Tourist Trap in Istanbul

I do not feel very comfortable about writing this article, but I want to make public this true story, which was experienced by a Chinese friend of mine in Istanbul recently.

To start with, Istanbul is a wonderful city with many attractions, and visiting only once is not really enough to understand the vibe and culture. In addition, generally speaking Turkish people are very hospitable with a kind attitude towards tourists. Unfortunately, my friend experienced something very different, which does not represent Istanbul and Turkish people.

Since there was a whole week’s holiday in China a couple of week ago, my friend took the opportunity to fly to Moscow and then to Istanbul to spend a few days there. Like any ordinary tourist, he was visiting the usual Istanbul tourist attractions, such as Hagia Sophia and the Blue Mosque in the Sultanahmet area.

He was travelling alone; since he is Asian, it was not easy to guess that he was a tourist, and he was approached by a stranger initially asking for a lighter. Since he is not a smoker, he politely told him that he did not have one, and then the conversation started. According to the local guy who approached my friend, this area is very touristic, and he offered to give him a lift and show him local places, which unfortunately my friend accepted and the story begins here.

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He was taken to some places, although he does not know exactly where they were, and in the end they sat down in a restaurant and ate dinner together. Given that the local guy had spent the last hour or so taking him to some places, my friend offered to pay for the dinner and did so.

Then, all of a sudden, the local guy offered to take my friend for a night out, and he accepted the offer. They initially went to his hotel, where he changed his outfit, and then he took him to a kind of striptease club, of which he does not know the name or the district (although it is possibly in Sisli).

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After spending an hour drinking and chatting with some half-naked women, they asked for the bill, which turned out to be 12,000 Turkish lira: in other words around USD 4,000. Having travelled and lived in many countries, my Chinese friend was amazed and asked the local guy how this could be possible; he was told that this is quite a normal bill for a night out in Istanbul (in 1 hour).

Apparently a security officer then escorted the local guy outside to an ATM to withdraw money and he came back with 6,000 Turkish lire, so he paid his half. Then my friend was escorted to the ATM, and he withdrew 6,000 Turkish lire and closed the bill.

I was disgusted by this experience, and, with his permission, I decided to publish his stories with his pictures from that specific night out. This guy even continued to SMS my friend even after he had landed in Shanghai.

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As mentioned at the beginning, Istanbul is a great city for tourists, and Turkish people are quite hospitable to tourists, since it is part of the Turkish culture to make sure that foreigners feel at home when they visit their city. Unfortunately, this experience is a little odd.

I hope it will not be replicated with somebody else and that nobody will suffer from it.

Best wishes from Singapore.

Sukru Haskan
Twitter: @sukru_haskan

Fintech idea #2: SmartBonds

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Last week, I published the deposit shifting fintech idea and I got quite a lot of positive and negative feedback as to why it would work or not.

It is always great to get some feedback.

This week, I will publish another fintech idea which specifically targets retail and low end HNW clients.

As many of you know, USD denominated international bonds have been quite popular for the last few decades as interest rates were declining steadily and these bonds were a great source of income for investors.

Although with interest hikes in the coming years, the trend will not be that sexy anymore, there will always be an interest in the bond market since it provides a fixed income, unlike the uncertain and highly volatile equity and commodity markets.

These markets are not easily accessible by retail investors since many of new issue require a minimal nominal investment of USD 200K. This is a substantial amount of money and it keeps many investors out of this market.

SmartBond can solve this problem by aggregating demand and it can help retail investors to have access to international bonds.

Since there are many bonds in the market, SmartBonds can market bonds in a Groupon fashion (an e-commerce site which aggregates demand for specific products for a certain period with some discounts to its customer by achieving economics of scale). SmartBond can collect bond orders from retail clients and, once the minimum order amount is reached, it can trade in the market and allocate accordingly after the trade.

SmartBond will be a full pledged technology company like Groupon and it will not recommend any specific bonds to buy or sell. From this point of view like SmartDeposit, it should not be regulated as a financial institution.

Clients may choose to keep their bond holdings in any bank available through the SmartBond platform or in an institution of their own choice.

One may ask what would happen when the client wants to sell their holding since they will again need a minimum order amount of a nominal 200K. The same logic will apply and there will be sell platform along with a buy platform and once the order is aggregated, it will be executed.

