Friday, 26 November 2010

Japan – land of the rising or setting sun?


Quote
We Japanese enjoy the small pleasures, not extravagance. I believe a man should have a simple lifestyle -- even if he can afford more.” Massaru Ibuka, founder of the Sony Corporation

News
The Economist this week asks what lessons will be learned from Japan as it is the first major country to face up to a rapidly declining population from natural causes.  Its 127 million inhabitants will shrink to 89 million by 2050, as Japan’s birth rate of 1.4 children per woman is far below the replacement rate.  As the country ages the number of people in work for every retired person will fall from 4 in 1995 to 2 by 2020, putting huge strains on the social security system.

Normally this is presented as an economic problem, with social implications.  We would argue that it’s the other way round: behind the demographic and economic issues are relational ones, particularly those that contribute to the low birth rate.

98% of children are born to married couples in Japan, and the average couple has two children.  However, more and more people are not marrying, or marrying late.  In part corporate culture is to blame: women are implicitly discouraged from returning to their jobs after having children, which forces them to choose between family and career.  Then the greater respect for older people in Japanese culture means that during a period of economic stagnation younger men face higher unemployment and lower incomes – which delay family formation.

Finally, the culture of very long working hours leaves little time for people to build relationships leading to marriage – a problem faced by many other countries pursuing high economic growth rates.  Driving this is the strong collective ethos which leads to intense national pride, often focused on economic prowess.

The challenge facing Japan is to reconsider what really constitutes success as a nation.  Unless that includes relational wellbeing and social sustainability, alongside economic growth, the sun will start sinking on the Japanese nation.

Read on...
Yesterday, British prime minister David Cameron announced that his government is launching a new national measure for wellbeing, in recognition that GDP alone is an inadequate measure for national success.  Read his explanation of why this is important here: www.number10.gov.uk/news/speeches-and-transcripts/2010/11/pm-speech-on-well-being-57569

Walk the talk
The perennial question of work-life balance needs revisiting regularly.  It’s not as simple as reducing long working hours, but rather to think of how our present lifestyle and time commitments reflect the importance we attach to various relationships.  Is there one thing which you have been thinking you ought to do, but haven’t got round to, that would invest time in one of your most important relationships?  Why not resolve to do it now?

The last word
From the Bible, Psalm 127, verse 3: "Sons are a heritage from the Lord, children a reward from him."

Friday, 19 November 2010

The Irish debt crisis: lessons in lending


Quote
A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.”  Mark Twain.

News
The Euro has taken another knock this week as the Irish government is struggling to support its ailing banks, having promised to guarantee all their loans in 2008 during the credit crisis.  This has left the country with the highest public deficit in the eurozone this year, at 14.3% of GDP.

Politicians, bankers and journalists have been scurrying back and forth between Dublin, Brussels and other European capitals; Ireland says it does not need a bailout, some EU leaders think otherwise.  A relational perspective on the financial crisis over the last two years emphasizes one of its underlying causes. 

Despite attempts in recent years to treat debt as a commodity, in reality any loan is a relational transaction: one person lends some of his or her money to another person, who promises to repay it by a certain date.  The bank is the go between, acting in the interests of both parties (and their shareholders).  There is trust involved, and risk and uncertainty with any loan; these issues can be assessed and monitored provided there is genuine knowledge and relationship between the banks and their customers.

However, when loans are commoditised and sold on, the connection between borrower and lender becomes remote and accountability falls away.  The less relational lending becomes, the higher the default rate tends to be: banks are more likely to make loans that haven’t been properly evaluated, and borrowers can more easily get away with defaulting on their debts.

When the boom years came to an end in the Irish property market, the credit which financed it still had to be paid.  The Irish government decided at the time to protect bank depositors from any loss, so the banks turned to the state; the government has underwritten the banks but now has an unsustainable deficit.  Who will pay for the Irish bad debts?  It appears, ironically, that those at the furthest distance relationally from Ireland – taxpayers from across the EU – may ultimately end up paying for the remoteness between borrower and lender in the Emerald Isle.

