Posts Tagged ‘globalisation

20
Jan
13

Tis but an infinite stroke of eternity’s brush, this stretch of beach, this stick of Thai and thy, m’dear

Sta Travel

Sta Travel

Travel broadens the mind. Travel is good. I love travel. There is nothing like that feeling you get when you arrive in a new city on the other side of the world. Everyone should travel.

But…….is it too easy these days?

I saw this travel shop in North Street, Brighton. The picture is of Ko Phi Phi, an island off the coast of Thailand. Ko Phi Phi has to be very close to paradise yet now we can gawp at it as we trudge through the sludge of an English winter. We can enter the shop, buy a ticket and queue up along with thousands of others to sit alone on the top of the hill and gaze out at this natural wonder.

Elan Adventurer, Ko Phi Phi, 1991

Elan Adventurer, Ko Phi Phi, 1991

I visited Ko Phi Phi in 1991 when I arrived as part of the Europa 92 round the world yacht rally. I was asleep in my bunk when we arrived and was awoken by what I assumed was a tractor engine. I imagined we’d arrived in some horrendous industrial port but when I popped up my head I saw this fantastic tropical island. The noise was from the enormous engines that the locals attached to their canoes. Later, I was chatting to an English sales rep from a marine engine company. He told me that they sold the engines with silencers but that the Thai’s removed them as they loved the noise.
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Kid at Ko Phi Phi, 1991

The kids would run up and hang off the side of the local canoes.

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Does anyone remember the The Fabulous Furry Freak Brothers?

There was a story where, I think it was Phineas, liked to go hiking on his own and commune with nature. He discovered a wonderful patch of Marijuana and he would sit there crossed legged, smoking a joint and watching the sun set.

Then, one day as he arrived he saw 3 other lone hikers all approaching from different directions. Each had thought that he alone knew of the secret marijuana patch. They all ran for the marijuana and grabbed a much of it as they could and ran off. And the last line of the story is “…and that was the end of the secret marijuana patch”.

One of the Fat Freddy Cat stories is also apposite. As Fat Freddy says: ‘Tis but an infinite stroke of eternity’s brush this stretch of beach, this stick of Thai and they, m’dear!

One Fine Day At The Beach

One Fine Day At The Beach

st malo beach

St Malo Beach

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19
Aug
12

chimney cake and the globalisation of ideas

Budapest

Budapest

I spent this week in Budapest staying at the excellent Intercontinental Hotel with a fantastic picture window overlooking the Danube and The Castle. Hot and sunny during the day and just plane hot at night. There is nothing like travelling around Europe for a few years to make you understand just how crap British weather is. Once the light faded the castle illumination came on. Gorgeous! As was the parliament building a little further along the river.

room with a view

room with a view

For lunch one day we drove out to Budaörs and visited the  Adler a traditional Hungarian restaurant where I ate good goulash. One evening I took a boat ride along the river. The commentary explained the architecture and mentioned that a Hungarian invented the computer. Odd, as I’d been told that it was either Allan Turing or Charles Babbage, both Englishmen. This reminded me of a Dutch friend telling me that a Dutchman had developed ideas on gravity before Newton. When I was a kid I was led to believe that Britain created the whole of the modern world. At school I was told that William Caxton invented the printing press and it was comparatively late in life that I learned about a German named Johannes Gutenberg.

A little later I ate in the excellent Sörforrás restaurant. Comfortable, good service and delicious Hungarian and international food. I think that, really, the whole of European history is one. We speak of globalisation now but centuries ago there existed a Europeanisation of scientific and artistic thought. Presumably the educated people understood this but the illiterate masses were oblivious to it. Not so different from today when the world’s elite flit around the globe paying their taxes wherever convenient but when they need our support they appeal to our nationalistic feelings with terms like “in this land” and “We British”. Remember Tony Blair banging on about being “passionate” about British this and that yet when he left politics he got a job with an American bank. Patriotism, as Samuel Johnson observed, is the last refuge of a scoundrel.

Hungarian Parliament Building

Hungarian Parliament Building

In truth, I don’t believe that many great discoveries come about in isolation. Ideas about relativity were simmering away amongst the world physics community before Einstein finally hit the nail on the head. Ideas and memes swirl around in our culture like the currents in a river. They ebb and flow and occasionally some bright spark gets drawn into an eddy and brings it all together. The sum of human knowledge is ratcheted up another notch. Yes, it was Einstein who made the final move but if he’d fallen under a car, someone else would probably have got there soon enough.

It crossed my mind that, like a river, human knowledge has many tributaries and side channels. Perhaps Einstein’s marvellous discovery helped us focus our attention on the material world and we’ve made great progress in this respect. Yet I wonder how it is that a civilisation which can place men on the moon and robot cars on mars can’t figure out an economic system which does not either get bogged down in authoritarianism inefficiency like Socialism or have periodic catastrophes like Capitalism.

