The future of public service training - Part V

Imagine yourself the Director of one of the Institutes I have been talking about…. There were periods last year when you didn’t have the cash to pay your staff. You’re not sure how long you’ll have in your position since both it and that of the Institute can be (and has been) affected by political vicissitudes. The only source of money is the European Union – but the bureaucracy is onerous and time-consuming; and the benefits not as obvious as might seem at first sight. None of the cash actually reaches the Institute – most of it goes to private companies and their contracted experts. What do you do in such a situation to try to ensure that the Institute’s activities actually help improve public services and are sustainable?
Most EC consultants would advise the Director to develop a strategic plan. That is to set up a process of identifying and consulting “stakeholders” to develop over several months a new “vision” and “action plan” which would carry with it a new “commitment” from those stakeholders to “make it happen”. I don’t mean to be cynical by the insertion of inverted commas – but I do have some questions about the belief that several months of such an exercise will magically produce an answer that no-one previously thought of or produce a new spirit of cooperation. The first thing I would actually recommend is some strong brainstorming for the Director with some experienced and trustworthy people – to try to identify some realistic options whose feasibility (s)he could then explore in a variety of ways – including a strategic exercise.
And if I were one of those with whom (s)he brainstormed, I would want to explore a central question -

What is the point of having a budget-supported national training centre for public officials?

Running courses is a means - not an end. The end is surely the improvement of state bodies. But this is not achieved by a series of ad-hoc workshops run by trainers who do not communicate with one another and who have no subsequent link with the participants. Of course, despite the claims of management consultants and management gurus, noone really understands the process of improving the performance of state bodies. To some it’s a question of leadership; to others teamwork; to others again, It’s competitive and/or citizen pressures; and to many politicians it’s a matter of targets, transparency and a mix of sticks and stones.

Several things, however, are clear for me –
• each country has its own cultures and needs to find its own way in its own language
• this requires a few experienced people to blaze a trail, providing ways of thinking about issues, presenting and interpreting relevant experience
• sometimes this can be an academic – but they generally have other agendas and an inaccessible language
• A training centre is ideally placed to bring senior managers together to share their experiences, encourage one another and formulate an agenda for strategic change
• A few suitable academics could be encouraged to participate in such sessions (good for their research) and co-produce Discussion papers

Of course this doesn’t immediately bring cash – and does demand time. But it’s time well spent – in building a reputation. It’s not easy to talk about cooperation between education and training institutes (not least because the terminological distinction is not as often made in central Europe as in the UK). The academics worry about a lowering of standards – and the trainers worry about opaque verbosity. But particularly in the field of public management, the distinction is a crazy one. I am not a fan of undergraduate courses in public management – they are shallow pot-pourris; they demonstrate little of value to subsequent employees (save perhaps that those who opted for the course have little ambition); and few who graduate actually go into public service. I think those who find themselves in academic positions teaching and (hopefully) researching public management would be better located in national training institutes – particularly if those institutes had a focus on senior management. I warned in part II that some academic cows would need to be sacrificed!

Can training make a difference? Part IV

Having suggested that few new Member States in central and eastern Europe seem to have managed yet to establish a proper training system for its public officials – and that the European Commission’s type of Technical Assistance has to take part of the blame for this – the following questions seem to be in order –
• Are there any examples of a relevant and sustainable training system in the new member states?
• If so, how did they manage to achieve this position?
• What is the status of such training systems in the older member states?
• Through what process have they gone to achieve their various present positions?
• What lessons would all this suggest for those countries which are still stuck at the drip-feed stage of development?

