Category Archives: Economic development

In extremis

By Nabeelah Jaffer – to understand what has led someone to extremism it is not enough to point to ideology. Ideas alone did not bring Mair to leave his home that morning with a sawn-off shotgun and a seven-inch knife. The accounts that emerged in the weeks after Cox’s murder dwelt on many details of Mair’s previously blameless life.

‘Loneliness is the common ground of terror’ – and not just the terror of totalitarian governments, of which Hannah Arendt was thinking when she wrote those words in The Origins of Totalitarianism. It also generates the sort of psychic terror that can creep up on a perfectly ordinary individual, cloaking everything in a mist of urgent fear and uncertainty.

Totalitarian ideas offer a ‘total explanation’ – a single idea is sufficient to explain everything. Independent thought is rendered irrelevant in the act of joining up to their black-and-white worldview.

Becoming an ‘idealist’ assuaged these fears (the word is perhaps better read as ‘ideologue’). After all, if you sign up to the idea that class struggle, racial competition or civilizational conflict is absolute, then you can achieve meaning and kinship as part of a race, class or civilization without ever requiring two-sided thought – the kind of thought that involves weighing competing imperatives and empathizing with a range of people. more>

Updates from Boeing

The Future is Built Here – Farnborough Airshow 2018
Boeing – The future is here at the Farnborough International Airshow, the industry’s largest air show and aerospace technology exhibition in 2018. Thousands of commercial and defense aerospace professionals will come together July 16-22 at this renowned venue outside London.

The Farnborough Airshow is legendary for its inspiring air display lineup and for showcasing new aerospace technologies. more>

Updates from Chicago Booth

By John Wasik – Finland sits at the top of the United Nations’ 2018 World Happiness Report, which ranked more than 150 countries by their happiness level. The country that gave the world the mobile game Angry Birds scored high on all six variables that the report deems pillars of happiness: income, healthy life expectancy, social support, freedom, trust, and generosity. News reports touted Finland’s stability, its free health care and higher education, and even the saunas and metal bands for which it’s famous.

Yet abundance does not equate to happiness, according to research—even on a longer time frame. In most developed countries, the average person is rich by the standards of a century ago. Millions more people have access to safe food, clean drinking water, and in most cases state-funded health care.

And in countries with a growing middle class, millions more are now finding themselves able to purchase big-screen televisions, smart phones, and cars.

But this growth in wealth hasn’t made people happier.

People gain more happiness when they satisfy their inherent rather than learned preferences—needs rather than wants. more>

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Updates from Siemens

Product Realization for Aerospace and Defense
Siemens – Aerospace companies need to win business in an environment that is increasingly competitive, both locally and globally. This requires proving your ability to meet target dates and costs in production while delivering products that meet customer requirements.

Increasing demand in some sectors, such as commercial aircraft, drives a requirement for higher levels of productivity. You have to take advantage of new materials and processes to build the most competitive products.

Efficient manufacturing within budget and schedule targets is an operational imperative for successful aerospace and defense companies. “Program Execution Excellence” is the Siemens PLM Software perspective on how leading aerospace and defense companies can effectively deliver consistent execution with customers and their suppliers during product realization. more>

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Guidelines to Achieve Digital Transformation

GSR-18 BEST PRACTICE GUIDELINES ON NEW REGULATORY FRONTIERS TO ACHIEVE DIGITAL TRANSFORMATION
itu.int – Digitization is increasingly and fundamentally changing societies and economies and disrupting many sectors in what has been termed the 4th Industrial Revolution. Meanwhile, ICT regulation has evolved globally over the past ten years and has experienced steady transformation.

As regulators, we need to keep pace with advances in technology, address the new regulatory frontiers and create the foundation upon which digital transformation can achieve its full potential. Being prepared for digital transformation and emerging technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Machine to Machine communications (M2M) and 5G is fundamental.

Advances in technology are creating new social phenomena and business models that impact every aspect of our personal and professional lives – and which challenge regulatory paradigms. M2M, cloud computing, 5G, AI and IoT are all bringing further profound change. Recognizing the potential of emerging technologies and the impact that policy and regulatory frameworks can have on their success, regulators should encourage a regulatory paradigm pushing frontiers and enabling the digital transformation. more> draft doc (pdf)

Towards The Disappearance Of Politics?

BOOK REVIEW

The Human Condition, Author: Hannah Arendt.

By Valerio Alfonso Bruno – Today, erosion of the public sphere is once more a harsh reality, as is particularly evident in the current weakness of “Western Democracies.”

The substantial risk of leaving democratic institutions only formally alive, but significantly lacking any content, is encouraging a deep reflexion on the reasons behind this erosion of the space for public debate and active political action.

However, some frequent arguments are employed by different people (belonging to political parties, policy-makers, academia, analysts, media) to justify the impossibility of developing a comprehensive political debate within contemporary democracies. At least four main orders of arguments can be identified that are used to justify the shrinking of the Vita Activa:

  1. technical complexity,
  2. global issues,
  3. trivialization of politics and
  4. ideological taboo.

