Floru 's Blog

IS IT THAT DIFFICULT TO KEEP HOSPITALS CLEAN AND TO TEACH CHILDREN TO READ ?

Pretty basic concerns of generations past seem to have been thrown out of the window and replaced with bureaucracy, box-ticking, and ill-judged priorities. What should a school do ? Teach children how to read, and numeracy. What should a hospital do ? Treat patients and make sure that they survive it, in other words : keep the hospital clean. A third of 14 year olds cannot read properly. Today's news that two Essex hospitals were found to have blood-stained floors and equipment trays, moldy machines and soiled mattresses confirms what we thought all alone: that there are a number of hospitals out there which remain firmly dirty. Back to the roots, I say. Focus on the basics and get rid of the fluff, the box-ticking and the overregulation. Comment on Facebook.

Filed 27 November 2009

I DON'T WANT A PRESIDENT - BUT VAN ROMPUY IS NOT THE WORST CHOICE

Like most Brits I do not want an EU President in the first place. But as Labour and LibDems decided we were going to have one, the choice could have been a far, far worse one. I was shocked by the derisory sneers from our media at the selection of Van Rompuy. His only flaw seems to be that he took the job.

Yes, he is a federalist. But then most continental politicians are. Yes, he calls for an EU tax. But that project has been on the agenda long before his new job was created – and only delayed because the mandarins did not want a second rejection of Lisbon by the Irish who so value their low tax regime. A die-hard cynic like me would say that our government now only has to prove that what they have been saying all along – that we remain firmly independent – is true : by blocking the proposed tax.

As I explained in a letter this week (Evening Standard 23/11/09) the choice of Van Rompuy is not that bad :

- Van Rompuy comes from the right wing of his Christian-Democrat party (that is, the entrepreneurs and the self-employed) – as opposed to the trade union wing;

- as a soundish economist he is unlikely to rant at Anglo-Saxon capitalism;

- as a Belgian Prime minister – who usually spend all their time fixing real and imagined conflicts between Walloons and Flemings, he will not throw his toys out of the pram when Cameron marches to Brussels to demand concessions. Van Rompuy is likely to listen and to fix;

- by character Van Rompuy will never be a political superstar – which is a good thing as it may prevent the pushy presidency we feared;

- he is a thoroughly moral person and to describe him as a ruthless political operator ignores that fact.

This is a person we can talk with. Let's hope that the howling in the UK over his appointment does not make an enemy of a person who by nature would not have been inclined to be one.

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Filed 26 November 2009

HOW CAPITALIST IS CHINA ?

I visited China twenty years ago, as a backpacker. I had an awful time: everything was grubby, people were rude, food was poor. But on every pavement men and women in blue mao suits were trading. Day and night. Their wares were often exhibited on not much more than a handkerchief. A few lighters. Five cabbages. There was private banking, too. Out of nowhere somebody would turn up to offer you a quick mutually beneficial illegal currency exchange in sign language. The hard currency allowed them to buy Western products. Evidence of a strong mercantile instinct was everywhere. I remember thinking that if they were ever allowed capitalism they would grow very rich, indeed.

A few weeks ago I went back: what a change. Will they overtake us economically ? Many think so. I don't. At least not with their present political system. They are missing out in one vital aspect. The People's Republic of China was a communist tyranny. Now it is just a tyranny. The growth in prosperity created by capitalism is seriously hampered by bureaucracy and bribes.

The Chinese are free to trade. The welfare state is very limited: according to the state Xinhua News Agency China plans to spend £25 billion on its safety net in 2009, that is £18 per person. In comparison, the UK spends £164 billion, or £2,645 per person. Before privatisations, state owned companies and agricultural communes often provided cradle-to-grave healthcare, education, pensions, and healthcare. Now 300 million Chinese have no health plan whatsoever, with most others having to foot substantial percentages of every medical bill themselves. Corporation tax is 25 % or less (Hong Kong 16.5 %).

Free trade. A limited welfare state. Low tax. It is a textbook formula for economic success. With one caveat : one's legal position depends upon the whim of bureaucrats. Hence massive corruption. Hence massive abuse of power. Legal uncertainty which is a huge drain upon the economic potential of that great people. In the (outside China) recently published book China Cuckoo entrepreneur Mark Kitto gives a vivid description of how the company he set up in Shanghai was stolen overnight by the local tyrants. With no independent legal recourse.

So it looks as if the Chinese and the Western systems may even each other out. Our economy is seriously hampered by the cost of the ever expanding state sector and the ever expanding welfare costs; China's economy is hampered by whims and bribes. The actual cost of both jokes and whether they actually even each other out is difficult to assess.

But there is one vital difference. Because their welfare state is limited, the Chinese get on their bikes. China has the highest labour force as percentage of the population in the world. Where we enjoy a safety hammock, most Chinese do not even have a net. And with 1.4 billion individuals, that is a lot of activity and wealth creation.

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Filed 17 November 2009

THE LADY WHO ACCUSES THE EU OF SOVIET STYLE PRACTICES SHOULD BE EU PRESIDENT

Vaira Vike-Freiberga has compared the selection process of an EU President to the secrecy of the Soviet era. Indeed, Eurology is the new Kremlinology. Many months of guesswork by the media have resulted in the naming of the Seven Dwarfs - but what Snow White will look like we do not know. The Public will of course have no say in the matter. This is now customary in the EU. Why bother with democracy if Wise Men and Mandarins do it so much better ? Ah. The D-word (disapproving glances from Eurocrats and statists) - the D-word is not to be mentioned. After all, we all know that if we'd had a democratic say, the EU would be a free trade zone and not much else. The Wise Men and Mandarins would simply not have been there.

Quick highly scientific research on Wikipedia taught me that Ms. Vike-Freiberga's family fled Latvia after the communist takeover. She was a professor at Montreal University. She was Latvian president twice, with very high approval ratings. She apparently liked to meet her constituents in person (eyebrows go up in Brussels). She is outspoken on moral values and democracy (eyebrows in Brussels go even higher, accompanied by frowning). Like every female top politician abroad since The Original she has been called The (Latvian) Iron Lady. Of her views little is said though The Daily Telegraph reports that she is seen as centre right.

So yesterday she lamented the secrecy in Brussels... That lowers the odds of her getting the job to something like one million-to-one. Even Brown may stand a greater chance. I think her utterance shows that she is perfectly qualified for the job. Personally I would of course prefer to remain a subject of Her Majesty the Queen, rather than a president. But Labour and LibDems decided otherwise.

Filed 13 November 2009

BROWN'S BRITISH DREAM : MORE ON THE DOLE

Brown has reduced the competitiveness of the UK’s labour market. This means less investment and less employment by companies in the UK.

The government’s labour flexibility measure ILMA shows rising flexibility until 2000, and stagnation after that. A key flexibility component which rose was supply of labour (immigration). Working time, pay and employment flexibility declined. The balance shows a neutral - but will go down as immigration slows. The IoD Index of Labour Flexibility shows that Denmark and Ireland are more flexible than the UK and others catch up.

Growing inflexibility stems from the deluge of UK and EU employment regulations: minimum wage; parental pay and leave, part-time and short-term workers enjoying full benefits, etc. More is coming: the Revised Working Time Directive; the Temporary Agency Workers Directive, etc. Link to IoD

Filed 24 March 2009

Copyright Floru 2007