Monday, July 27, 2009

INAUGURAL ISSUE: Month of August, 2009

Pimberly Squared: A Journal of Professional Development and Personal Growth is a live, online journal containing; essays, lectures, podcasts, opinion, analysis and lessons from premier sources around the world intended to provide college students and alumni with knowledge rich resources to aid in their professional development and personal growth.


IN THIS MONTH'S INAUGURAL ISSUE

For the month of August, 2009:


* A lesson in life by The Economist Newspaper; Former Prime Minister of Great Britain, Tony Blair, "What I've Learned."

Tony Blair reflects on the lessons of his decade as Britain's prime minister.


* An essay by Peter F. Drucker for the Harvard Business Review: "Managing Oneself."

"We live in an age of unprecedented opportunity: If you’ve got ambition, drive, and smarts, you can rise to the top of your chosen profession—regardless of where you started out. But with opportunity comes responsibility. Companies today aren’t managing their knowledge workers’ careers. Rather, we must each be our own chief executive officer."


* An article for professional development, "Ten Golden Rules for Organizing Projects for Success" by Nang Moe Aung for Knol.

According to KPMG's International 2002-2003 Programme Management Survey, the average cost of project failure world-wide for the past 12 months was 10.4 Million US dollar. One top reason for project failures is poor project management. It is very evident that successful projects cannot happen by chance. We definitely need to design and organize projects for success. Based on our experience, here are the Ten Golden Rules of Organizing Projects for Success.


* Finding inspiration is an essay by Andrew Sullivan for This I Believe entitled, "Life, Liberty, and the Pursuit of Happiness."

I believe in life. I believe in treasuring it as a mystery that will never be fully understood, as a sanctity that should never be destroyed, as an invitation to experience now what can only be remembered tomorrow...


* A lecture via TED Talks by behavioral economist Dan Ariely on "our buggy moral code."

Behavioral economist Dan Ariely studies the bugs in our moral code: the hidden reasons we think it's OK to cheat or steal (sometimes). Clever studies help make his point that we're predictably irrational -- and can be influenced in ways we can't grasp.


* A debate; "What Is a Masters Degree Worth" by The New York Times.

Room for Debate recently published two forums on the burdens of student loans, and heard from a lot of former students, parents, professors and others who shared personal horror stories, blunt advice and critical observations about higher education.


* Weekly Podcasts from Peter Day's World of Business for the BBC.

This weeks featured podcasts include; InBiz: Let’s Start a Bank and GlobalBiz: Cambridge University Technology and Enterprise Club.


* Weekly Podcasts, From Scratch, a weekly radio show about the entrepreneurial life.

It’s hard enough for an entrepreneur to launch one successful business, but Jessica’s guest, Sir Richard Branson, has launched over 200.


* A commentary John Rice for CNN: Minority execs ready to step up and lead.

- Story Highlights
- John Rice: President Obama is stressing need for national service
- He says there's a huge need for leaders in the nonprofit world
- Rice: It's crucial to train leaders from minority communities
- He says these leaders can help change communities in desperate need


* Analysis of a current event by Dr. Fareed Zakaria, PhD, "The Wall Isn't Falling." Historical parallels don't work in Iran.


* An opinion by The Economist Newspaper, "The Arab world: Waking from it's sleep."

A quiet revolution has begun in the Arab world; it will be complete only when the last failed dictatorship is voted out.


* For the small business, an article by Diana Ransom for The Wall Street Journal, "Five Alternative Sources of Funding."


* Guidance for your career in these turbulent times in an article by Alexandra Levit for The Wall Street Journal, "What's in Your Future?"


* Book reviews: Anatomy of Evil and Empire of Illusion: The End of Literacy and the Triumph of Spectacle.


SUBSCRIBE TO THE WALL STREET JOURNAL

SUBSCRIBE TO THE ECONOMIST NEWSPAPER

SUBSCRIBE TO THE HARVARD BUSINESS REVIEW

--Professional-- Project Management - Ten Golden Rules of Organizing Projects for Success. By Naing Moe Aung for Knol. Week of 20090726

Project Management - Ten Golden Rules of Organizing Projects for Success

According to KPMG's International 2002-2003 Programme Management Survey, the average cost of project failure world-wide for the past 12 months was 10.4 Million US dollar. One top reason for project failures is poor project management. It is very evident that successful projects cannot happen by chance. We definitely need to design and organize projects for success. Based on our experience, here are the Ten Golden Rules of Organizing Projects for Success.

Golden Rule 1: Start with the Real Business/Organization Needs

We believe that no projects should start without a real business/organization needs. Effective executives only launch projects when they see true opportunities or real problems/issues the organization is facing. A good way to identify problems or opportunities is through measuring the gaps between your organization’s goals and your current status. If you see there are significant gaps between these measurements, there is a good reason to launch projects to close those gaps.

Here, we urge you to speak with data. Don’t say our market share is declining, but say our market share is declined by 20% in Asia Pacific market. Don’t say we want to capture market share in digital personal entertainment market, but say we want to capture at least 30% market share in digital personal entertainment market for “Generation i” consumers worldwide. Those gaps (between your target vs. actual) will objectively indicate the areas that you have to pay your most serious attentions.

Golden Rule 2: Formulate Creative Solutions (Projects) to Close the Gaps

We define projects as “Project is a unique solution delivered within a defined time to address a specific need (problem/opportunity).” Therefore, one of the prerequisite of successful projects is that the solutions (projects) must be unique and creative. Creativity plays a big part in project design. Take for example; Apple Corporation has successfully launched a series of innovative iPod mp3 music players to seize opportunities in digital personal entertainment market. The more unique and creative your project is the more it is staging for success.

It is also important that you really address the underlying issues/opportunities that can give you maximum pay off. For example, if you want to improve your order lead time – you may either change your manufacturing line layout or implement a better order scheduling system. Carefully evaluate first, which options shall better address your needs and select the best option (project).

Golden Rule 3: Conduct the Feasibility Study by Measuring both the Project Achievability and Benefits

It is extremely important to measure both the achievability and benefits when you select the options (projects) to address your business needs. It is also called doing the project feasibility study. Basically, it simply answers two key questions: “Can we do it? (achievability)” and “Should we do it (benefits)?”.

There are a number of ways that we can measure the project benefits. The most common methods are financial indicators like Net Present Value (NVP), Benefit/Cost Ratio (BCR), Pay Back Period, Internal Rate of Return (IRR) and Return on Investment (ROI).

As for the achievability, do an overall project risk analysis. Critical project parameters like financial commitments, stakeholders’ readiness, project complexity, and availability of capable resources should be carefully assessed. If your project has high benefit and high achievability, then you should give a green light and go ahead with your project.

Golden Rule 4: Know Your Project Stakeholders and Engage Them Early

Project stakeholders are those who are actively involved in the project, or whose interests may be positively or negatively affected by execution or completion (outcome) of the project.

We recommend that you identify all your project stakeholders and classify them according to their influence and interest to the project. If both their influence and interest to the project is high, they are project key stakeholders.

As a golden rule, we must engage project key stakeholder early and get them involved in project requirements definition. Requirement surveys, interviews, prototyping, focus group meetings, management walkthrough, project discussion forums (blogs), project boot-camp and other stakeholder engagement methods can be utilized as necessary to ensure that you have captured the needs, wants, and expectations of your project stakeholders as early as possible.

Golden Rule 5: Define Clear and Measureable Project Mission/Purpose

All projects are launched for a purpose – that is to address problems or seize opportunities within a specific timeline. Define a clear and measureable project mission/purpose. A good project mission answers both what and why of the project. The project stakeholders must be able to visualize “What is the final project outcome?” as well as “Why we are doing this project?”. For example, a good project mission could state as “Launch three-liter car that runs 100km on three liters of fuel by 2010 to improve fuel economy and cut green house gas emission.”

