Category: Trade

Europe Day Highlights the Need for Unity

Keeping the peace is never easy. There’s an irrational propensity to conflict in human nature. Keeping the peace is not a passive task. First, it requires communication and engagement. When those two go, trouble is not far behind. It’s by expressing concerns that each side knows where the other stands. Escalation can come when ignorance and propaganda take over.

After the second world war, institutions were established to ensure that communication and engagement became a non-stop affair. With only a small number of exceptions, the countries of the regions of the world engaged in these institutions. Those measure have contributed to making a more prosperous world.

“Never again” are two words that refer to the atrocities of war. The moto is to remind everyone that the worst can and does happen, and that perpetual effort is needed to ensure that history does not repeat itself. The concept of “lessons learned” is essential for safety and security. This is as much true for micro day to day activities as it is for the macro events that shape the path global ahead. Taking teaching not from narcissistic demigods and snake oil salesman but from the pages of history. Appeasing tyranny is not an option.

This week has been a reminder of the lessons learned from the world wars. For most people it’s been a continuing commitment to ensure such events never happen again in Europe. Sadly, let’s not be coy. Despite an overwhelming desire for peace, conflict in still Europe is a reality. But the lesson is there in black and white, appeasing tyranny never works.

Today, Friday 9th May is Europe Day. That’s because a speech by Robert Schuman[1] changed the course of European history on this day. Five years after the war in Europe had come to an end, he put forward a proposal that would make a future similar conflict impossible. The idea was to create an interdependence that would secure peace, unity and solidarity.

It worked. His proposal led to the creation of a European Coal and Steel Community. That measure lay solid foundation for what would later become the European Union (EU). Behind this is move is the echo of “Never again”. Europe has seen centuries of war. This was a moment in time to bring that to an end.

For now, 75-years on, this has been a success. It’s not a regional project with a defined end, even if it has a defined beginning. Where the EU chooses to go next is in the hands of its Member States and its citizens. Changing the course of European history doesn’t stop because the EU exists. Without the cooperation and dialogue, it provides there’s always a chance that ancient rivalries will be reignited. In fact, unscrupulous right-wing politicians[2] are trying to do that just now.

Sadly, in the UK, we stand on the sidelines, looking across the water at continental Europe. Brexit has done a great deal of damage. But as I have said, nothing is static, the world is entering an ever-uncertain phase. The opportunity for the UK to restore EU relations is open. I see the wisdom in the words of the Governor of the Bank of England. He has said the UK now needs to “rebuild” Britain’s relationship with the EU. Amen to that.

[1] www.europa.eu/!9JbCd9

[2] https://www.politico.eu/article/germany-spy-agency-walk-back-extremist-label-afd/

Finding Balance

Regulation can be a contentious issue. That’s an understatement. A spectrum of views extends from the complete libertarian to the past soviet model. Citizens shouldn’t be encumbered by any restrictions to the State has the right to dictate every aspect of life. Clearly, there are immense downsides to either of these extremes. Luckily, although not everyone will agree, the set of political choices available in the UK covers the wide range from the far-right to the far-left. These labels are deficient when it comes to the detail. Often these two camps are similar in their authoritarian ways and means.

Rejecting the extremes, being a liberal, means finding a balance. That means a minimal number of rules and regulations to achieve the prosperity, safety and security goals that most people happily support.

A pendulum swings in the British political cycle. Never quite sure what the cycle time is on this one. What’s for sure is that our society’s tendency is to go from urges to tighten-up rules and regulations to impulses to eliminate or relax them with gusto. Often, the aim is to tweak or protect economic stability or tweak or promote economic growth. After the banking crisis of 2008 it was the first of these, now it’s the second.

Brexit is a strange oddity. Although, great claims were made for the loosening of the ties that bind us, the reality has been much onshoring of past rules and regulation. The forces of continuity have some good arguments.

It’s reported that Prime Minister Starmer is considering dynamically aligning UK regulations with EU regulations, as if that’s not happening pragmatically and piecemeal already. OK, this is not consistent across every sector of the economy. It’s a mixed bag. Politicians banging the drum but not doing much.

