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Cars and Capitalism in Contemporary Hanoi

May 1, 2014
By 19597

Streets clogged with motorbikes in Hanoi have become familiar sights, as images are frequently featured in posters and magazines. Is there any room in this city now for automobiles, whose numbers are on the rise? Arve Hansen, a Sylff fellow at the University of Oslo in Norway, explores the socioeconomic transformation taking place in Vietnam through the lens of the nascent transition in the prevailing mode of personal transport from motorbikes to cars.

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Vietnam has undergone a radical socioeconomic transformation during the last three decades under a program of economic reforms known as Doi Moi (“renovation”), officially adopted in 1986. Vietnam has grown from being one of the poorest countries in the world into to a middle-income, emerging economy, and the country is now frequently cited as a success story in economic development. Vietnam has moved from a planned to a market economy under a model described by the Vietnamese government as a “market economy with a socialist orientation.”

These changes make Vietnam an extremely interesting case in the study of both development and consumption. My PhD research into this topic in Vietnam focuses on what appears to be an ongoing transition away from motorbikes as the principal form of transport toward four-wheel automobiles in Hanoi. (It was thanks to Sylff Research Abroad that I was able to conduct long-term fieldwork in Hanoi, something absolutely vital to my project.)

My research approaches the trend as seen from the perspective, respectively, of the government, industry, car dealerships, and consumers. I have particularly emphasized the view of the consumer, using the car both to illustrate the ongoing changes in Hanoi as well as to analyze consumption trends more generally.

“Land of the Honda”

Motorbikes in downtown Hanoi_photo by Huong Nguyen

Motorbikes in downtown Hanoi (photo by Huong Nguyen)

Vietnam used to be a country of bicycles but quickly became the “land of the Honda” during the 1990s following the start of the Doi Moi reforms. Today, in a country of 88 million people, there are around 35 million motorbikes. The sea of motorbikes in Vietnamese cities is now an iconic image of the country and one of the most popular motives for photographs by tourists. It has also created a highly individual transport situation, in contrast to the collective ideals of socialism.

Now, the passenger car is increasingly making its way into the streets, in the process clogging up traffic and making the motorbike more dangerous. My interest in Vietnamese automobility started several years ago while riding around the narrow streets of Hanoi on a motorbike and seeing how automobiles, struggling to make their way through traffic, were unfit for those streets. I asked myself why anyone would choose to drive a car there.

The answer is, of course, quite complex. It can also be very interesting as a starting point for understanding the socioeconomic changes and development challenges Vietnam is facing. The automobile is still a very expensive luxury; in fact, Vietnam is one of the most expensive places to buy a car due to high taxes. This, at the same time, makes the car a powerful expression of the inequalities embedded in the new economic system. The limited availability of the car also strengthens its position as a potent status symbol. A striking sight in the narrow streets of Hanoi is the frequency of very big luxury cars. This is a sharp break with the country’s socialist past, when displays of personal wealth were frowned upon and could lead to serious trouble.

In post–Doi Moi Vietnam, the automobile is one of the most obvious symbols of the new reality, in which getting rich is considered glorious and displaying personal wealth has become normal. In contemporary Hanoi, expensive cars are used actively to display wealth—sometimes strategically to show business partners that you are successful.

Advantages and Drawbacks

 The new traffic in Hanoi (photo by Huong Nguyen)

The new traffic in Hanoi (photo by Huong Nguyen)

Although the car is very much a status symbol, this is not the only reason that people buy them. Most of the purchasers with whom I talked report they were motivated more by safety and family reasons, as transporting one’s family on a small motorbike can be dangerous. The car also allows you to stay cool (and white!) under the scorching sun and dry during the frequent periods of heavy rain. There is also a paradoxical relationship between air pollution and car consumption: riding in a car allows you to temporarily escape the dangerously deteriorating urban air quality. The car is thus both a powerful agent in causing air pollution and a means of escaping from it.

The private car has had a central place in capitalist (and sometimes socialist) development and industrialization around the world. In Vietnam, the car in many ways represents a development dilemma. The car industry is targeted to play a leading role in scaling up Vietnam’s industrialization, with foreign investment (particularly from Japan) leading to positive linkages with, and technological diffusion to, the rest of the Vietnamese economy.

Among many other things, this requires a larger domestic market for cars. Studies have shown, however, that the streets of Vietnam’s cities cannot accommodate a transition to private cars as a predominant means of transportation. In Hanoi, the growing number of cars is already significantly increasing the frequency of traffic jams and further deteriorating the toxic air quality. Greener cars, though, are part of neither the transportation nor industrial plans of Vietnam.

In global discourse, the automobile is frequently (and deservingly) attacked as being one of the most environmentally destructive aspects of private consumption. In Hanoi I spoke with foreign environmentalists who argued that Vietnam needs to realize that the car belongs to the past.

