what you get here

This is not a blog which opines on current events. It rather uses incidents, books (old and new), links and papers to muse about our social endeavours.
So old posts are as good as new! And lots of useful links!

The Bucegi mountains - the range I see from the front balcony of my mountain house - are almost 120 kms from Bucharest and cannot normally be seen from the capital but some extraordinary weather conditions allowed this pic to be taken from the top of the Intercontinental Hotel in late Feb 2020

Monday, December 5, 2011

Bankers as communist nomenklatura?


In a nutshell, the governments that saved the banks and financial markets from a meltdown by borrowing huge amounts of monies are now being attacked for having too much debt by the institutions they saved.
This is just one of several arresting passages in a stimulating Open Democracy article I’ve just received and which argues that the banks have, over the past decade, broken the basic rules of lending - which normally allow only 6 pounds to be created from a single pound deposit and which ensure that 13% of every deposit is kept as a bank deposit. In its place, he argues, has been created a Ponzi scheme. The article continues -
The bankers and financiers do not own banks and financial institutions. They are owned by pension funds, saving policies and endowment policy holders, and even by governments and taxpayers. Effectively, the tax-paying middle class who saves and invests owns the financial industry which is in turn under the management of the bankers and financiers, the nomenklatura of the 21st century. And, like in the Soviet style communism system, these financial apparatchiks are not accountable to anybody but only interested in short term gains and squeezing as much as possible from anyone who has any money and cannot escape: by and large middle class taxpayers
In the 10 years leading to the collapse of 2008, the financial system abandoned the fiat currency and fractional reserve banking. This was the system wereby the money, as the store of value, was underwritten by individual countries and multiplied in a controlled way. Instead, the financiers and bankers started practicing a depleting reserve banking technique: a mechanism that replaces the currency, i.e. fiat money and legal tenders in the banks' reserves (in terms of their ratio) by papers generated by the banks themselves.
The author, Greg Pytel, has an interesting looking blog which rates second in UK blogs about corporate finance and submitted in early 2009 a damning paper to a House of Commons committee with the great title The Largest Heist in History

A Chief Executive of a Bank was one of apparently only a few who took issue with the argument and their exchange can be seen here.
Need to ask someone like Paul Mason what he makes of the argument.

The picture shows a rare painting by Alexander Bozhinov which is being auctioned soon here in Sofia. He was a one of Bulgaria's great caricaturists (whose house I lived next door to recently) but this is actually a painting he did on wood in Berlin in 1927

Saturday, December 3, 2011

vegetables, books, grids and groups

The vegetable shop on the corner is the busiest shop I have ever known – although it does seem to be the older generation which uses it. Well-stocked and –frequented vegetable shops are a great feature of Sofia.
It would be interesting to know whether this healthy diet is reflected in Bulgarian health statistics…although any undoubted benefits will be swamped by the effects of smoking!
Certainly when I lived here for 18 months in 2007/2009, it made a significant (positive) difference to my cholesterol level.
So the verandah here is groaning with leeks, pears, beetroot, brocoli, gigantic parsnip, celery etc
I’m not sure if my love of reading and buying books technically qualifies me as a "bibliophile” since the dictionary defines that as "someone who loves or collects books especially as examples of fine or unusual printing or biding”. But I have always admired typface and regret that few publishers give information about the typeface used – or indeed seem to recognise that such an aesthetic consideration might actually help sell their products. I was therefore delighted to read this article which indicates that beautiful book covers are making a comeback. I also discovered that there is a website which celebrates the aesthetics of reading with the delightful name of bookporn.

Talking of books, when I looked recently at my ecological footprint, I forgot to factor in my use of Amazon books. A recent article paints a rather chilling picture of what it’s alike to work in one of their warehouses.

