Hayek’s Spontaneous Order Goes Global with Instagram

Instagram user diegotrial

Several months ago when I heard the news about Facebook paying $1 Billion for Instagram I thought ‘the world was going crazy’.  My first impression was to think that the ruling scale of values was mistaken.  That people was giving value to unimportant things while the rest of the world was still trying to manage to survive the day.  I couldn’t understand Why would a company pay such a huge amount of money for a software application for smartphones and iPhone that is only used for procrastination and doesn’t create any value for the world? Last week’s volcanic eruption of Fuego Volcano in Guatemala made me change my mind.

The entrepreneurs behind Instagram,  Kevin Systrom and Michel “Mike” Krieger, created an application that was not only user-friendly but that enabled users to share images from anywhere in the world immediately.  Such an application was created (maybe unintentionally) to become one of the fastest image reservoirs of instant news and global interconnection.  When Facebook bought this photo-sharing app and paid $1 Billion they had not only bought the access to an essential function in millions of smartphones around the world but also connected visually the planet as we had never seen before.  Last week’s event in Guatemala was the first time in my life when I could see through my phone in Denmark high quality images of events that were taking place in real-time more than 5,843 miles.  Indeed, Hayek’s ideas of how an spontaneous order works was going global!

“Spontaneous order is what happens when you leave people alone—when entrepreneurs… see the desires of people… and then provide for them. They respond to market signals, to prices. Prices tell them what’s needed and how urgently and where. And it’s infinitely better and more productive than relying on a handful of elites in some distant bureaucracy.” Leonard Reed

To say that the world is interconnected and interdependent means to say that we are able now able of bypassing normal newsbroadcasters around the world.  No longer will be that easy for anyone to control what  the world would see and what the world wouldn’t see (as critized when News corporations around the world have been used to show a biased reservoir of images and videos during the Gulf War, or in the war in Iraq to mention some examples).  Now, with access to photo-sharing applications such as Instagram the world not only has access to interconnection of real-time events but also has what Hayek explained as “a more efficient allocation of societal resources than any design could achieve.”  Instagram is one more societal tool that enables us to achieve the best of humanity if used for the right purposes.  Because of this reasons the founders of Instagram earned  that billion dollars and the world is wealthier today.


On the fallacies of an Emerging Global Left

Socialism is unrealizable as an economic system because a socialist society would not have any possibility of resorting to economic calculation. This is why it cannot be considered as a system of society’s economic organization. It is a means to disintegrate social cooperation and to bring about poverty and chaos.” Ludwig von MisesMoney, Method, and the Market Process.

Recently, an article from the blog Poverty Matters (supported by the Bill and Melinda Gates Foundation) authored by Jayati Ghosh in the Guardian elaborates on how a new global left is emerging as a result of a transcendance of the traditional socialist paradigm.  Ghosh explains that this new global left has is currently transcending the traditional socialist emphasis on “centralised government control over an undifferentiated mass of workers, to incorporate more explicit emphasis on the rights and concerns of women, ethnic minorities, tribal communities and other marginalised groups, as well as recognition of ecological constraints and the social necessity of respecting nature.”  This transcendance is occurring via what Ghosh considers to be seven common threads that are not new but a result of a “collective failure of memory”.

These threads are:

  1. An attitude to what constitutes democracy,
  2. the rejection of overcentralisation,
  3. a more complex approach to property rights,
  4. a discourse in the language of “rights”,
  5. a realization that addressing issues only in class terms is not sufficient,
  6. a emphasis on gender as a a cause for addressing issues,
  7. an emphasis on environmental conservation, the protection of ecosystems, biodiversity and the integrity of a country’s genetic assets.

I wonder what Ghosh considered to be the traditional socialist paradigma.  Socialism and the ideas behind this socioeconomic system of collective ownership of the means of production is very diverse and it is incorrect and inaccurate to speak of a single socialist paradigm.  More so, what seems a New emergence of the left is in fact not occurring anywhere in the world.

Collectivism (inaccurately generalized as “the left”) in its many names and shapes continues developing itself within the same framework of ideas that have been used for centuries. While the historical context has changed the principles continue being the same.  As such, the thread number 1 which seems for Ghosh as a new attitude toward democracy is the result of the failure of the previous collectivist governments that have ruled the world.  There is no real change in the attitude toward democracy since collectivist ideas consider democracy as a means to the value they aim to achieve: collective power over the collective.  The only way of having a new attitude toward democracy would be in fact to reject it as a mean to achieve any end successfully.  This of course is not happening anywhere in the collectivist groups of the world.