The Car as the Future

Traffic and street vendor in Hanoi (photo by Arve Hansen)

Traffic and street vendor in Hanoi (photo by Arve Hansen)

Moving beyond private car consumption may be a worthy ideal, but the argument that the car is history fundamentally fails to understand the position of the car in an emerging economy like Vietnam. In this context, the car represents the future. From the government side, moreover, the car industry and private car ownership are symbols of economic success. And for the growing ranks of the middle class, replacing the motorbike with a car is emerging as one of their main aspirations.

The motorbike is still king in the streets of Hanoi, although it is increasingly being forced into an interesting coexistence with four-wheel vehicles. Most car owners keep their motorbikes as well and choose their mode of transport in a flexible manner, with motorbikes being used for shorter distances and to go downtown, while the car is used for travelling with the family, attending important meetings, or leaving the city. In this way the car also supports the creation of new practices among the middle class, such as travelling outside the city for a weekend holiday.

While people often heap blame on the motorbike for all traffic problems in Hanoi, in a city with very limited public transport options and lack of infrastructure, the motorbike is the main reason why mobility is still fairly good. The government has decided that it will limit the number of motorbikes in the future. Given the lack of alternatives, this may pave the way for the car. It will be interesting to see what the future holds for the two-wheeled icon of contemporary Hanoi.

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Response of Indian Industries to Global Environmental Sustainability

April 6, 2014
By 19659

How does the response of one industrial sector affect other sectors of an economy? To gain insights into this question, Shyamasree Dasgupta, a Sylff fellow at Jadavpur University in India, has been analyzing the response over the past four decades of India’s industry to the country’s climate change action plan. In this article, she reports on her research conducted in the United States with an SRA grant has broadened her perspective.

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As a student of social science I always wondered how the response of an individual decision maker shapes up in conjunction with the responses of the bigger community to which the decision maker belongs. It became more interesting to me as I initiated my doctoral research to explore the responses of Indian industries to climate change mitigation goals.

As reduction of carbon emissions is a “global goal,” the most aggregated pledges are taken at the international level (such as the Kyoto Protocol, Copenhagen Accord). Specific climate change mitigation policies are, however, mostly formulated and implemented by the national government or a set of national governments in line with such global pledges. Finally, different economic sectors take their decisions with regard to the pattern of their operations to curb energy use and emissions in line with the pledge and policies.

The response of a particular economic sector (such as the industrial sector) is not a stand-alone phenomenon. The responses are triggered by the actions of other sectors of the economy and at the same time have an impact on the rest of the economy. In fact, the aggregate impact of the decisions taken by one economic sector depends on its relation with the rest of the economy. For example, if an industry substitutes coal by electricity as an energy input, then emissions from that particular industry will come down, but from a macro perspective, aggregate emissions will be reduced only when electricity is produced with a fuel that is less carbon intensive than coal.

My doctoral research seeks to understand how Indian industries have responded during the past four decades under various domestic policy domains, with a special emphasis on the country’s recent climate change mitigation policies. Having estimated such response parameters (for example, price elasticity of energy demand—the change in industrial energy demand when energy price changes), I wanted to explore how the same industrial sector can be expected to behave in a future time horizon while interacting with other sectors in the global economy if some global emission reduction pledge becomes binding.

I got the opportunity to explore this issue with my SRA award along with mentoring and support from my home institute, Jadavpur University in India, and my SRA host institute, the Joint Global Change Research Institute (JGCRI, a collaborative institute of the Pacific Northwest National Laboratory and the University of Maryland in the United States).

An Integrated Assessment Model for India

The author working on the Global Change Assessment Model at JGCRI

The author working on the Global Change Assessment Model at JGCRI

JGCRI has developed the Global Change Assessment Model (GCAM), an integrated assessment model representing the world economy that explores the links between energy, land use, water resource sectors, and a climate model. It incorporates both energy producing (such as electric power) and energy consuming sectors (such as industry). It creates a market where all the sectors are recursively solved for price and quantity, and the amount of carbon dioxide and other greenhouse gases emitted are estimated. The model could be used to explore responses of these sectors to several climate change mitigation pledges and policies.

GCAM divides the world into 14 regions, and India is one of them. The existing model employed the aggregated data for the Indian industry sector. Hence the responses towards any mitigation policy—can be so far analyzed only for the aggregate industry sector for India. My aim was to further develop the model with disaggregated industrial sectors for India, breaking up the industry sector into subsectors such as iron and steel, chemicals, and cement, along with a residual subsector named “other industries.” This would enable the user to analyze responses not only at the aggregate level but also for different subsectors in the context of Indian industry. The challenge was to break up the aggregate industry sector in an appropriate manner supported by authentic data so that the model would offer plausible solutions for years up to 2100 for all sectors and regions.

Being new to integrated assessment models, this was a true learning experience for me requiring several trials with different adjustments to obtain valid results! It was a stimulating experience solving the unforeseen errors cropping up during each trial run until I succeeded. I was greatly supported by my mentors and other colleagues at JGCRI in the process. In the course of my research, I came across fellow visiting scholars who were working on or had worked on several other sectors in other countries, including China and Brazil.

