Today thousands of cyclists around the country hit the streets for Bike to Work Day in the United States. In a country dominated by the car, bike transit - as opposed to recreational cycling - is still somewhat of a novelty. Even in large, densely populated cities, you’re more likely to find shared cars than shared bikes. And despite the fact that a car costs 40 times more than a bike, daily fees for renting bikes often exceed those for renting a car. (See WashCycle for a good missive on this.)

But several major cities in Europe have embraced the idea of shared bikes. Shared bikes are low-cost rental bikes parked at stations across the city, optimized for one way trips. For-profit companies like Cyclocity or SmartBike work in conjunction with city planners to help link transportation nodes that are too close for a bus or car, but too far to walk. And unlike shared cars which must be returned to the same parking space, bikes can be returned to any station in the system.

Members provide a refundable deposit (~$200) and pay a nominal annual fee (~$15).  Whenever they need a bike, they simply swipe a card to release an available bike. Rides under 30 minutes are usually free, with increasing fares after that. Most bikes have internal gears and solid tires minimizing muss and fuss - ideal for commuters.

Paris announced this week that it is introducing 20,600 shared bikes at more than 1,400 stations across the city by July 15. The idea has been popular in other European cities, from Lyon to Munich, but with nearly one shared bike for every thousand Parisians, the Bastille Day rollout is nothing less than… revolutionary (see statastic below).

Several US cities including San Francisco, Portland, and Chicago are studying the idea of shared bikes, but it looks like Washington DC will be the first American guinea pig. Early indications are that the DC plan will initially be modest. Like shared cars, shared bike systems greatly benefit from network effects. But now that the planet is heating up, this is no time to be modest. The more shared bikes, the more locations near potential riders, and the users more likely to give it a try, the more profitable, etc.

So can DC match the French passion for shared bike? Not just yet. In order to have the same density of shared bikes in DC as in Paris, Washington would need 5,700 bikes or about 80 Smart Bikes per square mile. And if shared bikes help gets tourists off of those goofy Segways, all the better.

Previously, I hypothesized that widespread adoption of the shared cars would decrease demand for streetside parking (especially with this concept), allowing for more, safer bike lanes. Shared bikes and shared cars could easily work in harmony with one another - there are certainly times when you need a car. But it is time for local leaders to shun the one-car, one-driver paradigm and shared bikes are a great way to start.

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Over the past several weeks, PBS Frontline has had a tremendous four-part series called “News Wars” about the current state of journalism in the United States. If you have no idea when Frontline airs, haven’t watched PBS since the days of Sesame Street, or don’t have a Tivo trying to make you smarter, do yourself a favor and watch the series online. And even if you don’t watch, visit their slick web site - they’re only getting 80,000 visitors a day (as opposed to the Daily Kos at half a million).

PBS among many others has been lamenting the decline in foreign correspondents at national and local newspapers. While on a fellowship at Harvard last fall, Christian Science Monitor journalist Jill Carroll studied the state of foreign journalism. She found that the number of foreign newspaper correspondents had decreased by more than a quarter between 2002 and 2006. Many of the familiar reasons are to blame such as the proliferation of blogs or the uptick in foreign news sources like Al Jazeera that can be called upon. But it also reflects ruthless, short-sighted cost cutting. As Frontline noted, whether your consider bloggers journalists or not 80% of the blogs aren’t producing original research. We depend as much on the newspapers as anyone.

So which cities are best served by their newspaper’s foreign desks? Using the data in Carroll’s working paper (no longer online, I’m afraid), I calculated the number of foreign correspondents per million residents of the metro areas served by the newspaper or newspapers. Although I did include the Washington Post and NY Times, this measure does not count newspapers such as USA Today or Wall Street Journal which have a national or international audience.

Big cities do well, but big cities do not necessarily devote more resources per capita to foreign desks. Although Philadelphia has the fourth most populous metro area, the Philadelphia Enquirer halved the number of foreign correspondents from 4 to 2 between 2000 and 2006. Dallas reduced its staff from 7 to 3 and Houston eliminated all 3 of its foreign correspondents over the same period. Freelance reporting is not picking up the slack. According to anecdotal accounts, freelance budgets for foreign news have been slashed at mid-sized papers across the country.

More surprising is that intellectual San Francisco lags far behind glitzy L.A. and that gritty Baltimore employs as many foreign correspondents per capita as Miami. One note is that the mid-sized market of Tampa/St. Petersburg is well served by the St. Petersburg Times. It not only boasts the largest circulation in Florida, it is also the only newspaper that has not cut its foreign staff in the last six years. One reason may be that it is run by a non-profit foundation and not by a company listed on the NYSE.

Washington D.C. Public Library Case Study

Washington DC’s 37% rate of functional adult illiteracy reflects one of the most underfunded and underutilized library systems in the country. In 2004, former DC Mayor Anthony Williams launched a task force in 2004 to examine the DC Public Library (DCPL). In November 2006 the Mayor’s Task Force Report was released, envisioning that:

“Revitalized libraries will offer fresh collections of current books and media, useful standard publications, multilingual materials, GED and SAT practice books, historic documents and records, pertinent online databases, and digital content.”

