Leveson – 2000 pages for the 19th Century

A couple of weeks ago, I posted:  Selling Off the Fourth Estate – which attempted to outline the momentous problems impacting the print media. These problems centre around the rapid growth of online media, blogs, Twitter and the rest which make for competition in our snap-shot age.

Along comes Leveson and ignores it all! Not just my blog – which as part of the online circus will never get his attention but the whole of the internet. As James Ball writes in the Guardian: quoting Leveson first,

“[T]he internet does not claim to operate by any particular ethical standards, still less high ones. Some have called it a ‘wild west’ but I would prefer to use the term ‘ethical vacuum’,” it reads. “[T]he internet does not claim to operate by express ethical standards, so that bloggers and others may, if they choose, act with impunity.”

The report then suggests there is a “qualitative difference” between seeing, for example, pictures posted online versus on the front page of a national newspaper, noting “people will not assume that what they read on the internet is trustworthy or that it carries any particular assurance or accuracy”.

So, Leveson seeks to wrap up the online media in statutory rope with Ofcom as the judge and jury while ignoring the fact that the print media is dying an agonising death already at the hands of the internet as he reacts (maybe over-reacts) to the public call for action.

Public reaction in the UK is understandably violent against the phone hacking and over-intrusiveness of the press in key cases such as the McCanns and Christopher Jefferies. The desire to tame the press is not new – it has been the case for centuries. But, the real harm has been done recently by the internet and the freedom to publish on it which has taken much of the business of publishing away from the printed media.

There are many articles written about the likely death of print media and anyone who talks to journalists will know that they now operate in a silo that is getting smaller and smaller. Leveson has missed the opportunity and the UK has missed the argument. Appointing a judge to rule on the press was undoubtedly going to lead to a legal framework rather than any new understanding of what investigative journalism is all about. Leveson is a lawyer and the legal profession (which also makes up so much of our leadership in the UK) does not have the ability to “judge” society’s ills. They make law and judge on whether the law has been broken – lawyers are real dangers when they try to set the standards or try to understand what ails society.

So, the mistake in appointing a lawyer / judge is now apparent. The print media’s death will merely be hastened if a statutory rope is tied around it. The Fourth Estate – the crucial monitor of our executive, legislature and legal processes (as well as of society) – will be hastened towards the unregulated and “wild west” of the internet. This is happening anyway as more of us publish on it and more decide to give up regular reading of newspapers and weeklies. Analysis is being eroded and headline journalism (just one click away) is gaining momentum.

Leveson is completely out of date on this and ignorance is not a virtue. While TV and radio have managed to compete (so far), it has also suffered. Many online visual and audio news facilities exist and the number of options grow daily. But, TV and radio are not highly analytical. Even in a one-hour documentary, they scratch the surface. The cost of TV remains high and the options to this are considerable.

This means that printed media and its funding remain important and its ability to compete with the internet is so important. Leveson (and the government that appointed them) have missed a key point.

What next? This Government has already stated (through Cameron and Hague) that they are less keen to enact the key Leveson requirements (a legally enforceable press act) than others. This is good even if it infuriates public feeling on this, while gaining support from  Liberty, PEN and many other press freedom groups. What remains a problem is the notion of “press barons” and the difficulty of too much power in the Fourth Estate being held by too few people or organisations.

This and an understanding of the way that the internet is re-shaping the press and how both influence decision-making (at all levels) are the key questions that the “press” has to face. The law as it stands in this country and our desire for the freedom of the press so that it can rail against hypocrisy and totalitarian doctrines of the centre are at the core of our society. The printed press should work to get its act together – the market it attempts to steal by printing lies and which has resulted in the demise of the News of the World and potential court cases against senior management in the industry is already turning against it and to the internet. Government should focus on the twin issues of print press centralism (too few owners) and funding of the printed press and the rise of onilne media.

The UK deserved better than a blinkered 2,000 page report by Leveson that, despite its huge page count, was prepared to spend one page on the internet – the main reason for the drive for circulation that has driven papers like NotW to scandal and illegality.

Two-speed economics – Technology and Governance

The Price of Externalities: Georgescu Roegen Extravagance

Fast lane – Markets at the speed of technology

Tom Standage’s book “The Victorian Internet” describes how the mass of wired communications – the telegraph – changed the developing world – (http://www.amazon.co.uk/Victorian-Internet-Tom-Standage/dp/0753807033/ref=sr_1_1?s=books&ie=UTF8&qid=1347191394&sr=1-1).