These are actually very difficult questions to answer – since so little is available - and I have spent the morning wrestling with them. In 1997 SIGMA published a couple of relevant papers – one setting out the various choices and issues involved in setting up a modern training structure; the second giving vignettes of each of the training centres for civil servants in OECD countries. Since then, nothing.
With all the support given over the decades by the European Commission to networks of practitioners, you would have thought that someone by now (eg Christopher Demmke of EIPA) would have recognised the value of a paper on the subject. And NISPAcee is, after all, the Network of Institutes and Schools of Public Administration in central and Eastern Europe but has not undertaken such a comparative (and sensitive) analysis – although its journal does contain the odd profile. There is also the rather elusive Directors of Institutes and Schools of Public Administration (DISPA) whose latest gathering this month in Warsaw was captured on the site of the Hungarian Institute but which, equally, has never risen to the challenge of commissioning a comparative analysis. So I have to venture into this field with all my imperfect knowledge.
The situation of the central PA training institutions in the EU Member States in terms of their role, tasks, funding and other characteristics varies from one country to another. And there have been considerable changes in the legal structure of central bodies for civil service training -
• A Civil Service College in Britain (for senior civil servants) was first part of the Cabinet Office; then became the Centre for Management and Policy Studies; then the National School of Government which was a free-standing Department; was then slated for abolition in March 2011 but was instead transferred back to the Cabinet office.
• The Dutch, Finnish and Swedish Institutes have all been privatized over the past decade.
• Romania’s Institute for National Administration was moved to the Civil Service Agency a couple of years ago after a period of some tension with that body.
• The Bulgarian IPA now finds itself back with the Council of Ministers – having over the past 5 years been part of the (now abolished Ministry for Administrative Reform) and then of the Ministry of Education.
• The Hungarian structure has been subject to major changes recently - with first a university unit being merged with a national training centre and now the integration of national and local government training systems
• The Czech structure was also changed the last year. There were two institutes before: one under the Office of the Government of the Czech Republic, Department of the Institute of the State Administration and an independent Institute for Local Administration in Prague. They merged the last year and now there is only one institute under the Ministry of the Interior – Institute for Public Administration Prague.
• The Estonian IPA seems to have been absorbed into the Prime Minister’s Office

Given that most managerial theorists are a bit cynical about organizational changes, it is perhaps ironic that the training centres which are supposed to be helping state bodies become more effective have themselves been subject to so much structural change.
My recent personal experience of central european training systems is limited to 3-4 countries – otherwise I rely on anecdotal impressions from colleagues. I therefore hesitate to identify success stories. I hear good things about the Lithuanian and Slovenian systems but can say nothing about their trajectories – or the lessons they might have for others. In the next post, I will try, however, to present a "provocation" for those countries stuck at the drip-feed stage of development.
In the meantime I really would welcome comment from those readers who have experience and views in this field. I know you're there! I'm pleased to say that my readership has doubled in the past few weeks - but the blog does need (and appreciates) feedback

Evidence, dear boy? Training - Part III

I have made a lot of assertions in my two recent posts on EC-funded training – based solely on my (limited) experience in 10 countries over the past 2 decades . Before posting the final part of my commentary on EC training programmes for public officials in ex-communist countries, I wanted to check what was available on the internet about the recent experience with, and evaluation of, the EC-funded programmes for developing the effectivness (capacity) of state bodies which Structural Funds have been encouraging in these countries for the past few years. The EC, after all, treasures transparency and it is currently spending hundreds of millions (under its Structural Funds) in projects to develop the capacity of state bodies and their human resource management. In Bulgaria alone, 180 million euros was set aside for the 6 year period for the Admin Capacity theme (significantly this theme doesn't interest the Romanians who have set aside only 1% of their Structural Fund allocation for it). But there are few documents online which give any sense of what is happening. Those few demonstrate the scale of the mountain we have to scale to ensure effective spend of EC Funds. In most cases, of course, the documents are written in a foreign language (English) – for bureaucratic or academic approval – three factors which tend to knock any sense from the text! Key bureaucratic phrases such as cohesion, transparency and inclusion litter the sentences in meaningless ways. There is no experience or critical analysis behind the words – just obedient regurgitation of the required phrases. This academic paper from a Bulgarian in 2007 tries to extract the lessons of pre-accession instruments for future accession states is written clearly but simply presents global figures, organisational carts and some gossip. A 2009 German (GTZ) consultancy report on one of the instruments is more typical of the obtuse reporting style
A document prepared for a small network trying to share their experiences of using EC money for the development of admin capacity gives a useful insight into their world and issues. Finally a more critical 2011 paper from a young Bulgarian academic

