Saturday, 7 March 2009

Gwyneth Paltrow's Hindu Haircut

Regular readers of this blog may not have been aware: Gwyneth Paltrow has had a haircut.

Gwyneth revealed that this was part of the healing process following the death of her father. "I was very very attached to my hair," she says. "I still had hair from when my father was alive. I made it a talisman. Then one day, on a shoot with Mario Testino, I suddenly said 'I need to cut it now'. It was almost as if it was part of the grieving process. I just had to let something go."

Gwyneth may not have known this, but she is a karma yogi going through the process of samskara.

A karma yogi fulfills her destiny, or achieves personal growth, or attains moksha, by facing up to the slings and arrows of outrageous fortune with integrity and dignity, in accord with her dharma. Rituals, like cutting one's hair when a father dies, are ways of ways of coping with grief and moving the soul along its natural journey.

Traditional Hindu doctrine might have preferred for the psyche to step into a new life-stage in front of the sacred fire rather than at a Mario Testino photo-shoot, but that surely is a minor detail.

Sunday, 1 March 2009

Banker or Blogger (2)

A second innings then for this post...in response to Greg Pye's excellent comments.
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On the recent increase in US and UK Ginis, the OCED data does actually show a time series. The story doesn't really change if one looks back to the mid 80s. Here are the rankings from ~20 years ago from a sample of 24 (rather than 30) OECD countries:

1. Mexico 0.452
2. Turkey 0.434
4. United States 0.338
8. United Kingdom 0.325
12. Canada 0.287
15. New Zealand 0.271

- The biggest mover is New Zealand, which was a hot little economy in the 90s, and saw a sharp inequality rise then. Kiwi Ginis seem steady over the last decade

- The USA, and most of the OECD, have expectedly seen a steady rise in inequality
since the mid 70s, the earliest data on this table

- Inequality in Britain sems to have peaked 1990 and remained there or thereabouts ever since. The steep rise seems to have happened in Margaret Thatcher's time. Surprisingly, and maybe incorrectly, the last data point actually shows a small Gini decline in the UK
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On the irrelevance of national statistics, I do think inequality is experienced most powerfully within a tight reference group. As H.L. Mencken once said, "a man's satisfaction with his salary depends on whether he makes more than his wife's sister's husband". But I do think there is a difference between the angst induced by a brother-in-law's Ferrari, and the unease triggered by the suffering of millions of decent people.

What I'm trying to get at is the impact that that suffering has on the psyche. Does a keenly felt awareness of suffering push the psyche towards work, towards seriousness?

I love the thought that sensitivity to suffering need not be limited by national boundaries. Absolutely. But the boundary could provide the psyche with a prop with which to make peace with the suffering of innocents.

The central point in the first post was that the psyche tends to deal with injustice by wrapping itself around work, around seriousness. I'm sure it sometimes does. But the weakest part of the argument is that the psyche could, and often does, cope by imposing an identity on the people suffering, turning them into the "other". Race, caste, class, religion, nation...any schism will do. Once that boundry has been established, the psyche is free to go ahead and have fun.
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Was this post triggered, at some subliminal level, by the hoop la around Slumdog Millionaire?

Thursday, 26 February 2009

Blogger or banker?



Here's the theory on people who work for a bank and blog for fun. Do they think of themselves as bankers or bloggers?

It boils down to their Ginis. You see, some people have magic lamps inhabited by blue-suited banker Ginis, some people's magic lamps have sailor-suited Ginis... :)

Actually, a Gini coefficient is a measure of statistical dispersion, and is a standard measure of income inequality in a society. My take is that people from more unequal societies are more likely to define their identities in terms of who they are at work.

Why?

Imagine a relatively well-off person living in an obviously unequal country. He needs to make peace with the fact that he lives a comfortable life, but the people from the slum/ favela/ ghetto/ council estate/ inner city live obviously miserable, abysmal lives. The sheer presence of that abyss, the unspoken fear and guilt that that abyss evokes, pulls at the psyche of the comfortably-off like gravity. The psyche protects itself from that pull by believing that privilege and comfort are deserved, earned, by hard work, by education, by qualifications, by seriousness.

In this unequal context, it is hard to think of oneself in purely frivolous terms. It feels like being the surfer on the beach in Apocalypse Now. Its the reason why cricket in India or football in Mexico are not just silly games played for fun, they are about the redemption of national pride.

So what do I expect to observe in the data? I expect people from more unequal societies to wrap their identity ever more tightly around their professional selves.

Here are Ginis for some of the OECD-30. Their rankings are:

1. Mexico: .474
2. Turkey: .430
4. USA: .381
7. Great Britain: .335
8. New Zealand: .335
12. Canada: 0.317

The two most unequal OECD members are Mexico and Turkey. Fortunately, I have friends from Mexico and Turkey who tell me their compatriots unambiguously define who they are in terms of who they are at work.

Also, to my earlier observation, Britain's Gini is the same as New Zealand, and is a lot lower than the USA. Canada is even further away from the USA than is Britain. So if the theory holds, Canadians should be a less likely to derive their identity from work than either Americans or Britons, despite Canada's stereotypical cultural location somewhere in-between the USA and Britain.

India is not in the OECD. So I looked up the World Bank's Ginis metrics, which show that India is better (i.e. more equal) than the USA.

While that is flattering, and says something important about the world's only superpower, the World Bank might be systematically underestimating South Asian inequality. Pakistan looks really good on the same metrics, more equal than the Netherlands, Canada, France or Switzerland. That doesn't ring true. My hunch is that India really is in the mid - 40s pack, along with Mexico, China, Jamaica and Turkey.

