That’s the wonder of …

April 13th, 2013 Sections: News, Weekly_Postcards

Woolworth's Store in Providence, Rhode Island

The kids have their regular routines.  Whilst Maxim goes off on his BMX bike to one of the open spaces to practice his tricks and jumps with his friends, Andrei wanders off to the local coffee shop where sits and watches as the world goes by.  Now that the new Bishkek Park shopping center has opened just over the road, he taken to visiting the coffee shop there.

When I was growing up one of the regular weekly routines, assuming there was no Rugby match, was to wander onto the center of town on Saturday and do, what the locals here call progulat … simply meet up with friends and pass time wandering around.  We’d go to the coffee shop, the record shop, (yes, in those days records were on black vinyl discs), perhaps around a park … and a visit to Woolworth’s.

Woolworth’s was, as one commentator put it,  ”the heart of every high street”.

The chain of shops was founded by Frank Winfield Woolworth who was born on 13th April, 1852.   Having worked in general store he noted that the items on the “5 cents” table sold well and this gave him the idea for his “5 cents store”.  The first store failed, but by 1911 when the company was finally incorporated the chain had almost 600 stores across the US; a chain of discount stores which priced goods at 5 and 10 cents, (in Britain it was originally threepence and sixpence).  The shops had individual counters with different types of goods and were the first to use self-service display cases so customers could examine what they wanted to buy without the help of a salesman.

The concept was widely copied, and five-and-ten-cent stores (also known as five-and-dime stores or dimestores) became a 20th century fixture in American towns and cities.  The company was so successful that in 1913 F.W. Woolworth built the Woolworth building in New York, what was then the tallest building in the world at a cost of  USD13.5 million.

The first store in the UK opened in Liverpool in 1909 and by the end of World War I they were well established across the country and were soon known as “Woolies”.  During the Second World War, many of the shops were closed down and boarded up but by the 1960′s they had become a formidable High Street presence with shops opening in many, most, of the new High Street shopping centers and an advertising campaign espoused the “Wonder of Woolies …“.

There was an attempt to redefine the concept with the establishment of special smaller stores called Woolco, and later Winfield, but by the 1980′s sales had begun to drop off in the face of competition, but toys and confectionery remained the mainstay of the business – especially the trademark “Pick’n'mix”.  The economic downturn in 2008 led to the downfall of the company in the UK, and it entered administration and launched huge discounts and brought about the company’s biggest trading day as customers cleared the shops of all their stock.  Deloittes were unable to find a buyer and shops started to close down.

Things weren’t going so well in the States, either and in 1991 Wall-Mart replaced Woolworth’s in the Dow Jones Industrial Average … and the company closed it last department stores in 1997, although retaining a presence in the retail market – it now concentrates on athletic clothing and footwear and trades under the name Foot Locker.

Here in Bishkek we may not have had a branch of Woolies, but we do have a number of such discount stores and they are quite popular, which is not really surprising.   With something like 33% of the population living below the poverty line, prices are important.  The government hopes that within five years the average salary will stand at about 10000 som a month, (about USD210), whereas, here in Bishkek – where they are higher than elsewhere in the country, with the exception, that is, of places like the Kumtor mine – they currently stand at about 7000 (about USD150).  What that will do to inflation is anyone’s guess.

As everywhere in the world, there’s always a lot of talk about prices and how they keep going up but rarely ever seem to come down.  As it happens, according to official figures, there were some reductions in February and March saw a zero percent increase in the rate, so that in the first three months of the year it stood at just 1.1%.  I wonder what Margaret Thatcher would have thought of that.

I have often seen people in the supermarkets doing their sums and putting things back onto the shelves when they realize that they don’t have enough money to buy all that they want.  As it happens, although the supermarkets are convenient and tend to have better quality produce, they are not always the cheapest place to buy things and many people still use the markets where better prices are available.

It doesn’t help that even the Minister of the Economy is now talking openly about the threat of higher food prices when we enter the Customs Union (which now looks like a foregone conclusion) with Russia, Kazakhstan and Belarus.  Apparently, many of the Kazakhs are not happy about their experience since the union treaty came into effect and it appears that several of the people who once supported it are now having second thoughts.  I have even seen articles suggesting that it would be easy for them to pull out being linked to on social media like Facebook by people who are less than enthusiastic about the prospects of our signing up to join.

