In a digital cacaphony, we need journalism more, not less

Great blog post by George Brock, who thinks that disintermediation is not an unalloyed good, and that sometimes intermediaries are important and necessary. Extract:

What I’m trying to catch with the term “re-intermediation” is this. The way journalism’s intermediary role works has been massively altered, but the need for that function never went away. Whether or not we define it as journalism done by people called “journalists”, people need and want selection, distilling and interpretation.

Never lose sight of the fact that perhaps the single largest change underlying the “digital era” is the simple increase in the quantity and velocity of information moving between people. That proliferation increases the need for intermediary help, not the other way round. Organising and clarifying information (something that social networks do) can create value.

To me, the story of the last few years is one of regular, gentle reminders that raw, unsorted information has few fans. It’s obviously true that in the digital era someone who wants their information uncontaminated by journalism has a much better chance of getting it. But information sifted, verified, clarified and – yes – packaged has the greater appeal.

He’s right. I’ve been a subscriber to the Economist for many years not because I share its ideological views but because it’s a pretty good sieve that often highlights stuff that I might not have spotted otherwise and to which I ought to be paying attention.

Also: on the over-reach of disintermediation. Travel agents are usually the standard case study of intermediaries swept away by the wave of creative destruction. So we — the customers — now do all the bureaucracy associated with booking our air travel. So it’s only when you have to plan a complicated, non-standard trip that you realise how useful a knowledgeable intermediary can be.

The best camera…

seascape

… is always the one you happen to have with you. In Ireland last weekend I carried a Nikon DSLR but wound up mostly using my iPhone6 because it was so much better at handling the (difficult) light. The Apple camera is very impressive, especially in situations where HDR capability is needed to manage the luminance range. This isn’t a particularly good picture, but the scene completely defeated the Nikon.

Ye olde reality distortion fields

The strangest thing about Downton Abbey, the reality distortion field masquerading as costume drama, is not that it has been captivating British audiences — for the Brits are congenitally susceptible to this kind of class-ridden crap — but that it is apparently a big hit in the US, which supposedly is a more egalitarian, less deferential society.

Also interesting is the coincidence that — as Thomas Piketty has shown — levels of inequality in the US are now approaching what they were in Britain when Downton Abbey was in its heyday. Wonder how many of those addled American Downton addicts realise that?

Imbecility rules ok?

Appearances notwithstanding, we are not governed by imbeciles. Our problem is that we are governed by unscrupulous politicians who see imbecility as the way to the voter’s heart. Step forward Theresa May, the current Miss Whiplash of the Tory front bench, who wants a solemn commitment in the next Tory Manifesto to expel all foreign graduate students after they graduate and make them apply from abroad for visas to work in the UK. Yes, you read that correctly. She wants to force bright young foreigners, who come to do research degrees in the UK because we have some great universities, to leave the moment they become available for work in our knowledge-based industries.

Here’s how James Dyson, the entrepreneur and inventor puts it:

Train ’em up. Kick ’em out. It’s a bit shortsighted, isn’t it? A short-term vote winner that leads to long-term economic decline. Of course the government needs to be seen to be “doing something”. But postgraduate research in particular leads to exportable, patentable technology. Binning foreign postgraduates is, I suppose, a quick fix. But quick fixes don’t build long-term futures. And that’s exactly what many researchers are doing.

Bright sparks are drawn to the UK for good reason – our universities are among the best in the world. Particularly for science and engineering. Yet the Home Office wants to say cheerio to these sharp minds as soon as their mortarboards land on college lawns. The moment research is finished students are forced back to their homelands, from where the home secretary is happy to allow them to apply for jobs in Britain. Not exactly motivating. Not exactly practical. This is an abrupt departure from an equally unworkable idea that after their research they have two months to be employed, otherwise they are ejected. No wonder fewer than 10% bother to try to stay.

Our borders must remain open to the world’s best. Give them our knowledge, allow them to develop their own and permit them to apply it on our shores. Their ideas and inventiveness will create technology to export around the world.

The interesting question, of course, is why Miss Whiplash thinks that her daft policy idea will be a vote-winner in a closely-fought election? The logical inference is that she thinks that voters are imbeciles. In which case she is following in the footsteps of one of her heroes, Winston Churchill, who famously observed that “the best argument against democracy is five minutes’ conversation with the average voter”.

Sigh.

Could Facebook be a factor in the next election?

This morning’s Observer column:

There are two things about 2015 of which one can be reasonably certain: there will be a general election in May and it’s unlikely to produce an overall majority for either of the two big parties. In those circumstances, small, localised events might have big implications: a Ukip candidate shoots his mouth off about, er, non-white people; a Labour candidate turns out to have an embarrassing past; a Tory garagiste cannot differentiate between sexual harassment and bum pinching. The kind of stuff, in other words, that could affect the outcome in a finely balanced constituency.

