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.

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Discourse: Nationalization, Private Companies and Crony Capitalism

The neoliberal (a.k.a. crony capitalism) ruling of the world during the last 50 years is usually generalized as a “big fish eats small fish” relationship. The story continues, with the big fish in Washington, Brussels and Moscow fed themselves with the riches of the world and profited from globalization.  Meanwhile, the small fish continued breeding and feeding the always hungry lords.  This general discourse is repeated in most if not all the academic papers dealing with postcoloniality and globalization.

The impact of the ideas of these intellectuals is widespread and not easily observable for the ignorant masses.  As such, when you read the newspapers in Latin America or Africa in regard to the “new” nationalizations being undertaken by the “new” socialist/anti-neoliberal governments in Argentina, Bolivia, Brazil, Greece, Lithuania, and Sri Lanka since 2011 people usually ignores that there is nothing “new” in these actions.

These nationalizations of privately owned assets have been in many of the cases actual renationalizations of companies that were not owned by the principles of free market ideas, but that had been privatized by corrupt social democratic governments 50, 40 or 10 years before and who created new privately owned privileged companies.  As a result of these social democrat and socialist governments many privately owned companies emerged as the bastions of crony capitalism, inefficiency and corruption.  The previous, generally increased as closer the national industries were owned by crony private companies that owned single-crop cultive exports and resource rich regions.

To mention short examples of the previous, recently in Argentina Yacimientos Petrolíferos Fiscales (YPF; English: “Treasury Petroleum Fields”) was renationalized (not nationalized) by the government under claims of corruption, inefficiency and negative benefits to their national interests.  In Bolivia, Transportadora de Electricidad (TDE) was nationalized by Evo Morales government.  However, TDE was also a fruit of the neoliberal and crony capitalist deals established in 1952 after a coup d’état that established a military socialist democracy with the party  Revolutionary Nationalist Movement (MNR) which allied into a military-nationalist clique that lasted for 50 years.

Privately owned companies produce always more efficient and better products than state-owned companies.  However, privately owned companies that have benefited from government granted privileges for decades not necessarily will produce more and better services and products than state-owned companies.  The previous is something that few of us dare to identify and explain with a non-contradictory historical and philosophical background.  Meanwhile, the great majority of academics influenced by collectivist philosophies will start writing articles and books applauding the “successful” renationalizations and condemning those free-market authors who will write back and fight.

Indeed, there is a difficult road in defending private property and privately owned businesses in the context of countries and regions that lack respect for individual rights and the rule of law.  As such, to defend the private vs collective in those circles it is necessary that first we identify how the societies are currently organized around the collective inefficient systems of social and economic organization.  In the case of Bolivia and Argentina it is necessary for us to identify how these business and societies are not structured and organized around the principles of free market and individual rights.  By understanding and explaining this clearly there will be a chance to change the discourse of discussion from “why is renationalization good?” to “why laissez faire capitalism is better than the privately owned business of crony capitalism?”

The burning of a Library in Egypt and the Philosophy behind it

The damnation of this earth as a realm where nothing is possible to man but pain, disaster and defeat, a realm inferior to another, “higher,” reality; the damnation of all values, enjoyment, achievement and success on earth as a proof of depravity; the damnation of man’s mind as a source of pride, and the damnation of reason as a “limited,” deceptive, unreliable, impotent faculty, incapable of perceiving the “real” reality and the “true” truth; the split of man in two, setting his consciousness (his soul) against his body, and his moral values against his own interest; the damnation of man’s nature, body and self as evil; the commandment of self-sacrifice, renunciation, suffering, obedience, humility and faith, as the good; the damnation of life and the worship of death, with the promise of rewards beyond the grave—these are the necessary tenets of the [mystic’s] view of existence, as they have been in every variant of [mystical] philosophy throughout the course of mankind’s history. Ayn Rand

Yesterday December 17, 2011 during conflicts between some Egyptian protests, the Egyptian Scientific Institute which established in 1798 by Napolean Bonaparte was burned. The Egyptian Scientific Institute was the oldest scientific institute in Egypt and Middle East at all. It has the most rich and rare library in Egypt.

Eyewitnesses were reported to have seen protestors throwing a Molotov cocktail at stone-throwing soldiers at the Shura Council building, but the projectile missed the intended target and instead landed in the Egyptian Scientific Institute.

The library contains about 40.000 items of rare books and manuscripts, however it has unvaluable items, like:

  •  The original copy of the french book “Description de l’Egypte”
  • Atlas of Old Indian arts.
  • German atlas about Egypt and Ethiopia, 1842.
  • “Egypt: the mother of the world”, 1753.

Professor Mahmoud al-Shernoby, the general secretary of the institute, told state TV in a phone interview that the damage is a “great loss” to Egypt and that those “who caused this disaster showed be punished.”

