2012-2013 EVT – Restoring Growth (Panglossy)

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. Alarmed by the rising difficulties and widespread discontent, the governing authorities decide to do something when new elections start. Dependent upon programmes created to face efficiently past challenges, prisoners of entrenched political groupings, comforted in their vision by the BRICS’ success and renewed optimism, the major parties campaign to come back to the order ante. As a result, habits and the existing system, once the new national representatives are elected and the new government starts ruling, are even more entrenched, almost ossified. Meanwhile, the polarisation and rise of a new opposition that took place during the election is temporarily frozen by the last hope created by the newly elected government.

(The reader can click on each picture to see a larger version in a new tab - navigating map of posts is available to ease reading).

The new government, thus, decides that it must restore an efficient economy, which is the only solution to come back to a balanced and propitious situation. Its main criteria and aim for this is to re-establish growth and more particularly the growth of the GDP, as the available models of socio-political order dictate.

With growth, the dissatisfaction of citizens will disappear as they will find jobs again and the capability to enjoy the consumer society to which they are used. Meanwhile, all elite groups will be satisfied as they will continue enjoying their status and privileges. Hence the tension will decrease and peace will come back.

Growth will imply wealth and as wealth increases again, debts will not mean deleveraging but, on the contrary, leverage. With the rise of GDP, the ratio debt-GDP will automatically diminish, which will satisfy the financial markets, while the cost of the debt will be much less burdensome. Thus, with growth, the crisis will be solved. Of course, for a short while, public spending will have to be harnessed, but nothing that could deter growth. This will be the opportunity to introduce more efficiency and rationalisation in state’s management, which will only be favourable on the longer term.

Now the vision is laid down, Everstate’s government, with its international counterparts, only has to implement it through sets of policies. Repeating as mantra that growth must be obtained is notably insufficient, especially as the legitimacy of political authorities, and not only of the previous government, is questioned as a result of the ongoing crisis. Trust must be restored, investment and innovation boosted, consumption re-established.*

To achieve this, Everstate’s government decides first to give a boost to minimum wages, which will restore consumption and restart the engine. Furthermore, it will immediately implement “growth mainstreaming” throughout all policies.** Although Everstatans, in general, have a high education level and a large part of the population holds university degrees (see the power of Novstate), education and training are singled out as some of the structural long-term policies that need emphasis to be able to improve Everstate’s competitiveness and thus growth.***

Then, Everstate spearheads the creation of a new international meeting group for the resilience of the financial system, linked to the G-20, and involving the major financial private institutions. The new financial meeting group must bring back trust to markets and allow for a return to a proper flow of liquidity. It is expected that the need for and extent of regulation of financial markets will be intensely debated.

Finally, Everstate participates in an International Special fund for Sustainable Innovation and Green Energy (ISSIGE) that will help polities harnessing the ecological evolution and the increasing complexity of resources, and transform those into opportunities. A specific instrument will be organised around the Regional Union and should “fund pan-Regional infrastructure projects.”**** High level civil servants and famous Everstatans of universities, the classical media and the private sector join their colleagues in this high level new fund, built as a network as networks are more efficient than top down organisations, to determine its strategy and policies, identify projects that need funding, etc.

What are the impacts of those policies on the level of satisfaction of citizens? Will Everstate’s new government succeed, not only in bringing back growth, but also, thanks to the growth restored, in overcoming the main challenges and difficulties its predecessor faced? To know it, we need to re-run the model used for 2012 EVT, while including what happened in 2012 EVT and the Panglossy conditions and decisions, i.e. a level of tension that is high enough to have created polarisation, loss of legitimacy, protests, rise of a non-classical political movement, even if non violent and frozen for the moment.

To be continued

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References

* For a good summary of a specific, mainstream, approach to policies leading to growth, Tyler Durden, “The Keynesian Emperor, Undressed, ” Zerohedge, 05/21/2012. Contrast with a critical view, the excellent video of Prof Keen’s interview, as recommended by @Greentak: Megan Ashcroft, “In Conversation with: Steve Keen,” The Renegade Economist, 16 October 2011.

