Quotulatiousness

February 5, 2013

Japan lodges formal protest after Chinese ship targets Japanese ship near Senkaku/Diaoyu islands

Filed under: China, Japan, Military — Tags: , , — Nicholas @ 09:13

The BBC has the details:

“On 30 January, something like fire-control radar was directed at a Japan Self-Defence Maritime escort ship in the East China Sea,” Mr Onodera told reporters on Tuesday.

The minister said Japan’s Yuudachi vessel and the Chinese frigate were about 3km (one mile) [ed: conversion error here, 3km is about 2 miles] apart at the time, Japan’s Kyodo News reports.

Asked about the delay in filing the protest, Mr Onodera said it took the ministry until Tuesday to determine that a fire-control radar had indeed locked on the Japanese ship.

He added that a Japanese military helicopter was also targeted with a similar type of radar by another Chinese frigate on 19 January.

“Directing such radar is very abnormal. We recognise it would create a very dangerous situation if a single misstep occurred,” he said.

Senkaku/Diaoyu Islands

I was getting hungry after reading the first two paragraphs…

Filed under: Asia, Food, History, India — Tags: — Nicholas @ 00:01

What is curry and where did it come from?

What is curry? Today, the word describes a bewildering number of spicy vegetable and meat stews from places as far-flung as the Indian subcontinent, the South Pacific, and the Caribbean Islands. There is little agreement about what actually constitutes a curry. And, until recently, how and when curry first appeared was a culinary mystery as well.

The term likely derives from kari, the word for sauce in Tamil, a South-Indian language. Perplexed by that region’s wide variety of savory dishes, 17th-century British traders lumped them all under the term curry. A curry, as the Brits defined it, might be a mélange of onion, ginger, turmeric, garlic, pepper, chilies, coriander, cumin, and other spices cooked with shellfish, meat, or vegetables.

Those curries, like the curries we know today, were the byproduct of more than a millennium of trade between the Indian subcontinent and other parts of Asia, which provided new ingredients to spice up traditional Indian stews. After the year 1000, Muslims brought their own cooking traditions from the west, including heavy use of meat, while Indian traders carried home new and exotic spices like cloves from Southeast Asia. And when the Portuguese built up their trading centers on the west coast of India in the 16th century, they threw chilies from the New World into the pot. (Your spicy vindaloo may sound like Hindi, but actually the word derives from the Portuguese terms for its original central ingredients: wine and garlic.)

But the original curry predates Europeans’ presence in India by about 4,000 years. Villagers living at the height of the Indus civilization used three key curry ingredients — ginger, garlic, and turmeric — in their cooking. This proto-curry, in fact, was eaten long before Arab, Chinese, Indian, and European traders plied the oceans in the past thousand years.

February 4, 2013

Argentina’s real inflation rate is a state secret

Filed under: Americas, Economics, Government, Media — Tags: , , , , — Nicholas @ 13:19

Argentina has lots of issues, but one of the biggest problems is that their official statistics fall somewhere along the spectrum between “a bout of wishful thinking” and “a tissue of lies”:

Argentina, the only country in the world that threatens private economists with jail terms for disputing the government’s obviously bogus inflation numbers, is now the only country in the world to be censured by the IMF for unacceptably bad economic statistics. In a rare move by the 24 member board of the world’s most prestigious financial institution, Argentina’s government was censured for failing to improve the quality of the numbers it uses to calculate things like GDP and, especially, the inflation rate.

The current president’s husband fired the professional economists in the statistical office in 2007. Ever since, the patent bogosity of Argentina’s statistics has undermined the government’s credibility at home and abroad. Inflation is a deadly sensitive subject in Argentina, where past bouts of hyperinflation have wiped out the savings of whole generations. Currently the government claims inflation is no higher than 11 percent; when the thought police aren’t watching them, private economists whisper that the real rate is more than 25.

