Thursday, 25 October 2018

Macro Levels Trends – Brazil – Latin America: WEF 2018 : New National Strategy on Industry 4.0



The previously depicted 'Welcome to Britain' sign at UK airports is an obvious metaphor of the 'doors open for business' mantra that the country wishes to convey to the world.

Whilst the European economy, though slowly improving, still struggles with geo-economic fractures between north and south, Britain invariably looks to a resurgent USA for near term 'easy-reach' prospects and the BRICs, MINTS, and CIVETS countries for mid and long-term opportunities.

Over the course of the last 4-5 years the EM nations have been variously affected by a mix of their own slowed export markets to the West, a commodities slump, the shock of real and technical growth contraction, deflation, currency weakness and its problematic 'spread' affect upon short-term over-indebtedness of national and business borrowing raised in US$.

All of this before the spectre of trade wars arrived, and the consequential volatility created by political rhetoric to both appease and ferment 'New Populism'.

China has managed its slowdown well, by looking inwards, slowly reforming sectors, shrinking all forms of credit and continually deflating its stock market (previously in 'bubble-pop' territory). Within today's shrunken world, India has had to try to rebalance its innate dynamic, between slowed foreign earnings in IT outsourcing and basic export goods, whilst and kick-starting internal growth across its newer and older industries. This assisted of course by its efforts to integrate and formalise what has historically been a large black-market economy by enacting currency regulation so as to make that once invisible money materialise in local banks. So providing new and better regulated lending to businesses and consumers. As per Russia, the Putin-Trump talks in Helsinki saw the hot-topic of Syria put to one side to promote a mutuality that could over time range from American importation of cheap CNG, timber-products and agricultural basics; in return the USA assisting Russian expansion of its internal Capital markets.

Yet it is arguably Brazil that has seen the greatest economic 'turnaround' - even if recent data is again lacklustre -  and thus investment-auto-motives returns to its focus, as per the World Economic Forum talks of six months ago.

The last few Brazilian weblogs looked at Infrastructure and Corruption, before entering the World Cup with Pele as national ambassador.

Though the very much needed, the Economic Reforms Brazil have still not been enacted and would not have been until a change in government. Those changes vehemently opposed in various quarters, ranging from the civil service to independent trucking, respectively regards pension pots and loss of fuel subsidies. The country has been seen to successfully extract itself from a previous heavy technical recession; as a new faith in entreprenerialism is boosted by the digital age (the on-line growth of Mercadolibre creating thousands of micro-retailers, just as ebay did in the West). So driving a new era of possibilities for self-made small business people, even if the delivery network can prove often problematic.

Such new possibilities have set a new tone, with people increasingly adopting and adapting to the digital age, and seeking their niche place within it; often both on the street and on-line; so encouraged by the notion of greater commercial possibilities, and listening to those political candidates at Federal and State levels who offer incentives for business; inevitably the situated on the Right.

The political Left has weakened – seemingly significantly so - given the Lavo Jato corruption scandel (amongst others) in which senior government officials were complicit, the impeachment of Dilma Rousseff (herself the poster-child of the yesteryear ideals of Brazilian Socialism), and the jailing of Inacio Lula da Silva.

With 46% of the first-round vote recently, Bolsonara appears comfortably positioned. He follows in a Trumpian manner, loud and periodically immaturely crass about Liberal issues. Such words appear overtly sensationalist to obtain favour with the Catholic and Evangelic masses. But given his admiration for the country's previous military-led strength, and history of structured patriacian society - good per stability / bad per opportunism, Brazil might 'under the radar' see a backward shift. Not against women (who make up increasing numbers the workforce within the tertiary sectors) or the 'less-abled' (given the Paralympics), but regards social assistance to the marginalised ethnic minorities (esp Latino-black and the Indigeneous Tribes) who gained most under the Left, with new voices and social programmes.

Whether Bolsonaro's 'loud-mouthing' is populist 'election talk' or not remains to be seen; but likely he will be be more prosaic in Office. He seems to be deliberately mimicking Trump, the difference being that the international friction Trump created from blundering bravado is countered by both Diplomatic real politik and importantly the US's massive international economic strength. Brazil does not have the same economic sway on the world stage, and as a country that posits itself as seeking only international friends and no enemies. So any such continued political blustering would mold him more as political philistine rather than a 'philosopher king'.

That said, sometimes 'loud words' are required to deter the now near ubiquitous 'passive-aggressive' behaviour that has come to be a near norm in hyper-liberalised societies (Brazil long so); where 'social game-playing' means meaningful truth and trust are swamped by personal aims cloaked via ideological agendas. 

But positively for Bolsonaro he set those words against his own son, who in the public limelight had the temerity to relay a closet threat to the very heart of the Court system.

Thus presently the expected Premier appears a contradictory figure, yet also in the idiom of the yesteryear 'Patron' to ensure stability. To that end Bolsonaro ought to in Office act with 'quiet words and a big-stick', created by a cohesive, visionary and dynamic Cabinet and Government and a Military that subtly leads society by example not by might.

And much can be learned from history.

The history of Brazil, with swings between an internally closed market (ie Import Substitution), an open market (Export and Import Promotion) and the oft reality of a 'merged market' economy (in transition between closed and open) has meant that industrial strategy has followed the bias of the concurrent political climate.

That meant long oscillations between pro-globalist Capitalism (ie inputs of 'profiteering Americanism' vs 'conscientious Europeanism' ) and the anti-globalist Socialist slant (ie 'self-sufficiency') tho' ironically deploying foreign IPR, management and plant.

Thus by examples in automotive we see the major impacts of GM, Ford, VW and FIAT per investment scale in factories, high product volumes and high-quality technical standardisation, strong marketing and enticing dealerships. (In the 1960s the auto-sector was the 'sine qua non' of national modernity and influenced the face of retail enormously). This compared to the home-grown; the likes of domestically created Gurgel with far lesser funding and expertise, ;limited investment scale, low vehicle volumes, low-quality technical resolution of innovative vehicles, and ironically still with MNC VM reliance for essential components.

Thus unsurprisingly given the historical dependence upon FDI and its technical transfers: from basic air-cooled boxer engines to second generation 1980s semi-conductors to 21st century IT software; successive Federal governments have been slow to form an effective proactive industrial strategy beyond agriculture and primary industries. And have instead been reactive and opportunistic to any and all foreign overtures regards 'near to far horizon' technologies. By maintaining a very loose (almost non-policy) remit across its sectors, so as not to discount or negate new possibilities.

Thus it has been left to domestic and in-situ foreign companies within sectors to form their own progressive research, development and implementation efforts, assisted by either state-level public spending (eg Rio's smart city evolution) or within more prosperous periods, their own exploration into B2B and B2C possibilities.

Little appears to have changed in recent years, this informal reactive policy stance seemingly deepened further by the contraction ripples of the recent recession.

Yet Brazil at both Federal and State levels should and must alter its stance across all industrial and commercial sectors. More proactiveness and so progress seen in a few examples, such as the large NE city of Recife in Pernambuco, where its own evolved 'Silicon Valley' has off-set under-scaled and under-invested industries that too soon have become seen to be 'yesteryear' and 'twilight', given contrast to the digital age.

And even though other efforts have been made, such as the rise of the Culture Industry in Sao Paulo, the drive behind the Recife ambition has not bee replicated elsewhere to the same effect.

An Industrial and Services Strategy must be more than mere words upon a copy+ document that spouts the archetypical norms of Business and Trade Planning. From what little has been guaged, it needs far better direction, across everything from not only IT and the 'Knowledge Economy', but Agriculture to Zoology, via Pharmaceuticals, Health Sciences, Advanced Materials, Defence Systems, Aerospace, Truck and Bus, City-Tourism and Eco-Tourism, aswell furthering efforts toward ever-more connected Smart City Infrastructures. 

Brazil requires New Visionaries to create a new highly integrated eco-socio-economic national template; one that takes many steps forward into the future. To reflect upon the origins of Brasilia and the Costa-Neimeyer achievements is an obvious start, but Brasilia was far easier as clean-sheet approach based upon simply architecture and infrastructure.

The new societal 'starchitects' would require a greater span of knowledge and insight, to fit all the pieces of a futuristic, yet practical, socio-techno-economic jigsaw together. 

A jigsaw in which different commercial sectors are able to properly inter-connect and cross-inspire.  

Whilst the very lassaiz-faire attitude toward FDI and new sector development has in the past captured new possibilities, it appears as if done so since the 1950s/60s on an almost ad-hoc basis. Much dependent upon the inclusion of Brazil into the long-term business plans of Multi National Corporations. And whilst Brazil has undoubtedly 'set up its stall' to attract inward investment at different times, it has not seemingly properly guided, led and enticed. FDI outcomes more attuned to the worldwide geographical expansion plans of companies with either surplus cash, their own national state-backing or reactive to the perceived success of a direct competitor in the country.

Brazil needs far better national business planning beyond the provision of basic infrastructure and the new government initiative to use an e-based Business Portal as simplistic assessment mechanism of high potential future businesses. That is if it truly wants to fulfill its Olympic pledge of becoming a true leader amongst the EM nations.

The likely incoming President Bolsonaro would do well to question the industrial planning policies of the recent past (such as the historically binary 'on-off' policy-switching of a semi-conductor sector), and could (arguably should) use the State as an innovation generator, the Military an obvious primary innovation channel, with the possibility of quasi-commercial start-ups, off-shoots and divestments. And so replicating the likes of Britain's QineteQ plc, to bolster the bottom and mid-level areas of the BOVESPA.

And the beginnings of a new era change is now being exemplified by metamorphic grass-roots commercial activity; the prime initiative being the national plane-maker Embraer as it reshapes itself after creation of the 80%-20% Boeing Alliance on mid-size passenger and freight planes and global service. 

