Connect with us

Economy

Tesla Cars, Technology, the Market Economy, and the Environment

Emanuel L. Paparella, Ph.D.

Published

on

Everywhere we remain un-free and chained to technology, whether we passionately affirm or deny it. But we are delivered over to it in the worst possible way when we regard it as something neutral, for this conception of it, to which today we particularly like to do homage, makes us utterly blind to the essence of technology.
                                    –Martin Heidegger, “The Question Concerning Technology”

Technology is never neutral, neither does it guarantee a good government either on a purely utilitarian or on an ethical basis…it is conceivable that technocracy could threaten democracy. The global crises of the economic markets demonstrate how right was Croce in not reducing liberalism to a mere economic system founded, in theory, on competition.
                                  –Ernesto Paolozzi, Interview with Mario Scarpa

 

The two quotes above by Martin Heidegger and Ernesto Paolozzi provide us with the essence of the problem that Western Civilization faces vis à vis technology. How are we to conceive of technology? If one conceive it as integral part of science, then the Positivists are on the right track in their assertion that science is the last cycle of a developing progressive civilization, superseding,  and rendering obsolete, the first cycle constituted by myth and religion, the second cycle constituted by reason and metaphysics, and ushering in the third, final and superior and triumphant scientific empirical method as conceived by Francis Bacon. Ever-perfectible science is the culmination of progress as the 18th century, the age of reason, would proclaim via reason and rationality. This explains why the third cycle is superior: it eliminates subjectivity and bias and arrives at the truth via a fail-safe method. The fruits of science, after all, are there for everybody to see. Via science we can now go to the moon and back. Nowhere are those fruits more apparent than in the technological innovations which currently keep on multiplying almost exponentially. It is technology which will save us by a few push button solutions, not religion, not philosophy, proclaim the starry eyed modern positivists.

 

Take the automobile which at first resembled carriages without a horse, almost as a throw back to the 19th century, but eventually became a symbol of inevitable progress for the 20th century, just as the train was the symbol of progress for the 19th century. Is now automotive industry becoming a part of a problem, not of a progress in 21st century? The youngest automotive company in the US and Western Europe is 90 years old. Do we here talk about conservative clubs? Rigidity in the dynamic environment of otherwise very promising 21st century?!

 

The automobile, as well as the train, proved to be problematic for the environment; coal and oil are not clean and environmental friendly. But that too seems to have been solved via the electric train and the electric car. Tesla Motors now produces battery cars that run just as fast, as far and as efficiently as internal combustion cars, are aesthetically pleasing and, most importantly, are pollution free. Who could ask for anything more? Indeed progress is inevitable and unstoppable. When the train arrives in the American prairie, not only the buffalo is to be exterminated to make room for progress and the future, but native American tribes, stuck in the first cycle of development, need to move over also. Those who refuse to enthusiastically welcome the religion of progress, are simply relegated to reservations, or worse, exterminated like the buffalo. So it turns out that despite its claims, technology is not so neutral and value free as the Positivists have claimed; it always implies a choice to use well or to use it for ignoble ends. As Paolozzi well puts it in the above quote: “Technology is never neutral, neither does it guarantee a good government either on a purely utilitarian or on an ethical basis… “

 

The 2012 Olympics opened with an image of a roaring train coming down the tracks. Somebody said in the 19th century that the greatness of England resided in its abundance of coal which allowed the industrial revolution and the building of the English Empire over which the sun never set; to which the poet Matthew Arnold replied that the true greatness of England was Shakespeare. Thus began the war of the two cultures: the scientific positivistic culture vs. the culture of the liberal arts, still ongoing in the 20th century with C.P. Snow’s The Two Cultures, a dichotomy that would have been inconceivable to a Leonardo, who was both a great scientist and a great artist.

 

Heidegger begins his Being and Time with the question Why is there something rather than nothing?; a question that any positivist would deride, if for no other reason that he cannot answer it via science nor does he care to answer it. He’d rather look at the cosmos than ask why the unexamined life is not worth living. And yet, neither Heidegger, nor Paolozzi, nor Vico whose masterpiece is titled The New Science, are anti-science luddites. Rather what they are saying is that knowledge and science are never neutral; there is always an interpretation and intentionality; they can be use for good or for evil. What made possible the horror of the Holocaust were people with much knowledge (9 of the 12 Nazis who planned the logistics of the event had Ph.D.s after their names) which was used for evil, so that the train would run on time and the ovens and the extermination chambers would function efficiently. Jacques Ellul’s The Technological Society is illuminating in this respect.  Heidegger, on the other hand, paradoxically joined the Nazi party and even worked for it for a short while. So, given that technology is never neutral unless it is in the hands of unthinking automatons, or zombies without a consciousness, the question persists: how shall we use technology in the 21st century? Tesla and its sleek electric motors is a solution of sort, but it is a scientific solution which does not solve the human problem; that problem is encapsulate in these questions: how do we live meaningful purposeful lives and assure our survival and salvation?

