outsidein

• Conflict in the Congo

  October 31, 2008 @ 6:27 pm | by Bryan

  It seems as though the Democratic Republic of the Congo (DRC) is on the verge of yet another civil war. It breaks my heart that this country just can’t seem to get a break.

  I personally think the country’s problems began at its inception. The Belgian’s were never big fans of Patrice Lumumba’s government. So much so that it only lasted about six months. Belgium has since apologized for its part in Lumumba’s assassination, but the US, Britain, and even the UN have been implicated in the murder or the destabilization of the country running up to it. Lumumba himself was always convinced that the foreign interference was because of his country’s immense mineral wealth.

  Fast forward some decades, and the country still isn’t really stable with a lot of the conflict boiling down to money. Because of significant deposits of gold, diamonds, copper, cobalt and tantalum (used in the making of electronic components in mobile phones and computers), the DRC has attracted a lot of attention. According to a UN report for example, trade and smuggling of a tantalum ore helped to fuel the last war. That conflict, though fought in the Congo, involved at least six African states with the alleged support and funding of some Western powers. That dispute was resolved after more than 5 million Congolese had lost their lives.

  And now, a new rebel group has taken up arms. A journalist friend reliably informs me that these ‘rebels’ are not rag-tag groups but rather well funded and equipped armies. I can’t help but wonder who is funding this group and how many lives this spat will cost. Lord knows how many families will be displaced, how many children will be traumatized, how many women raped and how many tears will be shed. Why? It really could be because one ethnic group was being targeted and has decided that this is the only way to protect itself. Unfortunately, it is more likely that the world is running short of cheap electronic components or gold reserves.

  Some Africans, it seems, carry the curse of belonging to poor nations. For others, the curse is having too much of what the rest of the world wants buried beneath them. Ironically, the poor may be better off than the supposedly wealthy.

  Comments (10)

• Representation

  October 30, 2008 @ 12:50 pm | by Bryan

  

  Protesters push suitcases during a protest against the Global Forum on Migration and Development in Manila October 29th.Photo:Romeo Ranoco /REUTERS

  I have been thinking a lot about representation lately. A case in point is electoral politics. The vast majority of politicians come from particular social groups - the middle to upper classes. Few people who rise to the top of the political ladder are poor. They may start out that way, but as they grow in political stature, their socio-economic fortunes change for the better. By the time that individual is president, prime minister or Taoiseach, he or she will have much more in common with well off people.

  With that in mind, how well are the needs of the poor represented in national politics? Is it really a surprise that most poor people feel as though they are largely invisible in the eyes of government?

  Another example comes from institutions like the World Bank. Institutions like this are based in and funded by the rich part of the world. The predominant philosophies in such institutions are those of well off people in the rich world. How then, do these institutions bridge the gap and represent poor villagers in rural Malawi, Bangladesh or Nicaragua?

  This is not to say that no good comes from the World Bank or the government. I’m also not saying that a person from one ‘social class’ is incapable of representing and working towards the best interest of someone in another class. But surely there is some disconnect. And surely the nature of power and human nature is such that I am more likely to have a world view that is most beneficial to my own self interest and that of my group.

  At the end of the day, isn’t the current budget row about people not believing that the government is representing their interests? Aren’t all elections about getting the person who looks like me and lives like me in office so they can make my life as comfortable as possible, even if that comes at the expense of those who are not like us?

  Comments (2)

• Attention Bloggers

  October 29, 2008 @ 3:52 pm | by Bryan

  I generally don’t do this kind of thing, but I think it’s worth making an exception in this case.

  Catherine Brodigan, who blogs at Two Wheels on my Wagon, is putting together a book based on the work of bloggers in Ireland and Irish bloggers abroad. The full details are available here.

  I don’t know Catherine personally and had never heard of her until this project came to my attention. I have no personal stake in it. I just think it’s a great idea with a lot of potential. Best of all, 75% of the profits will go to Focus Ireland who, in Catherine’s words, “offer shelter and support for the homeless.”