Unfortunately, listing digital content last is symbolic of the vision for DC libraries. In the 370 page Technical Report, e-books are mentioned only seven times in reference to the future of DCPL collections. Here some of the few excerpts that lay out technology vision for the DCPL in 2010 and beyond:

“[Page 21]: The library should license digital content and make it available to registered borrowers whether they are in the library or using the collection from their home. E-books, digital audiobooks, videos-on-demand, and other digital content should be available for downloading to a customer’s personal computer, PDA,or MP3 player. …

[Page 60]: A ‘virtual branch’ is fast becoming a necessary facility for successful public libraries serving large populations. … A virtual branch can be a full-service location for searching licensed electronic databases, getting answers through an interactive reference service, downloading digital books and audiovisual content, using learning software, and participating in online programs such as presentations and discussions about books and topics of current interest. Also, items in the library’s physical collections can be reserved and, when available, shipped to the user – with any fees charged to the user’s account or credit card.”

It all sounds pretty high tech until you hit on idea of shipping books around the city. In any case, if you’ve lived in DC for long, the vision of a virtual branch probably sounds like science fiction. In fact, the 2010 vision for the DCPL is based on technology that has been used in public libraries around the country for years.
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Playing Catch Up

Several companies including NetLibrary, Overdrive, and Ebrary already have partnerships with public libraries around the world. All three offer a system for libraries to purchase e-books and popular audio book titles, though the technology is not cheap. NetLibrary has a rather shocking price structure. According to LibraryJournal.com:

“NetLibrary… now with more than 100,000 titles, has maintained its one book–one user access model. The company offers two primary purchase models based on title-by-title selection: libraries can subscribe to an ebook by paying the list price of the book, plus an annual access fee of 15 percent of the list price, or libraries can ‘own’ an ebook by paying the list price plus a one-time access fee of 55 percent of the list price.”

Unfortunately, the lack of a significant discount for subscriptions will encourage libraries to purchase e-books. If the library purchases a title, e-catalogs lose many of the advantages of digitization. For example, if econo-star Steven Levitt is heading to Seattle to talk about Freakonomics and 100 people want to read his e-book at the same time, they’ll have to wait. The King County Library System can only lend out 5 of his e-books at a time. E-books are made of 1s an 0s, not hardwoods and glue, so why not simply pay the publisher every time the virtual book is checked out?

Although the NetLibrary subscription model is extortionary, subscription e-books are the ideal model for libraries. E-books require few human resources: three weeks after you check out an e-book, it is automatically “returns” itself to the library by deleting itself (spooky, eh?). A subscription service ensures that libraries pay publishers only when e-books are checked out, so no dollars are wasted on lonely, unread books sitting on dusty shelves. Best of all, 10 of your best friends can check out a copy of the e-book at the same time, eliminating excuses in your book club.

While a subscription service might seem to favor the publishers of bestsellers, it also provides increased exposure to authors of obscure or out-of print books - the so-called long tail. If libraries pay only when e-books are loaned, then there is no reason to limit the size of their virtual catalog. A proper e-book subscription service that costs a public library no upfront fees also reduces guesswork in collections management, enabling a smooth transition in budgeting for a dedicated e-library.
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Leapfrog: DC Should Pursue the First True Virtual Public Library System

DC Public Libraries suffer from several problems that make them an ideal test case for launching a real virtual library: huge deferred maintenance costs, an aging central library, and a population disillusioned by years of neglect to local libraries.

DCPL is too far behind the technology curve to play catch up. Instead they should leapfrog technologies. Statastic proposes that new DC Mayor Adrian Fenty and DCPL Director Ginnie Cooper consider a bold experiment in virtual collections.

The DCPL should start phasing out the acquisition of new paper books in 2008, with the goal of e-books making up no less than 90% of new acquisitions 2013. By 2017, the DCPL should have digitized 90% of its existing collection and sold the millions of hardback books in its stacks to help generate revenue. This will reduce required square footage - and overhead costs - of neighborhood libraries, eliminate the frustration of missing books, and create more space for the computer terminals that are sorely lacking.

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Advantages to the DC Virtual Library

One of the most obvious advantages to a virtual library is the 24-hour access to books that might otherwise be checked out or unavailable. It could also expand the size of the DCPL available collection from 2.7 million volumes to as many as 32 million - every title in the WorldCat system. More titles mean more attention from residents, which increases reading and circulation.

In a city with 17% of its residents and 30% of its children living in poverty, it might seem that DC is not well-suited for e-books. After all, how would someone living in poverty afford a $300 e-reader? And how would they download a book with access to the Internet? Statastic expects the prices of e-readers featuring e-ink to drop to less than $75 within 5 years (we already have $100 laptops), and less than $40 by 2017.

Under this plan, the DCPL would phase in heavily subsidized or free e-readers for every low income DC resident. Children could also use these e-readers in the public schools where textbooks are in such short supply making it impossible to assign homework from textbooks. And assigning a hot new technology like e-readers to under-privileged citizens might just spark their interest in reading.

With the advent of Google Books, do we need a virtual public library? Many DC residents with their own e-readers and home Internet access will soon have access to millions of Google e-books. But the digital divide is real and if public libraries aren’t centrally involved in digitization of books, the gap will widen. As the high-income, early adopters turn toward e-books, wealthy taxpayers might see less value in funding the DC Public Library System (if this is even possible). This would exacerbate already grave funding shortfalls, leaving an underclass with an ignored and outmoded library system.