Aside from its close involvement in that JV, it will likely seek to expand its military and specialist interests. So marking re-orientataion toward specialist led innovation in airframes and systems for and newly growing domestic and targeted international markets. Thus not simply relying on Boeing, even though it will add enormoulsy to its order book. (The very fact that the UK's MoD appears to view Boeing as an immediate preferred supplier (as opposed to Airbus) in heavy military aerospace, means possible trickle-down project opportunities for Embraer and so enhanced learning for Brazil; as Boeing deploys Embraer Engineering as a lower-cost provider of small project and part-project engineering solutions) .



To return to the WEF Forum....back in mid-March a central pillar of the conference was the issue of developing New Directions for Industrial and Services Strategy.

A prime aspect of that being the spread of digital infrastructure, networks and business and populace usage

The previous WEF Debate on....“New National Strategy on Industry 4.0”:

[As before, comment by investment-auto-motives is seen in the squared parenthesis]

The Attendees:

Chair
Luis Augusto de Ferreira – President of Brazilian Industrial Development Agency
Marcos Jorge de Lima – Minister of Industry, Foreign Trade and Services for Brazil
Poalo Rebello de Castro – President of the Brazilian Development Bank
Ronaldo Camargo – Vice-Pesident Finances d'Estudez d'Hibroto (FINEP - Social Dev Bank)


The Chair opens by asking the Minister to talk about the new strategy.

de Lima -
“Thanks to all, including those in and beyond Brazil, to Germany and the USA.
Throughout 2017 we've been shaping collaborative work so as to define the best structure regards connectivity, industrialisation, modernisation etc. Some of those elements are pivotal to allow companies themselves to be transformed. The ABDI Initiative obviously relates, so we can undertake some real tests for 4.0, and the importance of COMEX for those items not produced in Brazil.

“We also want to respect the RN12 national decree, with modernisation of regulatory norms and the 'de-bureacratising' of government systems to assist companies and aid productivity and so competitiveness. Professor Schwabb has done much in this regard. Thanks also to the government cabinet such as the Science and Technology ministry.

[Mention of 'RN12' believed to be the NR12 decree regards workplace safety, but also highlights the known cross-border and pan-continental importance of the RN12 routeway across Argentina].


The Chair asks the Brazilian Development Bank about the background to the financing and the banks role:

de Castro -
“Like to thank BNDS (Brazilian National Development Bank) and the short and mid-term loans regards innovation and technology. BNDS's has been working for 66 years since 1952 on Brazilian modernisation, through several phases (1.0 – 3.0) 3.0 being the banking system, and Petrobras since 1974 with electrical, hydro and nuclear power, our petro-chemical and steel industries now up to date and of course bus manufacturing.

[Perhaps of all the industrial sectors mentioned, it has been hydro-power and bus manufacturing (pre-empted by cars and vans) that have been the most obvious in demonstrating eco-consciousness and the need to set human capacity to skilled work. Driving that mix of ecological energy and creative human potential – far beyond the professional classes - should be seen as a central policy platform.

Whilst very important, in the Transport arena the nexus of nuclear-electrical energy has been relatively self-contained as seen with aborted EV vehicles projects of the 1970s, deferred to bio-sourced ethanol 'eco-energy' instead. And ironically there is an argument to say that petro-chemicals with expansive influence from plastics production to animal feedstock, has been the complimentary beneficiary of Hydro-sourced eco-energy. The plastics element highly and increasingly influence regards high-value vehicle production that has formed much of the backbone of modern Brazilian industry to date, across Autos to Bus and Truck to Aerospace.

The importance of making material things – ecologically sound products – however appears over-shadowed by the trendy focus on all things digital, ethereal and so 'de-materialised'].

“The 'de-materialisation' debate is the new theme, and spans the small scale to large, with obvious relevance to start-ups and large industry's research and development efforts”

[With Returned paradoxical focus on semi-conductors (the very enabling material of the 'de-materialised')]

“Semi-conductors may be restarted in Bel Horizonte if and when given the final green light. Innovation has been with us for years, but the new Strategic plan goes out to 2035 with a challenging vision, and so a BNDS priority to enhance investment with the capital of others”.

[As the digital era continues into the IoT, the importance of advanced electrical systems and componentry will grow exponentially; as seen previously in personal electronics, now increasingly seen in the morphing of the private and public realms via 'The Cloud' regards part and whole infrastructure developments. Thus the previous focus of 'semi-conductors and sensors' becomes ever more important.

But – as stated previously – Brazil's development progress in both spheres has been problematic. The semi-conductor industrial strategy stalled for over a decade, and without proper attention the same could happen with sensor technology development, manufacture and fitment. With the advent of intelligent infrastructure and increasingly autonomous vehicles, Brazil must maintain full commitment to this field via its publicly assisted and private enterprises. Otherwise it will again loose-out to the strong capabilities of SE Asia in cost and US/Europe in functionality and quality].

“Innovation is again being highlighted to 2035, whilst we continue in the 'Knowledge Era', where information is a prime factor, so leading to the IoT, and Big Data in 'The Cloud'. It relies upon the proliferation of sensors; spanning personal bio-tech to agriculture, or the facial recognition scanning for the identification of people. So we must investigate as to how such sensors can increase productivity and safety with the BR80bn in state and federal security matters.

“So the bank is deeply involved in innovation, so establishing priorities within the budget as done. But the bank's incentives go through different lines not just one. As regards modernisation via robots, we could evolve from BR1bn in 2018 to Br1.5-2bn next year, so 100% growth, leaving us BR5bn, but the bank does not have a limit. If Brazil leaps in that direction (PESTEL dependent) the bank will be ready to face new budget challenges.

[Whilst eBNDS obviously highlights financial provision, the vital matter is that of spending such funds strategically well.

Brazil must undertake an exhaustive analysis of the intelligent products and intelligent infrastructure sphere, so as to ensure it backs the right technical solutions and players at all levels, across indigenous seed-funding and incubator-development to foreign transplant manufacturing roll-out and scale-up, and through life-cycles, so as to obtain as long a technical and enterprise lifespan as possible. Thus ensuring not only return on initial investment, but a secure commercialised income stream over many decades, so fulfilling the reform measures of BNDS itself by the government].

The Chair asks the the V-P of FINEP about what's expected from his agency

Carmago -
“Thanks to all. FINEP and BNDS work closely, and not just on future innovation, but also that already underway with the first semi-conductor company.

[First efforts date back to the early 2000s when seeking Japanese FDI in the sector, to replace and update previous 1980s derived technology factories. The closure of those plants in the late 1990s and the delayed introduction of newer semi-conductor capabilities effectively left a technology capability chasm for the country.

Much of today's policy mentality stems from the strategy conference 'SEMI' per a pan-LatAm template regards production and design of this significant sector, since before the last meeting of 2015. But Brazil is well aware of its deficiencies in this arena compared to both AM and other EM countries.

To counter this disadvantage, the lure of tax deductions and abolitions is an enticement by the likes of Sao Poalo and Rio de Janeiro, but to date the start-up project costs of about BR4bn have undermined, given that it is two-thirds of the annual import costs of BR6bn of electrical components from abroad.

Furthermore, sector experts highlight the need to properly build a support structure for the sector across eduction and professional development, so as to properly fuel such a newly rejuvenated (effectively start-up) sector, though research centres are already in situ.

Presently 4 companies exists from FDI, private local funding (partnered with IBM) and state sources. The FDI being South Korea's HT Micron and USA's Smart Modular Technologies, national private being Unitec and from government Ceitec dedicated thus far to sensors].

“FINEP is 50 years old - so been throughout the Tech Age – and wears two shoes:
1. Non-Refundable Financing: via The National Fund for Scientific Dev. on 26 projects.
2. Refundable Financing:
[At this point the language translation is lost for ten minutes before returning during de Castro]

de Castro -
“Our Industry 4.0 portal is already live, a tool for the test of 4.0 Industry, tests in virtual and physical environments, assessed on their level of maturity, and the need of each company. This is a new era, with the opportunity to foster with tax exemptions, financing with attractive interest rates, Connection Start-Up that does what it says between small and large companies.

“This is about Brazil leaving behind a crisis and creating anew, with real expectations of GDP growth, from -3.5% 20 months ago to this years +3.0% growth.


The Chair asks the Brazilian Industrial Development Agency to expand upon those comments

Ferreira -
“We've been talking about 4.0 for a long time, and these people on the panel are responsible for the execution. The good times are back, with new recovery. This allows us to invest with more precision directed at Tech and IoT sectors. There is talk of 'Re-Industrialisation' but in essence it is just restructuring of Brazilian industries, adjusting to new global trends, value chains, energy efficiency. Prof Scwabb highlighting the importance of the latter.

“We have an initiative called Productive Brazil, that includes alliances with over 3000 companies around the world on the issue of energy efficiency. Costs could be reduced by 20-30%.
Also the matter of labour, this now based upon intelligently used data, but it is the humans behind the machines which are key, so we must prepare public managers as properly up-skilled professionals for 4.0.

“Another aspect is that Brazil is on a path of effective initiatives, with self-diagnosis of our industries with test-beds and funding lines, and the private sector must be convinced of the recovery. This government has been doing reforms so as to create a leaner country with better skilled people. Also, who will benefit from the machines? Will it be an elite or all?

[It appears here that in the age of supposed de-bureaucratisation that the government – via its web-based 'test-bed' system – will be the effective arbiter of the winners and losers within the commercial world. The web-based submission and analysis criteria and outcome that affects the destinies of many enterprises.

Needless to say, this very system – the funnel - may be open to manipulation, with subtle assistance to those firms it wishes to see prosper into tomorrow and subtle denial of those it does not. Furthermore, such a system may be far too simplistic, overly complex, or possibly biased, so unable to properly assess the undoubted great variability and respective SWOT of the many submission companies].

