Comments on Peter Hartcher “Give us $52m, and we will decide who runs the country”, 2/02/2011, http://www.smh.com.au/opinion/politics/give-us-52m-and-we-will-decide-who-runs-the-country-20110201-1aceo.html?posted=successful
The article, while interesting to some, demonstrates the shallowness of some commentators in their analysis.
While it is not wrong to call any changes a government makes reforms, it is misleading to imply all reforms are good for the nation.
Just consider Peter Hartcher's concluding statements: "One of the central reasons that Australia's economy is outperforming the entire developed world at the moment is that we had two decades of bold reform. The reform era has been ended cheaply for unions and capital, but at enormous potential cost to Australia."
Howard lost his last election not because of Unions campaign advertisements, but because of its own longevity and his stubbornness to pass the leadership to younger ones. Voters were tired of Howard, and his IR reforms went too far for many voters' comfort.
Rudd lost his PM position, not because of miners’ advertisement campaign against the RSPT, although that was the last straw. The RSPT itself, of course, was poorly designed and the processes deeply flawed, a reflection of his management style of strong control and leadership shortcomings of lack of consultation.
He essentially lost his own credibility long before that. And his management style and leadership skills did help his fortune at the late stage of his Prime Ministership.
So, in both cases, there were much more fundamental reasons why each of them lost the leadership. Saying their lost means losses of reforms at enormous potential cost to Australia is simply misleading at the best.
OF course, Peter Hartcher appears to be politically biased towards the current government.
Is this a disguised show of support?
2011-02-01
Better ways to milk the BHP cash cow
Comments on Stephen Bartholomeusz “Milking the BHP cash cow”, 1/02/2011, http://www.businessspectator.com.au/bs.nsf/Article/BHP-Billiton-Rio-Tinto-copper-gold-iron-ore-pd20110201-DN3SR?OpenDocument&src=sph&src=rot
It appears that the big mining companies might need to establish capital assets management teams within.
Clearly they have the expertise in their own mining industry.
But they probably lack the expertise to fully take advantage of their cash or liquid assets and the world equity markets over both shorter and media terms.
Further, this type of assets management teams can combine the flexibility of movement between equity markets and merger and takeovers to generate returns that are not available without such synergy. It is the economies of scope, perhaps.
In that respect, Telstra is probably in the same basket in terms of cash flow, although it should have diversified much earlier.
It appears that the big mining companies might need to establish capital assets management teams within.
Clearly they have the expertise in their own mining industry.
But they probably lack the expertise to fully take advantage of their cash or liquid assets and the world equity markets over both shorter and media terms.
Further, this type of assets management teams can combine the flexibility of movement between equity markets and merger and takeovers to generate returns that are not available without such synergy. It is the economies of scope, perhaps.
In that respect, Telstra is probably in the same basket in terms of cash flow, although it should have diversified much earlier.
Globalisation fruits
Comments on Michael Stutchbury “Globalisation's fruits sweet and sour”, 1/02/2011, http://www.theaustralian.com.au/business/opinion/globalisations-fruits-sweet-and-sour/story-e6frg9p6-1225997666249
In Australia we talk about the two speed economy associated with the mining boom.
The mining boom is a result of the two world speed economy, one booming large developing economies and the more industrialised economies.
The world economy is and will continue to display very different dynamics over the next two decades as Asian economies continue to achieve high growth.
This world economic dynamism has just caused a re-alignment of world prices including wages, but its impact on that process will be increasingly greater and accelerated over the coming years.
It is likely to be a significant change in wealth allocation in the sense that some developing countries will be able to buy assets world wide more cheaply while most industrialised countries will have to pay comparatively more for their needs.
The euro zone will pay a greater price for its inflexible monetary system than if it were not a monetary union of fiscally independent countries.
There will be larger labour movement from more problematic countries to more sound economies in the euro zone. That movement could be smaller under a more flexible monetary arrangement. That forced larger labour movement will cause more dislocation of other resources that is why it is suboptimal financial arrangement.
