afoe 3.0a

Someone once said that there’s nothing really new to the concept of „Web2.0“, that it is really just a marketing ploy designed to actually make those people (in German) get what it’s all about. Someone else said that it all could have been done just as well with a cgi and some Perl back in 1995. And that’s probably true in some sense. But just as my claim to a successful voice over IP telephone call using a 14.4kpbs modem in early 1995, it is also entirely misleading.

If you’ve not been on holiday for the last week, you’ve probably spent as much time on the web as you did in a whole month in 1995 – or more. In 1995, when Sandra Bullock ordered a pizza over the web in „The Net“, I had a good laugh thinking ‚why would anyone ever want to do that?’ Now, while the pizza is probably still best ordered with a traditional phonecall, the web has improved in a lot. Ten years ago, there was still scaffolding everywhere. Now, even if you’re not playing “Second Life“, it has become a not too uncomfortable place to hang out, read, write, watch crazy stuff, or chat with people.

Just as the social invention of the telephone followed its technological invention and, in many ways, surprised those who had to evaluate its potential value before, the web will keep surprising us. And occasionally, we will try to classify phases and identify them with numbers. So websites with increased interactivity and partly user created content – that’s web 2.0.

So what is 2.0 about afoe now?
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Under the Frog

Novermber 1955:

Tired of trying to crack the problem of the informer, Gyuri settled down to think about being a streetsweeper while he gazed out of the window at the countryside that went past quite lazily despite the train’s billing as an express. The streetsweeper was a sort of cerebral chewing gum that Gyuri popped in on long journeys. A streersweeper. Where? A streetsweeper in London. Or New York. Or Cleveland; he wasn’t that fussy. Some modest streetsweeping anywhere. Anywhere in the West. Anywhere outside. Any job. No matter how menial, a windowcleaner, a dustman, a labourer: you could just do it, just carry out your job and you wouldn’t need an examination in Marxism-Leninism, you wouldn’t have to look at pictures of Rakosi or whoever had superbriganded their way to the top lately. You wouldn’t have to hear about gambolling production figures, going up by leaps and bounds, higher even than the Plan had predicted because the power of Socialist production had been underestimated. Being a streetsweeper would be quite agreeable, Gyuri reflected. You’d be out in the open, doing healthy work, seeing things. It was the very humility of this fantasy, its frugality that gave the greatest pleasure, since Gyuri hoped this could facilitate its coming to pass. It wasn’t as if he were pestering Providence for a millionaireship or to be handed the presidency of the United States. How could anyone refuse a request to be a streetsweeper? Just pull me out. Just pull me out. Apart from the prevailing political inclemency and the ubiquitous shittiness of life, the simple absurdity of never having voyaged more than two hundred kilometres from the spot where he had bailed out of the womb rankled.

The train went into a slower kind of slow, signalling that they were arriving in Szeged. This was, he knew from his research, 171 kilometres from Budapest.

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Italy’s Supply Constraint

The OECD estimates the current potential capacity growth rate of the Italian economy at 1.25% a year. Actually I suspect even this very low number is over-optimistic. Growth since 2002 has been as follows: 2003 – 0.1%: 2004 – 0.9%: 2005 – 0.1%. To be sure forecast growth for this year is somewhat higher, at 1.4%, and optimists are expecting this to be more or less repeated next year. But I suspect this outcome is unlikely simply because the global economy now seems to be slowing (and in particular the ever important US economy),so the strongly advantageous situation of 2006 is unlikely to be repeated, while next year the Italian government has promised to introduce an important package of spending reductions which are bound to negatively affect growth, at least in the short term..

But why is potential growth capacity in Italy so low?
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Noted With Pleasure: Reindeer People

One of the other books that I picked up while in Helsinki was Reindeer People: Living with Animals and Spirits in Siberia, by Piers Vitebsky. (US paperback coming in December.) He’s an anthropologist at the University of Cambridge, and the reindeer people are his research specialty. The book, however, is an engrossing synthesis aimed at a general audience. More than that, though, it’s a personal account of living with nomads, clashes of cultures (ancient, Soviet and post-Soviet) and vivid personalities, all played out in a beautiful and harsh land. I picked up the book in part because I had just missed meeting some reindeer people when I was in northern Mongolia a few years back, and I wanted to learn what their way of life was all about.