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E-book Public Library Budget

Free e-readers, millions of e-books… sounds expensive, doesn’t it? Actually it could save taxpayers millions of dollars. The DCPL proposed budget for 2007 is $43 million, of which $19 million is for reference and library collection services. Facilities make up another $9.4 million. All three of these categories will have enormous savings if transitioned to an e-books catalog:

• 1. Book Sale: Bound books would be liquidated, with proceeds dedicated to digitizing rare books and subscription to an e-books catalog.
• 2. Deferred Maintenance: Neighborhood libraries that have been already been closed or that suffer from huge deferred maintenance costs would be sold and replaced by an increased number of smaller, leaner e-libraries that offer better neighborhood access to computer workstations, distribution of e-reader and training and reading programs. Neighborhoods with little Internet access would be served by DCPL e-book kiosks (more on this below).
• 3. Staff reductions: With fewer books to re-shelve and a 24 hour virtual library online, collections and maintenance staff could be reduced. As D.C. Library Renaissance Project Director Robin Diener recently commented: “We have evidence of incredible abuses — people who work for [the library] and draw a salary and rarely come to work. It’s a no-work culture.”
• 4. Private Partners: The DCPL should pursue technology partners such as Google or Yahoo which will be naturally be drawn to the cutting edge, high-profile project of digitizing the library system of the nation’s capital.
• 5. Private & Public Grants: The DCPL’s innovative virtual library experiment will also attract attention from major donors such as the Bill & Melinda Gates Foundation as well as federal grants.

By 2017 when the DC Virtual Library System is in place, there will be some new expenses (2007 dollars):

• 1. New Staff: Tech savvy staff capable of managing a virtual catalog and training patrons on the use of e-books, e-readers, and online catalogs. The new, more expensive staff hired will be offset by staff reductions due to reduced maintenance and collections services (e.g. re-shelving). Reference librarians will still be necessary, though they may take on new roles dispensing valuable advice through online forums. It’s even easy to imagine 24 hour access to an online librarian.
• 2. Subsidized E-readers: Assume that students would be issued e-readers at school. The DCPL would purchase e-readers for any adult with a household income of less than $35,000 per year. Nearly one-third, or about 184,000, DC residents would qualify for free e-readers. If new e-readers are issued every 2 years and the price of e-readers averages $40 in 2017 (it is more likely to be about $15 to $20), it would cost the city about $3.7 million annually to supply free e-readers. Other ways to help defray these costs are to require a deposit or small co-payments from those above the poverty line.
• 3. E-book Subscriptions: Circulation in all DC public libraries is about 1.1 million books. If the DCPL can reach a circulation rate similar to Seattle’s, residents would be checking out 6 million e-books per year, or about 1 book per month for every reading-age citizen. If the DCPL cut a deal with publishers to pay $2 for every book checked out from its libraries, it would cost the DCPL $12 million per year to maintain its e-book collection.
• 4. E-book Kiosks: For residents in neighborhoods with limited home Internet access, DCPL could provide e-book kiosks near public areas like schools or community centers. Pre-distributed e-readers would have RFID technology that identifies the DCPL account. The customer would simply touch the e-reader to kisok to log in. After selecting a title, the user holds the e-reader next to the kiosk for a free wireless download of the e-book. Installation and maintenance could be covered by corporate advertising on the outside of the kiosk.

The total new expenses of subsidized e-readers plus e-book subscriptions is equal to about $15.6 million. Compare this to the $19 million being spent on collections and references this year alone.

It’s important to remember that not all books, documents and historical will be digitized, so there will be still be a need for a central library, whether it is the renovated Martin Luther King, Jr. Library in downtown DC or the new one proposed by the DC Mayor. Either of the central library proposals are would cost about $275 million according to city estimates. Statastic doesn’t prefer one proposal over another, but it is imperative to rethink the needs of a central library with e-books as the heart of the collection.

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Unknowns and Opportunities

There are two unknowns in creating the world’s first truly digital library: 1) are publishers willing to negotiate lower e-books subscription rates, and 2) will the DCPL create its own e-book collection or outsource it?

One major pre-condition for this proposal to succeed is that subscription e-book prices must be negotiated downward. Publishers and authors must be made to understand that low-priced e-book “rentals” in public libraries will increase readership. Publishers will sell higher volumes of e-books, and they can count on a reliable revenue stream.

It is not cost effective for the DCPL to digitize its collection from scratch. Google has already inserted themselves into the e-book value chain and Google is far and away the leader in the number of titles digitized. In fact, Google may be the only corporate partner for creating a virtual public library. According to Jeffrey Toobin in this week’s New Yorker, because of publishers’ lawsuits against Google, they might be the last company to digitize the world’s books:

Google’s advantage may well be cemented if the company settles its lawsuits with the publishers and authors. … [Lawrence Lessig , Professor at Stanford Law School said], “The publishers will get more than the law entitles them to, because Google needs to get this case behind it. And the settlement will create a huge barrier for any new entrants in this field.”

Google will complete digitization of the 6 million books at the University of Michigan by 2010 - the same target year for the DCPL’s modernization. The DCPL should approach Google immediately to negotiate a partnership for the DC Virtual Library.

Are DC residents feeling lucky?

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If you were the owner of a major league sports team, how would you decide what to name it? There are many considerations: city history, fan base, and an image that intimidates opponents (but nothing so fierce as to reduce marketability).

Some of the best team names had a fortunate confluence of culture and mascot: Baltimore’s foreboding Raven pulled from Edgar Allen Poe, or Scandinavian heritage brought to life in the pillaging (just not in Super Bowls) Minnesota Vikings.

When team owners decidet to move to a new city, their mascost often lose relevance. Thus, we are left with perplexing names like the Utah Jazz or L.A. Lakers. But some cities such as Cleveland are more far-sighted. Cleveland held on to rights to the Browns football name, even as Art Modell was moving the team to Baltimore.

