Rss Feed Tweeter button Facebook button Linkedin button

Skip to content

Monday, Feb 6th 2012


Book Review: Ship of Fools by Fintan O’Toole

As I started to read Fintan O’Toole’s “Ship of Fools” I grabbed a stack of Post-it notes to mark interesting passages and key points for easy reference later. The trouble is, after 40 pages it became clear that marking ever page, or every other page, was not a good way to go back to reading the key points.  And that’s what it was becoming, with revelations on each and every page of fraud, deception and corruption, the wholesale fleecing of the country aided, abetted and encouraged, most prominently by Fianna Fail.

That’s because the book itself is a set of key points. It is a distillation of O’Toole’s knowledge and experience over decades looking with increasing despair on Irish life. One suspects that the working title for this book (as with David McWilliams’ latest) could have been “I Told You So” or at least “I Warned You“. O’Toole describes the book as a polemic. That does it an injustice. Polemic conjures up an element of hyperbole and bombast being deployed in advance of an argument. This is an almost surgical dissection of the body politic, with each layer, canker and cancers laid out with clinical precision. Facts and figures are marshalled to reinforce the arguments at each stage.

O’Toole, like great analysts before him, cuts to the heart of the matter in Irish society. He describes our State as “barely modern let alone post-modern” (pg 101) and summarises our problems devastatingly as “a weird unfolding in the globalised twenty-first century of an intensely local nineteenth-century psychodrama.” The tragedy is not that we didn’t know what to do. It’s clear from the evidence that at all times government knew what to do, but chose not to do it. From the original Kenny Report on development land to the present day we have known, particularly at a governmental level. Our government has repeatedly “abdicated its responsibility for short term advantage” (pg 140)

Various dramas play out as an example of the problems we have faced. The repeated selling of Eircom is a microcosm of Ireland’s problems.  The “ideologically induced stupidity” of the market drove the sale of Eircom at a time Ireland was supposed to be driving toward a knowledge-based economy. A careful distinction needs to be made here between the European ideal of a knowledge-based society and the Irish view of a knowledge-based economy, as the favouring of the economy over society is one of the key threads in this book. O’Toole points out that €4.1Billion in 2000 would have provided for 5Mbps broadband for the whole country. Instead the state sold the core telecoms infrastructure company and pocketed the money. If this did not completely strangle the knowledge economy in its infancy it certainly severely stunted its growth.  O’Toole sums up the Government’s approach to the knowledge economy as “more reminiscent of the IT Crowd”. To be honest that is unfair to the IT Crowd.

This issue of lip service versus what is really valued plays out repeatedly in the book.  The repetition of 19th Century patterns in the current information society emerge again and again. O’Toole describes the lack of interest among students to study for anything other than the professions, and how this leads to the “professions reproducing the professions”. He talks about the lack of value for science, engineering and technology in society.  In some research I carried out myself I came to the same conclusion, that the key barriers that held back the development of a knowledge-based society were cultural, not technological.  J.J. Lee first pointed this out over twenty years ago in his book “Ireland, 1912-1985: Politics and Society” (and O’Toole does refer to Lee at least once in the book). In it Lee pointed out the central role of the Catholic Church in the creation of classes of professions, merchants, farmers and others, and the role the Church played in preventing change. The irony in all of this is that as I write these words the report of Commission of Investigation into Child Abuse in the Dublin Dioceses is being widely discussed after its publication last week. The rotten core laid bare in that report is essentially the rotten core laid bare in Fintan O’Toole’s book.

Patsy McGarry in his Irish Times report last Friday referred to the Church’s use of “mental reservation”, a concept “developed and much discussed over the centuries, which permits a church man knowingly to convey a misleading impression to another person without being guilty of lying”. This concept is at the heart of the Commissions investigation.

“Mental reservation” appears to have been an ingrained Irish trait. O’Toole similarly describes the Irish facility for doublethink, talking out both sides of our mouth at once, as being the Irish version of Orwell’s “TruthSpeak” (pg 181). The relationship between the State and the Church particularly through the actions of Bertie Ahern is discussed late in the book, with Ahern choosing to buttress the Church and its assets via those sweetheart deals provided in the wake of the first wave of child abuse scandals.

