October 2014 – Page 2 – Go Lean…Caribbean

Month: October 2014

The Cost of Cancer Drugs

Posted on October 7, 2014 in Economics, Ethos, Social

Go Lean Commentary:

1. Even a broken clock is right … twice a day.
2. Greed is good … for incentivizing innovation.

According to the transcript in the below VIDEO, “Cancer is so pervasive that it touches virtually every family in this country. More than one out of three Americans will be diagnosed with some form of it in their lifetime. And as anyone who’s been through it knows, the shock and anxiety of the diagnosis is followed by a second jolt: the high price of cancer drugs.”

“If 1-in-3 Americans are at risk for cancer, Caribbean citizens cannot be far behind”. So declares the book Go Lean…Caribbean (Page 157). This is not speculative, this is real … life and death. The principal author for the Go Lean book dedicated the book to his sister who had recently died after losing her battle with cancer. 42 years earlier, their mother died of the same cause.

The opening quotations relate the underlying theme of this commentary, that the cost of cancer drugs is a distortion of the “free market”; reflective of American “crony” capitalism. Also, that despite an obvious broken eco-system, failed-state status in Cuba, this Caribbean country “does cancer drugs right”. This point is related in the following article:

Title #1: Medimpex to sell Cuban ‘scorpion’ cancer drug here [in Jamaica]
By: HG Helps, Editor-at-Large
helpsh@jamaicaobserver.com

HUNGARIAN drug distribution company Medimpex has been granted exclusive rights to import and sell to retailers the Cuban cancer-fighting drug Vidatox.

The drug, produced by protein peptides from the venom of the blue or Rhopalrus Junceus scorpion — endemic to Cuba — will be available in Jamaican pharmacies before the end of October, an official of Medimpex told the Jamaica Observer.

“On September 18, we signed a contract with Cuban company Labiofam, which distributes Vidatox and we are awaiting the first shipment in another four weeks,” Medimpex’s Managing Director Laszlo Bakon said.

“We see a huge potential for the drug in Jamaica, because cancer is one of the leading causes of death in Jamaica and other countries of the world.

“The demand is definitely there. We have held meetings with oncologists in Jamaica and the feedback from them and the rest of the market is good. It is a unique cancer treatment,” Bakon said.

Jamaica’s Ministry of Health approved the introduction of Vidatox to the shelves of local pharmacies, following its registration on June 18, when a team of technocrats from the socialist country visited.

Early indications are that the cost of the oral drug could be in the region of US$150 for a 30ml bottle, which normally represents two months’ usage.

Vidatox is already being used in Asia, Europe, North, South and Central America.

The drug has been used to treat cancer-related ailments among the Cuban population for over 200 years. This followed 15 years of clinical research spearheaded by Cuban biologist Misael Bordier and tests involving more than 10,000 people — 3,500 of them foreigners — which yielded positive results in improving quality of life, retarding tumour growth and boosting the immune system in cancer patients.

The drug is said to be safe, with no side effects, and is principally used along with conventional medicines.

“The Cubans have done their job and from now on it will be our job to put it on the market. There is a lot of scepticism from the western world about the drug, but the truth always triumphs. When they see what happens to patients, then they will believe. We have clinical proof that Vidatox works,” said Bakon, who is also Hungary’s honorary consul in Jamaica.

Cuba’s Ambassador to Jamaica, Yuri Gala Lopez, hailed the new business alliances.

“I hope that doctors in Jamaica will take advantage of this partnership, as steps like this will strengthen the already close relationship between Jamaica and Cuba,” Gala Lopez said.

Bakon said that there would be sharp monitoring of the use of the drug and meetings have been held with the National Health Fund and the Jamaica Cancer Society, but no direct communication has been established with the management of public hospitals yet.
Jamaica Observer Daily Newspaper = Posted 09-24-2012; Retrieved 10-07-2014
http://www.jamaicaobserver.com/news/Medimpex-to-sell-Cuban–scorpion–cancer-drug-here_12606863

—————————-

VIDEO Title: The Cost of Cancer Drugs in the US
CBS News Magazine 60 Minutes – Posted 10-05-2014. (VIDEO plays best in Internet Explorer). http://www.cbsnews.com/news/the-cost-of-cancer-drugs/

Why is the cost of cancer drugs so high in the US?

One theory was posited in a recent Go Lean blog, that related that Big Pharma, the Pharmaceutical industry, dictates standards of care in the field of medicine, more so than may be a best-practice. The blog painted a picture of a familiar scene where pharmaceutical salesmen slip in the backdoor to visit doctors to showcase latest product lines; the foregoing VIDEO relates that there are commission kick-backs in these arrangements. The Go Lean book posits that the Caribbean must take its own lead in the battle of health, wellness and cancer. The US eco-system is mostly motivated by profit.

Cuba is right, on this matter. As they demonstrate, we can do better in the Caribbean homeland, and still glean economic benefits.

The Go Lean book strategizes a roadmap for economic empowerment in the region, clearly relating that healthcare, and pharmaceutical (cancer drug) acquisitions are important in the quest to make the Caribbean a better place to live, work and play. At the outset of the Go Lean book, in the Declaration of Interdependence (Page 11), these points are pronounced:

viii. Whereas the population size is too small to foster good negotiations for products and commodities from international vendors, the Federation must allow the unification of the region as one purchasing agent, thereby garnering better terms and discounts.

ix. Whereas the realities of healthcare and an aging population cannot be ignored and cannot be afforded without some advanced mitigation, the Federation must arrange for health plans to consolidate premiums of both healthy and sickly people across the wider base of the entire Caribbean population. The mitigation should extend further to disease management, wellness, obesity and smoking cessation programs.

