Ray Monk Lecture at 6.00 pm tonight: Go if you can

Ray MonkAs a council member of the National Library I had the privilege of not only going to this lecture last Friday night but of having dinner with Ray, the benefactors of the lecture (John Seymour – whom I taught Legal Writing and Research alongside in 1990 or thereabouts – and his wife Heather) and some other nice people that night.

In any event, I really loved the lecture which is a tour of biography through the ages and addresses Samuel Johnson’s five questions/issues about biography. What are they? Well you’ll have to come along to the lecture to find out.

In any event, one thing I loved is that in discussing biography, and the question of whether the subject of the biography has a privileged position in understanding himself that the biographer can never penetrate. Monk discussed Wittgenstein’s private language argument in a way that had relevance for my own thinking about private and public goods. Wittgenstein’s argues for the priority of the public and the shared – just as I would put public goods – specifically emergent public goods prior to private goods.

Anyway, go if you can. As you know I occasionally get a bit carried away with enthusiasm for something or other and the chiming of the private language argument with all my priors may have pushed me over the edge into this malady, but I can also report that everyone else I spoke to thought it was a wonderful lecture. And Ray was kept to time (I think 40 minutes) by Anne-Marie, our National Librarian – an otherwise wonderful woman – who nevertheless deprived us of another ten or twenty minutes of the lecture in which Oppenheimer would have been wound into the narrative alongside fellow biographees Wittgenstein and Bertrand Russell.

Italian Film Festival: a bit late

Films

Marina Play Trailer

True story of beloved singer, songwriter and accordionist, Rocco Granata, from his early life as an immigrant in Belgium to his emergence as a worldwide musical phenomenon with his 1959 song Marina, one of the biggest international hits of that era.1948 Calabria, in southern Italy, poor local worker Toto Granata leaves his wife Ida and two children to work in the Belgian mines, promising to return wealthier. But like countless others, instead of returning after a few years as planned, his family are forced to join him and adjust to a new life as immigrants in a foreign country. It is here Toto’s only son Rocco discovers his sole joys lie in young love and the music that will eventually immortalise him.

☆☆☆☆ IMDB

Show Timings

PALACE CINEMA COMO

Wednesday 17 Sep 7:00pm

Wednesday 17 Sep 7:15pm

Saturday 20 Sep 6:45pm

Sunday 21 Sep 1:45pm

Monday 22 Sep 8:45pm

Wednesday 24 Sep 1:45pm

Friday 3 Oct 1:45pm

Friday 3 Oct 9:00pm

Saturday 11 Oct 4:15pm

KINO CINEMAS

Wednesday 17 Sep 7:00pm

Friday 19 Sep 1:00pm

Friday 19 Sep 6:00pm

Wednesday 1 Oct 1:00pm

Saturday 4 Oct 6:00pm

Tuesday 7 Oct 6:00pm

Saturday 11 Oct 1:00pm

PALACE WESTGARTH

Wednesday 17 Sep 7:00pm

Wednesday 17 Sep 8:30pm

Thursday 18 Sep 4:30pm

Friday 26 Sep 7:00pm

Monday 29 Sep 4:30pm

Thursday 2 Oct 9:30pm

Thursday 9 Oct 4:30pm

Saturday 11 Oct 9:00pm

PALACE BALWYN

Monday 22 Sep 1:30pm

Sunday 28 Sep 4:00pm

Tuesday 30 Sep 9:00pm

Thursday 2 Oct 1:30pm

Sunday 5 Oct 6:30pm

Thursday 9 Oct 8:45pm

Sunday 12 Oct 4:00pm

PALACE BRIGHTON BAY

Wednesday 24 Sep 6:30pm

Friday 26 Sep 1:30pm

Tuesday 7 Oct 1:30pm

Wednesday 8 Oct 6:30pm

Friday 10 Oct 6:30pm

Lots more films below the fold Continue reading

Why ‘how to’ guides on innovation are of limited use: An ‘untheory’ of innovation

