When you find a credit card with a low interest rate, rewards, zero maintenance fees and use it responsibly, it can do good things.
In addition to establishing valuable credit history, it can also provide purchase protection that cash just won't. But, no matter how great your card performs, there are three features it likely offers that you may be better off to ignore.
Convenience Cheques
You've probably gotten a blank cheque or two in the mail from your credit card company, touting benefits like "cash whenever you need it", and "a great way to cover larger expenses". Known as "convenience cheques", these are usually nothing more than a cash advance in disguise. And not only is the cash far from free, it's even more expensive than meets the eye.
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• Top 6 Mindless Money Wasters
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Interest rates on cash advances have always been hefty, reaching as high as 25 per cent in some cases. But overall costs on these transactions are climbing even higher as credit issuers seek to make profits in areas not affected by the 2010 credit card consumer protection laws.
Not only are the interest rates rising, but many now come with minimum flat-fee charges, regardless of the transaction amount. On top of that, caps that were once in place to keep fees to a certain level have been removed.
Another critical component that can make convenience cheques costly is the timing policy. In most cases, the meter starts running as soon as you use the cheque. So, where you can charge purchases on a credit card and avoid interest payments if you pay the balance in full during the grace period, there is no such option with a cash advance cheque.
ATM Withdrawals
You may have noticed that shortly after you open a credit card, the issuer makes certain to send you a nifty pin number, so that you can visit any ATM to withdraw cash with your credit card. After all, it's just like using a debit card to get cash from your account, right? Hardly. While the process may feel the same to you, it is far from the traditional act of withdrawing money.
The reason to avoid credit card cash advances is generally common sense. If you need to pull cash from your credit card, the odds are pretty good that you don't have the actual cash flow available at the time of purchase. In turn, you'll pay interest on the money until you can pay off the purchase balance.
But, even if you do intend to pay the balance in full and just need quick access to cash, using the ATM Pin with your credit card will cost far more than the amount you actually withdraw. Most credit cards charge a flat cash advance fee, regardless of the transaction amount. So, if you withdraw $20, you could be charged half of that, just for using the service offered by your creditor. On top of that, the institution who owns the ATM will take their cut and charge you for the use of their machine.
Balance Protection
Also known as credit card insurance, this service is offered by credit card issuers to provide a safety net in the event of involuntary job loss, disability, critical illness or accidental death & dismemberment. For some it may be helpful, particularly if you could not maintain your minimum payments should one of the above happen. But, you do pay for this service based on the balance you carry.
That said, it's important to bear in mind that the insurance doesn't cover your debt with the exception of credit life protection. It covers your minimum payments for the term of the contract. And thanks to compounding interest, if you do file a claim, your balance could actually be higher at the completion of the protection contract.
The Bottom Line
There are plenty of good credit cards out there, when used responsibly. But, it's important to understand the implications of the many features they offer so that you don't fall prey to unknowingly using services that could be costly.
Stephanie Christensen
Investing in Africa By Robert Powell, MarketWatch
BOSTON (MarketWatch) — If they remade the movie “Out of Africa” for investors, they might need to rename it “Into Africa.”
Consider that Ian Bremmer, author of “The End of the Free Market” and president of Eurasia Group, suggested in a recent speech that Africa, especially South Africa, offers one of the best investment opportunities in the world today.
Also consider: More than a few companies are experiencing or seeing growth opportunities in Africa. For instance, Coca-Cola /quotes/comstock/13*!ko/quotes/nls/ko (KO 61.15, +0.81, +1.34%) just reported that its growth was primarily driven by emerging markets, with volume growing 12% in the Eurasia and Africa segment.
Occidental Petroleum /quotes/comstock/13*!oxy/quotes/nls/oxy (OXY 80.97, -0.23, -0.28%) said profits rose to $1.2 billion in the third quarter, up about 28% from a year ago, in large part because of increased production volumes from, you guessed it, the Middle East/North Africa.
And Wal-Mart Stores /quotes/comstock/13*!wmt/quotes/nls/wmt (WMT 53.47, +0.15, +0.28%) is plunking $4.6 billion into Massmart, an African retailer with 290 stores, most of which are in South Africa.
It’s a trend all right. The only question now is whether it’s too late to take advantage of what’s happening.
For his part, Philippe de Pontet, a director at Eurasia Group, says Africa is largely a play on commodities, including gold, oil, coal, copper, bauxite, platinum, palladium, at the moment. But that’s not the only story, he said. Beverage sales are up and telecommunications, as in cell phones, are hot. “In a continent without reliable landlines, mobile phone technology can be a game changer,” he said.
Others, too, can rattle off reasons why it’s not too late to place a bet on Africa. Vested interest aside, Larry Seruma, chief investment officer of Nile Capital Management, which manages the Nile Pan Africa fund, the first actively managed, U.S.-based mutual fund, recently issued his reasons for investing in Africa.
One, unlike, Brazil, India, Russia and China, and perhaps other countries, Africa is truly a ground-floor opportunity, Seruma wrote in his report. Two, the African indices are not highly correlated with the S&P 500. Three, strong growth is expected but valuations are still attractive. According to projections from the World Bank, nine of the 15 countries in the world with the highest rate of five-year economic growth are in Africa but price/earnings ratios are in some cases one-half that of the S&P 500, Seruma said.
What’s more, there are more than a few well-known companies based in Africa that are profitable, including South African Breweries, a subsidiary of SABMiller /quotes/comstock/23s!a:sab (UK:SAB 2,058, 0.00, 0.00%) . Demand for commodities is growing and the continent is increasingly less violent, Seruma wrote. And then add to his laundry list the fact that China and other countries are pouring money into Africa, infrastructure spending is on the rise, sovereign debt is low as the demographics tilt young.
How to make the play
So what are some ways to take advantage of this possible opportunity?
One route would be to invest in the multinationals that already have operations in Africa, such as Nestlé SA /quotes/comstock/06p!nesn (CH:NESN 52.10, 0.00, 0.00%) and Unilever PLC /quotes/comstock/13*!ul/quotes/nls/ul (UL 28.56, +0.29, +1.03%) . Or you might consider firms setting up operations be it through acquisitions or other means, including HSBC Holdings PLC /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 52.34, +0.52, +1.00%) , which is taking a stake in South Africa’s NedBank Group Ltd., or Japan’s Nippon Telegraph and Telephone Corp. /quotes/comstock/13*!ntt/quotes/nls/ntt (NTT 22.71, +0.05, +0.22%) , which is buying Dimension Data PLC, a South African information-technology concern.
The safer and perhaps more direct route would be to invest in ETFs or mutual funds. We’ve already mentioned Nile Pan Africa fund /quotes/comstock/10r!nafax (NAFAX 11.63, -0.02, -0.17%) , which is a relatively new fund with less than $2 million in assets and a hefty front-end sales charge. There’s also Templeton Frontier Markets /quotes/comstock/10r!tfmax (TFMAX 15.56, -0.10, -0.64%) , which isn’t a pure play on Africa.
And then there are at least three exchanged-traded funds to consider, according to Michael Rawson, a chartered financial analyst and ETF analyst with Morningstar, Inc.: the Market Vectors Africa Index ETF /quotes/comstock/13*!afk/quotes/nls/afk (AFK 33.31, +0.30, +0.91%) , the iShares MSCI South Africa Index /quotes/comstock/13*!eza/quotes/nls/eza (EZA 68.30, +0.63, +0.93%) and SPDR S&P Emerging Middle East & Africa /quotes/comstock/13*!gaf/quotes/nls/gaf (GAF 72.72, +0.70, +0.97%) (GAF).
