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Saturday, 6 March 2010

Financial Innovation_The Economist Debate. Stiglitz sways the field advocating a more cautious regulatory approach. CASE for MASS TORTS?

Levine vs Stiglitz: A Case for The TORTS LAWERS?

The debate is summarised in 4 Points, by The Economist's Zanny Minton Beddoes, head of global economic coverage and ex-IMF economist, (cf full summary in reference below)

I. -Both Ross Levine and Joseph Stiglitz agree that financial innovation can boost economic growth.

-Both acknowledge that some innovations have caused harm.

THE FOCUS OF THE DEBATE
They differ—and hence where the discussion focused—is in their assessment of whether the financial innovations of the past 30 years have, on balance, been beneficial; and on how best to minimise "bad" innovation while promoting the good sort.

II. Mr Stiglitz is sceptical of the benefits of much recent innovation. He focuses on the many misaligned incentives within finance, and advocates strong regulation with a precautionary focus. Mr Levine sees greater benefits from modern finance, and is concerned with government failures, especially regulatory failures. These differing perspectives are reflected in the debaters' policy prescriptions. Mr Stiglitz wants to create a "Financial Product Safety Commission" to assess the safety and effectiveness of new financial innovations. Mr Levine suggests a new independent agency to watch over today's financial regulators.

III. At the beginning of our debate a small majority (54%) supported the motion. Now a slightly larger majority (57%) oppose it.

MY COMMENTS AND REFERENCES
That's a big swing in electoral terms but there are still 43% against Stiglitz prescription. These are the numbers but where does the balance of power lie, most likely with those with most money - remember this is an educated persons debate and intelligence is not all. ]

These considerations remind me of a powerful minority call by top management (union) for improved self regulation on pay, "performance related" bonus, free stock options, etc...
Here we see daily with what diligence power puts its machine into motion to solve recognised issues.

->RELATED POSTS

INNOVATION -THE WORTHWHILE PROJECT-Conversational styled, review of science's powerful tool "The Experimental Method" in politics and humanities

Sidewiki REf (en référence à) :

"At the beginning of our debate a small majority (54%) supported the motion. Now a slightly larger majority (57%) oppose it."
- Economist Debates: Financial innovation: Decision ( afficher sur - on Google Sidewiki)

Monday, 22 February 2010

Policy, Politics: Sustainable development; Localism versus Centralisation

I came across the article entitled “Localism-Unravelling the Supplicant State” by David Boyle, New Economics Forum (nef)


Two key words caught my attention, "Localism" and "Sustainable Development". They brought my attention to “nef” a website, new to me, with a green bent and which I found well worth the visit. It proposes many freely available papers.

My rapid reading of "Localism" led me to believe that the example taken from Britain, upon which I am now, as an longstanding ex-pat, ill equipped to comment nevertheless as an international I felt could well have international ramifications and perhaps inspire other countries and economies. Specifically I am thinking of current trends in France where I have lived for many years. Generally Boyle’s paper and methodology could have useful benchmarking value.

Summary of the Localism pamphlet.
“Localism-Unravelling the Supplicant State - is a pamphlet that claims to mark a key shift in the relationship between central and local, as laid down in the Sustainable Communities Act in UK. It attempts, first and foremost, to set out a far broader agenda for the concept of localism, some way beyond the administration that so obsesses politicians, and one that might be capable of achieving a truly sustainable economy,” says Boyle.

It bases its economic analysis on a report , known familiarly as "Ghost Town Britain”, the brainchild of Andrew Simms and Alex MacGillivray who, in 2002, warned that many banks, shops and post offices were closing on Britain’s high streets and that many of them faced a looming tipping point into complete shutdown. The report also listed the disappearance of local police stations, local playing fields and local pubs. All these phenomena had been known before,[Indeed] but had been discussed as separate problems. [Déja Vu, the region where we live has been loosing about 1000 inhabitants per year for the last 10 years or so!]

“What Ghost Town Britain did was to package them as one problem, and – what is more –a problem of economic centralisation,” the author claims.
‘The Supplicant State’, is defined as a phenomenon whereby a state and corporate infrastructure that feels comfortable only when we are all reduced from citizens into supplicants (humble beggars or earnest prayers), to huge, impersonal forces beyond our control.

Administrative localism
Firstly Boyle considers Administrative localism. He quotes Lord Shawcross ( Lord Shawcross of Friston, died 2003 aged 101)
“The housewife of Britain has to accept that the man in Whitehall really does know best.” [The still very Colbertian - Etatic French equivalent would probably be The famous technocratic elite, ENARC Graduates from the prestigious Ecole National de l'Administration and in Industry it would be X-Mines, Graduates of Polytechnique Paris couple with a specialisation at the famous Ecole Nationale superieure des Mines de Paris.]