In the beginning phase, it will not be possible to include all the bonds available for trading. According to the demand from clients, the platform can be enhanced and this could be a very profitable business if it reaches enough volume quickly.

Please continue to post your positive/negative feedback through my blog, twitter or email.

I will continue to write my ideas in the coming weeks.

All the best from Singapore.

Sukru Haskan
Twitter: @sukru_haskan

 

 

Fintech business idea: SmartDeposit

I have a fintech idea ‒ actually I have more than one, but I will publish only this one as a start.

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The environment of low interest rates has pushed many investors to hunt for a yield, and this has led many super-risky asset prices to skyrocket.

Especially, the extended period of ultra-low interest rates has hit pension funds and insurance companies hard, since they have to generate a certain level of income to ensure their sustainability and the ability to pay their liabilities.

High-net-worth individuals and retail clients are not happy either, since their capital is not working for them for the first time in history. Some of them are even paying banks to deposit currencies such as the euro, yen and Swiss franc, since banks are demanding that these investors are charged interest instead of receiving interest from them.

There is nothing new until now …

Everybody who follows the financial markets knows these facts very well.

What if these investors still want to invest simply in plain vanilla deposits but are happy to take higher credit risks in countries such as Brazil, Turkey, Russia or India?

Because of their counterparts’ risk parameters, these pension funds and insurance companies are mainly stuck with high-credit banks, such as all tier 1 global banks, and tier 1 global banks cannot offer any sexy interest rates.

Here, my idea kicks in ‒ what if they could place their deposits with low-investment-grade banks or even banks with junk credit quality that pay a much higher level of interest if they are happy with the risk?

The reams of paperwork for all different types of different banks and the regulatory requirements are a big hassle at the moment.

What if we could create a platform that can place deposits with many different banks without opening an account in each bank and simply shift the deposits from one to another when another bank in the world becomes more attractive?

It may be hard to attract institutional money in the first instance, but I believe high-net-worth (HNW) individuals and retail clients would be happy to test the proposition.

To visualize the idea, let us say that we open an account with ICICI in India, Garantibank in Turkey, VTB in Russia and BTG in Brazil. Assuming that ICICI offers 2.5% p.a., Garanti offers 3% p.a., VTB offers 3.25% p.a. and BTG offers 4% p.a., we can compare these with a tier 1 bank’s 0.30% p.a. deposit rate.

The investor can choose to place his deposit with any institution on the platform, so the availability of different institutions is an important factor to be attractive to investors. Clients will be able to place a deposit in India for a month and then shift it to Brazil in the next month.

The platform would enable emerging market banks to have a diversified deposit base and access to non-conventional HNW and retail investors from all around the world.

Since we are not advising clients and the deposits are held in segregated accounts for the tech company, how should our fintech be regulated? Just like banks or differently? I believe we should be much more lightly regulated.

It is a kind of UBER of finance ‒ simply a technology company facilitating a service rather than a bank.

The main challenge for this fintech would be the KYC (know your customer). It should be possible to know who is placing deposits and that the funds are coming from legitimate sources. We can overcome this hurdle with the help of blockchain technology, which will enable each investor’s details and transactions to be stored safely.

In addition, there is a new business opportunity here to create a global KYC company in which the banks are also stakeholders so that a verified KYC could be used between different banks instead of providing each different bank with thick sets of paper.

Regulators are really the key in this business idea, and they will be the key in any fintech ideas. They will decide whether to kill the fintechs in favour of conventional banks or help them to thrive. Many regulators, such as those in Singapore, the UK and Switzerland, are really helping this industry to excel, so I am quite optimistic.

I will publish another fintech idea for retail clients next week. If you would like to exchange ideas and/or simply discuss matters, please keep in touch through my blog, twitter or email.

All the best from Singapore,

Sukru Haskan
Twitter: sukru_haskan

Book Review: Prisoners of Geography by Tim Marshall

Whilst I was in London last month, one of the books that I bought was “Prisoners of Geography” by Tim Marshall. Tim Marshall tells us how the leaders of the world are restricted by their geographies and how their decisions are influenced by it. It is a great book that looks at historical turning points of different nations and helps us understand why they behaved in a certain way. His book is divided into ten sections: Russia, China, USA, Western Europe, Africa, the Middle East, India and Pakistan, Korea and Japan, Latin America, and the Arctic.

The book contains a lot of anecdotes about each region.

