How Economics forgot History

I used to devour critiques of the World Bank with great glee - but got fed up with the ease with which it seemed able to deflect the devastating exposes with slippery new phrases and concepts such as “transparency”, “social capital”….. Some 20 years ago Susan George subjected the Bank to a marvellous attack in Faith and Credit - comparing the Bank to the Catholic Church. It is an apt comparison – with priests and Cardinals having unshakeable beliefs in their own wisdom and the wider congregation suffering from the effects of their arrogance, myopia and abuse of power.  

A brief review of a couple of recent books on the subject directed me to some great downloads which should keep me occupied to Christmas – The Debt Crisis – from Europe to where? (2012); and the 400 page From Political Economy to Freakonomics (2009)

economics was once rich, diverse, multidimensional and pluralistic. The book details how political economy became economics through the separation of economics from other social sciences, especially economic history and sociology. It ranges over the shifting role of the historical and the social in economic theory, the shifting boundaries between the economic and the non-economic and puts the case for political economy back on the agenda. This is done by treating economics as a social science once again. It involves transcending the boundaries of the social sciences through the reintroduction and full incorporation of the social and the historical into the main corpus of political economy, by drawing on the rich traditions of the past

From this I was led to the work of Geoffrey Hodgson - a thoughtful political economist who has long been out of tune with his fellow economists as you can see in this table and longer interview 

Amazingly I was able, thanks to scribd, to download a couple of his complete books – eg the rather daunting How Economics Forgot History (2001) as well as one of Susan George’s more recent (and typically accessible) contributions - Another world is possible (2004)

The beauty of independent book publishers

Books have always been important to me – a library tends to grow wherever I put roots down for a year or so. Of course it is the content that drives my choice – but I notice that I am now giving attention to the format and aesthetics of the book itself. It was the font which started to arouse my curiousity – but then the layout, feel of the paper, design of the cover etc. American editions of books, I realise from the choices Vlad of the Frost English Bookshop in Bucharest makes, are often more attractive than the English edition – I had always appreciated their hard covers and the rough pages…..but now understand that the paperbacks are so much better.

Everyman’s library is a great hardback series - although it does belong to the Random House congomerate.

New York Review Books Classics are paperbacks which epitomise all that’s best about book aesthetics. But there are many small publishers I find myself increasingly drawn to – by virtue of the originality of their titles and production - Bitter Lemon Press, Serpent’s Tail, Pushkin Press, OneWorld, Dedalus, Hesperus, Europa Editions, Persephone Books 

A couple of years ago, the Guardian did a nice little feature on the growing importance of book design.
And bookporn is a site which gives visual expression to the sensual side of book appreciation.

Just as we need to treasure the independent bookshops which have managed to survive the onslaught of the larger bookstore chains and internet giants so do we need to recognise the value which the smaller publishers offer. So its nice to learn a bit about these companies eg Persephone. But it’s not only sad but dangerous that names like Penguin get eaten up in the capitalist onslaught (they’re now part of Random House).

Farrar, Straus and Giroux is another one which succumbed – and The New Yorker gives a nice history of the firm here. But the statistics on book publisher decline in the UK are gob-smacking - 98 fewer than last year!

I have no less than three Farrar books in the pile waiting for my attention - two collections of what look to be superb essays, one by the 1980 Literature Nobel prixe-winner Czeslaw Milosz - To begin where I am by  published in 2001. The other - Joseph Brodsky's Less than One published in 1987 - looks rather less impressive.

Also in the pile The Collected Stories of Lydia Davis (pic above) of whom I have never heard; and a stunning take on the barbarities of the last century - My Century by Aleksander Wat 

Health and .....the pursuit of happiness

An article based on a new book invites us to identify what elements of city design might make a difference to resident happiness and then seems to suggest that bike lanes and pooling are the answer. 

That does seem a bit simplistic since, patently, the basic layout of a city is a crucial factor – things like densities, patterns of movement and physical structures - let alone the frequency (and price) of facilities such as public transport, parks, bookshops, galleries, theatres, swimming pools and restaurants....Not much use -trying to cycle if you are boxed in by dual carriageways and multi-stories!!

I blog quite a lot about Sofia, the capital of Bulgaria, the structure of whose centre consists of narrow streets and tiny shops run by individuals - old and young. Walking around them (and the neighbouring parks) is a great joy - people carry their coffees or drink them on the doorstep, chatting over a cigarette to their neighbours; all key institutions are in walking distance and restaurants are cheap, healthy and tasty. People take care of the stray cats
It is a city like no other European one.
Mayor Yordanka Fandakova is doing a great job of clearing cars from the pavements and many of the streets. What a contrast with Bucharest whose power-mad Mayor Sorin Oprescu has new dual carriageways running through the city and is outdoing Attila the Hun in his (illegal) destruction of so many lovely old houses.