This isn’t a new story: The Economist stopped using the official figures in their weekly economic summaries about a year ago. Argentina’s economic policies have become a valuable primer on “what not to do” for other countries. Argentina could be a South American version of Canada, but the political class ensures that will not happen.

CBS Sports fumbles during SuperBowl blackout

Filed under: Football, Media — Tags: , , , , , — Nicholas @ 10:23

In the New York Daily News, Bob Raissman asks why CBS didn’t bother to do any actual “journalism” about the blackout:

The fans inside the Superdome were not the only ones left in the dark when half the building’s power went out in the third quarter of Super Bowl XLVII Sunday night. Viewers were left with unanswered questions as CBS Sports’ sideline reporters, and the rest of the cast, failed to go into a reporting mode.

There was no outrage, no questioning how a thing like this could happen on the NFL’s biggest night of the year.

At a time when they should have been aggressively gathering news, CBS’ crew was satisfied with the crumbs the NFL dropped on them. And they swallowed the scraps gladly. Not once during the 34-minute delay did a representative of the National Football League appear on camera to attempt to explain what caused half the Superdome to lose power. Why should they? No one from CBS put any pressure on them.

[. . .]

Think about it. CBS pays billions for the right to air NFL games. Much of that dough is shelled out to secure rights to the Super Bowl. So, on the big night, there is a major screwup and the NFL won’t put someone on the air — and CBS won’t push the league — to try to explain what’s going on? That’s mind-boggling.

But not quite as wacked as CBS’ laid-back approach to reporting this story, which will go down as one of the more unusual moments in Super Bowl history. All the players were on the field, waiting, stretching. Why not take a camera and microphone on the sidelines for an interview? If they blow you off, fine — at least viewers would have something worth watching.

A legal spectre is haunting the NFL

Filed under: Football, Health, Law, Media, USA — Tags: , , , , — Nicholas @ 10:12

In the wake of a vastly entertaining SuperBowl contest between the “San Francisco 50-1’ers”* and the “Baltimore Black Birds”*, Steve Chapman outlines the possibility that we won’t see too many more SuperBowl games:

Professional football is the most popular spectator sport in America, which is one reason yesterday’s Super Bowl was expected to draw 110 million viewers. With its famous athletes, storied franchises, and lucrative TV contracts, it’s an industry whose future appears limitless.

But football has a problem: the specter of mass brain damage among current and former players. So far, the steady trickle of disturbing revelations has had no apparent effect on ticket sales or TV ratings. What it has done, though, is more ominous: It has invited lawsuits.

If football falls into decline, it may not be the result of fans turning away, athletes avoiding it, or parents forbidding it. It may be from lawyers representing players who sustained chronic traumatic encephalopathy and expect to be compensated for the damage.

[. . .]

Walter Olson, a Cato Institute fellow, blogger (Overlawyered.com), and author of several books on liability, knows well how a tide of litigation can transform a landscape. And he has a bold prediction: “If we were to apply the same legal principles to football as we do to other industries, it would have to become extremely different, if not go out of business.”

“Seriously?” you may ask. A guy who made a good living engaging in high-speed collisions with 300-lb. blocks of granite can say he didn’t understand the risks involved? It may seem that case will be laughed out of court.

But Olson thinks not. “Courts have not been very friendly to this argument, particularly when something as grave as permanent brain damage is involved,” he told me. And it’s become apparent that while players were aware of the possibility of mangled knees, broken bones, and concussions, they didn’t grasp that repeated blows to the head could produce debilitating and irreversible mental harms.

* See the Samsung commercial in this post for explanation of the team names.

Everything is cyclical — Baby Boom to Baby Bust

Filed under: Economics, USA — Tags: , , , , , — Nicholas @ 09:56

In the Wall Street Journal, Jonathan Last looks at the demographic changes on tap for the United States as the fertility rate continues to drop below replacement:

The fertility rate is the number of children an average woman bears over the course of her life. The replacement rate is 2.1. If the average woman has more children than that, population grows. Fewer, and it contracts. Today, America’s total fertility rate is 1.93, according to the latest figures from the Centers for Disease Control and Prevention; it hasn’t been above the replacement rate in a sustained way since the early 1970s.

