Tag Archives: Government

Can the Olympics Boost British Business?

Olympic Judo London 2012 (2 of 98)

London 2012  (Photo credit: Martin Hesketh)

An interesting phenomenon has hit Britain over the past 2 weeks – the traditional British reserve has been replaced with enthusiasm and a sense of national pride I’ve not seen here before. What’s more – the normally omnipresent negativity about almost everything (not just the weather!) has been quietened to a large extent.

This gives me great hope. Can we draw on this new-found upbeat attitude and start to pull the country out of its recession?

After all, markets are driven at least as much by sentiment as anything else, and a positive sentiment among the people here will inevitably lead to a strong upturn.

So, what lessons have we learnt this month?

Firstly, and very importantly for the future, that competition is healthy after all. For far too long here, and in some other countries, governments have discouraged competition on the basis that it is unfair to those less able. Hence the ludicrous situation of school children, for example, progressing through school regardless of whether they pass or fail their exams, and exam pass marks being lowered, too – the reason we have such huge numbers of school leavers who are functionally illiterate and innumerate. And then wonder why they cannot find, or keep, a job.

Secondly, celebrate success. It seems to me that the news services focus on the negative, and ignore the positive. With the Olympics they were even starting to be accused of jingoism, such was the positive tone of the UK TV services! I realise that disasters sell more newspapers and TV viewship of news channels increases, but it really is not necessary to focus on the negative / bad news about everything all the time. Hopefully, the record viewership and readership during the Olympics will show that good news also sells… And there is good news on the business front – not just bad. There are many success stories, large and small, from Jaguar-LandRover’s expansion to over 300 000 new businesses starting this year – some of which will become the market-leaders of the future (there’s an interesting correlation with market-leaders having more often than not started in periods of recession/downturn).

Thirdly, sport is good for everyone. Britain is already one of the most obese nations on earth and the costs of this in both human and monetary terms are massive. By making sports compulsory for school children – a minimum of three afternoons a week would be good – they develop habits that will stand them in good stead throughout life. It not only reduces the issues associated with obesity, but encourages both team spirit and competition – two things that are critical for overall success in life.

Fourthly, a sense of national identity and community, and pride in this, is good – look at the great work done by the army of volunteers! It really is time for the “Great” to be put back into Britain in the minds of its people. It turns out that not only is Britain third overall in the medals table, but has the best ratio of the all-important Gold medals to GDP of any country (50% better than the next closest) and one of the best ratios in terms of population size, too.

We’ve a unique opportunity to take these lessons and move forward strongly. To move away from a grey society where competition is bad, winning isn’t important and there’s no pride as a consequence. The results will be not only good for business, but a stronger, healthier and happier society, too.

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Communication in the Information Age

Note: the plate says - "The quick brown f...

Image via Wikipedia

Johannes Gutenberg’s invention of the printing press in 1440 heralded the start of mass communication – for the first time, text could be reproduced quickly and inexpensively for a large audience. Of course, very few people could read in those days and many authorities were against it, fearing the impact of mass uncontrolled communication on their rule, so it took a few hundred years for this to spread.

The introduction of broadcast radio from 1920 started to spread information even more quickly and widely, marking a significant jump in the speed of communication.

But it was the Information Age which has really accelerated global communication.  Widely accepted to have started in the 1970s with the advent of the microprocessor, it took the introduction of the Internet Browser in the early 1990s for the Information Age to really become as integral to life as it is today.

And yet, it seems, the Information Age is just a quicker way to spread the same sort of information as before. Certainly our main sources of news seemed to have missed the point – news bulletins rely on “sound bites” or their video equivalents to relay information with the result that this is often inaccurate or, at best, unbalanced. Newspapers, too, have not really worked out how to embrace the digital age fully – you either get print (almost as in 1440, albeit more quickly), or the same articles available online, missing the opportunity to have summaries of stories and the ability to drill down for more information.

This is the key – we’re bombarded with information from multiple channels but have not developed the tools to effectively sift it. Long messages are often ignored as we don’t have time for them, while short messages are frequently taken out of context missing the real point that was being made. What’s needed is the ability to capture the essence of a point in a short burst and then enable people to get more information as they require it – almost an inside-out onion, with successive layers giving more and more detail.