Golden Rule 6: Have a Capable and Committed Project Team in Place

A project mission is just an empty statement unless you have a capable and committed team in-place to carry out the mission. The project sponsor, project manager and core team members who have shared goals and commitments are absolute necessary for the successful completion of the project. The organization must ensure that the project team has the capability, budget, time and other necessary resources to plan and execute the project. Develop a project team charter to ensure the clarity of project purpose, roles & responsibilities, accountability and ownership.

Golden Rule 7: Do Project Planning, Use Manageable Project Phase Approach

There is a saying that “If you fail to plan, you are planning to fail.” Get your project core team involved in the project planning activities. Make sure you answers 5Ws (What, Why, Where, When, Who) and 2H (How, How Many) after the project planning is completed. Key components in the project planning are: measurable project objectives, strategies or approaches to achieve them, detailed list of deliverables and tasks, resources needed to perform the tasks, assigned list of owners who will carry out the tasks, tasks’ duration and cost estimates, a workable project schedule showing the inter-dependencies among various project tasks, list of major risks and associated response plan to mitigate them, and an executable communication plan. Remember there is no shortcut to success.

As a golden rule, we suggest that you structure the project, especially for complex projects, into more manageable phases to minimize risk. You don’t have to plan the project rigidly all the way to the end – it is especially difficult to do when you are dealing with highly novel and uncertain projects. On the other hand, it is always possible to achieve project end goals in phases. This means keeping each project phase more manageable, trying to deliver specific results in less than 90 days, and evaluating next steps at the end of a project phase. With large projects, often project stakeholders’ needs change during the middle of the project. If that happen, relevancy can be impacted, focus lost or other issues can impinge upon the ability to deliver the project. In other cases, the initial implementation provides new information that may influence the final project outcome. In all cases, breaking projects up into something easily digestible allows one to maintain focus on final project mission while delivering tangible results for project stakeholders every 90 days.

Golden Rule 8: Manage Schedule, Cost, Risks, Issues, and Change

One of the big challenges that the project manager face is to keep the project on-schedule. To overcome this, first project managers must have a list of tasks with reliable duration estimates and committed task owners. A good planning will always pay-off in managing your project schedule. Project manager must also aware of inter-dependencies among various project tasks and manage closely on all those tasks that are on the longest path of the project (we call it the Critical Path) because when one delays the task on the critical path, it will delay the project. Don’t let your project team members put individual task buffers (they call it contingencies) to their respective tasks jut to be safe for themselves. Instead, pool those individual buffers into a project buffer – cut it down to 50% of the total and place it at the end of the critical path (we can call it a realistic project contingency for Murphy or Risks). This is the best way to manage schedule uncertainty and you will see that your project can complete faster with this approach.

Project manager must also monitor the project risks throughout the project and execute risk mitigation actions to reduce the project risks. There are a thousand things that can go wrong in project and it makes a good management sense that those risks with high impact and probability must be proactively identified and managed. Project must have an active risk log to manage all key risks. Appoint risk owners by risk category.

Another good tool that is very practical in managing projects is to list key project issues in an issue log. Anyone who is doing the project in a real world knows that projects are bound to face issues and problems. Identify all those key issues as they happen and list them down in the issue log. Prioritize the issues (using Important and Urgent matrix) and assign the owners with specific deadlines to address them.

Projects are bound to face changes. Project customers/sponsors requesting a change here and there is something that always happen. The first good step in managing change in project is to assess the impact of change on project objectives. Identify both positive and negative impact of the change and accept only those changes that are beneficial to the project and reject all changes that will give negative impact overall. Putting in-place a change control process and making it known among the project key stakeholders will definitely help in preventing unnecessary changes and keeping the project schedule and budget under control.

As for managing project cost, identify major cost drivers (for example, it could be a major piece of equipment and associated shipping charges) of your projects and have reliable cost estimates. Project costs are best tracked and managed at the individual work package level. Make sure individual task/work package owners are aware of the cost budget and mange to complete their assign work within the acceptable cost tolerance. Putting in place change control processes always help in managing your cost since we are preventing unnecessary and costly changes from happening. Last but not least, have a contingency budget for your project for those unknown risks that could happen. The project contingency budget could typically vary from 5% to 30% depending on the types and complexity of projects. Basically, the more unknown/uncertainty factors are there in projects, the higher the needs for contingency budget.

Golden Rule 9: Continuously Manage Project Stakeholders

The project involved many stakeholders with differing interests, personalities and motivations. Project manager must continuously engage and mange the project stakeholders especially when they are the project key stakeholders. One of the biggest pitfalls in project management is treating project stakeholder management process as static and unchanging. In reality, project stakeholder management process is dynamic and changing. You could have new project stakeholders appear in your project radar or old stakeholders/supporters disappear. Another factor is both the interest and influence level of project stakeholders could also vary throughout the project. Previously identified as unimportant stakeholders may become very important stakeholders because either their interest or power level has changed.

The key to stakeholder management is Engage, Communicate, and Deliver Benefits! The needs and expectations of project stakeholders must be proactively identified and their issues/concerns must be addressed promptly.

Golden Rule 10: Measure Results, Capture Your Lessons Learned, and Institutionalize

Congratulations! You have finally arrived at a successful project completion since you practice the above nine golden rules. Well, don’t jump to your feet and go home yet! The last and most important golden rule in project management is to systematically measure your project results against your stated goals. Evaluate your project results to capture lessons learned so that you can continuously improve your project management capabilities. As a golden rule, we suggest that you capture three types of lessons, The Good (things that you do really well and should be repeated in future projects), The Bad (things that you could have done better and will be done differently in future projects), and finally The Ugly (things that went so wrong that you shall never ever repeat them in your future projects). Capture and review those invaluable lessons that you have learned in your project and share them with key stakeholders for organizational learning. These lessons learned should trigger improvement actions that you can do to improve your future project performance. A wise man is not the one who never makes mistakes but the one who learn form his/her mistakes and take improvement actions. Make sure that project sponsor or customer has officially accepted your project’s product/service/results and committed to sustaining and further improvement of it. Appropriate training, education, ownership and reflection on improvements are all very important steps in project closing. This process is called “I - institutionalization” stage of the project. Proper execution of “I” stage will make sure that the project’s end results will be sustained and continuously improved further.

Well, the above are ten golden rule of organizing projects for success. We hope you found them useful in managing your projects. Wish you all the best with your project endeavors!

With best regards
Naing Moe Aung, PMP, M. Eng.
Founder & Director
PROJECT DECISION
P.S. If you have any comments or feedbacks about this article, please write to “naing@projectdecision.com”.
About the author
Naing, an entrepreneur and hands-on project manager, is the founder and director of Project Decision®, the premier project management training, consulting and coaching firm based in Singapore. Naing has trained thousands of executives, managers, engineers, and project managers from private and public companies, not for profits and governments.
Naing is a certified Project Management Professional (PMP®), the project management profession's most recognized and respected global credential by the Project Management Institute (PMI®) headquartered in the USA.
Naing's ideas on Project Management have been accepted by PMI and it has recognized Naing as one of the final draft reviewers and contributors in the latest 2008 edition of Project Management Body of Knowledge (PMBOK®) Guide, regarded as a global standard for project management, developed and published by PMI.
Website: www.projectdecision.com

--TED Talks-- Dan Ariely on our buggy moral code. Week of 20090726

Dan Ariely on our buggy moral code

Watch Dan Ariely's TED Talk on morality

Behavioral economist Dan Ariely studies the bugs in our moral code: the hidden reasons we think it's OK to cheat or steal (sometimes). Clever studies help make his point that we're predictably irrational -- and can be influenced in ways we can't grasp.

It's become increasingly obvious that the dismal science of economics is not as firmly grounded in actual behavior as was once supposed. In "Predictably Irrational," Dan Ariely tells us why.