Professor Paparella has earned a Ph.D. in Italian Humanism, with a dissertation on the philosopher of history Giambattista Vico, from Yale University. He is a scholar interested in current relevant philosophical, political and cultural issues; the author of numerous essays and books on the EU cultural identity among which A New Europe in search of its Soul, and Europa: An Idea and a Journey. Presently he teaches philosophy and humanities at Barry University, Miami, Florida. He is a prolific writer and has written hundreds of essays for both traditional academic and on-line magazines among which Metanexus and Ovi. One of his current works in progress is a book dealing with the issue of cultural identity within the phenomenon of “the neo-immigrant” exhibited by an international global economy strong on positivism and utilitarianism and weak on humanism and ideals.

Continue Reading
Comments

Economy

Turkey’s financial crisis raises questions about China’s debt-driven development model

Dr. James M. Dorsey

Published

on

Financial injections by Qatar and possibly China may resolve Turkey’s immediate economic crisis, aggravated by a politics-driven trade war with the United States, but are unlikely to resolve the country’s structural problems, fuelled by President Recep Tayyip Erdogan’s counterintuitive interest rate theories.

The latest crisis in Turkey’s boom-bust economy raises questions about a development model in which countries like China and Turkey witness moves towards populist rule of one man who encourages massive borrowing to drive economic growth.

It’s a model minus the one-man rule that could be repeated in Pakistan as newly sworn-in prime minister Imran Khan, confronted with a financial crisis, decides whether to turn to the International Monetary Fund (IMF) or rely on China and Saudi Arabia for relief.

Pakistan, like Turkey, has over the years frequently knocked on the IMF’s doors, failing to have turned crisis into an opportunity for sustained restructuring and reform of the economy. Pakistan could in the next weeks be turning to the IMF for the 13th time, Turkey, another serial returnee, has been there 18 times.

In Turkey and China, the debt-driven approach sparked remarkable economic growth with living standards being significantly boosted and huge numbers of people being lifted out of poverty. Yet, both countries with Turkey more exposed, given its greater vulnerability to the swings and sensitivities of international financial markets, are witnessing the limitations of the approach.

So are, countries along China’s Belt and Road, including Pakistan, that leaped head over shoulder into the funding opportunities made available to them and now see themselves locked into debt traps that in the case of Sri Lanka and Djibouti have forced them to effectively turn over to China control of critical national infrastructure or like Laos that have become almost wholly dependent on China because it owns the bulk of their unsustainable debt.

The fact that China may be more prepared to deal with the downside of debt-driven development does little to make its model sustainable or for that matter one that other countries would want to emulate unabridged and has sent some like Malaysia and Myanmar scrambling to resolve or avert an economic crisis.

Malaysian Prime Minister Mahathir Mohamad is in China after suspending US$20 billion worth of Beijing-linked infrastructure contracts, including a high-speed rail line to Singapore, concluded by his predecessor, Najib Razak, who is fighting corruption charges.

Mr. Mahathir won elections in May on a campaign that asserted that Mr. Razak had ceded sovereignty to China by agreeing to Chinese investments that failed to benefit the country and threaten to drown it in debt.

Myanmar is negotiating a significant scaling back of a Chinese-funded port project on the Bay of Bengal from one that would cost US$ 7.3 billion to a more modest development that would cost US$1.3 billion in a bid to avoid shouldering an unsustainable debt.

Debt-driven growth could also prove to be a double-edged sword for China itself even if it is far less dependent than others on imports, does not run a chronic trade deficit, and doesn’t have to borrow heavily in dollars.

With more than half the increase in global debt over the past decade having been issued as domestic loans in China, China’s risk, said Ruchir Sharma, Morgan Stanley’s Chief Global Strategist and head of Emerging Markets Equity, is capital fleeing to benefit from higher interest rates abroad.

“Right now Chinese can earn the same interest rates in the United States for a lot less risk, so the motivation to flee is high, and will grow more intense as the Fed raises rates further,” Mr. Sharma said referring to the US Federal Reserve.

Mr. Erdogan has charged that the United States abetted by traitors and foreigners are waging economic warfare against Turkey, using a strong dollar as ”the bullets, cannonballs and missiles.”