The research was greatly supported by the mentors and other colleagues at JGCRI

The research was greatly supported by the mentors and other colleagues at JGCRI

The model also used average values regarding how demand changes in response to changes in price in different industrial sectors. I substituted the average values for those specific to India that I had estimated prior to my SRA. Data were derived from the “Energy Statistics” and “Annual Survey of Industries,” published by the Ministry of Statistics and Programme Implementation, Government of India. The scenario demands a sharp decline in emissions from nonenergy-intensive industries, the phasing out of coal, and a significant increase in the use of clean electricity in industrial production. The use of biofuel emerged as one of the most effective medium-term solutions for Indian industries to meet the mitigation target.

Case Study in Climate Mitigation

Another objective of my SRA was to visit an energy-intensive industrial unit in the United States in order to compare its production and mitigation practices with its Indian counterparts. I was put in touch with the US Department of Energy through my mentor at the home institution, enabling me to visit such a facility. Things shaped up well, and I got a chance to accompany members of the American Forest and Paper Association on a visit to a pulp and paper company in Virginia. The day-long visit to the paper mill and discussions with the managers provided insights into their production processes and mitigation practices.

Visiting a paper mill with the members of the American Forest and Paper Association

Visiting a paper mill with the members of the American Forest and Paper Association

The mill was established in 1914 and has gone through changes in ownership and technology. It mainly produces corrugated paper from both raw wood and recycled paper. The pattern of energy utilization became a major issue of concern, as a result of which the mill became more energy efficient with greater emphasis on recycling and enhanced use of renewable energy. Over 80% of the electricity used by the mill is generated internally using multiple fuels, including black liquor, wood waste, and sludge. According to the company, it was the rise in fuel prices, rather than any particular energy or climate policy at the federal or state level, that drove it to reduce its dependence on purchased energy.

The SRA experience was extremely enriching for me. It not only helped me to augment my doctoral dissertation, which I am aiming to finalize in the coming few months, but at the same time provided me with an opportunity to work in the multidisciplinary and multiethnic environment of my globally renowned host institution.

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Waseda Fellow Wins International Award for Best Graduate Student Paper

April 3, 2014

Masaaki Higashijima

Masaaki Higashijima

Masaaki Higashijima, a 2008 Sylff fellow at Waseda University, was named the recipient of the 2014 Annual International IDEA/Electoral Integrity Project Award for Best Graduate Student Paper on Electoral Integrity. The Tokyo Foundation extends its warm congratulations to Mr. Higashijima.

The award is sponsored by the International Institute for Democracy and Electoral Assistance (IDEA) and the Electoral Integrity Project of Harvard University and the University of Sydney. The winner was selected on the basis of the paper’s potential significance—both theoretical and policymaking—to aspects of the election cycle.

His award-winning paper, titled “Beat Me If You Can: The Fairness of Elections in Dictatorships,” examines the dilemma dictators face in holding elections, based on statistical analyses of 67 authoritarian countries. While rigged contests may help dictators maintain their power, the results will not generate reliable feedback about popular support. The paper argues that a dictator’s power of popular mobilization determines the level of electoral integrity, theorizing that rulers with financial resources, effective organizations, and a weak opposition rely less on electoral manipulation. By contrast, fraud is more pervasive where dictators have fewer economic resources, weaker organizations, and face a stiff opposition.

The award committee noted that the paper represented a significant contribution to an understanding of electoral integrity in authoritarian states. The award will give Higashijima an opportunity to publish his paper as part of the International IDEA and Electoral Integrity Project working paper series, receive funding to make a presentation at a workshop on Citizens, Parties, and Electoral Contexts in Montreal in July 2014, and to present his paper at an international policymakers conference.

Higashijima was awarded a Sylff Research Abroad (SRA) grant in 2010 to conduct in-depth research in Central Asia, comparing Kazakhstan and Kyrgyzstan to shed light on what political and economic consequences elections are likely to bring in authoritarian regimes.

He has also contributed an article to the Voices from the Sylff Community page of the Sylff website titled “Elections and Political Order: A Cross-National Analysis of Electoral Violence.”
This article helped lay the foundation for his award-winning paper.

We look forward to his further academic achievements and contributions to society.

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SRA Awardees for Fiscal 2013, Second Round

April 2, 2014

2013-2 Awardees

2013-2 Awardees

The Tokyo Foundation is pleased to announce the 19 recipients of SRA awards in the second round of fiscal 2013 (April 2013 to March 2014). We received the second highest number of applications from around the world since the program’s relaunch in 2011.

The applications were carefully screened for eligibility, the feasibility of the proposal, and the relevance of the proposed research to the applicant’s current academic pursuits, as well as for their relevance to social issues.

Congratulations to the winning applicants, and many wishes that the opportunity for research abroad turns out to be a fruitful one.

The names of the awardees and their home and the host institutions can be viewed here.