco Bay Area to Texas."
It is possible, as Vivek Agrawal, who led a McKinsey team studying
theIt is possible, as Vivek Agrawal, who led a McKinsey team studying
issue of offshoring and wrote a report titled "Offshoring: Is It a
Win-WinGame?" said in an interview recently with Asia Times Online, that the
departure of these jobs is healthy for American society. It frees up
capital and labor for more rewarding, or productive, or effective
jobs,departure of these jobs is healthy for American society. It frees up
capital and labor for more rewarding, or productive, or effective
Agrawal says. A JP Morgan Chase spokesman told reporters recently
thatmoving market research preparation to India would get rid of
number-crunching, freeing its US staff to focus on higher-level
financialnumber-crunching, freeing its US staff to focus on higher-level
analysis and spending more time with customers. But it is hard to
figureout what jobs are more rewarding or productive or high-end, for
instance,than thoracic surgery or architectural design, or what jobs can
replacethem in the developed world.
Agrawal describes most of the information-technology (IT) jobs headed
offshore as relatively low-skilled. If Indians or Pakistanis or other
nationalities can do the really high-skilled jobs, he says, it is
muchAgrawal describes most of the information-technology (IT) jobs headed
offshore as relatively low-skilled. If Indians or Pakistanis or other
nationalities can do the really high-skilled jobs, he says, it is
more likely that they would obtain visas to move to the United States
anddo the jobs here - although the US government, on October 1, cut the
quotafor so-called H1-B visas for skilled workers from 195,000 to 65,000.
Theeffect of that cut is most likely to be that US employers, unable to
findpeople to do the jobs here, will take the jobs to where the workers
are -and pay them lots less, thus losing the multiplier effect of their
paychecks in the United States (see H1-B visas: US gets it wrong
again ).paychecks in the United States (see H1-B visas: US gets it wrong
The loss of these jobs overseas is also probably going to affect
developed-world inflation. The investment bank ABN-AMRO, in an
October 3developed-world inflation. The investment bank ABN-AMRO, in an
analysis of the US economy, wrote that while a cyclical rebound in
economic activity is forecast for late 2003, "this rebound will not
produce the typical firming in underlying inflation that influenced
monetary-policy decisions and the interest-rate outlook in previous
recoveries".
That is at least partly because, while US Federal Reserve chairman
Alaneconomic activity is forecast for late 2003, "this rebound will not
produce the typical firming in underlying inflation that influenced
monetary-policy decisions and the interest-rate outlook in previous
recoveries".
That is at least partly because, while US Federal Reserve chairman
Greenspan has been given credit for keeping inflation in check in the
United States over the past decade, it is equally likely that it has
beenUnited States over the past decade, it is equally likely that it has
due to outsourcing and offshoring. Inflation classically starts to
pick upas households increase consumption spending and firms increase
investmentspending. That tightens the labor market, which in turn means that
laborcan pick and choose between jobs, and for many jobs there aren't
enoughworkers. Workers had the luxury of going on strike to demand higher
pay.But since manufacturing jobs first began to go offshore with the
assemblyof consumer products in the 1950s, workers from auto plants to steel
millsto the panoply of America's rust-belt industries discovered that
going onstrike to demand higher pay meant their jobs could disappear, first
toJapan, then to South Korea and Taiwan, then to the Southeast Asian
countries, and then all over the world.
Now, ominously, that is beginning to happen to the middle class as
Cairncross's thesis on the death of distance starts to prove out.
Whatcountries, and then all over the world.
Now, ominously, that is beginning to happen to the middle class as
Cairncross's thesis on the death of distance starts to prove out.
happens if, for instance, US health-insurance providers cotton to the
factthat an unwilling Joe Bloggs could be flown to Honduras, say, to have
hisgall-bladder surgery, and that his airplane fare (charter, of course,
totake a planeload of surgery patients at a time) and lodging could
costhalf or a tenth what it costs at Sinai Mercy Omni-Surgery in
Middletown,USA? The insurance company, like the British National Healthcare
Service,would contemplate that the out-of-control cost of medical care in the
United States is going to stabilize, no matter how much Mr Bloggs
wouldUnited States is going to stabilize, no matter how much Mr Bloggs
prefer to have his gall bladder incised at home - especially if their
pharmaceutical costs descend as well.