The nation’s falling fertility rate underlies many of our most difficult problems. Once a country’s fertility rate falls consistently below replacement, its age profile begins to shift. You get more old people than young people. And eventually, as the bloated cohort of old people dies off, population begins to contract. This dual problem — a population that is disproportionately old and shrinking overall — has enormous economic, political and cultural consequences.

For two generations we’ve been lectured about the dangers of overpopulation. But the conventional wisdom on this issue is wrong, twice. First, global population growth is slowing to a halt and will begin to shrink within 60 years. Second, as the work of economists Esther Boserups and Julian Simon demonstrated, growing populations lead to increased innovation and conservation. Think about it: Since 1970, commodity prices have continued to fall and America’s environment has become much cleaner and more sustainable — even though our population has increased by more than 50%. Human ingenuity, it turns out, is the most precious resource.

Low-fertility societies don’t innovate because their incentives for consumption tilt overwhelmingly toward health care. They don’t invest aggressively because, with the average age skewing higher, capital shifts to preserving and extending life and then begins drawing down. They cannot sustain social-security programs because they don’t have enough workers to pay for the retirees. They cannot project power because they lack the money to pay for defense and the military-age manpower to serve in their armed forces.

Update: Kelly McParland on the plight of some older workers: “If they’d never worked at all, and gotten by on social assistance, they might still have a financial lifeline.”

It would be cruel (and maybe unfair) to say they made their own beds, but it remains the fact that a great deal of the trouble they face results from the refusal to brook a more prudent approach to public finances for so many years. Programs that were unaffordable were pushed through time and again, paid for by more and more borrowing. When crises developed, the borrowing increased while spending was only rarely curtailed. The curse of deficit financing is its snowball effect: annual shortfalls pile up, pushing up the carrying costs, creating a self-perpetuating ever-expanding spending crisis. When a recession inevitably arrives, there are no reserves to deal with it, and even more borrowing ensues.

After so many decades of pretending it could go on forever, without there being a reckoning, the generation that created it is discovering how wrong they were. Not only is it destroying the retirement dreams of so many near-seniors, it’s preparing a poisoned legacy to hand to the next generation, and perhaps the one after that, unless they recognize the need for greater discipline and finally accept the pain that will necessary to put the process back on a sustainable track.

Canada is fortunate that it faced up to its debt crisis 15 years ago and is still benefiting from that fact, but the public memory is short and there will always be pressure to turn a blind eye to debt, and legislate for today. No wonder people get more conservative as they get older. They understand the price that has to be paid for putting costs off to tomorrow.

University of Leicester confirms that the remains are those of King Richard III

Filed under: Britain, History, Science — Tags: , , , — Nicholas @ 09:16

BBC News rounds up the details:

A skeleton found beneath a Leicester car park has been confirmed as that of English king Richard III.

Experts from the University of Leicester said DNA from the bones matched that of descendants of the monarch’s family.

Lead archaeologist Richard Buckley, from the University of Leicester, told a press conference to applause: “Beyond reasonable doubt it’s Richard.”

Richard, killed in battle in 1485, will be reinterred in Leicester Cathedral.

Mr Buckley said the bones had been subjected to “rigorous academic study” and had been carbon dated to a period from 1455-1540.

Dr Jo Appleby, an osteo-archaeologist from the university’s School of Archaeology and Ancient History, revealed the bones were of a man in his late 20s or early 30s. Richard was 32 when he died.

Battle wounds

His skeleton had suffered 10 injuries, including eight to the skull, at around the time of death. Two of the skull wounds were potentially fatal.

One was a “slice” removing a flap of bone, the other caused by bladed weapon which went through and hit the opposite side of the skull, a depth of more than 10cms (4ins).

