Capitalism's Fatal Flaw: the Need for Numbers, at Any Cost

In Martin Mayer's The Bankers (1997), we learn that 

Is modern-day capitalism one giant pyramid scheme with many different sub-variations? Even before MLM, organizations focused more on membership growth than morality. After all, can't one more easily leverage membership into profit much more readily than principles? 

© Matthew Rafat (2018) 

Isolationism Has Consequences

Interview with Matteo of Semarang's Gelato Matteo

The Italians may not be the envy of the European Union when it comes to economic growth, but their traditions of excellent food and fashion continue. I met Matteo of Gelato Matteo, and we discussed his journey from Italy to Indonesia. 

Q: Semarang, Indonesia seems like an odd choice to open any restaurant or cafe. It's not well-known to tourists. 

A: I came here for furniture because my mother was in the furniture business. Then I met my wife. So it's not totally a business decision, but I think it's much easier here than Jakarta. There's more opportunity in Jakarta but costs, such as rents, are higher than in Semarang. I've always wanted to do an ice cream shop, even when I was in Paris. 

Q: But you don't have an ice cream shop. You have a gelato shop. 

A: Ah, but in Italian, gelato is the word for ice cream. Sorbet has a water base. Gelato has a milk base. 

Q: You opened your first location in the old town area [Kota Lama]. Why did you open a new place about two miles away? 

A: Actually, my first shop was in Jalan Mataram, and the old town location is my second shop. The second shop has been open for two months. 

Q: What do you look for when opening a location?

A: Indonesia is more difficult than Italy. In Italy, we say there are three things to make success: location, location, location. Here is different. You can open in a mall [and get guaranteed pedestrian traffic], but it's very expensive. Outside [air-conditioned] malls, there's no pedestrian traffic, so my first location was a gamble. I just liked the place. I wanted to make sure people felt like they were in Italy as soon as they came in. I wanted people to stop with their cars and come inside. 

Thinking backwards, there are other areas that were more suitable. For example, this new location is in a touristy area. Kota Lama Semarang applied to be a UNESCO heritage site, so they're re-doing everything, including the roads. Soon you'll see the roads filled with stones used in the old time. We hope to obtain this [UNESCO] certification. 

Q: What are your recommendations to aspiring businessowners who want to minimize risks in case they want to move? Obviously, the longer the lease, the more leverage you have, but what criteria do you look for when opening a store? 

A: You need to have someone local. Best thing. My local person is my wife. She's the owner. I cannot own in my name. Actually, I could own a business here, but I would need to change my company and bring more capital. 

Q: You mentioned your work visa costs 1700 USD for only one year. What was the process like?

A: Even though I'm married to an Indonesian woman, Indonesia does not allow dual citizenship, so I'm retaining my Italian/EU passport. The process for my visa was not difficult because I speak the local language and my wife assisted me.  

Q: What are your most popular gelato flavors? 

A: The basics: chocolate and vanilla. I think our pistachio flavor is the most interesting. When we make a flavor, we sometimes use a water rather than a milk base, which brings out the flavor more. You cannot mask the flavor in a sorbet. Without egg yolks and excessive cream, the flavor will stand out. [Interviewer's note: I liked the pistachio flavor, but the dark chocolate and coffee impressed me the most.] 

Q: Funny you mention that. I just tried the avocado flavor and was turned off by it. I tasted unripe avocado, but if you had added more cream, I wouldn't have been able to tell the difference. 

A: [holds hands up in apology] Before my gelato cafe, I used to run a restaurant. I hated TripAdvisor. We would check it all the time, and it became a distraction. Some people are just mean for no reason. You can also buy reviews or get your friends to post positive reviews. 

Q: What's the most reliable review site?

A: Word of mouth. If I tell you I went to a place and enjoyed the food, that's the best [way]. Instagram is extremely popular in Indonesia, so we use that as much as we can. 

Q: What is the most frustrating aspect of being a businessowner in Indonesia? 

A: The electricity goes up and down, on and off. You need a generator. The employees here also need motivation. 

