Saturday, June 16, 2007

Hamas and Fatah, Gaza and the West Bank

It would seem the best way to understand what's going on among the Palestinians right now is to combine Amir Taheri's piece for the Times and Con Coughlin's for the Telegraph.

First, the problem isn't that the Israeli, European and US cut in aid to Palestine has prevented Hamas properly governing the terroritories. As Coughlin notes there hasn't been a decline in donations to the Palestinians but there has been a redistribution of that income under Hamas:

"Hamas, on the other hand, sees economic deprivation as a form of political oppression. The World Bank reported that donors contributed about £375 million to the Palestinian territories in 2006, twice the amount they received in 2005. But since taking power, Hamas ensures any funds are spent on Islamic causes and its 6,000-strong militia, leaving the majority to fend for themselves."


Of course, the reason why Hamas have no interest in running the territories well is that they see them as a military base, as a staging post in the fight to destroy Israel. Few military bases are a pleasant place for a civilian to live. Taheri describes the problem:

"The constitution of Hamas, however, commits it to the creation of a single state. Gaza and the West Bank are regarded as bases from which the struggle for the liberation of the entire mandate of Palestine, that is to say the elimination of Israel, is pursued for as long as necessary."


Civilian suffering can even be an advantage if it provides helpful propaganda to assist the Hamas war machine, Coughlin:

"The bonus for Hamas is that, by forcing the majority of Palestinians to exist in dire poverty, it succeeds in attracting widespread sympathy from international do-gooders who do not understand the sadistic economic manipulation that is taking place."


Hamas is attempting to impose a Taliban-like state on areas under its control. From Taheri's article:

"Having won the general election 18 months ago, Hamas launched a drive to “Islamicise” Gaza, forcing women to wear the hijab and men to grow beards. It burnt down the last beer factory in Gaza and banned the sale of alcoholic drinks. Bands of youths calling themselves “Brigades of Enforcing the Good and Combating Evil” raid homes in search of alcohol, Western music and videos, unIslamic T-shirts and other “sinful items”. Young men and women found together in public, or even in private cars, are stopped and interrogated to make sure unmarried couples do not violate Sharia rules."


Hamas are far less interested in a struggle for a Palestinian state than they are in a general struggle for Islamist victory. This makes a stable two-state solution implausible as Hamas are unlikely to be satisfied with a Palestinian state. In fact, even if they were to achieve the destruction of Israel they are unlikely to be satisfied. Their interest is in the Muslim Brotherhood, an organisation of which they are a member, dream of worldwide domination.

What the West is going to have to realise, those that haven't already, is that the suffering of the Palestinians is emphatically not a result of Israeli policy. There have been numerous opportunities, most recently at Camp David, for the Palestinians to have a state within which they could work at building a better life for themselves. These were rejected. Now the Palestinian political leadership, elected freely and fairly by ordinary Palestinians, are setting out to ruin their people's chance at a better life preferring a struggle for the destruction of Israel. The suffering of the Palestinians, cause of so much self-righteous indignation in the corridors of the United Nations and the offices of the Guardian, is a consequence of choices they have made.

Israel's policy in the face of this has to be to look to its own defences. The logic behind the wall is looking stronger and stronger. The targetted application of military force can keep its enemies on the back foot. Western policy should be to do what we can to assist Israel in this task. In the longer term some kind of unilateral settlement with the Palestinians living in the non-state they've created for themselves and the Israelis doing their best to keep its affairs and theirs' separate might be the best outcome possible.

Friday, June 15, 2007

Discounting for Adaptation

Sir Nicholas Stern’s report on the economics of climate change has been, politically, hugely important. It is regularly cited by politicians justifying stringent steps to curb emissions thanks to its headline estimate that the harms from climate change could cost 5-20% of global GDP “now and forever”.

Stern’s report has been politically important despite, or because of, making some rather suspect methodological choices. Many of these choices have since been heavily criticised by researchers. Richard Tol was cited throughout Stern’s report but branded it “alarmist and incompetent”. An example of this alarmism is Stern’s penchant for using “this could mean up to…” statements. In discussing the numbers of people facing flooding thanks to climate change and melting glaciers he describes how up to 200 million people could face homelessness. Applying the same standard to nuclear proliferation it would be easy to justify nearly any action on the grounds that damages could be as high as 100% of GDP lost and 100% of the human population dead. This is quite a common strategy in making a rhetorical argument in politics but has little place in a supposedly rigorous study.

However, no element of Stern’s methodology has been more controversial than the decision to use a near-zero discount rate:

Stern’s call for rapid action to curb emissions is based around treating harms and benefits across generations as equally important regardless of when they occur. The “now and forever” amount is actually a sort of average of harms over hundreds of years. The majority of the harms he bases his analysis of the total cost of climate change on occur after the year 2800. This is such a long time away that with even moderate discounting the estimate of harms would fall drastically. Relying upon such long time horizons has to raise some questions about the Stern report’s reliability. Firstly, there are philosophical questions over whether we should be treating harms to the environment of different eras with very different material conditions as equally important. These have been addressed throughout the literature but particularly by Nordhaus. One example, he describes how under the Rawlsian moral logic the current generation deserves preferable treatment to subsequent generations with the good fortune to be born in what will probably be much wealthier ages. This is the same logic used to justify helping the poor within the current generation. However, there are also less high-minded, more practical reasons to question how seriously harms hundreds of years into the future should be taken.

Nordhaus briefly raises the question of changing preferences. After hundreds of years will those who we are saving from emissions necessarily want the lower levels of carbon dioxide that we have provided for them?

Nordhaus’ gives examples of possible alternate priorities: perhaps people will prefer higher productivity so that they can “develop fiendish new weapons”. There are a host of reasons why our descendants might prefer that we maximise growth instead of making efforts to cut climate change. One more prosaic example could be the possibility that, in around fifty to a hundred years time, we perfect the process of generating power through nuclear fusion. That would allow for massive cuts in carbon dioxide emissions at very little cost. A host of other technological changes could do the same job. That might cause our descendants to wish we had not taken action to curb emissions at a time when it is so expensive as we don’t have efficient alternatives to fossil fuels in place.

There are a host of other known unknowns and unknown unknowns that surround whether our descendants will value any cuts in carbon emissions we make. To illustrate the potential for surprises let’s pose a bizarre counterfactual. Suppose a Stern-like decision had been made during the Industrial Revolution. “We’re using coal at a dangerous rate and if it runs out we will lose a vital economic and strategic asset. To ensure that all generations take equal utility from limited stocks we have to impose taxes or rations on coal usage. Otherwise by the 21st century the UK will be utterly impoverished.” We would probably have a lot more coal right now but would be significantly poorer and history would not have looked kindly on those who made the decision.

Uncertainty over the value of decisions we make now to future generations is probably reason enough to be sceptical of near-zero discount rates. However, can we go beyond uncertainty and make an active case as to why our descendants are unlikely to value action now to curb climate change? I believe we can.

NASA administrator Michael Griffin laid out an important question. Why should we assume that our current level of emissions is the optimum?

“First of all, I don't think it's within the power of human beings to assure that the climate does not change, as millions of years of history have shown. And second of all, I guess I would ask which human beings — where and when — are to be accorded the privilege of deciding that this particular climate that we have right here today, right now is the best climate for all other human beings. I think that's a rather arrogant position for people to take.”


It clearly depends upon the timescale one is referring to. In the long-term there probably isn’t much reason to think a little extra warmth and CO2 will be a good thing or a bad thing. Equatorial regions might suffer but it is entirely possible that this will be counterbalanced by areas like Greenland, which might become green again, and Siberia which will be better able to exploit its huge natural resources. However, in the short-term our society is built around a particular temperature. We have cities built in flood plains without proper protection, railways built in Siberia that will collapse if the permafrost melts. This is to be expected. Our society has been built with the context of a particular temperature and there will be costs if we ask it to adjust.

This balance of short and long-term harms highlights the true nature of the challenge of climate change: its transience. This has to be crucially important to any discussion of Stern’s discount rate. If we have no reason to assume that a higher temperature will be much better or much worse for humans apart from the transitional costs that come with social adaptation then the expected future harms from climate change should tend to zero over time. Working out just how long it should take before the change in climate has been adjusted to is a matter for some study but it seems unlikely it would take more than a couple of generations. Certainly the harms that Stern identifies beyond the year 2800 have to be written off as quite likely utterly irrelevant to humans who have learned to live with, or take advantage of, warmer climates.

If we make this adjustment it will make the estimate of the costs to climate change far more realistic. That realism should feed into our policy decisions. It should reinforce the impression that global warming is a change we should work to adapt to rather than a catastrophe worth ruining the world economy to avert.