Boyle takes of course the opposing view to Shawcross, with examples from Norway and more dubiously from France albeit that the decentralisation effort was true in 1982. The point Boyle says he tries to make is that “the UK’s neighbouring countries and allies realised the damage that the drift towards centralised decision-making was doing, to their own democracy and public services, and reversed the trend.” (! )[ in spite of the efforts of French-Norwegian Judge Eva Joly , I may add.)

Boyle argues that political parties (PPs) decision-makers themselves, believe it is only about decision-making – just about the business of devolving decisions to local boards or local voters and claims that PPs do not yet understand either how damaging centralisation has become, or the official mindset that creates it, how it undermines – not just faith in government – but the effectiveness of our public services, our well-being and our ability to sustain ourselves economically.
Boyle provides a numbers to reinforce his thesis in favour of more and better balance in devolution, decentralisation and empowerment goes give similar treatment to administrative inefficiencies.

Five important areas requiring more decentralised power and responsibility Boyle listed are:
1. Re-localising decision-making
2. To front-line staff.
3. To service users.
4. To smaller organisations.
5. To local business.
Each is explained in Boyles pamphlet.

The pamphlet attempts to give a definition of a broader concept of what localism could and should mean in opposition to what the author sees as a ploy by political parties (PPs) to keep the localism debate narrow; The PPs do this by giving the impression that the whole idea is brand new, and that they are the brave pioneers.

Boyle considers that the roots of localism go back a very long way, via Catholic social doctrine – and the doctrine of ‘subsidiarity’ – right back to the Scottish enlightenment. "It was there, in the coffee houses of eighteenth-century Edinburgh, that the philosopher David Hume first cast doubt on scientific method, peering at ideas about what causes what and finding there was nothing there. All you can do, apparently Hume said, is say that events tend to happen together." [I would point out that Hume’s remark should be considered in the context of his time, a time of European turmoil notably the French Revolution,[David Hume Scots Philosopher was a friend of J-J. Rousseau, French Philosopher] times where political correctness and diplomacy were, in all probability, strongly advisable, democracy still to be re-invented - I have argued fairly recently following French, (English speaking) Sociologist Bruno Latour, in my paper on The Innovators Dilemma entitled “Conversations-on-Innovations” that politicians should take the scientific experimental approach to their decision making cf. Conversations on the Search for a ‘Physics and Chemistry – an Alchemy’ of Innovation - Reward Systems.

Two centuries after Hume was writing in Edinburgh, the Viennese philosopher Karl Popper, a refugee from the Nazis, came up with an interim answer. But, more importantly, he also applied it to politics. You may not be able to prove what you believe about the world, no matter how often an observation or experiment takes place, but you can disprove it. Popper used the example of swans. It doesn’t matter how many white swans you see, it still doesn’t prove that all swans are white. But if you see a black swan, then you know that not all swans are white. This rejoins the thesis referred to in Conversations above in that Popper’s method is an experimental one.

Popper was writing during the Second World War, when his home city was in the hands of totalitarians, and he found himself applying this insight to politics too. In doing so, he produced one of the classic twentieth-century statements of philosophical liberalism, (not Neo-liberal today’s abusive form) “The open society and its enemies, ( Neo-liberals) Societies, governments, bureaucracies and companies work best, he said, when the beliefs and maxims of those at the top (many of whom unwittingly are Neo-liberals) can be challenged and disproved by those below.” Quotes Boyle.

At the heart of all this is a decadent metropolitan snobbery. It is because the contempt that the City of London feels for industry and small business, and the contempt that Whitehall civil servants feel for their local counterparts, has been swallowed whole by Labour and Conservative governments alike.

That is the heart of the new Supplicant State, Boyle repeats.

As a conclusion Boyle asks, rhetorically, if there is any issue to the “Supplicant State” syndrome he describes?

His response is an optimistic "yes-we-can" Why? “Because of the economic crisis, adding that,” diverse local economies seem to be considerably more resilient than ones that are dominated by a few big names.”

Twelve measures necessary to target:
Boyle lists Twelve measures necessary to target: while bearing in mind the need for balance Localisation vs Centralisation. I’m afraid you must read the original, to be fair to Boyle.

COMMENT
My view of local vs central is a much simpler one dictated by birth, education and geographic distance from central power.

1. Culturally as a Scot, born raised and educated in devolution, independence of spirit and mind, engraved by church-religion protestantism "Life and Work" is the motto of the Scots Kirk, legal and eduction system, far from central power. As many individuals (social and sociable animals), a civic sense, a sense of neighbourhood, values of pulling one's weight not off-loading one's weight, over-weight on others.

