Strange Customes They Have Here in Sweden...

I do not know what it is... Share unwillingness to depart from one's training equipment? The latter's aspiration to be a bike and get equal treatment? Or one's will to be in the middle of things...

Manhattan Transfer Continued

I really liked the book that i finished last week - well, at least the way it was written. It started in the middle of nowhere and ended in the middle of nowhere. Ok, to be honest, it started with coming to Manhattan and finished leaving the Manhattan. In between there were people in different roles and different phases of their lives. There was a guy Bud, who died in the middle of the book by jumping off the Brooklyn Bridge, there where people making billions, there were people losing billions, people falling in love, people falling out of love - just the way the world is. There is probably no "real" story with the beginning and an end. It's just evolution - people come and go, but the scene is always there. In this case the NYC then.

And this is the reason, why i started reading this - a friend of mine recommended it to me before going to the City. She said, it was the best book she had read about New York. I'm happy i read it. Took my mind off the serious stuff for a while...

As for my life in Malmö - its quite usual, no big changes.

Went to a park the other day and found this Kaali Crater like institution. Strange, but i found it really cool actually. There is something about round landscapes. See it also from Google Maps, if you want to. Its in Pildammsparken.

America, Oh America...

Just to commemorate the inauguration of the new president elect I'll post another quite interesting fact that i found from today's Bank of Estonia's publication. We are talking about official statistics, account deficit to be precise and how it is formulated:

"Reisiteenuste import kasvas tänu Schengeni lepinguga ühinemisele III kvartalis eelmise aastaga võrreldes 14%. Kuigi reisifirmad müüsid reisipakette 5% vähem, siis reisijate ja reisipäevade arv suurenes vastavalt 10% ja 14%. Kõige rohkem (6,2 korda) tõusis USA reiside arv."

Remember the US trip i took?

6,2 times the volume of travel went up in the III quarter, which happens to be the exact time when Estravel had their infamous campaign (East coast tickets for 3999). I heard that they sold about 5000 tickets, plus I also know that most of my friends are going...

The Manhattan Transfer

Thought about writing here yesterday, but instead will create another post and leave this for future generations...

Another Quiet Sunday...

...got me reading and thinking again. First of all about the size. Yes, the size of Estonia.

I remember walking down in the streets of Chennai and to my mind posting a really important question to a stranger there: "Do you know where Estonia is?" and then just realizing how ridiculous it was. Does it really matter in a context where even time has a different meaning...

But then again, sometimes some things matter.

The Swedes compared Estonia with their e-bay kind of web-shop called Blocket and stated that "The total value of goods advertised on Blocket represents around 6 percent of Sweden's GDP in 2008, and is greater than the 2007 GDPs of both Iceland and Estonia."

So now, bearing this in mind and analyzing the riots that were down in Baltic's (and now I'm thinking like a swede), it really doesn't matter exactly where they were. Unless, unless, we work on it and use it in our advantage. Make us stick out.

I liked pretty much liked what Tõnu Õnnepalu said in Sirp a couple a weeks ago: "Meist ei olene midagi ja sellepärast olenebki kõik ainult meist endist: meie ükskõik millistele „liitlastele” on meie tähendus lõppude lõpuks ikkagi sama – väga lähedal nullile. Meie enda jaoks – lähedal lõpmatusele."

We are our greatest enemy and our best ally. We can pretty much gain the world (sort of) if we are just clever enough... Think about it, we should actually position ourselves deliberately differently, maybe even contradict ourselves to "others" - gain another bit of competitive advantage...

Magnetic Polarization

Do you have that glitch sometimes that when you read or listen to something due to some mysterious reason you have to put it down to wait a bit. Just to wait for the right time or something - i don't know what. Well, that happened with me with the last Metallica's album. I got it about half a year ago from my friend, listened to it a coupe of times and then just blocked. Every time i was scrolling my playlist in my iPod i just passed it with a strange feeling at the back of my head.

