Abe Needs to Encourage Innovation in Japan

Faiure to take risks, to inernalize and to value employees based on merit is crippling the Japanese economy according to co-winner of the Nobel prize in physics, Shuji Nakamura.

This has resulted in years of stagnation in sei-conductors, solar panels and smartphones.

As Diet sessions opn this month, Abe has a chance to sorrect this.  Abe has pledged to lay out the specifics of his structural reform drive, which relies heavily on corporate tax cuts and reducing red tape. But he’s been quiet on one reform that truly would encourage the risk-taking culture Japan needs so badly: making sure employees get paid for their inventions.

Abe Needs to Reform

Elon Musk Predicts Takeover by Supercomputers

At  conference in San Francisco, Musk predicted that supercomputers will replace humans.  Actually his description of the takever is more dramatic.  “I don’t think anyone realizes how quickly artificial intelligence is advancing.  Particularly if involved in recursive self-improvement…and its utility function is something that’s detrimental to humanity, then it will have a very bad effect,” Muks said.

Supercomputers could deltet human life as if it were annoying spam.

Supercomputer Takeover

 

UK Independence Party Candidate Wins First Seat

Once called ‘fruitcakes” by David Cameron, the UKIP wins its first eelction.Former Tory MP Douglas Carswell becomes the first UKIP candidate to be elected to the House of Commons.

The UK Independence Party has gained its first elected MP, with Douglas Carswell taking the seat of Clacton by 12,404 votes.  Mr Carswell, who defected from the Conservatives, knocked his old party – which enjoyed a 12,068 majority at the 2010 election – into second place.

UKIP leader Nigel Farage said he had “shaken up British politics”.

In the night’s other by-election, Labour held on to Heywood and Middleton but UKIP slashed its majority to 617.

Mr Farage told BBC Breakfast UKIP could hold the balance of power after next year’s general election.

He said UKIP’s second place in Heywood and Middleton was “even more significant” than its win in Clacton, saying the party was now the main opposition to Labour in northern cities.

“Something big is happening here. People want change, they have had enough of career politicians in three parties.”

Fruitcake No Longer

Juncker Juggles. Slovenia Nominates Violetta Bulc

After days of intense speculation, Prime Minister Miro Cerar announced that he had chosen Bulc, a liberal.

The Slovenian government followed with a statement announcing that it “authorized Ambassador Rado Genorio, the Permanent Representative of the Republic of Slovenia to the European Union to refer the proposal to the competent EU institutions”.

Bulc will in theory inherit the Energy Union Vice-Presidency from Bratušek, who was rejected by the European Parliament on Wednesday (8 October).

But Juncker might need to rethink the allocation of portfolios in his team. Indeed, Bulc has neither the political experience, nor the policy background to lead a team of Commissioners on this matter.

Instead, the Energy Union Vice-Presidency could go to Kristalina Georgieva, who was initially allocated the Budget and Human Resources portfolio, Parliament sources told EurActiv. Georgieva’s responsibilities would then be given to Maroš Šefčovič, the Slovak who is currently nominated for Transport and Space.

As a result, Bulc would take the Education, Culture, Youth and Citizenship portfolio from Hungary’s Tibor Navracsis, who was rejected by Parliament because of his track record serving in a populist government, which has adopted restrictive media laws and launched a crackdown on NGOs.

Violetta Bulc, No Energy

Public and Private Debt Considered

Frances Coppola writes:  The debt is still growing, but the world’s GDP growth is slowing. Indeed as aggregate debt figures are usually quoted versus GDP, the two are connected. The debt pile grows faster as growth slows, simply because the denominator is falling.

The report looks at total debt/GDP – not just sovereign debt. This is refreshing: unrelenting media focus on sovereign debt as the principal problem misses the fact that in many countries the bigger burden is PRIVATE debt. However, it makes the figures even worse. Global debt, it seems, is a terrible problem.

None of this will come as a surprise to anyone, except perhaps the news that the world as a whole is actually accumulating debt rather than deleveraging. The deleveraging efforts by developed countries are being more than offset by the increasing debt of emerging markets, particularly China.

Who are the owners of all this debt?  Debt

Debt

IMF Sees Uneven Global Recovery

Despite setbacks, an uneven global recovery continues. Largely due to weaker-than-expected global activity in the first half of 2014, the growth forecast for the world economy has been revised downward to 3.3 percent for this year, 0.4 percentage point lower than in the April 2014 World Economic Outlook (WEO). The global growth projection for 2015 was lowered to 3.8 percen

Despite setbacks, an uneven global recovery continues. Largely due to weaker-than-expected global activity in the first half of 2014, the growth forecast for the world economy has been revised downward to 3.3 percent for this year, 0.4 percentage point lower than in the April 2014 World Economic Outlook (WEO). The global growth projection for 2015 was lowered to 3.8 percent.

Downside risks have increased since the spring. Shortterm risks include a worsening of geopolitical tensions and a reversal of recent risk spread and volatility compression in financial markets. Medium-term risks include stagnation and low potential growth in advanced economies and a decline in potential growth in emerging markets.