Which brings us to social media and the question of whether the 2015 general election could be the first one in which the outcome is affected by what goes on there. Could Facebook, for example, be a factor in determining the outcome of some local constituency battles?

Far-fetched? Maybe. But the question is worth asking because in the 2010 US congressional elections, Facebook conducted an interesting experiment in social engineering, which made some of us sit up…

Read on

What’s really wrong with the economy

Great blog post by Mariana Mazzucato. Excerpt:

To reduce inequality, its not enough to consider the power of redistributive taxation or handounts, like Renzi’s ’80 euro monthly bonus’. It is essential to tackle the more intrinsic problems of corporate governance which have allowed profit wage levels to sore to record levels, leaving wages falling behind. It is indeed this point that brings us to the second problem. The notion that big bad finance must be somehow tamed in order to rebalance the economy to good old industry, ignores how sick the real economy has become. Industry itself has become financialised, focussing too much on ‘hoarding cash’ (at record levels) and/or spending on areas that boost short term stock prices (thus stock options and executive pay), than on long run areas like R&D and human capital formation. Indeed, Since 2003 Fortune 500 companies have spent 3 trillion dollars on share buybacks, often justifying these with the excuse that there are ‘no investment opportunities’. Yet a look at the largest buy-backers (pharma and oil) reveals that these are in two sectors yearning for investment in new opportunities: health and renewables. And as I show in my work, it has been a select group of public sector institutions in the world, that have been spending the most on these opportunities rather than the sick and financialised private sector.

Thus it is urgent for industrial policy, which is finally becoming fashionable again, to not simply throw support to certain firms and sectors, such as IT or ‘life sciences’, but ask companies within these and other sectors to be part of the reform that is needed. Instead we are witnessing the opposite: sycophant governments bending backwards to unquestioningly please the ‘growth’ requests of big business, and a widespread attack on workers rights.

And, later, she nails the foolishness of the ‘patent box’ trap that George Osborne has recently walked into:

This policy, which greatly reduces tax on income generated from patented goods, increases business profits even more while doing little or nothing to increase private sector investment in innovation (the goal of the policy). Patents are already monopolies: policies must target not the income they generate (protected for 20 years!) but the research that leads to them–especially in a country like Italy that has one of the lowest business sector spends on R&D. Instead, this policy will only reduce government revenue, forcing cuts elsewhere in order to remain ‘on target’ with the deficit.

Another example of business getting its way in a period in which governments are starving for growth, is the other side of the Jobs Act which reduces taxes for private equity, crowdfinancing, and venture capital funds, as though these are the secret to innovation financing. The reality is that what is required by both small high growth innovative companies is patient long term committed finance, not the increasingly speculative VC model that focuses only on the ‘exit’ phase. Yet the wrong model of what drives growth–an obsession with SMEs and VC– has seen the time that private equity has to be invested from 10 to 2 years to receive capital gains tax reductions–causing many of these companies to focus on short term returns.

Wouldn’t it be nice to have a Labour party which understood some of this stuff?

How the unthinkable becomes thinkable

From the Christmas Edition of the New Yorker:

It’s hard to describe it as a positive development when a branch of the federal government releases a four-hundred-and-ninety-nine-page report that explains, in meticulous detail, how unthinkable cruelty became official U.S. policy. But last Tuesday, in releasing the long-awaited Senate Select Intelligence Committee report on the C.I.A.’s interrogation-and-detention program, Senator Dianne Feinstein, the committee chairman, proved that Congress can still perform its most basic Madisonian function of providing a check on executive-branch abuse, and that is reason for gratitude.

And…

The report also demonstrates that the agency misrepresented nearly every aspect of its program to the Bush Administration, which authorized it, to the members of Congress charged with overseeing it, and to the public, which was led to believe that whatever the C.I.A. was doing was vital for national security and did not involve torture. Instead, the report shows, in all twenty cases most widely cited by the C.I.A. as evidence that abusive interrogation methods were necessary, the same information could have been obtained, and frequently was obtained, through non-coercive methods. Further, the interrogations often produced false information, ensnaring innocent people, sometimes with tragic results.

Other documents illustrate how the agency misled. In June of 2003, the Vice-President’s counsel asked the C.I.A’.s general counsel if the agency was videotaping its waterboarding sessions. His answer was no. That was technically true, since it was not videotaping them at the time. But it had done so previously, and it had the tapes. The C.I.A. used the same evasion on Senate overseers. A day after a senator proposed a commission to look into detainee matters, the tapes were destroyed. Similar deceptions on many levels are so rife in the report that a reader can’t help but wonder if agency officials didn’t simply regard their cloak of state secrecy as a license to circumvent accountability.