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Russia:

Russia covers eleven time zones and, even now, it takes six days to cross it by train. Russians were fighting on average in and around the North European Plain once every thirty-three years. By 2004, just fifteen years after 1989, every single former Warsaw Pact state bar Russia was in NATO or the European Union. Russia is the biggest country in the world, twice the size of the US or China, five times the size of India, twenty-five times the size of the UK. Although 75 per cent of Russian territory is in Asia, only 22 per cent of its population lives there.

China:

Xinjiang is the largest province of China. It is the twice the size of Texas, and you can fit the UK, France, Germany, Austria, Switzerland, the Netherlands, and Belgium in it and still have room for Luxembourg. Xinjiang is too strategically important to allow an independence movement to get off the ground: it not only borders eight countries – thus buffering the heartland – but it also has oil and is home to China’s nuclear weapons testing sites.

Large-scale migration south to north can be expected, which will, in turn, give China more leverage in its relations with Russia.

China intends to become a two-ocean power. This is China’s way of reducing its overreliance on the Strait of Malacca, through which almost 80 per cent of its energy supplies pass.

USA:

By 1814 the British had gone and the French had given up on Louisiana. In 1867 Alaska was bought from Russia. Many US government foreign policy strategists are persuaded that the history of the twenty-first century will be written in Asia and the Pacific. Half of the world’s population lives there, and if India is included it is expected to account for half of the global economic output by 2050.

Western Europe:

There are unprovable theories that the domination of Catholicism in the south has held it back, whereas the Protestant work ethic has propelled the northern countries to greater heights.

France is the only European country to be both a Northern and Southern power.

Geographically, The Brits are in a good place. Good farmland, decent rivers, excellent access to seas and their fish stocks, close enough to the European Continent to trade and yet protected by dint of being an island race. There is a theory that the relative security of the UK over the past few hundred years is the reason it has experienced more freedom and less despotism than the countries across the Channel.

Africa:

We are all from Africa since that’s where homo sapiens originated 2,000 years ago. Challenge is the rivers ince parts of it navigable by shallow boats, but there are parts that do not interconnect, thus limiting the transportation of cargo. The ethnic conflicts within Sudan, Somalia, Kenya, Angola, the Democratic Republic of the Congo, Nigeria, Mali and elsewhere are evidence that the European idea of geography did not fit the reality of Africa’s demographics.

About a third of China’s oil imports come from Africa. South Africa is one of the very few African countries that do not suffer from the curse of malaria, as mosquitoes find it difficult to breed there. Is it a coincidence that European colonialists chose to settle there and that South Africa is the biggest African economy today?

Middle East:

Prior to Sykes-Picot, there was no state of Syria, no Lebanon, nor was there a Jordan, Iraq, Saudi Arabia, Kuwait, Israel, or Palestine. Lebanon’s most recent civil war lasted for fifteen years and, at times, it remains close to another one. Syria may suffer a similar fate.

The Mongols were the last force to make any progress through Persian territory in 1219–1221 and since then attackers have ground themselves into dust trying to make headway across the mountains.

Turkey granted its women the vote two years ahead of Spain and fifteen years ahead of France.

India – Pakistan:

There is an approximately 1,900 mile long border between the countries. Pakistan received just 17 per cent of the financial reserves that had been controlled by the pre-partition government.

In the spring of 2015, the two countries agreed to a USD 46 billion deal to build a superhighway of roads, railways, and pipelines running 1,800 miles from Gwadar to China’s Xinjiang region. This would make it possible to bypass the Strait of Malacca.

The Afghan-Pakistani border is known as the Duran line. Sir Mortimer Durand, the Foreign Secretary of the colonial government of India, drew it in 1893 and the then ruler of Afghanistan agreed to it.

Korea – Japan:

Satellite images and witness testimony suggest that at least 150,000 political prisoners are held in giant work and re-education camps.

The territory of the Japanese islands together make up a country that is bigger than the two Koreas combined, or in European terms bigger than Germany.

Latin America:

The Latin American population, including the Caribbean, is over 600 million, and yet their combined GDP is equivalent to that of France and the UK, which together comprise about 125 million people.

In 1914 the newly built, 50 mile long, American controlled Panama canal opened, thus saving an 8,000 mile journey from the Atlantic to the Pacific oceans and leading to economic growth in the canal region.

