The Draghi report on European competitiveness.

The Draghi report on European competitiveness.

I have been trying to get on top of whether the Draghi Report on European economic competitiveness is really a game changer. Without study it seems to be a call for more EU (as opposed to member state debt. I am of the view that within the UK, there needs to be transfer union i.e. that borrowing and wealth from London needs to be shared with other parts of the country.

I found this article from the FT, which is headlined, “Europe can learn fiscal lessons from the UK on how to achieve its goals”, and subtitled, “ A co-ordinated reform agenda is crucial if the EU is serious about becoming a climate leader and geopolitical player”, written by Draghi. On diigo, I highlighted the following lines,

The UK government has chosen to significantly raise public investment over the next five years and has adopted precise rules to ensure that borrowing is used only to fund this investment. … Moreover, in order to ensure the quality of spending, transactions will be validated by independent authorities.

To which I reply, “Of course Draghi would argue for independence. The near cultish following with which his recent comments have been greeted is based on the desire by politicians and capitalists to ensure the macroeconomic policy and regulation is outsourced to non-democratic agencies. Central bankers underestimate the ability of democracies to present a wisdom of crowds, even on investment decisions. An example of this is the EU’s horizon investment valuation process, which ranks proposals and select winners from a competition. The technocrats and democrats, particularly representative politicians also underestimate the value that citizens assemblies may bring to these decisions.

Draghi continues,

“A more efficient use of Europe’s high private savings rates requires integrating its capital markets. To redirect private investment from mature industries to more advanced sectors will hinge on completing the single market. … innovative firms in fast-growing sectors such as digital services will not be able to scale up and attract capital. And, as a result, investment will remain locked in old technologies.”

Is this true? Perez, whose theories I summarise on my blog,  argues that the declining profit of now legacy industries will ensure that investment goes to new innovative industries. Also, like most Draghi is betting on digital services as the driver; Perez’s theories suggest that IT is now reaching its stagnation stage and will be replaced although we maybe in a stage where the political power of legacy capitalism is too powerful to be overcome. This is why corporate lobbying power is so destructive to human progress. …

Innovation happens elsewhere!

Innovation happens elsewhere!

“The innovators dilemma” is a book by Clayton Christensen, first published in 1997. In it, he explores the paradox that successful companies that do everything right can still fail. The source of this failure, or that observed by the book, is new entrants to markets pushing market disrupting technologies and products, allied to a management inertia avoiding the necessary changes. This article looks at how these threats impact business strategy, its decision-making (particularly investment decisions) and political parties, specifically the Labour Party.

The innovation problem for political parties was brought to my attention in an unfinished white Paper by Emmanuelle Avril of the Université Sorbonne Nouvelle and in the text she quotes the Innovator’s Dilemma. I conclude that, Innovation happens elsewhere and is inexorable.

The complete article is available overleaf …

A note on Emanuelle Averil’s “The (Unintended) Consequences of New Labour …”

A note on Emanuelle Averil’s “The (Unintended) Consequences of New Labour …”

I have been influenced by the white paper “The (Unintended) Consequences of New Labour: Party Leadership vs Party Management in the British Labour Party..., a white paper to the PSA” by Emanuelle Averil on New Labour, its managerialism and the destruction of its activist commitment and influence. It was published in 2015 before the General Election. I read it in 2017 and strangely ended up sitting next to her at Conference ’19. What she said in 2015 is increasingly relevant in 2021 as Starmer tries to reimpose the controls established by New Labour. Use the "Read More ..." button for a series of quotes from the paper, which I originally posted on diigo and remember that New Labour lost the 2010 election partly because it was unable to renew itself. ...

The innovators dilemma in political parties

On my way to writing the article “Servants, not Masters”, I needed to check my material and links about Emanuelle Avril’s unfinished white paper called, “The (Unintended) Consequences of New Labour: Party Leadership vs Party Management in the British Labour Party”. and was presented to the Political Studies Association 2015 conference, in March so before the 2015 election and consequent Labour leadership election. Eaton’s source identified a failure of the New Labour leadership to renew itself as a cause of it’s failure and Avril’s paper explains why they were always going to be incapable of it.

…. it is true to say that internal consensus and cohesion, as they manifested themselves in New Labour, constituted obstacles to innovation and therefore endangered the survival of the party …

and the ambitions of their successors. (This post continues overleaf/below.) … …

Manifesto bingo, digital liberty and the internet

Manifesto bingo, digital liberty and the internet

I have had a look  at the manifestos and see what they have to say on the internet and Digital Liberty. I have been very influenced by the EDRi voting exchange and summarise the issues of Digital Liberty as e-citizenship, equality before the law, privacy and copyright reform, to which for this election we must add internet governance and industrial & innovation policy. I have created a table summarising the positions of the Tories, Labour, LibDems and Greens. Possibly I should have analysed the SNP manifesto since much of this is Westmister reserved powers. I was hoping to write something easy and quick to read. I don’t think I have succeeded. My super summary is in the figure immediately below, and here is the table I built to help me write this article. (I lost the excel file, so this will have to do!)  My main source was the ORG pages but I have been reading the Labour Manifesto also. I feel that the opposition parties have suffered from the surprise; they probably expected more time to develop their promises. All three opposition parties 2015 manifestos covered these issues in more depth.  …

Stack Ranking

Many company’s, particularly US owned, staff evaluation schemes are based on ranking their staff, and additionally rewarding the top 20% and firing the bottom 10%. (This idea comes from the US, probably from GE; firing people because they are not as good as someone else is illegal in the UK and much of Europe.) Basically it is not about continuous improvement, it’s based on a world view that thinks people are lazy and need fear to make them work hard. Fear of not getting a bonus, or fear of dismissal. This cynicism and hate will never build a successful firm. …

Future of the Internet

In March, I attended the EU’s “Future of the Internet” conference. This was a meeting of Europe’s top computer scientists from both business and academia, planned to discuss future research and development. The meeting was jointly convened by the rotating Presidency (the Government of Slovenia) and the Commission, and held at Lake Bled. I attended a number of sessions dealing with technical, societal and economic issues together with the state of research in the European Union.  The original articles were written from notes taken at the time, posted the following week and back dated to the approximate time the speech was given; they were copied across to this ominbus blog in July 2016. It is now, really quite long. The sessions included, Dr Ziga Turk, who spoke of enlargement and the 5th freedom, Dutton on Privacy, Trust and economies of scale, Wyckoff Lovink, Johansen , Vasconcelos in a panel on economics and Heuser, Grégoire, Uddenfeldt , Nathan , Hourcade on the development of technology in Europe, and speakers from the US and Japan. …