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Friday 30 September 2011

Journalist opens a Public Register of income. I wish all others follow.

A register of journalists' interests would help readers to spot astroturfing

Pieces paid for by lobby groups would become apparent if, like me, other writers opened a public registry of their interests
  • MPs expenses
    Expenses submitted by David Heathcoat-Amory MP for horse manure.
     
    Journalists are good are dishing it out, less good at taking it. We demand from others standards we would never dream of applying to ourselves. Tabloid newsrooms fuelled by cocaine excoriate celebrity drug-takers. Hacks who have made a lifetime's study of abusing expense accounts lambast MPs for fiddling theirs. Columnists demand accountability, but demonstrate none themselves. Should we be surprised that the public place us somewhere on the narrow spectrum between derivatives traders and sewer rats?

    No one will be shocked to discover hypocrisy among hacks, but there's also a more substantial issue here. A good deal of reporting looks almost indistinguishable from corporate press releases. Often that's because it is corporate press releases, mindlessly recycled by overstretched staff: a process Nick Davies has christened churnalism. Or it could be because the reporters work for people who see themselves, as Max Hastings said of his employer Conrad Black, as "members of the rich men's trade union", whose mission is to defend the proprietorial class to which they belong.

    But there are sometimes other influences at play, which are even less visible to the public. From time to time a payola scandal surfaces, in which journalists are shown to have received money from people whose interests they write or talk about. For example, two columnists in the US, Doug Bandow and Peter Ferrara, were exposed for taking undisclosed payments from the disgraced corporate lobbyist Jack Abramoff. On top of the payments he received from the newspapers he worked for, Bandow was given $2,000 for every column he wrote which favoured Abramoff's clients.

    Armstrong Williams, a TV host, secretly signed a $240,000 contract with George W Bush's Department of Education to promote Bush's education bill and ensure that the education secretary was offered slots on his programme. In the UK, a leaked email revealed that Professor Roger Scruton, a columnist for the Financial Times and a contributor to other newspapers, was being paid £4,500 a month by Japan Tobacco International to write on "major topics of current concern" to the industry.

    These revelations were accidental. For all we know, such deals could be commonplace. While journalists are not subject to the accountability they demand of others, their powerful position – helping to shape public opinion – is wide open to abuse.

    The question of who pays for public advocacy has become an obsession of mine. I've seen how groups purporting to be spontaneous gatherings of grassroots activists, fighting the regulation of tobacco or demanding that governments should take no action on climate change, have in fact been created and paid for by corporations: a practice known as astroturfing. I've asked the bodies which call themselves free-market thinktanks, yet spend much of their time promoting corporate talking-points, to tell me who funds them. All but one have refused.

    But if I'm to subject other people to this scrutiny, I should also be prepared to expose myself to it. So I have done something which might be foolhardy, but which I feel is necessary: I've opened a registry of my interests on my website, in which I will detail all the payments, gifts and hospitality (except from family and friends) I receive, as well as the investments I've made. I hope it will encourage other journalists to do the same. In fact I urge you, their readers, to demand it of them.

    Like many British people, I feel embarrassed talking about money, and publishing the amounts I receive from the Guardian and other employers makes me feel naked. I fear I will be attacked by some people for earning so much and mocked by others for earning so little. Even so, the more I think about it, the more I wonder why it didn't occur to me to do this before.

    A voluntary register is a small step towards transparency. What I would really like to see is a mandatory list of journalists' financial interests, similar to the House of Commons registry. I believe that everyone who steps into public life should be obliged to show who is paying them, and how much. Publishing this register could be one of the duties of whatever replaces the discredited Press Complaints Commission.

    Journalists would still wield influence without responsibility. That's written into the job description. But at least we would then have some idea of whether it's the organ-grinder talking or his monkey.

Tuesday 27 September 2011

Should government reward 'good' businesses?


By Robert Peston on the BBC
A happier, more cohesive society would be filled with businesses that offer rich and fulfilling employment, don't pollute, don't impose big risks on taxpayers, pay taxes that more than cover their net drain on social resources, train the younger generation for life in an uncertain economic world, and so on.



It's a lovely ideal that the market hasn't delivered, because the market doesn't always reward those businesses that do good things, or penalise businesses that do bad things.



To put it in highfalutin' economic terms, there are plenty of externalities generated by companies: these are the various impacts that companies have on society and the economy that aren't captured by the pricing mechanism.



That is one reason why we have government, to deal with those externalities. Right now, for example, the current government is amending the tax system to impose bigger penalties on large emitters of carbon dioxide. And it has already imposed a special levy on banks, because of its view that the financial risks taken by banks impose a potential cost on taxpayers, for which the banks have not been paying.