Q: Some people say employees aren't motivated because the compensation structure doesn't give them an ownership interest or some other personal interest in the business. 

A: I give a percentage of income to my employees. Like in the States, instead of having a tip, I give a commission. It's called a service charge, and it's automatically added to the bill, whether customers eat-in or take-away. Also, the employees who stand out, I give them extra salary. I have six employees in one shop, something I could never do in Italy or America--it would be too expensive. 

Q: What are the biggest cultural differences between Europeans and Indonesians? Both seem family oriented. 

A: People here are not encouraged to take risks. They never had a French Revolution here. They are not used to criticizing institutions, practices, each other, or leaders. Look at what happened to Ahok [Basuki Tjahaja Purnama, former Chinese-Christian mayor of Jakarta]. Two years' jail for blasphemy. In Italy, we criticize everything and everyone, even the Pope. 

Interview with Ayu Nuarida: A Woman for All Seasons

Ayu Nuarida, a Yogyakarta native, recently received a one-year "working holiday" Australian visa, renewable for a total of three years. The conditions of her visa require working in either the hospitality or farming industries. As you might expect, she was quite excited, naming Tasmania, Sydney, and Darwin as potential destinations.

At Gelato Matteo in Semarang

Q: You were born and raised in Yogyakarta? 

A: Yes. 

Q: What do you like about Yogya?

A: Everything is pretty, cozy, and cheap. 

Q: What's something people don't know about Yogya?

A: Everyone comes to Yogya because of the temples, but neither city is technically in Yogya. Prambanan is half in Yogya, half in Klaten (central Java). Borobudur is in Magelang. 

Q: From the time you submitted your application, how long did it take to get your Australian visa? 

A: Only one month, but getting the necessary letters from police (criminal record check) and an interview with the Indonesian immigration department took several months. So even though I received my visa acceptance in November, I started the process in July.

Q: Wait, the Indonesian immigration department interviews you for an Australian visa?

A: Yes. The department gives one thousand letters to Indonesians to go abroad. Maybe next year, the quota is higher. The age must be under thirty. To work abroad, I need the permission of the Indonesian government.

Q: What is the Indonesian government [in partnership with the Aussie government] looking for? 

A: Passport valid for 18 months, bank account showing 5,000 Australian dollars, a minimum score of 4.5 on the IELTS (English competency test). You also need a college degree of at least three years' study or to be an active student with at least two years of study. 

Q: What is your educational background?

A: I attended public schools from 6 until 17 years old. From 14 to 17, I chose to attend a vocational high school to study computer networking. I expected to work right after high school. 

Q: What did you do after high school?

A: I was working and traveling [in Indonesia]. Then I started college at 22 to study Batik [Indonesian design and dying process on clothing] and fashion. 

Q: What made you attend college, and how much did it cost?

A: I was bored, and I didn't have any goals. Also, people would treat me differently when I told them I wasn't well-educated. For the Australian working holiday visa, I needed a college diploma. Tuition fees each year were 4 million rupiah [275 USD] and the diploma required three years full-time study. 

Q: What do you expect in Australia?

A: I expect to make a lot of money, which will allow me to travel to Europe. My dream is to have a place selling Batik [clothing] somewhere in the world. 

Q: Why are you interested in seeing Europe? 

A: Europe is far from Indonesia. I'm a tropical girl, and I want to see the four seasons. I've never seen snow before. Even in Australia, I can see four seasons, but the four seasons in Europe are different than the ones in Australia, right? 

Q: I don't know--you'll have to tell me later. But many countries have four seasons--what makes you so interested in Europe? 

A: I like the Nordic countries because they speak English, have good healthcare, and I've heard nothing bad about them. 

Q: Did you hear about Norway's 2011 mass shooting targeting immigrants? 

A: Yes. It can happen anywhere. 

Q: What are you most afraid of when you relocate to Australia? 

A: I'm afraid I'll be jobless or I won't find a job quickly. I'm also worried how quickly it will take to adapt to the weather because it's not the tropical climate I'm used to. 