Then there are annual battles over political correctness. The Atlanta Braves have their tomahawk chop and DC has its Redskins, a favorite target of the Washington Post:

This is not a new issue, nor is it the first time we have urged the change of a name that, as a check with the dictionary shows, is a racial slur. In the early 1990s, a group of Native Americans sued over the name, citing federal law prohibiting the registration of any trademark that disparages any race, religion or group. There’s been new activity in this challenge, and once again the Redskins are on the defensive, advancing the argument that since the team and its fans don’t intend to be racist, the nickname is not offensive.

…(But) it really is not up to the offender to characterize the nature of the offense.

It was in the paralyzing grip of political correctness that Washington renamed its basketball team the Wizards after the Washington Bullets became a self-fulfilling prophesy in the mid 1990s.

Many teams have steered well clear of controversy by naming their teams after something in the neighborhood. The Colorado Rockies and Phoenix Suns team owners seem only to have walked out onto their front porches to come up ideas. The Washington Nationals isn’t particularly ambitious, either. Statastico always favored something along the lines of the Washington Bureaucrats, or the Beltways Bandits. But that’s why I probably don’t own any major league sports teams.

Finally, there are the team names that stick out as historic oddities: teams named after folks dodging street cars, packers of meat, or brewers of beer. Those are the most appropriate team names. If not for the people honored by those teams, how else would we spend a lazy Sunday?

Car-sharing is gaining popularity in cities across the United States. The idea is simple: car-share companies or cooperatives park hundreds of cars in convenient locations that any member can rent by the hour. Most car-share programs cost about $8 to $12 per hour, including gas, insurance and maintenance.

On the face of it, car-sharing is a economical and eco-friendly way to get around. Zipcar has about 40 members sharing each car in their national fleet. That’s certainly better than 1 car per person, right? Perhaps. If your goal is to reduce the total area dedicated to parking a vehicle, it does indeed free up valuable urban space. If, however, your goal is to reduce traffic congestion, smog, or reliance on fossil fuels, the jury’s still out.

Car Sharing Increases Mobility - and Traffic - Amongst Urbanites

Car-sharing is most appealing to urbanites who choose to live in densely-populated cities in part to avoid car ownership. Zipcar and Flexcar have both built a business model on enhancing the mobility of these groups. The consequence of increased mobility, unfortunately, is that more urbanites are driving alone. According to a study sponsored by the Federal Transit Administration, 26% of users reported driving more as a result of car sharing.

Flexcar and Zipcar are for-profit companies, and each has recently received $20 million in investments. Those investors expect profit, and that profit will be generated largely by getting more people to drive more of their cars. Most privately-owned cars spend 95% of their time parked. Shared cars have much higher usage rate - most users are unlikely to pay $10 per hour to just to park their car somewhere (which is why commuters who drive to work are unlikely customers for car-sharing). In short, car-share companies generate revenue when people drive those cute little Zipcars around town. (Sorry, but the Flexcars are significantly less attractive. It looks like their marketing department went out for a drive and had a fender-bender with their new logo).

Like public transportation, the economics of car-sharing only make sense with high urban density. In fact, car-sharing is a substitute for other transportation options, many of which are better for the environment. When asked what people would do if a shared car were not available, nearly half of respondents said that they would have taken public transportation or not made the trip at all. It appears that half the time shared cars are used, they have the potential to increase traffic.

This is balanced by another effect of car-sharing: People are more aware of how much they drive. If a user factors in the cost of a Flexcar for a quick trip to the grocery store, the price of a gallon of milk could soar from $3 to more than $10. And that suits the car-sharing business model. Flexcar and Zipcar need high usage rates to remain profitable. But forty members sharing a single car means that each week, a member can only reserve a car for an average of 4 hours. If a member wants a car during premium hours after work or on the weekend, car-share members had better plan ahead: members have an average of about 1 premium hour per week.

Getting Suburbanites Out of Private Vehicles and Into Shared Cars

Although urban car-share members may drive more, suburban users help account for the 46% of drivers who reported that they drove less after they started using car-sharing. Although the FTA report concluded that, “many studies show no statistically significant change (in vehicle miles traveled),” car sharing helps fill a mobility gap created by insufficient public transit in the car-centric suburbs. Suburban two-car households can significantly reduce their expenses by switching to one car plus what Zipcar calls a “fractional second car.” And this may help reduce vehicle miles driven (VMT). Arlington, a northern Virginia suburb of DC, reported that the average car-share member reduced their VMT by 43% between 2005 and 2006.

For now, shared cars are focused on the more densely populated areas with populations that are inherently less reliant on car culture. Flexcar and Zipcar have about 75% of their total fleet in the District of Columbia despite the fact our 515,000 residents make up only 10% of the total DC metro population. Even in close-in suburbs like Arlington, 83% of the 3,500 car share members live in the densely populated Metrorail corridor.

Car Sharing Eases Parking Pressure

Densely populated areas stand to gain the most from car-sharing for a reason that may not be immediately obvious: parking pressure. Despite what urban dwellers may believe, even un-metered street parking is not free. Street parking is public land where private citizens are allowed to store their vehicles. Any taxpayer without a car is effectively subsidizing vehicle owners. All parking spaces have an opportunity cost. That is, there is the opportunity to use that space for something else that is forfeited when we park our cars on the street.

Convenient parking also reinforces America’s car culture. Albuquerque, New Mexico, for example, devotes more land to parking than to all other land uses in the city combined. According to Donald Shoup, the author of The High Cost of Free Parking, 15% of parking spaces must be open at all times or people will be dissuaded from driving. Car share minimizes this problem for neighborhood street parking because its parking spaces are permanently reserved. This means less time, and less traffic, caused by people driving around looking for a spot near home.

