Davos Newbies

Infinite jest

There seems to be a surge in the use of the supine figure eight that represents infinity. Two ads in this week’s Economist make play of it. One, for Tractebel, promotes mathematical illiteracy. 1 + 1 = infinity, it tells us. Yeh, right. A few pages on, Daimler Chrysler would have us believe that they represent infinite possibilities. I don’t think so.

So long Chavez

Venezuela’s president resigns. The Venezuelan army says president Hugo Chavez has resigned after violent anti-government protests in which 11 people died. Chavez’s presidency was a fascinating attempt to construct a modern, populist alternative to Washington consensus policies. It was doomed in the end by economic naivety and the distorting egotism that may be inevitable in a leader elected by such a resounding majority after years in the wilderness.

I hope that someone brings both honesty and competence to Venezuelan government. The two virtues haven’t been present in tandem for decades.

In support of trade

I’ve commented before on what I see as the maturing of the so-called anti-globalisation movement. The best recent example was this week’s Oxfam report on trade liberalisation. The problem isn’t, as the more naive demonstrators have argued, trade itself. It’s the skewed nature of the trading system.

“World trade could be a powerful motor to reduce poverty, and support economic growth, but that potential is being lost,” the Oxfam report says. ”The problem is not that international trade is inherently opposed to the needs and interests of the poor, but that the rules that govern it are rigged in favour of the rich.”

Agricultural subsidies amounting to $1 billion a day are the worst offenders. For the world’s poorest countries in particular, agriculture is one of the few comparative advantages they possess. But distorted politics in Europe especially shut out these poor producers from rich markets. Let’s hope Oxfam makes some headway on its campaign.