Q: Sounds like you're both eager and scared to experience the four seasons. It's always easier if you know people in a new place to help you adapt. Do you know anyone in Australia? How do you expect to make friends?

A: I know a few people, but I haven't kept in touch with them. [Pauses] I really don't know how I will make friends [in Australia]. 

Q: The Australians have a reputation for being friendly, so it should be okay. What is your impression of Australians?

A: I only know about Hugh Jackman and Mel Gibson, the actors. I think Australia will be totally different than Indonesia. 

Ayu's mobile screensaver

The State of Social Media Today & Our Complicity

The state of social media and "grassroots" journalism by well-meaning Americans and Brits can only be described as a tragicomedy of Shakespearean proportions. 

The man in question is wearing a shirt with a noose--signifying a lynching--over an old Southern flag and the words, "Mississippi Justice." For most discerning folks, the noose, not the flag, is the main issue. After all, Mississippi's official state flag includes the Confederate "Southern cross," and I've seen several stores in Asia selling Confederate flag merchandise to young buyers who probably discovered "Sweet Home Alabama" on Spotify. Here, we have no way of knowing--without further investigation--whether the man wearing it actually advocates vigilantism or racism. 

Basic logic ought to tell us that without due process--a seemingly forgotten value along with its cousin, humility--we don't know if the shirt was his father's and a keepsake, or whether he was wearing it as a reminder of Southern history. Wearing a diamond ring doesn't mean its wearer supports "blood diamonds" and African exploitation, just as driving a gasoline-powered car doesn't mean you hate the environment. 

Unfortunately, in this case, the reasoning is most likely simple: Mr. Clayton Hickey, a former Memphis police officer who resigned after a questionable situation involving a 17 year-old girl, probably just liked the shirt. I wouldn't want my local police officer anywhere near a noose, but my greater concern is we've accepted a society where we cannot easily access his law enforcement conduct--done on the taxpayers' dime--and yet, his voting behavior--which is supposed to be private--was the cause of his downfall. 

Mr. Hickey is an easy target. He has a stereotypically white name, a controversial history, and an apparently large presence. Yet, he seems to have reformed himself as a male nurse, and nowhere do we see any indication his nursing skills were deficient or discriminatory. I wonder if we realize it is the Mr. Hickeys of the world the law and due process are supposed to protect, just as they should if he were named Mr. Daquan Johnson with a juvenile criminal conviction, voting in a booth wearing an N.W.A. shirt. 

Once upon a time, as an employment lawyer, I believed in the law's ability to protect minorities; to protect employee off-the-job behavior irrelevant to one's position; and especially to keep the mob from jumping to conclusions before all the facts were in. Today, I wonder what anyone can really do when the mob is all of us: the hospital that fired him, the man who posted the photo without actually speaking to him, and every online commentator who twists the knife further into the coffin of the once-cherished value of American due process. Have we no shame? Or at least the decency to spend our time on something worthwhile? 

Bonus: most Americans are unaware American hospitals are tied closely to government policies and funding. "State governments became the largest single source of funds for virtually every major hospital in the country, giving them the power to influence--or even dictate--the policy decisions made by these hospitals." -- John Steele Gordon, Imprimis, 9/2018

Incredible Book on Chinese Influence in the Philippines

I just discovered an incredible book, Chinese Participation in Philippine Culture and Economy (1964), edited by Dr. Shubert S.C. Liao, Professor of Economics, University of the East. 

Dr. Liao took work from other writers like Dr. Mao-Lan Tuan and Dr. H. Otley Beyer, creating a deeply edifying compilation of Philippine history. I heard the term, "Hadramaut Sayyids," for the first time and learned "about 2% of the present Philippine population is descended from Arab or Persian ancestors, either ancient or modern." Other sections of the book detail anti-Chinese legislation throughout Asia. 

Below are a few selections, copied under fair use doctrine: 

Best Museums in the World

As of November 2018, I've visited fifty countries. Below are my favorite museums. 

1. Museum of Islamic Art in Qatar (Doha). Even the building itself is a work of art designed by I.M. Pei. (FYI: the National Museum of Qatar opens on March 28, 2019.)