"Aha!" (or eureka) moments are an important but neglected part of life – when complexity and confusion momentarily clear and a strong ray of sunshine reveals a "truth”. I vividly remember that when I first read, in the 1970s, the section of Etzioni’s Social Problems which set out the stories which lay behind and sustained the individualistic, hierarchic and egalitarian perceptions and responses to social problems. The same happened in 1999 when I discovered Chris Hood's The Art of the State – rhetoric, culture and public management. This book uses Mary Douglas’grid-group theory to reduce the whole literature on admin reform to four basic schools. “Grid” denotes the degree to which our lives are circumscribed by rules – “group” indicates the extent to which we are governed by group choice. This gives a matrix of -
• Hierarchist (high on both)
• individualist (low on both)
• Egalitarian (high on group; low on grid)
• Fatalist (high on grid; low on group)

More interestingly, he then shows their typical policy responses, weaknesses and strengths. Sadly, neither the Etzioni nor Hood book is available on google – although this article by Hood demonstrates the use which can be made of the typology. The link I've given ábove for Mary Douglas is actually a very interesting piece in which she reflects on the origins of her theory - and how it developed. It's rare that one gets such an insight into a concept's origins and development from the author. Too often and too quickly concepts become reified.

I had another "aha!" moment when I found recently The case for clumsiness which, again, sets out the various stories which sustain the different positions people take us on various key policy issues – such as the environment. There is a good interview with the author here and a short summary here

Friday, December 2, 2011

Rediscovery of political economy

I have referred several times to the radical rethinking of the economics discipline and also of psychology and regretted that there was little sign of such reassessment of basic principles in the schools of management – let alone in those of public management which continue to regurgitate so many of the hoary myths of management from the surreal world of management writing.
In fact, I now realise, some people – in and around The World Bank of all places – have been engaged in some basic reappraisals of relevant literature for administrative reform efforts and producing some very readable documents. They are those associated with the World Bank’s recent Governance Reforms under real world conditions written around the central questions for my work as a consultant -
1. How do we build broad coalitions of influentials in favour of change? What do we do about powerful vested interests?
2. How do we help reformers transform indifferent, or even hostile, public opinion into support for reform objectives?
3. How do we instigate citizen demand for good governance and accountability to sustain governance reform?

I realise I keep repeating these questions (and the reference) but the questions are so rarely asked in practice let alone pursued seriously in transition countries - and the book is quite excellent. This morning, the WB drew my attention to three useful bits of training material to back up that work.
Interestingly, the displines they draw on are political economy and communications. Both are dear to my heart – the first being the neglected Scottish intellectual tradition which was (just) still alive in my university days - although this useful paper from the Asian development Bank on the subject credits the first use of the term to a 17th century Frenchman. This paper from the ODI gives examples of its use to ensure that development interventions are on a firm basis.

A new website offers an advance copy of an article on an overdue subject – corporate psychopaths and their role in the global crisis.

Thursday, December 1, 2011

Pursuing ones passions

For some time, I’ve been fascinated that my most popular post by far is the one from a year ago entitled "adversarial and consensual systems” which has been viewed almost 600 times without any prompting on my part – 130 of these in the last month.
The post actually gives an account of what I would call the "catholicism" of my approach to life (I don’t understand how this word can also have this meaning of "breadth”) - and the number of times this led me into bipartisan activity which never went down well with my immediate political colleagues.

It’s actually highly ironic that, at age 26, I was elevated by my political colleagues to the post of Secretary of the Labour group on the municipality since my commitment (in both practice and writing) to community development challenged the whole edifice of political parties. Two years later I also took the post of Chairman of the recently established Social Work authority – which allowed me to pursue an agenda of what we now call inclusiveness at both a neighbourhood and town level. I suppose they gave me my head since the energy and openness I showed reflected well on a party which had become somewhat moribund.
I used the experience to found a Local Government Unit in the nearby College where I lectured; wrote papers; and organised workshops about the new promise of corporate management and community development. Quite a recipe! And it positioned me well when a large and powerful Region was created in 1974 covering half of Scotland.
By then, my work had made me an interesting and familiar figure to the councillors who made up the controlling Labour group on the new Region – and I was again selected to act as the Secretary, one of 4 leadership positions. Elections to that position were held every two years – and I managed to hold the post until my resignation 16 or so years later. Again I was given my head on matters of social inclusion (we called it multiple deprivation then) and brought a whole new set of community- and policy-based structures into existence – as well as starting the support for social enterprise (community business as we called it).
Those were the days in which national government largely left us alone in local government – and we were left to blaze trails. Local government since then has become very boring in the UK with municipalities press-ganged to serve the latest central government wheeze.