Let’s say the financial services market goes a different way from the technology sector. One has a history as long as your arm the other is being made-up as we speak. Clearly, there are risks in both deregulation and overregulation. Thus, I get back to that notion of finding a balance.

To hardened Brexiters EU and UK rules constrain. To their supporters they enable, facilitate and transform.

Now, what’s difficult to discern is where do Starmer and Reeves stand?

A direction of travel, to encourage investment in the UK, has been touted. That implies alignment rules. Investors rightly seek the largest market on offer. Like it or not, the UK is not the US, or even the EU when it comes to the size of its economy. Maybe, it’s taken Brexit to realise that we align as a matter of common interest. Mutual benefit.

Most of our safety and security goals are not subjects of intense competition. If you fly internationally, why would it make sense to compete on safety or security? The general expectation is that common high levels of safety and security are desirable.

As the weather improves so we are heading towards a year of the Labour Party in power. There’s disappointment and concern about the timidity of their actions. The word “reset” is banded about. A ridiculous word. Press the reset button to restore a past condition. No, choices need to be made. Closer alignment and partnership with the EU are the rational choices.

Transform of Future Careers

My education was an industrial one. I guess I was fortunate. No “A” levels for me.

Part of my apprentice programme was to move around the different departments of a major electronics company. That included a range from demanding technical areas, testing new designs, to the everyday pressure of a print room run by an ex-Army man who ran it as if he’d never left the Army. Yes, print rooms were once a staple part of an engineering company. Huge dyeline machines that constantly ponged of ammonia twinned with the noisiest dot-matrix printers ever made. I even got to learn some COBAL[1] with the business unit that put together our payslips. Amazingly enough I was introduced to mathematical concepts, like Fast Fourier Transforms (FFT), at a time when the digital logic needed to implement such algorithms consisted of large cabinet loads of discrete electronics. Now, my simple mobile phone can crunch numbers in this way.

Several weeks here, and several weeks there. One excursion meant spending hot summer days in the Mendip Hills at a quarry testing equipment in deep water. Another meant time working in a former brick-built railway shed that served as a small machine shop.

Of all the different experiences that I had in those formative years (16-18 years) the one that I’ll never forget was a secondment to a London based factory. The company’s training officer recognised that this small village country boy needed to go to the big city. Uppark Drive, Ilford no longer exists as a manufacturing plant. That’s no surprise. In the late 1970s that factory handled the company’s long-lived products. Technology that has gone forever.

Anyway, this is not so much about me. What I’m led to speculate about is what sort of modern-day engineering apprenticeship offers. Does it offer the variety of experiences that I had? Is industrial sponsorship as generous and altruistic as it once was? Do industry and government work hand in hand to ensure a future workforce has the skills that are needed?

Simply the answer is probably “no”. In fact, the structure and organisation of design and manufacturing organisations has changed dramatically. In aerospace there are some companies that have a major factory with every facility at their heart but most subcontract extensively. Colleges have been turned into educational shops, paid by student numbers.

Here’s a thought. It’s not so much what’s taught that’s key as much as the exposure to a variety of ways of thinking and working. A variety of exposure give a student a toolbox from which they can then draw. Finding interesting work will depend on adaptation and repurposing past skills. That’ll be the only way to assure the world doesn’t pass by at an ever-increasing pace.

I’m sure that advances in artificial intelligence (AI) will affect everyone[2]. The idea that all AI will do is displace people is wrong. It just means that, like my recollections above, the types of activities that needs to be done will be entirely different in 2065. Unless I’m highly unusual, I will be long gone. But if you are 25 years old this is worth a thought.

[1] https://archive.org/details/historyofprogram0000hist/page/n7/mode/2up

[2] https://nap.nationalacademies.org/download/27644#

Unlocking Prosperity

“So, whatever you wish that others would do to you, do also to them, ………”

This is the code of reciprocity. In other words, I’d like you to be generous to me, so I’ll be generous to you. Now, of course this works the other way around in a perverse way. Perfectly human, although it’s tainted with suspicion. I’d like you to be generous to me, but I think you are unkind, so I’ll be unkind to you.