As did Gutenberg’s printing press around 1450, the telegraph, the telephone, the fax, the mobile phone and now the internet and the world wide web continue to transform our ability to communicate and miscommunicate – instantaneously. There is no question that technological development races onwards. The human race has a special ability to make extraordinary progress in scientific research and understanding and in the application of that through engineering into products that transform the way we live.

The technological advance is propelled by the “marketplace” – where supply and demand perpetually force change.

Slow lane – Governance at the speed of bureaucracy

As we continue to make enormous gains in technology, our ability to keep up with the excesses of the market (market waste) is almost the opposite. It seems that we react late to technological advancement – delays that can cause inconvenience but also (at the extreme) loss of life.

Inconvenience: the UK awaits the Leveson Commission report into phone-hacking – the use of technology by certain newspapers to obtain salacious stories on (mainly) celebrities. Newspapers are closed, criminal prosecutions are under way and the possibility that press freedom will be curtailed.

Loss of life: the destruction of our environment through global warming (CO2 emissions and the potential for vast amounts of methane to be released by the rapidly melting glaciers) is a direct result of technology and manufacturing’s use of fossil fuels. It could prove just as damaging (or more) than the technology and development of weaponry that fuelled the two World Wars of the 20th Century.

The slow lane is inhabited by politicians and civil servants that exist in a variety of slow lane decision-making arenas. These could be democracies; they may be legalist governments such as China.

The slow lane is inhabited by the “mechanics of government” or “Market Governance Mechanisms” (MGM)– “governance”.

The tortoise and the hare

Since the development of governing institutions, those in government have continuously sought to control technology and its effects. From the control of counterfeiting (as in Newton’s day or now), developing health and safety standards, maintaining arms control, to reducing environmental degradation, people have put their faith in governments’ ability to manage the sweep of technology. Time after time, technology has been at the forefront and governance has been slow to catch up.

Aesop’s fable of the tortoise and the hare had the tortoise winning, but while the hare of technology can be tamed, it is continuously ahead of tortoise governance and, in the global economy we now inhabit, will extend that lead. It is only where governance is centralized and total (such as in Japan prior to the Treaty of Kanagawa in 1854 or where the government may be theistic such as with the Taliban) that the market is not allowed to exist at all and technology is starved.

As soon as market forces allow, the pace quickens. China is a recent example of a centralized, legalist state that remains in control but has opened up the marketplace – totalitarianism plus capitalism. Of course, the rise of technology is a serious threat to governance stability in China. This is exacerbated by world-wide communications technology that provides comparisons with the rest of the world to every region. This comparative data spreads the world on what is available and draws everyone to want the same – more products and the latest technology. The hare merely passes on the baton to the next hare.

In the same race?

The question of how Governance reacts to the market is being played out constantly. Whether it is the forlorn approach of international Governance to environmental issues or national Governance reaction to the internet or any number of other interactions, Governance and the governing seeks to manage technology and the effects of technology.

The rationale for Governance (and control) over technology is based on a mandate from the public (whether by vote via manifestos or on a perceived basis – as in China or a theistic basis or historic basis as in most of the Middle East). This mandate often runs against the market – and many, for example, Tea Party libertarians in the USA, believe that Government should play no part whatsoever in managing the market. They do not believe that Government has a role to play at all. This Ayn Rand view of the world, the most extreme market view of governance, believes that the “invisible hand” will provide the right result.

So, should technology be subject to control? Is this two-speed race real?

The answer has to be “yes” – but an acknowledgement that it is a race would be a start. Then, we may be able to establish some of the rules: rules which enable the development of products and technology while ensuring that the trade-offs that we have to endure are sufficient to allow us (and other life forms) to continue to survive.

Race to what?

The marketplace works best when there is an identifiable demand and an ability to supply. This is the basis upon which economics exists. The market, however, is but one aspect of our lives and the market cannot dictate whether a particular form of animal life is allowed to survive or whether desertification is made worse in Sudan, for example.

These are typical market externalities and the market appears to have no answer to such difficult outcomes. These are outside the market and the invisible hand assumes that they can be dealt with as externalities – and forgotten.

These externalities, or market anomalies, are where non-market forces reside. Much of this is the responsibility of market governance; some of it is charitable work or non-market, voluntary activities. However, technology is primarily (at least in the 21st Century) market driven (as opposed to driven by government spending on defence, which brought into play technological advances in the 19th and 20th Centuries).

The race that technology exists to fight is one of material “progress” (advances in health care, biotechnology and the like are within this area) where there is a defined demand.

Governance is then required to sweep up behind in ensuring that the advances or changes in technology are suitable or genuinely advantageous.