Dr Appleby said: “Both of these injuries would have caused an almost instant loss of consciousness and death would have followed quickly afterwards.

“In the case of the larger wound, if the blade had penetrated 7cm into the brain, which we cannot determine from the bones, death would have been instantaneous.”

Other wounds included slashes or stabs to the face and the side of the head.

Update: New Scientist still has concerns that the trail of evidence is not strong enough to constitute proof of identity:

Mitochondrial DNA is passed down the maternal line and has 16,000 base pairs in total. Typically, you might expect to get 50 to 150 fragments from a 500-year-old skeleton, says Ian Barnes at Royal Holloway, University of London, who was not involved in the research. “You’d want to get sequences from lots of those fragments,” he says. “There’s a possibility of mitochondrial mutations arising in the line from Richard III.”

“It’s intriguing to be sure,” says Mark Thomas at University College London. It is right that they used mitochondrial DNA based on the maternal line, he says, since genealogical evidence for the paternal lineage cannot be trusted.

But mitochondrial DNA is not especially good for pinpointing identity. “I could have the same mitochondrial DNA as Richard III and not be related to him,” says Thomas.

The researchers used the two living descendents to “triangulate” the DNA results. The evidence will rest on whether Ibsen and his cousin have sufficiently rare mtDNA to make it unlikely that they both match the dead king by chance.

February 3, 2013

Bureaucracy and the would-be small business owner

Filed under: Bureaucracy, Business, Cancon, USA — Tags: , — Nicholas @ 11:40

It took me less than a day to start my own business — and it was all done online. We have it good: Canada is at the top of the league table for ease of starting a new business. Americans don’t have it as easy as we do:

Last week, having read my own writing about how it’s cheaper to buy a house than rent one in most markets, I decided to take my own advice. My wife and I bought a new place, and instead of selling our old condo, we’re going to rent it out. And thus I became a small-business man.

Or, rather, I’m becoming one. Entrepreneurship — even on the smallest and most banal scale — turns out to be a time-consuming pain in the you-know-what. My personal inconveniences aren’t a big deal, but in the aggregate, the difficulty of launching a business is a problem and it may be a more important one as time goes on.

[. . .]

The striking thing about all this isn’t so much that it was annoying — which it was — but that it had basically nothing to do with what the main purpose of landlord regulation should be — making sure I’m not luring tenants into some kind of unsafe situation. The part where the unit gets inspected to see if it’s up to code is a separate step. I was instructed to await a scheduling call that ought to take place sometime in the next 10 business days.

Not that I expect your pity. I don’t even pity myself. Going through the process, I mostly felt lucky to be a fluent-English-speaking college graduate with a flexible work schedule. But the presence of a stray pamphlet offering translation into Spanish, Chinese, or Amharic seemed like it would be only marginally useful to an immigrant entrepreneur. A person who needs to be at her day job from 9 to 5 would have a huge problem even getting to these offices while they’re open.

The bureaucratic hassles of entrepreneurship turn out to vary pretty substantially from place to place. The World Bank has a fairly crude measure of how easy it is to start a business in different countries and ranks the United States 13th. North of the border in Canada (ranked third), there’s typically just one “procedure” — a paperwork filing, basically — needed to launch a business. In America, it takes more like six.

US poised to increase involvement in Mali

Filed under: Africa, France, Military, Religion, USA — Tags: , , , , — Nicholas @ 11:27

Sheldon Richman explains why it could be a problem if the American presence in northwestern Africa is further expanded:

Ominously but unsurprisingly, the U.S. military’s Africa Command wants to increase its footprint in northwest Africa. What began as low-profile assistance to France’s campaign to wrest control of northern Mali (a former colony) from unwelcome jihadists could end up becoming something more.