Interestingly as of 21 May, although now so many agree on the need for a “growth compact” or “growth pact,” we find few concrete policies and practical explanations regarding the how this will be done. Read, for example among many other, The Financial Times Editorial, “A pact for growth is vital for Europe,” FT, May 4, 2012; Martin Lowy, “The Soon-To-Be-Born European Growth Compact,” Seeking Alpha, May 1, 2012; Shai Ahmed, “‘Sexy’ Europe Growth Compact Inevitable; Greece to Stay: Pro,” CNBC, 17 May 2012; The Telegraph, “ECB chief Mario Draghi calls for euro ‘growth compact’,” The Telegraph, 25 April 2012; Debating Europe, “Will a “growth compact” go far enough?” 14 May 2012; Tyler Durden, “Overnight Sentiment: A Summit Here, A Summit There, A Promise Of Growth And QE Everywhere,” Zerohedge, 05/21/2012; Paola Subacchi and Stephen Pickford, “Broken Forever? Addressing Europe’s Multiple Crises,” Chatham House Briefing Paper, March 2012. Peter Spiegel, “Diplomats back EU ‘project bonds’ plan,” FT, May 21, 2012.

** See the example of “Gender mainstreaming,” as explained in Wikipedia.

*** Tyler Durden, “The Keynesian Emperor, Undressed, ” Zerohedge, 05/21/2012.

**** Adapted from Peter Spiegel, “Diplomats back EU ‘project bonds’ plan,” FT, May 21, 2012.

The Red (team) Analysis Weekly No49, 24 May 2012

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No49 – 24 May 2012 – Click on the image below to read on Paper.Li (best with mobiles & tablets)

Nighing an End? The main current worry is the future of the Euro and of Europe with its impact on social peace and on the world economy. More specifically, besides the rising Spanish problem, there are many speculations on an exit from Greece from the Eurozone. The number of posts and tweets, as well as their contradictory content shows the importance of the topic for actors, and related anxiety. It may also well be announcing that the moment of truth is drawing to an end.

The Power of Maps

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This gallery contains 8 photos.

Maps are both necessary tools for analysis and crucial delivery visuals for foresight and warning products. They constitute a very powerful type of delivery form, as they change both the world and the mind. The pivotal importance of maps and … Continue reading

Water Security Maps

Gallery

This gallery contains 7 photos.

(Updated 28 November 2012) Here we shall present maps (list, details and sample of maps below) related to global water security that are useful for both analysis and delivery of products. As new maps are created and found, they will … Continue reading

2012 EVT – New Government, New Opposition, Last Hope (Panglossy)

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. Alarmed by the rising difficulties and widespread discontent, the governing authorities decide to do something when new elections start. Dependent upon programmes created to face efficiently past challenges, prisoners of entrenched political groupings, comforted in their vision by the BRICS’ success and renewed optimism, the major parties campaign to come back to the order ante. As a result, habits and the existing system, once the new national representatives are elected and the new government starts ruling, are even more entrenched, almost ossified.

(The reader can click on each picture to see a larger version in a new tab - navigating map of posts is available to ease reading).

Yet, something unexpected, dismissed or rather minimised by observers, is also happening during the months leading to the election: the rise of small and sometimes polarised parties, accompanied by an increase in the political mobilisation outside currently eligible parties. In this, Everstate is just exemplifying what is happening all over the Western world.

For example, in May 2012, in Germany in North Rhine-Westphalia, the new Pirate Party again fares very well. In France, the results of the first round of the Presidential elections shows a strong rise of parties on the extreme left and right of the political spectrum. In Greece, thirty-two parties compete during the first May elections, and seven, including those positioned at the extreme, win seats in Parliament. Meanwhile, the Occupy and Democracia Real Ya! – also known as Indignados – movements, born out of Spain’s mobilisation a year before, show their continuing presence, with various protests staged on May Day, then between 12 and 15 May, with varying participation rates. Signs of polarisation can also be found here. #Anonymous, in general, backs those movements from and in the virtual world, besides other operations, and represent a political force and not a criminal activity as some would like to interpret it.

Indeed free association, free speech and free assembly, enhanced by the new technological means of communication and mobilization, added to the general dissatisfaction while security is still being sought, create new extra-parliamentary organisations and mobilizations because the programmes of the classical parties and existing parliamentary groupings do not answer anymore the needs of the citizens and of the nations. The fluidity of the situation, the diversity of the types of organisations and the various stages of polarisation are symptoms of systems trying to evolve and redesign themselves, of the need for radically new programmes, which are in the making, as the underlying socio-political model are outmoded and do not offer any easy efficient solution.