Rejecting economic theory and wisdom, Mr. Erdogan has sought for years to fight an alleged ‘interest rate lobby’ that includes an ever-expanding number of financiers and foreign powers seeking to drive Turkish interest rates artificially high to damage the economy by insisting that low interest rates and borrowing costs would contain price hikes.

In doing so, he is harking back to an approach that was popular in Latin America in the 1960s and 1970s that may not be wholly wrong but similarly may also not be universally applicable.

The European Bank for Reconstruction and Development (EBRD) warned late last year that Turkey’s “gross external financing needs to cover the current account deficit and external debt repayments due within a year are estimated at around 25 per cent of GDP in 2017, leaving the country exposed to global liquidity conditions.”

With two international credit rating agencies reducing Turkish debt to junk status in the wake of Turkey’s economically fought disputes with the United States, the government risks its access to foreign credits being curtailed, which could force it to extract more money from ordinary Turks through increased taxes. That in turn would raise the spectre of recession.

“Turkey’s troubles are homegrown, and the economic war against it is a figment of Mr. Erdogan’s conspiratorial imagination. But he does have a point about the impact of a surging dollar, which has a long history of inflicting damage on developing nations,” Mr. Sharma said.

Nevertheless, as The Wall Street Journal concluded, the vulnerability of Turkey’s debt-driven growth was such that it only took two tweets by US President Donald J. Trump announcing sanctions against two Turkish ministers and the doubling of some tariffs to accelerate the Turkish lira’s tailspin.

Mr. Erdogan may not immediately draw the same conclusion, but it is certainly one that is likely to serve as a cautionary note for countries that see debt, whether domestic or associated with China’s infrastructure-driven Belt and Road initiative, as a main driver of growth.

Continue Reading

Economy

3 trends that can stimulate small business growth

MD Staff

Published

on

Small businesses are far more influential than most people may realize.

That influence is felt well beyond Main Street. Small businesses make up 99.7 percent of all businesses in the U.S., and these firms employ nearly half (48 percent) the workforce, according to the 2018 Small Business Profile compiled by the U.S. Small Business Administration.

In addition, take a look at recent trends and developments in technology. It’s clear that these changes can give entrepreneurs that extra leverage to scale up. Here are three to consider.

Big companies have big opportunities for small firms

Back in the 20th century, a large company would get things done in this very straightforward way. Wherever there was a need, they hired someone directly to perform that task, whether it was a driver or an accountant.

Under today’s leaner models, these big companies are finding it’s much more efficient to partner with other firms to fulfill certain needs. According to Deloitte, 31 percent of IT services have been outsourced, as well as 32 percent of human resources. This increasing acceptance of outsourcing is a huge growth opportunity for small businesses owners.

For example, Amazon recently announced it is actively seeking and helping entrepreneurs who are willing to deliver packages as their contractors. The mega retailer will even go as far as helping with startup costs so long as these smaller firms deliver their packages. Landing a contract with a big corporation is a significant milestone for any company, but starting out with that lucrative contract is sure to let these startups hit the ground running.

Better connections for greater flexibility

When today’s entrepreneur has a new role to fill, they’re not confined to the talent pool in their immediate community. Because we now have the tools and connectivity to work from anywhere, a business owner can expand the search across multiple states!

What’s more, these flexible, work from anywhere options can give business owners the inspiration to do things differently. Having greater collaboration means having access to more options to fit specific needs.

For example, what is the very nature of being a small business owner? It’s dealing with a fluctuating volume of work. Tapping into the talent pool of freelancers to work on these specific, short-term tasks and projects is easier than ever, because for a segment of workers, freelancing is increasingly becoming a way of life. Freelancers currently make up 36 percent of the workforce, according to a study from Upwork. And, if trends maintain, most Americans will be freelancers by 2027.

Thanks to remote options with easy access to talent, small businesses can easily set up temporary or ongoing as-needed work arrangements. When you partner with Dell for your computing needs, you’ll get the expert help and support so you can set up the perfect flexible workspace system.

More automation brings better efficiencies

Without a doubt, new technology works in favor of small businesses and entrepreneurs because they have many tools at their disposal to automate labor intensive processes, be more productive and cut costs. For example, entrepreneurs can use software to process client payments and even set up automated payments, saving hours and costs associated with collecting, processing and reconciling under the traditional paper check payment system. That translates into a more efficient billing department that can spend more time focused on complex issues.

Let Dell equip your small business with the right tech tools, tailor made for your venture and backed with support, so you can focus on running your business.

Continue Reading

Economy

Transitioning from least developed country status: Are countries better off?