Many tourists think that Kyrgyzstan is a cheap destination.  That’s not quite true … whereas some things are cheaper, especially where produced domestically, (like vodka!, even though production is supposed to have fallen by a third compared to that of 1980),  imported goods – and especially brand names -tend to cost more or less the same as elsewhere in the world, if not more because of the transportation costs.

We import a lot more than we export, even with the fact that we serve as a transit country for goods from China, providing a conduit to Kazakhstan, Russia and beyond.  To be fair, the official figures almost certainly underestimate the volume of exports as not all them go through the official books.

In 2012, for example, we imported almost 224 million dollars worth of just petroleum fuel of one sort or another – a rise of something like 30%, although that’s below the peak which we saw in 2008.

All those imports, however, have to be paid for and it seems that the country has a total external debt of something like 2.7 billion dollars – a rise of something like 250 million dollars over the last year.  The odd thing is that, apparently, that debt could be cleared by the top 100 richest people in the country.  I wonder what Margaret Thatcher would have of that.

While I am going on about statistics and economic performance, it’s worth noting that, again – according to official statistics, that GDP rose by something like 7.6% in the period January-March which is quite impressive when compared to last year’s contraction of something like 11% over the same period.  The most interesting thing in the report, however, was that it was claimed that this rate of economic growth actually represented a slowing down in the first quarter of the year.

 

I am not sure whether the apparent strengthening of the dollar – it’s now worth about 0.75% more in soms than a year ago.  That doesn’t sound like much … but it means we need to generate an awful lot more som to pay off that immense pile of debt.

 

The economy, of course, is dominated by the Kumtor Gold Mine which represents something like 12% of the economy.  Kumtor is still under threat of legal action following the inspections and parliamentary decisions to revise the 2009 agreement.  Several ministers have stated, several times, that nationalization is not an option, and the Vice Prime Minister in charge of economic matters has said that Kyrgyzstan doesn’t have the resources to buy out the project from the Canadian company … but he has also said that the 2009 agreement was signed “with the use of corrupted practices”.  ”It is obvious the agreement of 2009 is one-sided, since all privileges are granted to one side – Centerra Gold Inc.  ”Even international lawyers who we invited to analyse the situation are puzzled over how it was possible to sign such a one-sided agreement”", he said.  Obviously I am not au fait with all the details, but that doesn’t sound very good.  I wonder what Margaret Thatcher would have thought of the situation.

The one positive sign, perhaps, is that everyone seems to agree that the uninterrupted work of the mine has to be ensured.

There are other deposits of gold and other materials around the country, and despite the problems that the Canadians have encountered, there still seems to be interest in developing them.  During the visit of the Turkish President and Prime Minister this week, it was announced that Turkey is interested in exploring the development of the Gold industry here … and also in helping to turn the Manas Transit Center into a civilian hub … in Hydroelectric projects … and in the possibility of building a railway from Kyrgyzstan to Turkey.  This is also in spite of the losses incurred by Turkish investors as a result of our two revolutions.

One of the reasons they might be interested is, apparently, the possibility that given Kyrgyzstan’s accession to the Customs Union, they might get get greater access to the markets of Russia and Kazakhstan.

The President’s visit threw the center of Bishkek into chaos.  Roads were closed and traffic diverted to make it possible for him and other officials to travel between meetings.  As it happens, the new shopping center over the road from my office is a Turkish investment, and the President came top have a look … all the windows and every available space were strewn with pictures of the President, Turkish flags and the like.  The street was crowded and I was glad to be able to get away for the afternoon.

I had to go and give a talk to students at one of the Universities when a police car swung around and blocked the road … I had no choice but to get out and make my way on foot, passing young, immaculately dressed unarmed soldiers lining the pavements every twenty meters or so.  I wasn’t the only one to be affected by the mayhem … half the class were also caught up in the chaos and were late to the lecture room – if the were able to make it.  The next day a speaker at a presentation was also half an hour late as she got caught in a traffic jam waiting for the motorcade to pass by.

 

Another company that is apparently in trouble is Kyrgyz Telecom.  For several weeks now, there have been whisperings that the company may be facing bankruptcy … and it has been something that they have felt they needed to officially deny with press statements.  There turnover is more than enough to meet their expenses, they say, but it seems that they have some credits which they need to repay which some analysts say they will have difficulty in doing – leading to the possibility that the Chinese financiers behind the loans may soon take over.  Remembering how the conservatives under Margaret Thatcher privatized British Telecom, I wonder what she would have made of this.