2. National Palace Museum of Taiwan aka Chinese Taipei (Taipei). The best organized museum of Asian art I've seen so far--quite a feat when one considers the vast amount of artifacts to classify. 

3. Checkpoint Charlie Museum aka Wall Museum in Germany (Berlin). One of the simplest and most unique museums in the world. 

4. Oklahoma City National Memorial Museum in USA. Well-designed exhibitions, including interactive multimedia. Take note of the fact that two Palestinians were wrongfully arrested at the beginning of the investigation into the bombing. 

5. Museum of Anthropology aka Museo Nacional de Antropologia in Mexico (Mexico City). Should be re-named the Museum of Ethnography. A vast treasure trove of artifacts and history. 

6. Museum of Natural History in Austria (Vienna). Hate the city, love the museum. Quite possibly the best natural history museum in the world, suitable for both children and adults. 

7. British Museum (London). Make sure you see the Rosetta Stone. If you like this museum, try the Louvre in Paris. (Note: I liked the British Library, which also has temporary exhibitions, much more than either the Louvre or British Museum.) 

8. House of Terror aka Terror Háza of Hungary (Budapest). Very heavy-handed but worthwhile. Several startling video clips throughout the museum. Be sure to grab an explanatory leaflet at the entrance of each section. 

9. Aga Khan Museum in Canada (Toronto). A good experience if you're unfamiliar with Middle Eastern art and sculptures. 

10. The Amana Heritage Museum in Iowa, USA (Amana). I loved learning about self-sufficient, religious German pacifists who moved from New York to Iowa to seek better lives. How would locals treat them during the wars? How did they adapt? 

11. Dresden Castle aka Residenzschloss and, to a lesser extent, Zwinger in Dresden, Germany. These two museums are within walking distance of each other. The larger one, which houses one of the most complete currency exhibitions in the world, is Dresden Castle. I saw three items belonging to Martin Luther: 1) a drinking glass converted into a goblet; 2) a book (Hauspostille); and 3) an insignia designed by Luther himself showing a rose, a heart, and a cross. 

Honorable mentions: 

12. Topkapi Palace Museum in Istanbul, Turkey. It holds items relating to the Prophet Muhammad (PBUH) plus "the tray used by Abraham; the staff of Moses; the sword of David; the robe of Joseph; the swords of the Prophet Muhammad’s companions; and the shirt, mantle, praying mat, and chest of Muhammad's daughter Fatimah." I was struck by how the Prophet Muhammad's (PBUH) possessions were ordinary on the outside--mostly one color--but when opened, contained ornate designs. An interesting metaphor, perhaps, for some of Islam's practices and customs.

13. War Remnants Museum in Ho Chi Minh City, Vietnam. 

14. International Museum of the Baroque in Puebla, Mexico. 

15. Dresden Castle, which is actually several museums in one location. One of the buildings contains items owned by Martin Luther. 

16. Islamic Arts Museum Malaysia in Kuala Lumpur. 

Bonus I: my favorite waterfalls are 1) Niagara Falls, Canada; (tie) 2) Sipiso-piso in Medan, Sumatra/Sumatera, Indonesia; Madakaripura in Probolinggo, Java, Indonesia; 3) La Fortuna in Alajuela Province, Costa Rica; 4) Casaroro Falls, Valencia/Dumaguete, Philippines; 5) Air Terjun Banyu Anjlok, in Jepara, Indonesia; 6) Air Terjun Sarasah near Padang, Indonesia. (I hope one day to visit Argentina's Iguazu Falls and perhaps Rio Celeste Waterfall, Tenorio Volcano National Park, Alajuela, Costa Rica.) 

Bonus II: my favorite libraries are 1) Bodleian Library (Oxford, England); 2) Biblioteca Palafoxiana (Puebla city, Puebla, Mexico); 3) library@harbourfront aka Bukit Merah Public Library (VivoCity, Singapore); 4) Qatar National Library (Doha, Qatar Foundation, Qatar). 

Honorable mention: Biblioteca Publica Universitaria y Fondo Antiguo (Morelia, Mexico).