February 27, 2007 | Graham

No blood for oil part 2



“No blood for oil” – the defining chant of the anti-Iraq war protestors. Let’s assume for a second that they were right, that the US action was all based on access to oil. Why should that preoccupation only apply to Americans? What if it applied to Iraqis too? What if much of the insurrection were driven by a lust for a share in the oil wealth of the country and a fear that one group or another would miss out?
Well, you’d solve the insurrection by coming up with a mechanism for sharing oil wealth in a way that was seen as equitable. Which might be just what the Iraqis have pulled-off, according to this New York Times report

“The draft law approved by the cabinet allows the central government to distribute oil revenues to the provinces or regions based on population, which could lessen the economic concerns of the rebellious Sunni Arabs, who fear being cut out of Iraq’s vast potential oil wealth by the dominant Shiites and Kurds. Most of Iraq’s crude oil reserves lie in the Shiite south and Kurdish north.
The law also grants regional oil companies or governments the power to sign contracts with foreign companies for exploration and development of fields, opening the door for investment by foreign companies in a country whose oil reserves rank among the world’s three largest. “

So, if foreign investment does arrive and there is oil wealth to distribute, perhaps the insurrection will solve itself. Of course, if it does, the solution will prove to be one of the things that the Left opposed – privatisation of some of Iraq’s mineral resources.



Posted by Graham at 9:38 pm | Comments (2) |

February 26, 2007 | Graham

McsKewered – Labor fixes Howard’s expectations management



The preselection of Maxine McKew by Labor for Bennelong could be just what the PM ordered. The biggest risk to Howard this election was a protest vote. It was probably the only way that Beazley was going to win. One also suspects that the size of the vote for Rudd is also not so much as a vote for him, but a kick up the pants for Howard.
But perceptions change with events. Rudd’s high approval rating has made him the favourite, and Howard the under-dog. McKew’s preselection would confirm that. It should also help Howard.
Rudd is in danger of running the first Australian government to have lost office before it has even been elected. (Actually, there was one other, the Hewson government that lost the 2001 election to Paul Keating). By acting as though he is president elect he draws all the focus on what he will do in office, and away from Howard.
As yet there is little to indicate what the Rudd government will do, but we have an inkling of what it will be like. It will consist of “A” listers looking straight down their noses and TV cameras and telling us all what is good for us – a replay of the Keating government. Get ready for the “Queen Bee” state.
McKew is a fitting ambassador for that state – a high profile outsider who will be imposed on the branches in Bennelong. She is potentially a good talisman for Howard of what Mark Latham called “Tourists” and “Residents”, a term that taps into the dynamic that has shaped the last 4 federal elections – the battle between urban elite and ozzie culture.
While Rudd looks formidable at the moment and is enjoying “playing with Howard’s mind” the risk for him is that the collective electoral mind is already set against his play book. Rudd should enjoy the spoils of office while he can.



Posted by Graham at 9:16 am | Comments (7) |
Filed under: Australian Politics

February 22, 2007 | Graham

Why Howard and Blair are at odds on Iraq



There is a simple reason why John Howard is sending extra troops to Iraq and Tony Blair is withdrawing them. There are votes for Howard on Iraq, but none for Blair.
Blair’s constituency is by-and-large anti-war. While there are some left-of-centre hawks, like Nick Cohen, they are significantly outnumbered by the peacenicks. Blair’s backing of the American action in Iraq was much braver than John Howard’s.
For Howard, the biggest political reason for backing the Iraq war was the support that he solidifed from blue-collar conservative voters.
When politicians are in trouble, as Blair and Howard are (although Blair has already announced the time-table for his own withdrawal), the sensible strategy is to first shore-up core support, which is what both are doing.
That part of middle and upper Australia that supports Howard doesn’t do so because of foreign affairs policies. It votes for him on economic issues. It’s the blue-collar conservatives who are motivated by Iraq and refugees. By running on foreign affairs Howard alienates some of the upper-demographics, particularly those in the educational and caring sectors, but he gains the solid loyalty of a group that more often than not votes Labor at other levels of government. So far it has been a winning combination.
I suspect that this group is not being properly captured at the moment by surveys. Either that, or the middle class has succumbed to Rudd’s charm in huge numbers. For Howard, keeping all his constituencies together is a delicate balancing act. He’ll be hoping that an additional 70 soldiers is a large enough token of goodwill for one group,while not sufficiently large to upset the other groups.