The odd thing is that nobody seems interested in developing another system. People who don’t like Capitalism have an irrational faith in Socialism. People who mistrust Socialism think that recessions, depressions and credit crunches are just something that society has to endure along with the concomitant suffering of the poorest. If the brightest and the best could be dragged away from their Bloomberg terminals then maybe they could figure out a sustainable economic model. Ah, but that would mean change and nobody likes that.

The banks of the Daunbe

The banks of the Daunbe

Perhaps the relevant ideas and memes are swirling around us already; climate change, the Internet, super-complex and reliable consumer products,  globalisation, a common language, the creative classadditive manufacturing. Perhaps all the pieces already exist and we just need some Einstein to put it all together?

On this visit I did not board the funicular railway up to the castle but I hung around one evening near the station at the bottom and took photos as evening fell. Vast cruise boats slid by, many from Germany. The Danube rises like an enormous cake in Germany’s Black Forest and flows through Vienna, Bratislava and Belgrade not to mention Orşova, Drobeta-Turnu Severin, Calafat, Bechet, Dăbuleni, Corabia, Turnu Măgurele, Zimnicea, Giurgiu, Olteniţa, Călăraşi, Feteşti, Cernavodă, Hârşova, Brăila, Galaţi, Isaccea and, of course, Tulcea.

As I crossed the bridge back to the hotel I looked down and saw one of these floating leviathans drifting by with a swimming pool on it’s deck. It has never occurred to me to cruise along a river before. What a great idea. You can stay in one place while visiting the great cities of Europe.

Kürtőskalács

Kürtőskalács

The hotels are near the main entertainment area in Budapest and the night was busy with tourists and locals. I bought Kürtőskalács, or Chimney Cake, from a street seller. Spirals of pastry dipped in nuts and sugar that tasted, to me, like mince pies. One starts to eat this delicious confection and gets the idea that one will eat just one more ring before stopping. But these are not rings, this is a spiral and one munches on and on and on until one has devoured the whole thing.

A driver had been organised to take me from the hotel to the office the next morning. I emerged early and he had not yet arrived and so I stood gazing out over the river and waited. The hotel concierge approached, asked my name and said I should get in one of the taxis that always wait outside the hotel. I explained that I had a car coming but he insisted. I walked to meet him at the car and explained again that this was unnecessary. This time a second concierge joined in telling me that I should get in the car and when I tried to speak a passing young man with a rucksack said to me: “He couldn’t come”. For just the twinkling of an eye I thought I was back in The Village. Either that or some Soviet era spy thriller. It seemed that the whole of Budapest knew who I was and was conspiring to kidnap me.

I got in the car and went to the office.

Banks of the Danube

Banks of the Danube

Roses

Roses

14
Apr
12

Tax – What is it good for?

No Taxation

Rock & Roll!!!

Since the credit crunch there has been a lot of talk of tax avoidance and recently it was “revealed” that Amazon.co.uk paid no corporation tax on profits from UK sales of more than £3bn. People are outraged and questions are raised in the House. But hang on, we all avoid tax. I do, I avoid it any chance I get. I try to put my savings into an ISA each year, I have given up smoking and I am deterred from driving because the bloody fuel is so expensive and that’s because of tax.

On BBC Radio 4′s New Quiz today, comedian Andrew Maxwell said that, in an effort to avoid tax, Rock and Roll cliches U2 are now all classed as Dutchman and their guitarist (“The Edge” as he ludicrously calls himself) was quoted as saying “Who wouldn’t want to be more tax efficient?” – As Mr. Maxwell commented: “Yeh!! Rock and Roll!!!” – Everybody’s at it. Bankers, corporations, rock stars, me and you. So what is the problem?

There is a problem because if too much tax is avoided then the chancellor wont be able to finance all the spending. Somebody has to pay for the roads, hospitals and the Queen’s corgis.

One aspect of tax avoidance that annoys most of us is when large corporations, which have extensive business in the UK, fail to pay significant tax and I have blogged before about how this is enabled by tax havens such as the Caymen Islands.

But you can’t blame Johnny Foreigner for this sort of thing. The British are not averse to maintaining tax havens in Guernsey and The Isle of Man. In addition a recent article in The Economist made the point that the UK is one of the few countries which still allows “bearer bonds” which differ from normal investments bonds in that they are unregistered and untraceable. This is the toffs equivalent of paying the plumber in cash, only on a massively bigger scale.

Window Tax

Tax Avoidance?