But the power base of the empires of Education, Roads etc was never threatened by all this activity. And I was too much the loner – working with allies in officialdom, community groups etc, writing papers for national journals rather than spending the necessary time in the smoke-filled rooms with indifferent or hostile colleagues who chaired these sorts of committess and were in cahoots with their Directors. A paper on my website summarises the 16-year experience of developing and managing these policies – and the lessons I found myself drawing in the early 1990s (thanks to a fellowship the Glasgow-based Urban Studies magazing gave me in 1996)

And then, one day in late October 1990, I found myself on the North Sea on a ferry to Copenhagen, beginning a completely new life as a technocratic adviser in central europe – supposed to be helping them build up government systems. It would be nice to say that the commitments and insights of my earlier life have informed my new life of the past 20 years – but this has rarely been the case. Although the early work in central europe was with local government systems, I steadily moved to national government issues – particularly relating to the establishment of a more meritocratic civil service. All the time I was learning as mch as advising – particularly about how other European countries operated (fortunately I had developed good European networks in the 1980s). My great success was in Azerbaijan of all places – in setting up a Civil Service Agency which is still going strong.
But the last 6 years have focussed on training systems and programmes. I don’t pretend to be an expert on this subject – but my background has given me the confidence to challenge some of the sloppy thinking I encounter in this field. Recent blogposts have tried to summarise these thoughts – and I am now trying to integrate these with a paper I wrote in 2008. The results I hope to put on the website soon.

So I have been a very lucky man – free (and paid) to pursue my passions. It’s one of the reasons I feel unable to offer advice to young people. Apart from the fact that these are much more difficult times, I just happened to be in (or manoeuvre myself into) the right place at the right time.

This blog has been a useful focus in the past 2 years for my thoughts and reading. But I have probably reached the point when I need to be more disciplined. One of the blogs I admire posts only every Wednesday – and this is perhaps a format I should be thinking of.

Monday, November 28, 2011

A Citizen's Bible?

I have to confess to some ennui – like my gout, an affliction of the privileged! Perhaps the absence of the edge the white wine brought to my pallet accounts for a certain reduction in zest. More likely, I have simply run out of „projects”. A daily blog no longer supplies the focus.

In March last year I suggested that, as both mainstream economics and psychology were undergoing major challenge, it was time that the scholastic discipline of public management had this sort of overhaul The only popular book on the subject I can think of was Reinventing Government (1991) by David Osbourne and Ted Gaebler – which did not, however, attempt an overview of the topic but was rather proselytise for neo-liberalism.
Economics and psychology, of course, are subjects dear to the heart of everyone – and economists and psychologists figures of both power and ridicule. Poor old public administration and its experts are hardly in the same league! But not only does noone listen to them – the scholars are embarrassed to be caught even writing for a bureaucratic or political audience.
And yet the last two decades have seen ministries and governments everywhere embark on major upheavals of administrative and policy systems – the very stuff of public administration. But the role of the scholars has (unlike the 2 other disciplines) been simply to observe, calibrate and comment. No theory has been developed by scholars equivalent to the power of the "market”, "competitive equilibrium” or "the unconscious” – unless, that is, you count Weber’s "rational-legal bureaucracy” or Robert Michels "iron law of oligarchy”. Somehow Lindblom's "disjointed incrementalism" never caught on as a public phrase!
Those behind the marketising prescriptions of New Public Management (NPM) were not from the public admin stable – but rather from Public Choice Economics and from the OECD – and the role of PA scholars has been map its rise and apparent fall and (occasionally) to deflate its pretensions. At its best, this type of commentary and analysis is very useful – few have surpassed Chris Hood’s masterly dissection of NPM 20 years ago. This set out for the first time the basic features of (and arguments for) the disparate elements which had characterised the apparently ad-hoc series of measures seen in the previous 15 years in the UK, New Zealand and Australia – and then suggests that the underlying values of NPM (what he calls the sigma value of efficiency) are simply one of three clusters of adminstrative values – the other two being concerned with rectitude (theta value) and resilience (lamda value). Table 2 of the paper sets this out in more detail.
The trick (as with life) is to get the appropriate balance between these three. Any attempt to favour one at the expense of the others (NPM) will lead inevitably to reaction and is therefore unstable.
This emphasis on the importance of balance was the focus of a very good (but neglected) paper which Henry Mintzberg published in 2000 (which I’ve mentioned before on the blog) about the Management of Government which starts with the assertion that it was not capitalism which won in 1989 but "the balanced model” ie a system in which there was some sort of balance between the power of commerce, the state and the citizen. Patently the balance has swung too far in the intervening 20 years!
Incidentally I see from Mintzbergs (rather disappointing) website that he is working on a book on this theme with the title Rebalancing Society; radical renewal beyond Smith and Marx. Mintzberg is a very sane voice in a mad world – ás is obvious from this article on managing quietly and his ten musings on management.
Hood elaborates on these three sets of values in the book he published at the same time with Michael Jackson - Administrative Argument (sadly out of print) - when he set out 99 (conflicting) proverbs used in organisational change.
In 2007, Russell Ackoff, the US strategic management guru, published a more folksy variant of this proverbs approach – The F Laws of management a short version of which can be read here. We desperately need this sort of approach applied to the "reformitis” which has afflicted bureaucrats and politicians in the past 20 years.