“Initially this will be about large companies, but will trickle-down to SME's such as farmers needing information, quality data and use to retailers. This already seen elsewhere in the world. So its about education, technology, and a new 4.0 mindset.

“This will change society. Already 5% of industries have responded, and within 20 years we want 15% to have evolved. We must be bold and talk about jobs, and banish the idea of lost employment. Over the next 20 years we will create over 200m new jobs in some positions we don't even know right now

[Such statements demonstrate the illogical rhetoric often stated behind the IoT transformation. It is plainly ridiculous to state “over 200m new jobs”, then to highlight the ignorance of what many of those new jobs might be. Managing the transition to avoid mass unemployment and resentment is vital if Brazil and LatAm is not to experience popularised anti-sentiment, C21 'Tolpuddle Martyrs'. Undoubtedly Brazil will follow the lead of AM countries in its subtle social-engineering, but with greater proportional ethnic diversity than many AM nations (whose 'diverse' populace is actually relatively small and very urban-centric), Brazil faces a greater challenge to truly include those who feel themselves (intentionally) neglected or under-assisted].

“The question is how to prepare new generations? What will these new jobs be? Our policy is based on diagnosis, financing of BR10bn and the need for scale. We were given the freedom in the Ministry to work and achieve much in a short period.

[A properly planned and executed industrial employment policy is needed; from proper and meaningful implementation of male and female military conscription (to serve and learn specific capabilities) through to the idea of a new approach regards through-life modular-based university learning (e-based and campus-located), through to improved overlap between academia and commerce in dedicated work placements aswell as conventional high level research and development, This to vitally reach many more young people and so help direct their own futures toward growing industrial spheres.

And the question remains as to exactly how much has realistically been achieved by the Ministries, beyond the usual big schema of adapted conceptional powerpoint presentations, originated by the likes of PWC, KPMG etc.

Is the policy setting just 'Brazilian branded' work of the management consultancies, or has each sub-element been explored relative to true national and regional Developmental Planning needs?].


The Chair asks the audience :

One audience member from AT Media asks:
“Going back to the idea of company absorption of 4.0, it is said that in 20 years 15% is the target, but this seems low compared to elsewhere?”

Ferreira -
“In Germany for instance, they invest about Euro20bn per year in 4.0 industries, but this is not part of the Brazilian reality.

At Media again -
“Connectivity is key, this structure permeated by connectivity. The new policy was set-up in the last one and a half years, but what can be done to ensure this stays with any new government in office?

Ferreira -
“I come from Start-Ups, and these policies are state based, not federal. Any new government will be able to use the 'diagnosis data' being created right now, with Ministry technicians that have been there throughout and hopefully will remain.

Business News America asks...
“Thus far the strategy has taken one and a half years with a delay. Why the delay? And what exactly is the strategy about? We have financing via BNDS and the 'test-beds', and tax exemption for robots, IoT, the plan for digitisation....is that it? And how do we tie together all the policies the government has?

[At last somebody 'cuts to the quick' about the policy rhetoric heard thus far, and the lack of true meaningful clarity].

Ferreira -
“Industrial Policy started to be debated in 2003, these policies undergo change, such as that in the Chemical Sector with its research and research takes several decades. So for those sectors we can debate policy but it takes longer. In the Auto industry we had ten year cycles in Brazil, now 5 years, whilst Germany has 3 years. Cars become a software and service platform.

[This is a poor answer. More perhaps to do with the need to feed Brazilian bureaucracy and the comfortable positions of the country's elite, than convincing enquiry, information and recommendations.

How is it that Germany or Japan can set out an evolutional yet well directed government policy via close talks with industry that reach outwards for respectively 50 years and 100 years? And that even a 'de-industrialised' UK can create a new Industrial Strategy effectively from scratch in 2 years: focused on specific sectors with new development opportunities and its 'Catapult' initiatives to propel high-potential activities from research into scaled production?

As per the Auto sector, the lifespan of a specific platform is not the basis for a sector's planning of industrial policy; that may have been the case in the 1950s and 1960s with VW and even regards FIAT in the 1970s, but since the 1980s Brazilian made vehicles have been closely associated to or directly based upon global platform products, and so better better able to understand Brazil's role in any one manufacturers' global production plans and its need to be a convincing national market and internationally competitive, as seen with production of Palio and Fox models.

The fact is that it is Brazil's deficiency of a robust IT and Electronics industrial base (far beyond sensors) that directly supplies modern modular vehicle platforms (hardpoints-hardware-software) that is the country's biggest global auto-sector disadvantage presently, even if the Real is presently strong and stable to encourage reduced-cost bought-in e-components from SE Asia.

Such a simplistic answer makes Brazil's leadership appear under-informed, haphazard, ad hoc or indeed driven by other agendas].

“The delay was because the government was not acting as speedily as the private companies it was dealing with. We could not rush so as to have a sound policy, but could not delay to loose the momentum. The delay connected to issues regards the urgency of innovation and the 'analogue' feature of the public realm.

[This a more candid answer].

“We did much in a year and a half, but we had a basis to work from, and experts about 4.0 and Brazilian competitiveness.

“The tax exemption for (internet) 'bots' is only one pillar amongst others, but the use of 'bots' has a real impact in an e-world.

“To talk about 4.0 in Brazil is different to that of say South Korea or Isreal. Most of our country is still working with commodities, not information technology, hence why we need a self-diagnosis.

“We are inviting each industry to our website for that self-diagnosis, from maybe 1.0 or 2.0 types of companies [low down the value chain in Primary and Secondary sectors]. So it is a journey. We are taking advantage of digitalisation to go from 1.0 to 2.0 and 3.0 to 4.0. And in 15-20 years we want a completely different type of industry.

[This appears to have an element of back-fitting technology to yesteryear processes.

With the possibility that Big Data companies of today get to understand and measure every process and value-additive dimension of Primary and Secondary industries. In short able to 'see inside' what have been typically low transparency sectors to date, which in today's world often rest under the control of large state or semi-state run organisations].

And the idea of an industry 'self-diagnosing' per the criteria and remoteness of a government web-site rather than specifically set-up sector specific senior-level working groups – who should know about strategy and 'pure' and 'applied' strategic outcomes appears somewhat myopic.

The government's Industry 4.0 Strategy appears overtly focused upon the aspect of digitalisation, perhaps at the expense of any one sector's bigger picture and combined the bigger picture for Brazil].

“As regards the challenges, I've learned to respect the structure of the public realm, and in the Ministries of Industry and Foreign Trade we have amazing technicians. We have people who think like private companies, but we have boundaries around the structure and the problems of communication. Having all the different bodies here is a miracle.

[This highlights the disfunctionality of Brazil's public realm, the endemic silo-effect that existed for so long in the 1980s/1990s should have been demolished many years ago, but plainly has not. It should not take a WEF Forum to create such a rare meeting; this bureaucratic problem an obvious obstacle to Brazilian development, and the danger of a fragmented government without truly aligned thinking and action leading what is likely as less than convinced and infact quite 'digitally dubious' private sector Brazilian companies; that have long been in the hands of effective 'Nacionale Patron' families and boards].

Another audience member from a Soa Poalo newspaper -
“What is the strategy about? What the difference that BNDS is already doing/ What will happen differently in practical terms? Also grants for professors and 20 start-ups, is that correct? And I don't understand the financing numbers exactly?

[It is concerning that the outcome of the handed-out presentation and press conference literature has not been fully informative per the basis of the strategy itself and the financing of such a seemingly transformative endeavour].

Ferreira continues -

“4.0 sees industrial disruption, so involves traditional research centres, start-ups and scale-ups, with BR50m for Start-Ups to be connected to Industry (eg Catapillar, Embraer , 3M etc), with also FINEP adding more money for start-ups.

De Castro -
“We must consider what is effectively the fostering of new-tech. The maturity dates for loans is no longer 5 or 10 years but 20 years, so able to decrease the 'spread' (ie overall annual interest payable) of the loan. So smaller instalments to assist. More important than that, is that our greatest concern is with the anonymous companies; whereby 11m companies and 4-5m micro-companies.

“And that's why we are restructuring our bank to eBNDS, a bank within a bank, a FinTech Hub that collects informations between customers and providers to facilitate transactional exchanges. As long as these micro-entrepreneurs have access to credit, regardless of 4.0. It has BR200m and is an efficient programme.

“We foster regional start-ups and regional development, that place start-ups in incubators with amazing profitability that has future scalability. EBNDS is an accessible platform for such small entrepreneurs. We are over 60% in participation with companies.

“Finally to highlight Planning. Its the Action Plan for IoT. This is reliant on a well organised macro-economy that reforms tax and red-tape etc.

“One interesting arena being that of Agribusiness, which has embraced digitalisation”.

[The shift of the role as a more private-enterprise led bank and its shift in B2B persona of was explained some months ago by investment-auto-motives, as it alters it innate remit and financial products offering to B2B and B2C.

The importance of eBNDS cannot be over stated since it wants to attract the business of many self-starting small-time entrepreneurs in B2B and B2C fields as e-retailing at trade and consumer levels become an increasing trend.

Hence in reality eBNDS is perhaps more aimed at the potential new millions of online retailers who wish to sell via new internet platforms such as the upcoming Mercadolibre and increasingly visible local presence of Amazon Inc. eBNDS seeks to then replicate and substitute the likes of PayPal, whilst no doubt using its high volume small unit margins to fund higher risk-high reward tech start-ups in the Silicone Valley style.


Summary ;

To begin with Brazilian business culture, as seen with the Panels' personal interactions, there is much inter-personal 'thanking', that stems from the niceities of the yesteryear Portugese nobility and has been retained as a business custom ever since. This is obviously far better than being business-brash (and everything is of course relative) but in such short sessions as this discussion forum, or in time-pressured business meetings, the custom (beyond basic “thankyou”) can distract and slow the pace and direction of discussion. The platitudes may lead to to less than sharp attitudes.