Tax systems vary across the world. Some developing countries do not have a civil service reliable enough to collect tax from individuals and so most tax is derived from large international corporations but this is a practical decision not a moral one. Kings and governments have always based tax policy on what will generate income and on what they think they can get away with. In the 18th and 19th centuries England, France and Scotland taxed the number of windows in a house and in order to avoid this tax some owners bricked-up their windows. This was tax avoidance. Should the government have insisted that individuals maintain a minimum number of windows in their buildings?

Tax law evolves over time. There was no moral reason why a tax should be paid on windows and there is no moral reason why a tax should be paid by corporations. In a democratic country the tax system is a settlement broadly agreed by the people with recourse to their government and electoral system.

The trouble is that the wealthy have the ability to employ lots of clever bastards to avoid the machinations of government. Further, political parties who receive funds from the wealthy will always turn a blind eye to loop holes which allow the rich to avoid tax.

But the apathy and bias of government are not the only reasons why companies like Amazon can perform the corporate gymnastics allowing them to avoid so much tax.

Two other factors are now making tax avoidance a hot topic: Globalisation and technology. Globalisation started centuries ago, perhaps with the silk road, but it began to gain traction in the 19th century enabled by European empires.

Over the past 20 years technology, and specifically computers and The Internet, have turbo charged globalisation. Our governments are constantly banging on about how we, in The West, should do the design and development work and leave the manufacturing to others and this is happening now on a massive scale. Outsourcing is the order of the day. A recent article in The Economist stated that, despite Apple manufacturing iPads in China, 30% of the value was still created in the United States. Apple’s developers sit at their computers in the U.S. and squirt designs and instructions across the world in split seconds. The situation is similar with the British chip maker ARM who make most of the processors in smartphones. The designers sit in the UK but the chips are manufactured abroad. From telephone banking based in Mumbai to British stag weeks in Thailand we can see that the world is integrating.

Yet when Amazon adjust their business model to avoid UK tax we squeal like little piggies.

So what’s to be done?

The solution is not to force corporations to stick to a 20th century tax structure any more than they should be forced to have more windows. Governments have changed the rules on commerce so it is logical that the rules on taxation be adjusted accordingly. This may mean designing rules which ensure that corporations pay more tax but not necessarily.

We should understand that only one group of people in society ever pay tax and that is the general public. You and me. The “consumer”. Joe Blogs. The Man on the Clapham Omnibus.

There IS nobody else.

In theory the super rich pay tax but since they derive their incomes from employing a lot of us and, since they largely set their own salaries, any increase in tax for them will just be compensated by an increase in salary and who pays their salary? We do. Similarly corporations don’t really pay tax as they pass all their costs on to the consumer and their profits to share holders.

The starting point of any taxation system should be: What is the fairest and most efficient way of distributing taxation. To determine this we should ask what are the reasons for taxation. The most obvious reason is to raise funds, but a second reason is to deter the activity which is taxed.

The purpose of income tax might be purely to provide funds to the government but the tax on cigarettes is meant as a deterrent (although one suspects that it is now just cash cow).

If we believe that taxing cigarettes deters smoking then we should also believe that taxing income deters work – and we do. Consider the Tories reducing the top rate of tax from 50% to 45% to encourage “global talent” to come to the UK and consider people who collect “benefits” but would lose this money if they took paid employment.

Given this, it is astonishing that 48% of taxation in the UK (according got the 2008 budget) was derived from the taxation of work in the form of income tax and National Insurance.

Tax

Tax

If we want people to work then why the hell are we taxing it?

Our tax system seems antiquated and not fit for purpose. Large parts of it deter desirable activities and other parts, such as corporation tax, are so dysfunctional that corporations are running rings around the HM Revenue & Customs.

The solution is a radical design of the tax system. We need a system which is simple, practical and deters only activities which society deems undesirable.

Ah….but there’s the rub. What does society deem undesirable? Cigarettes? Alcohol? Marijuana? I suggest that the activity which is most undesirable, yet prevalent, is the emission of gases which cause climate change Therefore, our tax system should be adjusted to place the majority burden of taxation on activities which emit CO2.

Commuters will scream: “but I need my car to get to work. How will I manage if my fuel bill is a thousand pounds a month?” – My repost would be: If income tax and National Insurance were abolished then you could afford to pay a thousand pounds for fuel……but you would have huge incentive to DO SOMETHING about climate change rather than talking about it.

Star House

Star House

09
Apr
12

The Lord’s Terms & Conditions

Euroma2

The New Cathedrals?

It seems that, these days, Easter in New York means a hat parade. People walk around in fancy hats admiring each other. This reminds me of a Science Fiction Trilogy by Michael Moorcock entitled The Dancers At The End Of Time (1974).

The trilogy tells of a bunch of people who live at the “end of time”. They inhabit a world in which they have gained complete material power and they manipulate the world using little rings on their fingers. The technology behind this had long been forgotten having been invented millennia in the past. The people have become decadent and spend their days seeking novelty. One day they spend all their time creating flags as this was the “in thing” for the season and one flag was the size of a continent.