According to Rawson, EZA is by far the most liquid with $700 million in assets under management. The fund’s top holdings include Mtn Group Limited, a South Africa-based telecommunications company that offers cellular network access with its core operations in 21 countries in Africa and the Middle East; Sasol Ltd., an energy firm based in South Africa; Standard Bank Group Ltd, one of South Africa’s four big banks; Naspers Ltd., a media group primarily in South Africa; and AngloGold Ashanti Limited /quotes/comstock/13*!au/quotes/nls/au (AU 46.12, +0.87, +1.92%) , one of the world’s largest gold producers.
“AFK is the least liquid, but it still has decent liquidity with $79 million in assets under management and $500,000 trading daily on average,” said Rawson. “It is also the most diverse in terms of its country allocation, in part because it includes non-African companies that have significant business in Africa, such as Tullow Oil and Old Mutual PLC.”
And that, according to Rawson, results in about 25% of the fund invested in stocks headquartered outside of Africa. Other top holdings include: Orascom Construction Industries, Commercial International Bank Ltd., Nigerian Breweries PLC, and Mobile Telecommunication Co. Of note, AFK follows the Dow Jones Africa Titans 50 index, which is up 14% year to date. AFK is up 16% year to date.
GAF, meanwhile, is a bit like EZA. Its top holdings are Naspers Ltd., Mtn Group Limited, Sasol Ltd., AngloGold Ashanti Limited, and Standard Bank Group Ltd.
There’s also another play on Africa, according to Rawson. It’s a currency ETF focused on the Rand /quotes/comstock/13*!szr/quotes/nls/szr (SZR 31.34, +0.32, +1.03%) .
To be sure, you want to be ahead of the trends when it comes to investing. Then again, this is one case where it might be worth hopping on the train since it’s not too far from the station.
Robert Powell is editor of Retirement Weekly, published by MarketWatch. Learn more about Retirement Weekly here.Follow his tweets here.
Robert Powell has been a journalist covering personal finance issues for more than 20 years, writing and editing for publications such as The Wall Street Journal,....Read more from marketwatch »»»
Consider that Ian Bremmer, author of “The End of the Free Market” and president of Eurasia Group, suggested in a recent speech that Africa, especially South Africa, offers one of the best investment opportunities in the world today.
Also consider: More than a few companies are experiencing or seeing growth opportunities in Africa. For instance, Coca-Cola /quotes/comstock/13*!ko/quotes/nls/ko (KO 61.15, +0.81, +1.34%) just reported that its growth was primarily driven by emerging markets, with volume growing 12% in the Eurasia and Africa segment.
Occidental Petroleum /quotes/comstock/13*!oxy/quotes/nls/oxy (OXY 80.97, -0.23, -0.28%) said profits rose to $1.2 billion in the third quarter, up about 28% from a year ago, in large part because of increased production volumes from, you guessed it, the Middle East/North Africa.
And Wal-Mart Stores /quotes/comstock/13*!wmt/quotes/nls/wmt (WMT 53.47, +0.15, +0.28%) is plunking $4.6 billion into Massmart, an African retailer with 290 stores, most of which are in South Africa.
It’s a trend all right. The only question now is whether it’s too late to take advantage of what’s happening.
For his part, Philippe de Pontet, a director at Eurasia Group, says Africa is largely a play on commodities, including gold, oil, coal, copper, bauxite, platinum, palladium, at the moment. But that’s not the only story, he said. Beverage sales are up and telecommunications, as in cell phones, are hot. “In a continent without reliable landlines, mobile phone technology can be a game changer,” he said.
Others, too, can rattle off reasons why it’s not too late to place a bet on Africa. Vested interest aside, Larry Seruma, chief investment officer of Nile Capital Management, which manages the Nile Pan Africa fund, the first actively managed, U.S.-based mutual fund, recently issued his reasons for investing in Africa.
One, unlike, Brazil, India, Russia and China, and perhaps other countries, Africa is truly a ground-floor opportunity, Seruma wrote in his report. Two, the African indices are not highly correlated with the S&P 500. Three, strong growth is expected but valuations are still attractive. According to projections from the World Bank, nine of the 15 countries in the world with the highest rate of five-year economic growth are in Africa but price/earnings ratios are in some cases one-half that of the S&P 500, Seruma said.
What’s more, there are more than a few well-known companies based in Africa that are profitable, including South African Breweries, a subsidiary of SABMiller /quotes/comstock/23s!a:sab (UK:SAB 2,058, 0.00, 0.00%) . Demand for commodities is growing and the continent is increasingly less violent, Seruma wrote. And then add to his laundry list the fact that China and other countries are pouring money into Africa, infrastructure spending is on the rise, sovereign debt is low as the demographics tilt young.
How to make the play
So what are some ways to take advantage of this possible opportunity?
One route would be to invest in the multinationals that already have operations in Africa, such as Nestlé SA /quotes/comstock/06p!nesn (CH:NESN 52.10, 0.00, 0.00%) and Unilever PLC /quotes/comstock/13*!ul/quotes/nls/ul (UL 28.56, +0.29, +1.03%) . Or you might consider firms setting up operations be it through acquisitions or other means, including HSBC Holdings PLC /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 52.34, +0.52, +1.00%) , which is taking a stake in South Africa’s NedBank Group Ltd., or Japan’s Nippon Telegraph and Telephone Corp. /quotes/comstock/13*!ntt/quotes/nls/ntt (NTT 22.71, +0.05, +0.22%) , which is buying Dimension Data PLC, a South African information-technology concern.
The safer and perhaps more direct route would be to invest in ETFs or mutual funds. We’ve already mentioned Nile Pan Africa fund /quotes/comstock/10r!nafax (NAFAX 11.63, -0.02, -0.17%) , which is a relatively new fund with less than $2 million in assets and a hefty front-end sales charge. There’s also Templeton Frontier Markets /quotes/comstock/10r!tfmax (TFMAX 15.56, -0.10, -0.64%) , which isn’t a pure play on Africa.
And then there are at least three exchanged-traded funds to consider, according to Michael Rawson, a chartered financial analyst and ETF analyst with Morningstar, Inc.: the Market Vectors Africa Index ETF /quotes/comstock/13*!afk/quotes/nls/afk (AFK 33.31, +0.30, +0.91%) , the iShares MSCI South Africa Index /quotes/comstock/13*!eza/quotes/nls/eza (EZA 68.30, +0.63, +0.93%) and SPDR S&P Emerging Middle East & Africa /quotes/comstock/13*!gaf/quotes/nls/gaf (GAF 72.72, +0.70, +0.97%) (GAF).
According to Rawson, EZA is by far the most liquid with $700 million in assets under management. The fund’s top holdings include Mtn Group Limited, a South Africa-based telecommunications company that offers cellular network access with its core operations in 21 countries in Africa and the Middle East; Sasol Ltd., an energy firm based in South Africa; Standard Bank Group Ltd, one of South Africa’s four big banks; Naspers Ltd., a media group primarily in South Africa; and AngloGold Ashanti Limited /quotes/comstock/13*!au/quotes/nls/au (AU 46.12, +0.87, +1.92%) , one of the world’s largest gold producers.
“AFK is the least liquid, but it still has decent liquidity with $79 million in assets under management and $500,000 trading daily on average,” said Rawson. “It is also the most diverse in terms of its country allocation, in part because it includes non-African companies that have significant business in Africa, such as Tullow Oil and Old Mutual PLC.”
And that, according to Rawson, results in about 25% of the fund invested in stocks headquartered outside of Africa. Other top holdings include: Orascom Construction Industries, Commercial International Bank Ltd., Nigerian Breweries PLC, and Mobile Telecommunication Co. Of note, AFK follows the Dow Jones Africa Titans 50 index, which is up 14% year to date. AFK is up 16% year to date.
GAF, meanwhile, is a bit like EZA. Its top holdings are Naspers Ltd., Mtn Group Limited, Sasol Ltd., AngloGold Ashanti Limited, and Standard Bank Group Ltd.