So, will anything change?

It remains to be seen, though, whether the report will spur lasting reform. Darius Rejali, a professor of political science at Reed College and an expert on torture regimes, doubts that it will. For one thing, despite McCain’s testimony, torture is becoming just another partisan issue. This wasn’t always the case—it was Ronald Reagan who signed the U.N. Convention Against Torture, in 1988. But polls show both a growing acceptance of the practice and a widening divide along party lines. “It’s becoming a lot like the death penalty,” Rejali said.

All of which brings me to our current ‘debate’ (such as it is) about online surveillance. It’s interesting to see how affronted contemporary officials and government ministers become at any suggestion that the agencies are not behaving ethically or even legally. The response is to assert indignantly that such behaviour is unthinkable and that it is outrageous even to hint that some officials might behave badly.

Which makes me wonder if all these righteous protesters are either in denial or suffering from a bad case of collective amnesia. It’s not so long ago, for example, that the senior ranks of MI6 harboured a nest of Soviet spies. And I can’t think of a public or semi-public agency in recent years — the BBC, the Metropolitan Police, the Press Complaints Commission, the South Yorkshire police force, the Care Quality Commission), the Catholic church and MPs to name just seven — that has not done things or condoned behaviour that, when exposed, has been deemed unthinkable, unethical or incompetent.

Given what we now know about the recent history of our institutions, it seems statistically improbable that analogous malefaction is not going on in their contemporary equivalents. At any rate, it seems to me to be the most rational default assumption. Why should we believe any assurances from public or corporate spokespersons any more?

The Afghan shambles, and what it means

One of the astonishing things about democracies is the way in which those in government are allowed to get away with talking nonsense, especially if that nonsense involves ‘national security’, ‘defence’ or war. It was obvious to the meanest intelligence that the British adventure in Afghanistan made no sense, and all that ministerial guff about having British boots on the ground in that benighted land making the streets of Britain safer was pure baloney. And yet ministers from the PM down continued solemnly to intone it, and journalists reported it without much in the way of critical comment.

And now we’re ‘out’ of Afghanistan with nothing to show for it except humiliation, death, injury and humiliation.

Will Hutton has a good column about this in Sunday’s Observer. Excerpt:

None of the multiple and varying objectives set by three prime ministers and six defence secretaries through our engagement in Helmand province over eight years has been met, yet cumulatively it has cost at least £40bn. The bravery of British soldiers cannot be doubted: 453 have died; 247 have had limbs amputated; 2,600 have been wounded. Tragically, many uncounted thousands of Afghans have been killed; too few of them were fighters enlisted by the Taliban.

There is no improved government in Helmand. There has been no hoped-for economic reconstruction: heroin production is higher than it was. The violence between tribes, families and warlords is more entrenched. Helmand is more of a recruiting sergeant for terrorism and jihadism than it was; there have been no security gains. The central government in Kabul is more rather than less threatened. If one aim was to make the British homeland safer by victory in southern Afghanistan – a fantastical claim of last resort – Britain is now less safe.

More widely, our failure in Helmand, following on from the disaster in Basra where our forces were beaten back to the airbase outside the city and only the intervention of the US army allowed an orderly exit, has led to America’s profound re-evaluation of our usefulness as an ally. Tony Blair’s key aims for first invading Iraq to quest for nonexistent weapons of mass destruction and then pivoting into Afghanistan was to prove to the US that we were stalwart allies, consolidate the “special relationship” and so maintain Britain’s standing as a co-upholder, if junior partner, of the world order. In this, he was solidly supported by the “strategists” in the Ministry of Defence and leading generals anxious to defend their budgets.

All that has been completely dashed. Frank Ledwidge in his passionate and revelatory book ‘Investment in Blood’ (the source of the figures above) quotes former vice chief of staff of the US army General Jack Keane speaking at a conference at Sandhurst in late 2013 about the twin debacles of Basra and Helmand: “Gentleman, you let us down; you let us down badly.” Ledwidge continues, having spoken to many senior American military leaders: “This is a common view among senior American soldiers.” The US commander in Afghanistan, General Dan K McNeill, is uncompromising, cited by Jack Fairweather in his no less astounding ‘The Good War’: the British “made a mess of things in Helmand”. Afghanistan has left the special relationship in tatters.

Interesting also to hear soldiers who have served in Afghanistan talk about it. It’s clear that they yearn for a convincing story that would justify the death and mutilation of their comrades. But no such story is forthcoming, for the simple reason that none exists.