Categories
Economics Environment Science & technology

[1333] Of less trees means less cloudiness

A recent observation in Australia suggests that cloud formation is related to vegetation:

A fence built to prevent rabbits from entering the Australian outback has unintentionally allowed scientists to study the effects of land use on regional climates.

The rabbit-proof fence — or bunny fence — in Western Australia was completed in 1907 and stretches about 2,000 miles. It acts as a boundary separating native vegetation from farmland. Within the fence area, scientists have observed a strange phenomenon: above the native vegetation, the sky is rich in rain-producing clouds. But the sky on the farmland side is clear. [At Australia’s Bunny Fence, Variable Cloudiness Prompts Climate Study. New York Times. August 14 2007]

That may not sound as astounding as seeing a pig flying but wait till you see this picture:

NYT. Fair use. http://www.nytimes.com/2007/08/14/science/earth/14fenc.html

And what is so interesting about this finding?

Dr. Nair speculates that increases in the world’s population will prompt the clearing of more land to increase food production. But he wonders whether, in the long run, “we will reach a point of land clearing that will diminish food production,” because rainfall has decreased. [At Australia’s Bunny Fence, Variable Cloudiness Prompts Climate Study. New York Times. August 14 2007]

Can anybody say decreasing returns to scale?

Categories
Economics

[1332] Of is this privatization or nationalization?

With the proliferation of government intervention in the market nowadays, the terms privatization and nationalization can be confusing. For instance, PNB which has expressed its interest to take MIDF private:

PETALING JAYA: Pemodalan Nasional Bhd (PNB) has proposed to take private Malaysian Industrial Development Finance Bhd (MIDF) by buying the remaining 79.98% shares it does not own for RM1.90 each. [PNB offers RM1.90 to take MIDF private. The Star. August 14 2007]

Take private?

PNB is no private equity entity. Instead, PNB is an investment firm ultimately wholly-owned by the government of Malaysia through Yayasan Pelaburan Bumiputra. Wouldn’t that mean this exercise would actually nationalize MIDF?

Categories
Sports

[1331] Of Sneijder goes to Real Madrid

When Real Madrid expressed interest in Wesley Sneijder, Ajax said EUR27 million and no less. Initially, Real refused to pay for such amount in a grand fashion. Later however, Real relented and so, Sneijder will be leaving Amsterdam for Madrid:

Ajax and Real Madrid have reached agreement about the immediate transfer of Wesley Sneijder. The transfer fee for the 23-year old midfielder is 27 million euro. [Wesley Sneijder joins Real Madrid. AFC Ajax. August 12 2007]

This is a sad day but all the best to him.

And so, Ajax has sold two star players this year for over EUR44 million. The other star is Babel, sold to Liverpool for over EUR17 million.

For your information, EUR27 million is the largest sum Ajax has ever received for the sale of a player. That also makes the move as the second most expensive transfer in the Eredivisie. The most expensive transfer honor belongs to the crybaby Ruud van Nistelrooij. And yes, both players are now playing for the same team.

Categories
Photography

[1330] Of rag flag

Some rights reserved. By Mohd Hafiz Noor Shams.

Found somewhere in Brickfields, Kuala Lumpur, in April 2007.

Categories
Liberty

[1329] Of bicameralism to moderate crass democracy

Democracy in its purest form is a mere majoritarianism and a society built on mere majoritarianism is a society built on pure populism. There is nothing in populism and by extension democracy that guarantees liberty. Yet, democracy has proven to be an effective decision making tool, allowing differences to be ironed out peacefully instead of by force. For this reason, libertarians — for the sake of simplicity, liberals — prefer moderated democracy and a tool that offers that possibility is a liberal constitution which guarantees negative rights. The merging of the two tools results in a system known as liberal democracy. Unfortunately, any constitution may fail under heavy populist pressure for a constitution itself is not free from revision. Here is where another moderator of populist sentiment comes into play: bicameralism.

How is that so?

Bicameralism is simply a system of two legislatives chambers divided into the lower house and the upper house.

In the name of democracy, the lower house is sensitive to popular opinion. Representatives elected into the house have only one interest at heart and that is the people. Whenever popular opinion sways for better or for worse, so does the opinion of the lower house.

There are moments when public opinion exhibits excessive instant gratification quality with little regard to future outcomes. More often than not, such moments are filled with emotion or are made possible with limited information. It goes without saying that opinion or decisions made with incomplete information may not produce the best of all possible outcomes. Worse, in times of great distrust, some groups may try to oppress the weaker communities and the weakest of all communities are the individuals. Those are the moments when democracy looms menacingly, when tyranny of the majority is most relevant. This is why liberals are distrustful of democracy.

If placed on a two-axes graph which the horizon axis represents time and the vertical axis represents public opinion through some numeral values, short term-based public opinion sways wildly as time progresses. Extreme values toward one side or another — for instance, authoritarianism or anarchy — that prevail for only a short time frame may have destabilizing effect and undo years of progress. When emotion subsides and rationality dominates, the mob, and the society in general, may regret its actions as complete information becomes available only later.

The upper house functions to smooth out the crests and troughs of public opinion. In order words, it is less sensitive to crass democracy with farther perspective in temporal horizon. For liberals, the upper house is more interested in protecting the liberal constitution rather than kowtowing to the mob.

This however does not mean the members of the house — senators — are not elected into their seats. Democracy still plays a role in the makeup of the house but its effect is far moderated than that in the lower house. This alignment of interest is achieved by granting senators longer term compared to the members of the lower house. Through this itself, the atmosphere in the upper house is calmer, where rationality overcomes emotion, emotion that appeals to the mob. In this environment, discussion could be carried in a more productive manner.

The insensitivity to public opinion however creates another problem. Due to the longer term, upper house members — or senators — do have considerable power compared to their counterparts. This is where one must tread carefully since senators are less responsive to the people. Conferring the senators with too much power may create powerful oligarchy relatively unanswerable to the people. To reasonably eliminate such possibility, a upper house of a liberal democracy practicing bicameralism has only the power accept or reject law proposed by the lower house. The upper house itself cannot introduce or amend any law. It is not an agenda setter.

It has to be noted bicameralism itself suffers from status quo bias. Whatever the status quo, bicameralism in the form expressed here is still a moderator of democracy. Like democracy, it is a tool and it is not an end. For liberals, the only end is liberty.