Posts tagged ‘Financial Times’


The team approach

31.03.2020

At the end of the last century, the National Government announced its Bright Future programme. Their research had identified that one thing holding back our national competitiveness was our devotion to the team rather than the individual, when in fact there have been many times New Zealand individuals have made immeasurable contributions and had not been fêted. It compared us with the US, where someone like Bill Gates—I seem to recall he was held up as an example—could be recognized by many as an innovator, while the equivalent Kiwi wasn’t generally known. One of the first moves was to knight Angus Tait, the Christchurch entrepreneur.
   These Kiwi pioneers are still around—people like Dr Sean Simpson of LanzaTech, for instance, using bacteria to consume carbon monoxide and turning it into ethanol—but other than news programmes, they’re not part of our mainstream, and part of me wonders if they should be. They are doing work that should be rewarded and recognized.
   However, the team spirit that New Zealand exhibits all the time, and admires, such as the All Blacks, the Black Ferns, or yachting’s Team New Zealand, could help with the COVID-19 pandemic, as it’s invoked in our response. The four-week lockdown ordered by the New Zealand government has, from what I see out there, been generally accepted, even if I’ve publicly Tweeted that I’d like to see more testing, including of all those arriving back on our shores, including the asymptomatic. (I note today that the testing criteria have been loosened.) The places held up to have done well at “flattening the curve”, such as Taiwan, have managed it because, it is believed by the Financial Times and others, there is a community response, and, I would add, a largely homogeneous view when it comes to being in it together, helped in part by experience with the SARS outbreak, and possibly by the overall psyche of ‘We have an external threat, so we have to stick together.’ Each territory has a neighbour that it’s wary of: Taiwan looks across the strait at the mainland, since there hasn’t really been an armistice from 1949; Singapore has Malaysia as its rival; and South Korea has North Korea.
   Across Taiwan, there have been 13·5 cases per million population, or a total of 322 cases; New Zealand is currently sitting on 134·5 per million, or 647 cases. Singapore is on 158·7 per million, or 926 cases; South Korea, which is now seeing a fairly low daily new case increase, is on 190·9 per million, or 9,786 cases.
   I support the Level 4 approach in principle, and having the lockdown, and while we aren’t accustomed to the “external threat” as the cited Asian countries, we are blessed with the team spirit that binds Kiwis together. We are united when watching the Rugby World Cup or the America’s Cup as we root for our side, and the unity is mostly nationwide. There are some on the fringe, particularly on Facebook, based on what others have said, with ideas mostly imported from foreign countries that are more divisive than ours.
   On that note, we might have been very fortunate to have the national culture that we do to face down this threat—and not have any one person standing out as we knuckle down together. Even those who are seen regularly delivering the news—the director-general of health, for instance—do so in humble fashion, while our own prime minister goes home after we go to Level 4 and answers questions in her Facebook comment stream via live video. Even if economically we aren’t egalitarian, culturally we believe we are, and it seems to be keeping us in good stead.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in business, China, culture, leadership, New Zealand, politics | 1 Comment »


Capitalism falls down when it’s rigged

04.12.2019

Martin Wolf, writing in the Financial Times, touches on a few points that resonate with my readings over the years.
   He believes capitalism, as a system, is not a bad one, but it is bad when it is ‘rigged’; and that Aristotle was indeed right (as history has since proved) that a sizeable middle class is necessary for the functioning of a democracy.
   We know that the US, for instance, doesn’t really do much about monopolies, having redefined them since the 1980s as essentially OK if no one gets charged more. Hence, Wolf, citing Prof Thomas Philippon’s The Great Reversal, notes that the spikes in M&A activity in the US has weakened competition. I should note that this isn’t the province of “the right”—Philippon also shows that M&A activity reduced under Nixon.
   I alluded to the lack of competition driving down innovation, but Wolf adds that it has driven up prices (so much for the US’s stance, since people are being charged more), and resulted in lower investment and lower productivity growth.
   In line with some of my recent posts, Wolf says, ‘In the past decade, Amazon, Apple, Facebook, Google, and Microsoft combined have made over 400 acquisitions globally. Dominant companies should not be given a free hand to buy potential rivals. Such market and political power is unacceptable. A refurbishment of competition policy should start from the assumption that mergers and acquisitions need to be properly justified.’
   History shows us that Big Tech’s acquisitions have not been healthy to consumers, especially on the privacy front; they colluded to suppress wages before getting busted. In a serious case, according to one company, Google itself commits outright intellectual property theft: ‘Google would solicit a party to share with it highly confidential trade secrets under a non-disclosure agreement, conduct negotiations with the party, then terminate negotiations with the party professing a lack of interest in the party’s technology, followed by the unlawful use of the party’s trade secrets in its business.’ (The case, Attia v. Google, is ongoing, I believe.) Their own Federal Trade Commission said Google ‘used anticompetitive tactics and abused its monopoly power in ways that harmed Internet users and rivals,’ quoting the Murdoch Press. We see many undesirable patterns with other firms there exercising monopoly powers, some of which I’ve detailed on this blog, and so far, only Europe has had the cohones to slap Google with massive fines (in the milliards, since 2017), though other jurisdictions have begun to investigate.
   As New Zealand seeks to reexamine its Commerce Act, we need to ensure that we don’t merely parrot the US and UK approach.
   Wolf also notes that inequality ‘undermines social mobility; weakens aggregate demand and slows economic growth.’ The central point I’ve made before on Twitter: why would I want people to do poorly when those same people are potentially my customers? It seems to be good capitalism to ensure there’s a healthy base of consumers.

Tags: , , , , , , , , , , , , , , , , , , , , , , , , , ,
Posted in business, internet, politics, USA | No Comments »