  If you have a blog and would like to get involved, click here.

  Comments (0)

• Knowledge based economy?

  @ 3:31 pm | by Bryan

  It looks like the education cuts in the budget will stand. After people have protested and vented their anger, teachers are going to have to make the most of a bad situation. The media will generally move on and there will probably be no shortage of other controversies and examples of underfunding for us all to worry about in the coming months.

  I wonder what the long term implications will be for education in Ireland. Having the second biggest class sizes in Europe won’t be great for the country’s reputation. But I wonder if this will translate to a significant deterioration in standards. Ireland could, for example, ‘out-source’ teaching. Although there is a move towards reclaiming schools from the church, maybe there will be a push for the private sector to plug the gaps.

  There are already many private schools here and they seem to be held in pretty high esteem by most. The government could encourage the private school sector to grow, assuming that the amount of public money that goes to a private student is significantly less than that invested in the boy or girl at a public school. The only problem is that the two-tier system would be further entrenched in a place that is resistant to the idea of the wealthy having access to better services than everyone else.

  Whatever happens, somethings needs to be done. Since low skilled jobs began moving to cheaper locations, like Poland and India, the mantra has been that Ireland needs to move up the skills ladder and create a knowledge-based economy. Is it just me, or is cutting funding to an underfunded schools sector and increasing the cost of getting a third level education not the best way to get there?

  Comments (9)

• Gazing into my crystal ball

  October 28, 2008 @ 10:34 am | by Bryan

  

  I’m going to stick my neck out. With a week to go, here is my prediction about the US election. Obama will not be assassinated. He will win more ‘white’ votes than Kerry, Gore and maybe even Bill Clinton won. Come November 5th, Barack Hussein (yes, Hussein) Obama will be the president elect of the United States of America. And no, the world will not come to an end. In fact, he’ll probably be a decent president, he might even be a good one. In terms of foreign policy, Americans will probably be happy with him and the rest of us will be frustrated because like his predecessors, his primary concern will be the US, not the rest of us.

  This is why I think he will win. He’s a really smart guy who has run an incredible campaign. Think about it, a one term senator who doesn’t come from an established political dynasty took the Democratic Party nomination from Hilary Clinton. Most people credit Obama for his oratory skill, but few acknowledge his discipline, his team building skill and the incredible political machine he has built. And let’s face it, until he came along, America’s overall perception of the black male, as evidenced by films like Crash and the discussion that followed its release, was not very flattering. But in spite of that, and in spite of Reverend Wright and ‘Bittergate’ Obama beat Hilary Clinton and John Edwards.

  If he and his team could pull that off, I don’t see how John McCain, with a crumbling economy, an unpopular president, a comparatively tiny campaign budget and a campaign team in disarray can stop him. While it is true that a week can be a very long time, I would be stunned if Obama didn’t win.

  Comments (17)

• A thought

  October 27, 2008 @ 3:59 pm | by Bryan

  “Those of us who attempt to act and do things for others or for the world without deepening our own self-understanding, freedom, integrity, and capacity to love, will not have anything to give others. We will communicate to them nothing but the contagion of our own obsessions, our agressivity, our ego-centered ambitions and our delusions about ends and means.” - Thomas Merton

  Comments (5)

• Picture of the week

  October 25, 2008 @ 8:36 am | by Bryan

  

  Tommy Bolger from Ringsend, Dublin, covers his ears and shouts as Minister of State John Moloney tries to speak at the Age Action Ireland protest meeting in Dublin. Photograph: Dara Mac Dónaill

  Comments (0)

• Now what?

  October 24, 2008 @ 5:55 pm | by Bryan

  I can’t lie, a part of me has enjoyed watching the reaction to the budget. I have nothing against the government, and I’m not an anarchist. It was just very interesting to see how much pull regular people have in Ireland. I’m still trying to figure out whether this is a feature of Irish culture or if it a small country thing. I haven’t lived in another country with a population of less than 5million, so I don’t know.