Our inability to imagine the future leads to a situation where Ireland has been described internationally as “the worst case scenario for growth” (pg 174).  I’m not sure that this is a “consequence of an inability to imagine the future” (pg 177). More likely it is a deliberate disregarding of the possible future for reasons of power, clientism, tribal loyalty and party over country.

What has occurred to me while reading about organisational change and thinking about the desperate entrenchment of privilege in Irish society, is the question of whether we have fallen into a societal Nash Equilibrium.

Wikipedia describes a Nash Equilibrium as:

If each player has chosen a strategy and no player can benefit by changing his or her strategy while the other players keep theirs unchanged, then the current set of strategy choices and the corresponding payoffs constitute a Nash equilibrium.

A website that talked about organisational change points out that:

“There is no guarantee that a Nash equilibrium is optimal for the system as a whole. Most are not. However, it is often very difficult to move from one Nash equilibrium to another. To do it successfully, all players must be made aware that a better state is attainable and they must trust each other to change.”

Machiavelli got there earlier when he said:

There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things. For the reformer has enemies in all those who profit by the old order, and only lukewarm defenders in all those who would profit by the new order, this lukewarmness arising partly from fear of their adversaries … and partly from the incredulity of mankind, who do not truly believe in anything new until they have had actual experience of it.”

We can see this in the state of Ireland at the moment. We have moved from De Velara’s “comely maidens, dancing at the crossroads” to Orna Mulchay’s description of “pert breasted women” wandering around Sean Dunne’s planned Knightsbridge in Ballsbridge. There is an illusion of change without real sustainable progress or alteration of the power structures that underlie the State. Instead of change what we have had over the last decade is a chimera, as Dublin became the site of Europe’s biggest ever fraud (Parmalat pg 134), the largest every bankruptcy in EU history (DEPFA pg 140) and a $500 million scam (pg 140).  We have had governments that ideologically promulgated inequality (pg 94 on McDowell). We had rulers who sense of entitlement almost lead to Bertie Ahern becoming the highest paid leader in the world, that is, before public outrage finally called a halt to the incessant political wage hikes.

The problems that O’Toole reflects on, ending with the mortgaging of the State to bail out Anglo Irish Bank, are endemic, systemic and deep rooted. J.J. Lee twenty years ago pointed to “a suspicion of the intellectual process and the value of ideas’ among businessmen”, an attitude Ivor Kenny “attributes to the pervasive anti-intellectualism of Irish culture”.

Look at who benefits from the continuation of culture. “The sanctity of property, the unflinching materialism of farmer calculations, the defence of professional status” were for decades the key values of the Irish State; values baptized by the Catholic Church (Lee, 1989 pp 159).  O’Toole shows that they still are. These barren virtues were typical of the mercantile cultures that predated the intellectual enlightenment in Europe, and indicate unenlightened attitudes to knowledge and innovation and which see civic virtue as dangers that can upset the status quo. Innovation does upset the status quo, because it generates a new dynamic in a non-linear system leading to unpredictable results.

Enabling this dynamic is the essence of economic growth and development. Powerful interest groups tend to block technologies to protect their rents. Our society’s structure, as well as our beliefs and attitudes need to ensure that dynamic change is allowed to occur.  Despite all our economic growth the focus has always been on the encouragement of Foreign Direct Investment in Ireland rather than the growth and development of native industry.  The fortunes gambled at the Casino of the Celtic Tiger were not gambled on creating an Irish Google or Microsoft. Instead they were thrown at bricks and mortar and the property shell game.

Problems of perception with regard to the value of science and progress and the whole action of modernism are deeply embedded in Irish culture. The power of this culture is reflected in the traditional interest groups of the State: the farmers, the vintners, the builders and the clergy.  This is all laid bare in this book.

The extant power structures of Irish culture embodies Foucault’s notion of relationships of power acting on actions, controlling the choices and constraining the mode of development of others. The outcome of this culture is intellectual poverty and the stunted development of a State, benighted by generations of emigration.  The institutions of the State played midwife to and supported this culture. The ultimate tragedy we are faced with is a return to the dysfunctional cycles of the past as the demon of emigration rises to haunt the country again.

Our problems stem from inflexible structural systems where these powerful, vested interests have acted to discourage any change that could threaten their rents. Debates over the morality of divorce, the reform of the Common Agricultural Policy, the productivity of the public service have all taken place in struggles to preserve what each group saw as its own interest. At the same time no debate has taken place on the importance of an innovative knowledge-based economy in generating wealth and promoting societal well-being.  An economy in the service of the people as opposed to a people in service to the economy.

