April 26, 2024

Economix: Author’s Plea for More Trial and Error

Book Chat

Tim Harford is a columnist for The Financial Times and the author of “The Undercover Economist.” He’s part of the growing cadre of journalists who try to write about economics in plain English. His new book, “Adapt: Why Success Always Starts With Failure,” will be published this week. Our conversation follows.

Tim Harford, author of Fran MonksTim Harford, author of “Adapt.”

Q. You briefly tell a story about the chef Jamie Oliver. He persuaded schools in one part of London to change their lunch menus to reduce fat, sugar and salt and to increase the number of fruits and vegetables. When two economists studied the children later, they found less illness and somewhat better school performance. That’s incredible. How much confidence should we have that the change in the menus caused the health and academic changes?

Mr. Harford: What really grabbed my attention about this incident was not, “Healthy meals help kids concentrate in school” – it was, “Wow, it takes a campaign by a TV chef to find out something like this.”

The research was carefully done by serious economists, but we could have more confidence in their findings if the project to improve school meals had been designed as an experiment. It wasn’t; it was designed for a TV show. After it started, Tony Blair, the British prime minister at the time, was falling over himself to endorse it. Yet it was a simple idea that Blair’s government could have tested out years before.

One of the main ideas of the book is that the world is full of interesting ideas that might help solve some of our big problems, but nobody really knows which of these ideas will work and which will fail. So policy makers, corporate leaders and social campaigners need to be much more open to all sorts of formal and informal experiments. Jamie Oliver created an accidental experiment. It would be nice if we spent a bit more energy doing this deliberately.

Q. You’re saying, in essence, that society doesn’t do enough trial and error. What are some of the areas that could benefit most obviously and immediately from trial and error?

Farrar, Straus Giroux

Mr. Harford: I look at lots of different examples — military strategy; climate change policy; development aid; education and social policy at home; and support for innovation .

I think our system for promoting innovation, which is funded by a combination of government grants and private enterprise, struggles with large and adventurous projects, such as clean energy. The private sector is terrific at producing lots of experiments (just think of Silicon Valley) but not at funding expensive, long-term projects. Government grants can do that but are often rather risk-averse. One promising approach to get the best of both is innovation prizes. Another is to use a far more risk-loving system of grants.

In Iraq, we had a failing strategy and leaders who refused to listen to feedback from the men on the front line. It took a near rebellion from some brave colonels in Iraq to change the strategy. The U.S. military now seems to recognize that a successful post-Cold-War campaign is going to require the soldiers on the ground to improvise a lot more.

Of course we can’t simply say, “Let’s experiment more,” because there are areas of the economy where experiments can go off the rails — credit derivatives, anyone?

Q. Innovation is an especially important subject, because it has such a big effect on economic growth and living standards. And there is reason to worry that the pace of innovation has slowed in recent years.

How would you recommend that the United States change its policies intended to promote innovation? You’re based in London, so I realize you may want to talk about what some other countries are doing well — if, in fact, there are any shining examples.

Mr. Harford: Here’s the challenge: by its very nature, innovation requires a lot of exploration and a lot of blind alleys. Government agencies don’t tend to be comfortable with that, so the private sector often makes the running. Even when an idea was initially government funded — the Internet is a classic example — it’s taken the private sector to explore its potential.

But I’m not happy to leave this to the private sector alone, because modern innovations tend to require ever more money, larger teams and more specialists. The age of the lone inventor is long gone, and in important cases — for instance, a smart energy grid, or nuclear fusion — the private sector just doesn’t have the money or the patience to pay for progress.

So this is fundamentally an organizational problem: how to harness the diversity of the private sector with the long-term funding of the public sector?

I see two promising approaches. One is to earmark more government research grants for high-risk projects. A fascinating research paper compares conservative medical research grants from the National Institutes of Health with more speculative grants from the Howard Hughes Medical Institute. The Hughes approach produces more failures but many more “big hits.” Clearly, there’s a balance to be struck.

A second approach is the use of innovation prizes. These have received increasing attention but there’s potential to put up far larger prizes — multibillion-dollar affairs.

Q. Who is a hero of adaption — someone who managed to change an organization that had been terrified of failure?

Mr. Harford: There are several inspiring characters in the book, but I’d pick out Gen. H.R. McMaster, who in the spring of 2005 was a colonel in charge of operations near the Iraqi city of Tal Afar. He developed a new approach to fighting insurgents. It was successfully copied by other colonels and became an important inspiration for the “surge” of 2007.

What makes General McMaster’s initiative amazing is that he had to shrug off every link in the chain of command above him. Remember that in 2005 Donald Rumsfeld didn’t even want to hear the word “insurgent,” so this was a career-threatening move, Many observers commented on the fact that he was repeatedly passed over for promotion.

I wanted to explore why he did it. Partly it was his academic background: McMaster was a historian who wrote a blistering account of the failures of leadership during the Vietnam War. And it was also his personal experience. McMaster captained a troop of tanks during the first Gulf war and won a celebrated victory — the Battle of 73 Easting — against Saddam Hussein’s Republican Guard. Rather than resting on his laurels, McMaster argued that this battle — a total surprise, in a sandstorm, with no air cover — showed that the traditional satellite-guided air war had serious limitations. He argued that junior commanders on the ground would often be the ones called upon to adapt to local circumstances, and the military command structure had to acknowledge that.

