It’s Election Time in Europe

So Greece has a new government, Haider seems to be staging a comeback and next Sunday Spain is going to the polls. On this latter I will post something during the week, meantime, since I confess to knowing next to nothing at all about the significance of the Greek results, or the real state of play with Haider: anyone out there feel willing and able to give us some insight? Especially with those tricky and potentially significant Cyprus negotiations looming right in front of us.
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Mr K?hler Comes Back from Washington

Germany’s center-right and liberal parties have finally agreed on a candidate for the country’s largely, but not completely, symbolic presidency. Because these parties have been winning elections at the state level over the last few years, they have a working majority in the body that elects the president, even though they are actually in opposition.

(The selection itself has been a bit of an opera bouffe. Bild‘s lead yesterday showed various Muppets and cartoon characters over the headline, “Even more candidates!” The serious press had similar, if less colorful, opinions.)
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Going Into Business

“Madam Wang Haiyan, who runs a pre-school class from her home, reckons that she would have been earning half of what she is now and be less happy to boot if she had stayed in her job at a state-owned firm. “

Any one else round here old enough to remember Dustin Hoffman’s ‘Little Big Man’, with the character who insisted on riding his horse back to front? I feel a bit like that sometimes: with my back-office for India and China right here in Barcelona. Of course this makes life pretty surreal, people waltz in on the messenger at all times of the day and night: from all the strange corners of the planet.

This morning it was the turn of one of my ‘sources’ in China: he came in over the messenger to tell me he’d left his job. He has had a ‘new’ idea. He is going to set up a company to do guess what? Outsourcing. He is dead set on it since he tells me he can get university graduates in China to work for him for ‘just’ 150 dollars a month.

Actually in his case no one is going to accuse him of destroying western jobs: he wants to design and put up websites for Western clients who want to sell to Chinese customers. We might well ask ourselves however, if he is succesful in this how long it will be before he leverages his position to start offering those websites in more distant climes. And good luck to him.
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Eta And The Spanish Elections

As someone who lives and works in Barcelona (capital of Catalonia, and formal definition in the eyes of the local nationalists of being Catalan), it is really rather frustrating to find that about the only time we make it to the European headlines (apart, of course, from when Bar?a wants to buy some world famous footballer like Beckham) is when one of the players in the greater-Spanish political arena – in this case Eta – wants to exploit some situation or other here to its own advantage. Outside of this context (and with, of course, the honourable exception of George Orwell) Catalonia is little heard of, and even less understood.
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Book Review: “European Integration 1950-2003: Superstate or New Market Economy?”

Once upon a time, there was a large, intellectually hegemonic, somewhat totalising ideology rooted in a heterodox school of economics. Its advocates proposed to make massive changes to the structure of society and claimed that only such a revolutionary realignment could alleviate the contradictions and failures of the existing order and save the world from stagnation and misery. They claimed that their programme would produce immediate results, and that the only reason it wasn’t immediately implemented was because entrenched interests were manipulating the public against them.

Ultimately, advocates of these principles did gain power in many places and were able to implement elements of their programme. Some came to power through revolutions of various kinds that granted them the near-dictatorial powers they needed to make the changes they believed necessary. Others were able to convince electorates and even elites that theirs was the way of the future. They turned public dissatisfaction to their advantage, especially during economic downturns when people were willing to turn to new solutions and elites feared that the masses would turn against them.

And, they had some arguable successes, but no unambiguous ones. In some places, particularly those where effectively unlimited power had shifted to them, they often maintained highly inequitable regimes which grew harder and harder to justify, faced ever growing public disaffection, and turned to more oppressive and manipulative means to sustain control. This undermined their movement, but despite the best efforts of their enemies was not quite able to kill it off.

In states where more democratic methods had been used, the need to compromise with established interests and to sustain public consent forced them to accept measures often contrary to their initial programme. Their ideological identity tended to shift over time as winning elections grew more important than ideological purity and as the drawbacks of real power became apparent. Actually being held responsible for results forced many members of this tradition to accept their enemies’ interests as at least partially legitimate, and compelled them to less radical legislative programmes.