The regime of Church sponsored censorship, which beggared the intellectual development of Ireland and stifled this temperament for much of the 20th century is an absolute moral bad.  It is no coincidence that economic stagnation paralleled intellectual repression. The problem with the Catholic Church is that it has at least from the time of Copernicus become, as Hans Kung points out in his Short History of the Catholic Church, “an institution characterised not so much by intellectual effort, empirical assimilation and cultural competence as by defensiveness against all that was new”. As a consequence, “in the Catholic countries, hardly any later generations of scientists appeared” (Küng  p 155). Catholic beliefs are barren ground for the development of scientific thought; barren ground for the development of modern thought and modernisation.

Küng traced the modern development of France from the time of the revolution, when the secular power of the Church, which extended to education and hospitals, was replaced with a secularised republican culture (Küng, 2001).  The lesson from our past is that this closed-mindedness is destructive to human growth and development. O’Toole says Ireland has essentially to grow up and become a modern society, as a first step out of the tar-pit we have become mired in, echoing the evidence of Küng.

It is easy to come away from this book with a sense of despair. The nation plundered, our children’s futures mortgaged, emigration as the only route out of the past and the maintenance of existing power structure that have not only failed but have damned our society since Independence.  In the end, despair is the only sin. We must not go gently but rather marshal our anger and use it to forge new structures and a new modern Ireland. Read this book. It will help gather your anger for the tasks that lie ahead.

Discussion

We welcome and encourage lively discussion from the public about articles on Irish Left Review. You can leave a comment using the form at the bottom of the page. Please read through the existing comments before posting your own.

  1. Comment by: Padraig McKeon

    Dec 1st 2009 at 16:12

    That’s an engaging review that might interest me in the book. What would keep me at bay however is a residual uncertainty as to what F O’Toole really stands for and how he would act and take responsibility. He is described here as a great ‘analyst’. Analysis, dissection etc is all well and good but it’s being clever after the fact. Forgive me for holding my admiration for someone whose courage is measured by their ability to act on conviction of something that is not yet proven.

  2. Comment by: Dermot

    Dec 1st 2009 at 21:12

    Padraig
    don’t want to the discussion to be about FO’Toole himself. He was warning about this while it was happening and he was one of the people behind TASC which has pulled together some ideas on how to fix the problem.

  3. Comment by: Philip Pilkington

    Dec 17th 2009 at 00:12

    Great review of what looks to be a very good book.

    I have to make a not so minor criticism though. While it may be true that the Catholic Church are responsible for anti-intellectualism etc (although who’s responsible for the Chucrh… can’t blame that one on the Brits - that’s homegrown…) I nevertheless think that critiques on Irsih society are stifled by an obsessive anti-clericism.

    Today this ideology is rapidly deployed by the red-tops to rile up Brass Eye-esque hysteria and (typically) a reinforcement of judgements based on moralism. As sickening as the abuse stories are this is the “progress” that comes from debating them.

    On the side of critique anti-clericism blinds people to the fact that this is no longer the main problem in Irish society. Today developers are more dangerous than priests and yet we tirade against the Church - even in your wonderful article you gave it the last word.

    It looks to me that the mindset ingrained by the Church absorbed both the “Establishment” and the “dissenters” - both are caught in the confines of that ideology. I think we should just drop it all together - its unproductive.

  4. Comment by: Dermot

    Dec 17th 2009 at 10:12

    Philip

    Developers have been incredibly destuctive over the past few years. Add in the Bankers that fuelled them. And the regulators that let them run riot. Cherry on top is the Government that thought all of this was OK.

    What we need is proper governance and accountability. I genuinely think this involves seperation of church and state. No matter how benign the church. Even it what wholly composed of good people like those I knew growing up. And yes the church is only one of the entrenched vested interests. Given its role and position in society it is an important one.

  5. Comment by: Philip Pilkington

    Dec 17th 2009 at 12:12

    I really don’t think it is that important an institution in contemporary Irish society and I think the attention its being given tends to distract from the real culprits of regression.

    Irish people have always been quick to attack irrelevant figures and institutions as the progenitors of their woes - just think of Brit-phobia, especially among the working-classes.