There’s also another play on Africa, according to Rawson. It’s a currency ETF focused on the Rand /quotes/comstock/13*!szr/quotes/nls/szr (SZR 31.34, +0.32, +1.03%) .
To be sure, you want to be ahead of the trends when it comes to investing. Then again, this is one case where it might be worth hopping on the train since it’s not too far from the station.
Robert Powell is editor of Retirement Weekly, published by MarketWatch. Learn more about Retirement Weekly here.Follow his tweets here.
Robert Powell has been a journalist covering personal finance issues for more than 20 years, writing and editing for publications such as The Wall Street Journal,....Read more from marketwatch »»»
7 cities that are about to sink
Many of us take for granted the notion that all of our beloved cities will be around for centuries to come. However, several cities around the world seem to be vying for the title of "The Next Atlantis." Shaky foundations and encroaching seas are posing significant threats to some of the world's largest and most beloved cities. When planning your next vacation, keep in mind that some of the world's favorite destinations have a bit of a ticking clock on them. Here are seven major cities that are preparing to take the plunge.
7. Bangkok, Thailand
Thailand's capital is sinking -- and fast. However, unlike other cities on our list, a shoddy foundation isn't necessarily to blame. Resting on the Chao Phraya River -- which flows into the Bay of Bangkok about 30 miles south of the city center - this colossal settlement is more likely to drown than sink. Experts now say that this mouthwatering foodie destination -- along with the dozens of beautiful temples found here -- may be under water in as few as seven years.
According to Thai scientist Dr. Ajong Chumsai na Ayudhya, the fate of Bangkok can best be explained by global warming. Asia News Network reports that "Ajong said humans were mainly to blame for such disasters because they were using up natural resources, chopping down forests and kept emitting greenhouse gases with no regard for the future." Ajong also says that changes in the earth's overall climate will lead to more severe tsunamis in the Gulf of Thailand that will have extremely negative effects on the southern portion of the country. With less than a decade to spare, time might be running out for a trip to Thailand's most popular tourist getaway.
6. New York City, New York
If you've never seen the Statue of Liberty or been dazzled by the lights of Times Square, now's the time. Much like its Thai comrade, America's most densely populated city is doomed to suffer the effects of global warming. Sitting at the mouth of the Hudson River where it flows into the Atlantic Ocean, this concrete jungle will soon be at a much higher risk of damage from rising sea levels and imposing tropical storms. And unlike the ones bobbing around in a barrel on Halloween, this Big Apple will not float.
Science Daily reports that the sea levels in the New York City area are expected to rise about twice as quickly as sea levels around the world, meaning that Gotham will take the plunge well before the rest of the United States. However, Science Daily says that flooding is just one of the symptoms New York will suffer: "The submersion of low-lying land, erosion of beaches, conversion of wetlands to open water and increase in the salinity of estuaries all can affect ecosystems and damage existing coastal development." Not only will the Empire City be transformed into a wading pool, but it will slowly be washed out to sea.
5. Houston, Texas
Houston, we really do have a problem: soon NASA's Visitor's Center won't just be stuck on Earth, but in it as well. The city that Fodor's deems Texas' most cosmopolitan is struggling to stay above ground. Built on a gold mine of natural resources and the determination to flourish, Space City has become a major energy hub and the taking-off point for U.S. space exploration. However, America's fourth-largest city was built on a foundation of sand. Literally.
Houston sits on the loosely packed banks of four major bayous that empty into the Gulf of Mexico. For years, residents of Houston relied on groundwater to fulfill their needs, but the mass amounts of extraction needed to supply the ever-expanding city weakened Houston's foothold. Oil extraction was also damaging to the foundation, as was continuous sprawl, not to mention the 300 or so active fault lines that run beneath Houston's streets and skyscrapers. Now, many parts of this metropolis -- specifically Jersey Village to the northwest -- are sinking by as much as two inches per year, according to Science Daily. Experts note that while sinking has slowed significantly in areas that have stopped extracting ground water, a permanent solution to Houston's problem has yet to be found. If Houston is on your list of cities to see, you'd best prepare soon for take-off.
4. Shanghai, China
Things aren't looking good for Shanghai, either. Located on China's coast, this sprawling city was built on swamplands surrounding the mouth of the Yangze River. Originally a small fishing village, Shanghai began to draw more and more residents in the mid-19th century. Modest homes were replaced by breathtaking skyscrapers (not to mention some of the best shopping venues in Asia), and Shanghai soon became the most densely populated city in the world, housing over 20 million people by 2001. The city was handling rapid expansion just fine until the early 20th century, when wells became a major source of water and the underlying sediment deposit was disturbed. According to PBS, Shanghai sank roughly eight feet between 1921 and 1965, which equals about two inches per year. The city still continues to drop at a rate of about half an inch per year.
According to experts, not much can be done to keep Shanghai above ground -- the city is simply too heavy for its foundation. However, in an effort to slow the sinking process, all new high-rise buildings must be built with deep concrete piles to help support their weight. If you have any interest in seeing the architecture for which Shanghai is both famous and floundering, don't wait too long.
3. New Orleans, Louisiana
When colonists chose New Orleans as the capital of French Louisiana, they did so because of its inland locale. However, any land protection the city had has been washed away, making America's favorite place to celebrate (approximately half of which sits at or below sea level) even more prone to tropical storms.
It wasn't until after Hurricane Katrina that experts really took note of New Orleans' downhill situation. In 2006, National Geographic reported that the city sank about a quarter of an inch per year in the years leading up to Hurricane Katrina, while the levees designed to protect the city from the Gulf sank at four or five times that rate, exacerbating the long-term effects of the storm. Experts say that not much can be done to save the Big Easy. According to a report issued in 2009 by the National Academy of Engineering and the National Research Council, "Levees and floodwalls surrounding New Orleans ... cannot provide absolute protection against overtopping or failure in extreme events. ... If relocation is not feasible, an alternative would be to elevate the first floor of buildings to at least the 100-year flood level." Just goes to show that there's never a time like the present to don your Mardi Gras mask and head south to Bourbon Street.
2. Venice, Italy
It's been several hundred years since the Venetians decided to construct the towering St. Mark's Basilica and sprawling Piazza San Marco atop submerged wooden planks and forgo roads in favor of canals. Back in the day, the city's geography made sense: Direct access to the sea was necessary in order for Venitians to maintain control of commerce on the Mediterranean Sea. But the dig for fresh water proved to have a negative impact on this fish-shaped city: According to The Christian Science Monitor, Venice has sunk almost a foot over the past 100 years. To make things worse, water levels in the Mediterranean Sea are also rising. Although acqua alta (high water) has plagued this ornate tourist hotspot for centuries, flooding frequency has increased dramatically in recent years. Justin Demetri of LifeInItaly.com notes that Venice now experiences over 60 bouts of acqua alta each year.
Preserving Venice has been a priority of the Italian Government for about 30 years. Several billion euros have been dedicated to a flood defense system, the MOSE Project, which is expected to be completed in 2011 or 2012. However, some experts claim that the only way to save the city is to move it altogether. Either way, if you've always dreamed of a gondola ride through the Bride of the Sea, you had better do so soon with galoshes in tow.
1. Mexico City, Mexico
Resting on a fickle lake bed in the Valley of Mexico, Mexico City has been facing the possibility of going under for centuries. However, according to geologists, there are parts of this massive metropolis that are sinking by as much as eight inches per year. Because of a lack of sufficient drainage, the city was heavily prone to flooding from groundwater flowing down from the surrounding mountains, leading to the construction of a vast underground drainage system. But over-extraction of groundwater from the Texcoco lake bed during the 20th century has caused the city's clay foundation to crumble, forcing the metropolis to sink deeper into the ground. And as the city sinks, so does the drainage system, forcing waste water to reverse its course and head back into the city. According to AZCentral.com, Mexico City's drainage capacity has decreased by 30 per cent since 1975.