600 Posts!

That last post on Professor Qvortrup was this blog's six hundredth post. I hope you've enjoyed them.

Thursday, June 14, 2007

Evidence

Yesterday I went to a Policy Exchange event with Theresa May and Professor Matt Qvortrop discussing the merits of referendums, or Citizen's Initiatives as he called them, and their capacity to reengage citizens with politics.

He was arguing for, as he described it, a "supply-side democracy". This is the idea that supplies of democracy create their own demand. If involved in decision making more often people will become more engaged in the political process. This seems fairly cogent. However, Qvortrup ruined his case with the methodology behind his paper The Voting Happiness Index which we were all given a copy of before the event.

I took a flick through it before the speech started and was alarmed. The report is filled with charts illustrating a correlation between various 'goods' from happiness to green politics to voter turnout. He used this as evidence that voter turnout led to all these good things.

Now, if you're going to argue that various good things are caused by voter initiatives a correlation is of very limited use. All a correlation suggests is some kind of relationship. It seems just as plausible that high democratic involvement, caused by some factor not in the study such as historical differences, was the driving force behind not just the other good things about Citizen's Initiative states but also the existence of Citizen's Initiatives in the first place. A state with a more democratically active citizenry is, after all, far more likely to be able to justify running referenda. This same taste for civic participation could also be the cause of all the other differences between Citizen's Initiative and non-Citizen's Initiative states. High voter engagement could be caused by any number of factors not included in the study.

In short, Qvortrup's study has no way to tell which factor is cause and which effect. It can do almost nothing to establish whether an increase in the amount, supply of voting makes any difference at all to the success of a democracy.

Also, he used happiness statistics and quoted Layard on how great they are. They aren't. Happiness statistics are shoddy and unreliable.

Finally, his evidence had clearly been cherry-picked. The Citizen's Initiative states may have been greener but I'm willing to put money on them also having been less fiscally disciplined.

I asked Qvortrup about these issues and he smiled genially and said he was just making the case for his side, of course he chose data that would strengthen his case. My heart sank a little. Partly because I was deeply aware that Qvortrup wasn't really doing anything particularly wrong. He hadn't claimed his data should change the world and the methodological weaknesses of his study pale in comparison with some other, far more prestigious, works.

I emerged from the talk neither more or less convinced of the case for making referendums a regular part of our political landscape. Instead, I came away with a renewed sense of how careful you need to be when told "studies show that..."

UCU Boycott of Israel

The boycott that the UCU has endorsed is utterly disgusting. It it an attack on academic values and freedom. It has deeply unpleasant undertones of anti-semitism in singling out a state which is defending itself against gross acts of terrorism and which would not rank among the top hundred states in terms of the volume of human rights abuses but does happen to be Jewish. In this it is rather similar to the United Nations Human Rights Commission. The UCU's behaviour has wider repercussions as it speaks for staff at public institutions, many of whom are not anti-semitic, and tarnishes the reputation of the United Kingdom as an honest broker in the conflict.

In this Channel 4 video you can see Harvard Law School professor Alan Dershowitz tearing apart the Brighton University academic who proposed the motion. Attempts by our man from Brighton to retreat to the idea that all he has done is propose a debate are facile. If you want a debate you don't pass a motion to distribute campaign literature from one side.

There is a fine, if very moderate, Early Day Motion on the issue:

"That this House regrets the motion passed at the congress of the University and College Union (UCU) on 30th May, which promotes a boycott of Israeli universities and a moratorium on research and cultural collaboration with Israel; agrees with Sally Hunt, General Secretary of UCU, who has said previously that `I simply do not believe that the majority of UCU members support an academic boycott of Israel; most want us to retain dialogue with trade unionists on all sides-not just those we agree with'; supports the Government's response to the parliamentary inquiry into anti-semitism which concludes that `calls to boycott contact with academics working in Israel are an assault on academic freedom and intellectual exchange'; believes that boycotting Israeli education institutions and academics is damaging to the UK's reputation worldwide and does nothing to promote a settlement in the Middle East; and urges the UCU to conduct a full ballot of its 120,000 members before adopting the terms of the resolution as policy."


Write or e-mail your MP if they haven't signed it yet. Well worth your time.

Update: As he mentions in the comments Gracchi has a very good article on this subject over at Bits of News.

Joe Trippi on 'Politics 2.0'

Britain and America's summary of the event yesterday with Joe Trippi, author of Howard Dean's incredible Internet grassroots campaign, is a good one. My impression, though, is that we are a long way from seeing the sort of bottom up politics that the speakers were talking about rising to prominence in the UK.

Trippi's explanation for why the UK was lagging was that the relatively short election campaigns that are the result of flexible election timing, by comparison with the near permanent US campaign, prevent the proper use of the Internet and social networks by politicians and groups who want to influence an election. These networks take time to build and are not given that time by organisations that expect a result within the busy few weeks before an election.

I'd suggest a different explanation. The blogs are obsessed with the parties. Even high-minded blogs will devote at least a quarter of their output to what members of parliament are saying. I think this means that the dialogue can't really stand on its own. It isn't only the blogs that display this way of thinking. Think-tanks are far too prone to judge themselves by the extent that they can influence political parties rather than the extent to which they directly affect the broader public debate. You can see it in the rationale for the UKIP, the logic that if a party doesn't represent your views they are unrepresented. We see parties as almost the be all and end all of politics rather than a particular mechanism for building a majority to govern.

This obsession with parties Daniel Finkelstein, at the event as a sort of discussant, saw emerging out of a need to effectively ration the scarce resource of the media's attention, "shelf space" as he termed it. It seems equally plausible that party loyalty emerged out of a relatively uniform set of political divisions in the post-war period, a particular ideological struggle with the rise of the social democrats clashing with the conservative-liberal tradition. Either way, that the original rationale for party obsession is fading does not necessarily mean that we will automatically turn back to a less party-focussed politics.

If we wish to build a genuine bottom-up politics we will need to see a deeper change than the technological ability to self-publish. There will need to be a change in the British understanding of how politics is conducted.

Wednesday, June 13, 2007

Communist Monopoly

Given that Monopoly was originally conceived of to demonstrate how rents enrich landlords and impoverish tenants, a critique of capitalism, it was always somewhat ironic that it became such a business. It has to be one of the first examples of capitalism co-opting its enemies. The early twentieth century equivalent of stores selling Ché Guevara t-shirts (although this article explains just how unpleasant hero worship of Guevara is).

Now this, deeply silly, YouTube video goes one step further and asks the question, what would Communist Monopoly look like?

Thatcher on the Falklands

A truly wonderful, inspirational, speech (click "Listen: Lady Thatcher" for the audio stream) from our greatest living Prime Minister.

Tuesday, June 12, 2007

Europe drifts right...

There appears to be something of a rightward drift in Western politics. The French first elected a right-wing President in an ideologically charged election and now have given the right a landslide victory in parliamentary elections. In Finland the right-wing coalition dominated the last elections. The same happened in Sweden on a more modest scale. In Belgium the right have just won a strong victory. In Britain the Conservatives have had a lead for some time although there has been no electoral test of their revival. The Germans have a right-wing government.

The obvious exceptions are Spain, Italy and the United States. Spain's result was due to an incredible miscalculation by the right-wing Prime Minister. Italy's politics always has a screw loose. In the US the Democrats are doing well but that has taken some pretty massive incompetence on the part of the Republicans. I'm not convinced that the current Democratic strength is the result of a real left-wing drift in American politics.

The trend right could just be a coincidence. Or a transient rejection of centre-left governments that swept to power in the heyday of the Third Way. I think it is something more. A rejection of the supposedly progressive values of the tranzi elite: Treating criminals like victims. Neglecting or showing disdain for the culture, history and values of the Western nations in deference to a self-hating multi-culturalism. Accepting the mass-migration of populations that Western states have proven unable to integrate as an inevitability. Submerging nation-states in unaccountable supranational bodies.

These values and objectives were never really shared by the population but became a kind of political consensus in the absence of a crisis that would remind Western peoples of what they had to lose. The combination of 9/11 and the Cartoons Crisis was a very effective wake-up call. That free-speech might be so endangered by cowardice in the face of a violent minority alarmed people used to taking such values for granted. The right is the major beneficiary because they have always been the most skeptical of the tranzi ideals. This gives right-wing parties, where they can see this trend and latch onto it, a significant advantage.

This zeitgeist will not provide the right with electoral victories on a platter. The right-wing leadership in each state will have to convince people that they can rebuild important values and cultural confidence. However, it appears to me that the opportunity is there for the taking.

Peter Singer hears about Contraction and Convergence over a decade late...