Twitter is a great example of the modern communication paradigm – 140 characters to get the basic message across, including a link to more detail, which you can access if you wish. That more detailed message, in turn, could have links to other sources for even more information, and so on…

Nowhere, perhaps, is this communication problem more evident than in politics. There’s no argument with the fact that the UK, like many other countries globally, has woefully overspent and has to completely revisit its bloated public sector spending (how can a majority of the workforce be civil servants – effectively paid for by the minority?).  And yet it, like so many others, is facing widespread revolt at the prospect – look at the pension reform issue, for example…

Why?

Primarily because the government is incapable of effective communication. White papers, government statements and debates are far too long and not suitable for the news media or the viewing/listening/reading public, so people simply don’t understand the issues. I absolutely believe that the vast majority of people are decent, willing to work hard to get ahead and happy to help those less fortunate (but NOT those that are not prepared to help themselves).

But, for as long as governments cannot get the message out in a way that the media can carry without distortion and people can understand in just seconds, they will be unable to implement the changes that are needed, worsening the financial state of their countries, prolonging the agony and the economic downturn.

It’s time to turn traditional communication on its head and embrace “the 140 character world.”

Whither the Welfare State?

Sea wall and railway
Image via Wikipedia

Or should that be “wither” as it’s clearly time to change the model dramatically – a model which was developed after the last war, in a very different world?

As Dr Adrian Rogers quite famously put it, “You cannot legislate the poor into freedom by legislating the industrious out of it. You don’t multiply wealth by dividing it. Government cannot give anything to anybody that it doesn’t first take from somebody else. Whenever somebody receives something without working for it, somebody else has to work for it without receiving. The worst thing that can happen to a nation is for half of the people to get the idea they don’t have to work because somebody else will work for them, and the other half to get the idea that it does no good to work because they don’t get to enjoy the fruits of their labour.”

Having only moved to England a few weeks ago, I find it’s interesting to listen to what people here are saying about the “welfare state” issues, particularly at the moment when it’s clear that the new government has no chance but to make some dramatic changes to the way things have been done in the past 13 years of Labour Party rule.

But it seems that it’s not just the country that Labour has brought to the edge of bankruptcy: former Deputy Prime Minister under Tony Blair, John Prescott, has told us that the Labour Party itself is in danger of bankruptcy, with debts of some £20M ($30M) through a combination of over-spending and poor accounting: ironically making the announcement on the day that Tony Blair’s new investment bank was being registered… At least the party was consistent with its approach to finance, even if the former Prime Minister seems to have profited most handsomely from his time in office.

However, I digress. The basic issue, as Dr Rogers so succinctly put it, is that Governments can’t just create money magically, but can only redistribute money from one part of society to another, and the more that people want to take, the more that others are forced to give.

Few people doubt that societies should help those within them that are unable to fend for themselves – this compassion, after all, is what is supposed to make us human – but the question today is how much help should be given and to whom. I find it astonishing, for example, that there are families in England who have not worked at all for three generations, and simply live off benefits. Others, who receive free housing, believe it should be their right to pass these houses onto other family members. Girls find that being a single parent is a profitable enterprise, and start to have babies at a very young age, then turn to the state for housing and benefits, and are able to live comfortably without working. The list of abuses to the system is endless…

Clearly this is wrong. We should protect those unable to work for reasons of frailty, but those who are healthy should have a defined maximum period – say 6 months – on “free” benefits and then should start “earning their keep.” If they can’t find a paying job within that period, the welfare authorities should have them working for the society that is housing and feeding them – there is so much that needs to be done, from infrastructure development and maintenance to helping the elderly and the sick (hospital porters, for example), and would provide benefits in return for such work. This would not only help motivate them to find more steady (and, perhaps, comfortable) work, but reduce the costs of running local authorities as much of the work could be done by those on benefits.

What do you think – should benefits be given without restriction, or should recipients who are able to do so be obliged to “earn” their benefits, and help the society that is providing them in return?

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