There are several projects underway to keep this sinking city afloat, including a 23-foot-wide (US$1.1 billion) Eastern Drainage Tunnel that will deposit waste water about 40 miles north of the city. The tunnel should be completed by 2012. Work is also being done to help save the architectural gems -- like the popular Metropolitan Cathedral -- found in the Historic District, which are one of the city's major tourist draws. But despite best efforts, engineers say that there is no way to keep Mexico City from sinking.
7. Bangkok, Thailand
Thailand's capital is sinking -- and fast. However, unlike other cities on our list, a shoddy foundation isn't necessarily to blame. Resting on the Chao Phraya River -- which flows into the Bay of Bangkok about 30 miles south of the city center - this colossal settlement is more likely to drown than sink. Experts now say that this mouthwatering foodie destination -- along with the dozens of beautiful temples found here -- may be under water in as few as seven years.
According to Thai scientist Dr. Ajong Chumsai na Ayudhya, the fate of Bangkok can best be explained by global warming. Asia News Network reports that "Ajong said humans were mainly to blame for such disasters because they were using up natural resources, chopping down forests and kept emitting greenhouse gases with no regard for the future." Ajong also says that changes in the earth's overall climate will lead to more severe tsunamis in the Gulf of Thailand that will have extremely negative effects on the southern portion of the country. With less than a decade to spare, time might be running out for a trip to Thailand's most popular tourist getaway.
6. New York City, New York
If you've never seen the Statue of Liberty or been dazzled by the lights of Times Square, now's the time. Much like its Thai comrade, America's most densely populated city is doomed to suffer the effects of global warming. Sitting at the mouth of the Hudson River where it flows into the Atlantic Ocean, this concrete jungle will soon be at a much higher risk of damage from rising sea levels and imposing tropical storms. And unlike the ones bobbing around in a barrel on Halloween, this Big Apple will not float.
Science Daily reports that the sea levels in the New York City area are expected to rise about twice as quickly as sea levels around the world, meaning that Gotham will take the plunge well before the rest of the United States. However, Science Daily says that flooding is just one of the symptoms New York will suffer: "The submersion of low-lying land, erosion of beaches, conversion of wetlands to open water and increase in the salinity of estuaries all can affect ecosystems and damage existing coastal development." Not only will the Empire City be transformed into a wading pool, but it will slowly be washed out to sea.
5. Houston, Texas
Houston, we really do have a problem: soon NASA's Visitor's Center won't just be stuck on Earth, but in it as well. The city that Fodor's deems Texas' most cosmopolitan is struggling to stay above ground. Built on a gold mine of natural resources and the determination to flourish, Space City has become a major energy hub and the taking-off point for U.S. space exploration. However, America's fourth-largest city was built on a foundation of sand. Literally.
Houston sits on the loosely packed banks of four major bayous that empty into the Gulf of Mexico. For years, residents of Houston relied on groundwater to fulfill their needs, but the mass amounts of extraction needed to supply the ever-expanding city weakened Houston's foothold. Oil extraction was also damaging to the foundation, as was continuous sprawl, not to mention the 300 or so active fault lines that run beneath Houston's streets and skyscrapers. Now, many parts of this metropolis -- specifically Jersey Village to the northwest -- are sinking by as much as two inches per year, according to Science Daily. Experts note that while sinking has slowed significantly in areas that have stopped extracting ground water, a permanent solution to Houston's problem has yet to be found. If Houston is on your list of cities to see, you'd best prepare soon for take-off.
4. Shanghai, China
Things aren't looking good for Shanghai, either. Located on China's coast, this sprawling city was built on swamplands surrounding the mouth of the Yangze River. Originally a small fishing village, Shanghai began to draw more and more residents in the mid-19th century. Modest homes were replaced by breathtaking skyscrapers (not to mention some of the best shopping venues in Asia), and Shanghai soon became the most densely populated city in the world, housing over 20 million people by 2001. The city was handling rapid expansion just fine until the early 20th century, when wells became a major source of water and the underlying sediment deposit was disturbed. According to PBS, Shanghai sank roughly eight feet between 1921 and 1965, which equals about two inches per year. The city still continues to drop at a rate of about half an inch per year.
According to experts, not much can be done to keep Shanghai above ground -- the city is simply too heavy for its foundation. However, in an effort to slow the sinking process, all new high-rise buildings must be built with deep concrete piles to help support their weight. If you have any interest in seeing the architecture for which Shanghai is both famous and floundering, don't wait too long.
3. New Orleans, Louisiana
When colonists chose New Orleans as the capital of French Louisiana, they did so because of its inland locale. However, any land protection the city had has been washed away, making America's favorite place to celebrate (approximately half of which sits at or below sea level) even more prone to tropical storms.
It wasn't until after Hurricane Katrina that experts really took note of New Orleans' downhill situation. In 2006, National Geographic reported that the city sank about a quarter of an inch per year in the years leading up to Hurricane Katrina, while the levees designed to protect the city from the Gulf sank at four or five times that rate, exacerbating the long-term effects of the storm. Experts say that not much can be done to save the Big Easy. According to a report issued in 2009 by the National Academy of Engineering and the National Research Council, "Levees and floodwalls surrounding New Orleans ... cannot provide absolute protection against overtopping or failure in extreme events. ... If relocation is not feasible, an alternative would be to elevate the first floor of buildings to at least the 100-year flood level." Just goes to show that there's never a time like the present to don your Mardi Gras mask and head south to Bourbon Street.
2. Venice, Italy
It's been several hundred years since the Venetians decided to construct the towering St. Mark's Basilica and sprawling Piazza San Marco atop submerged wooden planks and forgo roads in favor of canals. Back in the day, the city's geography made sense: Direct access to the sea was necessary in order for Venitians to maintain control of commerce on the Mediterranean Sea. But the dig for fresh water proved to have a negative impact on this fish-shaped city: According to The Christian Science Monitor, Venice has sunk almost a foot over the past 100 years. To make things worse, water levels in the Mediterranean Sea are also rising. Although acqua alta (high water) has plagued this ornate tourist hotspot for centuries, flooding frequency has increased dramatically in recent years. Justin Demetri of LifeInItaly.com notes that Venice now experiences over 60 bouts of acqua alta each year.
Preserving Venice has been a priority of the Italian Government for about 30 years. Several billion euros have been dedicated to a flood defense system, the MOSE Project, which is expected to be completed in 2011 or 2012. However, some experts claim that the only way to save the city is to move it altogether. Either way, if you've always dreamed of a gondola ride through the Bride of the Sea, you had better do so soon with galoshes in tow.
1. Mexico City, Mexico
Resting on a fickle lake bed in the Valley of Mexico, Mexico City has been facing the possibility of going under for centuries. However, according to geologists, there are parts of this massive metropolis that are sinking by as much as eight inches per year. Because of a lack of sufficient drainage, the city was heavily prone to flooding from groundwater flowing down from the surrounding mountains, leading to the construction of a vast underground drainage system. But over-extraction of groundwater from the Texcoco lake bed during the 20th century has caused the city's clay foundation to crumble, forcing the metropolis to sink deeper into the ground. And as the city sinks, so does the drainage system, forcing waste water to reverse its course and head back into the city. According to AZCentral.com, Mexico City's drainage capacity has decreased by 30 per cent since 1975.
There are several projects underway to keep this sinking city afloat, including a 23-foot-wide (US$1.1 billion) Eastern Drainage Tunnel that will deposit waste water about 40 miles north of the city. The tunnel should be completed by 2012. Work is also being done to help save the architectural gems -- like the popular Metropolitan Cathedral -- found in the Historic District, which are one of the city's major tourist draws. But despite best efforts, engineers say that there is no way to keep Mexico City from sinking.
Is Chile a developed or a developing country?
