Category Archives: Regulations

A Magic Wand for France?

By Anders Åslund – In the early days of his presidency, the French public is behind him; recent polling puts his approval rating at 62%. Yet goodwill can dissipate quickly, which is why Emmanuel Macron must move to capitalize on his early mandate by implementing reforms of fiscal policy, taxation, the labor market, and education, to name but a few areas where change is long overdue.

France’s most immediate problems are anemic growth and inadequate job creation. For the last 12 years, France’s GDP has increased by barely 1% a year, less than the mediocre uptick in the European Union as a whole, while unemployment currently hovers just above 10%.

Only five EU countries – Croatia, Italy, Cyprus, Spain, and Greece – have higher unemployment rates.

Part of the unemployment challenge is tied to hidden costs. France has some of the highest labor costs for hourly employees in the EU, and a natural consequence is tepid hiring. With inequality also growing, many French are rightly upset that labor is taxed much more than capital gains. Indeed, France’s payroll taxes amount to 19% of GDP – far exceeding the EU average of 13%.

Likewise, government spending, at 57% of GDP – is the highest in the EU, where the average is 47%. This burden is excessive, and significantly hinders economic growth. more> https://goo.gl/jxchXt

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What the U.S. Can Learn From India’s Government Reform Efforts

By John Kamensky – India’s government is based on the British parliamentary system with career civil servants heading about 80 departments that report to political ministers.

Day-to-day operations are in the hands of career executives with the title of Secretary to the Government of India. It’s a more centralized system and in some respects and faces greater challenges. It serves a population nearly four times the size of the United States, with greater economic disparities.

Its 29 states (and 7 Union Territories) are largely sub-units of the national government with civil servants moving back and forth.

“A 21st century government cannot deliver with 19th century institutions,” Amitabh Kant said, and to that end, the government has identified over 1,000 laws to be reduced, streamlined, or repealed. In addition, the Indian government supports over 680 autonomous bodies (e.g., AMTRAK and the Postal Service are rough equivalents in the United States) and they are reviewing each to determine if they can be devolved or eliminated. more> https://goo.gl/jzRkNN

Uber’s Problems Are Silicon Valley’s Problems

By Katy Steinmetz – The world’s most valuable venture-backed company is no doubt in crisis. And the story of Uber, in its extreme success and what may turn out to be extreme failures, is in some ways singular. But it also hits on issues in the technology industry that are far bigger than one company.

Silicon Valley has struggled for years with diversity and inclusion, as critics have wondered whether the industry can achieve its grand self-image: a bunch of brilliant minds set on making the world a better place, for whom no problem is too tough to solve, no status quo too established to upend.

Despite whistle-blowing at other companies about hostile office cultures and widespread acknowledgement that the industry needs to “do better” when it comes to hiring and retaining women and people of color, those problems have persisted.

The fact that Uber, the brightest product of the Silicon Valley ecosystem of the past several years, could become such an influential global powerhouse while seemingly neglecting its own workplace speaks to some of the reasons that broader progress, as many see it, has been slow.

The pressure for startups to grow fast — and the prospect of profits or an enriching “exit” for investors — can be blinding. Taking time to think about unsexy HR practices often feels antithetical to hard-charging disruption.

Company culture and bias can be hard things to see, much less change, especially if the people at the top believe they’re running a meritocracy. more> https://goo.gl/WwGncQ

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The crisis of expertise

BOOK REVIEW

The Death of Expertise: The Campaign Against Established Knowledge and Why It Matters, Author: Tom Nichols.
Expert Political Judgment: How Good Is It? How Can We Know? Author: Philip Tetlock.

By Tom Nichols – Experts get things wrong all the time.

The effects of such errors range from mild embarrassment to wasted time and money; in rarer cases, they can result in death, and even lead to international catastrophe. And yet experts regularly ask citizens to trust expert judgment and to have confidence not only that mistakes will be rare, but that the experts will identify those mistakes and learn from them.

Day to day, laypeople have no choice but to trust experts. We live our lives embedded in a web of social and governmental institutions meant to ensure that professionals are in fact who they say they are, and can in fact do what they say they do. Universities, accreditation organizations, licensing boards, certification authorities, state inspectors and other institutions exist to maintain those standards.

Science is learning by doing. Laypeople are uncomfortable with ambiguity, and they prefer answers rather than caveats. But science is a process, not a conclusion. Science subjects itself to constant testing by a set of careful rules under which theories can be displaced only by other theories. Laypeople cannot expect experts to never be wrong; if they were capable of such accuracy, they wouldn’t need to do research and run experiments in the first place.

Democracy cannot function when every citizen is an expert … more> https://goo.gl/NpQgga

The end of globalisation as we know it?

By Durukal Gun , Christian Keller, Sree Kochugovindan, Tomasz Wieladek – Modern globalisation has gone well beyond the trade of goods, as technology allowed for transfer of know-how and skills.

Since glottalization began in the middle of the 1800s, it has been through several different cycles. Now it appears to have reached yet another turning point.

Only recently has globalization matched the heights it reached before World War I.

  • First wave of globalization (1850s to 1914)
  • Protectionism (1914 to 1945)
  • Second wave of glottalization (1945 to 1990)
  • Hyperglobalization (1990 to present)

Among the clear beneficiaries of hyperglobalization are the emerging economies, which have become increasingly integrated into more and more complex global value chains. Their role in processing raw materials, and in value-added manufacturing and services has grown rapidly.

The first signs of opposition to hyperglobalisation emerged amid major demonstrations at the 1999 meeting of the World Trade Organization in Seattle. Concerns mounted in the wake of the 2008-09 financial crisis and subsequent global recession, reflected more recently in public resistance to trade and investment agreements such as the Transatlantic Trade and Investment Partnership and the Trans-Pacific Partnership.