These judgements about the good and bad that companies do are never simple to make or uncontroversial. Think about the threats that heavy energy users and banks have been making about jobs going abroad if the special tax burdens they face aren't lifted.



In recent times, governments have tended to penalise negative externalities - like pollution - while ignoring positive externalities. And the reason is largely to do with history: providing state rewards for businesses that are deemed to be good is felt to be uncomfortably close to the failed industrial policies of the 1960s and 1970s of picking so-called winners.



So should government play a more active role in rewarding the good that companies do, while also imposing new penalties on a wider number of bad effects?



The Labour leader appears to think so. Here is an extract from the official briefing notes for the speech he is to make later today at his party's annual conference:



"Ed Miliband will call for radical changes in the way businesses are rewarded to create a something for something deal in our economy.



"He will challenge the idea that all businesses are the same and will call for rewards and incentives linked to the long-term value they create and the wealth they build.



"He will say businesses which secure governments contracts will be required to offer young people apprenticeships. And he will open up the prospect of major reforms to the tax and regulation system to create incentives for companies that make a wider contribution to the economy, e.g. through long-term investment or building skills."



In concrete terms, what he means is "Rolls-Royce good, Southern Cross bad".



He wants to support companies that win large export orders, collaborate with universities to develop valuable intellectual property and provide highly skilled manufacturing jobs in Britain (like Rolls). And he wants to penalise those that place big financial bets, where the winnings (if any) are restricted to a few well-heeled owners, and losses fall on innocent bystanders.



Which is all very well, except that it is hard to create general rules that define all the good businesses and all the bad businesses in a fair and accurate way.



For example, even if a Labour government wished to discriminate against businesses owned by private equity, on the basis that it believed they were more likely to invest too little in training and R&D, that would not necessarily have spared the residents of Southern Cross's care homes from heartache and anxiety - because it was listed on the stock market at the time that it collapsed.



What is more, not all private equity businesses take the kind of extreme financial risks that Southern Cross took when it was owned by private equity. And if your bugbear happens to be another species of debt-financed institution, the hedge funds, don't forget that some of them have been more effective than regulators at spotting dangerous bubbles in markets.



Also, judgements about the merits of businesses and business leaders are subject to change. So for example I understand that in an early version of his speech, Ed Miliband was going to say that it was wrong of the last Labour government to reward Sir Fred Goodwin - widely seen as responsible for the calamitous near-failure of Royal Bank of Scotland - with a knighthood (he may yet say this).



But this is to forget that until Royal Bank of Scotland became obsessed with growing bigger and bigger from 2005 or so and onwards, Goodwin was widely seen as one of the more talented British business leaders - who had overseen a highly effective and long overdue modernisation of NatWest's systems and network.



Which is why Mr Miliband will - I am sure - resist the temptation to argue that ministers should reward or punish companies, with special grants or exceptional taxes, on a case by case basis.



That would almost certainly be the road to industrial desertification and corruption.



Does that mean there is nothing government can do to encourage sustainable long term wealth creation?



Well, there is evidence that the tax rewards accruing to debt finance have encouraged banks, property companies, hedge funds and private-equity businesses to take dangerous risks, while discouraging long-term investment as opposed to short-term asset trading, and also shrinking tax revenues paid by the corporate and financial sectors.



This was an argument that George Osborne, the chancellor, took seriously in opposition, but seems to have subsequently discarded - although the Independent Commission on Banking recently flagged up the tax advantages of so-called leverage or borrowing as a contributor to the lethal explosion in the growth of banks' balance sheets relative to their capital resources.



So finding a way to enhance the rewards of equity-financed investment, and reduce the rewards of debt-financed investment, could go some way to reducing the most toxic of externalities afflicting our economy - namely an urge to borrow that has foisted record debts on the British economy and hobbled its ability to grow.



Difference between Westerners and Asians

 
 

Key:     Blue --> Westerners       Red --> Asians

(1) Opinion

Westerners: Talk to the point

Asians: Talk around the circle, especially if opinions are different


(2) Way of Life


Westerners: individualism, think of himself or herself.

Asians: enjoy gathering with family and friends, solving their problems, and know each others' business.


(3) Punctuality



Westerners: on time.

Asians: in time.


(4) Contacts



Westerners: Contact to related person only
.
Asians: Contact everyone everywhere, business very successful.


(5) Anger



Westerners:
Show that I am angry.
Asians: I am angry, but still smiling... (Beware!)


(6) Queue when Waiting



Westerners: Queuing in an orderly manner
.
Asians: Queuing?! What's that?


(7) Sundays on the Road



Westerners: Enjoy weekend relaxing peacefully.

Asians: Enjoy weekend in crowded places, like going to the mall.


(8) Party



Westerners: Only gather with their own group.

Asians: All focus on the one activity that is hosted by the CEO.