Photos about burning the Egyptian Scientific Institute:

Concorde’s last day in Global History

Video: Concorde’s last flight.

There are moments in history in which the World Order changed and historians are always trying to get them accepted and applauded by their colleagues. Those specific moments in history may be not seen immediately but until enough time has passed to understand the direct and indirect effects that shaped the course of History.

Many of these moments are the product of technological innovations that changed the way humans lived. One of them could be October 24, 2003 when three BA Concordes made the last commercial flights in history: G-BOAG flew from New York to London; G-BOAE made a return flight to Edinburgh; and G-BOAF flew around the Bay of Biscay. All three circled over London before landing within minutes of each other at Heathrow Airport.

The relevance of this event may not yet be so evident. However, we can be certain that the impact that had the catastrophe of a Concorde near Paris in July 2000 is going to determine the future of space flights. Specially after the last flight of Atlantis (the last Space Shuttle of the United States) in July 21, 2011.

The blog The Modern Historian posted a great/short overview of Concorde’s history and here is it:

During the late 1950s, aircraft manufacturers around the world started working on designs for supersonic passenger jets. The costs for such projects were so prohibitive that few of them progressed beyond the design stage. In the early 1960s, the British Aircraft Corporation, which had inherited the Type 223 supersonic transport (SST) project from the Bristol Aeroplane approached the French Sud Aviation, who were working on the Super-Caravelle SST, with an offer to co-operate on a joint project.The result of this co-operation was Concorde, which made its maiden flight in 1969. By this time, Concorde only had one compettitor, the Russian Tupolev Tu-144, but cold war tensions and the crash of a Tu-144 at the 1973 Paris Air show meant that it was Concorde that attracted orders from the major airlines. Nevertheless, the oil crisis of late 1973, environmental concerns about nervousness about sonic booms (the noise the aircraft made as it broke the sound barrier) resulted in the cancellation of all the orders except those from the national airlines of France and the United Kingdom. These orders for ten aircraft each still required substantial government subsidies to keep the project alive.In spite of these setbacks, Air Franceand British Airways (BA) started scheduled flights using Concorde in 1976. Although other airlines occasionally leased the aircraft, the high operation costs meant that supersonic travel was only feasible for the most profitible routes. Nevertheless, to continue running the services required high ticket prices, the continued government funding in the case of Air France and the sale of the British fleet of aircraft to BA at a knock-down price.All this changed following the crash of a Concorde near Paris in July 2000. The year long grounding of all the Concordes contributed to the decision taken by both airlines to withdraw the aircraft. On 27th June 2003, an Air France Concorde flew for the last time and on 24th October that same year three BA Concordes made the last commercial flights by the aircraft: G-BOAG flew from New York to London; G-BOAE made a return flight to Edinburgh; G-BOAF flew around the Bay of Biscay. All three circled over London before landing within minutes of each other at Heathrow Airport.

Libyan Strongman Muammar Gaddafi Falls

Free Libya - Saturday Is Always A Day Of Prote...
Image by infomatique via Flickr

Dictatorship nations are outlaws. Any free nation had the right to invade Nazi Germany and, today, has the right to invade Soviet Russia, Cuba or any other slave pen. Whether a free nation chooses to do so or not is a matter of its own self-interest, not of respect for the non-existent “rights” of gang rulers. It is not a free nation’s duty to liberate other nations at the price of self-sacrifice, but a free nation has the right to do it, when and if it so chooses.

This right, however, is conditional. Just as the suppression of crimes does not give a policeman the right to engage in criminal activities, so the invasion and destruction of a dictratorship does not give the invader the right to establish another variant of a slave society in the conquered country.” Ayn RandThe Virtue of Selfishness, 104

Gaddafi came into power as an assassin and terrorist. He started out murdering, continued murdering and had been going out murdering until today.  His death is no panacea but it is surely a victory for the Libyan people and their 2011 Revolution.

Starting in February 15th, 2011 a series of peaceful protests asked for change in the country and they were met with military force by the Gaddafi regime.  Thousands were hurt and killed. Gaddafi proclaimed his despotic discourse that same night and said that the only way he was going to leave Libya was going to be in a cuffing.  Indeed, that’s how he will leave the history of the country.

The fight for Libyans has not finished; loyalists around the Algerian and Nigerian borders are still present and the opposition continues.

I celebrate the capture of this dictator and our attention needs to be focused now in the continues shipping of supplies of medicine, fuel and food were for Libya’s urban centres.  As the philosopher Ayn Rand mentioned in the quote with which I begun this post; it is necessary as well, that we keep a close attention to the outcome of this Libyan revolution in order to avoid that another variant of a slave society in the conquered country with national or international control.