Given these increased risks, raising actual and potential growth must remain a priority. In advanced economies, this will require continued support from monetary policy and fiscal adjustment attuned in pace and composition to supporting both the recovery and longterm growth. In a number of economies, an increase in public infrastructure investment can also provide support to demand in the short term and help boost potential output in the medium term. In emerging markets, the scope for macroeconomic policies to support growth if needed varies across ountries and regions, but space is limited in countries with external vulnerabilities. And in advanced economies as well as emerging market and developing economies, there is a general, urgent need for structural reforms to strengthen growth potential or make growth more sustainable.

Anja Hazekamp of the Netherlands

A new face in the EU: Anja Hazekamp
Nationality: Dutch
Party: Party for the Animals
European Parliament Group: GUE/NGL
Birthdate: 21 January 1968
Birthplace: Vlagtwedde, Netherlands
Committees:
• Committee on Agriculture and Rural Development (Member)
• Committee on Fisheries (Substitute)
• Committee on Petitions (Substitute)
Delegations:
• Delegation for relations with Japan (Member)
• Delegation for relations with Switzerland and Norway and to the EU-Iceland Joint Parliamentary Committee and the European Economic Area (EEA) Joint Parliamentary Committee (Substitute)

She is an anti-corporate activist.

Anti-corporate activists hold that the influence of big corporations is a detriment to the public good and to the democratic process. It should be recognized, however, that the EU legislates in many ways that restrict the actions of corporations and lawbreaking companies are usually punished in the form of monetary fines. In addition, from the perspective of business ethics, the point should be made that corporations are not, inherently more evil than any other groups and are no more likely to attempt unethical or illegal activity than other interest representatives.

52% of EU citizens think that the overall influence of companies in society is positive, while 41% think that it is negative. Influence of companies is positive for 85% of citizens in Denmark, 83% in Finland, 74% in the Netherlands, 72% in Sweden, 70% in Estonia and Luxembourg, 67% in Austria and Ireland, 65% in Portugal, 61% in Cyprus, 60% in Latvia, 59% in Malta, 58% in Poland, 56% in Belgium, 54% in Germany and the United Kingdom, 52% in Lithuania and Spain, 50% in France, Slovakia, Romania, 49% in Bulgaria, 43% in Czech Republic, 42% in Hungary, 37% in Greece, 36% in Italy and Slovenia.

The main positive effects of companies on society include: creating jobs, contribution to economic growth, providing training to employees, developing innovative products and services, paying taxes, providing financial or material support to local people, providing return to investors.

MEPs taking a stand against the ‘excessive influence of banks and multinational corporations lobbies in the EU in order to help European institutions which 1) are free from conflicts of interest; 2) do not offer privileged access to decision-making to corporations and their lobbyists; 3) have strong ethics rules for politicians, officials and lobbyists; 4) are open and transparent in the way they work; 5) always operate in the public interest.

Anja Hazekamp

Hong Kong Asks the Question: Has China Modernized?

William McGurn writes:  Even with news the Hong Kong government will hold talks with those occupying the city’s streets, protesters will likely not succeed in their two stated goals: the resignation of Hong Kong chief executive C.Y. Leung, and rules guaranteeing honest elections for future chief executives, starting in 2017.

What the students have achieved, however, is something far more alarming for any regime lacking the security of political legitimacy: They’ve made that regime’s leaders look ridiculous.

There are many symbols of a modernizing China — gleaming skyscrapers, state-of-the-art infrastructure, a record IPO on the New York Stock Exchange — whenever Beijing finds itself challenged by ordinary Chinese, it opts for a response right out of Communist central casting like this week’s tear-gassing of the most gentle, law-abiding citizens you’ll find. In so doing, authorities elevated the humble umbrella into a democratic icon, used by protestors to shield themselves from sun and rain and, now, their own police force firing tear gas.

This Wednesday, the entire holiday celebrating Mao’s regime was up-ended by a local pro-democracy councilman, Paul Zimmerman. During the official ceremony, a smiling Zimmerman unfurled a bright yellow umbrella.  The photograph of that yellow umbrella — standing out sharply against the sea of grim black suits and red flags — went around the world, just another of the many highly public embarrassments not only for Leung but for his masters in Beijing.

Leung must be getting used to it. Today, no one in Hong Kong refers to Leung by either his name or his office. In a city of more than 7 million people, he’s referred to as “689,” a reminder of the number of votes in the Beijing-appointed committee that selected him as Hong Kong’s leader.

To put it another way: The emperor has no votes!

It must be maddening for Xi Jinping, China’s relatively new premier. Xi hails from the We’ll Show Them Who’s Boss school of governance, and in the short time he’s been in office he’s sent a message of zero tolerance for dissent.

Those targeted include Xu Zhiyong, a mainland lawyer who led a movement for transparency and fairness and was jailed this year after being convicted in a sham trial — for the high crime of “gathering a crowd to disrupt public order.”

So Xi fancies himself a tough guy. And as a man who has made his way up the Communist Party of China, he likely shares the mainland stereotype of Hong Kongers as rich, spoiled and soft.