One of the few claims I feel able to make with confidence about myself is that I am well-read (see the (admittedly out-of-date annotated bibliography for change agents on my website). But I know of no book written for the concerned citizen which gives a realistic sense BOTH of the forces which constrain political action AND of the possibilities of creating a more decent society.
A book is needed which –
• Is written for the general public
* is not associated with discredited political parties (which, by definition, sell their souls)
• Sets out the thinking which has dominated government practices of the past 20 years; where it has come from; and what results it has had (already well done in academia see the Pal paper on the role of the OECD)
• Gives case studies – not of the academic sort but more fire in the belly stuff which comes, for example, from the pen of Kenneth Roy in the great crusading Emag he edits and eg the tale which should be shouted from the rooftops of the collusion of so many public figures with the activities of the cowboys who run privatised companies which are trying to muscle in on (and make profit from) public services.

Perhaps I should try to produce such a book? Various authors have already put in place some of the building blocks – eg Peter du Gay ("come back bureaucracy"); Chris Pollitt (in The Essential Public Manager); some of the work on public value by Mark Moore and others; even Geoff Mulgan's Good and Bad Power (which, sadly, I found impossible to finish.

Saturday, November 26, 2011

Social Science as Sorcery


This is a period of my life when I try to sort out the sense and the nonsense from what I have absorbed from the social science literature which I first started to take seriously some 50 years ago. In those days, economics and the study of organisations were the focus of serious intellectual study – but by a tiny minority and in a highly rarified atmosphere. The 1960s was, however, when social science teaching started to expand in universities and make claims for itself which have only recently started to be questioned. A tiny minority of courageous academics did try to blow the whistle earlier - in particular Prof Stanislav Andreski in his magnificent 1972 book Social Science as Sorcery.
The Economics trade has been under increasing attack for about a decade – from behavioural economists and others – but its pretensions blown apart by the ongoing global crisis. But management thinking has, arguably, done equal damage to our societies and has escaped proper scrutiny - which is why I want to draw your attention to Chris Grey's A Very Short, Fairly Interesting and Reasonably Cheap Book about Studying Organisations which I found myself this week reading for the third time in a short period (a first for me). Although I;ve mentioned the book before, this is the first time I have tried to capture some of the more powerful points it makes.
• "imagine a world where the thing which dominated it (God; the Party) was written about in one of three ways. One was like a bible, very heavy and dorthodox. The second was amusing and readable but didn’t tell you anything you couldn’t think for yourself. The third seemed to say some things you wouldn’t think yourself and suggested flaws in the Bible but you couldn’t understand it because it was so obscurely written. Such is the literature of organisations - in which we live our lives and yet are served by only Textbooks; pop management; and unreadable scholarly books or articles".
• Writers on organisations belong to one of two schools – those who believe "there exists an observable, objective organisational reality which exists independent of organisation theory. The task of OT is to uncover this reality and discover the laws by which it operates – and perhaps then to predict if not control future events. They tend to favour quantitative research. These are the positivists. Then there is a second camp which denies this scientific view – they might be called constructivists or relativists since, for them, organisational reality is constructed by people in organisations and by organisation theory”.
• The history of organisation theory you find in textbooks generally starts with the concept of "bureaucracy” as defined by Weber and with that of "scientific management” as set out by FW Taylor - both of whom were active in a 25 year period from the late 1880s to the end of the first world war, one as a (legal) academic in Prussia, the other as an engineer and early consultant in American steel mills in Pennsylvania.