First, why on Earth did this get printed? It's just an unimaginative statement of the Contraction and Convergence policy. The Guardian could have just printed the Wikipedia entry. Isn't Peter Singer, the author, supposed to be an original thinker? Why is he just repeating an idea that has been endlessly repeated for over a decade?

It isn't even a good idea he's restating. The idea of cutting emissions in the developed world both enough to prevent global warming and to equalise emissions with the developing world or face large financial penalties. Now, while the US emits a lot of carbon per person it emits relatively little per unit of GDP. It doesn't have a lot more room to cut emissions without cutting its income. That means emissions reducing to the same level per capita of emissions as in the Chinese economy will do huge damage to US incomes.

What will happen to China's, export-driven, economy if the US economy is collapsed?

Prizes for Innovation

Prizes are a time-honoured method of rewarding inventions when industry associations, governments or other bodies want to encourage useful innovations. The practice was particularly common during the Industrial Revolution era. It works, essentially, by offering cash instead of the monopoly rights that come with a patent. In certain areas, where you know what you're looking for, it can be quite effective. The idea achieved some degree of fame recently with the success of the X-Prize for commercial spaceflight.

Some have argued that the principle should be deployed as a way of getting the private sector involved in creating innovative solutions to climate change. I'm not aware of this happening yet on a large scale but it seems only a matter of time before someone tries prizes as a response to climate change.

In a somewhat sad turn of events Microsoft is now offering a prize for studios to create a global warming video game. Instead of using prizes to address the actual issue they're going to be used to find the most innovative propaganda for eco-socialism. Ars Technica's prediction is "A platformer starring a polar bear being chased by the melting ice caps". My money is a game where you play George W. Bush using a gargantuan magnifying glass to hunt poor people or one where you play Zombé Guevara bombing Exxon plants.

Sunday, June 10, 2007

Oceans 13

This film sees the series back on top form. The action takes a while to get into the swing of things as the detail is built up but is absolutely crackling once the film is at full pace. They have returned to the classic Jazz, Las Vegas and luxury themes that made the series great. They've ditched the celebrity cameos that were a somewhat self-indulgent distraction from the narrative. The scope of the scam is superb and some of the skits are inspired.

Ruthie on the constraints of parenthood

This post by Ruthie is a fine example of what makes her blog so great: an emotional openness that allows for some touching stories describing problems that face so many but are rarely articulated so clearly. In particular, this post concerns the challenges single motherhood creates for Ruthie in forming a new relationship. Unfortunately her fanbase is on the wrong side of the Atlantic but I think she'll still do fine...

Friday, June 08, 2007

Cap and Trade

It was only today that I finally really grasped just how dismal an idea the cap and trade, emissions trading, approach to carbon emissions control is. It isn't just that the particular EU scheme constitutes a subsidy of half a billion a year from British organisations to the rest of the EU; there is a more fundamental problem. It was when I saw this Excel file that I really 'got it'. That's every hydrocarbon user in the European Union Emissions Trading Scheme and their Annual Allocation of emissions from DEFRA under Phase I. The supposed market solution relies upon bureaucrats coming up with a quota for every plant in the country based on their emissions history and an estimate of how much they can cut.

It's reminiscent of some old Communist five year plan with government telling the private sector what it is capable of and should achieve, why is this considered the capitalist approach?

It relies upon the state being able to properly assess the technological possibilities in a host of industries, both in the present and the future. It is chronically vulnerable to manipulation by skillful or 'generous' businesses that can influence the decision over their quota. The trading system represents a huge great transaction cost for the public sector as NHS Trusts and the like who have no idea how to trade a commodity like an emissions permit make a mess of things. The skilled traders at Shell and BP, by contrast, have made a profit from the Emissions Trading Scheme.

In short: a hideous idea.

Thursday, June 07, 2007

Review of Charles Koch's "The Science of Success" in The Business

I have an article in todays The Business magazine about the stunning success of Koch Industries, Inc. and the book Charles Koch has written explaining how the ideas underpinning classical liberal politics and economics made it happen.

Article on ConservativeHome

I have an article responding to Ken Clarke's Democracy Taskforce report up on ConservativeHome's YourPlatform. It sets out how the Democracy Taskforce won't succeed in restoring trust in politics so long as politicians continue to try to do too much, too centrally.

Tuesday, June 05, 2007

The Global Warming Debate: Over?

I tend to avoid commenting on the science of global warming. I keep as up to date with the arguments as I can and am reasonably happy that I've done what I can to understand the state of play. For now, I'm happy to take the 'consensus' view, with a few reservations, and then analyse policy on that basis.

I'm not a scientist and I honestly doubt I can add any value to the scientific debate. Fortunately the intellectual argument over policy will not be settled by scientists but, as usual, by economists. That is a debate I can be a part of. Neither myself, Sir Nicholas Stern or Richard S. J. Tol are scientists, however, the other two are as important as any IPCC physicist to the debate over our policy response to climate change. Tol's assault on Stern's review is a decent introduction to why.

DK isn't so reticent about the science of climate change, has done a lot of reading and is convinced that the mainstream opinion is entirely wrong. He is understandably frustrated that Sunny Hurndall has written the entire debate off as settled, anthropogenic global warming won apparently.

What I found odd about the opinion that Sunny, and Ben Stewart of Greenpeace who started this argument by refusing to debate Dominic Lawson on 18 Doughty Street, advance is that they seem to be calling and end to the debate so quickly.

It seems understandable that Richard Dawkins has gotten somewhat tired of rehearsing arguments for and against evolution that have been much the same since 1859 when the Origin of Species was published. After 148 years it seems quite plausible that most of the interesting arguments have already been deployed. Unless some radical new evidence or theory comes up I'd say it is fair enough to put research and argument testing the basic theory of evolution by natural selection on the back burner. That Dawkins wishes to stop debating those who still want to rehearse the same arguments after well over a century in order to satisfy their own religious imperative seems understandable.

But global warming only became an object of serious debate in the late 1970s. Why should we believe that in that relatively short period of forty years all of the relevant arguments and important studies that will shape the 'final' scientific conclusion have seen the light of day? Surely it is quite plausible that new evidence or logic that might change the debate will emerge?

It worries me a lot that those who lobby for policies to curb emissions are so keen to end the debate early. Presumably they think it strengthens the political case for taking action, perhaps it does, but intellectually it is a shabby and arrogant way to behave.

The Ghost Cabinet on IT Procurement

I'm far from sold on this piece from the Ghost Cabinet 'Technology Ghost'. A few particularly problematic paragraphs stand out:

"No-one is looking at the use of technology across the whole of government."


Utterly untrue. The National Audit Office should do some more work on examining the government's record in delivering major Information Technology programmes but there are definitely organisations looking at the government strategy for IT in the aggregate. There is the Office of Government Commerce and the Cabinet Office's Delivery and Transformation Group (formerly the e-Government Unit) both of whom are responsible, within government, for government IT implementation. Then, in Parliament, there's the Public Accounts Committee which launched a report just yesterday on the lessons from successful projects for government IT procurement. Finally, from the private sector, the consultancy Kable is focussed on public sector IT expenditure.

"This is a historical mess. At some point in the past, each government department went and did their own thing, spending loads of money implementing essentially the same solution multiple times, and now we’re looking at spending loads more either doing it yet again, or joining them all up. No-one was empowered to put their hand up and say, ‘Hang on, does anyone think that a costly, massive database of everyone’s names, addresses and other information might be useful across government?’ And if they did, no-one was made to listen."


This paragraph is the biggest flaw in the piece. The whole problem with the NHS National Programme for IT (NPfIT) is that it attempted to impose a single solution across too large an organisation. Different sections have different legacy systems all of which need to be integrated into the new project or replaced and the data moved. Everyone has different objectives which need to be accounted for and which cause massive creep in the project's scope. Pretty soon you get the over £10 billion (that's a LOT of money) overspend that has marked the NPfIT. Doing this over all of government would take a big risk of facing the problems that have plagued the NPfIT again but on a much larger scale.

A rational, problem-solving, mind will always find centralisation tempting. It is similar to the logic that a major supplier like the NHS can be more efficient than an insurance based system as it can buy in bulk and spread fixed costs across a larger health service. The problem is that the centralisation creates complexities, variety and scale too large to be managed. The impossibility of managing the lumbering behemoths that centralisation has created leads to the inefficiency that characterises today's government departments.

It seems pretty clear that, instead of the centralisation that the 'ghost' is after government IT projects need to be more decentralised, more often It is far easier to manage and control small projects that the stakeholders can be properly kept in touch with.

Monday, June 04, 2007

Energy Security and Global Warming

Quite a few people, Peter Franklin for example, have argued that China will come onboard for CO2 reductions because they don't like being dependent upon foreign oil. The problem is that the Chinese have a solution in mind already for energy security. Lots of coal power stations. Hardly a result for our green friends.