 

The other main item of news, (here, that is, in Kyrgyzstan – yes. we did hear about Margaret Thatcher – she certainly has her fair share of fans out here …. and North Korea – and, yes, the possible use of the Manas Transit Center in any hostilities has been an issue), was the commemorations of the 2010 revolution when over 80 people were killed.  Various trials associated with those events are still taking place but the main things were the official ceremony at Ata Beyit, (which is the closest we have to a National Cemetery), and the Namas (prayers) held in the main square.

The day before we had been told that whole of the city center would be without electricity so that some repairs could be conducted.  As a result, I got up early and came down to the office to check the email and so on … and thought how much I would welcome being able to take the rest of the day off.  As the appointed time approached, I started looking for small jobs that I could do which wouldn’t matter if they were interrupted … first one and then another … I didn’t want to start anything big that would be a problem if the power went off in the middle of what I was doing.  Before I knew it, the day was over and we still had electricity.  It’s true that I got a lot of small jobs done, (and I saw a number of films!), but I felt “cheated” out of my relaxing day off.

As it happens, the power has been going off – but in the middle of the night, so I haven’t really noticed it – except for the fact that the computer backups have been interrupted half way through.

 

There was a “mock shock-horror” moment when it was announced that something like 90% of all the audio, video and software in the country is pirated … the thing that surprised me was that the figure was so low … only about 90%.  You just have to look at most of the packaging to realize that it’s not genuine … and even where the packaging is pretty impressive, you can’t be sure.  It doesn’t happen so much, but when I first came even the films broadcast on the television channels would often display the FBI warning against criminal proceedings being instigated for copyright theft and even messages saying “For Review Purposes Only” or “If you have purchased or rented this please call …” … or, even worse, was filmed by someone sitting in a cinema with shadows of people wandering in and out from time to time.  Well, filmmakers, officials and parliamentarians are discussing measures against copyright infringement with better laws and stiffer penalties.

The situation seems to have come to a head when a new Kyrgyz film, “Salaam New York” appeared in the shops before it was even running in the theaters.   Under the current law, only the copyright holder can instigate action and the penalties are miserly – a fine of 1000 som, or just over twenty dollars.  A disc containing six or eight films (albeit in poor quality) sells for less than 100 som whereas a legal, licensed disc, (albeit with good quality reproduction), usually contains just one film and typically costs between 400 and 600 som.  A Cinema ticket may cost between 200 and 375 som.

There has also been some attention paid to the content of performances … following the controversy over the recent banning of “I am Gay and Muslim”, the Ministry of Culture has written to organisers recommending that a charity performance in aid of a women’s shelter here in Bishkek of a feminist play, “The Vagina Dialogues”, be cancelled claiming that it “promotes scenes that destroy moral and ethical standards and national traditions of the peoples of Kyrgyzstan”, that it advocates “unnatural, perverted sex under the slogan of feminism.”

For the record: The play is based on episodes where women address how they relate to their bodies, discuss their sexual experiences, and confront the topic of sexual violence.  It’s already been performed in 140 countries and even twice here in Bishkek and translated into 48 languages.

It seems that the proposed ban is being considered even though officials at the Ministry haven’t seen the play and can’t say which episodes are offensive or promote pornography.  Even odder, the Ministry admit that they have no legal recourse to prohibit performances.

I am tempted to wonder what Margaret Thatcher would have made of the dispute, and on whose side she might stand … but I think I know the answer to that one.

 

Perhaps one of the saddest news items of the week was about an explosion in the Western part of town in which two men, two brothers, were killed.  The first calls to the emergency services reported a gas explosion, but it soon turned out to be the result of unexploded ordinance going off.  That led to reports that the two men were trying to extract the gunpowder from the shell, raising the spectre of a possible terrorist cell at work … which was further emphasized when it emerged that there were two more unexploded shells at the site, (and a more worrying story about explosives, came when it emerged that officers discovered a stash of explosives under a bridge … ).  On the other hand, there were other reports that the men were trading in scrap and trying to break up the armament in order to sell the scrap metal.  Later, however, it emerged that one of the deceased was a well known young and talented artist who made sculptures from scrap materials – including, to be fair, ordinance.  It seems that they were trying to weld two pieces of metal together when a spark caused the explosion.