Weber was curious about the various motives there have been over history and societies for obedience. Why exactly have we accepted the authority of those with power? His answer gave us a typology of authority we still use today – "traditional", "charismatic" and what he called "rational-legal” which he saw developing in his time. A system of (fair) rules which made arbitrary (privileging) behaviour difficult. But this was an "ideal type” (ie a model) – not necessarily a precise description or prescription. Indeed studies from the mid 1950s showed just how much informal power there was in bureacracies.
Taylor worked in an industry where it was normal for workers to organise their own work; and where owners tended to be Presbyterean and workers catholic immigrants. Taylor reckoned there was a lot of slacking going on – and applied a "scientific” approach to devise standards and measures of performance (time and motion) as well as "scientific” selection of workers and a strict separation of workers and managers.
• This caused strong reactions not only amongst workers but from many owners and only survived thanks to the production needs of the First World War
• The "evacuation of meaning” from work was intensified by Fordism.
• the "human resource” approach to management which followed was not the fundamental break which the textbooks portray but rather a cleverer legitimisation of management power – as was the cultural management (and TQM) of the latter part of the 20th century.
• Although managers call the shots, their organisational fashions always fail – because of unintended effects
• Business schools do not produce better managers – but rather give the breeed legitimisation; self-confidence; a shared world-view and a common (mystifying) language

One quote perhaps captures his argument "For all the talk about new paradigms, contemporary organisation theory and management method remain remarkably unchanged from their classical roots….because the underlying philosophy of instrumental rationality and control remains firmly in the ascendant”

In the 1970s we had people like Ivan Illich and Paolo Freire exposing the emptiness of the doctrines which sustained the power of education and health systems. We now desperately need people like this to help us tear apart the arbitrary assumptions which sustain the legitimacy of the new priests of technocracy. Daniel Dorling's recent book Injustice - why social inequality persists is exceptional because he tries to identify and then challenge the belief systems which sustain our present inequities.

There are hundreds of thousands of academics receiving public money to teach and research so-called social "sciences" in universities and public institutions. The vast majority of them, whether they realise it or not, have been part of a large brain-washing exercise. A few of them only have broken ranks - not just the economists I have mentioned but those (generally American) sociologists who, for a few years, have been advocating what they call "public sociologies". Michael Burrawoy has been one of the main protagonists. Noone, however, should be under any illusions about the difficulties of making an intellectual challenge on this field of management and organisation studies in which so many brains, reputations and careers are now entrenched

Wednesday, November 23, 2011

Living without the luxuries


Monday early saw me at the Military hospital again – this time to a floor so munificent it must have been designed for the Generals and Admirals! High uric acid was confirmed and I was referred to a specialist colleague who has put me on a diet for a few weeks which excludes alcohol and meat. What a torture to be in Bulgaria and denied access to its superb wines and rakias! Particulary after rediscovering the shop which supplies Karlovo wines straight from the barrel! And ironic that the post from a year ago reproduced the text from a gravestone which celebrated someone's skills in producing drink
Reminds me of the refrain in my favourite Romanian poem – "cut out the wine!”.
The post from the 21st is also worth looking at again - it traced the writing over the past 50 years which has tried (unsuccessfully it seems) to persuade us to live a simpler and more social life
The New Yorker has a good piece of background reporting on one of the key figures behind the Occupy Wall St movement.

And a UK Think Tank has issued a report on some of the elements of the "good society” which has become an important theme in one strand of social democratic re-thinking in Europe.

It’s nice to be able to report on one celebrity figure actually helping to create a more sustainable form of housing.

Finally, it's the time of the year when Vihra of the Astry Gallery here delights us with her 30by30 annual exhibition The sketch is an Ilyia Beshkov - very appropriate!