Of course, as Georgescu Roegen (a leading economist) stated in 1975: “Perhaps the destiny of man is to have a short but fiery, exciting, and extravagant life rather than a long, uneventful, and vegetative existence.”

Intersection: market and governance

At present, the governance of technological externalities problem is two-fold:

(1) Each nation works out its own response to changes – often many years behind the change itself

(2) There are serious world-wide technological implications – changes that impact regions and the world – not just nations.

The problems get bigger as the intersection of the marketplace and governance is mainly concerned with economics, not externalities. Yet, this may be the biggest problem concerning mankind. Working out how to properly manage the interaction between the marketplace and governance in terms of market externalities while allowing for competition (the essence of the market and the progenitor of technological change) may well be the biggest challenge we have. If capitalism is the norm – and through this the market economy – what role has governance of the market – nationally and internationally?

Can institutions that are already in place (such as the WTO or UN Conferences on the Environment or IAEA or any number of international institutions that operate today (see: http://www.genevainternational.org/pages/en/55;International_Organisations) keep up with the market whilst enabling or at least allowing the best of what the market does to flourish?

Is it even possible for the market – now on a global scale – to be centrally managed to the extent that externalities that we all pay for in terms of health and safety and maybe inter-generational catastrophes of the future can be in any meaningful way properly be taken into account?

Or, are there self-organizing principles that guide human evolution and probably guide our economic and technological progress which work and negate the need for any central institutions?

An Olympian Challenge

 

To repeat: the governance of market externalities may well be the major challenge that mankind has to bear.

Already, we may be dangerously close to bequeathing future generations with a challenge that may be unwinnable.

Whether it is genetic engineering, or nuclear warheads, or CO2 emissions or whatever, the global challenge is to admit that the challenge is a real one and that the market, left to its own devices, is unlikely to deliver the desired results in a timeframe that will allow life to continue to prosper – the Georgescu Roegen extravagance

Libertarians argue that we will ensure that technology and the market will find the solutions – a hope for the best approach that they believe will get us out of the Georgescu Roegen extravagance.

However, the danger that the challenge will be beyond the capability of the marketplace is large enough for us to consider the consequences of failure. The fact that we can obtain information quickly and internationally does not help unless we can use the information and make decisions quickly. Governance mechanisms are the opposite. It now looks increasingly like 19th Century institutions are incapable of addressing the negatives that the marketplace throws up – unpriced externalities Maybe the only way to solve the problems of the marketplace is through using technology and self-organization on a local basis so that externalities are assessed and redressed as appropriate.

This means that the role of international organizations would be to assist the process. Instead of not-for-profits like Witness (http://www.witness.org/) acting on their own to provide assistance to local groups (“See it, film it, change it”) it would be the role of large national and international institutions to enable local groups through technology. Markets are self-organizing but have created a degree of externality that is seriously and adversely impacting societies throughout the world. International governmental organizations are failing to come to terms with this. So, the role of national and international institutions has to be to equip and enable local groups – through finance and law changes but on a vast international scale.

Just like companies and government work together to develop the markets, so governments and NGO’s /local groups should be working to develop externality solutions (with the companies wherever possible) but on an international basis.

Research is ongoing such as at http://shapingsustainablemarkets.iied.org/ and sustainability in business is now a constant theme in best in class organizations. Those such a CIMA (Chartered Institute of Management Accountants – www.cimaglobal.com) have adopted sustainability and the role of senior management in delivering this for some time. Sustainability is the central mantra of organizations like Tomorrow’s Company (http://www.tomorrowscompany.com/) and the whole CSR movement.

But, just like microeconomics and macroeconomics never come together, so the business by business approach and the international institutional approaches never seem to gel.

Witness provides a great example of the ability of self-organization – governments, local, regional, national and international should now be harnessing the technologies to equip civil society to the same on a scale never before seen. Every national government should have an Externalities Minister – where such market problems are evaluated in total, practical help is provided to civil society to address the problems and genuine dialogue established with business. Governance and the markets would then be in the same race.

Politics – the battle lines between citizens and the state

 

Why the party system is breaking down

Communications leads to changes

 

Types of government have changed with changes in communications. When communications was by word of mouth, strong central government through despotic leaders was the norm.

 

With the advent of the printing press, information could be made more available and (certainly in the West) education could be obtained more widely, leading to different forms of government and wider emancipation.

 

Now, with the dramatic communication changes wrought through mobile telephony and the internet, information (of all types, good and bad, intelligent and unintelligent) is made available throughout the world and the strains in our current governing structures are made worse.