The Go Lean serves as a roadmap for the implementation and introduction of the technocratic Caribbean Union Trade Federation (CU). The CU‘s prime directives are identified with the following 3 statements:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

Previous blog/commentaries addressed issues of capitalistic conflicts in American medical practices, compared to other countries, and the Caribbean. The following sample applies:

Antibiotics Misuse Linked to Obesity in the US

CHOP Research: Climate Change May Bring More Kidney Stones

Big Pharma & Criminalization of American Business

New Research and New Hope in the Fight against Alzheimer’s Disease

Health-care fraud in America; criminals take $272 billion a year

New Cuban Cancer medication registered in 28 countries

The foregoing news article and VIDEO provides an inside glimpse in the retailing of cancer groups bred from a research discipline. Obviously, the innovators and developers of drugs have the right to glean the economic returns of their research. The two foregoing articles (#1-Print and #2-VIDEO) show two paths, one altruistic and one bent on greed. In the Caribbean, Cuba currently performs a lot of R&D into cancer, diabetes and other ailments. The Go Lean roadmap posits that more innovations will emerge in the region as a direct result of the CU prioritization on science, technology, engineering and medical (STEM) activities on Caribbean R&D campuses and educational institutions.

The Caribbean Union Trade Federation has the prime directive of optimizing the economic, security and governing engines of the region. The foregoing article and VIDEO depicts that research is very important to identify and qualify best-practices in health management for the public. This is the manifestation and benefit of Research & Development (R&D). The roadmap describes this focus as a community ethos and promote R&D as valuable for the region. The following list details additional ethos, strategies, tactics, implementations and advocacies to optimize the region’s health deliveries and R&D investments:

Community Ethos – Deferred Gratification	Page 21
Community Ethos – Economic Systems Influence Individual Choices and Incentives	Page 21
Community Ethos – The Consequences of Choices Lie in the Future	Page 21
Community Ethos – Governing Principles – Lean Operations – Group Purchasing	Page 24
Community Ethos – Governing Principles – Return on Investments	Page 24
Community Ethos – Governing Principles – Cooperatives	Page 25
Community Ethos – Non-Government Organizations	Page 25
Community Ethos – Ways to Impact Research & Development (R&D)	Page 30
Community Ethos – Ways to Promote Happiness	Page 36
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategy – Integrate and unify region in a Single Market	Page 45
Strategy – Agents of Change – Globalization	Page 57
Tactical – Fostering a Technocracy	Page 64
Tactical – Separation of Powers – Health Department	Page 86
Tactical – Separation of Powers – Drug Administration	Page 87
Implementation – Ways to Pay for Change	Page 101
Implementation – Ways to Implement Self-Government Entities – R&D Campuses	Page 105
Implementation – Ways to Deliver	Page 109
Planning – Ways to Improve Trade	Page 128
Planning – Ways to Make the Caribbean Better	Page 131
Advocacy – Ways to Improve Healthcare	Page 156
Advocacy – Ways to Better Manage the Social Contract	Page 170
Advocacy – Ways Foster Cooperatives	Page 176
Advocacy – Ways to Improve Emergency Management	Page 196
Advocacy – Ways to Impact Foundations	Page 219
Advocacy – Ways to Impact Persons with Disabilities	Page 228
Appendix – Emergency Management – Medical Trauma Centers	Page 336

The Go Lean roadmap does not purport to be an authority on medical or cancer research best-practices. The CU economic-security-governance empowerment plan should not direct the course of direction for cancer research and/or treatment. But something is wrong here. The pharmaceutical companies cannot claim any adherence to any “better nature” in their practices. Their motive is strictly profit …

The King of Pop, Michael Jackson, released a song with the title: “They don’t [really] care about us”; he very well could have been talking about Big Pharma; (https://www.youtube.com/watch?v=QNJL6nfu__Q). The foregoing CBS 60 Minutes VIDEO relates one drug, Gleevec, as a top selling option for industry giant Novartis, “bringing in more than $4 billion a year in sales. $35 billion since the drug came to market. There are now several other drugs like it. So, you’d think with the competition, the price of Gleevec would have come down. Yet, the price of the drug tripled from $28,000 a year in 2001 to $92,000 a year in 2012”.

This is not economics, which extols principles like the “law of diminishing returns”, or “competition breathes lower prices and higher quality”. No, the cancer drug industry is just a “pure evil” version of American Crony Capitalism.

This is not the role model upon which we want to build Caribbean society.

We can do better in the Caribbean – thanks to Cuba, we have done better. We can use this ethos to impact the Greater Good; this means life-or-death. This is the heavy-lifting of the CU. We can make the Caribbean a better place to live, work, heal and play.

Download the book Go Lean … Caribbean – now!

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Cancer, Crony-Capitalism, Cuba, Health, Power, Sales

Antibiotics Use Associated With Obesity Risk

Posted on October 6, 2014 in Ethos, Social, Strategy

Go Lean Commentary:

The below news article relates to our most vulnerable victims in society, our children under age 2. The article helps us to appreciate that they need to be protected.

This report was published by a recognized technocratic institution, the Children’s Hospital of Philadelphia (CHOP), a previously referenced source for the publishers of the book Go Lean…Caribbean. Many of the research of CHOP have relevance for Caribbean life and the Go Lean elevation effort.

The CHOP research is published as follows:

Title: Antibiotic Use by Age 2 Associated With Obesity Risk

Repeated exposure to broad-spectrum antibiotics in the first two years of life is associated with early childhood obesity, say researchers from The Children’s Hospital of Philadelphia in a retrospective study based on data from electronic health records from the extensive CHOP Care Network.

Studying early life events that may affect how the body regulates weight

The researchers found that children with four or more exposures to broad spectrum antibiotics during infancy were particularly more likely to be at risk for obesity. The study, published online September 29, 2014 in JAMA Pediatrics, did not directly examine cause and effect, said Charles Bailey, MD, PhD, (See Photo) lead author of the study, but he added, “as pediatricians, we’re interested in whether events that happen early in life might reset the baseline and have a long-term effect on how the body regulates weight.”

The researchers were intrigued by the emerging idea that the microbial population that begins to colonize in infants’ intestines shortly after birth, known as the microbiome, plays an important role in establishing energy metabolism. Previous studies have shown that antibiotic exposure influences the microbiome’s diversity and composition. “The thought is that the microbiome may be critically dependent on what is going on during infancy,” Bailey added.