  But now that I’ve been well and truly blown away by the elderly, and have watched - with admiration - students, educators and the trade unions also take on the proposed budget, the excitement is giving way to apprehension. The fact of the matter is that the economy is still not in great shape to put it mildly. It looks like the credit crisis is far from over and the government is severely stretched financially. Surely this is one of those times people should be pulling together and making sacrifices?

  I’m not saying that these sacrifices should necessarily take the form of those proposed in the budget, but some sort of consensus needs to be reached for the collective good, especially in the long term. There is not much separating the big parties ideologically as was demonstrated when they came out in support of the Lisbon treaty. Since the future of the country is more important than how the EU is administered, if you’re me, you begin to wonder why the parties didn’t work together in coming up with a budget. A united front, and a budget that all the parties had contributed to, would have carried a lot weight.

  When I said something similar to a friend, he accused me of not liking democracy. I suppose I could also be accused of being naive. Personally, I think there could have been some consensus and it could have prevented the current wave of protest. Then again, I’ve spent most of my life in a one party state.

  Comments (16)

• What’s wrong with having a Muslim for president?

  October 23, 2008 @ 4:32 pm | by Bryan

  A FEW WEEKS ago, an American friend told me that she wanted her country’s elections to come to a close sooner rather than later.

  I was a little surprised. The elections have been more entertaining than anything else on television all year. They have been better than even the Olympics. They started before the games, and were still a great source of drama months later.

  To read the rest, click here.

  Comments (13)

• Universal Health Care

  @ 4:27 pm | by Bryan

  I heard something interesting today. An American talk show host said that universal health care and wealth redistribution are un-American and not principals on which the country was built. An elderly gentleman on radio the other day said that his reason for demonstrating against changes to the medical card was his desire for the universality of medical benefits for the elderly to remain intact.

  Article 12 of the International Covenant on Economic, Social and Cultural Rights, part of the International Bill of Rights, states that,
  
  “The States Parties to the present Covenant recognize the right of everyone to the enjoyment of the highest attainable standard of physical and mental health… The steps to be taken by the States Parties to the present Covenant to achieve the full realization of this right shall include those necessary for… The creation of conditions which would assure to all medical service and medical attention in the event of sickness…”

  With that in mind, irrespective of how American it may or may not be, what is the prevailing Irish view on universal health care? I have Swedish friends who are not ecstatic about the tax they have to pay, but are very happy about their health coverage. Would Irish people be willing to go down that route? If not, would the reason be a lack of confidence in the Health Ministry and the Health Service Executive? Or would it be ideological - the belief that everyone should get the type of health care they have worked for and earned?

  If I understand their argument correctly, the over 70s are saying that as a cohort, they have worked and contributed to the nation’s coffers for decades. They are therefore entitled, regardless of income, to free health care now. If most people agree with that position, and I do not know that they do, does that mean that regardless of income, all under 70s are also entitled to universal health care?

  If nothing else, hopefully this period will lead to a debate over Ireland’s values and where we stand with respect to issues like the funding and provision of health services to everyone.

  Comments (4)

• Chandrayaan-1

  October 22, 2008 @ 9:10 am | by Bryan

  

  India’s first unmanned moon mission blasts off. Photograph: Reuters

  I am more than a little disappointed that I can’t find the quotation, but many years ago, I read something that came to mind when I read about India’s moon mission. I think it was Kenneth Kaunda, in the preface to a someone’s book, who wrote that while the most developed nations were sending people into space, Africa was still trying to feed her children - or words to that effect.

  It looks like there is a space race in Asia. The Chinese are in the lead, the Indians are in second place, and I’m sure that sooner rather than later more countries will join in. But I can’t help wonder why on earth (excuse the pun) these countries would blow away so much money on what seems to me a frivolous exercise. What do they get from from successful missions to the moon, or Venus, Mars or anywhere else off the planet? Especially when there is still so much work still to be done, in India for example, on poverty eradication, health and education provision, and lately, sectarian violence.

