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Gobi Desert Wine to Tackle Poverty and Boost Incomes

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

In the arid Gobi Desert spanning the two Asian nations of China and Mongolia is a bold attempt to make wine and reduce poverty. The environment is harsh, with temperatures swinging from sub-zero winter cold to sweltering summer heat. The desert is also home to high winds and notorious dust storms that plague China’s capital Beijing every year.

China’s wine industry is booming as people have embraced the drink’s perceived health-giving qualities and are using it to celebrate new-found wealth as the economy has flourished. Current wine consumption in China is half a litre per person per year, low compared to the French average of 55 litres a year. But this is growing quickly.

Well-known brands include Great Wall, Dynasty and Changyu (http://www.changyu.com.cn/english/index.html), which is considered the world’s 10th largest wine producer.

One innovative winery is using this wine boom to tackle poverty and increase local wealth.

Chateau Hansen (hansenwine.com) in Inner Mongolia has been operating since the 1980s, but recent expansion and modernization have significantly increased its earning power and the number of people it employs. Located in an area with high levels of poverty, it has developed a successful wine business in the desert by tapping the plentiful water supplies from the Yellow River. The area is now considered one of the best for growing wine grapes in China.

Located near Wuhai city (http://en.wikipedia.org/wiki/Wuhai), 670 kilometres west of Beijing, Chateau Hansen has 250 hectares of Merlot, Cabernet Sauvignon and Cabernet Gernischt grapevines.

The vines are buried under the sand to protect them from the harsh weather in the winter.

“The lowest temperature gets down to is below -20 degrees C (Celsius), but in summer, it can reach 38 or 40 degrees C (102 or 104 F),” Li Aixin, Chateau Hansen’s head of viticulture, told MSNBC. “Here the four seasons are good for the growth of the grapes, but in the winter we need to bury them in the earth” to keep them from freezing. Hansen has been ambitious in its approach. It has a European-style chateau, hotel and even a French wine expert, Bruno Paumard, on site to help with the wine making. The chateau’s cellar now stores 1,000 barrels of wine.

Paumard arrived in China in 2005. He has thrown himself into Chinese culture and tasted and tested the country’s wines. Hansen has produced 400,000 bottles of wine, mostly sold in China, where red wine drinking has become a big part of the culture of celebration.

Hansen sells the majority of its wine to government organizations and regional enterprises. It has seen its profits double to 100 million yuan (US $18 million) in 2011 and hopes sales will double again in 2012.

“Eighty per cent of the market in China is really the local governments who encourage the enterprises in their cities to consume red wine, of a certain brand, at their banquets in the place of Chinese ‘baijiu’ for their incessant and never-ending toasts,” said Paumard, referring to China’s home-grown rice wine. “So it’s actually a market that’s totally unique.”

Hansen’s Cotes du Fleuve Jaune du Desert de Gobi has become one of the biggest award-winning wines in China. It received a bronze medal from the International Wine Challenge of Blaye, near Bordeaux, France.

China now stands as the world’s fifth-largest consumer of wine (International Wine and Spirit Research study) (http://www.iwsr.co.uk/). The market in China is forecast to grow by 54 per cent from 2011 to 2015, adding up to a billion bottles.

A map of China’s vineyards and their terroir or soil conditions shows a diverse wine-making sector (http://www.hansenwine.com/english/vineyardlink.html).

In this busy marketplace, Hansen prides itself on being organic. It also has the goal of turning the arid desert into green vineyards using irrigation from the Yellow River and groundwater. It wants to create employment and raise living standards in the region and is fitting into a national strategy to raise living standards for poor regions.

There is a training programme for the around 400 workers employed by the winery. No pesticides are used and only sheep dung is used as a fertilizer provided by 3,000 sheep on site. Trees also play a role in providing humus (http://en.wikipedia.org/wiki/Humus) for the vines. There is also accommodation in a nearby village for the employees.

There are 250 hectares of vineyards and the grapes are harvested by hand. Expansion began in 2001 when the chateau and winery were built. It is strategically located just 500 metres from an airport and the chateau has a luxury hotel. Around 20,000 people visit a year, according to Hansen’s website, bringing in further income for the winery. The winery also uses Mongolian culture and cuisine as a selling point to attract tourists.

The chief executive of Hansen is Han Jianping, who made his first fortune in real estate development.

Han believes that “the momentum of growth in the wine industry is huge.”

“With a great foundation of more than 1 billion people as we have in China, and (the industry) growing at 20 or 30 per cent a year, there is a huge potential for more growth,” he said.