And then yesterday i went to my gym here in Sweden and put it on. Quite bravely listened to the whole album. Feelings? Well, it's good at least to a certain extent i.e. if you listen to the first 4 or 6 songs. You feel upbeat and quite fresh. I even, at some strange point, figured out that i would like to play a bit football after half a year has passed without having actually thought about it. But then, i felt bored, i felt that i had already listened to most of the stuff that was there. It was all kind of: "...And justice for all", "Kill em all" etc. revisited. Even the riffs are repeated. And then i thought about naming of songs "All Nightmare Long" - is this cool? Not really. And what about these Unforgivens - think it's time to give up with them.

Now don't get me wrong - this is quite a good record for melancholia or something like that. The thing is, it lacks new ideas and thus progress. I'll still probably listen to it as time passes, but it is nothing special.

What Got You Here, Woun't Get You There!

Another post on the Estonian industrial policy.

Firstly, and I must say, Mr. Kattel is impressing me again. What about this quote “Niisiis oleme müstifitseerinud kogu innovatsiooni- ja majanduspoliitilise debati, mille tagajärjeks on heal juhul Nokia ihalus või lihtsalt labane kraaklemine või ärplemine meie maksusüsteemi ja muu sellise pärast. Ilmselt on meie kõige suure probleem ülbus ja suutmatus tehtud vigu tunnistada ning neist õppida. Poliitikakujundamise kvaliteeti näitab alati see, kui palju osatakse vigadest õppida. Meil sisuliselt puudub süsteemne õppimine ja ka tahe selleks. Oleme olnud enda arvates eksimatud. Eesti Nokia sõi ära meie kollektiivne neoliberaalne ahnus.” (EPL on the 31. of December) Bit ruff again, isn’t it? I kind of agree that our economic policy is not based on a collaborative discussion (with our enterprises), but then again I believe that with a 17-year history we have done damn good. I also say that there are signs of this initial collaboration - take for example the new initiative by the ministry of economic affairs (financial support scheme) or the concept of national R&D programs, which is based on close collaboration between the enterprise and government. To add, I think about ten years ago any closer discussion would have led to serious accusations from the public. You must always bear in mind that there are two types of businesses in Estonia (think of the Reiljan case for example)….

Secondly, and this has been on my mind for quite some time now, what I would like to write about is the “Estonian untouchable tax system”. In fact, I like what they are doing in the US right now: making tax exemptions to companies: A) who export, B) who create new jobs. See for example this: http://news.bbc.co.uk/2/hi/business/7818347.stm or the BusinessWeek about Obama’s economic agenda. I honestly believe that this new “time” of ours, needs even smarter and vigorous policy approaches. We need to understand how to create new stimulus and pump new ideas into our economy to create new or expand the competitive edge where we have it. Innovation year is good, but what are the means? Creating tax exemptions on maybe labor taxes, eliminating income tax on option schemes (to create extra momentum in employers), looking how to create transparent investment funds (to lure venture capital) into Estonia instead of them going to Luxemburg or any other financial heaven, should be our target now. 0% tax on reinvested profits is good, but probably not good enough in the current terms. In fact if you look at the EU tax system, then Estonia is not the only one with a flat tax rate and the so called 0% tax exemption any more. As I said before, what got you here, won’t get you there. There’s always some extra bit that you have to do, to reach the next level.

This statement from Veskimägi is exactly to the point: “Teiseks, mina usun, et meid toovad sellest kriisist välja mitte-konventsionaalsed lahendused Eesti senise 17 taasiseseisvumise poliitikaga võrreldes. Ja üks valdkond, kus see lähenemine võiks olla edukas, on finantspoliitika. See võib tähendada muuhulgas loobumist senisest maksupoliitilisest lähenemisest, mis on põhinenud ilma eranditeta laial maksubaasil koos madalate määradega. Peame leidma kompromisse maksusüsteemi stabiilsuse ja magusamaks tegemise vahel uuele kapitalile." (Äripäev, 05.01.2009).

Glad that there is a discussion at least. Now, the idea is, how to sell these little issues that actually matter in today’s context, to the public and then to the rest of the political elite.

Records, maybe the best of in 2008

As my favorite record shop (Rounder Records in Brighton, UK) sent me their "best of albums in 2008" (knew only one of them), i thought I’ll also put down mine. No hip-hop this year – pretty much all the old classics that i have liked before, except maybe Lanu and Coldplay, which are kind of new names in the list. PS this is not a chart.

