Dobbing And The Community

Australia is a nation founded by people who were dobbed in. Perhaps that’s why one of the first rules we learn in life is not to dob in each other: what happens in the playground, stays in the playground.

This lesson, quite obviously, doesn’t come from our teachers or parents. Dobbing is one of the ways that they can know about our infractions of their rules, such as swearing and sneaking away at lunchtime to buy chips at the 7-Eleven. Our anti-dobbing tradition frustrates this, and means that parents and teachers have to police us themselves.

Whatever its historical basis, Australia’s tradition against dobbing works well. Trust is a foundation of community. Without trust, individuals struggle to develop relationships with others.

We need to know that when we confide in another person, we can reasonably expect the confidence won’t be used against us. When we invite another person into our home, we can reasonably expect they won’t bring a baseball bat and start destroying our possessions.

Trust is vital in a market economy as well. When we buy an item we’ve seen in a store window, we trust the seller to give us that same item in a box.

We expect real estate agents to sell us houses that are actually on the market. In Nigeria, where, after decades of corruption and poverty, levels of trust are abysmally low, houses display placards stating this house is not for sale. One popular scam in that country is to sell houses the scammers do not own.

Trust is at the centre of every personal and economic relationship we have and without it, any community in the meaningful sense of the word is impossible.

Encouragement by the government to dob each other in discourages the formation of that trust. The extreme example of a government actively encouraging the breaking of that trust suggests how important it is. In totalitarian socialist and fascist societies, the state broke down civil society to such an extent that people would report even their own family members for any perceived minor infractions. Memoirs recall citizens being reported not out of desire to do the right thing but out of petty and unrelated personal grievances.

This indicates a further useful consequence of the anti-dob tradition: without being able to appeal to a higher power – parents, teachers or the government – we are forced to sort out interpersonal conflicts ourselves. In most cases, we negotiate with each other, and when we do so, we form and strengthen our relationships.

It also fosters Australia’s egalitarian spirit. Individuals negotiate with each other as equals. Running to the government is un-egalitarian.

The government uses its coercive powers to force a solution to a disagreement. The solution may not be efficient or fair, but it will certainly suit the government. Naturally, then, governments are urging us to abandon our anti-dobbing tradition and call a toll-free number every time we see a neighbour doing something wrong.

We are asked to dob in water cheats, litterers and disgruntled taxi drivers.

The tax office is hoping that all those amateur accountants will monitor their friend’s finances to detect tax cheats: he couldn’t possibly afford that on his salary, could he?

Importantly, mislabelled seafood has its own dob-in hotline: 1800 737 147.

Many dobbing-in schemes are beneficial. Crime Stoppers is a typical example. Few people would object to reporting robbery or assault committed in their neighbourhood.

The terrorism hotline, mocked and ridiculed when it was brought in, is theoretically just as helpful.

Reporting crime or terrorism helps, rather than harms, the viability of our communities by making us feel safer and more confident in our person and possessions. As a result, no one complains. The thief knows that stealing is wrong, and the dobber knows that stealing is wrong. Everybody accepts laws against stealing.

But not everybody accepts all government legislation. Speed limits are a good example of this.

The Victorian Government has set speed limits, for example, at 50 or 60 km/h. Hop into a car for even a few minutes, and you will notice that almost everybody exceeds that. Most cars travel five to 10 km/h over the limit, and few tickets are given out to drivers who do.

In fact, drivers who obey the speed limit can often be more dangerous than those who go at the speed of other drivers. Most of us would be outraged if we were dobbed in by another driver for going 5 km/h over the limit.

Another example of a law that we routinely reject is jaywalking. The semi-regular police blitzes against crossing roads diagonally or against the pedestrian crossing signs are treated with derision by even strong law-and-order folk.

Dobbing in a thief is unobjectionable. But dobbing in a water cheat or a slightly faster driver seems un-Australian or anti-social. This perhaps makes sense: these latter laws are not as well accepted by the individuals and the community.

It’s easy to sympathise with a home owner who waters on the wrong day, or splashes water on the roof of their car to give it a quick rinse. If we dob them in, its seems as if they’re being punished for a crime they didn’t really commit.

This is the cause of the furore over Dob in a Water Cheat: the disconnect between laws Victorians willingly accept and laws treated less seriously.

As more activities become illegal across the state – watering the garden of an even-numbered house on a Wednesday; telling a joke about religion; owning a cigar bar – the Government is going to face more of these reactions.

It’s only when governments make laws that we don’t fully believe in that our two desires – the need to build healthy communities and to obey the law – come into opposition.

Dob-in-your-neighbour initiatives undermine our egalitarian tradition and even our sense of Australian community.

If we have a problem in the playground, will we tell the teacher or sort it out ourselves?

Broadband Internet – Getting The Framework Right

The United Nations last month released a report on broadband policies for developing nations. Unfortunately, its recommendations provide little more than advocacy of futile, centralised, national “plans” to increase Internet availability and use.

Similarly, policy makers across the Australia are formulating grand plans to resolve this county’s broadband crisis.

In Communications Departments around the world, “plans” are in fashion.

These plans are trying to address real issues. In Australia, communications policy has comprehensively failed. Infrastructure investments are being tied up for years in regulatory negotiation, and they are abandoned when no compromise is reached. As a result, our broadband penetration is in the bottom half of the OECD rankings.

For developing nations, the lack of adequate communications infrastructure can be a significant obstacle to development.

The United Nations recommends that governments in developing nations institute a series of master plans to introduce and expand their infrastructure. These consist variously of government subsidises and interventions. Growth, and a reduction in poverty, they argue, will naturally follow.