    An attack launched at something that (a) doesn’t really exists anymore or (b) is under attack from all sides and spiraling into self-destruction, is an easy attack with little risk to either the attacker or the elites. That’s why the tabloids have a field day on Church scandals.

    If, as O’ Toole claims, Ireland is still living in the Mercentile era (not sure how accurate that is, but a nice analogy) then at least its critics should focus firmly on contemporary rather than historic forces. No point in railing against the Church - its suicidal, just wait for it to die.

  6. Comment by: Noreen

    Dec 17th 2009 at 14:12

    Good review, followed by a totally nonsensical comment from Padraig. Excellent powers of analysis are usually regarded as a good thing in an author. How bizarre to keep oneself “at bay” from reading a book because you have “a residual uncertainty” as to what the author “really stands for”. Read the book, Sherlock, and you’ll find out. O’Toole’s a journalist, for heaven’s sake. He “takes responsibility” by investigating what happened.

    Why on earth would anyone “hold” their “admiration for someone whose courage is measured by their ability to act on conviction of something that is not yet proven”? You mean like George Bush invading Iraq over WMD’s? Bankers lending to all and sundry in the belief the property prices would keep rising? Seems to me that idiots acting on their convictions are responsible for an awful lot of our troubles to begin with.

  7. Comment by: Paul Healy

    Jan 3rd 2010 at 21:01

    I am currently reading the book with my jaw wide open, when not reading passages to my partner. She suggested I ask myself what was Fintan O’Toole doing at the height of the madness in 2006. Was he critiquing from the sidelines or participating in the madness. The answer sadly is he was right in it with the rest of us, applying for planning permission to QUADRUPLE the size of his SECOND home in Ballyvaughan. Reference here:
    http://www.independent.ie/national-news/heritage-body-still-concerned-over-otoole-house-plan-87581.html

    Sad but true.

    Still a great book.

  8. Comment by: Philip Pilkington

    Jan 4th 2010 at 16:01

    Another strange, particularly Irish argument. The notion that its was somehow “all our faults” that a serious credit crisis occured, that we shouldn’t have “tricked ourselves into thinking that Ireland could be prosperous”.

    Yes, O’ Toole was probably trying to build a nicer house - personally, I was working part-time for a major auctioneering firm. Does this mean that myself and Fintan are somehow to blame? I seriously doubt it.

    Neither one of us has or had any institutional power. We didn’t have any control over the issue of credit - like, say, the Financial Regulator has. We didn’t have any direct influence on the property market - like, say the Taoiseach or the Finance Minister could have had at the time. We didn’t have any sway over how much Irish people were being paid (there is a significant connection between low-pay, high-prices and the abuse of credit) - employers associations and the FF government certainly did.

    No! This was not everyone’s fault. Most people were just trying to improve their lives, they weren’t invited on board the ship - that was filled with specific breed of fool. No prizes for guessing who…

  9. Comment by: Tombuktu

    Jan 21st 2010 at 20:01

    [I risk becoming a magpie, picking up other people's comments on books reviewed here, but here goes!]

    Henry Farrell at Crooked Timber has commented on Ship of Fools:

    [T]here is a quite significant hole in the book. Apart from a brief reference near the beginning to the “weaknesses and limitations” of the social partnership process, and an aside later on about how workers made out like bandits from the privatization of Eircom, there is no discussion of the role that trade unions and the left played in either passively supporting the Celtic Tiger economy (through their supine acceptance of inequality etc) or actively embracing it. If social partnership and consultation played a role in Ireland’s economic success during the 1990s and early 2000s, it surely also played a part in its downfall too. It may be too crude to argue that trade unions were bought off by wage increases and tax cuts for their members, so that they weren’t too bothered trying to organize the growing sectors of the economy or provide a substantial alternative vision of Irish prosperity – but it isn’t that far from the truth either. If the Irish right (represented by an alliance of Fianna Fail politicians who were cosy with business, and the PDs who were ideologically gung-ho free marketers) was intellectually ascendant over these years, it was partly the left’s fault. I’d surely have liked to have seen O’Toole discuss this – it seems to me an important part of the story that he isn’t telling.