Discriminatory protectionist tariffs and trade measures are on the rise. more> https://goo.gl/K54eeK

Why Wall Street Went Astray: Eight Ways To Humanize Finance

BOOK REVIEW

The Wisdom of Finance: Discovering Humanity in the World of Risk and Return, Author: Mihir Desai.

By Steve Denning – Why did Wall Street go astray?

For most of the last several centuries, bankers and financiers were the pillars of society, the bastions of morality, the people in society that everyone respected.

Yet over the last few decades, Wall Street has become almost a synonym of evil. What went wrong? What can be done to restore the financial sector to the level of respect that it once enjoyed?

For people outside finance: Finance is deeply misunderstood, and we need to make it understandable to people so that they don’t demonize it. The way to do that is not through equations or graphs, but through stories. Finance is central to our lives and ignorance of it is very costly on an individual and societal level.

For people in finance: The core ideas of finance are quite life affirming and very noble — we should make people in finance aspire to them rather than expect so little of them. If finance is going to rehabilitate itself, and I do think it’s broken in many ways, the way to rehabilitate is not through regulation, or outrage, but rather returning to its basic underlying ideas, which are actually quite wonderful. In the long run, that’s how we make finance better — by getting back to the core ideas. more> https://goo.gl/Kr4Mnj

You Can’t Solve These Problems on an Ad Hoc Basis

By Sasha Cohen O’Connell – Resolving today’s most pressing cyber security and Internet governance challenges is dependent on the tech industry and the government working together on both policy development and policy implementation.

Specifically, collaboration is required to successfully research, design, debate, and ultimately implement effective solutions.

While there is overwhelming consensus on the need for collaboration, it remains a huge challenge. Why?

While many factors contribute to the problem, including differing incentive structures, cultures and business models, one critical element—organizational structure—is a significant and often overlooked hurdle that needs attention and creative solutions.

Most collaborations today are done by ad hoc teams of operational personnel, lawyers, government affairs departments, and/or trade associations or other outside third parties. This setup is neither efficient nor effective. more> https://goo.gl/B0j8RA

Net neutrality 2.0: Perspectives on FCC regulation of internet service providers

By Stuart N. Brotman – The final outcome of this high-profile, high-impact proceeding will not be apparent until sometime late in 2017, at the earliest. Congress may also become more seriously involved at some point on the legislative front.

But without a doubt, as Chairman Pai noted in his Newseum speech, a “fierce debate” lies ahead for a number of months at least. And if past is prologue, the FCC may well receive an avalanche of comments in response to these proposed changes; the record in the Title II Order shows that over four million comments were filed by interested parties and the general public combined.

There will be no lack of political discourse, to be sure.

As we move into 2016, an unresolved national communications policy dilemma remains: whether the public-switched telephone network and the internet are parallel systems or parts of a larger ubiquitous network environment. Determining which characterization will be followed has profound consequences for regulatory treatment.

Given the emerging dominance of mobile over fixed service, if the FCC can’t regulate both, it may win the battle but lose the war. Given that a further appeal is likely regardless of which side prevails, including possible review by the U.S. Supreme Court, Congress may find itself re-emerging as the best source of guidance for the FCC. Legislative action can definitively clarify whether Congress intends for the telephone network and internet to be joined at the hip, or should continue to function in parallel with differing regulatory treatment. more> https://goo.gl/f4x8Uh

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Donald Trump’s drive for “law and order” undermines the rule of law

By Dara Lind – The Trump administration does not value the rule of law. It values law and order. It values law enforcement as a weapon to be wielded in a particular direction: against social disorder, real and feared. It respects the “front lines” of conflict to protect order, but sees less need to preserve the independence of investigators or prosecutors to choose which violations of law to pursue.

In other words, it’s embracing the brute reality of power — while obliterating one of its most important constraints.

Both “rule of law” and “law and order” are tossed around as political slogans more often than not — and often by the same people. But in practice, they represent slightly different sets of values.

The “rule of law” is a procedural value: It says that the right thing for the government to do is to set, and adhere to, proper processes in all cases, without favor or prejudice to where those processes might lead.

“Law and order,” by contrast, is a substantive value: It says something about what sorts of results the government ought to be getting out of its activity (namely, a reduction in crime and social disorder, and the assurance of a safe and loyal populace). more> https://goo.gl/B0pnlP

The American healthcare system is for profit, not patients

BOOK REVIEW

An American Sickness: How Healthcare Became Big Business and How You Can Take It Back, Author: Elisabeth Rosenthal.

By Elisabeth Rosenthal – Everyone knows the healthcare system is in disarray. We’ve grown numb to huge bills. We regard high prices as an inescapable American burden. We accept the drugmakers’ argument that they have to charge twice as much for prescriptions as in any other country because lawmakers in nations like Germany and France don’t pay them enough to recoup their research costs.

But would anyone accept that argument if we replaced the word prescriptions with cars or films?

The current market for healthcare just doesn’t deliver. It is deeply, perhaps fatally, flawed.

Imagine if you paid for an airplane ticket and then got separate and inscrutable bills from the airline, the pilot, the copilot, and the flight attendants. That’s how the healthcare market works.

In no other industry do prices for a product vary by a factor of ten depending on where it is purchased, as is the case for bills I’ve seen for echocardiograms, MRI scans, and blood tests to gauge thyroid function or vitamin D levels.

The price of a Prius at a dealership in Princeton, New Jersey, is not five times higher than what you would pay for a Prius in Hackensack and a Prius in New Jersey is not twice as expensive as one in New Mexico.

The price of that car at the very same dealer doesn’t depend on your employer, or if you’re self-employed or unemployed. Why does it matter for healthcare? more> https://goo.gl/5oBK5k