But communications is a highly profitable business to be in. Entrepreneurs sensing a demand for communications networks, be they fibre-optic broadband or mobile, will strive to meet that demand.

What is the market failure that the lavish master plans advocated by the United Nations are supposed to address?

Institutional obstacles hold back many of these developing nations from the growth they desperately need. The popularity of mobile networks in developing nations is because they are typically unregulated, in contrast to the corrupt, state-owned telcos and rigid regulatory impediments which restrict markets in wired telephony.

Kenyan farmers, just like those in the Riverina, can now communicate with their markets to ascertain the level of demand for their produce. The waste of food and man-hours from lengthy trips to supply a demand that didn’t exist is no longer common. If you have food to sell or buy, you simply make some phone calls.

The “digital divide” is only indicative of a general economic divide between rich and poor countries. Communications networks are not the catalyst for economic development. Instead, they are built when a sufficient demand, brought about by economic growth, presents individuals and companies with opportunities to make profit in communications.

However, government policy in many of developing countries either discourages or even forbids entrepreneurial investment in communications and other infrastructure. The solution is institutional and government reform, to allow economic growth, rather than subsidies and plans.

It isn’t surprising that we have the same problem in Australia.

In the aftermath of Telstra’s cancellation of their fibre-optic cable to the node plans, politicians around the country have been spurred into action. Queensland Premier Peter Beattie announced last month a broadband initiative for Brisbane, which, incidentally, offered Queensland entrepreneurs nothing they didn’t already have.

The West Australian government has announced $1 billion worth of funding for a broadband network across their state. In New South Wales, the government has announced plans for free wireless broadband throughout Sydney.

And Federal Communications Minister Helen Coonan, has announced a range of grand initiatives to deliver broadband to regional Australia.

Many of these plans are similar to the existing subsidies being trialled in rural regions around the country. Taxpayer’s money will be transferred to businesses and individuals who would prefer slightly faster speeds than are currently available.

Like the United Nations’ master plans, these Australian broadband plans are a mere bandaid to cover the real issues in economic policy.

The Australian government administers a regulatory framework which actively discourages investment in infrastructure by forcing entrepreneurs to share their investments with their competitors, at a price chosen by the regulator. Telstra’s reluctance to build a new network and have its control immediately handed over to the Australian Competition and Consumer Commission is understandable. This is a failure not of the private sector, but of government.

The obvious solution is to reform access regulations to encourage investment. Competition regulation which does not do so is regulation which holds back economic growth.

Grand government initiatives aren’t needed to encourage telecommunications investment. Entrepreneurs merely need to be granted the freedom to build on terms of their choosing. On this measure, the Australian government, not the private sector, has failed.

No comfort should be taken in the enthusiastic proclamations of plans and initiatives by politicians.

The lesson for rich and poor countries are the same. Get the frameworks right, and the rest will follow.

Thumping the Table: Key Questions for the Labor Party’s ‘Industry Policy’

With Sinclair Davidson

Introduction: Is industry, in particular manufacturing, characterised by market failure that demands government intervention? The recently appointed Shadow Minister for Industry, Innovation Science and Research, Kim Carr has argued it is:

Industry policy is about addressing market failure … Clearly the reliance on market fundamentalism is not working. In the last five years we’ve seen the loss of nearly 40,000 jobs in manufacturing.

The Leader of the Opposition has similarly argued that Australia risks being relegated to the positions of ‘China’s quarry’ and ‘Japan’s beach’. In other words, the majority of Australia’s prosperity may become dependent on as few as two industries, tourism and mining, with a single buyer for each. Such a situation, it is implied, will provide a poor base for Australia’s future economic prosperity. Australia therefore requires a ‘sustainable economy’ buttressed by a diverse range of industries (a ‘broad economic base.’)

The Shadow Minister has also targeted low-end service industries as an example of what ALP industry policy will avoid, arguing that Australian employment cannot be restricted to ‘burger flippers’ and ‘cappuccino makers’. This constitutes an extraordinary slight on those workers, and indeed on all low-skilled workers. This type of job-snobbery is entirely inappropriate for an elected representative. Such a view also ignores the fact that these jobs are typically entry-level positions, as employees go on to higher level, higher skilled and higher paid positions either internally or externally.

Reflecting on the claim that Australia’s extractive industries provide an unsustainable base for economic prosperity, the Opposition Leader and Shadow Minister for Industry have signalled their intention to rejuvenate Australia’s ability to ‘make things’. This call for ‘reindustrialisation’ is a return to leftist ideas of the 1980s.

The term ‘industry policy’ refers to any active assistance given to economic production by government. These forms of assistance can range from the relatively benign — for instance, the legal protection of intellectual property — to the strongly interventionist — for instance, the imposition of protectionist tariffs, subsidies, or direct government control.

Australia has a long and disgraceful history of protectionism; high tariffs, the ‘White Australia Policy’ and highly regulated labour markets were some of the tools employed as part of previous industry policies. The state socialism, which characterised Australia’s political economy for much of its history, drained the nation of much of its natural wealth.

Instead of these ‘old-fashioned’ measures of an industrial policy, the Federal Labor Party proposes a new brand of industry policy. The Shadow Treasurer Wayne Swan says ‘Industry policy means to me getting the basics right — skills, education, innovation, infrastructure and tax’. Senator Carr has indicated a more expansive program, including measures such as utilising government procurement policy to provide a ‘base level of demand’ for Australian products.

Available here.