In the US a similar trend is playing out. Attempts to push energy security up the agenda as a handy bonus that comes with addressing global warming are playing into the hands of "Big Coal". Bradford Plumer for the New Republic sets out how this is creating an opportunity for the ludicrously inefficient coal-to-liquid industry. Again, strategies for energy independence are very different to the kinds of strategies imagined to fight global warming.

In Britain the most obvious way of defending energy independence in the long term is probably a move towards nuclear power or some other technology. There isn't a crisis because in the meantime we will be fine so long as the North Sea doesn't wind down too quickly. At the moment we are only narrowly net importers of fossil fuels. The absolute worst policy for energy independence would be to place a windfall tax on profits from the North Sea. Exactly what Gordon Brown has done, the swine.

Those who want to argue for curbing emissions are disingenuous to fall back on illusory peripheral benefits like energy security. Doing so is a sign of intellectual, if not political, desperation.

Benedict Rogers On Pakistan

Over the weekend Benedict Rogers, of Christian Solidarity and the Conservative Party Human Rights Commission wrote a strong piece for ConservativeHome’s Platform arguing that more needs to be done to protect Pakistan’s Christian population. They certainly face very severe abuse and as a minority religious population in an increasingly radicalised Muslim country their position is clearly a risky one. However, I disagree with Rogers on his portrayal of the political realities in wider Pakistan.

He paints the Christian community’s problems as being very much a choice made by Musharraf. In particular he approvingly quotes Zahid Hussain saying “Pakistan’s failure to curb extremism owed less to the difficulty of implementing reforms than to the administration’s own unwillingness.” If the abuse of the Christian community were the only challenge facing the military leadership this might be an accurate description. At the moment Pakistan’s leadership faces a significantly more varied and large scale set of problems.

There is a touch of unreality in covering the troubles in the border provinces purely in terms of the abuse of and threat to the Christian community. Moderate Muslims are facing serious threats of death and actual abuse in what Gideon Rachmann, Chief Foreign Correspondent for the Financial Times, termed the “Talibanisation” of Pakistan. The border regions have always been somewhat lawless and that makes cracking down on radicalisation easier said than done. This isn’t Britain, or even China; the state’s writ has a distinctly limited authority.

Equally, there are direct threats to the regime’s stability in the cities. In Karachi there has been rioting connected to the Chief Justice’s challenge to Musharraf and his nationwide tour publicising that opposition. In Islamabad there has been Islamist rioting centred around the university. For a regime that can’t take its own existence for granted this is a very alarming development.

While I would on no account want to diminish the sufferings Rogers discusses they only involve a handful of people so far, albeit with a threat to many more, and things could get far worse. The one policeman Rogers describes being sent to defend a church under threat of attack from radicals may have been an insult, how can one man defend a church?

However, on the other hand it could be that he’s fulfilling a similar role to that played by US troops in South Korea. Should radicals assault the church he might stand up to them, they might have to kill him and they might face retribution for that infringement from the state. Were Pakistan to collapse in violent revolution that credible threat of sanctions to abusing the Christian minority would disappear. Then the scale of the horrors facing that community might become radically worse.

As such, it is very much in the interests of Pakistan’s Christian community that the military leadership use their limited resources to ensure stability. Pakistan could collapse in revolution if the military gets things wrong, if troops refuse to crackdown on fellow Pakistanis in the event of renewed riots. A Pakistani I’ve spoken to reckons this is unlikely to happen as the military can try the Roman trick of sending troops from different ethnic communities to enforce their will upon the others. However, it is enough of a possibility to be worrying and if things look bad another general could panic and split the military’s support for Musharraf.

Pakistan needs stability in order to make a steady transition towards democracy. Reform through a violent change would lead to a fragile democracy or, worse, the rise of a Khomeini like figure and a radical regime. In the transition the Christian minority might face an awful fate.

Rogers is right to highlight the abuse and danger the Christian community in Pakistan is facing. Pressure should be put on the Pakistani authorities to do more if they can. However, we should understand the very real hazards the Pakistani regime faces and the costs that all would pay in the event of a collapse.

Gore or the Unabomber?

Test your ability to differentiate between the rhetoric of environmental messiah, former Vice-President Al Gore and anti-technology terrorist the Unabomber with this easy quiz.

Saturday, June 02, 2007

David B Smith on Regional Fiscal Inequalities

My previous post on the politics of regional fiscal imbalances didn't do enough to explain the harms that those imbalances cause. Vino challenged me to explain what was wrong with the North, which is poorer, getting more state money. Fortunately, David B Smith's paper "Does Britain have Regional Justice, or Injustice, in its Government Spending and Taxation" (PDF) for the Economic Research Council's Spring 2007 Britain and Overseas does an excellent job of explaining both the degree of fiscal transfers between regions and the, very real, harms they create. The paper is well worth reading for yourself but I'll give a quick summary.

Even after correcting for living costs the other regions are substantially poorer than the Greater South East. After adjusting for prices London is still 42% richer than the North East.

Using regional spending figures from the Public Expenditure Spending Analyses Smith works out the degree of socialisation of each region, the share of its economy that is made up of state spending. With this analysis it emerges that the South East, if independent, would have the second lowest level of government spending in the OECD, after South Korea, at 31.3%. By contrast, in the North the level is 58%. That is uncomfortably close to the 75% of the Soviet economy that the state was thought to actually control thanks to the black market.

Smith points out the questions this raises about how we need to understand the Northern economy:

"Many academic economists spend a lot of time analysing the consequences of ‘market failure’ in the private sector. However, no more than the remnants of a market economy now survive in many parts of the British Isles. Irrespective of whether one regards this as a good or bad thing, it is difficult to avoid the conclusion that ‘government failure’ could now be a more important source of the problems facing certain UK regions than any failure in the private market sector."


Smith presents three key harms that emerge from an economy dominated by the state, even if that state is paid for by someone else:

First, it encourages people to seek an income through political activism or state dependency instead of through earning a living in the marketplace. This is similar to the Bauer analysis of the harms of foreign aid to developing countries. Effort is redirected away from the productive economy.

Smith also describes this in terms reminiscent of Baumol's argument that a free-market economy is successful because it directs entrepreneurs towards productive activity. Smith describes the rise in Northern political entrepreneurship in place of market entrepreneurship since the North's industrial heyday:

There is also the interesting phenomenon that high government spending regions, such as Scotland, Wales and the North-East, seem to produce large numbers of political entrepreneurs, who live off and lobby for a large state, but few of the traditional wealth creating kind these days – compare and contrast the careers of James Watt and Gordon Brown, or George Stephenson and Alan Milburn, for example."


Smith also links this to the finding, in psychology, that welfare dependency can encourage the pursuit of instant gratification. This can explain the huge levels of drug and alcohol abuse of those on benefits. There are serious social harms to depedency on the scale seen in the North.

Second, regional income inequalities mean that other state policies such as the minimum wage do far more damage to employment in the North than the South as they translate into far higher levels of income. Benefits set on a single level throughout the UK are also a far better alternative to work in the North. This kind of affect has been seen in the poor regions of other countries with severe income inequalities such as East Germany or the Italian Mezzorgiorno.

Finally, public sector employment is an attractive alternative to work in the private sector. With the massive piles of cash provided by the Southern subsidy to play with the state can attract the best people away from cash-strapped Northern employers. This is a very direct crowding out effect.

The costs to the South of paying 8% of its GDP to the rest of the country are obvious. That money, if given back to its people, could make the South a remarkably wealthy place. The South East of England, with levels of taxation at the low end of Eastern European levels, would be a fearsomely competitive economy. To pay this opportunity cost and do serious harm to the North is pretty tragic. David B Smith's paper, by breaking down the effects of the state in different parts of the country, makes an invaluable contribution to understanding the harm that the British state does to our country as a whole.

Friday, June 01, 2007

Does Patricia Hewitt actually know anything?

The following quote is from oral evidence to the House of Commons Health Committee. The report is a huge 373 page document so I think people might have missed it. Here is the person theoretically in charge of the National Health Service, Patricia "goldfish brain" Hewitt, without basic knowledge of hospital building in recent decades:

"Q353 Mr Campbell: Just a couple of questions on PFI. You said that the greater levels of local initiatives and autonomy should be brought into the health service. How does that square with the large increase in PFI programmes when you have got the hospitals being built by these private companies who are nearly running everything, of course?