Looking for a graphic for this blogpost, it was amazing how many of the pictures were of besuited men looking anything but innovative. Not a woman or unbesuited person for miles around. But I digress …

Thinking about how to write a fairly substantial review of knowledge and innovation in the urban water industry, I listed all the things that need to go well for innovation to thrive. What began as a kind of memo to self turned into a kind of unmanifesto, which is to say an explanation for why theorising about innovation can’t be taken very far (or, to be more circumspect, perhaps it can, but I’ve never found it very useful.) In fact there’s lots of writing about innovation – far too much – but most of it – including the best of it – is incredibly light on theory and is in fact storytelling. This is a complement to it, not a criticism. If there’s not much point to theory, The thing is, so many things have to work well together that that is the secret of innovation. And this challenge of ‘alignment’ – of purposes, of people of populations (I meant systems, but it didn’t start with ‘P’ and I’m going for memorability here!) – will be particular to particular projects. There’s little of a general nature that can be said about them. Anyway, what began as a memo to self is now an important part of the way I think about this stuff. A theory of the non-theorisable. The things that must be finessed for innovation – doing things in new and better ways – to thrive in an industry or wider system are many and varied. Just listing them gives an indication of the difficulty of the task owing to its complexity and many faceted nature.

From creation to implementation
  • Innovation must be initiated either by those with a problem to solve or an opportunity to seize or elsewhere within the system. Where this is not spontaneous, it may require careful cultivation and the application of financial and other resources.
  • Once innovations are generated, they must become known to those who can use them beneficially including in some situations, those who are unaware of any specific problems, but who nevertheless can use such innovations to advantage.
  • Those who become aware of new knowledge must understand how to implement it to advantage.
Governance of innovation
  • A specific innovation may solve problems for some levels of a system but it may involve new routines, higher costs, inconvenience or disruption elsewhere. There will often (generally?) be no well-accepted means of determining priorities between the various considerations arising. Continue reading

Time for the ‘reform’ mantra to be modernised: My AFR column of yesterday

The Hawke LegacyBy the time economic reform matured as a political project – let’s date it from Paul Keating’s announcement about its popularity with the resident galah in every pet shop – it was already on the slide into the kind of ideological formula of mercantilism that Ken Henry so powerfully critiqued earlier this week.

Australia was a standard-bearer in areas like trade and agricultural protection, the two airline policy and shopping hours. There, with the stroke of a pen, we swept away the detritus of a century’s ad hoc political favouritism. And unlike our peers in the Anglosphere, we also expanded funding for the safety net – bolstering equity.

But beyond that, as we’ve learned (or have we?), considering policy alternatives against a criterion as crude as how ‘free market’ they are doesn’t work so well. In infrastructure, utility and financial reform, where monopoly and asymmetric information problems abound, regulation remains inevitable and new rent seeking political pathologies lie in wait for those unpicking the old ones. Here our reform efforts brought forth excessively priced toll-ways, desalination plants and airports with the political and official insiders championing the changes parachuting into lucrative careers with the corporate beneficiaries of their reforms to lobby their successors. We’ve seen massive over-investment in electricity transmission and under-investment in other infrastructure.

And yet our policy elite speak as if ‘reform’ is well articulated and will take us back to the glory days of the 1990s Australian ‘reform boom’ that preceded the subsequent resources boom. “Gary Banks’ List” assembled by the former Productivity Commission (PC) chairman – is a canonical PC endorsed reform ‘to do’ list. It was – tellingly enough – cobbled together some months after Glenn Stevens assured a Parliamentary Committee of its existence. John Edwards recently suggested, only slightly exaggerating, that its adoption wouldn’t make a measureable difference to growth.

With national income falling in the most recent national accounts, here are some contemporary challenges and opportunities absent from the list – all of which escape prevailing reform formulas: Continue reading

Scottish independence: a good idea or a bad idea?

Today the people residing in Scotland can decide whether they want to see an independent Scotland or to have Scotland remain in the UK. The betting markets concur with the opinion polls and favour the status quo: the markets give roughly 20% chance that the ‘yes’ vote will win and that Scotland will become independent.