Resources

1) China Wine Online: An information service that also produces the China Wine Business magazine and runs the China Wine Study Tour. Website: http://www.winechina.com/en/index.asp

2) The 10th Shanghai International Wine and Spirits Expo 2013: Website: http://www.winefair.com.cn/sugar/en/index.asp

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More on the Gobi Desert here:

Development Profile: UNDP In The Southern Gobi Desert | May-June 1998

Kommunikation total: Der siebte Kontinent

Wild East 17 Years Later | 2000 – 2017

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Food Diplomacy Next Front for South’s Nations

By David South, Development Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY 

The meal is a universal bonding ritual, a time for families or friends to socialize and catch up on the day’s activities. Food has the ability to transcend cultures and societies when humour, the arts, and diplomacy cannot. A person may know nothing about a particular country or culture, but they know what their appetite and palate likes. So it’s no surprise that countries in the South are turning to cuisine as a new weapon in their armoury of diplomacy and cultural outreach.

The phenomenon of ‘gastrodiplomacy’ got its start in Thailand. Thai cooking and restaurants had been on the rise around the world since the 1980s. But in 2002 the Thai government decided to use these kitchens and restaurants as new cultural outposts to promote brand Thailand and encourage tourism and business investment. The “Global Thai” campaign sought to increase the number of Thai restaurants around the world and boost Thailand’s cultural impact.

As The Economist reported at the time, more restaurants “will not only introduce delicious spicy Thai food to thousands of new tummies and persuade more people to visit Thailand, but it could subtly help deepen relations with other countries.”

Thailand’s 2002 campaign boosted the number of Thai restaurants around the world and made popular dishes like pad Thai and tom yum soup (http://www.bbc.co.uk/food/recipes/tomyumsoup_85069) familiar to many more people. They are now signature dishes, as synonymous with Thailand as hamburgers are with the United States.

Malaysia, whose varied and delicious cuisine is less known globally than that if its neighbour Thailand, has been running an aggressive campaign in Britain to promote its food. This included setting up a street market in the famous Trafalgar Square in central London: a high foot-traffic spot guaranteed to get the city’s attention.

South Korea also has been pursuing its “Kimchi” diplomacy, an ambitious US $44 million campaign to promote Korean food, or hansik (http://www.visitkorea.or.kr/enu/CU/CU_EN_8_1_5.jsp) as it is known, to more nations. They aim to make Korean food one of the top five most popular cuisines in the world. Using a master plan, South Korea is opening Korean cooking classes at top culinary schools like France’s Le Cordon Bleu and the Culinary Institute of America, increasing the number of overseas Korean restaurants to 40,000 by 2017, and promoting the food’s health qualities. The Korean staple of kimchi – a fermented, spicy cabbage dish – will be perfected at a “kimchi institute” to appeal to foreign palates (http://www.korea.net/detail.do?guid=45469).

Neighbouring North Korea has also turned to gastrodiplomacy with its chain of “Pyongyang Restaurants” (http://www.pyongyangrestaurant.com) around Asia and Europe. These eateries first appeared in China, near the border with North Korea, but have expanded widely during the last decade. Pyongyang Restaurants can be found in Vientiane, Laos; Siem Reap and Phnom Penh, Cambodia; and Bangkok and Pattaya, Thailand. In Europe, a restaurant has opened in the Dutch city of Amsterdam. The restaurants’ formula offers staff in traditional clothing, authentic North Korean interiors, North Korean art, cooking lessons, cultural performances, and singing. The food includes traditional Korean dishes like kimchi (fermented spicy cabbage), Pyongyang “cold noodle” and barbecued cuttlefish (squid).

One example of how gastrodiplomacy can work on the ground is the Kogi Taco Truck (http://kogibbq.com/), which serves up Korean-Mexican fusion food  in Los Angeles, California. This food truck moves around the city and uses social media like Twitter (www.twitter.com) to notify customers and fans of its location. The truck quickly developed a cult following and had lines lasting two hours as people ordered barbecued beef tacos topped in Korean “salsa roja” with coriander, onions, cabbage and a soy-sesame chilli dressing. The truck has been praised for bringing the appreciation of Korean food and culture to parts of the city that knew little about Korea.

A passionate promoter and chronicler of gastrodiplomacy is Paul Rockower, Communications Director of the Public Diplomacy Corps (http://publicdiplomacycorps.org), an organization dedicated to bringing
diplomacy to the public. He noted on the Nation Branding (www.nation-branding.info) website that “a keen eye for the irreverent is a must if you really want to make the nation brand stand out. Highlighting exotic tastes and flavors, and engaging in nontraditional forms of public diplomacy help under-recognized nation brands gain more prominence in the field of culinary and cultural diplomacy.”

For Taiwan, which has tense relations with China, which does not recognize it as a nation, gastrodiplomacy is a way to get the island’s message across. Taiwan is spending US $31 million on its food diplomacy campaign around the world.