The discussion itself was overtly general; and took far too long to raise the prime issues surrounding the funding of 'Industry 4.0' via eBNDS and FINEP, with too little detail. Similarly discussion about the lessons that should have been learned from the past, such as the SEMI forums, so the pitfalls and enablers.

This was a great pity.

Compare what was said to even the [paranthesised] quick observations of investment-auto-motives herein, and the requirement for the following was very necessary:

- broader historical perspective
- far better clarity and details
- expansion of prime and critical issues
- exemplification
- vision

Instead of a structured debate that could have encompassed much in a short timespan, it became little more than what appeared a rhetorical government rebranding exercise of global Management Consultant's zeitgeist-led recommendations for development of any modern economy, let alone 'mid-tier' as Brazil is, and let alone specific to its domestic needs and global position.

A re-look at the panelists professional positions illustrates their standing at the 'top of the tree':

Luis Augusto de Ferreira – President of Brazilian Industrial Development Agency
Marcos Jorge de Lima – Minister of Industry, Foreign Trade and Services for Brazil
Poalo Rebello de Castro – President of the Brazilian Development Bank
Ronaldo Camargo – Vice-Pesident Finances d'Estudez d'Hibroto (FINEP - Social Dev Bank)

Thus we had the 'head honchos' of domestic development, foreign development and domestic funding; the players to move the country forward. Yet, to requote the journalists during the questions period “what does Industry 4.0 mean practically?”.

Various broad issues touched upon, but little actually said about how the basic funding process would will be satisfactorily directed into the right channels, how it would be 'business-managed' from the banking persepctive and how monitored for progress.

Instead simply, BR80bn under one general scheme of 'safety and security' (without true details), BR2bn under a 'robotics' (without details) scheme and BR50m for start-ups (without details), etc.
And the idea that 200m jobs would spring-up as the result of Brazil's digitisation (without details).

No discussion about broad national 'digi-templates' from foreign learning from USA, Korea, Europe, China etc. And vitally there was no proper discussion about the lessons learned from the past per Brazil's poorly performing semi-conductor sector, whose failings since the early 1990s means Brazil's past and current massive reliance on imported electronics from Asia.

Those lessons of failed technology transfer now directly relate to the similar ambitions regards the creation of an IT Sensor design and manufacturing national base; a fundamental aspect of the value-creation chain within the new world of the hyper-connected in Internet of Things via 'The Cloud'. (This ranging from the macro of intelligent infrastructure, autonomoue vehicles etc, to the micro-aspect of intelligent domestic systems).

The irony being the periodic use of the term a 'de-materialised economy', would suggest Brazil might in the future exist upon an 'hour-glass' economy. One based upon the continued strength of commodities at the Primary (bottom level) for export, static or declined Secondary industries (lower-mid), static or declined Tertiary industries (upper-mid) and a massively ballooned Knowledge-economy at the top.

Any such notion is delusional, since Brazil has built itself from bottom-up, and needs to first expand the sophistication, breadth and reach of its Secondary processing sectors for improved energy efficiency and quality materials output, and to likewise expand its tertiary sectors to better compete in the Services realm from 'gallery-malls' in retail to Specialist B2B Consulting across various sectors.

It is the mid-level areas that are more immediately relevant and so promising; but they need nurturing. 

The ambition for creation of an IT Sensors' homeland by leveraging its 'Campinas Valley' (near Sao Paulo) capabilities is of course a sound idea in principle, and is the antithesis of the 'de-materialised'. But given Brazil's reliance on so many foreign companies in that area, it must also recognise the upsides and downsides of deployed foreign-owned IPR, even when adapted. 

(NB The auto sector provides useful history lessons in this regards, ie FNM, Engesa, Dardo etc).

A Sensors based sub-economy then, is obviously inevitably positioned between the strong research and development capabilities of Western firms and the enormous scale capabilities of Chinese and SE Asian firms (typically sub-contractors such as Foxconn). Brazil cannot afford to be stuck in such a position again after recognition of this reality with the previous semi-conductor debacle. Yet without insightful direction, looks to repeat that story once again.
Hence the need for a well managed and exploited full-value-chain Brazilian economy. One that does not by default scupper the very important contributions of the Secondary and Tertiary levels. It is precisely here that the skills-base and creative potential of the masses needs to be deployed through far better – industry connected - education and training for all, not just the summer secondments for the sons and daughters of the country's elite.
Herein Ferreira's words underplayed the necessary reality; to repeat...
“We've been talking about 4.0 for a long time, and these people on the panel are responsible for the execution. The good times are back, with new recovery. This allows us to invest with more precision directed at Tech and IoT sectors. There is talk of 'Re-Industrialisation' but in essence it is just restructuring of Brazilian industries, adjusting to new global trends, value chains, energy efficiency. Prof Scwabb highlighting the importance of the latter”.

It demotes the very important aspect of 'Re-Industrialisation' and suggests it as less economically important as the brighter newer digital-based world; but it is not. The two are wholly complementary and given Brazil's past failures to adapt to “new global trends, value-chains etc”, the issue is far more serious than being seemingly contemplated.

To this end the new Bolsonaro government should properly deconstruct the Brazilian economy to better appreciate the potential of conventional sectors and the important impact they can have in raising and maintaining the living standards of the less educated and less fortunate; aswell as the newly destabilised middle-classes. 

Apprentices and ex civil servants alike need new forms of easily comprehended and interesting employment in the real economy, not the glamorous facade of an often hollow 'gig-economy'.

To provide some positiveness regards the digi-realm, the Brazilian government is trying to use IT to streamline administration and so reduce absorbed costs for the improved planning of 'Industry 4.0'.

However, as stated its web-based system that effectively validates new funding streams may be an overly simplistic and heavy-handed approach to Business and Trade Planning. It appears hardly lassaiz-faire and so an effective 'Big Brother' arbiter of the countries SME winners and losers.
It is a web-based submission, with less than transparent analysis criteria, that affects the future shape of swathes of future commerce, and so, the destinies of many companies. Something of which traditional MD's will be very nervous.

Moreover, there may be much latitude for 'slippery players' to establish the apparent 'companies of tomorrow '(that tick all the digi-based and IoT-based boxes) but whose business aim is really simply extracting as much government funding as possible. Especially in the 'Start-up' sphere, where all too often people justify their reasons for failure as their learning curve at government's or other investors' expense.

(NB To quote the present much loved mantra of Silicon Valley "yes there are 99 ways to fail", but whilst learning what does not work - in an oft blur between Applied and Pure research - ' the real-world cost of capital is enormous to the 'boot-strappers' and 'seed-funders'. All too often the start-up's image is that of a geeky 'garage laboratory' to make it seem homely and wholesome, whilst in reality founders enjoy an upscale lifestyle and obviously charge their costly networking and client entertainment activities, that promotes their brand and business model, to the company budget and so their backers' funding).
And so the question remains as to exactly how much has realistically been achieved by the Brazilian Ministries, beyond the usual big schema of adapted conceptional powerpoint presentations, originated by the likes of PWC, KPMG etc.
Is the current policy setting just 'Brazilian branded' work of the management consultancies, or has each sub-element been explored relative to true national and regional Developmental Planning needs.

So far it appears the former.

Brazil has its own brand of 'Order and Progress'; so must take the best of 'utopian' Industry 4.0 management speak and integrate it into the vital practicalities of real Brazilian industry and commerce.

And done so in a meaningfully costed way, that can  now make much of the depreciated Brazilian Real.

That large currency shift should now be used to shift the economic base and capabilities of the country, and strengthen and broaden the export-led products and services economy.

One that learns from past mistakes and triumphs, and is able to create a jigsaw-like commercial eco-system that can be replicated elsewhere in lower-standing EM countries for intelligent development, and may even be adopted by AM countries as part of their own effort for transformation.  



Sunday, 23 September 2018

Macro-Level Trends – Culture and Capital – Sociological Disruption Negates Investment



Investors of most types, from pension funds to even (the safety off-set strategy of) hedge funds, seek basic socio-economic stability.

It is the pre-requisite to monetary injection into commerce and business, and the obvious reason why time after time massive amounts of domestic and foreign capital has been seen to exit a promising turned tumultuous Emerging Markets country.

That story replayed over and over again, from the boom and busts of late 19th century Brazil, and the initial signs of revolutionary Communism, to reasons given for monetary flight from Argentina and latterly Turkey over the last few years. All the while the failed New Socialism efforts of Venezuela, an effective 'buffer-stop' to the broader spread of overt idealism in the region.

South and Central America, Coastal Africa, the CIS countries and South East Asia all - on an individual country by country basis - temptingly offer new opportunities for informed heavyweight investors. Each seeking to re-enact their own version of Jim Rogers' 'Investment Biker' escapades and rewards, though often more so from the comfort of a City or St James's desk and their imaginings on their BMW commuter bike.

[NB Given his long-time Asian and Russian investment focus, Rogers decries Trump's tariff regime against China, and asks China to reform far quicker. Yet it seems that China's leaders will continue to take their time and will do so on sector by sector basis - as seen with the opening of the auto-sector. Yet after Chinese success in Africa and Latin America through creation of new infrastructure and majority purchase of energy companies, the CIS, Middle East and North Korea will continue to be the expansion strategy; so negating the impact of American tariffs, by creating its own new markets and investment goals

This is why the West must attend to fixing itself socially and socio-economically; and not so through forced liberalism and obviously socio-directed winners and losers].


To the West....