Is this a comment on New Yorkers? Well partly I guess but, by extension, the rest of us too. BBC Radio 4 ran a story in the last few days where they were saying that most kids don’t know what Easter is about. Outrage that they know nothing about Christianity and all the rest of it.

I am usually an agnostic and haven’t seen any reason to know about religion but I am now starting to wonder. Given that, as a species, we seem to like to follow rules and do what everyone else does then maybe indoctrinating the population with a lot of myths on which to base the system and, specifically all the punishments, is a good idea. I suspect that the indoctrination would need to include some thing a bit more spiritual than hat parades though.

It has been suggested that shopping malls are modern day cathedrals. Perhaps it’s possible to create a religion based on capitalism, commercialism and materialism (CCM?) Perhaps we have already done this? If so then it may be a good plan to accept that CCM is the new religion and dress it up in a lot of archaic English to give it a more religious feel?

The Lord’s Terms & Conditions

Lord, thine world is full of marvels and wonders,
And I am free to choose,
Thanks be to choice for choice is the root of all good,
Glory be to Madison Avenue for it exalts thy wonders,
Which I may own through my own labour,
Though I am responsible for my situation just as others are responsible for theirs,
I vow to research my purchases thoroughly on comparison web sites prior to purchase,
And repay my debts,
As others debts are repaid to me with interest,
Thanks be to copyright and patent,
For they enable innovation,
And innovation creates yet more products,
Which I must strive to buy,
Blessed are the payment companies for they enable e-comerse,
Blessed is globalisation as it empowers comparative advantage,
Forgive us our debts,
After due bankruptcy procedures,
And sell us this day our daily bread,
Deliver our goods next day,
For our is the kingdom,
The power and the glory
For ever and ever
Amen

I ACCEPT                 I DECLINE

Happy Easter everyone.

Roses

Roses

28
Mar
12

The cost of efficiency 1 – Our food turns to crap

Nutrition: That's not ice cream... that's 'pink slime'

Nutrition: That's not ice cream... that's 'pink slime'

Efficiency savings. Every time a new government gets in they claim they will make efficiency savings. One of my first jobs was as a computer operator. In those days computer time was so expensive that work would be “batched up” and done in a big chunk. One guy said to me that we are the slowest things in the computer room and he meant that if a batch job stopped and needed another tape loaded then we needed to change it immediately.

I was young and I got into this efficiency stuff. I worked to maximise the time that the computer was doing work. Since then I have noticed efficiency is a driving force behind capitalism. The way it’s sold is that efficiency will mean we get quicker service, that our products and services will be cheaper and so overall our lives wil be better.

I have started to question this.

It seems to me that efficiency these days is a way to squeeze more profits from a process or organisation. Computers have been introduced everywhere and most organisations now provide a web interface for front ending their services. The idea is that we as “consumers” will be given a better service but often this is not the case.

Take the sale of car insurance for example. In the old days you would meet with some salesman in an office and he would ask you a few questions and get you to fill out a form and hand him a cheque. That would be it. The salesman would have done much of the work. In my case he would have realised that I was over 21 and so not asked me this idiotic question. He would have noticed my gender. He would see that I did not have a wooden leg. etc etc.

A corporate fashion of recent years has been outsourcing and this is usually taken to mean a company getting it’s non-core work done by a third party company. However, in the case of many interactions with consumers, companies are outsourcing work to you. In the case of car insurance we are forced to wade through endless pages of forms and tick boxes on the web. Am I over 18? Am I male? Have I  ever been involved in an accident? Did I claim? How much did I claim? Along with this outsourcing, computerisation has meant that is easy for the corporations to throw in extra questions. The risk department will be telling the software designers to ask more and more questions and as the  time wasted  is not their own they just throw them in.

What race am I? What is my previous address? What is my national insurance number? We are forced to answer hundreds of impertinent questions and then, when we’re done, we are forced to read their bloody agreement. Pages and pages of clauses and caveats that get the company out of paying claims.

We are doing their work for them.

The end result is that all this efficiencies has worked in favour of the organisation but not in the favour of the consumer. Service may be cheaper but they are also crapper.

More and more our society has been reduced to two actors: The global corporation and the individual and this relationship is decidedly unequal. When did you last play any part in creating the contract which you signed for a service? You probably never have. The corporation creates the contract and presents it to you. You either sign it or they refuse to do business with you.