“Taiwan has figured out it can do better outreach work through the kitchen table,” Rockower told The Guardian newspaper. “When someone tries a sea-salt latte (a Taiwanese drink) it creates awareness about Taiwanese culture. The Koreans embarked on Kimchi diplomacy partly because their brands weren’t being recognized as Korean – Samsung was being recognized as a Japanese brand.”

Resources

  • Unrepresented Nations and Peoples Organization: Is an international, nonviolent, and democratic membership organization. Its members are indigenous peoples, minorities, and unrecognized or occupied territories who have joined together to protect and promote their human and cultural rights, to preserve their environments, and to find nonviolent solutions to conflicts which affect them. Website:http://www.unpo.org/

Published: December 2010

Creative Commons License

This work is licensed under a
Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

Launched in 2011, Southern Innovator’s first issue on mobile phones and information technology proved highly influential, profiling the work of a new generation of innovators. It has been cited in books, papers and strategic plans.  The third issue focused on agribusiness and food security, including the phenomenon of ‘gastrodiplomacy’.

Abduazimov, M. (2017) “Gastrodiplomacy: foreign experience and potential of the republic of Uzbekistan,” International Relations: Politics, Economics, Law: Vol. 2017 : Iss. 2 , Article 2. 
Available at: https://uzjournals.edu.uz/intrel/vol2017/iss2/2.
Gastrodiplomacy: foreign experience and potential of the republic of Uzbekistan by M. Abduazimov, International Relations: Politics, Economics, Law, 2017. 

This work is licensed under a Creative Commons Attribution 4.0 International License.

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Private Firms Thrive As NDP ‘Reinvents’ Medicare

By David South

Today’s Seniors (Canada), August 1993

Many of today’s seniors fought for Canada’s internationally-admired public health system. But more and more people are becoming worried that the combination of health care reform, funding cutbacks and free trade is fuelling the growth of a second tier of private medical services serving the well off. 

The provincial government sees things differently, arguing Ontarians no longer expect government to pay for everything and rather than eroding medicare, the NDP is reinventing it. 

Whichever way one looks at it, private insurance companies, homecare providers, labs and other services designed to make money are becoming more and more involved in the health care business. 

Operating in the territory outside the guidelines of the 1984 Canada Health Act – which sets out the principles of medicare for the federal government to enforce – the private sector has room to expand, at the same time as OHIP coverage is scaled back from more and more services. 

Janet Maher, whose Ontario Health Coaltion (OHC) represents doctors, nurses and other health care workers, worries for the future of medicare. 

“A number of things like accomodation services – laundry, food services – are in the grey area of the Canada Health Act,” says Maher. “So with all these fees that are being introduced, by the strict letter of the law, there is no way to stop them. But as far as we are concerned the spirit of the Act isn’t being observed.”

In its current reforms, the government of Ontario is emphasizing paramedical professions like midwives who fall outside the CHA and aren’t covered by OHIP. The turn to community-based services means that people have to rely more on services and providers that aren’t covered under the CHA. 

Maher says privatizing accomodation services is a recent phenomenon, the result of hospitals finding creative ways to trim their budgets. 

“It’s a new area that hospitals are taking bids on,” she says. “The other thing around the accomodation services is that because they are not categorized, strictly speaking, as health care services, none of this is exempted in the Free Trade Agreement from U.S. competition.”

A recent report by two British Columbia researchers tries to put together this complex puzzle. Jackie Henwood and Colleen Fuller of the 7,500-member Health Sciences Association of British Columbia recently charged that a combination of free trade and budget-slashing governments is eroding the universality of medicare and ushering in a two-tier system. 

Fuller and Henwood identify the Free Trade Agreement as the culprit. While the health care industry created more jobs than any other sector of the Canadian economy between 1984 and 1991, they point out the job growth has been concentrated in the private sector since free trade was implemented in 1989. And they expect worse under the proposed North American Free Trade Agreement (NAFTA). 

“NAFTA will accelerate trends towards a privatized, non-union and corporate-dominated system of health care in Canada.”

One provision of the Free Trade Agreement has also made it possible for U.S. companies to compete against Canadian firms in health care. Chapter 14, “health-care facilities management services”, allows wide-open competition. 

Under NAFTA, provisions will bind all levels of government to consider for-profit health care companies on both sides of the border on equal footing with public providers when bidding for services, and entitles them to compensation if they can prove to an arbitration board they’ve been wronged. 

“That represents a substantial encroachment on the democratic right of local, provincial and federal governments to make decisions,” says Cathleen Connors, who chairs the national wing of OHC, the Canadian Health Coalition. 

It’s this plus health care cutbacks – federal and provincial – that’s resulting in service and job cuts and bed closures in the public sector and an increase in privatization, say Henwood and Fuller. These opportunities have not gone unnoticed by private companies south of the border. 