As well, the point number two of overcentralisation is false since collectivism is a centralized system of organization in which at the end of the day the sole power over everything resides in the collective government.  The only change is not of how centralization happens but on how many people are to be managing that collective government (the Party, elites, corporations, oligarchies, et al).

Point number three and four have nothing new and are the same exact approaches that collectivism has had since it origin in regard to property and rights.  Collectivist philosophies consider all in essence the private ownership of the means of production to be evil, static in nature and inefficient to satisfy the needs of humanity. Its approach to rights is rooted on the principle that the only important rights are those of the collective and thus reject the individual rights of its members.

Points five, six and seven have also not changed in the collectivist mindset since they are rooted in the principles of class struggle that have only continued the trend of understanding society as a competing/destructive system based on gender, race, culture, religion, etc.  The principle continues the same: The so called  tension or antagonism continues to exists in their interpretation of society due to competing socioeconomic interests between people.

By definition, the only way in which any real change, evolution or overcoming of a collectivist philosophy in the globe will arise when the discourse starts by rejecting the philosophical principles in which they are rooted.  As such, unless they understand how and why the collectivist philosophy is full of fallacious principles that have caused death and poverty for centuries, there is nothing that will change.  There is no emergence of a new left, there is no resurgence of collectivism and the dialectics of historical materialism continue existing in the core of all collectivist philosophies.  It will be only until intellectuals have the common-sense and moral courage to question their philosophies of life that we may seem an end to centuries of collectivist failed projects of organizing society.  Until that day what we will continue seeing is the same social system that has destroyed the best within man for ages.

Global integration of trade

National Geographic is running a wonderful website on Globalization, the international exchange of goods, services, cultures, ideas, has brought increased wealth for many and transformed forever the way humans interact. But while its roots may be in commerce, globalization‘s effects can be very personal.

Advances in communication and transportation have created a rich, unprecedented mixing of cultures throughout the world. But there is a drawback. As international travel, economic migration, and the global spread of music, films, and literature bring more people than ever into intimate contact, human diversity is vanishing.

A shared language is perhaps the most profound expression of group identity and a critical tool for passing cultural knowledge from one generation to the next. But globalization is about integration. Whether by choice, by circumstance, or under duress, thousands of cultural and linguistic traditions are disappearing as their new generations adopt dominant national and global languages.

Workers, from wealthy consultants to unskilled laborers, are also on the move as never before. Some migrants are encouraged by host countries or regional agreements; others avoid official avenues and often live a shadowy, parallel existence once they arrive. Immigration is high, but it is economic migrants—seeking work more than a new homeland—who define our age.

Read more from them here: EarthPulse by National Geographic

TED lecture. Sheikha Al Mayassa: Globalizing the local, localizing the global

After watching a TED lecture by Sheikha Al Mayassa, a patron of artists, storytellers and filmmakers in Qatar, I had some questions.  First, she emphasizes how art and culture create a country’s identity — and how they allow every country to share its unique identity with the wider world.  While an interesting video, as usually happens in Islamic countries she refuses to acknowledge the fact that culture and art do not have to depend from the metaphysical foundations of any religious tradition.

Islam to her is Philosophy and Culture at the same time; and unfortunately she refuses to acknowledge the contradictions created by her religion by just ignoring them.  This is an interesting video that could help you identify how is it that philosophical contradictions are the root of our diferences with people that lives in areas of the world in which Islam rules.

As such, unless we want chaos it is necesarry that before “globalizing the local, localizing the global” we understand which are the philosophical contradictions that do not enable us (and them) to coexist in peace.

Here’s the video,

Joel Cohen: Top 10 key population trends on Earth with 7 billion

Joel Cohen is the author of the 1996’s bestseller on Population studies titled “How Many People Can the Earth Support?“. I remember some of its content and that it was one of the first book acquisitions I did from Barnes & Noble (from those times in which you actually went to the bookstore!).  Now, 15 years later we are confronted with his favorite topic: overpopulation and his fetish with calculations for possible saturation points.  Here’s what he thinks even though so many people has been born since he wrote his book doing numbers of saturation points of the world:

Humanity took until year 1800 to reach its first billion people. We added 1 billion people in just the past 12 years. October 31, 2011 marks a milestone in global population: 7 billion humans. That’s according to projections by the United Nations. EarthSky interviewed demographer Joel Cohen, professor of populations and head of the Laboratory of Populations at the Rockefeller University and Columbia University in New York. He explained the top 10 population trends in a world with 7 billion inhabitants.