Efficiency means squeezing more people onto aeroplanes so that many of the seats don’t tilt back. Efficiency means cramming more and more homes into smaller and smaller areas of land so that interior walls are now made of chipboard. Efficiency means there is never any slack in the system. Efficiency means that when you call the  bank they read from a menu and are incapable of dealing with non-standard requests. Efficiency means that when you go to buy petrol, the few seconds that you have to chat with the guy behind the counter is taken up by him asking if you would  like two fucking chocolate bars for the price of one and you drearily replying no. Efficiency means we drink out of paper cups and the food in Indian restaurants consists of microwaves meat covered in bulk order sauce.

The picture at the top of this article is of a product known as Pink Slime. It’s seems that, in an effort to squeeze even more value out of the consumer , American food “manufacturers” have taken to collecting the offal that is normally thrown to animals after a cow has been slaughtered, mixing it up with a lot of chemicals (including Ammonia), sticking it in a spin dryer and then putting it into hamburgers and feeding it to Americans.

Bollocks to efficiency!

hove station

hove station

13
Jun
11

Mass tourism – scourge of the urban environment

Tourism

Tourism

The people of Berlin are protesting about the large number of tourists who visit their city and I have every sympathy.

Mass tourism is a scourge on society. The enormous buses clog our streets obscuring the very views that the tourists have come to see and eventually the local culture is displaced by an international tourist culture of burgers, beer and bullshit. Local charm is replaced by shops selling plastic beefeaters and pictures of how things used to be before mass tourism.

We all love to travel and from the tourists point of view mass tourism is a boon enabling us to see the world. Without mass tourism many of us would have no experience of anything outside our immediate vicinity.

But mass tourism destroys the thing it loves. A herd of tourists cannot visit a city without damaging it like some socio-economic version of Heisenberg’s Uncertainty Principle.

When a person reads of the Left Bank in Paris he learns of Picasso, Matisse and Hemingway. He thinks that he too must experience this seminal environment and he buys his ticket. But the locals have seen him coming. They know that the age of art has passed and the age of commerce is upon us. So they open themed cafés, bars and restaurants with names like Bar Les Artistes or Le Lucernaire.

When our gallant traveller arrives he finds that he is not rubbing shoulders with writers or poets but engaged in a drinking competitions with a IT Administrator from Milton Keynes. Our intellectual explorer is now in the minority. The majority of the clientele are not interested in culture but feel they should “take a look while we’re here”. They have been sold culture in the same way that they are sold breakfast cereal and aftershave.

Our cities become caricatures of themselves, Ko Samui becomes Blackpool and an Indian tourists sits and enjoys the ambiance of Paris while eating a Big Mac.

The tourist industry markets travel as a liberating experience but mass tourism is not so much a manifestation of freedom as of greed, globalisation and hyper-commercialisation.

The population of Greater London is estimated at approximately 7.7 Million people. Wikipedia considers that London receives 15 million tourists each year and it is a safe bet that the vast majority of these concentrate their activity in central London. At the moment, the tourist industry sees no limits on how many people it can push down the subway at Oxford Circus. This has been detrimental to the quality of life of Londoners and no doubt Berliners suffer similarly and so are right to object.

Industry and commerce have long involved the appropriation of commonly held land for exploitation by self appointed “owners”. Communism recognises this when it declares that “property is theft”. We generally consider this property to be land used for homes, farms or factories and we assume that this confiscation means exclusion of the public but we neglect the public space in between private property. We neglect the commons.

This common space is owned, used and valued by all of us yet government and commerce now seem hell bent on exploiting it to herd around disinterested tourists in such wretched conditions that their goal, once they emerge from their air-conditioned packaging, is to take a piss, grab a burger and get back on the bus.

The scourge of mass tourism is as an example of The Tragedy Of The Commons (TTOTC).

The Tragedy Of The Commons may sound like a Thomas Hardy novel but is, in fact, a concept used by economists. To quote Wikipedia: “The tragedy of the commons is a dilemma arising from the situation in which multiple individuals, acting independently and rationally consulting their own self-interest, will ultimately deplete a shared limited resource, even when it is clear that it is not in anyone’s long-term interest for this to happen.”

The scenario usually given is where common land is used by multiple individuals to graze their cattle. It is in the interest of each individual to graze as many cows as possible yet this will eventually ruin the grazing land to the detriment of all.

One solution often proposed is that the commons should be privatised and access restricted to those with the ability to pay. The owner would then work in his own self interest to ensure that the asset was maintained in good condition. This could mean that the owner would limit access but this is, by no means, certain.

Intuitively I am against the continued expansion of the private sphere and I find modern shopping malls a poor replacement for a thriving high street.

Another way of addressing TTOTC is intervention by local government. Legislation could be implemented to limit use and protect the asset. In the case of mass tourism this might mean metropolitan rules restricting the number of Bulk Tourist Deliveries (BTDs) in a given period.

