The new tricks of the old dog

I have mentioned before the numbers of mobile phones in the world, allegedly.
I revisited the lost socks department of my brain after reading this article in Th'Observer.

The involvement of the Grameen Foundation seems very positive and the implications for development absolutely sock loosening. The system Grameen are building relies on community knowledge workers (CKW) who are paid. Hmm... Perhaps we should have few of those.

Interesting contrast then - The old dog and bone. For hacking or accelerated development to the point where we don't have to watch small children starving to death before our eyes.
You choose!

How Social is Your Enterprise

The Grauniad links to a list of 'Social Enterprise Truths'
at the popup social enterprise blog.
Much used, polished and enjoyed no doubt; better than trying to define what social enterprise is, see...

17. There is nothing more tedious than a social enterprise definition debate (apart from two of them…)

and,

8. If a pound was donated each time a social entrepreneur quoted Gandhi, no-one would need to fundraise

for me that would be the mention of Muhammad Yunus and Grameen.

That's one pound please! The reverse of a swear box; great idea!

Usefully Large Sums

I'm just coming to the end of(Capitalism as we know it Jim) Fools Gold by Gillian Tett
and I have started reading Portfolios of the Poor (PoP) (See link to first chapter for pdf ) my interest being sparked by a certain enlightened economist.

I was struck by the comparison.
In Fools Gold -JP Morgans boys and girls developed a breed of innovative derivatives as exciting new instruments CDS, CDO etc to smooth the choppy seas of the global economy and, of course, turn a handsome mega buck in the process. These financial WMD were abused of course and not, according to the book, by JP.

The authors of PoP who carried out an analysis of the household economies in Banladesh, India and South Africa of some very poor people - $2 a day! They record and demonstate the portfolios of a mix of instuments these families use to survive and prosper (yes, it is shaming) They are boring old instuments, borrowing informally from family and friends at zero interest, moneylenders (convenient and flexibleup to a point Lord Copper), microfinance institutions and savings clubs that charge ( hard to credit!).

As well as 'fortress balance sheet' I think The Rock, Bare Stearns, Lehman Brass could have learnt a thing or two from Hamid and Khadeja. I know I could.

Municipal Socialism

There are many reasons for being a member of a credit union or two.
One of the more obscure is the chance to roam around locations at unfamiliar times at near zero temperatures waiting for the venue of the AGM to open. Not having the resources of RBS behind us we hire a room in the library by the hour. There were some chuckles when the meeting agreed unanimously that the Treasurer should be paid an honorarium of £500 for the work carried out voluntarily each year. Some wag at the back was heard to say:-

Shouldn't that be five hundred thousand with a pension thrown in!

While I was waiting for the meeting and stand up comedy routine to start I took this snap.
Not quite up to Bolton or Manchester standards but a suitable reminder of civic vision. A bit like a well fed county solicitor with an expanding waistline and an increasingly vague but avuncular demeanor.

New Year Solutions

A letter to the FT from a colleague engages in the debate which I have mentioned before.

Faisel and the team at Fair Finance have done some great work. Have a look at the maps which claim what they have delivered. A nice bit of transparency that the big fellows could emulate, but of course they won’t.

It would be interesting to extend the argument about affordable lending to the realm of home finance. How much of the current ‘turbulence’ is due to greed in institutions and irresponsible lending to the subprime housing market in the US and elsewhere? Those with 20/20 hindsight consider it substantial.

There are some good ideas, in embryo, out there, see Subprime Solutions by Robert Shiller and Will Hutton’s development of this based on the Crosby Report.

We need to positively build a system of housing provision and housing finance that underpins and supports the general economy.

I can remember being inspired by the construction of an espigon at the mouth of the river in San Sebastian. Its purpose was to protect the beach from being washed away. The initial stages consisted of very large vehicles bringing rocks the size of a small house to the beach where a gigantic crane would lift them and swing them out to sea and just drop them. The corps of observadores, myself included, would let out a huge cheer at this, great fun to watch. The idea, of course, was to build a substantial, immovable, barrier to the floods of the river and the overwhelming power of the Atlantic in the Bay of Biscay.

We need to do the same with our financial systems and we could start with the systems of housing finance.

So, answers on a postcard please to G. Broon Esq. PM

Let’s have some New Year solutions.
Leave the resolutions to the Amalgamated Society of Witterers, Fritterers and Merchant Bankers!

Tripple bottom line.

I was given a snide Rolex as a joke gift and was suitably appreciative. The last time it was worn was when herself dressed as James Bond for an xmas party. The better part of valour prevents me from commenting further.

However, Rolex makes awards for enterprise. One of these caught my eye. Tim Bauer has a project which reduces the effect of two-stroke engine pollution, increases the efficiency/effectiveness of this universal power unit and introduces the use of microcredit.
I'm sure that some green high heid yin will castigate me for even suggesting that such a sticking plaster across the cancer on the face of capitalism could ever be contemplated.