What I’ve been reading

“The Strange Death of Liberal England” (George Dangerfield). A classic I’ve meant to read for years, but only just got to has a strikingly apposite quote in relation to the Tory party’s incitement to army mutiny in relation to any order to enforce Irish Home Rule on the Ulster Unionists. Dangerfield has this great line

The Tory philosophy, up to the beginning of the war, might be summed up in this way: Be Conservative about good things, and Radical about bad things. This philosophy, so far as can be seen, has only one flaw: it was always the Tories who decided what was good and what was bad.

So while donning the mantle of conservatism in defence of the House of Lords, the Tories were prepared to tear up the constitution to defeat Home Rule. The same line seems applicable to the Bush Administration today.

“In Defense of Globalization” (Jagdish Bhagwati) Bhagwati is a smart guy, but he hasn’t yet learned that, on the internets nothing is as it seems. On the lookout for a good anecdote about globalization he finds one that seems too good to be true

In fact, while the rich-country while the rich-country claim to be providing “countervailing power” against the far richer corporationsin their midst, it is ironic that some of the the truly small NGOs in the rich countries themselves have voiced their fears over “unequal” competition from the far bigger and richer NGOs. A hilarious example is provided by a report in mid-2001 of “calls today for multinational pro-anarchy pressure groups to be investigated for monopolistic practices after the NW3 branch of the Radical Left Movement for Socialist Revolution Socialist Revolution was disbanded due to lack of interest.” The report goes on to say that the group’s spokesperson, Nigel Wilkinson, “believes that global anarchy movements such as the ones responsible for the G7 riots in Seattle are to blame for forcing out smaller, independent operations like his…. These large American anti-capitalist movements have effectively taken over the militant scene in this country.” As if this were not amusing enough, the report goes on to say: …”Wilkinson has seen his group’s membership dwindle by almost 70 percent over the last two years, from a peak of three members to one himself

Turning to the reference we find the source is Urban Reflex currently running the headline

Audience Stunned As Pop Star Appears On Stage Fully Clothed

Bhagwati may have been taken in on this one, but in other respects his book is sharp and well-argued. Some more comments before too long, I hope.

As well as these, I very much enjoyed“Singularity Sky” (Charles Stross), and I’ve been alternatively entertained and appalled by the TV version of <“Tom Brown’s Schooldays (Oxford World’s Classics)” (Thomas Hughes, Andrew Sanders) Actually that combination also sums up my response to last nights Swans-Lions game.

Multinationals and CADs

As current account deficits in the US and other English speaking countries continue to balloon, there’s a big demand for talking points in support of a “Don’t Worry, Be Happy” position. A favourite contender is the idea that the US trade and current account deficits are overstated because about half of all US imports come from overseas subsidiaries of US multinationals. For those who’d like to get straight to the bottom line, this fact makes no difference to the current account deficit or its sustainability.

For those who enjoy somewhat eye-glazing arguments about economic statistics, read on.
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Declining enrolments

I was struck by this Guardian story headlined US university enrolment ‘in decline’. We are seeing static or declining new domestic enrolments here in Australia, and it seems the same is true in Canada also. But I was unsure about the US and the Guardian story was lacking detail.

It is old news that the number of US students in areas like engineering and computer science has been falling for decades, and, since Bush came into office (and particularly since 9/11/01) foreign student numbers are also falling. But I had the impression that this was more than offset by increased numbers in law, business and other fields.

Checking at the National Centre for Educational Statistics yields a mixed picture. The total of undergraduate students is rising, but so is the population. Although participation has risen since 1970, participation rates for most age groups have been stable since about 1990 (There’s a graph over the fold), while rates in Europe have risen greatly.

What is going on here?
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Weekend reflections

In keeping with my general hopes of a return to normality, this (lately somewhat irregular)) regular feature is back. The idea is that, over the weekend, you should post your thoughts in a more leisurely fashion than in ordinary comments or the Monday Message Board.

Please post your thoughts on any topic, at whatever length seems appropriate to you. Civilised discussion and no coarse language, please.

Having it both ways

The Gunns case, in which the world’s largest woodchip exporter is suing critics it accuses of ‘corporate vilification‘ is a typical instance of companies wanting to have it both ways. On the one hand, advocates of the corporation deny that corporations can have any moral or ethical obligations, other than to their shareholders. On the other hand, they want all the protections available to a natural person, including protection from defamation[1]. An individual who acted the way a company is supposed to act in the standard theory would be a sociopath, incapable of being defamed because of the absence of any justified reputation.