1. One billion people are hungry, and 1 billion are obese. Cohen said this is the most important thing people should know about the population milestone of 7 billion. Too too many people on Earth today live without knowing where their next meal will come from.

A billion people are chronically hungry. That means they wake up every day hungry. They don’t get enough calories to get through the day and do a day’s work like you and me. And many of them have been hungry since they were born. And their brains aren’t fully nourished, fully developed. And they’re having a very hard time learning and coping with life’s problems.

At the other extreme there are about a billion people that are really, seriously obese. And that’s partly a matter of not getting a good food supply also — not a food supply that’s balanced for their needs. Roughly two or three billion people — we don’t know precisely — are malnourished as opposed to undernourished. That means they’re not getting the trace vitamins that they need to have a balanced diet.

For world's seven billion, one billion hungry, one billion obese. (UN)

In a world with 7 billion, 1 billion are hungry, 1 billion are obese. (UN)

2. Three billion people live on two dollars a day. Cohen said:

That is abject poverty. You try to live on two dollars a day for long and you’ll start losing weight pretty fast. So roughly half the world is in desperate poverty.

3. One billion people live in slums. Cohen said:

Right now, about half the world lives in cities — let’s say 3.5 billion, slightly more. And of those, a billion are living in slums without adequate sanitation, electricity, water, security, legal protection, transport, and inadequate housing conditions. When it rains, it leaks. Maybe a mud floor. So we, the world, have not provided home or food, have not reached minimum standards that we ought to be providing for people.

One billion people today live in slums. (UN)

One billion people today live in slums. Image Credit: United Nations

4. Over 200 million woman have unmet needs for contraception. He said:

That means that they don’t want to have an additional child, and yet they’re not able to use modern means of contraception. These problems are not only abroad. We have, I would say, a very serious population problem in the United States. According to the United States Centers for Disease Control, in 2001, approximately half of the pregnancies in the United States were unintended. That means that the woman, or the couple either did not want a pregnancy at that time or did not want a pregnancy at any time. And that is a very serious problem of human well-being related to the lack of control over people’s own reproduction.

5. Today, 1.5 billion people live in rich countries.
 Cohen explained:

That’s Europe, Western Europe mainly, the United States and Canada, the overseas English-speaking countries of Australia and New Zealand, Japan, and some of the Asian tigers.

6. Four billion people live in middle-income countries. Said Cohen:

These are the countries that have recently emerged from poverty with fast-growing economies. And I would put China, India, Brazil, many countries in Latin America in that realm of the middle-income. And that means on the order of Chile — let’s say 5,000 dollars a year income. That’s tremendous progress when you remember how recently China and India were really in desperate poverty. And many in those countries still are.

Four billion people live in middle-income countries like China. Image Credit: weirdchina

7. Economically at the bottom are 1.5 billion people. Cohen said:

Those people are living largely in sub-Saharan Africa, but in the new world also in Haiti, and in many of the provinces of South Asia in both Pakistan, Afghanistan, India, Bangladesh. There are hundreds of millions of people in dire poverty — the bottom billion as one Oxford economist calls them. So that gives you sort of a geographical picture of where these 7 billion people are.

Seniors now outnumber toddlers.

Seniors now outnumber toddlers.

8. Seniors now outnumber toddlers, and this trend will continue to increase. Cohen explained:

In the last decade, the world passed a very major milestone. And that is that for the first time in history, the number of people 60 years old or more exceeded the number of people 0-4 years old. Basically, for the first time, the grandparents outnumber the grandchildren. In the year 2000, there were about 10 percent of the world’s people were age 0-4, and about 10 percent were age 60+.

What we’re going into now is the era of aging. And by 2050, we anticipate that the number of people 60+ will be about 3.5 times the number of people age 0-4.

In the richer countries, like the United States and Europe, this process of aging is already pretty far advanced and will pose some serious questions and challenges for our retirement systems. In the poorer countries, which have a younger population because they’ve been growing faster — that means more children, so higher proportion of young people — aging will increase even faster than in the richer countries, which have already made a transition in part, the beginning of a transition to aging. So aging is one big thing that’s happened.

Two-thirds of people worldwide will live in cities by 2030, experts predict.