However, local government derives a lot of revenue from allowing companies to graze their tourists in city streets and officials often see their role as maximising revenue. According to Wikipedia “The Government Office for London states that tourism revenues constitute 10 per cent of London’s gross value added and contributes to the employment of up to 13 per cent of London’s workforce. According to the London Development Agency, visitors to London spend around £15bn each year.”

Obviously cities will not wish to give up this revenue but at the moment we are sacrificing our environment for short term profit. Reversing this trend and protecting our cities will make them better places to live and ensure that they continue to attract tourists well into the future.

Many years ago, over too many pints, I recall discussing the idea of creating a tour operator which would specialise in giving tourists an authentic night out in London. We would offer a standard service tailored to the Japanese businessman and start with a few pints in a local boozer followed by a trip on a big red double decker bus down to Fitzrovia. More pints would be consumed and a Japanese man would be cajoled into thinking that his beer was off and pushed into taking it back to the bar. The barman would be bribed to take a sip, pause, frown and then apologise profusely before telling the Japanese businessman that he had a “very discerning pallet sir”. More beer would be consumed and the Japanese businessman encouraged to approach a specific young woman who would be bribed to slap him soundly around the face.

The frivolities would continue in an Indian Restaurant where large portions of Vindaloo would be consumed and the waiter paid to talk some bollocks about how this was the hottest curry ever consumed. Eventually the tourists would be emptied into taxis and left to find their own way home when hopefully a minority would vomit in the back of the cab and end the night sleeping in a railway station.

The company was to be called Here We Go Tours and we considered that visiting Australians would make the best tour guides.

The 20th century was the age of standardisation, the production line and economies of scale. The 21st century looks set to change all that. From Internet shopping to 3D printing, globalisation and technology are enabling consumers to customise their purchases to suit their tastes. House swaps and couch surfing are two examples of how independent travellers are using The Internet to bypass the mass tourism industry.

Why not go further, why not reject the standardised tours set by self appointed experts and design your own itinerary? In the past this may have been difficult but in the 21st century the tools are readily available. The Internet allows us to research an area, Google Street View lets us wander the streets before we get there and our GPS equipped smartphones allow us to navigate once we get there.

Why not create an itinerary and share it with your friends on Facebook?

The concept of tourists destroying what they visit is not new and was deftly described in a 1975 Science Fiction story by Garry Kilworth named “Let’s Go to Golgotha”. To quote Wikipedia: “In the future period where the story takes place, time travel has been invented and made commercially available. Among other historical events, tourists can book a time-travelling “Crucifixion Tour.” Before setting out, the tourists are strictly warned that they must not do anything to disrupt history. Specifically, when the crowd is asked whether Jesus or Barabbas should be spared, they must all join the call “Give us Barabbas!”. (A priest absolves them from any guilt for so doing). However, when the moment comes, the protagonist suddenly realizes that the crowd condemning Jesus to the cross is composed entirely of tourists from the future, and that no actual Jewish Jerusalemites of 33 AD are present at all.”

02
Jun
11

Helsinki

Helsinki Station

Helsinki Station

On Sunday I flew to Finland. Helsinki? No I went of my own accord. It was never a good joke in it’s original form and obviously my rendition is no better.

At long last Terminal Three at Heathrow seems to have been tarted up and there was room to swing a cat. Sadly, there were no swinging cats there, just we motley collection of tourists and jaded business travellers.

I am being too cynical. In fact Heathrow is better since the renovation though I still protest every public space in England being transformed into an over priced shopping mall. The “luxury brands” swarm like bloated maggots around departure lounges though why any marketing wallah should think that having the name of Harrods suspended over a shop selling tatt to the masses would do their brand image any good I don’t know.

I’ve heard stories of luxury brands, such as Louis Bloody Vuitton, destroying their merchandise rather than let unsold items appear on the market at knock down prices and I had imagined that this was driven by a determination to artificially maintain exclusivity. But these days the luxury brands appear to be targeting both the toffs and the chavs and I suspect that in a few years time they will have completely destroyed their brand name. In fact I heard that Burberry have hit this exact problem and are now trying to claw there way back to exclusivity. If they’re not careful it will be Robinson’s Barley Water all over again.

I used to drink RB and had bought it fairly regularly over the years. However, a while back I noticed that they had not only changed the bottle to some misshapen plastic abomination but had also brought in a lot of other concoctions which they are flogging under their brand name. I mistakenly picked up a bottle of some rubbish which proved to be undrinkable. I continued to by the stuff for a while but the plastic bottle somehow makes the stuff irksome and it spends it’s days at the back of the shelf with all the supposed goodness gradually settling out until I notice just how foul looking it has become and throw it out.

I stayed at the Sokoto Presidentti in Helsinki which was satisfactory. The bathrooms have an almost medial appearance with their over engineered shower apparatus but the Spanish restaurant delivers a very good pepper steak and crème brulee.