As far as Occupy Everstate is concerned, they have to face some very difficult issues. What gave them their strength and made them truly representative, notably in terms of concerns and identification of crucial issues for the overall security of the nation, their faith in a fully democratic process, also constitutes an impediment as it slows and even sometimes block their decision process. Their main means of action, peaceful protests and sit-ins, so far has not allowed seeing their demands satisfied. Their successes are however far from negligible as they are now part of the political landscape, and are thus heard, when one year ago they were systematically ignored, and as they have succeeded in raising awareness to the plight of the many. Yet, the old ideas and habits they fight are as pregnant, powerful and ruling as ever.

Some groups within the movement are getting tired of obtaining nothing, of seeing the status quo continuing, while they start meeting difficulties to mobilise people. They are following the American debate existing over the “diversity of tactics.” Should they move away from the essential original non-violence – including the respect of laws and of property – of the movements to the “diversity of tactics” which includes also “property damage and armed retaliation against the police” but NOT “extremist tactics such as planting bombs and armed insurrection? (Bramhall, March 2012). True to the democratic foundation of the movement, the general answer is to convene a General Assembly to vote. However, lengthy debates have now been going on for days and nothing is solved. Furthermore the example of the Pirate Party also tempts Occupy Everstate. Should they register formally? This would allow them, maybe, entering parliament and developing their programme, and more important, getting things done (for the leadership and organisation debate going on in Spain, see Tremlett, May 2012). Yet, would they not also loose part of their soul, of their raison d’être? The tension is growing within the movement, while some actions abiding to the “diversity of tactics” start, still very rare, but yet, they happen.

The result of the new elections seems to freeze the contractions that agitate Occupy Everstate. Could this new government, maybe, bring Everstate back to where it was before life became so hard, before unfairness became unbearable, before the only way forward seemed to go to the streets to be heard or even worse? Nobody wants to sleep in the street, to be poor, to be condemned to unemployment, and even less to fight and risk one’s life. This hope, this last hope, isn’t it worth giving it a chance?

To be continued

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References

Stuart Jeanne Bramhall in “Debating Violence in the Occupy Movement,” Take The Square, 3 March 2012.

Giles Tremlett, “Spain’s indignado protesters face anniversary crackdown,” Guardian.co.uk, 11 May 2012.

Images

Official logo of the Swedish Pirate Party (Piratpartiet) by Piratpartiet [Public domain], via Wikimedia Commons.

The OccupyCal General Assembly approves of… something. November 15 2011 by Daniel Parks from Berkeley, United States (Fingers Up) [CC-BY-2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons. This image was originally posted to Flickr by D.H. Parks at http://flickr.com/photos/8073513@N03/6349212141. It was reviewed on 21 November 2011 by the FlickreviewR robot and confirmed to be licensed under the terms of the cc-by-2.0.

The Coal Sigils

The Coal Sigils, is the first of The Sigils dedicated to energy security, a series of daily papers scanning the horizon for weak signals related to various issues relevant to the security of societies, polities, nations and citizens. They use Paper.Li as curation platform.

Why a Sigils focused on coal?

According to a new release by the IEA,

“As of March 2012, approximately 40% of the world’s electricity needs were provided by coal. Yes, coal is the second source of primary energy after oil.”

Furthermore, considering the progressive or rapid abandonment of nuclear energy, as in Germany or in Japan, which shut off its last reactor on 5 May 2012, coal could very well see an increase in demand, at least for a few years, until alternative energy mix are implemented.

Besides electricity, coal is also used in steel and aluminium production, in the manufacture of cement, increasingly to produce transport fuels from liquefied or gasified coal (Survey of Energy Resources, Nov 2010, p.3).

The use of coal varies according to regions, with a demand increase forecast in Asia, and, on the contrary, a diminution in the West (without considering the nuclear free policies impact).

The environmental and health impacts of coal mining, processing and usage (World Coal Association, 2005, 2012) make it a highly questionable source of energy, although many efforts are made to struggle against them.