--
About Dan Ariely:

Despite our best efforts, bad or inexplicable decisions are as inevitable as death and taxes and the grocery store running out of your favorite flavor of ice cream. They're also just as predictable. Why, for instance, are we convinced that "sizing up" at our favorite burger joint is a good idea, even when we're not that hungry? Why are our phone lists cluttered with numbers we never call? Dan Ariely, behavioral economist, has based his career on figuring out the answers to these questions, and in his bestselling book Predictably Irrational (re-released in expanded form in May 2009), he describes many unorthodox and often downright odd experiments used in the quest to answer this question.


Ariely has long been fascinated with how emotional states, moral codes and peer pressure affect our ability to make rational and often extremely important decisions in our daily lives -- across a spectrum of our interests, from economic choices (how should I invest?) to personal (who should I marry?). At Duke, he's aligned with three departments (business, economics and cognitive neuroscience); he's also a visiting professor in MIT's Program in Media Arts and Sciences and a founding member of the Center for Advanced Hindsight. His hope that studying and understanding the decision-making process can help people lead better, more sensible daily lives.

He produces a weekly podcast, Arming the Donkeys, featuring chats with researchers in the social and natural sciences.

"If you want to know why you always buy a bigger television than you intended, or why you think it's perfectly fine to spend a few dollars on a cup of coffee at Starbucks, or why people feel better after taking a 50-cent aspirin but continue to complain of a throbbing skull when they're told the pill they took just cost one penny, Ariely has the answer."
Daniel Gross, Newsweek

--
TED is a small nonprofit devoted to Ideas Worth Spreading. It started out (in 1984) as a conference bringing together people from three worlds: Technology, Entertainment, Design. Since then its scope has become ever broader. Along with the annual TED Conference in Long Beach, California, and the TEDGlobal conference in Oxford UK, TED includes the award-winning TEDTalks video site, the Open Translation Program, the new TEDx community program, this year's TEDIndia Conference and the annual TED Prize.

Sunday, July 26, 2009

--Book Reviews-- Anatomy of Evil and Empire of Illusion. Week of 20090726

The Anatomy of Evil

Listen to an Interview with the author, Dr. Michael H. Stone, MD

The crimes of Charles Manson, Ted Bundy, Jeffrey Dahmer, John Wayne Gacy, Dennis Rader, and other high-profile killers are so breathtakingly awful that most people would not hesitate to label them 'evil'. In this ground-breaking book, renowned psychiatrist Michael H Stone - host of Discovery Channel's former series "Most Evil" - uses this common emotional reaction to horrifying acts as his starting point to explore the concept and reality of evil from a new perspective. In an in-depth discussion of the personality traits and behaviour that constitute evil across a wide spectrum, Dr Stone takes a clarifying scientific approach to a topic that for centuries has been inadequately explained by religious doctrines. Basing his analysis on the detailed biographies of over 600 violent criminals, Stone has created a 22-level hierarchy of evil behaviour, which loosely reflects the structure of Dante's Inferno. He traces two salient personality traits that run the gamut from those who commit crimes of passion to perpetrators of the worst crimes - sadistic torture and murder. One trait is narcissism, as exhibited in people who are so self-centred that they have little or no ability to care about their victims. The other is aggression, the use of power over another person to inflict humiliation, suffering, and death. Stone then turns to the various factors that, singly or intertwined, contribute to pushing certain people over the edge into committing heinous crimes. They include heredity, adverse environments, violence-prone cultures, mental illness or brain injury, and abuse of mind-altering drugs. All are considered in the search for the root causes of evil behaviour. What do psychology, psychiatry, and neuroscience tell us about the minds of those whose actions could be described as evil? And what will that mean for the rest of us? Stone discusses how an increased understanding of the causes of evil will affect the justice system. He predicts a day when certain persons can safely be declared salvageable and restored to society and when early signs of violence in children may be corrected before potentially dangerous patterns become entrenched.

Review

"For centuries we have defended against the incarnate reality of evil by intellectualizing it, often traveling along the meandering and ethereal avenues of philosophy and theology. Dr. Stone brings evil to earth--the perpetrators, the acts, and the victims--as a force that is instantly recognizable because it makes our skin crawl." --J. Reid Meloy, Ph.D., Forensic Psychologist author, The Psychopathic Mind

"Psychiatrist Michael Stone is the Einstein of Evil. Or, rather, Stone is the forensic psychoanalyst who has journeyed into the strange universe of murder, torture and savagery, to forge a Unified Theory of Evil he calls the 'Gradations of Evil Scale.'...This is a scientific thriller and we are all victims of real Evil, which is why this book is impossible to put down. Which of the many suspects will Stone finger for true Evil? Is it Nature or nurture? Or is it brain injury, sex abuse, drugs or the fabled 'Bad Seed?' To give away the ending of such a compelling thriller would itself be an act of evil." --Kieran Crowley, New York Times bestselling author of Almost Paradise

"[P]sychiatrist Stone (Personality Disorders) provides an etymology of evil with case studies of over 600 violent criminals, giving readers a comprehensive picture of the nature and varieties of human evil." --Library Journal, Xpress Reviews; June 26, 2009, Melissa Mallon, Univ. of Pittsburgh Johnstown Lib., PA

About the Author
Michael H. Stone, MD (New York, NY) is professor of clinical psychiatry at the Columbia College of Physicians and Surgeons. He is the author of ten books, most recently Personality Disorders: Treatable and Untreatable, and over two hundred professional articles and book chapters. He is also the host of Discovery Channel's former series Most Evil and has been featured in the New York Times, Psychology Today, the Christian Science Monitor, CNN, ABC News, CBS News, NBC News, the New York Post, the London Times, the BBAC, and Newsday, among many other media outlets.

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Empire of Illusion: The End of Literacy and the Triumph of Spectacle

Listen to an interview with the author, Chris Hedges

Pulitzer prize–winner Chris Hedges charts the dramatic and disturbing rise of a post-literate society that craves fantasy, ecstasy and illusion.

Chris Hedges argues that we now live in two societies: One, the minority, functions in a print-based, literate world, that can cope with complexity and can separate illusion from truth. The other, a growing majority, is retreating from a reality-based world into one of false certainty and magic. In this “other society,” serious film and theatre, as well as newspapers and books, are being pushed to the margins.

In the tradition of Christopher Lasch’s The Culture of Narcissism and Neil Postman’s Amusing Ourselves to Death, Hedges navigates this culture — attending WWF contests as well as Ivy League graduation ceremonies — exposing an age of terrifying decline and heightened self-delusion.

About the Author
Chris Hedges, the author of the bestselling War Is a Force That Gives Us Meaning, is currently a senior fellow at The Nation Institute and the Anschutz Distinguished Fellow at Princeton University, and writes for many publications including Foreign Affairs, Harper’s, The New York Review of Books, Granta and Mother Jones. He is also a columnist for

--Inspiration-- Life, Liberty, and the Pursuit of Happiness. By Andrew Sullivan for This I Believe. Week of 20090726

Life, Liberty, and the Pursuit of Happiness

Listen to the complete podcast at:

This I Believe Essay 29

Andrew Sullivan
- Provincetown, Massachusetts
As heard on NPR’s Morning Edition, July 4, 2005

I believe in life. I believe in treasuring it as a mystery that will never be fully understood, as a sanctity that should never be destroyed, as an invitation to experience now what can only be remembered tomorrow. I believe in its indivisibility, in the intimate connection between the newest bud of spring and the flicker in the eye of a patient near death, between the athlete in his prime and the quadriplegic vet, between the fetus in the womb and the mother who bears another life in her own body.

I believe in liberty. I believe that within every soul lies the capacity to reach for its own good, that within every physical body there endures an unalienable right to be free from coercion. I believe in a system of government that places that liberty at the center of its concerns, that enforces the law solely to protect that freedom, that sides with the individual against the claims of family and tribe and church and nation, that sees innocence before guilt and dignity before stigma. I believe in the right to own property, to maintain it against the benign suffocation of a government that would tax more and more of it away. I believe in freedom of speech and of contract, the right to offend and blaspheme, as well as the right to convert and bear witness. I believe that these freedoms are connected — the freedom of the fundamentalist and the atheist, the female and the male, the black and the Asian, the gay and the straight.