I got much more: how reindeer are partially domesticated, what the coming of Soviet power meant to the far North, how people are surviving its ebb, how reindeer migrate, what Arctic cold means in practical terms, to name just a few. Vitebsky writes well, he’s chosen interesting ground to cover, he can sketch people, relate key anecdotes and sustain narratives about their conflicts. Layer upon layer, like the clothing the Eveny wear in winter, Reindeer People envelops the reader, imparting something of those distant lands.

A Face That Launched A Thousand Ships

An unlikely Helen, Spain’s deputy prime minister, Maria Teresa Fernandez de la Vega, that’s for sure. Yet outside a few thousand years difference in timing the two seem to have been cut out for one and the same the same historical role: urging the boats to go back. Indeed the only thing which really separates them might be the magnitude of the problem to hand, since Coalición Canaria president Paulino Rivero suggested this weekend that what might be involved were not a mere 1,000 ships, but anything between 10,000 and 15,000 currently being built along the Mauritanian and Senegalese coastlines.

Joking aside this post is about tragedy, a human tragedy. According to the NGOs who are involved some 3,000 people have already died in attempting to make the hazardous crossing, a crossing which was actually completed over this weekend by a record 1,200 people in 36 hours.

As well as tragedy the post is also about folly, the folly of those economists who think low fertility isn’t an important economic issue. This opinion was recently expressed by respected US economist Greg Mankiw, (on his blog) who described the very idea that it might be as ‘wrong headed’ and, to boot, suggested that a poll of the world’s top ten economists would draw a blank on names who thought that low fertility was among Europe’s major economic problems. I am sure Mankiw is right about the poll, and this is why I use the expression ‘folly’. So what do I mean?
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Spy kids

Huge flap in Romania this week, as it’s been revealed that the Communist-era secret police recruited children to spy on parents and classmates.

This should come as no surprise. Nicolae Ceaucescu was a creepy little thug, and his Securitate were the scum of the earth. If you can think of a sleazy, evil activity, there’s a good chance Old Nic was into it. Assassinating troublesome Romanians abroad? Absolutely. Torture? Dude, they had training courses. Rewriting history, complete with forged photographs? They had a building full of people for that. You can argue whether Ceausescu was a “Stalinist” or not, but his regime knew all the tricks, and used them.

So, of course they had kids spying on their parents. For everything from Mom’s habit of listening to foreign radio stations to Dad’s jokes about the Ceausescus. While people may not have known this, exactly, it’s not something that should come as a shock.

So why the fuss?
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American Dreamz: When satire doesn’t go far enough

A few months back, I picked up, on a lark, a short French novel called Allah Superstar authored by the pseudonymous Y.B. (generally known to be Yassir Benmiloud, columnist for the Algerian daily El Watan). I bought it entirely on the basis of the excerpt on the back cover:

Une fatwa, voilà ce qu’il me faut pour devenir à la mode. C’est plus rapide que Star Academy, ça dure plus longtemps, tu voyages dans le monde entier, tu donnes des conférences, tu descends dans des palaces, tu montes sur scène avec U2, tu prends le thé avec le pape, une bière ou deux voire trois avec Chirac, une vodka givrée avec Poutine, un cigare humide avec Clinton, une grosse ligne avec Bush Junior, un masque à gaz avec Saddam Hussein, à chaque fois que tu dis une connerie tout le monde entier il t’écoute vu que tu as une fatwa au cul le pauvre, alors que le monde entier il est autant dans la merde que toi vu que c’est bientôt la fin du monde pour tout le monde.

A fatwa, that what I need to get famous! It’s faster than Star Academy [a French American Idol-type show], it lasts longer, you can travel the world, give speeches, stay in palaces, be up on stage with U2, take tea with the Pope, a beer or two or even three with Chirac, a chilled vodka with Putin, a humid cigar with Clinton, snort up a thick line with Bush Junior, share a gas mask with Saddam Hussein, and no matter what stupid thing you say everybody listens because you have a fatwa on your ass, while everybody else is just as deep in shit as you are seeing how the world’s gonna end real soon.

Allah Superstar, written as a monologue in several chapters, follows a young Frenchman of half Arab, half-European ancestry as he tries to become a famous comedian. Ultimately, he is seduced to, well, the Dark Side of Islam, gets his fatwa as part of a fundamentalist plot to make him famous, and when he is finally asked to perform at the Olympia in Paris (think: the French version of Radio City Music Hall) for a special September 11th performance, he blows himself up on stage, killing most of the audience.