Last but not least, data regarding proved reserves seem to be controversial, which could create surprise,* while the unequal distribution of coal exports (90% originate from six countries: Indonesia, Australia, Russia, South Africa, Colombia, and the United States) create the potential for tension (IEA 2012).

All those points deserve monitoring if we are to avoid surprise and develop proper foresight in energy security.

The Coal Sigils can be read below or by clicking on the title to access the Paper.li platform (best for mobiles and tablets).


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*Recent surveys tend to emphasise plentiful reserves. However, the November 2010 Survey of Energy Resources,  by the World Energy Council details the difficulties surrounding the gathering of data and related assessments, pp.1-3. Other estimates on potential Peak Coal can be found, among others in Energy Watch Group, Coal: resources and future production, 2007; Kavalov, B.  and S. D. Peteves, The Future of Coal, Institute for Energy (IFE), prepared for European Commission Joint Research Centre, 2007. Slides; Vernon, Chris  Coal – The Roundup, The Oil Drum Europe, 2007; Li, Minqi, Peak Coal and China, The Oil Drum, July 4, 2011. See also, Rutledge, David, “Estimating Long-Term World Coal Production with Logit and Probit Transforms,” International Journal of Coal Geology, Jan 2011; US National Academy of Sciences, Coal – Report in Brief, 2007.

References

Cusick, Daniel  and ClimateWire, “Asian Demand Forecasts Boom for Coal,” Scientific American, May 14, 2012.

IEA, FAQs: Coal, 2012

The Associated Press, “Japan shuts off nuclear power as thousands celebrate – Island nation is without electricity from nuclear power for first time in four decades,” May 5, 2012 – CBC News.

World Coal Association, The coal resource a comprehensive overview of coal, 2005

World Coal Association, Coal – Energy for Sustainable Development, 2012.

World Energy Council, among many publications, Survey of Energy Resources, November 2010.

Images

Charbon après lavage by By Apphim (Charbon) [GFDL or CC-BY-SA-3.0-2.5-2.0-1.0], via Wikimedia Commons.

Shan sigil by Vincent Ramos (Dessin personnel manuscrit d’un caractère chinois dans une graphie ancienne. Publié sous licence <a href=”/wiki/GFDL” title=”GFDL”>GFDL</a>. Cette image est aussi présente dans mon site web, sous copyright).

The Red (team) Analysis Weekly No48, 17 May 2012

Link

Unfortunately, after Paper.Li’s latest upgrade, No 48 17 May was replaced by an unedited 18 May edition. Only the editorial and photo of the first page below survived… On the bright side, we get back archives, but not for the past numbers.

No48 – 17 May 2012 – Click on the image below to read on Paper.Li (best with mobiles & tablets)

Besides the usual now strong signals on Iran, the fiscal crisis, Europe, water security, energy, etc. we can note this week that tension has risen at least one notch towards internal strife and turmoil and that an unusual number of signals are about India (which could also be linked to technical reasons, e.g. a larger use of twitter in India).

Occupy, Los Indignados: towards radicalization?

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This gallery contains 10 photos.

The polarisation that can be observed in recent elections in 2012, notably in Greece and in France for the first round of the Presidential elections, appears to also take place within some of the current Opposition Movements existing outside the … Continue reading

2012 EVT – Scenario 2 – Panglossy: Same Old, Same Old

Last weeks’ summary: In 2012 EVT, Everstate (the ideal-type corresponding to our very real countries created to foresee the future of governance and of the modern nation-state) knows a rising dissatisfaction of its population. Everstate is plagued by a deepening budget deficit and an increasing need for liquidity, with a related creeping appropriation of resources while the strength of central public power weakens to the profit of various elite groups. An outdated world-view that promotes misunderstanding, disconnect and thus inadequate actions presides to its destiny. Henceforth, the political authorities are increasingly unable to deliver the security citizens seek. Risks to the legitimacy of the whole system increases. Alarmed by the rising difficulties and widespread discontent, the governing authorities decide to do something. Of the three potential scenarios or stories that follow, we now start the second, “Panglossy: Same Old, Same Old,”* after having seen the end of Mamominarch: Off with the State.”

(The reader can click on each picture to see a larger version in a new tab - navigating map of posts is available to ease reading).