The Helsinki natural History Museum

The Helsinki Natural History Museum

In the evening I stood outside the hotel, my view of the Natural History Museum obscured by an unending procession of tour buses disgorging Japanese tourists. I’d read somewhere that Berliners are up in arms at the number of tourists who clutter up their beautiful city and I sympathise.

Despite the concentration of tour buses at the hotel, Helsinki seems not to suffer the scourge of mass tourism. Wandering the streets in the evening I found them almost deserted. Even at Helsinki Cathedral there were just a few local people sitting on the steps enjoying the evening.

Hypocritically I travel quite frequently and my impression of the UK is that it appears fundamentally different from continental Europe. Northern Europe has a certain uniformity engendered by common street signs for “Centrum”, yellow trams and tall warehouses. Possibly multiple forcible attempts at unifications by megalomaniac dictators resulting in massive loss of life also have something to do with it – Northern Europe has a more communal feel to it.

One evening I visited the Sokos Helsinki restaurant overlooking the railway station for a delicious steak sandwich. From the balcony it is possible to look out over Helsinki station and the trams, one of which appeared to be a travelling bar – What an excellent idea!

Many people in Helsinki ride bicycles but seem not as obsessed with having the right gear as the cyclists in England. The young men seem to be heavy metal enthusiasts and wear jeans, studs and beards. One motorcyclist sported two enormous cow horns on his crash helmet. All a bit Viking which is odd as I am told that their language is unrelated to Scandinavian languages and instead shares it’s history with Hungarian.

About 11pm, when it was still broad daylight, I discovered a video and sweet shop. Numerous videos and numerous types of sweet all in tall jars including the a suspicious brand named Tyrkish Peba. Which I love but which, I suspect, was originally invented as some kind of chemical warfare agent as it is composed partly of Ammonium chloride.

Returning to the hotel I found it overrun by youths who continued to race around the corridors until the early hours creating a sort of carpeted, indoor version of the Bronx.

On the flight home I got talking to a girl who was publishing a book to be named “No Fear” on the changing face of business leadership brought about by globalisation and technology. An interesting discussion though difficult, given the incessant announcement over the tannoy. In an effort to cover themselves and sell us more stuff, corporations bombard us with advertisements and inane safety warnings. We get this on aircraft, on the London Underground and in those imbecilic, and legally questionable, online “agreements”. Corporations will claim that they need to communicate with their customers but this is a very one sided form of communication. I don’t care about the ground speed, the height or their selection of duty free items. I especially don’t care to hear it in multiple languages one after the other at full volume from a loudspeaker positioned 12 inches from my left ear. I sometimes feel like taking a megaphone onto an aircraft and retaliating. I recall a friend who tried this in the back of a taxi once and got thrown out at Trafalgar Square….but that’s another story.

09
Jul
10

The UK in the red

The uk in the red

The uk in the red

I saw a cartoon in The Independent yesterday which implied that The Tory/Lib Dem coalition are using scare tactics to introduce spending cuts. I’ve also heard the Labour cabinet condemning all the cuts but giving no guide as to how the deficit (and the debt) which New Labour ran up should be brought under control. For those not steeped in financial jargon the debt is how much we owe and the deficit is the shortfall in our annual spending. So by running a deficit we increase the national debt. The talk by the new coalition government so far has concentrated on getting the deficit under control but bare in mind that Gordon Brown ran a deficit even during the boom years as the UK was spending more than the government gained in taxes!

Depressingly but, perhaps predictably, all we hear from everyone who has been asked to make cuts is justification for why their particular budget should not be cut. There was an education official on the radio recently “explaining” that the national debt is not like a credit card and that we can simply roll over the debt. Easy! We’re in debt, no problem, borrow more. It is this daft logic that has lead to the UK national debt of nearly 70% of GDP in 2009.

During the 18th and 19th centuries the United Kingdom became wealthy through empire and the industrial revolution and used that wealth to provide comfy lives for the British elite. Note that the majority of the British people had lives worse than many of those in India or elsewhere in the Empire mainly because of the cold British climate and the appalling working conditions during the industrial revolution. The British elite, however, did very well.

During the two world wars the European powers smashed each other to bits and America and the USSR stepped in as world leaders. The U.S. had ensured that the UK paid for aid during the war but the Marshall Plan got the UK and Western Europe back on their feat. The UK then hung on to it’s place in the world for a while. Our industry and trained workforce gave us “comparative advantage” compared to “developing countries” and so the UK and other European countries remained fairly wealthy and fairly secure. Sure Japan, Taiwan and others developed their own industry but most of the world remained pre-industrial.

Post  World War 2 a Labour government came to power and, dazzled by the apparent success of Socialism in the USSR, started looking after the working class. For the first time ordinary people gained access to clean water, health care and pensions.