Ms Hewitt: The PFI programme, of course, was our response to the fact that there had not been a new hospital built in England for longer than any of us, I think, can remember—there simply had not been any—and large parts of the NHS were working in pre NHS hospitals, rather too many of them nineteenth century never mind twentieth century, and PFI has enabled us to make an enormous difference in terms both of refurbishing and modernising or commissioning entirely new hospitals, and we are seeing those new hospitals opening around the country—University College Hospital in London being the nearest one—but that, I think, is really helping to improve the quality of care that the NHS can give patients. Of course, those PFI projects are not imposed by the Department on local health communities. They are generally led by local hospitals who are desperate to rebuild their premises and improve their services, sometimes re-organise services maybe across several sites. They are the ones champing at the bit, if you like, for PFI. We have to make sure, as we do in every case, that there is real value for money and that the health community as a whole locally can afford what the hospital itself wants to build.

[...]

No.Q364 Anne Milton: Can I correct you on the number of hospitals that have been built. There have been some built under the previous government. Chelsea & Westminster, Princess Royal, there are about 50; it was not none.

Ms Hewitt: Right. Thank you.”

Thursday, May 31, 2007

Technical Difficulties

I'm afraid my home phone line has been down for the last couple of days and will remain down till Friday. It has taken my broadband connection with it. As such, this blog is unlikely to get any posts till then. Apologies.

Monday, May 28, 2007

More Monbiot Madness

Monbiot's latest brain rot avoids any of the interesting questions in the global warming debate: to what extent is the human contribution or natural cycles the dominant cause? This determines the extent to which emission curbs policy can be effective. What will be the scale of global warming and its economic impacts? This is important to the question of the costs we should be prepared to pay to avert global warming.

Instead he continues his campaign to smear those who disagree with him.

You can tell them that almost all climate scientists believe it is taking place. But climate scientists are part of the conspiracy. You can explain that almost all peer-reviewed scientific papers on the subject accept it. But how does that help if they believe the Daily Mail is the font of all wisdom? You can point out that the effort to dissuade people that climate change is real has been sponsored by fossil fuel companies. In response - and in marvellous contradiction of their professed suspicion of scientists - they then point to the handful of climatologists who have not been sponsored by the oil industry who say that it isn't happening. You can argue that they are cherry-picking their experts and their data, but unless they have an understanding of the scientific process, they don't see what's wrong with that.


You know what he hasn't done there? Made a single non-spurious argument.

He's argued from authority and majority. I.e. we've got more professors than you. That's a recipe for writing off all minority opinions and killing science.

He's made a clumsy ad hominem. Being funded by oil companies doesn't make a person wrong. It is just as easy to attack the motives of people of Monbiot-like opinions whose careers are dependent upon the fear of global warming to justify research grants and newspaper columns.

Only one actual argument gets cited in the entire piece:

"At my talk last night, a man in the audience informed me that a belief in climate change is a religion, and that I am its Billy Graham. He pointed out that temperatures on Mars have risen: could that be because of all the people driving their SUVs there? Well full marks for originality: I haven't heard that one more than 100 times since the Martian data was published. But instead of trying to argue with him, this time I asked a question: what would it take to convince you that manmade climate change is taking place?

"Nothing", he said. "The climate has always changed. This is just another natural cycle."

"So even if every scientist of every kind and every persuasion agreed that manmade climate change is happening, you would still place your own opinion above theirs?"

"Yes."

This, I suspect, must now be the position of most of those who still deny that man-made climate change is happening: that there is nothing - no evidence, however compelling, no scientific consensus, however robust - that could persuade them of the opposite case. Could there be a better definition of religion?"


Monbiot doesn't offer any evidence as to why it isn't another natural cycle or the Martian data isn't important. He asks his questioner whether "if every scientist of every kind and every persuasion agreed that manmade climate change is happening" that would change his mind but doesn't mention whether there has been any change in the quality of the evidence for global warming. Again instead of deploying evidence Monbiot returns to telling his global warning denier he is in a minority and posing the counterfactual of his being in a smaller minority.

Monbiot doesn't seem to understand the term religion, at best he's talking about faith. However, his argumentative style, relying upon majority support and personal authority instead of evidence is reminiscent of religion at its least rational.

Thursday, May 24, 2007

Frum on Mao

Frum reviews and defends Jung Chang and Jon Halliday's book on Mao. He is right to celebrate what is a massively important study. Without Chang and Halliday's painstaking research, and with so much evidence lost and those with first hand experience of Mao's crimes getting older day by day, the legends he created around his life might have been allowed to stand as history.

We might have forgotten the extent of Mao's crimes. A hideously effective, although now being slowly reversed, attack on the decency, history and people of the world's most populous nation. Many Western intellectuals, such as Nicholas Kristoff who Frum brilliantly skewers as practicing the "well Hitler did build the autobahn" approach to history, have given Mao far too easy a ride.

Wednesday, May 23, 2007

Praguetory on the DTI

The blogger Ghost Cabinet is a thoroughly good idea. Encouraging more policy debate in the blogosphere is a fine thing. In that spirit, here's a, hopefully constructive, response to Praguetory's piece on the DTI:

"The DTI manages government assets of £10 billion and performs sundry other tasks with 10,000 staff on a budget of £6 billion per annum. It is a department in crisis. In a classic sign of an uncertain organization the DTI recently conjured up the following statement of purpose."


That spending figure is actually a little out of date. It's the number that was bandied around a little while ago but this year the DTI spent £6,899,000,000 according to the Public Expenditure Statistical Analyses.

"“Working to create the conditions for business success and help the UK respond to the challenge of globalisation”.

Are they succeeding? Firstly, let’s measure business success by considering movements in the value of companies. Between May 1992 and 1997 the FTSE 100 index rose by 92% to 4500 when Labour took over. If Labour had managed to maintain that rate of growth the FTSE would stand at 16,532 today. It is 60% lower at around 6,600. So that’s a big black mark."


That's a little unfair. The DTI is only one government department with a very limited capacity to create a framework for business success. It has little control over regulation and none over corporate taxation. Also, FTSE performance is a pretty imprecise measure of corporate success.

"To measure how the UK is responding to the challenge of globalization we should examine the UK’s relative competitiveness. The World Competitiveness Yearbook shows that the UK has slipped from ninth place in 1997 to 21st in 2006. The World Economic Forum also compiles a global competitiveness league table. In 1997 we were 4th since which time we have dropped to 10th."


This is a better measure of the DTI's failure.

"In their latest report, an inadequately educated workforce was cited as the most problematic factor of doing business in the UK. Another major weakness is the inefficiency of the UK’s tax system. We were ranked 67th. Britain came 51st for its burden of government regulation down from 13th in 1997 and we dropped from 11th to 26th on bureaucracy. In sum, UK plc is not responding well to the “challenge of globalisation” either."


The DTI has very little power to affect most of these issues. The Department for Education and Skills is responsible for education. The Treasury controls the tax system. Regulation and bureaucracy is created by all government departments (a lot of regulation comes from the EU of course). This should highlight that the problem is less that the DTI is making poor decisions and more that it has no ability to put in place the policies that might improve the lot of business.

"It is hard to understand how bureaucracy and regulation could become so much more damaging over such a short period until we observe that Labour have brought in 15 new regulations every working day since taking office."


Doing something to curb this constant drive to regulate should be the key task for any reformed DTI that actually seeks to make government less of a hindrance to business.

"A Strong Voice For Business"


Praguetory doesn't offer any particular proposals for change. However, the best idea I've had would be to establish a new Regulatory Audit Office with a similar mandate to the, excellent if sometimes overly diplomatic, National Audit Office. While the National Audit Office attempts to highlight waste a Regulatory Audit Office might do the same for regulation that is counterproductive or harmful to business. It might highlight profitable areas of regulation to repeal or reform. Politicians would quickly become aware that new regulation faced increased scrutiny and might be more careful about the impact of its plans.

Of course, regulation emerging from the EU would be harder to tackle, we have a limited say over EU legislation. However, it would still be a fine thing to provide our government with detailed analysis of harmful regulation to present to other EU states and the Commission in negotiations.

I'm pretty sure that the National Audit Office is pretty inexpensive so a new Regulatory Audit Office would cost a tiny fraction of the amount the DTI comes to. It wouldn't tackle other business concerns like poor education or corporate taxation but I'd be wary of a generalised 'voice for business' that might just become one more PR machine. Instead, focus on the one issue that really requires both investigative resources and constant vigilance, an issue where a decent internal but independent auditor could really become influential and help government form policy more effectively. The cost of regulation. Let outside lobby groups provide a voice for business on issues like corporate taxation.