I don’t think that’s what Apostles had in mind. Their teaching is first to urge us to be generous as a way of encouraging others to act similarly. A lot there depends on how you view human nature.

For a long time, the United States (US) has had relatively low import tariffs based on adopting a leadership position. It’s to say, you should be like us. If you do that, there’s a chance that we will both become more prosperous.

Generally, argue how you will, as a result the US has become the most prosperous nation in the world. I know it’s only one measure but looking at the numbers of billionaires by country 2025[1] the US stands out. Over a quarter of the world’s billionaires live in the US.

I started with a Christian quotation and so it may be appropriate to ask how generous those fortunate billionaires are towards the people of their own country? I won’t go there. A nations prosperity should not depend on the philanthropic endeavours.

This year a lot has changed. Established ways of working are getting all shook-up. Ambition, suspicion and rivalry are all taking centre stage. An ambition to be unquestionably greater than all others. A suspicion that most others are taking advantage. A fight over valuable and often limited resources.

Again, human history is littered with times when such forces took over. Interestingly, Christianity gained a footing at a time when the Roman empire was plundering anything it could get its hands on. However, I’m not advocating a moral code to moderate the instinct to be imperial.

All to often those moral codes are just moulded and shaped to fit the prevailing circumstances.

No, my appeal is to mutual advantage. The simple idea that 2+2=4 is not the be all and end all of reality. In human affairs we can with effort make 2+2 equal more. It’s that saying that the whole is greater than the sum of the parts. It’s why people work together for common advantage.

Yesterday, I don’t suppose for a moment that ancient monument that I drove past would be there if it were not for the above benefits of having common goals and a willingness to cooperate. Stonehenge.

Trade barriers are foolish. Walls prevent the spreading of prosperity.

[1] https://worldpopulationreview.com/country-rankings/billionaires-by-country

The Curious Case of Lists

How on earth does a humble soul like me make any comment at a time like this? Adding to the realms of things already said seems a bit pointless. We now have echo chambers sounding in echo chambers. Instead, I’ll take a sideways look. Mention one or two of the items that struck me during the week.

Penguins are getting a lot of Press. Ever since Trump decided to slap a tariff on an island inhabited by penguins there’s been a lot of speculations as to his ultimate motives. If I take Feathers McGraw as an example, I can well understand the need to make a pre-emptive strike against such a potentially villainous bird.

Of other notable penguins, I can only surmise that Trump has never heard of Pingu[1]. Now, there’s a subversive penguin if ever I saw one. He originated in Switzerland, which is strange to say the least.

I almost forgot another memorable fictional penguin of the past. A threatening comic character that combines menace with a gentlemanly swager[1]. One of Batman’s greatest foes. A well dressed master criminal unlike other criminals one might mention.

[1] https://youtu.be/yxqz9JqXdJU

I forgot it this year. Next year, I will pay attention to Penguin Awareness Day. 20 January might be winter to us but its summer to them. Birds that have the decency to dress up in black and white dinner jackets deserve some respect. I for one, will express my concern that the exports of our feathered friends may be taxed. Could it be that Trump is confused. Afterall the real penguins love the ice in the southern hemisphere. In fact, nowhere near Greenland.

“I’ve Got a Little List”. There’s a phrase that comes to mind. Lists, one in particular, does seem to have hit the News this week. I ask, why is there no modern-day equivalent of Gilbert and Sullivan? Accepted, companies do play with their songs and make words to fit the situation of the day[2]. There’s a great deal of scope for new lyrics.

The fabric of social media would rupture if there were no lists. I’m often entertained by an animation that shows a compilation of data as it ripples through the years. Something with colourful bar graphs that go up and down as the rank and order changes. A musical accompaniment that has no relation to what’s being presented. Lists are captivating. They spur a natural curiosity to look for the item of most personal interest. So, over time the economy of X or Y country goes up and then down and then up again. For sure, nothing stays the same for long. That maybe the moral of the week.