Open, pluralistic, debate within democratic societies is unfortunately the first victim of the current political environment, as seen recently in the US and Italy.

The limitation of the public debate by reason of technical complexity and growingly global issues, or trivial generalization and ideological taboos, is dangerously forcing democracies’ citizens into political passivity, narrowing de facto the window of alternatives to an extreme degree, and resulting is an increased polarization. more>

How Japan could soon offer lessons for the Fourth Industrial Revolution

By Murat Sönmez – Leveraging fast-emerging technologies like self-driving cars, artificial intelligence and data-intensive precision medicine to address social challenges is a goal that many countries share. The most successful will have at least two things in common: a strong sense of mission across government, industry and civil society; and the right mix of intellectual and industrial assets to apply to the task.

Japan, I’m convinced, possesses both in abundance.

In recent months, I have worked closely with Japanese government, business and civil society leaders to establish the World Economic Forum Centre for the Fourth Industrial Revolution Japan — the first Centre in the Forum’s new global network to be established outside the United States.

Supported by the Japanese government and businesses, Centre for the Fourth Industrial Revolution Japan will co-design pilot projects to speed up Japan’s response to technological change. The goal is two-fold: First, to help Japan make the most of technology as it confronts critical issues like an aging and shrinking population — part of an ambitious program of social transformation that Japanese leaders are calling Society 5.0.

And second, to create new governance models for other countries to follow. more>

The Globalization Backlash: It’s Both Culture and the Economy, Stupid

BOOK REVIEW

Euroscepticism and the Future of European Integration, Author: Catherine De Vries.
Globalization represents a “trilemma” for societies, Author: Dani Rodrik.

By Catherine De Vries – While many thought the process of greater cross-border cooperation to be irreversible, in part because it was expected to lead to a universal acceptance of liberal and capitalist values, isolationism, nationalism and protectionism are back on the political scene with a vengeance.

While Donald Trump’s slogan to “Make America Great Again” is at the heart of his campaign and current administration, Nigel Farage’s mantra of taking back control (“we will win this war and take our country back”) dominated the Brexit campaign.

A fierce debate has developed about the origins of these developments. Are they the result of economic grievances of those who feel threatened by globalization (a term for increasing international cooperation and increasing interdependence), or do current developments represent a cultural backlash based on immigration fears and prejudice.

Opposition to globalization is gaining such a foothold in the political and public domain in advanced industrial democracies, precisely because processes of economic interdependence have coincided with increasing migration flows.

Although current societal and academic debates are mostly framed in either economic or cultural terms, it is important to realize that these types of explanations are not mutually exclusive. We should focus more of our efforts on trying to understand how cultural and economic fears interact and fuel the recent popular backlash against globalization. more>

The Overlapping Crises Of Democracy, Globalization And Global Governance

BOOK REVIEW

Gridlock: Why Global Cooperation is Failing when We Need It Most, Authors: Thomas Hale, David Held, Kevin Young.

By David Held – The crisis of contemporary democracy has become a major subject of political commentary. But the symptoms of this crisis, the vote for Brexit and Trump, among other things, were not foreseen. Nor were the underlying causes of this new constellation of politics.

The virtuous circle between deepening interdependence and expanding global governance could not last because it set in motion trends that ultimately undermined its effectiveness.

Why?

There are four reasons for this or four pathways to gridlock: rising multipolarity, harder problems, institutional inertia, and institutional fragmentation. Each pathway can be thought of as a growing trend that embodies a specific mix of causal mechanisms.

To manage the global economy, reign in global finance, or confront other global challenges, we must cooperate. But many of our tools for global policy making are breaking down or prove inadequate – chiefly, state-to-state negotiations over treaties and international institutions – at a time when our fates are acutely interwoven.

The result is a dangerous drift in global politics punctuated by surges of violence and the desperate movement of peoples looking for stability and security. more>

Against metrics: how measuring performance by numbers backfires

BOOK REVIEW

The Tyranny of Metrics, Author: Jerry Z Muller.

By Jerry Z Muller – More and more companies, government agencies, educational institutions and philanthropic organisations are today in the grip of a new phenomenon. I’ve termed it ‘metric fixation’.

The key components of metric fixation are the belief that it is possible – and desirable – to replace professional judgment (acquired through personal experience and talent) with numerical indicators of comparative performance based upon standardized data (metrics); and that the best way to motivate people within these organizations is by attaching rewards and penalties to their measured performance.

The rewards can be monetary, in the form of pay for performance, say, or reputational, in the form of college rankings, hospital ratings, surgical report cards and so on. But the most dramatic negative effect of metric fixation is its propensity to incentivize gaming: that is, encouraging professionals to maximize the metrics in ways that are at odds with the larger purpose of the organization. more>