  I am sure there are benefits to the economy in the long run, and a lot of R&D goes into this sort of thing, some of whose results will probably trickle down to the Indian market. But surely there are cheaper and more practical ways of investing in technology.

  All too often, I think developing nations get sucked into the world of the more developed ones for no good reason. I wonder if this is one such occasion?

  Comments (7)

• The people have spoken?

  October 21, 2008 @ 9:15 am | by Bryan

  

  Taoiseach Brian Cowen. Photograph: Francois Lenoir/Reuters

  Who would have guessed that fiddling with the entitlement of over 70s to free health care could have such serious political ramifications? I, for one, am surprised.

  Don’t get me wrong, I’m very impressed. I’m impressed by the fact that in Ireland, the ‘will of the people’ counts for so much. Until now, the Cowen administration has not faced any major challenges. Following the budget decision to save money by ending the automatic right of seniors to a medical card, all of that has changed. And it isn’t just a case of a small matter being sensationalised by the media.

  What I don’t get is why this issue, and not others? I agree that senior citizens are important, and having paid their dues in years of taxes, they are entitled to have the state pay for their health needs. But at the other end of the spectrum, there is nothing like the same response to the fact that Ireland will have the largest class sizes in Europe and that teaching jobs are going to be lost. Does that mean that people can accept deteriorating education standards for their children but not a revision to the medical services available to their parents and grandparents?

  A functioning democracy is a beautiful thing to behold.

  Comments (14)

• Jon Stewart’s Question

  October 20, 2008 @ 10:38 am | by Bryan

  Finally!

  I think the Daily Show’s Jon Stewart may be one of the best journalists out there. In a hilarious sketch, as usual, he recalled a now infamous town hall meeting. A woman tells McCain that she fears Obama because he is an Arab. McCain then takes the mic from her and explains that Obama is in fact, “a decent family man.”

  My response was something along the lines of, “You’re joking!” Quite a few commentators on the other hand praised McCain for “defending Obama.” A couple criticised him for propagating the idea that Obama is a Muslim. Not too many suggested that there may be a problem with linking Islam to terrorism. As only they could, The Daily Show asked whether or not an Arab could be a decent guy who loved his family.

  Why is there so much fear and animosity directed towards Muslims? 9/11? Isn’t that like thinking that all Germans are anti-Semitic racists because of the Nazis? Or that because there are white supremacist groups all across Europe and America that all white people are racists? Or, since the AIDS pandemic is especially bad in sub-Saharan Africa, we should all be quarantined and are a health hazard?

  Is there a rational explanation for the rising anti-Muslim sentiment or does it all stem from the actions of an unhinged fringe group? It can’t be a religious thing because how large is the religious population of Europe or America? For a part of the world that has set the example for freedom and tolerance, it is a very disappointing state of affairs.

  This election will be over in a couple of weeks. The repercussions though could last for some time to come.

  Comments (9)

• Picture of the week

  October 18, 2008 @ 9:19 am | by Bryan

  

  A Papuan activist walks in front of policemen during a protest in Jakarta, October 17th. Photo:Dadang Tri /REUTERS

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• Aid Debate

  October 17, 2008 @ 2:32 pm | by Bryan

  I was at an interesting debate on foreign aid at the NUI Galway last night. The debate revolved around whether or not Ireland should continue giving money towards development assistance in light of her own financial difficulties as well as the questionable efficacy of aid. As expected, there was a wide range of opinions.

  Although the event got heated from time to time, the tone was generally pleasant. And surprisingly, no one disputed the merit of helping where it is possible to do so. Only one or two people suggested that the slow down in the economy meant that Ireland no longer had the means to assist poorer countries. At the heart of the argument for stopping aid was that it had not ‘worked’ to date. It was said that billions have gone into the black hole known as the ‘third world’ without a tangible return on the investment. As such, the wise thing to do is to stop.