The study team analyzed electronic health records from 2001 to 2013 of 64,580 children with annual visits at ages 0 to 23 months, as well as one or more visits at ages 24 to 59 months within the CHOP Care Network. They assessed the relationships between antibiotic prescription and related diagnoses before age 24 months and the development of obesity in the following three years.

Broad-spectrum drugs associated with obesity but not narrow-spectrum drugs

The investigators saw the association with broad-spectrum drugs, but they reported no significant association between obesity and narrow-spectrum drugs. For this study, they classified first-line therapy for common pediatric infections, such as penicillin and amoxicillin, as narrow-spectrum. They considered broad-spectrum antibiotics to include those recommended in current guidelines as second-line therapy.

“Treating obesity is going to be a matter of finding the collection of things that together have a major effect, even though each alone has only a small effect,” said Patricia DeRusso, MD, director of the Healthy Weight Program and vice president of Medical Staff Affairs at Children’s Hospital who was the senior author of the study. “Part of what we are exploring in this study is one of those factors that we can possibly modify in the way we take care of kids and make it better.”

Future investigations are needed involving multiple large pediatric health systems that will take a broader look at several populations and how adopting guidelines that accentuate the use of narrow-spectrum antibiotics might affect patients’ risk of obesity, Dr. Bailey said. In addition to supporting this type of research locally, CHOP is also a key contributor to networks such as PEDSnet that link many children’s hospitals to make more effective clinical research possible. Researchers also are looking at ways the microbial communities living in infants’ intestines are swayed by dietary and environmental factors.

Early intervention is key

Childhood obesity has more than doubled in children over the past 30 years, according to the Centers for Disease Control and Prevention. Many will remain obese into adulthood and be susceptible to heart disease, type 2 diabetes, stroke, several types of cancer, and osteoarthritis. Medical researchers at CHOP want to identify ways to intervene as early as possible, in order to avert the lifetime of medical, developmental, and social problems associated with obesity.

More information

“Association of Antibiotics in Infancy With Early Childhood Obesity” JAMA Pediatrics, published online on September 29, 2014 doi:10.1001/jamapediatrics.2014.1539

Dr. Bailey’s coauthors were Christopher Forrest, MD, PhD; Peixin Zhang, PhD; Thomas M. Richards, MS; Alice Livshits, BS; and Patricia A. DeRusso, MD, MS.

This research project was funded by an unrestricted donation to The Children’s Hospital of Philadelphia’s Healthy Weight Program from the American Beverage Foundation for a Healthy America.

Contact: Joey McCool, The Children’s Hospital of Philadelphia, 267-426-6070 or McCool@email.chop.edu
Children’s Hospital of Philadelphia Web Site – Posted 9-30-2014
http://www.chop.edu/news/antibiotic-use-by-age-2-associated-with-obesity-risk.html

Referenced Video: https://www.youtube.com/watch?v=HF3zTp5YQSg

Why is antibiotics misuse so high in American society*?

One theory is that Big Pharma, the Pharmaceutical industry, dictates standards of care in the field of medicine, more so than may be a best-practice. (Picture the scene of a Pharmaceutical Salesperson slipping in the backdoor to visit a doctor and showcase latest product lines).

This subject of damaging health effects deriving from capitalistic practices in medicine aligns with Go Lean … Caribbean (Page 157), as it posits that Cancer treatment (in the US) has been driven by the profit motive, more so than a quest for wellness and/or a cure.

This is not the model we want to effect the well-being of our young children.

The Go Lean roadmap specifies where we are as a region (minimal advanced medicine options), where we want to go (elevation of Caribbean society in the homeland for all citizens to optimize wellness) and how we plan to get there – confederating as a Single Market entity. While the Go Lean book strategizes a roadmap for economic empowerment, it clearly relates that healthcare, and pharmaceutical acquisitions are important in the quest to make the Caribbean a better place to live, work and play. At the outset of the Go Lean book, in the Declaration of Interdependence (Page 11), these points are pronounced:

viii. Whereas the population size is too small to foster good negotiations for products and commodities from international vendors, the Federation must allow the unification of the region as one purchasing agent, thereby garnering better terms and discounts.

ix. Whereas the realities of healthcare and an aging population cannot be ignored and cannot be afforded without some advanced mitigation, the Federation must arrange for health plans to consolidate premiums of both healthy and sickly people across the wider base of the entire Caribbean population. The mitigation should extend further to disease management, wellness, obesity and smoking cessation programs.

The Go Lean book is not a medical reference or science book, but it does touch on medical issues, especially as they relate to community economics. The publishers of the book are not trying to dictate policies for medical practice; that would be out-of-scope for Go Lean, which serves as a roadmap for the implementation and introduction of the technocratic Caribbean Union Trade Federation (CU). The CU‘s prime directives are identified with the following 3 statements:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

Previous blog/commentaries addressed similar issues as the foregoing article. The following sample applies:

CHOP Research: Climate Change May Bring More Kidney Stones

Big Pharma & Criminalization of American Business

New Research and New Hope in the Fight against Alzheimer’s Disease

New Cuban Cancer medication registered in 28 countries

The Caribbean Union Trade Federation has the prime directive of optimizing the economic, security and governing engines of the region. The foregoing article/VIDEO depicts that research is very important to identify and qualify best-practices in health management for the public. Obviously the scourge of obesity is unwelcomed. Nutrition education is a key mitigation, but the foregoing article/VIDEO proclaims another driver that is outside of the control of the afflicted, or their families. This is the manifestation and benefits of Research & Development (R&D). The roadmap describes this focus as a community ethos. Then it goes on to stress that the CU must promote the community ethos that R&D is valuable and must be incentivized for adoption. The following list details additional ethos, strategies, tactics, implementations and advocacies to optimize the region’s health deliveries:

Community Ethos – Deferred Gratification	Page 21
Community Ethos – The Consequences of Choices Lie in the Future	Page 21
Community Ethos – Governing Principles – Return on Investments	Page 24
Community Ethos – Cooperatives	Page 25
Community Ethos – Non-Government Organizations	Page 25
Community Ethos – Ways to Impact Research & Development (R&D)	Page 30
Community Ethos – Ways to Promote Happiness	Page 36
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategy – Integrate and unify region in a Single Market	Page 45
Strategy – Agents of Change – Globalization	Page 57
Tactical – Fostering a Technocracy	Page 64
Tactical – Separation of Powers – Health Department	Page 86
Tactical – Separation of Powers – Drug Administration	Page 87
Implementation – Ways to Pay for Change	Page 101
Implementation – Ways to Implement Self-Government Entities – R&D Campuses	Page 105
Implementation – Ways to Deliver	Page 109
Planning – Ways to Make the Caribbean Better	Page 131
Advocacy – Ways to Improve Healthcare	Page 156
Advocacy – Ways to Better Manage the Social Contract	Page 170
Advocacy – Ways Foster Cooperatives	Page 176
Advocacy – Ways to Improve Emergency Management	Page 196
Advocacy – Ways to Impact Foundations	Page 219
Advocacy – Ways to Impact Youth – Healthcare	Page 227
Advocacy – Ways to Impact Persons with Disabilities	Page 228
Appendix – Emergency Management – Medical Trauma Centers	Page 336

The foregoing news/VIDEO story depicted analysis administered by the Children’s Hospital of Philadelphia, a teaching and research facility for the care of children. There is a need for more such R&D on obesity causes and drivers. In the Caribbean, Cuba currently performs a lot of R&D into cancer, diabetes and other ailments. The Go Lean roadmap posits that more innovations will emerge in the region as a direct result of the CU prioritization on science, technology, engineering and medical (STEM) activities on Caribbean R&D campuses and educational institutions.

The Go Lean roadmap does not purport to be an authority on medical best-practices. The CU economic-security-governance empowerment plan should not direct the course of direction for obesity research and treatment. Neither should pharmaceutical salesmen. Their motive is strictly profit …

The CU motive, to impact the Greater Good, mandates monitoring progress in obesity research, the causes and effects. The hope is to minimize the affliction. This is the heavy-lifting the Caribbean region needs. This means life-or-death for some. All of the Caribbean is hereby urged to lean-in to this roadmap for Caribbean elevation.

Download the book Go Lean … Caribbean – now!

————–

* Appendix – Antibiotics Misuse – (http://en.wikipedia.org/wiki/Antibiotics)

“The first rule of antibiotics is try not to use them, and the second rule is try not to use too many of them.” – The ICU Book ^[70]

Inappropriate antibiotic treatment and overuse of antibiotics have contributed to the emergence of antibiotic-resistant bacteria. Self prescription of antibiotics is an example of misuse.^[71] Many antibiotics are frequently prescribed to treat symptoms or diseases that do not respond to antibiotics or that are likely to resolve without treatment. Also incorrect or suboptimal antibiotics are prescribed for certain bacterial infections.^[41][71] The overuse of antibiotics, like penicillin and erythromycin, have been associated with emerging antibiotic resistance since the 1950s.^[56][72] Widespread usage of antibiotics in hospitals has also been associated with increases in bacterial strains and species that no longer respond to treatment with the most common antibiotics.^[72]

Common forms of antibiotic misuse include excessive use of prophylactic antibiotics in travelers and failure of medical professionals to prescribe the correct dosage of antibiotics on the basis of the patient’s weight and history of prior use. Other forms of misuse include failure to take the entire prescribed course of the antibiotic, incorrect dosage and administration, or failure to rest for sufficient recovery. Inappropriate antibiotic treatment, for example, is their prescription to treat viral infections such as the common cold. One study on respiratory tract infections found “physicians were more likely to prescribe antibiotics to patients who appeared to expect them”.^[73] Multifactorial interventions aimed at both physicians and patients can reduce inappropriate prescription of antibiotics.^[74]

Referenced Sources:

41. Slama TG, Amin A, Brunton SA, et al. (July 2005). “A clinician’s guide to the appropriate and accurate use of antibiotics: the Council for Appropriate and Rational Antibiotic Therapy (CARAT) criteria”. Am. J. Med. 118 Suppl 7A (7): 1S–6S. doi:10.1016/j.amjmed.2005.05.007

56. Pearson, Carol (28 February 2007). “Antibiotic Resistance Fast-Growing Problem Worldwide”. Voice Of America. Archived from the original on 2 December 2008. Retrieved 29 December 2008.

70. Marino PL (2007). “Antimicrobial therapy”. The ICU book. Hagerstown, MD: Lippincott Williams & Wilkins. p. 817. ISBN 978-0-7817-4802-5.

71. Larson E (2007). “Community factors in the development of antibiotic resistance”. Annu Rev Public Health 28: 435–447. doi:10.1146/annurev.publhealth.28.021406.144020. PMID 17094768.

72. Hawkey PM (September 2008). “The growing burden of antimicrobial resistance”. J. Antimicrob. Chemother. 62 Suppl 1: i1–9. doi:10.1093/jac/dkn241. PMID 18684701.

73. Ong S, Nakase J, Moran GJ, Karras DJ, Kuehnert MJ, Talan DA (2007). “Antibiotic use for emergency department patients with upper respiratory infections: prescribing practices, patient expectations, and patient satisfaction”. Annals of Emergency Medicine 50 (3): 213–20. doi:10.1016/j.annemergmed.2007.03.026. PMID 17467120.

74. Metlay JP, Camargo CA, MacKenzie T, et al. (2007). “Cluster-randomized trial to improve antibiotic use for adults with acute respiratory infections treated in emergency departments”. Annals of Emergency Medicine 50 (3): 221–30. doi:10.1016/j.annemergmed.2007.03.022. PMID 17509729

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Crony-Capitalism, Health, Power, Security

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Role Model Jack Ma brings Alibaba to America

Posted on October 2, 2014 in Implementation, Industries

Go Lean Commentary

The Chinese company Alibaba Group is another model for the Caribbean Postal Union (CPU): our logistics solution for delivering the mail … and modern commerce – 21st Century trade – to the Caribbean region.

The US Postal Service (USPS) is not the model for the Caribbean. The book Go Lean…Caribbean describes the USPS as a failing enterprise (Page 99). Alibaba, on the other hand, just went public on the New York Stock Exchange (NYSE), raising $25 Billion in the first week.

