The Chinese leadership’s Marcos-like numbers

Reuters’ Counterparties blog assembles Marcos-like numbers for China:

“The perception that China is ruled by wise leaders adhering to neo-Confucian ideals has been contradicted by revelations of the massive wealth accumulated by its elite: an estimated $2.7 billion by the family of Prime Minister Wen Jiabao; $376 million by the family of incoming president Xi Jinping; $89 billion by just the 70 wealthiest members of the National People’s Congress; $136 million by the family of the now ostracized Bo Xilai.”

Banking, construction and infrastructure have been the leading routes to wealth. Does anyone believe that self-enrichment on this scale is not corrupting everything the Chinese leadership says and does?

Gregory and Knox on the record with Jan Libich

In his series on Australian macro-economics, Jan Libich this time has talked to Bob Gregory and Michael Knox. Bob was on the RBA board and still interacts extensively with Australian policy land. Michael is in the private sector (RBS Morgans) and as such advises firms on the macro-economy. Both have fascinating insights into how the macro-economy works, what caused the global financial crisis, and how policy is actually arrived at. Enjoy!

Is Catholicism in rude health?

Looking at the newspapers you’d think Catholicism is having a hard time with philandering priests and cover-ups of their doings being found out on a weekly basis. Dutch and German newspapers kept track for a while of the regional frequencies of new cases of sexual misconduct allegations. You might think Catholicism is getting its long-awaited come-uppance. Nothing is further from the truth however: Catholicism is in rude health.

There are now around 1.3 billion adherents making Catholicism the largest religion on the planet and the largest branch on the tree of Christianity that appears to hold about 2.1 billion adherents. Its strongholds in Latin America and Southern Africa are looking rock-solid, and conversion rates in the new centres of Asia (China, Thailand, Vietnam, Indonesia, etc.) are looking very healthy indeed. The Christian World Database hence proudly announced Christianity was the world’s fastest growing religion in 2006 and in terms of numbers, Catholicism is by far the biggest and probably fastest growing of the Christian faiths.

What is interesting about Catholicism is that it seems to have lost its footing in its traditional stronghold, Southern and Western Europe. The area where all the popes came from, where all the old cathedrals are, where nearly all the alternative branches of Christianity originated, is now more secular than ever. Europe now has to import monks from Latin America and Africa to fill up its most prestigious and old monasteries (such as the one in Poblet, Spain). Things are so bad for Catholicism in Europe that in April 2009, the Archbishop of Vienna proclaimed that “The time of Christianity in Europe is coming to an end”. It is of course partially this retreat of the power of the Catholic church that allows all the skeletons to emerge from the cupboard. It is striking how few scandals come to the surface in places like Brazil and Nigeria compared to the almost massive ‘coming out’ currently seen in Europe.

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Will the US election boost Australian pragmatism?

US election-watching is a great spectator sport for many Australian politics-watchers. As Bob Carr says, it’s The Greatest Show On Earth. But in the actual real lives of Australians, the dull reality is that US elections generally have big direct effects on just one issue: the wars we will be asked to fight.

Romney’s likely path on foreign policy was harder than most to forecast, due to his remarkable ability to move between far-right and moderate positions. Obama, as grounded US conservatives like Bruce Bartlett have long observed, is a more known and predictable policymaker in the classic centrist tradition, a man who stacked his Cabinet with centrist Democrats and even a couple of Republicans, and who modelled his presidency in part on Teddy Roosevelt. Obama’s election probably means a reduced chance we will be asked to sign up for attacking Iran; he has long said he is against dumb wars, and a fight in Iran looks as dumb as any. But Iran apart, the practical foreign policy difference between the two men might not be that great, as Michael Fullilove has argued.

However, big political events have indirect effects as well. Obama’s re-election seems likely to be notable for its effect on the delusional wing of the US right wing media commentators, who typically predicted a Romney victory even though the data fairly transparently said something else. These pundits grew so convinced by their own rhetoric that they spent part of the campaign’s closing fortnight attacking the analysis of number-crunchers such as the New York Times’ Nate Silver, whose conventional, transparent poll-based analysis was pointing to an Obama win.

This peculiar detachment from reality that has pervaded parts of the US right in recent years – with its birtherism, war enthusiasm and Obama-is-a-Marxist talk – is comparable to what happened to parts of the left in the early 1970s. It’s a long road back from there to reality, but you have to start sometime.

The Australian right has not gone so far down this road. Alan Jones’ bizarre rants against Julia Gillard and Tony Abbott’s predictions of a carbon tax economic apocalypse have been more the exception than the rule (and Abbott’s campaign essentially copied, at higher volume, the ALP’s own slightly hysterical anti-GST campaign). But some on the right, including some in the media, have clearly been wondering whether they can turn up the hype further, whether there are any limits to how wild you can make your claims without ending up discredited.

The answer from the US this week is: Yes, there may be limits, both for politicians on the right and for the media pundits who favour them. Indeed, if you’re on the right, the US election result may cause you to wonder whether a media that always tells you you’re correct is really such a boon.

As Conor Friedersdorf put in The Atlantic:

If you’re a rank-and-file conservative, you’re probably ready to acknowledge that ideologically friendly media didn’t accurately inform you about Election 2012. Some pundits engaged in wishful thing; others feigned confidence in hopes that it would be a self-fulfilling prophecy; still others decided it was smart to keep telling right-leaning audiences what they wanted to hear.

But guess what?

You haven’t just been misinformed about the horse race. Since the very beginning of the election cycle, conservative media has been failing you. With a few exceptions, they haven’t tried to rigorously tell you the truth, or even to bring you intellectually honest opinion. What they’ve done instead helps to explain why the right failed to triumph in a very winnable election.

Both within the Coalition and within the halls of the more right-wing Australian media operations, the pragmatists have received a boost this week.

Public goods: the column

I’ve been talking about this kind of stuff for a fair while in presentations and intimated similar things in some longer pieces and a column or two on Adam Smith and Web 2.0, but I’ve not done a column on Web 2.0 as public goods privately built. But I have now.

THERE’S a revolution going on in the provision of public goods. We need to do some rethinking.

Economists define public goods around two characteristics – which are often illustrated with the classic public good – the lighthouse. There’s no way to stop passing ships benefiting from a lighthouse’s light whether or not they pay. This non-excludability creates the classic dilemma in which everyone waits to free-ride off others’ efforts so no one funds the lighthouse. Enter government, which taxes people to fund such public goods.

As well as being non-excludable, public goods are also non-rival. Consumers are rivals when they buy physical things, such as food, cars, or labour services such as taxi-driving or dentistry. One consumer can only get more of what’s on offer if others get less. By contrast, the ships consuming the lighthouse’s light aren’t rivals – light enough for one creates light enough for all.

Knowledge is a classic non-rival good.

And if non-excludability creates a free-riding problem, non-rivalrousness discloses a great free-riding opportunity. Our modern world dates from around the time these insights emerged. Thomas Jefferson effused about the free rider opportunities abounding as the knowledge economy came wheeling into view:

He who receives an idea from me, receives instruction himself without lessening mine; as he who lights his taper at mine, receives light without darkening me. That ideas should freely spread from one to another over the globe, for the moral and mutual instruction of man, and improvement of his condition, seems to have been peculiarly and benevolently designed by nature.”