Counting Crows – Saturday Nights and Sunday Mornings
Tricky – Knowledge West Boy
Stereophonics – Pull the Pin
London Elektricity – Syncopated City
Underworld - Oblivion with Bells
Lanu – This is My Home
Coldplay – Viva La Vida or Death and All His Friends

2008 part III

Brief round-up of things then. First thing - the joint innovation and science council meeting where "we" made a statement that more money should be poured into Estonian science and enterprise development support schemes. Thinking back now i feel that it was not a very wise decision, especially bearing in mind other discussions that were on the table at the time. I guess you can find the statement if you search it from Google - Mr. Villems was the official commentator. Then R.E.M in Tallinn, but that i already covered in this blog. Five days in Malmö together with a weekend in Lund. Some Swedish style partying with colleague students. Very regulated and bureaucratic US visa interview that kind of scared me actually (not a big fan of bureaucracy). Äriplaan 2009 conference about the Estonian economy outlook for the next year. Mainly pessimistic stuff, as one would guess. Hansapank's CEO made the best presentation offering insights to a study based on an IMF report. Definitely worth a read. Also noticed a small gap being established between the old and new school Estonian businessmen. Scientists night in Tallinn University - trying to popularize Estonian science...

October was another busy month, which started with the Science Council meeting. No new big discussions though... Brussels and the EVCA policy event, which was something towards a strep in the direction where I'm trying to move in the longer run. Saw Estonia being beaten by Spain in Tallinn and Fernando Torres. Two days in Malmö, meetings with the Finnish embassy trying to promote cooperation. Three days in Athens presenting in the Global Forum and talking to some really interesting people about computer/internet security. Two steps to take me to the Acropolis. Interviewing my successors in the office and then one day trip to Helsinki before taking off to Sweden and then on to London and New York on the first of November.


So two weeks in US - really have no desire to jot it all down here. Lets just say that two excellent weeks in one of the places that i have always dreamt of going - one in NYC and one in Florida (Miami and Key West). Again, three pictures here describing the mood.




Returning back to Estonia was hard, especially after the sunny Florida. Two weeks again in the office wrapping things up and then a really nice farewell party to move to Sweden, which i have already covered here. That's it i guess for 2008.

2008 part II

So June? I think it started with an FCT game, where I think I showed the best ever football for that team. Two concerts in Tallinn – firstly Bob Dylan and then Massive Attack. The last one of these was probably one of the best concerts that I have ever been to. Definitely in the top three. Maybe London Elektricity in Brighton was just a bit better due to its intimacy. You just do not see drum and bass played live that often. But yeah, MA was excellent. They played all the good old songs, which consequently brought about nostalgia. So I had to dig up my MA record collection and listen it to again... As for Dylan - lot’s of respect to the man, but I just didn’t understand him... And I also think that he’s probably not the best live performer.

Her majesties birthday was celebrated on the 5th, which got me introduced to very interesting people. Went to Vilnius for the first time in my life for a Noria-Net workshop. Luckily it only lasted for half a day, so I ended up strolling around the city for the rest of the time. Cleaner and a bit less developed than Estonia, as far as I can remember. Three days in Malmö again, Kumu ÖÖ tradition again and then the midsummer short brake in Saaremaa and Noarootsi. And then Finland again - the introduction of the Wise Men’s Report to the two Prime Ministers. Also, a little fishing trip on the bay of Helsinki, which was quite nice, no fish though... And one more thing – started with tennis training…

July was the vacation month – remember the summer days in the Southern part of Estonia, near Otepää. Exceptional place. Was the best ever smoke-sauna experience I have ever had together with the swimming in the near by lake, while bats flying over our heads... Remember Juu Jääb Music Festival in Muhumaa, which I think is losing its edge and is becoming a bit dull and too commercialised. And then India for ten days.
Shruti’s wedding, Pondicherry, Mahabalipuram and Chennai. Some crazy experiences: riding around with motorbikes and discovering order in chaos; fish farms on the beaches; little lost or not so lost villages; people disturbed by the “almost forgotten“ tsunami; shark stake; walking alone in the streets of Chennai etc. Definitely makes one think about stuff. Am attaching two pictures here to get the message across...