Everyone – on all sides(beneficiaries, donors, consultants, academics, evaluators) – plays the same game – everything has to be fitted to the Procustean bed of EC funding. The European Policy Research Centre at the University of Strathclyde, for example, has received hundreds of millions of euros from the EC to explain, evaluate and proselytise the EC’s regional policies since they were a gleam in Bruce Millan’s eye from 1988 when, as EC Commissioner for Regional Policy, he started (under the Delors regime) the incredible expansion of the programmes whose munificence created the real attraction of EC membership for ex-communist elites. Of course it is the last organisation which would dare to blow the whistle on the dubious nature of the ventures. Take, for example, this Greek academic paper it published recently.

One longs for a young boy to shout out that the Emperor has no clothes – and dare to tell it as it is.

making training effective - Part II

Part I suggested that the billions spent by the EC on training public officials over the past decade or so in ex-communist countries have not created sustainable training systems there - ie centres for training public officials whose full-time staff contain both trainers and specialists in the field of public management – and who actually play a role in helping state bodies operate effectively. Most of the new member and Accession states have a central training Institute – but its staff are small and (in all but a few cases) administrators who bring in public officials and academics for a few hours to deliver lectures. Little "needs assessment" can be carried out (an annual schedule is negotiated between the Institute and the Council of Ministers); Ministries have a training budget and pay for the attendance of those officials it allows to attend selected courses (whether at the Institute or other centres). It is virtually impossible for such a system to carry out serious evaluation of course content and of trainers – its staff lack the specialist knowledge (and status) to question, challenge and encourage. Such a system also focuses on individual needs – and is unable to input to discussions about the development of state capacity or help state bodies tackle their organisational problems.
In the older member States, such Institutes have played an important role in setting a vision for the improvement of public services; in monitoring developments and assisting the exchange of experience. At the time, however, such bodies were being established in the ex-communist countries, the new fashion amongst western consultants was for slimline, competitive training; the academic community in the east simply had no relevant experience to offer; and governments were offloading rather than building functions. The result was underfunded training centres.
With budget cuts of the past few years, the EC Structural Funds are being increasingly used to substitute for mainline funding. Given the competitive basis of the procurement, what this means is that private companies (rather than the Institute) are being paid to act as the administrators – undermining the possibility of the national Institute developing its capacity. One other result is an endless repetition of training the trainers programmes and Manual drafting. Whatever happened to the previous trained trainers and drafted manuals?
Of course, the picture is slightly more nuanced. Some countries have Institutes on the French model – which combine undergraduate teaching with short courses and have therefore a core of academic staff. Poland is the prime example (that academic bias can, of course, bring its own problems!) And Ministries of Finance and Justice tend to have their own training centres, staffed by experts in the relevant field. But the general picture stands.

Is there a different model – in these times of crisis? Only on three conditions -
1. if the development of state capacity is taken seriously – by officials, politicians and academics
2. if there is greater clarity about the role of training in individual learning and organisational development
3. if some academic sacred cows are sacrificed