Beyond the usual rhetoric about aged demographics and over-indebtedness, little true in-depth societal attention is directed at the West. Why look inward when there is so much opportunity elsewhere, and why bother trying to fix what in actuality is too often a re-divided and part-broken society?

Let private equity cherry-pick the best yesteryear brand names for re-invention in export markets, and let government and institutions provide for high cost low return infrastructure projects like rail and social housing.

But of course, a revitalized economy requires far more than such simplistic answers.

Over the last decade savvy western investors have suckled from Central Banks' teet of 'QE' (itself a perverse anomaly to the edicts of good investment theory). Only recently has near full capacity utilisation been filled in plant and people,  without the drag of substantive new investment in new equipment and escalating labour costs , so creating ideal conditions for boosted EPS and so incentive for corporate share buybacks.

(NB one of the few investment hungry sectors being Autos, with the switch to Hybrids, PHEVs and EVs requiring measured yet heavy costs per research/ development , plant transformations, high value component sourcing, and dealer-service centre updates).

Yet western societies are still obviously socially fragile,  as compared to ideal macro-fundamentals (as derived from PESTEL analysis) of a unified functioning stable society, ideally 'young' and with increasingly positive socio-economic feed-back loop.

This is central to investment confidence, hence the ideal of the perfect EM nation – best exemplified by the rapid rise of China since the mid 1990s, wherein an essentially unified population was well directed by Beijing in a prescriptive manner to direct and leverage human resources through good orchestration of the country's 4-tier industrial capabilities: across 'primary', 'secondary', 'tertiary' and 'information' based activities.

That golden period centred around China appears very unlikely to repeat elsewhere ever again, with even its slow-down still well managed in the face of U.S. tariff wars.

Economics books galore have been written about their 'economic miracle', and digested for learning by many, from students to western governments; much as we saw the myriad of management books centred on Japan in the 1970s and 1980s, to assist western global competitiveness.

But what has perhaps been (possibly deliberately) over-looked was the topic of national identity, unity and so social cohesiveness.

China both yesteryear and today is in practice the very opposite of the 'mosaic' West, consisting of multi-various backgrounds from previous colonial days and elsewhere, and upon which much of the previous economic uplift was dependent.

Here in the UK, that being everything from 1950s Afro-Caribbean nurses and bus-conductors, 1960s Indians, Italians, Turks and Greeks as much from waiters to shop-keepers to property entrepreneurs, 1970s exiled African-Indians into restaurants, pharmacy and doctors – thereafter an economic re-rise, followed by in the late 1990s and throughout the 2000s an influx of Eastern Europeans in services and agriculture.

Like Germany, The Netherlands, France and Scandinavia, the UK has (arguably more than the American idiom) welcomed others; this as a two-way economic deal, to necessarily suppress the national wage-base to maintain state-owned enterprise costs (the public realm) and to support business competitiveness and to inject new dynamism into the economy (in the private realm)

Each wave of immigration has been both economic boost and burden upon the state, the former ultimately out-stripping the latter, as people's become settled, integrated and their second-generation children become better educated and theoretically move-up the social ladder away from the instability of wages and into the supposed stability of salaried positions reflective of their discipline(s), capabilities and sector experience.

Likewise, the roles of women in the workforce, as importantly commerce shifted away from the last gasps of the 'primary' and 'secondary' industries in the 1980s and shifted toward 'tertiary', from the boom in retail (shopping malls and the high street), call centres, the expansion of the NHS under the then new Trusts model, and of course female entrepreneurship, whereby the greater sociability of women as typically 'people orientated' rather than 'task orientation' of men, saw 'female networking' become the buzz-word of the 2000s.

This all assisted by the expansion of liberal education, rise of gender-related and socio-related educational topics, rise of the liberal arts such as publicly funded arts, the good work of inclusiveness art and stage groups (that demonstrate that all people are just 'people'), the art and dance therapies that assist greater self-confidence in those with 'downes' etc, and of course the inevitable certification models that formalised, and bureaucratised an ever sprawling liberal politico-commercial agenda.

And though it is unpopular to mention, eventually with the increased influence of immigration and liberalism came not only socio-economic upsides, but down-sides aswell.

From the immigration standpoint......

Given typically different and often far tougher backgrounds, immigrants retained (very necessarily at first) a mono-cultural, almost tribalistic, mindset, which defended themselves against inevitable oppression and ridicule when entering their new land by many members of its indigenous populace.

The theory was that would change over the years to come as the mixed backgrounds normalised and 'integration' took place. This often so, with broken-down barriers what used to be called 'mixed marriages' in the 1960s/70s, most often prescribed to white and black couplings, both then from the lowest echelons of society. This altered over the years, to the point now where even royalty marry into others of different ethnic origin.

But things were different even back then, and different groups mixed and inter-married at different rates, from encouraged to totally shunned; the latter typically when the families in the group/community had either experienced the negative effects of integration or had build up wealth they sought to keep in the community.

If that were so then simply understandable, but there is another story, whereby 'the group' is used not simply to defend economic power, but to attack others to grow it.

Thus under the surface of old-country national pride – itself with historical context of the old-country 's experiences – that inter-group cohesion used to become deliberately oppressive to others.

Especially so when seeking to take-over specific urban areas, and especially so when money was/is to be made from property. The most marginalised, typically older and widowed, targeted as easy prey into forced  separation from their homes. So an 'agenda animosity' hidden behind  'happy-faced hypocrisy'

Or we see, a cross cultural dynamic of another kind.

This ironically when one ethnic group seeks to take advantage of another 'frenemy' group.

[NB this a horribly disingenuous term, that Hollywood should be ashamed of, seeking to normalize endemic hypocrisy; ie one person/group to take advantage of another to greater gain, and then seek to re-befriend the marginalised group on the basis of a far smaller social or economic return – truly repugnant behaviour].

This seen by the now often long-forgotten stories of the newly arrived 'Windrush' Afro-Carribeans suffering in slum-like conditions in Notting Hill and West London, or in Brixton, South London., after the previous 'White Flight' there. Unscrupulous landlords pushing out the older generation (harassment), buying properties and demanding high rents from the 'coloureds','blacks', 'negroes' and 'schwarzers'; whilst pretending to be their friends since they were the only ones who would rent to them.

The insightful film 'An Education' provides a glimpse of insights into how one apparent 'ethnic minority' takes advantage of another supposedly similarly socio-marginalised group, the pretense of a helping hand and friendship, but only seeking inflated monetary returns on their rental properties.

These then the basis to tribalistic mindsets that are retained one generation after another, and sit beneath the surface of everyday consciousness, especially after any experience of being deliberately taken advantage on the pretext of socio-separation whether because of colour, religion, or whatever.

From the gender perspective...

Likewise, there will be a societal stress with a broader socio-economic fundamental shift, and especially so when that shifted power-base sees a fundamental shift in the general social harmony and change in the ideal 'economic reciprocation model' (ie the earner assisting the non-earner).

Indisputably, for good and bad, Western society has shifted enormously over the last three decades with the rise of not only the service sector - whereby administrative process and intelligence replaced much of the previous raw physical-power (now only really seen on construction sites, or specific delivery trucks like pub barrel wagons), or the long hours of taxi drivers - but the massive rise of the 'liberal economy' that was so endemically female orientated.

Thus maleseconomiesinarguably been comparatively diminished, since not only did the expanding service sector and liberal economies primarily assist women, even the previous male-dominated areas (such as construction, security, pharmaceutical and civil engineering ) also saw an influx of new females with the idiom of rebalancing what appeared male dominated areas.

Thus the majority of economic expansion for two decades has been pro-female and largely in 'cushier' jobs undertaken from an office or 'workshop' meeting place; though of course areas such as postal or warehousing demanded much of those who took such jobs.

And whilst this apparent utopian existence does exist for many, more than men,  obviously there are positions of responsibility and power held by women - from Prime Minister to Directorships in public and private companies  posts - that require highly capable individuals, and whose own lives have been dedicated to purposeften in male dominated environments.

(NB the best 'boss's the author ever had was female...an executive at Land Rover's Business and Product Strategy Dept. in the mid to late 1990s. Someone who demonstrated the best of female and male characteristics, gave space to capable subordinates an led by quiet example. Who as a WI member served others before herself, such as her role in the pensions committee).

So we have seen the inevitable rise of equalising female economic power....except that many men who were just responsible 'worker-bees' and 'family-men' have experienced a very different outcome. 

Yet, even well before the 2008 Financial Crisis, it became apparent that this new socio-economic paradigm model was adding enormous stress-fractures to society at large, especially with regards to the social unit that is the family.

And arguably, (as the MRA and MGTOW groups believe), specifically to the middle-aged white men – who had never had any of that supposed 'white privilege' – who themselves had been moulded by the idiom of self-sacrifice to support their nuclear family. Instead, redundant skills attuned to old, dwindling industries, or when in management roles, seen as too costly compared to the available talent pool of the younger and increasingly female.

Now this appears just 'how the socio-economic cookie crumbles', couples now made-up of two working adults, the format continued when children came along.

Except that there was a clash between the social norms and expectations between the sexes, that had existed for millenia based on the patriarchal society, and the economic new norms that had arisen.

And this generated shifted and mixed understandings and expectations; a changed landscape creating difficult to navigate terrain for both sexes, dependent on personal values. Spanning from who pays for a first date (the man or 'going Dutch') to domestic chores in coupled relationships, to at work, the often very different mindsets of women and men regards getting the work done for a company to stay afloat and prosper.  

There are now various youtube commentators who cite academic and informal studies which illustrates that the sociological data regards marriages, divorces, single (ie single-motherhood typically) illustrate that the old family inter-relationship of societal 'reciprocity' (inevitably of that between man and wife) had broken-down; perhaps beyond repair.