Then another week in Saaremaa and Pärnu – the usual summer schedule. Did some riding around with my motorbike and tried to catch up with people whom I hadn’t seen for a while. I must admit that riding around is Saaremaa with a bike is a really good idea that definitely needs to be followed up also in 2009.

August saw me stay put all the month after all that traveling. Remember Christer my good friend visiting Tallinn with his girlfriend, some football, Night Song Festival (or however you translate it), which definitely made a mark to the year and I guess to a lot of Estonians, our crews get-together in Jõgeva (read the usual fishing trip) and then seeing GEP in No99 Theater. Work was also picking up again, however my mind I guess was already moving in a different direction…

2008 part I

So what happened this year? Well too much to be honest. It's all kind of blurry already, but I’ll try to put it into perspective today and tomorrow.

Well the first thing worth mentioning here is the Ski trip that I made to Are, Sweden from the 6th to the 13th of January. Tried snowboarding for the first time. The beginning was quite painful, but as the days progressed I really learnt how to stand on this slippery piece of wood...until one day before leaving I fell and totally twisted my elbow. The goddamn thing hurt even too month later eventually ruining my FC Toompea so called pre season training. But then again, in 2009 I will definitely do it again, but skip the last part hopefully. Oh, and the crew was nice. I think there were about 12 of us, whom about half of them I hadn't met before.

January also saw quite extensive work schedule: mainly meetings on the next Estonian Lisbon strategy, a three day consulting trip to Malmö, where I reside now. Also Triin's and Martin's wedding in Pilguse manor house in Saaremaa. Was nice and strangely enough took me back to this place again in summer. Will write about it later in part II.

February. I remember an interesting two day lecture on the Singaporean economy and its development path, which was held in the Estonian Development Fund. Main message: how to run a country like an enterprise. Key words: effectiveness, responsibility and "consensus". Those who have studied it, know why I stress the last word. A conference called Tuulelohe Lend, which was I think one of the first arenas where people started to discuss the effects of the Estonian economic downturn. But even then it was pretty much based on the April events of 2007 aka effects on transit. Then our little crew had our traditional winter days near Otepää. To be honest, this year wasn't something exceptional... Then one day in Helsinki as my calendar says - preparing the joint R&D council meeting for April. Again two short consulting trips to Malmö and a presentation on the Estonian ICT strategy and politics in London on eGoverment Conference. Remember meeting Lucy and Marius and those cocktails on Marlboro road…were excellent!

March was calmer travelling wise - took me again for two, two day trips to Malmö. Lot of meetings and work though - innovation and science policy council meetings, preparing PM's meetings with other ministers, Estonian forest sector developments, VISION ERA-NET meeting, energy technologies etc. I also remember Annabret graciously dancing in peter Paan in Tartu and the removal of one of my tooth. One very pleasant the other one not so... Lastly FC Toompea started it's season with a 2:1 victory over FC Soccernet. No goals from me, I as far as I can remember. Oh, and one more thing, February also made me a proud owner of a motorbike, Honda Hornet 900. Long time dream coming true, I guess.

April started with the annual European Commission delegations visit to Estonia assessing the progress of our structural reforms. Another two days in Malmö and then the joint Council meeting that I already described before on the 15th of April. 16th of April was a filming day for a management game on ETV. The last episode - we talked about our work and gave the assessors a crack at an assignment. Anyway, we won the game, which took us to London. 17th and 18th I spent in Brussels in a seminar on R&D impact assessment, but not really sure though... Might have been?! UK the from 24th to the 29th. Was in Brighton after a while staying at Rami's, visiting the old Lion and the Lobster, Bazak's joint ect. The end bit was in London attending the management seminar. Presentations by Kjsell Nordström and Peter Drucker (hope this is how you spell these names). Was interesting, especially the first one, but still nothing much I took with me though, except maybe the talent on how to make interesting PowerPoint’s.

May, also very work related - 5 days in Malmö and otherwise loads’s of meetings and writing of different papers. I also remember a research and development council meeting, weekends in Tartu and Saaremaa and Strategy Office's birthday party.

To be continued…

Lisbon process

Was reading some ex-work related stuff this week and saw this interesting graph measuring the productivity and employment growth of EU nations (two main goals set in Lisboa in 2000).


