Blogging on liberty, capitalism, reason, international affairs and foreign policy, from a distinctly libertarian and objectivist perspective
25 February 2008
Ralph Nader to stand for US Presidency
Fairtrade fails and deceives: Part One
That’s the legend sold with Fairtrade, on the Fairtrade Foundation website. It is about to be heavily promoted big time in the UK through Fairtrade Fortnight. However, Fairtrade isn't fair, or good, it is ignoring basic economics and is highly deceptive. It is hindering development far more than it helps.
What Fairtrade actually is about is an ideology of guilt-mongering to brand products on the basis of being “ethical” which are marked up for the “good” of all those involved, grossly distorting price signals and producing perverse results. In the Sunday Telegraph today, the Adam Smith Institute has announced the release of a damning report about “Fairtrade” called, aptly, “Unfair trade”. The Institute states “At best, Fairtrade is a marketing device that does the poor little good. At worst, it may inadvertently be harming some of the planet’s most vulnerable people”.
- Fairtrade pays farmers to maintain uncompetitive farming methods rather than using modern techniques that can enhance production. Environmentalists might argue that those techniques are more environmentally sustainable, but the Fairtrade Foundation admits it has no programmes to encourage the use of technology in farming, of any kind. It even gives counterproductive advice, encouraging crop mixing, which hinders mechanisation.
- A fraction of the Fairtrade premium charged to consumers reaches the producer, retailers pocket the rest as Fairtrade products are perceived as high yield and less price sensitive. In short, customers are more willing to pay for the “Fairtrade” label, oblivious as to whether the premium reaches the producer. The Fairtrade Foundation insists it ensures farmers are paid more than they would otherwise (no doubt retailers are too!), but do consumers accept the premium paid to everyone is fair?
- Fairtrade only accredits farmers if they join together as co-operatives. Farmers working for Café Britt in Costa Rica are self-employed small business people who own the land they farm, but this is “unacceptable to ideologues at FLO international” Fairtrade’s certifiers. Café Britt has been refused Fairtrade status, even though its Costa Rican farmers have increased incomes by processing, roasting, packaging and branding locally as well. Fairtrade coffee, by contrast, is roasted and packaged in the EU.
- The Fairtrade Foundation is seeking to dominate the trade, by seeking to monopolise the concept of “ethically branded” produce by persuading local authorities, companies, schools and the like to declare themselves “pro Fairtrade” at the expense of other brands claiming the same thing (like Café Britt). This has effectively limited the range of "pro producer" activities as the brand itself limits innovation to that approved by the brand. It also inflates the price by not having competing "fairtrade" brands.
- Fairtrade supporters ignore the real causes of poverty amongst many growers by pursuing an ideological crusade against world market prices and multinational corporations. According to the Sunday Telegraph, coffee growers in Kenya interviewed by Alex Singleton of the Globalisation Institute told of being forced to used the monopoly milling and fertilizer companies, imposed by the state, and the high tariffs on imported tools that could assist production. Of course this could be addressed by free trade, but Fairtrade supporters are not interested in confronting poor country governments.
- Fairtrade encourages poorer quality produce. As many farmers sell produce in both Fairtrade and open markets, farmers will often sell their best produce on the open market to secure the best price (as the open market is quality driven), and sell poorer quality produce on the Fairtrade market, as the price is guaranteed. The effect this has on quality for those selling entirely on the Fairtrade market is questionable at best.
Fairtrade is another example of good intentions paving a road to hell, as it is driven by an ideology distant from reality. It is driven by faith that the world would be a far better place if only those mean old markets paid people more for what they produce (low prices are unfair!!), with even more ideological baggage along with that. Part of it is environmental – the old adage that organic is better than mechanisation, and fertilisers are “bad”. Part of it is simply socialism – companies are bad, so farmers should all be in co-operatives. Beyond that is the basic rejection of the price mechanism.
Ah, you say, but if I want to pay more so that a farmer gets more, shouldn't I be allowed to? Of course you should. I'd let you set fire to your money if you wanted to (you're not allowed), but that doesn't mean you should necessarily feel better, or those that don't buy fairtrade are immoral - the truth may be quite the opposite.
So what does ignoring the price mechanism do?
22 February 2008
Report on the environment - how shallow is it?