I believe in the pursuit of happiness. Not its attainment, nor its final definition, but its pursuit. I believe in the journey, not the arrival; in conversation, not monologues; in multiple questions rather than any single answer. I believe in the struggle to remake ourselves and challenge each other in the spirit of eternal forgiveness, in the awareness that none of us knows for sure what happiness truly is, but each of us knows the imperative to keep searching. I believe in the possibility of surprising joy, of serenity through pain, of homecoming through exile.

And I believe in a country that enshrines each of these three things, a country that promises nothing but the promise of being more fully human, and never guarantees its success. In that constant failure to arrive — implied at the very beginning — lies the possibility of a permanently fresh start, an old newness, a way of revitalizing ourselves and our civilization in ways few foresaw and one day many will forget. But the point is now. And the place is America.

Andrew Sullivan was born in England and educated at Oxford and Harvard. At age 27, he became editor of The New Republic, a position he held for five years. As a writer, commentator and blogger, Sullivan addresses political and social issues, and advocates for gay rights.

Independently produced for NPR by Jay Allison and Dan Gediman with John Gregory and Viki Merrick. Edited by Ellen Silva. Photo by Nubar Alexanian.

--Debate-- What Is a Master’s Degree Worth? The New York Times. Week of 20090726

June 30, 2009, 7:30 pm

What Is a Master’s Degree Worth?

(Credit: Chip East/Reuters)

Room for Debate recently published two forums on the burdens of student loans, and heard from a lot of former students, parents, professors and others who shared personal horror stories, blunt advice and critical observations about higher education.

A number of economists and education researchers say that the student debt problem, while real, has been overblown by the press and loan-forgiveness advocates, and that most students do not graduate with too much debt.

But the debate presents difficult questions for young people, who face the most difficult economy since the Great Depression. Many have decided to go to graduate school, to wait out the storm. Several commenters on our forums even said they had no choice but to seek a master’s degree (and incur more debt), arguing that a B.A. today is the equivalent of having a high school diploma 20 years ago and more employers require a higher degree.

How do students know if an M.A. is worth it or not? What degrees might be worth getting, and which are not? How does a student weigh the risks and benefits of taking that intermediate step in higher education?

The Education Bubble

Mark C. Taylor, the chairman of the religion department at Columbia University, is the author, most recently, of the forthcoming “Field Notes From Elsewhere: Reflections on Dying and Living.”

The next bubble to burst will be the education bubble. Make no mistake about it, education is big business and, like other big businesses, it is in big trouble. What people outside the education bubble don’t realize and people inside won’t admit is that many colleges and universities are in the same position that major banks and financial institutions are: their assets (endowments down 30-40 percent this year) are plummeting, their liabilities (debts) are growing, most of their costs are fixed and rising, and their income (return on investments, support from government and private donations, etc.) is falling.

Colleges are on the prowl for new sources of income. And one place they invariably turn is to new customers, i.e., students.

This is hardly a prescription for financial success. Faced with this situation, colleges and universities are on the prowl for new sources of income. And one place they invariably turn is to new customers, i.e., students.

During times of financial stress, people become vulnerable and understandably seek to improve their situation in any way they can. For many, more education seems to be the solution. When the economy goes down, applications to graduate programs go up.

As a lifelong educator, I believe more education is always a good thing, but buyers must beware. The debt crisis is not limited to governments and universities but extends to students and their families. Far too many students come out of college with substantial debts that plague them for years.

Read more…

The Value of an M.A.

Stephen Joel Trachtenberg is president emeritus and professor of public services at the George Washington University. He is also chairman of the Higher Education Practice at Korn Ferry International.

The M.A. degree is neither fish nor fowl nor good red meat. I had a classmate at Columbia who remained on after receiving his B.A. degree to earn an M.A. degree on a fellowship while waiting for his fiancé to graduate from Barnard. Another classmate who started a Ph.D. program was informed after a year that he had no real promise but if he went away quietly they would give him a booby-prize: the M.A. He became an M.D.

What’s so bad about reading a lot of French literature at someone else’s expense?

Does earning an M.A. (distinguishable from an M.B.A. or other professional degree) make any sense from a cost-benefit point of view? It does allow one to upgrade one’s alma mater. If you originally matriculated at a college you are vaguely uneasy about, taking an M.A. at a more elite institution allows you to kick down and kiss up, henceforth letting you tell people you “went to school” in New Haven. And it does, of course, ornament a resume indicating academic sitzfleisch — the ability to keep your behind in a chair in a diligent manner. A “B” undergraduate can become an “A” graduate student.

The M.A. permits someone who has a generic B.A. degree in a field she didn’t much care about to change direction, to add a line to her curriculum vitae that says she has a documented competency. M.A.’s also allow their owners to check the right box on corporate personnel forms and similar documents used by the armed services, N.G.O.’s, schools and public agencies that like their civil servants credentialed.

Read more…

Degrees That Don’t Pay Off

Liz Pulliam Weston is the author of “Easy Money,” “Your Credit Score” and “Deal with Your Debt.” She is a personal finance columnist for MSN Money.

Graduate school has traditionally been a great place to wait out recessions while honing your skills for a better job. But sometimes, the payoff doesn’t justify the cost.

When I analyzed economic costs and benefits of various degrees several years ago for an MSN column, “Is your degree worth $1 million or worthless?”, it was clear that certain degrees were winners:

–People with associates’ degrees tended to earn a lot more than those whose educations stopped at high school.

–Bachelor’s degrees, particularly those earned at lower-cost public universities, also tended to be worth the investment.

–Professional degrees in law or medicine were costly to get but clearly offered a big enough payoff.

Not such a slam dunk: Master’s degrees.

In some fields, such as business or engineering, a graduate degree typically boosted income by more than enough to justify the cost. In others — the liberal arts and social sciences, in particular — master’s degrees didn’t appear to produce much if any earnings advantage. The Census Bureau has updated the data I used a few times since then, and the results are similar: certain graduate degrees just don’t seem to pay off.

Read more…

Not All Degrees Are Equal

Richard Vedder is director of the Center of College Affordability and Productivity and teaches economics at Ohio University.

Given the poor labor market, should new college graduates go on and get a master’s degree? For many students, this is not a bad option. Census Bureau data show us that typically young adults with master’s degrees earn about $8,000 more a year (roughly, 15 percent) than those just having a bachelor’s diploma. The lifetime earnings gains for the second degree should reach into the low six digits. For many, the rate of return on the added college investment therefore should be reasonably high — and it beats unemployment or working in a low-skilled, low-wage retail trade job.

Universities should survey former students for five years after graduation, and give that information to prospective students.

That said, however, that is not true for everyone. Not all degrees are equal — a master’s in anthropology or art probably has less incremental earning power than a M.B.A. or advanced engineering degree. If graduate enrollments soar as more decide to stay in school, the newly minted master’s graduates may find the job market not all that much better in a couple of years than at the present, and end up taking a relatively low paid job — and facing much larger student loan debts than otherwise.

Moreover, the cost of getting a master’s degree varies a lot, depending on the school attended, the availability of financial aid, the length of the master’s program (ranging typically from one to two years), not to mention the “opportunity cost” in terms of employment income lost while in school. Some master’s programs will cost a student only perhaps $10,000, while others (e.g., an expensive two-year M.B.A. program) might run over $100,000.

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--Career-- What's in Your Future? By Alexandra Levit for the Wall Street Journal. Week of 20090726

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What's in Your Future?

By ALEXANDRA LEVIT

I've been pondering the future since my dad took me to visit the World Future Society headquarters in Bethesda, Md., when I was 10 years old. And now that I'm a career writer, it's my job to think about what the workplace will look like -- and what it will demand from us -- in 2025.

You may not be concerned with surviving beyond the current recession, but you should be. Reinvention isn't just for people who are unhappy in their current jobs. In order to have long-term, successful careers, we all must rethink how we'll stay marketable in the future work force.