[1] https://youtu.be/7Uoug3d3AJE

[2] https://youtu.be/1NLV24qTnlg

Tariffs Fail

Do you need to be a monster brain in economics to get the hang of tariffs? If you deep-dive into all the complexities surrounding every possibility, maybe you do. Nevertheless, the basics are the basics. Much like erecting a wall. Putting up a barrier makes it harder to do business. Harder to communicate. Harder to understand common concerns.

It’s a perfectly human thing to do. We erect barriers all over the place. That garden hedge, wooden fence or brick-built wall are a statement that says, this bit is mine and that bit is yours. Rarely is this absolute. Both sides of these unnatural barriers have mutual interests. Not admitting that reality is a problem. In fact, disputes between neighbours are one of the most common forms of dispute.

A barrier isn’t an invitation for you to disregard the concerns of your neighbours, and vice versa. That all night party, with the music turned up to eleven, maybe fine once a year but don’t do it every week. Well, don’t do it unless you are quarrelsome.

Economic barriers, like tariffs, are going to happen. When perception is all, the idea that one party can protect itself from those who would wish to do harm or take advantage, is very powerful. I say “perception” because a threat doesn’t need to be real. Politics is much about perception.

Trouble is that erecting barriers has a painfully poor history of failure. If we go back to walls, there’s not one that has stood the test of time. Maginot Line[1] is a case in point. The lesson there is that a barrier concentrates the opponents mind on how to overcome it. The elaborate nature of a barrier is no defence to the inventive mind. Barriers are time limited.

Tariffs, and non-tariff barriers are much the same. They may work to advantage for a while only to crumble when their weaknesses have been discovered. Although, I would say that non-tariff barriers are more powerful than straightforward economic barriers. The point being that the former is far more difficult to understand, counter and control.

2025 is a year of volatility, at least so far. Talk of tariffs is on, then it’s off, then it’s on again. It’s the real cat on the hot tin roof. A hop, a jump, and a skip. Everyone is left wondering what comes next. Even if there’s to be any return to a form of reasonable stability anytime soon. That’s the point.

Disruption offers opportunities. At least, for those quick inventive minds with resources to hand. If you don’t fit into that category, then chances are there’s a big downside and a lot of hurt.

To give the monopoly of the home market in the produce of domestic industry…………………must, in almost all cases, be either a useless or hurtful regulation. Adam Smith. The Wealth of Nations (1776).

[1] https://www.britannica.com/topic/Maginot-Line

The UK’s Path Back to the EU

It’s great to see a debate in the UK Parliament[1]. Monday, 24 March saw a debate on the UK joining the European Union (EU). A public electronic petition[2] called for this debate. UK MPs get the opportunity to speak openly of their experiences of the outcomes of Brexit. There’s little that is positive and an ocean of negative.

Lucky for them, at the end of the debate, MPs are not called to vote on the issues raised in this petition. Nevertheless, there’s enormous merit in putting the facts in the public domain.

The 2016 Brexit vote was an unpatriotic act of self-harm, but it is history. Gradually, bit by bit, every part of British society is coming to the realisation that we need to do differently in the future. One day, I have no doubt that the UK will join the EU. The “will of the people” is not static. It is incredibly arrogant of Brexit supporters to say that it is static.

Besides, the inevitability of change means that new ways of cooperating will be found because it is in the best interest of all the parties. The UK is a liberal free-trading country that believes in the rule of law.

In the debate, Government Ministers can take what is being said and rethink. It is no threat to democracy to consider a rethink. In fact, for democracy to be stuck in a deep rut – now, that would be dangerous.

Today, Brexit has been a wonderful generator of piles of meaningless paperwork. It’s destroyed businesses and ruined lives. The enormous damage that has been caused is clear. Sadly, the people who cause that damage are not inclined to take any accountability for the mess.