(9) In the restaurant



Westerners: Talk softly and gently in the restaurant.

Asians: Talk and laugh loudly like they own the restaurant.


(10) Traveling



Westerners: Love sightseeing and enjoy the scenery.

Asians: Taking picture is the most important, scenery is just for the background.


(11) Handling of Problems



Westerners: Take any steps to solve the problems.

Asians: Try to avoid conflicts, and if can, don't leave any trail.


(12) Three meals a day



Westerners: Good meal for once a day is sufficed.

Asians: At least 3 good meals a day.


(13) Transportation



Westerners: Before drove cars, now cycling for environmental protection.

Asians: Before no money and rode a bike, now got money and drive a car.


(14) Elderly in day-to-day life



Westerners: When old, there is snoopy for companionship.

Asians: When old, guarantee will not be lonely, as long as willing to babysit grand kids.


(15) Moods and Weather


Westerners: The logic is
: rain is pain.
Asians: More rain, more prosperity.


(16) The Boss



Westerners: The boss is part of the team.

Asians: The boss is a fierce god.


(17) What's Trendy



Westerners: Eat healthy Asian cuisine.

Asians: Eat expensive Western cuisine.


(18) The Child


Westerners: The kid is going to be independent and make his/her own living.

Asians: Slog whole life for the kids, the center of your life.

 

 
 
 



The trader who lifted the lid on what the City really thinks


One man reveals how economic disaster would let him and his colleagues profit 

By Tom Peck
Tuesday, 27 September 2011

The world may be teetering again on the precipice of economic disaster but those with any investment in the popularity of Alessio Rastani, a hitherto unknown "independent trader", had a worse day than most after his memorable appearance on television yesterday morning.

"I have a confession, I go to bed every night and I dream of another recession, I dream of another moment like this," he told dumbstruck BBC News presenter Martine Croxall, when asked if the proposed eurozone bailout would work.

The interviewer thanked the trader for his candour but told him that "jaws had dropped" around the BBC newsroom while they listened to his answers shortly after 11am.

"I'm a trader," he said. "We don't really care whether they're going to fix the economy, our job is to make money from it.

"The 1930s depression wasn't just about a market crash," he added. "There were some people who were prepared to make money from that crash. I think anyone can do that. It's an opportunity."

The three-minute clip quickly spread online, provoking outrage. In the interview, Mr Rastani went on to advise "everyone watching this" that, "This economic crisis is like a cancer, if you just wait and wait hoping it is going to go away, just like a cancer it is going to grow and it will be too late."

He said it was "wishful thinking" to believe that governments could prevent another recession.

On his Twitter profile Mr Rastani describes himself as an "experienced Stock Market and Forex trader" who is "dedicated to helping others succeed".

Some were as quick to praise him as others were to damn him. Comments on his Facebook page included: "Great interview" and "talk about the truth," while others described Mr Rastani as a hero.

The current crisis bears considerable similarity to that which engulfed the world in 2008, though thus far it lacks the talismanic hate figure generously provided in the form of the former RBS chief Sir Fred Goodwin. The slick-haired, pink-tied and American-accented Mr Rastani may yet fill the void.

Quite how much he personally stands to gain should the financial world collapse again is unclear. The profile on his website, Leadingtrader. com, would suggest he is more reliant on "professional speaking" than his wizardry in the money markets to keep in him in hair gel. But after his performance yesterday it may just be that, like the eurozone, that particular sideline is beyond salvation.

"My belief is that anyone who wants to improve their income and achieve success in life, cannot afford to ignore learning how to trade," he says.

"Based on Alessio's sound advice, I pulled my money out of the markets just before the 2008 stock market crash. He saved me a fortune, not to mention my pension!" claims a client named as Maurice E.

Though Twitter users were quick to pick up on Mr Rastani's outburst, his dire forecast went mysteriously unnoticed by the wider financial markets. Shares in French and German banks rose by as much as 10 per cent, as traders analysed a proposed three trillion euro (£2.6 trillion) rescue package for the single currency.

AQA - Exam board to penalise private school pupils

By Richard Garner, Education Editor in The Independent
Tuesday, 27 September 2011

A controversial plan to rank all A-level students according to the schools they attend – which would allow universities to discriminate against pupils from private schools – is unveiled today by Britain's biggest exam board.

The radical proposal would allow universities to offer places to students from disadvantaged homes who showed potential but had performed less well in exams than their peers at better schools.

The plan by the exam board AQA (Assessment and Qualifications Alliance) provoked a storm of argument among academics and independent schools. There were immediate fears that candidates will be penalised simply because they achieve good A-level results at a good school. Independent schools are also alarmed that the approach could discriminate against disadvantaged pupils to whom they have offered scholarships.
Dr Tim Hands, headmaster of Magdalen College, Oxford, and co-chairman of the Independent Schools' Universities Committee, said: "It is extraordinary. It takes no account of home background or the amount of tutoring a pupil could have."