Read on...
Dr Paul Mills is a senior economist in one of the international financial institutions; over the last 20 years he has studied alternatives to debt-based financial systems, including Islamic banking.  The following Cambridge Paper explores the reasons why interest was banned in Old Testament Israel, and what lessons can be drawn from this today. http://www.jubilee-centre.org/document.php?id=3

Walk the talk
The obligation to repay every debt should be taken very seriously, but so too the obligation to cancel a debt when the borrower is clearly unable to repay the loan.  Is there a debt which you need either to be more diligent in repaying, or else to be willing to forgive?

The last word
From the Bible, Proverbs 22 verse 7: “The rich rule over the poor, and the borrower is slave to the lender.”
Romans 13 verse 8: “Let no debt remain outstanding, except the continuing debt to love one another”.

Friday, 12 November 2010

What’s in a symbol? Poppies in Britain and China

Quote
In Flanders fields the poppies grow
      Between the crosses, row on row,
   That mark our place; and in the sky
   The larks, still bravely singing, fly
Scarce heard amid the guns below.”
John McCrae, Canadian military doctor, 1915.

News
Wreaths of poppies were laid at various war memorials in Britain and the Commonwealth over the last few days, as symbols of gratitude and remembrance of those who laid down their lives to defend their country during the two world wars and subsequent conflicts.  In countries allied to Britain in the two world wars, the poppy has become a deeply meaningful symbol of sacrifice for others.

In China, however, the poppies worn by UK prime minister David Cameron and his delegation last week symbolised something quite different.  During the opium wars in the mid 19th century, Britain used superior military power to force Chinese markets to accept their imports – particularly opium, which was illegal in China – in order to pay for the huge exports of tea to the British Empire.  Currency wars today carry echoes of these opium wars in the past.

This humiliating memory (for both nations now), rather than soldiers’ lives laid down in the 20th century, is the one recalled by the Chinese when they see British people wearing red poppies.

In seeking to build strong and healthy relationships between nations, the preconditions of directness of communication, continuity of relationship over time and parity of power play a major part (these are three of the five pillars of Relational Proximity).  Knowing the history of relations between two nations is essential for leaders to understand how to conduct the present relationship in an appropriate and sensitive way. 

While China continues to gain the ascendancy over Britain in economic, financial and military terms, ‘parity’ does not have to mean equality in these areas.  Rather, shared participation in decisions, fairness in application of ethics and respect for the values of the other country are the key ingredients of parity in any relationship between two nations, if they are to move towards lasting peace and prosperity.

Read on...
Jeremy Ive wrote an insightful chapter on International Relations in the Jubilee Manifesto, the landmark book presenting a relational basis for Christian social reform, edited by Michael Schluter and John Ashcroft.  You can read it on our website here: www.relationshipsglobal.net/Web/OnlineStore/Product.aspx?ID=52   

Walk the talk
Almost all cultural symbols, such as the poppy worn around Remembrance Day, have a story behind them.  Think of someone you know, originally from a different culture to you, who has worn or displayed a symbol you know little about.  Why not make an opportunity to enquire about the story behind that symbol, so as to understand the person and their culture more fully?

The last word
From the Bible, Ecclesiastes 10, verse 4: “If a ruler's anger rises against you, do not leave your post; calmness can lay great errors to rest.” 

Friday, 5 November 2010

Gambling and the lottery: usual losers and unusual winners


Quote
“Horse sense is the thing a horse has which keeps it from betting on people.”  W.C. Fields

News
Journalists have been rushing headlong to speak to a retired couple in Canada this week, when it was revealed that they had given away 98% of their £6.7million lottery jackpot from July.  After giving something to each family member, Allen and Violet Large donated the rest to churches, hospitals, fire departments and other good causes. They bought nothing for themselves, keeping back only £120,000 of their winnings for a rainy day. 

When interviewed, the retired welder and his wife stated that they were quite content with their modest home and had everything they needed.  The international media were intrigued to find people who are apparently immune to the lure of unearned wealth, and who used their windfall to favour other people and build relationships. 