The Texas-based geopolitical intelligence company stratfor.com estimates that Brazil’s seven largest ports combined can handle fewer goods per year than the single American port of New Orleans.

The Arctic:

The Arctic Ocean is 5.4 million square miles; this might make it the world’s smallest ocean but it is still almost as big as Russia, and one and a half times the size of the USA.

I highly recommend that you have this book on your bookshelf, as it will not only enhance your vision, but also make you understand where the world is going. Prisoners of Geography is the kind of book that you could easily go back to many times as a good source for references.

All the best from Singapore.

Sukru Haskan
Twitter: @sukru_haskan

 

 

 

Israel – Turkey – GCC Union?

Whilst I was studying as an undergraduate in Turkey in 2003, I was asked by my professor to present an alternative plan to the EU for Turkey.

Back then, Turkey was struggling to start accession talks with the EU on the back of several issues.

My very basic plan then was to bring Turkey together with Israel and the GCC—the Cooperation Council for the Arab States of the Gulf (Kuwait, Qatar, Bahrain, Saudi Arabia, Oman and the UAE)— and I named this project Sukru’s Utopian Alliance.

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When I presented my plan, it received some attention from my fellow students and the professor, but I have to say that they were not truly fascinated by the idea.

While I was on holiday for two weeks 13 years later, my brain somehow started again to ponder on the same project, and this time I am more equipped to address the issues concerned.

When we look at the reasons for the foundation of the EU (formerly the EEC), we see that it was necessary to form bonds between European countries such as France and Germany to make sure that their economic interests were aligned in order to avoid another world war in the coming decades.

Even though the EU has suffered in the last couple of years, at least the aims of bringing economic interests onto one platform and preventing another world war have succeeded.

The EU does not want to allow Turkey into the Union, at least for the foreseeable future. The GCC and Israel have no chance of joining the EU since their lands are located entirely in the Middle East.

Turkey and Israel have long historical, economic and cultural ties. In fact, Turkey was one of the first countries to recognise Israel. Furthermore, Turkey has fairly good relations with the GCC. In this equation, Turkey can play a key role in bringing Israel and the GCC into a union.

The part of the equation which is clearly hard to solve is how can Israel and the GCC agree to be on the same economic platform?

From Israel’s point of view, the country has developed economically and reached around USD 40,000 per capita. This is a tremendous success without any natural resources. In the meantime, there is a continuous security threat which reduces the country’s true potential and Israel, like any other nation, does not want to fight continuously with its neighbours.

From the GCC point of view, the USA is already rapidly diversifying its energy needs and they are very likely not to need as much oil from the Middle East as is currently the case. We can already see the effects of this, as the USA does not show the same level of interest as previously.

If the GCC is not able to diversity its income sources, it faces a big potential economic threat. Places such as Dubai and Qatar are trying to achieve this diversity fast, but since human capital is mainly imported, I personally do not see the current system as sustainable.

And the GCC does not really function very well alone. Interestingly, there are also some internal conflicts. It is no secret that Qatar and Saudi Arabia do not get along very well.

Turkey has relatively cheap labour, massive land and a skilled white collar work force. Israel has a huge talent pool, where the proportion of university graduates in the country is the highest amongst the developed world. Furthermore, not only does it have a wealth of graduates, but it supports a culture with an entrepreneurial attitude.

The GCC has an extensive land area, and still valuable natural resources such as oil and gas, but it lacks human capital. These different parts of the equation can combine to help create an economic union to leverage their potential.

A potential union will not only help us to solve the conflicts between the countries quickly, but also could potentially draw people closer and help them to understand each other better.

I know it sounds like a utopia, but big achievements always grow from what many believe to be impossible.

Of course, we also need politicians with clear intentions, no hidden agendas and international support to establish this platform.

A project on this scale would be a stepping stone for the Middle East and the end of its bloody history.

So why not try?

Best regards from Singapore,

Sukru Haskan

 

Trip Notes: Italy (Bologna, Florence and Chianti)

After great days spent in London, it was the family choice of destination this year: Italy.

The route was Bologna, San Marino, Florence, Castelnuovo Berardenga in Chianti and then back to Bologna. I drove around 850 km during these 10 days and as a person who hates cars and driving, this was enough for me this year.

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We landed in Bologna from London after a flight of just over two hours. The airport is a small traditional European airport with only two migration officers working when we landed.