  I don’t like how a lot of aid is administered. I don’t like how the developing world is depicted by quite a few development organisations. I don’t like the fact that some NGOs feel that the only way to get funding, admittedly to do potentially good things, is by appealing to the worst stereotypes there are out there. And last night, the people who made me want to walk out of the room in frustration were the ones who spoke about how “we need to help ‘them’ over ‘there’… if we don’t, they’re doomed.”

  I must confess, I wish I could say, “we don’t want or need anything from anyone. We’re fully capable of sorting out our issues thank you very much. We won’t be patronized and pitied anymore, you can keep the 54c out of every €100 of Irelands gross income that is being given as aid, thank you.”

  But I can’t. The truth is that, for a variety of reasons, many of which are beyond the control of the developing world, the status quo will only change through conflict or cooperation. That being the case, I hope a lot of time and effort continues to go into figuring out how best to get the cooperation right. In the meantime, I don’t think there is an alternative to continuing with aid.

  Comments (10)

• Taxes and last night’s debate

  October 16, 2008 @ 1:12 pm | by Bryan

  The final debate in the US Presidential race has come and gone. I haven’t watched the whole thing yet, but thanks to Denis, I have seen some interesting clips from the event. One of them, I think, is particularly interesting.

  Following on from yesterday, I thought the debate on taxes was one worth revisiting. I was accused of promoting Marxist ideas this week, so I’m going to tread carefully. But what is wrong with people who earn more than $250k getting a 3% increase in their taxes? What is wrong with “redistribution” if redistribution means taking that extra 3% and investing it in people who earn less?

  http://www.youtube.com/watch?v=-VNd-UZUcks&rel=0

  Surely a free-market society is not one which by definition has to apply the law of “survival of the fittest”. John McCain made taxes sound like the plague. When I was in primary school, I remember being taught that taxes were good because they were used to provide roads and schools and hospitals and to take care of people who couldn’t manage on their own. Is an extra 3% really tantamount to socialism? Especially considering that the Senator voted for a bill that helped out struggling institutions.

  But when all is said and done, I’m getting a little tired of the US presidential race at this stage. I think the sensible part is over and the election is well and truly into “silly season”. From here on out, I suspect that all we’ll get are unfounded allegations and talking points. And the truth is that I’m tired of hearing the word ‘change’ and am angry about the fact that words like ‘Muslim’, ‘Arab’ and ‘Hussein’ are becoming synonymous with ‘terrorist’, ‘traitor’ and 9/11. So I just want it all to end now.

  Comments (8)

• The role of government

  October 15, 2008 @ 1:38 pm | by Bryan

  I recently had an interesting discussion with a friend over the role of government. Is the purpose of government to ensure that people are as well off as possible, or is it to ensure that everyone, especially the least vulnerable are looked after? How one answers this question, we decided, would probably determine their view of any political party, or government for that matter.

  If the primary role of government is to look after people, then the only way that will happen is if there are significant levels of income tax. If that does not happen, the government will probably not have the finances to do the ‘looking after’. But, high income taxation reduces the likelihood or ability of people to accumulate as much wealth. So if the primary role of government is to create an environment where people can accumulate wealth, then personal taxation needs to be low. Simplistic, I know, but I think my argument still holds water.

  Which brings me to my observations, as a partial outsider, on Ireland’s economy. If I’m not mistaken, Ireland has the lowest levels of personal taxation in the EU. And during the Celtic Tiger days, it seems that the primary emphasis was on enabling people to accumulate wealth. And many did. Few complained because, in my opinion, even those with little wealth were hoping they too would eventually acquire wealth of their own. And as an unintended consequence, there was not as big an emphasis in areas like public sector reform. The strides made in health and education were not as great as they could have been had the emphasis been on those issues.

  If all of that is true, is it fair to blame the government solely for the way things are today? The majority seemed to be happy to go along with their priorities in the good times. Shouldn’t that majority now also accept that we were complicit in the process that has led us to our current state? And although there is a lot of debate on policy, why is there not more on foundational matters, like the role of government?