In some of those nations, these radical parties became increasingly manipulative and difficult to distinguish from their former enemies. But, in a few places, the necessary dilution of their programme brought about an ideological synthesis that appeared successful, and this success in turn showed that the radical programmes they had once advocated were perhaps unnecessary. In the end, ideology had no real hold on them, and the models and methods that seemed to work became the political and economic programme that they were identified with. Their former allies who operated more dictatorial regimes were easily repudiated.

But others were unable to accept that option. They included dissidents who had been burned by the growing authoritarianism of their own failed revolutions, or who were simply unable to accept that their early ideological purity had become superfluous. They were isolated and powerless, only able to function in the states where their former allies had become moderates, leaving them without meaningful public support. They fumed at the world’s unwillingness to go the way they wanted, and increasingly recast the history of the world in terms of their own ideological predispositions. The past became, in their minds, an unending conflict between an ideologically pure vanguard and scheming established interests, a story of their courageous champions betrayed by back-sliding traitors. Ultimately, the world moved on and these radicals virtually disappeared outside of intellectually protected milieux like privately-funded think tanks and universities.

Of course, by the now the astute reader will have recognised that I am talking about the history of neoliberalism.
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Parmalat Update

Well, well, what do you know: Paramalat’s real debt is much bigger than was first thought. What a surprise. According to the Financial Times Parmalat’s gross debt now stands between ?14.5bn and ?14.8bn ($18.08bn-$18.46bn). At the same time its main Italian operations barely made a gross operating profit last year. Meantime Italy’s unions are threatening a strike iif the government reduces the regulatory role of the central bank. The dispute has arisen as a result of the Parmalat scandal, which the government blames partly on a failure of oversight at the central bank. As a solution the finance ministry wants to reform financial market regulation in Italy so that the central bank would no longer supervise corporate bond issuance and competition in Italy’s banking sector. The unions object to this.

Actually this was meant to be a quick post, but while writing it I cannot help reaching the conclusion that Italy may be begining to fall apart. Just wait till you read this.
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I Don’t Understand Modern Conservatism

The recent biography of Mrs Thatcher by John Campbell (in particular volume one, The Grocer’s Daughter) did a good job of setting out just how much Hayek’s writings shaped Thatcher’s political outlook from her student days in Oxford onwards, in particular by paying close attention to her political speeches around 1950, when she was running for Parliament in Deptford, some of the few occasions in her early political career when she was making speeches without being bound by front bench discipline.

That part of the Right of the Conservative Party which is most keen to claim its legitimate political descent from Mrs Thatcher is most adamantly opposed to the European Union in general and British participation in the single European currency in particular.

I sometimes think that this should puzzle us more than it does…
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The Price of Obesity

Economist for Dean Lerxst gets hold of something really interesting in a post yesterday ( which Calpundit also picks up on). He draws our attention to the fact that some US economists have recently been arguing that there has been a significant rise in individuals claiming disability benefits and this has taken a large number of workers out of the labor force, thus – at a stroke – reducing the “official unemployment rate”. The research by Mark Duggan and David Autor is discussed in a NYT op ed by University of Chicago Professor Austan Goolsbee.

Lerxst also highlights the significant role obesity may play in this. He cites an article in Friday’s Wall Street Journal describing a new study by RAND Health economists showing that obesity may actually be the “primary” explanation for the rise in the disability rolls. According to Dana P. Goldman, director of health economics at Rand and the principal investigator on the study cited in the WSJ there is “evidence to support (the idea) that obesity may be a primary reason.”
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The headscarf: Radical Islam’s greatest secret weapon

When I first came to Belgium, one of the things that genuinely surprised me is how people seem to think Buffy, the Vampire Slayer is a children’s programme. Admittedly, the title doesn’t exactly say “socially relevant drama”, but I doubt that the show’s success on American TV would have been possible without the age 24-55 market. Eventually, I started asking people what it was about the programme that made them come to that conclusion.