How Shared Cars Can Create Bike Lanes

Eliminating the need for free street parking is indeed a worthy goal. Anyone experienced with urban biking has had nightmares about a driver’s door whipping open in front of them. Bike lanes alleviate some risk by granting a wider berth to cars parked curbside, but according to WashCycle, U.S. cities often build bike lanes too close to parked cars. Michael King at University of North Carolina-Chapel Hill advocates at least 14′ from the curb to the edge of the bike lane, but this guideline is ignored by many U.S. cities. This may explain why many cyclists refer to bike lanes as “suicide lanes.”

So what would happen if U.S. cities accepted shared car culture as the norm? Statastic used a Northeast Capitol Hill neighborhood as an informal case study to find out. Assuming that the neighborhood has the same average density as the rest of DC, there are about 4,000 people living in an area about 6 long and 11 blocks wide.

Now for the assumptions. According to census data, about 18% of DC residents drive by themselves to work. We’ll let them keep their cars. Another 28% are car owners who either carpool or don’t drive to work. We’ve decided that one-third of them will be converted to car sharing and will give up their cars. The remaining 32% of DC residents over age 18 don’t have a car, so let’s assume that 100% of them become car share members. The result is that 1,600 of 4,000 residents in this neighborhood are now full-time car share members.

Using the Zipcar ratio of 40 members per car, the neighborhood will need an additional 33 shared cars, bringing the total to 40. Zipcar claims that each shared car replaces 15 to 20 private vehicles, and that means more available street parking. Those 40 shared cars in northeast DC could replace 800 private cars, freeing up twelve miles of street parking. Eliminating street parking on one side of a 44′ wide road would also liberate about 16% of the pavement. Wider bike lanes could be added, existing traffic lanes could be widened, and wider lane for street parking would eliminate risk of getting doored while biking by.

The best part is that by increasing the density of shared cars, there would likely be a tipping point where it would become increasingly popular. As people convert to shared cars, the distance between the average resident and a shared car shrinks. Another way to look at it is that with a high conversion rate, the number of cars within three blocks of any resident would increase from 2 to 15. That means more cars to choose from: hybrids for quick city trips, trucks for hauling, or a convertible Mini for a weekend away.

How could we get to this tipping point? Taxing the free parking along city streets would be a start. To give an idea of how valuable the land is that DC residents park their cars on, consider that the going rate for a private parking spot is about $200 in the Dupont area of DC. Taxing street parking could be done in conjunction with proportionally lowered property taxes to avoid political backlash from homeowners. Although cities won’t necessarily generate more income from street parking taxes, residents would understand the real cost of parking and could make a rational economic decision about car ownership.

Shared cars and biking everywhere. Does the car-free life sound like a pain? It’s easy to get used to - Statastico does it every day.

Packed on the number 7 subway line to the U.S. Open, tourists ignored the New York custom of not chatting with strangers on the train. Everyone was abuzz about Agassi. Was he scheduled to play during the day or night? He had another cortisone shot? Can he win another match? But the most common phrases overheard were the clichés familiar to anyone who has watched the breathless U.S. Open television coverage of Agassi: “He has given so much back to the game” or “It’s really what he’s done off the court.”

Even if you’ve never followed tennis, it’s hard to ignore Agassi’s career. It has spanned 21 years and he has won every Grand Slam tennis tournament, a feat that eluded Sampras, Borg, Connors, McEnroe, even the great Federer (thus far). Beyond that, however, you probably know Agassi by his nearly $200 million in endorsements. About ten years ago he thankfully traded in his “image is everything” faded denim shorts and a classic 80s hair-metal coif for a shaved head, two children with Steffi Graf, and his work with the Andre Agassi Foundation in Las Vegas.

Commentators have fallen over themselves lauding what Agassi has given back to the game. But during the interminable rain delays last week, John McEnroe as commentator would inevitably turn about the sorry state of American tennis: Who is the next star? Where is the next batch of American rivals? The next Pete vs. Andre, John vs. Jimmy?

So what has Andre given back to the game? He produced TV ratings at last year’s U.S. Open final versus Roger Federer that were 92% higher than in 2004. His victory against Pavel last week broke records for first round TV viewing. And he provided late-night thrills versus Baghdatis in a match for the ages. But has he inspired any new interest in tennis?

The retirement of Agassi’s cult of personality reveals that tennis is a fading sport in the United States. An informal survey of urban tennis courts in southeast Washington, DC finds them empty on beautiful, sunny days. A few of the preppier neighborhoods often have tennis players waiting, but most of the competition for urban play space revolves around soccer fields or basketball courts. The TV viewership reflects this. NASCAR attracts nearly twice as many viewers as a Grand Slam final without Agassi. Even with Agassi, the NFL draft attracted almost as many viewers as the 2005 U.S. Open final between Federer and Agassi.

So as we bid Agassi farewell, we may also be bidding farewell to the last generation of U.S. tennis superstars. Prove me wrong, James Blake and Andy Roddick.

In July of this year, Baghdad was in crisis. Death squads roamed the streets abducting at will and killing more than 50 civilians per day. Starting on August 7, Operation Together Forward concentrated 8,000 additional U.S. troops on 5 of the most deadly neighborhoods in Baghdad - Doura, Ghazaliyah, Rashid, Ahmariya and Mansour (see map).