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• The Budget

  October 14, 2008 @ 6:19 pm | by Bryan

  

  Minister for Finance Brian Lenihan. Photograph: Sasko Lazarov/Photocall Ireland

  I’m going to give my take on what I have read of the budget so far. I was, unfortunately, not able to watch it being delivered live.

  The truth of the matter is that there was no way this budget was going to really please anyone by virtue of the current economic climate. Were you to place a hundred different economists in a room and ask them to come up with their own version, you would get more than one document - maybe not hundred, but definitely not one. What makes things worse is that times of instability provide a very real opportunity for opposition parties to make gains. Both David Cameron and Barack Obama would agree with that. That being the case, it is very difficult to objectively assess the government’s action in difficult times.

  Months ago, a commentator on radio said that the real tragedy with Ireland’s economy was that not enough was done with respect to infrastructure development during the boom. When the recession ends, it is unlikely that there will be another boom for some time and the things left undone will be much more difficult to fix.

  That said, I think the Finance Minister has done a really good job since the financial system began to go belly-up. Ever since the his Immigration Bill from his time as Justice Minister, I haven’t been Brian Lenihan’s biggest fan. But I think he has probably done as best as he could under the circumstances. I guess only time will tell if the really good crisis management of recent times will make up for some of the complacency of the past.

  That is my non-specific verdict on the budget. For a more comprehensive analysis, click here to go to our Business blog.

  Comments (6)

• Money makes the world go round?

  October 13, 2008 @ 10:15 am | by Bryan

  The US, the EU and even the G7 have, in recent days, come up with a plan to sort out the world’s financial system. It’s remarkable what the world’s big powers can accomplish when they put their minds to it. Whether or not these interventions will have the desired effect is yet to be seen, but they definitely get an A, in my book, for effort.

  But that begs the question, how come they don’t see the need to make the same effort in other areas? Let’s take a few of the world’s other big challenges - climate change, poverty, HIV/AIDS, malaria and conflict in the Middle East - why aren’t these challenges tackled with the same levels of collaboration and decisiveness?

  My cynical view is that the financial crisis directly affected the global powers and self interest dictated the response. The same level of self interest does not exist with respect to the other challenges listed above. Until the planet actually begins to disintegrate, or global poverty is such that there are no longer enough export markets to sustain mega-corporations, there won’t be a rush to intervene.

  Perhaps there is some truth in the saying that money makes the world go around?

  Comments (5)

• Picture of the week

  October 11, 2008 @ 10:15 am | by Bryan

  

  An Afghan girl walks with her donkey carrying hay in Kunduz, Afghanistan, October 6. Photo: Fabrizio Bensch/REUTERS

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• Disaster

  October 10, 2008 @ 9:15 am | by Bryan

  I don’t know about the rest of you, but I’ve started to think about how this economic slowdown will directly affect my family and I in the coming months. It is growing menacingly from a theoretical concept into an uncomfortable reality.

  That said, every now and again something happens which gives me a renewed sense of perspective. Yesterday, that perspective came in the form of a headline and a text message from a friend in Australia; both were about Zimbabwe’s inflation figure for July which reached 231 million per cent. The icing on that cake is that official figures are always massaged down and the country still doesn’t have a functioning government. Great.

  One of Zimbabwe’s most famous musicians, Thomas Mapfumo, released a very popular song years ago called Disaster. In the song, he repeats a line that can’t really be translated without losing the depth of its meaning. The closest I can come to a decent translation is: Houston, we have a problem.

  The sad reality is that as painful as a global recession may be in a place like Ireland, it could be disastrous in struggling states. Let’s hope that doesn’t happen.

  Comments (2)

• An ANC Split?

  October 9, 2008 @ 9:30 am | by Bryan

  

  CAPE TOWN/SOUTH AFRICA, 4JUN08 - Thabo Mbeki. Copyright World Economic Forum/Eric Miller.