In most cases, people never really got past the name. Fantasy on the continent seems to be a very different animal than in the US. For example, when I suggested that Buffy is no more fantasy than Le Fabuleux destin d’Am?lie Poulain, I was greeted with shock. No, no – I was told – Am?lie is magical. The Paris it is set in – the clean one, without the graffitti and street crime – is fictional, of course, and the plot is certainly not realist, but that doesn’t mean it belongs in the same category as vampires.

In a lot of cases, the real problem was linguistic. Buffy in French sounds very childish, spouting verlan and action movie clichés. The wit and prose skill of the original writers is completely lost, and even if you watch it in English on Flemish TV or the Beeb, I guess non-native speakers just don’t get it.

But I had one answer that surprised me. One person thought it belonged in the same category of American TV as Beverly Hills 90210. Why? Because of the clothes Buffy wears. No school would ever let a girl dress like that to class. I had to explain that in California, Buffy’s clothes aren’t even close to excessive.

The Belgian school system places some demands on students that American schools don’t. Personally, I don’t have a real problem with the imposition of a reasonable dress code in school. It is, if anything, one of life’s most minor injustices. Besides, I remember what it felt like to wear clothes from K-mart at a school where designer jeans were de rigueur.

However, I have some problems with this:

Deux s?nateurs veulent interdire le voile ? l’?cole

BRUXELLES Deux s?nateurs de la majorit?, Anne-Marie Lizin (PS) et Alain Destexhe (MR), ont d?pos? une proposition de r?solution qui invite les autorit?s f?d?rales et f?d?r?es du pays ? adopter des textes l?gislatifs portant sur l’interdiction ? l’?cole, et pour les agents de la fonction publique, de signes manifestant une appartenance religieuse.

Anne-Marie Lizin esp?re que le bureau du S?nat mettra sur pied une commission ad hoc qui pourra se pencher sur cette question d?licate, avec comme fil rouge le texte de la proposition de r?solution.

Pour Alain Destexhe, qui s’appuie sur la position de la Communaut? fran?aise, sur l’avis du Centre pour l’?galit? des chances, sur les diff?rentes d?clarations politiques et sur divers arr?ts, rapports ou recommandations tant belges qu’?trangers, le d?bat est clos, il est temps d’agir. Pour le s?nateur MR, il faut se demander ce qu’implique de vivre ensemble en Belgique au 21?me si?cle.

Il s’agit de d?fendre la libert? de conscience et la compatibilit? des libert?s dans l’espace public, ce qui implique un certain nombre de r?serves au sein de l’administration et ? l’?cole. L’?cole doit ?tre le lieu de l’apprentissage d’une conscience critique et de la promotion de valeurs universelles, ajoute-t-il.

Pour Anne-Marie Lizin, ?le voile, c’est la pression sur l’individu au nom d’une religion ?. La s?natrice de Huy estime qu’il est urgent de l?gif?rer au nom de l’?galit? homme-femme et pour soutenir le combat des femmes musulmanes dans chaque pays o? elles disent ?non? ? l’inf?riorit?.

L’initiative des deux parlementaires se fait en toute autonomie. Tant au PS qu’au MR, on ne se prononce pas pour l’interdiction du port du voile ? l’?cole. Le pr?sident du PS Elio Di Rupo a m?me estim? qu’il n’?tait pas opportun de d?battre de cette question en p?riode pr??lectorale. Mais pour Alain Destexhe, ?ne pas en discuter en p?riode ?lectorale revient justement ? alimenter le poujadisme et le vote d’extr?me droite?.

(Read on for the English translation)
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Like You, Like Me: Like Me, Like You

I don’t know why I hadn’t seen it before, but it was only while talking with a colleague this afternoon, and being asked what I thought about the unwillingness of the candidate countries to reform that it came to me: with all this coming and going on the Pact, what kind of message is being sent to the new members? Obviously if you give the impression that agreements are not to be complied with, you can get reactions you aren’t expecting, and that you don’t like. The Financial Times article you can find below, begins to give an idea of the size of the looming problem, whilst this one informs us that Standard and Poor’s has just downgraded the Polish currency rating because of concerns about deficits and rapidly growing government debt.
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