The twin challenges that face a majority of 21st-century workers are outsourcing and automation. "If they can put your job into a manual, they will, and if your job can be done by someone cheaper in a less expensive locale, it will go away," says Seth Godin, the author of "Tribes: We Need You to Lead Us."
Close to the Customer

The essential worker of the future will have one-on-one relationships with customers that keep them coming back.

Mr. Godin relates the story of a local supermarket manager who was transferred and then subsequently reinstated because of a customer petition. "The people who look at every interaction as an opportunity to add value and solve problems will be the most sought-after employees in 2025," he says.

Self-discipline and internal motivation will also be critical success factors, for the traditional office environment may largely disappear by 2025.

Many will work remotely for a variety of organizations, and hours will depend on the geography of the team with which you're collaborating. Although technology will be available to track what you're working on and when, you'll need to be productive without the boss looking over your shoulder.

Another requirement is comfort with rapid change and initiatives that move at the speed of the Internet. Future workers will learn a wide array of skills from strategic planning and hiring to computer programming and design and will be expected to constantly upgrade those skills. Employees of all ages and levels will contribute creative thinking and operational excellence to projects. Gatekeepers and paper pushers will no longer exist.
Prepare for the Years Ahead

If you're sitting in a cube, doing your work the way you've always done it, how can you prepare to have a viable career in 2025? In addition to honing your technical knowledge and functional expertise in areas like customer service, you should brainstorm ways to position yourself well in the future marketplace -- before you have to.

"Instead of blindly doing what you're told, get in the habit of taking action that invites people to pay attention," says Mr. Godin. "Make changes to the organization that will benefit the customer, and you'll be the go-to person today and tomorrow."

For the under-40 set, a leadership-development course or two will be helpful, too. Starting in this decade, the baby boomers' retirement will leave a gaping hole in the executive ranks, and there will be opportunities for members of Generations X and Y to take on greater responsibilities.

Write to Alexandra Levit at reinvent@wsj.com

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--Small Business-- Five Alternative Sources of Funding. By Diana Ransom for the Wall Street Journal. Week of 20090726

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Five Alternative Sources of Funding

By DIANA RANSOM

Despite lining up a last-minute, $3 billion reprieve from its bondholders over the weekend, CIT Group isn't in the clear yet. To counter its losses, CIT aims to attract more funds through deposits to its bank in Utah. However, the company first needs approval from the Federal Reserve and the Federal Deposit Insurance Corp. to transfer more of its assets to the bank. And more broadly, the firm must find a long-term solution to the increasingly expensive business of finding capital to make loans.

Even if CIT manages to stave off filing for bankruptcy protection, small-business owners would be wise to familiarize themselves with credit alternatives — especially these days, says David S. Waddell, the CEO of investment strategy firm Waddell & Associates in Memphis, Tenn. Owners are now finding that their longtime deposit relationships arent proving as useful, as many lenders restrict loan and credit terms to keep more cash on hand, he says. (According to the Federal Reserve's most recent Senior Loan Officer Opinion Survey in April, 75% of domestic banks said they tightened credit for small firms — up from 70% in the Fed's January survey.) In addition, credit card companies like American Express and Advanta are either tightening their terms or cutting small businesses off entirely.

"Hopefully, recent events and those within the last year gave entrepreneurs inspiration to locate alternative forms of capital," says Waddell. But if aligning back-up (or primary) financing sources hasn't been a top priority at your firm, it's not too late.

Here are five small-business funding alternatives to consider:

Government-backed loans

In March, the Small Business Administration began guaranteeing as much as 90% of some loans. Now, preferred SBA lenders such as Bank of America and KeyBank may be more willing to extend you an SBA-backed loan, says Brian Hamilton, CEO of Sageworks, a Raleigh, N.C., financial research firm, and a former SBA consultant. Since President Obama signed the American Recovery and Reinvestment Act (ARRA) into law in mid-February, the weekly loan dollar volume has risen more than 40% in the 7(a) and 504 programs, compared to the weekly average before passage, according to John J. Miller, a SBA spokesman.

Passage of the ARRA, also permitted the SBA to temporarily waive a fee that it charges to banks, which is passed on to borrowers, says Martha Seidenwand, KeyBank's SBA program and operations manager in Cleveland. (Special SBA programs including the American Recovery Capital (ARC) program and the floor plan financing program, might also prove helpful.)

Community banks and credit unions

Having dodged the brunt of the mortgage bullet, community banks and credit unions may be in a better position to lend to small businesses, Hamilton says. A number of community banks are issuing additional loans to small businesses as the outlook for the lending environment improves. In addition, credit unions may soon take on more small-business loans as larger lenders tighten their terms.

Peer-to-Peer networks

After a nine-month registration period with the Securities and Exchange Commission, the San Francisco-based peer-to-peer lending network Prosper is back in the business of brokering loans. At Prosper, borrowers list how much they need and details about their business, while strangers can make loans with as little as $25. Virgin Money specializes in structuring business loans between friends, family members and associates. Lending Club will connect only credit-worthy borrowers with lenders.

Microlenders

In need of a small cash infusion? Enter: New York-based microlenders Accion USA and Count Me In. Because these organizations rely on donations from charitable organizations and individuals, they're more willing to lend to entrepreneurs just starting up or to those with checkered credit histories. Although microloans generally carry higher interest rates than bank loans, Accion recently lowered its rates from between 11% and 18% to between 8% and 15%. The SBA also provides microloans and offers rates between 8% and 13%.

Asset-based lenders

Don't let the near-collapse of CIT, one of the nation's largest factoring firms, fool you. There are troves of other asset-based lenders willing either to purchase your accounts receivables for 80% to 90% on the dollar or to lend against them. LSQ Funding, an Orlando, Fla., factoring firm, for example, works exclusively with small to midsized businesses across the U.S., and New York's FGI Finance purchases international receivables. For those who like competition, the New Orleans-based Receivables Exchange allows credit-worthy businesses to auction off their receivables to the highest bidder.

Write to Diana Ransom at dransom@smartmoney.com

http://online.wsj.com/article/SB124827141870672175.html

--Lesson-- What I've learned. By Former Prime Minister of Great Britain Tony Blair for The Economist Newspaper. Week of 20090726

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What I've learned
May 31st 2007
From The Economist print edition

Tony Blair reflects on the lessons of his decade as Britain's prime minister

TEN years ago, if you had told me I would spend a significant part of my premiership on foreign policy, I would have been surprised, a little shocked and probably, politically, somewhat alarmed. Even today, we all run for office concentrating on domestic issues. “Foreign” policy rarely wins votes, and can easily lose them. Yet nowadays the reality is increasingly that we are obliged as leaders to think, work and act internationally.

Over ten years I have watched this grow. (If you had told me a decade ago that I would be tackling terrorism, I would have readily understood, but thought you meant Irish Republican terrorism.) The line between “foreign” and “domestic” policy is being blurred. Climate change is a big issue in developed nations' politics today. It can be beaten only by global action. What happens today in Pakistan matters on the streets of Britain. Mass migration can only partially be managed by individual nations' internal policies. Economies are shaped by forces of globalisation.

On top of this, the world order is changing. The political power of China is emerging as its economic power grows. India will be formidable. Japan is putting its past behind it. Russia is becoming more assertive by the day.

In this age, foreign policy is not an interesting distraction from the hard slog of domestic reform. It is the element that describes a nation's face to the world at large, forms the perceptions of others to it and, in part, its perception of itself.

We all talk of interdependence being the defining characteristic of the modern world. But often we fail to see the fundamental implications of such a statement. It means we have a clear self-interest as a nation in what happens the world over. And because mass media and communication convey powerful images in an instant across the globe, it dictates that struggles are fought as much through propaganda, ideas and values as through conventional means, military or diplomatic.

My reflections, based on this analysis, are these:

1. Be a player not a spectator

Over the past ten years, Britain has been in the thick of it. There is no international debate of importance in which we are not as fully engaged as we can be.