  South Africa’s political landscape has been interesting since the resignation of former president Thabo Mbeki. According to former Defence Minister, Mosiuoa Lekota, there is a good chance that the ruling African National Congress (ANC) will split.

  Surprisingly, the thought of an ANC split is sometimes reported as a bad thing. I think a split in that liberation movement party would be a fantastic thing for South Africa. While the country has a solid democracy, the opposition is weak and tends to resemble civil society rather than credible political opposition. The dominance of one party would be greatly diminished with a split and it may be just what South Africa needs.

  With all due respect to Thabo Mbeki and Jacob Zuma, no single person will ever be able to lead as well uncontested as when their ideas and policies are challenged. With that in mind, I really hope South African politics see a seismic shift in the weeks to come.

  Comments (3)

• In favour of Town Hall meetings

  October 8, 2008 @ 6:32 pm | by Bryan

  

  I’ve been accused of being biased in favour of Obama when it comes to the US Presidential race. And the truth is that I am. I like Obama, and I think he and Biden would be better for the rest of the world than Mcain and Palin.

  That said, I must agree with McCain when it comes to Town Hall meetings. Last night’s debate has been called ‘boring’, but I think it was a really good event compared to some of the others. Yes, both candidates insisted on sticking to their talking points which have, at this stage, become tired.

  But… and it is a big ‘but’, last night’s debate, for me, was the one that has most resembled a serious, reasoned Presidential debate. I don’t thing the ‘fun’ factor should trump ‘seriousness’ and substance. And the more these events resemble TV contests, the less meanigful and helpful they are.

  So there it is. I think that on this issue, John McCain is right, Obama is wrong, and there should be more Town Hall meetings.

  You can watch last nights Town Hall style debate here.

  Comments (4)

• Change?

  October 7, 2008 @ 2:28 pm | by Bryan

  

  Trader Simone Wallmeyer works at the Frankfurt Stock Exchange in Frankfurt, Germany, October 6. Stocks tumbled around the world, the euro fell the most against the yen since its debut and oil dropped below $90 a barrel as the yearlong credit market seizure caused bank bailouts to spread through Europe. Photo: Hannelore Foerster/Bloomberg News

  Michael Power, a strategist at Investec Asset Management in South Africa, wrote a very interesting opinion piece for Business Day a couple of weeks ago. He starts off by looking at the unrealistic dependence of the global financial system on America and then looks at what may occur going forward. His central thesis is that the world as we know it must change.

  There is a school of thought, expounded by Naomi Klein in The Shock Doctrine, that believes major disasters present an opportunity for significant shifts in ideology and policy. Many have already begun to ask, in view of the credit crunch and its effects all over the world, are things going to change? Will the belief that ‘greed is good’ and that the free market is the best way to run the world’s economy survive?

  And what implications will the answers to the above have for global and national inequality? If large financial institutions cannot be allowed to fail, is it justifiable that people are allowed to live in poverty? Again, if governments can guarantee financial instruments made up of risky mortgages, why can’t they guarantee that the individuals who took out those mortgages get to keep their homes?

  Power believes that in a few years the global financial landscape will be very different. I doubt it will. I think that if there is a type of revolution, it will be of the Animal Farm variety. The focus of attention may shift from America to China. Banks could be nationalised in whole or in part. But because greed is powerful, it will remain good in the eyes of many. There will be no radical ideological shift. The world will probably remain as is. The only difference may be that Napoleon replaces Mr Jones.

  Comments (2)

• A Thought

  October 6, 2008 @ 9:15 am | by Bryan

  “The ideas of economists and political philosophers, both when they are right and when they are wrong, are more powerful than is commonly understood. Indeed the world is ruled by little else. Madmen in authority, who hear voices in the air, are distilling their frenzy from some academic scribbler of a few years back. I am sure that the power of vested interests is vastly exaggerated compared with the gradual encroachment of ideas. Not, indeed, immediately, but after a certain interval; for in the field of economic and political philosophy there are not many who are influenced by new theories after they are twenty-five or thirty years of age, so that the ideas which civil servants and politicians and even agitators apply are not likely to be the newest. But, soon or late, it is ideas, not vested interests, which are dangerous for good and evil.”