I assume all new member states have the sort of EC-funded Operational Programmes which Bulgaria and Romania have – with themes such as Administrative Capacity and Human resource management (to mention two). Hundreds of millions of euros are allocated to private consultancies to carry out projects of training and capacity building with state bodies as the clients.
In highly politicised countries such as Romania, however, building capacity is not taken seriously. As Tom Gallagher’s most recent and powerful book on the country vividly shows, there are more private agendas at work eg loyalty to the figure who put you in your position. And those academic social scientists who have resisted the temptation to go into consultancy are, understandably, more interested in achieving status with their western colleagues than in making forays into the real world of public administration. Again I speak generally – and from my knowledge more of southern than northern new member states.
As far as training is concerned, it is remarkable (given how much money is spent on it) how little discussion there is of its role and practices in new member states. Training can be effective only under certain circumstances. The very language trainers use – "training needs assessment" – begs the question of whether training is in fact the appropriate intervention. It is the easy option – it assumes that it is the lower levels who are deficient whereas the real issue may be organisational systems or the performance of higher management. I was recently in charge of a project designed to give such an institute the capacity to assist public officials at regional and local levels in the effective implementation of the complex EC Acquis (eg the various legal requirements of safety, consumer rights, equal opportunities, environment). The project was designed as a training project when, for me, the issue was totally different. I tried to develop my argument in several discussion papers but could not, for various reasons, reach the right people for a discussion. Amongst the points I was trying to make were -

• Organisations (state bodies) perform only when they are given clear (and limited) goals – and the commensurate resources and management support. This requires the systems and skills of strategic management.
• This can be developed only through senior management being properly encouraged to prioritise and draft realistic action plans – based on project management principles.
• The core mission of Institutes of Public Administration should be to encourage and help senior management acquire these skills
• But they cannot do this as long as they are trapped in an administrative role – and traditional teaching philosphies

What I remember is the anger I aroused at our final conference from a Professor of Law when I dared to say that state bodies should recognise they cannot implement the acquis in its totality (even with the few opt-outs negotiated) and should prioritise.
I will continue the argument in a future post.

Culture cornerI’m glad to say that art galleries continue to open here in Sofia. I had been disappointed earlier in the year to encounter a nearby gallery which seemed to have closed down but yesterday discovered that it had, some months ago, re-opened under new ownershop and is a charming visit. It is Gallery-Museum" CLASSICA" at 32 Venelin Str., Sofia near the football stadium at Eagle Bridge. Its old website can still be seen here with some of the paintings still on offer. Young Leta and her mother are delightful guides and hosts.

Our Gaddarene swine

This blog generally tries to steer away from crises since there are so many others in the blogosphere who have more insights than me on these – be they economic, financial or political. I try to be a distinctive voice on the things I know best – organisational change in transition countries - and otherwise try to pass on what seem to be sensible comments on ongoing events. The financial crisis, however, which has been rumbling on since late 2007 has, I feel, few real experts – in the sense of both contextual understanding and insights into what interventions would actually help put Humpty Dumpty together again. There are a lot of people, of course, who have the skills, understanding and contacts to exploit this situation for their own benefit but few (like George Soros and Nicolas Talib) able and willing to offer solutions in the interests of ordinary citizens.
Today, however, Paul de Grauwe has a useful comment on Social Europe/ which I would like to share in its entirety -