 

 

I’ve exceeded my planned word limit already and it might have been interesting to survey:

  • the story about the Chinese man arrested for smuggling – this time trying to smuggle three nuggets of gold out of the country, (the news report referred to “bars” of gold); or
  • the crime figures for January and February which show that the majority of crimes registered were in Bishkek, (over 40% for the country as a whole at 1830), Naryn accounted for only 2%, (at 86 out of the total 4295 incidents), or
  • the proposal that traffic police be paid 25% of the money they raise in fines for traffic offences – as a “bonus” and an “incentive” in order to try and combat corruption.  It seems that in the first two months of the year, the amount raised in fines increased by 8 million som compared to last year and the authorities want this to increase to sixteen million.  (I know that I am naive, but I would have thought it a better target for them to have no infringements of the traffic rules … and hence no fines at all), or
  • that this year has been declared “the Year of Tourism” by the countries of the CIS (Commonwealth of Independent States – formed by most of the republics of the former Soviet Union), or
  • the controversy over the release from jail, on medical grounds, of the “crime boss” Aziz Batukayev and his subsequent departure from the country, or
  • the financial crisis that seems to have hit the Opera and Ballet theater, or
  • the news that the US is cutting back on its aid budget, (presumably in the face of the Fiscal Cliff), reducing its aid budget to all the countries in the region – except that is to Kyrgyzstan which will in fact see an increase in funding, or
  • how members of the Anti-corruption Service are apparently demanding bribes from traders at the biggest market – so … “who watches the watchmen?”, or

  • Breakthrough by the Eldar Djangirov Trio

    the release of Breakthrough, the latest album from the Eldar Djangirov Trio … Eldar, a twenty six year Jazz pianist born in Bishkek.  His family moved to Kansas City Missouri, (yes, Missouri, not Kansas), in 1997. Here’s a link to a video clip from the album and, if you like it, it’s available at both iTunes and Amazon … and if you are not into Jazz then note that he is quite versatile and does not just play Jazz … so you might want to keep an eye open for the release next month of his first solo classical CD, ”Bach/Brahms/Prokofiev” which will feature J.S. Bach’s Partita No. 2 in C minor; Johannes Brahms’ “Eight Piano Pieces,” Op. 76; and Sergei Prokofiev’s Sonata No. 7 in B-flat Major.  It’s a pity he’s not coming to next week’s jazz festival here in Bishkek … maybe next time, and

     

 

However, the most wonderful news of the week comes from Sport …in  Ballroom Dancing, (yes, it’s considered a sport here!), and Football.

Kyrgyz dancers have scored yet another top place in the world of International Ballroom Dancing Competition – following earlier successes when they managed to take first place.  This time, however, the top spot eluded them and they had to settle for second place in the Rising Stars category at the International Sport Dance Competition in Moscow – but, even so, that was impressive … and, being “Rising Stars”, hints at promise of potential future glory.

But the title of “wonder of the week” has to go to the National football team – (Soccer, that is, for the Americans among you).  Following the team’s performances in then qualifying tournament for next years AFC Challenge Cup, when they beat teams from Pakistan, Tajikistan and Macau, (all of which were rated higher than them in FIFA’s official world rankings), they rose 59 positions from 201st place, (out of 209 countries – their “all time lowest ranking”), to 142nd, (their highest placing since 2009 when they achieved 137th place) – earning the title “Team of the Month” and, although still 40 places behind Tajikistan in the table, overtook Pakistan, Macau and even Kazakhstan, (who dropped 5 places to 144th place).

I doubt if Margaret Thatcher cared that much about football … but that’s all part of “the wonder of … Kyrgyzstan”.

 

 

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Postcard from Bishkek: the weekly postcard that I send out as an email also gets posted on the website ianbek.kg each week – and there are other postcards which don’t get sent out.  This week, for example, there has been the following postcards:

It is possible to follow me on Facebook, (where I have specific pages for Celestial Mountains and ianbek … and also links.kg, Kyrgyz Diary and Kyrgyzstan Visitki), and also on twitter, (@Bishkekpostcard and @celestialMTC ).

 

 

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