Contrast this with the more common negative effects of gambling, and its rapid growth online, which is more likely to lead to problem gambling (defined as “gambling to a degree that compromises, disrupts or damages family, personal or recreational pursuits”).  Problem gamblers are twice as likely to divorce, 20 times more likely to attempt suicide, and have higher levels of debt than non gamblers; two thirds of them commit crimes to support their habit.

The number of such gamblers is around 0.5% of the population in UK.  Although this is lower than in Hong Kong (5.3%), USA (3.5%) or South Africa (1.4%), it still amounts to 250,000 people – compared with 327,000 problem drug users in the UK. 

Despite the uplifting story from Canada, the reality is that addictive gambling produces two groups of losers: not just the majority of gamblers who lose their bets, but the far greater number of third party losers - partners, families and friends who must suffer financially, physically or relationally as a consequence.

Read on...
When the British government was debating whether to start a national lottery in the 1990s, our colleagues at the Jubilee Centre reviewed the arguments for and against such an initiative; although the statistics in their report are dated, the principles of the argument are still relevant today; see http://www.jubilee-centre.org/resources/the_case_against_the_national_lottery

Walk the talk
None of us sets out to become a problem gambler; it happens when we cross several small boundaries.  Some of the warning signs are hiding from others the amount spent, starting to borrow in order to gamble, difficulty in saying no, or needing to bet more and more to satisfy the urge.  If you gamble regularly, no matter how harmless you think it is, choose to make yourself accountable to someone else, who can detect any warning signs in time.

The last word
From the Bible, 1 Timothy 6:9 “But those who are determined to be rich fall into a temptation and a snare and many foolish and harmful lusts, such as drown men in ruin and destruction.”

Friday, 22 October 2010

The business of infidelity

Quote
"What counts in making a happy marriage is not so much how compatible you are, but how you deal with incompatibility."
Leo Tolstoy

News
A recent newspaper report announced that the world’s largest website promoting infidelity had just opened in the UK.  The founder of Ashley Madison said that over 7 million people around the world had used the site since 2001.  He justified his approach by saying that people are going to cheat on their partners anyway, and he is just helping his customers do it more discreetly, and avoid certain pitfalls.  “We’re living in an infidelity world; monogamy is dead,” confidently declared Canadian businessman Noel Biderman, who is behind the agency.

What does this say about the relational climate of our culture?  Firstly it reflects the impact of individualism on relationships: our personal needs are paramount, and if these are not being met fully in our present relationship, then we feel entitled to look elsewhere – no matter the risk of causing tremendous pain to our partners, our children, our parents….

Secondly, in setting up a business to help people lie and cheat on their partners, Mr Biderman is normalising deceit and falsehood.  But do those same people feel any less hurt or indignant when they are on the receiving end of such actions?  Lastly, the apparent respectability of this website adds credibility to the notion that marriages will inevitably fail.

Affairs appear to offer freedom – from the constraints of commitment.  Yet true freedom in relationships depends on trust and that in turn is nurtured by each partner being faithful and honouring their commitment to the other.  The more couples seek to build that kind of freedom in their relationships, the less demand there will be for Mr Biderman’s sordid business. 

Read on...
What is the state of marriage in Britain?  Our colleagues at the Jubilee Centre produced an insightful resource, The UK Marriage Index 2009, providing a snapshot of the nation’s marital health – and what can be done to improve it.  Read the short paper here www.jubilee-centre.org/uploaded/files/resource_336.pdf  

Walk the talk
Hopefully the thought of infidelity is one you will rarely have to struggle with, but small daily choices can strengthen your relationship: kind words, a thoughtful action, an expression of affection, some undivided attention, or an unexpected gift.  Which one could you do today for your spouse?.

The last word
From the Bible, Matthew 18, verse 7 is a sobering thought: "Woe to the world because of the things that cause people to sin! Such things must come, but woe to the man through whom they come!”

Friday, 15 October 2010

Friday Five: Chile miners rescue - a triumph for relationships

Quote
"And ever has it been known that love knows not its own depth until the hour of separation." Kahlil Gibran.