Women were not willing to directly replace the previous role of the husband as the sole bread-winner as and when circumstances dictated, such as the man's loss of his work. With her own money made from work, and any divorce and sale of the family home providing for a nice 'restart financial package', why bother carrying the baggage that was a useless partner or husband?

Men had never thought in such a way, until now, seeing and experiencing the 'rough end of the stick'.

MRAs and MGTOWs typically believe that the empowerment of women's rights was theoretically a good thing, but the social outcome of nuclear family fragmentation, division of the sexes and inevitable social bitterness was highly socially destructive. They believe – and it is a growing trend amongst old and even younger males – that the consequences of 3rd and media hyper-fuelled 4th wave feminism, led to the damaging 'brain-washing' of two generations of increasingly self-centric actions of 'overly-entitled' and socially unaccountable, 'me, me, me' women.

That empowerment shifting from true equality toward feminist tyranny; whereby the worst of the female character becomes a norm for society; and hence the rise of sociological and pyschological mind-games that have become so common in both the workplace and upon the street, between co-workers and against target (supposedly anti-left) strangers, who stand in the way of the feminist drive to feminist power.

That drive to power being obviously directed toward wealth appropriation –  note not necessarily wealth creation – why build it when you can try to take it – and typically involves property; and is plied for via nothing less than a very surreptitious but powerful psycho-sociological war against those men who see what's going on and oppose it because of its negative effect on themselves and society at large.

'NAWALT'.....'Not all women are like that' of course, and thankfully so, but the male targets of such obviously agenda-laden power-based ploys in an increasingly transparent western socio-ideological civil war, are very dubious of the women in the modern western world; and its being seen in their own self-defensive beha

om the rise of new men's think-groups, to the rise of the so called 'INCELS' (young men who retract from sexual activity) to the increasingly widespread fear of false accusations, the deliberate misinterpretation of their actions or word by a woman, or at worst the belief that so many woman have become so brainwashed toward female advantage (ie their gain over true equality) in nearly all circumstances, that they intentionally stay clear of women as much as possible, given the negative outcome.

Hence, beneath the surface of a supposedly diverse yet integrated western society, the objective men and women of the everyday well recognise the fractures that have occurred and exist, and try to work around them in their everyday just by being decent human beings.

But those fractures - whether real and deliberately hidden (such as tribal and gender conflict), or falsely exaggerated (such as immigration numbers and effects) - have also been simplistically unified under the risen banner of 'New Popularism', (which itself is a propaganda device to keep the common people ill-informed and angryangry).

The fact is that as long as social instability permeates the west, because of the mixed selfish actions of many, from those who seek to keep tribes and genders as foes against each-other, to the willingness of such tribes (singularly or as cooperatives) to socio-economically marginalise another tribe or person(s), the longer the west will suffer from social conflict, instability and chronically low investment.

We live in a world in which the West, after the last positive effects of QE have been subsumed, will become ever more reliant from the rest of the world for investment – that is the central idiom of BREXIT.

Those supposedly named EMs – which often display greater standards of living than that lived by much of the west - though previously contracted by the global recession are themselves on fast-track economic escapes toward slowed but stronger regrowth.

And before investing heavily, the BRICs and CIVET countries will want to see true social stability in the west, and not just a pretence of happy diversity in company mission statements, whilst office politics and a lackadaisical mentality continues to sweep the west because of ethnic and gender differences.


Its time the West to woke-up from its ideological and very damaging sleep-walk of utopian pretence, re-taught not just children but critically adults about the basic values of mutual respect, to negate what is now an endemic 'passive-aggressive' society with at extremes it 'gas-lighting' traits, and got real about what makes a truly strong economy, prosperous people and thus a content and happy and so productive populace.

The legendary “Welcome to Britain” sign which has stood for 70 years at Heathrow Airport, may also need some simple directives about the basics of expected decent social behaviour.

(NB since 'gas-lighting' was replaced by electric lights over a century ago and we now live in a supposedly more enlightened age, whilst 'flying monkeys' don't have landing rights at airports or anywhere else; since such actions are criminal offences).

Only then, it would be a Britain of true social stability and integrity, upon an upward trajectory, that offers far more than just financial  RoI, but a social one aswell.





Thursday, 6 September 2018

Macro Level Trends - Cultural Capital - Goodwood Revival: Inspirational History, Not Histrionics




The West now exists at a time of mainstream 'culture-jamming', wherein false news has become the norm, specific tribes look more than ever to old and new media that validates innate ideologies, and the media's pretence of inter-cultural harmony actually masks a reality of separation.

Stand back from the crowd and the 'social pawns' of the far left and alt-right, both knowingly or unwittingly used, whether under the pretext of 'equality' and 'fight for rights', or alternatively, to invigorate a 'New Enlightenment' under which the extremes of Post-Modernism perieshes.

[NB. here in North London, the social machinations of portions of the 'middle-left' through 'collusion cliques' are constant, transparent and repugnant; the consequence of overt socio and psycho intellectualism. So much so, it makes the teachings of the 'middle-right', as seen by over zealous junior managers, appear downright naive].

The social anti-dote to such destructive 'culture jamming'?...

...Jam with culture....some clotted cream, scones, and pot of Earl-Grey.

As regards the culture, what better than a 'slice' of socially observant Jamiroquai, a soupçon of Japan's Jam Orchestra and just a little bit of Duke Ellington's C Jam Blues.

British sensibilities should to be rediscovered by the urbanite masses, beyond the immediate, but now ageing, appeal of hipster beards, storyboard 'ink', craft beers and ever more idiosyncratic curios; or the inner-city aggrevation of of 'grime and drill' or bling-laden tropes of modern  R and B.

Thankfully, such answers can be found once again in the provinces.

This weekend, Britain's South Downs, one of the grandest houses and a the very sociable Lord March plays host to the Goodwood Revival. An event that has become not only a 'must-do' for many on their annual calendar, but a veritable central pillar of the UK's own culture industry.

Whilst English Heritage and the National Trust do fine work in maintaining and conserving an archetypical Britain that dates back to the Middle Ages, with buildings and landscapes of utter beauty, for good reason (even with re-enactments etc) much appears as if preserved in aspic; and inevitably typically pre-dates the 20th century.

In contrast, it has been the very dynamism of Goodwood that has fuelled its popularism.

The modern event is construed as having its origins as the initial get-together of the automotive cognoscenti, as an amateur's haven to race yesteryear BRM's, Coopers, Maseratis and other single-seaters soon followed by second and third tier coupe and saloon racers with their E-Types, Shelby Cobras, Listers and big Galaxies, Mk2s and the gaggle of little Austins, Morris's and badge-engineered Rileys, et al.

A world almost mythologically derived, akin to the Aristocratic back-story of the real Edwardian Chitty Chitty Bang Bangs, merged with the tireless mechanical efforts of the fictional Caractucus Potts. Those origins the antithesis of 1990s class obsessed Britain, about a meeting of minds rather than social strata, where the owner of a V12 Ferrari 330 could talk about compression ratios, advanced ignition timing or four-wheel drifting with the owner of a humble Austin-Healey Sprite.

Well, the beginnings may not have been quite as mythological, perhaps a lot more considered; but brilliant events management and a world of goodwill mean that the myth soon became reality, and so much more.

From reality to hyper-reality as prescient moments in Britain's social history became condensed into 3 wonder-packed days.

With so much rich social history to draw from, the 1948-1966 timespan accorded to the cars (reflective of the track's own previous lifespan) became simply tokenistic  yesteryear, as regards all that happened 'track-side' and far beyond. As with the inclusion of WW2 to both evoke the national spirit and need for modern globalism; the raft of Allied memorabilia joined at times by vehicles and planes from the Axis powers.

After the fall of Communism, the Goodwood Revival became an instrument of Britain's internationalist soft-power; whilst simultaneously re-connecting new generations of its own increasingly diverse peoples to the historical heartland.

But what was/is the events attraction? It appears to be the paradox of of 'realism in escapism'.

For the drivers and vehicle owners, the heart of the Revival Meeting itself consists of the classic car's loud pops and bangs, the smell of new and burnt Castrol oil, the visceral feeling of open-cockpit or closed-cockpit speed – the open with bugs on goggles and in teeth, and the roles reversed in closed cockpit, as the driver becomes the the 'bug in a rattling tin'.

Its where the need to be uber-rational meets the uber-emotional, such as when deciding on a ' late apex dive across' to take an inside line against another, or the in-situ mechanical assessment required to ascertain whether a whisp of white (not blue) smoke from the tailpipe means the head-gasket will last another race before a rebuild. Is where 'mind and matter' meet, and more realism is gained in the activity of weekend escapism.

[NB Doing so encapsulates the 'living in the moment' mentioned in the previous weblog, and the mantra espoused by 'Zen and the Art of Motorcycle Maintenance'].

For the attendant crowd, the heart of the Revival Meeting is to a degree the excitement of what happens on the track, but more so, personal travel through an apparent time-warp into a very well staged former period.

One that merges in the hyper-real manner, aspects of the real, such as vintage clothing and else, with the fictional, such as the nuanced and deliberate recreation of Best of British film plots.

Per nuance, by chance there may be a svelte, caddish figure stood by a Bentley Speed 6, that just might conjure-up the scene from 'The Fast Lady', as the charming but slippery salesman (Leslie Phillips) convinces the overly rational Scottish anti-hero (Stanley Baxter) to swap his bicycle for the car, in his bid for a fair maiden.

[NB In the spirit of the Revival, a little something for the Gentleman, and some ladies,...take a look on youtube at 'The Fast Lady - UK Trailer' (CarryOn Trailers)....wait until 2mins 12 secs, and enjoy a demure momentary thrill that sums up a romantic sexiness that beats modern porn by a country mile].