We developed a world view roughly as follows: The West leads the world, developing technology and operating industry, the far east copies the West and and performs some production and the “third world” supplies the raw materials but remains poor and dependent on aid.

But the UK was complacent., we became convinced that all our wealth was a natural state of affairs and that it could all be paid for by creative accounting. While we were naval gazing the Soviet Union collapsed, open markets became the vogue, China joined the World Trade Organisation and the rest of the world adopted capitalism and found that they were pretty good at it. Not only were they good at it they were unencumbered by a mature democracy or legislation to protect workers.

Global leadership, industry and power is now shifting from the democratic Western nations to nations who are either dictatorships or corrupt token democracies. As a quick preamble to my next bit of ranting I should explain, for the uninitiated, that the a common measure of a countries wealth is Gross Domestic Product (GDP). This is a measure of the total value of goods and services produced by a country. Because countries vary in populations another common measure is to divide GDP by the population and derive a figure known as GDP per capita. This gives a measure of how much each person, on average, produces.

Time for some figures.

UK GDP is sixth in the world, just above Brazil at 8 and India at 11 and below China at 3.

UK GDP per capita is 22nd just after Italy at 21 and Iceland at 19.

National debt is at 68% of GDP, higher than Ghana at 67.5% or Uganda at 19.3%

The UK’s budget deficit (how much more we spend than we earn) is at 14.2% of GDP, above Sierra Leone at 12.35% and Vietnam at 9.3%

And yet

The UK’s defence budget is 2.5% of GDP, that’s more than above China at 2% and Germany at 1.3%.

The UK’s Education spending is the same as South Africa and Mexico at 5.3% of GDP. That’s above Bhutan at 5.2% but below Fiji at 5.6% and Bolivia at 6.3% and Yemen at 9.5%!

It’s also worth considering that other countries do not have debt, they have surplus! They have saved money and built up substantial wealth in Sovereign Wealth Funds. For example:

United Arab Emirates    627 $Billion
Norway                                443 $Billion
China                                     288.8 $Billion

The UK still has some cards up it sleeve. In 2008 we were the sixth biggest manufacturer after Italy but Russia was at 7 and Brazil at 8.

In recent history the UK has relied on North Sea oil to top up our income. I cannot find any figures on what percentage of our GDP is made up from Oil and Gas but I recall reading that the tax take on Oil and Gas was the largest contributor to the British exchequer followed by Finance. I believe that was before the financial crisis.

But north sea oil is predicted to run out within eight years.

All this is not to say that the United Kingdom is doomed, just that the world is changing and we can’t rely on the UK remaining wealthy by default. British policies today dictate the future of this country and if we continue to run up a debt our nation will decline. It not rocket science. There are younger and fitter countries in the world.

Just today I heard a British politician talking about maintaining British leadership. Our political elite have not yet caught up with the 21st century. Why should Brazil, Taiwan or China be interested in being lead by a mid size debtor nation on the other side of the world?

No nation or empire lasts for ever. Nations and Empires rise and fall. The British Empire has fallen and one day the UK will fall and I suggest that, if we are not careful, people will look back and see that the obvious start was the 21st century due to complacency, vested interests and the inability of a people to make tough decisions..

We are no longer one of the few great industrialised powers in a world populated by uneducated and illiterate farmers. The UK is now just one of many educated and industrialised countries. It is true that we have a more mature system of law and democracy but undemocratic and corrupt governments around the world see this as an encumbrance and not as something to emulate.

We are in massive debt, the oil money is running out. New Labour’s policies of spend and hope have failed. I support the current government’s prescription of large scale cuts but this should be supplemented by informed strategic planning.

We should also reconsider our commitment to allowing foreign entities to buy British assets and industry. Sovereign Wealth Funds referred to above often buy industry and assets from the developed world and this is acceptable if everyone plays by the same rules. However some of the largest of these funds are owned by nations who play by very few rules. Specifically we should be wary of allowing SWFs of single party dictatorships or corrupt regimes owning large stakes in the UK.

Globalisation is all very well while the foreign money is pouring in and funding industry and jobs but once these foreign owners have their feet under the table they often find that it is more efficient to centralise production and transfer the industry abroad. This would be fair enough were it possible for British companies to buy up industry in China, Germany or Japan in the same way but other countries are not as open as the UK.

Last Sunday night there was a TV program enthusing about one industry in the UK which remains cutting edge and world leading. This was British Aerospace and it’s production of Rolls Royce Trent aircraft engines in Derby.

The company was very impressive. What is less impressive are rumours that in order to gain access to the larger and more lucrative U.S. military business British Aerospace is trying to morph into a United States company. Once this is achieved how long will it be able to justify dispersing it’s business over two continents?




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