Categories
Liberty Science & technology

[1110] Of liberty-threatening technology applications

Technology has no inherent value by itself. Just like any tool, it sits neutrally in the middle of value spectrum. Such neutrality however does not prevent any technology from being utilized towards specific value, be it for better or worse. Nuclear technology for instance could be harnessed to provide humanity with electricity or as weapon, to strike terror to us all. Such duality is no different when it comes to closed-circuit television (CCTV) and radio frequency identification (RFID) in public space.

Both CCTV and RFID technologies are beneficial in many ways. Within private commercial spaces, both are used to make processes safer or more efficient or both. CCTV could be installed in places where no human could operate safely while RFID makes traceability of goods far easier. On the other end, if applied in public spaces, both infringe privacy.

CCTV perhaps needs no introduction. Between CCTV and RFID, the former has entered public consciousness far earlier in the 1990s. As a teenager, it was common for me then and even now to spot cameras in large stores. And I do remember there was a huge hype when CCTV was introduced along Malaysian expressways to discourage speeding. Despite public familiarity with CCTV, it is only until recently it has proliferated public sphere; the state is central to the proliferation. Cameras are installed in so many places by the state in the name of crime fighting that it chokes innocent but liberty-conscious persons.

I suppose, the first case of massive installation of cameras within public realm occurred in London. Given how frequent London is cited in any debate regarding CCTV and privacy, I would venture to say that London might have been the pioneer in the introduction of CCTV within public space. That might not be true and might be the result of a biased observation because I used to visit Samizdata — a UK-based libertarian group blog — frequently.

Nevertheless, from London or whatever it might originate from, the idea of CCTV within public space has reached Kuala Lumpur. While in the UK, the introduction has met some resistance, in Malaysia, I have yet to meet any protest at all, apart from myself. The image of Orwell’s Nineteen Eighty-four has been recalled again and again by those that oppose the installation of cameras in public areas but I do believe Oceania fits Malaysia better due to what I perceive as the willing acceptance of Malaysians of CCTV. I definitely refuse to accept CCTV in public space, more so if the operator of the CCTV is an illiberal state. The moral police would especially cherish the idea of electronic Mat Skodeng.

While CCTV could be a threat to privacy, RFID could be as many times more hostile to civil liberties.

I might have encountered RFID far earlier than I thought I had but my first conscious exposure to it was during a consulting competition at Michigan. During a research, I learned how RFID is used to record inventory and through such information, the realization of just-in-time philosophy that Wal-Mart practices. Despite the positive aspect of it, just like CCTV, the utilization of RFID within public realm is questionable from civil liberty point of view.

Malaysian passport for instance uses RFID. In fact, it is the first RFID-passport in the world. The RFID chip within the passport contains sensitive personal information and that information could scanned and read from afar. Many advocates of RFID insists that information within the chip is secured. Nevertheless, there are reports that point to the contrary. At a blog by Reuters:

With the debate over genetic cloning in full swing, hackers could not have cared less at a conference in New York City, where two presenters demonstrated the electronic equivalent of making a copy of an implanted RFID or radio frequency ID chip.

The point was to show just how easy it is to fool a detection device that purports to uniquely identify any individual.

As time progresses, it is all too possible to track everybody with RFID. At the hand of illiberal bureaucrats that respect no right, RFID could be the tool to suppress civil liberties. This used to belong in the realm of science fiction. Soon, too soon, it will be science.

Despite the rant, I am not an anti-technology or back-to-the-primitive preacher. On the contrary, I believe technology should be used to enhance our living experience. Technologies such as carbon sequestering to reduce carbon emissions and life-saving stem cell technology are essential to build a bright future for us and our children. But when any technology is used at the expense of certain ideals, it is only right to oppose such application.

Categories
Liberty

[1109] Of free Kareem!

Copyrights by freekareem.org. Fair use.
Categories
Economics Pop culture Society

[1108] Of the poor listen to local music

At the Marginal Revolution, based on a paper by Omar Lizardo:

…the data supplied by Professor Lizardo show that the poorer a country, the more likely it will buy and listen to its own domestic music. This makes sense given that music is a form of social networking and the relevant networks are primarily local.

There is an article discussing the same subject on the NYT written by the author of Marginal Revolution.

I skimmed through the paper for regression analysis and I found this on page 15:

Omar Lizardo. Fair use.

Malaysia is somewhere in the middle, above the regression line. You may take a closer look at the graph by clicking on it.

I wonder how the inclusion of population size would affect the analysis.

Categories
Environment

[1107] Of the oil spill near Tanjung Piai

There is an oil spill near Tanjung Piai, Johor caused by a collision between a container vessel and an oil tanker last Saturday, February 17. I am not sure how bad it is but the authority states that situation is under control and that the two vessels seem to have suffer only minor damage. Despite the comfort the authority is giving to concerned individuals, the spill is expected to be cleared eight days after the accident:

JOHOR BARU: The oil spill off Tanjung Piai will be cleared by this weekend.