After smoothly getting our car from Europcar, we headed to San Marino from Bologna. It is a very nice town and, to be honest with you, the only reason I dragged all my family there was to tick the box of visiting another country! 🙂

When we checked in to Grand Hotel San Marino at 9 p.m., I immediately asked if we would have enough time to go around in three hours the next day. The receptionist replied: “Two hours is enough, three hours is more than enough!”

Then I relaxed. 🙂

San Marino is a mountainous city state and “the country” is built inside the walls. Since there is no tax, you can buy cheap sunglasses, perfumes, etc. In other words, you can regard the country as an open air duty free shop. It is almost impossible to get San Marino citizenship. The view from the top and the air quality is great.

San Marino’s economy is heavily dependent on tourism and they have very nice ceramics that you may wish to buy during your visit as a souvenir.

Then we headed to Florence. It took me another 3.5 hours to drive there and we checked in at Grand Hotel Villa Medici. It is a very nice hotel and everything is within walking distance. This was my first trip to Florence and I can assure you that it won’t be the last!

I felt a little bit embarrassed since I hadn’t done my homework properly about the city. Three days were definitely not enough for this beautiful city.

Since it is very popular, it is a challenge to getting into certain museums or you risk to losing hours and hours waiting in the queues.

I recommend that you visit Florence Cathedral, Piazza Della Signario, Palazzo Vecchio, Palazzo Pitti, Piazza Di San Croce and Ponte Vecchio if you have limited time. Ponte Vecchio is a very crowded tourist attraction but, still, you cannot really avoid it.

If I were to make only one restaurant recommendation it would be l’Parione Ristorante on Parione Street. It was “the” restaurant for us. I will not write in detail exactly what we ate, but I can assure you that everything was great – especially the fillet steak. When I compare the final bill with London and Singapore prices, it was real value for money!

We had been recommended many restaurants but we had some disappointments with many restaurants since it was August and many restaurant owners preferred to take 15 days or a full month’s holiday and did not leave anyone behind.

One of the reasons for this trip was to drink good wine so it was time to head to the Chianti region. We checked in to Castel Monastero.

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View from my room in Castel Monastero

Castel Monastero used to be a monastery and was converted into hotel in 2009. Gordon Ramsay’s restaurant and Contrada (Tuscany) are two restaurant choices inside the hotel. Even though it is not me, I refused to go anywhere outside the hotel since I really wanted to chill. Gordon Ramsay’s restaurant, as many of us would know from London, offers fine dining with a great outfit and Contrada is inside an old cellar with Tuscan food. We ate on three nights at Contrada and on one night at Gordon Ramsay.

I can truly say that all of the food and the wines were great and reasonably priced.

I arranged a full day wine tour at Chianti and that cost me a bit but it was worth it. We initially visited Tenuta Casanova where a gentleman pursued his dreams rather than conventional corporate life and bought the land and started producing balsamic vinegar and wine. His wife cooked for us and we enjoyed a tremendous amount of red wine and very good food.

Have you ever tasted balsamic vinegar with ice cream? I know it sounds very weird but it tastes great! (I am not sure a regular balsamic vinegar off the shelf will do the same job, though!)

My favourite wine from Tenuta Casanova is Chianti Classico Casanova Riserva. It is the cheapest wine out of their selection.

After spending almost 3–4 hours in Tenuta Casanova, we headed to the winery of the Mazzei family. The Mazzei family have been in the region for the last six centuries and 24 generations. Since then, they have always produced wines.

I strongly recommend you test Siepi Toscana, Chianti Classico Gran Selezione Castello Fonterutoli and Mix36 from this winery and my favourite one was Mix36.

Eventually it was time to go to back to Bologna where I headed back to London. We stayed at i Portici Hotel.

This hotel was recommended by a two good friends of ours. It is central but, most importantly, it is a beautiful building that used to be a theatre. It has a very nice garden where you can eat snacks and drink.

What to do in Bologna?

Bologna is a beautiful city with a university and many magnificent churches. A day or two would be more than enough to discover the hotel city. Piazza Maggiore and San Petronio Basilica are the main attractions. Don’t forget to taste the famous Bolognese pasta here!

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Taste of Venice in Bologna

Even though it was a ten-day trip, it went really fast – if you need more tips, you can always contact me via Twitter.