Saturday, November 19, 2011

mainline medical experience


So many books and paintings accumulated in 7 months in Sofia - that moving flats (back to the warmer one I had 3 years ago) proved more strenuous than I had imagined. Perhaps that’s why my big toe decided to swell – and led to more contact with the medical systems here in Sofia. The local medical centre decided after only a brief conversation that this was not for them and directed me to the Military Hospital nearby. It must be one of the largest buildings in the city – only a couple of bus-stops from the new flat off Hristo Botev Bvd. A friendly receptionist and passerby had me at a doctor in a few minutes who decided I needed to see a dermatologist. It was 13.50 when I reached the relevant corridor – and became an early part of a queue which steadily built up over the next 45 minutes with no sign of life inside the door a notice on which told us that consultations started at 14.00. Eventually a couple of women arrived – and, after 10 minutes, started to take people. I was told that I needed to have a blood test and to return with the result at 14.00 next day. A note was duly written specifying the checks which were needed after which I asked about payment. I was told that the charge was 15 euros and that I would have to go the 18th floor to make the payment – if, that is, I wanted a receipt. As I didn’t, the payment was made on the spot. I have to wonder hpw many others do the same thing. It depends presumably on whether the cash is subsequently reimbursed. The doctor gave me her business card and indicated her mobile number.
The “army laboratory” was closed by the time I reached it. At 08.30 the next day, I therefore joined another queue which moved quickly and paid another 15 euros to a receptionist who duly typed up the specification. After a 5 minute wait, I was admitted to the surgery – and asked for the doctor’s name (which was clearly not on the note she had written). Any statistics will therefore show the amount of blood tests given – but will be unable to attribute the source of demand.

At 11.00 I returned, as requested, for the result; and at 14.00 presented myself at the doctor’s cabinet clutching said results. I was alone – and again no sign of life. Another friendly doctor checked and told me the doctor had left the hospital for the day - it transpired that her daughter was ill and she had forgotten about the appointment. I have to return at 08.30 Monday – although I was duly warned that the people I am dealing with are diagnosticians only and that I will need to be referred elsewhere for treatment.

This compartmentalization is what I find so difficult about the medical systems everywhere – in Scotland I had a MRI scan for my weak knees a few years back and all the guy could tell me was that I had no physical debility. No advice on other options to pursue. I have had to assume that it is arthritic. Not surprising that I have lost confidence in medics. Either they are generalists – or diagnosticians – who merely refer. Or specialists who are trained only to identify and deal with their own specialism. As the old truism has it – “if all you have is a hammer, everything looks like a nail”! Apparently we owe this saying to Maslow – of self-actualisation fame

Not much time for thinking or reading about weightier matters – but a couple of posts which seem to me to go to the essence of the Euro crisis and also here.

The Western interventions of the past 15 years have seen a lot of political and academic rationalisations and protests; and few considered analyses. A recent, short book by a couple of people with very extensive personal experience promises to right the balance. It’s “Can Intervention Work?” A New York Times article had this to say about it -
Rory Stewart castigates the international community for its irrelevant data sets, flow charts and attempts to define “best practices.” He worries that “a culture of country experts has been replaced by a culture of consultants” who travel everywhere with jargon: “Lofty abstractions such as ‘ungoverned space,’ ‘the rule of law’ and ‘the legitimate monopoly on the use of violence’ are so difficult to apply to an Afghan village that it was almost impossible to know when they were failing.” At Harvard, where he directed a human rights center, Stewart struggled to convince his congenitally optimistic American students of his stark conclusion: “The international community necessarily lacked the knowledge, the power and the legitimacy to engage with politics at a local provincial level.” If we are to intervene at all, we must do so with modest expectations and a sure sense that “less is often more” and that “we had no moral obligation to do what we could not do.” In a companion essay, Stewart’s former Harvard colleague Gerald Knaus defends the West’s intervention in Bosnia while arguing for an ethic of “principled incrementalism.” While “there is encouraging evidence that limited missions in support of peace agreements and with sufficient resources can produce a good result,” he concludes, the prospects for “nation-building under fire” are much worse
.Finally two sets of wonderful paintings - by Scottish and Russian women of more than a century ago.