The article finishes with an important message -

By spending resources and designing cities in a way that values everyone's experience, we can make cities that help us all get stronger, more resilient, more connected, more active and more free. We just have to decide who our cities are for. And we have to believe that they can change.

I was once very active in the WHO Healthy Cities network which I see is still going strong.
Health….and happiness. Fundamental issues for us all. Honoured with so much rhetoric but increasingly displaced by Greed and Dishonesty…..I want to explore this disjunction in a bit more detail.
For 30 years, the WHO website tells us -

The primary goal of the WHO European Healthy Cities Network has been to put health high on the social, economic and political agenda of city governments. The Healthy Cities movement promotes comprehensive and systematic policy and planning for health and emphasizes:

• the need to address inequality in health and urban poverty

• the needs of vulnerable groups

• participatory governance

• the social, economic and environmental determinants of health.

About 90 cities are members of the WHO European Healthy Cities Network, and 30 national Healthy Cities networks across the WHO European Region have more than 1400 cities and towns as members.

Sadly, however, health and health inequalities have become much worse during this period – and I see little sign of the Healthy City literature recognising this – or exploring why this is so.

Indeed, as so often happens, a new vocabulary (expertise and bureaucracy) has taken over – that of the happiness minions of the OECD and UNDP , for example. This paper on the phenomenon of happiness research and indices is one particular (libertarian) slant on the past decade's work on happiness.

I get a bit impatient with those who tell us that happiness is about spending time with family and friends since that misses the political aspects - the nature and scale of the obstacles which those with power place on our enjoyment of public places and public goods. Equally, however, we need to be realistic about what can be achieved by political actions. Whatever, therefore, my sympathies with those who stress the importance of reducing social and economic inequalities, let us focus on the sorts of modest actions which can mobilise the support of large numbers of citizens - such as the removal of cars and cancelling of city motorways.....In that sense, I align with those who argue for more of a "nudge" approach to civic action - and also with those who argue for municipal (rather than government) initiatives.

Perceiving the Balkans

Patrick Leigh Fermor is a name to conjure with - as the wikipedia entry puts it -

At the age of 18, Leigh Fermor decided to walk the length of Europe, from the Hook of Holland to Constantinople He set off on 8 December 1933, shortly after Hitler had come to power in Germany, with a few clothes, several letters of introduction and a few books. He slept in barns and shepherds' huts, but also was invited by landed gentry and aristocracy into the country houses of Central Europe. He experienced hospitality in many monasteries along the way. Two of his later travel books, A Time of Gifts (1977) and Between the Woods and the Water (1986), were about this journey. The final part of his journey was unfinished at the time of Leigh Fermor's death, but was published as The Broken Road: Travels from Bulgaria to Mount Athos in September 2013 The book draws on Leigh Fermor's diary at the time and on an early draft he wrote in the 1960s

Neal Ascherson's review of The Broken Road in the current issue of London Review of Books puts his writing in the wider context of British writing about this part of the world -

There are fewer schlosses in this book. The explanation is that after using a good many introductions to nobility across Austria, Hungary and then Transylvania, he had entered Bulgaria. Barons with Germanic titles and estates didn’t feature in this land of peasant villages and Orthodox monasteries, which had only recently emerged from centuries ‘under the Turkish yoke’. And Leigh Fermor was now crossing formidable mountain barriers – the Balkan and Rhodope ranges – as winter approached. To survive, he had to rely on the food and shelter offered to him along the way. He is in no way condescending about his hosts. This strange, penniless English boy walking to Constantinople had nothing to offer them but his curiosity, and they were as interested by him as he was by them.
‘Paddy’s travel writing is often brilliant and moving, always humane. And yet its sheer descriptiveness, its concentration on things and people exotically “other” when contrasted to some assumed English norm, does put it in a category.’ The guide here is Vesna Goldsworthy’s Inventing Ruritania: The Imperialism of the Imagination (1998). As she shows, writing imaginative or purely fictional work about the Balkans has been an overwhelmingly British habit. Byron can be said to have set it off. But the genre reached its zenith in the late 19th century and early 20th. Anthony Hope’s Ruritania seems to be located in Germanic territory rather than further south-east, but other writers – ‘Sydney Grier’ (Hilda Gregg), Dorothea Gerard, Bram Stoker etc – floated their dreamlands far down the Danube and into the ‘bloodthirsty’ Balkans. Later, John Buchan, Lawrence Durrell, Evelyn Waugh and Malcolm Bradbury were among those who tried their hand at brutal, gaudy Balkan Ruritanias.