All the best from Singapore,

Sukru Haskan
Twitter: @sukru_haskan

Trip Notes: London

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I had a chance to spend part of my summer holidays in London—six days, plus a day and a half on the way back to Singapore—and met quite a few people from different industries such as finance, law, higher education, food and government.

First of all, I can say that London is still London and nothing really has hammered its good mood.

Since the referendum on June 23rd, nothing much has changed except for the fact that EU citizens living in London are preparing themselves to apply for British passports.

Restaurants are full, theatres are colourful and, most importantly, there are tourists all over London, despite what’s going on in continental Europe.

I went to see a dramatised version of George Orwell’s 1984 and it was absolutely great. (Tip: read the book to understand the play better.)

People had apparently had a real shock on that frightening Friday with the referendum results, but it looks like that initial reaction has soon dissipated. With the new government in place very quickly, confidence levels are coming back, though they are still nowhere near the desirable level.

Of the people I spoke to, I can say that none of them showed any intention of leaving the UK following the Brexit vote.

During my stay in London, the only thing that really bothered me was the persistent helicopter hovering over central London, but unfortunately that’s a new normality and we will have to live with it for some time.

Since I have been living in Singapore for the last three years, I keep comparing London with Singapore, and I must admit that the level of service in Singapore is much better than that in London right now. If you are looking for a single example, try to call the British Airways hotline and then call Singapore Airlines.

Another example could be the fantastic BA ground staff at Heathrow Terminal 5. On the way to Italy, the check in process took us 40 minutes due to an incompetent member of staff.

Fintech is growing very fast and I visited level 39 at 1 Canada Square to see how these people are doing. It looks like they are doing okay-ish, in that they are now situated on levels 39 to 42.

Canary Wharf management had to decide how to fill up the vacant space after banks began to pull out (or simply went bankrupt, like Bear Stearns and Lehman Brothers) and they decided to divide the space into pieces and rent the space to fintech companies, since they are growing very fast.

It would not be a surprise to see many fintechs in Canary Wharf in the near future.

Even though Brexit looks ugly and frightening right now, a nation with great negotiation skills demonstrated over the course of centuries makes me feel quite comfortable.

With a proposal to reduce the corporate tax level to 15 per cent and possible personal income tax reductions, it would be very attractive for many people to stay or even to return to the UK.

London is really unique and it has its own vibe compared with the rest of the country. Sometimes I think that it would make sense for London to have a special zone status within the rest of the UK.

From my point of view, the biggest challenge ahead for the UK is how to educate the uneducated and low skilled parents to make sure their children are part of the country’s future success. Access to education in the UK is free for everyone, but unfortunately a proper education is only enjoyed by a fraction of the population.

Last but not least, I paid visits to many book stores, including my favourite, Daunt Books at Marylebone, and bought some more books. These are Prisoners of Geography by Tim Marshall, Germany by Neil MacGregor, This is London by Ben Judah, An Intelligent Person’s Guide to Education by Tony Little and When Breath becomes Air by Paul Kalanithi.

I have already read Prisoners of Geography and I really like the book. I will be writing a book review on it in the coming weeks.

If you are looking for a restaurant tip, go to Oka for sushi on Kings Road.

I may still be biased but, having travelled to 53 countries now, nothing can really beat London.

All the best from Singapore,

Sukru Haskan
Twitter: @sukru_haskan

Great Article to Global Elites by Martin Wolf

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Martin Wolf, chief economics commentator at the Financial Times, published an article titled ‘Global elites must heed the warning of populist rage’ last week, and I want to draw your attention to this great article this week in my blog.

Mr. Wolf wants to bring attention to the rising populist politicians around the globe and the possible effects on global elites.

“If governing elites continue to fail to offer convincing cures, they might soon be swept away and, with them, the effort to marry democratic self-government with an open and co-operative world order.”

Income inequality in 2016 has reached its highest since World War II. Stagnant incomes, if not declining purchasing power parity in the developed and developing world, have reached new highs. This most threatens the global elites: they have continued to ignore it to date, but a possible shift in the world order will affect them most.

“McKinsey has examined personal satisfaction through a survey of 6,000 French, British and Americans. The consultants found that satisfaction depended more on whether people were advancing relative to others like them in the past than whether they were improving relative to those better off than themselves today. Thus people preferred becoming better off, even if they were not catching up with contemporaries better off still. Stagnant incomes bother people more than rising inequality.”