One such company is American Medical Security Inc. (AMS) of Green Bay Wisconsin. After hiring Canadian pollsters Angus Reid to do a survey, AMS saw a profitable market in offering American hospital insurance to frustrated Canadians awaiting surgery. Sixteen per cent of those polled said they wanted this service; that was enough for AMS. 

“One thing that comes across loud and clear is that Canadians for the most part are happy,” says spokesperson Carrie Galbraith. “They know they are taken care of during an emergency. But they are willing to pay a little extra if they need care.”

So far, AMS offers its plan to Ontario, B.C. and Manitoba, with Toronto its best market. Galbraith says plans are in the works to expand to all of Canada except the territories. 

Unfortunately, like most private health plans, AMS cuts its losses by avoiding what Galbraith calls “adverse selection” – anybody with a known serious health problem need not apply. 

Here in Ontario, private for-profit home care services take in close to half of all OHIP billings. Many clients pay out of their own pockets for additional services. 

The Ontario health ministry doesn’t keep statistics on the extent of the private home health care sector, says spokesperson Layne Verbeek. But the Ontario Home Health Care Providers’ Association, a trade group, estimates private homecare companies now employ 20,000 and serve more than 100,000. 

“It’s a market situation,” says Henwood. “If the services aren’t available to people within the public sector, they will go outside of it. We’ve seen this in other countries like England, where they had a public system and now have a parallel private system. If you erode a system enough that people get angry, they are going to start to look for alternatives, and the people with the greatest liberty are those with money.”

But in a recent interview, health minister Ruth Grier was adament this scenario wouldn’t be allowed to take place in Ontario. She strongly disagreed that medicare is being weakened due to recent changes, and said the government has actually “reaffirmed its commitment to medicare.”  

More from Canada’s Today’s Seniors

Feds Call For AIDS, Blood System Inquiry: Some Seniors Infected

Government Urged To Limit Free Drugs For Seniors

Health Care On The Cutting Block: Ministry Hopes For Efficiency With Search And Destroy Tactics

New Seniors’ Group Boosts ‘Grey Power’: Grey Panthers Chapter Opens With A Canadian Touch

Seniors Falling Through The Health Care Cost Cracks

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2021

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Development Profile: UNDP In The Southern Gobi Desert | May-June 1998

By David South, Blue Sky Bulletin (Dalanzadgad, Mongolia), May-June 1998

Development Profile: UNDP in the Southern Gobi Desert

In late May UNDP visited its environment and poverty projects in Omnogobi or South Gobi on the border with China and in the heart of the Gobi Desert. The aimag (province) is home to 45,000 people spread over a territory of 165,000 kilometers. It is a harsh environment where temperatures can plummet to minus 40 degrees Celsius in winter and shoot up to plus 40 in summer. What is striking about the capital of Omnogobi, Dalanzadgad, is how well things are working. It is a garden capital – despite being in the desert the central boulevard is covered in trees – and trade with China has brought a prosperity for some herdsmen, many of whom buzz around the town on Planeta motorcycles. The offices of the Malchin television company are hidden by a bouquet of white satellite dishes – it is not an uncommon sight to see a ger with a satellite dish in South Gobi. 

In 1998 Der Spiegel’s “Kommunikation total” issue profiled the global connectivity revolution underway and being accelerated by the Internet boom of the late 1990s. It chose my picture of a satellite dish and a ger in the Gobi Desert to symbolise this historic event.

Electricity in the air – 85 women discover the Women’s Development Fund

The Mongolian Human Development Report singled out South Gobi for having the highest poverty incidence in Mongolia (41.9 per cent). While this ranking is hotly debated by locals who say it is a statistical anomaly resulting from their low population, there is no question life is hard in the Gobi. 

In a crowded room in the Governor’s building, 85 of the poorest women in Dalanzadgad have gathered to hear about an innovative UNDP-initiated fund. The meeting, organised by the NGO the Liberal Women’s Brain Pool, is introducing the Women’s Development Fund. Many questions are asked as to why some of the women were passed over when the local government started distributing poverty alleviation funds. 

With the assistance of the British Government who donated Tg 12 million, these women are getting a chance. The Women’s Development Fund was founded in partnership with the Poverty Alleviation Programme Office to take account of the unique role women have in the prosperity of families. Support is key and the women will be assisted by community activists as they develop their project ideas and begin to implement them. In early June they started to receive funding for their projects. 

Note: This story was part of a series highlighting life and the state of human development in Mongolia’s Gobi Desert after the publishing of the country’s first human development report in 1997

ORCID iD: https://orcid.org/0000-0001-5311-1052.

© David South Consulting 2020