 

The Arab Spring erupted for a variety of reasons but spread through new communication devices and systems. The organization of mass campaigns becomes easier and the attempts to stifle protests by shutting down websites and demanding changes to other, online capabilities is progressively harder.

 

Is the Party over?

 

Political parties are now finding it tougher to piece together coherent and wide-ranging policies that appeal to more than a small percentage of a nation’s population. In a word of communication possibilities, single-issue lobbying is becoming the norm. Politicians in the west continuously argue for choice but the choice that is now on offer, between major political parties without a cause (such as labour rights in the early 20th Century) is not welcomed.

 

As wealth increases (as we develop into the Affluent Society of Galbraith – see:   https://jeffkaye.wordpress.com/2012/05/06/the-affluent-society-and-social-balance/

 

so do the opportunities to connect with a wide range of issues – be they environmental, health, sport, education, self-help, business, charitable or whatever. The numbers of people that engage with politics becomes less because people are engaging with single issues. Parties rarely have a key message that intoxicates any more and are driven to compromise on a wide range of issues that appeal to no-one in particular. This means that voting may be on single issues or they are watered down to choose a party that is less bad than the others.

 

 

 

 

Greece – democracy’s floundering founder

 

In Greece, so dismally rent by bad government and economic disaster, the situation is playing out. Here, the people cannot elect a majority party to power and are being forced to vote again until they do. The party system is broken in Greece and single-issue politics dominates to the extent that the people have made their choice but the politicians don’t like it and tell them to do it again.

 

This makes a mockery of democracy in the home of democracy – an irony that is surely not lost on anyone but a potential disaster. The problem is that even if the Greek people are forced to make a different decision in a few weeks’ time, there is no guarantee that the result will be accepted by them and the demonstrations will begin again. The parties need to adapt to the will of the people by ensuring that the single-issues are wrapped into an acceptable set of policies that the majority are willing to accept – they should have done this first time around and it speaks volumes about the paucity of leadership in Greece that this has not happened.

 

Centralisation no longer works

 

A problem with the European Community which has been exacerbated by the Euro is that political judgements made after the end of the Second World War are not relevant to the 21st Century. While trading blocks are an economic decision, a political block (aimed at tying Germany into a framework which would prevent it from the belligerence of two world wars and providing Europe with a seat at any political table for many years to come) becomes a heavy weight to bear in a world that is likely to eschew centralization.

 

Vastly improved communications (including air travel) means that real globalization is the norm. Opportunities are now in place for a dramatic de-centralisation of political power in many countries and between them. Even if we need the UN, the WTO and other world-wide organisations, they are based on a 19th Century division based on the nation-state. We witness daily the huge challenges that this brings in places like Sudan or Iraq – nation states drawn by the pencils and rulers of 19th Century European civil servants, where older affiliations strike at the heart of the state philosophy.

 

In developed nations, the struggle is less severe but the economic stresses that are beginning to tear at countries like Greece, Spain (where half of the young people are unemployed), Ireland (the scene of a mass exodus after so many years of its reversal) are leading to a disenfranchisement. Italy, with an unelected government of “technocrats”, is surely not the model for the future – where votes are wasted and bankers rule from the centre.

 

A New Model needed?

 

New Model politics has to take into account the needs of a better-educated and often single-issue motivated people who need politicians that are there for them.

 

The political parties have to show themselves to be free from corruption and independent of being in politics for what they can get out of it.

 

The parties have to work together where needed and confront the problems of the past that means that each party opposes each other.

 

In the UK, this has been shown very clearly when, after a hundred years of parties being set up to oppose others, the Coalition of Tories and Liberal Democrats is set upon by many (especially a quixotic press) because they are trying to work together!

 

This is likely to be the norm. It means that coalitions will be the norm. This will be the political “new normal” to go with the new normal posited for our economic future.

 

Single-issues dominate our thinking and generate enthusiasm more than any political party in the developed world. It is only where democracy is new that parties with major and wide-ranging programmes gain real enthusiasm – which is usually dissipated quickly. Elsewhere, massive disenfranchisement is continuous and leads to a dissatisfaction with politics and politicians.

 

Parties are now the vested interests that need to change. We should see a situation where each party’s manifesto shows clearly what they would do together if that is the way it turns out – not be scared of the prospect because it may lose some votes early on. This is a big change but essential as voters’ (citizens’) needs over single issues dominate and they have no way to select a range of issues from those on offer – only a range of parties with massive ranges of policies.

 

In a world of perceived “choice”, the parties need to change to excite and enthuse or we will suffer the continued estrangement of citizens and political parties that will not result well.