  10. Comment by: Brian

    Apr 2nd 2010 at 12:04

    Interesting point Paul concerning what this author himself was doing during the madness. Typical hypocricy from hindsight experts. Reminds me of stock brokers or currency experts , including one who recently opined that he has been warning of Euro problems for the last 10 years ( sooner or later , his prediction had to come true ). However , I still look forward to reading the book

  11. Comment by: William Wall

    Apr 5th 2010 at 07:04

    Padraig’s comment that analysis is somehow suspect because it is post-factum is about as shallow as it gets. Ship of Fools is a fascinating, frightening and necessary book. It should be compulsory reading for every citizen of this shambolic republic. It’s a real history of what has happened to us, not a state-sponsored narrative. Excellent review.

This article is also being discussed on the following websites:

  1. Oct 26th 2011

Leave a Comment

(required)

(required, will not be published)

Sins of the Father

Sins of the Father:

Tracing the Decisions

That Shaped the Irish Economy,

by Conor McCabe

from The History Press

Now Available as an e-Book.

Subscribe by Email

Enter your email address:

Delivered by FeedBurner



Irish Left Review on Facebook

Best of the Web

  • The Greek debt workout will establish a benchmark for sovereign debt haircuts across the Eurozone

    I tried to reduce the size of this quote, but I kept on leaving important stuff out. The whole article is a must read, particular the point made earlier that the negotiations being finalised now between the ECB and private bond holders will ‘establish benchmark terms for other struggling Euro sovereigns as well. Thus, it is possible that the valuation of sovereign debt across all Euro nations will be established in relatively short order’. Anyway, this article by a couple of ‘humble investors’ provides plenty of clarity.

    We have not reached the end of history. Mankind evolves, as does capitalism and its many brands. But not that much. An objective look at our modern economic ecosystem shows clearly one unified global banking system that is actually made stronger by predictable, publicly aired tensions among competing political and economic theorists and practitioners. As long as lawmakers and we, the people that must obey them, continue quarrelling among ourselves, those that control money are free to do as they like. When the people revolt against the symbols of political power (storm the Bastille, storm the winter palace), then the people succeed in forcing those that control money to alter the political structure. Only when lawmakers take steps to limit bank system access to the nation’s resources by indenturing the factors of production (dumping tea overboard, storming the Eccles Building), can the nation’s capital shift back to the people.

    Today we have an oligopoly of central banks issuing the world’s baseless currencies and, by having successfully promoted substantial household and sovereign debt assumption, can now dictate resource allocation and fiscal policy terms. Against this power there is fragmentation - (mostly) democratically elected officials overseeing republics of generally obedient populations. Lenin knew; “by continuing the process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens”. John Maynard Keynes himself agreed: “There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose”.

    We argue that indebted governments have ceded that power to banking systems without conscience or public accountability. If the global banking system has ultimate power over how global wealth is perceived, (as it does), and it is the only institution powerful enough to keep indebted governments in control of their societies, (which it is), then the only reasonable strategy for an independent investor is to think like a Rothschild. Don’t fight the Fed - bet on it.

    No comments »
  • Protest at cuts in small rural schools Dublin, 1st February 2012

    Hundreds of teachers, parents and school children came from all over Ireland to protest at Minister Ruairí Quinn’s proposed cuts to small schools in Dublin when the Dáil was debating the bill.

    No comments »
  • Ireland has one of the most attractive tax rates for fracking companies in the world

    Very important point made by Natural Gas Europe here (posted on Shell to Sea) about the licencing agreement around Shale Gas (Fracking) and needs to be understood in the context of the news today that Tamboran Resources initial exploration in  north Leitrim has found that they could ultimately reach 2.2 trillion cubic feet of gas, worth $55 billion at today’s prices. Meanwhile Pat Rabbitte has asked the EPA do an environmental study, but this is very, very unlikely to veer from the assessment of the European Commission consultancy study on licensing hydraulic fracturing which found that there is no need for specific new legislation governing the mining activity.

    Besides the environmental impact, the financial cost of both that gas line and the potential shale gas excavation has caused consternation. Currently, Ireland has one of the most attractive tax rates for companies in the world. Companies in Ireland are, in most cases, required to pay only 25 per cent corporation tax, a much lower rate than most other countries with possible shale gas reserves; Ireland also does not require companies to pay any royalties to the government on saleable gas. Tamboran, Lough Allen Natural Gas and Enegi may be required to pay between five and fifteen per cent over this rate, but, even at a higher rate, the gain for the government will be lower than for most other countries in comparable situations. Pundits and protestors alike say that the government is effectively giving away a valuable resource, owned by the Irish people, to outside companies, for very little in return.