Professor Alan Smithers, head of the Centre for Education and Employment Studies at the University of Buckingham, added: "There must be concerns about the ranking the candidates are awarded. The possibility for errors is enormous." The plan is contained in a paper prepared for discussion by Dr Neil Stringer, senior research associate at the AQA Centre for Education Research and Policy, and being circulated at the party conferences for debate this month.

It advocates the drawing up of a national system for ranking both candidates’ achievements and the educational context in which they were taught.

Pupils at weak schools would get bonus points; those at elite schools could be penalised in comparison.
Dr Stringer cites the example of St George’s Medical School in London in support of his argument. It offers places to students with lower A-level grades (BBC rather than AAB) providing that their performance is 60 per cent better than the average for their school.

“St George’s reports that students from poorly performing schools who are accepted into medical school with lower grades do just as well as their peers with higher grades,” he adds.

“This strongly suggests that students admitted through the adjusted criteria scheme learned enough at A-level and are able enough learners to compete successfully with students who achieved higher A-level grades under more favourable.”

Under the blueprint he has devised, students would be awarded an exam score based on their best three A-level grades and then placed into different performance bands. They would then be given the ranking for their school.

Dr Stringer says the system could either be offered to universities individually – or drawn up centrally by an existing agency like Ucas, which is currently reviewing its A-level system.

The AQA believes it can be an an alternative to allowing students to apply to university after they have got their results – rather than be awarded places on predicted grades. This plan, under active consideration from ministers and said by some to be fairer towards disadvantaged students, has failed so far to get off the ground largely because of opposition from universities.

Professor Smithers added: “I would hope that any university worth its salt would look at the candidates’ achievement and inform their own view as to their potential.”

Dr Hands added: “Cambridge University, which features at the top of many a global league table, has recently published research that shows prior schooling is of insignificant effect with regard to degree outcome.

“The proposer of this scheme might like to bear this in mind.”

Brian Lightman, general secretary of the Association of School and College Leaders, which represents the majority of state secondary school heads, described it as “a step too far”. He said it should not detract from the need to provide all pupils with a good education in a good school.

Lee Elliott Major, of the education charity the Sutton Trust, which campaigns to get more disadvantaged young people into leading universities, said: “We support the use of so called contextual information when judging students’ potential and achievement.”

However, he added that the “bigger challenges” were in getting “more children with the grades at school to make university a realistic prospect and encouraging pupils to actually apply when they have the grades”.
Dr Stringer stresses in his paper: “The proposed system would not encourage or require universities to relinquish control of their admissions systems. It is not an issue of allocating students to universities on the basis of their respective rankings: admissions tutors would be free to make decisions.”

The AQA said the scheme could be considered as an alternative to Post Qualification Application – allowing students to apply to university after getting their results.

That, argued Andrew Hall, chief executive of AQA, would lead to a shorter teaching year if exams were brought forward.

“We have real concerns about the effect this could have on the performance of some students,” he added.
“So our Centre for Education Research and Policy have devised a different way to tackle the issue that doesn’t disadvantage any student and allows all applicants – from whatever their school type or background – to compete fairly for university places.”

* Meanwhile, plans to mark GCSE students on their spelling and punctuation and scrap most resits were published by Ofqual, the exam standards watchdog, yesterday.

It has launched a consultation on the proposals which would see teenagers – from 2012 – having to sit all their exams in the summer at the end of two-year courses rather than sit modules throughout the course.

They would also only be allowed to resit English and maths.

The reforms were first announced by Education secretary Michael Gove earlier this summer.

How the new system would work

Under the new system, a pupil at a weak school who got a lower grade than a rival pupil at a good school could still be given more university entrance points, writes Richard Garner.

The blueprint would work like this. James goes to a low-performing comprehensive in a disadvantaged area. He manages to get an exam score of 36 out of 40. However, he is entitled to bonus points as a result of his school's low ranking (it scores minus three in the rankings).

Adam, on the other hand, goes to a top performing independent school with no pupils on free school meals and got 38 for his exams. But he faces being penalised on his school's ranking (the school is given a "plus three" ranking).

It would, of course, be up to the individual university to decide what to do with this information but one way of using it will be to add three points to James's exam score because of the background he comes from and deduct three points from Adam. On that basis, the place would go to James.

The argument in the paper is that there are still vastly more points awarded for exam performance than education context and it is unlikely that any university would be as crude as to deduct the maximum ranking points from Adam and give the maximum three extra to James.

However, what is likely is that both Adam and James would be longlisted - something that would not have happened to James without the ranking system. Then James's potential would outweigh Adam's performance.