Imagine an army going to war. It has overwhelming firepower. The generals, however, announce that they actually hate the whole thing and that they will limit the shooting as much as possible. Some of the generals are so upset by the prospect of going to war that they resign from the army. The remaining generals then tell the enemy that the shooting will only be temporary, and that the army will go home as soon as possible. What is the likely outcome of this war? You guessed it. Utter defeat by the enemy.
The European Central Bank (ECB) has been behaving like the generals. When it announced its programme of government bond buying it made it known to the financial markets (the enemy) that it thoroughly dislikes it and that it will discontinue it as soon as possible. Some members of the Governing Council of the ECB resigned in disgust at the prospect of having to buy bad bonds. Like the army, the ECB has overwhelming (in fact unlimited) firepower but it made it clear that it is not prepared to use the full strength of its money-creating capacity. What is the likely outcome of such a programme? You guessed it. Defeat by the financial markets.
Financial markets knew that the ECB was not fully committed and that it would stop the programme. As a result, they knew that the stabilisation of the price of government bonds would only be temporary and that after the programme is discontinued prices would probably go down again. Few investors wanted to keep these bonds in their portfolios. As a result, government bonds continued to be sold, and the ECB was forced to buy a lot of them.
There is no sillier way to implement a bond purchase programme than the ECB way. By making it clear from the beginning that it does not trust its own programme, the ECB guaranteed its failure. By signalling that it distrusted the bonds it was buying, it also signalled to investors that they should distrust these too.
Surely once the ECB decided to buy government bonds, there was a better way to run the programme. The ECB should have announced that it was fully committed to using all its firepower to buy government bonds and that it would not allow the bond prices to drop below a given level. In doing so, it would create confidence. Investors know that the ECB has superior firepower, and when they get convinced that the ECB will not hesitate to use it, they will be holding on to their bonds. The beauty of this result is that the ECB won’t have to buy many bonds.
Why has the ECB not been willing to use this obvious and cheaper strategy?
Part of the answer has to do with the objections that have been raised against the idea that the central bank should be a lender of last resort in the government bond markets of a monetary union. Some are serious (moral hazard); others are phony (inflation risk). I discussed these in De Grauwe (2011) (see also Wyplosz 2011). My impression, however, is that these objections hide another more fundamental reason. The people sitting around the table in Frankfurt continue to believe that financial stability is not part of their core business, and, to use the words of Trichet, that there is only one needle on the Frankfurt compass and that is inflation. As long as this view prevails the ECB will be reluctant to do the obvious.
The result of this failure of the ECB to be a lender of last resort has been that a surrogate institution, the EFSF/ESM, had to be created that everybody knows will be ineffective. It has insufficient firepower and has an unworkable governance structure where each country keeps its veto power. In times of crisis it will be paralysed. As markets know this, its credibility will be weak.
To hide these shortcomings European leaders are now creating the fiction that by some clever leveraging trick the resources of the EFSF/ESM can be multiplied, allowing the ECB to retire to its Panglossian garden of inflation targeting. European leaders should know, however, that leverage creates risk, very large risks. These appear with full force when liquidity crises erupt. Thus when the leverage trick will be most needed, it will fail as it will show how risky the positions are of those who have guaranteed the leverage construction. Governments which now enjoy AAA creditworthiness will take the full blow of a 100% loss on their equity tranches and will lose their creditworthiness in one blow. The whole risky construction will collapse like other clever financial constructions of the recent past.
Academics have the reputation of living in an ivory tower far away from the realities of the world. My impression is that instead of the academics, it is the European leaders who have been living in an ivory tower. Disconnected from the economic and financial realities, they have created an institution that does not work and will never do so properly. Now they are creating a financial gimmick that, in their fantasies, they expect to solve the funding problems of major Eurozone countries. It is time for the European leaders to step back into the real world.

Craig Murray also has a brief and very succinct comment on the issue as does Der Spiegel in its article Politics stupid And I recommend the daily press summaries from Open Europe as the best there are at the moment on this issue.

Is training a waste of money? Part One

Christmas may still be 2 months away but one reputable blog has come with the sort of quiz we play at that time of the year - asking people “which book provides support, or is a book to which one often returns. And the answer cannot be the Bible”. As the participants in the subsequent discussion thread recognise, it’s not an easy question to answer. Most of our reading is novels and specialist stuff. There are, of course, classic novels (both old and new) to which we can and do return but several of the discussants say that it is poetry to which they go back – I would tend to agree. I often turn to TS Eliot, Bert Brecht, WS Graham and Norman MacCaig (sadly BBc doesn't allow me access this last), for example. What about my readers?