Weeping old houses

It seems that some Romanian architects at least have a soul. Some months back I mentioned a lovely little production on the rehabilitation of traditional Romanian houses produced by the Igloo architectural publishing house

And this month, an even better one has been produced by the Association for Rehabilitation which started its work in 2010 and identifies “weeping houses” ie those whose semi-criminal neglect has brought houses almost to the stage of collapse.

The attractively produced new book has the underwhelming title of The RePAD  Guide - and sets out - in English, French and Romanian - guidelines and examples for restoring old houses to their previous glory. Its available for only 7 euros!

Such initiatives need encouragement in the climate of hostile indifference which exists amongst the Bucharest and Romanian authorities! It contrasts with the celebration by the Bulgarians of their Bulgarian revival style which can be found in abundance in so many villages - one of which (Koprovishitse) I visited again only a few weeks back.

A case-study in political stupidity and ideology

Southern England is in the grip of strong winds and floods - and an excellent article in The Guardian reminds us of the ideological imbecility which has gripped the political class in that unfortunate country - 

Trains are being cancelled en masse while would-be travellers are instructed to follow news from that array of corporate names which still feel like some alien imposition on national life: First TransPennine, CrossCountry, First Capital Connect, c2c. Even the most efficient set-up can probably not do much about "localised flooding, fallen trees and debris on the tracks". But still: as rail travel is disrupted, thousands of people will once again seethe with fury at the operating companies' shortcomings, whether unfairly or not. Public anger, moreover, will also reflect a firmly embedded belief: that the approach of politicians to the railways is lily-livered at best; and at worst, completely barmy.
If you want a good example of the latter, consider the fate of the east coast mainline, which runs between London, the north-east and Scotland. In 2006 GNER lost its contract to run trains along the route when its Bermuda-registered parent company filed for bankruptcy. The franchise then went to National Express, which soon defaulted on its payments. So the then-Labour government created a not-for-profit public operator called Directly Operated Railways, which has run the service for the last four years with much success.Since 2009, DOR has paid £602m into public funds: over £200m more than National Express did, and £209m more than Virgin Rail – the franchise-holder for the west coast mainline – has managed during the same period. Its public subsidy is comparatively minimal – seven times less than that paid last year to Virgin. Its record on safety improvementsis jaw-dropping: "major customer accidents" are down 81% since 2009. And customer satisfaction and punctuality are at unprecedented highs.Now, of course, the government wants to re-privatise it – which is where things get truly absurd. Among the top bidders for the franchise is a consortium split between Eurostar and Keolis, both majority-owned by the French state firm SNCF. As well as Virgin, another probable contender will be Arriva, the British train company wholly owned by Deutsche Bahn, which is in turn wholly owned by the German government. As is increasingly the case across a whole range of national infrastructure – from power stations to water suppliers, via airports and bus companies – supposed free-marketeers are gleefully happy about state ownership of British assets, as long as it's somebody else's state that's doing it. In the case of the railways, moreover, you end up with the inevitable consequence of profits being skimmed off and invested in trains and tracks overseas.This is another of the insanities at the core of an economic model that George Osborne in particular wants to develop. Labour argues that the east coast mainline should stay in public hands and that DOR should be allowed to bid for other train franchises, following the same revenue-generating model as publicly owned firms from Germany, France and the Netherlands.But is that really enough? The Greens' Caroline Lucas, a rare voice of sanity, recently tabled a private member's bill outlining a simple alternative: that over time, as rail franchises expire, they should be restored to public ownership – which would cost peanuts, repatriate a fair bit of money, and commence the abolition of all the complex and costly stupidities that privatisation produced. This would at least slow those outrageous ticket price rises. And just imagine: we would also get the kind of integrated railway system to which politicians could finally apply some joined-up thinking.

And the economics correspondent of the same newspaper actually had the courage to argue that basic utilities should be returned to the public sector.