Two-thirds of people worldwide will live in cities by 2030, experts predict.

9. More than half of Earth’s inhabitants today live in cities, and two-thirds will live in cities by 2050. Cohen said:

In 2000, a little less than half of the world’s people lived in cities. Somewhere around 2007-2008, it became about 50-50. And by 2050, we expect about two-thirds of the world’s people to be living in cities. Now the increase in the number of city dwellers, between 2000 and 2050 is expected to be about three billion people, which was the total population of the Earth in 1960.

Virtually all of that additional three billion people will be added in the cities of the developing countries, not the rich countries. The rich cities will grow somewhat, but the really rapid growth will be in the poor or developing countries.

And if you do the arithmetic, 50 years between 2000 and 2050, roughly 50 weeks per year, 50 times 50 is 2500 weeks in that half century. And yet we’re going to add three billion people in the cities. Three billion is 3,000 million. It means that developing countries have to add urban infrastructure for a million people every five days from now to 2050. Now if that isn’t a building job, I don’t know what is. And hardly anybody is thinking about the design of the cities so that they can accommodate those additional three billion people in a constructive and useful way.

More than half of women today have fewer children needed to replace themselves. (UN)More than half of women today have fewer children than the number needed to replace themselves and their partner. Image Credit: United Nations

10. More than half of women today have fewer children than the number needed to replace themselves and their partner. Cohen said:

In 2003, for the first time in human history, more than half the women in the world lived in countries or provinces where the rate of reproduction was below the replacement level. That is, they were having fewer children than required to replace themselves in the next generation. This represents a tremendous change over the previous half century. The rate of growth of the world population fell by almost half, from 2.1 percent per year in 1950 to 1.1 percent per year in 2000. And we expect it to continue to decline if we continue to educate women, to provide modern contraception, and to improve the status of nutrition and education.

Bottom Line: Humanity took until year 1800 to reach its first billion people. We added 1 billion people in just the past 12 years. October 31, 2011 marks a milestone in global population: 7 billion humans. That’s according to projections by the United Nations. EarthSky interviewed demographer Joel Cohen, professor of populations and head of the Laboratory of Populations at the Rockefeller University and Columbia University in New York. He explained the top 10 population trends in a world with 7 billion inhabitants. Many continue to face issues of dire poverty. The population is aging. For the first time, more than half the world’s women live in countries or provinces where the rate of reproduction was below the replacement level.

professor of populations and head of the Laboratory of Populations at the Rockefeller University and Columbia University in New York.

via: Joel Cohen: Top 10 key population trends on Earth with 7 billion

Why Globalization Matters?

“It was by making myself a Catholic that I won the war of the Vendee [the war of counter-revolution in western  France], by making myself a Muslim that I established myself in Egypt, in making myself Ultramontane [a devotee of the papacy] that I won men’s hearts in Italy. If I were to govern a Jewish people, I would re-establish Solomon’s Temple.” Napoleon Bonaparte

It is with Napoleon’s astonishing remark that I decided to give you some light of what Globalization refers to and why I choose to write about it as one of the two pillars of my research.

The term Globalization (also referred to as Globalisation) refers to what many different historians considered a process of interrelation (or unification) of the world. It was a process of cultural, political and economic relations that for the first time in history united all mankind.

It has been the aim of historians to identify When does Globalization begun and How it begun.  But also, it has been their aim to question if Globalization as a process has already concluded or if it is an ongoing process in the 21st. Century.  As well, historians are still trying to explain if Globalization should be judged (or not) as the result of only positive (good) results in regard to increasing the wealth, culture and technology of the world; while other historians argue that Globalization has also resulted in poverty, losses, conquest and cannibalization.

Globalization has been studied from different approaches in Social Sciences. Sociologists and Anthropologists have focused on the cultural effects that the transfer of technology, mass migrations, institutions and products has had in different regions of the world. Political Theorists studied how Globalization affects the institutions, norms and hierarchical authorities in specific regions and how changes in other regions may have had altered the status quo. Economists study how globalization increased the commerce and transactions between regions and territories through trade, investments, and flows of capital just to mention a few.

In this blog I’ll aim to discuss Globalization as a process and a result of the interconnectedness of human’s psycho-epistemology in specific contexts and periods of history.  My mission is to study how human behavior is not determined by nature and how human free will (action that results from rational or irrational reasonings chosen between opportunity costs) has shaped the course of history until the present.

Continue reading “Why Globalization Matters?”