My subject today is training of public officials in ex-communist countries.
The European Union has spent many hundreds – if not thousands - of millions of euros on training of public servants in the accession states; in Eastern Europe and central Asia (and continues to do so in the Operational Programmes of its Structural Funds with which I am currently involved here in Bulgaria). Despite the European Commission emphasis on evaluation, I am not aware of any critical evaluation it has commissioned of that spending – nor of any guidelines it has issued to try to encourage good practice in this field of training public officials (It has issued, in recent years, guidelines on “good governance”, internal project monitoring, project cycle management, institutional assessment and capacity development, ex-ante evaluation). And, in particular, there is nothing available for those in transition countries who want to go beyond the task of managing one specific programme of training and actually build a system of training which has the key features of –
• Continuity
• Commitment to learning and improvement

A transition country is lucky if its officials and state bodies actually benefit from a training programme – with training needs being properly assessed; relevant and inspiring courses constructed; and delivered (by skilled trainers) in workshops which engage its participants and encourage them to do things differently in their workplace. Too often, many of these ingredients are missing. But, even if they are present, the programme is usually an ad-hoc one which fails to assist the wider system. The trainers disappear – often to the private sector; their training materials with them. No improvement takes place in the wider system of training public officials.

For 20 years now I have led public administration reform projects in a variety of “transition” countries in central Europe and central Asia – in which training and training the trainer activities have always been important elements. Initially I did what most western consultants tend to do – shared our “good practice” from western europe. But slowly – and mainly because I was no longer living in western Europe – I began to see how little impact all of this work was having. I summarised my assessment recently in the following way-
• Most workshops are held without sufficient preparation or follow-up. Workshops without these features are not worth holding.
• Training is too ad-hoc – and not properly related to the performance of the individual (through the development of core competences) or of the organisation
• Training, indeed, is often a cop-out – reflecting a failure to think properly about organisational failings and needs. Training should never stand alone – but always be part of a coherent package of development – whether individual or organisational.
• It is critical that any training intervention is based on “learning outcomes” developed in a proper dialogue between the 4 separate groups involved in any training system – the organisational leader, the training supplier, the trainer and the trainee. Too often it is the training supplier who sets the agenda.
• Too many programmes operate on the supply side – by running training of trainer courses, developing manuals and running courses. Standards will rise and training make a contribution to administrative capacity only if there is a stronger demand for more relevant training which makes a measurable impact on individual and organisational performance.
• In the first instance, this will require Human Resource Directors to be more demanding of training managers – to insist on better designed courses and materials; on proper evaluation of courses and trainers; and on the use of better trainers. More realistic guidelines and manuals need to be available for them
• Workshops should not really be used if the purpose is simply knowledge transfer. The very term “workshop” indicates that exercises should be used to ensure that the participant is challenged in his/her thinking. This helps deepen self-awareness and is generally the approach used to develop managerial skills and to create champions of change.
• Workshops have costs – both direct (trainers and materials) and indirect (staff time). There are a range of other learning tools available to help staff understand new legal obligations.
• HR Directors need to help ensure that senior management of state bodies looks properly at the impact of new legislation on systems, procedures, tasks and skills. Too many people seem to think that better implementation and compliance will be achieved simply by telling local officials what that new legislation says.
• A subject specialist is not a trainer. Too few of the people who deliver courses actually think about what the people in front of them actually already know.
• The training materials, standards and systems developed by previous projects are hard to find. Those trained as trainers – and companies bidding for projects – treat them, understandably as precious assets in the competitive environment in which they operate and are not keen to share them!

And this last point perhaps identifies one of the reasons why transition countries have found it so difficult to establish public training systems to match those in the older member states. From the beginning they were encouraged to base their systems on the competitive principle which older member states were beginning to adopt. Note the verb - "were beginning". And, of course, there is no greater zealot than a recent convert. So experts who had themselves learned and worked in systems subsidised by the state appeared in the east to preach the new magic of competition. And states with little money for even basic services were only too pleased to buy into that principle. The result is a black hole into which EU money has disappeared.
I will, in the next post, try to set out some principles for capacity development of public training systems in transition countries.
The photograph is of me at the communal table of Rozinski Monastery here in Bulgaria - taken a couple of year ago by my friend and colleague Daryoush Farsimadan, I think there is something appropriate there....

Downside of Sofia Charms?