And they well could. In August, the multinational pharmaceutical
companiespharmaceutical costs descend as well.
And they well could. In August, the multinational pharmaceutical
struck a deal with the WTO to create a loophole that allows the
neediestcountries to override patents on expensive drugs and order cheaper
copiesfrom generic manufacturers in exchange for a small payment. A
combinationof AIDS drugs that in the United States costs $14,000 per patient per
yearcan be delivered for a small fraction of that amount.
Indian pharmaceutical companies, for instance, are producing generics
forIndian pharmaceutical companies, for instance, are producing generics
many pharmaceuticals at pennies on the dollar compared with the cost
inthe United States. Even today, hordes of US consumers go to the
Mexicanand Canadian borders to buy their prescription drugs.
Americans, and later Europeans, watched with equanimity starting in
theAmericans, and later Europeans, watched with equanimity starting in
1950s when manufacturing jobs started to disappear into low-cost
factoriesin Asia. Only the workers who had filled these emptying factories and
thelabor unions who represented them railed against the loss of jobs.
Nonetheless, while in 1950 about 35 percent of America's labor force
wereNonetheless, while in 1950 about 35 percent of America's labor force
engaged in manufacturing, that figure has fallen to about 12.5
percent today.McKinsey analyst Agrawal and the team that wrote the study argue that
offshoring is not particularly bad for the United States because at
leastoffshoring is not particularly bad for the United States because at
70 percent of US jobs are in services that are produced and consumed
locally."We would argue that not only is the US fully capable of withstanding
these changes, as it will be able to create jobs faster than
offshoringthese changes, as it will be able to create jobs faster than
eliminates them, but that the current debate misses the point
entirely."The point is, McKinsey says, that offshoring creates wealth for US
companies and consumers and therefore for the US as a whole and is
"justcompanies and consumers and therefore for the US as a whole and is
one more example of the innovation that keeps US companies at the lea
dingedge of competitiveness across multiple sectors".
Indeed. It's great for companies. McKinsey estimates that management
jobsIndeed. It's great for companies. McKinsey estimates that management
moving offshore will rise from zero in 2000 to 288,281 by 2015.
Businessjobs will rise from 10,787 to 328,281. Computer jobs going offshore
willrise from 27,171 in 2000 to 472,632 in 2015. Office jobs - the
back-shopdata-entry jobs that consist of keying in data - already projected at
nearly 590,000 by 2005, will skyrocket to 1.66 million by 2015.
Ironically, many of the disappearing jobs owe their departure to H
Rossnearly 590,000 by 2005, will skyrocket to 1.66 million by 2015.
Ironically, many of the disappearing jobs owe their departure to H
Perot, the failed US presidential candidate whose "giant sucking
sound"quote started this article and which continues to reverberate across
theUnited States today.
The five biggest outsourcing consulting companies in the US today are
inThe five biggest outsourcing consulting companies in the US today are
Dallas, Texas. Asked why, Marc Liebman of Everest said, "Because Ross
Perot was here." Perot, first with his company EDS and later with
PerotPerot was here." Perot, first with his company EDS and later with
Systems Corp, pioneered data transfer and became a worldwide provider
ofoutsourced IT services.
According to BusinessWorld, an Indian publication, Perot Systems in
1999According to BusinessWorld, an Indian publication, Perot Systems in
entered a 50 percent joint venture with HCL Technologies of India to
create HCL Perot Systems to handle billing and claims for health care
companies in the United States. It is a pioneer in outsourcing data
overseas to cheaper labor for major corporations.
create HCL Perot Systems to handle billing and claims for health care
companies in the United States. It is a pioneer in outsourcing data
overseas to cheaper labor for major corporations.