According to human development, level of nutrition, communications, infraestructure, defense forces, health systems, social safety net, low levels of corruptions, standards of life, urbanisations, cleaniness of the cities, low levels of crime, democratic and stable goverment, life expectancy of its citizens, freedom of press, freedom of religion, freedom of political association, freedom of workers association, technological development, use of computers evrywhere, good and modern transport systems, turism infrastructure, solid financial banking systems, goverment wealth, and many other indexes, Chile is a developed country.
However there are a few indexes where Chile is not so developed namely income per cápita, distribution of wealth, standards of state funded primary and secondary education, research and development and respect for indigenous communities. Once these few problems are sorted out Chile will be a "perfect country" like the rest of the other developed countries. Chile is fast working in improving deficiencies and there is little doubt that soon will emerge as good as it should be and the first latinamerican country to be fully deserving of the "developed" label.
However there are a few indexes where Chile is not so developed namely income per cápita, distribution of wealth, standards of state funded primary and secondary education, research and development and respect for indigenous communities. Once these few problems are sorted out Chile will be a "perfect country" like the rest of the other developed countries. Chile is fast working in improving deficiencies and there is little doubt that soon will emerge as good as it should be and the first latinamerican country to be fully deserving of the "developed" label.
My MBA Isn’t Helping My Career By Suzanne Lucas
Dear Evil HR Lady,
About a year ago I finished my MBA. While working on my MBA, I had imagined that there would be plenty of opportunities when I graduated. Unfortunately even with an advanced degree, my two years in finance are not enough to qualify me for advanced positions. My current employer gave me a great retention bonus, yet no raise. Senior management told me that I do an outstanding job, and that they do not want to lose me. My current salary is only a couple of thousand dollars more than when I started with the company and is significantly less than what my current position was advertised for.
I get the bonus in December and am not sure that they are going to offer me the salary I have in mind. I am wondering if you can give me some tips for negotiating. Also should I be looking at other jobs so that I have firm counter offers to come back to them with? My student loans are all due and I cannot afford to pay those and pay all of my other monthly bills like my mortgage and car payment.
Sometimes companies have policies that shoot themselves in the foot. They like you–enough that they’ve said they don’t want to lose you. But, they aren’t paying you what they would pay an unknown replacement. Hmmm, perhaps they like you because you’re smart, dedicated, have a sense of loyalty to the company and are cheap.
Yeah, it’s true. Companies sometimes love their underpaid employees. They are banking on your guilt and sense of obligation to keep you from leaving. I swear, some people would rather divorce a faithful, wonderful spouse of 20 years over socks on the floor than quit a company that has underpaid and under-appreciated them for 3 years. If you’re not being treated right, you may have to leave for better treatment.
Did your company pay any part of your MBA? If so, how long do you have to work for them without having to repay the cost of tuition? How much money would you owe if you left? Don’t let yourself be held hostage at a salary $25,000 less per year than another company would pay you because of a $10,000 repayment required if you quit. If they did not pay part of your tuition, you don’t have to consider that in your decision calculus.
There are more reasons than salary to stay at a job. For one, in this economy, any job is a blessing and there are people who would love to take your place. Work-life balance is another huge one. Sure, you can make more money somewhere else, but are they going to let you work one day a week from home? Sometimes location really gets you–if you live in a less populated area, switching jobs can mean moving, and you don’t want to uproot everything for a strange new town.
You want to stay. You just want to be recognized for your new skills. Here are some things to think about.
1. What is it that you can do now that you couldn’t do before your MBA? Note that I said “do” not “know.” You may know a ton more, but does that translate into things that are helping your company? For instance, you may have studied complex international finance policies in school, but if your company deals with nothing more international than ordering Mexican food for lunch, it’s not helpful to them.
2. Why would they list a vacancy at a higher salary then you are making? What? Why am I asking you that. How in the heck should you know? Well, you need to know. Go ask. Ask straight out what it is that you are not doing that they expected someone in this position to do. Expect some sputtering. It may well be a case of stupid policy, such as not giving an existing employee more than a 10% increase.
3. Could you really make more money elsewhere? I’m sure you’re fabulous and all that, but could you really make more elsewhere? You said you only have 2 years of finance experience plus the MBA. The market is flooded now, so they may well be paying you precisely what you’re worth to them. I realize this is an unpleasant thought, and you have student loans and a mortgage and a Hostess Cupcake addiction (oh wait, that’s me) to pay for, but it’s not the job of a company to pay you what you need to live your chosen lifestyle. It’s their job to pay you in accordance with the amount you can help the business.
4. Have you asked directly for a raise? You say you got a fabulous retention bonus. Super. Your bosses may think, “Gee, weren’t we generous with that retention bonus?” and have no plans to give you a raise. They may not know that you think you deserve one. After all, they may feel like they’ve adequately compensated you for your increased skills. You need to spell it out for them.
5. Show that you are more valuable. Make a list of all the functions you do, along with a description of how you do them. If you have the chance to write a self-appraisal, now is the time to do so. Make it extremely obvious that you are underpaid. Make it extremely obvious that you are fabulous. This is not the time to be modest. Save that for dinner with the inlaws.
6. Be willing to move on. It’s a sad truth, but sometimes companies just won’t ever appreciate you until someone else wants you. Stupid, I know. But, if you’ve talked repeatedly about your undying devotion, or how you can never leave because you live across the street, they just won’t see any reason to increase your salary.
Now, on another MBA related note, as you’ve learned, 2 years experience + MBA does not equal financial goldmine. In my opinion, you need a bit more experience in order to truly take advantage of the MBA degree–and knowledge. You don’t even know what questions you should be asking at the beginning of your career. (And since you have the degree and two years of experience, I’m guessing that they were gained simultaneously, which meant you were fresh out of undergrad when you started the MBA.)
I think MBAs are great (although I admit i don’t have one), but without underlying experience, they aren’t worth nearly as much. The burden of proof that you are more valuable now than you would be without the degree lies firmly on you. Demonstrate and ask for a raise.
About a year ago I finished my MBA. While working on my MBA, I had imagined that there would be plenty of opportunities when I graduated. Unfortunately even with an advanced degree, my two years in finance are not enough to qualify me for advanced positions. My current employer gave me a great retention bonus, yet no raise. Senior management told me that I do an outstanding job, and that they do not want to lose me. My current salary is only a couple of thousand dollars more than when I started with the company and is significantly less than what my current position was advertised for.
I get the bonus in December and am not sure that they are going to offer me the salary I have in mind. I am wondering if you can give me some tips for negotiating. Also should I be looking at other jobs so that I have firm counter offers to come back to them with? My student loans are all due and I cannot afford to pay those and pay all of my other monthly bills like my mortgage and car payment.
Sometimes companies have policies that shoot themselves in the foot. They like you–enough that they’ve said they don’t want to lose you. But, they aren’t paying you what they would pay an unknown replacement. Hmmm, perhaps they like you because you’re smart, dedicated, have a sense of loyalty to the company and are cheap.
Yeah, it’s true. Companies sometimes love their underpaid employees. They are banking on your guilt and sense of obligation to keep you from leaving. I swear, some people would rather divorce a faithful, wonderful spouse of 20 years over socks on the floor than quit a company that has underpaid and under-appreciated them for 3 years. If you’re not being treated right, you may have to leave for better treatment.
Did your company pay any part of your MBA? If so, how long do you have to work for them without having to repay the cost of tuition? How much money would you owe if you left? Don’t let yourself be held hostage at a salary $25,000 less per year than another company would pay you because of a $10,000 repayment required if you quit. If they did not pay part of your tuition, you don’t have to consider that in your decision calculus.
There are more reasons than salary to stay at a job. For one, in this economy, any job is a blessing and there are people who would love to take your place. Work-life balance is another huge one. Sure, you can make more money somewhere else, but are they going to let you work one day a week from home? Sometimes location really gets you–if you live in a less populated area, switching jobs can mean moving, and you don’t want to uproot everything for a strange new town.