I’ve talked several times on the blog about the charm of central Sofia – with its parks and buskers with their retro music; narrow streets, small shops and atmosphere, the owners on the doorstep with a coffe and cigarette talking with friends. Of course the downside of such charm is that those who run the tiny vegetable, dressmakers, tricotage (thread) shops and various types of galleries barely make a living. How many of them are rented, I wonder, and therefore vulnerable to landlord rental hikes and commercial redevelopment? And I wonder how many of those who engage in this sort of soulless redevelopment realise what they are destroying. Is there nothing which can counter this Mammon? Do the city authorities realise what an asset they have? If so, are they doing anything about it? The lady mayor is certainly a huge improvement on her predecessor who, I was told yesterday, used to charge significant sums for those who wanted an audience with him to discuss their problems.

In the Yavorov District on Tuesday – a leafy and lively area near the University and just across from the great park which extends from the Eagle bridge and the football stadium for more than a kilometre east along the Express way which starts the run to the Thracian Valley, Plovdiv and Burgas. Looked at an elegant old flat which had housed the middle managers of the railways in the 30s in an area otherwise known as a residential one for the military at the beginning of the last century. And ventured into a small basement antique shop which was a real alladin’s cave of old Bulgarian and Russian stuff. The prize haul was a set of the small, shaped bottles in which rakia used to be drunk.

They seem to be 1950s or early 1960s – with wry humour stamped on to the glass. I haven’t discussed rakia yet in the blog (apart from the blog about the recent visit to Teteven). First time I tasted rakia in 2002, when I sped through the country on the way to the Turkish Aegean, I found it inspid. But I have now had a chance to taste various brands – and compare it with various Romanian palinka – and have become an afficiando. Here is a write up of one brand which won a few years back a silver medal in the International Review of Spirits Award -

Golden salmon colour. Vanilla and toasted nut aromas. nice oily texture. Dryish, vanilla bean oily nut flavors. Finishes with a lightly sweet powdered sugar and pepper fade. A nice texture and finish but could use more on the mid-palate

Finally – a great blogposts about traditional sheep farming by someone who spent a couple of months with the shepherds and cheese makers in the Carpathians.

The power of images

George Monbiot’s post in yesterday’s Guardian gave me some good links to papers trying to encourage a debate which is long overdue -

We think we know who the enemies are: banks, big business, lobbyists, the politicians who exist to appease them. But somehow the sector which stitches this system of hypercapitalism together gets overlooked. That seems strange when you consider how pervasive it is. It is everywhere, yet we see without seeing, without understanding the role that it plays in our lives. I am talking about the advertising industry. For obvious reasons, it is seldom confronted by either the newspapers or the broadcasters. The problem was laid out by Rory Sutherland when president of the Institute of Practitioners in Advertising. Marketing, he argued, is either ineffectual or it "raises enormous ethical questions every day". With admirable if disturbing candour he concluded that "I would rather be thought of as evil than useless." A new report by the Public Interest Research Centre and WWF opens up the discussion he appears to invite. Think of Me as Evil? asks the ethical questions that most of the media ignore – and adopts a rigorous approach, seeking out evidence. Our social identity is shaped, it argues, by values which psychologists label as either extrinsic or intrinsic. People with a strong set of intrinsic values place most weight on their relationships with family, friends and community. They have a sense of self-acceptance and a concern for other people and the environment. People with largely extrinsic values are driven by a desire for status, wealth and power over others. They tend to be image-conscious, to have a strong desire to conform to social norms and to possess less concern for other people or the planet. They are also more likely to suffer from anxiety and depression and to report low levels of satisfaction with their lives.
We are not born with our values: they are embedded and normalised by the messages we receive from our social environment. Most advertising appeals to and reinforces extrinsic values. It doesn't matter what the product is: by celebrating image, beauty, wealth, power and status, it helps create an environment that shifts our value system.