Alibaba Group Holding Limited is a publicly traded Hangzhou-based group of Internet-based e-commerce businesses, including business-to-business online web portals, online retail and payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers. In 2012, two of Alibaba’s portals handled 1.1 trillion yuan ($170 Billion) in sales.^[13] The company primarily operates in the People’s Republic of China (PRC), and at closing time, on the date of its historic initial public offering (IPO), 19 September 2014, Alibaba’s market value was measured as US$231 Billion.^[14]. Analysts says that performance marketing will play a key role in meeting the financial markets’ expectations of such market valuation ^[15]

In September 2013, the company sought an IPO in the United States after a deal could not be reached with Hong Kong regulators.^[16] Planning occurred over 12 months before the company’s market debut in September 2014. The NYSE Alibaba ticker symbol is “BABA.N”, while the pricing of the IPO initially raised US$21.8 billion,^[17][14] which later increased to US$25 billion, making it the largest IPO in history.^[18] However, buyers weren’t purchasing actual shares in the group, since China forbids foreign ownership, but rather just shares in a Cayman Islands shell corporation.^[19]

Alibaba’s consumer-to-consumer portal Taobao Marketplace, similar to US-based eBay.com, features nearly a billion products and is one of the 20 most-visited websites globally. The Group’s websites accounted for over 60% of the parcels delivered in China by March 2013,^[13] and 80% of the nation’s online sales by September 2014.^[14] Alipay, an online payment escrow service, accounts for roughly half of all online payment transactions within China.^[20]

Alipay.com is a third-party online payment platform with no transaction fees.^[1] It was launched in China in 2004 by Alibaba Group and its founder Jack Ma. According to analyst research report, Alipay has the biggest market share in China with 300 million users and control of just under half of China’s online payment market in February 2014. According to Credit Suisse, the total value of online transactions in China grew from an insignificant size in 2008 to around RMB 4 trillion (US$660 billion) in 2012.^[2]

Alipay provides an escrow service, in which consumers can verify whether they are happy with goods they have bought before releasing money to the seller. This service was offered for what the company says are China’s weak consumer protection laws, which have reduced consumer confidence in C2C (Consumer-to-Consumer) and even B2C (Business-to-Consumer) quality control.

The company says Alipay operates with more than 65 financial institutions including Visa and MasterCard^[3] to provide payment services for Taobao and Tmall as well as more than 460,000 Chinese businesses. Internationally, more than 300 worldwide merchants use Alipay to sell directly to consumers in China. It currently supports transactions in 12 foreign currencies.

The payment methods are MasterCard, Visa, Boleto Bancário, Transferência Bancária, Maestro, WebMoney, and QIWI Кошелек as of May 2014.^[4]

The PBOC (People’s Bank of China), China’s central bank, issued licensing regulations in June 2010 for third-party payment providers. It also issued separate guidelines for foreign-funded payment institutions. Because of this, Alipay, which accounts for half of China’s non-bank online payment market, was restructured as a domestic company controlled by Alibaba CEO Jack Ma in order to facilitate the regulatory approval for the license.^[5] The 2010 transfer of Alipay’s ownership was controversial, with media reports in 2011 that Yahoo! and Softbank (Alibaba Group’s controlling shareholders) were not informed of the sale for nominal value. Chinese business publications Century Weekly criticised Ma, who stated that Alibaba Group’s board of directors was aware of the transaction.^[6] The incident was criticized in foreign and Chinese media as harming foreign trust in making Chinese investments.^[7] The ownership dispute was resolved by Alibaba Group, Yahoo!, and Softbank in July 2011.^[8]

In 2013 Alipay launched a financial product platform called Yu’ebao.^[9] As of June 2013 the company still had what it called “a minor paperwork problem” with the China Securities Regulatory Commission, but the company said that they planned to expand the product while these are sorted out.^[10]Wikipedia Online Encyclopedia – Retrieved October 2, 2014
http://en.wikipedia.org/wiki/Alipay

Source References:

Zhe, Sun (Jan 2012). “From Stall to Mall”. News China.

John Watling (14 February 2014). “China’s Internet Giants Lead in Online Finance”. The Financialist. Credit Suisse. Retrieved 15 February 2014.

“About Alipay”. Alipay. Retrieved 10 October 2013.

https://alipay.alibaba.com/checkout.htm (free registration required)

Wang, Shanshan (27 May 2011). “Alipay Awarded Third-Party Payment License”. Caixin Online.

“How Jack Ma’s Mistake Damaged China’s Market”. Caixin Online. 14 June 2011.

“Jack Ma Talks To China Entrepreneur Magazine About The Alipay Case (UPDATED)”. DigiCha. 6 July 2011. Retrieved 10 October 2013.

Rusli, Evelyn M. (29 July 2011). “Yahoo and Alibaba Resolve Dispute Over Alipay”. DealBook.

Chohan, Usman W. “Financial Innovation in China: Alibaba’s Leftover Treasure – 余额宝”. McGillUniversity. Retrieved 14 May 2014.

Hsu, Alex (27 June 2013). “Alipay’s Issue with CSRC Only a Paperwork Problem; Alipay Will Continue to Expand Yu E Bao”. BrightWire News.

Alibaba’s 2013 revenues amounted to USD 7.5 billion^[11] with 22,000 employees (March 2014).^[^12]This Alibaba model relates to the Caribbean in so many ways, including the fact that it is a Cayman Islands incorporated business entity.

If the CPU can duplicate some of Alibaba’s success, that would be a win-win. The focus of the CPU is not just postal mail, but rather logistics. Alibaba does so much more than just sell Chinese manufactured goods online, it facilitates a complete eco-system for Small-Medium-Enterprises (SME’s) to thrive: finding customers for their wares and collecting payments. (The end result is the generation of $170 billion in commerce). We need that functionality in the Caribbean. Alibaba is therefore a good model, not just for the CPU but the entire Caribbean Union Trade Federation (CU). The book Go Lean…Caribbean, serves as a roadmap for the introduction and implementation of the technocratic CU.