Published

on

The Least Developed Countries (LDCs) are an internationally defined group of highly vulnerable and structurally constrained economies with extreme levels of poverty. Since the category was created in 1971, on the basis of selected vulnerability indicators, only five countries have graduated and the number of LDCs has doubled.  One would intuitively have thought that graduation from LDC status would be something that all LDCs would want to achieve since it seems to suggest that transitioning countries are likely to benefit from increased economic growth, improved human development and reduced susceptibility to natural disasters and trade shocks.

However, when countries graduate they lose international support measures (ISMs) provided by the international community. There is no established institutional mechanism for the phasing out of LDC country-specific benefits. As a result, entities such as the World Bank and the International Monetary Fund may not always be able to support a country’s smooth transition process.

Currently, 14 out of 53 members of the Commonwealth are classified as LDCs and the number is likely to reduce as Bangladesh, Solomon Islands and Vanuatu transition from LDC status by 2021. The three criteria used to assess LDC transition are: Economic Vulnerability Index (EVI), Human Assets Index (HAI) and Gross National Income per capita (GNI).  Many of the forthcoming LDC graduates will transition based only on their GNI.  This GNI level is normally set at US $ 1,230 but if the GNI reaches twice this level at US $ 2,460 a country can graduate.

So what’s the issue?  A recent Commonwealth – Trade Hot Topic publication confirms that most countries graduate only on the basis of their GNI, some of which have not attained significant improvements in human development (HAI) and even more of which fall below the graduation threshold for economic development due to persistent vulnerabilities (EVI).  This latter aspect raises the question as to whether transitioning countries will, actually, be better off after they graduate.

Given the loss of ISMs and the persistent economic vulnerabilities of many LDCs, it is no surprise that some countries are actually seeking to delay graduation, Kiribati and Tuvalu being two such Commonwealth countries despite easily surpassing twice the GNI threshold for graduation.

How is it possible that a country can achieve economic growth but not have appreciable improvements in resilience to economic vulnerability?  Based on a statistical analysis discussed in the Trade Hot Topic paper, a regression model, based on all forty-seven LDCs, was produced.  The model revealed that there was no statistically significant relationship between economic vulnerability and gross national income per capita.  The analysis was repeated just for Commonwealth countries and similar results were obtained.

Most importantly, analysis revealed that there was a positive relationship between GNI and EVI. In other words, increases in wealth (using GNI as a proxy) is likely to result in an increase in economic vulnerability.  This latter result is counterintuitive since one would expect more wealth to result in less economic vulnerability.

So what’s the take away?

The statistical results do not necessarily imply that improving the factors affecting economic vulnerability cannot result in improvements to economic prosperity.  It does suggest, however, that either insufficient efforts have gone into effecting such improvements or that there are natural limits to the extent to which such improvements can be effected.

One thing is clear, the multilateral lending agencies should revisit the removal of measures supporting climate change or other vulnerabilities for LDCs on graduation, since the empirical evidence suggests that countries could fall back into LDC status or stagnate and be unable to achieve sustainable development. Whilst transitioning from LDC status should be desirable, it should not be an end in itself. Rather than to transition and remain extremely vulnerable, countries should be resistant to such change or continue to receive more targeted support until vulnerabilities are reduced to more acceptable levels.

What are your thoughts?

Commonwealth

Continue Reading

Latest

Economy13 hours ago

Turkey’s financial crisis raises questions about China’s debt-driven development model

Financial injections by Qatar and possibly China may resolve Turkey’s immediate economic crisis, aggravated by a politics-driven trade war with...

Africa14 hours ago

Deep-Seated Corruption in Nigeria

One of the biggest problems in the African continent is corruption, but in Nigeria, corruption has gotten to a frightening...

Diplomacy1 day ago

Kofi Annan: A Humane Diplomat

I was deeply shocked whenever I heard that Kofi Annan is no more. A noble peace laureate, a visionary leader,...

Economy1 day ago

3 trends that can stimulate small business growth

Small businesses are far more influential than most people may realize. That influence is felt well beyond Main Street. Small...

Terrorism2 days ago

Terrorists potentially target millions in makeshift biological weapons ‘laboratories’

Rapid advances in gene editing and so-called “DIY biological laboratories”which could be used by extremists, threaten to derail efforts to prevent...

Newsdesk2 days ago

UN mourns death of former Secretary-General Kofi Annan, ‘a guiding force for good’

The United Nations is mourning the death of former Secretary-General Kofi Annan, who passed away peacefully after a short illness,...

South Asia2 days ago

Pakistan at a crossroads as Imran Khan is sworn in

Criticism of Pakistan’s anti-money laundering and terrorism finance regime by the Asia Pacific Group on Money Laundering (APG) is likely...

Trending

Copyright © 2018 Modern Diplomacy