In this case, of course, we have the equally important issue of defamation laws being used to suppress free speech on political issues. I doubt that Gunns will prevail, but they don’t have to – a corporation with deep pockets will always win at this kind of game, unless the courts come down hard. I hope that they not only lose but are forced to pay a full accounting of the costs they’ve imposed.

fn2. On the third hand, to mangle the metaphor, the officers and shareholders expect to be protected from any sort of liability for their corporate actions, relying on the sanctity of the ‘corporate veil’. I had a go at this topic here

We have a president (updated)

After months of delay and dispute, the BBC reports that the Iraqi Parliament has finally mustered the two-thirds majority needed to nominate a president and two vice-presidents. These positions are largely ceremonial, but the deal presumably implies an agreement to select a Prime Minister, after which an interim government can finally take office, with the task of drawing up a permanent constitution. Some good news is that the Allawi group has been kept to the marginal position its weak electoral support implies.

There are still plenty of big problems ahead – the delays reflect fundamental divisions between Kurds and Shias about the future of Iraq and, except for some token appointments, the Sunnis have been excluded altogether. And the insurgency continues with little letup, having no doubt found many recruits among the refugees from Fallujah, almost completely destroyed in the November campaign there. Still, it seems reasonable to hope that a reasonably democratic, and only moderately Islamist government will eventually emerge.

Assuming this happens, was the invasion worth it? Definitely not, in my view.
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Another big trade deficit

The trade deficit for February came in at $2.8 billion, which suggests an annualised trade deficit of about 3 per cent of GDP, and a current account deficit of maybe 7 per cent of GDP. All the export growth was in the rural sector (mostly coal I guess, though I haven’t checked yet.

There are two broad explanations of this. One is that foreignrs see huge investment opportunities that will enable us to expand exports greatly some time in the future. Given the stagnation of manufacturing exports and the fact that there’s no particular reason to think that we are getting drastically better in service areas like tourism, the only plausible growth area is yet more coal.

The alternative is that we’re relying on hot money that can be pulled out quite rapidly when sentiment about the English-speaking countries sours. At that point, we’ll need to turn the trade deficit into a surplus, pronto. As those who’ve experienced such adjustments can attest, this is likely to be a painful process.

I favour the second explanation, but we’ve maintained these deficits for a decade or more, with the obvious blowout confined to the past few years. So we’ll just have to wait and see.

Out of sight, out of mind

Reader Graeme Bond pointed me to this ABC radio Ockham’s razor special on the way Australia deals with mental illness, especially the Cornelia Rau case, also dealt with on last night’s Four Corners. The Rau case brought into focus how awful it is that places like Baxter detention centre exist, but far more mentally ill people end up in prison. An obvious question is whether the closure of mental hospitals in the 1970s was a bad idea, or a good idea taken too far. Graeme writes

Instead of updating psychiatric institutions, as is done with hospitals, schools etc, we have replaced them with ‘community based neglect’ and another institution, prison.

No one suggests ‘community care’ for other serious illnesses requiring hospitalisation. It is sometimes akin to suggesting open heart surgery on the kitchen table.

Not all mentally ill require a high level of expensive care, many, such as the homeless on the streets would have their lives vastly improved by little more than hostels with a low level of supervision and assistance with Centrelink forms so they were not reduced to begging. It is preferable to jail and probably cheaper.

Others simply need occasional brief periods of hospitalisation during a crisis and otherwise live relatively normal lives with their families.

and this seems pretty convincing to me. We’ve had a string of inquiries into this issue, without, it seems, making much progress.

A dangerous move

According to this ABC report, the Rann government in SA is trying to scrap parliamentary privilege against defamation actions, as a direct response to a political crisis in which the former Speaker, Peter Lewis, who resigned yesterday, has made accusations that a number of prominent people, including MPs, are pedophiles[1]. Although it appears that Mr Lewis named names, and that publication of these names would be protected by parliamentary privilege, the reports I’ve seen don’t give names.

In defence of the legislation, Rann is quoted as saying that there’s nothing to fear from making statements if they’re true, but this claim is itself false. His objection to Lewis’ statements is not that they are provably false, but that they are unsubstantiated. The fact that MPs can make allegations that are true, or at least plausibly grounded in evidence, but not provable in court is the essence of Parliamentary privilege.

There are some changes I’d like to see made in defamation law as it relates to MPs. First, and conversely with Parliamentary privilege, I’d like a strengthening of the principle that criticism of MPs by members of the public should be protected free speech under the Constitution. Second, I’d like an expansion of the existing rights of reply (I’ve never used this mechanism in response to criticisms of me in Parliament, but I think Clive Hamilton has). Finally, the Parliament itself, through the Speaker, ought to be more rigorous in calling MPs to account for abuses of privilege[2].

One thing is for sure. Making radical changes to fundamental institutions in the heat of the moment is a very bad idea.

Update 6/4/5 The Bill has been withdrawn

fn1. This Advertiser report isn’t exactly consistent, suggesting Lewis stated “that a serving MP had been involved in homosexual acts in the south parklands.” This might, I suppose, include violations of age-of-consent laws.

fn2. Given the dominance of the party system, I’m less sure about this last item.