Interesting isn't it? What about measuring the impact of structural reforms brought about by the Lisbon process? Is it affected by the convergence process, the ability to react quickly by small states (and thus also have bigger impacts maybe?), or pro/anti cyclical characteristics of the economy that really determine these figures/this graph? I guess all of it at the same time, but the outcome X has very different stress levels or dominant factors on each country. And then how do you actually compare them on the aggregate EU level to make any kind comparative analysis possible let alone make recommendations? OK, I guess it is easy for the developing countries because there probably is an existing more or less rational development path for them, but what happens when you are already at the top? What got you here, won't get you there as someone once said.

Nagu kaks tilka vett...

Told this to Inga the other day and then thought i will also post it here.

Compare this (President Ilves Eesti majandusest) and this (A Personal Message From Tony Robbins) to each other. Remarkably similar things with a 9 day lag. Ideas travel, i guess...

I really do not think the first one of them is the best effort to "calm" the Estonian citizens in the midst of the financial/economic crises and drive the politicians towards more "responsible" budgetary process. Honestly, i believe that this could have been done in a better and more effective way without the bling and Macs in the background... As for Robbins - having only lately discovered the idea behind his blog, i still think it is better focused and suited to his audience. Plus the content is also fresh in this situation.

British Humor

Today my dear friend Ray received the following e-mail from his friend in England...

In light of the recent earthquake here in Skåne I’m sending you a picture taken in Malmö just seconds after the disaster!



Ironic bastards, aren't they!

Tackilng Earthquakes while Sleeping

It was a strange night yesterday. As a bad omen i tested my so called new washing machine, which didn't let me fall asleep due to its vicious drying program before 1 o'clock. Having then successfully fallen asleep i just opened my eyes before the earthquake at around 6:20 realizing as if something was wrong with things. And then, i felt it. What was the strangest thing about it, was the noise that came from the ground. Somewhat scary - like end of days of something. But of course, in the morning i still wasn't sure what had happened. So just to be sure, opened the computer to find this: http://www.thelocal.se/16374/20081216/ Ohh, well, it was true then.

The Saga Continues...

Mr. Kattel argues in today's Eesti Päevaleht that new economic thought is needed in Estonia and i also think on a wider scale. A bit accusatory is the whole article, isn't it?

I kind of agree that the whole notion of the industrial policy will probably be redefined, making the growth sectors even more protected by governments that they are at the moment. But what is the talk about the Estonian workforce regulation? It is a fact that we are one of the worst/rigid in this aspect according to the word bank (The Economist used the same indicator set this week when describing the Indian economy) and other evaluators. And, hey, what about looking at the real figures - i think in the period from 2007 to 2013 the investments into training and lifelong learning will threefold in Estonia.

I understand that Mr. Kattel wants a more in depth discussion on the new measures and approaches that Estonia should take up - he feels the discussion to be too hollow today. I have two recommendations - please propose things what we should do, where we should be looking to. Secondly, maybe this is the level were we can operate? Maybe, this is how much we understand world economics?

Forget Adam Smith, Whatever Works or Industrial Policy Revisited

Was reading an old BusinessWeek yesterday evening and after the lines "As America struggles to recover from the deep recession that likely lies ahead, a new economic model could take shape that would involve a great deal more than direct government involvement in the world of Wall Street. It could mean greater support of such industries as autos, nanotech, and renewable energies, which face fierce global competition. And it certainly spells a return of heavier regulation. It is far too early to predict that the U.S. is headed down the road of Asia-style industrial policy or the kinds of interventions imposed during the Great Depression, when bureaucrats seized and micromanaged entire industries." got me thinking that the protection of new industries let alone the old critical ones (Chrysler, GM etc) will probably become even more acute in the days to come. Shall we see a new even more stronger competition for/protection of the so called knowledge based enterprises? But then again, ironically, what caused the mess in the fist place were knowledge intensive financial services.

The Unbearable Lightness of Being

Was walking down the beach today (see pictures below) and was wondering how do you come up with this combination of words. Mysterious and yet so to the point - I probably can’t.


