Tag Archive for 'Networks'

Revenge of the Slow

cambray cheese platterBruce Sterling writes about the networked boutique localism of the slow food movement in a Metropolis magazine article Revenge of the Slow:

Slow Food began as a jolly clique of leftist academics, entertainers, wine snobs, and pop stars, all friends of Ital­ian journalist and radio personality Carlo Petrini. Their galvanizing moment, which occurred in 1986, was an anti-McDonald’s demonstration at which Petrini and his dining buddies brandished pasta pans while folk-dancing in the streets of Rome. This prescient intervention predated Jose Bove’s violent wrecking of a French McDonald’s by some 13 years. While the anti-WTO crowd was politically harassing corporate globalizers, Slow Food was methodically building constructive alternatives. Today, Slow Food is well-nigh as “glo­­bal” as McDonald’s but networked rather than hierarchical. Year by methodical year the Slow Food network has stuck its fingers into a host of pies.

As a nonprofit heritage organization, the Slow Food empire retains a mere 150 full-time employees with a modest budget of $37 million a year. Yet Slow Food has invented the modern Italian food-heritage industry. Today it is a thriving ganglion of local chapters, called convivia, which number about 83,000 people in more than 100 countries. It’s also a publishing house specializing in tourist guidebooks, restaurant recipes, and heritage reprints. …

The cleverest innovation to date is the network’s presidium system. The Slow Food “presidia” make up a grassroots bottom-up version of the European “Domain of Control” system, which requires, for instance, that true “champagnes” must come from the province of Champagne, while lesser fizzy brews are labeled mere “sparkling wines.” These presidia have made Slow Food the planetary paladin of local production. Slow Food deploys its convivia to serve as talent scouts for food rarities (such as Polish Mead, the Istrian Giant Ox, and the Tehuacan Amaranth). Candidate discoveries are passed to Slow Food’s International Ark Commission, which decides whether the foodstuff is worthy of inclusion. Its criteria are strict:

(a) Is the product nonglobalized or, better yet, inherently nonglobalizable?

(b) Is it artisanally made (so there’s no possibility of any industrial economies of scale)?

(c) Is it high-quality (the consumer “wow” factor)?

(d) Is it sustainably produced? (Not only is this politically pleasing, but it swiftly eliminates competition from most multinationals.)

(e) Is this product likely to disappear from the planet otherwise? (Biodiversity must be served!)

For the foodstuff artisan (commonly dirt poor and neglected somewhere in the planet’s backwoods), Slow Food has a strong value proposal. It is, among its many other roles, a potent promotion machine. Transforming local rarities into fodder for global gourmets is, of course, profitable. And although he’s no capitalist—the much honored Petrini is more justly described as a major cultural figure—he was among the first to realize that as an economic system globalization destroys certain valuable goods and services that rich people very much want to buy. In a globalized “flat world,” the remaining peaks soar in value and become natural clusters for a planetary elite. …

A local product with irreducible rarity can be sold to a small elite around the world. But it can’t be sold to mass consumers because it doesn’t scale up in volume, so it can never lose its cachet. The trick is in uniting these niches. A capitalist business has a hard time of that, but a cultural network is a different story. …

Slow Food, in its solemn wisdom, will methodically seek out local producers of the product, raise their consciousness, and then fly them to Italy and unite them in subsidized conferences. The group links local farmers, bakers, millers, and butchers with their peers in other countries: the “Terra Madre” global network. Having built this distribution net, Slow Food offers grants to needy producers for things like barns, butcher shops, and tractors. Then as a final twist, Slow Foodies cheerily eat the end products themselves.

The upshot is an obscure piece of rural heritage cunningly reengineered as a curated service/­product in Europe’s modern food-heritage industry. To Americans it might seem paradoxical that Eur­ope’s rural farmers could be at once blood-and-soil heritage patriots and culture-industry jet-setters whose star clients are wealthy politicized food theorists. But while McDonald’s mechanically peddles burgers to the poor, Slow Food acculturates the planet’s wealthy to the gourmand quality of life long cherished by the European bon vivant. They have about as much in common as an aging shark and a networked swarm of piranhas.

Ecology for bankers

In Feb 21 2008 Nature, ecologists Robert May, Simon Levin, and George Sugihara write about how ecological thinking can be used to illuminate financial dynamics in their commentary Complex systems: Ecology for bankers:

‘Tipping points’, ‘thresholds and breakpoints’, ‘regime shifts’ — all are terms that describe the flip of a complex dynamical system from one state to another. For banking and other financial institutions, the Wall Street Crash of 1929 and the Great Depression epitomize such an event. These days, the increasingly complicated and globally interlinked financial markets are no less immune to such system-wide (systemic) threats. Who knows, for instance, how the present concern over sub-prime loans will pan out?

Well before this recent crisis emerged, the US National Academies/National Research Council and the Federal Reserve Bank of New York collaborated on an initiative to “stimulate fresh thinking on systemic risk”. The main event was a high-level conference held in May 2006, which brought together experts from various backgrounds to explore parallels between systemic risk in the financial sector and in selected domains in engineering, ecology and other fields of science. The resulting report was published late last year and makes stimulating reading.

Catastrophic changes in the overall state of a system can ultimately derive from how it is organized — from feedback mechanisms within it, and from linkages that are latent and often unrecognized. The change may be initiated by some obvious external event, such as a war, but is more usually triggered by a seemingly minor happenstance or even an unsubstantial rumour. Once set in motion, however, such changes can become explosive and afterwards will typically exhibit some form of hysteresis, such that recovery is much slower than the collapse. In extreme cases, the changes may be irreversible.

Two particularly illuminating questions about priorities in risk management emerge from the report. First, how much money is spent on studying systemic risk as compared with that spent on conventional risk management in individual firms? Second, how expensive is a systemic-risk event to a national or global economy (examples being the stock market crash of 1987, or the turmoil of 1998 associated with the Russian loan default, and the subsequent collapse of the hedge fund Long-Term Capital Management)? The answer to the first question is “comparatively very little”; to the second, “hugely expensive”.