Or perhaps at Goodwood one might stumble upon the likeness of a young Stanley Baker (not Baxter) stood by an old Foden, ERF or Leyland truck, in an oil-stained shirt, sleeves high-folded with a packet of unfiltered Capstan, looking tough; a moment then from 'Hell Drivers'.

But far more likely for most will the momentary transcendence into the cinema screen or onto a long-lost Pinewood film-set, as with the brilliant previous efforts of 'Carry On Cabby'.

More subtle but arguably even more immersive are the efforts to recreate the environments of the byegone everyday, a form of very specific 'deconstruction for reconstruction', as with a 1960s Tesco shop, or branded car dealership; the verisimilitude enjoyed given the play on the senses.

Vitally, it is the rich tangibility of the vintage items that populate the foreground, amongst the backdrop of plywood constructed scenes, that provides emotional meaning.

Those surviving (and even well reproduced) items, whether vehicles, clothing, accessories, auto-jumble, etcetera, actually feel materially different to our senses than that of our modern everyday, and not just because they may be musty.

It's the quality of materials and manufacture, the weight and longevity, that feel so different to how supposed quality is represented and experienced today.

Whilst undeniably modern vehicles are better 'all rounders' when in use, regards driveability, fuel efficiency, crash absorption etc, the senses received them as less substantive and so 'less'.

Engineering techniques to improve the perception of quality abound, from 3mm shut-lines to steering-wheel stitching patterns and spacing to acoustic tuning; but the necessary high-rationalisation of vehicle engineering for cost, weight, manufacturing and performance purposes – the centre-grounds of modern QFD – have altered the innate character of the car.

This philosophy started at Ford of Britain in the late 1950s with 'Project Cardinal' (which morphed into the 1962-66 Ford Cortina Mk1) and thereafter further rationalised by its Ford of Germany counterpart on Mk2 and Mk3/Taunus. So providing for mutual technical learning for each camp, and so circularity of savings; leading to the integration of Ford of Europe.

Hence the original Cortina (and US/Australian Falcon/Futura) provided for a step-change in Design Methods; soon copied by GM and Chrysler and taken to extremes by the Japanese with Sigma 6 and Kanzai. And these products introduced a new Modernist age, one which itself - as with the film 'Made in Dagenham - has inevitably yet ironically become an historical snapshot in its own right. 

But with such sleekness also came the loss of high tactility and confidence inspiring 'build-quality' and the long-lasting emotional connection of the buyer/owner/user to his/her vehicle.

As product cycles sped-up, marketing campaigns ran and components failed near their 4-year designed lifespan, so the commercial strategy of 'Inbuilt Obsolescence' expanded further, from its 1950s origins to become the fundamental basis of 20th century consumerism.

This is why in this period the Rover P6 was such a hard car to get right on so many levels for the Wilks Brothers. Since they had to try to combine and balance: America's cost-down engineering methods, France's demonstrated technical sophistication whilst still retaining the Best of British Rover's build-quality, for both the diverse demands of domestic sales and export orders.

Hence, the Goodwood Revival isn't just a grand day out, nor simply 'living history', portrayed through brilliant characterisation.

It illustrates the paradigm shift in a rarely available 'compare and contrast' manner, the watershed period between 1948 - 1966 when Britain itself was innately remoulded by the challenges and opportunities of new internationalism and its direct effects upon the commercial imperative.

To end, a toast...

“To the death of 'culture-jamming' and all negatively associated with it”

and instead,

“To culture with jam, clotted cream, scones, a pot of early grey and a 'slice' of jamiroquai...
...to meaningful national reflection, a new age of creativity and sound macro and micro financial stewardship ...and substantive commercial-industrial transformation”

And how about a 'laugh-a-minute' government funded remake of 'The Fast Lady'?..just to inspire!   

Tuesday, 14 August 2018

Summer Message - 2018 – Retro-Fitting UK plc: Deconstruction for Reconstruction....



Why Eco-Driven 'Industry 4.0' Regional Planning Should be Influenced by “Zen and the Art of Project Binky”


'Zen and the Art of Motorcycle Maintenance' was the equivalent of a 'secular bible' for the harried American company-man of the 1970s; who sought to recapture his soul, albeit for but a short time on a Sunday evening, to re-connect with his inner-being and true self.

Obviously in the world where capitalism rules and long hours worked, sabbatical visits to Indian ashrams, midday yoga sessions, tantric massage retreats and all else that “re-balanced the chakras” was out. Instead, he had a book about bike journeys and the contentment of attending to the inner-workings of the machine; and so, the slow satisfaction re-balancing the chokes on the carburettors was probably the closest he got to nirvana. A basic tool kit, the time taken to do a good job, the contentment of enjoying the motorcycle and a sense of self being in 'full tune'.

As the author R.M Pirsig stated, the central theme was that of the 'Metaphysics of Quality', which in layman's speak, is that which gives one's life meaning and value; born from the harmonious inter-connectedness.

Eighty years earlier, this had been the motivational force behind the previously described Garden Cities projects of Letchworth and Welwyn in Hertfordshire, UK; wherein Ebenezer Howard had sought to install and instill the essence of 'quality' into the average person's life. When able to exist in stable and uplifting surroundings people would themselves provide better quality professional work, undertake more productive pastimes and by means of a virtuous circle create improved communities and so society.

At its core was the ideal of the ability to raise consciousness and contentment through work, rest and play via self-fulfilling self-improvement, so that people could live lives at best as the euphemistic extended 'hand of god' – able to utilise being 'at one' themselves.

Today, beyond the relative rarity of beautiful park-lands, historic old towns and exhibits of museums and galleries in the everyday, we in the world at large arguably have very few contemporary examples of things made by man but seemingly 'touched by the hand of god'. Such items themselves born from a personal process of 'absorbed creation' that forms one aspect of the 'Metaphysics of Quality'.

As has been retold time and again, industrialisation and associated mass-scale productivity did and does still allow for the many to afford much, from cheap 'throwaway tat' at one end of the spectrum to intrinsically well designed, notionally long-lasting items at the other.

Yet whilst people enjoy much, from Primark clothing to Habitat ceramics, the general absence of either the truly hand-made, or better still the self-made, denies consumers and self-users a connection with either the original crafts-person or being themselves wholly subsumed for a period in the mystical creative process.

Ebenezer Howard (and the Garden City idiom) wanted to see people be both contented and become “the best of themselves”, and the importance of slow joy  to be had from  pastimes and hobbies of the period that promoted learnarom gardening to carpentry to tapestry weaving – each and much more,  central pillars to betterment.

Howard's effort was toward nothing less than the societal re-construction required from the negative results of an over-zealous capitalist system; one which had created a gulf between the enormously wealthy industrilists and financiers with allied managerial 'officer class', and the lives of the remaining masses: the working poor and destitute, with privation and vice-laden distractions.

But Howard and his “Social Reformer” peers weren't just seeking to spread middle-class values so as to end poverty, improve productivity and so enrich the nation; but to open the eyes of the less fortunate to become more at ease, mindful and content – in short 'to grow' beyond their own often self-damaging behavioural
limitations to find the inner peace and contentment that exists within Pirsig's 'Metaphysics of Quality' - which itself echoes the old spiritual belief systems of the East , from Persian Zoroastrianism to Chinese Tao.

Such personal contentment is experienced typically when one achieves something, or when practically working toward that goal in a manner which utilises skills gained thus far. Hence the satisfaction of practical hand-work, wherein the mind and body operates simultaneously in both parallel and unity.

Howard sought to re-construct his new towns in a deliberately hybridised manner, taking only the better aspects of city and country existence, and deleting the worst aspects of both places.

In short, as with any analytical design process...

”De-Construct to Re-Construct”.

Those new 'model' towns and suburban expansions helped re-ignite local, regional and national economies through humanitarian principles that ultimately through better lives delivered improved products, services and lives for all. Well directed and use of the Humanities in 'mission' and policy-setting so as to then better direct the Sciences in commerce and education.

[NB For Letchworth, the results of that attraction  was in its day, the many  light-engineering SMEs, such as automotive and railway firms, the positive ripples of which seen  in the educational slant toward the STEM subjects in its schools].

Today, more than perhaps ever since that crucial period, Britain needs to 'De-Construct to Re-Construct' at the macro and micro levels:

1. National Level - regards properly considered Regional Development Planning
2. Personal Level – regards capabilities and sense of self of the lowest demographic.

Aspects of the current national development projects appear ill-considered, and simply default to historical policy-planning.

The supposed panacea that is HS2 and 'Northern Powerhouse' Rail is in actuality little more than the application of increasingly obsolescent infrastructure from a very different age. Railways were created to supplant canals in the transport of initially heavy commodities such as coal, iron-ore, and thereafter other goods (often time critical) and thereafter people. It was a freight haulage system suited to the needs of the then myriad of Primary and Secondary Industries, thereafter consideration about the conveyance of people, with obviously regional commuter rail by far the most important current need – as with the new Elizabeth line.

Besides the interests of specific FDI backed mass-production (vehicles most obvious) Britain has been effectively been post-industrial for nearly 40 years. Yet the economic development policy reliant upon the expansion of rail – notionally argued as more eco-friendly – actually harks back to a now defunct age of coal mines, steel mills, textile mills, potteries and beer brewing towns.

Also obviously, the invention of the telephone reduced the need for personal travel enormously, applied en mass a century after the initiation of rail, and and so again with the internet nearly a century later again.

Unless Brexit actually results in the very opposite of Britain's re-globalisation aim, and by which Britain must again produce all itself for itself, the returned 'railway mania' appears very odd, unless for vested interests. Even then the necessary 'clean-burn' use of LNG and CNG and the improved affordability of naturally sourced eco-energy generation, increasingly on a local basis, means that further investment in rail appears less convincing than better considered infrastructure projects.

To this end state-planning ought to be better 'de-constructed and re-constructed' given the critical ROI demands of PPFI backed by investor institutions that have long-horizon pension liabilities to the British population.