In 2012 EVT, as Everstate’s governing authorities and more specifically national representatives start thinking they should do something to face the various difficulties they meet and notably the rising discontent, a new period of elections opens up. Thus, what matters to the national representatives now is to win the elections for a new term. It is not anymore a fear of losing power because their legitimacy as efficient rulers (being able to deliver what they have been elected for) is questioned. They need now to convince citizens that they are the best to represent the nation and govern it and that they are better than their usual competitors.

As political parties are built around a programme and according to specific lines of thoughts, the rationale of the electoral competition asks them to follow the core of those programmes to demarcate themselves from their adversaries. When each party was formed, this formation led to the construction of a unique program upon which various national representatives and parliamentary groupings agreed. This program was also built to allow for the mobilization of electors needed to see the representatives elected. However, as with the way ideological and normative belief systems and socio-political models are constructed, this mobilisation was done in the past. The problems it sought to answer are past challenges. Furthermore, it could only be built according to the socio-political model and normative framework of that time. Over time, with each election, each of the two programmes has evolved but could do so only within relatively tight boundaries. Hence, the two main parties about to dispute the elections in Everstate are both abiding by the modernizing norm, constructed around materialistic improvement, each representing, as in most of the liberal world, two ends of the same spectrum, one of social-democrat inspiration, the other with a more conservative stance.

Thus, now, if the real severe problems faced by the nation must be considered, solutions can nevertheless only be envisioned within the framework of those existing programmes, as well as within the existing socio-political model and norms. For the two major classical parties, trying to change their framework and their programme in a very substantial way would mean risking changing the existing mobilisation forces and upsetting existing parliamentary groupings, thus risking losing the elections, which, ultimately would imply not being in power.

Battles are thus pitched on relatively minor points, when seen from the point of view of the huge challenges the nation must face. From the point of view of many people who are not only electors, but also those very people who seek security, experience pressures in their everyday life and are increasingly dissatisfied, such battles contribute to further de-legitimise whoever will become the nation’s representatives, thus the government, and indeed the existing parties’ system.

Meanwhile, a combination of apparent renewed optimism, notably expressed through better statistics, for example a slightly rising consumers’ spending, especially abroad, through bullish financial markets  and stock exchanges worldwide, a slow down of protests both within Everstate and worldwide, with a fear that those protests could start again, tends to comfort the potential nation’s representatives in the validity of their old aims and programmes and in their wish to come back to the situation ante, i.e. before everything started to unravel. Chief among those aims, Everstate must obtain economic growth again. The crisis is severe, indeed, but it is certainly temporary as those optimistic signs show. Unfavourable, negative trends are still at work, and those must be faced and stopped. But the goal is clear and the framework for doing so is pristine, and it may only work, as it has always worked since the parties were created.

The rise of the BRICS (Brazil, Russia, India, China, South Africa), prompted by the current modernising and materialistic paradigm, only fuels this vision. Be they upheld as a threat against which one must struggle or as new partners with whom one must cooperate, their recent success is one more evidence of the correctness of the existing system. As a result, the awareness of the new pressures that had started to emerge recedes and those are considered as not really important or, if they are, their timing is uncertain, thus, if ever such threats materialise, it will be later.**

Hence, nothing fundamentally changes. On the contrary, habits and the existing system, once the new national representatives are elected and the new government starts ruling are even more entrenched, almost ossified. 

Yet, something unexpected, dismissed by observers, is also happening during the months leading to the election. To be continued

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* The name for this scenario, Panglossy, comes from the famous character Pangloss in Voltaire‘s work Candide ou l’Optimisme (Candid : or, All for the Best – 1759). Candide is an attack on Leibniz’s optimism, seen as absurd in the light of the many ills of the world. The absurdity of optimism is notably conveyed through the explanations for the series of  catastrophes met that Pangloss, Candide’s preceptor, gives and that always emphasise that “all is for the best.”

** Note that the absence of interest existing on timing and the sparse research on this factor may only ease the ability to deny reality.

Images

A frontispiece of Voltaire’s Candide (Paris : Sirène, 1759). It reads, “Candide, or the Optimism. Translated from the German by Dr. Ralph.” [Public domain], via Wikimedia Commons.

This file comes from the website of the President of the Russian Federation. Kremlin.ru [CC-BY-3.0 (http://creativecommons.org/licenses/by/3.0)], via Wikimedia Commons.