Article source: http://feeds.nytimes.com/click.phdo?i=54ce136617e739c74100d671290d169e

For $1,000, Site Lets Celebrities Say It Ain’t So

Suing is too stressful and quixotic. Besides, it’s the Internet: how can anyone erase the inerasable? But courtesy of a new Web site called ICorrect, people who feel unhappy about “obvious misinterpretations, misinformation and what some might call total lies,” in the words of the site’s founder, Sir David Tang, can now attempt to set the record straight.

“The superhighway is jampacked with stops where at every place you’ll have mud thrown at you,” said Sir David, 56, a businessman, socialite and celebrity friend extraordinaire who is best known for founding the department store chain Shanghai Tang. “Can you afford to have it all stick and not try to clean it up?”

People concerned about their reputations can use the site to post as many corrections as they want, for $1,000 a year. Luckily, browsing through the posts is free.

Here is the actor Stephen Fry, rebutting a report that he dislikes Catholics. Here is the businessman Richard Caring, noting that he did not rudely fail to turn up at an important luncheon (it was a misunderstanding). 

Meanwhile, Cherie Blair, wife of former Prime Minister Tony Blair, did not appear at a party wearing the same dress as the actress Hayden Panettiere; did not go shooting with Col. Muammar el-Qaddafi’s son; and never declared that a burqa “is no more a threat than a nun’s habit.”

Sienna Miller would like to make it clear that she is not on Twitter. Tommy Hilfiger  never said that he did not want black people to wear his clothes. And, despite what you may have heard, Viscount and Viscountess Linley were not sulking in a maritally discordant way after a recent wedding (they were, the viscount writes, “just waiting for our car”).

ICorrect went live this month and has about 35 founding members, or correctors, as they are called, plucked mostly from the pages of Sir David’s very thick book of contacts. Anyone can join, with payment and proof that he is who he claims to be; the site does not post items from nonmembers. 

Sir David said that the site, apparently helped by a positive Twitter message from Mr. Fry, had 225,000 hits its first weekend. “It’s minimally designed to make sure that even the most stupid person can work it and understand it,” he said.

Although Sir David admits that it has been “quite a path to persuade people to join,” he has high hopes that someday ICorrect will be the world clearinghouse for corrections. “It’s my fervent desire to have NGO’s and big corporations like BP,” he said.

The new venture has been greeted with some skepticism in the British media world, in part because some people thought at first that it was a joke, and in part because many journalistic commentators are not naturally sympathetic to offended celebrities.

“As images of human desolation were beamed into our homes this week,” wrote Brian Reade in the Daily Mirror tabloid, referring to the Japanese tsunami, “rich and famous people were hunched over laptops alerting us to the grotesque injuries caused to their reputations.”

Stephen Pritchard, the ombudsman at The Observer of London, which has an actual corrections column, said in an interview that people who joined ICorrect risked drawing unnecessary attention to the very items they wished would go away. Also, he added, who is to say whether their corrections are in fact themselves correct, rather than fake alternatives they wish were true?

That is not the point. “We’re not here to police it or prove the veracity of what you post,” Sir David explained, “although we do make sure you don’t commit crimes by defaming people or inciting others to violence.”

The beauty of the site, he said, is that it allows the offending items to be viewed next to the offended person’s response, so that even lazy Internet users will be exposed to both sides of any given story.

”A lot of people simply look up Google and press a finger and lift whatever is in front of them,” Sir David said.

For example, he added, “If you say that Henry Kissinger bombed Cambodia illegally, you will have to do a bit of research before you find where he defends himself. But if he joins the site, he can say, ‘This was my reason, and it’s more fully explained on pages 85 and 86 of my autobiography.’ ”

Meanwhile, Mrs. Blair, who became a popular target for tabloid tales when her husband was prime minister, said that in a country where some newspapers made little effort to “get the basic facts of a story right,” the site was a welcome antidote.

”Anything which allows people publicly to correct factual inaccuracies in stories about them is a good idea,” she said in an e-mail message.

Of course. But on the other hand, one of ICorrect’s members  is Bianca Jagger, and all you can do in reading her entries is sit back in dismay as the myths fall.

No, Ms. Jagger says, she did not go out with Pierre Trudeau, the former prime minister of Canada. No, Billy Joel’s song “Big Shot,” about a woman riding in a limousine with “the Dom Perignon in your hand and the spoon up your nose,” is not based on a bad date he had with her.

She also addresses the business about herself, the horse and Studio 54, revealing that, unfortunately, it was not as exciting as everyone thought.

As one visitor to the site, Laura LaRue, said on Twitter: “ICorrect is making me a little sad. Bianca Jagger did not ride a white horse half-naked in Studio 54. Sometimes a lie is more fun?”

Article source: http://feeds.nytimes.com/click.phdo?i=747795c2658c61525cadf7273e18157c