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How? If it is lower cost, then people will use it and pay a fare to recover the fixed and marginal costs of public transport. However, they don’t. In fact 95% don’t find it “lower cost” if you include value of time and comfort. Moreover, it is hardly lower cost when it requires subsidies of between 50% and 70% in many cases. When did you last get a subsidy to drive your car to work? Of course there are externalities, but this claim doesn't say that.
Greens spinning and hiding the truth
- “Levels of PM10 particulates at roadside locations in Auckland appear to have fallen over the past 10 years" PM10 are particulates, the air pollution that causes the greatest damage to health.
- "Benzene levels at monitored locations are at an acceptable level. Levels are higher near busy roads than in residential areas, but appear to be improving. This improvement is probably due to changes in vehicle fuel composition. Lead was eliminated from New Zealand petrol in 1996, so airborne lead levels are now very low.” So more good news.
- The worst one appears to be “Levels of nitrogen dioxide are at an acceptable level around New Zealand, with the exception of some locations in Auckland affected by traffic emissions. Emissions of nitrogen dioxide in Auckland appear to be increasing". Hardly devastating.
- Despite the war on cars of the Greens the report also points out that “Home heating is the main cause of air pollution in populated areas in the winter" Hmm don't see anything about people's home fires in the Green party statements, bit of an inconvenient truth that it ISN'T transport, but rather home heating in most parts of the country outside Auckland that creates most air pollution.
- Vehicle ownership has increased, as have km driven (although down in the last year), and the vehicles people buy are getting bigger, yet this is largely a function of wealth. A good thing.
- Fuel is cleaner now that it has ever been, with sulphur levels now 96% less than they were four years ago. Sulphur is the key source of particulates from transport emissions.
- 10% of road vehicles create 40% of pollution, largely because they are badly tuned. Responding to this issue alone would make a worthwhile difference.
The real inconvenient truth is that air pollution is, by and large, getting better. Not that the Greens would admit it.
The report doesn't call for an end to road building, does not rank car traffic as the leading cause of air pollution and does not advocate the Green's pets of rail transport, or ANYTHING about shifting freight from trucks to rail or shipping.
In fact, it shows that while people own more cars, travel more km by car, most indicators of air pollution are improving, and besides much of the problem is caused by home heating. So what does that make the Greens other than masters of spin and scaremongering?
The transport chapter is here.
The air pollution chapter is here
A mate and his girlfriend are having sex
a - Go and hop into bed and pretend to be him.
b - Walk away.
a - Get her some water.
b - Call her a taxi.
c - Take her back to your place for sex.
21 February 2008
Flashing for Hillary?
Low Emission Zone London or Ken's tax on trucks
Since 4 February he has made ALL of London (yes not just central) a “Low Emission Zone”. What this means is that any lorry over 12 tonnes that enters any part of Greater London under the authority of the Greater London Authority must have an engine rated as being euro 3 or above, otherwise it faces a £200 charge. This tends to mean that lorries registered since October 1991 will be exempt, but those older than that will face the fee. Failure to pay will result in a fine of £1500.
The scheme will cost £10 million to operate, and is costing £50 million to implement (figures quoted from BBC London) but its benefits are likely to be difficult to detect. The scheme will undoubtedly cost millions to businesses, as currently roadworthy lorries will need to be sold, or the fines and fees passed onto customers. Meanwhile, the lorries will likely be relocated to other parts of Britain, producing dirty emissions there! The scheme is to be extended to lorries down to 3.5 tonnes by July 2008, along with buses, coaches, minibuses, vans, motor caravans and ambulances. Cars are specifically not included, curiously.
Of course it is very unclear how Ken intends to deal with foreign lorries, which are difficult to enforce against. Enforcement against foreign lorries depends on the ability to use law enforcement in EU countries for this purpose, which is highly variable. Non-EU countries are typically more difficult.
The ambition is to clean up local air quality in London, which can be appalling, albeit for some reasons Ken is unlikely to concede:
1. The increase in buses in London as subsidies have dramatically increased. Before Ken became Mayor, buses in London did not require net subsidies, now they cost over £1 billion a year in subsidies. Many buses run with few passengers, and with bus fares having been cut significantly, this encourages people to ride buses rather than walk, cycle or ride the tube (which produces no local emissions). There is little evidence that the additional buses produce less emissions than any cars replaced.