Posted by Graham at 4:53 pm | Comments (6) |
Filed under: Australian Politics

February 13, 2007 | Graham

Deputy Sheriff shoots the Marshall



Vladimir Putin steps onto German soil and almost immediately throws the gauntlet down to the US, raising the spectre of another Cold War and what is the Australian commentariat and Opposition obsessed with? John Howard’s comments about a junior senator’s bid for the White House and his policies on another international issue – Iraq.
Howard won’t be complaining. Labor’s already lost two elections on foreign affairs, and he’d love to help them do it again.
Howard’s comments were good politics (whether they were diplomatically nice is another issue). As Putin’s comments show – major powers don’t have a problem criticising other major powers if they think it is warranted and in their own interest. Indeed, the US Ambassador quickly bought into Australian politics during the last election campaign when he criticised Latham’s position on Iraq.
Out around the barbeques, no-one’s going to be worried about whether the diplomatic cocktail circle choked on their olives, they’ll be glad that an Australian leader was happy to speak up in the national interest.
They’ll also be bemused to think that so many Australian commentators and US politicians think that the Iraq War is just a matter of domestic US politics, rather than being a major international one. We’ve got soldiers and our own national security at stake in this war. Everyone knows that we got into it to pay the premium on our defense pact insurance policy with the US. If the US thinks Iraq just comesS down to their own national interest and bugger their allies, then that is more damaging to all their alliances than anything John Howard has said.
If Obama, or anyone likely to get elected, is going to squib on the deal, then they should look elsewhere for support to give them international credibility next time they want it.
Average Australians will also be reminded that Howard has been lampooned as Bush’s Deputy Sheriff, but they won’t see these comments as those of a mere side-kick. They’ll contrast them to those of former ALP governments when we were supine to every south-east Asian leader who took umbrage for being called “recalcitrant” or who buttered up the Prime Ministerial ego by declaring him a “son”.
While it’s the consensus commentariat position to criticise Howard on this issue, it should be remembered that the unfashionable most often inherit the earth. Rudd’s best attribute is that he is a nerd, his fatal flaw may be that he wants to be fashionable, something that Howard has never wanted to be, and which has helped him to at least two election wins.



Posted by Graham at 12:56 pm | Comments (2) |
Filed under: Australian Politics

February 12, 2007 | Graham

Keep the bastards honest – another reason to vote Howard.



Friday’s breakfast meeting between Rudd and the Labor State Premiers suggests Howard may have another potent weapon to shift voters away from Rudd.
Labor is in power in every state in Australia, and with the possible exception of South Australia, is almost uniformly seen as incompetent and corrupt. The only reason that it holds power is because the Opposition in each state is regarded as being even worse. The dynamics are quite different at a federal level. While voters don’t particularly warm to Howard they don’t regard him as corrupt, and they do think he is competent.
Out of all the governments in Australia, only one is seen to be truly functional – John Howard’s.
In fact, if you look at many of the problems identified by Kevin Rudd, they are quite frequently problems which have been created by Labor state governments. Education, which was the basis of his pitch in his Australia Day ad, is a state problem. Local water infrastructure, where Rudd thinks some of Howard’s $10 billion fund ought to go, is a state issue. So is the shortage of tradespeople. The problems in health aren’t federal, they’re state too.
The dysfunctionality of the states can be clearly seen in the negotiations over the Murray-Darling. It appears that their only real objection to the Prime Minister’s scheme is that he is not buying them off with enough money.
Rudd’s plans to reform federalism can be seen as a tacit acceptance of the misgovernment by Labor of the states.
The states more than tacit endorsement of Rudd can be seen as part of a scheme to prop-up their own maladministration by putting their own man in charge of the federal cookie jar.
This doesn’t mean that Rudd is just a cog in the Labor machine, just that he can be made to look that way. It’s a perception that Rudd and the Premiers reinforce every time they decide to co-operate and sit down together. Rudd doesn’t help when he quotes his time with Wayne Goss, a former Labor state premier, as proof that he has economic credentials.
Australians have a history of voting for checks and balances. It’s most commonly seen in Senate voting patterns and has been the motivating factor that has kept the Australian Democrats viable for around 30 years. That doesn’t mean it has to be limited to the Senate. I think it will be a theme that Howard will develop over the next nine or so months.
The games not up for Howard yet, even though the latest polls must be very discouraging.