Four of the "big six" cartel, which controls 98% of electricity supply, have now increased prices by over 9% – blaming green levies and global costs – while wholesale prices have risen 1.7% in the past year and profit per "customer" has doubled.
Thousands of old people will certainly die this winter as a result of the corporate stitch-up that is called a regulated market – designed in large part by the same John Major who last week called for the introduction of a windfall tax on energy profits.
Meanwhile, David Cameron's coalition has signed a private finance initiative-style deal with one of the cartel, EDF, and two Chinese companies – all three state-owned, but by other states – to build a new nuclear reactor which will guarantee electricity prices at almost double their current level for the next 35 years.
As if all that wasn't grotesque enough, most of profitable Royal Mail has now been privatised by the supposedly dissident Vince Cable. The current loss to the "taxpayer" from selling shares below their market value is upwards of £1.3bn – more than the government's entire planned savings from benefit cuts in 2013-14. And its biggest shareholder is now the hedge fund TCI.
Within days, the Co-operative Bank had also fallen prey to US hedge funds, as Conservative ministers put out to tender the country's most successful rail service, the publicly owned east coast mainline. Never mind its reliability, value-for-money, popularity and the £208m dividend payment to the public purse. Privatisation dogma is undisturbed by evidence.
But then privatised water companies are planning to increase prices by 40% by 2020; Simon Stevens, an executive for the US private health firm UnitedHealth, now bidding for NHS contracts, has been put in charge of the NHS in England; and the security firms, G4S and Serco, are allowed to bid for a share of the probation service despite fraud investigations into existing deals.
It should be obvious that powerful interests are driving what is by any objective measure a failed 30-year experiment – but which transfers income and wealth from workforce, public and state to the corporate sector. In the case of privatised utilities, that is the extraction of shareholder value on a vast scale from a captive public.
What's needed from utilities are security of supply, operation in the public interest, long-term planning and cost effectiveness without profiteering. The existing privatised utilities have failed on all counts.
The case for public ownership of basic utilities and services – including electricity, gas, water and communications infrastructure – is overwhelming. It's also supported by a large majority of the country's voters. But it's taboo in the political mainstream.

Off the Bulgarian beaten track

There are two parts of picturesque Bulgaria which are off- the beaten track – the south-east borderland (with Greece and Turkey) and the entire stretch of the Danube in the north. A small but fascinating book on the Danube Riverside which I picked up in a Sofia store had a substantial section on the town of Svishtov (birthplace of artists Nikolae Tanev, Alexander Bozhinov and Nikolae Parvevitch)  persuaded me to take a detour for it – despite the bank of fog which was darkening the otherwise cloudless skies over norther Bulgaria. It was a worthwhile journey – through small desolated settlements and rolling hills until I reached a town which has seen much better days. In its heyday it was a bustling city which history (and shifting transport patterns) have left isolated. 

Having viewed a few of the old houses, I took the road for Russe and, a few kilometres out of Svishtov, hit an amazing sight – what appeared to be a building site was in fact the reconstruction of the old Roman camp of Novae and I was lucky enough to meet up with the Polish archaeologist who had been working the site for 35 years!
There is a nice little guide here about visiting the site which gives an excellent sense of the whole area. And I learned that this was the very site from which the Russians launched the campaign in July 1877 which brought Bulgaria independence from the Ottoamn Empire - I had earlier passed through one of the villages which houses a grand house which was the Russian HQ. Several hundred Russian soldiers lost their life here........

The subsequent drive to Russe was very beautiful - with the autumn leaves in their most glorious foleage.

Aesthetics and economics

Two sad departures – the lovely small Tabak café which occupied the back of the National Gallery building (the old Palace) and spread on to the quiet garden area leading up to the Russian Church was unceremoniously bundled out of its space a few months back. By the Minister of Culture himself apparently – for failure to pay back rent due. I loved the challenge the cafe represented to political correctness – and also the serenity of the garden section with its views of various statues.

And the large gallery space which used to offer paintings, ceramics and wine from the Katarzsyna estate in Ivan Denklogu st just down from Vitosha which also offered musical performances a couple of times each week in its downstairs basement has also disappeared – now being made over I suspect into a luxury shoe shop. 

Not good for Sofia’s European City of Culture 2019 bid! Although the pavements (the worst of any European capital) are now being repaired!!

Times have been bad for Sofia’s small galleries for the past few years – and still don’t show any sign of looking up. I talk to their owners – one of whom told me that she recoups very little of the 1,000 euros a month which her small space costs her - in rental, facilities and help. It is a labour of love – and I look forward to being amongst the participants of tonight’s event which celebrates her first year. I’ve bought three things from that particular gallery so far – and am pleased that pride of place in the exhibition which marks the first anniversary are aquarelles from a 90 year-old! And it's good to see that the older painters still alive are honoured by several of the smaller galleries.....

Sofia’s atmosphere was nicely captured for me yesterday when I was leaving another gallery (having bought the Kostadinov “lady in red” which heads the last post). A man with a painting under his arm was walking past and paused to let us examine it. “Do you like it?” he asked after he told me it was a Trichkov (a painter I have been trying to buy) and then walked off……..