sagenz

A continuing obsession with outdated socialist thinking

liberation: Trotter on the left's wish for “heightened contradictions”. continues a left discussion started by a Trotter column.  Trotter refers to a post by Bryce Edwards with the following para.  I read it and found myself wondering when these revolutionary socialists are going to understand the world has moved on.

Social Reform or Revolution remains today the classic statement of the revolutionary case against reformism. And to her, reform and revolution were inextricably linked. Luxemburg supported the struggle for social reforms as well as social revolution, considering the former above all a school for the latter, whose greater historical import she made clear in analysing the mutual relations of the two. She says that ‘By struggling for economic, social and democratic reforms on a daily basis, workers become more confident, better organized and aware of the need to fight for a fundamental transformation in the way society is structured’.

In comments someone shared by bemusement

what's so wrong with examining past thinkers? Should we jettison all previous influences on our politics? I agree that we need to be on guard against the old shibboleths and constantly question sacred cows etc, but I think there's still a strong place for the theories of many earlier thinkers.

Bryce - I shared Francescas bemusement at the ongoing obsession with historical thinkers.  Their lessons are not totally lost.  But discussing revolution or reform in a modern context?   The world had changed.  A black man has been democratically elected president of the most powerful country in the world.  And you still discuss revolution as if it has legitimacy.  If you cannot convince peacefully by the power of your ideas in this communication era then you have no right to assert the validity of your ideas, let alone your right to rule through revolution.

Reasons for poor corporate governance

excellent article, thanks to adam smith for pointing it out. 

Brian Gaynor: Diplock strangely silent in rocky year - Best of business analysis - NZ Herald News.

The Securities Commission must take some of the blame for these debacles, particularly where prospectuses and investment statements failed to clearly identify the risks associated with several public offerings.

the identification of issuers and the lack of strong accountability are good reasons why so many nzers invest directly in property.  the answer is to fix the cause not the symptom.  diplock needs to be replaced with a far more activist leader backed by the government.

barry Says:
December 20, 2008 at 8:08 pm

This is the very reason why so many NZers invest in property - the corporates are quite frankly idiots.
Have alook at the yield and capital gains that one would have gotten if youd have invested in the top 10 or top 20 and look over 10 and 20 years. They are the greatest wealth destroyers you could find. Just a few minutes of investigation tells anyone who checks that big NZ business is hoiw to loose lots of money - so go for property.
Yes property has ups ansd downs a bit - but no downs as bad as the corporates.

barry raises a good point.  is it the nz business legislative, tax and competitive environment, which i struggle to believe or is it the attitude to business success and the quality of management available?  Banks and Utilities make excellent returns from New Zealand.  They have dominant shares and command prices that are not based solely on local economies of scale and competition.  I believe that investment in equipment is discriminated against by the length of time the IRD allows assets to be depreciated over.  I had the experience of buying a 17 year old piece of equipment internationally because that is all the business could afford.

The new Key government will need to focus on upskilling New zealand management.  As someone who has spent the last few years working in the European head office of a sizeable multinational it becomes obvious how small, distant and relevant to world markets New Zealand really is. For New Zealand to prosper and increase productivity small companies going to market need to have available funds and investors need security.

To name 5 key things to improve NZ equity investor returns.

1. Change the NZ SEC to be an enforcement agency
2. Ensure that public issuers are educated and held accountable.  Hotchin and others should be investigated and jailed for their roles in losses to NZ investors
3. Improve corporate governance and management skills through executive education
4. Change depreciation rates to the same as Germany.  100% in year 1.
5. Legislation to ensure the risksof any investment are clearly and individually highlighted.