We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.
Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]
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Frank Furedi, the British sociologist who has already established a bit of a record for trashing doomongering of various types, lays into what he sees as the misanthropy of so many of today’s glum authors. I cannot do justice to it in one short comment, so make yourself a coffee or pour your favourite alcoholic beverage, sit back, and enjoy:
Human beings are not angels; on a bad day they are capable of evil deeds. But the very fact that we can designate certain acts as evil shows that we are capable of rectifying acts of injustice. And on balance we aspire to do good. Contrary to the fantasies of romantic primitivism, civilisation and development have made our species more knowledgeable and sensitive about the workings of nature. The aspiration to improve the conditions of life – the most basic motive of people throughout the ages – is one that has driven humanity from the Stone Age through to the twenty-first century.
If believing in the human potential is today labelled ‘anthropocentrism’ and ‘speciesism’, then I wholeheartedly plead guilty to subscribing to both of those views.
Hat-tip: Ronald Bailey at Reason’s blog. Bailey is also a profound techno-optimist with little time for the zero-sum economics or mentality of the latter-day Malthusians that Furedi hammers. This book is worth adding to your reading list. (As if I did not have enough, Ed).
It has been a relatively quiet year so far in Australian politics, with the main story being an investigation into a scandal involving the Australian Wheat Board, which was accused of paying huge bribes for wheat contracts to Saddam Hussain’s Iraq. The political controversy relates to what the government knew about it and what it did about it.
It seems that the government did not know very much about it, and did absolutely nothing about it. The Cole Enquiry that has been formed to investigate this matter and Prime Minister John Howard will testify tomorrow. I have generally taken the view that the enquiries have been a political circus and conducted for partisan reasons, so I’ve not followed it very closely. Other people have taken a greater interest, and have come to different conclusions. However I still feel that this matter is more a case of cock-up rather then conspiracy.
I got thinking about the case from a different angle though, about the bribes. The fact that bribes needed to be paid at all for a straightforward commercial transaction is a shocking indictment of the regulatory stranglehold Saddam Hussein and the UN had placed on Iraq. This is small beer compared to the literal stranglehold that the tyrant kept his people under. But bribery is a natural part of things in so many parts of the world, in various and many degrees. It is by no means restricted to ‘third world’ countries either. But it occurred to me that the more you need to bribe agents of the state to get anything done, the worse the control the state has over the economy, and is a passable indicator of real, as opposed to nominal, economic freedom in a society.
Australia’s flagship national broadsheet, The Australian, published an article today sporting the title Cut to the bone: working poor on the rise. To illustrate this terrible phenomenon, the Oz article provides the example of Vicki and Terry Rawiri, who
[by day] worked at the supermarket, while at night Vicki, 42, weighed carcasses and Terry, 43, classified as a labourer, worked as a slaughterman.
And even then they could barely afford the gruel, you might surmise. Well – not really. This pitiable couple
were trying to get ahead by paying off the mortgage of their $365,000 [about 150 000 GBP] home in Cowra in eight years
Your heart bleeds, no? The sacrifices abject poverty forces one to make! Leaving aside the horrors of working hard to pay off one’s mortgage quickly, the article goes on to quote a survey filled with anecdotal evidence of the plight of Australia’s poor; how they cannot afford to drive registered cars, thus risking the law’s wrath in unlicenced wrecks, how they can only find $20 to go to the movies if it comes out of the food budget. Well, here’s some anecdotal evidence that I have gathered in my travels – I once worked at a very large and very busy liquor store in an especially low socio-economic suburb in Perth. The poor may not be able to drive a registered car or spend $20 on a movie, but rest assured that a large chunk of them generally have quite a lot of money to spend on alcohol. Putting that aside, the tough luck stories of a few are not borne out by hard economic data from the Australian Bureau of Statistics pertaining to the poor in the aggregate:
over the period from 1994–95 [to 2003-2004], there was an estimated 22% increase in the real mean income of both low income people and middle income people and 19% for high income people
→ Continue reading: Australia’s working poor: a tragic case
In this month’s lead essay at Cato Unbound, ‘Why Aid Doesn’t Work,’ William Easterly makes a rational case for directing international aid dollars toward programs where the results can be objectively measured by hard scientific methods. He is persuasive, but in the end, the scientific method is still just a patch, a facsimile for what is really missing: legality.
In the developed world, the distinction between government and non-government organizations is meaningful, but not in places where government is corrupt and ineffective. In a lawless state (ie, one where corruption dominates the channels through which people get things done, for good or for ill), both aid organizations and entrepreneurial warlords effectively operate by the same rules. One’s moral orientation is not the point. If the basic sphere of operation is illegal (in the deepest sense of the word), then there is little chance that your efforts will result in enlightened, long-term improvement. Will Connors, a Chicago journalist and blogger working in Ethiopia has written compellingly about corruption in the aid community there.