Tuesday, May 22, 2007

Teaching History to Boys

Fred Thompson and Ross Douthat make a sensible point I've heard before, and set as a motion for a debating competition. There isn't enough teaching of military history:

"I agree with the general point of Fred Thompson's defense of teaching military history, and the old Victor Davis Hanson column that he draws on, though I share some of the caveats expressed here. The best reason to teach military history, to my mind, isn't that the Battle of Gettysburg is necessarily more important than half a dozen other topics a student might study, but that it's more interesting, offering an exciting gateway - particularly for boys, whose progress through our educational system leaves a lot to be desired these days - into a subject that can easily become dry as dust. Plenty of people, myself included, have gone on to be interested in the Missouri Compromise, the tariff controversy, and Reconstruction because they first thrilled to accounts of heroism and cowardice, genius and incompetence, at Little Round Top and Marye's Heights and Lookout Mountain. I'm willing to bet the progression rarely happens in the opposite direction."


Education is dominated by left-libertarian academics who think that history's purpose is to 'understand people' rather than tell extravagant tales about ancient massacres. This means that even study about the Second World War becomes all about the Home Front. There's room for a lot of variety in such a varied subject and the basic skills can definitely be picked up through looking at battles, generals and the like. The focus on soft, emotion centred, subjects has turned boys off history. I read military history in my childhood and it seems highly plausible it played a substantial part in leading me to more general historical study. A serious attachment to military history is something that most young men should grow out of quite healthily but the phase is an important one.

While we're at it. The two Shakespeare plays I was introduced to most frequently in my education were Romeo and Juliet and A Midsummer Night's Dream. Neither has the Henry V quality that I think might appeal more to the young male juvenile mind.

I'm not in favour of lowering standards to keep children interested. However, I don't think it is really credible to argue that teaching military history or Shakespeare's histories necessarily imply a lowering of standards.

Finally a green article that isn't hysterical

If every green article were like this one from the Scotsman the green debate would be so much less infuriating. It manages to combine a non-hysterical account of expected harms from global warming with an acknowledgement of benefits. It then moves on to a discussion of how we might go about adapting (or in this case helping species adapt) to the changes global warming will bring.

As an alternative to the apocalyptic scare story chosen from the absolute extreme end of the futures envisioned by the scientific community, completely ignoring possible benefits and making a lame case for global socialism it's a real breath of fresh air. Brilliant and far more persuasive.

Tranzi Watch: Save the children by paying all of Africa's medical bills...

This is truly spectacular, tranziism in its postnational incarnation:

"LONDON (Reuters) - Gordon Browns across Britain are calling for leaders of rich nations to help African countries abolish healthcare fees when the G8 meets in Germany next month.

In a publicity stunt, charity Save the Children has dispatched a car to travel round the country and find 840 people with the same name as the next prime minister.

Save the Children is campaigning for the G8 to pay for the abolition of healthcare fees in Africa and hopes by getting all the Gordon Browns in Britain to sign up, it might influence the Brown in government."


Brilliant, let's reinforce in African leaders minds that their budget is purely there for the purpose of enslaving or massacring their people. Replicate the dependency of poor regions in rich countries on an international scale. Create yet more corruption that ruins the chances of poor nations building decent states.

I'm not saying there's necessarily no role for international aid. Clearly at times, during disasters in particular, considerations about incentives and corruption need to go out of the window. However, institutionalising global healthcare provision is a dismal idea.

Gideon Rachman on Pakistan

The title for Gideon Rachman's piece on Pakistan "The Talibanisation of Pakistan" isn't quite right. He's actually talking about the Talibanisation of border regions at the moment. That doesn't make the evidence any less alarming.

"Peshawar, the capital of Pakistan's north-west frontier province, is a depressing place to visit at the moment. Islamic militancy and violence are spilling over the border from Afghanistan. Suicide bombings used to be unknown in Peshawar. But there have been 16 since September. A bombing in January killed the local police chief, who had been cracking down on militants. Another bombing last week blew up a local hotel and killed about 24 people. This is following the pattern of Afghanistan itself. Suicide bombings did not happen there until 2005. Now they are a deadly, weekly occurrence in Afghanistan, and have spilled across the border into Pakistan.

The phrase "climate of fear" is a cliche. But it is an accurate description of the current mood in Peshawar. The American consultate - the last major western diplomatic representation in the city - is surrounded by Green-Zone style fortifications. Moderate Muslims are intimidated. Threats have been made to shops selling CDs, barbers who have the temerity to cut mens' beards and to girls' schools.

The threat of a "Talibanisation" of Pakistan is by no means confined to Peshawar. There is currently a dangerous stand-off in Islamabad, where a radical mosque - associated with suicide bombers - has kidnapped some policemen. And things are much worse in the wilder fringes of the country. Last week I met local journalists who said that it is now just too dangerous for them to travel freely in the tribal regions like Waziristan. This too is a relatively new development. The reporters who I spoke to say that as recently as last year they were prepared to risk it.

One of the sadder aspects of the whole situation is the extent to which the moderate majority are intimidated by the threat of militant violence. In Peshawar last Friday I went to a seminar on American foreign policy, at the local university. As one might have anticipated the criticism was pretty strong. But, beneath the surface, there was also clearly many students who are very frightened by their local militants. (In the audience, I would say there were about 30 female students - two were unveiled. Of the rest, about half wore a hijab - a veil covering their hair, and the other half had the niqab - a full-face covering, leaving just a space for the eyes.) After the seminar one of the students came up to me and said: "I'm a moderate. I don't have a beard. But if things go on like this in Peshawar, my family could end up being driven out or killed.""


His concludes by responding to some Pakistanis who blame the US for this process, for funding the Afghan rebels against the old Soviet Pakistan. I think he's right to note that Pakistan bears just about as much responsibility as its Inter Service Intelligence agency played a critical role in their rise to power. More than that, I don't think that the old Muhajideen that the US funded were quite as radical as the Taliban, they were predominantely the old guard that the Taliban pushed out.

I also don't think he does enough to point out that the problem of extremism in Pakistan shouldn't be solely explained as an import from Afghanistan. Pakistan has its own problems with religious extremism that emerge from a dysfunctional politics and a state founded in religious identity.

Monday, May 21, 2007

The Political Economy of Fiscal Transfers

Wat Tyler examines fiscal transfers. Using numbers for regional taxation estimated by David B Smith Tyler reckons that the South East is transferring about 8% of its GVA north each year. He then posits that this is some form of electoral bribe by the Labour party. It's a fun argument but I'm not sure that logic can hold.

If you're the Labour party facing a first past the post election system your objective isn't just to amass a massive total of votes at each election, it is to win a majority of seats. That requires some kind of dispersal of votes over a variety of seats. Given that Labour has a massive surplus of votes in many Northern seats and the major electoral battleground is the South of England Labour is either very clumsy in its bribing or it puts in place a regional subsidy for other reasons. Equally, if this was just a bribe to the electorate by the Labour party wouldn't we expect to see more of an attempt to end the subsidy during Conservative governments?

The subsidy won't have existed before the twentieth century as the North-South divide is a creation of twentieth century industrial decline. As the twentieth was a Conservative century can we really explain enduring patterns in public spending purely in terms of Labour electoral advantage?

I would think the problem is most likely a result of a poorly thought out, ad hoc, initial response to industrial decline which became entrenched through chronic path dependencies. At first politicians just couldn't face trying to sell the idea that the North needed private sector recovery and would have to accept a decline in traditional industries, migration to the south and some degree of impoverishment (which would provide the incentive to new industries and migration south) for a time.

However, the spending designed to prevent this hardship, while it masked the problems for a while, made the root cause, the moribund Northern private sector, worse. As the Northern economy fell further behind that of the South it became less and less practicable to reduce the fiscal subsidy being sent north. After all, if public spending were cut from the North now it would have extremely low incomes as private sector activity is very low indeed. A vicious circle.

Gracchi on Pakistan

Gracchi appears to have built a rather elegant house of cards in his analysis, on Bits of News, of US aid to Pakistan. He first points to the fact that much US military aid to Pakistan since 9/11 has been used to strengthen its armoury to confront India rather than to bolster its fight against our common enemy in the Taleban. This is undoubtedly true but, as Gracchi notes, is not a critical objection in itself.

With military aid to any ally there will be a certain amount of leakage to that ally's other objectives. Britain was undoubtedly a very good ally for the US during the Second World War. However, clearly we did at times direct US help towards safeguarding our remaining imperial objectives which distracted, at least a little, from the fight the US was interested in: beating Germany and Japan. That was despite Britain and the US both having rather similar interests in most respects. Winning the Second World War was a priority for both.

In a state with radically different interests that effect is bound to be magnified. Clamping down on the Taleban is something in which Pakistan has only a marginal interest. Pakistan's Inter Service Intelligence agency was involved in creating the Taleban in order to stabilise their Afghan border.

I'm not implying that Pakistan is still loyal to the Taleban. I'm pretty certain the military at least see the danger in a revolutionary Islamic state next door. However, clearly in a list of Musharraf's priorities fighting the Taleban is much lower down the list than in the list of our priorities for Musharraf's attention.