A more classical theory, which involves no melodrama about the gravitational pull of the abyss, is the impact of marginal tax rates on labour supply. More equal societies have higher marginal tax rates. People therefore have less reason to work hard to earn money. They therefore invest more of their time, and identity, in leisure rather than labour.

I buy into the conventional theory, but it doesn't quite feel complete. Maybe that is because I remember an India with high marginal tax rates, in Indira Gandhi's time, when people still wrapped their identities around their work, even if they didn't work especially hard. The ways in which people construct their identities change more slowly than tax policy.

Saturday, 21 February 2009

A first class map



Here's a cricketing puzzle that's got me stumped.

England has about 39 counties or shires, or maybe that should be 42, or maybe even 46, an interestingly vague number unlike the unimaginative precision of the 50 American states...but the English taste for vagueness is not what this post is about. However one chooses to count, 18 adds up to less then half the English counties. Yet, only 18 counties (the darker coloured counties on the map above) play first class cricket. How did this come to pass?

For instance, Shropshire, that fabled land where the Empress of Blandings covered herself with such glory, would surely have a deep rooted cricketing culture? Or consider Lincolnshire, a well-populated county wedged in between the cricketing powerhouses of Yorkshire and Nottinghamshire. Surely Lincolnshire would be able to muster a decent county team? Club cricket is played in both Shropshire and Lincolnshire. But both seem content to remain Minor Counties, without objecting to the condescension loaded into that term.

Even more mysterious, Durham, the current champions, are the only Minor County to have been promoted to the first class level in 80+ years. This was a one time "historic" event. There is no mechanism by which the top Minor Counties get promoted to the first class level, and the weakest first class counties get relegated to the minors.

This instinctively feels odd to me, as an Indian cricket fan, because the growth of cricket outside India's traditional metropolitan centers is one of the most fascinating changes in Indian cricket over the last 25 years.

Thursday, 19 February 2009

The fit and proper persons test

Should the England Cricket Board have ever been doing business with Mr Allen Stanford?

BBC's Radio 4, with a bit of help from Twenty20 hindsight, think not. The BBC have a point. There always was something just a little fishy about the Texan billionaire. The ECB should have applied a "fit and proper persons test", a general sniff test, to check if this Stanford guy was someone they want to do business with.

Or should they?

The trouble with sniff tests is that it is really hard even for well intentioned, honest and experienced people to know exactly what they're sniffing. A generation ago, any sniff test run by the ECB would have failed anybody who was not white, well-bred and Oxbridge educated. Would that have been good sniffing? Or prejudice? One of the great things about the anonymity of markets is that is harder for prejudice to prevail.

There must be an intelligent middle ground somewhere between prejudice and Stanford...but its never obvious how to be both fair and prudent.
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An apology: a previous version of this post mentioned Mr Adam Sanford, a cricketer who played for the West Indies in eleven tests, instead of Mr Allen Stanford, the shady Texan financier. Apologies to Mr Adam Sanford

Sunday, 15 February 2009

Boars, Bears and Core Competencies

Being an omnivore is a winning strategy for bears and boars. Does the same logic work for business corporations?

Most management thinkers like corporations to be specialists (like anteaters) rather than omnivores (like boars or bears). CK Prahalad and Gary Hamel, the Core Competency gurus, usually advise businesses to stick to their knitting, do what they do best, and buy the rest on the market. This is not an especially new idea. Think back to Adam Smith’s pin factory or David Ricardo exhorting Portugal to stick with making wine and buy English cloth. Specialization leads to efficiency, which raises productivity and therefore incomes.

But are specialists too fragile? If one wants to think about businesses as institutions which are meant to be resilient to the madness which sometimes infects markets, maybe boars and bears are better role models than anteaters, hummingbirds or cheetah.

Pigs Gone Wild


An American friend I was dining with last week was talking about her life in Mechanicsville, VA. Her neighbour is a wild hog hunter. Maybe he has a boring day job, like being a mechanic or something. But hunting wild hogs is what he really does.

That brought back to life this marvellous story. Wild hogs, feral swine, the offspring of escaped farm pigs which copulated with wild boar imported from Europe as game, are thriving across the vast American wilderness. And with them is thriving a culture of guys who hunt wild hogs, accompanied by packs of dogs, armed with knives, shotguns or even bows and arrows, with the Confederate flag emblazoned on everything they wear.

In America, people hunt hogs. In Britain, hogs hunt people.

Ms. Carla Edmonds, a landowner in Gloucestershire, first encountered wild boar when she and her two dogs were riding along a path in the Forest of Dean, about 100 yards or so from the main road. “I saw a group of 20 or more. I couldn’t make out quite what they were, but then I could see they looked like pigs.” Ms. Edmonds’ dogs started barking and her horse became agitated. The herd of boar gave chase. “I could see them charging at huge pace” she said. Her horse was seriously agitated by the experience, and took a long while to calm down, and a less experienced rider might even have been thrown off her horse.

Subsequently, the wild boar dug up about 100 square feet of the Edmonds’ grounds. But despite these intrusions, Ms. Edmonds and her partner think the boar are “brilliant” and that “it was amazing...would love to see them again”. She may well have an opportunity to do so. After having been hunted to extinction 300 years ago, wild boar have reintroduced themselves to Britain spontaneously and now also live in Sussex, Kent, Hampshire and Devon.

What makes wild boar, Sus Scrofa, so successful? The same factor that makes Homo Sapiens so successful?

The thought was triggered by a book I read back in the 80s, Omnivore by Lyall Watson, a zoologist who observed that our evolutionary resilience owes a lot to our omnivorous diet. Boars (and bears) are omnivorous higher mammals, like us.