In the debate, a shadow minister digs-up the grumpy past. It is shameful that the Conservative Party has nothing useful to say on this important issue. It is like listening to a bad recording of an old set of lies and proven nonsense. In speaking, this politician displayed no interest what-so-ever in improving the position of the country.

With all the talk of “growth” being so important to our future, it is difficult to understand a reluctance to address the festering wound that has been caused by Brexit. We can only be more secure and prosperous if we work more closely with our nearest neighbours.

The Labour Party leans on its election manifesto of last July. It’s an awkward act of sitting on the fence and sticking their head in the sand. Now, that paints a picture.

So called, “ruthless pragmatism” is a peculiar Government policy position. It can mean 101 things to 101 different people in 101 different places. Citing “global headwinds” to excuse obvious failings is no excuse for sustaining a burnt-out Brexit winding on like a runaway train. It would be wiser to question everything as the wholly new circumstances dictate.

2025 is dramatically different from 2015. When I first returned to the UK from Germany. The tectonic plates of global affairs have shifted. The Atlantic is wider. The Channel is narrower.

Oceanus Britannicus should be no barrier to trade and cooperation.

[1] https://youtu.be/yJdFBSAvAhU

[2]  https://petition.parliament.uk/

Dealing with Difficult Individuals

Dealing with an objectionable person. There’s a title for a book. Could be 101 things you didn’t know about objectionable people or maybe objectionable people for dummies. I can see it now. Airport bookshelves full of such books. You know those colourful sections on management and self-improvement books that you don’t often see in “normal” book shops.

It’s something I suffer from when travelling. I see an enticing book title in the moments of boredom waiting for my flight to come up on the large electronic display board. The ridiculous thought goes through my head after reading a random page. Now, this erudite tone, obviously read by millions, will help me be a better person. Naturally, the book’s future is to sit in a cardboard box and be moved around, never to be read again.

Back to my theme. How to deal with an objectionable person. Of course, the context matters a lot. If I said the person is your boss, then one approach might be in order. If the person in question is a world leader, you and I are a little removed from impacting the prevailing situation. Quite different. Never-the-less, why not have an opinion?

There’s strength in numbers. Through the whole of human history. Let’s face it, we are puny creatures when faced with natures most threatening circumstances. What we do is gather together and hey-presto[1] suddenly solutions start to bubble to the surface. I’m not talking about escaping a woolly Mammoth. More of a woolly Man-mouth.

Unity is powerful. Trouble is that unity is difficult to assemble. It becomes somewhat easier to assemble when a real threat is looming. An example that is of the moment is Canada. Over the last few weeks Canadians, if the media is to be believed, seemed to be becoming unified. I expect the same is true of Greenlanders.

Europeans are, as we often are, struggling to find unity. It’s there at the core but it’s beset with voices of doubt and voices of unfriendly adversaries. Over intellectualising is a common trait of mature democracies. We like to study the woolly Mammoth before we run away or make a lot of noise and throw spears at it.

Here’s a potential solution for dealing with an objectionable person, or more than one. It’s a borne of primitive schoolboy politics. Smart folk will wince. Push that to one side. Lets’ face it, smart folk have led us down the path we are currently on.

Send them to Coventry[2]. I don’t mean literally send them to the ancient English cathedral city in the West Midlands. If you are fed-up with hanging on every word of someone who is a menace, one approach is to stop listening and walk away. That English idiom about sending someone “to Coventry” is to deliberately ostracise. Avoid their company and act as if they aren’t really that important. You’ve bigger fish to fry.

Just like that. A good way to deal with Colin Robinson[3] is to walk away before it’s too late.

[1] https://www.phrases.org.uk/meanings/hey-presto.html

[2] https://www.coventrytelegraph.net/news/coventry-news/phrase-sent-coventry-originate-from-12137441

[3] https://www.imdb.com/title/tt11582982/

Navigating Change

Theres’s wisdom in having flexibility when making decisions. Being too high bound by ridged beliefs or a dogmatic creed isn’t a way of sustaining success. The saying, “When the facts change, I change my mind. What do you do, sir?” is attributed to John Maynard Keynes. It’s nice to have a quote like that to validate the wisdom of flexibility. Is it always true? Well, this is not a physical law like Force equals Mass times Acceleration. So, using the word “always” is not the least bit appropriate.