You want to stay. You just want to be recognized for your new skills. Here are some things to think about.
1. What is it that you can do now that you couldn’t do before your MBA? Note that I said “do” not “know.” You may know a ton more, but does that translate into things that are helping your company? For instance, you may have studied complex international finance policies in school, but if your company deals with nothing more international than ordering Mexican food for lunch, it’s not helpful to them.
2. Why would they list a vacancy at a higher salary then you are making? What? Why am I asking you that. How in the heck should you know? Well, you need to know. Go ask. Ask straight out what it is that you are not doing that they expected someone in this position to do. Expect some sputtering. It may well be a case of stupid policy, such as not giving an existing employee more than a 10% increase.
3. Could you really make more money elsewhere? I’m sure you’re fabulous and all that, but could you really make more elsewhere? You said you only have 2 years of finance experience plus the MBA. The market is flooded now, so they may well be paying you precisely what you’re worth to them. I realize this is an unpleasant thought, and you have student loans and a mortgage and a Hostess Cupcake addiction (oh wait, that’s me) to pay for, but it’s not the job of a company to pay you what you need to live your chosen lifestyle. It’s their job to pay you in accordance with the amount you can help the business.
4. Have you asked directly for a raise? You say you got a fabulous retention bonus. Super. Your bosses may think, “Gee, weren’t we generous with that retention bonus?” and have no plans to give you a raise. They may not know that you think you deserve one. After all, they may feel like they’ve adequately compensated you for your increased skills. You need to spell it out for them.
5. Show that you are more valuable. Make a list of all the functions you do, along with a description of how you do them. If you have the chance to write a self-appraisal, now is the time to do so. Make it extremely obvious that you are underpaid. Make it extremely obvious that you are fabulous. This is not the time to be modest. Save that for dinner with the inlaws.
6. Be willing to move on. It’s a sad truth, but sometimes companies just won’t ever appreciate you until someone else wants you. Stupid, I know. But, if you’ve talked repeatedly about your undying devotion, or how you can never leave because you live across the street, they just won’t see any reason to increase your salary.
Now, on another MBA related note, as you’ve learned, 2 years experience + MBA does not equal financial goldmine. In my opinion, you need a bit more experience in order to truly take advantage of the MBA degree–and knowledge. You don’t even know what questions you should be asking at the beginning of your career. (And since you have the degree and two years of experience, I’m guessing that they were gained simultaneously, which meant you were fresh out of undergrad when you started the MBA.)
I think MBAs are great (although I admit i don’t have one), but without underlying experience, they aren’t worth nearly as much. The burden of proof that you are more valuable now than you would be without the degree lies firmly on you. Demonstrate and ask for a raise.
Developing sustainable business with MBA degree
The Need for a Fresh Approach to Global Business
The recent global financial downturn exposed questions as to how to create and maintain a sustainable business in a world where dynamic market forces determine the global business environment. Business leaders and analysts are now taking time to formulate their answer to emerging financial and management needs. Some find the downturn to be a perfect opportunity to start their own business and fill the new niche markets that emerged due to the market shifts, while others opt to gain a new perspective on business strategies and solutions by getting an MBA degree.
International MBA programs ensure that business executives understand the evolving global market and can adequately and sustainably lead their organizations towards long-term prosperity. Business leaders and corporate recruiters agree that candidates with an MBA degree have an edge on the competition, and that the international MBA experience is a significant asset. Logically business school applications and investments have soared amidst the global economic crisis of 2008-2009, and they show little signs of relenting.
Access MBA Tour Brings Together Top International Business Schools and Qualified Candidates in the Middle East
The Access MBA Tour organizes face-to-face meetings between experienced professionals with top global business schools. The One-to-One events feature a personalized matchmaking service in which candidates' requirements are compared with business schools' admissions criteria to ensure a perfect fit. Open Fairs are offered in select cities such as Riyadh, Dubai and Cairo.
Top Ranked International Business Schools
The Access MBA Tour includes over 100 prestigious business schools that are accredited and internationally ranked. At the events, business school representatives present their programmes in detail in order to help candidates identify the program will best support their personal development goals.
Business Executives and Experienced Managers in Search of an MBA to Suit Their Needs
The Access MBA Tour attracts high-profile executives with at least 3 years of professional experience and a higher education degree. Meetings are prescheduled in advance at the candidates' convenience. On-site at the event, Access MBA advisers guide unregistered candidates and help identify schools that meet their requirements and needs.
The recent global financial downturn exposed questions as to how to create and maintain a sustainable business in a world where dynamic market forces determine the global business environment. Business leaders and analysts are now taking time to formulate their answer to emerging financial and management needs. Some find the downturn to be a perfect opportunity to start their own business and fill the new niche markets that emerged due to the market shifts, while others opt to gain a new perspective on business strategies and solutions by getting an MBA degree.
International MBA programs ensure that business executives understand the evolving global market and can adequately and sustainably lead their organizations towards long-term prosperity. Business leaders and corporate recruiters agree that candidates with an MBA degree have an edge on the competition, and that the international MBA experience is a significant asset. Logically business school applications and investments have soared amidst the global economic crisis of 2008-2009, and they show little signs of relenting.
Access MBA Tour Brings Together Top International Business Schools and Qualified Candidates in the Middle East
The Access MBA Tour organizes face-to-face meetings between experienced professionals with top global business schools. The One-to-One events feature a personalized matchmaking service in which candidates' requirements are compared with business schools' admissions criteria to ensure a perfect fit. Open Fairs are offered in select cities such as Riyadh, Dubai and Cairo.
Top Ranked International Business Schools
The Access MBA Tour includes over 100 prestigious business schools that are accredited and internationally ranked. At the events, business school representatives present their programmes in detail in order to help candidates identify the program will best support their personal development goals.
Business Executives and Experienced Managers in Search of an MBA to Suit Their Needs
The Access MBA Tour attracts high-profile executives with at least 3 years of professional experience and a higher education degree. Meetings are prescheduled in advance at the candidates' convenience. On-site at the event, Access MBA advisers guide unregistered candidates and help identify schools that meet their requirements and needs.
Chinese dissidentLiu Xiaobo Nobel Peace Prize - China enraged
BEIJING – Imprisoned Chinese democracy campaigner Liu Xiaobo on Friday won the Nobel Peace Prize — an award that drew furious condemnation from the authoritarian government and calls from world leaders including President Barack Obama for Liu's quick release.
Chinese state media blacked out the news and Chinese government censors blocked Nobel Prize reports, which highlighted Liu's calls for peaceful political change, from Internet websites. China declared the decision would harm its relations with Norway and promptly summoned Oslo's ambassador to Beijing to make a formal protest.
In Oslo, China's ambassador to Norway met with a state secretary at Norway's Foreign Ministry, ministry spokeswoman Ragnhild Imerslund said.
The Norwegian officials explained that the peace prize committee is independent of the government and that Norway wants to maintain good relations with China, Imerslund said.
This year's peace prize followed a long tradition of honoring dissidents around the world and was the first Nobel for China's dissident community since it resurfaced after the Communists launched economic but not political reforms three decades ago.
Liu, 54, was sentenced last year to 11 years in prison for subversion. The Nobel committee said he was the first to be honored while still in prison, although other Nobel winners have been under house arrest, or imprisoned before the prize.
Other dissidents to win the peace prize include German pacifist Carl von Ossietzky in 1935, Soviet dissident Andrei Sakharov in 1975, Polish Solidarity leader Lech Walesa in 1983 and Myanmar democracy leader Aung San Suu Kyi in 1991.
The Nobel committee praised Liu's pacifist approach, ignoring threats by Chinese diplomats even before the announcement that such a decision would result in strained ties with Norway. Liu has been an ardent advocate of peaceful, gradual political change.