We have attempted to construct the broadest possible agenda that is capable of unifying the international community and is, overtly, values-based. That is why action on poverty in Africa, a good outcome to the world trade talks and agreement on climate change all matter beyond the obvious importance of each individual issue. They are indicative of an attitude, of responsibility to others, an acceptance that international politics should not be simply a game of interests but also of beliefs, things we stand for and fight for.

It is also why we should be prepared to intervene, if necessary militarily, to prevent genocide, oppression, the deep injustice too often inflicted on the vulnerable. Britain, in the past decade, has intervened four times: in Kosovo, Sierra Leone, Afghanistan and Iraq. In each case, regimes of appalling brutality were removed.

Lessons from the Balkans

Earlier this week I visited the people of Sierra Leone, still struggling, but at least able to contemplate a better future. But as important is the next-door state of Liberia, now properly democratic. It might never have been so had Sierra Leone fallen into the hands of the gangsters. Similarly, as a result of Kosovo, the Balkans changed. Countries there can think of a future in the European Union.

So when we come to Darfur, do we really believe that if we do not act to change this situation, the violence will stop at the borders of Sudan? In the early 1990s we could not summon the will to act in Bosnia. It took 250,000 lives lost before we realised we had no option.

It is said that by removing Saddam or the Taliban—regimes that were authoritarian but also kept a form of order—the plight of Iraqis and Afghans has worsened and terrorism has been allowed to grow. This is a seductive but dangerous argument. Work out what it really means. It means that because these reactionary and evil forces will fight hard, through terrorism, to prevent those countries and their people getting on their feet after the dictatorships are removed, we should leave the people under the dictatorship. It means our will to fight for what we believe in is measured by our enemy's will to fight us, but in inverse proportion. That is not a basis on which you ever win anything.

However, the critical point is that we, Britain, should be closely involved in all these issues because in the end they will affect our own future. And the agenda constructed should be about our values—freedom, democracy, responsibility to others, but also justice and fairness.

2. Transatlantic co-operation is still vital

I have real concern that on both sides of the Atlantic there is, in certain quarters, an indifference, even a hostility, to an alliance that is every bit as fundamental to our future as it has been to our past. By this I don't just mean the rampant anti-Americanism on parts of the left. In a sense, that is relatively easy to counter.

It is more a drifting away, occasionally a resurgent isolationism that crosses right and left. In Britain now there are parts of the media and politics that are both Eurosceptic and wanting “an independent foreign policy” from America. Quite where Britain is supposed to get its alliances from bewilders me. There is talk of Britain having a new strategic relationship with China and India bypassing our traditional European and American links. Get real. Of course we will have our own relationship with both countries. But we are infinitely more influential with them if we have two strong alliances behind us.

In Europe we wonder: is it worth it to continue such reliance on America? We would be better asking whether the political leaders in America still see Europe as their first port of call.

For all our differences, we should be very clear. Europe and America share the same values. We should stick together. That requires a strong transatlantic alliance. It also means a strong, effective and capable EU. A weak Europe is a poor ally. That is why we need closer co-operation between the nations of the EU and effective European institutions. In a world in which China and India will each have a population three times that of the EU, anything else is completely out of date.

3. Be very clear about global terrorism

I fear the world, and especially a large part of Western opinion, has become dangerously misguided about this threat. If there was any mistake made in the aftermath of September 11th, it was not to realise that the roots of this terrorism were deep and pervasive. Removing the Taliban from government seemed relatively easy. Removing their ideology is so much harder. It has been growing for over a generation. It is based on genuine belief, the believers being people determined to outlast us, to be indefatigable when we are weary: to be strong-willed and single-minded when we have so many other things to preoccupy us (and when the comforts of our Western lives seem so untouchable by the activities of what are naturally seen as a few fanatics).

People make much of the fact that in each area of conflict, the extremists take a different shape. They point to the historical absurdity of, for example, Iranian elements linking up to the Taliban. Above all, they say, their weapons, numbers and support are puny compared with ours.

This misses the central point. Revolutionary communism took many forms. It chose unlikely bedfellows. But we still spent decades confronting it.

This new terrorism has an ideology. It is based on an utter perversion of the proper faith of Islam. But it plays to a sense of victimhood and grievance in the Muslim world. Many disagree with its methods. But too many share some of its sentiments. Its world view is completely reactionary. But its understanding of terrorism and its power in an era of globalisation is arrestingly sophisticated and strategic.

It means that it can go into any situation where peace is fragile or conflict possible. It can, by the simple use of terror, break the peace and provoke the conflict. It has worked out that in an age of mass media, instantly relayed round the world, impact counts: and nothing makes more impact than the carnage of the innocent. It has learned that as states respond to terror so they can, unwittingly, feed it.

In the Middle East right now, it stops progress in Iraq. It defies the attempts at peace between Israel and Palestine. It is making Lebanese democracy teeter on the brink. That is significant in itself. But far more significant is the way in which the terrorists have successfully warped our sense of what is happening and why. They have made us blame ourselves.

We can debate and re-debate the rights or wrongs of removing Saddam. But the reality is that if you took al-Qaeda (in Iraq before Saddam's fall) out of the conflict in or around Baghdad, without the car bombs aimed at civilians and the destruction of monuments like the Samarra Shrine, it would be possible to calm the situation. Events in Anbar Province, where slowly but surely Sunni opinion is turning on al-Qaeda, show it. And down in Basra, what is poisoning the city is the violence and criminality of Jaish-al Mahdi and other groups—supported, financed and armed by elements of the Iranian regime. Remove al-Qaeda, remove the malign Iranian activity, and the situation would be changed, even transformed.

The truth is that the conflict in Iraq has mutated into something directly fuelled by the same elements that confront us everywhere. Yet a large, probably the larger, part of Western opinion would prefer us to withdraw. That is the extraordinary dulling of our senses that the terrorism has achieved. In the Palestinian question who gets the blame for lack of progress? The West. In Lebanon—a crisis deliberately provoked by, again, the same forces—who is held responsible? Israel.

In Afghanistan it is clear that the Taliban is receiving support, including arms from, again, elements of the Iranian regime. They have learned from elsewhere. They believe if they inflict enough chaos, enough casualties of Western soldiers, we will lose the will. It will become another “mess”. And if it does, the problem will be laid at the door of the Afghan government and its Western allies.

In the past few weeks alone we have seen terrorist bombs in Morocco, Algeria, Pakistan, India, and arrests in Saudi Arabia. Not a single major European nation is immune. In Africa, Sudan, Somalia, even in places like Nigeria where Muslims and Christians live together, terrorism is active.

There is no alternative to fighting this menace wherever it rears its head. There are no demands that are remotely negotiable. It has to be beaten. Period.

4. We must stand up for our values

We will not succeed simply by military or security means. It is a political challenge. Terrorism recruits adherents on the basis of an appeal to human emotion. It can be countered only by a better, more profound, well-articulated counter-appeal.

Being a player

But this won't happen unless we stand up for our own values, are proud of them and advocate them with conviction. There is nothing more ridiculous than the attempt to portray “democracy” or “freedom” as somehow “Western” concepts which, mistakenly, we try to apply to nations or peoples to whom they are alien. There may well be governments to whom they are alien. But not peoples. Whoever voted to get rid of democracy? Or preferred secret police to freedom of speech?

These values are universal. We should attack the ideology of the extremists with confidence: their reactionary view of the state; their refusal to let people prosper in peace; their utterly regressive views on women. We should condemn not just their barbaric methods of terrorism, but in particular attack their presumed sense of grievance against the West. We need to support and help mobilise moderate and true Islam in doing so. There is nothing more absurd than the idea that removing the Taliban in Afghanistan, or Saddam and his sons in Iraq, and replacing their regimes with the chance to vote, supervised by the UN, is somehow an assault on Muslims. We should point out that those killing Muslims by terror are actually other Muslims and that doing so is completely contrary to the teachings of the Koran.