Posted by Graham at 6:19 am | Comments (4) |
Filed under: Australian Politics

February 09, 2007 | Graham

Flannery of the Overflow



Posted for William York with particular apologies to Andrew Barton “Banjo” Paterson
I HAD written him a letter which I had, for want of better
Knowledge, sent to where I met him on the Murray, years ago,
He was boating when I knew him, so I sent the letter to him,
Just on spec, addressed as follows, “Flannery, of The Overflow”.
And an SMS came directed from a source quite unexpected,
(And I think it was dictated from a river bank or bar)
‘Twas the Prime Minister who wrote it, and verbatim I will quote it:
Flannery’s gone all atmospheric, and I don’t know where we are.
With Australia Day flattery, visions come to me of Flannery
Gone a-driving “down to Canberra” where the politicians go;
With the journalists and stringers, and a pointing of his fingers,
Flannery draws a future of disasters none of us will live to know.
And the Greens come out to meet him, and their kindly voices greet him
While the politicians ponder an election to be won,
And he sees the vision horrid of our country turning florid,
With a baking sun, a rising sea and little being done.
Gazing up at Kirribilli, I wonder will the “Silly
Season” finish with a whimper or a bang
Will we all start getting warm, or is this the perfect storm,
Orchestrated by Al Gore and echoed by the noisy local gang?
It seems to me Prime Minister that there is something here quite sinister
In the push to put our economics in a great big melting pot.
With the present calls for action, you will need to find some traction
For ideas that cool the hot heads so we don’t destroy our lot.



Posted by Graham at 4:29 pm | Comments Off on Flannery of the Overflow |
Filed under: Australian Politics

February 07, 2007 | Graham

Quantum mechanics and entrepreneurs



It’s 107 years since Max Planck first theorised quantum mechanics, but it’s only lately that people appear to be applying it to all sorts of non-physical fields. I recently wrote about research where it was hypothesised that causation could run both forward and backwards drawing on quantum mechanical understandings.
Today a press release comes across my desk suggesting that entrepreneurs can know the result of something in advance of when the result can be calculated, which is what makes them good entrepreneurs. Sounds whacky, and I wouldn’t put much faith in it, but here is the press release – someone with academic tenure thinks it’s a good idea.

Do successful entrepreneurs think differently? This was the question posed by Professor Murray Gillin, Australian Graduate School of Entrepreneurship, and his colleagues in a recent scientific study.
“We really wanted to know whether successful entrepreneurs respond to and assimilate information differently to managers,” says Gillin. “We also wanted to know whether this contributes to how entrepreneurs make decisions? In short, we wanted to know if entrepreneurs have that special something called ‘intuition’.”
Professor Gillin will speak on the topic of entrepreneurial intuition at the 4th Australian Graduate School of Entrepreneurship Research Exchange Conference in Queensland on 6-9 February. This will include looking at results[1] from the study, which are published in a paper by Gillin, Lapira, Maccraty, Bradley, Atkinson, Simpson and Scicluna.
“The results from the study are promising,” says Gillin. “They suggest that ‘intuition’ really does exist and that it is prevalent in entrepreneurs,” says Gillin.
Gillin and his colleagues studied a total of eight serial entrepreneurs to determine the presence of intuition by measuring their physiological response to certain stimuli or information. In the study, ‘intuition’ was defined as that part of entrepreneurial decision and action that is not based on reason or memory, but on an awareness of energetically encoded information of the future.
The results indicated that information was received by the entrepreneurs autonomic nervous system some six to seven seconds before the outcome of an investment choice was known. Also, physiological measures were able to detect intuitive perception of a future outcome in a majority of the entrepreneurs.
“With this new understanding,” says Gillin, “now plan to develop learning tools in a master class context for repeat entrepreneurs.”

Love that phrase “serial entrepreneur” – it’s another term that’s taking over after spending years only twinned with “killer”.