2. The appalling lack of good arterial roads away from built up areas. London’s road network is half finished, and may be destined to be so for some time. For example, the M25 is the only proper orbital route. The A206 north circular is partial highway, partial local street, with many residents exposed to noxious emissions because of anti-road building policies. There is no decent south circular route. A handful of large tunnelled highways would reduce this exposure, reduce emissions and congestion.
So we will wait and see what, if any, positive results come from the Low Emission Zone. Meanwhile, this will increase the costs of doing business in London, and I doubt there will be any measurable impact
Taxing migrants?
Here’s an idea, it can be applied to the UK, or NZ or indeed many countries....
New migrants don’t pay income tax (or national insurance in the UK), for three years (well they can if they want, but they don't get anything more for it). After that they can choose to do so, and avail themselves of the state provided “services” or continue to opt out. Indirect taxes such as VAT/GST are adequate to cover law and order, defence and other state functions.
In exchange for not paying income tax, new migrants have no claim on the public health system or education system and would be charged on a marginal cost recovery basis with a contribution to fixed costs. New migrants could also not claim taxpayer funding housing or welfare benefits. The years they spend not paying income tax also wont count for old age pensions/national superannuation.
In short, they pay for what they consume and what their families consume. Yes some bits and pieces would need ironing out, you can’t not pay income tax and then pay only the years your kids need an education. You’d need to pay from when they are born. You can’t opt out of income tax and expect to still get access to the state social services at all, it’s like insurance, you opt out and stay opted out.
Unfair? How? It stops existing citizens from subsidising new ones through taxes, means the tiresome argument about “paying for infrastructure” is up to the new migrants to pay for, and suddenly the type of migrants you get might actually be those willing to be self sufficient.
In the UK this couldn’t apply to people from EU countries of course, sadly, but it can apply more generally. Of course NZ could apply it across the board, and you’d find out how many people really think they get value for money out of their taxes. You’d also find it a lot easier to recruit overseas doctors and the like.
Socialists will huff and puff that this will benefit their great nemesis - the rich (snarling jaws dripping with envy). Rich migrants of course, bringing their wealth into the country, spending their money. Socialists don’t want to argue that their beloved taxpayer funded social services are always going to be inadequate because they have few mechanisms for accountability, cost control, rewarding good performance and behaviour and penalising bad.
Most socialists show little interest in having a transparent debate about how much of taxes should be about paying for what you use, and how much is about compulsorily paying for other people.
Now that is an honest debate I’d like to have.
20 February 2008
Wellingtonians: submissions on Ngauranga to Airport study
George Galloway blames Cuban human rights abuses on the US
How green is your bus?
Wellington International Airport's rock?
Hope for Cuba?
19 February 2008
Fidel Castro resigns
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I hoped he'd die before an orderly transition of power, but it is difficult to tell whether his brother will make radical reforms - opening up a system of oppression to free speech, and allow people to get on with their lives without the state crushing them. Raul has a few months to prove himself.
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You might read how Cuba treats political dissidents to see how good to the people it is, and you might look twice at its official health statistics on child mortality and life expectancy - given that authoritarian regimes are not very reliable on telling the truth.
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Let's hope Raul opens up the mental hospitals and prisons to the political prisoners, allows a free press and radio, and starts granting Cubans individual rights. He might start finding that if he holds free and fair elections, US sanctions would evaporate.
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However, somehow, I don't think many of Cuba's supporters really want that.
So I own a bank, well..
Islamism: The first enemy in the battle of values
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Islamism places the worship of a faith at the centre of laws that govern behaviour between individuals, not reason. That in itself is a cause for concern, as it is for those of other faiths, Hinduism, Shintoism, Buddhism and Christianity all have plenty of followers ready to integrate church and state. However, whilst all that do so take a malignant view of individual freedom and reason, Islamism is a particular concern for several reasons:
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1. Islamists have deliberately waged war against secularism and against Western civilisation. There is a long litany of attacks. It is deceptive to dismiss these as reflecting a desire to resolve the Palestianian question, or to keep US troops out of Islamic holy lands. Those who advocate Islamist terror have a far more malignant agenda, of a global caliphate. Islamists are a clear and immediate danger, that can be seen not only in the Middle East, but also in the USA, UK, France, Spain, Indonesia, Africa and elsewhere.