The sea stretch was hit by an oil spill when an oil tanker collided into a container vessel there last Saturday.

The Marine Department, Department of Environment and two oil spill response contractors are using booms and dispersants to contain, break up and collect the 50 tonnes of medium fuel oil that spilled from the container ship. [NST, Feb 22 2007]

In a Bernama report earlier, the cleaning team had expected to finish up the work sooner:

Southern Region Marine Department Director Hazman Hussein, when contacted, said only two oil spots were still visible about two nautical miles from Tanjung Piai and efforts had been taken to clean them. [Bernama, Feb 19 2007]

I wonder how long the clean up activity would take if it had been a larger spill.

I am not being critical of the clean up team but I do think given that Malaysia controls one of the world’s busiest waterways, the threat of major oil spills is real. Thus, we need to have a quick-response clean up team that could do the job fast.

Categories
Economics History & heritage

[1106] Of fighting inflation by shooting down the zeros

What would one do to fight runaway inflation?

In Venezuela, chop the zeros off:

CARACAS (Reuters) – President Hugo Chavez said he will chop three zeros off new bolivar currency bills to bolster Venezuelans’ perception of a strong currency in a bid to curb inflation, which is now highest in Latin America. [Reuters, Feb 16 2007]

If I remember my history correctly, the German Empire took similar route to combat inflation right after the First World War. Though similar, there is one major difference.

In the aftermath of War to End All Wars that did not only fail to end all wars but instead made way for a larger war, the Allied was victorious and the Central Powers was devastated: the Ottoman Empire ceased to exist, Astro-Hungary disintegrated while the German Empire was humiliated through and through. As if such victory was not enough, the Allied at the Treaty of Versailles imposed heavy war reparation against the German state. Given heavy debt burden as well as the power to print money, the German government indulged in seigniorage.

The ability to print money might be cool but be careful, if you printed too much money, you might end up poorer, as the German learned in the 1920s. The German not only learned a lesson or two about inflation — they learned it the hard way.

In 1923, one US dollar was equivalent to 4.2 trillion mark. No. I am not kidding. That is 4,200,000,000,000 mark; 4.2 x 1012 mark. Imagine, if you lived in Berlin in 1923, you would have to use scientific notation to buy a sack of flour. And converse in German to boot!

And oh shit, imagine the (nominal) cost of roses on Valentine! Inflation on top of inflation cannot be good news.

Further, the nominal interest rate stood at around 900%. For comparison purpose, as of February 2007, the Malaysian nominal interest rate is 3.5%.

The funniest thing is, since prices across the board were raising so fast on daily basis if not on hourly basis, the central bank could not print out enough money to make life a little bit simpler for the Germans. In fact, there is one famous picture that depicts how bad inflation was back in 1923:

Public domain.

On Wikipedia: “A German woman feeding a stove with currency notes, which burn longer than the amount of firewood they can buy.

Suffice to say, I do not think a person could buy dirt with the mark in 1923.

Some time in the same year, the German government which got tired of probably raising the interest rate almost daily — while the people got tired of running from the banks to the stores just to make sure 4.2 x 1012 mark would still be 4.2 x 1012 mark an hour later — replaced the heavily inflated mark with a new mark. Those outrageous zeros were slashed. While the Venezuela is cutting three zeros, the German cut 12. The new regime brought sanity back to an insane monetary roller coaster ride.

Apart from that, the new mark was anchored to real assets, which, I do not think is true for the Venezuelan bolivar. Because of this — this is the only policy tailored to fight inflation — and the reputation of Venezuelan central banking, I believe that the problem Venezuela is facing would not end anything soon. Reputation is important in the fight against inflation. Given how populist the Venezuelan government is right now, I doubt the central bank — which I assume has no independence on monetary policies — would have the stomach to fight inflation.

Apart from that slashing of zeros, there are other efforts aimed to fight inflation. For instance, Venezuela is cutting down taxes to fight inflation:

Chavez said VAT will first be reduced on March 1 by 3 percentage points and then by a further 2 points on July 1. [Reuters, Feb 15 2007]

And to promise to introduce new taxes to replace the old taxes:

To compensate for the income loss, Chavez, a proud socialist, said the government will create new taxes, including one that could involve the private property of the rich. [Reuters, Feb 15 2007]

With the removal of VAT, prices could fall but it remains unclear what the net effect would be as, as stated in the first Reuters’ article, price could increase with the slashing of zeros. The price increase is similar to the effect of abolishing the pennies.

Moreover, the abolition of VAT encourages consumption, which could lead to demand-push inflation. I am unsure what the net tax shift would be though.

Right or wrong nevertheless, Venezuela will be an exciting economy to watch from far.