Any aid-before-government aparatus is still going to break down – it will just do so further down the road. As Easterly suggests, you may demonstrably produce healthier, taller, better-educated children by buying them meat to eat twice a week, but if the best they can hope for is to grow up to be a corrupt low-level official, have you really accomplished anything lasting?
Better to see aid dollars spent as investment dollars – sunk into private businesses, rather than programs of any kind. It is possible. It is even possible that the weaker the local (corrupt) government, the greater the opportunity for leveraging capital investment. In Carol Pineau’s documentary, Africa: Open For Business, the CEO of Daallo, a Somali airline, marvels that the only reason he is able to thrive is that there is no government at all in his country. No government means no corruption, he observes dryly.
Entrepreneurs are the leading men of capitalism, the venturesome protagonists who move the plot forward. But economic theory gives them few if any lines to read.
The Economist.
I think that the economics profession is showing a bit more interest in entrepreneurship, at least since the 1980s. The “Austrian” school that gave us the likes of von Mises, Ludwig Lachmann and Israel Kirzner, for instance, puts the entrepreneur pretty much front and centre of the economic picture. For sheer gusto in defending the entrepreneur, there is still to this day no better advocate in my view than George Gilder.
Should money be as free as speech? After all, it is also a form of communication.
In the past year, the internet has spawned a few companies aimed at helping individuals borrow and lend without bothering to involve a bank or credit agency. Zopa, based in the UK, aggregates individuals into groups for the purpose of making small loans, with a socially conscious slant. In the US, Prosper just launched a sleek, well-designed person-to-person lending site. Borrowers can also form groups on Prosper, for the sake of leveraging better interest rates. I also know of at least one nascent project, Bruce Boston’s Quid St., which aims to aggregate individuals for the purpose of making capital investments (as opposed to loans). I met Bruce recently, and he mentioned what an influence gaming had on his view of how to build an online marketplace. Which put me in mind of the Park Paradigm, a blog about digital markets whose authors think future finacial markets may evolve out of sports book and gambling sites. And not entirely unrelated note, Paypal made it possible just this week for people to send each other money anywhere, via cell phone.
What we are witnessing here, I think, is the creation of a new international capital market.
But we already have an international capital market, you say. Well, yes and no. When it comes to lending and investing and otherwise redistributing capital, we make do with a rudimentary, feudal system that has never really caught up with our momentum toward the free flow of other types of currency–cash, ideas, information, energy, goods and services, even political will. We have developed extremely liberal mechanisms for exchanging these forms of dynamic and stored energy, but capital remains over-managed, its governance, distribution and oversight resting in the hands of a select few.
The invention of a truly open and free capital market will be as significant a development as the invention of the printing press, affecting the free flow of wealth and opportunity much the way that invention affected the free flow of intellectual capital. 500 years after Gutenberg, it’s hard to imagine a world without cheap, plentiful and ungovernable words. One hundred years from today, it will be just as hard to remember a world where capital flowed through banks and currencies were government-issued.
Capital, and as a consequence personal wealth, will exist in a much more fluid and dynamic state than it now does, and all our discussions about wealth, wages and income will take place in an entirely new financial language. We may not end up solving poverty, so much as rendering it obsolete, all because of the technology-driven privatization of capital that is just now beginning.
That is the conclusion of research published today by Mischa Balen. Over a billion people worldwide do not have access to safe drinking water, and 2.6 billion people have no sanitation facilities. More than two million people die each year from diarrhoea, and over six million people are blind as a result of trachoma, a disease strongly related to lack of face washing. In Sub Saharan Africa, 42% of the population lacks access to decent water. This state of affairs, he finds, is caused by state failure in water systems.
What can be done? Where the private sector has been called in, it has prevented wars and conflict by creating a system of property rights and acting as an incentive to conserve; increased access to clean water; increased the treatment of sewage, thereby lowering infant mortality; cut politicisation from the supply of water; promoted sustainable development by reducing wastage.
That is great. Unfortunately, ideological opponents of markets are campaigning heavily against the private sector. They choose, he says, “not to compare private provision in reality with state provision in reality, but private provision in reality with a mythical, utopian state provision which does not exist in the real world.” No change there, then.
While activists call for consumers to buy Fairtrade coffee, critics – like the author of the documentary The Bitter Aftertaste – say that the achievements of the Fairtrade movement are too modest. Hostility to the movement is on the rise from right and left alike. As Reason magazine puts it:
The movement has always aroused suspicion on the right, where free traders object to its price floors and anti-globalization rhetoric. Yet critics from the left are more vocal and more angry by half; they point to unhappy farmers, duped consumers, an entrenched Fair Trade bureaucracy, and a grassroots campaign gone corporate.