But here’s the reality: A 17-year-old Hong Kong kid with thick black glasses and a bowl haircut is making a monkey out of Xi before the entire world.

The kid’s name is Joshua Wong, an evangelical Christian and first-year university student. Wong is very young, too young. He’s made a few mistakes, and he’ll make more. But guess what? This teenager has set the leadership in both Beijing and Hong Kong back on their heels.

How do you think that sits with Xi — or the hard men in the Politburo when they calculate whether Xi and Leung are up to their jobs?

Yes, authorities could send in the People’s Liberation Army troops to clear the streets, and no one ought to rule it out. That, however, would instantly invite comparisons with Tiananmen Square in 1989.

Is this the face of China Xi really wishes to present to the world just before President Obama and other heads of state come to Beijing for the Asia Pacific Economic Forum in November?

Hong Kong Umbrella

Hong Kong Peaceful Demonstrations

Chris Patten writes:   It is not wholly true to say that the eyes of the entire world are on Hong Kong. They would be, of course, if people in mainland China were allowed to know what is happening in their country’s most successful city. But China’s government has tried to block any news about the Hong Kong democracy demonstrations from reaching the rest of the country – not exactly a sign of confidence on the part of China’s rulers in their system of authoritarian government.

 It is a slur on the integrity and principles of Hong Kong’s citizens to assert, as the Chinese government’s propaganda machine does, that they are being manipulated by outside forces. What motivates Hong Kong’s tens of thousands of demonstrators is a passionate belief that they should be able to run their affairs as they were promised, choosing those who govern them in free and fair elections.

Others outside of Hong Kong have a legitimate interest in what happens in the city. Hong Kong is a great international center, whose freedoms and autonomy were guaranteed in a treaty registered at the United Nations. In particular, the United Kingdom, the other party to this Sino-British declaration sought and received guarantees that the survival of Hong Kong’s autonomy and liberties would be guaranteed for 50 years.

So it is ridiculous to suggest that British ministers and parliamentarians should keep their noses out of Hong Kong’s affairs.

The biggest problems have arisen because of a dispute about where Hong Kong’s promised path to democracy should take it, and when. No one told Hong Kongers when they were assured of universal suffrage that it would not mean being able to choose for whom they could vote.

As early as 1993, China’s chief negotiator on Hong Kong, Lu Ping, told the newspaper People’s Daily, “The [method of universal suffrage] should be reported to [China’s Parliament] for the record, whereas the central government’s agreement is not necessary. How Hong Kong develops its democracy in the future is completely within the sphere of the autonomy of Hong Kong. The central government will not interfere.” The following year, China’s foreign ministry confirmed this.

The British Parliament summarized what had been said and promised in a report ion Hong Kong in 2000. “The Chinese government has therefore formally accepted that it is for the Hong Kong government to determine the extent and nature of democracy in Hong Kong.”

The peaceful demonstrators in Hong Kong, with their umbrellas and refuse-collection bags, will not themselves be swept off the streets like garbage or bullied into submission by tear gas and pepper spray. Any attempt to do so would present a terrible and damaging picture of Hong Kong and China to the world, and would be an affront to all that China should aspire to be.

The Hong Kong authorities have gravely miscalculated the views of their citizens. Like the bad courtiers against whom Confucius warned, they went to Beijing and told the emperor what they thought he wanted to hear, not what the situation really was in the city. They must think again.

Under the existing plans, there is supposed to be a second phase of consultations on democratic development to follow what turned out to be a counterfeit start to the process. Hong Kong’s government should now offer its people a proper second round of consultation, one that is open and honest. Dialogue is the only sensible way forward. Hong Kong’s citizens are not irresponsible or unreasonable. A decent compromise that allows for elections that people can recognize as fair, not fixed, is surely available.

The demonstrators in Hong Kong, young and old, represent the city’s future. Their hopes are for a peaceful and prosperous life in which they can enjoy the freedoms and rule of law that they were promised. That is not only in the interest of their city; it is in China’s interest, too. Hong Kong’s future is the main issue; but so, too, is China’s honor and its standing in the world.

Hong Kong

US VP Biden Announced Job Driven Training Grants

Much unemployement in the US is a disconnect between jobs available and people trained for the jobs.  Wlelcome news from Vice President Biden:

Training America’s workers with the skills they need for a good job can help middle class families and help American businesses grow our economy. While America’s businesses have created 10 million jobs over the past 54 months, the longest streak of uninterrupted job growth in our country’s history, we need to do more to train Americans with the skills they need, and connect them with businesses that are looking for skilled workers. The funding is part of the Trade Adjustment Assistance Community College and Career Training (TAACCCT) competitive grant program, which is co-administered by the Department of Labor and Department of Education.

The grants will provide community colleges and other eligible institutions of higher education with funds to partner with employers to expand and improve their ability to deliver education and career training programs that will help job seekers get the skills they need for in-demand jobs in industries like information technology, health care, energy, and advanced manufacturing.

Building on the strategies advanced in the Workforce Innovation and Opportunity Act, these types of job-driven training partnerships are an important way to successfully prepare and place workers in jobs that pay a middle class wage.

Job Training in US