If your parents were farmers 50 years ago and you decided to become a farmer, you would very likely be worse off in 2020. If your father was an army officer during World War II and you are an army officer in 2016, you are likely to be very much less significant in 2016 compared to your father. Even if your father was a banker in the 1980s and 1990s and you are a banker now, very likely you will not have his standard of life either.

So how can we create a system where the children of such parents not only work to survive, but also to excel and grow with the same amount of effort and input that their parents made?

My answer is simply by allowing everyone access to a high quality, updated and non-prejudiced education system.

You have to do something different to do better than your parents, and access to high quality education is the key to grab that chance to improve.

“Citizenship of their nations is the most valuable asset owned by most people in wealthy countries. They will resent sharing this with outsiders. Britain’s vote to leave the EU was a warning.”

This is exactly what happens when you cannot improve your standards beyond those of your parents: you start blaming immigrants or other external factors such as globalisation for your stagnant income, and your biggest commodity becomes your passport.

The UK vote to leave the EU is one thing, but I personally see the increasing popularity of Marine Le Pen and her equivalents in other countries as the biggest threat to stability and peace in the world.

“Accelerate economic growth and improve opportunities. Part of the answer is stronger support for aggregate demand, particularly in the Eurozone. But it is also essential to promote investment and innovation. It may be impossible to transform economic prospects. But higher minimum wages and generous tax credits for working people are effective tools for raising incomes at the bottom of the distribution.”

I don’t really agree with Mr. Wolf on the higher minimum wage and generous tax credits, but it is at least an offer to partially solve the problems. But it is a very short term solution.

My solution instead of offering a higher minimum wage would be tax credits and tax cuts to channel those means to grant everyone access to the best available education in the country.

This will not solve the short term problems, but it will certainly solve the long term ones.

Martin Wolf finishes his article by gently (!) warning us: “Our civilisation itself is at stake.”

Indeed, it is.

Especially for those that have the most comfort right now…

You can read the full article here: https://next.ft.com/content/54f0f5c6-4d05-11e6-88c5 db83e98a590a

All the best from Singapore.

Sukru Haskan
Twitter: @sukru_haskan

Cannes and South of France: What would I do?

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I love the South of France and I have been going there for my summer holidays for the last ten years or so. Unfortunately, this year is an exception since my wife has won the battle and we are going somewhere different (Italy!)

A lot of people who know me well keep asking me to give them some tips for their trip to the South of France, so I thought it would be beneficial to write this post.

Since I always use Cannes as the centre of my summer trip, I prefer to stay at the Eden Hotel, a four star hotel just a street away from La Croisette and a relatively cheap option. It is located on Rue d’Antibes.

Alternatively, I would stay at the Martinez Hotel on La Croisette. It is definitely the more expensive choice, but you can sometimes find good prices depending on when you book. Martinez has a great beach club called ZPlage, where a drink at sunset is another must!

I booked a house last year for a week on La Croisette, which was also great since it gave us a real sensation of how we would feel if we were to live there. It is definitely the best option if you are going with your extended family.

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Cannes is a great town with many restaurants, my favourite being Astoux et Brun, towards Le Suquet. It is a restaurant famous for its seafood menu, particularly the oysters.

You really should have a coffee and ice cream at the Carlton Terrace, and you should visit the old town (Le Suquet) where natives party.

Another favourite restaurant is Le Caveau 30, which is also famous for its seafood. The crowd here is mostly over 40 and very chic: that’s exactly you want from Cannes during your holidays!

If you fancy a two-starred Michelin restaurant, you should try La Palme d’Or which is under the Martinez Hotel.

La Table du Chef is one of the hidden spots of Cannes. It is a small restaurant, and the menu is constantly changing.

Towns in the region

There are many places to travel around the South of France and one of them is the village of Èze. This beautiful village is almost a border village between France and Monaco.

I would recommend taking a walk around the village and visiting Château de La Chèvre d’Or, which has a magnificent view and a Michelin-starred restaurant. Even if you don’t feel like eating anything, you should go and drink a beer in front of the breathtaking view.

Saint Jean Cap Ferrat is another main place to visit. Paloma Beach is a must go, with a great beach restaurant. If you fancy touring a villa in this beautiful town, you should consider visiting Villa Ephrussi de Rothschild.

Hotel du Cap at Eden Roc is another place to stop by and drink champagne, or simply tea.