The majority of economists talking about the referendum have focused on whether or not the Scots would be financially better off with their own country, debating things like North Sea oil revenues and currency unions. I think that is a distraction: looking at small and large countries in Europe, you would have to say there is no noticeable advantage or disadvantage to being a small country and that the Scots are hence unlikely to be materially affected in the long run by independence.
Independence is more about self-image and identity than it is about money. Even though the push for independence might well come from politicians and bureaucracies that gain prestige and income if they ruled an independent country, the population deciding on the vote will probably vote on emotional grounds, not economic. Young male Scots appear overwhelmingly in favour of independence; females and old people prefer to keep things the way they are. The latter groups are bigger and are expected to sway the day.

Personally, I have two related reasons to oppose the breaking up of larger countries in Europe into smaller ethnically defined states, not just Scotland, but also Catalonia, the Basque region, the Frisian province, Bavaria, and all the other regions of Europe:

  1. These independence movements are ethnic and hence by definition exclusionary. This is a big concern: large nation states have slowly moved away from the story that they exist for people of the ‘right’ bloodlines and with ancestors who lived in the ‘right’ place. The UK, the US, France, Australia, and even Germany and Spain have moved towards an identity based on stories about what it means to be British, American, French, Australian, etc., rather than a ‘blood and earth’ ethnic nation state story. Speaking tongue-in-cheek, the Brits have an upper lip story, the Americans have an exceptionalism story, the French have been convinced they like reading Proust, the new Australians are told in their citizenship exams that they believe in a fair go, etc. These stories contain treasured national stereotypes, complete with imagined histories. The key thing is that are inclusive, ie any newcomer from another place can participate in such stories. The Australian national anthem is a beautiful example of this super-inclusive attitude as it, almost uniquely, mentions neither ethnicity nor religion as a basis for being Australian. The ethnic stories of the independence movements are, in contrast, exclusionary and hence harmful to the self-image of any migrant. It is a move to a past that we have little reason to be proud of, as it marginalises current and future migrants. The story surrounding Scottish independence is thus not that the Scots are people who like to wear kilts and enjoy haggis, but that they make up the people who have suffered 700 years of oppression by the English. What is a recent newcomer from, say, Poland to do with such a self-image but conclude that they do not really belong there? Continue reading

Iraq: 10 things that seem to be true

As we head back to Iraq, I’m struck by the way in which those making the case both for and against are avoiding certain ideas which seem to me to be true:

This is not 2003 all over again. At least on a moral level, and at least as far as action in Iraq goes. We have been invited in by the Iraqi government, giving the military campaign a legal and moral basis for action that the 2003 war lacked, and IS is thoroughly dominated by murderous zealots. Tony Abbott has been careful to say that attacking IS in Syria would be very different to what we’ve signed up for so far, which it would, and he deserves credit for that.

IS is not an existential threat to Australia. No kudos to George Brandis, who claimed this week that IS “represents or seeks to be an existential threat to us”. Brandis’s statement avoids outright lying only by his addition of the phrase “or seeks to be”. This has strong echoes of the 2003 b.s. about how Saddam could threaten the world with nuclear weapons, It is not quite as stupid now as it was then, but that’s not saying much. Lots of loony zealots seek to be an existential threat to the Australian state. There’s a world of difference between the wish and the capability. IS currently appears weak on capability, though that could change. There’s more chance of Australia being seriously damaged by a mutated Ebola virus, and we react to that threat with a few million dollars every so often.

We have some responsibility to help make Iraqis’ lives better. In 2003 we invaded their country and failed to do what we said we’d do. The military did its best, but we needed other tools in the kit, didn’t have them, and like some blundering amateur, didn’t even know we needed them. We helped make their country vulnerable to the violent zealots. Those violent zealots are now trying to impose upon millions of Iraqis a particularly nasty brand of theocracy. We seem to have alarmingly little national shame about this, and remarkably little sense that by creating the mess, we created a lasting responsibility to fix it. This is what Colin Powell once explained to George W. Bush as the “Pottery Barn principle” – you broke it, you own it.