The Washington Post reports that Africom “is preparing to establish a drone base in northwest Africa [probably Niger] so that it can increase surveillance missions on the local affiliate of Al Qaeda and other Islamist extremist groups that American and other Western officials say pose a growing menace to the region.” But before that word “surveillance” can bring a sigh of relief, the Post adds, “For now, officials say they envision flying only unarmed surveillance drones from the base, though they have not ruled out conducting missile strikes at some point if the threat worsens.”

Meanwhile Bloomberg, citing American military officials, says Niger and the U.S. government have “reached an agreement allowing American military personnel to be stationed in the West African country and enabling them to take on Islamist militants in neighboring Mali, according to U.S. officials.… No decision has been made to station the drones.”

The irony is that surveillance drones could become the reason the “threat worsens,” and could provide the pretext to use drones armed with Hellfire missiles — the same kind used over 400 times in Pakistan, Yemen, and Somalia, killing hundreds of noncombatants. Moving from surveillance to lethal strikes would be a boost for jihadist recruiters.

Adrian Peterson named NFL MVP

Filed under: Football — Tags: , , — Nicholas @ 11:02

The man who almost single-handedly pushed the Minnesota Vikings into the playoffs has won the NFL’s Most Valuable Player award (and is the first Viking to win the award since Fran Tarkenton back in 1975):

Adrian Peterson racked up a bunch of awards on the night, starting with the NFL Fantasy Football Player of the Year Award. Peterson thanked the folks that drafted him in fantasy football this year … NO PROBLEM, ADRIAN … because that’s just the kind of guy he is.

The next award Peterson racked up on the evening was the award for NFL Offensive Player of the Year, which shouldn’t come as too much of a surprise.

The biggest highlight, however, was when Peterson was named the Most Valuable Player of the National Football League. This morning, I wondered whether or not Peterson would be able to fend off the challenge of Peyton Manning for the award, and it turns out that he did. In a season that started just eight months after Peterson had surgery on his left knee to repair a torn ACL (among other damage), he put together a season for the ages, rushing for 2,097 yards. That’s the second-highest total in NFL history, and just eight yards fewer than Eric Dickerson’s all-time single-season record of 2,105 yards. He also led the way in taking a Vikings’ team that was a 3-13 disaster the year before to a 10-6 record and a spot in the 2012 NFL playoffs.

There will be some people that will jump up and down and throw a fit about Manning not getting the award, but really … and yes, I’m biased … but Peterson really was the best choice for the award. If you base the award on who had the best season, nobody had a better year in 2012 than Adrian Peterson. If you base the award on who meant the most to their team, nobody meant more to their team than Adrian Peterson meant to the Vikings in 2012.

Judd Zulgad has more:

Peterson, who suffered torn anterior cruciate and medial collateral ligaments in his left knee late in 2011, finished this season with 2,097 yards rushing on 348 carries, giving him an average of 6 yards per attempt, and 12 touchdowns.

His rushing total was the second best in NFL history behind the 2,105 yards that Eric Dickerson had in 1984 with the Los Angeles Rams.

Peterson beat out Peyton Manning, who in his first season as Denver’s quarterback contended for a fifth MVP trophy. Manning’s four are a record.

Peterson received 30½ votes from a nationwide panel of 50 media members who regularly cover the NFL. Manning, who also won the Comeback Player of the Year award after missing the 2011 season following neck surgery, got the other 19½ votes for MVP.

“It’s truly an honor to be recognized as the league’s most valuable player,” Peterson said in a statement issued by the team. “While the award is considered an individual achievement, I couldn’t have had the success that I did without my teammates, my coaches and the Vikings organization. I’m blessed to be a member of the Vikings, and I hope next year we can get the ultimate team award by bringing a Super Bowl championship to Minnesota.”