Plage de Passable and Plage de la Mala at Cap d’Ail just near Monaco are my favourite beaches. If you need to choose just one, I would go for Cap d’Ail.

Honestly, St Tropez is not my favourite since it is a rip-off and there are too many people. I personally have always found the St Tropez crowd irrelevant. If you really want to see St Tropez, I would go to Club 55 to party for a day in the beach club.

Monaco is good for a day trip, but I would not recommend that you stay there. If you want to party in Monaco, Jimmy’s and Buda Bar are the most famous options. If you really want to stay in Monaco, Le Meridien is relatively cheap and a good option by the beach.

 I was planning my wedding back in 2012 in the South of France, but it did not happen there. Since I was planning, I would recommend the Château de La Chèvre d’Or as the expensive option and the Château de Robernier as the more economical choice.

If you have more time and a car, I would also recommend that you visit Grasse, the perfume capital of the world. This small elegant village is a great place to see and you should visit the factory at Fragonard to get a sense of how perfumes are produced. You can also buy discounted perfumes at the factory shop.

Generally speaking, the train (TGV) that runs along the coast to Monaco is good and convenient. The only problem is the waiting time between the two trains, which may be longer than 30 minutes. Make sure you get your ticket and time stamped—otherwise, even with a ticket, you may be considered a free rider!

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After going to Cannes for many years, this town is the main reason that I started learning French from scratch in 2010.

Je rêve d’acheter une maison à Cannes!

P.S. If you speak to a native French person, they will tell you to avoid Cannes and recommend some other place in the south. With all respect, you can ignore them! 🙂

Best from Singapore.

Sukru Haskan
Twitter: @sukru_haskan

Misallocation of resources and sharing economy

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The world’s population is fast approaching 7.5 billion and many people are still suffering from hunger and a lack of basic needs such as clothing, sanitation and housing.

I always reject the idea that the world’s resources are not enough to feed that many people. We are currently suffering purely from a misallocation of resources, rather than a lack of resources.

According to the UK government, 3,569 people slept rough on any one night in England in 2015. This number is over double that counted in 2010. In addition, 12,330 households applied to their local authority for homelessness assistance in 2014/15, a 26 per cent rise since 2009/10.

  • How many houses in London alone are kept empty most of the year simply because their owners are using them only ten days a year on average?

According to an article published in The Guardian, in London alone there are generally 22,000 empty houses. There are thought to be 700,000 long-term empty houses in the UK.

The World Food Programme, the world’s largest humanitarian agency fighting hunger worldwide, estimates that 795 million people in the world do not have enough food to lead a healthy active lifestyle.

  • How often do you see seeing people throwing away food?

The EU Commission reports that in the EU alone, around 88 million tonnes of food are wasted annually, with associated costs estimated at 143 billion euros.

Transportation is the main source of carbon emissions and we are not good at managing that, either. Business Insider reports that nearly 20 per cent of seats are empty on US flights. According to the same report, the figure is no better in China, Brazil or Japan.

The same challenge applies to cars.

  • How often do you see a single person in a car in which five people can fit comfortably?

No offence to ladies, but this question especially goes to them:

  • How many clothes/shoes do you have in your wardrobe that you haven’t worn for more than six months?

I am not a utopian and I understand that we cannot really achieve full efficiency and allocate 100 per cent of resources—but we can improve a lot.

And that’s where the sharing economy comes into effect.

Uber, AirBnb, Vestier Collective, Carousell, and BookCrossing are some of the sharing economies’ innovative and disruptive companies.

We have to start sharing our unused resources and there is a financial incentive for us to use them too, since you can make money out of your unused resources.

Interestingly, and maybe unsurprisingly, many governments around the world are against these disruptive companies even though the total benefit of using them is greater than the cost element for society.

If not voluntarily, through these companies we should promote the inclusion of idle resources for the common use of human beings.

My main worry for my life span and that of my child is another world war.

Since the inequality level is increasing to levels comparable with those of the world wars and masses are unable to meet their basic needs, this will create much bigger problems than we currently have unless we find an immediate solution.

We represent a very lucky portion of the world population that can travel, read and enjoy living. If you are not interested for other communities, you should start thinking of eliminating this misallocation of resources for your own sake.

All the best from Singapore.

Twitter: @sukru_haskan
Sukru Haskan