    2 comments »
  • Conflict of interest is so deeply embedded in Ireland, no one seems to notice

    The cops were very swift to close down the demonstration in the NAMA building that  Unlock NAMA occupied on Saturday the 28th. They haven’t been as swift though to investigate Anglo Irish Bank. A big blow to that investigation is due, apparently, to the fact that the cop leading it went to work for Bank of Ireland. It is not unusual for people from the fraud squad to move into the private banking sector, we are told, just as we were told that it isn’t unusual for people to move from the regulators office or the Central Bank (when they were separate bodies) to the boards of private banks. Unlock NAMA revealed that the building they occupied was in a very bad state of repair. Add to that the difficulty in establishing that it was a NAMA building at all, considering that it was added to the foreclosure list incorrectly. This should open up discussion on what is happening to all the other NAMA buildings, at the very least. At the most there should be uproar about the massive stock of properties that NAMA controls the loans of which is being allowed to rot and devalue. These properties are being held on to simply to try and artificially hold the price on property and provide the means for future speculation.

    Senior garda fraud specialist retires to work for Bank of Ireland

    The senior garda detective who was in charge of the Anglo-Irish investigation for 18 months took early retirement at the end of last year and is now working with Bank of Ireland, it has emerged.

    Former detective superintendent Pat Collins, 52, was regarded as the Garda’s top expert in corporate fraud investigation. He spent much of his career in the Fraud Squad and before taking charge of the Anglo investigation he spent time on secondment with the Office of the Director of Corporate Enforcement working with its director, Paul Appleby.

    Former colleagues say his departure — on full pension after having served 30 years in the force — will be a major blow to the investigation.

    Coveney adviser’s patriotism stressed to secure special pay

    Elsewhere, Minister for Agriculture Simon Coveney is in the news for asking for a €130,000 salary for his special advisor Fergal Leamy, a former chief executive of Greencore USA. The cap as we are well aware after all the breeches of it is €92,672. Leamy didn’t last long, despite Coveney pleading that he was desperate to do the state some service he left after four months. He got an offer from an equity firm in the London that he couldn’t refuse. However, the story also reveals that Simon  Coveney’s brother, Patrick Coveney is chief executive of Greencore. Of course Greencore has a long and controversial history, which Shane Ross referred to as a template for the worst excesses of corporate Ireland, a close rival to DCC.

    No comments »
  • Can We Still Write Big Question Sorts of Books? | David Graeber

    David Graeber and the model of his ‘popular’ yet scholarly book Debt: The First 5000 Years

    So: what was to be the model for a big questions sort of book, and how to write a book that would still be scholarly, but not academic?

    This is what I came up with:

    Of all the models I considered, the most amenable turned out to be the approach adopted by Marcel Mauss. This might seem odd. especially because Mauss never actually wrote a book; he’s mainly famous for a series of essays. Yet many of these essays-not just the Gift, but his essay on the person, techniques of the body (where he coins the term “habitus”), sacrifice and magic-really have had a profound effect both on all subsequent scholarship, and, to differing degrees, political and social debates ever since. Mauss had an uncanny ability to ask the right questions-often, questions he was the first to pose, and which have become mainstays of theoretical debate ever since. His was also an appealing model because Mauss was both a serious, committed activist (he was especially active in the French cooperative movement), and a scholar of remarkable erudition. His problem-and this, I suspect, is why he never did write a proper book, despite numerous attempts-was that he was also almost unimaginably disorganized, and therefore, terrible at exposition. I suspect if alive today he would have been quickly diagnosed with severe ADD.

    1 comment »
  • Irish ‘SOPA law’ another under the radar attack on digital rights by a craven government pandering far too easily to corporate interests

    Very strong and accurate piece from Karlin Lillington in the Irish Times today, making no bones about the motivations behind the changes in copyright law that Sean Sherlock and the Irish government are trying to sneak in. It’s odd at a time when the SOPA law in the US, which is similarly motivated to the Irish law, has just been dropped.