But, and it is a mighty but, such an approach only counts if it is applied vigorously and in a manner that is even-handed. Here is where I have always felt that the normal politics of left and right are a hindrance. The trouble is that the right is correct on the need to stand firm militarily and in support of freedom; and the left is correct on the need for justice.

The assault on the ideas behind terrorism won't work unless it is seen to be motivated and stirred by a commitment to justice. That is why trying to resolve the Israel-Palestine dispute is so important—not only for its own sake, but because the absence of peace causes suffering that is exploited by this extremism. Ask yourself why parts of the Iranian regime try so hard to prevent a settlement; and then understand why it is crucial to settle it.

We are faced with a challenge derived from a world view. We need our own world view, no less comprehensive but based on the decent values we believe in.

5. It's about tomorrow's agenda too

The importance of such an agenda is that it allows us also to shape the common value system of a world in which, very soon, the new powers and interests will have the strength to influence greatly the path the world takes. So such an approach is a bulwark against extremism but it is also a civilising force in a future in which Western economic and political weight will be less than hitherto. We need a sufficiently strong basis, founded in a clear and even-handed commitment to our values, for the world as it changes to adopt these values, universal as they are, to guide us.

Meanwhile, at home

This article is for a global audience, and has focused mainly on international policy. But there are some interesting lessons from domestic policy also.

1. “Open v closed” is as important today in politics as “left v right”. Nations do best when they are prepared to be open to the world. This means open in their economies, eschewing protectionism, welcoming foreign investment, running flexible labour markets. It means also open to the benefit of controlled immigration. For all nations this is a hugely contentious area of policy. But I have no doubt London is stronger and more successful through the encouragement of targeted migration.

Isolationism and protectionism now cut across left and right boundaries. They are easy tunes to play but pointless in anything other than the very short-term.

2. The role of the state is changing. The state today needs to be enabling and based on a partnership with the citizen, one of mutual rights and responsibilities. The implications are profound. Public services need to go through the same revolution—professionally,
culturally and in organisation—that the private sector has been through.

The old monolithic provision has to be broken down. The user has to be given real power and preference. The system needs proper incentives and rewards. The purpose should be so that public services can adapt and adjust naturally—self-generating reform—rather than being continually prodded and pushed from the centre. Public-sector unions can't be allowed to determine the shape of public services.

In Britain we have put huge investment into our public services. But we are also opening the health service to private and voluntary-sector partnerships, introducing a payment-by-results system, creating competition and allowing hospitals to become self-governing trusts. The new academies and trust schools will have the freedom to develop as independent but non-fee-paying schools, with outside partners like businesses, universities and charities able to sponsor and run them.

3. Welfare systems work only if there is shared responsibility—the state to provide help, the citizens to use that help to help themselves. The pensions reforms Britain is now putting through will, over the decades, give us a system that is affordable and fair between the generations, by ensuring that, though each citizen is guaranteed a basic pension, they will be expected to top that up with their own finances.

4. Law and order matters in a way that is more profound than most commentary suggests. It used to be that progressives were people who wanted an end to prejudice and discrimination and took the view that, in crime, social causes were paramount. Conservatives thought crime was a matter of individual responsibility and that campaigns against discrimination were so much political correctness.

Today the public distinguishes clearly between personal lifestyle issues, where they are liberal, and crime, where they are definitely not. It is what I call the pro-gay-rights, tough-on-crime position. It confounds traditional left/right views.

5. Social exclusion needs special focus. From 1979 to 1997 the incomes of the richest 20% in Britain grew faster (2.5%) than the incomes of the poorest 20% (0.8%). That has been reversed. Since 1997 the incomes of the poorest have risen faster (2.2%) than the richest (2%). However, this masks a tail of under-achievers, the socially excluded. The rising tide does not lift their ships. This issue of social exclusion is common throughout Western nations.

6. Finally, political parties will have to change radically their modus operandi. Contrary to mythology, political parties aren't dying; public interest in politics is as intense as it ever was. As the recent turn-out in the French election shows: give people a real contest and they will come out and vote.

But politics is subject to the same forces of change as everything else. It is less tribal; people will be interested in issues, not necessarily ideologies; political organisation if it is rigid is off-putting; and there are myriad new ways of communicating information. Above all, political parties need to go out and seek public participation, not wait for the public to be permitted the privilege of becoming part of the sect.

So, membership should be looser, policymaking broader and more representative, the internet and interactive communication the norm. Open it all up.

Over to you

That is a very short synopsis of what I have learned. I don't presume to call it advice to my successor. I have been reasonably fortunate rarely to receive public “advice” from my predecessors.

The job is difficult enough as it is, and, knowing that, I have nothing but support to offer my successor.

Copyright © 2009 The Economist Newspaper and The Economist Group. All rights reserved.

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--Opinion-- The Arab World, Waking from its sleep. By The Economist Newspaper. Week of 20090726

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The Arab world
Waking from its sleep
Jul 23rd 2009
From The Economist print edition


A quiet revolution has begun in the Arab world; it will be complete only when the last failed dictatorship is voted out

WHAT ails the Arabs? The United Nations Development Programme (UNDP) this week published the fifth in a series of hard-hitting reports on the state of the Arab world. It makes depressing reading. The Arabs are a dynamic and inventive people whose long and proud history includes fabulous contributions to art, culture, science and, of course, religion. The score of modern Arab states, on the other hand, have been impressive mainly for their consistent record of failure.

They have, for a start, failed to make their people free: six Arab countries have an outright ban on political parties and the rest restrict them slyly. They have failed to make their people rich: despite their oil, the UN reports that about two out of five people in the Arab world live on $2 or less a day. They have failed to keep their people safe: the report argues that overpowerful internal security forces often turn the Arab state into a menace to its own people. And they are about to fail their young people. The UNDP reckons the Arab world must create 50m new jobs by 2020 to accommodate a growing, youthful workforce—virtually impossible on present trends.

Arab governments are used to shrugging off criticism. They had to endure a lot of it when George Bush was president and America’s neoconservatives blamed the rise of al-Qaeda on the lack of Arab democracy. Long practice has made Arab rulers expert at explaining their failings away. They point to their culture and say it is unsuited to Western forms of democracy. Or they point to their history, and say that in modern times they would have done much better had they not had to deal with the intrusions of imperialists, Zionists and cold warriors.

Some of this is undeniable. A case can indeed be made that Islam complicates democracy. And, yes, oil, Israel and the rivalry between America and the Soviet Union meant that the Arab world was not left to find its own way after the colonial period ended. More recently the Arabs have been buffeted by the invasion of Iraq. Now they find themselves caught in the middle as America and Iran jostle for regional dominance.

Strangely, your highness, they like voting

Still, as the decades roll by the excuses wear thin. Islam has not prevented democracy from taking root in the Muslim countries of Asia. Even after its recent flawed election, Iran, a supposed theocracy, shows greater democratic vitality than most Arab countries. As for outside intrusion, some of the more robust Arab elections of recent years have been held by Palestinians, under Israeli occupation, and by Iraqis after America’s invasion. When they are given a chance to take part in genuine elections—as, lately, the Lebanese were—Arabs have no difficulty understanding what is at stake and they turn out to vote in large numbers. By and large it is their own leaders who have chosen to prevent, rig or disregard elections, for fear that if Arabs had a say most would vote to throw the rascals out.

For this reason, you can bet that if the regimes have their way, Arabs will not get the chance. Arab rulers hold on to power through a cynical combination of coercion, intimidation and co-option. From time to time they let hollow parties fight bogus elections, which then return them to power. Where genuine opposition exists it tends to be fatally split between Islamist movements on one hand and, on the other, secular parties that fear the Islamists more than they dislike the regimes themselves. Most of the small cosmetic reforms Arab leaders enacted when Mr Bush was pushing his “freedom agenda” on unwilling allies have since been rolled back. If anything, sad to say, the cause of democracy became tainted by association with a president most Arabs despised for invading Iraq.

