December 3, 2011
1980's Energy Crisis, 1991 Recession, 1997 Asian Financial Crisis, 2007 Recession, Age of the Internet, Case Study, GDP, globalization, Human Capital, Internet, Internet Bubble, Internet Usage, Singapore, Technological Capital, United States
How Are The Finances of the United States and Singapore Similar?
Financially these two countries are interconnected in our globalized world. Here are both countries GDP percentage growths for the last thirty years:
These countries are associated financially. In 1982, 1991, 2001, and 2009 sharp canyons affect both lines of data. Each gulf corresponds directly to a specific global recession. The 1982 dip is backlash from the 1980’s energy crises. The inflation epidemic of the early 1990’s caused the 1991 recession. Popping of the internet bubble in 2001 caused a major dip in both countries. Finally, fallout from the 2008 banking crises is seen in the 2008 and 2009 chasm.
Only in 1998 does Singapore act independently from the United States. During this year Singapore was negatively influenced by the 1997 Asian Financial Crisis. Despite being thousands of miles away from this regional problem there is a noticeable stun in America’s economic growth as well. These several associated data points mean these countries are financially related.
Are Measurements of Human Capital Similar?
Human capital is an abstract term that attempts to quantify the collective value of the education and habits of a citizenship. One good indicator of this is Internet usage; access to international data and technologies revolutionizes education at home, in schools, and in the workplace. Below is a comparison between the United States and Singapore numbers of internet users.
The data is skewed left with a steady incremental increase every year until both counties. At 2002 for the United States and 2004 for Singapore the data levels off and the numbers of new internet users decreases. The United States pioneered the Internet, so they have more widely spread usage. However, Singapore follows the United States timeline closely; during most years the numbers of internet users in Singapore is the same percentage of users the United States had two years prior. Here is the Internet usages growth compared in relation to each other at this staggered relation:
In this examination the positive values represent when Americans gained more internet users than the Singaporean and the negative values represent when the Singaporeans gained more users than the Americans. The same internet bubble that exploded in the GDP growth percentages can be seen building in both countries. Between 1998 and 1999 the Americans lose smaller and smaller incriminates as they rapidly proliferate the first internet startups. Following two years behind, in 2000 and 2001, Singapore establishes record numbers of internet users as the internet bubble balloons over Eastern Asia. These statistics are all interconnected just as the countries are.
What Lessons can America take from the Singapore?
The primary lesson from this analysis is that we are all connected. When America triggered a recession by bankrupting Lehmean Brothers in 2008 it triggered a recession that terrorized Singapore. Likewise, when the 1997 Asian Financial Crisis rocked Singapore America was also negatively affected. However, this relationship works both ways. The Internet has brought a new age of prosperity to America and Singapore. Perhaps their architecture techniques will return to America and allow us to better utilize our own space. As the world grows more globalized the altruistic options only proliferate.
Thank you for Reading Part 3 of our Case Study of the populstions Singapore and the United States: Please Read Part 1 and Part 2 for the full perspective.
“Inflation, Consumer Prices (annual %) | Data | Table.” Data | The World Bank. Web. 31 Oct. 2011. <http://data.worldbank.org/indicator/FP.CPI.TOTL.ZG>.
“List of Recessions in the United States.” Wikipedia, the Free Encyclopedia. Web. 31 Oct. 2011. <http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States>.
October 5, 2011
Aakash, Amazon, American Education, Android, Apple, China, college, Computer Tablet, creative destruction, Datawind, education, Fire, Galaxy Tab 7, GPRS, India, Infrastructure, Internet, Ipad, Ipad 2, Kapil Sibal, Market, quote, Samsung, Students, survival of the fittest, Tablet, Tablet Market, Tablet War, University, Upper Education, video chatting, western world, WiFi, Youtube
Apple’s Ipad 2: $499
Amazon’s Fire: $199
India’s Aakash: $35
Connecting 220 million students with the world’s cheapest tablet: Priceless.
India drives to connect rural students
What is The “Aakash“?
It is a low-cost, high-performance computer tablet, price at $35 per device.
It is designed to proliferate knowledge through education in India, especially in rural regions. Despite its rock bottom price it still displays a 7 inch screen, plays high-definition video, streams video chatting, hosts word processing, runs Android 2.2 operation system, possesses 32 gigabyte memory, uses GPRS for connecting to the Internet from anywhere, and uses WiFi for Youtube streaming in hot spots. The Indian government will subsidized each table down to $35. This is ideal for university students because it allows them to build better human capital with their limited resources. Previously, many have been cut off from the rest of the world due nonexistent infrastructure.
The English translation of Aakask is “sky.” This tablet’s release will mark the beginning of a new dawn in education in India and the world.
What Does Aakash Mean For The Tablet Market?
Datawind, the private company manufacturing Aakash, announced that the tablet will be priced at $60 dollars for the commercial market. It will be on shelves by November. This will encroach on the tablet war already progressing in India; currently Samsung’s Galaxy Tab 7 holds just under half the market and less than one in five tablets is an Apple Ipad. Dozens of other models struggle for niches. The vanguard shipment of Aakash tablets numbers 100,000. When this large-scale field test proves successful eight to ten million more will be bought by the Indian government.
Undercutting the more expensive tablets the Aakash will force innovation and a price war. Aakash forces a technological survival of the fittest; the best and cheapest technologies will overthrow the more expensive models. The economist term for this is creative destruction.
Unless other companies build a better tablet they very simply will be locked out of the market. The cunning Indian government will disseminate cheaper and higher quality tablets, with internet access, by forcing the hand of the private sector.
What Does This Mean for the Future of Indian Education?
At the unveiling today Kapil Sibal, the Indian Human Resource Minister, aptly described Aakash’s historic significance,
“There are some moments in history that will be milestones recognised by future generations. This is one such milestone. Today, we see the beginning of a dream realised, a dream in which every student in every corner of this country will have access to technology that defines the 21st Century.”
By bringing the world to the fingertips of their students schools towards increasing the quality of education exponentially. Answers to impossible questions will be just a click away.
It also forces the hand of Western education. Already, towns and cities across the Western world have already launched similar educational initiative. This is not enough; every statistic points to American and European students falling behind their Chinese and Indian counterparts. Many American colleges already distribute laptops, tablets must be given to the coming classes if American schools are to stay competitive. Otherwise, American education will fall victim to creative destruction.