As inflows to the Murray–Darling system continue at record lows, conflict over water is intensifying. The management of both Menindee Lakes in Western NSW and Lakes Alexandrina and Albert in SA has been subject to severe criticism. Currently two of the Menindee Lakes contain nearly 600 GL of water (under current rules, this keeps them under NSW control). South Australia is calling for a release of water to prevent severe damage to the lower Murray, including the SA lakes and the Coorong. But lobbyists for the NSW irrigation sector, like Jennifer Marohasy, are arguing that the barrages preventing sea water inflow to the SA lakes, (themselves a response to flow reductions caused by the initial development of irrigation upstream), should be removed.

There’s little value in assessing these competing claims in isolation. It’s becoming increasingly clear that the current leisurely schedule for achieving a sustainable allocation of water rights is untenable. The Australian government needs to act to bring allocations into line with sustainable levels, and accelerate the repurchase of water rights from irrigators.

As I mentioned a while back, Lovemore Matombo and Wellington Chibebe, the President and General Secretary of the Zimbabwe Congress of Trade Unions (ZCTU) are facing trial on 30 July on charges trumped up by the Mugabe regime. You can help the struggle to free them by making a statement at We are ZCTU and joining a letter writing campaign.

Check out the photomosaic of these two brave men, made up of 2000 individual photos.

It’s time, a bit late in the day, for Monday Message Board. Comment on any topic; civilised discussion and no coarse language please.

It’s time once again for weekend reflections, the longer version of Monday Message Board. Civilised discussion and no coarse language please.

That’s the question being debated at the Creative Capitalism blog. I’ve made a small contribution on the idea, responding to the argument that the managers of companies have a fiduciary obligation to maximize profits. Joshua Gans has covered the same topic, and there’s lots more interesting stuff to read.

Read More »

This peace deal in Zimbabwe seems like good news, though it’s hard to be sure. I hope it is a way to bring the miserable Mugabe regime to an end without any further loss of life and general suffering. At the risk of contradicting views I expressed regarding the Sudan case, I’d welcome a deal where Mugabe lived out his remaining days in retirement, and his party handed over power to the democratically elected MDC.

It’s time for MMB again. Civilised discussion and no coarse language please.

I haven’t had time for a really thorough reading of the government’s Green Paper on emissions trading, let alone a full-scale response. But I thought I’d put down a few points for discussion.

Read More »

Nationalization, that is. In this piece on doomsday scenarios for Fannie Mae and Freddie Mac (H/T Calculated Risk) the cutely named and quasi-private mortgage packagers and guarantors, Katie Benner says

So what might it look like if the government had to lend a hand? Outright nationalization is an unlikely option given that neither the current administration nor the presidential candidates could afford to support such a move in an election year.

but goes on to imply that the likely alternatives could be far more costly, citing a Standard & Poors estimate of a trillion dollar cost to taxpayers, and possible loss of the US government’s AAA rating. Agency ratings aren’ t reliable indicators, but the US government has been in the category of issuers who are assumed to be exempt from scrutiny. A change in this status would be a huge problem for a big debtor like the US.

Either a bailout or a nationalization of Fannie and Freddie would make the Northern Rock fiasco in the UK pale into insignificance. The Northern Rock case shows that a policy towards financial enterprises in which both failure and nationalization are regarded as unthinkable cannot be sustained. The shareholders of these companies have been happy to accept the higher returns associated with an implicit government guarantee and they (the shareholders) should pay the price when the guarantee is needed.

After reading this piece on self-plagiarism in the Times Higher Ed Supplement, I couldn’t think of any better response than to reprint verbatim this piece from 2005 (now with a new improved 2008 publication date), including a self-link to a piece which is simultaneously self-referential and self-plagiarising.

It’s over the fold
Read More »