The illusion of permanence

Can regimes that are failing their people so clearly really hold sway over some 350m people indefinitely? Hosni Mubarak has been Egypt’s president for 28 years; Muammar Qaddafi has run Libya since 1969. When Hafez Assad died after three decades as president of Syria, power passed smoothly to his son Bashar. After the failure of Mr Bush’s efforts to promote democracy, and the debacle in Iraq, Barack Obama has put “respect” rather than “freedom” at the centre of America’s discourse with the Muslim world. That may be wise: since the advent of Mr Obama, America’s standing has risen in Arab eyes, and Mr Bush’s zeal for reforming other countries was counterproductive anyway. But this suggests that if the Arabs want democracy, they will have to grab it for themselves.

Some in the West are wary of Arab elections, fearing that Islamists would exploit the chance to seize power on the principle of “one man, one vote, one time”. Yet Islamists seem to struggle to raise their support much above 20% of the electorate. Non-Arab Muslim countries like Turkey and Indonesia suggest that democracy is the best way to draw the poison of extremism. Repression only makes it more dangerous.

Democracy is more than just elections. It is about education, tolerance and building independent institutions such as a judiciary and a free press. The hard question is how much ordinary Arabs want all this. There have been precious few Tehran-style protests on the streets of Cairo. Most Arabs still seem unwilling to pay the price of change. Or perhaps, observing Iraq, they prefer stagnation to the chaos that change might bring. But regimes would be unwise to count on permanent passivity. As our special report in this issue argues, behind the political stagnation of the Arab world a great social upheaval is under way, with far-reaching consequences.

In almost every Arab country, fertility is in decline, more people, especially women, are becoming educated, and businessmen want a bigger say in economies dominated by the state. Above all, a revolution in satellite television has broken the spell of the state-run media and created a public that wants the rulers to explain and justify themselves as never before. On their own, none of these changes seems big enough to prompt a revolution. But taken together they are creating a great agitation under the surface. The old pattern of Arab government—corrupt, opaque and authoritarian—has failed on every level and does not deserve to survive. At some point it will almost certainly collapse. The great unknown is when.

Copyright © 2009 The Economist Newspaper and The Economist Group. All rights reserved.

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--Analysis-- The Wall Isn't Falling. By Fareed Zakaria. Week of 20090726

The Wall Isn't Falling

Historical parallels don't work in Iran.

By Fareed Zakaria. June 27, 2009

Whenever we see the kinds of images that have been coming out of Iran over the past two weeks, we tend to think back to 1989 and Eastern Europe. That time, when people took to the streets and challenged their governments, those seemingly stable regimes proved to be hollow and quickly collapsed. What emerged was liberal democracy. Could Iran yet undergo its own velvet revolution? It's possible but unlikely. While the regime's legitimacy has cracked—a fatal wound in the long runĂ¢€”for now it will probably be able to use its guns and money to consolidate power. And it has plenty of both. Remember, the price of oil was less than $20 a barrel back in 1989. It is currently $69. More important, as Zbigniew Brzezinski has pointed out, 1989 was highly unusual. As a historical precedent, it has not proved a useful guide to other antidictatorial movements.

The three most powerful forces in the modern world are democracy, religion, and nationalism. In 1989 in Eastern Europe, all three were arrayed against the ruling regimes. Citizens hated their governments because they deprived people of liberty and political participation. Believers despised communist leaders because they were atheistic, banning religion in countries where faith was deeply cherished. And people rejected their regimes because they were seen as having been imposed from the outside by a much-disliked imperial power, the Soviet Union.

The situation in Iran is more complex. Democracy clearly works against this repressive regime. The forces of religion, however, are not so easily aligned against it. Many, possibly most, Iranians appear to be fed up with theocracy. But that does not mean they are fed up with religion. It does appear that the more openly devout Iranians—the poor, the rural—voted for President Mahmoud Ahmadinejad.

There is one way religion could be used against Iran's leaders, but it would involve an unlikely scenario: were Iraq-based Grand Ayatollah Ali al-Sistani to issue a fatwa condemning Tehran in any way, it would be a seismic event, probably resulting in the regime's collapse. Remember, Sistani is Iranian, probably more revered in the entire Shia world than any other ayatollah, and he is opposed to the basic doctrine of velayat-e faqih that created the Islamic Republic of Iran. His own view is that clerics should not be involved in politics, which is why he has steered clear of any such role in Iraq. But he is unlikely to publicly criticize the Iranian regime. (He did, however, refuse to see Ahmadinejad when the latter visited Iraq in March 2008.)

Nationalism is the most complex of these three forces. Over most of its history, the Iranian regime has exploited nationalist sentiment. Ayatollah Ruhollah Khomeini came to power by battling the shah, who was widely seen as an American puppet. Soon after the revolution, Iraq attacked Iran, and the mullahs wrapped themselves in the flag again. The United States supported Iraq in that war, ignoring Saddam Hussein's use of chemical weapons against Iranians—something Iranians have never forgotten. Over the past eight years, the Bush administration's veiled threats to attack Iran allowed the mullahs to drum up support. (Every Iranian dissident, from Akbar Ganji to Shirin Ebadi, has noted that talk of airstrikes on Iran strengthened the regime.) And it is worth remembering that the United States still funds guerrilla outfits and opposition groups that are trying to topple the Islamic Republic. Most of these are tiny groups with no chance of success, funded largely to appease right-wing congressmen. But the Tehran government is able to portray this as an ongoing anti-Iranian campaign.

In this context, President Obama is quite right to tread cautiously, extend his moral support to Iranian protesters, but not get politically involved. The United States has always underestimated the raw power of nationalism across the world, always assuming that people will not be taken in by cheap and transparent appeals against foreign domination. But look at what is happening in Iraq right now, where Prime Minister Nuri al-Maliki boasts that America's troop withdrawals are a "a heroic repulsion of the foreign occupiers." Of course Maliki would not be in office but for those occupying forces, who protect his government to this day. But he is a canny politician and knows what will appeal to the Iraqi people.

Ahmadinejad is also a politician with considerable mass appeal. And he is already accusing the United States and Britain of interference. Our strategy should be to make sure that these accusations seem as loony and baseless as possible. Were President Obama to be seen as grandstanding and taking ownership of the protest movement, he would be helping Ahmadinejad's strategy, not America's.

http://www.fareedzakaria.com/articles/articles.html

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Fareed Zakaria was named editor of Newsweek International in October 2000, overseeing all Newsweek's editions abroad. The magazine reaches an audience of 24 million worldwide. He writes a regular column for Newsweek, which also appears in Newsweek International and fortnightly in the Washington Post. He also hosts an international affairs program, Fareed Zakaria GPS, which airs Sundays worldwide on CNN.

Zakaria was the managing editor of Foreign Affairs, the widely-circulated journal of international politics and economics. He is the author of several books, including The Future of Freedom, which was a New York Times bestseller and has been translated into 20 languages. His new book, The Post American World, was published in May 2008 and became an instant best-seller.

Zakaria has won several awards for his columns and cover-essays, in particular for his October 2001 Newsweek cover story, "Why They Hate Us." In 1999, he was named "one of the 21 most important people of the 21st Century" by Esquire magazine. In 2007, he was named one of the 100 leading public intellectuals in the world by Foreign Policy and Prospect magazines. He has received honorary degrees from many universities. He serves on the board of Yale University, The Council on Foreign Relations, The Trilateral Commission, and Shakespeare and Company.

He received a B.A. from Yale and a Ph.D. in political science from Harvard. He lives in New York City with his wife, son and two daughters.

http://www.fareedzakaria.com/about.html

Fareed Zakaria GPS is an hour-long program that takes a comprehensive look at foreign affairs and the policies shaping our world. Every week we bring you an in-depth interview with a world leader, as well as a panel of international analysts who examine the major global developments of the week. As always, Fareed's emphasis is on new ideas and innovative approaches to solving the world's toughest problems.

Fareed Zakaria GPS airs each Sunday, at 1pm and 5pm on CNN.

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