However, even if the euro zone can overcome this crisis without too much damage on itself, then in the longer run, its member countries will be forced to be more prudent in their individual fiscal affairs and possibly more coordination between the members.
In Australia we talk about the two speed economy associated with the mining boom.
The mining boom is a result of the two world speed economy, one booming large developing economies and the more industrialised economies.
The world economy is and will continue to display very different dynamics over the next two decades as Asian economies continue to achieve high growth.
This world economic dynamism has just caused a re-alignment of world prices including wages, but its impact on that process will be increasingly greater and accelerated over the coming years.
It is likely to be a significant change in wealth allocation in the sense that some developing countries will be able to buy assets world wide more cheaply while most industrialised countries will have to pay comparatively more for their needs.
The euro zone will pay a greater price for its inflexible monetary system than if it were not a monetary union of fiscally independent countries.
There will be larger labour movement from more problematic countries to more sound economies in the euro zone. That movement could be smaller under a more flexible monetary arrangement. That forced larger labour movement will cause more dislocation of other resources that is why it is suboptimal financial arrangement.
However, even if the euro zone can overcome this crisis without too much damage on itself, then in the longer run, its member countries will be forced to be more prudent in their individual fiscal affairs and possibly more coordination between the members.
ERA rating again
Comments on Luke Slattery “Absence of top-flight experts”, 1/02/2011, http://www.theaustralian.com.au/news/opinion/absence-of-top-flight-experts/story-e6frg6zo-1225997725270
Presumably, the methodology and standard used are also released with the ERA release itself, so people can examine how the rating was done and how it could be improved in future ratings.
One area of particular interests is whether how different the standard is from the standard for only advanced/industrialised countries. The latter should be more comparable given the income and wage levels are similar among this group of countries.
Poorer countries have difficulties in attracting top researchers, as reflected as the brain drain phenomenon.
PS: see also my earlier comments on Professor Margaret Sheil's article today.
Presumably, the methodology and standard used are also released with the ERA release itself, so people can examine how the rating was done and how it could be improved in future ratings.
One area of particular interests is whether how different the standard is from the standard for only advanced/industrialised countries. The latter should be more comparable given the income and wage levels are similar among this group of countries.
Poorer countries have difficulties in attracting top researchers, as reflected as the brain drain phenomenon.
PS: see also my earlier comments on Professor Margaret Sheil's article today.
First Australian ERA rating
Comments on Margaret Sheil “Big picture reveals impressive achievements”, 1/02/2011, http://www.theaustralian.com.au/news/opinion/big-picture-reveals-impressive-achievements/story-e6frg6zo-1225997656630
Obviously, it is an interesting and difficult exercise and admittedly it is impossible to be perfect in rating.
A number of comments on general rating of research.
Firstly, what the standard used in this is matters a lot.
What is the world standard used in the comparison? Is it including all universities from both industrial and developing countries, or is it excluding developing countries in which most universities have lower standards?
Secondly, the staff to student ratio should also be considered as the impact of excessive burdens of teaching on research and incorporated in some way into the rating to have universities compete on the same footing.
A closely related factor is the cost levels of inputs, such as wages and salaries and capitals used.
Thirdly, some commercialisation of research may also warrant some consideration, as not all applied may attract the same citations in journals.
Obviously, it is an interesting and difficult exercise and admittedly it is impossible to be perfect in rating.
A number of comments on general rating of research.
Firstly, what the standard used in this is matters a lot.
What is the world standard used in the comparison? Is it including all universities from both industrial and developing countries, or is it excluding developing countries in which most universities have lower standards?
Secondly, the staff to student ratio should also be considered as the impact of excessive burdens of teaching on research and incorporated in some way into the rating to have universities compete on the same footing.
A closely related factor is the cost levels of inputs, such as wages and salaries and capitals used.
Thirdly, some commercialisation of research may also warrant some consideration, as not all applied may attract the same citations in journals.
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