The Nobel committee cited Liu's participation in the Tiananmen Square protests in Beijing in 1989 and the Charter 08 document he recently co-authored, which called for greater freedom in China and an end to the Communist Party's political dominance.
Obama said in a statement that Liu "has sacrificed his freedom for his beliefs" and is "an eloquent and courageous spokesman for the advance of universal values through peaceful and nonviolent means."
"We call on the Chinese government to release Mr. Liu as soon as possible," Obama said.
German Chancellor Angela Merkel praised the award, calling Liu "a brave man." Her spokesman Steffen Seibert said Merkel hoped Liu would be released from prison to accept the peace prize in person.
Chinese authorities would not allow access to Liu on Friday, and it was not clear if he had been told about the award.
His wife, however, expressed joy at the news. Surrounded by police at their Beijing apartment, Liu Xia was not allowed out to meet reporters.
But she issued a statement through Freedom Now, a Washington-based rights group, saying she was grateful to the Nobel committee.
"It is a true honor for him and one for which I know he would say he is not worthy," she said, thanking former Czech Republic President Vaclav Havel and two former Nobel Peace Prize winners — Tibetan spiritual leader the Dalai Lama and South African Archbishop Desmond M. Tutu — for nominating her husband.
"I hope that the international community will take this opportunity to call on the Chinese government to press for my husband's release," she said.
Liu Xia planned to go Saturday to deliver the news to Liu at his prison, 300 miles (500 kilometers) from Beijing.
China's Foreign Ministry quickly criticized the Nobel decision, saying the award should been used instead to promote international friendship and disarmament.
"Liu Xiaobo is a criminal who has been sentenced by Chinese judicial departments for violating Chinese law," spokesman Ma Zhaoxu said in a statement. Honoring him "runs completely counter to the principle of the prize and also desecrates the peace prize."
The ministry said the decision would damage relations between China and Norway.
Ma's statement was later read on the state television channel intended for broadcast overseas.
In China, broadcasts of the announcement by CNN were blacked out. Popular Internet sites removed coverage of the Nobel prizes, placed prominently in recent days for the science awards. Messages about "Xiaobo" to Sina Microblog, a Twitter-like service run by Internet portal Sina.com, were quickly deleted. Attempts to send mobile text messages with the Chinese characters for Liu Xiaobo failed.
[Related: Microsoft attacks China over use of pirated software]
The Nobel committee said China, as a growing economic and political power, needed to take more responsibility for protecting the rights of its citizens.
"China has become a big power in economic terms as well as political terms, and it is normal that big powers should be under criticism," prize committee chairman Thorbjoern Jagland said, calling Liu Xiaobo (LEE-o SHAo-boh) a symbol for the fight for human rights in China.
More than a dozen friends and supporters of Liu gathered near the entrance to Ditan Park in central Beijing, holding up placards congratulating him. They shouted "Long Live Freedom of Speech, Long Live Democracy" and wore yellow ribbons on their clothes to signify, they said, their wish that he be freed.
The small group of demonstrators was later taken away by police. Liu is almost unknown in China except among political activists.
Ru Shengtao, 38, a migrant worker with several large bags of cement strapped on his motorbike, stopped to see what the group was shouting about. He said he'd never heard of Liu and didn't believe anyone jailed for a crime in China should be receiving an international award for peace.
"If the person who won got it because he opposed the government, then I don't think it's good," he said. "People who defy the Chinese government should not get this prize and if they do, it's because people overseas are trying to split China."
Norwegian Foreign Minister Jonas Gahr Stoere told national broadcaster NRK he saw no grounds for China to punish Norway as a country for the award.
"I think that would be negative for China's reputation in the world, if they chose to do that," Gahr Stoere said.
Several previous peace laureates have been unable to accept the prize in person because of restrictions imposed by their governments, including Sakharov and Walesa.
Suu Kyi, who was awarded the 1991 prize and has been detained 15 of the past 21 years, is due to be released from house arrest Nov. 13, a week after Myanmar's first elections in two decades. Suu Kyi's political party won the last elections in 1990 but the ruling junta never allowed it to take power.
President Barack Obama won the Nobel Peace Prize last year, which this year carries a cash award of 10 million Swedish kronor (about $1.5 million).
The Charter 08 document that Liu co-authored was an intentional echo of Charter 77, the famous call for human rights in then-Czechoslovakia that led to the 1989 Velvet Revolution that swept away Communist rule.
"The democratization of Chinese politics can be put off no longer," Charter 08 says.
Havel, who helped draft Charter 77, said "Liu Xiaobo is exactly the kind of a committed citizen who deserves such an award and that is the reason why I, together with my friends, nominated him."
In an e-mailed statement, Havel praised the Nobel committee "for not bowing to Chinese threats."
Thousands of Chinese signed Charter 08, and the Communist Party took the document as a direct challenge.
Police arrested Liu hours before Charter 08 was due to be released in December 2008. Given a brief trial last Christmas Day, Liu was convicted of subversion for writing Charter 08 and other political tracts and sentenced to 11 years in prison.
"Through the severe punishment meted out to him, Liu has become the foremost symbol of this wide-ranging struggle for human rights in China," the award citation said.
In a year with a record 237 nominations for the peace prize, Liu had been considered a favorite, with open support from Tutu, the Dalai Lama and others.
When the Tibet-born Dalai Lama won the peace prize in 1989, both the Chinese government and some of the public were angry — the exiled Buddhist leader was endlessly vilified in official propaganda as a traitor for his calls for more autonomy for Tibet.
The Dalai Lama on Friday issued his congratulations to Liu.
"I would like to take this opportunity to renew my call to the government of China to release Liu Xiaobo and other prisoners of conscience who have been imprisoned for exercising their freedom of expression" the spiritual leader said.
The son of a soldier, Liu joined China's first wave of university students in the mid-1970s after the chaotic decade of the Cultural Revolution.
Liu's writing first took a political turn in 1988, when he became a visiting scholar in Oslo — his first time outside China.
Liu cut short a visiting scholar stint at Columbia University months later to join the Tiananmen Square protests in Beijing in 1989. He and three other older activists famously persuaded students to peacefully leave the square hours before the deadly June 4 crackdown.
Liu went to prison after the crackdown and was released in early 1991 because he had repented and "performed major meritorious services," state media said at the time, without elaborating.
Still, five years later Liu was sent to a re-education camp for three years for co-writing an open letter that demanded the impeachment of then-President Jiang Zemin.
The 2010 Nobel announcements started Monday with the medicine award going to British professor Robert Edwards for fertility research that led to the first test tube baby.
Russian-born scientists Andre Geim and Konstantin Novoselov won the physics prize for groundbreaking experiments with graphene, the strongest and thinnest material known to mankind.
Japanese researchers Ei-ichi Negishi and Akira Suzuki and American Richard Heck shared the chemistry award for designing techniques to bind together carbon atoms.
The literature prize went to Peruvian writer Mario Vargas Llosa. The last of the 2010 awards — the economics prize — will be announced Monday.
Swedish industrialist Alfred Nobel, the inventor of dynamite, established the awards in his 1895 will. He left only vague instructions, dedicating the peace prize to people who have worked for "fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses."
Chinese state media blacked out the news and Chinese government censors blocked Nobel Prize reports, which highlighted Liu's calls for peaceful political change, from Internet websites. China declared the decision would harm its relations with Norway and promptly summoned Oslo's ambassador to Beijing to make a formal protest.
In Oslo, China's ambassador to Norway met with a state secretary at Norway's Foreign Ministry, ministry spokeswoman Ragnhild Imerslund said.
The Norwegian officials explained that the peace prize committee is independent of the government and that Norway wants to maintain good relations with China, Imerslund said.
This year's peace prize followed a long tradition of honoring dissidents around the world and was the first Nobel for China's dissident community since it resurfaced after the Communists launched economic but not political reforms three decades ago.