Cris Carter (finally) voted into the Pro Football Hall of Fame

Filed under: Football — Tags: , — Nicholas @ 10:49

The “receiver log-jam” has finally broken in favour of former Minnesota Vikings wide receiver Cris Carter. Picking him up off waivers was the best $100 the Vikings ever spent. After all, “all he does is catch touchdowns“:

Carter’s numbers, as they have for years, speak for themselves. His 1,101 career receptions are still fourth in National Football League history. He is ninth all time in receiving yards with 13,899, and his 130 receiving touchdowns is fourth-best in NFL history. When he retired from the game after the 2002 season, he had more receptions, yardage, and touchdowns than any wide receiver in NFL history not named Jerry Rice.

1500ESPN’s Judd Zulgad has the full story:

Carter began his career with the Philadelphia Eagles in 1987 after being a fourth-round pick in the supplemental draft out of Ohio State. Carter had 19 touchdowns among his 89 catches in three years with the Eagles. That caused then-Eagles coach Buddy Ryan to utter the now famous phrase, “All he does is catch touchdowns,” when talking about Carter.

The Vikings landed Carter before the 1990 season, paying only $100 to get him off of waivers. Carter, who had some issues early in his career with the Eagles, spent the next 12 seasons with the Vikings.

Carter is still fourth in NFL history in career receptions and fourth in receiving touchdowns. He is now ninth in receiving yards (13,899).

Asked if he thought he might not get elected to the Hall, Carter said: “No. I never let people do that. Those years I didn’t make it, I took two or three hours to cry or mourn or think about it, then right after that I went right back to what I had to do. I’ve got stuff, I’m busy. It’s a great experience but, no, I thought I was going to get in.

“Then this year, I said to myself, ‘I’m going to get in the Hall. I believe I’m going to get in the Hall.’ I just believed. It’s always the right time to do the right thing. With this list and these players, and the wide receivers, eventually one of us had to get in. Eventually, one of us had to get in.”

February 2, 2013

Romania responds to British anti-immigration talk

Filed under: Britain, Europe, Humour, Media — Tags: , , , , — Nicholas @ 12:01

Romania’s Gandul has a bit of fun at Britain’s expense:

Gandul - Why don't you come over

Public fears in the UK over mass immigration by Eastern Europeans has prompted a peculiar response from Romania: One newspaper published a series of ads playing on British cultural stereotypes, and saying why people should move to Romania instead.

­“Our draft beer is less expensive than your bottled water,” one of the ads proudly states, hinting at the high costs of living in the UK. Another ad made fun of British cuisine: “We serve more food groups than pies, sausage, fish and chips.”

Other ads touched upon politics, weather and even women: “Half of our women look like Kate. The other half, like her sister.”

The ‘Why don`t you come over?’ ad campaign was designed by the online Romanian newspaper Gandul and GMP Advertising firm in response to numerous reports in the British media about a possible government initiative to launch a negative ad campaign discouraging Romanians and Bulgarians from coming to work in Britain.

Update, 13 September: The campaign just won a Gold Award at AdStars.

Hidden under Britain’s defence HQ: Henry VIII’s wine cellar

Filed under: Architecture, Britain, History, Military, Wine — Tags: , — Nicholas @ 11:44

It’s not open to the general public — and given what’s built on top of it, that’s probably no surprise:

Like the Pentagon, its better-known counterpart in the United States, Britain’s Ministry of Defence building is a fairly mundane, if gigantic, office block camouflaging a much more exciting subterranean realm of secret tunnels, bunkers, and — at least in the MoD’s case — a perfectly preserved Tudor wine cellar.

IMAGE: Henry VIII’s wine cellar, photograph by Nicola Twilley. The cellar is apparently occasionally used to host Ministry of Defence dinners and receptions, but is otherwise off-limits to the public other than by special request.

IMAGE: Henry VIII’s wine cellar, photograph by Nicola Twilley. The cellar is apparently occasionally used to host Ministry of Defence dinners and receptions, but is otherwise off-limits to the public other than by special request.