A pamphlet from the Compass Think Tank also picks up the issues. Less measured in its tone than the PIRC publication, it argues that advances in psychology. neurology and technology have given advertising insidious new powers; points to the interventions which governments have been making since the 1960s in relation to tobacco, protection of children etc and makes a series of recommendations – including the banning of advertising in public spaces, a measure introduced recently with great success apparently in the mega-city of Sao Paulo (20 million population).

Advertising may, as Monbiot suggests, have succeeded in the past few years in keeping its head down but there was a time when it was under attack. In my youth, I remember the impact of Vance Packard’s The Hidden Persuaders (1956 or so) and, a few years later, Jk Galbraith’s powerful dissection (in his 1967 book The New Industrial State) of the reality of the market and the way large companies shaped demand. Of course, the downfall of large companies a couple of decades later by the more flexible Apple and Microsoft companies was widely used to discredit Galbraith’s thesis. A more measured assessment of his arguments about corporate power (and indeed contribution to economics) appeared in the Australian Review which said -

Two rejoinders are in order. First, the qualitative evolution of economic systems highlights that grand generalisations are necessarily period-specific. The character of the automobile market after the mid-1970s may be instructive, but it does not vitiate generalisations on its character before the mid-1970s.
Second, Galbraith’s generalisations regarding the unbridled power of the corporate sector retain direct relevance to other segments of the corporate sector—the military-industrial ‘complex’ (including constructors), big oil (centred on Exxon Mobil), the medical-insurance complex, big chemical, big tobacco, big retail (Wal-Mart) and big finance. It is curious that Galbraith’s critics have not sought to juxtapose Galbraith’s focus with current developments that involve corporate actors writing the legislation that governs their sector (medical-insurance), heading off legislation or penalties that adversely effect their sector (oil, chemical, tobacco, etc.), or channeling foreign policy with heinous implications (weapons contractors and constructors).
On the related issue of consumers as pawns, it is true that American consumers belatedly exercised autonomy in electing to buy the automobiles of foreign manufacturers (albeit a sub-sector of the market remains subservient to the US auto giants’ emphasis on sports utility vehicles and the preposterous Hummer). Galbraith rightly asked the rationale for the then vast sums spent by producers on marketing (a question never satisfactorily addressed by mainstream economists)

Most people, however, want to see the world’s economies refloated and jobs returning. Whatever their gripes about advertising, they see it as a means of aiding that objective. Those who see the huge waste and social destruction of our present system have an upward struggle. I was pleased to see people like Fritjof Capra and and Hazel Henderson taking the argument into the enemy camp with a pamphlet published in 2009 by the Institute of Chartered Accountants of England and Wales – entitled Qualitative Growth. I wouldn’t say it is the most convincing paper for such an audience – and am sorry that its references didn’t give wider sources eg Douthwaite.
The problems of the economic system we have can be best be summed up in two words - dissatisfaction and waste. Advertising creates the first - and the economic machine wastes people, resources and the planet. And yet its ideologues have erected a propoganda machine which tells us that it is both efficient and effective! What incredible irony!

Last evening was spent very pleasantly at one of Astry Gallery’s great vernissajs, celebrating the opening of yet another exhibition. This time the work of Natasha Atanassova and Nikolay Tiholov. Natasha is on the left and Vihra, the gallery impressario, on the right. And the painting at the top of the post is one of two I bought - this one by Natasha. The second is by Nikolay and is here -

Astry Gallery (under Vihra's tutelage) is unique for me amongst the Sofia galleries in encouraging contemporary Bulgarian painting. Two things are unique - first the frequency of the special exhibitions; but mainly that Vihra follows her passion (not fashion). I am not an art professional - but Vihra has a real art of creating an atmosphere in which people like me can explore. I have been to a couple of other exhibition openings here and they were, sadly, full of what I call "pseuds" - people who talked loudly (mostly Embassy people) and had little interest in the paintings (except perhaps their investment value). Vihra and her Astry Gallery attract real people who share her pasion and curiousity. It is always a joy to pop in there - and talk to her, visitors, artists, other collectors and her father.