In the first months of 2025 the US seems to be going through a cycle of extreme plasticity. It goes like this; propose policy that’s drastic and disruptive and that shocks or puts everyone on edge. Let it ride for a day. Watch what happens. Then either double-down or reverse the whole move and start something else equally shocking. Meantime saying how great the achievement has been even if there’s no positive achievement.

Conventional wisdom isn’t wrong because it’s conventional. Reacting to conventional or traditional ways of working by deeming them automatically bad doesn’t add up. I know it’s conservative philosophy, but wisdom is acquired over time.

You could say, I’m burdened with being rational (or reading too much). That’s not wrong. What’s difficult is that a rational person must stretch the imagination a long way to see any good coming from a rapid cycle of change, often for the sake of change.

Setting the cat amongst the pigeons (or bull in a China shop) makes economies and financial systems quiver. Without a certain amount of understanding, or the perception of understanding, assessing risk becomes almost impossible. That’s the first months of 2025.

Where’s the vision? Maybe underlying the impulsiveness is a desire to get from here to there as quickly as possible.

75 years ago, after WWII, America entered a “golden age”. Baby boomers, technology and a sense of optimism drove the good times. The 1950’s ushered in a commercial exposition. Modern marketing and a proliferation of brands changed society, both in America and across the globe. Over the past decade, there’s not been that shiny newness or unbounded naivety that captured the imagination of the time.

If the overall vision is to get back to those times, then reality is going to bite. A sea change in circumstances could happen but it’s unlikely to be the one painted above.

Navigating Political Extremes

There’re arguments that can be made for stability. There’re arguments that can be made for disruption. I don’t think it matters if you are a socialist, centrist, conservative, liberal, oligarch or demigod. The virtue of one over the other is a temporary state of affairs. If this were not the case it would be unlikely that civilization, such as it is, would have ever got this far in its development.

Now, I have discounted the untenable. That is that stability becomes stasis. A moribund inability to do anything, totally regardless. It’s also the case for disruption so catastrophic that that we truly are in an end-of-the-world scenario.

“This too shall pass” has a long history. The temporary nature of everything is encapsulated in those four words. Or as Judas Priest put it “You’ve Got Another Thing Comin”. A thumping beat and screaming chords make great driving music. Put this on a Sony Walkman in the 1980s and the batteries would be flat in minutes.

Am I saying that Biden was stasis and Trump is catastrophic? Maybe. What is it in our minds that mean we flip from one extreme to another? These are question that erudite columnists are wrestling with as they chew over what’s happened with no idea of what’s to come.

In the British system of governance moderation wells up from centuries of tradition and custom and practice. As we are seeing it hardly matters who is in power, history runs so deep that it shapes every move. I never thought I’d have a good word to say for being a country that does NOT having a written constitution. Today, I’m rethinking how it can be advantageous to make things up as we go along.

Writing down sets of rules can be helpful in guiding decision making. Underlying this is the assumption that there’s some continuity and that those rules have a kind of universality. That’s mighty difficult to do given the passage of time.

The problem with writing down sets of rules is that they create something to be circumvented. Let’s use a river plunging over rapids as an analogy. If there is a forceful enough flow of water, it will go around or over any rocks in its way. Strident political forces, ranging from the crude to the cunning, have little difficulty in circumventing established custom and practice. What’s often called the “liberal media” may be horrified even as the river tumbles downhill with increasing speed. Predicting the future with a past perspective doesn’t work.

“This too shall pass” is a motif to hang onto. Just as the river eventually leaves the rapids so we might experience a steadier period ahead.

Look out for extremes. Milking my analogy as far as I can, changing everything, all at once, and relentlessly, is a proven route to disaster. Institutions, accepted norms and the fabric of society getting smashed up on the rapids, forever and a day is the definition of disaster.