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3. Islamists are profoundly sexist and racist. Their anti-semitism rivals that of the Nazis, and goes beyond concern for the Palestinian question. Their sexism is renowned, from seeking to ban education of girls, to treating women as subservient and almost evil seductive creatures that divert men from their duties of running the world. They insult both men and women in their sexist generalisations that treat sex and human relations as a joyless necessity that needs planning by old judgmental men, not a celebration of people with common values, shared experiences and affection/love for each other. Islamist states treat women as second class at best, and virtually slaves at worst.
4. Islamists are totalitarian in their attitudes. They are intolerant to the point of calling for murder of those they disagree with and who offend them. Their solutions to being insulted, or those disagreeing with them is to use threats of force or actual force. Their suppression of debate cripples those under their rule and cripples humanity. This is an attitude of brutal savages. By contrast, they do not think twice about adopting the most vile terminology to describe those who they are bigoted against.
Islamists are well funded, highly motivated, have states that actively back or shelter them, and have proven their willingness to kill for their political objectives.
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One simply has to look at those states which exemplify Islamism to see how governments treat their citizens, or indeed how citizens are permitted by the state to treat each other. The Taliban banned girls over the age of eight from getting an education and would execute any (and their teachers) who sought it. It banned music, women playing sports, flying kites, stuffed animals, photographs of people or animals. Think how much of a joyless bully you have to be to ban all that.
Let me make it perfectly clear, there is a difference between being Muslim per se, and being an Islamist. Being a Muslim is a private personal choice (or should be), and practicing the religion in one’s private affairs, subject to the non-initiation of force principle, is not my concern. It is the application of Islam upon the state, advocacy of a singularity between the state and Islam, and the particularly violent means that Islamists use to advocate their view. The first battle is against violent Islamists, but Islamism itself is at the root of this. Only when Islam is considered a religion, and not a blueprint for the role of the state will there be the tolerance and acceptance that so many Muslims seek. Humanity has gone a long way to have secular tolerant liberal democracies where people can feel free to choose religion or no religion, without violence or threat of violence or discrimination by the state. Islamists seek to destroy this. For the sake of civilisation, peace, human rights and the future of humanity, Islamism must be fought until it is no longer a violent threat, and then must be debated vigorously until this philosophy of death, misery and irrationality resides in the past.
Kosovo independent: an all too easy solution?
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This is not the place to go into the Serbian/Albanian conflict over Kosovo, lest to say that the Serb nationalist bullies like Slobodan Milosevic who pined for Serbia’s “golden age” of being defeated in Kosovo since 1389 (yes only nationalist Serbs understand). The vile bigotry of Milosevic’s nationalism saw the Albanian language banned and cooked up fears that Albanians were harassing Serbs, which clearly would justify Serbs harassing Albanians. The conflict over Kosovo was not as bloody as Bosnia-Hercegovina, but it did involve slaughter. Albanians and Serbs in Kosovo by and large despise each other in a mutual lack of trust. The Albanians remember the repression and fascism of Milosevic and the fascist Serbian authorities, the Serbs fear the Albanian majority’s own hatred towards them, and see Kosovo as being part of Serbia, which until today it has been.
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So why is Kosovo a big deal? Shouldn’t it become independent because the majority want it?
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Unlike the US and the EU I don’t believe the answer is yes.
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The philosophy that says Kosovo Albanians should be independent could also be applied to Serbs in Bosnia, Armenians in Nagorno-Karabakh, Russians in Abhazia, Basques in Spain etc. It is the notion that ethnic identity should determine statehood. The problem with this idea of course is that the psychological state of ethnic identity (which, by and large is all ethnicity it. It is in the mind), isn’t shared by those for whom boundaries are drawn around.
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Carving up Serbia sends a message that countries should exist according to the philosophy that Serb nationalists have been fighting for since the early 1990s, except this time the Serbs lost and the Albanians won. The Serbs wont forget, sadly.
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Russia has said it will take action if Kosovo becomes independent. Hardly surprising, as it has many scores it can settle, in Georgia and Moldova for starters. Will the West intervene if Russia attacks Georgia to apply the same rule to its ethnic majority areas? Would it be a surprise if Putin decides he can flex his muscles on his borders without provoking a serious response?
15 February 2008
Tariana Turia's tribalist bigotry
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She, no doubt like many, thinks that Rudd's apology is actually about everyone individually apologising to all Aborigines, rather than what it SHOULD be, which is the Australian federal government apologising to specific victims of its own policies.
Obama's economic backwardness
Do you want "real change" which is about going back to big government knows best?