    FOR THREE governments in a row, “short-sighted” and “sneaky” seem to have become the relevant terms in operation when bringing in controversial, high-impact legislation on digital issues.

    In the past, from the government’s perspective, this approach has worked well in shoving in poorly drafted, unscrutinised law on the controversial area of data retention, giving the Republic one of the most severe, internationally criticised, anti-business retention regimes in the world.

    This time around, the Government is trying again to use secondary legislation - a statutory instrument requiring no discussion and no debate in the Oireachtas - to (supposedly) protect intellectual property for a narrow band of hard-lobbying entertainment industries.

    For despite what the ‘hard-lobbying entertainment industries’ might say internet piracy is not killing off its profits. That assumes for a start that the amount produced is static, which given the amount of ‘content’ flooding towards us each day is absurd.

    But more importantly, there is evidence (from numerous mainstream studies and reports) that industry claims about piracy decimating revenue, jobs and creativity are vastly overstated. A careful analysis of such claims by Julian Sanchez on Ars Technica ( iti.ms/wT8l02), picked up and further discussed by Forbesiti.ms/xQJXhg), indicates piracy has actually had only a minor impact on these industries.

    The record industry in the US, for example, has about double the new releases it had a decade ago, when piracy was barely on its radar. The film industry also has more releases now than in pre-piracy days and its most pirated movies are also those that made staggering box office profits. Sanchez cites evidence that the music industry is making back profits lost to piracy through “complementary purchases” such as concert tickets. And a recent report issued by a US anti-piracy lobby group rather farcically indicates its clients are doing quite well, thank you.

    3 comments »
  • Davos dilemma | Michael Roberts

    The majority of those at Davos think that Capitalism isn’t working, but don’t feel there is a need to change anything because its working rather well for them. It’s up to those not in the 1% then to change it.

    The strategists of capital are attending their annual jamboree in the snow playground of the super-rich in Davos, Switzerland for the World Economic Forum. Many of the top 0.1% of income earners are there. And this year the main theme is whether capitalism works and is fair.

    Capitalism is in crisis - and this time the word ‘crisis’ is not hyperbole. Even the 2600 attendees at Davos recognise that. According to a survey by the financial broadcaster, Bloomberg, almost 70% of those asked believed that the capitalist system is in trouble, with 32% saying it needs “radical reworking”. Less than 20% reckoned ‘free enterprise’ is working. Most Davos 0.1 percenters are really worried that this failure of capitalism to work could lead to ’social instability’ in one form or another.

    And more than half who were asked at Davos thought that inequality of income and wealth under capitalism was damaging economic growth. But only one in five wanted any urgent action on the issue! It seems that greed triumphs over economic logic - or should we say, class interest rules

    No comments »
  • The Promissory Notes | Tom McDonnell

    Economist Tom McDonnell of TASC provides a brief primer on IBRC promissory notes, which is available on Slideshare. Click here to view it in it’s own web page.

    No comments »
  • Michael Taft talks to Doug Henwood of Left Business Observer about the Irish Economy| 7th of January

    Michael Taft talks to Doug Henwood of Behind the News in a detailed 30 minute discussion about the Irish economy which was posted on the 7th of Jan. The second half of the show is given over to a discussion with Jodi Dean about Occupy Wall Street and ‘demands’. It’s also worth reading Jodi Dean’s article on Occupy Wall Street and the Left which was published today on Critical Legal Thinking.

    MP3 Link.

    [display_podcast]

    No comments »
  • What are bankers doing inside EU summits? | Corporate Europe Observatory

    Important information here on the extent of bank lobbies influence in the resolution of the Greek debt crisis, particularly when it comes to plans which require ‘private sector involvement’.

    At the Euro Summits in July and October 20111, crucial decisions “to save the Euro” and “to save Greece” were made. It was agreed to restructure Greek debts and banks were asked to accept a ‘haircut’ to their profits to avoid a Greek default and the risk that some banks might default as a result. In Summer 2011, the press was full of stories about the informal negotiations between EU leaders and the banks about the level of private sector involvement in restructuring Greece’s debts.

    The Institute of International Finance (IIF), a lobby group established in 1983 by the biggest banks and financial institutions in the world to deal with the question of sovereign debt2, became the EU’s interlocutor on the Greek debt issue. Its proposals -described as ”offers”- received red carpet treatment.

    No comments »

Link Archives »

Authors