At the beginning of the operation, Senator John McCain grilled U.S. General John Abizaid about troop movements in Iraq, especially the redeployment of 3,500 troops from Mosul to Baghdad. He was concerned that we were simply putting out bigger and bigger fires, responding to flare ups rather than developing a strategy, saying:

“What I’d worry about is we’re playing a game of whack-a-mole here.”

Yesterday the L.A. Times offered a preliminary assessment of Operation Together Forward:

“An ambitious military sweep appears to be dramatically reducing Baghdad’s homicide rate, U.S. and Iraqi officials said Sunday. …

Similar sweeps in Baghdad and elsewhere since the U.S.-led invasion in 2003 have reduced violence. But the bloodshed would increase when U.S. forces moved on. …

U.S. and Iraqi officials describe the Baghdad security plan as a last-ditch effort to stave off civil war and to shore up Maliki’s government, which has struggled to contain sectarian violence and deliver essentials such as electricity and gasoline.”

Twenty-two days after the operation began, it does seem that violence in Baghdad has been significantly reduced. Calculated on a monthly basis, there has been a 77% decrease in the number of civilian deaths.

Senator McCain has repeatedly called for more troops in Iraq to snuff out the sectarian violence once and for all. Is he right? By increasing the total number of U.S. soldiers in the Baghdad area from by 24,000 to 32,000, the troops are also becoming more efficient at preventing civilian deaths. In July, there were 76 civilian deaths for every 1,000 U.S. troops in Baghdad. During Operation Together Forward, that has dropped to 10 civilian deaths for every 1,000 troops in Baghdad.

But McCain’s comparison to Whac-A-Mole indicates that he believes troops movements within Iraq are a zero-sum game. As we move troops from hot spot to hot spot we are always chasing new problems. Perhaps. After the 3,500 troops in Mosul were moved to Baghdad, violence in Mosul did not increase significantly. Those 3,500 troops from the Stryker Brigade may have helped save as many as 622 Iraqi lives.

What’s more, U.S. troops in Baghdad appear to have a lower casualty rate in August than in July. Perhaps this is all due to the fact that militias such as those loyal to al-Sadr simply abandon neighborhoods where the U.S. coalition announces that it will be conducting raids. During Operation Together Freedom violence has surged in Diwaniya, for example.
But we have been down this road before. Here’s a description from the June, 2006 Christian Science Monitor of how the wealthy Amariya neighborhood first turned deadly:

“…insurgents began arriving in Amariyah after the deadly US assault on Fallujah in April 2004. The first jihadis sought haven with relatives, many of them former senior officers in Saddam Hussein’s Army. …

Not content with having found a haven, the militants set about transforming the demographics and social mores of the area. ‘At first it was just the outsiders, but some of the young men - surrounded by these people telling stories about what the Americans did in Fallujah and these preachers telling them it was their duty to fight - joined up,’ says Aqeel, a former resident of Amariyah who fled in February.

Soon, graffiti praising Al Qaeda in Iraq leader Abu Musab al-Zarqawi and promising death to traitors proliferated; new prayer leaders took over mosques, issuing strident demands for jihad over their loudspeakers every Friday; leaflets were distributed warning women not to work and to cover their hair, men not to trim their beards or wear shorts; then bodies started to appear on street corners.

Amariyah, a wealthy Baghdad … neighborhood of shaded gardens … has become synonymous with gruesome, anonymous death, as have other Sunni neighborhoods like Dora and Adhamiya. They are all examples of the ongoing battle occurring throughout Iraq to loosen the grip of the insurgency - and the tough fight facing the Iraqi Army and US forces to dislodge them.“

In June, Colonel Burleson said that he believed the violence in Amariya was “past its crest.” In June, Iraqi soldiers were more measured in their assessment of Amariya, saying that, “We’ve shut off most of the branch streets and are funneling the traffic through our checkpoints, so we’ve got a lot more control, but if we don’t maintain this type of control, what happens then?” The answer came in July.

Perhaps the administration should listen to those on the ground. A few days ago, a minibus driver who lives in one of the neighborhoods being targeted by Operation Forward Together said:

“As long as the Americans are here it is fine,” he said. “If they leave it to the Iraqi police the killing will just return.”

So Operation Whac-A-Mole is in place, and the results are dramatic… for now.

Paternalism and the Mirage

Professor Karnani’s primary critique of Prahalad’s The Fortune at the Bottom of the Pyramid, is that it focuses multinationals on the extreme poor as consumers. Instead Karnani offers that “…we should emphasize buying from the poor. By far the best way to alleviate poverty is to raise the income of the poor.”

This is not a new idea, nor is it at odds with the idea of marketing innovative products toward the poor. Karnani’s arguments against the poor as consumers often boil down to naked paternalism:

“Holding the poor consumer’s income constant, the only way he can purchase the newly available product is to divert expenditure from some other product. If he is a ‘rational’ consumer, this will increase his welfare. However, as a practical matter, this is unlikely to result in a significant change in his poverty situation. Additionally, if for some reason, the poor consumer is irrational in his resource allocation choice, the BOP initiative might even result in reducing his welfare.”

“The poor surely have a right to buy televisions; the issue is whether it is in their self interest to buy televisions.”

So if there is a risk that poor consumers might make irrational buying decisions, who should help guide them? The United Nations? The dictator of that poor country? A local tribal leader? Religious clerics? In an ideal market, consumer choice is best left to… the consumer.

Professor Karnani emphasizes that the government should be focused on consumer protection. But we have to remember that consumer protection laws in the West have taken a century to build. Should developing nations that can’t even deliver basic sanitation, infrastructure and public health shift their focus to developing consumer protection laws? Consumer protection is a worthy goal, but it is ultimately citizens who must hold their own governments accountable when the forces in the free market are perceived as harmful to their society or environment.