Alibaba was the brainchild of just one person, Jack Ma.

This VIDEO demonstrates an additional theme from the Go Lean book, that one person can make a difference in transforming society:

VIDEO: CBS News 60 Minutes – (Posted 09-28-2014) –
http://www.cbsnews.com/news/alibaba-chairman-jack-ma-brings-company-to-america/

(VIDEO plays best in Internet Explorer).

Jack Ma and Alibaba have greatly impacted Chinese society, elevating the economic engines. This result synchronizes with the Go Lean roadmap for elevating Caribbean society. The CU will employ technologically innovative products and services to impact its prime directives; identified with the following 3 statements:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance to support these engines.

The Go Lean roadmap seeks to change the entire eco-system of Caribbean commerce and the interaction with postal operations. This vision is defined early in the book (Page 12 & 14) in the following pronouncements in the Declaration of Interdependence:

xv. Whereas the business of the Federation and the commercial interest in the region cannot prosper without an efficient facilitation of postal services, the Caribbean Union must allow for the integration of the existing mail operations of the governments of the member-states into a consolidated Caribbean Postal Union, allowing for the adoption of best practices and technical advances to deliver foreign/domestic mail in the region.

xxvii. Whereas the region has endured a spectator status during the Industrial Revolution, we cannot stand on the sidelines of this new economy, the Information Revolution. Rather, the Federation must embrace all the tenets of Internet Communications Technology (ICT) to serve as an equalizing element in competition with the rest of the world. The Federation must bridge the digital divide and promote the community ethos that research/development is valuable and must be promoted and incentivized for adoption.

Email and text messages have replaced “snail” mail in advanced economy countries for personal written communications. Electronic Bill Presentation & Payments (EBP&P) schemes are transforming business-to-consumer interactions, and electronic funds transfer/electronic commerce is the norm for payments. So ICT must be a prominent feature of any Caribbean empowerment plan. This is why creating the CPU and the Caribbean Cloud is “Step One, Day One” in the Go Lean roadmap. This is the by-product of assembling regional organs into a single entity with multilateral cooperation and a separation-of-powers (Page 71). The roadmap also includes establishment of the Caribbean Central Bank (CCB), as a cooperative among existing Central Banks, and its facilitation of electronic payments schemes so as to enable the region’s foray into electronic commerce and trade marketplaces, as depicted with the Alibaba/Alipay model in the foregoing article and VIDEO.

The Go Lean book details a series of community ethos, strategies, tactics, implementations and advocacies to foster the best practices for the delivery of the CPU and trade marketplaces in the Caribbean region:

Community Ethos – Deferred Gratification	Page 21
Community Ethos – Economic Principles – All Choices Involve Costs	Page 21
Community Ethos – Economic Principles – People Respond to Incentives	Page 21
Community Ethos – Economic Principles – Economic Systems Influence Choices	Page 21
Community Ethos – Economic Principles – Voluntary Trade Creates Wealth	Page 21
Community Ethos – Economic Principles – The Consequence of Choice Lie in Future	Page 21
Community Ethos – Job Multiplier	Page 22
Community Ethos – Lean Operations	Page 24
Community Ethos – Cooperatives	Page 25
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Help Entrepreneurship	Page 28
Community Ethos – Promote Intellectual Property	Page 29
Community Ethos – Ways to Bridge the Digital Divide	Page 31
Strategy – Agents of Change – Technology	Page 57
Strategy – Agents of Change – Globalization	Page 57
Tactical – Fostering a Technocracy	Page 64
Tactical – How to Grow the Economy to $800 Billion – ‘East Asian Tigers’ Model	Page 67
Tactical – Separation of Powers – Postal Services	Page 78
Tactical – Separation of Powers – Interstate Commerce Administration	Page 79
Implementation – Year 1 / Assemble Phase – Establish CPU	Page 96
Implementation – Anecdote – Mail Services – US Dilemma	Page 99
Implementation – Ways to Pay for Change – Group Purchasing Organizations (GPO)	Page 101
Implementation – Ways to Optimize Mail Service & myCaribbean.gov Marketplace	Page 108
Implementation – Ways to Deliver	Page 109
Implementation – Ways to Impact Social Media	Page 111
Implementation – Ways to Benefit from Globalization	Page 119
Planning – Ways to Improve Trade – GPO’s	Page 128
Planning – Ways to Improve Interstate Commerce	Page 129
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Create Jobs	Page 152
Advocacy – Ways to Mitigate Black Markets	Page 165
Advocacy – Ways to Foster Cooperatives	Page 176
Anecdote – Caribbean Industrialist – Role Model Butch Stewart	Page 189
Advocacy – Ways to Foster Technology – Incubators Strategy	Page 197
Advocacy – Ways to Foster e-Commerce	Page 198
Advocacy – Reforms for Banking Regulations	Page 199
Advocacy – Ways to Impact Wall Street	Page 200
Advocacy – Ways to Impact Main Street	Page 201

According to the foregoing article, trade business models can be very successful as a strategy to grow the regional economy. Increased trade will undoubtedly mean increased job opportunities. The CU/CPU/CCB/Go Lean plan is to foster and incubate key industries for this goal, incorporating many of the best practices as related in the foregoing article and VIDEO; imagine a Caribbean-based marketplace – www.myCaribbean.gov – with 150 million subscribers (Page 74). Alibaba is now worth over US$231 Billion, though it is a recent start-up. This is a role model for the CU/CPU/CCB/Go Lean roadmap to follow, a methodical start-up with technocratic efficiency.

Now is the time for all of the Caribbean, the people and governing institutions (like Postal Operations), to lean-in for the changes in the book Go Lean … Caribbean. This is a Big Idea for the region, that of a Cyber Caribbean effort (Page 127), in which trade marketplaces play a major role. This roadmap is not just a plan for delivering the mail; it is also the delivery of the hopes and dreams of generations of Caribbean stakeholders; it is about delivering the future: a better place to live, work and play. 🙂

Download the book Go Lean … Caribbean – now!