As such, we're 'paying' Musharraf to do what we want. If we were to pay him entirely in the tools to do the job we want him to do why would he bother?

Gracchi's objection to this is that it alters the balance of power against a democratic state in favour of a military dictatorship. What he's missed is that this balance of power is far from delicate. No amount of US military aid is going to give Pakistan a realistic chance of winning a war with India. Even leaving aside nuclear weapons India just has too many people and too much economic power. It will always win a war with Pakistan.

Pakistan's strategy has been to create as powerful a military as it can, and develop nuclear weapons, in order to increase the costs of an Indian attack so that India cannot use a credible military response to strengthen its hand in negotiations over issues like Kashmir. The balance of power in this region isn't going to change if Pakistan is sold a few more jets or artillery pieces. At the very worst we might make Pakistan a little more intransigent over Kashmir. Given that pretty reasonable progress is being made on that issue at the moment I wouldn't worry too much.

The only real danger is Indian hurt feelings but given that Bush has signed a deal to break the Non-Proliferation Treaty in order to provide them with nuclear energy technology I wouldn't let fears of Indian resentment keep you up at night.

Sunday, May 20, 2007

Sarko starts well

Mr. Eugenides sounded an important note of caution about Sarkozy when he was first elected. There is an unpleasant mercantilist strain to Sarko that the British right should be cautious of.

That caution is still appropriate but so far things have gone well. His choice for foreign minister is a socialist but a Christopher Hitchens-like hawk. His first 100 days priorities are inspired. Tax cuts including the near abolition of inheritance tax and an end to the 35 hour week. He's even planning on putting limits on transport sector strikes.

At the same time Sweden is abolishing its wealth and property taxes over the next two years. The two countries the left has used as its poster children for so long seem to want the economic dynamism of the Anglo-Saxon economies. Of course, there are things these countries do well, Swedish school choice and French healthcare (less socialist than ours and better quality). However, the people of France and Sweden have clearly understood that more economically liberal states provide a prosperity that an overactive state cannot match.

Burning our Money on Secondary Moderns

The LSE Library is, indeed, excellent. Wat Tyler has been searching through it for evidence on just why Secondary Moderns went as wrong as they did. What he has uncovered is that they were very poorly funded. If a grammar school system were to be revived today it seems unlikely that particular mistake would be repeated and that does suggest Secondary Moderns might fulfill their proper function. They might really prepare less academic students for practical careers.

I have a lot of conversations with a teacher friend in a hard, comprehensive, school. Those conversations confirm what we've read in Frank Chalk's book. That many children and parents utterly resent the education their children are expected to undertake. They resent it so much that they destroy teacher morale and the possibility of other children learning and waste vast amounts of expensive time in education.

Even those children for whom a higher education is probably not appropriate do need some academic training. They need to learn how to read and write at a basic level. They need to become somewhat numerate to function in the modern world. However, attempting to focus almost all of their attention on academic study for most of their youth is too much. Asked to study all day they become easily distracted and restless. If they were to spend most of their time acquiring practical skills they might be not only better engaged with their education in general but actually pay attention in the smaller periods they are required to study academic subjects. We would increase the productivity of their academic education by reducing the time spent on it. This effect could easily be sufficient to create a net improvement in the academic standards of the worst off at the same time as increasing their training in practical skills.

If the benefits of education become less esoteric parents might do more to help schools out. A parent from a non-academic background is unlikely to have much time for formal academic education but most have direct experience of the importance of having, or not having, skills. If this caused parents to become more supportive of education it could have a transformative effect on educational outcomes among the worst off. It also explains how secondary moderns might come to exist, with equal funding unlike in the old days, under a framework of parental choice.

Now, the case for allowing separate schools rather than streaming: It would seem that in a single school academic achievement will always push out practical skills as the main objective. Academic skills are the hallmark of the higher social strata in wider society. That means that the leadership both within a mixed ability school and the political leadership will be biased towards placing a higher value on academic achievement. It was what got them where they are. This means that schools will be judged by the criteria of whether they succeed academically. Practical skills will not be given the attention they deserve. A separate school might allow those teachers and pupils who see great benefits in a practical education to develop their own sense of pride in practical achievements and not be seen through the prism of how well they do academically.

If right-wingers want to argue successfully for giving schools the freedom to select by academic ability they need to do more than cite the benefits of grammar schools for bright children. It seems probable that you can get most of the benefits ascribed to grammar schools if you just stream every subject. It is rather counterintuitive to argue that poor educational performance somehow leaks through the walls. Arguments for grammar schools also suffer in the face of the 'worst-off test' that is applied by the current Conservative front bench. Grammars might help a small number of bright poor people escape the fate they face at the moment but Cameron's challenge for an educational policy is that it attempt to serve the interests of all students.

Instead of making the case for grammar schools yet again the right need to start making the case for secondary moderns. These schools might properly focus students time on skills that will be of use to them in later life and develop their own sense of pride in the development of hardworking and productive young people. In one of reality TV's few redeeming moments this was what was seen when underperforming students were given the chance at an old secondary modern education. Choice in education could give that chance to a vast number of young people we are currently letting down.

Saturday, May 19, 2007

School choice and the grammar school debate

I finally got my opinion of the schools debate clear in my own head last night on 18 Doughty Street.

Firstly, what are our objectives? I think the right-wing has to be focussed more on school choice than on grammars per se. In a free education system where parents can choose the education of their children some might choose grammar schools, others would prefer well run, streamed schools. Many children with different requirements or in areas with different challenges might choose entirely different models of education. The idea that one solution, imposed from the centre, can be the right way to run something like education which is so complex and varied and requires so much intangible information to truly understand the correct approach in any given case seems fundamentally weak.

Second, how do we get there? Do we take a radical position on education reform and hope that either it proves popular and is enacted or it slips under the radar in the general electoral melee and is enacted anyway or do we try something moderate?

A radical position would involve offering close to complete school choice right away with the ability of parents to top-up their voucher and allowing voucher schools to select based on ability. The advantages of a radical position are that we can move faster and make more of a difference more quickly. Also, it may well be that people are sufficiently frustrated with education results that they'll embrace radical change.

A more moderate approach would involve a steady reduction of state control in the education market. It might start with academy style greater freedoms for state schools. It might then make it easier for civil society to open its own schools through a heavily restricted voucher, as exists in Sweden. After that you will have a broad base of parents many of whom would like to spend a little extra on their children and it would clearly be possible as their school is largely independent. The logic for allowing them to top-up with some fees becomes strong. Finally, the arguments against allowing selection based on ability would be weakened when it became clear that it wasn't such a monolithic decision thanks to huge variety in the education market.

The advantages of a moderate approach are that a steady ratcheting of school freedoms might be less likely to provoke a political response and be reversed. It also probably plays better with an electorate distrustful of radicalism.

The final question is what Willetts was actually offering in his speech. Was his central message an abandonment of grammar schools? This has certainly been the focus in the media but didn't seem to be the main content of Willetts' speech. After all, Cameron had already ruled out a return to grammar schools in the immediate future. Willetts didn't even spend a lot of time discussing grammar schools.

Burning our money made a very sensible case that the focus of this speech was on decontaminating the case for school choice. If Willetts can get the Hefferites sufficiently wound up then whatever education policy the Tories finally settle on will be treated as moderate. Perhaps they'll only go as far as academies. Nothing particularly wrong with academies but I think even a moderate approach to building school choice should be more ambitious. Hopefully, they're clearing the way for something more ambitious. That is a very credible approach to introducing school choice.

Friday, May 18, 2007

Brass Eye

Probably the best satire ever. Truly, inspiringly brilliant.

18 Doughty Street

I'll be on 18 Doughty Street from 9 till 11 pm. No topic and no idea who the rest of the panel are but I'll try to be entertaining.

Thursday, May 17, 2007

Fred Thompson rocks

I got sent this a few days ago but I'm not sure the UK blogosphere has seen it yet. Bloody brilliant. Fred Thompson isn't a candidate for the Republican Presidential nomination yet but could join the race. He criticised Michael Moore for going to Cuba and defending Castro's dictatorship. Moore missed the point and responded by challenging Thompson to a healthcare debate and accusing him of breaking the law by smoking Cuban cigars. This was Thompson's response, cigar in hand:



Moore's counter is so utterly joyless. It confirms the brilliance of Thompson's little video:

"Why would a potential presidential candidate provide photographic evidence of himself committing a felony?" the director told us last night before he showed his film to the 9/11 workers he'd brought to Cuba. "Someone should tell him that 'Law & Order' isn't just a TV show, it's real life. I hope the federal government will take the proper and necessary actions against him for violating the law."