Karnanai also takes issue with Prahalad’s example of a skin whitening cream that was marketed to women in India by international giant Unilever. Karnani blames it for it entrenching women’s disempowerment, writing that:

“The BOP proposition is not satisfied with just giving the company the right to sell skin lightening cream. It goes further and commends the company for empowering women and helping eradicate poverty. This is an intellectually and morally problematic position.”

He also notes that Unilver’s marketing campaign was failure:

“The All India Democratic Women’s Association campaigned against this and another advertisement as being racist, discriminatory, and an affront to women’s dignity.

“Ravi Shankar Prasad, minister of Information and Broadcasting, said ‘Fair & Lovely cannot be supported because the advertising is demeaning to women and women’s movement’. Unilever has since discontinued these two advertisements in India.”

Karanani advocates that we preemptively limit consumer choice because the poor might make economic decisions that seem irrational from a Western perspective.  But it was by giving consumers a choice in India that they considered the role of women in Indian society, and market forces ultimately drove Unilever to pull the ads. Would Karnani consider poor customers to have been rational economic actors in that case?
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Paternalism Meets Micro-Credit

Karnani also finds harm in Prahalad’s example of Casas Bahia. This Brazilian superstore facilitates the purchase of high-quality appliances by offering credit to poor consumers who have unpredictable income streams.

Karnani argues that:

“The BOP proposition again falls prey to a fallacy: providing credit does not change the affordability of a product. The finance term for Casas Bahia ranges from four months to one year, with an average of six months. All that the financing scheme does is provide instant gratification at a price. For the privilege of this instant gratification, he pays an interest rate of over 4% per month. People with ‘low and unpredictable income’ would be well advised to save and pay in cash; this will enable them to do a better job of comparison shopping too. It is not surprising that many of Casas Bahia’s customers do not understand well how to unbundle the purchase price and the interest cost and instead focus on the monthly installment payment.”

Using credit in a developing nation is rarely about instant gratification. Village groups in West Africa without access to micro-credit schemes organized themselves and made small loans to group members for the monthly interest rate of about 10%. These loans helped fund medicine for sick children or seeds for cash crops. Poverty tends to produce desperately pragmatic people. Would Mr. Karnani advocate saving money throughout the rainy season only to buy seeds for a cash crop to be planted the next year? Doesn’t it depend on the rate of return? And who is best able to judge when to extend credit?

If a poor Brazilian consumer buys an appliance on credit, isn’t it possible that this person might become more productive as a result? Washing machines liberate people from having to spend the day washing by hand. Gas stoves are more efficient that searching for firewood.

You don’t have to question whether someone will make the right rational economic choices just because they are poor. I agree that government regulation is needed, but we should not discourage the private sector from extending credit just because poor consumers might buy something they don’t need. If someone defaults on the loan at Casas Bahia, I’m guessing they won’t be issued more credit.
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Corruption - Total instances found: 0

Unfortunately this heading applies to a search for the word “corruption” in the PDF of Professor Karnani’s paper, not to the situation the facing the world’s poor. Transparency International recognizes that this is one of the gravest problems facing the poor. Corruption hurts the poor both as consumers (by distorting prices) and producers (by discouraging investment). Neither Karnani and Prahalad offer much insight into how to remedy this.

In fact, Karnani hardly even acknowledges the difficulty hurdle that corruption presents in establishing well-functioning institutions needed to turn the poor into producers. In attacking Prahalad, he seems to lose sight of the fact that billions of the world’s poor live in countries with failed governments.

“By emphatically focusing on the private sector, the BOP proposition detracts from the imperative to correct the failure of the government to fulfill its traditional and accepted functions such as public safety, basic education, public health, and infra-structure.”

Karnani and BOP advocates both want to see improvements in governance. Both want to improve the conditions facing the poor. It’s only a question of how to reach that noble goal. Making a market at the BOP gives multinationals a stake in the improvement. Surely sophisticated market analysts at the world’s corporations would recognize that a well-educated, healthy population of consumers purchases more goods?

We could, of course, step back and try to figure out what is going wrong in the failed states of the world. We just need to fix the infrastructure, education, eliminate AIDS, and end epidemic corruption. This is not a novel idea. The World Bank, UN and countless other academics, advisors and NGOs have been trying to achieve this for decades. As soon as we have that all figured out, will Karanani let companies sell approved goods to the poor?

Karnani concludes that:

Private companies should try to pursue marketing to the poor. However, the profit opportunities are modest at best and we suggest a cautious approach. Large companies that require scale economies should be even more hesitant.

Why ward off large companies? Free market innovation is an invaluable tool. Companies should try to earn a profit in developing nations. Many will fail as thousands of companies before have failed in rich nations. Just don’t wave off the LifeStraws and PlayPumps of the world while we wait for developing nations to create consumer protection laws up to our standard.

Karnani is correct to focus on establishing institutions that will help the poor earn more income. But while we wait, why not try the BOP approach?

State fairs are in full swing, and presidential hopefuls are getting acquainted with Iowans. As the first state to hold a caucus in the 2008 presidential primary, politicians take advantage of the state fair’s 1 million visitors to test the political waters.