  -John Maynard Keynes

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• Picture of the week

  October 4, 2008 @ 9:00 am | by Bryan

  

  A demonstrator stands outside the New York Stock Exchange during a protest, while U.S. lawmakers met to vote on a $700 billion bailout of the financial industry, in New York September 29. Photo: Shannon Stapleton/REUTERS

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• Vice Presidential Debate

  October 3, 2008 @ 8:44 am | by Bryan

  http://www.youtube.com/watch?v=89FbCPzAsRA&rel=0

  What do you think?

  Comments (11)

• Brian Lenihan

  October 2, 2008 @ 9:00 am | by Bryan

  

  Minister for Finance Brian Lenihan at the press conference in Dublin on Tuesday at which he announced the Government’s rescue plan. The Government pledged to guarantee deposits and debts totalling €400 billion at six Irish-owned lenders to protect the Irish financial system after bank shares suffered their greatest fall in more than a quarter-century on Monday. Photograph: Sasko Lazarov/Photocall Ireland

  Brian Lenihan has been criticized quite a bit since taking charge of the finance ministry. There were questions asked about his knowledge of financial matters as well as his past record. It seems now that he isn’t getting as much credit as he deserves for his intervention in the Irish financial system’s crisis of confidence.

  Guaranteeing the liabilities of domestic banks was a very bold move. It may even have been a critical intervention. And the move has not gone unnoticed beyond this country’s borders. It was interesting to note the calls in Britain for that country’s government to follow Lenihan’s lead and guarantee the liabilities of British Banks.

  In what has been an interesting week or so with respect to the global economy, I can’t help but wonder where we go from here. With their backs to the wall, government has shown how resourceful and decisive it can be. I do not agree with some of the decisions that have been made, but I have been impressed nonetheless by the resolve to ‘fix’ things.

  The flip side of that is the contrast such decisiveness and determination paints when one thinks of how day to day problems are handled. As an individual, I’m great at crisis management but am not as diligent when things are going well and when I am under little pressure. It’s scary to think governments are just as bad, if not worse.

  I wonder how many ‘it should have been addressed during the boom years’ comments we’ll hear in the months to come.

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• Campaign Trail 2008

  October 1, 2008 @ 9:37 am | by Bryan

  For those of you who are following the US Presidential race, Denis has started a blog on that very subject. It’s very well written and is following the race in much more detail than this blog. I highly recommend it. If you haven’t already done so, you can check it out here. 

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• Charities on TV

  @ 9:15 am | by Bryan

  I HATE most charity adverts on TV, especially the ones for organizations involved in development work. They typically open with very sad music and then show a solitary person in a desolate setting. The person in the advert, child or adult, is miserable, looks like they are carrying the weight of the world on their shoulders, has obvious signs of malnutrition, and is often accompanied by a swarm of flies.

  I must confess, I have been accused of being ‘overly optimistic’ by some friends who work in the development field. A common response to the above criticism is that there are people in those situations who are helped daily by hard working charities. Fair enough. Another criticism is that people just won’t give money if any other picture is portrayed. That, I think, is rubbish.

  I know the ‘help the starving black babies in Africa’ routine is tried and tested. But the world has changed and a lot of those ‘black babies’ are now adults who, in many circumstances, are trying to work their way out of poverty. Since it is now almost a requirement of political correctness for organizations to say they work in partnership with groups in recipient countries, why does the advertising seldom reflect that? Why don’t we see local people who are building their communities in those adverts? Aren’t most people more likely to invest in ‘hopeful causes’; in people who already have initiative and drive?

  When people whose aim is to help foster development propagate negative stereotypes of the people they are meant to be helping, I get really frustrated. Those adverts do more than just solicit funds. They also inform many people’s view of the world.

  I can’t wait to see a really positive fundraising campaign. There is no shortage of the other type.

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