This stone-ribbed, brick-vaulted undercroft was built in the early 1500s by Cardinal Wolsey, as part of a suite of lavish improvements to York Place, the Westminster residence of the archbishops of York since the thirteenth century. The additions, which also included a gallery, presence chamber, and armoury, were intended to make York Place into a palace splendid enough to host the King. They succeeded well beyond Wolsey’s intentions: when Wolsey fell from favour, due to his inability to secure the papal annulment Henry VIII needed in order to marry Anne Boleyn, the King decided to move in.

[. . .]

York Place became the Palace of Whitehall, the principal residence of the English monarchy in London for nearly two hundred years, and Wolsey’s expansive cellar (he apparently received the first delivery of Champagne ever exported to England) became King Henry VIII’s Wine Cellar, the name by which it is still known today.

In Tudor times, the wine was stored in barrels, which presented a certain problem for service: “The barrels are historical reconstructions to represent how wine was stored in Tudor times. Henry VIII’s court consumed something like 300 barrels of wine each year, mostly exported from France and delivered to the palace by river. Interestingly, the wine was drunk very young by today’s standards — an August harvest might be on the table by November — and it was carefully blended with water, honey, and spices to mask its increasing sourness, as half-drunk casks allowed air into contact with the wine, which gradually oxidised into vinegar.”

Rick Mercer discovers Olympic fencing

Filed under: Cancon, Humour, Sports — Tags: , — Nicholas @ 10:33

“The welfare state we have is excellent in most ways. We only have this little problem. We can’t afford it.”

Filed under: Economics, Education, Europe, Government — Tags: , , , , , , — Nicholas @ 00:02

Based on this report in The Economist, we really should strive to be more like Sweden, and not for the reasons most Canadians would expect:

Sweden has reduced public spending as a proportion of GDP from 67% in 1993 to 49% today. It could soon have a smaller state than Britain. It has also cut the top marginal tax rate by 27 percentage points since 1983, to 57%, and scrapped a mare’s nest of taxes on property, gifts, wealth and inheritance. This year it is cutting the corporate-tax rate from 26.3% to 22%.

Sweden has also donned the golden straitjacket of fiscal orthodoxy with its pledge to produce a fiscal surplus over the economic cycle. Its public debt fell from 70% of GDP in 1993 to 37% in 2010, and its budget moved from an 11% deficit to a surplus of 0.3% over the same period. This allowed a country with a small, open economy to recover quickly from the financial storm of 2007-08. Sweden has also put its pension system on a sound foundation, replacing a defined-benefit system with a defined-contribution one and making automatic adjustments for longer life expectancy.

Most daringly, it has introduced a universal system of school vouchers and invited private schools to compete with public ones. Private companies also vie with each other to provide state-funded health services and care for the elderly. Anders Aslund, a Swedish economist who lives in America, hopes that Sweden is pioneering “a new conservative model”; Brian Palmer, an American anthropologist who lives in Sweden, worries that it is turning into “the United States of Swedeamerica”.

[. . .]

This is not to say that the Nordics are shredding their old model. They continue to pride themselves on the generosity of their welfare states. About 30% of their labour force works in the public sector, twice the average in the Organisation for Economic Development and Co-operation, a rich-country think-tank. They continue to believe in combining open economies with public investment in human capital. But the new Nordic model begins with the individual rather than the state. It begins with fiscal responsibility rather than pump-priming: all four Nordic countries have AAA ratings and debt loads significantly below the euro-zone average. It begins with choice and competition rather than paternalism and planning. The economic-freedom index of the Fraser Institute, a Canadian think-tank, shows Sweden and Finland catching up with the United States (see chart). The leftward lurch has been reversed: rather than extending the state into the market, the Nordics are extending the market into the state.

Why are the Nordic countries doing this? The obvious answer is that they have reached the limits of big government. “The welfare state we have is excellent in most ways,” says Gunnar Viby Mogensen, a Danish historian. “We only have this little problem. We can’t afford it.” The economic storms that shook all the Nordic countries in the early 1990s provided a foretaste of what would happen if they failed to get their affairs in order.

« Newer PostsOlder Posts »

Powered by WordPress