It’s an odd setting for DC politics. The Iowa State Fair is a demonstration of how agriculture has helped shape a quirky Midwestern culture. Today’s events, for example, include a Mom Calling Contest, hot beef sundaes, rubber stamp art techniques, “Focus on Ostrich,” by the Iowa Ostrich Association, at least two goat milking competitions, and a titillating program entitled “How’s My Wienerschnitzel?” Ambivalent fairgoers can escape to the Iowa Wine and Cheese Garden starting at 11 am.

For anyone born and raised in Iowa, the real highlight is the butter cow. Lines typically snake around the Agriculture Building as eager Iowans wait for look at the cow crafted from 500-600 pounds of butter. While the Butter Cow Lady, Norma “Duffy” Lyon, has sculpted a new butter cow annually for the last 45 years, this year she gave up the reigns to her 29 year-old apprentice, Sarah Pratt. Over the years, Norma has also sculpted butter objects to keep the cow company in her refrigerated showcase. These butter creatures hold a funhouse mirror to Iowa culture: Grant Wood’s “American Gothic,” Elvis Presley, Leonardo da Vinci’s “The Last Supper,” John Wayne, The Peanuts Gang, Tiger Woods holding a tiger (really), and this year, Superman.

The Iowa State Fair also has another proud tradition: politicians eating fair food. Former Speaker of the House Newt Gingrich visited the fair last week and ate a pork chop on a stick. Delaware Senator Joseph Biden, who first visited the fair 20 years ago during his bid for president, was reportedly devouring a hoagie in one hand and an ice cream cone in the other.

Other politicians couldn’t help but compare the Iowa State Fair to home. Indiana Senator Evan Bayh commented that “I see you serve beer at your fair and we don’t” in Indiana. (Wait until he finds out what time the wine garden opens.) George Pataki observed that, “We have a great state fair in New York but… we don’t have pork on a stick.” Republican Senator Sam Brownback was at the Iowa State Fair yesterday and Senators John McCain and Bill Frist are expected today or tomorrow. Iowa Governor, Tom Vilsack, has also visited several times - no word on what he’s been eating, but as a native Iowan it’s unlikely to make much news.

So are the state fair visits paying off? According to WHO-TV’s informal “Cast Your Kernel” poll taken on August 16th, not really. Of the Republicans, Senator John McCain came out on top with 24 percent, followed by Rudy Giuliani and Condoleezza Rice each with 20 percent. Neither of the leading Democrats has yet paid a visit to the butter cow. John Edwards and Senator Hillary Clinton were tied at 33 percent, while Iowa’s own governor Tom Vilsack came in third with 13 percent.

It seems that the 500 pounds of butter in the butter cow are enough to sustain the hopes of at least eight politicians. It is a copious amount - about 2000 sticks in all. That’s enough buttersticks to nickname 2,000 baby pandas, or draw butter for 2,000 lobsters. Or, you could butter 4,000 tubs of popcorn, or 16,000 pieces of toast.

And if you get addicted to shaving with butter like Kramer, you can get 16,000 close shaves out of this year’s butter cow. Those 500 pounds of butter would also fuel a very successful bake sale: 20,000 pieces of fudge, 35,000 of my mother’s famous brownies, 60,000 Toll House cookies, or 64,000 Rice Krispies Treats. Of course, if you’re in Iowa, you would most likely use 500 pounds of butter on 32,000 ears of sweet corn.

In a letter about his trip to Iowa, Newt Gingrich closed with this:

“…the process of electing the President of the most powerful country on earth passes through a state fair in rural America where more than one million people come with their families to eat nearly anything that comes on a stick, compete in numerous agricultural competitions and contests, ride the rides, enjoy the shows and see the ‘butter cow,’ but that is how we do it in America, where a free people get to put their candidates to the test face to face.”

Fair enough.

Notes: According to the new butter cow lady, Sarah Pratt, this year’s butter cow is a Jersey and requires about 500 pounds of butter.

Assumptions: One ear of Iowa sweet corn only requires half a tablespoon of butter. Popcorn needs 1/4 cup per tub. Lobsters apparently require 1/2 a cup. Statastic does not advocate sautéing pandas, no matter how delicious that might be. Butterstick was blogosphere’s attempt to name Tai Shan, the baby Panda at the National Zoo.

Some bloggers like to pat themselves on the back for being ahead of the mainstream media. But how serious is the blogosphere compared to the print media? I though today’s sensational story about JonBenet Ramsey would provide a pretty good test of how serious the bloggers are.

According to Technorati, English language blogs with “a lot of authority” mentioned JonBenet 180 times so far today and Hezbollah about 550 times. This actually was a pleasant surprise to Statastico (who does not have a lot of authority). So I went out to see how the newspapers were covering the same two stories.

For lack of a better idea, I measured the size of the columns that referred to each of the two stories. Unfortunately, the newspaper sample reflects where I bought the newspapers - about 2 blocks from the Capitol Building - so I’m a little light on samples from anywhere but the East Coast.

For the most part the Israel-Lebanon conflict dominated space on the front page relative to JonBenet. The New York Times and the Wall Street Journal were the only two papers to carry the JonBenet story entirely below the fold. The average newspaper dedicated 3.4 times more column space to Hezbollah than to JonBenet. Serious bloggers wrote 3.05 posts referring to Hezbollah to every post referring to the JonBenet story. Imperfect measures to be sure, but somewhat encouraging.

As to which form of media is setting the conversational agenda, I would still vote for the broadsheets. Especially now that we bloggers are ever-so-aware of the fact that we can get free advertising by showing up in the Washington Post’s Who’s Blogging link to Technorati. I’ll see you there.

Source: Statastic research

Notes: Washington Times measure includes a story about the media and the Lebanon-Israel conflict.