(Roughly) Daily

Posts Tagged ‘corporation

“Resistance to the organized mass can be effected only by the man who is as well organized in his individuality as the mass itself”*…

Thomas R. Wells on something to remember in these times of international conflict…

As any map will show you, the world is divided by political borders into spaces called countries. People and things can live in, come from, or go to these places.

But countries are not any more than that.

Firstly and most obviously, countries are merely a social construction. They are collectively produced fictions (like money, or religions) rather than mind-independent objects (like stones). Being fictional does not mean that countries do not matter, but it does mean that they only exist so long as enough people agree to act as if they do.

Secondly and more significantly, countries are places not agents. Places on a map cannot have interests or goals or take actions to achieve them. To think otherwise is to confuse the properties of one kind of thing with another. This category error infects not only general talk, but also much otherwise careful journalism and even academic analysis. For example, the influential Realistschool of international relations is founded on the axiom that countries do (or ought to) act only in their national interest. This trades on two category errors: that countries (rather than governments) can act and that they have interests. The result is confusing and unfalsifiable nonsense about buffer zones, access to resources and so forth that is about as helpful for understanding, predicting, and managing conflicts as an astrological map.

What lies behind this error is the eliding of spaces on a map with the organisations that rule them. Organisations are collective agents like armies or corporations in which groups of human individuals are converted into a hierarchically coordinated and powerful actor in their own right. Unlike countries, organisations are a kind of collectively produced fiction about which it does make sense to attribute interests and which can actually do things, often very significant things. What we call governments are a particular kind of organisation, one that has achieved the power to make and enforce rules over the inhabitants of a country, for example by hurting those who dare to disagree with it and by preventing outsiders from entering. In Max Weber’s famous definition, it “successfully claims a monopoly of the legitimate use of violence”. This power is called sovereignty and it is an attribute of governments, not countries.

People live in countries and are ruled over by governments. It is important to keep each of these three elements distinct and clear so that we can prevent the relentless category errors that confuse public discussion of international affairs. In particular, we should pay more credence to actual people and less to the organisations who claim to be their legitimate representatives merely because they have the power to hurt them. There are many tyrannical governments in this world. Their leaders may declare that they act in the name of the populations and territories they rule but they remain the ones responsible, the ones who should be held to account…

Being careful in how how we apportion blame in these fraught geopolitical times: “There Is No Such Thing As Countries,” from @Philos_Beard in @3QD. Eminently worth reading in full.

* Carl Jung

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As we steer clear of stereotypes, we recall that it was on this date in 1602 that Vereenigde Oost-Indische Compagnie (VOC, or The Dutch East India Company, as it’s known in the Anglophone world) was born.  Generally considered the world’s first trans-national corporation and the first publicly to issue stocks and bonds (and the first company to be ever actually listed on an official stock exchange), it began with a 21-year monopoly on the Dutch spice trade.  The VOC also prefigured the mega-corporation of today in that it had quasi-governmental powers, including the ability to wage war, imprison and execute convicts, negotiate treaties, strike its own coins, and establish colonies.  Considered by many to be the greatest corporation in history, the VOC eclipsed all of its rivals in international trade (and many nations in power) for almost 200 years.

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“There is no business like show business. There is also no business like certified public accounting, but that doesn’t rhyme as well.”*…

 

Pacioli

Portrait of Luca Bartolomeo de Pacioli, attributed to Jacopo de’ Barbari

 

Modern capitalism began among the European merchant families of the early Renaissance—the Fuggers of Augsburg, Medicis of Florence and, in Venice, one Antonio de Rompiasi, who in 1464 hired a tutor in mathematics for his three sons. Like any sensible teacher, young Luca Pacioli aimed to make his lessons memorable and clear. Good humanist that he was, 30 years later he gathered all the world’s knowledge of the subject into a single massive volume.

His “Summa de Arithmetica, Geometria, Proportioni et Proportionalita” was the 615-page work of a mature professor who had spent decades working across northern Italy. The book was revolutionary on more than one count. It integrated computation using Hindu-Arabic numerals with the logic of classic Greek geometry; it was written in the Italian of the marketplace rather than Latin; and it was circulated in large numbers thanks to the new technology of printing. Yet its greatest significance lay in a slim ‘how to’ chapter that described the double-entry accounting system used by Venetian merchants.

With examples from dealers in butter to lemons to silk, Pacioli set out the method for tracking income and expenditure and the calculation of net profit or loss, which for the first time allowed an immediate snapshot of a firm’s financial position. This slim section would facilitate the birth of the modern corporation.

“Without order there is chaos,” Pacioli observed in a breezy style that is still in vogue in business books today. His manual is stuffed with quotes from scripture and Dante and pithy advice such as “Don’t learn from ignoramuses who have more leaves than grapes.” He wrote the accounting chapter to help would-be traders in Venice, then the capital of the financial world, “sleep easily at night”. Without double-entry book-keeping, “their minds would keep them awake with worry”. He could not suspect that what might be called “Book-keeping for Dummies” would become the backbone of business for centuries.

Like many monumental works of 15th-century printing, Pacioli’s treatise has survived in its original form. Some 120 copies still exist, from an initial run of about 1,000. Now today’s moguls have a chance to own this first folio of finance. Christie’s, the auction house, is offering a first edition in its original vellum binding for sale in New York on June 12th. The starting price is $1m for what it unabashedly calls “the most influential work in the history of capitalism.”

Pacioli’s later life augments the glamour of the first printed use of ‘plus’ and ‘minus’ signs. Impressed by the book, Leonardo da Vinci convinced his patron Lodovico Sforza to hire Pacioli to teach at the court of Milan. Pacioli and Leonardo collaborated on the treatise “Divina Proportione,” which married maths with art through the study of perspective. Not one, but two Renaissance masters were thus responsible for the exquisite harmony of “The Last Supper”…

The 15th-century guide to book-keeping enabled the rise of modern corporations: “A revolutionary treatise goes on the block.”

* Craig Shaw Gardner

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As we count carefully, we might recall that it was on this date in 1902 that a US patent (#701,839) was issued to Americus F. Callahan of Chicago, Ill., which he called the outlook envelope– what we call the window envelope.

300px-USPatent701839-CallahanAmericus-WindowedEnvelope source

 

Written by (Roughly) Daily

June 10, 2019 at 1:01 am

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