News
Something very special happened in Chile this week.  The seventy day ordeal of the 33 miners trapped underground came to a triumphant end, and people all round the world cheered as one by one the miners were lifted to safety and their families, freedom and fame.

Sadly, industrial accidents happen all the time, miners are trapped and killed underground regularly, yet such events rarely attract more than a cursory news report.  What made this one so special?  Was it the record breaking length of time the miners were underground?  Was it the extraordinary drama of the survival and rescue operation that was unfolding before the world’s media gathered at the San Jose mine?  Or perhaps it was the way this story brings to the fore the immense value and potential of human relationships… 

Witness the dedication, hard work and skill of the rescuers as they sought to reach their trapped colleagues in time.  Witness the way the miners had to organise themselves, eke out their meagre supplies, and keep their spirits up awaiting rescue.  Witness the way in which people around the world helped the Chilean government in the operation: special cellphones from Korea, flexible fiber-optic cable from Germany, advice from NASA, the rescue capsule from Austria, the U.S.-manufactured rig and drill bits – paid for by Japanese and British investors – that managed to penetrate through the rock in record time.

Perhaps best of all was the moment each miner was reunited with his loved ones after emerging from what could so easily have been his tomb.  Those of us watching were privileged to witness affection in its purest form – something present in most relationships yet so often diluted or neglected by the stresses of everyday family life.  This time, however, that love for another – distilled and refined by the agonising ten week ordeal endured by the miners and their families camped in the desert of northern Chile – was poured out tenderly, uniquely, gloriously in each long hoped for embrace.


Read on...
The BBC spent an unprecedented £100,000 on covering the rescue in Chile; the themes of courage, hope and jubilation come through frequently in this blow by blow account of the operation: http://news.bbc.co.uk/1/hi/uk/9086813.stm  

Walk the talk
Are you aware of a prolonged ordeal that a friend or acquaintance is going through?  Think of an action or gesture which you might make to demonstrate they are not forgotten, and if possible help to lighten their load, even if only for a short while. 

The last word
From the Bible, Galatians chapter 6 verse 2: “Carry each other’s burdens, and in this way you will fulfil the law of Christ.”

Friday, 1 October 2010

NHS reforms: counting the hidden costs of change

Quote
"The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic." Peter Drucker

News
Today the British Medical Association issued its official response to Health Secretary Andrew Lansley’s proposal for far-reaching reforms of Britain’s health service, the NHS.  These include giving more freedom and choice to patients, passing to groups of local doctors the responsibility for purchasing hospital services, eliminating whole swathes of management, and privatising an increasing number of clinical services.

The BMA argue in their response that the reforms could well undermine the stability and long term future of the NHS, setting different groups of clinicians against each other, and be costly to implement.  In a hard hitting letter to Mr Lansley, the BMA writes, "We urge the government and NHS organisations to focus on those areas where they can truly eliminate waste and achieve genuine efficiency savings rather than adopt a slash-and-burn approach to health care, with arbitrary cuts and poorly considered policies."

Any change in organizational structure has relational costs and implications; new relationships must be created, requiring time for people to gain understanding and trust; existing relationships can be improved but other productive ones may have to be truncated.  One problem with the present analysis is that the indirect costs (in terms of money, time and productivity) incurred in changing relationships are not brought into the equation and set off against the intended financial benefits.

A question that should be at the heart of any sweeping reform to public services is, “What relational architecture would be the most effective in increasing quality of services and to improve efficiency?”

Read on...
Our colleagues at the Relationships Foundation published a book at the end of their Relational Health Care research project, entitled “Relationships in the NHS”.  The third chapter argues for the notion that relationships are the most important, and the most neglected, resource in the NHS.  Read it here www.relationshipsglobal.net/Web/OnlineStore/Product.aspx?ID=51 

Walk the talk
Are you involved in any discussions regarding change in your organisation?  The next time your opinion is sought, why not raise the question of what relationships will be affected under each option, and are the relational as well as financial costs and benefits of the changes being taken into consideration?

The last word
From the Bible, Ecclesiastes 7, verse10: “Do not say, ‘Why were the old days better than these?’ For it is not wise to ask such questions.”