It has always seemed to me that there is a better, more sustainable approach to raising living standards. That approach is to help farmers move away from just growing coffee and exporting the beans (with very little processing) to the developed world. If coffee-producing countries actually did the processing and packaging, and even stuck their own trademarks on the finished product, developing countries would be able to capture more of the value in a bag of coffee sold in shops in the high street.
When I’ve spoken to Western companies selling Fairtrade produce, they never seemed all that interested in the idea – or they though it was not feasible. So I am delighted to have found a company that actually does it: coffee grown in Peru and Costa Rica where the packaging and processing is also done there too. I went to their UK online store and bought some which I will be tasting in the office on Monday, but it strikes me as a superb way of increasing living standards. More information is here.
I have always found group names quite interesting, such as a ‘crash’ of rhinos, ‘school’ of fish, a ‘gaggle’ of geese, a ‘stupidity’ of politicians, a ‘conspiracy’ of lawyers, etc… but what is a collection of French students to be called? Perhaps an ‘unreasonableness‘? Or would it be a ‘perversity’? Or maybe a ‘delusion’ of French students?
Three hundred thousand of them were protesting and/or rioting because of attempts to change the laws that make no business in their right mind want to hire them in the first place. This is because if they turn out to be indolent layabouts, a company is still not allowed to fire them. So, as unemployment approaches 10% in France (or quite a bit higher according to some), demonstrating that something is just a tad wrong with the ways things work in France, these clever chappies want to motivate employers to continue to not hire people. Outstanding.
There is a lot of stuff about Dubai at the moment. The issue of Dubai Ports’ purchase of P&O and the reaction by certain American Democrat and Republican politicians is a massive story Stateside, though it has not registered much in the UK, unless you are a reader of the business sections. There is a smell of protectionism in the air in Europe too, with a number of European states scratching each other’s eyes out about merger and acquisitions involving banks and utilities. Plus ca change..
Dubai is now a major story on a number of fronts. The BBC recently ran a series of programmes about the incredible amount of construction happening there and the local magnates and immigrants who are driving the economy forward. A vast artificial archipelago of homes and estates has been built into the Gulf. Dubai is also a major business and media centre, a place where a lot of sporting and cultural events goes on. Dubai is also becoming one of the major venues for business conferences in areas such as finance.
So it seems to me that even with all the reservations one might have about that part of the world and the islamist threats not far away, Dubai’s vibrancy is a sort of Good Thing. The place has, potentially, the capacity to exert the same impact on parts of the Middle East as Hong Kong did on mainland China. Perhaps it is all a bubble and will go up in smoke, as the Eyeores out there might think, but on the whole I am optimistic. Let’s face it, pessimism is a sort of cop-out.
May the meme of liberty spread out from its borders and confound the naysayers. Meanwhile, this man is doing something highly admirable.
The Oscars are nearly upon us. (Okay, please try to keep reading) One thought prompted by this circus and what goes on in films is how films can carry messages very different from the intentions of the film-maker. A classic example is the 1987 film, Wall Street, in which Michael Douglas gave what I thought was his greatest performance as Gordon Gekko. Gekko is what your average lefty Hollywood producer imagines is a capitalist: incredibly greedy, callous and crooked, stamping the lives of good honest hardworking people, blah, blah, blah. And yet we know that in the course of the speech, Gekko gives his tremendous “greed is good” speech, which I sometimes think reads like Ayn Rand on acid.
A friend of mine, Libertarian Alliance founder Chris Tame, once told me that during this stage of the movie, he burst into applause, much to the surprise of the other cinema-goers. I wonder how many other folk have had the same reaction to a speech or line in a film where without realising it, a pro-capitalist point has been made in a way the director probably had not intended? Has anyone got any examples?
The ideal gift idea for that collectivist friend in need of enlightenment and help in doing maths. (Thanks to those clever folk at the von Mises Institute.)
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Who Are We? The Samizdata people are a bunch of sinister and heavily armed globalist illuminati who seek to infect the entire world with the values of personal liberty and several property. Amongst our many crimes is a sense of humour and the intermittent use of British spelling.
We are also a varied group made up of social individualists, classical liberals, whigs, libertarians, extropians, futurists, ‘Porcupines’, Karl Popper fetishists, recovering neo-conservatives, crazed Ayn Rand worshipers, over-caffeinated Virginia Postrel devotees, witty Frédéric Bastiat wannabes, cypherpunks, minarchists, kritarchists and wild-eyed anarcho-capitalists from Britain, North America, Australia and Europe.
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