A Very Good Idea

Peter Cuthbertson hits on a very good idea over at the ConservativeHome Platform. I read Frank Field MP's report on Monday and wrote it up for the TaxPayers' Alliance blog. Peter is absolutely right that Field is not only very angry at Brown (one reason he might take the job if offered it) but also has solutions in mind for the welfare system that conservatives should be very sympathetic to.

I also think this might highlight the best side of project Cameron. I worry that the Cameron revolution is becoming a thoughtless, reflexive centrism. However, Cameronism at its best is a much needed opening of the Conservative Party's mind.

At first, in co-operation with Iain Duncan Smith, who came into his own after losing the leadership, Cameron encouraged the party to think again about how we help British society and the family. David Davis was thinking some very interesting thoughts about civic renewal. The party stopped opposing Labour measures that were an improvement over the status quo just because in an ideal world we could do better.

Appointing Frank Field would be a return to Cameronism at its best. Accepting that he is doing some excellent thinking about welfare reform from the Labour benches. Tell the public, with complete justification, that Brown isn't willing to tackle welfare reform seriously and a serious thinker about reform should only be at home in the Conservative Party. Even if Field says no it would still say something very positive about how open Cameron is to good ideas.

Tuesday, May 15, 2007

The Liberal Democrats

Gracchi has it half right. It isn't just an alliance with Labour that could prove a disaster for the Liberal Democrats. Joining either coalition could be the Lib Dems undoing. Join the Conservatives and all their left-wing supporters abandon them. Labour shout "vote yellow, go blue" at any Liberal Democrat who pokes his head above the parapet between now and the end of time. Join a Labour coalition and you've propped up an unpopular government. More than that. People will just wonder what the point of the Lib Dems is. Why not just vote Labour in the first place?

The other parties complicate British politics. However, the same complications exist in all the Western countries. Even in the States the possibility of a Bloomberg candidacy has to be considered. He might seriously affect the balance of votes in a coming election. Whether the Republicans or Democrats suffer the most is unclear although I've seen early polling suggesting the Republicans might lose more support. However, a lot can change between now and election day.

In a first past the post electoral system there is always something tragic about the minor parties. The Lib Dems can attract a relatively large portion of the vote but proximity to genuine power is toxic to their chances. A Bloomberg presidential run, even with the vast finance he could bring to bear, would make no contribution to getting the kind of policies he supports put into practice.

The Republican Candidates for President

This introduction to the top twenty prospective Republican candidates for President (via Andrew Sullivan) is very funny. It also highlights just how weak their field is.

A couple of extracts:

17.

A HUGE BARREL OF OIL

Pro: Coveted; influential; beloved by business community; understood by allies and enemies alike.

Con: Unlikely to support biodiesel-fuel development in the Midwest, potentially hurting chances in Iowa primary; slick.

7.

SAM BROWNBACK

Pro: Serves as a positive role model for ethnic brownbacks all over the country.

Con: Such an ethnicity does not technically exist; lacks the pen-gripping power of Kansas Senate predecessor Bob Dole.

Monday, May 14, 2007

In the Line of Fire Again...

If there is one developing country in the world Britons should really be keeping an eye on it is Pakistan. Thanks to old colonial links and the large British Pakistani community that nation's problems can have serious affects on British society. Pakistan is also crucial to the success of our mission in Afghanistan. Simon Tisdall takes a look at what is going on in that troubled country for Comment is Free. His article is a little muddled but his analysis is interesting. I think the important question is not "when will Musharraf leave", the issue Tisdall focusses upon, but "how will Musharraf leave".

Musharraf, is in serious trouble. Protests in an isolated rural area would be easy to dismiss. Riots in Karachi can imply a genuine threat to the regime. Talk of revolution is still a little premature. Hopefully, whenever change comes it will not entail too much violence. Violent political change is never fun. A bloody resolution to this crisis would be particularly unfortunate as it would increase the credibility of hardliners both in the miltary and the opposition.

Some kind of transition is needed that will convince the military its position and the person of its leaders are not threatened. Violence may encourage them to crack down in order to protect themselves from the mob. At the same time it needs to be shown that relatively secular and moderate opposition can be successful. That would undermine Islamist attempts to pose as the only effective opposition to military or corrupt rule. Once the opposition takes over it then needs to prove able to govern. It needs to prove the "après-moi le deluge" predictions by the military that the country will fall apart without their stewardship wrong.

Central to progress in Pakistan will be involving the wider populace in Pakistani democracy and ending the semi-feudal landlord dominance. This is easier said than done but the institutions of democracy will not last if the population is not properly invested in them.

TPA Blogging

My blogging is becoming somewhat dispersed. Today I blogged twice for the TPA. First, on the new government plans to allow entirely vocational education for age fourteen. A good idea although Labour's drive to push non-academic students into university might ruin it. Second, on Frank Field's study for Reform. It's a searing assault on Gordon Brown's New Deal. The story is a familiar one: too much central control makes a mess of the golden opportunity offered by a growing economy and goodwill towards a new government. Youth unemployment is, despite a decade of economic growth, higher than it was in 1997. Quite a failure. Field's recommendations are interesting.

Voting is open...

Voting for ConservativeHome's Blog Awards is open here. This blog is shortlisted for Best Young Conservative Blog. Vote early, vote often :)

Sunday, May 13, 2007

Tranzi Watch: Mary Riddell

Consider Tranzi Watch a new occasional feature. My spotlight on the most egregious Tranziism of the moment. Today, Mary Riddell's piece about Gordon Brown's written constitution. Before I get going it should be noted that a constitution of the sort she's describing is more likely than one that Tom Paine would like. This should be enough to make anyone have second thoughts about the idea of a written constitution. I'll respond to the worst of it.

Firstly, this idiocy: "In fact, the lecture was a search for a set of values that would forge some bond between the potential jihadist and the Surrey golfer and lure people back to politics." How has that worked out?

It wasn't anything of the sort. It was an attempt to smooth over English frustration at having salt rubbed in the wound, by the appointment of a Scottish Prime Minister, of the democratic inequity Labour created with devolution. His articulation of values and national identity was lame and ignored with good reason.

"Insiders say that in the first weeks, or even days, of his premiership, he is likely to announce a national consultation leading to a British bill of rights. The result will not be the rights-lite version touted by David Cameron as an alternative to the Human Rights Act. This will be HRA-plus, in which Britons get extra safeguards on race relations and equality and the bill is more tightly ring-fenced against interference from any future government. Jury trial, a more extensive right to education and to free healthcare (and, I hope, much-neglected children's rights) might all be included."


This is the really dismal bit.

Extra safeguards on race relations? We have already made huge sacrifices in freedom of expression. She doesn't describe what these new safeguards will be. Constitutionally mandated positive discrimination, an even looser definition of what infringes race relations legislation perhaps? This is the Tranzi urge to do all they can to emphasise group rights (whether class, race, gender or sexuality) at the expense of people engaging with the state and the law as individuals.

She doesn't define what she means in calling for a constitutional safeguard for equality. The idea of taking what should clearly be a policy objective, at best, and turning it into a constitutional matter is absurd. Inequality is far too slippery, complicated and changing a phenomenon to be suitable for constitutional treatment. Is modern inequality, largely led by increased returns to education in the market, really a bad thing and the same as feudal inequality? It is a Tranzi hallmark to try and remove this kind of decision from democratic bodies and make it a part of their ever growing litany of 'rights'.

A right to free healthcare? As a person who can (and does) afford private health coverage why on Earth should I have a right to not pay?

With spiralling healthcare costs throughout the developed world does this sound durable? Particularly given how important lifestyle choices are becoming to healthcare costs incentives to healthy behaviour might become important.

Finally, the article's subtitle "his real target may be the monarchy". Almost a comically bad idea. Destroying freedom of speech in the name of fighting racists is one thing. Destroying Britain's flexible and durable constitutional code in the name of fighting the monarchy is an idea rather harder to sell. British people love the monarchy and dislike Gordon Brown. If Brown tries to take on the Queen and David Cameron his approval gap is likely to widen considerably.

"It's the Trading Gap shuffle..."

The hook is reasonable but otherwise I'm a little sceptical about ConservativeHome's Gordon Brown music video. It makes me want to shout "Get a Haircut" a little too often. Conservatives with long hair always alarm me. Also, isn't the video a little melodramatic for a humorous web clip?



Can I request an animated version of the Macavity poem?

Qutb and Marx

Dalrymple's articles are always brilliant and his new comparison of Qutb and Marx is no exception. In a rather stunning coup Gracchi actually manages to add significant value to Dalrymple's essay. All I can do is recommend that you read both articles. Take away both an interesting insight into Qutb's work and a new understanding of the reasons behind Islamism's similarities to Marxism.