So first week in Sweden has passed. And how do I feel? Quite strange, to be honest - both work and life wise. However I feel I need more time to be objective with you. So I will not go into the feelings and emotions yet, but instead try to describe what I have been doing here over the past week.


Well, not much. Firstly I think it was the first time over quite many years that I went to bed before 11 on Friday. Felt strange even to myself. However on Saturday I made it up a bit and went to David’s Christmas party. Was, again, strange seeing all the Swedes talk in Swedish and actually not understanding a single bit sometimes. A little bit of white wine and some fussy conversations about the Swedish banking industry were the best bits. Otherwise nothing special or bright.

Saw two quite good films this week: Zeitgeist and Magnolia. The first one started off quite brightly but ended up doing the same thing as it was accusing the “mass media” doing i.e. amplifying the signal. The interesting bit to me was the last one due to a book I’m reading: The History of Wall Street. Bought it from NYC in the beginning of November and have been obsessed ever since. But yeah, basically history of Wall Street has been about cornering markets and as it seems to me today things only happen on a greater scale with probably the main cause hidden. Magnolia. Hmm, that one was a really good. A bit depressing at times, but still really good. Even the frogs in the end were good, not overblown as some say. My real discovery was Mr. Cruise, who I think played a really good role. There’s something about that man, or how good he is. And the setting was also very acute do to the fact that Mr. Robbins has been very active lately sending his newsletters to me “due to the difficult times”. Anyways, I recommend both of the movies.


What else? Sweden is a bit clinical as one of my friend once said. But more humane than Estonia and dangerously bourgeois. Yesterday for example I wanted to get a coffee in the old town, but couldn’t. It was all really packed – the Swedish families were doing their safe Christmas shopping and having a coffee or dinner outside afterwards. No signs of economic recession. But then again I wasn’t here last Christmas, so I do not have the comparative benchmark.

Next week hopefully brings me my flat and more work, I think.

Two quotes

Two quotes that i really liked today. First one from the Economist (particularly acute after my US trip) and the second one from Indrek Neivelt, ex head of Hansapank and now the Chairman of the Supervisory Board of the Estonian Development Fund (pardon, but it is in Estonian).

Air travel, for example, is getting worse rather than better. Profit-maximising foreign airlines choose the cheapest slots for routes to small countries, not the most convenient one. Flying to Estonia from London means either leaving home at 3:30 in the morning, or arriving in Tallinn after 11:00 at night. Flights to Brussels and other European capitals are barely more convenient. The result is a subtle form of isolation—nothing like as bad as the Iron Curtain, to be sure, but a nuisance nonetheless.

Meie pere vanem poeg sündis 1998. aastal. Mina olen sündinud 1967. aastal. Ja ma vaatasin, et 1998. aasta oli kõige madalama sündimusega aasta, mil sündis poole vähem lapsi kui 1967. aastal. Ütlesin pojale, et tal on võimalik kaks korda lihtsamalt Eesti meistriks saada. Kui lisame, et vahepeal on spordialasid juurde tulnud, siis on olukord veelgi drastilisem.

Sunday morning Egg and Bacon

Starting with a little bit of Stereophonics on Sunday morning, which, I guess, is good for any of us..

“Keeping up with the best - is anyone going anywhere?
Everyone's gotta be somewhere
Wait tables for a crook?
Wrote a hard back book?
You teach kids how to read?
Sell your body on the street?
A nurse without a job?
Another uptown snob?
But have I got you wrong?
One look and you were gone is anyone going anywhere?
Everyone gotta be somewhere”

Stereophonics – Traffic. Just suit’s just like a glove in the hand this Sunday…

Anyway, this week has had some mixed feeling, but generally a pretty good one.

First of all, thought that I need to get fitter, so I asked the special police to give me their physical tests and decided that I will try to complete them with normal score. Action line followed- went to the gym thee times this week, plus have a league game today. Let’s see how it turns out, cause next week I already have some misses programmed into the grand plan.