———————————

Appendix – Commentary References:

11. “Ali Group’s revenue in 2011 amounted to $ 2.8 billion over 40% profit margin”. Sohu.com – Chinese Internet Search Engine . Retrieved 2012-06-07 from: http://it.sohu.com/20120607/n344991768.shtml.

12. “Alibaba group FAQs”. Retrieved 2012-06-07 from: http://www.alibabagroup.com/en/about/faqs.

13. “E-commerce in China: The Alibaba phenomenon”. The Economist. Retrieved 23 March 2013 from: http://www.economist.com/news/leaders/21573981-chinas-e-commerce-giant-could-generate-enormous-wealthprovided-countrys-rulers-leave-it.

14. Lianna B. Baker, Jessica Toonkel, Ryan Vlastelica (19 September 2014). “Alibaba surges 38 percent on massive demand in market debut“. Reuters. Retrieved 20 September 2014 from: .

15. “How Alibaba can double sales“. Retrieved 30 September 2014.

16. “U.S. to get coveted Alibaba IPO after Hong Kong talks founder“. Reuters. 25 September 2013. Retrieved 26 September 2013 from: .

17. “IPO launch of Alibaba pushed back by a week“. China National News. 1 September 2014. Retrieved 1 September 2014.

18. Picker, Leslie; Chen, Lulu Yilun (22 September 2014). “Alibaba’s Banks Boost IPO Size to Record of $25 Billion“. Bloomberg. Retrieved 23 September 2014.

19. Solomon, Steven Davidoff (May 6, 2014). “Alibaba Investors Will Buy a Risky Corporate Structure“. New York Times (Dealbook blog).

20. “Alibaba: The world’s greatest bazaar“. The Economist. Retrieved 23 March 2013.

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A Lesson in History – Community Ethos of WW II

Posted on October 1, 2014 in Ethos, Social

Go Lean Commentary

The publishers of the book Go Lean…Caribbean want to forge change in the Caribbean. Is it possible to change the attitudes of an entire community, country or region? Has that ever been done before for an entire community? When?

Yes, and yes. 1942…

The book relates a great case study, that of the history of the United States during World War II, where the entire country postponed immediate gratification, endured hard sacrifices, and became convinced that their future (after the war) would be better than their past (before the war).

The foregoing article is a scholarly work on that subject, the events of 1942, and the subsequent years of World War II.

Title: The Auto Industry Goes to War

Did the U.S. manufacture of automobiles come to a halt during World War II?

Yes, it halted completely. No cars, commercial trucks, or auto parts were made from February 1942 to October 1945.

On January 1, 1942, all sales of cars, as well as the delivery of cars to customers who had previously contracted for them, were frozen by the government’s Office of Production Management. As a temporary measure, local rationing boards could issue permits allowing persons who had contracted for cars before January 1st to secure delivery.

President Roosevelt established the War Production Board on January 16, 1942. It superseded the Office of Production Management. The WPB regulated the industrial production and allocation of war materiel and fuel. That included coordinating heavy manufacturing, and the rationing of vital materials, such as metals, rubber, and oil. It also established wage and price controls.

All manufacturers ended their production of automobiles on February 22, 1942. The January 1942 production quota had been a little over 100,000 automobiles and light trucks. The units manufactured at the beginning of February would bring up the total number of vehicles in a newly established car stockpile to 520,000. These would be available during the duration of the war for rationed sales by auto dealers to purchasers deemed “essential drivers.”

Representatives from the auto industry formed the Automotive Council for War Production in April 1942, to facilitate the sharing of resources, expertise, and manpower in defense production contracting.

The auto industry retooled to manufacture tanks, trucks, jeeps, airplanes, bombs, torpedoes, steel helmets, and ammunition under massive contracts issued by the government. Beginning immediately after the production of automobiles ceased, entire factories were upended almost overnight. Huge manufacturing machines were jack hammered out of their foundations and new ones brought in to replace them. Conveyors were stripped away and rebuilt, electrical wires were bundled together and stored in the vast factory ceilings, half-finished parts were sent to steel mills to be re-melted, and even many of the dies that had been used in the fabrication of auto parts were sent to salvage.

The government’s Office of Price Administration imposed rationing of gasoline and tires and set a national speed limit of 35 mph.

By April 1944, only 30,000 new cars out of the initial stockpile were left. Almost all were 1942 models and customers required a permit to make the purchase. The Office of Price Administration set the price. The government contemplated rationing used car sales as well, but that was finally deemed unnecessary. The government estimated that about a million cars had been taken off the road by their owners, to reserve for their own use after the war.

In the autumn of 1944, looking then toward the end of the war, Ford, Chrysler, Nash, and Fisher Body of General Motors received authorization from the War Production Board to do preliminary work on experimental models of civilian passenger cars, on condition that it not interfere with war work and that employees so used be limited to planning engineers and technicians. Limits were also set on the amount of labor and materials the companies could divert to this.

During the war, the automobile and oil companies continued to advertise heavily to insure that the public did not forget their brand names. Companies also were proud to proclaim their patriotic role in war production, and their advertisements displayed the trucks, aircraft, and munitions that they were making to do their part in combat.

In addition, auto advertisements encouraged the public to patronize local auto dealers’ service departments so that car repairs could help extend the lives of the cars their customers had bought before the war. In the last couple of years of the war, the auto companies also used their advertisements to heighten public anticipation of the end of the war and the resumption of car and truck manufacturing, with advertising copy such as Ford’s “There’s a Ford in Your Future.”

About the Author

Historian John Buescher is an author and professor who formerly headed Tibetan language broadcasts at Voice of America. His Ph.D. is from the University of Virginia and he has published extensively on the history of Tibetan and Indian Buddhism and on the history of 19th-century American spiritualism.

Bibliography
a. John Alfred Heitmann, The Automobile and American Life. Jefferson, NC: McFarland, 2009. pp. 119-130.
b. James J. Flink, The Automobile Age. Cambridge: MIT Press, 1988. pp. 275-76.
c. Automobile Manufacturers Association, Freedom’s Arsenal: The Story of the Automotive Council for War Production. Detroit: Automobile Manufacturers Association, 1950.
Teaching History.org – National History Education Clearinghouse (Retrieved 09/29/2014) –
http://www.teachinghistory.org/history-content/ask-a-historian/24088

This relates a commitment so vital to a community that everyone was willing to sacrifice and lean-in for the desired outcome. This requires effective messaging.