2. Ecological-Environmental reasons: Peak in petrol, Climate- change Energy conundrum.
"Too easy to consume energy vs energy production" in today's developed economies not to mention the incredible race to emulate our model in rapidly developing countries or continents India, China... cf. FRS, Prof. David MacKay's Without hot air.

I strongly believe that taken together a balance - an equilibrium point, will be reached easily. The balance is written in the definition as it is in "Without hot air. So too are many of the action necessary to achieve an energy... balance.


I must note here that if I can manage the translation from the original french I must type an publish my "No-holds-Bard and Barred" "sketch for the development of a department and a region.

My Own 1st Approach:
Conversations on the Search for a ‘Physics and Chemistry – an Alchemy’ of Innovation - Reward Systems.

Friday, 19 February 2010

Links: Innocentive Challenges All categories

Innocentive Challenges All categories


Please find the following feed (RSS) to all current InnoCentive challenges; Multiple disciples are reported regularly. Most Challenges are of a highly skilled scientific nature. Major players such as Nature, NASA etc now contribute under the label Pavilion.

Wednesday, 17 February 2010

The Marketing Concept - Back to basics- Plus 8 Disciplines of Management

Bookmark this site, a handy reminder of a primary focus of all firms, and business in general, namely Marketing. It sets this against the two important composants; Production's focus and Sales' focus.

It is short and to the point.

And, as if to remind myself that this blog is focused on management, the site is equally efficient in recalling the "bottom line" on all 8 major disciplinary involved in any holistic approach to management

The Eight Disciplines of Management:

-Accounting.
-Economics.
-Finance.
-Management Theories, Models, Approaches.
-Marketing.
-operations.
Statistics.
-Strategy.

Don't hesitate to visit this rapid overview of these interdisciplinary subjects.

Reference NetMBA business Knowledge Centre

en référence à : Marketing Concept (afficher sur Google Sidewiki)

Wednesday, 10 February 2010

Technology Vision 2020 - Advanced Materials and Processing - India

While up-dating my list of earlier and much appreciated colleagues in metallurgy, materials and related industries, I came across this foresight activity carried out by colleagues in Materials & Processing in India.

"Materials & Processing : Technology Vision 2020" is reported on the attractive Gov. of India backed website dedicated to Technology Information, Forecasting and Assessment Council (TIFAC) .

As chief metallurgist, team leader and co-ordinator of the technical assistance "Know-How" team, I had the enormous pleasure to assist senior management of the MIDHANI project under its first Chairman Dr. Tamhanka during the successful first commissioning of their brand new plant designed for special steels and alloy manufacturing. Plant commissioned : EAF-VIR-electric arc furnace - vacuum induction refining unit, AIM-Air Induction Melting VIM-Vacuum Induction Melting VAR- Vacuum Arc Remelting and ESR-Electroslag Remelting (1979)

Full commercial production from the entire integrated plant : melting-remelting, transformation forging, rolling, extrusion, and finishing; machining,polishing...h began in 1983.

Best regards to all concerned and belated good wishes 2010.

More information upon request.

Reference (en référence à) : TIFAC (shown on (afficher sur) Google Sidewiki)

Monday, 18 January 2010

Materials Science and Engineering Defined: Science and Engineering Indicators 2010 released by US National Science Board (NSB), Jan15.

US lead in Science and engineering could be "cracking-up" according to NSB SEI 2010 Committee Member J-Marie Griffiths.

Truely an ebook:
Science and Engineering Indicators 2010 released by US National Science Board (NSB), Jan15.

Read my post via the following link
Materials Science and Engineering Defined: Science and Engineering Indicators 2010 released by US National Science Board (NSB), Jan15.

And for frequent easy access a link has been added to my RHS, Foresight-Hindsight vertical menu bar.

Thursday, 14 January 2010

Apologies to IE users, Congratulations to FireFox...

I have just discovered and now rectified an IE browser problem on all my blogs. Unknown to me one of my widgets made my blogs inaccessible with this very popular browser. The incriminated widget has now been replaced by a similar approach "Blidget" from Widgetbox. I trust that readers will no longer encounter hindrance. I naturally hope that such incidents will no longer result in loss of followers and any click through revenue from what I believe to be relevant and informative adverts brought to readers by AdSense. Amazingly the widget problem did not result in loss of access using the FireFox browser. I now believe my posts will be accessible via both these majors and all browsers of my readers choice. If readers and followers experience further hindrance please do not hesitate to drop me a note, if possible.