No 140: Pride and Prejudice

In India it is the law that all large businesses must make an ‘investment’ in Corporate Social Responsibility. Any company making a profit of over $800k must contribute 2% from each of the three previous years’ profits to CSR projects (ie 6% per year spread over a rolling three year period). India is a very big place, with a lot of very big corporations. 16,000 of them. There is apparently over $2bn currently ear-marked for CSR but not yet allocated due to a lack of suitable projects. A whole new industry has developed to help spend this money. I had a rather bizarre experience this week when I met someone (who had undoubtedly lost perspective) who disdainfully said: ‘Now that they are finally running out of do-goodie education projects there might actually be some opportunities in the water sector…’.  

Despite this rather narrow minded statement there are indeed some startling innovations coming out of India. In a separate meeting I heard about a novel small-scale, solar-powered, thin-film distillation unit which can produce clean water for less than £0.02/litre (for my metrically-challenged US followers, that is approximately 12cents/US gallon). I found myself tingling with excitement as they recounted how the process works.

Blame for the lack of CSR spending is cast far and wide, but mostly levelled at the complex systems and hierarchy associated with the scheme. It is almost 70 years since the British left India but we seem to have left a legacy of bureaucracy, pecking orders and class-obsession that I struggle to see as positive. Sadly, I am no better. I have the same proud cravings and prejudices. Perhaps it is a British thing. 

For example, this evening I attended an awards dinner. Never one of my favourite pastimes since they tend to involve back-slapping and I never get slapped. Tonight however it was different. I was one of the chosen! I received the Lifetime Leadership Award for my Contribution to Technology in the Water Sector (best to gloss over the ‘lifetime achievement’ bit, it infers it is time I shuffled off my mortal coil). I am honoured, of course. I am honestly not sure it is deserved, but I can’t deny that my ego swelled. As I write this I am in a taxi heading towards airport through the busy late-night Mumbai traffic. In my bag I have the award, a unique combination of garish golden plastic on a heavy, wooden plinth. It could serve well as a weapon if needed. It will either push my hand-baggage over the weight limit, or will get me strip searched as a potential terrorist.

Knowing my luck, probably both.

No 139: Your smart phone is a product of war.

Professor Mariana Mazzucato is a feisty, opinionated and blunt American. She is a professor at the University of Sussex, has written numerous books on 'entrepreneurialism', and advises governments around the world (not least the UK's own opposition leader Jeremy Corbyn) on how they can deliver 'innovation-led growth'. She is articulate, intelligent and informed. One cannot hear her speak without being whipped along by the confidence with which she declares her convictions. 

She gave the key note speech today at the European Innovation Platform (EIP) event in Leurwaarden, The Netherlands. Despite having no knowledge of the water sector she kept an audience of c800 water industry professionals absolutely captivated with her stark yet engaging prognosis.  A key theme of her thesis was that many of the innovations which we commonly regard as successful private sector products (eg smart phones, the Internet) actually only exist because of substantial public sector support. 

She claims that the vital role of public sector support in the genesis of many successful innovations has been cruelly overlooked, partly because it is not in the interests of Apple or Google to share the limelight (let alone the financial benefits), and partly because society has a mistaken belief that governments and regulators should 'just provide a policy framework to avoid markets failing'. It is a myth, she argues, that only the private sector can deliver commercially successful innovations.  

According to Professor Mariana the modern smart phone would not exist without the 20 or so major public sector research budgets that were vital to the development of each component part. And that these component parts were only developed because governments were keen to fund anything that would help with surveillance or defence. The touchscreen technology was apparently developed by the CIA. Who knew. Wash your hands before you next use it, you never know who is watching you. 

 Following her key note speech I had the honour of chairing a panel discussion which included Professor Mariana, along with 4 other highly influential members of the water glitterati. I had anticipated it might be a challenging session to chair and I confess to feeling like a circus ringmaster trying to control a group of caged and hungry lions. Strong views were aired and shared. The private sector supporters made a valiant attempt to counter Mariana's 'public sector is best' mantra but I don't think anyone changed their views. If nothing else, the audience was entertained at least. 

Like I say, Professor Mazzucato is feisty, opinionated and a just a little bit scary. I have no doubts that she would regard this description as a compliment. She may know precious little about the water sector that I love, she may be 10 years my senior, I may disagree with many of her ideological stances, she might regard me as little more than pond scum.... 

None the less, I think I am developing a schoolboy crush.