The book Go Lean…Caribbean serves as a roadmap for the introduction and implementation of the Caribbean Union Trade Federation (CU); an initiative to bring change, empowerment, to the Caribbean region; to make the region a better place to live, work and play. This Go Lean roadmap also has initiatives to foster a domestic (region-wide) automotive industry. So there are a lot of benefits to glean by studying the American track record, even the periods of halted production. The Go Lean book posits that permanent change for Caribbean society will only take root as a result of adjustments to the community attitudes, the national spirit that drives the character and identity of its people. This is identified in the book as “community ethos”.

The purpose of the book/roadmap though is not just the ethos changes, but rather the elevation/empowerment of Caribbean society. In total, the Caribbean empowerment roadmap has these 3 prime directives:

Optimization of the economic engines in order to grow the regional economy to $800 Billion & create 2.2 million new jobs.
Establishment of a security apparatus to protect the resultant economic engines.
Improve Caribbean governance and industrial policies to support these engines.

The roadmap details the following community ethos, plus the execution of these strategies, tactics, implementation and advocacies to forge the identified permanent change in the region:

Community Ethos – Deferred Gratification	Page 21
Community Ethos – Economic Principles – People Choose	Page 21
Community Ethos – Economic Principles – People Respond to Incentives in Predictable Ways	Page 21
Community Ethos – Economic Principles – The Consequences of Choices Lie in the Future	Page 21
Community Ethos – Governing Principles – Lean Operations	Page 24
Community Ethos – Governing Principles – Cooperatives	Page 25
Community Ethos – Ways to Impact the Future	Page 26
Community Ethos – Ways to Help Entrepreneurship	Page 28
Community Ethos – Ways to Impact Research & Development	Page 30
Community Ethos – Ways to Impact Turn-Arounds	Page 33
Community Ethos – Ways to Improve Sharing	Page 35
Community Ethos – Ways to Promote Happiness	Page 36
Community Ethos – Ways to Impact the Greater Good	Page 37
Strategy – Vision – Confederate 30 Member-States	Page 45
Strategy – Mission – Foster New Industries	Page 46
Tactical – Confederating a Permanent Union	Page 63
Tactical – Fostering a Technocracy	Page 64
Implementation – Ways to Pay for Change	Page 101
Implementation – Ways to Deliver	Page 109
Planning – 10 Big Ideas for the Caribbean	Page 127
Planning – Ways to Make the Caribbean Better	Page 131
Planning – Reasons Why the CU Will Succeed	Page 132
Planning – Lessons Learned from 2008	Page 136
Advocacy – Ways to Grow the Economy	Page 151
Advocacy – Ways to Create Jobs	Page 152
Advocacy – Ways to Improve Communications	Page 186
Advocacy – Ways to Develop Auto Industry	Page 206
Advocacy – Ways to Preserve Caribbean Heritage	Page 218

Previously Go Lean blog/commentaries have considered historic references and stressed fostering the proper and appropriate community ethos for the Caribbean to prosper. The following sample applies:

https://goleancaribbean.com/blog/?p=2297	A Lesson in History – Booker T versus Du Bois – to Change a Bad Community Ethos
https://goleancaribbean.com/blog/?p=2201	Changing Bad Community Ethos – Students Developing Nail Polish to Detect Date Rape Drugs
https://goleancaribbean.com/blog/?p=1918	Philadelphia Freedom – Some Restrictions Apply – One Community’s Constant Quest to Change
https://goleancaribbean.com/blog/?p=1531	A Lesson in History: 100 Years Ago Today – World War I – Cause and Effect in Community Ethos
https://goleancaribbean.com/blog/?p=841	Having Less Babies is Bad for the Economy?
https://goleancaribbean.com/blog/?p=623	Only at the Precipice, Do Communities Change
https://goleancaribbean.com/blog/?p=353	Book Review: ‘Wrong – Nine Economic Policy Disasters and What We Can Learn…’
https://goleancaribbean.com/blog/?p=228	Egalitarianism versus Anarchism – Community Ethos Debate

All in all, there is a certain community ethos associated with populations that have endured crises. It is a focus on the future, a deferred gratification as investment for future returns. These attributes have been promoted by the Go Lean book as necessary traits to forge change in the Caribbean region. We need our own Caribbean flavor of this community ethos, in our manifestation of industrial policy.

The world was at the precipice, near implosion, in 1942 (World War II) … (and again in 2008 during the Great Recession). In order to endure the crises, many people had to endure sacrifice; but the entire community had to adopt the community ethos of deferred gratification. The industrial policy adjusted accordingly, with little objection from the public in general. A lot of good came from these sacrifices.

There are lessons for the Caribbean today to consider from the development of industrial policy in US history during World War II:

• Priorities can change in times of crisis. A crisis is a terrible thing to waste.

• Having a domestic manufacturing industry gives control of domestic production capability.

• Efficiency and effectiveness in one industry can be transferred to other industries; it is disciplined competence that is the real asset.

• Lowest cost is not the only criteria for providing out-sourced contracts.

• Limited raw materials are valuable, even as recycled materials.

• Effective Command-and-Control accentuates front-line effectiveness – Lean operational principles.

• Interdependence with partners can avoid crisis in the first place, and mitigate the damage from realized threats.

Now the Caribbean is in crisis, still reeling from 2008; we must endure, we must sacrifice and we must defer gratification. Now is the time to lean-in to this roadmap for Caribbean change, as depicted in the book Go Lean…Caribbean. We cannot afford to standby and watch our world implode. This was the case in 1942 and again in 2008. We must have a hand in our own destiny; an integrated (Single) market of 42 million people is large enough to be consequential in world negotiations.

We urge all Caribbean stakeholders (residents, Diaspora, governmental leaders, visitors, investors, etc.) to lean-in to this roadmap for change. 🙂

Download the book Go Lean … Caribbean – now!

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