This plot is similar enough to the one in the film American Dreamz (which has already been out for six weeks in the States, but only just came out here, and which I went to see this afternoon because, frankly, the World Cup is not my bag) that I wonder if “Y.B.” has considered suing the film’s producers. It’s far from identical, but weaker claims have led to studios to pay up.

But where Allah Superstar is a satire of French society that brings together the desire for fame at all costs, transgressive comedy and fears of terrorism, American Dreamz, directed by the man responsible for American Pie, is merely a little joke on shows like American Idol and President Bush. As satire, it falls far below the potential implicit in its concept.

The rest of this review contains spoilers, so you decide if you want to read it.
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Photographs on the fence

If you’re ever in Pristina, capital of Kosovo, you’ll want to swing by the Government building.

(It’s called the Government building because, well, that’s where the government is. The Parliament, the Prime Minister, the President, and half a dozen or so government agencies are all squashed into one huge building downtown. It’s sort of refreshing. Imagine being in London or Berlin and just popping down to “the government”.)

Why? Because there are these photographs. Between two and three thousand of them… closer to two, I think. The government building has a fence around it; and, since the building is pretty large, the fence is easily a couple of hundred meters long. And it’s covered with the photographs of Kosovar Albanians missing in the 1999 war.

It’s not a very cheerful display, obviously. But it’s certainly food for thought. And if you walk the length of the fence, you’ll spot some patterns.
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A pro-dismal bias in economics?

In a comment to his earlier assessment of the OECD’s new economic outlook, Jasper is raising an interesting, almost philosophical question that I think is worth a discussion in its own right. He claims that –

Economists should study the economy so they can finetune it to suit the needs of the people living inside this economy. They seem to be studying the economy so they can promote policies that finetune the people to suit the needs of the economy.

I would argue that Jasper’s statement correctly captures the sentiment, but not the rationalised opinion, among a growing part of the European population. The disconnect is palpable. So the question seems to be whether our governing institutions (and those trying to capture the essence of reality for them) are not able to accurately understand the people’s true preferences, whether our institutions do not allow an accurate externalisation thereof, or whether this is not simply a matter of lack of understanding.
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Migration And Reform

Well today is obviously immigration day, as thousands of Latinos take to the streets in the United States to demand some kind of ‘regularisation’. I have been posting on Demography Matters about the changing pattern of Latino migration in the US, and on the not entirely unrelated topic of whether it is the arrival of the Latinos or the presence of religious belief which is primarily responsible for the fact that US fertility is still hovering round the replacement mark (especially the comments, and here, and here and here).

But this post is not about migration in the United States. Rather it is about migration inside the frontiers of the EU itself. As populations age, and our economies come under increasing strain, some societies will prove more able to reform than others. Now one conjecture I have been making is that in this process some societies will attract population (and get that famous win-win dynamic going) while others will lose even that which they have (sounds a bit like the biblical parable now doesn’t it). Actually economists have terms for all this. You might say that the ones who attract are experiencing an increasing returns process, while those who lose are suffering from negative feedback.

Claus has already touched on how Denmark is suffering from a lack of immigration (and me here), in the sense that more people are now leaving than are arriving, but perhaps more importantly for the future of the entire EU, Germany is very near to becoming a net exporter of people (and here).

Pperhaps a bit more spice was added to this already simmering cooking-pot last week by a sudden, and rather unexpected, bout of finger pointing from Peer Steinbrück, Germany’s finance minister, in the general direction of Vienna. Now according to Steinbrück, Vienna’s recent decision to cut corporate tax rates from 34 per cent to 25 per cent has led to an increasing number of German companies investing across the border in Austria. In other words, not only are people leaving, companies are now also leaving, and to less than anticipated destinations, and of course, on the backs of the companies will go even more people. Are we really so sure that that recently heralded sustainable recovery is as sustainable as some are suggesting? Morgan Stanley’s Eric Chaney understandably still has his doubts.

The real issue is this: as the FT says “Mr Steinbrück has limited room for manoeuvre in the tax field because of Germany’s high budget deficit”. All these issues interlock. So, on a day when Jaques Chirac seems to have taken a step backwards in the French reform process, it might be just worth asking ourselves whether, at the end of the day, there won’t be a price to pay for all this ‘no rush now is there’ style delay.