Liu, 54, was sentenced last year to 11 years in prison for subversion. The Nobel committee said he was the first to be honored while still in prison, although other Nobel winners have been under house arrest, or imprisoned before the prize.
Other dissidents to win the peace prize include German pacifist Carl von Ossietzky in 1935, Soviet dissident Andrei Sakharov in 1975, Polish Solidarity leader Lech Walesa in 1983 and Myanmar democracy leader Aung San Suu Kyi in 1991.
The Nobel committee praised Liu's pacifist approach, ignoring threats by Chinese diplomats even before the announcement that such a decision would result in strained ties with Norway. Liu has been an ardent advocate of peaceful, gradual political change.
The Nobel committee cited Liu's participation in the Tiananmen Square protests in Beijing in 1989 and the Charter 08 document he recently co-authored, which called for greater freedom in China and an end to the Communist Party's political dominance.
Obama said in a statement that Liu "has sacrificed his freedom for his beliefs" and is "an eloquent and courageous spokesman for the advance of universal values through peaceful and nonviolent means."
"We call on the Chinese government to release Mr. Liu as soon as possible," Obama said.
German Chancellor Angela Merkel praised the award, calling Liu "a brave man." Her spokesman Steffen Seibert said Merkel hoped Liu would be released from prison to accept the peace prize in person.
Chinese authorities would not allow access to Liu on Friday, and it was not clear if he had been told about the award.
His wife, however, expressed joy at the news. Surrounded by police at their Beijing apartment, Liu Xia was not allowed out to meet reporters.
But she issued a statement through Freedom Now, a Washington-based rights group, saying she was grateful to the Nobel committee.
"It is a true honor for him and one for which I know he would say he is not worthy," she said, thanking former Czech Republic President Vaclav Havel and two former Nobel Peace Prize winners — Tibetan spiritual leader the Dalai Lama and South African Archbishop Desmond M. Tutu — for nominating her husband.
"I hope that the international community will take this opportunity to call on the Chinese government to press for my husband's release," she said.
Liu Xia planned to go Saturday to deliver the news to Liu at his prison, 300 miles (500 kilometers) from Beijing.
China's Foreign Ministry quickly criticized the Nobel decision, saying the award should been used instead to promote international friendship and disarmament.
"Liu Xiaobo is a criminal who has been sentenced by Chinese judicial departments for violating Chinese law," spokesman Ma Zhaoxu said in a statement. Honoring him "runs completely counter to the principle of the prize and also desecrates the peace prize."
The ministry said the decision would damage relations between China and Norway.
Ma's statement was later read on the state television channel intended for broadcast overseas.
In China, broadcasts of the announcement by CNN were blacked out. Popular Internet sites removed coverage of the Nobel prizes, placed prominently in recent days for the science awards. Messages about "Xiaobo" to Sina Microblog, a Twitter-like service run by Internet portal Sina.com, were quickly deleted. Attempts to send mobile text messages with the Chinese characters for Liu Xiaobo failed.
[Related: Microsoft attacks China over use of pirated software]
The Nobel committee said China, as a growing economic and political power, needed to take more responsibility for protecting the rights of its citizens.
"China has become a big power in economic terms as well as political terms, and it is normal that big powers should be under criticism," prize committee chairman Thorbjoern Jagland said, calling Liu Xiaobo (LEE-o SHAo-boh) a symbol for the fight for human rights in China.
More than a dozen friends and supporters of Liu gathered near the entrance to Ditan Park in central Beijing, holding up placards congratulating him. They shouted "Long Live Freedom of Speech, Long Live Democracy" and wore yellow ribbons on their clothes to signify, they said, their wish that he be freed.
The small group of demonstrators was later taken away by police. Liu is almost unknown in China except among political activists.
Ru Shengtao, 38, a migrant worker with several large bags of cement strapped on his motorbike, stopped to see what the group was shouting about. He said he'd never heard of Liu and didn't believe anyone jailed for a crime in China should be receiving an international award for peace.
"If the person who won got it because he opposed the government, then I don't think it's good," he said. "People who defy the Chinese government should not get this prize and if they do, it's because people overseas are trying to split China."
Norwegian Foreign Minister Jonas Gahr Stoere told national broadcaster NRK he saw no grounds for China to punish Norway as a country for the award.
"I think that would be negative for China's reputation in the world, if they chose to do that," Gahr Stoere said.
Several previous peace laureates have been unable to accept the prize in person because of restrictions imposed by their governments, including Sakharov and Walesa.
Suu Kyi, who was awarded the 1991 prize and has been detained 15 of the past 21 years, is due to be released from house arrest Nov. 13, a week after Myanmar's first elections in two decades. Suu Kyi's political party won the last elections in 1990 but the ruling junta never allowed it to take power.
President Barack Obama won the Nobel Peace Prize last year, which this year carries a cash award of 10 million Swedish kronor (about $1.5 million).
The Charter 08 document that Liu co-authored was an intentional echo of Charter 77, the famous call for human rights in then-Czechoslovakia that led to the 1989 Velvet Revolution that swept away Communist rule.
"The democratization of Chinese politics can be put off no longer," Charter 08 says.
Havel, who helped draft Charter 77, said "Liu Xiaobo is exactly the kind of a committed citizen who deserves such an award and that is the reason why I, together with my friends, nominated him."
In an e-mailed statement, Havel praised the Nobel committee "for not bowing to Chinese threats."
Thousands of Chinese signed Charter 08, and the Communist Party took the document as a direct challenge.
Police arrested Liu hours before Charter 08 was due to be released in December 2008. Given a brief trial last Christmas Day, Liu was convicted of subversion for writing Charter 08 and other political tracts and sentenced to 11 years in prison.
"Through the severe punishment meted out to him, Liu has become the foremost symbol of this wide-ranging struggle for human rights in China," the award citation said.
In a year with a record 237 nominations for the peace prize, Liu had been considered a favorite, with open support from Tutu, the Dalai Lama and others.
When the Tibet-born Dalai Lama won the peace prize in 1989, both the Chinese government and some of the public were angry — the exiled Buddhist leader was endlessly vilified in official propaganda as a traitor for his calls for more autonomy for Tibet.
The Dalai Lama on Friday issued his congratulations to Liu.
"I would like to take this opportunity to renew my call to the government of China to release Liu Xiaobo and other prisoners of conscience who have been imprisoned for exercising their freedom of expression" the spiritual leader said.
The son of a soldier, Liu joined China's first wave of university students in the mid-1970s after the chaotic decade of the Cultural Revolution.
Liu's writing first took a political turn in 1988, when he became a visiting scholar in Oslo — his first time outside China.
Liu cut short a visiting scholar stint at Columbia University months later to join the Tiananmen Square protests in Beijing in 1989. He and three other older activists famously persuaded students to peacefully leave the square hours before the deadly June 4 crackdown.
Liu went to prison after the crackdown and was released in early 1991 because he had repented and "performed major meritorious services," state media said at the time, without elaborating.
Still, five years later Liu was sent to a re-education camp for three years for co-writing an open letter that demanded the impeachment of then-President Jiang Zemin.
The 2010 Nobel announcements started Monday with the medicine award going to British professor Robert Edwards for fertility research that led to the first test tube baby.
Russian-born scientists Andre Geim and Konstantin Novoselov won the physics prize for groundbreaking experiments with graphene, the strongest and thinnest material known to mankind.
Japanese researchers Ei-ichi Negishi and Akira Suzuki and American Richard Heck shared the chemistry award for designing techniques to bind together carbon atoms.
The literature prize went to Peruvian writer Mario Vargas Llosa. The last of the 2010 awards — the economics prize — will be announced Monday.
Swedish industrialist Alfred Nobel, the inventor of dynamite, established the awards in his 1895 will. He left only vague instructions, dedicating the peace prize to people who have worked for "fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses."
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