Posted by Graham at 8:37 pm | Comments (1) |
Filed under: Science

February 07, 2007 | Graham

Climate change could work against Rudd



You wouldn’t think it from yesterday’s question time, but global warming could be a bigger political problem for Rudd than Howard. Howard is currently being criticised for appearing to suggest that the link between CO2 and climate is still unproven. That may yet be the case, but it is an untenable position for the leader of any country to take at the moment.
But there is more than one untenable position on the issue when it comes to electors. One of those is to demand that Australia take more than symbolic action to fix the problem.
Howard holds government because of the compact he has made with working class conservative Australians. While global warming is currently the highest rating issue on the news (three out of the four AGW piece we’ve published so far this year are in the top ten percent of most popular articles for that period), that doesn’t mean that it rates outside the news. Average Australians are much more likely to be worrying about what brand of air-conditioner they are going to buy than reducing their “carbon footprint”. And they remain deeply suspicious of “trendy academics” without much “real world” experience.
Rudd is an enthusiast for all things AGW, which is where Howard’s potential benefit lies. If he is going to win the next election Howard needs to renew his compact with blue-collar Australia. He can do this by painting Rudd as a trendy inner-city elitist who wants to impose every currently fashionable notion on Australians, whether or not they work.
Amongst these notions is ratifying the Kyoto protocol. Yesterday’s announcement by the Chinese government that while they accept greenhouse gases are a problem, they don’t intend to stop building CO2 emitting power stations because they can’t afford to, shows just what a political problem it is.
For example Labor needs to win the new seat of Flynn, which is centred on Gladstone in Queensland, with the largest alumina plant in the world. Alumina uses so much electricity, it is sometimes described as “solid electricity”. Howard can go to Gladstone and say:
“If you vote for Kevin Rudd he will sign Australia up to the Kyoto protocol. That means that your power station and your alumnia refinery will go overseas to somewhere like China. And the sum total of difference that will make to global warming will be zero. In fact, it will be less than zero. We will be worse off because not only will our jobs go overseas, but they will go overseas to a country using dirty electricity which will emit even more pollution into the atmosphere than we do.
But what would you expect from Kevin Rudd? He says he has the economic credentials to make Australia strong because he ran Queensland under Wayne Goss. Well, we all remember how Wayne Goss gutted rural and regional Queensland under the fashionable economic theories of the times. Some things never change. So who do you trust to fix global warming and keep you in a job?”
Howard’s taskforce which reported today in favour of carbon trading is a plank in that strategy, as his his other inquiry into nuclear power.
Howard is putting himself in a position where he can pit “bad” Kyoto against “good” Howard policy; trendy Labor versus trustworthy Howard. I’m not putting any bets on the next election yet.



Posted by Graham at 1:21 pm | Comments Off on Climate change could work against Rudd |
Filed under: Australian Politics

February 06, 2007 | Graham

Putting heart into fast food



I was recently very critical of a Cancer Council NSW study into fast food advertising. The award of Heart Foundation ticks to some McDonald’s meals puts the study into more trouble.
McDonald’s has paid $330,000 to the Heart Foundation, and nine of its meals have qualified. Before anyone suggests the Foundation can be bought, this is the standard fee and goes to pay for the cost of the program, not fudging the standards applied. Any company with a Heart Foundation tick has paid a similar fee.
This goes to show that not all fast foods are the same. In fact, for some time McDonald’s have been doing what every economics text book says they should do in a competitive market – change to meet consumer demands. They provide nutritional break-downs of the various foods on the packaging, and you can buy salads, deli sandwiches, cereals, and a range of non-soft drinks, including mineral water. Long gone are the days when the main choice was whether or not to have fries with your Big Mac .
The Cancer Council NSW study looked at advertising for “unhealthy foods” and concluded that producers of these goods were breaking the national guidelines in their advertising of them. So, how do you define an “unhealthy food”. The study appears to have disappeared from the council’s website, but from memory, any takeaway food was defined as “unhealthy”. This is an unsatisfactory way of defining nutritional content. It means an ad for a high calorie Big Mac is equal to one for a Subway Sub, or now, one of McDonald’s Heart Foundation approved meals.
But apparently to the ideologues at the Cancer Council, all takeawy foods are equal. I don’t think consumers will agree with them. I’m not so sure that this will lead to slimmer citizens however. It’s not the quality of food that puts on weight, so much as the quantity. In a society where food is plentiful, so too will be excess human pounds.



Posted by Graham at 5:23 pm | Comments (1) |
Filed under: Health

February 05, 2007 | Graham

IPCC ought to be feeling the heat.



Imagine the outcry if BHP published the executive summary of its results, but kept the accounts under wraps for another couple of months. ASIC and the stock exchange would both issue notices, financial journalists would release thunderbolts from their op-ed columns and the shares would take a tumble, that’s if they weren’t suspended.
Well, that’s exactly what the IPCC has done with the 4th Assessment Report on Climate Change, yet the world’s journalists appear indifferent. The document which has been reported by the world’s media as the report can be downloaded from here (pdf >2mb). It is a “Summary for Policy Makers” and doesn’t appear to reference a single scientific report by name (although it refers to a few in general terms).
One can only guess at the reasons for this. One is that they want to escape any scrutiny of the accuracy of their summary. Another is that this is a planned public relations assault. After the initial uncritical reviews they can expect another eddy of activity each time one of the reports of each of the three working bodies is subsequently released.
What trust can we put in this “Summary” if we aren’t allowed to see how they arrived there? What’s wrong with all those budding Woodward and Bernsteins? And when is someone going to put some real heat on the IPCC?



Posted by Graham at 3:17 am | Comments (11) |
Filed under: Environment