Then it was “The Dark Night” on Monday night with Eva. Although I had heard quite a lot about this film (everybody was very upbeat about it), I was a bit skeptical. In the end however I must admit that it was one of the best Hollywood movies I had seen lately. Heath Ledger played exceptionally well as everyone has already said, but also Christian Bale, who I think this time had a bit easier role to play. Or it could also have been overshadowed by the insanity and fearlessness of the Joker? Some specific spots come in to my mind when I think of the film – the chase in the Chicago streets where the Joker is in the police car, the big lorry being thrown upside down etc. And finally I have my doubts about the last scenes - maybe a bit too simple?

Hah, some more football, please! Saw Estonia lost to Bosnia and Herzegovina – no comments here, left the pub before the end of the game. England played well against Croatia – just hope they will not get too cocky now. This was only one game and things were made a lot easier for them, when the Croats lost one player due to red card. Yesterday I also saw Liverpool take on Manchester on Anfield. The first bit of the game (read the first five minutes) where a bit scary, but luckily it did not turn out as the game I talked in the first place. Without Gerrard in the middle and Torres up front I think we put on a very decent show. The new guy Albert Riera aqured from Espanyol for £8 million impressed me as well - the guy just can take on opposition and really offered that wide role we were looking for. Plus of course Babel, but I knew he was very good anyway. I think we could have a very interesting season coming up in the premiership this year…

R.E.M. concert in Tallinn…
Contrary to many Estonian music critiques, I must say that I actually liked them very much. Since I didn’t know their music that well, I think I anticipated something a bit more subtle, more laid back, but what I actually got was a decent rock concert. Michael Stipe with his exceptionally good form, pulled the show off 100%. And as for the sound, which a lot of people are complaining about, well, I guess it is all about positioning. But on the other hand of course, I admit that Saku Suurhall’s acoustics, to put it mildly, are not the best in the world. Generally, I think that this kind of a rock concert was something I needed- pushed up the feeling a bit. And as for my favorite song that they played – think it is the “Bad Day”. Has some really powerful feeling in it all way from the beginning. Overall, I think you just can’t forget “Nightswimming”…

There some other million things that I would like to comment in this blog more thoroughly, like CERN’s LHC opening on the 10th of September, which hopefully will solve some really interesting questions for us. An interesting quote from this week’s New Scientist – “If you built a $10 billion machine you are allowed to be a little optimistic”. Then strangely there’s a lot of discussion about the traceability in the web – see both BusinessWeek and New Sceintist. To me this is not anything new. What maybe surprised me a bit was what IBM is doing in it’s labs. See: Book Excerpt: The Numerati by Stephen Baker>.

And Finally, Estonian politics.
An interesting subject to be quite honest. Is there any other government in Europe that has the cohones to even discuss raising taxes like this? I don’t think so! I will also not quote the specific numbers here, but in the first glance they seem to be quite high. What worries me is that actually people have not really tried to cut back on operating costs, and that due to this we will have an even tougher situation in 2009 when we compile the budget for 2010. What is good is that the tax calculations actually contain demand curve elasticity and the businesses being affected. The real trick here is about overall macroeconomic aspects on business behavior and communication – how do you bring this information to the public and how do you tackle the issues which are the most sensitive i.e. what does it really mean to me? Or still in other words even if all the macro numbers are ok (compared to, lets say, other EU countries), how do you explain it on the micro level, when they start to hurt people. Anyway, the budget making process is all about mixing different values, which in the public sector context (see my last post), is all but easy. Maybe, and when I have some more inspiration, I’ll write something more about it…

Questions...questions...

Take extreme capitalism with its determined one-purpose seeking mentality and try to apply this to government. Does it mean that basically there are two completely different ways for value enhancement and that mostly due to ownership issues? Questions about centralization and decentralization raise, problems around mixed interests etc.

Try applying these HBR posed questions to the whole government (not to a specific government body) and what do you get? To my mind philosophically very interesting task…

* Have we left too much cash on our balance sheet instead of raising our cash dividends or buying back our own shares?
* Do we have the optimal capital structure with the lowest weighted after-tax cost of total capital, including dept and equity?
* Do we have an operating plan that will significantly increase shareholder value, with specific metrics to monitor performance?
* Are the compensation rewards for our top executives tied closely enough to increases in shareholder value, with real penalties for nonperformance?
* Have our board members dedicated enough time and do they have sufficient industry expertise and financial incentive to maximize shareholder value?