That said, this web-log, seeks to focus upon the individual – men, women, boys and girls alike - and the importance of creating a living environment that promotes education, practically applied learning and the basis for a new and meaningful economic template that necessarily relies to a great extent upon the re-use of already 'circulating materials' via sophisticated recycling and redeployment.

The phrase 'reality bites' has never been so prescient, and it is an unpleasant reality which won't go away for many people, even with statistical GDP growth and the popularity of nationalistic efforts such as Trump's 'America First' policy.

The everyday reality of tight-budget living by many, and the contraction of job opportunities after 2008, especially affecting the young, was precisely why the highly popular Macklemore-Lewis song 'Thriftshop' became such a meaningful theme for so many 15-40 year olds.

Critically, changed times call for changed economic templates.

Which is why investment-auto-motives conveyed many years ago and so soon after 2008 that the economic western 'new norm' of low western growth, itself predicated upon reduced future demographic demand, and the long-lasting sociological effects of the Great Recession, would demand a new approach by sections of banking and business – far beyond the fascination with the likes of Lidl, Aldi and Poundstore – and into new realms.

Some may recall the long weblog series devoted to the futuristic philosophical redesign of emergency service vans, with special focus upon police demands given the massive diversity of tasks within that arena.

Hence, it is the central theme of 'Deconstruction / Re-Construction' that should be far better considered.

- At the personal level to generate learning and interest......
- At the local level to create a model of 'eco-procurement' hubs.....
- At the commercial level to generate new business models......
- At the national level to enlarge the positive impact of a recycling economy......

Many of those entering adulthood after 2008 entered a very different world to their parents previous experience, most recognising that the 'good times' had gone and they would have a harder time of things, as with student debt, decades of home-renting instead of property buying, the shift away from marriage and life-time relationships, etc...and together with increased social friction given the consequences of socio-economic decline actually views the world at large more cynically, even if they must publicly appear open and upbeat to befit the social zeitgeist.

Part of this is the recognition of self-reliance and the need to expand their skills-base to get-by and enjoy.

Video-upload platforms such as Youtube highlight many younger (and older) people trying to find new social roles and related income streams. The 'new norm' prompting a wide range of self-publishing responses from thrift-shop 'hauls' to food foraging to 'living off the land'. The need for low-cost living, ideologically supported by eco-consciousness, has moulded youth and many people's mentality toward that which is either wholly 'DIY' directed, or re-set toward the communal ideal of combined effort.

However, whilst undoubtedly there is renewed interest in the 'Good Life' (as depicted in the 1970s comedy TV series) by the few seeking 'hippy living', most often today's examples of DIY learning aren't about ethically driven, drop-out, life-changing habits, but simply about pursuing personal enjoyment.

Wherein a person – often as part of an on-line based special interest group - chooses (in an arguably very infantile manner) to partake in a personal sublimation into the escapism of the cartoon worlds that exist inside the video screen.

This of course the trend of 'CosPlay'.

Ironically, though facing less real-world problems that those in reduced circumstances, it has been the 20 and 30-somethings of the middle-classes who are able to devote time and money to this escapist past-time.

However, the positive outcome has been a growth in self-created items and associated the handicrafts devoted to the making of costumes and accessories.

To recreate the characters and outfits of screen-based figures they have had to utilise both imagination and their limited resources, stretching the former to bypass the latter.

Increasingly popular annual Comicon events have seen the costume efforts of its participants evolve from poorly executed using odds and ends, a glue-gun and spray-paint, to highly sophisticated interpretations deploying much from artisan old craft-skills to 3-D printed accessories.

This renewed and specifically directed interest in design and making (albeit upon a presently small comparative basis) has undoubtedly helped to add to the new-wave of designer-makers.

Added to this has been the TV programming trend for re-constituting, refurbishing and re-purposing old furniture, materials and fabrics. Such activities much assisted by the now long existent interior design trends of yesteryear 'industrial-chic', the more soulful 'distressed', 'age-worn' aesthetic', and eclectic bric-a-brac, that long ago opened the younger generation's eyes to 'crafting and curating' something personal and unique; albeit actually within accepted resonating styles.

Such trends led to fascination for the old, such as motorcycles, typically from the 1920s to the 1980s, along with interesting curios like old metal signage and much else besides including esoteric task-dedicated machinery so well illustrated by agricultural equipment.

But is has been the plethora of TV car-based shows predicated upon the formula of reconditioning for resale, and that of a vehicle-owner commissioning of a personalisation project, that have been the greatest prompts towards a re-popularisation of repair, re-use and customisation.

The programmes seen on TV however, rarely illustrate the reality of a vehicle rebuild or major re-design; oft edited to obtain a 25 minute progression story behind which have been 100s of hours of thinking and much physical effort.

However, the best results are achieved through even slow, more relaxed concentration.

TV typically depicts supposed money-making exercises to enthuse the masses and create social trends, and in this instance drive up prices in the classic car sector. Yet all too often the reality of the time, cost and effort required doesn't accurately 'stack-up' as a profit seeking exercise.

For the most part the business model of piecemeal classic car restoration is rarely a money-making exercise unless either for rare vehicles at the 'top-end' that have high demand, or for specific models awaiting their demand-upturn bought at the right time and at the right low cost (invariably meaning much work). Or when the business is so well financially supported and large enough to enable a mix of  client projects  from light reconditioning to full restorations . This the template behind the rise of various auto-manufacturer's own business  strategy expansion into the classic sphere, with finance, time and  authentic origin.

Neither do most television shows to convey the true essence of such undertakings, mostly done by men who do it as a personal hobby and/or challenge. It is a 'journey' in itself and for the satisfaction of completion at some unknown future date. 

But there is an exception in TV-land, something approaching the central message of 'Zen and the Art of Motorcycle Maintenance', and that was 'The Re-Assembler', presented by James May of Top Gear fame.

It provided a deliberately slow, peaceful, and considered atmosphere for the re-assembly of various yesteryear consumer products, spanning: a model locomotive, electric guitar, petrol lawnmower, monkey-bike (motorcycle), GPO telephone and other items.

It was produced as a light-hearted social antidote to the madness of modern time-compressed, unthinking and reactive, modern-life; the antithesis of today when Britain itself (through both rose tinted spectacles and sepia image) supposedly felt as slow as a long Sunday afternoon.

May – himself nicknamed 'Captain Slow' – provided the perfect insight into the original high-mindedness of the (mostly men) who created well designed and manufactured 'quality' products for all ages and interests.

He reflected the high-idealism of what could be called proper industry, when company reputations were built on long-lasting goods available to an ever expanding client-base, between the 1920s and 1960s.

'Integrity' was the watchword, built into the product, into the company and into the people.

And it is very likely this idealism, of time taken for a job well done, that compels the 'men (and women) in sheds'.

Yet of course such people are rarely widely known, even if the  those who do exist might be said to form the ethical backbone of Britain and elsewhere.

So, to find a true evocation of the RM Pirsig message, one must seek-out the very best from on-line video content-makers, those who operate in the realms of vehicle deconstruction / re-design / reconstruction.

The best by far seen to date has been the project build from 'Bad Obsession Motorsport., with their wholly entertaining and completely absorbing 'Project Binky'.

The endeavour itself relayed with passion, humour and modesty.

It involves the efforts of two men located in Shrewsbury, Shropshire, who are jokingly depicted as 'master and apprentice', and who on a part-time weekend and holidays basis, seek to fit the body-shell of an original Austin Mini with the engine, gearbox and 4WD drivetrain of a Toyota Celica GT4 Turbo.

Whilst others within the Mini-sphere have updated with off-the-shelf upgrades or gone as far as to install far easier transplants, typically the eponymous Honda VTEC or Suzuki Hayabusa engine, the endemic aim of Project Binky goes far further and far deeper..

It is as much about the process as the outcome, if not more so.

With very detailed reconfiguration of the engine-bay, front-end, front bulk-head, under-floor, rear bulk-head and most other engineered 'hard-points', it includes an enormous amount of necessary (and debatable unnecessary) custom-made, and heavily adapted, parts, from the Mini, the Celica and a host of other vehicles and new shop-bought parts.

Moreover, the ambition demands more than simply practical know-how, but periodically delves into the STEM subjects, such as when needing to use trigonometry to calculate the required swept-area of the front and rear screens, or to calculate the volumes of a newly fabricated petrol tank, HVAC system and hydraulic reservoirs.

Thus requiring intellectual inquiry and conclusions.

Humour and self-mockery are constant elements throughout, well illustrated by the use of their version of 'CAD'. Normally applied to Computer Aided Design, its the synonym for 'Cardboard Aided Design' that describes the cardboard templates (that themselves become origami artforms) so well appreciated by the amateur or professional repairing or renewing body-shell components.

Of specific note is the deliberate slow pace of progress, which itself is a welcome antithesis to the frenetic pace of the modern world. This because of the time limitations available given their other professional and family responsibilities. Hence episodes appear as and when ready, not to a prescribed schedule and time-frame.

Yet, it is precisely the correlation of the time required to achieve such micro-detailed substance, and the similar quality of video-production, that rewards the viewer. Something to truly ogle, in the old and prototypical sense of the word.

'Project Binky' is quite unlike anything else depicted on television or Youtube for its adherence to the innate ideal of 'true quality', the striving for which provides meaning and satisfaction for many likewise automotive obsessed addicted viewers.

A Utopian world hardly exists, but if people would choose to view and appreciate life though greater introspection and aforethought – known in engineering design philosophy terms as 'QFD' (Quality Functional Deployment process) – one day it might.

Time for QFD in the nation's analysis of Eco-Industry 4.0, supporting National and Regional Planning, use of financial resources and human education and talent, and within ourselves to become higher quality people.