We will run into unintended consequences. The idea of unintended consequences is hard enough to keep in people’s minds in the economic debate. But in the foreign policy debate people seem ready to discard it at a moment’s notice. And when things go wrong, instead of reassessing, they defend the purity of their motivations. Chris Berg of the IPA has dubbed this the “it’s the thought that counts” school of humanitarian intervention. It is probably too much to expect, but we ought to conduct this debate with an honest acknowledgement that things are not likely to go to plan. To use Donald Rumsfeld’s admirable observation, we face both known and unknown unknowns.

Continue reading

On the cost of foreign exchange: Scottish independence edition

artiste_207Well gentle readers, it’s come to this. Scottish independence is going down to the wire. It is hanging by a thread, though if you are concerned that I am mixing my metaphors, I think you’re flogging a dead horse after it’s bolted.

In any event, in the question of Scottish independence the question of what currency it will use is the elephant in the room – the sporran on the kilt. If you’ve not been paying attention, the Scottish separatists have been insisting that they can pick up someone else’s currency – the Euro or the Pound – and otherwise enjoy independence.

Paul Krugman is horrified that so soon after the debacle of the Euro the Scots could contemplate this. He’s studiedly agnostic as to whether it might be worthwhile if they had their own currency and focuses on the prospect that they might repeat the disaster of the Euro, or imaging that a monetary union might be a Good Idea outside of a political union. I’m in broad agreement though I think he might be overdoing it a bit.

Meanwhile Joe Stiglitz fancies the idea of Scottish independence if it can help carve out of the British Isles a more egalitarian nation leading him to rather downplay the significance of leaving a political union without also leaving its monetary union. I’m sympathetic to his deprecation of economies of scale as being a big part of the decision. Firstly if you want to be a nation, if you incur a few costs in doing so, that shouldn’t be a big deal in your decision. Further, quite a lot of Scottish governance is already different to British governance so the costs are already there. (As Adam Smith thought in the area of education, some Scottish governance may well be superior. When I was in law school my Evidence teacher was very much enamoured of the Scottish legal institution of the Procurator Fiscal [which is nothing to do with fiscal policy by the way]. But I digress.)

Anyway, one thought that seems largely absent from the debate is that, in this age of the internet, it might well be possible to run a separate currency at a tiny fraction of its current economic cost at least as far as access to foreign exchange (FX) in the spot market is concerned. Continue reading

Institutional innovation and ‘demarketising’ economic bads

institutional innovationMiles Kimball, for the uninitiated a sensible centrist commentator on economic policy is also an admirer of John Stuart Mill and has supported the case for decriminalising drugs.  At the same time, since he thinks drugs – certainly recreational drugs or the new ones – are bad news or likely to have substantial social downsides - he wants to hem in the damage they can do with all sorts of legal restrictions.

[We should] do whatever we can to drive down the usage of dangerous drugs consistent with taking the drug trade out of the hands of criminals:

  • Taxes on dangerous drugs as high as possible without encouraging large-scale smuggling;
  • Age limits on drug purchases as strict as consistent with keeping the drug trade out of the hands of illegal gangs;
  • Free drug treatment, financed by those taxes;
  • Evidence-based public education campaigns against drug use, financed by those taxes;
  • Demonization in the media and in polite company of those who (now legally) sell dangerous drugs;
  • Mandatory, gruesome warnings like those we have for cigarettes;
  • Widespread mandatory drug testing and penalties for use of dangerous drugs—but not for drug possession;
  • Strict penalties for driving under the influence of drugs.

I don’t know enough to have a primary view about whether or not drugs should be legalised – or if I do it’s a pretty tentative one that they should be – but if we were to do so, while I’m OK with Kimball’s list I think it doesn’t go far enough. He presumably agrees with plain paper packaging though he’d extend it to nasty pictures and warnings which is all good. But I’d do more. As I wrote on his blog post (I’ve slightly edited what I wrote there):  Continue reading